Friday December 16 2016 Housing and Economic stories

TOP STORIES:

So Who Gets to Pay for Italy’s Banking Crisis? - (www.wolfstreet.com) “There is not and there will not be a banking crisis in Italy, nor will there be a European financial crisis coming from Italy.” Those were the emphatic words of EU Economics Commissioner Pierre Moscovici over the weekend. “We have the capacity to deal with the situation and it will be dealt with from both Italy and at the European level” he told France Info radio. Clearly, quixotic delusions are as rampant as ever at the loftiest heights of Brussels’ ivory towers. Either that, or things are now so serious that lying is the only tactic left available. The markets also appear to be in a state of eerie complacence. Since rumors of yet another publicly funded bailout emerged early last week, bank shares have taken off, not only in Italy but across most European markets. Shares of Unicredit, Italy’s only “systemically important financial institution,” has surged 20%, while Italy’s second largest bank, Intesa Sanpaolo, is up 10%.

The 'Soft Coup' Builds: More 'Electors' Demand "Russian Interference" Briefing Before They Vote - (www.zerohedge.com) Donald Trump could have the election legally stolen from him on either December 19th when the Electoral College casts their votes or on January 6th when a joint session of Congress gathers to count those votes. As The Economic Collapse blog's Michael Snyder notes, the establishment is in full-blown panic mode at this point, and they seem to have settled on "Russian interference in the election" as the angle that they will use to unleash this 'soft coup' as today, the Hill reports more Democratic electors are joining the call for an intelligence briefing before they cast their votes for president on Monday. Twenty-nine electors now are pressuring Director of National Intelligence James Clapper to disclose more information about the CIA’s conclusion that Russian interference helped sway the election in President-elect Donald Trump’s favor.

Dim Sum Bond Issuers Facing a 'Great Wall' of Refinancing Are Thinking About Dollar-Denominated Debt - (www.bloomberg.com) Those looking for clues that a crunch is looming in the global market for yuan-denominated debt need look no further than a small Hong Kong-based maker of solar-powered street lighting. China Singyes Solar Technologies Holdings Ltd. says it's been thinking about selling U.S. dollar-denominated debt to help pay back 560 million yuan ($81 million) worth of its so-called Dim Sum bonds due in November 2017. China Singyes' situation is emblematic of a recent trend: with the renminbi losing value and money leaving the country, Chinese companies that have historically sold such yuan-denominated bonds overseas are now considering alternative debt products to roll over their borrowings.

Italy hurries to form new government as banking crisis looms - (www.reuters.com) Italian President Sergio Mattarella asked Foreign Minister Paolo Gentiloni on Sunday to try to form a new government, giving him a mandate to lead Italy out of a political crisis caused by the resignation of Matteo Renzi. Gentiloni, a former journalist and Renzi loyalist, is set to be Italy's fifth prime minister in as many years and the fourth in a row to take office without winning a national election. The soft-spoken 62-year-old immediately began consultations to form a government that will have to write a new electoral law and manage Italy's fragile banks.

Treasury 10-Year Yield Tops 2.5% Amid Global Bond Selloff - (www.bloomberg.com) Treasury 10-year yields climbed above 2.5 percent for the first time since 2014 as surging oil prices added momentum to a global rout in bonds. This quarter has marked a turnaround in global fixed-income securities, with yields climbing from record lows amid a repricing of inflation expectations and bets on tighter central-bank policy. Longer-maturity Treasuries declined Monday as crude oil prices reached a 17-month high. The yield on similar-maturity German bunds approached the highest level since January. The U.S. is primed for a rate hike Wednesday, while the European Central Bank said last week it plans to slow bond purchases from April, and the Bank of Japan has signaled it’s shifting away from its quantitative-easing framework.

OTHER STORIES:

Crude Soars as Output Deal Weighs on Bonds; China Shares Tumble - (www.bloomberg.com)
China’s Stocks, Bonds, Yuan Slump in Unison on Liquidity Concern - (www.bloomberg.com)
China stocks tumble the most in 6 months as regulator slaps curbs on insurers - (www.reuters.com)

Trump says U.S. not necessarily bound by 'one China' policy - (www.bloomberg.com)
China warns Trump against ignoring its Taiwan interests - (www.reuters.com)
China’s Red Line Has Asia Braced for Lose-Lose Battle With Trump - (www.reuters.com)
Fed turns to Trump agenda with rate hike nearly in the bag - (www.reuters.com)