Wednesday, June 28, 2017

Today's Headlines

Bloomberg:
  • Draghi Tried to Be Cautious But Spooked the Market Anyway. (video) Mario Draghi just got evidence that his call for “prudence” in withdrawing European Central Bank stimulus applies to his words too. The euro and bond yields surged on Tuesday after the ECB president said the reflation of the euro-area economy creates room to pull back unconventional measures without tightening the stance. Policy makers noted the jolt that showed how hypersensitive investors are to statements that can be read as even mildly hawkish, according to three Eurosystem officials familiar with their thinking.
  • China Examines Deals Gone Awry to Gauge Banking Risks. China’s banking regulator, which has asked local lenders to provide loan information on the country’s top deal-making companies, is examining examples of acquisitions gone awry by those firms to assess potential risks to the financial sector, people familiar with the matter said. The China Banking Regulatory Commission is seeking to gauge how much risk Chinese banks face by lending funds to Anbang Insurance Group Co., Dalian Wanda Group Co., Fosun International Ltd., HNA Group Co., and the Chinese buyer of the AC Milan soccer club, the people said, asking not to be identified because the matter is private. Specifically, the regulator is seeking to assess the likelihood of litigation costs, potential losses to banks if the deals sour and whether enough due diligence was conducted, the people said.
  • Europe Stocks Little Changed as Comments on Draghi Give Support. (video) European stocks ended the session little changed, erasing an earlier drop after comments by Eurosystem officials damped speculation Mario Draghi had turned more hawkish. The Stoxx Europe 600 Index closed at 385.82, reversing a decline of as much as 1 percent. The officials said the European Central Bank president’s speech on Tuesday was intended to strike a balance between recognizing the currency bloc’s economic strength and warning that monetary support is still needed.
Wall Street Journal:

No comments: