Noble
Group Halted After 32% Plunge as S&P Sees Default Risk - (www.bloomberg.com) Noble Group Ltd.’s crisis deepened after S&P Global Ratings
flagged a risk of default for the commodity trader within a year, triggering a
rout in the company’s shares before they were suspended in Singapore ahead of a
company statement. The 2020 bonds fell to a record low. “Noble is
fighting for its life now,” said Owen Gallimore, head of credit strategy at
Australia & New Zealand Banking Group Ltd., who’s been covering Noble Group
since 2008 and has been underweight on the bonds since 2015. “We’re not sure
how long it can sustain without a white knight.”
Catalonia
Threatens Spain with “Financial Bloodbath” - (www.wolfstreet.com) On
Monday El Pais published leaked
excerpts from what it claims to be the Catalonian regional government’s road
map to independence. The secret document includes a plan for the region to unilaterally
break away from Spain should its citizens be prevented from holding a
referendum on independence in the fall. It provoked a fierce backlash from
Madrid. “This proposal is an unacceptable attempt to blackmail the state,”
Spain’s Prime Minister Mariano Rajoy said in a hastily convened press
conference. Spain’s defense minister María Dolores de Cospedal likened the plot
to a coup d’état. In the meantime, Madrid continues to refuse to even entertain
the idea of allowing a referendum on Catalan independence, despite the fact
that in just about every survey of the last few years 80% of Catalans,
including many unionists, have requested one.
Bitcoin
Explodes Above $2400 After China Downgrade, Scaling Agreement Reached - (www.zerohedge.com)
Following comments from DoubleLine's Jeff Gundlach tieing the surge in virtual
currencies to the demise of China (right before that nation is
downgraded), Bitcoin surged overnight, breaking above $2400 for the first time. It
is now up over 150% year-to-date. Bitcoin is up fopr the 26th day in the last
29 sessions, doubling in price in that period... Wednesday's gain comes after
a bitcoin scaling agreement was reached by the Digital Currency
Group, representing 56 companies in 21 countries, at the Consensus 2017
conference in New York, which reduced some of the fears surrounding the
so-called 'hard fork' in Bitcoin's code. The agreement states: "We
agree to immediately support the following parallel upgrades to the bitcoin
protocol, which will be deployed simultaneously and based on the original Segwit2Mb proposal:
Interest-only
loans could be 'Australia's sub-prime' - (www.afr.com) High-risk
mortgage loans to young families, professionals and other over-extended
borrowers amounting to more than six times household
incomes could wipe out 20 per cent of the major banks' equity base,
institutional investment fund JCP Investment Partners has warned. In a
proprietary study of the nation's record high-and-growing household debt
mountain, the Melbourne-based fund said Irish-style housing losses for the
bigger-than-recognised pool of riskier borrowers could wipe out half of the
banks' equity capital. Interest-only loans, said JCP -- which is one of three
Australian equities managers appointed by the Future Fund -- could be
"Australia's sub-prime".
Brazil
Selloff Resumes as Temer's Graft Defense Falls Flat - (www.bloomberg.com) Brazilian
assets resumed a selloff Monday as investors fled what had been one of the most
popular trades in emerging markets. The real and local stocks were among the
world’s worst performers as President Michel Temer’s support deteriorated further over the weekend, days after an
audio recording emerged in which he appeared to endorse illegal bribes to a
disgraced lawmaker. The losses have been magnified because so many global
investors had piled into Brazilian assets on bets that Temer would push through
measures to shore up the country’s finances.
Ryan
bucks White House, setting up clash on taxes - (www.politico.com)
German Upswing Set to Last as Sentiment Jumps to Record High - (www.bloomberg.com)
German Upswing Set to Last as Sentiment Jumps to Record High - (www.bloomberg.com)
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