Wednesday December 21 2016 Housing and Economic stories

TOP STORIES:

Here Are the Multinationals whose Bonds the ECB is Discreetly Buying - (www.wolfstreet.com) For instance, the fact that Europe’s oil majors have been particularly spoiled, with the ECB splurging on bonds issued by Shell no less than 11 times. The central bank bought bonds from Italian oil company Eni 16 times, Spain’s Repsol six times, Austrian OMV six times, and Total 7 times. Gas companies have also fared remarkably well. When counting the purchase of bonds in Spain, for example, 53% are from companies involved in the natural gas sector. The corresponding number in Italy is an astounding 68%. Also well favored are Europe’s biggest car companies, in particular those from Germany, with Daimler and BMW tied in top spot with 15 purchases apiece. The ECB also bought seven times bonds issued by Volkswagen, despite the reputational and financial fallout from its emissions scandal. And it bought Renault bonds three times.

R.I.P. Bond Bull Market as Charts Say Last Gasps Have Been Taken - (www.bloomberg.com) One of the biggest questions being pondered by investors now is whether the record rally in U.S. bonds that began in 1981 has reached its end. For Louise Yamada, who has been advising clients on how to invest based on what she sees in historical price patterns for almost four decades, the answer is crystal clear. “The bull run is definitely over” after 10-year yields pierced 2.5 percent, said Yamada, who heads her namesake technical research firm in New York and is a chartered market technician. “There will be a very slow multi-year incremental increase in interest rates.”

Saudis Threaten To Move Aramco IPO Elsewhere Due To "Concerns" Over Trump, Sept 11 Law - (www.zerohedge.com) Aside from Hillary Clinton of course, the single biggest loser from the November 8 presidential election in terms of net sunk costs, was Saudi Arabia: having "donated" tens of millions to the Clinton Foundation, and sponsored her presidential campaign directly, Riyadh was hoping for many long and fruitful years of quid pro quo in exchange for its recycled petrodollar generosity. Instead, the Saudis got not only president Trump, who has made it public he wants a clean break with a US foreign policy which panders to such Mid-east "allies" as the Saudi, but also the recent passage of legislation that could - and already has - allowed U.S. terror victims to sue Saudi Arabia. As a result, a suddenly snubbed Saudi Arabia, is reassessing its multibillion-dollar U.S. financial strategy because of shifts in the American political landscape, including whether to go elsewhere with the public stock debut of its state oil company the WSJ reports.

Yet Another Greece Crisis – (www.mishtalk.com) The crisis in Greece goes on, and on, and on, and on, and on. Greece still needs another debt relief extension, but as expected in this corner, another battle is brewing. Talks are cancelled. This time, the battle is over pensions. Please consider European Bailout Chiefs Suspend Greek Debt-Relief Measures. European bailout monitors have suspended planned debt-relief measures for Greece in response to the surprise move by Athens to spend an additional €600m on poorer pensioners in breach of its international commitments. European finance ministers this month agreed to a series of short-term debt relief measures that would cut Greece’s debt-to-GDP ratio by up to 20 percentage points.

It's Turning Into a Really Bad Week for China’s Markets - (www.bloomberg.com) It’s turning out to be a really bad week for Chinese financial markets. The benchmark stock index has tumbled 3.6 percent, poised for its worst week since April. The yuan depreciated to its lowest level against the dollar since June 2008, while government bonds plunged, with the 10-year yield surging by a record 22 basis points on Thursday. While some of the losses can be attributed to the Federal Reserve’s prediction of three interest-rate hikes next year, China has its own sources of stress. Surging money-market rates sparked by government deleveraging efforts are curbing demand for everything from equities to debt at the same time as capital outflows accelerate. The selloff will probably deepen over the next month, CCB International Securities Ltd. says.

OTHER STORIES:

Here Are Some of the Markets Making Big Moves After the Fed Announcement - (www.bloomberg.com)
Emerging-market currencies slump after Fed decision - (www.marketwatch.com)
Fed Raises Rates, Boosts Outlook for Borrowing Costs in 2017 - (www.bloomberg.com)
Dovish tilt at Fed next year could meet hawkish Trump picks - (www.reuters.com)

U.S. IPOs set to rebound after dismal 2016 - (www.reuters.com)
Shadow Banking in China Appears to Have Made a Roaring Comeback - (www.bloomberg.com)

Chinese ambassador to U.S.: Sovereignty not a 'bargaining chip' - (www.reuters.com)
EM currencies drop by most in a month after Fed decision - (www.ft.com)
Janet Yellen and Donald Trump Are on the Same Page, for Now - (www.wsj.com)