Friday February 3 2017 Housing and Economic stories

TOP STORIES:

What the Heck Happened to Hanjin’s Ships and the Collapsed Freight Rates? - (www.wolfstreet.com) When Hanjin Shipping Co. declared bankruptcy on August 31, 2016, the world’s seventh largest container carrier, and the largest ever to go bankrupt, threw the shipping industry into chaos. Fully loaded ships were stranded at sea and in legal limbo. Supply chains were disrupted. Hanjin had been considered too-big-too-fail for South Korea, and the industry had relied on a bailout, but it was allowed to fail. Now that Hanjin is being liquidated and that the logistical nightmares have cleared up, what happened to Hanjin’s 98 containerships – and their “opaque” ownership? And what happened to container freight rates? They’d plunged to historic lows in the spring of 2016, among rumors that they’d collapse to “zero,” and had pushed already listing Hanjin to keel over entirely.

European Bond Bloodbath - Worst January On Record Exposes Political Panic Across EU – (www.zerohedge.com) With general elections scheduled in France, Germany and the Netherlands this year amid an increase in support for anti-euro rhetoric, European bonds from Germany to Greece saw yields surge in January. In fact, as Bloomberg notes, euro-region bonds handed investors the worst start to a year on record. Worst. January. Ever. for European bonds... Amid heightened political risk across the currency bloc and speculation the European Central Bank may bring its asset-purchase program to an abrupt halt in 2018, yields on French and Italian bonds climbed this week to their highest level relative to benchmark German debt since 2014. 

Trump’s Criticism of Imports Adds to Drugmakers’ Headaches - (www.wsj.com) The U.S. pharmaceutical industry has been under pressure over high and rising drug prices. Now it’s feeling the heat for where it makes its products, too. President Donald Trump blasted the industry’s overseas manufacturing the week before his inauguration: “We have to get our drug industry coming back,” he said in a press conference. “They supply our drugs, but they don’t make them here, to a large extent.” On Friday, the president appointed two pharmaceutical chief executives—Ken Frazier of Merck & Co. and Alex…

Greek Bond Yields Surge Amid Stalled Bailout Review, IMF Quarrel – (www.bloomberg.com) Greek government bonds fell for a fourth consecutive day, with the continuing decline raising the specter that some investors may be discounting the risk of a default. Yields on the nation’s two- and 10-year notes surged to multi-month highs as the government showed no signs of moving closer to an agreement with its creditors for the disbursement of the next bailout tranche. Greek assets have been roiled since Thursday after a meeting between Finance Minister Euclid Tsakalotos and the nation’s bailout auditors ended in disagreement last week. The nation, which had been on the verge of leaving the euro, has required three bailouts since 2010 and the European Central Bank’s support to avoid a collapse of its financial system.

U.S. College Endowments Lose 1.9% in Worst Showing Since 2009 – (www.bloomberg.com) U.S. college endowments suffered their biggest loss since the financial crisis, dragged down by global stocks, hedge funds and natural resources, according to an industry survey released Tuesday. The 1.9 percent average loss reported by the National Association of College and University Business Officers and money manager Commonfund in Wilton, Connecticut, for the year ended June 30, compared with a nearly 4 percent gain, with dividends, in the S&P 500 Index. In the prior 12-month period, schools saw a 2.4 percent return on average.

OTHER STORIES:

Trump Trades Wobble as Dollar Drops With Equities: Markets Wrap - (www.bloomberg.com)
Dollar hit by crossfire as Trump talks currency wars
China Factory Gauge Signals Stabilization Carried into New Year - (www.bloomberg.com)
Le Pen’s Main Rival Hit by Fresh Scandal in French Election - (www.bloomberg.com)
Ray Dalio Says Trump’s Populism May Overpower Pro-Business Policies - (www.bloomberg.com)

Everything You Thought You Knew About Bond Yields Is Wrong: HSBC - (www.bloomberg.com)
Stock Investors Are Finally Starting to Buy Hedges Again - (www.bloomberg.com)
Risk aversion builds as Trump trade fades - (www.ft.com)