Monday, October 17, 2016

Tuesday October 18 20916 Housing and Economic stories


Restaurant Chains Get Burned by Overexpansion, New Rivals - (www.wsj.com) Glut of eateries, competitors offering prepared meals-to-go create pileup of business casualties. The U.S. is having one of its biggest restaurant shakeouts in years, as an oversupply of eateries and new rivals offering prepared meals to go claim what is expected to be a growing number of casualties. In one recent week alone, three restaurant companies filed for chapter 11 bankruptcy protection, including Così Inc.; Rita Restaurant Corp., parent of the Don Pablo chain, and Garden Fresh Corp., which operates Souplantation and Sweet Tomatoes. At least five other restaurant operators have filed for court protection this year, with restructuring plans that call for restaurant closures.

Why Italy’s Banking Crisis is Spiraling to Heck - (www.wolfstreet.com) Things have got so serious in Italy that the only two things propping up the country’s crumbling banking sector — apart from the last few remaining crumbs of public faith in the system — are two inadequately capitalized bad bank funds, Atlante I and the imaginatively named Atlante II. Both funds are operated by a deeply opaque Luxembourg-based private firm called Quaestio SGR. The firm is a wholly owned subsidiary of Quaestio Holding S.A, which is itself jointly owned by a bizarre mishmash of organizations, including Fondazione Cariplo (37.65%), an influential “charitable” banking foundation; Fondazione Cassa dei Risparmi di Forlì (6.75%), a regional savings bank; Cassa Italiana di Previdenza e Assistenza dei Geometri liberi professionisti (18%), a bank for professional freelance surveyors (no, seriously); Locke S.r.l. (22%), an obscure Milan-based holding company; and Direzione Generale Opere Don Bosco (15.60%), a Roman Catholic religious institute. No surprises there.

Greece's lenders to launch new review as Athens digs in on debt relief - (www.bloomberg.com) Greece and its creditors start a fresh round of talks this week on reforming its labor market, a tricky task for a leftist government sliding in opinion polls but needed if the recession-hit state can ever win debt relief. Prime Minister Alexis Tsipras was re-elected a year ago promising to fight to revive collective bargaining and resist reforms that may lower the minimum wage. But he also needs a swift conclusion of the review to achieve Athens's primary goal of restructuring a mountain of debt, the highest in the euro zone, and mollifying an increasingly jaded public worn by years of austerity and unemployment. Some opinion polls show Tsipras trailing opposition conservatives by up to 10 points, so the pressure is on for him to deliver.

Ecuador cuts Julian Assange's internet access: WikiLeaks - (www.reuters.com) Anti-secrecy group WikiLeaks said on Monday that its founder Julian Assange's internet was shut down by the government of Ecuador, deflecting blame from the U.S. or British governments which have sparred with Assange for releasing sensitive material. "We can confirm Ecuador cut off Assange's internet access Saturday, 5 pm GMT, shortly after publication of (Hillary) Clinton's Goldman Sachs speechs (sic)," the statement from WikiLeaks said. Assange has lived and worked in Ecuador's London embassy since June 2012, having been granted asylum there after a British court ordered him extradited to Sweden to face questioning in a sexual molestation case involving two female WikiLeaks supporters.

Market Myth Shattered: Ned Davis Warns "There's No More Cash On The Sidelines" - (www.zerohedge.com) While the "cash on the sidelines" myth has infuriated many, it remains a staple excuse for why there's always a buying opportunity in stocks when the market dips. However, as Ned Davis Research warns "we can't find much cash on the sidelines... and when we do it seems mostly offset by debt/liabilities," crushing yet another pillar of strength for stocks.


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