United States

In China's latest test of the US response to its escalating claims of islands in the South China Sea, Reuters reports that Beijing has "nearly finished building almost two dozen structures on artificial islands in the South China Sea that appear designed to house long-range surface-to-air missiles." Predictably, such a development will likely raise questions about whether and how the United States will respond, given its vows to take a tough line on China in the South China Sea. The structures appear to be 20 meters (66 feet) long and 10 meters (33 feet) high.

The ongoing scramble for German safety away from French political uncertainty, has led to yet another blow out day for German 2 Year Schatz, with the yield tumbling to a fresh all time low of -0.92%, as Eurozone breakup concerns have spread from the bond market, and are now pressuring the euro sending the EURUSD below 1.05 for the first time in over a month.

The rush into German paper and out of France, means that the 10Y Greman-French spread has topped 0.8%, the widest in over four years, while the 2Y US-German spread is now well over 2%, the widest since at least 2000.

What started off in familiar fashion, with Asian stocks rising, and Europe hitting multi-month highs and US futures in record territory has stumbled in recent minutes following a continued rush for safety in short-dated German Bunds (the 2Y is now trading at -0.92%) and ongoing selling in the USDJPY, which has pushed Stoxx 600 back to unchanged, and S&P futures to modestly red for the session.

The exact  catalyst is unclear although traders are citing continued French political risks, as the recent OAT selloff continued this morning on Le Pen fears.

Submitted by Eric Zuesse via The Strategic Culture Foundation,

The Gallup organization samples Americans’ approval-disapproval of Russia in February of each year, and the approval-figure for this year is only slightly more than half as high as it had been back in 2012 when Obama publicly mocked his Presidential-campaign opponent Mitt Romney’s famous statement that «Russia, this is, without question, our number one geopolitical foe».

While the U.S. outspends all NATO allies when it comes to overall defence spending in relation to her GDP, Statista's Dyfed Loesche notes - and President Trump is very well aware of - the U.S. is also the prime direct financer of NATO.

However, direct contribution are more evenly split between the major NATO powers. Germany for example, spends only 1.19 percent of her GDP into defence (USA = 3.61 percent) but seemingly pulls its weight when it comes to direct funding of NATO. This does not include contributions to particular military operations.