These black swans pose biggest threats to market, says SocGen

 

SAN FRANCISCO (MarketWatch) — So-called black-swan events are by definition highly improbable. But that hasn’t stopped the economists at Société Générale from attempting to identify a few scenarios that could blindside the market.

In its ‘Global Economic Outlook’ report released on Monday, SocGen listed six such unlikely events that pose the biggest threats. Those include a hard economic landing in China and the possibility of a referendum in the U.K. on whether to remain in the European Union.

World War 3: Russian Nuclear Bombers Buzz British Air Space, RAF Typhoon Jets Scramble To Respond

In yet another incident that may feel like World War 3 but seems to actually be part of Cold War 2, two Russian nuclear bombers steered away from their planned routes to fly dangerously close to British air space, over a region that United Kingdom defense officials called the U.K. “area of interest.”

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The bombers followed the disturbing pattern of many Russian military aircraft that have confronted fighter jets from NATO, Britain, and even Japan over the past year, in that they did not file a flight plan, appeared to fly with their transponders switched off, and failed to communicate with air traffic controllers in the ground.

But the RAF fighter pilots flew close enough to the Russian bombers that they could communicate with visual hand signals.

Brits on Alert as Russian Destroyer Approaches U.K.

The British navy is closely monitoring a Russian destroyer that approached its waters, it said in a statement.

The destroyer Vice Admiral Kulakov, seen in the foreground above, was tracked by HMS Dragon, a U.K. Royal Navy destroyer, as it passed the north coast of Scotland.

World Entering “Golden Age of Gas”

Bloomberg published a lengthy article on the proliferation of shale gas drilling around the world, with interviews from top oil and gas executives. Drillers are trying to replicate the U.S. shale gas revolution in places such as China, Russia, India, South Africa, Australia, Argentina, the U.K, and Poland, among other places, according to the report. For example, Shell is working with Sinopec to tap the world’s largest shale gas reserves in China; Chevron teamed up with YPF SA to drill the massive Vaca Muerta shale formation in Argentina; and oil and gas companies are lining up to move into Mexico to drill the Mexican side of the Eagle Ford shale.