Wednesday, November 15, 2017

Today's Headlines

Bloomberg:
  • China Sustainability Drive Gives Bulls Hope, Morgan Stanley Says. Morgan Stanley’s top China analysts are "still bullish" on the economy, citing progress on defusing the debt bomb and the surprising speed of its shift to a high-income economy. Economists, analysts and strategists said in a 61-page report that they expect Beijing to tame borrowing and achieve a "near-stabilization" of its debt-to-gross domestic product ratio by late 2019. Incomes are expected to cross the $13,700 threshold to attain high-income status by 2025, two years earlier than they’d initially forecast. President Xi Jinping put new emphasis on the sustainability, quality and efficiency of economic growth at a twice-a-decade Communist Party conclave last month, but risks remain.
  • The High-Yield Selloff Has Largely Passed by China. The slump in high-yield debt hasn’t pulled the plug on Chinese property bonds. While last week saw more than $2 billion pulled from global exchange-traded funds tracking speculative-grade bonds, the country that was warned of over-leveraging by its own central bank and the International Monetary Fund has escaped relatively unscathed.
  • Greenlight's Einhorn Says Issues That Caused the Crisis Are Not Solved. Hedge-fund manager David Einhorn said the problems that caused the global financial crisis a decade ago still haven’t been resolved. “Have we learned our lesson? It depends what the lesson was,” Einhorn, the co-founder of New York-based Greenlight Capital LLC, said at the Oxford Union in England on Wednesday. Einhorn said he identified “three, four or five obvious problems” at the time of the crisis. These included the structural issues that were exposed in the market; the fact that institutions that could have gone under were deemed too big to fail; and the structured-credit market, where risks were not properly evaluated.
Wall Street Journal:
  • Impeach Tom Steyer. The ultraliberal billionaire is the enemy of every cause he promotes.
Zero Hedge:

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