Losses Jump for Subprime Auto Loans - (www.wsj.com) Subprime
auto loan losses rose again in August as more borrowers fell behind on
payments. The share of subprime auto loans backing bonds that were at least 60
days behind on payments climbed to 4.86% in August, up from 3.98% a year
earlier, according to Fitch Ratings. Annualized net losses reached 8.89%, up
from 7.02% a year prior. Overall, defaults in the auto-loan market are
relatively low. But increased lending to subprime borrowers between 2013 and
2015 is contributing to a spike in subprime auto loan defaults and losses, according to Fitch. To keep car sales going,
lenders have continued to loosen some terms on loans. Among them: increasing
loan repayment periods in order to make monthly car payments more affordable. A
report by Moody’s Investors Service earlier this month said the long repayment
periods are the main culprit for growing losses.
European Banks Cutting 20,000 Jobs as ING Joins
Commerzbank, ABN - (www.bloomberg.com) European
banks are preparing a fresh round of bloodletting -- with some 20,000 jobs set
to go -- as tougher rules and negative interest rates weigh on profits. ING
Groep NV will slash 5,800 positions over five years as it focuses on
Internet and mobile banking and automates systems, the Amsterdam-based
lender said Monday. Last week, Germany’s Commerzbank AG disclosed plans to cut
9,600 jobs, while Spain’s Banco Popular Espanol SA said it will eliminate as
many as 3,000 posts after tapping investors for funds. “Banks are facing
high regulatory costs and competition on margins and pricing due to the
low-rate environment,” said Karim Bertoni, a fund manager at Bellevue
Asset Management in Switzerland, which has about 6.9 billion Swiss francs ($7
billion) under management. “They are trying to reduce costs and people are one
of the biggest parts of that.”
Restaurant
Industry, Leading Indicator of US Economy Sours, Bankruptcies Pile up – (www.wolfstreet.com) On
Friday, September 30, Restaurants Acquisitions, the operator of Black-eyed Pea
and Dixie House restaurant chains, converted its Chapter 11 filing to Chapter 7
liquidation. The bankruptcy court order noted the company had shuttered its restaurants
and management had resigned. The day before, Cosi Inc., a fast-casual chain
with 1,100 employees filed for bankruptcy. It closed 29 of its 74 company-owned
restaurants and laid off 450 people. The 31 independently owned franchise
operations continue operating. Also last week, Logan’s Roadhouse, a casual
steakhouse with over 200 locations, closed more than 10 restaurants, on top of
the locations it had already closed in August when it filed for Chapter 11
bankruptcy. Eight restaurant companies representing 12 chains have filed for
bankruptcy since December: Restaurants Acquisitions, Cosi, Logan’s Roadhouse,
Fox & Hound, Champps, Bailey’s, Old Country Buffet, HomeTown Buffet,
Ryan’s, Johnny Carino’s, Quaker Steak & Lube, and Zio’s Italian Kitchen.
Greek
Police Fire Tear Gas, Use Pepper Spray On Protesting Pensioners - (www.zerohedge.com) Familiar
scenes returned to Athens today, when Greek police fired teargas at a
demonstration of pensioners protesting over cutbacks to their benefits, part of
an austerity drive dictated by the Troika (or was it Quadriga). Between 1,500
and 2,0000 pensioners attempted to march to Prime Minister Alexis Tsipras's
office, however they were blocked when riot police blocked their path,
intercepting them with pepper spray and tear gas.
US accused of waging ‘economic war’ over
Deutsche - (www.cnbc.com) German
politicians have accused the U.S. of waging economic war against Germany as
concern continues to rise among the country’s political and corporate elite
over the future of Deutsche Bank,
its biggest lender. Some of Germany’s top industrial chiefs have also rallied
to the bank’s side following the market storm that last week threatened to
engulf Deutsche, stressing its importance to the German economy and expressing
confidence in the leadership of John Cryan, the bank’s chief executive. Deutsche
has been under intense pressure since the U.S. Department of Justice requested
it pay $14 billion to settle claims of mis-selling mortgage securities last
month, sparking fears about the bank’s capital levels. Shares in the bank fell
below €10 to their lowest level since 1983 before bouncing back on Friday after
some media reports suggested Deutsche was close to a much smaller $5.4 billion
deal with the U.S. authorities.
Chinese Cities Introduce Curbs to Cool
Overheated Property - (www.bloomberg.com)
Germany’s Business Chiefs Back Deutsche Bank Amid Mounting Woes - (www.bloomberg.com)
Germany's Merkel cannot afford to bail out Deutsche Bank: media - (www.reuters.com)
German hard line on Italy may rebound with Deutsche in crisis - (www.reuters.com)
Germany’s Business Chiefs Back Deutsche Bank Amid Mounting Woes - (www.bloomberg.com)
Germany's Merkel cannot afford to bail out Deutsche Bank: media - (www.reuters.com)
German hard line on Italy may rebound with Deutsche in crisis - (www.reuters.com)
No comments:
Post a Comment