Wednesday, May 11, 2016

Today's Headlines

  • Italy's Padoan `Very Worried' Partners Could Copy Brexit. Italian Finance Minister Pier Carlo Padoan said he was “very worried” that a vote for Britain to leave the European Union could inspire other members of the bloc to abandon it too, amid a surge of populist anti-Europe movements. “I am very worried about Brexit, not only for the immediate damage that can come to the U.K. economy and the European economy, but also from the fact that this could be taken as an example of leaving Europe by other countries,” Padoan said on Wednesday in an interview with Bloomberg Television’s Francine Lacqua in London. “Let’s not forget we are witnessing a widespread discontent about European values and strategies, so Brexit could lead the way to more painful disentanglement of Europe,” Padoan said.
  • David Goldman: China Debt Faces 'Nasty Reorganization'. (video)
  • Chile Peso Falls Most in Emerging Markets as Foreigners Go Short.
  • European Stocks Retreat, Stoxx 600 Loses 0.5%. (video) The Chilean peso weakened the most among emerging-market currencies as international investors offload their positions on the currency following weak data from China. Foreign investors have increased short positions in the Chilean peso forwards market by $1.2 billion in the past week while local investors, mostly pension funds hedging their currency exposure, have refrained from adding to their long position in the currency. China on Monday reported that imports unexpectedly fell 11 percent in April from a year earlier, undermining the outlook for the price of copper, Chile’s principal export.
  • Macy's(M) Dimmer Outlook Sends Retail, Apparel Stocks Tumbling. (video) A glum outlook from Macy’s Inc. renewed concerns about the broader retail industry, contributing to a stock rout for consumer companies such as Wal-Mart Stores Inc., Michael Kors Holdings Ltd. and Ross Stores Inc. on Wednesday. Macy’s cut its profit forecast for this year and posted first-quarter revenue that missed analysts’ estimates -- a sign that slow foot traffic at shopping malls continues to take a toll on the largest U.S. department-store company. Shares of Macy’s plunged as much as 14 percent to $31.91 in New York, their worst intraday decline in six months. And it wasn’t alone. Wal-Mart, the largest U.S. retailer, slid as much as 4.6 percent to $65.61. Target Corp. fell as much as 5 percent to $76.01, its biggest intraday drop since November.
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