(ZH) Royal Air Force Pilots Ordered To Shoot Down "Hostile" Russian Jets Over Sy

Royal Air Force Pilots Ordered To Shoot Down "Hostile" Russian Jets Over Syria

As the US officially enters the Yemen military campaign, the UK appears ready and willing to precipiate a catalytic event from which there is no going back. With relations between Russia and the West at post-Cold War lows and deteriorating fast, Royal Air Force (RAF) pilots have been given the go-ahead to shoot down Russian military jets when flying missions over Syria and Iraq, if they are endangered by them. The development comes with warnings that the UK and Russia are now "one step closer" to being at war, according to the Sunday Times.
While the RAF's Tornado pilots have been instructed to avoid contact with Russian aircraft while engaged in missions for Operation Shader, the codename for the RAF's anti-Isis work in Iraq and Syria, their aircraft have been armed with air-to-air missiles and the pilots have been given the green light to defend themselves if they are threatened by Russian pilots.

"The first thing a British pilot will do is to try to avoid a situation where an air-to-air attack is likely to occur — you avoid an area if there is Russian activity," an unidentified source from the UK's Permanent Joint Headquarters (PJHQ) told the Sunday Times. "But if a pilot is fired on or believes he is about to be fired on, he can defend himself. We now have a situation where a single pilot, irrespective of nationality, can have a strategic impact on future events."
Where things get tricky is the qualifier "if he believes he is about to be fired on" - since this makes open engagement a function of threat evaluation in real time during stressed conditions, the likelihood of an escalation that could result in two warplanes shooting at each other, just jumped significantly.

The RAF Tornados aircraft will be armed with heat-seeking Advanced Short Range Air-to-Air Missiles (Asraams, also called AIM-132 missiles), the IBT adds. These weapons, which cost £200,000 each, have a longer range than other air-to-air missiles, allowing RAF pilots to shoot down enemy aircraft without being targeted themselves.

Providing cover to the largely underreported, if substantial escalation, according to the Sunday Times report an appraisal carried out by UK defence officials said: "It took six days for Russia to strike any Isis targets at all. Their air strikes have included moderate opposition groups who have been fighting to defend their areas from Isis. Among the targets hit were three field hospitals." In the past 24 hours Russia's Defence Ministry said that it has continued its air strikes on IS positions in Hama, Idlib, Latakia and Raqqa. It reported that the attacks resulted in the "complete destruction" of "53 fortified areas and strong points with armament and military hardware", seven ammunition depots, four field camps of "terrorists", one command centre, and artillery and mortar batteries.
Russia has countered that US airstrikes have failed to make much of an impact on ISIS targets, and as reported last month, a "mistaken" strike by the US coalition forces killed over 60 Syrian soldiers in a move Russia accused of being a provocation to war.
The Sunday Times' report quoted a defence source as saying: "Up till now RAF Tornados have been equipped with 500lb satellite-guided bombs — there has been no or little air-to-air threat. But in the last week the situation has changed. We need to respond accordingly."
But another source of the original story summarized the severity of the situation best when he said that "we need to protect our pilots but at the same time we're taking a step closer to war. It will only take one plane to be shot down in an air-to-air battle and the whole landscape will change.

(Liberation.fr) Selon la télévision russe, la 3e Guerre mondiale a déjà commencé

Selon la télévision russe, la 3e Guerre mondiale a déjà commencé

A en croire les médias russes, il faut se préparer à l'imminence d'un nouveau conflit international, après la rupture le 3 octobre des négociations entre Washington et Moscou sur le conflit syrien.

La Troisième Guerre mondiale n’aura probablement pas lieu mais pour quiconque allume son téléviseur en Russie, elle a déjà commencé. Sur la première chaîne d’Etat, c’est le présentateur de l’émission phare du dimanche soir qui annonce que les batteries antiaériennes russes en Syrie vont «abattre» les avions américains. Sur la chaîne d’informations en continu Rossia 24, c’est un reportage sur la préparation des abris antinucléaires à Moscou.

A Saint-Pétersbourg, le site d’informations Fontanka croit savoir que le gouverneur veut rationner le pain pour une future guerre malgré les explications des autorités qui affirment vouloir simplement stabiliser le prix de la farine. Et à la radio, on discute des exercices de «défense civile» mobilisant, selon le ministère des Situations d’urgence, 40 millions de Russes pendant une semaine. Au programme : évacuations d’immeubles et exercices d’incendie.

Pour celui qui aurait éteint son téléviseur pour se promener dans les rues de Moscou, il est fort possible de tomber sur un des immenses graffitis «patriotiques» des artistes pro-Poutine de l’organisation «Set» qui tapissent désormais les immeubles comme cet ours, symbole de la Russie, distribuant des gilets pare-balles à des colombes de la paix.

La cause d’une telle fièvre, de cet emballement pour l’imminence d’une «Troisième guerre mondiale» ? La rupture le 3 octobre des négociations entre Washington et Moscou sur le conflit syrien après l’échec d’un cessez-le-feu que les deux puissances avaient âprement négocié à Genève en septembre. Dans la foulée, les bombes russes et syriennes ont transformé Alep en «enfer sur Terre» selon l’ONU et suscité les critiques des Occidentaux.

Sur le terrain, l’armée russe a continué la semaine à faire cavalier seul en déployant sur sa base navale, dans le port syrien de Tartous, des batteries antiaériennes S-300 aptes à détruire des avions de chasse, mais aussi en envoyant des corvettes équipées de missiles pouvant, en théorie, couler des navires de guerre. Autrement dit, une démonstration de force visant, non pas les jihadistes ou les rebelles syriens, mais bien la Marine et les avions américains.

Une menace à peine voilée contre les Etats-Unis
A Moscou, où les journalistes russes et occidentaux se lèvent et se couchent en recevant les communiqués du ministère russe de la Défense, le climat de confrontation est relayé, amplifié par les médias. Le porte-parole de l’armée russe, le général Igor Konachenkov, adresse ses mises en garde à la Maison Blanche, au Pentagone, au Département d’Etat. «Je rappelle aux "stratèges" américains que les missiles antiaériens S-300 et S-400 qui assurent la couverture aérienne des bases russes de Hmeimim et de Tartous ont un rayon d’action qui pourraient bien surprendre n’importe quel aéronef non identifié», a-t-il dit le 6 octobre en une menace à peine voilée contre les Etats-Unis.

Sur l’antenne de la chaîne d’Etat Rossia 1, le présentateur Dmitri Kissilev, également patron de l’agence de presse Ria Novosti, résume la pensée du général Igor Konachenkov pour «les simples gens comme vous et moi» : «nous abattrons» les avions américains. Puis il dévoile le «plan B» des Etats-Unis en Syrie. «Le plan B, c’est en gros que les Etats-Unis vont avoir un recours direct à la force contre les forces syriennes du président Bachar al-Assad et contre l’aviation russe», dit-il.

«Est-ce qu’il faut craindre des provocations ? C’est comme cela que les Etats-Unis ont engagé la guerre au Vietnam», conclut Dmitri Kissilev avant de mettre en garde les Occidentaux : les missiles déployés à Kaliningrad, l’enclave russe proche de la Pologne pourraient emporter des têtes nucléaires. «La Russie actuelle est plus que prête, mais avant tout psychologiquement, à la nouvelle spirale de confrontation avec l’Ouest», résume Gueorgui Bovt dans une tribune sur le site d’informations Gazeta.ru.

«Si la bagarre ne peut pas être évitée, frapper le premier»
Le politologue envisage deux scénarios, compte tenu par ailleurs des difficultés économiques de la Russie. Le premier, optimiste, où les deux puissances vont «se mettre d’accord sur de nouvelles conditions de coexistence, en gros un Yalta-2», référence au partage des aires d’influence entre les Etats-Unis et l’Union soviétique au lendemain de la Seconde Guerre mondiale. Et le scénario catastrophe : la Russie va réagir selon une loi de la rue bien connue : «si la bagarre ne peut pas être évitée, frapper le premier».

Dans une interview à Ria Novosti, le dernier président soviétique Mikhaïl Gorbatchev et initiateur il y a 30 ans à Reykjavik avec le président américain Ronald Reagan du début de la fin de la Guerre froide, prévenait récemment : le monde flirte «dangereusement avec la zone rouge».

Et mercredi, premier signe de détente après des jours d’invectives verbales, Moscou annonçait une réunion internationale sur la Syrie samedi à Lausanne qui a déjà des allures pour le secrétaire d’Etat américain John Kerry et le ministre russe des Affaires étrangères Sergueï Lavrov de rencontre de la dernière chance.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance
: FLDM -20.6%, ( issues Q3 prelim revenue numbers of ~$22.2 mln vs. $29.3 mln Capital IQ Consensus Est; as a result of its Q3 prelim numbers, co is suspending its full year 2016 guidance), VAC -6.4%, INSY-5.2%, UN -2.7%, DRWI -2.6%, MYCC -1.2%, APU -1%, DAL -0.9%, WGO -0.7%

Select financial related names showing weakness: SAN -3.4%, RBS -3.2%, DB -2.8%, BBVA -2.2%, CS -2.1%, HSBC -1.8%

Select metals/mining stocks trading lower: BBL -4.4%, RIO -4.4%, FCX -4%, BHP -4%, X -3.9%, VALE -3.6%

Other news: APTO -18.4% (receives a response from the FDA regarding the clinical hold of its Phase 1b clinical trial of APTO-253; the hold would not be removed at this time), FLKS -17% (provides a nocturnal leg cramp regulatory and clinical update for FLX-787; Exploratory NLC study 'did not demonstrate a statistically significant difference versus placebo), TGTX -15.2% (files with FDA an amended protocol for the GENUINE Phase 3 trial, FDA agrees that Overall Response Rate data from revised GENUINE study can be used to request pre-BLA meeting ), MELI -6.1% (MercadoLibre commences a 5.5 mln share underwritten public offering of common stock by selling stockholders eBay & certain subsidiaries; MercadoLibre offers prelim Q3 results in conjunction with today's proposed secondary offering, sees revs of $220-290 mln vs $222.13 mln Capital IQ Consensus Estimate ), VOXX -5.3% (light volume in after hours -- was up nearly 50% today on earnings), HTGM -3.2% (after jumping 35% on broad companion diagnostics master agreement w/ Merck KGaA news), BABA -1.6% (Chairman Jack Ma letter to shareholders)

Analyst comments: MT -2.4% (downgraded to Neutral from Buy at Goldman), BEAV -2.9% (downgraded to Neutral from Buy at Goldman), HDP -3.5% (downgraded to Sell from Buy at Goldman), GPRO -3.8% (Piper Jaffray noted co is not selling on Amazon (12-14% of sales) right now but should be back on that channel around Halloween), DECK -5.1% (downgraded to Neutral from Positive at Susquehanna)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance
: LNN +8.2%, ULTA +4.2%, NEPT +3.4%, SAR +3.3%, TSM +1.7%, CSX +0.8%

Select metals/mining stocks trading higher: SBGL +3.6%, GFI +2%, HMY +1.7%, AG +1%, GG +1%, ABX +0.6%, GOLD+0.6%, GDX +0.6%, SLW +0.6%

Other news: CTRV +29.5% (reports interim data for CMX157 from its ongoing Phase 2a multiple ascending dose clinical studyg),OCUL +27.6% (Ocular Therapeutix & Regeneron (REGN) enter into a collaboration to develop sustained release formulation of Aflibercept for the treatment of Wet AMD and other serious retinal diseases), CI +2.5% (CIGNA responds to CMS's 2017 Medicare Stars Quality Ratings; no financial impact in 2016 or 2017 because these ratings apply to plans for the 2018 payment year), FCN+2.4% (its Strategic Communications segment has launched a new and enhanced Affiliate Network), ERJ +2.2% (upgraded to Buy from Neutral at Goldman), STM +1.9% (in sympathy with TSM (earnings)), EBAY +1.2% (MercadoLibre commences a 5.5 mln share underwritten public offering of common stock by selling stockholders eBay & certain subsidiaries; eBay says sale will enable it to realize a significant gain on its investment), AAMC +1% (after 30%+ move higher), WFC +0.9% (Wells Fargo Chairman, CEO John Stumpf retires; Board of Directors elects Tim Sloan CEO, Director; appoints Lead Director Stephen Sanger Chairman)

Analyst comments: ERJ +2.2% (upgraded to Buy from Neutral at Goldman), VIAB +1.5% (upgraded to Buy from Underperform at BofA/Merrill), GRUB +1.1% (upgraded to Buy from Neutral at BofA/Merril), MRK +0.8% (upgraded to Buy from Neutral at BofA/Merrill), ALK +0.8% (upgraded to Buy from Neutral at Buckingham Research)

>>> Marriot Vacations misses by $0.18, misses on revs; narrows FY16 EPS, in-line

--> Watch Accor & Whitbread --> VAC -5.60% pre market

Marriot Vacations misses by $0.18, misses on revs; narrows FY16 EPS, in-line
  • Reports Q3 (Sep) earnings of $0.96 per share, excluding non-recurring items, $0.18 worse than the Capital IQ Consensus of $1.14; revenues were unchanged from the year-ago period at $407 mln. Total company vacation ownership contract sales (which exclude residential sales) were $169.8 million, $10.1 million, or 6.3 percent, ahead of the prior year period. Contract sales in our key North America and Asia Pacific segments were $12.5 million, or 8.3 percent, ahead of the prior year period.
  • Co issues in-line guidance for FY16, narrows EPS to $4.55-4.65 from $4.43-4.78, excluding non-recurring items, vs. $4.61 Capital IQ Consensus Estimate.
  • "We continued to execute our growth strategy in the third quarter. Contract sales in our key North America and Asia Pacific segments were up 8.3 percent in the quarter, an acceleration of the year-over-year growth that began near the end of the second quarter. Our sales growth in the quarter came not only from the continued ramp-up of sales at our new North America and Asia Pacific sales centers, but also from sales improvement at our existing sites," said Stephen P. Weisz, president and chief executive officer. "With the momentum we have seen in our new sales centers during the third quarter and our fourth quarter tour activations well ahead of this time last year, we remain confident in our growth strategy and the solid foundation we are building for continued sales growth going into 2017."

>>> Citi's double downgrade; sell BHP Billiton, Rio Tinto

Citi's double downgrade; sell BHP Billiton, Rio Tinto

 

Citi's double downgrade; sell BHP Billiton, Rio Tinto

Citi's metals and mining  equities research team has called time on BHP Billiton and Rio Tinto. 
Both companies have rallied in recent weeks, fuelled by  rising commodities prices with the likes of coking coal, thermal coal and iron ore enjoying solid runs. 
However, Citi reckons bulk commodity prices should pull back significantly running into the Christmas period and into 2017 "as demand cools and supply responds". 
"2016 has been the year of the bulk commodities with iron ore defying the pundits and being largely flat year on year despite 1Q weakness, and surging 2H coal prices on the back of Chinese supply restrictions more than overcoming lower 1H, particularly for coking coal," the analysts told clients on Thursday morning.


"The key base metals in aluminum and copper have largely been left behind in this turnaround, highlighting how much of the sector performance has concentrated in the bulk commodities and driven by China policy. Precious metals have also performed well in 2016 as Brexit, Geo-political events and central bank's monetary policy has been supportive." 
Citi expects bulk commodities to be weaker into 2017 and 2018, but says the outlook is better for base metals and particularly copper and oil. 
Citi downgraded both BHP and Rio shares to "sell" from"neutral". It shaved $1 off its target price for both stocks, taking its BHP target

(Bernstein) Global Quantitative Strategy: Death of the DCF model?

The problems with DCF models are well known, i.e., that they have alarge proportion of present value reliant on the distant future and the potentially arbitrary nature ofsomeofthe inputsandstructure. Despitethatwethinkthattheyformanessentialpart ofvaluation.
The problem is that they were invented and historically used in aworld where risk freerates averaged 5% or more. In a world where the risk free rate is close to zero then the errors in such models explode.
Specifically, if the overall discount rate (WACC) falls from 10% to 5% in a very simple DCF then the proportion of the net present value accounted for by cash flows more than 5 years in the future rises from 70% to 95%. How far in the future can any analyst forecast? We would suggest that any human'sability to forecast financial variables more than about 5 years in the future is limited at best. At the veryleastsmallerrors at that forecasting horizon become very significant.
To the extent that when a DCF is used in practice as a measure of relative (as opposed to absolute) value, the proportion accounted for by the terminal growth period is notsucha problem as it can cancel out across securities, but there still remains huge model error in the path to that terminal value.
Having said all this, discounting is at the heart of finance. This is a very general statement relating to assets and liabilities and not limited to DCFs. If it is notpossible to put a "price on time" then there is agenuinelyintellectually painfulenvironmentwhere modelstructure is called into question.
Whatshould investors do? We cannot reject discounting and there is nochoice but to use it anyway. Sowe will keep using DCFs. We just have to be aware that a by-product of the low rate world is a scale of forecast error that is outside the bounds ofwhathas been previously seen and it is likely that those forecast errors may swamp any otherdifferences between stocks.
Whatwoulddefinitively break suchamodel? Byconstruction, if theoverall discount rate fell below the growth rate then the NPV becomesundefined, though in a semi-permanent low rate environment presumably expected growth rates fall too. We have already seen European companies issue debt at negative yields and in Japan 10 year rates areset at 0. Any movelower in discount rates would, we suggest, cause a significant methodological problem for financialanalysis.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: NEPT +9%, SBGL +4.5%, SAR +3.3%, HMY +3.1%, AG +3%, CI +2.5%, FCN +2.4%, ERJ +2.2%, AUY +2.2%, GFI+2.2%, HTGM +1.9%, STM +1.8%, TSM +1.7%, GG +1.5%, ABX +1.5%, VOXX +1.3%, WFC +1.3%, NSC +1.3%, EBAY +1.2%,GOLD +1.2%, GDX +1.2%, ERIC +1.1%, ERIC +1.1%, CSX +1.1%, SLW +0.8%, EGO +0.6%

Gapping down: FLDM -20.6%, TGTX -17.3%, DECK -7.2%, MELI -6.2%, FCX -4%, BBL -3.9%, DDD -3.8%, RIO -3.7%, VALE-3.6%, BHP -3.6%, GPRO -3.5%, X -3.4%, SAN -3.4%, RBS -3%, DB -2.6%, DRWI -2.6%, MT -2.4%, SSYS -2.3%, CS -2.3%,UN -2.3%, BEAV -2.1%, BBVA -2.1%, HSBC -1.6%, STO -1.5%, RDS.A -1.4%, MYCC -1.2%, AAMC -1%, AAMC -1%, APU -1%,DAL -0.7%