Monday, January 18, 2016

Tuesday Watch

Posted by Gary .....at 10:27 PM
Today's Headlines
Bloomberg:  
  • Iran Captured U.S. Sailors at Gunpoint, Defense Department Finds. Ten U.S. sailors detained by Iran last week were taken at gunpoint after straying into Iranian waters, the Defense Department said in the first formal account of the confrontation in the Persian Gulf. “Armed Iranian military personnel” boarded the U.S. boats while others “conducted armed over-watch of the boats with mounted machine guns,” U.S. Central Command said in the preliminary report issued Monday. It describes an incident on Jan. 12 that began as a tense confrontation but ended quietly, with no indications the sailors were physically harmed. Sailors on two Riverine Command Boats traveling from Kuwait to Bahrain “deviated from their planned course” down the middle of the Persian Gulf, according to the report, which said the reason remains under investigation. The boats stopped for troubleshooting after indications that the diesel engine on one of the vessels had a mechanical problem. “The stop occurred in Iranian territorial waters, although it’s not clear the crew was aware of their exact location.”
  • Iran Gives Order to Boost Crude Oil Output Amid Global Glut. (video) Iran’s oil ministry issued an order to increase production by 500,000 barrels a day as the country moved ahead with plans to add supply to a glutted market even at the risk of contributing to a price collapse. The increase is possible now that Iran is unfettered by sanctions on its crude exports, the ministry’s news agency Shana reported Monday, citing comments by Roknoddin Javadi, managing director of state-run National Iranian Oil Co. If Iran doesn’t boost production, neighboring countries will pump more oil within six to 12 months and take away its market share, Javadi said. “Does Iran have the right to do so? Yes, of course,” United Arab Emirates Energy Minister Suhail Al Mazrouei said Monday in Abu Dhabi. “Is this going to help the situation? No.”
  • China’s GDP Misses Estimates as Stimulus Struggles for Traction. China’s economy slowed in December, capping the weakest quarter of growth since the 2009 global recession, as the Communist leadership struggles to manage a transition to consumer-led expansion. Industrial production, retail sales and fixed-asset investment all slowed at the end of the year, while gross domestic product rose 6.8 percent in the fourth quarter from the same period of 2014. GDP increased 6.9 percent -- the least since 1990 -- for the full year, in line with the government’s target of about 7 percent.
  • Yuan Bears Stick to Their Guns After PBOC Attacks on All Fronts. China is attacking yuan bears on multiple fronts, forcing banks to hold more of the currency, driving up offshore interest rates, issuing verbal warnings and undertaking intervention that cut reserves by $108 billion last month alone. That has only emboldened some forecasters.
  • Asia Junk Bonds One Cent Away From 2012 Low Amid Fund Flight. Asia’s junk-rated dollar bonds are trading within a cent of a four-year low after a global market selloff this month left one in every three notes with losses. Average prices of company debentures in the region fell to 93.55 cents on the dollar on Jan. 15, following a seven-day slide to the least since Sept. 30, Bank of America Merrill Lynch’s Asian Dollar High Yield Corporate Index shows. A one-cent decline in the price will drag the gauge to a level not seen since January 2012. Investor sentiment toward Asia is weakening as economic growth in China slows and all 24 emerging-market currencies tracked by Bloomberg drop against the dollar. The regional slump is raising concern that more Asian companies will struggle to service higher levels of leverage just as the Federal Reserve has started raising interest rates from near-zero.
  • Merkel's Refugee Showdown Nears Amid Party Revolt Over Borders. Faced with the biggest challenge of her decade in power, Angela Merkel is poised for a week that may determine the outcome of her quest to keep Germany open to refugees. The chancellor ran straight into the gathering storm over her policy on Monday, chairing a meeting in Berlin of her Christian Democratic Union’s national executive amid open revolt within the party ranks. Party leaders backed changing German asylum rules to make it easier to expel citizens of Algeria, Morocco and Tunisia. Merkel then heads to the Alps for mid-week talks with her rebellious Bavarian allies and ends the week by hosting a summit with Turkish government leaders, in whose hands she has placed much of the responsibility for stemming the influx of migrants to Europe.
  • Paschi, UniCredit Among Banks Pressed for Bad-Loan Data by ECB. Banca Monte dei Paschi di Siena SpA, UniCredit SpA and Banca Popolare dell’Emilia Romagna SC are among Italian lenders being asked by the European Central Bank to submit data on their non-performing loans as examiners increase scrutiny of credit quality in the region. The review is being conducted by the central bank’s oversight arm, the Single Supervisory Mechanism, and will be carried out in coming weeks, the companies said separately in statements on Monday. Banco Popolare SC, Banca Popolare di Milano Scarl and Banca Carige SpA also disclosed that they are involved in the assessment. Banks “will be subject to an assessment of NPL strategy, governance, processes and methodology, activity currently underway at European level,” Popolare dell’Emilia Romagna wrote in its statement.
  • Credit Agricole Eyes Capital Boost by Selling Bank Stakes. Credit Agricole SA, the French lender seeking ways to bolster capital, is exploring the sale of its stakes in more than three dozen regional banks in a deal that could be valued at about 17 billion euros ($19 billion), people familiar with the matter said. Under the plan, each of the regional lenders would buy back the 25 percent stakes currently owned by Credit Agricole, raising proceeds for its capital buffers, said the people, who asked not to be identified because deliberations are private. The French lender may be ready to announce a deal in March, though it is discussing various options and hasn’t made a final decision, the people said.
  • Casino Shares, Bonds Plumb Lows as S&P May Downgrade to Junk. Casino Guichard-Perrachon shares and bonds slumped after Standard & Poor’s said it’s considering cutting the French grocer’s debt rating to junk, citing concerns about leverage and a poor environment in Brazil and Asia. S&P said Saturday Casino’s BBB- long-term rating is on negative watch as its profitability will continue to be fairly weak for an extended period of time and its debt levels, primarily located at the French operations, are too high. The rating may be cut as much as two levels. S&P had confirmed Casino’s rating in December, a view which changed after the grocer on Thursday lowered its 2015 earnings expectations.
  • Portugal Spread at 6-Month High as BlackRock Says Investors Wary. The political turmoil and challenges faced by the banking sector in Portugal have undermined confidence in the nation’s bonds, according to BlackRock Inc.’s deputy chief investment officer for fundamental fixed income, Scott Thiel. The extra yield that Portuguese 10-year government bonds offer over benchmark German securities widened to 2.25 percentage points, the most based on closing-price data since July. Portugal Prime Minister Antonio Costa said Friday he was concerned by the central bank’s treatment of Novo Banco SA bondholders after some were forced to take losses on their investments, adding that it could harm confidence in the nation’s financial system.
  • Brazil Analysts Forecast 7% Inflation in 2016 as Real Weakens. Brazil’s consumer prices will rise 7 percent this year as the currency continues to depreciate, increasing pressure on the central bank to resume monetary tightening this week. Economists surveyed by the central bank raised their 2016 inflation forecast for the third straight week and expect consumer price increases to exceed the 6.5 percent upper limit of the target range for a second straight year. The real, which lost the most among all major currencies last year, is forecast to further devalue to 4.25 per U.S. dollar by the end of this year and to 4.3 per dollar by the end-2017. The real gained 0.4 percent to 4.0338 per dollar at 9:20 a.m. local time. 
  • Italian Banks Lead European Decliners on Bad Loans Concerns. Italian banks dropped in Milan, leading declines in the European Stoxx 600 Banks Index, reflecting investor concerns about lenders’ levels of bad debt as the European Central Bank seeks to toughen scrutiny of the region’s non-performing loans. Banca Monte dei Paschi di Siena SpA, bailed out twice since 2009, slumped as much as 17 percent, and was down 12 percent to 79 cents at 5:08 p.m. in  Milan. Unione di Banche Italiane SpA fell 6.3 percent, while Banco Popolare SC declined 5.3 percent. Europe’s 46-member Stoxx 600 Banks Index decreased 1.5 percent, bringing losses this year to 14 percent. “Italian banks’ asset quality is back in the spotlight,” said Wolfram Mrowetz, chairman of Alisei SIM, a Milan brokerage. “A delay in Italy’s bad-bank plan, amid quarrels between Prime Minister Matteo Renzi and European Commissioner Jean-Claude Juncker, and ECB challenges on the high level of non-performing loans are hurting stock.”
  • Davos Robot Eclipses Davos Man as Gloom Descends on World Elite. “If some of the predictions about tech and employment come true, then we should all be worried,” said Alan Winfield, a professor specializing in robotics at the University of the West of England, who will be speaking in Davos. “There need to be solutions.”
  • Asian Stocks Fluctuate as Traders Weigh China GDP; Yen Weakens. Asian equities fluctuated near a three-year low as traders weighed weaker-than-expected Chinese economic data against prospects for increased stimulus. The yen declined, while oil traded near a 12-year low. The MSCI Asia Pacific Index slipped 0.1 percent at 10:20 a.m. in Hong Kong. The yuan fell 0.1 percent in offshore trading, while Japan’s currency dropped 0.3 percent. Oil traded around $29 a barrel in New York as Iran issued an order to boost production in an already oversupplied market.
  • Iron Ore Holdings at China Ports Set to Top 100 Million Tons. The holdings will probably surge as low-cost supplies rise and steel mills rein in output before and during a nationwide, week-long holiday next month, according to China Merchants Futures Co. Both Citigroup Inc. and Australia & New Zealand Banking Group Ltd. say the threshold for the stockpiles is set to be exceeded, flagging the risk that it’ll add to pressure for prices to drop. “The increase will be driven by higher shipments from Australia and Brazil, especially in the final months of 2015, against a seasonally weak period for China demand,” Zhao Chaoyue, an analyst at China Merchants Futures, said by phone on Monday. Zhao predicted the target may be breached before the Lunar New Year break, which starts Feb. 8. The inventories rose 1.7 percent to 94.55 million tons last week, an eight-month high, according to data from Shanghai Steelhome Information Technology Co. Holdings -- which have expanded for the past four months to climb above their five-year average of 92.7 million tons -- last topped the 100 million ton mark in March.
Wall Street Journal:
  • Welcome to the Crisis Economy, Where Tumult Reigns. Be it geopolitical tension, terror threats or faltering markets, there always seems to be something testing growth. Myriad sources of anxiety are roiling global financial markets and political capitals: a weakening Chinese economy; collapsing oil prices; escalating tension in the Middle East that has spawned a refugee crisis in Europe; the possibility of financial dislocation as U.S. monetary policy tightens.
  • Normalizing Iran. Why are liberals campaigning to make this most illiberal regime acceptable? In Syria, Bashar Assad is trying to bring his enemies to heel by blocking humanitarian convoys to desperate civilians living in besieged towns. The policy is called “starve or kneel,” and it is openly supported by Hezbollah and tacitly by Iran, which has deployed its elite Quds Force to aid Mr. Assad’s war effort.
Fox News:
  • Clinton embraces Obama in final stretch, fueling GOP claims of seeking '3rd term'. (video) If you like Barack Obama, you’ll love Hillary Clinton. That seems to be the Democratic front-runner’s pitch as she charges into the final stretch to the Iowa caucuses, embracing the administration’s agenda and casting rival Bernie Sanders as a threat to that legacy – a strategy on full display at Sunday’s primary debate.
Zero Hedge:
  • Europe too relaxed about China's slowdown - ECB's Rimsevics. There is too much complacency about the prospect of contagion from the Chinese slowdown, European Central Bank policy maker Ilmars Rimsevics told Latvian Radio on Monday. "China is the world's second largest economy and, in fact, the effect will be on all the countries (of Europe)," Rimsevics, who is also the central bank governor of Latvia, said. "I am concerned that people are a bit too relaxed."
  • Strong China property data masks big problem: unsold homes. For an economy facing its slowest economic growth in a quarter century, a 7.7 percent year-on-year rise in new home prices in December would seem to offer China some light at the end of the tunnel. But the headline number, published by the National Bureau of Statistics on Monday, masks China's massive property problem - a vast amount of unsold apartments mainly in its smaller cities.
Nikkei:
  • Oil Nation Wealth Funds Seen Selling Risky Assets. Sales by sovereign wealth funds seen pushing down global stocks.
Night Trading
  • Asian indices are -.50% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 153.5 -4.0 basis points.
  • Asia Pacific Sovereign CDS Index 80.5 -1.0 basis point.
  • Bloomberg Emerging Markets Currency Index 67.06 +.01%.  
  • S&P 500 futures +.44%.
  • NASDAQ 100 futures +.36%.

Earnings of Note
Company/Estimate 
  • (BAC)/.27
  • (SCHW)/.25
  • (CMA)/.69
  • (DAL)/1.19
  • (MTB)/1.97
  • (MS)/.34
  • (EDU)/.04
  • (UNH)/1.38
  • (IBM)/4.81
  • (IBKR)/.30
  • (LLTC)/.45
  • (NFLX)/.02
  • (ADTN)/.07
  • (AMD)/-.10
  • (CREE)/.24
Economic Releases 
10:00 am EST
  • The NAHB Housing Market Index for January is estimated at 61.0 versus 61.0 in December. 
4:00 pm EST
  • Net Long-Term TIC Flows.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Retail/Industrial Production/GDP reports, German ZEW Index, UK CPI report and the OPEC Monthly Update could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by tech and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing modestly lower. The Portfolio is 25% net long heading into the week.

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Weekly Outlook

Posted by Gary .....at 7:20 PM
Week Ahead by Bloomberg. 
Wall St. Week Ahead by Reuters.
Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week mixed as commodity weakness, rising European/Emerging Markets/US High-Yield debt angst and emerging market currency worries offset bargain-hunting, technical buying and central bank hopes. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 25% net long heading into the week.

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Sunday, January 17, 2016

Today's Headlines

Posted by Gary .....at 10:06 PM
Bloomberg:
  • Rouhani Sees Financial Windfall as Iran Sanctions Are Lifted. President Hassan Rouhani said Iran’s financial resources will “increase significantly” after its compliance with the terms of an accord to curb its nuclear program paved the way for the removal of crippling economic sanctions. The International Atomic Energy Agency concluded on Saturday that the Islamic Republic had curbed its ability to develop an atomic weapon as required under the July accord with world powers. The U.S. and five other nations agreed to lift economic sanctions related to Iran’s nuclear program “simultaneously with the IAEA-verified implementation” of the deal. “The shackles of sanctions have been removed and it’s time to thrive,”’ Rouhani said Sunday on Twitter. Addressing parliament later in a televised speech, he said it’s up to Iran to “seize the opportunity for an economic leap.”
  • Iran Could Get Five Times More From Oil Sales by Year-End. Iran could get more than five times as much cash from oil sales by year-end as the lifting of economic sanctions frees the OPEC member to boost crude exports and attract foreign investment needed to rebuild its energy industry. The Persian Gulf nation will be able to access all of its revenue from crude sales after the U.S. and five other global powers removed sanctions on Saturday in return for Iran’s curbing its nuclear program. The fifth-biggest producer in the Organization of Petroleum Exporting Countries had been receiving only $700 million of each month’s oil earnings under an interim agreement, with the rest blocked in foreign bank accounts. Iran is striving to add 1 million barrels to its daily crude production and exports this year amid a  global supply glut that has pushed prices 22 percent lower this month.
  • Mideast Stocks Plummet as Iran Plans to Boost Crude Exports. Stocks across the Middle East tumbled as the easing of sanctions against Iran raised the prospect of a surge in oil supplies to a market already reeling from the lowest prices in more than a decade. Shares in Tehran gained. Saudi Arabia’s Tadawul All Share Index dropped 5.4 percent to its lowest level since March 2011. Abu Dhabi’s ADX General Index fell into a so-called bear market. The Bloomberg GCC 200 Index, which tracks 200 of the six-nation Gulf Cooperation Council’s biggest companies, traded at 9.5 times estimated 12-month earnings, the lowest in almost seven years. Iran’s TEDPIX Index climbed 0.9 percent, according to data on the bourse’s website, extending Saturday’s 2.1 percent advance. Qatar’s QE Index tumbled 7.2 percent, the most since December 2009, and Abu Dhabi’s ADX General Index slumped 4.2 percent to the lowest level since November 2013. It has declined 23 percent since a peak in July. Dubai’s DFM General Index lost 4.6 percent in the highest trading volume this year. Oman’s MSM 30 Index fell 3.2 percent, the most since December 2014, and Kuwaiti stocks also dropped 3.2 percent to the lowest level since May 2004.
  • China's Hot Bond Market Seen at Risk of Default Chain Reaction. China’s bond investors are raking it in as an equity rout scatters cash into fixed-income securities. But concerns are rising that spreading defaults and a sliding yuan will spark a selloff. Credit derivatives that are seen as a gauge of risk in the market have spiked 22 basis points since Dec. 31, the worst start to a year in data going back to 2008. The number of listed firms with debt double equity has jumped to 339 amid a weakening economy, from 185 in 2007. Traders surveyed by Bloomberg in December said note failures will spread. “2016 is a year when we will see systemic risks emerge in China’s credit market,” said Ji Weijie, credit analyst in Beijing at China Securities Co., the top arranger of bond offerings from state-owned and listed firms. "There may be a chain reaction as more companies are likely to fail in a slowing economy and related firms could go down too."
  • China's Stock Strategists Are Bracing for a Deeper Bear Market. There will be little let up for investors in China’s beleaguered stock market. That’s the consensus of strategists interviewed last week as the benchmark Shanghai Composite Index fell into a bear market on waning confidence that the government can manage the country’s transition to a new growth model and to a more freely-traded currency. Analysts from Bocom International Holdings Co. and Wells Fargo Funds Management say the index may drop 14 percent to 2,500. Zhongtai Securities Co. sees the gauge losing as much as 300 points, or 10 percent, before bottoming out. Phillip Securities and Central China Securities Co. expect more selling pressure even after the Shanghai Composite sank 3.5 percent to 2,900.97 on Friday, falling 21 percent from its December high.
  • PBOC Said to Impose Reserve Ratio on Offshore Bank Yuan Accounts. China’s central bank will impose required reserve ratios on yuan deposits of offshore participant banks in the mainland in a bid to stabilize the currency. The move will take effect from Jan. 25, according to four people familiar with the matter, who declined to be identified because the information isn’t public. The reserve ratio was previously at zero percent on offshore banks’ yuan deposits in the mainland. The deposits will now attract the same ratio as applicable to Chinese banks. Chinese Premier Li Keqiang on Friday pledged a “stable” yuan exchange rate after interbank borrowing costs in Hong Kong surged to a record as the People’s Bank of China sought to narrow its discount to the mainland rate. The offshore yuan capped its biggest weekly advance since October after the central bank repeatedly bought the currency in Hong Kong.
  • Offshore Yuan Gains as China Steps Up Defense of Its Currency. The offshore yuan strengthened, building on its biggest weekly gain since October, after China stepped up efforts to curb speculation against its currency beyond its borders. The People’s Bank of China will impose reserve-requirement ratios on yuan deposits held on the mainland by offshore participant banks from Jan. 25. according to people familiar with the matter. Premier Li Keqiang on Friday pledged a “stable” exchange rate, and said the nation has no intention of stimulating exports through competitive currency devaluation. The central bank strengthened its daily reference rate for the yuan by 0.07 percent on Monday, the biggest gain in four weeks. 
  • South Korean Won Drops to Five-Year Low as Stock Outflows Mount. South Korea’s won fell to a five-year low and stocks dropped due to deteriorating sentiment as a global rout in equities deepened and oil extended its decline. The selloff in shares boosted demand for the relative safety of government debt, pushing South Korea’s 10-year bond yield to a record low. Overseas investors have dumped a net $1.3 billion of the nation’s stocks in 2016 as equities in China, the country’s biggest trading partner, entered a bear market. Oil slumped to its lowest in more than 12 years as Iran prepares to boost exports after the lifting of international sanctions. The won depreciated 0.2 percent to 1,215.17 a dollar as of 9:48 a.m. in Seoul, according to data compiled by Bloomberg. It earlier weakened to 1,216.23, the lowest since July 2010, and is Asia’s worst-performing currency this year with a 3.5 percent loss.
  • Miners Routed as Crude Oil Tumbles, Goldman Predicts More Losses. Mining giants including BHP Billiton Ltd. and Rio Tinto Group tumbled as commodities producers slumped along with oil on Monday, which sank after Iran secured the lifting of sanctions that have capped crude sales. BHP, the world’s biggest mining company, declined as much as 3.5 percent in Sydney, near the lowest level since May 2005, as Rio fell as much as 2.9 percent and nickel-to-gold producer Independence Group NL slipped as much as 7.6 percent. Iron ore miner Fortescue Metals Group Ltd. has declined 21 percent since the start of the year.
  • Asian Stock Rout Deepens as Japan, Australia Bear Markets Loom. Asian stocks slumped, with Japanese and Australian shares on the cusp of joining China in a bear market, as concern grew over the strength of the global economy amid a continuing collapse in oil prices. The MSCI Asia Pacific Index lost 1 percent to 118.94 as of 11:10 a.m. in Tokyo, extending this year’s slide to 9.9 percent. Japan’s Nikkei 225 Stock Average declined 1.4 percent after plunging as much as 2.8 percent in early trading. The gauge is down 19 percent from a June peak. A drop of more than 20 percent at the close would meet the definition of a bear market. Australia’s S&P/ASX 200 Index slipped 0.7 percent, and is currently down 19 percent from an April high.
  • Hedge Fund Bets Signal There's More Pain Ahead for Commodities. The commodity meltdown that pushed oil to a 12-year low and copper to the cheapest since 2009 isn’t over yet. At least, that’s how hedge funds see it. Money managers increased their combined net-bearish position across 18 raw materials to the biggest ever, doubling the negative bets in just two weeks. A measure of returns on commodities last week slid to the lowest in at least 25 years. Metals, crops and energy futures all slumped amid supply gluts and an anemic outlook for the global economy.
Wall Street Journal:
  • Iran Accord Stokes Anxiety Among Its Rivals. Foes worry about how Tehran will use billions of dollars of unfrozen oil receipts. Iran celebrated the removal of economic sanctions on Sunday, even as regional rivals warned that it was still out to destabilize the Middle East and needed to be closely monitored. Western officials said the implementation of Iran’s nuclear deal with six world powers, which allowed for the lifting of some economic sanctions, raised prospects for overhauls within Iran’s political system. The deal has been a priority for President...
  • China’s High Stock Valuations Worry Investors. Even after drop in mainland shares this year, price-to-earnings ratios are much higher than in U.S. and Europe. The plunge in Chinese stock markets this year has already grabbed global attention. Judging by the frothy prices at which shares there still trade relative to their earnings, they could have further to fall. The main index of Shanghai, China’s biggest stock market with a total value of $3.7 trillion, has already dropped 18% this year, to its lowest level in more than a year. Still, the median stock traded in Shanghai is valued at 24 times the profit analysts expect the company to generate this year, a common...
  • Iran’s Hostage Triumph. The U.S. pays a steep ransom for the release of four innocents. Now we know that Washington Post correspondent Jason Rezaian and three other Americans were hostages held by Iran in return for U.S. concessions, in case there was any doubt. And on Saturday we learned the ransom price: $100 billion as part of the completed nuclear deal and a prisoner swap of Iranians who violated U.S. laws. Iran’s Revolutionary Guards Corps should call this Operation Clean Sweep.
Fox News:
  • Cruz on prisoner swap: Obama administration was 'negotiating with terrorists'. (video) GOP presidential candidate Ted Cruz on Sunday criticized the prisoner swap this weekend between the U.S. and Iran, saying the Obama administration is “negotiating with terrorists” and suggested the deal is part of the president’s overall weak foreign policy. “Our enemies are laughing at us,” the Texas senator said on “Fox News Sunday.”
CNBC:
Zero Hedge:
Business Insider:
  • Trump on God: "I don't like to have to ask for forgiveness'. After months of reflection, Donald Trump says he still doesn't regret his decision not to ask God for forgiveness for his sins. In an interview on Sunday with CNN, the Republican presidential frontrunner said that he does not regret never asking God for forgiveness, partially because he says he doesn't have much to apologize for.
  • The Saudi stock market is in free fall. The Saudi Tadawul All-Shares Index (TASI), the largest Arab market, dived 6.5 percent to below 5,500-points just minutes after the start of trading. The level was last seen in early 2011. The leading petrochemicals sector dipped 8.0 percent, while banks lost 5.3 percent. Since the start of 2016, the TASI has dropped 21.1 percent, more than all of its losses last year.
Frankfurter Allgemeine Sonntagszeitung:
  • Munich Re CEO Says Market Situation More Dangerous Than '08. Chinese stock-market turmoil, terrorism, refugee crisis among factors creating less-controllable situation than in aftermath of Lehman collapse, Munich Re CEO Nilolaus von Bomhard says in interview. ECB's low interest rate policy creates "comfortable feeling of security," leading to wrong political decisions, capital allocation; volatile markets show large degree of nervousness. Doesn't expect Chinese stock market collapse, but he is keeping eye on possibility. 
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