Companies
Face Delays Getting Cash Out of China - (www.wsj.com) French
construction-materials company Cie. de Saint-Gobain SA, is finding it harder to
take its money out of China. The conglomerate—like all multinationals operating
there—faces new delays in recent weeks as Chinese regulators impose tougher restrictions on the movement of capital out of the
country to slow the yuan’s decline.
“The process of authorization is going to become longer now,” said Javier
Gimeno, who heads Saint-Gobain’s China operations. “The procedures will be
controlled more strictly.” Nearly 7% of Saint-Gobain’s world-wide group sales
come from Asia and Oceania, a large part of that from China. The new rules are
adding confusion and anxiety to a process that had been getting much easier
over the past year, he said. The shift could cause some multinationals to
rethink future investments in a country where once-sure payoffs are suddenly
facing an uncertain return, analysts say.
China Must Curb Speculation Amid Bubble, Top Official
Says - (www.bloomberg.com) China
must do more to deflate a property bubble that expanded this year by
"strictly" controlling speculation while also stepping up the fight
to rein in excessive corporate borrowing, a top economic official said a day
after leaders announced plans for next year. "We need to give a higher
priority to preventing and controlling financial risks," Yang Weimin,
deputy director of the Office of the Central Leading Group on Finance and
Economic Affairs, said Saturday at a forum in Beijing. "We need to
defuse a flurry of risks, contain asset bubbles, and improve oversight to
ensure there won’t be a systemic financial risk."
Young
Americans Piled Into Some Horrendous ETF Trades Right After the Election
- (www.bloomberg.com) Mimicking
President-elect Donald Trump — who has called himself "the king of
debt" — risk-loving millennials used exchange-traded funds
that employed leverage to juice their returns in the wake of the real-estate
mogul's election victory. That didn't work out so well for them. With
preferences for gold and volatility, however, they were largely in line
with what the consensus called for in the event of a Trump victory —
in other words, far off the mark. "From triple X leveraged products
to Vanguard, Millennials have shown they favor the extremes in terms of their
growing ETF usage," said Bloomberg Intelligence ETF Analyst Eric
Balchunas. "However, when it comes to calling the Trump rally, they
weren't alone in getting it wrong — every generation thought gold would
rally."
Protests, looting break out
in Venezuela after 100-Bolivar note eliminated – (www.reuters.com) Protests
and looting broke out in parts of Venezuela on Friday due to a lack of cash
after the socialist government suddenly pulled the nation's largest banknote
from circulation in the midst of a brutal economic crisis. An opposition
legislator said there were three deaths amid violent scenes in the southern
mining town of Callao - but there was no confirmation of that from the
government. Waving the now-worthless 100-bolivar bills, pockets of
demonstrators blocked roads, demanded that stores accept the cash, and cursed
President Nicolas Maduro in a string of towns and cities around Venezuela,
witnesses said. Dozens of shops were looted in various places. Last weekend,
Maduro gave Venezuelans three days to ditch the 100-bolivar bills, arguing that
the measure was needed to combat mafias on the Colombia border despite warnings
from some economists that it risked sparking chaos.
Italy
seeks up to €20bn to prop up fragile lenders - (www.ft.com) Parliamentary
approval sought to protect banks as possible state rescue of MPS nears. The
Italian government has asked parliament to authorise up to €20bn to prop up the
country’s most fragile banks, as it prepares to mount a possible state rescue
of Monte dei Paschi di Siena, its third-largest lender, by the end of the
week. After a cabinet meeting late on Monday, Pier Carlo Padoan, the finance
minister, said that the funds could be used to ensure liquidity and to
reinforce capital for Italian banks. “Should it be activated, this measure to
protect savings would have an impact on the debt,” Mr Padoan said. “The nature
of this measure is that it would be temporary,” he added.
U.S.
Stocks Fluctuate as Yen, Treasuries Strengthen With Gold - (www.bloomberg.com)
Russian ambassador to Turkey dies after being shot in Turkish capital - (www.cnbc.com)
China H Shares Drop to Four-Week Low as Builders, Insurers Fall - (www.bloomberg.com)
Russian ambassador to Turkey dies after being shot in Turkish capital - (www.cnbc.com)
China H Shares Drop to Four-Week Low as Builders, Insurers Fall - (www.bloomberg.com)
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