Financial Markets and Economy
Bank of England sets new rules to end bank bailouts (Reuters)
The Bank of England said on Tuesday that Britain's lenders would be given an extra two years until 2022 to build up sufficient funds to ensure they do not need to rely on taxpayer bailouts if they go under.
Saudi Government to Pay Money Owed to Private Companies by Year’s End (The Wall Street Journal)
DUBAI—Saudi Arabia’s government has pledged to pay the money it owes to the country’s private companies by the end of December, the kingdom’s latest effort to contain economic fallout from the slide in oil revenue.
Euro Area Douses Tsipras’s Debt Hopes After Greek Bonds Rally (Bloomberg)
Euro-area finance ministers dealt a blow to embattled Greek Prime Minister Alexis Tsipras’s chances of staying in power, signaling he won’t get the debt-relief commitment he’s promised voters for another year at least.
China Says It's Going to Use More Coal, With Capacity Set to Grow 19% (Bloomberg)
China’s coal power generation capacity will grow as much as 19 percent over the next five years even as the world’s biggest energy consumer expands use of non-fossil fuels.
While coal-fired plant capacity will increase, it will still remain below 1,100 gigawatts, National Energy Administration Chief Engineer Han Shui said Monday in a webcast posted on the agency’s website.
Deutsche Boerse-LSE Said to Face EU Antitrust Objections (Bloomberg)
Deutsche Boerse AG’s acquisition of London Stock Exchange Group Plc faces a so-called statement of objections cataloging the European Union’s antitrust concerns over their merger plans, according to a person familiar with the matter.
OPEC Boss Warns of Oil-Market Instability If No Deal on Output (Bloomberg)
An inability of the Organization of Petroleum Exporting Countries to implement the deal it reached in Algiers in September will have “negative consequences on the already fragile state of the industry,” OPEC Secretary-General Mohammed Barkindo said Tuesday at a briefing in Abu Dhabi. Markets are “eagerly awaiting” combined action by OPEC and non-OPEC producers, he said.
China to Top U.S. in Theme-Park Revenue (The Wall Street Journal)
Ticket sales at Chinese theme parks are predicted to soar to nearly $12 billion by 2020, up from $4.6 billion last year, according to a joint report by market-research firm Euromonitor International and World Travel Market.
Fed’s Evans Lacks Confidence That Inflation Will Reach 2% Target (Bloomberg)
U.S. labor markets are strong and the consumer is really “picking up the pace,” though inflation remains too low and declining inflation expectations are a cause for concern, said Federal Reserve Bank of Chicago President Charles Evans.
U.S. Consumers Need Help Amid ‘Frightening Future,’ Roach Says (Bloomberg)
Stephen Roach, a senior fellow at Yale University, said the next U.S. president needs to focus on ways to help households address a “frightening future” as the American economy still shows a shortfall in consumer demand.
Chart o’ the Day: Metals & Mining Roar (The Reformed Broker)
No one talks about these stocks because they’re boring companies in filthy businesses in a world of subpar global GDP growth and collapsed cross-border trade. This has been the case for a long time as China has sought to reorient its economy away from massive infrastructure projects and the west dabbled in austerity policies.
The 10 most important things in the world right now (Business Insider)
Hello! Here's what you need to know on Tuesday.
1. The first ballots cast on US Election Day have officially been recorded. Eight ballots were recorded in Dixville Notch, New Hampshire with Democratic presidential nominee Hillary Clinton coming out ahead with four votes.
JHL Capital’s James Litinsky: A One Percent Rate Hike Could Cause A $10 Trillion Crash (Value Walk)
JHL Capital’s James Litinsky is one for making stand-out statements about the financial markets. Last year, at the Grant’s Interest Rate Observer Conference Litinsky compared the current ZIRP fuelled merger mania to the 1960s Go-Go era, which eventually ended in a bust when interest rates rose, earnings started to look anemic, and stocks started to slide.
BAML Warns That High Yield Risks Are Growing (Value Walk)
It is election day so most news is focused on polls but Bank of America thinks you should pay attention to something else (as well) – High Yield Risks
Whatever Happens Tuesday, The Biggest Loser Is Bill Ackman (Deal Breaker)
When Valeant Pharmaceuticals announced last month that it would hold its third-quarter earnings call on election day, investors should have braced themselves for some sobering news. A charitable observer might chalk up the dubious timing to the company’s Canadian domicile, but functionally speaking, Valeant is headquartered in the decidedly American environs of Bridgewater, New Jersey.
Saudi-Iranian Fallout Could Destroy The OPEC Deal (OilPrice.com, Zero Hedge)
While OPEC is officially communicating that it is ‘deeply optimistic’ that it could reach a deal to stabilize oil prices, and simultaneously scolding industry observers for being too quick to judge and express skepticism, behind closed doors, two of OPEC’s heavyweights and bitter regional rivals – Saudi Arabia and Iran – are reverting to their old ways of posturing with threats that neither will back down in the name of the greater (OPEC) good and let the other have their way.
Las Vegas Real Estate in October: Sales up 5.5% YoY, Inventory down Sharply (Calculated Risk)
This is a key distressed market to follow since Las Vegas has seen the largest price decline of any of the Case-Shiller composite 20 cities.
Feeling The Oil Crunch: Saudi Arabia Cancels $266 Billion In Projects (OilPrice.com, Zero Hedge)
Saudi Arabia’s governing economic body called the Council of Economic and Development Affairs (CEDA) has cancelled $266.7 billion in projects, the Saudi Press Agency said, and announced it would be settling much-delayed private-sector payments by year end.
Indirect Bidders Tumble, Bid To Cover Lowest Since 2009 In Poor 3 Year Auction (Zero Hedge)
