Tuesday, April 12, 2016

Today's Headlines

Posted by Gary .....at 2:48 PM
Bloomberg:  
  • Rousseff Accuses Brazil's Vice President of Coup and Treason. Brazil’s President Dilma Rousseff accused her vice president of attempting to illegally overthrow the government, underscoring the depths of the bitterness that are convulsing the country days before an impeachment vote. Without naming him directly, Rousseff said in a speech on Tuesday that Vice President Michel Temer was guilty of a "betrayal of me and of democracy." The comments came a day after the media published a recording where the vice president discussed the outlines of a Temer administration in the event she loses the impeachment vote. "A statement was distributed in which one of the chiefs of the conspiracy pretends to be president of the republic," Rousseff said in reference to Temer. "There can no longer be any doubt of my claims that there is a coup under way." 
  • Crisis-Hit Brazil Threatened by $89 Billion State Debt Time Bomb. Amid the worst political crisis in decades, Brazil’s federal government also faces a spiraling state debt crisis that could cost it as much as $89 billion in lost revenue. Brazilian states, hit by a two-year recession that has depressed tax revenues, are seeking to apply simple rather than compound interest on debt owed to the federal government. The change could cost the Treasury 313 billion reais, according to Finance Ministry calculations.
  • Yen Connection Bruises Hong Kong's Retailers as Stocks Plunge. Times are tough for Hong Kong retailers. And even worse for those with links to Japan. Shares of CEC International Holdings Ltd. which runs the 759 chain of stores, have tumbled 32 percent this year, compared with a 1.7 percent retreat in the MSCI Hong Kong Index. International Housewares Retail Co. and Aeon Stores Hong Kong Co. -- both of which sell Japanese products -- have dropped at least 6 percent.
  • Bill Gross Says China Growing 6% Is Among 'Investor Delusions'. Billionaire bond manager Bill Gross says estimates that China’s economy is growing at 6 percent a year are among the “investor delusions that one day will be exposed to fresh air.” Gross made the comment in a tweet after the International Monetary Fund raised its outlook for growth in China to 6.5 percent this year and 6.2 percent in 2017, an increase of 0.2 percentage points, according to a report Tuesday.
  • LVMH Leads Luxury Share Slide as Terror Attacks Damp Tourism. LVMH dragged luxury stocks lower after the maker of Celine handbags reported weaker-than-expected revenue growth, dealing a fresh blow to industry sentiment. LVMH shares fell as much as 3.8 percent in Paris, the most since Feb. 11. Gucci-owner Kering SA declined 2.2 percent, while Burberry Group Plc dropped 2.9 percent in London.
  • European Companies Have Cash But Won't Spend It. Analysts are growing skeptical of Mario Draghi’s efforts to prod companies to spend on growth. They’re cutting estimates for capital expenditures in Europe at the fastest rate since the financial crisis as chief executive officers shy away from reinvesting in their own businesses and instead bulk up balance sheets or tempt shareholders with acquisitions and stock buybacks. While analysts are still calling for a 2.6 percent increase in capex from last year, the 19 million euros ($22 million) they predict each Stoxx Europe 600 Index company will spend on average in 2016 is the most bearish forecast in six years.
  • European Shares Climb as Miners Gain, Investors Assess Earnings. European stocks rose for a third day in volatile trading, with commodity and energy producers surging on rising prices, while investors looked to earnings for indications of the health of euro-area companies. Anglo American Plc jumped 9.2 percent, pushing miners to the best performance of the 19 industry groups on the Stoxx Europe 600 Index, after its De Beers unit forecast stronger diamond sales, and metals advanced. Energy companies gained as oil increased. LVMH Moet Hennessy Louis Vuitton SE added 1.5 percent, reversing earlier declines sparked by worse-than-forecast sales. The Stoxx 600 rose 0.5 percent to 334.64 at the close of trading, after swinging between gains of as much as 0.6 percent and losses of 0.7 percent.
  • Grain Glut Gets Bigger With China Demand Falling, Rising Output. The world grain market has been awash in supplies for years now, , and it’s starting to feel like there’s going to be no end to the glut after the U.S. Department of Agriculture published its latest report Tuesday. The USDA estimated Tuesday that global corn and wheat stockpiles are going to be even bigger than analysts were predicting. Futures for both commodities pared gains after the report.
  • Looking for Credit Bubbles in All Wrong Places. Living in a bubble is great. You’re safe and comfortable and able to ignore imminent danger. The problem is it never lasts. Eventually your protective shield pops and bad stuff comes flooding in.UBS analysts said Monday that there’s a bubble in the lowest-rated corporate bond values.
Wall Street Journal:
Fox News:
  • Fresh document trove sheds light on Clinton-Trump ties. (video) The release Tuesday by the National Archives of a fresh trove of documents detailing the Clinton administration's dealings with billionaire Donald Trump could become the latest fuel for flame-throwing in an already incendiary 2016 presidential race.
CNBC:
Zero Hedge:
The Telegraph:
Nikkei:
  • Nomura to Cut Up to 1,000 Jobs in Europe, U.S. Co. to mainly cut jobs in Europe, U.S. Job cut decision due to fear of widening losses from operations outside Japan on back of global stock price decline. Cuts will include analysts, traders and administrative staff. Co. has 2,500 workers in Americas and 3,400 in Europe as of end-Dec.

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