Russia

While the prevailing dour (or perhaps sour) overnight mood was a continuation of the weak oil theme which started yesterday after Iran said the production freeze proposed by Saudi and Russia as "ridiculous", and Saudi oil minister Al-Naimi said that Saudi won't cut supply and that high-cost producers need to either "lower costs, borrow cash or liquidate” (ideally the latter), risk sentiment was further dented when BOJ Governor Kuroda says he won’t target FX rates or stocks, which is clearly nonsense, and further spooked Japanese asset prices (Nikkei -0.85), while s

On Monday, the US and Russia announced that an agreement on a “cessation of hostilities” in Syria had been reached.

The deal applies only to groups not deemed to be “terrorists” and that determination will supposedly be made by Washington and Moscow with the proper deference to UN designations.

Russian President Vladimir Putin has made a special address about the coming ceasefire in Syria, urging world leaders to use this opportunity to end bloodshed in the region.  The statement was published by the Kremlin on Monday. Friends, I just had a telephone conversation with President of the United States of America Barack Obama. The phone call was initiated by the Russian side, but the interest was certainly mutual. During our conversation, we approved joint statements of Russia and the US, as co-chairs of the ISSG, on the cessation of hostilities in Syria.

Russia have requested permission from the U.S. to fly a surveillance planed equipped with an electro-optical imaging sensor over America.  American officials have objected to the request but may have to grant permission nonetheless due to the Open Skies Treaty that both Russia and US signed – an agreement that allows for unarmed observation flights over 34 member nations. Engadget.com reports: The treaty was originally designed to increase the military transparency of member nations.

A treaty loophole allows the Russian Air-force to fly surveillance missions over U.S. airspace. Russia is planning to ask the Open Skies Consultative Commission on Monday for permission to fly spy jets equipped with powerful high-tech cameras over U.S. skies. Daily Express reports: The planes have powerful digital cameras, which officials worry could be used to help Moscow gather sensitive intelligence. Russia is allowed to send surveillance jets over the US under the Open Skies Treaty, which allows 34 countries to conduct unarmed observation flights.