Greek
Debt Resumes Pariah Status as U.K. Bonds Are World Beaters - (www.bloomberg.com) “Greece
could end up finding itself out in the cold with no safety net underneath for
issuing bonds if they don’t secure an extension” of its backstop, said Gianluca
Ziglio, executive director of fixed-income research at Sunrise Brokers LLP in
London. “Taking this gamble on a political level is something that markets are
not liking at all at the moment.” Greek 10-year (GGGB10YR) yields rose 42 basis points, or 0.42
percentage point, this week to 8.35 percent at 5 p.m. London time yesterday.
That’s an increase of
29 basis points from Oct. 31. The 2 percent bond due in February 2024 slipped
2.075, or 20.75 euros per 1,000-euro ($1,244) face amount this week, to 68.685.
The rate climbed 142 basis points in October, the biggest increase since June
2013.
Dalian
iron ore futures hit record low as rout continues ... – (www.reuters.com) Chinese
iron ore futures tumbled more than 3 percent to a record low on Tuesday as Beijing's
interest rate cut failed to spur optimism in a market hit hard this year by
excess supply. The most traded May iron ore contract on the Dalian Commodity
Exchange was down 2.5 percent at 464 yuan ($76) a tonne at 0244 GMT after
touching 461 yuan earlier. The low was the weakest level for a most active
contract since the bourse launched iron ore futures in October 2013 and piles
more pressure on benchmark spot prices that are hovering at their lowest level
since 2009. Iron ore futures on the Singapore Exchange also retreated. China's
first interest rate cut in more than two years, announced late on Friday,
helped iron ore prices stabilise on Monday but that proved short-lived. Analysts
say the rate cut is unlikely to have an immediate impact on China's massive
steel sector as demand, mainly from the steel-intensive construction sector,
slows during winter.
Here
Comes $60 Oil as OPEC Tests U.S. Shale: Chart of the Day - (www.bloomberg.com) OPEC’s
decision not to try and eliminate an oil-supply glut means the biggest crash in
six years won’t stop until prices reach $60 a barrel, according to firms
including Nomura Holdings Inc. and Deutsche Bank AG. The CHART OF THE DAY shows
how the group supplying 40 percent of the world’s oil has kept pumping at or above
its own production limit of 30 million barrels a day even as output in the U.S.
climbs to the highest in decades. Crude collapsed into a bear market this year as the U.S. boom contributed to
a global surplus that Venezuela estimates at 2 million barrels a day,
more than the production of five OPEC members. The Organization of Petroleum
Exporting Countries, which said Nov. 27 it is taking no action to reduce
supply, has exceeded its target in all but four of the 34 months since it took
effect at the start of 2012, according to data compiled by Bloomberg.
Swiss
Vote on Gold Hoard, Immigration in Economic U-Turn - (www.bloomberg.com) Switzerland holds three referendums this weekend that
have the potential to have an effect on everything from the economy to the
central bank and even the country’s international relations. Up for a vote on
Nov. 30 is a requirement for the central bank to hold at least 20 percent of its
assets in gold, a clampdown on immigration and the abolishment of tax
privileges for foreign millionaires. Whilepolls by
gfs.bern indicate all three proposals could get rejected, there remains a
sizable cohort of undecided voters. Plebiscites are a key feature of
Switzerland’s system of direct democracy, and are held nationally and at a
municipal level several times a year. Campaigns in the run-up to the latest
votes have seen factions throwing out accusations of xenophobia, while there
have been warnings that the economy’s potential could be weakened and the Swiss
National Bank’s
power neutered.
BHP
Sees No Slowdown in Iron-Ore Supply Increase as Prices Slump - (www.bloomberg.com) BHP Billiton Ltd. (BHP), the world’s biggest mining company, signaled
there will be no slowdown in the drive by global iron-ore producers to boost production even as
prices slump. “Even the iron-ore price where it is today can induce more
volume,” Jimmy Wilson, BHP’s president of iron ore, said in an interview
broadcast today by Australia’s Nine Network. “If that volume doesn’t come from
our business, it’s going to come from other businesses around the world and
other countries around the world.” Iron ore has plummeted 47 percent this year
to near the lowest since 2009 as investment in new mines deepens a global glut.
BHP, Rio Tinto Group (RIO) and Vale SA have expanded output inAustralia and Brazil, betting the increase will offset falling
prices and force high-cost mines worldwide to close.
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