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

chinese lawmakers: European Court of Justice rules against big tobacco The ECJ ruled in favor of those calling for plain tobacco packaging laws and a ban on flavored cigarettes, according to Deutsche Welle. The move comes ahead of a new law in Germany that will see pictures of diseased lungs on packs of cigarettes. Several countries, including New Zealand and Norway, have also pledged to ditch pack logos. China needs to act against smoking At the ongoing annual national legislative session, Chinese lawmakers should adopt a raft of measures such as smoke-free public places to curb smoking, the WHO country representative Bernhard Schwartlaender tells DW. British American Tobacco said Friday it was seeking to buy a stake of 57.8 percent in Reynolds American for about $47 billion . The cash-and-shares offer would see BAT purchase exactly the amount of remaining shares that it does not already own. London-listed BAT, which already holds 42.2 percent in Reynolds, said the transaction would give it a leading position in the US tobacco market and a significant presence inhigh growth emerging markets, together with the most attractive developed markets. "The proposed merger of our two great companies is the logical progression in our relationship and offers all shareholders a stake in a stronger, truly global tobacco and Next Generation Products company," said BAT chief executive Nicandro Durante. BAT bids $56.50 per Reynolds share - a 20-percent premium on Thursday close - valuing the North Carolina-based company at around $93 billion. (news.financializer.com). As reported in the news.

daimler: Chinese buyers were especially keen to get behind the wheel of a Mercedes, with unit sales increasing 20 percent there. "Daimler remains on track to achieve our forecast for the full year, despite volatile sales and finance markets, the carmaker finance chief Bodo Uebber said in the earnings report, according to Deutsche Welle. However, sales "in the magnitude of the previous year" means the company is less confident of achieving "a slight increase" it announced in July, when it released its second quarter results. Growth at Daimler was powered by the cars division, whose Mercedes and Smart brands saw 12 percent growth in sales. The announcement was a disappointment for investors, causing Daimler shares to slump by more than 3 percent in morning trading at the Frankfurt Stock Exchange on Friday. German Future Prize 2016: the teams' inventionsA highly sought-after trophy Since 1997, the German Future Prize nominates three teams per year for an inventors' award. Susan Joho, analyst with Julius Bär, said the car company had fulfilled high market expectations in the quarter. "But the future looks more sobering because Daimlers outlook is weak," she told the news agency Reuters. (news.financializer.com). As reported in the news.

dollars: Chinese banks saw a deficit of 69.6 billion US dollars in foreign exchange sales and purchases in the third quarter, up from 49 billion US dollars in the second, but much lower than the 124.8 billion US dollars in the first, according to new data from SAFE. The narrowed forex sales/purchase deficit in the second and third quarters reflected an easing of pressure on cross-border capital withdrawal, Wang said, according to Global Times China. She attributed the increase in the sales/purchase deficit in the third quarter to seasonal factors, as summer vacation and the period before the National Day holiday are peak times for purchasing foreign currencies as residents prepare for studies abroad or overseas travel. The supply and demand of foreign currencies in China have become more balanced since the start of the year, Wang Chunying, spokesperson of the State Administration of Foreign Exchange , said at a press conference. Disregarding seasonal factors, the forex sales/purchase deficit stood at 48.2 billion US dollars during the July-September period, Wang added. Cross-border flows will remain "basically stable" in the future, she predicted, citing China relatively fast economic growth, sound financial system, good fiscal balance, continuous current account surpluses and ample foreign exchange reserves as buffers against shocks. (news.financializer.com). As reported in the news.

hand clothes: At the Mokolo market in the capital Yaounde that is the main supplier of dresses to neighboring countries like Chad, Gabon and the Central African Republic, sellers compete against each other calling out buyers, according to Deutsche Welle. The products on the stalls range between a dollar to US$10 Among the buyers is 21-year-old Bimela Hans who has just been recruited as a secondary teacher in Yaounde. This has led to the stock piling of Chinese products considered to be of inferior quality. Bimela prefers second hand clothes that can be expensive instead new ones that are cheaper. "I prefer second hand goods from Europe and America because of the quality and durability. But when you know what you want, you better go for what is expensive that will last longer than new and cheaper products," he said. European and American goods are very expensive. (news.financializer.com). As reported in the news.

japanese troops: Of the 46 former comfort women who were alive as of Dec. 28, 2015, when the two governments announced the landmark agreement to solve the comfort women issue, 29 of them or their families have expressed their willingness to receive the grants, according to The Japan Times. Six of the 46 have died since the agreement. The payments by the foundation, set up in late July, mark the full start of its project to support the women who were forced to work as prostitutes for Japanese troops before and during World War II. Based on a ¥1 billion contribution from the Japanese government, the foundation plans to pay some ¥10 million to each surviving comfort woman and ¥2 million to the relatives of each such woman who is no longer alive. Some applications for the grants have already been approved and cash distribution has started, an official linked to the foundation said. Meanwhile, the largest opposition party, the Minjoo Party of Korea, and the Korean Council for the Women Drafted for Military Sexual Slavery by Japan are opposed to the agreement reached by Tokyo and Seoul. The official declined to reveal how much was paid to whom and when. (news.financializer.com). As reported in the news.

briefing room: Republican House Speaker Pro Tem Rep, according to MSNBC. Peggy Mast praised the Nazi mass murderer in a post on her Facebook page Thursday. * Bill Murray probably isn't qualified to be a White House press secretary, but seeing him behind the podium in the briefing room was pretty fun. Median usual weekly earnings for full-time black workers rose 9.8% in the third quarter from a year earlier, the fastest rate of growth on records back to 2000, according to data the Labor Department released Thursday. * Kansas: A top Kansas state lawmaker called a quote from Adolf Hitler 'profound' and told her Facebook followers to listen to his words closely. Anything to add Consider this an open thread. Warren Trump says it full steam ahead in final stretch What exactly knocked so many sites offline Bill Murray crashes White House press room Lawrence: Why I hope Trump doesn't concede close Friday Mini-Report, 10.21.16 10/21/16 05:31 PM facebook twitter google plus tumblr instagram rss - Home - Help - Terms of Service - Independent Programming Report - Closed Captioning - Privacy Policy - Newsletters - MSNBC Store - MSNBC Info Blog - Careers - AdChoices - NBCNews.com - Today.com - CNBC.com - Breaking News.com © NBC UNIVERSAL share tweet email save Comment be the first to comment comments back to article Embed Explore: The Maddow Blog - Souter warned of a Trump-like candidate in pr - This Week in God, 10.22.16 More Like This Best of MSNBC Speak Out be the first to comment join the discussion back to article Latest comments Top Stories from NBC News and MSNBC Clinton: Trump talk 'threatens' democracy Ex-aide says Christie knew about Bridgegate 1 day 9 hours ago How an awkward charity dinner summed up 2016 Democratic wave could turn Senate blue 1 day 11 hours ago Geography of Poverty: Prison grip on the black family Schilling considers run against Sen. (news.financializer.com). As reported in the news.

king: Mervyn King, the previous governor of the Bank of England, hailed the lower exchange rate as a welcome change . Indeed, with Britain current-account deficit running above 7% of GDP – by far the largest since data started being collected in 1955 – depreciation could be regarded as a boon, according to The Guardian. But is it Economists would typically argue that the way to balance a country external accounts is through a fall in its currency, which would make imports more expensive and exports cheaper, causing the former to fall and the latter to rise. Since June, the pound has fallen by 16% against a basket of currencies. Higher import prices – a net loss for the country – would be offset by the higher employment and wages generated by the more competitive position of the country exports. For example, a recent paper by Francesco Aiello, Graziella Bonanno, and Alessia Via of the European Trade Study Group finds that the long-run level of exports appears to be unrelated to the real exchange rate for the UK . This means that British consumers and producers will have to bear the entire brunt of devaluation: their import consumption will be rationed through a sharp rise in price inflation, with no offsetting gain for exports. But in order for currency depreciation to work its magic, more demand for exports must be forthcoming when the exchange rate falls . But various studies have shown that the price elasticity of demand for UK exports is low. (news.financializer.com). As reported in the news.

market yardsticks: On Thursday, the benchmark index surged 236.59 points, according to The Japan Times. The Topix index of all first-section issues fell 5.51 points, or 0.40 percent, to 1,365.29, after rising 13.60 points the previous day. The 225-issue Nikkei average lost 50.91 points, or 0.30 percent, to end at 17,184.59. Despite Wall Street setback overnight, the Nikkei average opened higher thanks to buying inspired by the dollar ascent above ¥104. In the afternoon, however, the closely watched market yardsticks fell into negative territory and moved indecisively around the previous day closing levels, pressured by profit-taking amid a prevailing sense of market overheating after the recent consecutive gains and by selling to adjust positions prior to the weekend, brokers said. Stock prices attracted purchases also on hopes for better earnings at major Japanese companies, after earnings at Yaskawa Electric, released Thursday, turned out better than market expectations, brokers said. (news.financializer.com). As reported in the news.

market: It was the weakest level since September 2010 as increased market expectations for an interest rate hike in the United States led to a stronger dollar, according to Global Times China. In China spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the Chinese currency renminbi, or the yuan, weakened 247 basis points to 6.7558 against the US dollar Friday, according to the China Foreign Exchange Trade System. The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. The scale of capital outflows was seen expanded in September, according to a report by UBS China. The market is gradually revising the value of yuan which is believed to be overvalued from 2014 to 2015 and the expected US interest rate hike has pushed the US dollar index to new highs, said Ren Zeping, chief economist at Founder Securities.h Ren also attributed the yuan weakness to increasing downward pressures on domestic economy after the authorities announced a slew of property curb policies. (news.financializer.com). As reported in the news.

p spx: Everybody is sort of scratching their heads about this market, Newton, an independent technical analyst and financial blogger, told Market Watch, according to Market Watch. It is a challenging market to have any conviction, really on either side up or down , he said. The best description of the docile trading lately may be Mark Newton characterization: no-man's-land. Read:How the almighty dollar will tell you where stocks are going next Newton added that the level of disgruntlement in the market is high given that the S&P 500 SPX, -0.01% has hovered around 2,140 since July : Caption outside of wrapper for normal article images The S&P 500 hasn't made much progress over the past four months. Check out:Market Watch Market Snapshot It is tough to argue that we've seen the level of complete washout that might help support higher prices, Newton said. Underscoring that point, the S&P 500, the Dow Jones Industrial Average DJIA, -0.09% and the Nasdaq Composite COMP, +0.30% are trading nearly flat over the past 30-day period, according to Fact Set data. (news.financializer.com). As reported in the news.

utility etfs: The Utilities Select Sector SPDR Fund XLU, -0.58% is up 11.1% thus far in 2016, more than double the 4.5% gain of the S&P 500 index SPX, -0.01% However, it is down 7.6% over the past three months, according to Market Watch. Similar trends were seen in other major utility ETFs. While the defensive sector — so-called because it tends to outperform in times of economic weakness or uncertainty — remains one of the biggest gainers of the year among S&P 500 industries, sentiment has turned against it in recent months. The First Trust Utilities AlphaDEX Fund FXU, -0.70% has slumped 5.8% over the past three months, though it remains up 14.5% year-to-date. Not only do analysts see the 2016 rally as overdone, but also prospects for the group look dimmer with the Federal Reserve widely expected to raise interest rates at its December meeting. The iShares U.S. Utilities ETF IDU, -0.58% is up 11.4% for the year but down 7.4% over the past three months. (news.financializer.com). As reported in the news.

wasn t: The key point in July was the first earnings-per-share number, out of the four reported in the financial statements, that was highlighted first in the press release, according to Market Watch. It was calculated using generally accepted accounting principles , as now mandated by the Securities and Exchange Commission, but it wasn't the actual bottom line number; it was based on continuing operations. The layout of the latest report was basically the same as the second-quarter report—consistency can be a jewel--which Market Watch reported at the time wasn't wrong, but could still mislead investors. The third-quarter report highlighted the same continuing ops GAAP EPS number of 23 cents, which was up 21% from a year ago, while the actual bottom line net earnings GAAP EPS of 22 cents declined 12% from last year. And considering GE has undergone a massive downsizing, with the sale of over $190 billion worth of businesses, it is understandable that it would use multiple numbers that help provide some context. At least those GAAP numbers were once again listed prominently next to each other and the non-GAAP EPS number that is comparable to analyst expectations was clearly listed right below it. (news.financializer.com). As reported in the news.

imf approval: Zimbabwe had been in continuous arrears since 2001, according to Xinhua China. The payment of the debt arrears follows the IMF approval of Zimbabwe debt clearance strategy in May this year. Zimbabwe paid 107.9 million dollars by transferring part of its cash holdings kept at the IMF to the Fund Poverty Reduction and Growth Trust, IMF director of communications Gerry Rice said in a statement. "Zimbabwe is now current on all its financial obligations to the IMF," Rice said. Under the debt clearance strategy, Zimbabwe pledged to clear its debt arrears amounting to 1.8 billion U.S. dollars to the IMF, World Bank and the African Development Bank in 2016. Zimbabwe is in sore need of fresh funding to shore up an ailing economy that is forecast to regress into recession this year after seven years of positive growth. Zimbabwe now remains to settle its 1.15-billion arrears to the World Bank and 601 million dollars to the AfDB. However, the IMF indicated that it would not immediately release new loans to Zimbabwe until it clears arrears with other international financial institutions and bilateral creditors and also implements a strong reform agenda. (news.financializer.com). As reported in the news.

fate: But contact with the vehicle was lost around 50 seconds before the expected landing time, leaving its fate uncertain until the NASA images were received. "Schiaparelli reached the ground with a velocity that was much higher than it should have been — several hundred kilometres per hour — and was then unfortunately destroyed by the impact," Exo Mars flight director Michel Denis said, according to Australian Broadcasting Corporation. It was only the second European attempt to land a craft on Mars, after a failed mission by the British landing craft Beagle 2 in 2003. Key points:Images suggest Schiaparelli landing was accompanied by an explosion Schiaparelli mothership will still sniff out methane and other gases that might indicate the presence of lifeNASA orbiter will provide clearer images of crash site camera next week The disc-shaped, 577-kilogram Schiaparelli probe, part of the Russian-European Exo Mars program to search for evidence of life on Mars, descended from a height of up to 4 kilometres on Wednesday to test technologies for a rover that scientists hope to send to the surface of the planet in 2020. The US space agency Mars Reconnaissance Orbiter, which has been circling the planet for about 10 years, took low-resolution pictures that show a bright spot that ESA believes is the 12-metre parachute that Schiaparelli used to slow down. ESA said it was possible that Schiaparelli landing was accompanied by an explosion, as its thrusters' fuel tanks were probably still full. Photo: Schiaparelli crashed and did not use its thrusters for a soft Mars landing, scientists believe They also show a fuzzy dark patch, around 15 by 40 metres in size, about 1 kilometre north of the parachute, which scientists interpret as having been created by the impact of the lander following a longer-than-planned free fall. (news.financializer.com). As reported in the news.

policy: I cannot do that, according to CNN. I said separation -- what I was really saying was separation of a foreign policy." The Philippines leader comments risk disrupting not just US ties to his country, but US ties to the larger Asia-Pacific, a region that President Barack Obama has made a central pillar of his foreign policy ambitions as he looks to anchor the US in the Pacific century. After White House spokesman Josh Earnest said Friday that Duterte comments were "creating unnecessary uncertainty in our relationship" and hadn't been clarified, Duterte himself explained them in a way that will do little to ease US concerns or the sudden tensions between the allies of 70 years. "It is not severance of ties," Duterte said at a press conference Friday on his return from a state visit to China. "You say severance of ties, you cut the diplomatic relations. Unusually sharp comments from Earnest earlier Friday about a Filipino official attempts to clarify Duterte "separation" remarks may reflect White House uneasiness about the implications of the country stance. What we are saying is that there will be less dependence just on one side of the world," Lopez told CNN. Asked about Lopez comments, Earnest said "I've dubbed that person the Filipino Mike Pence," a reference to the Republican vice presidential candidate, who has often walked back or cleaned up comments by GOP presidential candidate Donald Trump. Read More Philippine Trade Minister Ramon Lopez said Friday that his country would not stop trade and investment with the US. "The statement the President made maintains the relationship with the West. (news.financializer.com). As reported in the news.

sales figures: The Canadian dollar finished the day at 75.04 cents US, down 0.59 of a cent after Statistics Canada released new economic data showing weaker-than-expected inflation and retail sales figures, according to The Toronto Star. The federal agency said the consumer price index was up 1.3 per cent in September compared with a year ago. By Alexandra Posadzki The Canadian Press Fri., Oct. 21, 2016 The loonie took a dive as disappointing economic data coupled with recent comments by Bank of Canada governor Stephen Poloz hinted that an interest-rate cut may be on the horizon. That higher than the year-over-year increase of 1.1 per cent recorded in August, but lower than the 1.5 per cent that economists had predicted for September. The decline was due to lower sales at motor vehicle and parts dealers as well as general merchandise stores. Statistics Canada also reported that retail sales fell 0.1 per cent to $44.0 billion in August. (news.financializer.com). As reported in the news.

system: In recent years, the monetary policies of major economies have taken diverging paths, the capital markets have become more volatile, and instability in the financial system has increased, attendees at the seminar agreed, according to Xinhua China. In responding to potential risks and challenges at the regional level, the accessibility and effectiveness of the Chiang Mai Initiative Multilateralization should be further enhanced, and the functions of the Association of Southeast Asian Nations Plus Three Macroeconomic Research Office in regional macroeconomic monitoring, crisis management, policy dialogue and technical assistance should be strengthened. Speaking at the same event, Waikei Raphael Lam, IMF Resident Representative for China, said that there was great potential for regional financial cooperation for Asia, and suggested enhanced Asian capital market integration and risk control cooperation. At the national level, financial regulation reform should be effectively pushed forward to monitor and manage short-term capital flows, which will help guard against financial risks. While Asia is the world most vigorous region, its infrastructure remains relatively poor and there is huge demand for investment in this regard. Experts hope that international organizations and national regulatory authorities within the region could improve the way in which they monitor the regional macro economy, bringing international organizations such as AMRO and IMF into full play, and building up a regional financial safety net in accordance with Asian practice, thereby, better safeguarding financial stability in Asia. "The Asian Infrastructure Investment Bank will launch more projects in December this year to promote regional interconnectivity, as pushing forward regional cooperation and solving problems in regional development is one of the bank priority tasks," said AIIB Vice President and Chief Administration Officer Luky Eko Wuryanto at the seminar. (news.financializer.com). As reported in the news.

bhs: He took the rings from BHS fingers, beat it black and blue, starved it of food and water, put it on life support and then wanted credit for keeping it alive, according to The Guardian. It could serve as a reverse citation if the honours forfeiture committee removes the knighthood, as it surely will unless Green very quickly presents a large cheque to cover the deficit in the BHS pension fund. Iain Wright, chair of the business select committee that co-authored the report on the demise of BHS, provided the most memorable line. Yet the two-hour debate also felt absurd for the reason hinted at above: is anyone surprised that Green turned out not to be a cuddly capitalist from the John Lewis school of shopkeeping Facebook Twitter Pinterest Tony Blair and Sir Philip Green at the Fashion Retail Academy awards in London in July 2015. Recall the saga of this paper analysis of Green finances in 2003, soon after the BHS purchase; the tycoon angry tirade was a classic of a genre he had made his own. Photograph: David M Benett/Getty Images Green robust approach had been documented for years before Tony Blair awarded him the knighthood in 2006. (news.financializer.com). As reported in the news.

currency crises: By Pan Pylas The Associated Press Thu., Oct. 20, 2016 LONDON—Throughout the 20th century, Britain endured a series of currency crises that exposed its decline as a major global power, according to The Toronto Star. The recent slide in the pound sterling has reawakened memories of those troubled times, including one in the mid-1970s when the country ended up needing an international bailout. But there is a limit to what she and her government will be willing to endure. And it has raised questions of whether another so-called sterling crisis might push the government to soften its plans to break away from the European Union and its single market. That scale of fall is equivalent to some of the great depreciations over recent decades, from 1949 through to 1992, that have caused upheavals in government policy and shaken the economy. The pound has fallen by nearly a quarter against the American dollar since the June 23 vote to leave the EU, from around $1.50 to a 31-year low below $1.20. (news.financializer.com). As reported in the news.

households accounting: By 2015, the gap had fallen to a multiple of around 4.5, according to Nine News Australia. Significant inequality remains, however, with the richest 20 per cent of households accounting for almost two-thirds of the state total net household wealth while the poorest 20 per cent of households have a mere 0.8 per cent. According to a Bankwest Curtin Economics Centre report, the incomes of the state richest 10 per cent of households were at least five times those of the poorest 10 per cent in 2010. BCEC director Alan Duncan says WA economic growth rate has returned to a "new normal" more consistent with the rest of the nation, although the state unemployment rate surpassed the national jobless rate for the first time since 2006 in August."There has been a shift away from full-time towards part-time employment, underemployment is on the rise, and feelings of job insecurity are more prevalent than before," Professor Duncan said."The state has also experienced a net population outflow as its economic performance declined."However, the recent economic slowdown has also resulted in some positive outcomes, including a narrowing of the gap between the rich and poor in WA and a general easing of cost of living pressures in resource-rich regions."The report showed the size of the WA mining workforce has steadily shrunk from nearly 106,000 full-time equivalent positions in mid-2013 to around 84,000 by the end of last year. The region has also experienced the largest decline in the number of 457 visa grants, plunging nearly 75 per cent between 2011-12 and 2015-16.© AAP 2016Western Australia Politics Send your photos, videos and stories to can remain anonymous. In the mining-focused Pilbara region, the cost of living was a whopping 37 per cent higher than in Perth in 2011 but just 18 per cent higher in 2015. (news.financializer.com). As reported in the news.

asia nations: Your honors, in this venue, I announce my separation from the United States … both in military and economics also, Duterte said, according to The Japan Times. His remarks were met with applause, but Duterte was not more specific. The rapprochement between the two Asia nations could widen a political rift between the United States and the Philippines, whose recently elected leader has made no secret of its antipathy for America and ordered an end to joint maneuvers between their militaries. In Washington, U.S. State Department spokesman John Kirby said Duterte remarks were inexplicably at odds with the very close relationship we have with the Filipino people as well as the government there on many different levels, not just from a security perspective. Both sides agreed that the South China Sea issue is not the sum total of the bilateral relationship, Vice Foreign Minister Liu Zhenmin told reporters. Following talks in Beijing between Duterte and his Chinese counterpart, Xi Jinping, a senior Chinese diplomat announced the sides had agreed to restore the full range of contacts, although he said the leaders touched only briefly on the South China Sea. (news.financializer.com). As reported in the news.

brokerage network: To achieve the goal, the bank Mizuho Securities Co. unit will make the most of its expanded research capability to step up marketing to non-institutional investors, as well as boost execution services, Osade said in an interview in Tokyo, according to The Japan Times. The ambitions reflect Chief Executive Officer Yasuhiro Sato efforts to diversify from Mizuho traditional strengths in loans and bonds to generate more fee income as negative interest rates squeeze lending profitability. Tokyo-based Mizuho wants to overtake Nomura as the nation biggest equity firm by client assets and revenue, according to Yohei Osade, global head of Asian equities. Nomura, Japan biggest securities firm, has relied on profit from its retail brokerage network for years, dominating a market that global banks including Merrill Lynch and Morgan Stanley have failed to penetrate as risk-averse households hoard cash. We're far behind Nomura in terms of client assets and revenue from equities, but we have the potential to catch up, Osade said, without giving a time frame. Mizuho had ¥11.8 trillion of retail customer assets in equities as of June, compared with Nomura ¥55.8 trillion. (news.financializer.com). As reported in the news.

currencies haved: In anticipation of the rate hike by the Federal Reserve in December, the US dollar index recently surged to its highest level since March, according to Global Times China. Against such a backdrop, all the other major currencies haved headed lower, including the Chinese yuan. However, there is no ground for concern that the Chinese yuan would embark on a one-way street of devaluation, given that the fundamentals of the Chinese economy are sound and the internationalization of the RMB has steadily moved forward. But it is noteworthy that while the RMB exchange rate against the dollar has reached the lowest in six years, it is gaining value against other currencies. The Chinese currency has in the past experienced a long period of stable exchange rates and China reform to make its exchange rate mechanism more market-oriented will probably see higher volatility for the yuan. According to a Bloomberg report dated Oct. 17, the yuan slumped 0.8 percent against the greenback last week but rose 0.6 percent against a trade-weighted currency basket during the same period, registering its biggest advance in three months. (news.financializer.com). As reported in the news.

current-account-deficit country: And the main driver of my thinking here is deeply rooted in Bill Clinton presidency, according to Market Watch. Back in the late 1990s, the U.S. government ran a brief budget surplus. The reason I say that is because I suspect that her economic plan will not be very stimulative, and I think that four more years of weak economic growth will be intolerable. It was heralded as an act of fiscal responsibility at the time. As Wynne Godley outlined in the late 1990s, the fiscal position was never all that sustainable because, as a current-account-deficit country, the flows were unsustainable. Of course, when the economy tanked immediately following the surplus, the government was driven back in the red as tax receipts cratered and automatic spending jumped: Caption outside of wrapper for normal article images So was the surplus, followed so closely by a sharp recession, just a coincidence I suspect not. (news.financializer.com). As reported in the news.

debt relief: They don't understand that Greece problem isn't its debt level but Greece problem is its lack in competitiveness and its inability to build up functioning administration, he said at a book launch event, according to Market Watch. Everybody pretends as if some kind of debt relief would make anything at all better in Greece. His comments, which signal Germany persisting hard line against Greece, come after Schäuble visited Washington earlier this month, where talks with senior financial officials and the International Monetary Fund included Greece debt sustainability. The only thing that would change is trampling even more all over any willingness to tackle a couple of reforms. Also popular on WSJ.com: What does Nevada $35 billion fund manager do all day Nothing. An expanded version of this report appears on WSJ.com. (news.financializer.com). As reported in the news.

housing downturn: Key points:Morgan Stanley is forecasting a credit crunch Mounting evidence the housing cycle is already starting to roll over already Significant chance the contagion of a housing downturn may spread directly to household balance sheets The Morgan Stanley strategy team said there were "mixed signals" in the housing cycle, which were causing complacency about the impact of a potential slowdown. "Construction is booming, but we see a sharp slowdown ahead for future apartment developments," said the report principal author, Daniel Blake. "Transaction volumes and price growth have slowed, but auction clearance rates have remained high — reflecting lower volumes and their bias to top-quartile more expensive Sydney and Melbourne property. "Rental conditions have deteriorated and we expect them to weaken further on the basis of a sustained overbuild." Apartment glut to hit 100,000 Morgan Stanley is forecasting a credit crunch resulting in a hard landing for the new apartment construction cycle, according to Australian Broadcasting Corporation. The apartment sector is facing a perfect storm of tighter credit conditions, — being driven by banking regulators locally and offshore — reduced appetite from investors, cost escalations affecting returns and weakening industry sentiment, which Morgan Stanley argued could lead to a "sudden stop" of new projects. Related Story: Apartment prices fell 20pc back in 2004, could history repeat Related Story: High-rise apartment boom may be risky to economy: Westpac Related Story: Foreign banks funding the apartment boom: UBSMap: Australia A slowdown in the housing industry and a glut in high rise apartments is putting 200,000 jobs at risk and could drive unemployment up to 6.5 per cent, according to detailed research from US investment bank Morgan Stanley. On the bank figures this would result in an "overbuild" of 100,000 apartments and rental vacancy rates reaching historical highs of up to 4.5 per cent. That bear case would see valuations falling by more than 10 per cent, leaving investors with an incentive to walk away from contracted purchases, developers going under and banks being hit with deteriorating credit quality and rising delinquencies. " The resulting developer insolvency, and a shock to employment from a sharp correction in activity would lead to an associated hit to wealth, confidence and spending," Mr Blake warned. Worryingly for the banks, the research found under this scenario up to $120 billion worth of settlements due by the end of 2018 would be at risk. "The negative feedback loop from broadening developer distress is the fast track to our bear case," Mr Blake noted. (news.financializer.com). As reported in the news.