- Rockets Kill in Ukraine as EU Envoy Sees Sanctions Holding. Separatists killed a civilian in a rocket attack in eastern Ukraine, the government said, after the European Union’s envoy to the U.S. said sanctions against Russia will remain in place at least until year-end. Militants also fired on government positions and attacked a power plant in Ukraine’s eastern Luhansk region, the country’s National Security and Defense Council said on Facebook on Wednesday. The clashes further undermine a February cease-fire struck in Minsk, Belarus. They follow fighting near the Sea of Azov port of Mariupol this week that the Organization for Security and Cooperation in Europe called “the most intense” in more than two months.
- Russia Seizes Candy Factory Owned by Ukraine Leader Poroshenko. A Russian court ordered the seizure of a factory belonging to Ukrainian President Petro Poroshenko’s confectionery business Roshen, hampering his plans to sell assets, the company said. Roshen lost the right to manage some properties at the Lipetsk facility south of Moscow until September 13, according to a statement on the company’s website on Tuesday. The court alleges that Roshen illegally claimed 180 million rubles ($3.5 million) in value-added-tax refunds, Roshen said, adding that it will challenge the ruling. Anna Fadeeva, a spokeswoman for the Basmanny district court in Moscow, didn’t answer repeated phone calls for comment.
- German Bunds Are Tanking After Big Investors Say to Get Out. (video) Good news for Bill Gross. Euro-area government bonds are falling out of favor. Top money managers are turning against the securities after yields dropped to unprecedented lows across the region. Emerging signs of inflation are dimming demand. And investors failed to show up in sufficient numbers for Germany’s debt office to meet its sales goal at Wednesday’s auction of five-year notes.
- BlackRock(BLK) Predicts a Taper Tantrum Redux in Emerging Markets. The emerging-market swoon touched off by the so-called taper tantrum two years ago is destined to repeat itself, BlackRock Inc. says. When the Federal Reserve raises interest rates, the selloff will be every bit as painful as the rout that ensued in May 2013, when then-Chairman Ben S. Bernanke suggested the central bank would soon wind down its bond-buying program, according to the world’s largest money manager. Developing-nation debt sank as much 10 percent in the wake of the comments while currencies from India’s rupee to Turkey’s lira plunged.
- Europe Stocks Post Biggest Slump of 2015 as Mining Shares Slide. European stocks tumbled the most since December, with exporters deepening a drop amid a rally in the euro. Continental AG and Volkswagen AG slipped at least 4 percent, sending carmakers to the worst drop among industry groups. Germany’s DAX Index plunged 3.2 percent, the most in a year and among the biggest retreats in western-European markets. Antofagasta Plc and Outokumpu Oyj slid after reporting quarterly results, pushing miners lower. The Stoxx Europe 600 Index fell 2.2 percent to 397.3 at the close of trading, trimming gains this year to 16 percent.
- Bernanke Joins Pimco; Second Consulting Job in Two Weeks. (video) Former Federal Reserve Chairman Ben S. Bernanke is joining Pacific Investment Management Co. as a senior adviser, his second consulting agreement with a top money manager in as many weeks. Bernanke will contribute his economic expertise to the firm’s investment process, the Newport Beach, California-based firm said Wednesday. Bernanke previously spoke at Pimco’s client conference in March and advised on the last two of its quarterly economic forums that guide investment strategy.
- It’s Always a ‘Great Quarter, Guys!’ If You’re an Equity Analyst. From 2007 through 2014, analysts told companies “Great quarter, guys,” on 1,265 of the calls. Bloomberg tracked how many companies were told what a fine job they did, then compared it to the Standard & Poor’s 500 Index for the quarter when the results were reported. While it was very often a great quarter, guys, it wasn't always as great in the broader market.
- America’s Student Debt Pain Threatening a Corner of Bond Market. America’s mounting student-debt problem is threatening to create trouble in part of a $170 billion bond market tied to government-guaranteed loans. With borrowers increasingly struggling to repay their student loans, Moody’s Investors Service is warning it may take investors longer than promised to get their money back. The credit grader said this month it may lower rankings on $3 billion of top-rated debt as investors face the threat of slowing principal payments or even receiving no interest.
- Fed: All calendar references removed. Following through on indications in March, the Federal Open Market Committee on Wednesday offered no changes to its zero interest rate policy. Not only did it not hike rates, it also removed all hints for what may lie ahead. Calendar references were deleted completely from the post-meeting statement.
Business Insider:
Telegraph:
- 'We won't surrender': Firebrand Greek minister risks fresh schism with Europe. Syriza's radical Leftist energy chief warns Grexit will land a 'mortal blow' to monetary union.
- China Larger Steel Makers 1Q Sales Fall 14.5% Y/Y. Large and medium-sized Chinese steel makers 1Q sales fall to 762.9b yuan, citing data from China Iron and Steel Association. Steel makers' losses from main business were more than 11b yuan in 1Q because demand and prices fell.
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