Big banks are cringing as crude oil is crumbling.
Now that the oil glut has caused prices to crash below $30 a barrel, turmoil is rippling through the energy industry and souring many of those loans. Dozens of oil companies have gone bankrupt and the ones that haven’t are feeling enough financial stress to slash spending and cut tens of thousands of jobs.
Earlier we detailed reports that The IMF was preparing a contingency plan in the event of a Greek default, and furthermore that Andrea Merkel was under increasing pressure to “let Greece go,” and now, as Eurogroup ministers begin to gather for today’s crucial ‘deal-or-no-deal’ meeting, Die Welt reports The Troika has 4 scenarios for Greece – one positive and three increasingly negative ranging from the need for further bailouts to paying staff in IOUs and issuing a parallel currency.
While Austria’s Hans Jorg Schelling sticks to his statement that:
“There’s nothing to it The Plan B was not discussed..”
The U.S. Navy’s next generation air superiority fighter will not be “super-duper fast” or employ much in the way of stealth, a senior navy official announced on Wednesday.
Chief of Naval Operations Adm. Jonathan Greenert, the Navy’s top officer, divulged some details about the Navy’s so-called Next Generation Air Dominance F/A-XX fighter jet during a speech at an industry conference. Continue reading
Credit Suisse Group AG (CSGN) and Saxo Bank A/S joined an increasing number of European financial companies warning that the Swiss central bank’s surprise decision to abolish its currency ceiling may dent earnings.
Credit Suisse, Switzerland’s second-biggest bank, indicated Monday that currency swings may hurt profit. Denmark’s Saxo Bank said some clients might not be able to settle unsecured amounts, which might cause undisclosed losses.
The full force of the decision won’t be known for months and is “closer to a nuclear explosion than a 1,000-kilogram conventional bomb,” Javier Paz, senior analyst in wealth management at Aite Group, said in an e-mail Tuesday. “The aftermath is like a black hole that can suck massive amounts of credit from currency trading as we have known it.” Continue reading
China conducts rare flight test of new submarine-launched missile
China’s military conducted a flight test of a new submarine-launched ballistic missile last week, a launch that came a month after the test of a new multiple-warhead, ground-mobile missile, the Free Beacon has learned.
The flight test of the new JL-2 missile took place Thursday morning from a new Jin-class ballistic missile submarine on patrol in the Bohai Sea, near the coast of northeastern China west of the Korean peninsula, said U.S. officials.
One official said the new JL-2 represents a “potential first strike” nuclear missile in China’s growing arsenal.
The submarine missile firing followed the July 24 test launch of China’s new DF-41 road-mobile ICBM that is assessed to carry multiple independently targetable re-entry vehicles, or MIRVs.
The July 24 DF-41 test was the first of the new long-range ICBM that until the test had been shrouded in secrecy.
In addition to the JL-2, a variant of the DF-31 mobile missile, the new strategic weapons include three types of road-mobile ICBMs—DF-31, DF-31A, and DF-41—along with several intermediate and medium-range missiles and hundreds of short-range missiles that can be armed with both conventional and nuclear warheads. The Chinese also are modernizing their fleet of Russian-design strategic bombers.
By contrast, the Obama administration has been seeking to reduce the role of nuclear weapons in U.S. defense strategy.
The administration, according to Republicans in Congress, also appears to be going back on promises made to the Senate in 2010 to spend billions of dollars to upgrade aging U.S. strategic nuclear forces and infrastructure.
The former head of Russia’s strategic rocket forces stated in an article published in May that China’s nuclear arsenal could have as many 3,000 warheads—far more than the 300 to 400 warheads estimated by U.S. intelligence agencies.
Full article: Ready To Launch (Washington Free Beacon)