Rio de Janeiro State Slammed With Two-Notch
Downgrade by Fitch - (www.bloomberg.com) Rio
de Janeiro state received a two-notch credit rating downgrade from Fitch
Ratings after it failed to make good on international debt obligations and
as its liquidity deteriorates rapidly. Fitch cut Rio’s rating to B- from B+,
saying in a statement that “pension payment should consume an increasing
portion of the state’s revenues at least in the following 10 years” and
that Rio has been “resorting to nonrecurring revenues to cover for operating
expenditures.” Rio now has the lowest credit rating among all five Brazilian
states and two cities that Fitch rates publicly. Fitch’s outlook for the rating
is stable, reflecting that the state “has reached the bottom” with no future
downgrades expected in the short-term, Fitch analyst Paulo Fugulin said by
phone.
Credit-Card Warning Sends Synchrony Shares
Dropping - (www.wsj.com) Consumer
credit is starting to fray at the edges. Lenders and credit-ratings firms are
warning that credit cards, auto loans and student loans are weakening,
suggesting that a new round of borrower delinquencies and losses for financial
institutions could be on the way. Synchrony Financial, the largest U.S. issuer of retail-store
credit cards, increased its forecast for credit losses over the next year,
saying some customers were failing to catch up on overdue payments. The
increase in expected losses wasn’t huge—0.2 to 0.3 percentage point—but it
rattled investors who are nervously watching for a peak in the credit cycle. Synchrony’s
stock fell 13%. Shares of Capital One Financial Corp., another credit-card issuer, fell
6.6%, and Ally Financial Inc.’s
dropped 5.6%.
Age
Discrimination on LinkedIn Hitting ever Younger Ages? - (www.wolfstreet.com) A
few days before Microsoft’s announced that it would buy the money-losing
company dogged by revenues that are threatening to flatten out, for a
breathtaking $27.2 billion, the third most expensive tech deal in history, andsurely one
of the most overpriced deals ever – “surely” meaning I have zero facts to
support that claim – well just days before that historic moment, I’d written an
article about how job postings on LinkedIn
had plunged.
With hindsight, it looks like Microsoft’s acquisition gurus didn’t read that
article. Now I’ve come across a fascinating piece on MarketWatch,
an article on what to do to get into the cross hairs of a recruiter whose algos
are combing through millions of profiles on LinkedIn. No recruiter in his right
might is personally clicking through LinkedIn profiles. They’re all scanned by
algos by the millions in nanoseconds. And so the trick is structuring your
profile to get the algos to pay attention. This isn’t a human-to-human
scenario, but a human-to-algo scenario. You’re trying to second-guess an algo
that’s going to decide your future.
Brexit Woe Splits Europe’s Bond Market in
Recall of Debt Crisis - (www.bloomberg.com) Britain’s
European Union referendum is redrawing old lines in the European bond market. As
demand for safety in the run-up to the vote pushed Germany’s 10-year yields
below zero for the first time on record on Tuesday, those on Spanish two-year
notes were turning positive. Meanwhile the yield difference between Italian and
German 10-year bonds reached the highest since February. For much of Wednesday
the reverse was true. Spanish and Italian bonds initially climbed, while German
bunds fell, before the securities pared their moves. The split in the market is
redolent of moves during the region’s debt crisis, a relationship which had
been largely disrupted by the European Central Bank’s quantitative easing
program.
Brexit could shock complacement market - (www.cnbc.com) After
a run toward record highs in stocks last week, there may be better clues on why
the rally faltered: the market hadn't priced in Brexit. In fact, it's probably
still unprepared for the event if it happens. "I think stocks on the whole
are feeling that concern. They (were) pricing in none of the risk," said
Jason Pride, director of investment strategy at Glenmede Trust. As stocks in
the last few days have moved lower under increasing concern, he would expect
"more volatility and anxiety" heading into the vote as Brexit becomes
a stronger factor for the market. Two-thirds of fund managers think Brexit is
"unlikely" or "not at all likely," according to the Bank of
America Merrill Lynch June fund manager survey. The survey was completed from
June 3 to 9, meaning those optimistic results show just how much Wall Street
was not pricing in Brexit — until the latest slew of polls.
Yen’s Jump to 20-Month High Spurs BOJ Easing Bets as Fed Holds
- (www.bloomberg.com)
Dollar Extends Drop Ahead of BOJ as Japan Bonds Jump; Oil Sinks - (www.bloomberg.com)
Wary Fed Rethinks Pace of Hikes - (www.wsj.com)
Fed Skips June Increase as Six Officials See One 2016 Hike - (www.bloomberg.com)
Treasuries Surge as Fed Holds Rates Unchanged, Signals Slow Pace - (www.bloomberg.com)
Dollar Extends Drop Ahead of BOJ as Japan Bonds Jump; Oil Sinks - (www.bloomberg.com)
Wary Fed Rethinks Pace of Hikes - (www.wsj.com)
Fed Skips June Increase as Six Officials See One 2016 Hike - (www.bloomberg.com)
Treasuries Surge as Fed Holds Rates Unchanged, Signals Slow Pace - (www.bloomberg.com)
Yellen: Brexit was a factor in decision, could have economic consequences for US - (www.cnbc.com)
The Fed’s New Dot Plot - (www.bloomberg.com)
Oil Caps Longest Losing Streak in Four Months
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