After Hours Summary: COWN +7.1% higher on WSJ report TD close to purchasing COWN; PINS +22.3%, ZI +12.5%, ANET +5% higher on earnings; WWD -8.4%, EBS -4.4%, RMBS -3.8% lower on earningsAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: EVER +22.9%, PINS +22.3%, ZI +12.5%, TA +10.4%, CLAR +9.3%, ENSG +7%, ACT +7%, CAR +6.9%, HLIT +6.9%, VNO +6.3%, CNO +6.2%, NTNX +6.2%, DVA +5.7%, RHP +5.3%, ANET +5%, RIG +5%, VRNS +4.2%, AMKR +4.1%, MPWR +3.1%, AXNX +2.8%, CACC +2.8%, INST +2.6%, OTTR +2.5%, AFL +2.3%, BCC +2.3%, SBAC +2.3%, VNOM +1.9%, LSCC +1.8%, EPR +1.1%, SPG +0.9% (also increases dividend), CRK +0.4%, DVN +0.2%
Companies trading higher in after hours in reaction to news: CNSL +16.2% (to sell limited partnership interests in five wireless partnerships to Cellco for $490 mln), AHCO +8.8% (to join S&P SmallCap 600), COWN +7.1% (TD close to purchasing COWN, according to WSJ), SSNC +2.9% (authorizes new $1 bln share repurchase program), FTI +2.8% (awarded significant contract by XOM affiliate in Guyana), CLLS +2.7% (FDA clears its IND to initiate a Phase 1/2a trial of UCART20x22), RANI +2.3% (files for $400 mln mixed securities shelf offering), NOG +2% (increases dividend), KFY +0.6% (acquires Infinity Consulting Solutions), BNGO +0.5% (announces publication of study for optical genome mapping), OPY +0.2% (names new CFO), MSA +0.1% (CFO to resign)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: TMDX -9.8%, WWD -8.4%, EBS -4.4%, EHC -4.1%, RMBS -3.8% (also names new CFO), MOS -3% (also authorizes new $2 bln share repurchase program), GNW -2.9%, OHI -2.5%, CF -2%, LEG -1.3%, MATX -1.2%, KMT -0.9%, FANG -0.7%, DEI -0.3%, KMPR -0.3%, RRX -0.3%, UNVR -0.3%, BRX -0.1%, EQC -0.1%, NSP -0.1%, AWR -0.1% (also increases dividend)
Companies trading lower in after hours in reaction to news: FRC -4.3% (commences 2 mln share offering), NLY -3.1% (commences 100 mln share offering), EPRT -2.8% (commences 6.5 mln share offering), SCHW -2.8% (TD sells 28.4 mln shares of SCHW), ABR -1.4% (commences $200 mln private placement of Convertible Senior Notes), KMPR -0.3% (to sell Reserve National Insurance for $90 mln), CNMD -0.1% (to acquire privately held Biorez for $85 mln)
US equity futures fell and Asian stocks were mixed Monday, hampered by the challenges swirling around China and a reminder from Federal Reserve officials that their key objective is to fight high inflation. S&P 500 and Nasdaq 100 contracts were in the red, while Japan countered losses in Hong Kong to help MSCI Inc.’s Asia-Pacific share index edge up. Recent developments underlined the economic challengesfacing China, including shrinking property sales and a contraction in factory activity that highlighted the cost of Beijing’s preference for mobility curbs to tackle Covid. Meanwhile, Fed Bank of Minneapolis President Neel Kashkari said Sunday the central bank is committed to reaching its long-term inflation goal of 2%. Before that, Fed Bank of Atlanta President Raphael Bostic said the monetary authority has further to go in raising borrowing costs. Treasury yields inched higher but at about 2.67% the 10-year yield is well down from June’s peak near 3.50%. The yen jumped for a fourth session versus the greenback. Oil, gold and Bitcoin all retreated. A slowing economy has cooled expectations for the scale of Fed interest-rate hikes needed to tame inflation, spurring a July rebound in both stocks and bonds. But officials may be wary of market jumps that ease financial conditions and thus imperil the goal of squeezing demand to fight price pressures. Investors are also monitoring US House Speaker Nancy Pelosi’s trip to Asia. A statement from her office skipped any mention of a possible stopover in Taiwan. A visit may stoke US-China tension over the island. Taiwan’s currency slid past 30 per dollar for the first time since 2020. Asia’s manufacturing slowdown is weighing on export-reliant economies like Taiwan.
Nikkei +0,53% Hang Seng -0,32% CSI +0,56% Shanghai +0,16% Shenzen +0,80%
Eur$ 1,0228 CNH 6,7634 CNY 6,7537 JPY 132,41 GBP 1,2186 CHF 0,9509 RUB 62,2626 TRY 17,9298 WTI$ 97,33 Gold 1,76,61 -2% BTC 23,410 -1,5% ETH 1,695,2 -1,5%
S&P -0,44% Nasdaq -0,36% EuroStoxx -0,32% FTSE -0,29% Dax -0,20% SMI +0,
Macro :
- Morgan Stanley’s Wilson Sees Recession Woes Capping Stock Rally
- Pelosi ‘Excited’ by Asia Trip, But She Won’t Talk of Taiwan
- China Evergrande Falls Short of Promised Restructuring Plan
- Monkeypox Outbreak May Boost the Shares of These Companies
- Bitcoin Slips After Best Month of 2022 as Traders Weigh Recovery
- Kashkari Says Fed Committed to Slowing Inflation to 2% Goal (1)
Keep an eye on :
- 2MX FP : 2MX Organic, InViVo Create Teract After Retail Combination
- AED BB : Aedifica to Spend EU13m on Spain Care Home Project at 5.5% Yield
- AIR FP : Boeing Gets FAA Clearance to Restart 787 Dreamliner Deliveries
- BNP FP : BNP Paribas Reaches Deal to Sell Senegalese Unit to Insurer Sunu
- BOL FP : Bollore 1H Ebita EU1.01B Vs. EU572M Y/y
- BWLPG NO : BW LPG Buys LPG Trading Operations From Vilma Oil
- 1COV GY : Covestro Cuts FY Ebitda Forecast, Misses Estimates
- CYAD BB : FDA Lifts Clinical Hold on Celyad’s Cyad-101-002 Phase 1B Trial
- DMP GY : Dermapharm Offers 450 Million Euros For Health Supplement Firm
- DOV IM : DoValue Signs Securitisation Deal With NBG Worth About EU1B
- EDP PL : EDP Sells Its 50% Stake in Hydro Global to CTG for About $68m
- EBS AV : Erste 2Q Net Income Beats Estimates
- EOAN GY : German Minister Open to Extending Life of Bavarian Nuclear Plant
- EXOR IM : Exor to Transition Stock Exchange Listing to Euronext Amsterdam
- FXPO LN : Ferrexpo Downgraded to CCC+ by Fitch
- GBLB BB : GBL Sees FY Dividend per Share at Least EU2.75, Est. EU2.88
- G IM : Del Vecchio’s Heir to Seek Change at Generali, Mediobanca: Sole
- GCO SM : Catalana Occidente to Acquire Grupo Memora for EU387.5m
- HEIA NA : Heineken 1H Org. Beer Volume Beats Estimates
- HSBA LN : HSBC 2Q Adjusted Pretax Profit Beats Estimates
- UCAD FP : Icade Office Sale Takes Disposals to Nearly EU570m This Year
- IPH FP : Innate Pharma Interlink Analysis Didn’t Meet Efficacy Threshold
- IPN FP : Ipsen, Marengo Therapeutics Agree Cancer Drug Partnership
- LHA GY : Lufthansa Faces More Turmoil After Pilots Back Potential Strikes
- MB IM : Del Vecchio’s Heir to Seek Change at Generali, Mediobanca: Sole
- PHARMA NA : Pharming Gets Accelerated Assessment in Europe for Leniolisib
- QLT LN : NatWest Is Studying Potential Bid for Quilter, Daily Mail Says
- SEM PL : Semapa 1H Net Income EU141.5M Vs. EU73.1M Y/y
- STM GY : Stabilus Boosts FY Revenue Forecast, Beats Estimates
- STEAG GY : Steag Weighs Full or Part-Sale, May Be Valued Over EU2B: HB
- TIT IM : Telecom Italia’s Head of Network Is Said to Plan on Resigning
- TWTR US : Musk Files Defense Under Seal as Twitter Trial Set for Oct. 17
- UN01 GY : Uniper Dodges Credit Downgrade to Junk After Government Bailout
- VAR1 GY : Varta Cuts FY Adjusted Ebitda Forecast
- DG FP : Vinci Said to Near Deal for Stake in Mexico Airport Operator OMA
>>> Up
* Anglo American Raised to Overweight at JPMorgan; PT 3,850 pence
* Ageas Raised to Buy at HSBC; PT 50 euros
* Air France-KLM Raised to Buy at HSBC; PT 1.60 euros
* Rheinmetall Raised to Buy at HSBC; PT 242 euros
* Securitas Raised to Neutral at JPMorgan; PT 100 kronor
* Tokmanni Raised to Buy at SEB Equities; PT 16 euros
>>> Down
* Forterra Cut to Neutral at Exane; PT 330 pence
* Jet2 Cut to Hold at HSBC; PT 970 pence
* Knights Cut to Sell at Liberum; PT 100 pence
* Mediaset Espana Cut to Equal-Weight at Barclays; PT 4.75 euros
* SBB Cut to Sell at Goldman; PT 13 kronor
>>> Initiation
* Enel Chile ADRs Rated New Neutral at Balanz Capital; PT $1.65
* Sobi Reinstated Overweight at Morgan Stanley; PT 280 kronor
>>> Call
* Anglo American to Overweight at JPM With Valuation Attractive
* Knights Double-Downgraded at Liberum as Fundamentals Weaken
* Sobi’s Strong Pipeline Earns New Overweight at Morgan Stanley
Blue Whale dumps Faang stocks on inflation fears
Fund backed by Peter Hargreaves sells out of tech groups as consumers under pressure
Blue Whale, the fund co-founded by billionaire investor Peter Hargreaves, has ditched longstanding holdings in US tech stocks because of concerns over the impact of rising inflation.
The fund sold its position in Google’s parent company Alphabet in July, just months after it divested its Amazon and Meta holdings, fund manager Stephen Yiu told the Financial Times.
The disposal of Alphabet marks a turning point for Blue Whale, which since launching in 2017 has backed some of the largest US tech stocks.
The fund no longer owns any stock in the so-called Faang companies — Facebook, Amazon, Apple, Netflix and Google. Yiu said the fund’s exposure to Faangs amounted to as much as 15 per cent of its holdings at their peak during the pandemic.
“The reason we’ve now exited is because they’re being impacted by bigger macro issues, mainly inflation and the squeeze on consumers’ disposable income,” Yiu said.
The change in tack comes as funds focused on growth stocks have taken a beating this year. Higher inflation and rising interest rates have hit companies whose value is tied to future earnings prospects, although many US tech stocks rallied last week as their financial results came in better than feared.
Blue Whale’s disposal of Alphabet was because of pressure from rising costs on digital advertising spend and the risk of a recession affecting consumers. “If we go into recession, the first thing companies cut is their advertising budget,” Yiu said.
Alphabet reported last week that quarterly revenue growth had fallen to its slowest pace in two years, although the results were still better than expected. Alphabet’s share price is down a fifth this year.
The fund sold out of Amazon in December in the view that the retail business was heavily exposed to discretionary spending, which would be affected by the cost of living crisis, Yiu said. More recently it offloaded Meta, the rebranded Facebook group, largely as a result of increasing competition from TikTok.
Blue Whale has endured a tough first half of the year with performance down 30 per cent to the end of June, worse than rival funds, largely because of the broader sell-off in tech stocks.
“However, I wouldn’t say we’ve completely disappeared from tech,” said Yiu, citing Microsoft and Nvidia among stocks it still held.
Blue Whale has instead invested in North American rail groups such as Union Pacific and Canadian National Railway. “We expect these companies to benefit from the trend to reshoring,” Yiu said.
The fund was seeded by Hargreaves, who founded FTSE 100 fund supermarket Hargreaves Lansdown in 1981, with £25mn. His family investment rose to as much as £200mn when the fund was at its largest.
Yiu explained that even though the fund had avoided some of the hardest-hit tech stocks, such as Netflix and Peloton, their performance had weighed on the whole industry.
Blue Whale has shrunk from more than £1.1bn in assets under management at its peak to about £900mn.
The Week’s 10 Biggest Funding Rounds: Cleerly Pumps Up Large Round; Carmot Leads Biotech’s Big Week
This is a weekly feature that runs down the week’s top 10 funding rounds in the U.S. Check out last week’s biggest funding rounds here.
Startups related to biotech and health care dominated the week, with five companies in that sector raising $50 million or more. Investors also continued to be enamored with the emerging Web3 space, minting a new unicorn while more than doubling the value of another.
1. Cleerly, $223M, medical: New York-based heart disease diagnosis startup Cleerly announced earlier in the week it raised $192 million—then apparently found another $31 million lying around a few days later to close a $223 million Series C. The round was led by funds and accounts advised by T. Rowe Price Associates and T. Rowe Price Investment Management and Fidelity Management and Research Co. Cleerly plays at the intersection of two hot sectors—AI and health care. Its AI-enabled technique to evaluate heart disease allows physicians to more easily identify plaque buildup in the walls of the heart arteries. Founded in 2017, Cleerly says it has now raised $279 million.
2. Carmot Therapeutics, $160M, biotech: Another health care-related startup tops the list, this time Berkeley, California-based Carmot Therapeutics, which raised a $160 million Series D led by The Column Group. The clinical-stage biotechnology company is developing therapies focused on metabolic disease—like diabetes and obesity—and cancer. Founded in 2008, the company has raised nearly $235 million, per Crunchbase data.
3. Aptos Labs, $150M, blockchain: Just four months after closing a $200 million investment from Tiger Global, Coinbase Ventures and FTX Ventures, whch valued the company at $1 billion, Palo Alto, California-based Aptos Labs decided to double down. The Web3 startup, founded by ex-Meta employees, closed a $150 million Series A led by FTX Ventures and Jump Crypto at a more than $2 billion valuation. Aptos is creating a Layer 1 system blockchain, meaning it will not sit on Ethereum or another network, but will be its own decentralized network. The company is looking to build off of key elements of the Diem blockchain and its smart contract language—Meta’s Stablecoin project that was shuttered earlier this year. Investors are looking at all things Web3 right now, and companies like Aptos are certainly benefiting.
4. Kitchen United, $100M, food: Ghost kitchens are big right now. Chefs want a space to cook, but not an expensive full-service restaurant lease. Enter a company like Kitchen United, which provides tech and real estate for cooks to work on their to-go cuisine and reach paying customers. The Pasadena, California-based company locked up a $100 million Series C that included a wide range of investors—from Kroger to B. Riley Venture Capital to two-time NFL Super Bowl MVP Peyton Manning. Kitchen United currently has about 200 operational kitchens in places like New York, Chicago and Los Angeles. The company will use the new cash to expand further. Founded in 2017, Kitchen United has raised approximately $175 million, per the company.
5. Spotnana, $75M, travel: We are still a long way away from what “normal” was in 2019, but there are signs the travel industry is getting closer to that spot. After funding dipped to VC-backed travel startups during the pandemic in 2020, last year it picked up again—and that has continued into this year. This week, New York-based travel tech startup Spotnana closed a $75 million Series B led by Durable Capital Partners. Founded in 2020, the company has now raised more than $116 million, according to Crunchbase data.
6. Enko Chem, $70M, agtech: Enko Chem, the Connecticut-based crop health company, raised a $70 million Series C funding led by agrochemical company Nufarm. Founded in 2017, Enko says it has now raised $140 million.
7. Unstoppable Domains, $65M, crypto: Web3 startup Unstoppable Domains closed a $65 million Series A led by Pantera Capital at a $1 billion valuation. The company offers NFT domains that give people control of their digital identity. Founded in 2018, the fully remote company has raised $72 million to date, according to Crunchbase data.
8. Vicinitas Therapeutics, $65M, biotech: South San Francisco-based biotech startup Vicinitas Therapeutics locked up a $65 million Series A co-led by a16z and Deerfield Management. The company is developing a protein stabilization platform to develop therapeutics in cancer and genetic disorders.
9. Replay, $55M, biotech: San Diego-based Replay, a genome writing company, launched with $55 million in seed financing led by KKR and OMX Ventures.
10. Three companies tied for the 10th spot, as San Francisco-based Elation Health, San Diego-based Cordial, and Milpitas, California-based Nanosys all raised $50 million this week.
Big global deals
Even though deals were not huge in the U.S. this week, four of the top five deals were domestic. However, the week’s biggest fundraise came from Spain.
- Madrid-based advertising startup Seedtag closed a private equity round worth approximately $255 million.
UG Investment steps outside greater China as risks of Taiwan conflict grow
$4bn hedge fund’s new base will offer haven against invasion and tap south-east Asia markets
UG Investment, one of the oldest hedge funds specialising in Chinese markets, is planning to open its first office outside greater China to step up investment in south-east Asia in a move that would help it guard against the risks from any conflict between China and Taiwan.
The fund, which manages assets of about $4bn, will open an office in Singapore, according to three people with knowledge of the details. It launched in 1998 and currently operates from Taipei and Shanghai.
Tensions between the US and China have increasingly centred on Taiwan, with Russia’s invasion of Ukraine in February fuelling speculation that Beijing could try to annex the democratically governed island in the next few years. China claims sovereignty over Taiwan and the Chinese military has significantly increased its activity in the region over the past two years.
Two people with knowledge of UG’s plans said the risk of invasion was one factor in its decision to open a Singapore office. Other factors included talent retention and recruiting new staff to invest in south-east Asia, one of the people said.
UG’s management, including its chief investment officer Rachel Tsai, are not expected to relocate from Taiwan and the fund will not close its offices in greater China, according to one of the people.
UG’s chief operating officer Brandy Chen, who joined the hedge fund from JPMorgan 13 years ago, visited Singapore in June to look into regulatory licences and office space, the person added.
UG said in response to a request for comment on its move to Singapore that the Financial Times’s information did “not reflect truthfully” its standpoint, but did not elaborate further.
Investment professionals in the region described the opening of an office in Singapore as a sensible precaution.
One founder of another investment firm with links to Taiwan and Hong Kong said it was a “prudent move” but added that he believed the risk of a Chinese invasion of Taiwan was minimal.
Recommended
News in-depthTaiwan
Executives seek briefings on Taiwan war risk
“South-east Asia, especially Vietnam and Indonesia, is where Taiwanese money is generally going in any event,” he added.
Singapore is working to bolster its reputation as a leading financial centre in Asia. Hong Kong has historically been the main hub for global financial services groups in the region, but Beijing’s national security law and draconian pandemic control measures have damaged its reputation.
Singapore launched a new corporate structure in 2020 to encourage hedge funds to move assets.
One of the people with knowledge of the business described UG as one of the “best-kept secrets” of Asian hedge funds.
The low-profile fund was launched by Eugene Wang in 1998 with $20mn of seed capital after he left Taiwanese brokerage group Yuanta Securities. It was one of the first hedge funds in Taiwan and one of the earliest foreign investors in Chinese markets.
It was granted a qualified foreign institutional investor licence shortly after China launched the scheme in 2002, which permitted foreign investors to trade on stock exchanges in Shanghai and Shenzhen for the first time.
Barron’s Weekend Summary: Food prices were rising even before the war in Ukraine, hurt by pandemic-related disruptions on top of devastation from more frequent and severe weather catastrophes.
Cover Story:
Food prices were rising even before the war in Ukraine, hurt by pandemic-related disruptions on top of devastation from more frequent and severe weather catastrophes. Nearly one in three people worldwide—or 2.3B people—didn’t have access to adequate food in 2021, up 350M from pre-pandemic levels, according to the United Nations. An estimated 702M to 828M people in the world faced hunger, up 150M from pre-Covid levels.
Interview:
-Richard Bernstein has spent his 40-plus year career focusing on the macro picture. Following stints at E.F. Hutton and Chase Econometrics/IDC, he moved to Merrill Lynch in 1988, as interest rates climbed under newly appointed Federal Reserve Chairman Alan Greenspan; Bernstein rose to chief investment strategist for the bank. In 2009, he set out on his own, founding Richard Bernstein Advisors.
Tech Trader:
The world’s most important tech companies all reported their quarterly results this past week, and, in each case, the damage from a slowing global economy was in stark evidence. The witch’s brew of rising interest rates, higher fuel costs, the Russian assault on Ukraine, lingering supply-chain issues, and the U.S. dollar’s surge is infecting every tech business. “We’ll all go together when we go,” as the great Tom Lehrer once sang. Financial calamity is the great equalizer.
The Trader:
-3M has had a terrible run in recent years. Since peaking in 2018 at almost $260, its shares have fallen some 45%. It has been plagued by falling profitability as well as legal issues that could burden it with billions of dollars in liabilities. The company started to address some of those problems this past week. Its stock jumped 4.9% on Tuesday after it reported second-quarter earnings. The numbers weren’t great, and management cut its full-year profit guidance, citing a strong U.S. dollar and an uncertain macro environment.
-The recent bear market hit small-capitalization stocks particularly hard. The Russell 2000RUT +0.65% index dropped 32% from its all-time closing high in November through its June 2022 low. That’s far worse than the S&P 500SPX +1.42%’s 24% drop from peak to trough. But it makes sense. Small companies are hit harder by rising rates and a slowing economy than their larger counterparts, and it has been a long time since the Fed has been forced to raise rates as quickly as it has this year.
Features:
-Fair-minded analysts, including some who have been leaders in the responsible investing space, raise legitimate shortcomings about current ESG practices. They point out that the data provided by companies often doesn’t give investors and ratings agencies enough reliable information. That makes it difficult to judge companies’ performance. They also rightly push for companies to go beyond announcing goals and instead provide clear action steps for achieving them.
-Clean-energy policies, including tax credits, encourage investment and job creation, said a GM spokesperson. “Clean energy policies that accelerate the adoption of electric vehicles will establish the U.S. as a global leader in electrification today and into the future.” The corollary is that failing to promote EVs here could leave U.S. car makers at a disadvantage relative to rivals overseas as the world shifts away from internal-combustion engines.
European Trader:
Norwegian conglomerate Orkla is unusual in that it owns businesses producing both. The former industrial giant transformed itself into a consumer-goods company and earned about 37% of its 2021 revenue from its core food business making frozen pizza, sauces, and ready-to-eat meals. The Oslo-listed stock also owns legacy hydroelectric power stations.
Emerging Markets:
-Even as it rolls out modest infrastructure and lending policies, and grapples with a severe property crisis, China’s top leadership on Thursday again signaled that a large-scale stimulus was not on the way to rescue its distressed economy. Chinese markets took the news negatively, falling across the board Friday, after the country’s highest decision-making body, the Politburo, met for a high-level economic meeting, chaired by President Xi Jinping.
Commodities:
-High inflation and monetary tightening are finally hitting consumer and industrial demand, which is “resulting in some demand destruction for most commodities and alleviating some of the upward pressure on prices,” says Matthew Sherwood, senior lead commodities analyst at the Economist Intelligence Unit. Most commodities prices are likely to “ease gradually for the rest of this year and next.”
Streetwise:
-In the Streetwise podcast, Jack Hough wonders whether the bear market is over: “The S&P 500 is up 10% from its low point – a top market strategist shares why it could be a mirage. Plus, recession-proof investing tips from a seasoned fund manager.”
Rumors Of Serbia-Kosovo Clashes Send Border Tensions Soaring, President Addresses Nation
On Sunday evening (local time) there were unverified reports of armed clashes between Serbs and Kosovars along the border between the two countries. Kosovo, which is seen by Serbia as part of its own historic heartland - unilaterally declared itself independent in 2008 - and was quickly recognized as a "country" by the United States under the Bush administration. The border has been tense and seen periodic outbreaks of violence ever since.
And now, international reports say "Kosovo Police announced on Sunday evening that they had closed the Bernjak and Jarinje border crossings to traffic due to roadblocks set up on these roads. The roadblocks were reportedly set up by local Serbs." This was followed by rumors of gunfire exchanged between the two sides, with air raid sirens observed blaring in Mitrovica, Kosovo.
There has long been a minority persecuted community of ethnic Serbs still living in their homes within the West-backed boundaries of Kosovo since the 1990's Yugoslav Wars.
Tensions began spiraling this weekend what Serbia sees as fresh measures by Kosovo to persecute the Serb minority:
The sirens come as Kosovo officials prepared to require Serbians visiting Kosovo to replace their Serbian passports with a temporary ID while in the country and to require Serbian license plates in the country to be replaced with Kosovar license plates.
Serbian President Aleksandar Vucic in a televised address on Sunday urged for peace, but also suggested the Kosovars could be preparing a purge of the Serb minority in the region...
President Vucic in his talk warned against "provocations" out of Pristina, according to a Russian media translation of his words:
"The atmosphere has been heated up, and the Serbs will not suffer any more atrocities," Vucic said in Belgrade on Sunday."My plea to everyone is to try to keep the peace at almost any cost. I am asking the Albanians to come to their senses, the Serbs not to fall for provocations, but I am also asking the representatives of powerful and large countries, which have recognized the so-called independence of Kosovo, to pay a little attention to international law and reality on the ground and not to allow their wards to cause conflict."
The message to the nation followed the Saturday provocative remarks of Serbian Foreign Minister Nikola Selakovic who said to reporters that "the Albanian side in Kosovo and Metohija is literally preparing to raise hell for Serbs."
Serbian leadership is now warning that Kosovars will pay a "high price" if Serbians are attacked.
Serbia's defense ministry later in the day tried to combat rumors of army involvement at this point, in another appeal for calm:
Russia, which has long backed Serbia and condemned the 1999 US-NATO attack and intervention in the country, is reported to be keeping a close eye on the tensions.
Into the night hours, there continue to be unverified reports that Serbia is sending security forces en masse to the border...
Another (or shall we say original) NATO-Russia 'fault line'...
At this point there have been no confirmed major disruptions in commercial air traffic patterns over the region, however, as rumors that the two sides are on a 'war-footing' continue to persist.