KTFA:
Backdoc: FAMILY, IT'S TIME FOR A MAIN EVENT NEWS UPDATE!
AS THE REPUBLICANS AND REPUBLICRATS DO AN INTERNAL FACE OFF FOR LEADERSHIP THE BATTLE FOR UNITY WILL SEEK ITS SELF OUT!
A UNITING CANDIDATE COULD BE A SERIOUS FORCE IN OUR GOVT.. WITH SOME KEY ISSUES AT HAND ITS TIME TO MAKE THE DOUGHNUTS BOYS. DOC IMO
Thunderhawk: Backdoc Alert Leading Republican Ryan reconsiders House speaker run: lawmakers
A leading Republican congressman with allies on the right wing of the party, Paul Ryan, is weighing a bid to replace retiring U.S. House of Representatives Speaker John Boehner, fellow lawmakers said on Friday as they sought to defuse a leadership battle.
Numerous House Republicans and even 2012 presidential candidate Mitt Romney have asked Ryan to run for speaker after the front-runner, House Majority Leader Kevin McCarthy, abruptly dropped out on Thursday.
....
Backdoc: FAMILY, IT'S TIME FOR A MAIN EVENT NEWS UPDATE!
AS THE REPUBLICANS AND REPUBLICRATS DO AN INTERNAL FACE OFF FOR LEADERSHIP THE BATTLE FOR UNITY WILL SEEK ITS SELF OUT!
A UNITING CANDIDATE COULD BE A SERIOUS FORCE IN OUR GOVT.. WITH SOME KEY ISSUES AT HAND ITS TIME TO MAKE THE DOUGHNUTS BOYS. DOC IMO
Thunderhawk: Backdoc Alert Leading Republican Ryan reconsiders House speaker run: lawmakers
A leading Republican congressman with allies on the right wing of the party, Paul Ryan, is weighing a bid to replace retiring U.S. House of Representatives Speaker John Boehner, fellow lawmakers said on Friday as they sought to defuse a leadership battle.
Numerous House Republicans and even 2012 presidential candidate Mitt Romney have asked Ryan to run for speaker after the front-runner, House Majority Leader Kevin McCarthy, abruptly dropped out on Thursday.
....
http://ift.tt/1LaL72T
************
Backdoc: WITH THE DEBT CEILING LIMIT LOOMING AND A THIRST TO QUENCH ON LIABILITIES ITS CRUNCH TIME AT THE OK CORRAL!
NOV. 5TH DEADLINE IS ON THE WAY AND WILL THEY ASSUME THE FISCAL MANDATE OF THE VOTERS OR WILL THEY GIVE IN TO UNBRIDLED BIG SPENDING?
AS WE HEAD TO THE END OF OCTOBER WILL IT BE TRICK OR TREAT? HEE HEE
I'LL GRAB SOME CARMEL CORN! DOC IMO
Thunderhawk: Backdoc Alert Debt ceiling fail by Congress could get really ugly
Last week's scare over a possible government shutdown may have been just the warmup act for a much bigger threat to force the Treasury to default on trillions of dollars of debt.
The shutdown was narrowly averted by a last minute deal in Congress that angered its most conservative members and prompted House Speaker John Boehner, R.-Ohio, to step down. His presumptive replacement, House Majority Leader Kevin McCarthy, R.-Calif., abruptly announced Thursday that he would not seek the job.
Now, amid the leadership vacuum, Congress remains paralyzed over a long list of contentious issues, from budget battles to a sweeping new trade deal. But unless Congress acts in the next few weeks to raise the government's legal borrowing limit, the Treasury will be forced to stop borrowing and paying its bill — including interest on government bonds that have already been sold to investors.
"Congress needs to act or we could be faced with a crisis," Treasury Secretary Jack Lew said Thursday at an International Monetary Fund meeting in Lima, Peru. "We have the capacity, but do we have the will?"
If Congress doesn't act, here's what would happen next.
Just when, exactly, does the government hit the debt ceiling?
The current cap — of $18.1 trillion — could be reached by the end of this month. But there's no hard date on the calendar, and the Treasury is already juggling payments just like a household trying to decide how to keep with the monthly bills. Unlike a household with a steady paycheck, though, the government's finances are "lumpy."
With some 80 million payments moving through the system each month, the government's revenues and expenses ebb and flow with irregular, sometimes unpredictable, peaks and troughs on the income and payment sides of the ledger. Social Security checks typically go out at the beginning of the month, for example. Quarterly tax receipts, on the other hand, typically cluster around the middle of the month.
The Treasury can use a few "cash management" tricks to try to avoid hitting the borrowing limit, but eventually it will run out of the legal authority to sell more debt.
But why not keep the cap and force the government to stop spending money? Would that cut the federal budget deficit?
No. Congress can cut spending any time it wants. Once it authorizes spending, the Treasury is legally obligated to pay the money appropriated by Congress.
As a report last week by the Congressional Research Service explained: "a government that delays payment of an obligation, in effect, borrows from vendors, contractors, beneficiaries, state and local governments, or employees who are not paid on time."
And just like a credit card borrower who doesn't pay on time, delayed payments will cost the government more in what amount to late fees in the form of interest penalties on unpaid bills.
We all know Congress will eventually get around to raising the debt limit, and everyone will get paid. What's the big deal?
Unfortunately, when investors buy U.S. Treasury bonds, they aren't interested in getting paid "eventually." They count on the "full faith and credit" of the U.S. government to pay them on time. That's why a default by the Treasury would have such unpredictable — and potentially dire — consequences. At the very least, interest rates would likely rise to offset the risk of holding Treasurys and not getting paid on time.
The last time this looked like a serious threat in 2011, analysts at JPMorgan looked at the probable "domino effects" of the Treasury default, and they weren't pretty.
What if the dominoes start falling?
Among the "long-term adverse consequences for Treasury finances and the U.S. economy" of even a brief default, the JPMorgan analysts figured the list includes a spike in interest rates as investors find other places to put their cash. Those higher rates could cost the government as much as $75 billion a year, they estimated.
But that's only the beginning. Those higher rates would flow through the rest of the economy, raising the cost of buying a new car or getting a new mortgage. If the Treasury abruptly stopped paying the government's bills, the freeze could hit everyone from small business government contractors to Social Security recipients to doctors getting reimbursed for treating Medicare patients.
Federal spending would fall by roughly 20 percent almost overnight. That's about 4 percent of gross domestic product. With the stock market already worried about a slowdown in global economy, you could also expect a big drop in stock prices.
Haven't we seen this movie before? Why can't we fix this once and for all?
Unlike virtually every other country in the developed worked — that cap has to be extended periodically by a special act of Congress. It's been lifted that way over 100 times since 1940. Though often contentious, the once-routine debt ceiling extension has recently become a political weapon of mass destruction.
Congress came close to forcing a Treasury default in July 2011, pulling back from the brink at the last minute and agreeing to a compromise. The spectacle cost the U.S. its Triple-A credit rating, but no payments were missed. Now, with the House locked in what could be a protracted leadership battle, the prospect of a self-inflicted financial crisis has increased substantially in the last week.
Ah, the Treasury is just bluffing. What about that $1 trillion coin I've heard they've minted for just this occasion?
Some default skeptics have argued that such a default is unlikely because the Treasury would still have enough cash coming in to pay interest on the national debt. But the Treasury has said in the past that it has no legal authority to decide which bills to pay and which to ignore. It's also not clear whether its payment system could be rejiggered to prioritize some payments over others.
Some default deniers also argued the last time around that that President Barack Obama has the power to override Congress and authorize the Treasury to continue borrowing, based on language in the 14th Amendment ("The validity of the public debt of the United States ... shall not be questioned.") But the White House immediately slapped down that rumor.
And yes, some have even speculated that the Treasury could use its powers to mint coins to create a $1 trillion cash cushion. Unfortunately, there aren't enough gold reserves available to mint such a coin, even if it were legal.
And it's not something you could easily use at a vending machine.
http://ift.tt/1Nv9RsA
************
Backdoc: WHY DO I SHARE WITH YOU THIS ARTICLE? (See Article Below)
WELL, REMEMBER I TOLD YOU THAT THE REPUBLICANS HAVE ALREADY SECURED A VETO PROOF VOTE ON A CLEVER MOVE FOR THE DEFENSE BUDGET WHICH OBAMA CAN'T TOUCH? RIGHT!
WELL, THE WHITE HOUSE SEEMS TO BE MOON WALKING ON FISCAL EXPENDITURES ALREADY BY THE HUGE RELEASE OF FEDERAL PRISONERS FOR MILD DRUG CRIMES! A NICE COST REDUCTION.
ANOTHER MOVE FOLLOWED WITH AMTRAC SLATED TO BE SLASHED OR ELIMINATED BY THE END OF THE YEAR!
THEN NEXT WE SEE THIS!
WITH RUSSIA BLASTING ANY OPPOSITION TO ASSADS REGIME, THE HAND WRITING IS ON THE WALL FOR THE REBELS. ANOTHER GOVT. BILLION DOLLAR CUT IN SPENDING HERE.
THE NEW SHERIFF IS IN TOWN AS OUR WEAK PRESIDENT STEPS ASIDE! DOC IMO
Thunderhawk: Backdoc Alert Obama Drops Syria Training Plan, Shifts to Equipping Fighters
The Obama administration is abandoning its failed attempt to build and train a rebel force in Syria to take on Islamic State and will focus on equipping selected leaders and providing air support to their units.
The change is a recognition that President Barack Obama’s original plan to train thousands of moderate fighters fell short, producing only a handful of rebels to combat the terror group. The U.S. instead will identify leaders in the region and provide their forces with arms and other support short of missile launchers or anti-tank weapons.
http://ift.tt/1L3GfPn
************
Backdoc: OCTOBER SURPRISES NOW BEGIN AS WE ENTER EARNING SEASON NEXT WEEK!
BLACK GOLD'S DAMAGE TO COMMODITY PRICES HAVE TAKEN A TOLL BUT IT TAKES A COUPLE MONTHS TO START TELLING THE TRUTH IN THE NUMBERS!
GLENCORE IS A MONSTER IN THE COMMODITY SPACE. IT HAS ONE HUGE PROBLEM, IT'S HIGHLY LEVERAGED WITH DEBT! MANY BANKS ARE ON THE HOOK IF IT DEFAULTS. LAST WE SAW THEM DOING SOME FINANCIAL ACCOUNTING MOVES TO DEFEND ITS FINANCIAL TURF. HEE HEE
D.B. BANK WILL GET HURT THE WORST IF OIL DOES ANOTHER RETEST TO ITS LOWS AS THIS DANGEROUS SUPPLY/DEMAND GAME IS PLAYED OUT!
WE CONTINUE TO SEE PRESSURE COMING FROM EVERYWHERE NOW ON THE EURO!
LETS WATCH THIS WEEK TO SEE WHICH DIRECTION EARNING SEASON STARTS TO TAKE US! WILL BE OFF TO THE RACES WITH PRICES AS DEMAND PICKS UP OR WILL MORE PAIN BE ON THE WAY AND SOMEONE STRIKES OUT! WILL THE GLOBAL UMPIRE CALL "HE GONE" ? DOC IMO
************
Thunderhawk Backdoc Alert Glencore's $100 Billion 'Gorilla' Means Bad News for Banks
Global financial firms’ estimated $100 billion or more exposure to Glencore Plc may draw more scrutiny as regulatory stress tests approach after the commodity giant’s stock plunge this year, according to Bank of America Corp.
Bank shareholders and regulators may be concerned that Glencore’s debt and trade finance deals, of which a “significant majority” are unsecured, will reveal higher-than-expected risk and require more capital once the lenders are put through U.S. and U.K. stress tests, BofA analysts said Wednesday. Adding an estimated $50 billion of committed lines to the company’s own reported gross debt, the analysts say financial firms’ exposure may be three times larger than Glencore’s reported adjusted net debt of less than $30 billion.
“The banking industry may have significantly more exposure to Glencore than is generally appreciated in the market,” analysts including Alastair Ryan and Michael Helsby said in a note titled “The $100 Billion Gorilla In the Room.” The commodity-price bust and “stress in Glencore’s share price and debt spreads may spur a review by investors, supervisors and bank management,” while “bank shareholders may pressure managements to reduce exposures,” they said.
http://ift.tt/1MZqwl2
************
VIDEO: Glencore to cut 500,000T of zinc output as prices slide
Commodities giant Glencore said on Friday it will cut 500,000 tonnes of global zinc production, around one third of its annual zinc output, due to low prices.
"Glencore is announcing today a 500,000 tonne reduction of contained zinc metal mine production across its operations in Australia, South America and Kazakhstan," the company, which is the world's biggest zinc miner, said in a release to the Hong Kong Stock Exchange.
Zinc prices have fallen 30 percent since May to five-year lows.
"Glencore believes that current prices do not correctly value the scarcity of our zinc resources," the company said, adding: "Glencore remains positive about the medium and long term outlook for zinc, lead and silver, however we are taking a proactive approach to manage our production in response to current prices."
http://ift.tt/1Mhkedq
************
Backdoc: HERE IS WHERE THE WATERS GET MUDDY. THE LAST WE HEARD FROM OUR GOVT. WAS THAT THEY WERE GOING TO BEGIN THE PROCESS OF RELEASING SANCTIONS ON OCTOBER 8,TH !
WELL, EVEN WITH THIS ARTICLE THAT ANSWER CAN'T BE ANSWERED SINCE WE KNOW IT IS LIKE PEELING AN OINION. IF THEY HAD NOT COMPLIED WITH WHAT IS ASKED OF THEM PRESENTLY I WOULD SAY THERE WOULD BE NOISE ABOUT IT!
I WOULD ONLY GUESS BASED ON ACTIONS, THAT "THE DEAL" IS UNDER WAY!
HOW DO I KNOW THAT? GLAD YOU ASKED. IN ONE WEEK WE WENT FROM SEEING RUSSIA STATING THEY WON'T TALK TO OPEC NATIONS ON OIL PRODUCTION, TO A WEEK LATER DOING A U-TURN!
DURING THAT SAME TIME WE SEE THE MOON WALKING OBAMA, ABANDON THE REBELS THAT OPPOSE ASSAD AND ALLOW IRAN AND RUSSIA TO COOPERATE EFFORTS IN SYRIA! NOW THAT AN OBVIOUS ACTION!
I SAY "THE DEAL" IS RIGHT ON SCHEDULE!
KEEP YOUR EYE ON ANYTHING WITH IRAN BECAUSE I BELIEVE THE TIMING OF WHAT WE SEEK IS DEFINITELY TIED TO "THE DEAL". NOBODY WANTS TO BE LEFT BEHIND IN THE MONETARY REFORM OR DAMAGE COULD BE DONE TO EACH OTHERS CURRENCY! DOC IMO
Dnari131: and now with CIPS going LIVE countries can trade DIRECT free of having to use the USD with that system with the Yuan being currency backing that system. The writing is on the wall...it's all happening one way or another imo...interesting times….especially when new options are on the table all around the globe taking notice...especially O lol
Thunderhawk: Backdoc Alert Exclusive: U.S. warns governments, bankers Iran sanctions still in place
The Obama administration has privately reminded foreign governments and U.S. bankers that sanctions against Iran remain in effect, cautioning against a rush by Western companies to invest in Iran's oil industry and other businesses until the country fully complies with the July nuclear agreement.
The U.S. State Department recently cabled a message, known as a demarche, to embassies around the world to reiterate that sanctions on Iran are still in place, diplomatic and government sources told Reuters on Friday.
The demarche stressed that sanctions on Iran would not be lifted until the International Atomic Energy Agency verifies that Tehran has complied with the terms of the deal.
"The United States wants to tell governments not to get ahead of themselves when dealing with Iran," said a London-based diplomatic source.
http://ift.tt/1RyYxds
************
Backdoc: WITH THE DEBT CEILING LIMIT LOOMING AND A THIRST TO QUENCH ON LIABILITIES ITS CRUNCH TIME AT THE OK CORRAL!
NOV. 5TH DEADLINE IS ON THE WAY AND WILL THEY ASSUME THE FISCAL MANDATE OF THE VOTERS OR WILL THEY GIVE IN TO UNBRIDLED BIG SPENDING?
AS WE HEAD TO THE END OF OCTOBER WILL IT BE TRICK OR TREAT? HEE HEE
I'LL GRAB SOME CARMEL CORN! DOC IMO
Thunderhawk: Backdoc Alert Debt ceiling fail by Congress could get really ugly
Last week's scare over a possible government shutdown may have been just the warmup act for a much bigger threat to force the Treasury to default on trillions of dollars of debt.
The shutdown was narrowly averted by a last minute deal in Congress that angered its most conservative members and prompted House Speaker John Boehner, R.-Ohio, to step down. His presumptive replacement, House Majority Leader Kevin McCarthy, R.-Calif., abruptly announced Thursday that he would not seek the job.
Now, amid the leadership vacuum, Congress remains paralyzed over a long list of contentious issues, from budget battles to a sweeping new trade deal. But unless Congress acts in the next few weeks to raise the government's legal borrowing limit, the Treasury will be forced to stop borrowing and paying its bill — including interest on government bonds that have already been sold to investors.
"Congress needs to act or we could be faced with a crisis," Treasury Secretary Jack Lew said Thursday at an International Monetary Fund meeting in Lima, Peru. "We have the capacity, but do we have the will?"
If Congress doesn't act, here's what would happen next.
Just when, exactly, does the government hit the debt ceiling?
The current cap — of $18.1 trillion — could be reached by the end of this month. But there's no hard date on the calendar, and the Treasury is already juggling payments just like a household trying to decide how to keep with the monthly bills. Unlike a household with a steady paycheck, though, the government's finances are "lumpy."
With some 80 million payments moving through the system each month, the government's revenues and expenses ebb and flow with irregular, sometimes unpredictable, peaks and troughs on the income and payment sides of the ledger. Social Security checks typically go out at the beginning of the month, for example. Quarterly tax receipts, on the other hand, typically cluster around the middle of the month.
The Treasury can use a few "cash management" tricks to try to avoid hitting the borrowing limit, but eventually it will run out of the legal authority to sell more debt.
But why not keep the cap and force the government to stop spending money? Would that cut the federal budget deficit?
No. Congress can cut spending any time it wants. Once it authorizes spending, the Treasury is legally obligated to pay the money appropriated by Congress.
As a report last week by the Congressional Research Service explained: "a government that delays payment of an obligation, in effect, borrows from vendors, contractors, beneficiaries, state and local governments, or employees who are not paid on time."
And just like a credit card borrower who doesn't pay on time, delayed payments will cost the government more in what amount to late fees in the form of interest penalties on unpaid bills.
We all know Congress will eventually get around to raising the debt limit, and everyone will get paid. What's the big deal?
Unfortunately, when investors buy U.S. Treasury bonds, they aren't interested in getting paid "eventually." They count on the "full faith and credit" of the U.S. government to pay them on time. That's why a default by the Treasury would have such unpredictable — and potentially dire — consequences. At the very least, interest rates would likely rise to offset the risk of holding Treasurys and not getting paid on time.
The last time this looked like a serious threat in 2011, analysts at JPMorgan looked at the probable "domino effects" of the Treasury default, and they weren't pretty.
What if the dominoes start falling?
Among the "long-term adverse consequences for Treasury finances and the U.S. economy" of even a brief default, the JPMorgan analysts figured the list includes a spike in interest rates as investors find other places to put their cash. Those higher rates could cost the government as much as $75 billion a year, they estimated.
But that's only the beginning. Those higher rates would flow through the rest of the economy, raising the cost of buying a new car or getting a new mortgage. If the Treasury abruptly stopped paying the government's bills, the freeze could hit everyone from small business government contractors to Social Security recipients to doctors getting reimbursed for treating Medicare patients.
Federal spending would fall by roughly 20 percent almost overnight. That's about 4 percent of gross domestic product. With the stock market already worried about a slowdown in global economy, you could also expect a big drop in stock prices.
Haven't we seen this movie before? Why can't we fix this once and for all?
Unlike virtually every other country in the developed worked — that cap has to be extended periodically by a special act of Congress. It's been lifted that way over 100 times since 1940. Though often contentious, the once-routine debt ceiling extension has recently become a political weapon of mass destruction.
Congress came close to forcing a Treasury default in July 2011, pulling back from the brink at the last minute and agreeing to a compromise. The spectacle cost the U.S. its Triple-A credit rating, but no payments were missed. Now, with the House locked in what could be a protracted leadership battle, the prospect of a self-inflicted financial crisis has increased substantially in the last week.
Ah, the Treasury is just bluffing. What about that $1 trillion coin I've heard they've minted for just this occasion?
Some default skeptics have argued that such a default is unlikely because the Treasury would still have enough cash coming in to pay interest on the national debt. But the Treasury has said in the past that it has no legal authority to decide which bills to pay and which to ignore. It's also not clear whether its payment system could be rejiggered to prioritize some payments over others.
Some default deniers also argued the last time around that that President Barack Obama has the power to override Congress and authorize the Treasury to continue borrowing, based on language in the 14th Amendment ("The validity of the public debt of the United States ... shall not be questioned.") But the White House immediately slapped down that rumor.
And yes, some have even speculated that the Treasury could use its powers to mint coins to create a $1 trillion cash cushion. Unfortunately, there aren't enough gold reserves available to mint such a coin, even if it were legal.
And it's not something you could easily use at a vending machine.
http://ift.tt/1Nv9RsA
************
Backdoc: WHY DO I SHARE WITH YOU THIS ARTICLE? (See Article Below)
WELL, REMEMBER I TOLD YOU THAT THE REPUBLICANS HAVE ALREADY SECURED A VETO PROOF VOTE ON A CLEVER MOVE FOR THE DEFENSE BUDGET WHICH OBAMA CAN'T TOUCH? RIGHT!
WELL, THE WHITE HOUSE SEEMS TO BE MOON WALKING ON FISCAL EXPENDITURES ALREADY BY THE HUGE RELEASE OF FEDERAL PRISONERS FOR MILD DRUG CRIMES! A NICE COST REDUCTION.
ANOTHER MOVE FOLLOWED WITH AMTRAC SLATED TO BE SLASHED OR ELIMINATED BY THE END OF THE YEAR!
THEN NEXT WE SEE THIS!
WITH RUSSIA BLASTING ANY OPPOSITION TO ASSADS REGIME, THE HAND WRITING IS ON THE WALL FOR THE REBELS. ANOTHER GOVT. BILLION DOLLAR CUT IN SPENDING HERE.
THE NEW SHERIFF IS IN TOWN AS OUR WEAK PRESIDENT STEPS ASIDE! DOC IMO
Thunderhawk: Backdoc Alert Obama Drops Syria Training Plan, Shifts to Equipping Fighters
The Obama administration is abandoning its failed attempt to build and train a rebel force in Syria to take on Islamic State and will focus on equipping selected leaders and providing air support to their units.
The change is a recognition that President Barack Obama’s original plan to train thousands of moderate fighters fell short, producing only a handful of rebels to combat the terror group. The U.S. instead will identify leaders in the region and provide their forces with arms and other support short of missile launchers or anti-tank weapons.
http://ift.tt/1L3GfPn
************
Backdoc: OCTOBER SURPRISES NOW BEGIN AS WE ENTER EARNING SEASON NEXT WEEK!
BLACK GOLD'S DAMAGE TO COMMODITY PRICES HAVE TAKEN A TOLL BUT IT TAKES A COUPLE MONTHS TO START TELLING THE TRUTH IN THE NUMBERS!
GLENCORE IS A MONSTER IN THE COMMODITY SPACE. IT HAS ONE HUGE PROBLEM, IT'S HIGHLY LEVERAGED WITH DEBT! MANY BANKS ARE ON THE HOOK IF IT DEFAULTS. LAST WE SAW THEM DOING SOME FINANCIAL ACCOUNTING MOVES TO DEFEND ITS FINANCIAL TURF. HEE HEE
D.B. BANK WILL GET HURT THE WORST IF OIL DOES ANOTHER RETEST TO ITS LOWS AS THIS DANGEROUS SUPPLY/DEMAND GAME IS PLAYED OUT!
WE CONTINUE TO SEE PRESSURE COMING FROM EVERYWHERE NOW ON THE EURO!
LETS WATCH THIS WEEK TO SEE WHICH DIRECTION EARNING SEASON STARTS TO TAKE US! WILL BE OFF TO THE RACES WITH PRICES AS DEMAND PICKS UP OR WILL MORE PAIN BE ON THE WAY AND SOMEONE STRIKES OUT! WILL THE GLOBAL UMPIRE CALL "HE GONE" ? DOC IMO
************
Thunderhawk Backdoc Alert Glencore's $100 Billion 'Gorilla' Means Bad News for Banks
Global financial firms’ estimated $100 billion or more exposure to Glencore Plc may draw more scrutiny as regulatory stress tests approach after the commodity giant’s stock plunge this year, according to Bank of America Corp.
Bank shareholders and regulators may be concerned that Glencore’s debt and trade finance deals, of which a “significant majority” are unsecured, will reveal higher-than-expected risk and require more capital once the lenders are put through U.S. and U.K. stress tests, BofA analysts said Wednesday. Adding an estimated $50 billion of committed lines to the company’s own reported gross debt, the analysts say financial firms’ exposure may be three times larger than Glencore’s reported adjusted net debt of less than $30 billion.
“The banking industry may have significantly more exposure to Glencore than is generally appreciated in the market,” analysts including Alastair Ryan and Michael Helsby said in a note titled “The $100 Billion Gorilla In the Room.” The commodity-price bust and “stress in Glencore’s share price and debt spreads may spur a review by investors, supervisors and bank management,” while “bank shareholders may pressure managements to reduce exposures,” they said.
http://ift.tt/1MZqwl2
************
VIDEO: Glencore to cut 500,000T of zinc output as prices slide
Commodities giant Glencore said on Friday it will cut 500,000 tonnes of global zinc production, around one third of its annual zinc output, due to low prices.
"Glencore is announcing today a 500,000 tonne reduction of contained zinc metal mine production across its operations in Australia, South America and Kazakhstan," the company, which is the world's biggest zinc miner, said in a release to the Hong Kong Stock Exchange.
Zinc prices have fallen 30 percent since May to five-year lows.
"Glencore believes that current prices do not correctly value the scarcity of our zinc resources," the company said, adding: "Glencore remains positive about the medium and long term outlook for zinc, lead and silver, however we are taking a proactive approach to manage our production in response to current prices."
http://ift.tt/1Mhkedq
************
Backdoc: HERE IS WHERE THE WATERS GET MUDDY. THE LAST WE HEARD FROM OUR GOVT. WAS THAT THEY WERE GOING TO BEGIN THE PROCESS OF RELEASING SANCTIONS ON OCTOBER 8,TH !
WELL, EVEN WITH THIS ARTICLE THAT ANSWER CAN'T BE ANSWERED SINCE WE KNOW IT IS LIKE PEELING AN OINION. IF THEY HAD NOT COMPLIED WITH WHAT IS ASKED OF THEM PRESENTLY I WOULD SAY THERE WOULD BE NOISE ABOUT IT!
I WOULD ONLY GUESS BASED ON ACTIONS, THAT "THE DEAL" IS UNDER WAY!
HOW DO I KNOW THAT? GLAD YOU ASKED. IN ONE WEEK WE WENT FROM SEEING RUSSIA STATING THEY WON'T TALK TO OPEC NATIONS ON OIL PRODUCTION, TO A WEEK LATER DOING A U-TURN!
DURING THAT SAME TIME WE SEE THE MOON WALKING OBAMA, ABANDON THE REBELS THAT OPPOSE ASSAD AND ALLOW IRAN AND RUSSIA TO COOPERATE EFFORTS IN SYRIA! NOW THAT AN OBVIOUS ACTION!
I SAY "THE DEAL" IS RIGHT ON SCHEDULE!
KEEP YOUR EYE ON ANYTHING WITH IRAN BECAUSE I BELIEVE THE TIMING OF WHAT WE SEEK IS DEFINITELY TIED TO "THE DEAL". NOBODY WANTS TO BE LEFT BEHIND IN THE MONETARY REFORM OR DAMAGE COULD BE DONE TO EACH OTHERS CURRENCY! DOC IMO
Dnari131: and now with CIPS going LIVE countries can trade DIRECT free of having to use the USD with that system with the Yuan being currency backing that system. The writing is on the wall...it's all happening one way or another imo...interesting times….especially when new options are on the table all around the globe taking notice...especially O lol
Thunderhawk: Backdoc Alert Exclusive: U.S. warns governments, bankers Iran sanctions still in place
The Obama administration has privately reminded foreign governments and U.S. bankers that sanctions against Iran remain in effect, cautioning against a rush by Western companies to invest in Iran's oil industry and other businesses until the country fully complies with the July nuclear agreement.
The U.S. State Department recently cabled a message, known as a demarche, to embassies around the world to reiterate that sanctions on Iran are still in place, diplomatic and government sources told Reuters on Friday.
The demarche stressed that sanctions on Iran would not be lifted until the International Atomic Energy Agency verifies that Tehran has complied with the terms of the deal.
"The United States wants to tell governments not to get ahead of themselves when dealing with Iran," said a London-based diplomatic source.
http://ift.tt/1RyYxds
Backdoc: WITH LAST QUARTER EAKING OUT A 6.4% GDP INCREASE, IT'S CLEAR TO SEE WHO THE NEW GLOBAL KID IN TOWN IS AT THE MOMENT!
THE SAME WILL BE TRUE OF IRAQ ONCE LAUNCHED, AS THEY EXPECT A 8% GROWTH RATE! BUT FOR NOW ITS CLEAR TO SEE THAT THE VND WILL BENEFIT FROM THE TPP BUT ALSO FROM THE ASEAN COUNTRIES!
IT SEEMS TO HAVE HIT THE BALL ON THE SWEET SPOT AND SHOULD FIND A HOME RUN IN THE GLOBAL TRADE AND SHIPPING ARENA!
WHAT DID I SAY PAPAJ?, RIGHT, TRADE AND SHIPPING WILL CONTROL CURRENCIES! WINK! WINK!
THE VND IS A "SHINING STAR FOR ALL TO SEE" !!
THERE GOES MY EARTH WIND AND FIRE SONGS AGAIN! LOVE EM! DOC IMO
Thunderhawk: Backdoc Alert: The Biggest Winner From TPP Trade Deal May Be Vietnam
Vietnam, whose low-wage economy relies on exports, is likely to be the biggest winner of the Trans-Pacific Partnership that slashes an estimated 18,000 tariffs among the dozen participating countries.
In a decade, the country’s gross domestic product will be boosted 11 percent, or $36 billion, as a result of the world’s largest trade pact. Exports may soar 28 percent in the period as companies move factories to the Southeast Asian country. Here’s what analysts and economists say about Vietnam’s economic prospects and challenges under the deal.
http://ift.tt/1Zhld7g
via Dinar Recaps - Our Blog http://ift.tt/1Or3Z3J
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