KeNo's Housing and Economic Portal: Friday January 15 2016 Housing and Economic stories

Thursday, January 14, 2016

Friday January 15 2016 Housing and Economic stories

Global Corporate Debt is Coming Unglued - (www.wolfstreet.com) Standard & Poor’s slashed the credit ratings of 112 corporations around the globe to default (D) or selective default (SD) in 2015, according to S&P Capital IQ Global Credit. The highest number of global defaults since nightmare-year 2009, when a previously unthinkable 268 companies defaulted, and not far behind the second highest default tally of 125, in 2008. The oil & gas sector led with 29 defaulters (26% of the total). Metals, mining, and steel followed with 17 defaulters (15% of the total). The consumer products sector and the bank sectors tied for the third place, each with 13 defaulters (12% of the total). So where are the defaulters? In Russia and Brazil? The economies of both countries have been ravaged by deep recessions and other problems. They rank high on the list but the country with most of the defaulters is… the US. In total, 66 defaulters were US issuers, up 100% from 33 in 2014, and the highest since 2009. US defaulters accounted for 59% of the global total. Some of this dominant share of defaulters can be attributed to the size of the US economy and the enormous size of its credit market. But the US is also the epicenter of oil & gas defaults, with contagion now spreading to other sectors.

Oil Below $34, Fed Hike A 'Close Call', Hiring Strong – (www.investors.com) Crude prices hit 11-year low! Crude oil futures fell below $34 a barrel Wednesday as traders fear that tensions between Saudi Arabia and Iran will make it harder for OPEC to agree on production cuts to prop up prices. Meanwhile, weaker economic data in the U.S., China and India also suggest demand will remain sluggish. U.S. crude inventories fell by 5.1 million barrels last week, far more than expected, the Energy Information Administration said. But gasoline stockpiles jumped by 10.1 million barrels. U.S. crude futures fell 5.75% to $33.86 a barrel, a 9-year low, extending losses on the EIA data. London-based Brent slid 5.9% to $34.25, hitting the lowest in 11 years. Lower oil prices are weighing on shares of energy players such as Exxon Mobil (NYSE:XOM) and Continental Resources (NYSE:CLR) . Exxon Mobil fell 1.2% in afternoon trading on the stock market today. Big shale producer Continental Resources slid 9%.

Emerging Stocks Sink With Currencies on China as Won Declines - (www.bloomberg.com) Emerging-market currencies fell to a record as growing evidence that China is becoming more tolerant of the yuan’s depreciation unnerved investors. Russia’s ruble tumbled with Saudi Arabian stocks as Brent crude slid below $35 a barrel. The Chinese currency dropped to a five-year low after the central bank set the yuan’s daily reference rate at the lowest level since April 2011. The ruble headed for its weakest close ever against the dollar. South Korea’s won slumped after North Korea said it successfully tested a hydrogen bomb, adding to geopolitical risks in the New Year that have also included growing tension between Saudi Arabia and Iran. Turkish bonds fell after inflation quickened to the highest in more than a year.

Apple stock crash nears another scary level – (www.usatoday.com) Investors hoping the Apple (AAPL) stock implosion would end this year are now clinging to what's left of the triple-digit stock price. Shares of the gadget maker were down another 2.5% Wednesday after falling 2.5% on Tuesday to close at $102.71. The once-hot stock is now careering toward the $100-a-share level -- a price threshold bulls are hoping will finally hold. Apple's stock hasn't closed below $100 since late October 2014. Shares of Apple have lost about 25% of their value from last year's high and are at their lowest close since August 2015. Once a stock investors used to brag about holding, the shares are down 4% already this year coming off a 4.6% decline in 2015.

Most Americans are one paycheck away from the street – (www.marketwatch.com) Approximately 63% of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair, according to a survey released Wednesday of 1,000 adults by personal finance website Bankrate.com, up slightly from 62% last year. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (23%), borrowing from family and/or friends (15%) or using credit cards to bridge the gap (15%).

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