Thursday, August 08, 2013

Today's Headlines

Bloomberg:
  • Kuroda Warns Against Forgoing Japan’s Planned Sales-Tax Increase. Bank of Japan Governor Haruhiko Kuroda warned against a delay in the nation’s planned sales-tax increase, while pledging that the central bank will take action should its two-year, 2 percent inflation target be endangered. Budget consolidation is vital, and a loss of confidence in Japan’s fiscal sustainability could lead to higher government bond yields, undermining BOJ monetary stimulus, Kuroda told reporters today in Tokyo. He said he hopes that Prime Minister Shinzo Abe’s government will proceed with fiscal tightening.
  • ABS: Subprime Auto Underwriting in 'Decay," Citi Says. Subprime auto ABS credit underwriting has been slackening while spread differentials to prime have been tightening, Citi analysts led by Mary Kane write. Avg FICO for on-the-run subprime auto ABS "deteriorated significantly" to 578; was 587 in pre-crisis 2006. 2Y, 3Y class spread pickups for on-the-run subprime auto names recently widened from roughly 14 bps and 45 bps, to 23 bps and 55 bps, respectively.
  • Colorado Fracking Stresses Regulators as Permit Bids Soar. New rules governing oil and gas extraction in Colorado may increase the review period for permits and add to a backlog of well applications as energy exploration proceeds at a pace to eclipse last year’s record. The new regulations by the Colorado Oil and Gas Conservation Commission, which went into effect Aug. 1, would require wells to be at least 500 feet (152 meters) from the nearest occupied building and mandate pre-drilling notice for nearby landowners and measures to reduce noise, odors, dust and light.
Wall Street Journal:
MarketWatch:
CNBC:
Zero Hedge:
Business Insider:
Reuters:
  • McDonald's(MCD) July sales just beat, helped by Monopoly, McWraps. McDonald's Corp on Thursday reported slightly higher-than-expected July sales at established restaurants after the early return of its popular Monopoly promotion and new premium wrap sandwiches helped bring U.S. gains that offset weakness in Europe and Asia. 
  • Canadian Solar sees lower shipments as European sales slump. Canadian Solar Inc forecast lower shipments and margins for the current quarter as its market share shrinks in the European Union, the biggest solar market where the EU plans to cap imports of cheap solar panels made in China. Shares of the company, most of whose manufacturing operations are in China, were down 7 percent at $13.26 on the Nasdaq on Wednesday.
Financial Times:
  • Brazil calls for IMF eurozone rescue programmes revision. Brazil calls for IMF eurozone rescue programmes revision. Brazil has called for International Monetary Fund-backed rescue programmes for southern eurozone countries, particularly Greece, to be reviewed to make them more economically sustainable. The call came from finance minister Guido Mantega who was seeking to explain Brazil’s stance on Greece’s rescue programme after an apparent difference of opinion last week between Brasília and its IMF representative, Paulo Nogueira Batista.
Telegraph:
The Economic Times:
  • US Fed's Richard Fisher says France biggest euro zone worry. Dallas Fed President Richard Fisher said France worried him more than any other euro zone country and the risks to the French economy must not be underestimated, in an interview published in German paper Handelsblatt on Thursday. "France worries me, more than any other country. Against the backdrop of European history a strong France is important. The risks to economic development there must not be underestimated. The world is watching carefully," he said.
Xinhua:
  • China Properly, Effectively Enacts Govt-Spending Cuts. Violations of regulation proposed by Premier Li Keqiang to halt construction of new govt buildings, cut spending on govt receptions, vehicles, banquets, haven't been eliminated, citing statement from government. State Council to work with relevant authorities to step up supervision, investigate problems. No new workers to be added to overstaffed govt depts

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