>>> Stoxx 600 Pre-Market Indications

  • Telecom Italia (TQI TH) +1%
    • Apollo May Be Interested in Telecom Italia: MF
  • Unilever (UNVB TH) +0.5%
  • Deutsche Bank (DBK TH) -2.1%
  • Linde (LIN TH) -2.1%
  • Delivery Hero (DHER TH) -2.3%
  • HeidelbergCement (HEI TH) -2.4%
    • Builders’ Guidance at Risk on Energy Costs, Morgan Stanley Says
    • Watch EU Luxury, Steel, Iron Shares on Fresh Russia Sanctions
  • Eni (ENI TH) -2.4%
    • Eni Says Strong Diesel Margins in Asia Likely to Be Short-Lived
  • BNP Paribas (BNP TH) -2.5%
  • Commerzbank (CBK TH) -2.8%
  • Evotec SE (EVT TH) -3.2%
  • Equinor (DNQ TH) -5.7%
  • Prosus (1TY TH) -8.8%
    • Wild Swings Rule China Stocks as Bonds, Yuan Also Slide

>>> TradeGate Pre-Market Indications

DAX:
  • Porsche SE (PAH3 TH) +0.5%
  • Airbus (AIR TH) -1%
  • HeidelbergCement (HEI TH) -1.4%
    • Builders’ Guidance at Risk on Energy Costs, Morgan Stanley Says
  • Delivery Hero (DHER TH) -1.5%
  • Linde (LIN TH) -1.6%
  • Deutsche Bank (DBK TH) -1.8%
    • Watch EU Luxury, Steel, Iron Shares on Fresh Russia Sanctions
MDAX:
  • Wacker Chemie (WCH TH) +1.3%
    • Wacker Chemie Sees 2022 Ebitda EU1.2B to EU1.5B, Est. EU1.32B
  • Uniper (UN01 TH) +0.8%
    • Russia Sanctions Could Slash Fortum, Uniper Earnings by 20% (1)
  • Grand City Properties (GYC TH) -1%
  • Commerzbank (CBK TH) -1.7%
  • Lufthansa (LHA TH) -2.1%
  • Evotec SE (EVT TH) -2.8%
  • Fraport (FRA TH) -3.7%
    • Fraport FY Ebitda Beats Estimates
SDAX:
  • SUSE (SUSE TH) +1.4%
    • SUSE Growth Set to Accelerate, Jefferies Upgrades on Sell-Off
  • LPKF (LPK TH) -1.3%
  • Traton (8TRA TH) -2.4%

>>> What to look at today - 15th of March 2022

Stocks and bonds nursed losses Tuesday as the war in Ukraine and looming U.S. monetary-policy tightening to quell inflation hit sentiment. Asian equities fell for a third session amid a drop in Chinese shares, including another selloff in the technology sector. Robust economic data in China failed to ease the gloom much. A weaker yen helped export-reliant Japan to climb. U.S. equity futures made modest gains and European contracts retreated. Wall Street shares dropped Monday, leaving the Nasdaq 100 in a bear market. Bonds remain under pressure, with the U.S. 10-year Treasury yield near the highest level since 2019. The dollar slipped, while the europushed higher. A volatile jump in commodities stemming from Russia’s invasion and the Fed’s expected interest-rate liftoff Wednesday are creating tough market conditions.  Some of the commodity rally is waning. Oil fell below $100 a barrel as traders weighed Ukraine-Russia talks and demand risks from China’s Covid lockdowns. Traders have begun to price in a more forceful path for Fed hikes and now expect about seven quarter-point moves in 2022. Inflation was already high before the war and sanctions on Russia sparked a commodity shock, aggravating global economic challenges. Russia has started the payment process of two bond coupons due this week. Investors are waiting to see if the nation defaults after the U.S. and its allies froze Russia’s foreign-currency reserves. Nickel trading will resume on the London Metal Exchange on Wednesday, over a week after being suspended amid a historic short squeeze.  US After Hours COUP -28.1% falls sharply on earnings/guidance; WING +3.5% gets a new CEO; ANAB -11.9% and EXEL -4.5% fall on clinical data

Nikkei +0.15% Hang Seng -5.54% CSI -3.89% Shanghai -4.27% Shenzen -3.80%

Eur$ 1.0975 CNH 6.3945 CNY 6.3791 JPY 118.33 GBP 1.3039 CHF 0.9397 RUB 120.0625 TRY 14.80.44 WTI$ 98.38 -4.49% Gold 1,930.20 -1% BTC 38,850 +0.30% ETH 2,550 +1%

S&P -0.07% Nasdaq +0.05% EuroStoxx -1.05% FTSE -0.55% Dax -0.83% SMI -0.60%

Macro :
- Europe Is Getting Caught by a Covid Resurgence After Rushed Exit
- Oil Drops Below $100 as Traders Eye Supplies
- Chelsea Suitor Candy Says Funds Ready to Bid for Football Club
- Quant Giant’s Rare Advice to Pull Cash Shows China Market Woes

Keep an eye on :
- AC FP : Accor Plans to Open More Than 300 Hotels, Resorts in 2022
- ADDVA SS : ADDvise Group Offers SEK100m Shares via Pareto Securities, 15.4m Shares Prices at SEK6.5/Share
- ALV GY : Allianz, Swiss Re Cutting Back on Business in Russia: Reuters
- AGAS NO : Avance Gas Holding CEO Resigns as Chairman Also Steps Down
- AZA SS : Avanza, Safello Examine Partnership for Crypto Asset Trading
- IAG LN : Heathrow, Virgin, BA to Ease Mask Rules as U.K. Ends Curbs
- BYS SW : Bystronic Sees 2022 Revenue +10% to +12%
- CARLB DC : Carlsberg Chairman Sees Risk of Russia Seizing Assets: Borsen
- COUP US : Coupa Software Plunges After 1Q Revenue Forecast Misses --> -28% in After Hours
- DIE BB : D’Ieteren to Buy Parts Holding Europe for EU540m From Bain
- Discord IPO : Discord Said to Interview Banks for Possible Direct Listing
- DUFN SW : Dufry Extends Duty-Free Concession, Ups Retail Space in Bali
- ENGB BB : Rosier Seeks Extension of Trading Suspension in Brussels
- EQNR NO : Equinor Confirms to Stop Trading in Russian Oil, Oil Products
- ERG IM : ERG 4Q Adjusted Ebitda EU180M Vs. EU119M Y/y
- ERICB SS : ISS Recommends No Discharge From Libaility for Ericssons CEO: DI
- FAGR BB : Fagron Sees Adj. Ebitda Margin Consistent With 2017-2021 Average
- Ferretti IPO : Italian Yachtmaker Braves Luxury Storm With H.K. IPO
- FFARM NA : ForFarmers Halts Buyback Due to Uncertainty from Ukraine War
- G IM : Generali Proposes Donnet as CEO, Sironi as Chairman
- G IM : Generali Full Year Profit Spurred by Higher Operating Income
- INF LN : Informa 2022 Revenue Forecast Beats Estimates
- KIN BB : Kinepolis Reaches Pact to Extend Covenant Holiday Until Year-End
- METN SW : Metall Zug FY Net Sales Beats Estimates
- NEOEN FP : Neoen Sees 2022 Ebitda EU360M to EU375M, Est. EU371.2M
- NOKIA FH : Nokia stock rallies after Raymond James says it's OK to buy now
- NDA SS : Nordea Bank to Launch $1.1 Billion Share Buyback
- PPGN SW : PolyPeptide Group FY Revenue EU282.1M Vs. EU223.0M Y/y
- PAH3 GY : Porsche SE and Bridgepoint Buy Econolite Group; No Terms
- RLF SW : Relief’s APR UNIT Signs Pact to Commercialize PKU Drug; No Terms
- SAF FP : Safran Suspends Exports, Services to Russia on War Sanctions
- SAN FP : Sanofi, Blackstone Life Sciences Announce EU300M Collaboration
- SENS SW : Sensirion 2022 Revenue Forecast Beats Estimates
- SWMA SS : Swedish Match Suspends Its Spin-Off of the Cigar Business
- SREN SW : Allianz, Swiss Re Cutting Back on Business in Russia: Reuters
- SOLB BB : Solvay Plans to Spin Off Materials, Solutions Units in 2H 2023
- SRAIL SW : Stadler Rail FY Net Revenue Misses Estimates
- TEG GY : TAG Immobilien FY FFO per Share Matches Estimates
- TECN SW : Tecan FY Sales Misses Estimates
- TIT IM : Apollo May Be Interested in Telecom Italia: MF
- TSLA US : Tesla Increases Prices Across Whole Lineup: Electrek
- URW NA : Unibail-Rodamco-Westfield Sells U.S. Dev. Parcel for $150M
- VOW GY : China Lockdowns Hit Production for Toyota, VW to Apple Suppliers
- VOW GY : Volkswagen Cuts Overhead Costs by 10% A Year Ahead of Schedule
- WCH GY : Wacker Chemie Sees 2022 Ebitda EU1.2B to EU1.5B, Est. EU1.32B

>>> Europe : Brokers Upgrades & Downgrades - 15th of March 2022

>>> Up
* Aryzta Raised to Buy at Baader Helvea; PT 1.30 Swiss francs
* Danske Bank Raised to Hold at Nordea
* Deutsche Boerse Raised to Outperform at Exane; PT 180 euros
* EssilorLuxottica Raised to Hold at SocGen; PT 179 euros
* Mosaic Raised to Buy at Goldman; PT $83
* Repsol Raised to Reduce at AlphaValue/Baader
* Shelf Drilling Raised to Buy at SpareBank; PT 12 kroner
* SUSE Raised to Buy at Jefferies; PT 31 euros
* Swedbank Raised to Neutral at Goldman; PT 169 kronor
* Unibail Raised to Buy at SocGen; PT 71 euros
* Zalando Raised to Neutral at Exane; PT 52 euros

>>> Down
* AB Foods Cut to Neutral at Exane; PT 2,050 pence
* Aperam Cut to Neutral at Exane; PT 56 euros
* Ashmore PT Cut to 200 pence from 250 pence at Berenberg
* Asos Cut to Underperform at Exane; PT 1,900 pence
* Bank of Ireland Cut to Sell at AlphaValue/Baader
* BCP Cut to Add at AlphaValue/Baader
* Boozt Cut to Sell at Nordea; PT 130 kronor
* Coupa Software Cut to Neutral at Piper Sandler; PT $70
* Currys Cut to Underperform at Exane; PT 85 pence
* HeidelbergCement Cut to Equal-Weight at Morgan Stanley
* Sabadell Cut to Reduce at AlphaValue/Baader

>>> Initiation


>>> Call
* Ashmore PT Cut to Street-Low at Berenberg on Further Downside
* Builders’ Guidance at Risk on Energy Costs, Morgan Stanley Says
* Nokia Rises as Raymond James Upgrades on Market Opportunity
* SUSE Growth Set to Accelerate, Jefferies Upgrades on Sell-Off

FT : The Tudor mansion fit for a king, and possibly a Russian oligarch

The Tudor mansion fit for a king, and possibly a Russian oligarch
How do you seize a house if you can’t prove who owns it?

That’s the question facing the UK government which, having talked tough about sanctioning oligarchs, could now be hamstrung by the country’s knotty property ownership structures.

The scale of the challenge facing ministers is brought to life by the curious case of Sutton Place, a sprawling, Grade I-listed manor house built in Surrey for a courtier of Henry VIII.

Almost 20 years after the home last changed hands, the identity of its ultimate buyer remains a mystery.

The government claims the house now belongs to Alisher Usmanov, the Uzbekistan-born Russian multi-billionaire who once tried to buy Arsenal football club and was recently slapped with sanctions. But Usmanov’s people have cast doubt on that assertion.
A spokesperson for billionaire Alisher Usmanov cast doubt on the oligarch’s ownership of Sutton Place. The registered owners are listed on the Land Registry as two Cyprus-incorporated companies © David Cooper/Alamy
The ownership of the estate can be traced back as far as 1521 when it was entrusted by Henry VIII to the diplomat Sir Richard Weston.

Fast forward to more recent times and the manor was bought in the late 1950s by the American oil baron John Paul Getty, who sold it to the art collector Stanley J. Seeger until it was purchased by the late industrial scion Frederick R. Koch (not to be confused with his Republican mega-donor younger brothers). But since the eldest Koch put the place up for sale in 1999, the trail became harder to follow.

George Hammond, the FT’s property correspondent, tried to find an answer by pulling at a thread that runs from the 16th-century house, through an office in Nicosia, Cyprus, and has tangential links to a battered industrial estate in Bounds Green, north London.

It was there where opposite a nursery and a shop selling bathroom tiles he found the registered offices of one company named “Arsenal Minerals” and another directed by a Russian who built his fortune in vodka and real estate and who once was a business partner of Usmanov.

But among the clues, there was no definitive answer to the vexed question of the Tudor manor’s ownership.

Instead, the hunt for an owner shines a light on the opaque, convoluted ownership structures that have helped make UK property a preferred destination for the global wealthy to park their millions (or billions) discreetly.

The government is looking to rein in the system by introducing a register of ownership long called for by transparency campaigners.

The measures used by the super-rich to disguise ownership date back to the Middle Ages, when noblemen fighting wars overseas placed their land in trusts, while retaining rights to use the land and benefiting if it was sold.

“That’s how landed estates remained intact in England,” explained one property lawyer. “But no one was using offshore companies in Antigua during the Crusades.”

FT : Tim Leissner’s testimony in 1MDB trial shines light on vast fraud

Tim Leissner’s testimony in 1MDB trial shines light on vast fraud
Case against former Goldman banker Roger Ng hangs on evidence from colleague turned foe

In 2012, Goldman Sachs banker Tim Leissner was paid a total of $12mn, a personal record, after arranging blockbuster bond deals for state investment fund 1MDB, the proceeds from which he would later help steal.

But that was not enough. The former Goldman partner would go on to work on three 1MDB bonds overall in 2012 and 2013, raising roughly $6.5bn, to feed a fraudulent scheme that, the US Department of Justice alleges, siphoned more than $2.7bn off from the Malaysian fund.

While vigorously pursuing deals for Goldman, Leissner also moonlighted as an adviser on potential deals in the Philippines and Vietnam in violation of bank policy. When prosecutors in a New York court asked why, he replied in a deadpan tone: “To earn more money than I was being paid”. 

Leissner’s testimony in the long-awaited trial of former Goldman banker Roger Ng — who has been charged by US authorities with conspiring to bribe officials and launder billions of dollars from 1MDB — has provided a unique window into one of the key players in an embezzlement scheme that US officials have labelled “kleptocracy at its worst”. 

The jury’s perception of Leissner’s testimony, which concluded last week, could be critical to the outcome of the trial. The ex-partner, who has pleaded guilty to charges of conspiring to launder money and violate foreign bribery laws in connection with the 1MDB fraud, struck a co-operation agreement with the US government in the hope of receiving a more lenient sentence.

Leissner’s role as the government’s star witness pits him directly against his former colleague Ng in a showdown that will prove consequential for both. If convicted, Ng — who has pleaded not guilty — faces 30 years in prison. Leissner faces up to 25 years in prison when he is sentenced.

During 10 days of testimony, Leissner, a 52-year old born in Germany, explained what happens when a cocktail of hubris, greed and ambition mixes with a platform like Goldman — one of the most prestigious and hard-nosed banks on Wall Street.

“I was a very ambitious child” and investment banking was an “environment feeding off the ambition I had built”, Leissner told prosecutors in one of several instances where he tried to explain his crimes by pointing to the industry’s hyper-competitiveness. “I wanted to be a hero at Goldman Sachs.” 

Very few investment bankers become ensnared in multibillion dollar scandals, but Leissner’s testimony nonetheless sheds light on how far some dealmakers are willing to go to secure lucrative transactions — and pay cheques — even accepting corruption as a cost of doing business.

“I can’t say I was surprised,” Leissner said of his reaction when recounting a meeting in London where Jho Low, the Malaysian financier accused of masterminding the fraud, allegedly said government officials would need to be paid bribes for the 1MDB bond deals to go ahead. Low maintains his innocence and is at large.

Powerful people the world over were dragged into the 1MDB scandal by Leissner’s testimony, from Malaysian politicians and Abu Dhabi government officials to celebrities who allegedly attended lavish parties thrown by Low.

Leissner emerged as a driven deal-chaser, his excitement over closing complex transactions palpable during parts of his testimony, including his recollection of a desperate dash to secure final approval for one of the bond deals after a signatory had disappeared to the south of France.

“I would have flown to the North Pole . . . to make this happen,” the ex-partner said about the second 1MDB transaction, which generated $200mn in fees for Goldman.

Leissner estimated the bank made close to an “unprecedented” $700mn from the 1MDB bond deals — about $100mn more than the figure given by prosecutors.

The bank has declined to comment on Leissner’s higher estimate and has said it was lied to by “certain members of the former Malaysian government and 1MDB”. Leissner admitted to lying during Goldman’s internal reviews of the 1MDB deals. The bank struck a settlement of up to $3.9bn with Malaysia and paid a record $2.9bn in a global settlement in 2020. Its Malaysian subsidiary pleaded guilty to a bribery charge.

Leissner told prosecutors that joining the group of Goldman partners in 2006, the elite group that makes up 1 per cent of the bank’s staff, was “a dream come true”. The appointment cemented Berlin-born Leissner’s ascent from a “fairly modest” family in Germany. But the promotion was not “enough,” Leissner told the court. “Greed and ambition took over.” 

Marc Agnifilo, Ng’s lawyer, sought to question Leissner’s credibility by cataloguing the lies he told Goldman, US authorities and his partners. “He’s strategic in every area of his life . . . he’s a deal closer,” Agnifilo told the judge.

Leissner described a personal life that was just as convoluted as his professional one. He testified to Photoshopping divorce papers so he could marry his estranged wife, former model Kimora Lee Simmons, and to faking a document linked to a previous divorce in the Dominican Republic. He said he was also temporarily engaged to the niece of a Malaysian state’s chief minister while married to another woman.

Leissner also had alleged affairs with the daughter of a former Malaysian ambassador and Rohana Rozhan, the former CEO of Astro Malaysia Holdings, a Malaysian media group. Leissner testified he bought Rozhan a $10mn apartment in London with stolen 1MDB funds because she threatened to expose his involvement in the scheme after he ended their 10-year relationship. Rozhan’s lawyers, who did not respond to a request for comment, have said she is co-operating with Malaysian authorities, according to media reports.

In his pursuit of a glitzy lifestyle, Leissner spent his share of the stolen 1MDB proceeds, roughly $60mn, on a 170ft yacht and real estate in New York and London as well as investments in Italian football team Inter Milan. After burning through the cash, he was forced to ask friends for money, some of whom have not been repaid.

Leissner’s pursuit of riches and status came to a screeching halt when US authorities arrested him at a Washington airport in 2018. He told the court now was the “time to do the right thing” and “take responsibility” for actions that have “destroyed” his life. He has forfeited $44mn of embezzled 1MDB funds to the US as part of his co-operation agreement.

Leissner testified that while talking to the government following his arrest, he initially minimised his involvement in the scheme but came “clean” after realising a paper-trail of documents would reveal the truth.

When a prosecutor asked him what sentence he hoped to receive, Leissner responded: “I hope I don’t have to go to prison, sir.”

(ZH) 10 Signs The War In Ukraine Is Part Of The Great Reset

10 Signs The War In Ukraine Is Part Of The Great Reset
BY TYLER DURDEN
TUESDAY, MAR 15, 2022 - 04:40 AM
Welcome to the second phase of the Great Reset: war.
While the pandemic acclimatised the world to lockdowns, normalised the acceptance of experimental medications, precipitated the greatest transfer of wealth to corporations by decimating SMEs and adjusted the muscle memory of workforce operations in preparation for a cybernetic future, an additional vector was required to accelerate the economic collapse before nations can ‘Build Back Better.’
I present below several ways in which the current conflict between Russia and Ukraine is the next catalyst for the World Economic Forum’s Great Reset agenda, facilitated by an interconnected web of global stakeholders and a diffuse network of public-private partnerships.
1. The war between Russia and Ukraine is already causing unprecedented disruption to global supply chains, exacerbating fuel shortages and inducing chronic levels of inflation.
As geopolitical tensions morph into a protracted conflict between NATO and the Sino-Russia axis, a second contraction may plunge the economy into stagflation.
In the years ahead, the combination of subpar growth and runaway inflation will force a global economic underclass into micro-work contracts and low-wage jobs in an emerging gig economy.
Another recession will compound global resource thirst, narrow the scope for self-sufficiency and significantly increase dependence on government subsidies.
With the immiseration of a significant portion of the world’s labour force looming on the horizon, this may well be a prelude to the introduction of a Universal Basic Income, leading to a highly stratified neo-feudal order.
Therefore, the World Economic Forum’s ominous prediction that we will ‘own nothing and be happy’ by 2030 seems to be unfolding with horrifying rapidity.
2. The war’s economic fallout will lead to a dramatic downsizing of the global workforce.
The architects of the Great Reset have anticipated this trend for a number of years and will exploit this economic turbulence by propelling the role of disruptive technologies to meet global challenges and fundamentally alter traditional business patterns to keep pace with rapid changes in technology.
Like the pandemic, disaster preparedness in the age of conflict will rest significantly on the willingness to embrace specific technological innovations in the public and private spheres so that future generations can supply the labour demands of the Great Reset.
A recurring theme in Klaus Schwab’s Shaping the Future of the Fourth Industrial Revolution is that groundbreaking technological and scientific innovations will no longer be relegated to the physical world around us but become extensions of ourselves.
He emphasises the primacy of emerging technologies in a next generation workforce and highlights the urgency to push ahead with plans to digitise several aspects of the global labour force through scalable technology based solutions.
Those spearheading the Great Reset seek to manage geopolitical risk by creating new markets which revolve around digital innovations, e-strategies, telepresence labour, Artificial Intelligence, robotics, nanotechnology, the Internet of Things and the Internet of Bodies.
The breakneck speed in which AI technologies are being deployed suggest that the optimization of such technologies will initially bear on traditional industries and professions which offer a safety net for hundreds of millions of workers, such as farming, retail, catering, manufacturing and the courier industries.
However, automation in the form of robots, smart software and machine learning will not be limited to jobs which are routine, repetitive and predictable.
AI systems are on the verge of wholesale automation of various white collar jobs, particularly in areas which involve information processing and pattern recognition such as accounting, HR and middle management positions.
Although anticipating future employment trends is no easy task, it’s safe to say that the combined threat of pandemics and wars means the labour force is on the brink of an unprecedented reshuffle with technology reshaping logistics, potentially threatening hundreds of millions of blue and white collar jobs, resulting in the greatest and fastest displacement of jobs in history and foreshadowing a labour market shift which was previously inconceivable.
While it has long been anticipated that the increased use of technology in the private sector would result in massive job losses, pandemic lockdowns and the coming disruption caused by a war will speed up this process, and many companies will be left with no other option but to lay off staff and replace them with creative technological solutions merely for the survival of their businesses.
In other words, many of the jobs which will be lost in the years ahead were already moving towards redundancy and are unlikely to be recovered once the dust is settled.
3. The war has significantly reduced Europe’s reliance on the Russian energy sector and reinforced the centrality of the UN Sustainable Development Goals and ‘net zero‘ emissions which lies at the heart of the Great Reset.
Policymakers marching lockstep with the Great Reset have capitalised on the tough sanctions against Russia by accelerating the shift towards ‘green’ energy and reiterating the importance of decarbonisation as part of the ‘fight against climate change’.
However, it would be very short-sighted to assume that the Great Reset is ultimately geared towards the equitable distribution of ‘green’ hydrogen and carbon-neutral synthetic fuels replacing petrol & diesel.
While UN SDGs are crucial to post-pandemic recovery, more importantly, they are fundamental to the makeover of shareholder capitalism which is now being vaunted by the Davos elites as ‘stakeholder capitalism’.
In economic terms, this refers to a system where governments are no longer the final arbiters of state policies as unelected private corporations become the de facto trustees of society, taking on the direct responsibility to address the world’s social, economic and environmental challenges through macroeconomic cooperation and a multi-stakeholder model of global governance.
Under such an economic construct, asset holding conglomerates can redirect the flow of global capital by aligning investments with the UN’s SDGs and configuring them as Environmental, Social, and Corporate Governance (ESG) compliant so that new international markets can be built on the disaster and misery of potentially hundreds of millions of people reeling from the economic collapse caused by war.
Therefore, the war offers a huge impetus for the governments pushing the reset to actively pursue energy independence, shape markets towards ‘green and inclusive growth’ and eventually move populations towards a cap-and-trade system, otherwise known as a carbon credit economy.
This will centralise power in the hands of stakeholder capitalists under the benevolent guise of reinventing capitalism through fairer and greener means, using deceptive slogans like ‘Build Back Better’ without sacrificing the perpetual growth imperative of capitalism.
4. Food shortages created by the war will offer a major boon to the synthetic biology industry as the convergence of digital technologies with materials science and biology will radically transform the agricultural sector and encourage the adoption of plant-based and lab-grown alternatives on a global scale.
Russia and Ukraine are both breadbaskets of the world and critical shortages in grains, fertilisers, vegetable oils and essential foodstuffs will catapult the importance of biotechnology to food security and sustainability and give birth to several imitation meat start-ups similar to ‘Impossible Foods’ which was co-funded by Bill Gates.
One can therefore expect more government regulation to usher a dramatic overhaul to industrial food production and cultivation, ultimately benefiting agribusiness and biotech investors, since food systems will be redesigned through emerging technologies to grow ‘sustainable’ proteins and CRISPR gene-edited patented crops.
5. Russia’s exclusion from SWIFT (The Society for Worldwide Interbank Financial Telecommunication) foreshadows an economic reset which will generate precisely the kind of blowback necessary for corralling large swathes of the global population into a technocratic control grid.
As several economists have opined, weaponizing SWIFT, CHIPS (The Clearing House Interbank Payments System) and the US Dollar against Russia will only spur geopolitical rivals like China to accelerate the process of de-dollarisation.
The main benefactor of economic sanctions against Russia appears to be China which can reshape the Eurasian market by encouraging member states of the Shanghai Cooperation Organisation (SCO) and BRICS to bypass the SWIFT ecosystem and settle cross-border international payments in the Digital Yuan.
While the demand for cryptocurrencies will see a massive spike, this is likely to encourage many governments to increasingly regulate the sector through public blockchains and enforce a multilateral ban on decentralised cryptocurrencies.
The shift to crypto could be the dress rehearsal to eventually expedite plans for programmable money overseen by a federal regulator, leading to the greater accretion of power in the hands of a powerful global technocracy and thus sealing our enslavement to financial institutions.
I believe this war will bring currencies to parity, therefore heralding a new Bretton Woods moment which promises to transform the operation of international banking and macroeconomic cooperation through the future adoption of central bank digital currencies.
6. This war marks a major inflection point in the globalist aspiration for a new international rules-based order anchored in Eurasia.
As the ‘father of geopolitics’ Halford Mackinder opined over a century ago, the rise of every global hegemon in the past 500 years has been possible because of dominance over Eurasia. Similarly, their decline has been associated with losing control over that pivotal landmass.
This causal connection between geography and power has not gone unnoticed by the global network of stakeholders representing the WEF, many of whom have anticipated the transition to a multipolar era and return to great power competition amid America’s receding political and economic influence and a pressing need for what technocrats call smart globalisation.
While America tries desperately to cling to its superpower status, China’s economic ascent and Russia’s regional ambitions threaten to upend the strategic axial points of Eurasia (Western Europe and Asia Pacific).
The region in which America previously enjoyed uncontested hegemony is no longer impervious to cracks and we may be witnessing a changing of the guard which dramatically alters the calculus of global force projection.
Although China’s ambitious Belt and Road Initiative (BRI) has the potential to unify the world-island (Asia, Africa and Europe) and cause a tectonic shift in the locus of global power, the recent invasion of Ukraine will have far-reaching consequences for China-Europe rail freight.
The Ukrainian President Zelensky claimed that Ukraine could function as the BRI’s gateway to Europe. Therefore, we cannot ignore China’s huge stake in the recent tensions over Ukraine, nor can we ignore NATO’s underlying ambition to check China’s rise in the region by limiting the sale of Ukrainian assets to China and doing everything in its capacity to thwart The Modern Silk Road.
As sanctions push Russia towards consolidating bilateral ties with China and fully integrating with the BRI, a Pan-Eurasian trading bloc may be the realignment which forces a shared governance of the global commons and a reset to the age of US exceptionalism.
7. With speculation mounting over the war’s long term impact on bilateral trade flows between China and Europe, the Russia-Ukraine conflict will catapult Israel –to even greater international prominence.a leading advocate of the Great Reset –
Israel is a highly attractive BRI market for China and the CCP is acutely aware of Israel’s importance as a strategic outpost connecting the Indian Ocean and the Mediterranean Sea through the Gulf of Suez.
Furthermore, the Chinese government has for many years acknowledged the primacy of Israel as a global technology hub and capitalised on Israel’s innovation capabilities to help meet its own strategic challenges.
Therefore, Naftali Bennet’s mediation between Moscow and Kiev is likely to factor the instrumental role of the Belt and Road Initiative (BRI) in expanding both China and Israel’s regional and global strategic footprint.
Israel’s status as among the leading tech hubs of the future and gateway connecting Europe and the Middle East is inextricably tied to the web of physical infrastructures, such as roads, railways, ports and energy pipelines which China has been building over the past decade.
Already a powerhouse in auto-technologies, robotics and cybersecurity, Israel aspires to be the central nation in the millennial Kingdom and the country’s tech startups are predicted to play a key role in the fourth industrial revolution.
Strengthening its evolving relationship with China amid the Russia-Ukraine crisis could help propel Israel into a regional hegemon par excellence with a large share of centralised economic and technological power converging in Jerusalem.
As Israel embarks on efforts to diversify its export markets and investments away from the United States, it begs an important question.
Is Israel in the formative stages of outsourcing its security interests away from the US and hedging its bets on the Sino-Russia axis?
8.It is now common knowledge that Digital IDs are a central plank in the World Economic Forum’s Great Reset agenda and are to be streamlined across industries, supply chains and markets as a way of advancing the UN 2030 SDGs and delivering individualised and integrated services in future smart cities.
Many have cottoned on to how such a platform can be used to usher in a global system of technocratic population control and compliance by incorporating humanity into a new corporate value chain where citizens are mined as data commodities for ESG investors and human capital bond markets and assigned a social and climate score based on how well they measure up against the UN SDGs.
This seamless verification of people and connected devices in smart environments can only take place once our biometrics, health records, finances, education transcripts, consumer habits, carbon footprint and the entire sum of human experiences is stored on an interoperable database to determine our conformity with the UN SDGs, thus forcing a monumental change to our social contract.
Vaccine passports were initially touted by public-private partnerships as an entry point for Digital IDs. Now that such a logic has run its course, how might the present geopolitical tensions contribute to scaling what is the key node in a new digital ecosystem?
Ukraine has traditionally been called Europe’s breadbasket and alongside Russia, both nations are major global suppliers of staple grains. Therefore, the war has all the makings of a black swan for commodities and inflation.
With an economy teetering on the brink of collapse due to a global supply crunch, I believe the resulting economic tremors will trigger wartime emergencies across the world and the public will be told to brace themselves for rationing.
Once this takes place, the multilateral adoption of Digital IDs which interface with Central Bank Digital Currencies can be touted as the solution to efficiently manage and distribute household rations under an unprecedented state of emergency and exception.
The Bank of England has already floated the prospect of programmable cash which can only be spent on essentials or goods which an employer or government deem sensible.
Once the issuer is granted control over how it is spent by the recipient, it will become nigh impossible to function adequately without a Digital ID, which will be required to receive food parcels and obtain a basic means of subsistence. Think UBI (Universal Basic Income).
If food inflation continues on an upward trajectory with no signs of abating, governments may institute price controls in the form of rationing and ration entries could be logged on blockchain ledgers on the Digital ID to track our carbon footprint and consumptive habits during a national emergency.
9. Europe is directly in the line of fire once a hybrid war between NATO and the Sino-Russia axis is underway.
It would be remiss to ignore the clear and present danger posed by a cyber attack on banks and critical infrastructure or even a tentative and tactical nuclear exchange with intercontinental ballistic missiles (ICBMs).
I can’t see how any warring party will not be limited by the doctrine of mutually assured destruction so a thermonuclear fallout is unlikely.
However, the use of remote access technologies to erase system memory from the SWIFT banking apparatus or Cross-Border Interbank Payment System can potentially render much of the international economy non-operational and send the dollar into a tailspin.
If an event of such cataclysmic proportions was to occur, it will undoubtedly lead to increasing demands to overhaul cyber security.
The fallout from such an event could very well establish a new global security protocol according to which citizens must possess a Digital ID as a necessary national security measure.
One can imagine how accessing the internet or public services in the aftermath of a nationwide cyberattack may require citizens to use a Digital ID to authenticate that their online activities and transactions are from a legitimate and non-malicious source.
There are few coincidences in politics.
10. The economic implications of this war will be so disastrous that governments and the public sector will require a significant injection of private capital to address the financing shortfall.
This will effectively render the traditional separation of powers between central banking institutions and governments obsolete, as the former will be positioned to disproportionately influence the fiscal trajectory of nation states, whose sovereignty will be hollowed out by the wholesale capture of governments by the central banks and hedge funds.
Therefore, the nation-state model is gradually being upended by a global technocracy, consisting of an unelected consortium of leaders of industry, central banking oligarchs and private financial institutions, most of which are predominantly non-state corporate actors attempting to restructure global governance and enlist themselves in the global decision-making process.
Therefore, the future of international relations and the social, economic and political transformation which the world is presently undergoing in light of the pandemic and Russia-Ukraine conflict will not be decided through multilateralism and elected representatives of sovereign states.
Rather, it will be decided through a network of multi-stakeholder partnerships which are motivated by the politics of expediency and not accountable to any electorate or beholden to any state and for whom concepts like sovereignty and international law are meaningless.

Gatestone Institute : Why Did Vladimir Putin Invade Ukraine?

FT : Are the US oil majors a bargain?

Are the US oil majors a bargain?
Lots of people don’t want to own oil stocks, and that is reasonable.

Of course, it won’t make any difference to the environment if even a large majority of public market investors take fossil fuels out of their portfolios. The industry is not capital constrained, and there are ample sources of private, ethically flexible capital that can supply such needs as it has. As long as demand for oil, gas and coal persists, who owns what financial instrument will not change industry operations.

But if you don’t want to collect dividends from (say) ExxonMobil, I get that. I myself pray that a faster than expected energy transition crushes the fossil fuel industry. So it’s odd for me to bet my savings on that not happening.

What follows puts all that aside. There has been a shock to the energy market, and we’re all trying to figure it out. One lens on that is analysing equity prices. So here goes.

Despite a big run-up, the big US exploration and production companies still look very cheap, on first blush. Some stats on six of the biggest (these are percentages, except for the first column):
Companies on low double-digit price/earnings ratios with revenues growing at 50 per cent or more are enticing, but remember that commodity stocks’ PE ratios are deceptive. Commodity-extraction groups’ earnings are volatile. The denominator (earnings) rises very quickly when the price of the commodity rises, pushing the ratio down. Often it makes sense to buy them when their PE ratios are high (trench earnings) and sell then when they are low (peak earnings) — the very opposite of most stocks.

The key column to look at, then, is the last: free cash flow yield. This is the amount of distributable cash a company generates, as a percentage of its stock market value. Take Pioneer’s 19 per cent cash flow yield. What that means, in essence, is that at its current level of profitability, it will make enough money to buy itself in just a little over five years. If all that money ends up in investors’ hands, either through dividends or share buybacks and price appreciation, then you can think of buying the stock as an investment where you get all your principal back over five years, and then you get a free option on whatever the company is worth after that.

With free cash flow generation and shareholder value, though, there is many a slip between cup and lip. For example, a company may decide to do an acquisition or an investment project rather than pay a dividend or buy back shares.

Recently, though, American producers have been focusing on returns over investment to such a degree that, with petrol prices rising, politicians are mad about it. From a story last week by my colleague Derek Brower:

Scott Sheffield, chief executive of Pioneer Natural Resources, the shale patch’s biggest oil producer, said in an interview that his shareholders wouldn’t let him spend more [on increased production]. Were any of them willing to budge at $120 crude? “None. Not at all,” he said.

Amos Hochstein, the state department official co-ordinating much of Joe Biden’s energy strategy, told the Financial Times that wasn’t good enough. “They should call their financiers and tell them there’s a war going on,” he said of the shale producers. “The American public is paying the price.”

The good news for investors is that the oil companies don’t seem to care. From a recent note by Credit Suisse analyst William Janela:

We caught up with most of our large-cap E&Ps [exploration and production companies] in recent days and heard a consistent message that there is no appetite to ramp up production in response to bans/sanctions on Russian oil imports . . . companies and shareholders alike are wary of jeopardising the low-growth, FCF/cash return value proposition that’s taken years to materialise and is finally resonating with investors.

American oil companies would rather make more money than produce more oil. At least that is what they are saying and, so far, doing. This is the central plank of a bull case on oil prices (and therefore US oil producers). The other big planks would be:

  • Oil is a hedge against inflation.

  • Oil companies are in all the value indices. If we are in the middle of a growth-to-value rotation, oil groups will benefit.

  • The nightmare in Ukraine is nowhere near over, and the shocks to the oil market will keep rolling in, making stable supply from US majors more valuable.

At this point in the argument, the US oil majors do look very cheap. But the stock market does not tend to leave money lying around. There are two very big uncertainties reflected in the price of the majors. The first is obvious: no one knows how this war plays out.

One strategist at an energy consultancy put the second uncertainty to me as follows:

Does this war accelerate the energy transition, and by how much? If it accelerates it from 30 years to 20 years, I’m buying Conoco. If it accelerates it from 30 to 10, it gets pretty tough [to own these stocks].

The investment proposition for the oil majors depends a lot on what happens in nuclear, wind, solar and energy storage technology.

European markets are worried, rationally
A US recession, we told you on Monday, is a fair possibility, but not anyone’s base case. Europe, though, is a different story. Last month Germany’s central bank warned the country may have already veered into a technical recession (ie, two quarters of negative growth). That was before Russia invaded Ukraine.

Forecasters are split, putting an average one-in-four chance on a eurozone recession in 2022, according to Bloomberg data. Recent projections I’ve seen are playing down recession risk. Here’s one, published on Monday from Pantheon Macroeconomics:

The war in Ukraine will knock 0.6 percentage points off [eurozone] GDP growth this year in our baseline scenario. We have revised down our GDP forecast to 3.2 per cent. In a worst-case scenario, where the war lasts past the end of this year and gas and oil prices rise substantially more, we still do not expect a recession. Fiscal policy should prevent this.

But markets aren’t waiting for forecasts. They’re already braced for something bad. Since Russia’s invasion in late February, the Euro Stoxx 50 is off 6 per cent, versus 3 per cent for the S&P 500. Over the same period, Europe’s main stock volatility index has shot up twice as fast as America’s Vix.

European credit markets are getting jumpy too, as frequent Unhedged correspondent Dec Mullarkey of SLC Management notes. Spreads on European investment-grade bonds, after trading close to US equivalents, have widened. Investors want an extra dollop of yield to make up for the geopolitical risk they’re taking by owning European businesses. I’ve recreated Mullarkey’s key chart below:

Something similar is happening with bank stocks. European banks have long lagged America’s much more profitable banks, but the recent divergence is unusually big:

The most obvious fear is that Russia’s war drags on, sanctions tighten further, Russia cuts off Europe’s gas and a fresh energy crisis erupts. The European Central Bank would have to choose — raise interest rates even as growth stumbles, or hold them steady and let inflation run hot. The risk of slower rate rises helps explain how badly European bank stocks are performing.

Nervous markets are broadly a good sign, though. We aren’t seeing panicked fire sales, nor complacency. Staring down a crisis that could worsen, investors are weighing up the risks. Perhaps it is another indication markets are functioning as they should, despite circumstances that would test even the most level-headed investor.