Weak trade put brakes on German growth in third quarter

The German economy halved its growth rate to 0.2 percent in the third quarter despite rising private consumption and higher state spending as weak foreign trade slowed overall activity in Europe’s biggest economy. Confirming a preliminary reading for growth, the Federal Statistics Office said on Thursday that net foreign trade subtracted 0.3 percentage points from GDP growth as exports fell by 0.4 percent on the quarter and imports rose by 0.2 percent. Continue reading “Weak trade put brakes on German growth in third quarter”

Oil falls $2 a barrel on OPEC cut uncertainty ahead of meeting

U.S. crude fell nearly 4 percent dragged down by uncertainty over whether the Organization of the Petroleum Exporting Countries will reach an output deal, after Saudi Arabia said it will not attend talks on Monday with non-OPEC producers to discuss supply cuts. Top OPEC oil exporter Saudi Arabia has told the producer group it will not attend talks on Monday with non-OPEC producers to discuss limiting supply, OPEC sources said, as it wants to focus on having consensus within the organization first. Continue reading “Oil falls $2 a barrel on OPEC cut uncertainty ahead of meeting”

Japan October consumer prices continue slide, yen falls may help BOJ

Japan’s core consumer prices marked their eighth straight month of annual declines in October, illustrating the sheer scale of the central bank’s struggle to beat deflation and stagnant growth with diminishing policy options. The data will keep policymakers under pressure to do more to stimulate the economy, with fiscal spending likely the more preferred option as three years of aggressive easing by the Bank of Japan failed to accelerate inflation to its 2 percent target. Continue reading “Japan October consumer prices continue slide, yen falls may help BOJ”

Wells Fargo asks U.S. court to dismiss account scandal lawsuit

Wells Fargo & Co has asked a U.S. court to order dozens of customers who are suing the bank over the opening of unauthorized accounts to resolve their disputes in private arbitrations instead of court, according to legal documents. The motion, filed in the U.S. District Court in Utah on Wednesday, is in response to the first class action lawsuit filed against Wells since it agreed to pay $185 million in penalties and $5 million to customers for opening up to 2 million deposit and credit-card accounts in their names without their permission. Continue reading “Wells Fargo asks U.S. court to dismiss account scandal lawsuit”

Wilbur Ross, Billionaire Investor, Is Said to Be Trumps Commerce Pick

President-elect Donald J. Trump is expected to select as commerce secretary Wilbur Ross, a billionaire investor who became known as the king of bankruptcy for buying, restructuring and selling off steel makers and other fading industrial companies, officials on the transition team said on Thursday. After choosing national security hard-liners for some of his earliest appointments, Mr. Trump is now turning to a group of ultrawealthy conservatives to help steer administration policy. Continue reading “Wilbur Ross, Billionaire Investor, Is Said to Be Trumps Commerce Pick”

Airstrike hits Mosul bridge, disrupting IS supply lines

An airstrike by the U.S.-led coalition on Wednesday “disabled” a fourth bridge across the Tigris River in Mosul, leaving only one intact crossing in the northern Iraqi city and further disrupting the Islamic State group’s supply lines. The IS-run Aamaq news agency and an Iraqi military commander in Mosul reported the pre-dawn airstrike, the second to target a bridge this week. Two other bridges were destroyed by airstrikes last month. Continue reading “Airstrike hits Mosul bridge, disrupting IS supply lines”

Superlong JGBs lifted by strong 40-year sale results

Japanese government bonds mostly rose, following upbeat results from a 40-year sale that brought superlong bond yields off their session highs, as well as speculation that Japan’s finance ministry might trim its issuance of longer maturities. The benchmark 10-year JGB yield was flat at 0.030 percent, after earlier rising to 0.045 percent, its highest since February. Continue reading “Superlong JGBs lifted by strong 40-year sale results”

32 bodies found in clandestine graves in southern Mexico

Investigators searching clandestine graves have found 32 bodies and nine human heads in the southern Mexico state of Guerrero, where authorities say they are battling a wave of drug gang violence. The grisly discoveries came in the municipality of Zitlala, where a drug gang had set up a rural camp where it held kidnap victims and disposed of its victims’ bodies. When a joint military-police patrol happened on the camp earlier this week, it found a kidnapped man and what appeared to be clandestine burial pits. Continue reading “32 bodies found in clandestine graves in southern Mexico”

This is the greatest suckers’ rally of all time: David Stockman

The Trump rally raged on this week with all major U.S. indexes hitting record highs, but despite the historic run, David Stockman is doubling down on his call for investors to sell everything. “This 5 percent eruption is meaningless. It’s some robo machine trying to tag new highs,” Stockman said Tuesday on CNBC’s “Fast Money,” in a dismissal of the S&P 500 rally. “I see a recession coming down the pike in 2017. Continue reading “This is the greatest suckers’ rally of all time: David Stockman”

Germany’s two-year bond yield hits record low on scarcity fears

Germany’s two-year government bond yield hit a fresh record low on Wednesday on expectations that the European Central Bank will extend its asset purchase programme beyond March 2017 and exacerbate a scarcity of tradable debt in the market. The two-year German government bond fell as low as minus 0.74 percent at 0715 GMT, having dipped below minus 0.70 percent for the first time in months on Tuesday. Continue reading “Germany’s two-year bond yield hits record low on scarcity fears”

Gold drops to lowest finish since early February

Gold prices sank Wednesday to their lowest settlement since early February, as the dollar jumped after largely upbeat economic data. Gold ended the regular trading session down $21.90, or 1.8%, at $1,189.30 an ounce, which marked the lowest close since early February, according to FactSet data. Financial markets generally expect the central bank to raise rates during its next policy meeting in mid-December. Continue reading “Gold drops to lowest finish since early February”

Trump taps Gov. Nikki Haley for ambassador to UN

President-elect Donald Trump has chosen South Carolina Gov. Nikki Haley as U.S. ambassador to the United Nations, the first woman tapped for a top-level administration post during his White House transition so far. Haley, an outspoken Trump critic throughout much of the presidential race, would become his first female and first nonwhite Cabinet-level official if confirmed by the Senate. Continue reading “Trump taps Gov. Nikki Haley for ambassador to UN”

Offshore yuan hits new record low in volatile trade

China’s offshore yuan hit a record low above 6.94 per dollar on Wednesday as traders in Europe and North America grappled with a strengthening dollar and signs of accelerating capital outflows from the Asian state in the wake of Trump’s U.S. election win. The offshore yuan fell almost half a percent to 6.9441 per dollar as U.S. currency dealers arrived at their desks, with the currency on track for its heaviest monthly falls in 15 months. Continue reading “Offshore yuan hits new record low in volatile trade”

Russian tankers defy EU ban to smuggle jet fuel to Syria – sources

Russian tankers have smuggled jet fuel to Syria through EU waters, bolstering military supplies to a war-torn country where Moscow is carrying out air strikes in support of the government, according to sources with knowledge of the matter. The Russian defence and transport ministries did not initially respond to requests for comment. Continue reading “Russian tankers defy EU ban to smuggle jet fuel to Syria – sources”

New plans for bank reforms in Europe could hit Wall Street lenders

The European Commission has unveiled a new set of proposals aimed at banks operating in the European Union (EU) that could potentially add further pressure on balance sheets that are already facing a challenging environment of low interest rates. The key aspect of the proposed reforms – released Wednesday morning – is the implementation of a caveat that is designed to deal with the “too-big-to-fail” problem at an international level. Continue reading “New plans for bank reforms in Europe could hit Wall Street lenders”

Turkey and E.U. Near Breaking Point in Membership Talks

The European Parliament is likely to vote on Thursday to suspend negotiations to bring Turkey into the European Union, infuriating Ankara and possibly hastening the end of a long and troubled process. While the vote is advisory rather than binding, the government of President Recep Tayyip Erdogan is smarting from European criticism of its crackdown on opponents and on the news media after a failed coup attempt in July. Continue reading “Turkey and E.U. Near Breaking Point in Membership Talks”

Trump Announcement on NO Clinton Investigation ‘Deeply Disturbing,’

On Tuesday’s edition of “The Kelly File” on the Fox News Channel, Breitbart editor at large Peter Schweizer, author of “Clinton Cash,” criticized President Elect Donald Trump’s statement that he doesn’t want to prosecute Hillary Clinton. Schweizer said, “I think it’s deeply disturbing. Look, he shouldn’t be talking about this at all. It’s not his job. I was on your program earlier this year, Megyn, talking about how inappropriate it would be for President Obama to intervene in an investigation. Continue reading “Trump Announcement on NO Clinton Investigation ‘Deeply Disturbing,’”

U.S. drillers add most oil rigs in a month since July -Baker Hughes

U.S. oil drillers added rigs this week, boosting the number of increments in November to the most in a month since July, as shale producers boost spending to capture forecast higher crude prices in coming months. Drillers added three oil rigs in the week to Nov. 23, bringing the total count up to 474, the most since January, but still below the 555 rigs seen a year ago, energy services firm. In November alone, drillers added 33, the most in a month since July. Continue reading “U.S. drillers add most oil rigs in a month since July -Baker Hughes”

U.S. new home sales unexpectedly fall in October

New U.S. single-family home sales unexpectedly fell in October, but this is likely a temporary setback for the new housing market against the backdrop of a strong labor market. The Commerce Department said on Wednesday new home sales declined 1.9 percent to a seasonally adjusted annual rate of 563,000 units last month. September’s sales pace was revised down to 574,000 units from the previously reported 593,000 units. Continue reading “U.S. new home sales unexpectedly fall in October”

‘Chapter 22’ looms over some U.S. oil and gas bankruptcy survivors

More than 200 energy companies have filed for creditor protection since the beginning of 2015, according to Haynes and Boone LLP. Of those with initial debt loads of at least $450 million, nearly 20 have exited bankruptcy.Some whittled their debt loads down to a fraction of their projected earnings, according to a Reuters analysis of financial disclosures. Those left with large debt compared to their estimated future earnings may be at risk for a Chapter 22 scenario. Continue reading “‘Chapter 22’ looms over some U.S. oil and gas bankruptcy survivors”

Trump won with lowest minority vote in decades, fueling divisions

Donald Trump won the U.S. presidency with less support from black and Hispanic voters than any president in at least 40 years, a Reuters review of polling data shows, highlighting deep national divisions that have fueled incidents of racial and political confrontation. Trump was elected with 8 percent of the black vote, 28 percent of the Hispanic vote and 27 percent of the Asian-American vote, according to the Reuters/Ipsos Election Day poll. Continue reading “Trump won with lowest minority vote in decades, fueling divisions”

Trump overseas business interests subject to new scrutiny

Meetings between President-elect Donald Trump and the Japanese prime minister as well as a subsequent meeting with business partners from India are raising questions about how difficult it may be to untangle Trump’s worldwide properties once he is sworn in. A CNN review of Trump’s most recent financial disclosures show the President-elect has about 150 companies that have had dealings in at least 25 countries outside of the US, including Turkey, China, Saudi Arabia, and Azerbaijan. Continue reading “Trump overseas business interests subject to new scrutiny”

Germany’s Merkel ‘not happy’ Pacific trade pact in danger

German Chancellor Angela Merkel said Wednesday she’s not happy about the possible demise of the Trans-Pacific Partnership trade agreement, which President-elect Donald Trump wants to pull the U.S. out of. She argued that alternative pacts will be a poor substitute. Merkel didn’t mention Trump directly in a speech to the German Parliament in which she called for nations to take a multilateral approach to solving global problems, but made plain her unease at his approach to major trade pacts. Continue reading “Germany’s Merkel ‘not happy’ Pacific trade pact in danger”

Let’s rebuild our infrastructure, not provide tax breaks to big corporations

Our infrastructure is collapsing, and the American people know it. Every day, they drive on roads with unforgiving potholes and over bridges that are in disrepair. They wait in traffic jams and ride in overcrowded subways. They see airports bursting at the seams. They see the need for a modern rail system. They worry that a local levee or dam could fail in a storm. Continue reading “Let’s rebuild our infrastructure, not provide tax breaks to big corporations”

Oil patch recession wipes out more than $4 billion in wages

As the price of crude shows little sign of a resurgence to its levels from two years ago, some parts of America’s oil country are taking a much bigger hit than others. When global oil prices crashed in late 2014, U.S. oil fields braced for lost jobs and wages. So far, the oil bust has taken a $4 billion-dollar bite out of oil patch workers’ paychecks, according to the latest data available from the Bureau of Labor Statistics, with no recovery in sight. Continue reading “Oil patch recession wipes out more than $4 billion in wages”

US says Russian deployment of missiles ‘destabilizing’ to Europe

Russia’s deployment of its S-400 air missile defense system and ballistic Iskander missile in the Russian enclave of Kaliningrad “is destabilizing to European security,” the U.S. State Department said on Monday in response to reports citing the head of the defense committee in Russia’s upper house of parliament. “Russia has made threats to move its Iskander missiles to Kaliningrad for the past decade in response to a variety of developments in Europe, none of which demand such a military response,”. Continue reading “US says Russian deployment of missiles ‘destabilizing’ to Europe”

Negative rates for retail clients would trigger bank run -UBS’s Kalt

Swiss banks would face mass withdrawals by depositors if they were to introduce negative interest rates for retail clients, UBS’s chief economist for Switzerland said on Tuesday. Since January 2015, the Swiss National Bank (SNB) has imposed a 0.75 percent charge on deposits with the central bank above a certain threshold, part of the SNB’s policy to weaken demand for Switzerland’s currency. Continue reading “Negative rates for retail clients would trigger bank run -UBS’s Kalt”

Trump’s NAFTA revamp would require concessions

President-elect Donald Trump’s plan to renegotiate the North American Free Trade Agreement (NAFTA) to make it “a lot better” for U.S. workers would not be a one-way street for his administration, as Canada and Mexico prepare their own list of demands that could require difficult U.S. Concessions. The 22-year-old NAFTA and other trade deals became lightning rods for voter anger in the U.S. industrial heartland states that swept Trump to power this month. Continue reading “Trump’s NAFTA revamp would require concessions”

Trump wages war on ‘dishonest’ media ‘but will now meet NY Times’

Donald Trump is meeting New York Times executives, his spokeswoman says, hours after cancelling the face-to-face, complaining of “nasty” coverage. The US president-elect had earlier accused the newspaper on Twitter of changing the terms of the meeting. The apparent U-turn came a day after he berated media chiefs at Trump Tower for their “unfair” election coverage. Continue reading “Trump wages war on ‘dishonest’ media ‘but will now meet NY Times’”

Major indexes hit records as post-election rally goes on

All three major U.S. stock indexes set record closing highs on Monday, extending their post-election rally as energy and other commodity-related shares gained and Facebook led a jump in technology. Small caps added to recent gains as well, pushing the Russell 2000 index to a record high close. The session marked the first time all four indexes hit closing records on the same day since Dec. 31, 1999. Continue reading “Major indexes hit records as post-election rally goes on”

Japan PM says TPP meaningless without US as Trump nixes pact

Japan’s prime minister said Monday the Trans-Pacific Partnership trade deal would be “meaningless” without U.S. participation, as Donald Trump announced he planned to quit the pact. Shinzo Abe’s comment came shortly before the U.S. president-elect released a short video about his plans for his administration, including an intention to have the United States drop out of the TPP pact. Continue reading “Japan PM says TPP meaningless without US as Trump nixes pact”

Investors Make Bullish Bet on Trump, and an Era of Tax Cuts and Spending

Two weeks after Donald J. Trump swept to victory, investors from around the world are betting that his promises of tax cuts, fewer regulations and a spendthrift federal government can recharge the American economy. This burst of exuberance sent the major markets to record highs on Monday, as investors continued to pull out of government bond funds whose yields are miserly. Continue reading “Investors Make Bullish Bet on Trump, and an Era of Tax Cuts and Spending”

Trump could run afoul of this obscure constitutional clause

An obscure clause in the Constitution could pose problems for President-elect Donald Trump. The “emoluments clause,” which effectively bars federal officials from doing business with or taking gifts from foreign governments without congressional approval, has come to the forefront due to Trump’s sprawling business interests around the globe. Continue reading “Trump could run afoul of this obscure constitutional clause”

Euro zone nations turn to hedge funds to meet borrowing needs

Euro zone governments are increasingly relying on hedge funds to help them meet their borrowing needs, which risks leaving them vulnerable to a debt market sell-off driven by a class of investors dubbed “fast money” for their speculative approach. Hedge funds tend to look for quick returns on investments, which could increase the volatility of government bond markets as they face several tests of sentiment in coming months. Continue reading “Euro zone nations turn to hedge funds to meet borrowing needs”

ECB’s Draghi says consequences of Trump’s win hard to assess

The European Central Bank’s President Mario Draghi said on Monday that one should look beyond a “muted” market reaction to Donald Trump’s U.S. election win, which will have long-term consequences that are difficult to predict. “I don’t think we should stop at that (muted market reaction),” Draghi told the European Parliament. Likening Trump’s victory to Britain’s vote to leave the European Union, Draghi added: “Clearly, these changes have a long term impact which is very difficult to assess.”

Sneakers show limits of trade policy in reviving jobs for Trump

American companies from appliance makers to auto parts suppliers have lined up to offer a quiet caution to President-elect Donald Trump as he considers pulling the United States from trade deals: most lost manufacturing jobs aren’t coming back, but higher costs for consumers could. Companies like Nike have invested too much in those lower-wage economies to consider moving factories, even if tariffs rise and push up costs for American consumers, analysts say. Continue reading “Sneakers show limits of trade policy in reviving jobs for Trump”

Trump says will quit Pacific trade deal on day one of presidency

U.S. President-elect Donald Trump released a video on Monday laying out actions he will take on his first day in office on Jan. 20, including withdrawing the United States from a Trans-Pacific Partnership trade deal. Trump also said he would issue a rule cutting government regulations, direct the Labor Department to investigate abuses of visa programs, and cancel some restrictions on energy production, including shale oil and gas and coal.

Schumer: We Are Not Going to Help Trump ‘Build His Wall’

On Sunday’s broadcast of NBC’s “Meet The Press,” newly elected Senate Minority Leader Chuck Schumer (D-NY) said the Senate Democrats are not going to help President-elect Donald Trump “build his wall. Trump voiced very progressive and populist opinions: changing our trade laws dramatically, a large infrastructure bill, cleaning up the swamp in Washington. Continue reading “Schumer: We Are Not Going to Help Trump ‘Build His Wall’”

Trump’s new FCC advisers are more bad news for net neutrality

President-elect Donald Trump named two advisers to his Federal Communications Commission landing team yesterday, and the picks could spell more bad news for net neutrality. Two anti-regulation scholars now on team As previously reported, Jeffrey Eisenach, a well-known anti-regulation scholar at the the American Enterprise Institute, has been tapped to help the transition. Continue reading “Trump’s new FCC advisers are more bad news for net neutrality”

Tyson Foods sales drop 12.8 pct; CEO to step down

Tyson Foods Inc reported a 12.8 percent drop in quarterly revenue, hurt by lower sales of beef and chicken, and said Chief Executive Donnie Smith would step down at the end of the year. Tyson’s shares were down 7.7 percent in premarket trading on Monday. The company said its president, Tom Hayes, will succeed Smith as chief executive. Continue reading “Tyson Foods sales drop 12.8 pct; CEO to step down”

AIG eyes ‘direct investments’ in mortgages: FT.com

Insurer American International Group, or AIG, is looking to move into residential property loans with plans to make what company representatives called direct investments in mortgages, the Financial Times reported Sunday. The newspaper’s website reported that AIG’s Chief Investment Officer Doug Dachille has told investors that increasing AIG’s allocation to residential mortgages was one of his “key initiatives.” AIG currently has less than $4 billion invested in residential mortgages, according to the FT, which represents less than 1 percent of its $515 billion balance sheet. Nick Bit: Here we go again!

Credit Suisse moves toward Swiss bank spin-off

Credit Suisse has moved more than 1 million customers into a new Swiss bank which goes live on Sunday, a step toward what could be Switzerland’s biggest stock market listing in more than a decade. The creation of the new subsidiary that caters for Swiss retail, corporate, private and investment banking clients, is part of a broader shake-up of Credit Suisse under Chief Executive Tidjane Thiam to focus more on wealth management and less on volatile investment banking. Continue reading “Credit Suisse moves toward Swiss bank spin-off”

Rep Ellison: Trump Won’t ‘Drain The Swamp,’

‘Going To Be More Swamp Creatures Than Ever Before’ Sunday on CBS’s “Face The Nation,” Rep. Keith Ellison (D-MN), a candidate for the Democratic National Committee chair, said President-elect Donald Trump was “not draining the swamp.” Instead he claimed that he was “filling it up more and there’s going to be more swamp creatures than ever before.” Ellison said, “Well Donald Trump is already proven where he’s going with the thing. Continue reading “Rep Ellison: Trump Won’t ‘Drain The Swamp,’”

Oil prices climb on expectation of OPEC-led output cut

Oil prices rose as producer cartel OPEC moved closer to an output cut to rein oversupply that has kept prices low for over two years. Traders said that markets were being supported by advancing plans by the Organization of the Petroleum Exporting Countries (OPEC) to cut production in a bid to prop up the market following over two years of low prices as a result of output exceeding demand. Continue reading “Oil prices climb on expectation of OPEC-led output cut”

Japan October exports fall more than expected as strong yen drags

Japan’s exports fell in October for a 13th consecutive month and by more than expected as the strength of the yen and sluggish foreign demand weighed on trade, although current yen weakness could change the outlook. Ministry of Finance (MOF) data showed that exports fell 10.3 percent in the year to October, pulled down by a strong rise in the value of the yen and lower export volumes, much weaker than the expected 8.6 percent drop and September’s 6.9 percent decline. Continue reading “Japan October exports fall more than expected as strong yen drags”

Saudi makes $10.7 billion of delayed payments to private sector: executive quoted

Saudi Arabia’s government has made payments of 40 billion riyals ($10.7 billion) that it owed to private sector companies, the kingdom’s Arab News newspaper quoted a senior construction industry executive as saying. With its oil revenues slashed by low crude prices, the government of the world’s largest oil exporter has cut spending sharply this year and reduced or suspended payments owed to construction firms, medical establishments and even some of the foreign consultants who helped to design its economic reforms. Continue reading “Saudi makes $10.7 billion of delayed payments to private sector: executive quoted”

Trump to be held to his word on Fed independence: Bullard

The U.S. Federal Reserve will hold U.S. President-elect Donald Trump to his word on preserving the central bank’s independence, policymaker James Bullard told a German newspaper on Sunday. “The transition team of the President-elect has said that it wants to protect the independence of the Fed,” Bullard told Germany’s Handelsblatt business daily. Continue reading “Trump to be held to his word on Fed independence: Bullard”

Mike Pompeo Accepts CIA Director Position

Kansas Rep. Mike Pompeo (R.) has accepted President-elect Donald Trump’s offer to become the director of the CIA, two people close to the transition team told the Washington Post. Pompeo, from Wichita, Kansas, was first elected to Congress in 2010 and is a member of the House Intelligence and Benghazi Committees. The Washington Post reported on Friday morning that Pompeo accepted the position.

China state media warn Trump against renouncing free trade deals

Chinese state media warned U.S. President-elect Donald Trump on Saturday against flip-flopping on trade deals in Asia, as Asia-Pacific leaders gathered for a summit amid fears that growing protectionism will stunt global economic growth. During the raucous election campaign, Trump fuelled concerns among many of the United States’ trading partners by pledging to renegotiate trade accords such as the North American Free Trade Agreement (NAFTA) and impose tariffs on imports from countries such as China. Continue reading “China state media warn Trump against renouncing free trade deals”