A Record $152 Trillion in Global Debt Unnerves
IMF Officials – (www.bloomberg.com) Eight
years after the financial crisis, the world is suffering from a debt hangover
of unprecedented proportions. Gross debt in the non-financial sector has more
than doubled in nominal terms since the turn of the century, reaching $152
trillion last year, and it’s still rising, the International Monetary Fund
said. The figure includes debt held by governments, non-financial firms and
households. Current debt levels now sit at a record 225 percent of world gross
domestic product, the IMF said Wednesday in its semi-annual Fiscal Monitor,
noting that about two-thirds of the liabilities reside in the private sector.
The rest of it is public debt, which has increased to 85 percent of GDP last
year from below 70 percent.
Heavy
Truck Orders Plunge, Worst September since 2009 - (www.wolfstreet.com) Orders
for Class 8 trucks – the rigs crisscrossing the US highway system that keep the
nation supplied – plunged 27% in September to 13,791, according toFTR Transportation Intelligence. It was the worst September since 2009. The
year 2014 had been great. Nearly 300,000 Class 8 trucks were built. 2015
started out even stronger, and the industry anticipated – in what has become a
series of false hopes inspired by QE-nurtured optimism about capital
expenditures – that 327,000 heavy trucks would be ordered, which would have
been a record. But then the trucking industry began to sputter as the goods
producing economy was swooning, and soon trucking companies, beset by
overcapacity, began to curtail their purchases from heavy-truck dealers, and
dealers with inventories piling up, began to cut orders to manufacturers. As
2015 wore on, orders continued to fall. Despite the strong beginning, orders
ended the year down 5.3% from 2014, to 284,000 trucks.
Gundlach Says Deutsche Bank Woes Show Harm of
Negative Rates - (www.bloomberg.com) Famed
bond investor Jeffrey Gundlach said Deutsche Bank AG’s slumping share
price highlights the impact of the negative-interest-rate policy in Europe on
the region’s lenders and may help prompt central bankers to reconsider their
approach. “You cannot save your faltering economy by killing your financial
system and one of the clear poster children for this is Deutsche Bank’s stock
price,” Gundlach, 56, said at Grant’s Fall 2016 Investment Conference on
Tuesday in New York. “If you keep these negative interest rate policies for a
sufficient future period of time you are going to bankrupt these banks.”
Online Lender Prosper to Halt Note Trading,
Citing Low Volume - (www.bloomberg.com) The
online consumer lender Prosper Marketplace Inc. is shutting its loan trading
platform this month, a move that will effectively close a key liquidity outlet
for retail investors. "Very few investors" were using the trading
system, Prosper said in a letter to stakeholders last week. The firm instead is
focusing on making and selling new loans, and on ensuring their quality,
according to the letter. San Francisco-based Prosper will begin phasing out the
system after Oct. 19, with the shutdown complete on Oct. 27, it said. Without
an outlet to trade the notes, investors may be forced to hold the loans through
their maturities, typically three to five years. Sarah Cain, a company
spokeswoman, said in an e-mail that Prosper will continue to explore
alternative outlets. American Banker reported the closure on Monday. Prosper
helped pioneer peer-to-peer, or marketplace lending, initially matching
borrowers with individuals who want to fund them. The industry boomed in recent
years, but waned this year amid concern about rising loan defaults, prompting
investors and banks to scrutinize their
performance more carefully.
Trudeau
Is Forcing All Canadian Provinces To Tax CO2 -- Even If They Don't Want To – (www.dailycaller.com) Canadian
Prime Minister Justin Trudeau will impose a national $10 per metric ton “floor
price” on carbon dioxide emissions as part of his country’s plan to fight
global warming. Trudeau’s national carbon tax would rise from $10 (Canadian)
per metric ton in 2018 ton to $50 per metric ton by 2022, according to
The Canadian Press. Trudeau said Canadian provinces can charge more than the
federal “floor price” if they want, but would not tolerate provinces that
didn’t tax CO2.
Money
flowed into Germany, out of periphery in August: ECB data - (www.reuters.com)
Wall Street falls, rankled by fear of 'hard Brexit' - (www.reuters.com)
Nervous markets question outlook for ECB’s bond buying - (www.ft.com)
Wall Street falls, rankled by fear of 'hard Brexit' - (www.reuters.com)
Nervous markets question outlook for ECB’s bond buying - (www.ft.com)
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