TOP STORIES:
This is a Warning Sign for Stocks – (www.wolfstreet.com) IPOs collapse to near-crisis levels even as
stocks hover at record. It happens all the time now: On Monday,
Salesforce, after trying to buy LinkedIn but getting outbid by Microsoft,
bought the San Francisco startup Quip Inc., which has “about 40 people,” as the
company says. Quip’s product is what it calls a “productivity platform for
teams that allows them to be more connected, more collaborative and get more
work done,” or what TechCrunch calls “a cloud-based word
processing app.” Quip was founded in 2012 by Bret Taylor (co-creator of Google
Maps, CTO of Facebook, “responsible for the like button,” and now on the board
of Twitter) and Kevin Gibbs (“led engineering and product at Google and brought
Google’s App Engine to market”). But as this corporate buying spree of startups
continues, the IPO market has fizzled. There have been 54 IPOs through July
this year, down 54% from 118 deals during the same period in 2015, according to Dealogic. These IPOs raised $11.5 billion,
down 50%. It was the worst year-to-date since 2009.
Europe’s
Tumbling Lenders Lose Almost Half Their Value in a Year - (www.bloomberg.com) Europe’s banking shares are back in the
limelight for all the wrong reasons. On Tuesday, the second day of trading
since stress tests showed almost all euro-area lenders would have sufficient
capital to cope with a crisis, Germany’s Commerzbank AG and Deutsche Bank AG
tumbled to fresh record lows, dragging a Stoxx Europe 600 Index gauge of their
peers towards its biggest two-day loss in almost four weeks. “I don’t want to
say it, but it’s Armageddon for the banks,” if the index drops any further,
said Joe Tracy, head of continental European equities at Svenska Handelsbanken
AB in Stockholm. Analysts forecast bank earnings will drop 18 percent this
year, behind only energy and mining companies as the Stoxx 600’s
biggest-contracting industry group. HSBC Holdings Plc, Societe Generale SA, ING
Groep NV and UniCredit SpA are all scheduled to report results on Wednesday,
followed by Royal Bank of Scotland Group Plc on Friday.
"The
Deals Are Collapsing" - Vancouver's Housing Bubble Has Burst - (www.zerohedge.com) As FP writes, on Thursday and Friday of last
week, realtors and lawyers were desperate to get in under the tax hike
deadline, and filed a record-setting 15,000 property transfer applications on
the last two business days before B.C.’s punishing new 15-per-cent tax on
foreign property buyers went into effect. As a result, more than 9,200
transactions were filed on Friday, breaking the 2007-2008 record of more than
8,400 in a single day, according to the B.C. Land Title and Survey Authority.
It also reported over 5,800 transactions on Thursday, representing nearly as
many deals registered at month’s end in April. he demand was so heavy
that it crashed the land titles office’s electronic filing service on both
days, the authority said. That was last week. What about now that the tax is in
place? As a new dawn breaks in Metro Vancouver’s real estate market, realty
companies and real estate boards are reporting the first anecdotes of deals
falling through as foreign buyers forfeited deposits on binding deals rather
than pay the new tax. Worse, if only for the unprecedented local housing
bubble, and certainly better for potential local homeowners who were locked out
from the massively overpriced market, they report evidence of local buyers
withdrawing offers in expectation that the market will soften.
China Shipbuilder Flags Bond Repayment Risks as Economy Slumps
- (www.bloomberg.com) A Chinese shipbuilder said it may not be able
to repay bonds due this week, highlighting rising default risks in the nation
as the economy slumps. Wuhan Guoyu Logistics Industry Group Co. said there is
uncertainty if it can repay the 400 million yuan ($60.2 million) of notes due
Aug. 6 because of a capital shortage, according to a statement on Chinamoney’s
website Monday. The company issued the one-year notes at a yield of 7 percent
in 2015. Chinese companies are struggling with record debt payment in the
second half as Premier Li Keqiang seeks to cut overcapacity even after the
economy grew at the slowest pace in a quarter century. At least 17 bonds have
defaulted this year, already exceeding the seven for all of 2015.
Bitcoin Sinks After Hackers Steal $65 Million From Exchange
- (www.bloomberg.com) Bitcoin plunged, then erased losses Wednesday
as one of the largest exchanges halted trading because hackers stole about $65
million of the digital currency. Bitcoin was little changed against the dollar
as of 10:03 a.m. on Wednesday in New York, after sinking as much as 15 percent.
Prices dropped 7.8 percent on Tuesday after declining 6.2 percent Monday. Hong
Kong-based exchange Bitfinex said Tuesday it halted trading, withdrawals and
deposits after discovering the security breach. The exchange said it was still
investigating details and cooperating with law enforcement, but acknowledged
some bitcoins were stolen from its users.
Global Stocks Drop, Yen Strengthens as Growth Worries Resurface
- (www.bloomberg.com)
Yen’s Surge Shows Currency Traders Had Divergence Bet Backward - (www.bloomberg.com)
Erdogan says Turkey's coup script was 'written abroad' - (www.reuters.com)
Yen’s Surge Shows Currency Traders Had Divergence Bet Backward - (www.bloomberg.com)
Erdogan says Turkey's coup script was 'written abroad' - (www.reuters.com)
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