financializer news A weblog highlighting financial topics making news in the international media.

Bernie Sanders: They said it would provide a much-needed boost to low-income workers while causing little or no job loss, according to Business Week. Fifteen dollars an hour is another story. In January 2014, seven Nobel laureates and eight ex-presidents of the American Economic Association signed a letter backing a federal minimum wage of $10.10 an hour by 2016, up from $7.25. None of those luminaries signed the letter in July that endorsed a Senate bill introduced by presidential candidate Bernie Sanders to raise the federal minimum to $15 an hour by 2020. In such places, $15 an hour may have large negative employment effects, Ronald Ehrenberg, a Cornell University labour economist, wrote in an e-mail. Regional economic differences are one reason a lot of economists are nervous about jumping to $15: A wage floor that right for New York or San Francisco could be too high for Brownsville, Texas; Gadsden, Alabama; or Ponce, Puerto Rico. (news.financializer.com). As reported in the news.

company: Yet, it the very factor hurting the securities -- the slump in oil prices eroding state revenue -- that probably encouraging the company to consider fresh revolving credit facilities and a potential $1.5 billion sukuk programme, according to Commerzbank, according to Business Week. Their concern is that the government may start to take more structural measures, which may include a reduction in subsidies the company gets from the sovereign, said Apostolos Bantis, a Dubai-based credit analyst at Commerzbank. Two of the utility Islamic bonds, typically used as a proxy for Saudi Arabia sovereign debt, lost the most among their peers last month, according to data compiled by Bloomberg. The sukuk performance is nothing specific to the company itself, it more a weakening perception for Saudi risk, and concerns about currency devaluation," he said. OPEC biggest oil exporter and the largest economy in the Arab world is reviewing its spending plans for next year, and may delay infrastructure projects, two people familiar with the matter said last week. Costs for insuring the kingdom debt have skyrocketed, bets for a currency devaluation soared and the government has returned to the long-term domestic debt market for the first time in eight years after its main source of revenue plunged. (news.financializer.com). As reported in the news.

Secretary State John Kerry: The announcement means that at least 34 senators -- the number required by the Constitution to sustain a veto -- will back Obama expected veto of a Republican resolution to disapprove of the deal, according to CNN. Mikulski is retiring at the end of her term. Barbara Mikulski of Maryland announced support for the Iran nuclear deal Wednesday, providing the White House the votes it needs to prevent Republicans from scuttling the agreement. While majorities of both the GOP-controlled House and Senate are poised to vote against the agreement, supporters of the multinational accord that aims to curb Iran nuclear weapons program are also hoping to get the 41 votes needed to filibuster the bill and prevent it from even getting to a final vote in the Senate. We do want to try to go further. Secretary of State John Kerry said the administration will continue to try and push support for the deal past the 34 votes they now have "until the last moment." "Thirty-four votes are obviously enough votes for the president veto to be upheld," Kerry told CNN Christiane Amanpour. "That is not satisfactory for us. (news.financializer.com). As reported in the news.

Calgary: The average price of a home in Calgary has also dipped from about $475,000 last year to about $466,000 this year — or by two per cent, CREB says, according to CBC. Weak economy to continue trend CREB chief economist Ann-Marie Lurie says the real estate market in Calgary is not expected to improve anytime soon because of weak energy prices and the local job market. "There should be some further downward pressure on the housing market. Veteran Calgary real estate agent Gary Cronin says he not surprised by the numbers. "In the last 60 days in particular it was a real quiet Calgary resale market, with transactions down about 30 per cent and starting to see some price pressure, especially in the higher categories," he said. Ultimately the amount of pressure there'll be on prices will depend when the energy sector does recover," she said. Homes priced under $500,000 are still selling relatively well. Lurie says the current real estate dip may last longer than previous lulls, but she says the numbers were worse in 2009. (news.financializer.com). As reported in the news.

Automatic Data Processing Inc.: Yields and bond prices move in opposite directions, according to Market Watch. The Beige Book, a compilation of economic anecdotes from the central bank individual districts, offered a mixed bag for policy makers ahead of a Sept. 16-17 meeting of Fed policy makers. The yield on the benchmark 10-year U.S. Treasury note TMUBMUSD10Y, -0.16% rose 2 basis points to 2.193%. The yield on the two-year note TMUBMUSD02Y, -0.53% rose less than half of a basis point to 0.720%. A basis point is 1/100 of a percentage point. Earlier, investors digested a rise of 190,000 in August private-sector payrolls reported by Automatic Data Processing Inc. and a large upward revision to second-quarter productivity data. There is a very strong correlation between equity markets and the front end of the U.S. rate curve, wrote Kit Juckes, global macro strategist at Société Générale. Bond traders were likely taking cues instead from the U.S. stock market, which bounced back from steep losses scored on Tuesday as China market turmoil subsided. (news.financializer.com). As reported in the news.

Ottawa: Ben Myers of Fortress Real Developments said a few years ago a condo project launch in Ottawa led to brisk sales, according to CBC. Now he says there an oversupply of units and investors who once snapped them up are no longer as interested. In recent months the Canadian Mortgage and Housing Corporation has reported a lot of supply but less demand for condos in the city, and it has also noted that builders have scaled back on starting new projects. In June 2015, the CMHC reported that builders were scaling back on condominium apartment starts due to the tepid demand. The market shift led Myers company to change its plans for a 21-storey condominium tower on Bronson Avenue, instead constructing a rental building. In May the number of completed and unsold condos in Ottawa reached 435, up from the 10-year average of about 155. (news.financializer.com). As reported in the news.

equity investment funds: Brokerages including Guotai Junan Securities Co, Changjiang Securities and Pacific Securities said they would increase the size of their equity investment funds to 20 percent of net assets, up from 15 percent currently, according to Euro News. The announcements follow a joint statement issued late on Monday by China major institutions charged with supervising financial markets which encouraged listed firms to merge, offer cash dividends, and buy back shares to support the market. The estimates by the Journal followed Tuesday announcement by several Chinese brokerages that they would increase the size of their proprietary trading as weeks of turmoil in mainland markets showed little sign of abating. An editorial in the English-language China Daily said on Wednesday the move would help the stock market and economy in the long term. But in terms of expediting the reform of state-owned enterprises and promoting healthy development of the stock market, the move to increase cash dividends for Chinese shares was long overdue. This move is not ostensibly aimed at restoring value to the stock market any time soon, it said. (news.financializer.com). As reported in the news.

Lachine Canal: Real estate investors hoping to cash in on MUHC superhospital Griffintown businesses face pressure to sell buildings Projet Montréal is requesting that candidates in the upcoming federal election take a stand on the increasing privatization of Lachine Canal, which is managed by Parks Canada. "We've noticed there are more privately-owned docks — that are closed to the public — that are being opened along the canal," said Craig Sauvé, a Projet Montréal city councillor for the Southwest borough, told CBC Homerun on Wednesday. "Citizens have come to us and asked, 'what all this about ' They see this big metal cage saying 'private' just along the Lachine Canal." Sauvé said there are three or four privately owned docks on the canal. "We would like it to be public," he said. "We think its great that there are new people coming in to the neighbourhood and they want to use the docks and the canal, according to CBC. We just want to make sure all the docks are accessible to everyone." Ferrandez said Parks Canada would be wise to capitalize on the money it already invested in the area and curb the increase in private docks. Ferrandez he concerned Montrealers will stay away from the area if they don't feel it truly a public space. The bike paths that run along the canal are popular routes for cyclists, and a number of Montrealers use the canal for boating, sunbathing and other warm-weather activities. Parks Canada and Transport Canada did not return a request for comment on Wednesday. (news.financializer.com). As reported in the news.

The Air Force: The bullets, the cases dropped on the ground right there and then, Dan Sheahan, told Las Vegas Now, according to The Independent. Mr Sheahan says that the government has intimidated his family and driven away potential business partners. These were fired over our property. The Sheahan family has owned the Groom Mine on the property for more than 130 years. The Air Force argued in a recent press release that the "increasing national security demands have made it impossible for the Air Force to test and train securely and safely while civilians are present." "What the American people have got to realize is if they can do this to us, they can do it to each and every one of them," Mr Sheahan said. Still, the government has ordered the family to take the money and run, or they will seize the property through eminent domain. (news.financializer.com). As reported in the news.

economic growth: New loans likely fell sharply from July, while manufacturers had to cut prices more deeply to win business, according to Euro News. The downbeat data will raise the chances that annual economic growth may dip below 7 percent in the third quarter for the first time since the global financial crisis, as demand weakens at home and abroad. While industrial output may have picked up last month, China exports and imports likely continued to shrink and growth in fixed-asset investment is languishing near multi-year lows, a Reuters poll showed. Fears that China may be at risk of a hard landing that would jeopardise the global economy have grown in recent weeks after a series of grim factory activity surveys. Tao Wang, China economist at UBS in Hong Kong, said some August data may not seem as bad on the surface as those in July when compared with a year earlier but will still point to a loss of economic momentum over the summer. The government is also still struggling to stabilise the yuan after its surprise devaluation of the currency on Aug. 11 and has been unable to halt a stock market rout that has seen the country share indexes plunge 40 percent since mid-June. (news.financializer.com). As reported in the news.

Margin loans: Margin loans are money investors borrow to buy stocks, and regulators have warned that any such loans extended in the unregulated grey market, outside the brokerage system, are illegal, according to Euro News. China securities association estimated in June that there were about 1 trillion yuan worth of grey market margin loans extended via the industry three mainstream stock trading systems. The crackdown targets both new and existing businesses, but for some brokerages whose clients have borrowed massively in the grey market, the deadline can be pushed back to the end of October, the newspaper said, citing unnamed sources. While unregulated margin business is seen as a risk to the financial system, the clampdown could choke off a source of liquidity to markets still struggling to stand on its feet. euronews provides breaking news articles from Reuters as a service to its readers, but does not edit the articles it publishes. Copyright 2015 Reuters. (news.financializer.com). As reported in the news.

South Africa Russia: Real yields on equivalent debt from South Africa and Russia, countries with similar credit ratings, are at least 190 basis points lower, according to Business Week. Bondholders’ wariness reflects security risks in Turkey and a worsening political environment after failed coalition talks triggered early elections. The slump in Turkish government bonds has sent two-year yields rising nearly 3 percentage points this year, lifting the extra rate over inflation to more than 4 per cent, the highest since 2011. It also reveals investors are convinced inflation has bottomed as the third-biggest depreciation among major currencies this year lifts prices for imported goods while the expected increase in US interest rates threatens further lira declines. Police Raid As the country gears up for general elections in November following the inconclusive June vote, tensions are rising. The attractiveness of the currently elevated real Turkish bond yields on offer is tempered by a high political risk premium, prospects of increasing domestic inflationary readings from exchange rate pass-through, and high volatility from movements in rates and currency markets, Phoenix Kalen, says an emerging market strategist at Societe Generale in London. (news.financializer.com). As reported in the news.

: Terrible Tuesday, according to The Toronto Star. Wicked Wednesday. Black Monday. The Great Fall of China. Thank goodness Chinese markets are closed until Monday for a holiday. These are just a few of the online witticisms about China market woes brought on by fears of its weakening economy. (news.financializer.com). As reported in the news.

: And let us endeavor to comprehend in all its magnitude and to feel in all its importance the part assigned to us in the great drama of human affairs.* *—DANIEL WEBSTER, DEDICATION OF BUNKER HILL MONUMENT, 1825* Less than fifty years after our founding, the benefit of America example for the world was evident, according to MSNBC. Yet Daniel Webster could not have begun to imagine the true magnitude of the role we would play in the great drama of human affairs. David Hume Kennerly Yes, We Are Exceptional *And now let us indulge an honest exultation in the conviction of the benefit which the example of our country has produced and is likely to produce on human freedom and human happiness. We have guaranteed freedom, security, and peace for a larger share of humanity than has any other nation in all of history. There never has been. There is no other like us. (news.financializer.com). As reported in the news.

resource sector: Digging into the GDP numbers confirms that it is not just the oilsands economy that is in trouble, according to The Toronto Star. There appears to have been very little new investment in new machinery and equipment in manufacturing outside the resource sector, and non resource exports have done badly. The appropriate federal government policy response is to boost both private and public investment. One particularly disturbing statistic is that business investment in intellectual property fell by 5 per cent in the first quarter and by another 4.6 per cent in the second quarter. As Conservative Leader Stephen Harper has been quick to point out, the service sector which now accounts for most of the economy has continued to grow. This is a key metric of the very limited extent to which our economy is making the necessary transition towards the production of knowledge — intensive goods and services. (news.financializer.com). As reported in the news.

: Consumers, and that means voters, are starting to suffer financial hardship which is one reason the Coalition should find any issue other than economic management to fight the upcoming election on, according to The Guardian. Related:Abbott has given up on debt and deficit reduction, but few have noticed Stephen Koukoulas Making the issue of economic management even more parlous for the Abbott government is its abject failure to deliver on its pledges and promises prior to the September 2013 election. The economy remains moribund, with each hopeful snippet of good news quickly shot down by a flood of mediocre or downright bad news. Those included return to budget surplus, cutting government debt and having a pro-business strategy in its economic policy management. Even last week, Abbott said, without a hint of embarrassment, that his government will fight for jobs, we will fight for investment and we will fight for growth . The inference from this powerful rhetoric is that under the Abbott government and its policies, the business sector would be strong and the economy robust. Indeed, on election night in 2013, prime minister elect Tony Abbott declared Australia open for business . Abbott has reiterated this mantra since that time with his economic growth and jobs theme. (news.financializer.com). As reported in the news.

financial system banks: If the markets were looking for significant spillover from China or significant deterioration in U.S. economy in latest Beige Book, it not there, said John Canally, chief economist strategist at LPL Financial, according to Market Watch. China market turmoil upends banks' expansion plans China booming markets and plans to further open up its financial system led banks, hedge funds and brokers to expand their businesses. But there were also indications that the strong dollar and the drop in oil prices were depressing activity, which could argue for holding off on raising interest rates at the Sept. 16-17 policy meeting. But as the WSJ Ken Brown explains, the huge selloff in the markets and Beijing reaction to it will likely hurt these companies and could force them to scale back their expansion plans. The Dow Jones Industrial Average DJIA, +1.82% gained 293.03 points, or 1.8%, to end at 16,351.38, while the Nasdaq Composite Index COMP, +2.46% picked up 113.87 points, or 2.5%, to close at 4,749.98, put the tech laden back in positive territory. The S&P 500 SPX, +1.83% closed up 35.01 points, or 1.8%, to finish at 1,948.86. (news.financializer.com). As reported in the news.

: Manchester United: Summer 2015 completed transfers "When the club sold the same player to Paris Saint-Germain for just £44.3m on 6 August not only did they lose £15m on the player, but they are also likely to have lost a further £7.5m due to the exchange at the time." The pound has risen from below 1.2400 in September 2014 to a high of 1.4415 in July, according to The Independent. Conversely, the weak Euro means that Premier League clubs saved a whopping £85m on players brought in from the continent - with the 20 clubs combining to pay £483m for players this summer. A statement put out by the company read: "When Manchester United bought Argentinian winger Angel Di Maria from Real Madrid on the 26 August 2014 the cost was £59.7m at a rate of 1.2558. That means that Louis van Gaal and Ed Woodward actually came out on top, with new arrivals Memphis Depay, Matteo Darmian, Bastian Schweinsteiger and Anthony Martial all coming from Europe. (news.financializer.com). As reported in the news.

Deutsche Umwelthilfe: Coffee-to-go cups - some made from plastic, others made from plastic-paper composites - usually ended up being incinerated in municipal plants, instead of being shredded as recyclable material as many people thought, it said, according to Deutsche Welle. DUH call has the backing of several other lobby groups, including the Nature and Biodiversity Conservation Union Germany and an initiative called "Carry your Cup." The tax proposal was promptly rejected, however, by The German Coffee Federation. Of the billions of cups sold each year in cafes and bakeries, each was used for only 15 minutes on average, Deutsche Umwelthilfe said. It claimed that if consumers refilled multi-use mugs then this would lead to "hygiene problems." Germs would accumulate around coffee dispensers, it said. Slower pace His organization also encouraged consumers to simply relax and take more time to drink their coffee at cafes and bakeries from ceramic cups, or, at least, to drink a quick Espresso. Proponents say its better to simply slow down and enjoy DUH executive director Jürgen Resch said this was not an unsolvable problem. "Half of Bundesliga stadiums now have refillable cups, for hot drinks as well," he said. (news.financializer.com). As reported in the news.

: So, while Coleman has allowed himself to dream of his side playing at a packed Stade de France, the Wales manager knows such thoughts must be put on hold if the visitors are to avoid tripping up against a side ranked 73 places below them and who have won just three of their last 10 fixtures, according to The Independent. I have allowed myself to think what it would be like if we were playing in a full house at the Stade de France next summer, Coleman said. Expectations are very high in the principality and the game against Israel has long been a sell-out, but there will be no party if the visitors fail to play their part for qualification here in Nicosia. I was out there watching Belgium and France in June and I thought ‘what would it be like if I was here with Wales ’ You cannot help but think like that. I and the players can only think about the next game, this game. But we are not there yet. (news.financializer.com). As reported in the news.

media empire: As of Tuesday close, Viacom shares VIA, +2.36% have fallen 50.2 percent over the past year, wiping out $16 billion of value, according to Market Watch. In fact, since Sumner Redstone split his media empire into two companies on Jan. 3, 2006 — Viacom and CBS CBS, +1.14% — shares of the Les Moonves-led TV network have gained 72 percent while the Philippe Dauman-led Viacom is off 2 percent. After watching ratings at the company MTV, Nickelodeon, Spike and Comedy Central fall more sharply than their peers — with nary a response from Viacom executive team — investors are now watching the company shares tumble at a faster rate than other media companies. While the ratings and stock price meltdown has been painful enough, shareholders are now beginning to become concerned about upcoming crucial talks between the company and Dish Networks. In addition, questions are still swirling about how Viacom will replace the popular show hosts Jon Stewart, John Oliver, Stephen Colbert and comedy duo Key and Peele — all of whom exited Comedy Central. Investors are concerned that Dish DISH, -0.07% will be able to force Viacom to accept a cheap price — something Viacom will then have to give its other distribution partners. (news.financializer.com). As reported in the news.

political ambitions: In a speech ostensibly about the Obama administration attempts to bolster higher education, Biden did little to quell the chatter about his political ambitions, railing against economic inequality and casting himself as a warrior for the middle class. "Look at all the press that here," Biden said at Miami Dade College, a playful tease in his voice, as he looked at a crush of cameras. "Their interest in community college is amazing, according to CNN. I hope that what they are going to write about." In his lengthy speech, Biden insisted the country leaders must "restore the bargain, not only in the name of fairness but because it in the strategic economic interests of America to restore the bargain. But his trip here Wednesday, the first since speculation began mounting that he'll launch a late bid for the Democratic presidential nomination, has nonetheless touched off talk that he laying the groundwork for a campaign. We can't have this disparity." "What not happening is the middle class is not back yet," he said, removing hit suit jacket in he Miami heat. Clinton and her husband have made millions delivering paid speeches. His remarks played into political speculation that Biden would run to the left of frontrunner Hillary Clinton, who some of Biden allies suggest isn't able to convincingly discuss issues like the income gap. (news.financializer.com). As reported in the news.

official statistics: First and foremost, Russia may soon feel the effects of China spectacular economic slowdown, according to The Moscow Times. According to official statistics, growth rates decelerated slightly from 7.7 percent in the first quarter of 2013 to 7 percent in the second quarter of 2015 — but calculations based on electricity use suggest the real growth may be as low as 4.5-5 percent. This time, however, that seems to be far more problematic than ever before. Combined with a recent stock market crash, this has already caused a downturn in global commodity prices, which has hit Russia hard. Putin said back in 2007 that by 2025 Russia should dispatch to China around 35 percent of all its oil exports and close to 25 percent of its natural gas supplies . Moscow hoped that China would become Russia new major trading partner, surpassing the EU by 2030. Much more important, however, is the fact that China was not only a price-setting player, but by far the biggest importer of raw materials in the world — and Russian authorities looked forward to turning their country into China largest supplier. (news.financializer.com). As reported in the news.

China: The main aim of the visit is political symbolism, said Vladimir Petrovsky, an expert on China at Russia Academy of Sciences’ Institute of the Far East, according to The Moscow Times. Russia has emphasized developing political and economic ties with China since last year Ukraine crisis began to sour relations with the West, but the apparent fit between Russia raw materials and China rapid growth has been undermined by economic problems on both sides of the Chinese-Russian border. The Russian delegation is expected to enjoy a prominent position at a huge military parade in the Chinese capital on Thursday followed by talks between Putin and his Chinese counterpart, Xi Jinping. Your Parade, My Parade The presence of Putin in the stands at the parade in Beijing will echo the Kremlin extravagant military display to commemorate the 70th anniversary of the surrender of Nazi Germany on May 9 that was attended by Xi but snubbed by most Western leaders. But, like in Moscow earlier this year, there will be few Western heads of state visible in the stands — many snubbed the event because of military tensions in the region, while news agency Reuters reported last week that others were put off by the presence of Putin. Russian soldiers will join more than 10,000 Chinese troops marching through central Beijing. (news.financializer.com). As reported in the news.

interim basis: Dan Mills, who also helped launch the startup, will become CEO on an interim basis, after serving as vice president of hardware for the past several years, according to The Toronto Star. Bublcam takes both pictures and video in a spherical range which creates a new experience for photographers who feel constrained by panoramic shots. The Toronto-based company announced Wednesday that its founder, Sean Ramsay, will leave his post as chief executive officer and assume the role chief innovation officer as he turns his attention solely to building the product and the technology. The baseball-sized camera has four lenses, which grab images from all directions, and laces the information together to create a realistic 360-degree version of a natural environment. We've got a proven, viable product now — both hardware and software — and we're ready for prime time, said Mills in an interview. Once it loaded onto a computer, viewers can scroll across the moving image, quite like exploring the virtual world on Google Maps. (news.financializer.com). As reported in the news.

: GMT, the ruble was 1 percent weaker against the dollar at 67.54 and down 0.5 percent to 75.93 versus the euro, according to The Moscow Times. The closely watched U.S. inventories data, which showed crude stockpiles rising by an unexpectedly large amount, quashed attempts by the oil price and ruble to recover. At 3:50 p.m. After the data, international oil benchmark Brent fell 2.5 percent on the day to $48.3 per barrel. "Oil is back on the downtrend, that the main story for the ruble," said Tatiana Orlova, EM strategist at RBS in London. They viewed the moves as formalities that did not fundamentally change geopolitical risks. Russian markets shrugged off a six-month extension of EU sanctions against Russia over the Ukraine crisis, as well as an expansion of U.S. sanctions. (news.financializer.com). As reported in the news.