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    Daily Digest 1/16 – Italy Banks Pare Losses, Germany's Slowdown Fans Fears China Woes Spreading

    by saxplayer00o1

    Wednesday, January 16, 2019, 9:47 AM

Economy

China’s corporate default storm continues to rage at the start of 2019 after a record year

Two weeks into 2019, five Chinese companies are already likely to default on 3.5 billion yuan (US$446.25 million) worth of debt, after a record US$17 billion default wave took the country by storm in 2018 amid a worsening economic slowdown and soaring refinancing costs facing the cash-starved private sector.

Record U.S.-China trade gap may signal slower global growth

Chinese data released overnight show the trade gap between the world's two largest economies was at a record high in 2018, and it may signal a broader global economic slowdown, according to economists.

JPMorgan Debt-Trading Revenue Plunges to Lowest Since Crisis

JPMorgan Chase & Co.’s bond traders just reported their worst quarter in a decade a day after Citigroup Inc. said it was also pummeled by market turmoil.

Gundlach’s warning on ‘ocean of debt’ adds to worries over corporate bonds

Corporate debt outstanding ended 2018 at just over $9 trillion, a 64 percent increase over a decade’s time, according to the Securities Industry and Financial Markets Association. The surge came as the Federal Reserve kept its benchmark interest rate anchored near zero and allowed companies to reward shareholders, do deals and invest in their own operations.

Germany's slowdown fans fears China woes spreading

While Europe's largest economy probably narrowly avoided a recession at the end of last year, according to the country's statistical agency, weaker German growth is ringing alarm bells across the continent, where swaths of companies are bound tightly to the German export machine.

Italy Banks Pare Losses as ECB Bad-Loan Actions Seen as Minimal

Italian Deputy Prime Minister Matteo Salvini hit out at the European Central Bank, accusing it of attacking the country’s financial industry. The head of the euroskeptic League said the “new attack” by the ECB shows once again that the banking union causes instability in Italy’s financial system and hits citizens’ savings, in remarks cited by newswire Ansa.“Transparency is needed to quash the suspicion that the ECB is making political use of its power.”

China signals more stimulus as economic slowdown deepens

Sources told Reuters last week that Beijing was planning to lower its growth target to 6-6.5 percent this year after an expected 6.6 percent in 2018, the slowest pace in 28 years.

Number of no-show airport security screeners soars in shutdown (Thomas R.)

At Hartsfield-Jackson Atlanta International Airport, the world's busiest, some passengers waited more than an hour to get through checkpoints. The airport reported the long lines on its website Monday morning, showing the hour-plus waits at all three checkpoints in the domestic terminal.

FCC Chairman Refuses To Brief Congress On Carriers' Location Data Practices (newsbuoy)

Pallone's letter came in response to an article in Motherboard, which reported last week that some of the largest carriers, including AT&T and T-Mobile, are selling customers' location data to third parties. Motherboard's article detailed how a reporter paid a “bounty hunter” $300 to track a phone's location to a neighborhood in Queens, New York.

Grant Williams – Keynote Speech (thc0655)

Does the financial system need an apex predator to maintain stability, mirroring the hierarchy of the world’s natural ecosystems? Grant Williams, the author of Things That Make You Go Hmmm… and co-founder of Real Vision, believes that gold played a crucial role in the stability of the financial system. Grant’s presentation, Cry Wolf, delivered on 1st October at the 2018 Stansberry Alliance Conference in Las Vegas can be viewed in full on Real Vision’s Think Tank.

Anxious Brits have bought hundreds of food-prepper 'Brexit Boxes' (Thomas R.)

These fears have also led London's Metropolitan Police to advise retailers to hire additional security, as worries over the shortages in goods could lead “to a significant increase in customers,” it said in a statement.

PG&E’s slide into bankruptcy would mark third largest investment-grade default since 1998 (Thomas R.)

Investment-grade defaults are few and far between as the slide to a default is usually drawn out over months, if not years, with companies first dropping out of high-grade bond indexes into sub-investment grade, or junk, before eventually risking nonpayment of their debt obligations.

Though PG&E would bypass junk status altogether in the event of a bankruptcy, its troubles could bring attention to the “fallen angel” phenomenon, when companies slide from investment-grade into sub-investment grade.

The magnetic north pole is messing with your smartphone’s mapping apps (Thomas R.)

The magnetic north pole is wandering away from the Canadian Arctic toward Siberia, and much faster than expected. It’s sped up from about 15 kilometers (9.3 miles) to around 55 kilometers (34 miles) per year, according to Nature. The magnetic north pole is influenced by the movement of liquid iron below Earth’s surface. The World Magnetic Model, which provides a five-year forecast of the planet’s magnetic field, was last set in 2015 and due to be updated in 2020, but these rapid movements mean it’ll have to be updated this year.

Zimbabwe’s president raised fuel prices above $12 a gallon and then jetted off to Russia. Deadly chaos ensued. (Thomas R.)

On Sunday, just before taking a private jet on an official trip to Russia (all of the state-owned airline’s planes are grounded), Mnangagwa announced a 140 percent increase in fuel prices, raising the cost to $12.53 a gallon and making Zimbabwe by far the most expensive place to gas up in the world. For many Zimbabweans, it was the last straw. They took to the streets, but in another echo of the Mugabe era, so did security forces, looters and unidentifiable armed men.

Insect collapse: ‘We are destroying our life support systems’ (debu, redinr08)

The Puerto Rico work is one of just a handful of studies assessing this vital issue, but those that do exist are deeply worrying. Flying insect numbers in Germany’s natural reserves have plunged 75% in just 25 years. The virtual disappearance of birds in an Australian eucalyptus forest was blamed on a lack of insects caused by drought and heat. Lister and his colleague Andrés García also found that insect numbers in a dry forest in Mexico had fallen 80% since the 1980s.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/15/19

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the “3 Es.”

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3 Comments

  • Thu, Jan 17, 2019 - 7:29am

    #1

    sand_puppy

    Status Platinum Member (Offline)

    Joined: Apr 13 2011

    Posts: 2007

    Flat-pack Assembly Tiny Homes

    I came across this Italian designed pre-fab home that is delivered on a flatbed truck and assembled on site in just a few hours.  Fairly inexpensive.   Looks like it is a new product and pre-production orders are being taken. Not sure if it is currently on the market.  Being billed as an off grid alternative home design. 
    3 sizes, the smallest of which is only 280 Sq ft.  Medium is 600 Sq ft. and Large is 900 sq ft.
    It is delivered on a truck.

    Assembled with a crane that unfolds it.

    The finished product, large size.

    Inside can be made comfy.  

    A 2 minute video of the delivery and assembly.

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  • Thu, Jan 17, 2019 - 8:11am

    #2

    saxplayer00o1

    Status Silver Member (Offline)

    Joined: Jul 30 2009

    Posts: 2963

    Central bankers lack the weapons to fight the next big recession

     

    Central bankers lack the weapons to fight the next big recession

    CNN-55 minutes ago
    One decade later, global central banks are only starting to reverse those moves. … The question now is whether central banks waited too long to raise rates to …

    Forget the Trade War. China Is Already in Crisis

    Bloomberg-6 hours ago
    Total debt relative to national output surged to 253 percent in mid-2018, from only … This superpower was on display in 2015 after a stock market bubble burst, …

    ‘Stealth Easing’ Spreads in China Property as Debt Risks Mount

    Bloomberg-18 hours ago
    … household debt blew out. For the nation as a whole, outstanding mortgages grew 823 percent since 2007 to hit 24.9 trillion yuan ($3.7 trillion) in September, …

    BOJ warns Japan faces new risks as population shrinks

    Seymour Tribune-10 hours ago
    TOKYO — Japan faces unforeseen risks in guiding economic policy as its population of about 126 million ages and declines, the governor of its central bank …

    With booming global debt, we’re entering unexplored territory

    Washington Post-19 hours ago
    It reports that in September, worldwide debt totaled $244 trillion, or almost a record 318 percent of world gross domestic product. That figure covers all …

    Leveraged loans echo pre-crisis subprime crash – BoE’s Carney

    Reuters-Jan 16, 2019
    … Governor Mark Carney on Wednesday likened the $2 trillion (£1.55 trillion) leveraged … Debt based on U.S. subprime mortgages was tucked away in “shadow …

    Corporations increasingly seen defaulting on debt – survey

    Reuters-5 hours ago
    NEW YORK, Jan 17 (LPC) – Corporations globally will increasingly default on debt as economies slow while borrowing costs and political strife escalate, …

    Chinese corporate bonds set for another wave of defaults

    Financial Times-2 hours ago
    Ordinarily, this would be welcomed: the first renminbi corporate bond default was as … A record Rmb6.7tn in outstanding corporate debt is set to mature this year …

     

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  • Thu, Jan 17, 2019 - 9:24am

    #3

    newsbuoy

    Status Bronze Member (Offline)

    Joined: Dec 10 2013

    Posts: 206

    Weapons? Just Say Boeing

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