Monday, December 15, 2014

More links

1---Turkey Detains 27 Tied to President’s Rival  wsj
Crackdown on Supporters of U.S.-Based Cleric Gülen Is Seen as Bid to Tighten Grip on Power Before Elections in June,  wall street journal

2--Strong dollar threatens global economy, warns BIS , Guardian

Concerns greet rise of dollar to seven-year high amid fears of emerging economies’ dependence on US currency Strong dollar threatens global economy, warns BIS

The Switzerland-based BIS also revealed that issuance of collateralised debt obligations – the controversial securities once likened to financial weapons of mass destruction – has surpassed levels recorded before the crisis. Activity in the leveraged loans market – a type of CDO – was running at $250bn (£161bn) per quarter in the year ending September 2014, compared with an average of $190bn in 2005-07....

Against this backdrop, the BIS is concerned that some emerging economies could come unstuck because of a growing dependence on loans taken out in US dollars.

Offshore lending in US dollars has hit $9tn, roughly double its 2008 value. Emerging economies have taken out $3.1tn in cross-border loans, mostly in US dollars. Since the end of 2012 alone, dollar loans to China have doubled to $1.1tn, and Chinese citizens have borrowed more than $360bn in debt securities...

But this puts borrowing economies in a vulnerable spot. As the dollar appreciates in value against the local currency, the loan becomes more expensive to repay, raising the risk of default and economic instability. The dollar has been rising against the euro and the yen since the US Federal Reserve announced an end to its stimulus programme and hinted at an interest-rate rise next year. In contrast, the European Central Bank and Bank of Japan have loosened monetary policy and signalled greater stimulus.
“The appreciation of the dollar against the backdrop of divergent monetary policies may, if persistent, have a profound impact on the global economy, in particular on [emerging market economies]. For example, it may expose financial vulnerabilities as many firms in emerging markets have large US dollar-denominated liabilities,” BIS said.

3--- Qatar Stocks Enter Bear Market as Dubai Erases 2014 Gains on Oil, Bloomberg

Qatar’s QE Index (DSM) lost 5.9 percent to 11,114.43 at the close in Doha, bringing its decline since September’s record high to 23 percent. Dubai’s DFM General Index (DFMGI) lost 7.6 percent, the most since October 2008. The shares have retreated 34 percent this quarter, turning one of the world’s best gains in 2014 into a 1.4 percent loss. The measure, along with indexes in Saudi Arabia, Kuwait and Oman fell into a bear market in the past three weeks. .....

Saudi Arabia’s Tadawul All Share Index fell 3.3 percent to 8,119.08, the lowest close in 13 months. Abu Dhabi’s ADX General Index (ADSMI) slipped 3.6 percent, taking its retreat from a May peak to almost 20 percent. The measure has erased gains this year to slide 1.9 percent. The exchange today announced a five-minute trading halt if a stock moves by 5 percent to “prevent rash decisions,” according to an e-mailed statement.
Kuwait’s SE Price Index lost 2.9 percent, Oman’s benchmark declined 3.2 percent and Bahrain’s measure fell 0.6 percent.

“Oil is a major source of revenue for government budgets in the region,” Tariq Qaqish, fund manager at Al Mal Capital PSC, said by telephone from Dubai. “Lower oil prices mean lower spending. Lower spending means less economic growth.”
Governments in the region need a break-even oil price of about $80 a barrel for this year, according to International Monetary Fund estimates.

4--The Ultimate Guide to Mainstream Media: American TV Networks, RT
5--Russia Shocks With Emergency Rate Hike, Boosts Interest Rate From 10.5% To 17%, zero hedge

6---China, Russia Dump US Treasurys In October As Foreigners Sell Most US Stocks Since 2007, zero hedge


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