Another
Retailer Goes Bankrupt, Shutters Stores, While Tiffany Blames Trump Tower for
US Holiday Sales Debacle - (www.wolfstreet.com) Yesterday, there was another hiccup in the
industry: American Apparel, which had filed for Chapter 11 bankruptcy in
November — after having just emerged from its first bankruptcy filed in October
2015 — confirmed rumors
that it had started to lay off 2,400 workers in Southern California. The rights
to the American Apparel brand were acquired for $88 million by Canadian apparel
maker Gildan Activewear in a bankruptcy auction last week. But it then withdrew
its plan to acquire some of the manufacturing operations. Nearly 90% of
Gildan’s 42,000 employees work in cheap-labor locations in the Caribbean and
Central America. It only manufactures socks in the US.
Over
$100 Billion Redeemed From Hedge Funds In 2016 As Only 32% Outperform Their
Benchmark – (www.zerohedge.com) Two months ago, when looking at the monthly Evestment hedge fund
fund flow report, we reported that investors had redeemed a
net $14.2 billion from the industry in October, the fourth consecutive month of
redemptions, bringing Year-to-date HF outflows to a net $77 billion removed
from the industry. The breadth of redemption pressure in October was the
industry’s largest in 2016 with 61% of reporting funds estimated to have net
outflow during the month. Two months later it has only gotten worse, but before
we get into the details, here is a quick summary of just why, courtesy of
JPMorgan.
Troubled
Deutsche Bank Scraps Senior Bankers' Bonuses for 2016 – (www.bloomberg.com) Deutsche Bank AG scrapped the bonuses of its
top executives for a second straight year and slashed variable compensation for
other senior employees, as Germany's largest lender tries to shore up capital
that's been eroded by low interest rates and legal expenses. The measures,
announced in a memo to employees Wednesday that was signed by the members of
the management board, will affect about a quarter of employees, including vice
presidents, directors and managing directors. A "limited number" of
employees in crucial positions will receive a special long-term incentive,
partly in stock, that will be deferred for as long as six years, according to
the memo.
Deutsche
Bank signs $7.2 billion deal with U.S. over risky mortgages - (www.reuters.com) Deutsche Bank finalized a $7.2 billion
settlement with the U.S. Department of Justice over its sale of toxic mortgage
securities in the run-up to the 2008 financial crisis, the government agency
said on Tuesday. Deutsche's agreement represents the largest resolution for the
conduct of a single entity in misleading investors in residential
mortgage-backed securities, the department said in a statement. The settlement
was higher than the $7 billion paid by Citigroup to federal and state
authorities in 2014. "Deutsche Bank did not merely mislead investors: it
contributed directly to an international financial crisis," Attorney
General Loretta Lynch said in the statement.
Britain
will leave EU single market, May says - (www.reuters.com) Britain will quit the EU single market when
it leaves the European Union, Prime Minister Theresa May said on Tuesday in a
decisive speech that set a course for a clean break with the world's largest
trading bloc. Setting out a vision that could determine Britain's future for
generations and the shape of the EU itself, May answered criticism that she has
been coy about her strategy with a 12-point plan for what has been dubbed a
"hard Brexit". May promised to seek the greatest possible access to
European markets but said Britain would aim to establish its own free trade
deals with countries far beyond Europe, and impose limits on immigration from
the continent.
Japan
to Join Global Stock Selloff as Yen Jumps: Markets Wrap - (www.bloomberg.com)
Bank stocks post worst day in half a year as Trump uncertainties grow - (www.cnbc.com)
China Spawns New Debt Market to Ease Burden on Local Governments - (www.bloomberg.com)
These Are the Biggest Global Risks for 2017 - (www.bloomberg.com)
Trump team questions the almighty dollar - (www.ft.com)
Behind China’s Bond Selloff, a Risky Twist on the Repo Trade - (www.wsj.com)
Bank stocks post worst day in half a year as Trump uncertainties grow - (www.cnbc.com)
China Spawns New Debt Market to Ease Burden on Local Governments - (www.bloomberg.com)
These Are the Biggest Global Risks for 2017 - (www.bloomberg.com)
Trump team questions the almighty dollar - (www.ft.com)
Behind China’s Bond Selloff, a Risky Twist on the Repo Trade - (www.wsj.com)
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