Thursday, July 17, 2014

Morgan Stanley documentably caught in the frey.

July 17, 2014

(Reuters) - Morgan Stanley (click here) does not believe new U.S. sanctions on Russian oil company Rosneft will affect a pending deal between the two companies, the bank's chief financial officer said on Thursday.

The bank's management is moving ahead with plans to sell the majority of its global physical oil trading operations to Rosneft later this year, CFO Ruth Porat said in an interview.

"Recognizing the guidance was just released last night, we don't believe it applies to our transaction," she said. "We continue to do all the work necessary for closing by the end of the year, obviously subject to regulatory approval."
Her comments come a day after the U.S. government imposed its toughest sanctions yet on some of the key players in the Russian economy over what Washington says is Moscow's reluctance to curb violence in Ukraine. The move closed off medium- and long-term dollar funding to Rosneft, the country's second-largest gas producer Novatek and its third-largest bank, Gazprombank.
The measures stopped short of freezing the companies' assets, restricting the short-term funding the companies need for day-to-day operations or stopping U.S. firms doing business with them.

But they had raised some doubts about whether mounting political tensions with Moscow could complicate the bank's deal to sell the majority of its global physical oil trading operations to Russia's largest oil producer.

The Wall Street bank agreed to the sale in December before Russia launched an incursion into Ukraine's Crimean peninsula....

Initially, it looks like the separatists.

Russia would never do this. Ukraine government would never do such a thing intentionally. It looks like separatists and with this degree of sophisticated weapon Europe is not safe. Russia isn't safe either for that matter.

I would expect the nearest NATO unit sufficiently equipped would be asking permission of Ukraine to enter the area to secure it. This is a very dangerous area of the world and to expect civilian authorities to conduct any operation is silly.

12:34 Today
Malaysian passenger (click here) jet ‘shot down’ in east Ukraine, latest updates:
- Malaysia Airlines has lost contact of #MH17 from Amsterdam. last known position was over Ukrainian airspace
- Eastern Ukraine separatist A. Borodai says Malaysian airliner shot by ukrainian government forces
- Reuters correspondent on the scene in Eastern #Ukraine sees burning wreckage of air plane, bodies on ground
- Ukrainian Interior Ministry adviser said the Buk missile was fired by separatists

There is nothing to say Russia cannot offer it's assistance to NATO and Ukraine as well. 

If the jet was shot down and it was a BUK missile that is somewhat nondescript. The BUK was a missile system. It is from the former Soviet era. 

It is not a minor missile system. it has capacity. 

It is considered medium range which is not outlawed by the ABM Treaty and can be mobile.

I find it odd this is a Malaysian flight as well. I don't believe in coincidence. This is a perfect opportunity to pull major nations into war. I hope major powers are prepared for a defensive and not necessarily an offensive posture. I would not necessarily rule out terrorists either. I am sure the international agencies are looking at passenger lists.   

I might point to the fact this is another 777. As of today the Triple 7 has been involved with 11 aviation accidents and incidents including five hull-loss accidents and three hijackings (reference Aviation Safety - click here). Previous to 2013 the jet had an excellent record with only accidents occurring on the ground while being serviced. It is now becoming a jet of interest. The jet was introduced into service in 1995. 

The Super Jumbos will take on more interest by dangerous groups. They carry more fuel and more people. They are perfect for a terrorist incident.

If the Malaysian jet were shot down I would expect it happened outside of Ukraine airspace and the crash trajectory would have brought it to crash in Ukraine.