JPMorgan Checks Fine Print as Kaisa Default
Alerts S&P on China - (www.bloomberg.com) Investors
are scrutinizing Chinese developers’ books after Kaisa Group Holdings Ltd.’s
default, as rating companies highlight accounting red flags. A doubling of
Kaisa’s debt only came to light after a potential buyer reviewed its accounts
and customers sought refunds on deposits for buying properties without presale
clearance. Advance payments, bookkeeping for joint ventures and perpetual bonds
are among areas needing attention to assess risks, Standard & Poor’s and
Moody’s Investors Service said. “Investors are taking a closer look at the
small print because they have begun to think Kaisa may not be the only one,”
said Ben Sy, head of fixed income, foreign exchange and commodities for Asia at
JPMorgan Chase & Co.’s private banking division. “The accounting issues
surrounding Chinese developers have always been there, but the Kaisa default
has increased worries about the contingent and unreported debt.”
DEA to Traveler: Thanks, I’ll Take That Cash - (www.abqjournal.com) Maybe he should have taken traveler’s checks. But it’s too late for that now. All the money – $16,000 in cash – that Joseph Rivers said he had saved and relatives had given him to launch his dream in Hollywood is gone, seized during his trip out West not by thieves but by Drug Enforcement Administration agents during a stop at the Amtrak train station in Albuquerque. An incident some might argue is still theft, just with the government’s blessing. Rivers, 22, wasn’t detained and has not been charged with any crime since his money was taken last month. That doesn’t matter. Under a federal law enforcement tool called civil asset forfeiture, he need never be arrested or convicted of a crime for the government to take away his cash, cars or property – and keep it. Agencies like the DEA can confiscate money or property if they have a hunch, a suspicion, a notion that maybe, possibly, perhaps the items are connected with narcotics. Or something else illegal.
Greek Bonds Tumble on Speculation Cash to Last
Only a Few Weeks - (www.bloomberg.com) Greek
bonds plunged, pushing 10-year yields up to the highest since April, as
speculation grew that the nation’s financial system may be just weeks away from
running out of cash. The time remaining for Greece to strike a deal with its
creditors is “very limited,” European Union Economic Commissioner Pierre
Moscovici told reporters in Berlin Monday. The Greek government meanwhile
repeated its pre-conditions for any deal to be reached, saying it won’t yield
ground on its “red lines.” Europe’s most-indebted state is struggling to
resolve talks with its international creditors over the terms attached to its
240 billion-euro ($274 billion) bailout. Concern over the country’s future in
the euro area has triggered a liquidity squeeze, pulling the economy into a
double-dip recession. Prime Minister Alexis Tsipras says he’s not considering
leaving the currency bloc and is focused on getting the aid he needs to avoid a
default.
China Steel Price Slumps to 12-Year Low as
Seasonal Peak Passes - (www.bloomberg.com) Chinese
prices of steel used mostly to build homes and offices fell to a 12-year low as
peak construction season begins to ebb in the world’s biggest consumer. The
average spot price of steel reinforcement bar, or rebar, dropped for a 10th day
to 2,458 yuan ($396) a metric ton, the lowest level since January 2003, according
to data from Beijing Antaike Information Development Co. Spot rebar is 11
percent lower this year after four straight annual drops as a prolonged slump
in China’s property sector has hurt steel demand. Prices have fallen after
reaching a two-month high in March ahead of the usual peak-demand period from
April to June. New home prices slid
in 69 of the 70 cities tracked by the government in April from a year earlier,
National Bureau of Statistics said on Monday. “For downstream industries like
construction, we’re already at the peak of the season or already passed it,”
said Ginger Ding, an analyst at Metal Bulletin Research in Shanghai.
Flash
Crash Scapegoat Nav Sarao Complained More Than 100 Times to Regulators About The
Real Market Manipulators - (www.zerohedge.com) Several
weeks ago, when the CFTC and DOJ's laughable attempt to scapegoat the May 2010
flash crash on the actions of a live-in-his-parents-basement UK trader, we
explained "Why Sarao Is The Flash Crash Patsy: He Threatened To Expose The "Mass Manipulation Of High
Frequency Nerds."
It now turns out that he not only threatened to expose the real market
manipulators, but he acctually did it. More than 100 times. Navinder Singh
Sarao, the trader arrested last month on U.S. charges he manipulated futures
prices and contributed to the May 2010 “flash crash,” leveled claims of similar
misconduct against other traders before his arrest. Mr. Sarao complained to the
Chicago Mercantile Exchange, where he traded futures contracts, more than 100
times over the past several years about traders he believed were engaging in
manipulative conduct, people familiar with the matter said. His last complaint
came just weeks before he was arrested on Justice Department charges, one
of the people said.
DEA Strikes Again: Seize Man's Life Savings Under Civil Asset Forfeiture Without Charges - (www.zerohedge.com)
German Bunds Drop as Oil Sparks Renewed Slump; Greek Bonds Fall
- (www.bloomberg.com)
Emerging Stocks Retreat on China Share Sales as Currencies Fall - (www.bloomberg.com)
Debt-Choked Puerto Rico at Fiscal Brink as Bond Buyers Pull Back - (www.bloomberg.com)
Emerging Stocks Retreat on China Share Sales as Currencies Fall - (www.bloomberg.com)
Debt-Choked Puerto Rico at Fiscal Brink as Bond Buyers Pull Back - (www.bloomberg.com)
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