Tag: Wealth

November 16, 2017

If you were only to read one thing…

FT – S&P says Venezuela is in default on sovereign debt – Edward White and Hudson Lockett 11/13

  • “Standard & Poor’s has declared that Venezuela is in default after it missed two interest payments and following a meeting in Caracas that left investors with little notion of how a default on its $60bn debt pile can be avoided.”
  • “S&P, which is the first rating agency to say the country is in default, said on Tuesday that Caracas had failed to make $200m in coupon payments for global bonds due in 2019 and 2024 within the 30-calendar-day grace period.”
  • “The agency said it had downgraded the issue ratings on those bonds to D from CC and cut the country’s long-term foreign currency sovereign credit rating to selective default, or SD, from CC.”
  • “’Our CreditWatch negative reflects our opinion that there is a one-in-two chance that Venezuela could default again within the next three months,’ said S&P.”

Perspective

Bloomberg – Trump Is Shattering His Own Tweet Records – Brandon Kochkodin 11/13

FT – India’s Ambanis top Asia family rich list – Kiran Stacey 11/14

WSJ – Daily Shot: Credit Suisse – Global Wealth Report 11-14

Worthy Insights / Opinion Pieces / Advice

Bloomberg – Yale’s Swensen Sees Low Volatility as ‘Profoundly Troubling’ – Janet Lorin and Christine Harper 11/14

Bloomberg Businessweek – The Global Economy Looks Good for 2018 (Unless Somebody Does Something Dumb) – Peter Coy 11/2

Markets / Economy

WSJ – AB InBev Switches U.S. Boss as  It Struggles With Sales Slump – Jennifer Maloney 11/13

CNBC – Millennials lose taste for dining out, get blamed for puzzling restaurant trend – Patti Domm 11/14

WSJ – Small IPOs Are Dying. That’s Good – James Mackintosh 11/13

Real Estate

Investment News – Cole Capital, once part of a company coveted by Nicholas Schorsch, is being sold – Bruce Kelly 11/13

Energy

iea – World Energy Outlook 2017 – Global shifts in the energy system 11/14

Finance

WSJ – Daily Shot: Bitcoin 11/13

  • “Bitcoin has bounced off the lows but remains volatile.”

Europe

FT – Sweden’s big banks call an end to decades-long housing boom – Martin Arnold and Richard Milne 11/13

  • “Sweden’s decades-long housing market boom is over, two of the country’s bank bosses admit, while trying to reassure investors that their institutions will not suffer a painful hangover of defaults even if the cheap mortgage-fueled party is finished.”
  • “Swedish house prices have been red hot, rising almost 6% a year on average since 2007, while a surge in household indebtedness from 1.2 to 1.6 times disposable income has attracted intense scrutiny from regulators.”
  • “Swedish house prices fell 1.5% in September, the first decline for several years, reflecting the impact of measures introduced by regulators to constrain riskier mortgage lending as well as a recent increase in the supply of new homes.”

Japan

WSJ – Daily Shot: Bank of Japan Balance Sheet as % of GDP 11/14

South America

FT – Russia agrees to restructure $3.2bn of Venezuelan debt held by Moscow – Henry Foy 11/15

WSJ – The Class of 1994, Venezuela’s Golden Generation, Is Fleeing the Country – Ryan Dube 11/14

  • More than “…two million…Venezuelans…have left the country since 1999, the year Mr. Chavez gained power, according to Tomas Paez, a Venezuelan immigration expert. That exodus is roughly twice the number who fled Cuba in the two decades after the revolution there, and is set to worsen.”

WSJ – Default in Venezuela: What’s Next – Julie Wernau 11/14

  • “Venezuela has been falling behind on debt payments in its prolonged economic crisis. Some payments have come late. Others haven’t arrived at all. The South American country has said it wants to restructure its remaining debt, which analysts put as high as $150 billion. But observers say Venezuela’s debt crisis could be one of the most complicated in history.”
  • “Cash-strapped Venezuela and its state oil company, Petróleos de Venezuela SA, have been putting off making interest payments on their debt, taking advantage of 30-day grace periods to save money.”

FT – Venezuela: what happens now after official default – Robin Wigglesworth 11/14

  • “The most likely outcome, investors and analysts say, is a protracted period of financial limbo with a restructuring precluded by US sanctions and Venezuela facing a barrage of lawsuits that will tie it up for years to come.”

August 9, 2017

Perspective

Howmuch.net – The Richest Person in Every State 2017 – Raul 8/7

Bloomberg Businessweek – Japan’s Doomsday Preppers Are Buying $19,000 Bomb Shelters – Justin Mattingly 7/25

Worthy Insights / Opinion Pieces / Advice

Bloomberg – Gundlach, Wary of Pricey Market, Sets Cap on DoubleLine Size – Erik Schatzker 8/7

Real Estate

WSJ – Daily Shot: Goldman Sachs – Notable Announced Retail Store Closures 2017 8/8

China

FT – Beijing hails success in battle against capital flight – Gabriel Wildau 8/7

  • “China’s capital flow turned positive in the first half of 2017, a reversal from unprecedented outflows during the previous two years that sparked worries over financial stability.”
  • “Data released on Monday indicate that Beijing’s support for the renminbi and a crackdown on foreign deal making and other outflow channels have largely succeeded in curtailing capital flight.”
  • “China ran a $16bn surplus over the first half of this year, excluding central bank intervention, compared with a $417bn deficit in 2016, balance of payments data showed. The figures also showed that China added to its foreign exchange reserves on a valuation-adjusted basis in the second quarter for the first time since early 2014.”
  • “‘Hot money’ — short-term money movements viewed as a gauge of investor sentiment toward Chinese assets — continues to flow out of the country, albeit more slowly, according to FT estimates based on official data.”
  • “Hot money outflow was $126bn in the first half on a net basis, well behind the $891bn full-year pace for 2016. The FT uses a broad definition of the term, treating all money flows not related to goods trade or foreign direct investment as hot money.”
  • “That suggests investors are eager to take money out of China if they can skirt capital controls, despite recent tightening. Indeed, a Reuters poll of 60 forex analysts in late July showed that they expect the renminbi to erase most of this year’s gains over the next 12 months.”
  • “In a sign that the government remains vigilant despite the improvements, regulators have imposed new measures in recent weeks to prevent capital flight.”
  • “Last week, the foreign exchange regulator named and shamed nine banks for violating forex rules. The agency is also requiring lenders to issue daily reports on all foreign bank card purchases by customers worth more than Rmb1,000 ($149) beginning later this month.”

WSJ – China Gives Up Global Role for a Stronger Yuan – Nathaniel Taplin 8/7

  • “The yuan, which as recently as 2015 had overtaken the Japanese yen as the fourth most popular currency for global payments, now clocks in at No. 6, according to international-transaction service provider Swift, below the Canadian dollar and barely above the Swiss franc. Only 1.98% of international payments tracked by Swift were yuan-denominated in June 2017, down from 2.09% two years ago.”
  • “Given the scale of the bleeding in 2015 and 2016, China’s leaders likely had little choice but to close the drawbridge.”