France

France's armed forces chief resigned on Wednesday, culminating a dramatic dispute with president Emmanuel Macron over defense budget cuts, in what Reuters called "an early test of the newly elected president's mettle and the tough presidential style he is cultivating." Last week, General Pierre de Villiers publicly complained about Macron’s proposed €850 million cuts to the military's budget, telling a parliament committee he would not "let myself be fucked like that," adding that "I may be stupid, but I know when I am being had."

Authored by Yves Mamou via The Gatestone Institute,

Authored by Pepe Escobar via Counterpunch.org,

The Russia sanctions bill that passed the US Senate by 98:2 on June 15 is a bombshell; it directly demonizes the Nord Stream 2 pipeline, under the Baltic Sea, which is bound to double Gazprom’s energy capacity to supply gas to Europe.

The 9.5 billion euro pipeline is being financed by five companies; Germany’s Uniper and Wintershall; Austria’s OMV; France’s Engie; and Anglo-Dutch Shell. All these majors operate in Russia, and have, or will establish, pipeline contracts with Gazprom.

S&P futures are sliding this morning, down 0.4% and tracking the accelerating decline in European and Asian stocks, driven by a move higher in global interest rates, which started with Japanese 10Y yields rising to 0.1% for the first time since February, but mostly Bund yields which spiked after tripping stops, and jumped as high as 0.53% for the first time since early 2016. Oil climbs, dollar and gold slide. Economic data include initial jobless claims, trade balance, Markit PMI readings.

S&P500 futures have started the second half solidly in the green, up 0.3% to 2,429, tracking European markets broadly in the green, while Asian stocks fell slightly and crude oil is little changed. With US markets set to close at 1pm today trading volumes in many markets remain light before Tuesday’s July 4th holiday and as investors await Friday’s report on the American jobs market. Traders will be looking at key upcoming economic data for validation of the hawkish shift from central banks that roiled markets last week.