Sunday, January 22, 2017

Monday January 23 2017 Housing and Economic stories


Another Retailer Goes Bankrupt, Shutters Stores, While Tiffany Blames Trump Tower for US Holiday Sales Debacle - (www.wolfstreet.com) Yesterday, there was another hiccup in the industry: American Apparel, which had filed for Chapter 11 bankruptcy in November — after having just emerged from its first bankruptcy filed in October 2015 — confirmed rumors that it had started to lay off 2,400 workers in Southern California. The rights to the American Apparel brand were acquired for $88 million by Canadian apparel maker Gildan Activewear in a bankruptcy auction last week. But it then withdrew its plan to acquire some of the manufacturing operations. Nearly 90% of Gildan’s 42,000 employees work in cheap-labor locations in the Caribbean and Central America. It only manufactures socks in the US.

Over $100 Billion Redeemed From Hedge Funds In 2016 As Only 32% Outperform Their Benchmark – (www.zerohedge.com) Two months ago, when looking at the monthly Evestment hedge fund fund flow report, we reported that investors had redeemed a net $14.2 billion from the industry in October, the fourth consecutive month of redemptions, bringing Year-to-date HF outflows to a net $77 billion removed from the industry. The breadth of redemption pressure in October was the industry’s largest in 2016 with 61% of reporting funds estimated to have net outflow during the month. Two months later it has only gotten worse, but before we get into the details, here is a quick summary of just why, courtesy of JPMorgan.

Troubled Deutsche Bank Scraps Senior Bankers' Bonuses for 2016 – (www.bloomberg.com) Deutsche Bank AG scrapped the bonuses of its top executives for a second straight year and slashed variable compensation for other senior employees, as Germany's largest lender tries to shore up capital that's been eroded by low interest rates and legal expenses. The measures, announced in a memo to employees Wednesday that was signed by the members of the management board, will affect about a quarter of employees, including vice presidents, directors and managing directors. A "limited number" of employees in crucial positions will receive a special long-term incentive, partly in stock, that will be deferred for as long as six years, according to the memo.

Deutsche Bank signs $7.2 billion deal with U.S. over risky mortgages - (www.reuters.com) Deutsche Bank finalized a $7.2 billion settlement with the U.S. Department of Justice over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis, the government agency said on Tuesday. Deutsche's agreement represents the largest resolution for the conduct of a single entity in misleading investors in residential mortgage-backed securities, the department said in a statement. The settlement was higher than the $7 billion paid by Citigroup to federal and state authorities in 2014. "Deutsche Bank did not merely mislead investors: it contributed directly to an international financial crisis," Attorney General Loretta Lynch said in the statement.

Britain will leave EU single market, May says - (www.reuters.com) Britain will quit the EU single market when it leaves the European Union, Prime Minister Theresa May said on Tuesday in a decisive speech that set a course for a clean break with the world's largest trading bloc. Setting out a vision that could determine Britain's future for generations and the shape of the EU itself, May answered criticism that she has been coy about her strategy with a 12-point plan for what has been dubbed a "hard Brexit". May promised to seek the greatest possible access to European markets but said Britain would aim to establish its own free trade deals with countries far beyond Europe, and impose limits on immigration from the continent.


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