Sunday, January 10, 2016

Monday January 11 2016 Housing and Economic stories


Oil ends 2015 in downbeat mood; hangover to be long, painful - (www.reuters.com) Oil prices rose on Thursday but were still headed for a second year of steep declines after a race to pump by Middle East crude producers and U.S. shale oil drillers created an unprecedented global glut that may take through 2016 to clear. Global oil benchmark Brent and U.S. crude's West Texas Intermediate (WTI) futures were up about 3 percent on the day on short-covering and buying support in a thinly-traded market. But Brent and WTI were on track to finish 2015 down 30 percent or more after another year that showed the helplessness of Saudi Arabia and other members of the once-powerful Organization of the Petroleum Exporting Countries (OPEC) in boosting oil prices.

Chinese Company Blames Upcoming Default On Gangsters, Mysterious Loss Of "Important Documents" - (www.zerohedge.com) Two days ago we said that the explanation provided by China's latest corporate fraud, China Animal Healthcare, for "losing" its books, may well be the greatest official reason provided by a management team for cooking the books. As we summarized, "China Animal Healthcare said in a statement to the Hong Kong stock exchange that a truck loaded with four years’ worth of its original financial documents was on its way to Beijing. However, while the truck driver was taking a lunch break, the truck was stolen. One week later the truck was found... but the four years of financial documents were gone." Today we encounter another insolvent Chinese company (one which soon be revealed as the next in a long series of mainland corporate frauds) Shandong Shanshui Cement Group, which is the domestic subsidiary of Hong Kong-listed China Shanshui Cement Group, and which defaulted on a bond payment in November. It is about to default again after earlier this week the company said "it was at risk" of defaulting on another bond for 1.8 billion yuan, maturing on Jan 21, 2016.

China cracks whip on foreign banks with forex shut-out - (www.reuters.com) Chinese authorities are starting to police the nation's foreign exchange market in a way currency traders have rarely seen before, levying penalty payments for aggressive trading and prompting some banks to turn down business. Reuters reported on Wednesday that China's central bank had suspended at least three foreign banks from conducting some of their foreign exchange business until the end of March. China's past willingness to tolerate some capital flight has paved the way for locals to take billions from the country for funnelling into assets such as French vineyards and luxury properties in the world's leading cities. But with the country's growth at its weakest in 25 years and the currency heading for a record fall this year, China is aiming to stem the capital outflows, which can be exacerbated by the widening gap between onshore and offshore exchange rates for the yuan, or renminbi.

Warren Buffett faces worst year on stock market since 2009 – (www.cnbc.com)  Investment guru Warren Buffett is headed for his worst year relative to the rest of the US stock market since 2009, with shares in his conglomerate Berkshire Hathaway down 11 per cent with two more trading days to go. The underperformance comes in Mr Buffett's Golden Anniversary year at the helm, when he told investors for the first time that they should judge his record based on Berkshire's share price, rather than just the book value of the company, which had been his preferred yardstick for decades.

Clinton Foundation Donors Got Bonanza of Weapons Deals From Hillary Clinton's State Department – (www.ibtimes.com)  The 143 percent increase in U.S. arms sales to Clinton Foundation donors compares to an 80 percent increase in such sales to all countries over the same time period... The State Department formally approved these arms sales even as many of the deals enhanced the military power of countries ruled by authoritarian regimes whose human rights abuses had been criticized by the department. Algeria, Saudi Arabia, Kuwait, the United Arab Emirates, Oman and Qatar all donated to the Clinton Foundation and also gained State Department clearance to buy caches of American-made weapons even as the department singled them out for a range of alleged ills, from corruption to restrictions on civil liberties to violent crackdowns against political opponents.



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