The Morning Brief - Lignet



Syria: Assad Regime Rapidly Losing Support
An admission by Syria’s vice president that the government cannot win its battle against the Syrian rebels and new signs that Russia is backing away from the Assad regime are indicative of the deteriorating situation for the Syrian government. Moscow is not yet ready to pull the plug on Assad, however, and continues to criticize the West’s view of the Syrian crisis. Recent press reports that Syrian security forces used chemical weapons appear to be inaccurate, although it does appear that the regime employed a harsh incapacitating “crowd control” agent.
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UK and UAE Grow Closer Despite Human Rights Concerns
The United Arab Emirates is looking to purchase fighter jets from British manufacturer BAE Systems [LSE: BA] and has signaled a willingness to improve strained ties with British oil giant BP PLC [NYSE: BP], signs that its relationship with the UK, its former colonial ruler, is growing stronger, despite concerns in London over human rights abuses by Abu Dhabi. It’s becoming increasingly likely, amid this defense cooperation, that British troops will be stationed at a base in the UAE sometime in the next few years.
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Global Inventories: Still Working Off the Excess
The slowdown in the global economy has resulted in large build-ups of inventory in key East Asian economies. Significant reductions will likely happen slowly due to the continuation of global economic problems. But inventories could drop quickly in the event of reduced output. This would have a significant impact on American manufacturers, and could result in a dramatic change in thinking about outsourcing to suppliers thousands of miles away.
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