Greece
introduces tax on bank withdrawals as elitists seek to criminalize cash - (www.naturalnews.com) The
Greek financial crisis continues to escalate, as the government recently put in
place a controversial revenue-generating policy aimed at improving its economic
position at the expense of its citizens. The government will introduce a
"surcharge" -- really, just a tax on cash -- for all cash point
withdrawals, such as at banks or at ATMs, in what is proving to be a
last-ditch, desperate attempt to prevent citizens from taking their money out
of beleaguered financial institutions altogether. Greek leaders are hoping that
the controversial decision will raise as much as €180 million (about $203
million), which the government in Athens then hopes will assist in avoiding a
default on Greek debts owed to international creditors.
Things
Are Getting Serious in Mexico’s Corporate Debt Crisis - (www.wolfstreet.com) Since
central banks embarked on their madcap ZIRP and QE during the Financial Crisis,
emerging-market companies have not been able to resist the fatal allure of
cheap dollar debt. As the good times rolled, the risks were ignored. In
relative terms, dollar-denominated debt recently reached a record 17% of global
GDP excluding the US, a ratio that has doubled over the past 20 years. Some
countries are more exposed than others. In its latest report on Mexico, the IMF
pointed out that almost a quarter of all of the corporate debt in circulation
in the country is denominated in dollars. That’s roughly the equivalent of 25%
of Mexico’s GDP ($1.1 trillion in 2015). Foreign denominated liabilities jumped
83% over the past four years to 1.7 trillion pesos ($82 billion). During
the same period, Mexico’s non-petroleum exports increased by just 10%,
meaning that the ability of private companies to generate the dollars needed to
continue meeting their burgeoning dollar-denominated debt obligations has
weakened significantly.
Best
Emerging-Market Bonds Jolted as India’s RBI Drains Cash - (www.bloomberg.com) Indian
sovereign bonds slumped the most in 15 months on concern demand for debt will
wane after the central bank announced steps to drain funds from the financial
system. The Reserve Bank of India told lenders to set aside more deposits
as reserves as the government’s Nov. 8 move to ban high-denomination currency
notes saw citizens rushing to banks to submit or exchange the old bills,
flooding them with excess cash. That risked prompting
a slide in borrowing costs, threatening to hurt financial stability and stoke
inflation in Asia’s third-largest economy.
Italian
Lenders Slide on Vote Worries to Drag Down Europe Stocks - (www.bloomberg.com) Italian
lenders declined on rising concerns about risks to their financial stability
from the upcoming referendum, bringing an end to a three-week rally in European
shares. Banca Monte dei Paschi di Siena SpA, the lender burdened by bad loans
and under pressure to raise fresh
money, tumbled 14 percent. UniCredit SpA and Intesa Sanpaolo SpA fell at least
3.2 percent, dragging the FTSE MIB Index to one of the worst performances in
western-European markets. The Financial Times reported yesterday that as
many as eight Italian banks risk failing if Renzi loses the vote. “It’s a
nervous market at a time when liquidity isn’t great,” said Kevin Lilley, a
manager of euro-area equities at Old Mutual Global Investors in London. His
firm oversees the equivalent of $32 billion. “We have more political and
economic uncertainties that need resolving. People are getting worried about
the impact that a power vacuum in Italy could have on the refinancing needs of
its banks.”
Monte
Paschi Starts Crucial $4.6 Billion Bonds-to-Equity Swap - (www.bloomberg.com)
Banca Monte dei Paschi di Siena SpA started the
first crucial stage of its turnaround plan on Monday as fresh worries about the
future of Italy’s government rattled financial markets. The Italian lender is
asking bondholders to swap 4.3 billion euros ($4.6 billion) subordinated bonds
for equity, a step that would allow the bank to proceed with a share sale by
the end of the year. Bond investors have five days from Nov. 28 to sign up. The
board of directors at Assicurazioni Generali SpA, Italy’s biggest insurer and
an investor in the bonds, voted in favor of a conversion.
Asia
markets open mixed; Nikkei down 0.41%, Kospi and ASX trade flat - (www.cnbc.com)
Wall St. slips as banks, discretionary stocks drag - (www.reuters.com)
Japan’s Household Spending, Retail Sales Decline in October - (www.bloomberg.com)
ECB’s Mario Draghi Warns of Risks of Prolonged Low Interest Rates - (www.wsj.com)
Wall St. slips as banks, discretionary stocks drag - (www.reuters.com)
Japan’s Household Spending, Retail Sales Decline in October - (www.bloomberg.com)
ECB’s Mario Draghi Warns of Risks of Prolonged Low Interest Rates - (www.wsj.com)
No comments:
Post a Comment