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November 22, 2024

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Russia’s use of a nuclear-capable ballistic missile on Thursday is the latest escalation in the Ukraine war.

It also marks a decisive, and potentially dangerous moment in Moscow’s conflict with the West.

The use of what Vladimir Putin said was a ballistic missile with multiple warheads in offensive combat is a clear departure from decades of the Cold War doctrine of deterrence.

Ballistic missiles with multiple warheads, known as “multiple independently targeted reentry vehicles,” or MIRVs, have never been used to strike an enemy, experts say.

“To my knowledge, yes, it’s the first time MIRV has been used in combat,” Hans Kristensen, the director of the Nuclear Information Project at the Federation of American Scientists, said.

Ballistic missiles have been the underpinning of deterrence, offering what is known as “mutual assured destruction,” or MAD, in the nuclear age.

The thinking is, if even a few missiles survive a nuclear first strike, there will be enough firepower left in the opponent’s arsenal to wipe out several major cities of the aggressor, therefore ensuring neither side is unable to escape the consequences of nuclear actions.

In that vein, ballistic missiles were designed to stand sentinel over a future where nuclear arms would never again be fired in anger.

But analysts, including Kristensen, argue that MIRVed missiles may invite, rather than deter, a first strike.

The highly destructive capacity of MIRVs means that they are both potential first-strike weapons and first-strike targets, Kristensen and colleague Matt Korda at the Federation of American Scientists wrote in a study published in March.

That’s because, it’s easier to destroy multiple warheads before they are launched, than try to shoot them down as they are dropping at hypersonic speed on their targets.

And according to a recent posting from the Union of Concerned Scientists, a US-based nonprofit science advocacy organization, this creates a “use them or lose them” type scenario — an incentive to strike first in a time of crisis. “Otherwise, a first strike attack that destroyed a country’s MIRVed missiles would disproportionately damage that country’s ability to retaliate,” said the posting.

Videos of Thursday’s Russian strike showed the multiple warheads falling at different angles on the target, and each warhead would need to be defeated with an anti-missile rocket, a daunting prospect even for the best air defense systems.

And while the warheads dropped on the Ukrainian city of Dnipro on Thursday were not nuclear, their use in conventional combat operations is certain to raise new uncertainty in a world already on edge.

Importantly, Russia alerted the United States to the use of the missile fired Thursday beforehand. But even with that advanced warning, any further launches by Putin’s regime will now inevitably ratchet up fears across Europe, with many asking the question: Has deterrence just died?

The world MIRVs

It is not only Russia and the United States that have MIRV technology. China has it on its intercontinental ballistic missiles, according to the Center for Arms Control and Non-proliferation, and the United Kingdom and France, along with Russia and the US, have long had MIRV technology on their submarine-launched ballistic missiles.

And there are new players in the MIRV game, too. Pakistan reportedly tested a missile with multiple warheads in 2017, and earlier this year India said it had successfully tested a MIRVed ICBM.

Analysts worry about land-based MIRVs more than those on subs. That’s because subs are stealthy and hard to detect. Land-based missiles, especially those in stationary silos, are more easily found and therefore are more tempting targets.

In their March report, Kristensen and Korda wrote about the perils of the expanding MIRV club, calling it “a sign of a larger worrisome trend in worldwide nuclear arsenals” and an “emerging nuclear arms race.”

India proclaimed MIRV success during a test the same month was just one warning sign, they wrote.

“It follows China’s deployment of MIRVs on some of its DF-5 ICBMs, Pakistan’s apparent pursuit of MIRVs for its Ababeel medium-range missile, North Korea may also be pursuing MIRV technology, and the United Kingdom has decided to increase its nuclear stockpile to enable it to deploy more warheads on its submarine-launched missiles,” Kristensen and Korda wrote.

They argue that more MIRV warheads in a range of county’s arsenals “would dramatically reduce crisis stability by incentivizing leaders to launch their nuclear weapons quickly in a crisis.”

“A world in which nearly all nuclear-armed countries deploy significant MIRV capability looks far more dangerous than our current geostrategic environment,” they said.

This post appeared first on cnn.com

Iran announced Friday it was activating new advanced centrifuges – which enrich uranium for the country’s nuclear program – after the United Nations’ nuclear watchdog criticized the country for not cooperating with the agency.

Iran will activate “a noticeable number of new and advanced centrifuges of different types,” state news agency IRNA reported, citing a joint statement from Iran’s foreign ministry and its Atomic Energy Organization.

“The steps are being taken to protect the country’s interests and further develop the peaceful nuclear energy,” in line with national needs and within Iran’s rights, the statement said according to IRNA.

Injecting gas into centrifuges is part of the process to enrich uranium, which could ultimately be used to develop a nuclear weapon, though Iran has repeatedly denied it has any ambitions of building a bomb.

The move was in response to the UN’s International Atomic Energy Agency (IAEA), whose board passed a resolution Thursday ordering Iran to urgently improve its cooperation with the agency, according to Reuters. The IAEA and Iran have long tussled over various issues, including traces of uranium found at locations that have not been declared nuclear sites.

On Thursday, the IAEA board also asked the agency to compile an assessment of whether Iran had possible undeclared nuclear material, and of its cooperation with the organization.

Iran decried the resolution, claiming in the joint statement that it was politically motivated, IRNA reported. The statement added that Iran would continue its technical and safeguards cooperation with the IAEA as previously agreed.

In a statement Thursday, Iran’s foreign ministry claimed the resolution was made “under pressure and insistence from three European countries and the US,” and warned it could trigger “an appropriate response from Iran.”

Iran maintains its nuclear program is for peaceful purposes only. But IAEA chief Rafael Mariano Grossi has previously warned that Tehran has enough uranium enriched to near-weapons-grade levels to make “several” nuclear bombs if it chose to do so.

He has acknowledged the UN agency cannot guarantee that none of Iran’s centrifuges may have been peeled away for clandestine enrichment.

Israel Defense Minister Gideon Sa’ar also praised the IAEA’s resolution, writing on X that “Iran’s nuclear race must be stopped.” The resolution “is a significant part of the diplomatic effort to prevent Iran from acquiring nuclear weapons,” Sa’ar wrote.

Under the terms of the nuclear deal struck in 2015, Iran was limited to operating around 5,000 older-model centrifuges, and the nation was allowed to use advance centrifuges for research purposes only.

But Tehran gradually scaled back its commitments to the nuclear deal after then-President Donald Trump withdrew from the pact in 2018 and reimposed economic sanctions on Iran, which crippled its economy. By 2019, Iran was launching new centrifuges in a major break from the deal.

Earlier this year, US Secretary of State Antony Blinken said that Iran’s breakout time – the amount of time needed to produce enough weapons grade material for a nuclear weapon – “is now probably one or two weeks,” the shortest breakout time that US officials have ever referenced.

This post appeared first on cnn.com

NVIDIA Corporation (NASDAQ: NVDA) reported strong fiscal Q3 results that exceeded Wall Street estimates but provided Q4 guidance that fell short of heightened investor expectations. Shares dropped approximately 3% in premarket trading following the announcement.

For Q3, NVIDIA posted earnings per share (EPS) of $0.81 on revenue of $35.1 billion, surpassing analyst expectations of $0.75 EPS on $33.09 billion revenue. A key driver was the data center segment, which generated $30.8 billion, marking a 17% sequential increase and a remarkable 112% year-over-year growth, beating forecasts of $28.84 billion.

Looking to Q4, NVIDIA projects revenue of $37.5 billion, plus or minus 2%, slightly above consensus estimates of $37.09 billion. Gross margins are anticipated at 73.0%, signaling robust profitability despite modest guidance.

Analysts expressed mixed views. Bank of America highlighted near-term investor caution due to subdued excitement but reaffirmed confidence in NVIDIA’s long-term growth potential, emphasizing its leadership in transitioning legacy infrastructure to AI-accelerated systems. Piper Sandler echoed optimism, noting that the company remains well-positioned for significant growth starting in April.

In summary, NVIDIA’s solid fundamentals and leadership in AI position it as a long-term winner, though near-term volatility may persist as investors digest its tempered Q4 outlook.

Nvidia Stock Chart Analysis

This chart displays NVIDIA Corporation’s (NVDA) stock performance on a 15-minute timeframe. The current price is $145.86, reflecting a slight increase of +0.33% during the day. The chart features candlestick patterns, showing the stock’s price movements, with highs and lows clearly marked.

The RSI (Relative Strength Index) indicator at the bottom reveals momentum dynamics. It’s hovering near 60.05, which suggests moderate bullish momentum, moving away from neutral levels. The RSI isn’t overbought yet (above 70), indicating room for further upward movement.

Recent trading action shows a recovery from a low of $137.15, with the price approaching previous resistance around $146.16. If this level breaks, it might signal a continued uptrend; otherwise, a pullback could occur. Traders should monitor the $144.76 support zone and $149.77 resistance for further signals.

Overall, NVDA’s short-term trend appears cautiously bullish, supported by improving RSI momentum.

The post NVIDIA Corporation (NASDAQ:NVDA) shares fell roughly 3% appeared first on FinanceBrokerage.

Starbucks Corporation (NASDAQ: SBUX) is exploring strategic partnerships for its Chinese operations amid declining demand in major markets, including the U.S. and China. The company confirmed on Thursday that it is assessing options, following a Bloomberg report suggesting Starbucks might sell a stake in its Chinese business to local investors, such as private equity firms.

CEO Brian Niccol has emphasized the importance of understanding and adapting to the competitive Chinese market, where the coffee giant faces challenges from local players like Luckin Coffee (OTC: LKNCY). Consumer spending remains subdued in China due to a sluggish macroeconomic environment, making growth in the region more difficult. On the October 31 earnings call, Niccol acknowledged the “extreme” competition and reiterated Starbucks’ commitment to exploring partnerships to drive long-term growth.

Despite the challenges, Starbucks reaffirmed its dedication to expanding its presence in China, its second-largest market. The company is simultaneously revamping its U.S. stores and strengthening its global strategy to address shifting consumer preferences and intensifying competition.

Investors should closely monitor developments regarding potential partnerships in China, as they could impact Starbucks’ long-term growth strategy and market positioning. While near-term headwinds remain, strategic moves in this critical market could unlock future growth opportunities.

Starbucks Stock Chart Analysis

The chart displays the 15-minute price movements of Starbucks Corporation (NASDAQ: SBUX). Currently, the stock is trading at $98.26, reflecting a minor increase of 0.02% during the session. The candlestick patterns highlight periods of volatility, with the recent recovery from a low of $94.79 demonstrating a bounce back in price momentum.

The RSI (Relative Strength Index) indicator at the bottom suggests improving bullish momentum, currently at 61.68. This level indicates the stock is neither overbought nor oversold, with room for further upside. The recovery in RSI from previous lower levels (near 41.95) supports the possibility of continued bullish activity in the short term.

Key resistance is evident at $101.41, the recent high, and a break above this level could signal the potential for further upward movement. On the downside, support at $94.79 serves as a critical level to monitor, as a breach below this may indicate renewed selling pressure.

In summary, Starbucks stock shows signs of stabilization and moderate bullish sentiment, with the price attempting to push higher. Traders should watch for resistance at $101.41 and support at $94.79 to assess the stock’s next directional move. Improving RSI levels further reinforces short-term bullishness.

The post Starbucks Stock: Exploring Partnerships in China appeared first on FinanceBrokerage.