Bloomberg:
- World Leaders Hid Wealth Via Shell Companies, Report Alleges. (video) Leaked files from a Panama law firm that creates shell companies show that politicians, criminals and celebrities worldwide have used banks and shadow companies to hide their finances, according to a series of reports by the International Consortium of Investigative Journalists. Within hours of publication, the divulgences prompted a parliamentary vote of confidence in Iceland, a curt denial from Argentina and ridicule from a close confidant of Russian President Vladimir Putin. The consortium said it had obtained a cache of 11.5 million records outlining the creation of more than 200,000 offshore shell companies. The trove includes offshore companies linked to 12 current and former world leaders, as well as hidden financial dealings by 128 more politicians, public officials and entertainment celebrities, according to the ICIJ. While offshore holdings can be legal, they can also be used to hide wealth. Since the financial crisis, Western governments have sought to shed greater light on offshore banking centers, accusing them of being used for activities ranging from tax avoidance to hiding illicit funds to enabling reckless trading. Many Western countries have increasingly linked foreign aid to anti-corruption crackdowns in recipient countries. The ICIJ cited documents that it alleged showed that some banks and law firms failed to follow requirements to check that their clients weren’t involved in crimes. “The Panama Papers investigation unmasks the dark side of the global financial system where banks, lawyers and financial professionals enable secret companies to hide illicit corrupt money,” José Ugaz, the chair of Transparency International, an advocacy group, said in a statement. “This must stop. World leaders must come together and ban the secret companies that fuel grand corruption and allow the corrupt to benefit from ill-gotten wealth.”
- Banks Have a Panama Problem. Never mind the Russians, political leaders and celebrities. The leaked papers from a Panama law firm have the potential to create a bigger headache for the global financial industry.
- Europe Stocks Rebound on Economy Optimism, While Bouygues Slumps. European stocks rose for the first time in three days on confidence that the strength in the U.S. economy will help global growth. The Stoxx Europe 600 Index rose 0.3 percent at 4:05 p.m. in London, though it pared an advance of as much as 1.1 percent. Orange SA lost 6.4 percent and Bouygues SA plunged 14 percent after a deal between the two collapsed. Peers Altice NV, Iliad SA and Numericable-SFR SAS tumbled more than 12 percent.
- Saudi Oil Stance a Nail in Rally's Coffin: Tchilinguirian. (video)
- Oil Speculators Bet Rally's Over as Doubts Grow on Output Freeze. (video) Bearish bets rose by 11,167 contracts, or 17 percent, to 75,598 positions in the report week, the CFTC data show. Short positions were at a nine-month low the prior week. Bullish wagers decreased by 3,647 to 296,614. The resulting net-long position slipped 6.3 percent to 221,016. “We switched to a moderate flow of selling by money managers,” Evans said. “It was dominated by new shorts coming into the market and not by long liquidation. The rise in shorts may reflect that they think the rally is done.”
- Copper on Worst Run in Two Years as Barclays Sees Deterioration. Copper is heading for the longest losing streak in two years as Barclays Plc forecast weaker prices amid concern that supply will continue to outstrip consumption. Barclays said prices would drop this quarter, averaging $4,520 a ton, or 6.5 percent lower than Friday’s close in London. The metal climbed 3 percent last quarter. The head of Chile’s Codelco, the world’s largest copper producer, warned there are few signs of improving demand, and doesn’t see a recovery starting until 2018. “Over the past week, copper prices have converged with our view that the recent rally was unsustainable as it was built on transient technical factors and poor fundamentals,” Barclays said in a note to investors Monday. “In the second quarter, we see copper continuing to weaken, as the seasonal uptick in Chinese economic activity is not enough to offset strong inventory levels and a worrisome medium-term outlook.” Copper for delivery in three months declined 1 percent to $4,784 a metric ton ($2.17 a pound) at 3:51 p.m. on the London Metal Exchange, headed for a seventh straight decline, the longest stretch since February 2014.
- Loans Shrink Like 'Melting Ice Cube'. America’s riskier credit markets suffered some deep wounds from a rocky start to the year. The depth of the scars may not be obvious just by looking at returns. But under the surface, it’s clear the market has been damaged in terms of its main function -- providing financing to more-speculative companies.
Wall Street Journal:
- Investigators Home In on Scope of Terror Network Behind Brussels, Paris Attacks. Documents, interviews paint portrait of some of the at least 22 members believed to be still at large. At least 22 radical Islamists from Europe linked to the terror network behind the Brussels and Paris attacks are suspected to be still at large, putting security services on high alert as they rush to prevent Islamic State from striking again in the region.
- IMF Warns of Rising ‘Systemic Risk’ From Insurers. Warning comes days after judge blocks new insurer oversight in U.S. The week after a judge stymied U.S. government efforts to curb potential systemic risks from giant insurers, the International Monetary Fund issued a new warning about rising global financial market hazards posed by the sector.
- Trump vs. Scott Walker. Wisconsin is doing well following conservative economic reforms. Scott Walker has endorsed Ted Cruz for the GOP presidential nomination, so perhaps it’s understandable that Donald Trump has been attacking the Wisconsin Governor’s record as he campaigns ahead of Tuesday’s primary there. The problem is that Mr. Walker has the facts on his side.
CNBC:
Zero Hedge:
- Manufacturing Recession Deepens: Factory Orders Drop To Five Year Low; 16 Consecutive Declines. (graph)
- ISM New York Drops To September Lows As All Components Decline; Employment Plunges. (graph)
- Japanese Traders Are Getting Angry: "The BOJ Is Destroying The Functioning Of The Market". (graph)
- Saudis Retaliate To "Oil Freeze" Fallout: Ban Transport Of Iranian Crude In Territorial Waters.
- In Bizarre, Schizophrenic Note Morgan Stanley Compares Rally Chasers To "Cockroaches".
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