Tag Archives: crescendo

Situation in Ukraine “building now to some kind of crescendo opportunity for Mr. Putin,” says Pentagon spokesman

Pentagon press secretary John Kirby warned Sunday that the situation in Ukraine is “building now to some sort of crescendo opportunity for Mr. Putin,” based on US intelligence.

Asked on Fox News Sunday what intelligence the Pentagon has seen to suggest Russia could invade Ukraine at any moment, Adm. Kirby said “it really was a combination of factors” including what the United States is seeing “in plain sight” on the border.

“I think a mosaic of the intelligence that we’re seeing. Not speaking to it specifically but we have good sources of intelligence and they’re telling us that things are sort of building now to some kind of crescendo opportunity for Mr. Putin,” Kirby said.

In a separate interview with MSNBC, Kirby provided a further readout of Defense Secretary Lloyd Austin’s Saturday phone call with his Russian counterpart. This said that Austin made the point that “if one of the things President Putin says he doesn’t want is a strong NATO and a strong NATO on his western flank, he’s exactly going to end up with that result” if he continues down the path of invasion. 

Kirby also confirmed on MSNBC that 160 Florida National Guard soldiers have safely left Ukraine after the Pentagon ordered their evacuation Saturday. Those troops have been in Ukraine since November on a training mission.

Kirby said that Austin “out of an abundance of caution… decided it was time to move them out of the country.” The press secretary added that the troops were already stationed close to the Polish border and it was “fairly easy to get them out of the country.”

Asked whether German Chancellor Olaf Scholz’s planned visit to Russia on Tuesday was a “last-ditch effort,” Kirby replied: “I don’t know if I’d say last ditch but certainly we recognize the time component here seems to be shrinking and that gives us all cause for concern. But again, we’ve said it and we still believe it today, there is still a time and a space for a diplomatic path forward.”

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Stocks slide, treasury yields jump as inflation fears crescendo

A screen shows Nikkei index after a ceremony marking the end of trading in 2021 at the Tokyo Stock Exchange (TSE) in Tokyo, Japan December 30, 2021. REUTERS/Kim Kyung-Hoon

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  • U.S. bond yields rise, investors brace for tighter monetary policy
  • Oil hits fresh 7-year high after Turkey pipeline outage
  • Rate-sensitive tech stocks lead stock market decline

LONDON/TOKYO, Jan 19 (Reuters) – Asian and European shares fell, U.S. and European bond yields hit multi-year highs, and oil prices climbed on Wednesday as investors braced for tighter monetary policy to combat troubling levels of inflation.

U.S. Treasury yields hit fresh two-year highs and Germany’s 10-year yield rose above 0% for the first time since May 2019, as investors hike bets that policymakers will curb years of stimulus in order to fight rising asset prices.

The benchmark German bond’s shift to positive yields marks a turning point for euro area debt, reflecting record-high inflation that is being exacerbated by supply chain disruption.

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“This inflationary episode is unusually challenging in that it is driven by both strong demand and shortages of supply,” said Guy Foster, chief strategist at wealth manager Brewin Dolphin.

Oil prices hit their highest since 2014 amid an outage on a pipeline from Iraq to Turkey and global political tensions, stoking fears of inflation becoming more persistent and propping up the dollar, which hovered near one-week highs.

“There is a limited amount that domestic interest rates can do to ease global markets for gas, oil and semiconductors but generally tighter monetary policy around the world would slow the economy and relieve some of this pressure,” Foster said.

An index of Europe’s 600 biggest stocks (.STOXX) fell 0.1%, following earlier losses in MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) as tech stocks in particular suffered.

Australia (.AXJO) shed 1.0%, while Japan’s Nikkei (.N225) hit a three-month low as worries over new curbs on businesses to halt a record surge in coronavirus cases curbed risk appetite. read more

Shares in Sony Group (6758.T) slumped to their lowest level since late October, losing more than 10% after gaming rival Microsoft (MSFT.O) said it will buy developer Activision Blizzard (ATVI.O). read more

U.S. stock markets looked set to follow the sombre tone, with S&P 500 futures down 0.13% .

HIKES AHEAD

Two-year Treasury yields , which track short-term interest rate expectations, were last at 1.063%, after hitting as high as 1.075%, the highest since February 2020, as traders positioned for a more hawkish Federal Reserve ahead of the U.S. central bank’s policy meeting next week.

The prospect of higher U.S. rates also played out elsewhere in fixed income markets, with longer-dated U.S. Treasury yields hitting fresh two-year highs.

Ten-year yields were up about 3 basis points at 1.8916%, while five-year yields were at 1.682%, also holding near new two-year highs recorded early in the session.

The dollar index , which tracks the greenback against a basket of currencies of other major trading partners, was down at 95.654.

Meanwhile sterling held steady at $1.3609 despite data showing inflation had hit a 30-year high, and the growing prospects of a leadership challenge against Prime Minister Boris Johnson. read more

Oil prices rose for a fourth day as an outage on a pipeline from Iraq to Turkey added to worries about an already tight supply outlook amid geopolitical troubles involving Russia and the United Arab Emirates. read more

U.S. crude jumped 0.48% to $85.91 a barrel. Brent crude rose 0.33% to $87.76 per barrel.

Gold was slightly lower. Spot gold traded at $1,811.35 per ounce.

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Reporting by Lawrence White and Daniel Leussink; Editing by Kenneth Maxwell, Kim Coghill & Simon Cameron-Moore

Our Standards: The Thomson Reuters Trust Principles.

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