Tuesday August 19 Housing and Economic stories

TOP STORIES:

Adidas Shares Crash After Stunning Warning About Russia - (www.businessinsider.com) Everything seemed to be going Adidas' way until the western world clashed with Russia. "[T]he recent trend change in the Russian ruble as well as increasing risks to consumer sentiment and consumer spending from current tensions in the region point to higher risks to the short-term profitability contribution from Russia/CIS," management said in a new statement. "As a result, Management has decided to significantly reduce its store opening plan in the market for 2014 and 2015 and to further increase the number of store closures." Shares of the $12 billion global shoe brand plunged by over 14% early in the European trading session. Markets across Europe are trading lower. In recent weeks, the U.S. and the European Union unveiled a series of economic sanctions against Russia for its involvement in destabilizing Ukraine. Sanctions were targeted at financial and energy firms. However, these industries haven't been the only ones affected by the turmoil.

Behold, the 17,000% overdraft charge - (www.marketwatch.com) Most debit card overdraft fees are incurred on transactions of $24 or less, and though the majority of overdrafts are repaid within three days, the median fee is $34, according to a survey of financial institutions by the Consumer Financial Protection Bureau.

“Overdraft fees should not be gotchas when people are using debit cards,” CFPB director Richard Cordray said in a conference call. “If a consumer were to get a loan on those terms, it would equate to an APR of 17,000%.” Despite recent regulatory and industry changes, overdrafts continue to impose heavy costs on consumers who have low account balances and no cushion for error, Cordray says. In a separate study released last year, overdraft services now represent over 60% of fees from consumer checking accounts. Consumers with an overdraft program who overdrew their accounts paid an average of $225 in overdraft and insufficient-fund charges over the course of a year, the earlier CFPB survey found.

Espirito Santo Plunges After Posting 3.6 Billion-Euro Loss - (www.bloomberg.com) Banco Espirito Santo SA’s stock plunged by the most on record and the bonds slumped after it was ordered to raise capital following a 3.6 billion-euro ($4.8 billion) first-half net loss. The Bank of Portugal required the lender to raise the money after it set aside 4.25 billion euros in the first half, mostly to cover souring loans to other members of the Espirito Santo Group. That cut Banco Espirito Santo’s common equity Tier 1 ratio to 5 percent, less than the 7 percent regulatory minimum, according to a statement yesterday. The central bank is also probing the lender’s former managers and suspended executives in charge of audit, compliance and risk management.

Cuomo’s Scandal Parallels Christie’s as Stewart Joins In - (www.bloomberg.com) New York’s Democratic governor, Andrew Cuomo, and Republican Chris Christie of New Jersey say they share essential values as the sons of Sicilian women. Now they share something else: scandals that may block their aspirations for higher office. Cuomo, who is running for re-election, is being attacked by opponents and watchdog groups after reports that aides interfered with an anti-corruption commission he created and then disbanded. U.S. Attorney Preet Bharara in Manhattan is probing possible witness tampering, the New York Times reported today. In New Jersey, Christie is the target of investigations after his allies shut down the George Washington Bridge, possibly as payback for a mayor who didn’t endorse him.

Everyone Is Mocking One Quote From Argentina's Economy Minister - (www.businessinsider.com) On Wednesday Argentine Economy Minister Axel Kicillof was in New York City, telling the world that his country had gone into default for the second time in a little over a decade. On Thursday he was back home, explaining to the Argentine people what it was like dealing with Daniel Pollack, the man appointed by the U.S. Court to mediate between Kicillof's delegation, and the hedge fund creditors — known collectively as NML Capital — to which Argentina owes over $1.3 billion. "Statements by Pollack seem like a manual on how to harm Argentina," said Kicillof. "He's tougher than S&P." Perhaps Kicillof is right, Standard and Poors called Argentina's failure to pay a "selective default," Pollack called it a "technical default."

OTHER STORIES:

Russia may restrict Greek fruit, U.S. poultry imports: reports - (www.reuters.com)

Moscow says 'short-sighted' sanctions will aggravate Russia-U.S. ties - (www.bloomberg.com)

ISDA to Rule If Argentina Credit-Default Swaps Triggered - (www.bloomberg.com)

Argentina’s Default Clock Runs Out as Debt Talks Collapse - (www.bloomberg.com)

Dow Erases 2014 Gain Amid Global Selloff as Exxon Tumbles - (www.bloomberg.com)

Ackman Says ‘My Bad’ on Herbalife Presentation - (www.bloomberg.com)

Argentina Unopposed to Bank Deal With Hedge Funds as Bonds Sink - (www.bloomberg.com)

Forty Bullets to Head Shows Why Hondurans Flee to U.S. - (www.bloomberg.com)

Argentina’s Default Clock Runs Out as Debt Talks Collapse - (www.bloomberg.com)