Miami Suddenly Has a Glut of Plush Hotel Suites - (www.bloomberg.com) Hotels
in sun-drenched Miami are getting burned by a pullback in Brazilian travel and
a building boom that has added thousands of rooms to the market. Nightly room
costs are dropping. Greater Miami’s revenue per available room -- a key measure
of rates and occupancies known as revpar -- has fallen each month this year,
and in April was the worst of the top 25 U.S. markets, according to STR, a data
provider for the lodging industry. Marriott International Inc., set to become
the world’s largest hotel operator, said on its first-quarter earnings call
that Miami is among its weakest U.S. areas. The city, known for its Latin
American influences and trendy South Beach party scene, is being hit by too
much hotel supply and not enough demand. An unusually mild winter in North
America has curbed visits, while Brazilians, a major source of tourism, are
pulling back as the country’s currency slumps and its economy is mired in
recession. Developers who rushed to take advantage of soaring interest by
wealthy tourists are now facing the prospect of a glut of rooms, particularly
at the high end.
LendingClub CEO Resigns Over Loan Review - (www.nasdaq.com) Renaud
Laplanche was the face of the online-lending industry, a telegenic French
entrepreneur who argued the Internet would upend finance by allowing borrowers
to connect directly with investors. On Monday, Mr. Laplanche was pushed out as
the CEO of the firm he founded, LendingClub Corp., after the board said it
found problems with its lending practices and what it called the executive's
lack of disclosure surrounding a personal investment. The ouster amplified
concerns about the business model Mr. Laplanche pioneered, and the company's
shares tumbled 35%, lopping off nearly $950 million in market value.
IMF Urges Action as
Negative Rates Infect Danish Property Market - (www.bloomberg.com) After almost four years of negative interest rates,
Danish policy makers need to act now to prevent a housing bubble, according to
the International Monetary Fund. “We strongly encourage the authorities to take
early action to lean against the wind on house price increases,” David Hofman,
IMF mission chief to Denmark, said in an interview. “We see a need for action
on a number of points.” No country has experienced negative rates longer than
Denmark and the way the policy plays out will hold lessons for other economies,
Hofman said. While banks have fared
relatively well in the extreme monetary environment, it’s “exactly in the
housing market” that the effect of negative rates is clear, he said.
Greek Debt Talks
Enter Familiar Summer Tumult - (www.nytimes.com)
The Greek debt talks
are entering an all-too-familiar stage, as the country’s creditors appear to be
at a standoff over whether to give new aid to Athens. Eurozone finance
ministers were on Monday set to discuss the bailout terms, but the talks are
unlikely to produce a breakthrough. Once again, there is a wide gulf between
European officials, Greece and the International Monetary Fund over a
continuing austerity program and the prospects of debt relief for Athens.
Greece needs the money to make a debt payment in July. If the parties involved
do not come to terms, the country could default and the markets could be put
through another summer of tumult. A year ago, the jockeying over the bailout
prompted fears that Greece could crash out of the eurozone and destabilize the
wider regional economy.
Merger Breakups Increase to Record - (online.wsj.com) For
deal makers, 2016 is set to be another record year, just not the type of record
anyone wants. Last week Halliburton Co. and Baker Hughes Inc. called off their
nearly $35 billion deal after facing resistance from regulators. The
transaction's failure brought the value of withdrawn U.S. deals to $378
billion. That is not only the highest level year to date for U.S. withdrawn
deals, it is the highest total for a full year, according to Dealogic. The
failure of the Halliburton-Baker Hughes deal comes after Pfizer Inc. called off
its $150 billion tie-up with Allergan PLC after the Treasury introduced new
rules further curbing inversions.
China Revamps Credit
Expansion as PBOC Balance Sheet Shrinks - (www.bloomberg.com)
Saudi Shakeup Helps End Gulf Stocks' Worst Streak in Two Months - (www.bloomberg.com)
China April exports, imports decline more than expected - (www.reuters.com)
Saudi Shakeup Helps End Gulf Stocks' Worst Streak in Two Months - (www.bloomberg.com)
China April exports, imports decline more than expected - (www.reuters.com)
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