Monday, October 10, 2016

SAUDI OIL MINISTER: OPEC should be very careful not to ‘shock the market'

SAUDI OIL MINISTER: OPEC should be very careful not to ‘shock the market'

Khalid al Falih Saudi ArabiaSaudi Aramco Chief Executive Officer Khalid al-Falih speaks to the media at the company's booth during Petrotech 2014, a petrochemicals conference, at the Bahrain International Exhibition Centre in Manama May 19, 2014. REUTERS/Hamad I Mohammed
ISTANBUL (Reuters) - SaudiArabia's Energy Minister Khalid al-Falih said on Monday that OPEC should not crimp oil supply too tightly and said he was optimistic a global production deal to limit supplies could be reached by November.
Speaking at the World Energy Congress in Istanbul, Falih said OPEC, which agreed a deal to cut production in Algiers last month, needed to behave in a balanced and responsible manner and that he continued to believe in its important role.
"OPEC needs to make sure we don't crimp too tightly and create a shock to the market. We are going to be very responsible," Falih said.
"Prices have dropped too low and that has impacted investment. Many companies and countries are hurting... we don't want to give the market the wrong signal and shock the market's prices," he said.
Falih said he would meet Russian Energy Minister Alexander Novak in Istanbul in the coming days to discuss Russia's reaction to the Algiers agreement, and that a technical committee meeting between OPEC members and non-OPEC countries would take place in two weeks.
OPEC officials are embarking on a flurry of meetings to nail down details of the deal in Algiers, where modest oil output cuts were agreed in the first such deal since 2008.
The chain of meetings, which are starting in Istanbul, signal that unlike in the first half of 2016, the exporting group is more serious now about managing the global supply glut and propping up prices.
"It is time to do something different than we faced in 2014. It is a very gentle hand on the wheel, we are not doing anything dramatic," Falih said. "The difference is that the market forces have shifted significantly between 2014 and now."
He said there was still not total clarity on supply and demand in some areas such as China and North America at the moment and that he hoped the situation would be clearer by the time of OPEC's November meeting.
Citing Novak, Russia's energy ministry said on Friday it expected an output freeze deal could be reached before the OPEC meeting on Nov. 30..
No decision is expected in Istanbul, OPEC sources have said. But the meeting will be a chance for officials to discuss the next step after the Algiers deal, which was agreed after intensive shuttle diplomacy.
Falih said Saudi would be prepared to deal with whatever price may emerge.
"We have economic and fiscal plans to deal with very low (price) scenarios and moderate price scenarios," he said. 
(Reporting by Rania El Gamal and Ron Bousso; Writing by Nick Tattersall)
Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

JP MORGAN CEO: Brexit makes euro collapse '5 times more likely'

JP MORGAN CEO: Brexit makes euro collapse '5 times more likely'

Jamie DimonAP Images
The UK's vote to leave the European Union has made the chance of a eurozone collapse five times more likely, JP Morgan CEO Jamie Dimon said.
Brexit made the "chances of the eurozone not surviving in the next decade five times higher," Dimon said according to a report in the Financial Times.
Dimon made the comments at a conference organised by the International Institute of Finance, which was attended by other Wall Street bank CEOs including Morgan Stanley boss James Gorman.
Dimon also said that Brexit would create uncertainty for the UK but not disaster.
"It will reduce the GDP of the UK. That’s not a disaster. It will create years of uncertainty. That’s not a disaster," he said. 
Morgan Stanley CEO James Gorman said the bank was looking at whether it needs a to move employees to different financial centres.
Britain risks losing its financial passport rights to offer and sell services in the European Union without restrictions. Many US investment banks use their base in London to passport into the single market of 28 EU member states.
“Do you have the infrastructure you need in any of these places?” Gorman said, according to the FT. “I think the big winner is going to be New York. I think that will be one of the big consequences here.”
It will reduce the GDP of the UK. That’s not a disaster.
Goldman Sachs is preparing plans to move around 2,000 British jobs overseas if the UK loses its financial passporting rights after Brexit, the Sunday Times reported.
The newspaper cites an unnamed City sources as saying that the investment bank is looking at moving a third of its 6,000 strong UK workforce to mainland Europe in the event of a "Hard Brexit."
"Hard Brexit" is the term used to describe the UK cutting off all relations with Europe and prioritising control over immigration, as opposed to maintaining some economic links in return for concessions on freedom of movement.

The Chinese yuan just fell to a 6-year low against the US dollar

The Chinese yuan just fell to a 6-year low against the US dollar

Photo by ChinaFotoPress/ChinaFotoPress via Getty Images
The Chinese yuan is reeling upon the resumption of trade following Golden Week holidays.
The USD/CNY, onshore traded yuan, hit a session high of 6.7040 just moments ago, marking the weakest level for the yuan against the US dollar since September.
USD/CNY Daily Chart. Source: Thomson Reuters
Earlier in the session the People’s Bank of China set the USD/CNY midpoint at 6.7008, up from the close of September 3 of 6.6745.
The move in onshore traded yuan today mirrors that seen last week in offshore traded yuan, or USD/CNH, as the US dollar strengthened as speculation over a December rate hike from the US Federal Reserve rose.
USD/CNH is currently trading at 6.7106.
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Computers running Google Chrome could soon run faster thanks to a new update

Computers running Google Chrome could soon run faster thanks to a new update

Google Chrome 4Shutterstock/Evan Lorne
We're not usually excited by web browser updates, but this particular upcoming update coming to Chrome could actually have a decent impact on your computer's performance.
Google will roll out an update on December 6 that will dramatically reduce the amount of RAM, or memory, that its Chrome web browser uses by up to 50%, according to CNET. So, if Chrome uses 100 megabytes of your RAM now, it'll use 50 when you install the update.

How does this help my computer?

By using less RAM, Chrome will let keep more open tabs and run more apps without slowing down your computer as much. It also means you don't need to worry as much about closing Chrome tabs or quitting apps.
Indeed, your computer has a finite amount of RAM memory, and Chrome is a gluttonous memory hog that consumes a large chunk of your computer's memory. If you have a bunch of open Chrome tabs, it might not leave very much memory for other apps. In fact, Chrome can take up so much RAM that it doesn't leave enough for itself if you have too many open tabs. 
ramHere's what a "stick" of RAM looks like. It's essentially a super-fast SSD. PC Part Picker
It could also help if your computer is on the low-end in terms of memory, which ranges from four gigabytes and below.

Super quick rundown of what RAM is

Memory is used to temporarily store the open apps you're using into your computer's proverbial "back pocket," so it can bring them up again quickly when you need them. For example, if you have Chrome, Word, and Spotify open, those apps and whatever you're doing with them will be stored in your computer's RAM memory so you can switch between them quickly.
The more RAM, the bigger the "back pocket," and the more open apps you can run while your computer runs smoothly.
It's about time Google is cutting down the amount of RAM consumed by Chrome, because I'm constantly closing apps and restarting my computer, and all I'm doing is using Chrome.

Sunday, October 9, 2016

Russia Warns Nuclear War With U.S. Could Be Imminent


Russia Warns Nuclear War With U.S. Could Be Imminent


Tension between the United States and Russia is beginning to rise and has led to Russian President Vladimir Putin on Monday proposing a law suspending a Moscow-Washington agreement to dispose of weapons-grade plutonium, in addition to the U.S suspending negotiations with Russia on Monday.
Both Russia and the United States are still heavily armed with nuclear weapons, and an official TV channel in Russia has issued a warning that war with the West could be imminent.
Zvezda, a nationwide TV service run by the country’s Ministry of Defence, said last week, ‘Schizophrenics from America are sharpening nuclear weapons for Moscow.’
As Russia issued this warning it is currently evacuating 40 million people in a drill.
A Ministry of the Russian Federation for Civil Defence, Emergencies and Elimination of Consequences of Natural Disasters spokesman said: “The three-stage four-day drill involves more than 40 million people, more than 200,000 specialists of rescue units based in regions, organizations and enterprises, as well as some 50,000 units of equipment.”
“Management bodies and forces of the Emergency Ministry’s territorial bodies have been put on simulated high alert.”
“Representatives of federal executive authorities, heads of regions, local governments and organizations are taking part in the massive drill.”
“Emergency Ministry’s forces and facilities are fully engaged, including rescue military divisions, rescue units, paramilitary mine rescue units and State Small Vessels Inspectorate, fire departments and aircraft.”
“The topic of the drill is Organization of civil defense during large natural and man-caused disasters in the Russian Federation.”
Minister of Emergency Situations Vladimir Puchkov said: ‘Civil defense system solves a wide range of tasks related to protection of people, material and cultural values in each constituent territory of the Russian Federation.” He also added that Russia has enough resources to respond to massive disasters.
“Modern approaches to foundation of control centers are being implemented, there is a set of automatized database forming systems, modeling of different threats and risks, satellite monitoring and forecasting system which uses Russian-made solutions and technologies.”
“The Emergency Ministry, federal executive authorities and regions have material and other resources to ensure uninterrupted operation of transport, power supply and communication systems.”
“It has proven efficient in the past three years.”
“We are restoring roads, building temporary bridges and handle many other problems.”
“During the drill we are going to inspect what was planned to be inspected and make suggestions on building-up the potential and areas of developing civil defense considering risks and threats, civil defense plans are going to be revised and suggestions will be made for summary rules of national standards.”

The United States and Russia are prepping for doomsday

The United States and Russia are prepping for doomsday

B 61 nuclear bombs on rackA frontal view of four B-61 nuclear free-fall bombs on a bomb cart at Barksdale Air Force Base.United States Department of Defense SSGT Phil Schmitten
The other day, a little present arrived in the mail. It was book, or rather a pair of doorstops. Titled "Doomed to Cooperate," the massive two-volume set is about 1,000 pages of essays, interviews, and vignettes from more than 100 participants in the remarkable period of cooperation between the nuclear weapons complexes of the United States and Russia in the immediate post-Cold War period.
Siegfried Hecker, who edited the volumes, titled them after the remark of a Soviet scientist, who said of the shared danger that nuclear weapons pose, "Therefore, you know, we were doomed to work together, to cooperate." Not everyone got the message, certainly not Vladimir Putin.
Set against relations between Washington and Moscow today, the incredible stories in Hecker's two volumes seem to be from another era entirely. On Monday, Putin issued a decreesuspending a plutonium disposition agreement with the United States due to its "unfriendly actions." (An unofficial translation is available from the Center for Energy and Security Studies in Moscow, as is a draft law submitted by the Kremlin.) Putin's decree ends one of the last remaining forms of cooperation from that remarkable era.
"Plutonium disposition" is a fancy sort of phrase, the kind of term of art that, when I drop it at a cocktail party, sends people off to refill their drinks. But plutonium is the stuff of which bombs are made.
After the Cold War, the United States and Russia agreed to dispose of tons of plutonium to make sure it could never be put back into bombs. So believe you me, when the Russians decide that maybe they should just hang on to that material for a while longer, it's not so boring.

Massive stockpiles of plutonium

And we're talking about a lot of plutonium here. If you recall the dark days of the Cold War, or maybe just read about them in a book, the United States and Soviet Union each had tens of thousands of nuclear weapons.
That's sort of insane if you think about what just one nuclear bomb did to Hiroshima and another to Nagasaki. But the United States and the Soviet Union each built stockpiles in excess of 30,000 nuclear weapons at their peak, massive arsenals of nuclear weapons that vast exceeded any conceivable purpose. And at the beating heart of the vast majority of those bombs were tiny little pits of plutonium.
Washington and Moscow have made great strides in reducing their vast nuclear arsenals, although we still have more than enough nuclear weapons to kill each other and then make the rubble bounce. The United States, for example, has reduced its stockpile from a peak of 31,255 nuclear weapons in 1967 to 4,571 in 2015. Let's just say Russia's stockpile is comparable, though perhaps not quite as modest.
us nuclear submarineEvery nuclear weapons delivery system in the U.S. arsenal — the so-called triad of bombers, ballistic missiles and submarines — will have to be replaced in the coming 30 years. James Kimber/U.S. Navy/Handout via Reuters
Of course, retiring a nuclear weapon requires it to be dismantled. In the United States, a backlog of thousands of weapons awaits dismantlement. That queue stretches to 2022, and few experts think the United States willmeet that target. And even once a weapon is dismantled, that still leaves the plutonium. As long as the plutonium exists, it can be turned back into a nuclear bomb.
The United States and Russia have lots and lots of plutonium left over from the Cold War. Neither country makes new plutonium anymore, or at least no weapons-grade plutonium, but don't worry — there's still more than enough to keep you up at night.
The International Panel on Fissile Materials, at Princeton University, estimates the stockpiles of weapons-grade plutoniumat 88 metric tons for the United States and 128 metric tons for Russia. To give you a sense of how much plutonium that is, it is an unclassified fact that a nuclear weapon can be made with as little as 4 kilograms of plutonium. It's aslightly touchier subject that this is the average in the U.S. stockpile — one can make do with less. But let's do the math: Even at 4 kilograms per nuclear weapon, 88 metric tons represents enough material for 22,000 nuclear weapons.
One hundred and twenty-eight metric tons is enough for 32,000 nuclear weapons. Want to get your arms race on?

Resuming the arms race?

When the Cold War ended, the more enlightened souls among us realized that reducing these stockpiles of plutonium was a critical task. As long as the plutonium remained, so did the possibility of resuming the arms race. Or, god forbid, the possibility the material might fall into the wrong hands.
A pair of studies by the National Academy of Sciences (published in 1994 and1995) called excess fissile material a "clear and present danger to national and international security."
russian nuke nuclear weaponsA deactivated Soviet-era SS-4 medium range nuclear capable ballistic missile displayed at La Cabana fortress in Havana, on Oct. 13, 2012. Desmond Boylan/Reuters
The United States and Russia freely admitted that much of their stockpiles of plutonium and highly enriched uranium was excess to any conceivable need. In addition to programs to help Russia keep track of its massive amount of material, Washington and Moscow agreed to eliminate some of it.
For the plutonium stockpile, in 2000 the United States and Russia each offered 34 metric tons for elimination under the Plutonium Management and Disposition Agreement. That represents 8,500 nuclear weapons that Russia will never build and another 8,500 nuclear weapons that will never enter the U.S. arsenal. Of course, that was only a portion of the massive stockpile, but along with an agreement to "downblend" highly enriched uranium, it was a promising start to making sure the arms race never started up again.
And then … nothing happened. As it turns out, Washington and Moscow make better enemies than friends. Plutonium isn't easy to dispose of, and the United States and Russia quarreled endlessly about how to eliminate the material. The story of why the material was never disposed of is long and complicated, involving different technological attitudes in Russia and the United States, as well as healthy helpings of South Carolina barbecued pork. The simplest way to put it is this: The United States and Russia quickly fell to arguing, requiring a new disposition plan in 2007, followed by more arguing until the disposition plan was amended in 2010, and both sides were still arguing about amending the deal when Putin finally pulled the plug this week. Pavel Podvig, who literally wrote the book on Russia's nuclear program, tells the whole sordid story if you want to read about it.

The future

At some level, though, the details don't matter. The technical and political questions of how best to eliminate the plutonium pale in comparison to the political urgency of eliminating the threat it poses — they should. If either side wanted a solution, there were options. Knowledgeable observers like Podvig offered plenty of constructive solutions that might have kept the agreement alive. We collectively chose to do nothing.
And so here we are. Putin's decree states that Russia isn't planning on turning the plutonium back into weapons just yet. But there is no reason it couldn't. And there is no clear plan for what happens to it now. The plan seems to be that the United States and Russia will simply continue to sit on tens of thousands of nuclear weapons' worth of plutonium for the indefinite future. (Oh, and plutonium ages better than Sophia Loren, so the bombs that might be built out of it could be menacing your grandchildren.)
If you think about it, this isn't really a plan at all — just a terrible inability to do anything in the face of a common danger or head off what looks like a return to Cold War animosity.
If anything makes Hecker's collection of stories seem like they come from another time, it is that. Once upon a time, there was a collective belief among American and Russian scientists that they could do something about the shared danger posed by nuclear weapons. They may have joked about being "doomed to cooperate," but it was a wry humor. These men and women who were charged with building the weapons to destroy one another still believed that we could work together to make the world a safer place.
We've lost that sense. And without the belief that we can cooperate, what are we other than doomed?
Read the original article on Foreign Policy. "Real World. Real Time." Follow Foreign Policy on Facebook. Subscribe to Foreign Policy here. Copyright 2016. Follow Foreign Policy onTwitter.

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