Wednesday, January 04, 2017

Today's Headlines

Bloomberg:
  • China Bank Sells More of Riskiest Wealth Management Products. A Chinese bank preparing to list in Hong Kong said that it had ramped up sales of its riskiest wealth management products as investors sought higher returns. Guangzhou Rural Commercial Bank Co.’s preliminary listing document gave the latest insight into the nation’s 26.3 trillion yuan ($3.8 trillion) market for the investment products. The bank in Guangdong province sold 93 billion yuan of “level 5” products -- the highest of its five risk categories -- in the nine months ended September, according to its filing to Hong Kong’s stock exchange Wednesday. That amounted to a third of the bank’s sales of the products, up from 6 percent in 2015.
  • Eurasia Group's Medeiros Warns of China on the Edge. (video)
  • Tencent Shares Losing $35 Billion Shows Depth of China Pessimism. For a clue on how bearish foreign investors have become about Chinese stocks, take a look at Tencent Holdings Ltd. The Shenzhen-based technology giant has tumbled 13 percent from its September record, wiping $35 billion off the value of its shares, as overseas funds pulled money from Hong Kong and Chinese equities. The company’s large weighting on the Hang Seng Index -- at 10 percent -- helped make Hong Kong’s benchmark stock gauge one of the world’s worst performers last quarter.
  • Mexico City Goes On Sale With Big Macs at Half Sao Paulo's Price. Trump-Induced Peso Plunge Puts Big Mac at $2.
  • European Stocks Halt 3-Day Advance After Entering Bull Market. European stocks were little changed, halting a new-year rally that was boosted by industries seen as benefiting the most from stronger economic growth. The Stoxx Europe 600 Index fell 0.1 percent at the close, paring an intraday slide of as much as 0.5 percent. Commodity producers were among the worst performers, after helping propel the benchmark into a bull market on Tuesday. Next Plc dragged retailers lower, down 14 percent after lowering its annual profit forecast and predicting a difficult year ahead.
  • Top Iron Ore Forecaster RBC Says Prices Will Pull Back This Year. Iron ore prices are primed for a retreat this year after surging in 2016, according to RBC Capital Markets, the most accurate forecaster for the commodity in the final quarter of last year. “We believe iron ore prices are not sustainable at current levels and expect a pullback in 2017,” RBC analysts wrote in a report received on Wednesday. The firm placed first in predicting prices, according to data compiled by Bloomberg.
  • Harvard Academic Sees Debt Rout Worse Than 1994 ‘Bond Massacre’. If you thought you had already read the gloomiest possible prognosis for bonds, wait until you read this one. Paul Schmelzing, a PhD candidate at Harvard University and a visiting scholar at the Bank of England, said if the latest bond market bubble bursts, it will be worse than in 1994 when global government bonds suffered the biggest annual loss on record.
  • S&P 500 Bull Market Is Getting Old, UBS Technical Analysts Warn. (video)
Zero Hedge:

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