Chinese Leaders Proclaim End To Government Bond Risk Backstop, Look To Detroit For Guidence

Xu Zhong, head of the People’s Bank of China’s research bureau, is in an unusual position. In a nation known for government intervention in free market forces, he recognizes the slippery slope of the moral hazard of the government bailing out risky lending practices. Looking at how local Chinese governments have become over-leveraged, he says the… Please follow and like us:

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Net Investment Flows Turn Positive As Growth Picks Up

Nearly ten years on from the start of the financial crisis and it looks as if the recovery is well and truly here. According to Bloomberg, the second quarter was the best earnings season for US companies in 13 years, with more than three-quarters of the Standard & Poor’s 500 member companies beating analyst expectations. Even… Please follow and like us:

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Junk Universe Sell-Off: Nothing To Worry About?

Last week investors pulled $6.8 billion from high-yield bond funds last week, the third-biggest outflow on record. Several factors contributed to the outflows including worries about the sustainability of yields at multi-year lows, rising interest rates, China worries and concerns surrounding struggling US tax legislation. However, while bond funds suffered outflows, investors snapped up equities. Equity… Please follow and like us:

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China’s green bond market goes to internationalization: expert

LONDON – China’s green bonds market has taken important steps towards its internationalization, an expert in this new financial sector has said. Important issuances Sean Kidney, chief executive officer (CEO) of the international non-profit Climate Bonds Initiative, told Xinhua on Friday that issuances by three of the largest Chinese banks of green bonds were one of… Please follow and like us:

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Republican tax plan could lead Silicon Valley companies to bring overseas cash home

Silicon Valley companies that hold billions of dollars in profit overseas would have an incentive to bring some of that money back home under the tax plan announced by House Republicans this week. But that doesn’t necessarily mean such companies as Apple, Alphabet, Intel and Cisco Systems would be in a big rush to flood the… Please follow and like us:

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China economic slowdown increases

The news during the Chinese Communist Party Congress was supposed to be uniformly positive. But the Oct. 19 press conference of Zhou Xiaochuan, the governor of China’s central bank, was not. After admitting that the country’s high debt was high, he surprised everybody by adding that it was not so high as to cause a “Minsky… Please follow and like us:

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Trump’s Likely Fed Chair Could Be Good for Business

When it comes to the Federal Reserve, President Donald Trump has been all over the map. He’s alternately praised and attacked its leader, Janet Yellin. During the 2016 campaign, he labeled her a stooge of President Barack Obama who he said was keeping interest rates and the economy humming just to get Hillary Clinton elected. “The… Please follow and like us:

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Moody’s Warns That European Banks Are “Vulnerable” As Draghi Scales Back ECB Program

Today the European Central Bank announced that it would scale down its giant bond-buying program while extending it deep into 2018. This gradual taper is designed to put the region on a path to higher interest rates, and the economic recovery gathers pace without spooking markets. Get The Timeless Reading eBook in PDF Get the entire… Please follow and like us:

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Trump Ponders New Head for Federal Reserve

President Donald Trump says he is “very close” to picking a person for the most important economic post in the United States, the head of the Federal Reserve. Current Chair Janet Yellen’s term expires early next year and she is one of at least five candidates for the job. Besides Yellen, the candidates include Fed board… Please follow and like us:

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Moody’s On Global Economy: So Much Debt, Yet So Little Growth

Earlier this year, the Institute of International Finance warned that global debt growth has reached an “eye-watering” pace over the past decade and hit an all-time high of $215 trillion last year. The IIF said total debt levels, including household, government and corporate debt, climbed by more than $70 trillion over the last ten years to… Please follow and like us:

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Will The Oil Industry Listen To Investors?

“Is the oil industry ready to give investors what they want?” asks a new research note from equity analysts at Sanford C Bernstein. After nearly three years of industry instability, as the price of oil has remained depressed, oil majors have cut costs and mega projects have been put on ice, is the industry finally ready… Please follow and like us:

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China becoming more of an influence on world economy: Fitch economist

When the US sneezes, the rest of the world catches a cold. Now that description for many years by economists and others of the US impact on the global economy can replace “US” with “China”, said Brian Coulton, chief economist for Fitch Ratings. China is becoming more of an influence on the world economy as the… Please follow and like us:

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Fitch: Outflow of Deposits Raises Funding Costs on Qatari Banks

London- Qatari banks’ funding and liquidity are under varying degrees of pressure from outflows of non-domestic deposits and interbank borrowings after several Arab countries severed diplomatic and logistical ties with Qatar in June, Fitch Ratings said Wednesday. “The boycott will also increase banks’ financing costs in the international debt markets.” The overall impact on each bank… Please follow and like us:

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Private-sector job growth slows to still-solid 158,000, ADP says

WASHINGTON — Job growth by U.S. businesses slowed to 158,000 in June, below analyst expectations but still a solid gain as labor market growth eases, payroll firm Automatic Data Processing said Thursday. Last month’s figure was down from 230,000 net new jobs in May. Analysts had expected the data, a closely watched harbinger for the Labor… Please follow and like us:

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China unlikely to see financial crisis

CAI MENG/CHINA DAILY Moody’s downgrading of China’s long-term local currency sovereign debt from Aa3 to A1 is badly timed, as it coincides with China’s efforts to attract foreign investment into the domestic bond market. However, China’s massive credit expansion has led to misallocation of credit and build-up of financial risks. The debt of the central government… Please follow and like us:

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