Henderson

Foreign Buying Plummets In Vancouver: Sales To Foreigners Crash 96%

Overseas buyers accounted for a paltry 0.7% of the C$6.5 billion of residential real estate purchases in August in Metro Vancouver; this represents a 96% plunge from the seven weeks prior, when foreigners were responsible for 16.5% of transactions by value.

Exposing How China "Cheats On Trade" In The Aluminum Industry

Trump has made international trade a cornerstone of his campaign with promises to go after countries like China which he has labeled a "currency manipulator" that "cheats on trade."  Here is a stunning look into China's effort to "cheat" on aluminum trade.

Frontrunning: August 22

  • Oil falls as China fuel exports jump, U.S. rigs rise (Reuters)
  • Fischer Signals 2016 Rate Hike With Economy Nearing Fed Goals (BBG)
  • Show of European unity: Merkel, Hollande, Renzi meet to discuss gameplan (Reuters)
  • Rainy Rio wraps up challenging Games on upbeat tropical note (Reuters)
  • Japan's Abe Plays Super Mario in Rio to Promote 2020 Tokyo Games (BBG)
  • Donald Trump the Mortgage Broker Was in Trouble From Moment One (BBG)

Germany Sells First Ever Negative-Yielding 10Y Treasury, Corporate Bonds

Just hours prior to Germany selling its first ever negative-yield 10Y bund, German railway operator Deutsche Bahn became the first non-financial company to sell a corporate bond with a negative yield in euros on Tuesday. . Joint leads BayernLB and Raiffeisen Bank set the final spread at plus 15bp as orders reached 840m. The deal priced with a negative 0.006% yield and a 0% coupon.

UK Fund Managers Start Dumping Properties, Admit "Real Estate Needed Re-Pricing"

The uncomfortable moment of truth has arrived for property funds in the UK (and their investors). Following the initial tumble of the post-Brexit dominoes - eight major funds so far either gating redemptions or forcing massive haircuts on to investors who want out - contagion concerns even woke up Britain's regulators (and central bank) as fears of Bear-Stearns-esque forced liquidations spread; and now, as The FT reports, that is what has just started.

First Post-Brexit Bailout Looms As Bank Of England Mulls UK Property Fund 'Measures'

Who could have seen that coming? While many have questioned the "suitability of daily-traded, open-ended property funds that are giving investors access to an illiquid asset," all the time the price is rising, no one wants to rock the boat. However, now that Brexit has rocked the boat, spoiling the party for UK property investors and asset managers alike, it's time for Carney to ride to the tax-payer-funded bailout rescue to ensure Bear Stearns 2.0 does not become Lehman 2.0...

European Stocks Storm Higher As Bank Fears Subside; US Futures Flat

After yesterday's afternoon surge in US stocks, facilitated by the "uncertain" Fed's FOMC Minutes, today the rest of global market are playing catch up with European stocks rebounding from one week lows, snapping the longest losing streak in three weeks, as well as Asia where most stock markets climbed, led by gains among energy producers as crude prices advanced, while a stronger yen weighed on Japanese shares.

Domino #7: In Dramatic Twist, UK Property Fund Cuts Value Of Its Assets By 17%

Instead of suspending trading and implicitly disallowing redemptions, giant fund manager Aberdeen has forced investors in its UK Property fund to take a 17% haircut wiping hundreds of millions of dollars off its value. The fund stated that shareholders wishing to redeem will do so at a reduced price in order to reflect the current market environment and the fact that short term trading in the property market has "relatively penal consequences." Which makes us wonder - is all this post-Brexit selling because UK property prices are 20% over valued?