Fitch

Reuters Goes To China, Discovers "Ghost Collateral"

"The first time I went, I saw the steel,” recalled Wang, an attorney at Beijing DHH Law Firm, which represents the Shanghai branch of CITIC. "Afterwards, the banker got in contact with me and said, ‘The pledged assets are no longer there"

Gymboree Misses Interest Payment, Prepares For Bankruptcy Filing

Distressed children's clothing retailer Gymboree took the first step to a Chapter 11 bankruptcy filing after it elected not to make the interest payment due June 1 on its outstanding 9.125% notes due in 2018, Debtwire reported, with Moody's downgrading the company to D from CC on Friday, as it does not expect Gymboree to make the interest payment.

Fitch Warns Biggest Threats To The Dollar's Global Supremacy Are At Home

Two pieces of legislation currently working their way through Congress are the Federal Reserve Transparency Act (FRTA) and the Financial Choice Act (FCA). Fitch warns that these transparency-seeking bills, if implemented, would diminish the appeal of the dollar as a reserve currency over time.

Catalonia Threatens Spain With "Financial Bloodbath"

Catalonia’s independence would set off Spain’s debt time-bomb... It would mean the loss of 25-30% of Spain’s gross domestic product (GDP), says Spain’s Minister of the Economy, Luis de Guindos. And that’s something the government “will never let happen.”

China Downgrade Forgotten As Asia Closes Higher, Futures Flat Ahead Of Fed Minutes

Not even last night's Moody's credit downgrade of China - the first since 1989 - could dent the global stock rally which has pushed global stock prices to all time highs. After initially sliding, regional stocks and emerging Asian currencies pared early losses following the unexpected downgrade of China, taking their cue from the "sudden reversal" of the Shanghai Composite Index, which some speculated saw the latest intervention of the "national team."

Frontrunning: May 11

  • After Comey, Russia Probe Escalates (WSJ)
  • Comey Firing Distracts Trump White House, Risking His Agenda (BBG)
  • Trump wanted to preview Comey's Senate testimony (Reuters)
  • Traders Ask What Will Rouse Markets When Trump and Twitter Can't (BBG)
  • EU Raises Growth Forecasts but Cites Threats From Brexit, Trump (WSJ)

Europe, US Futures Slip Despite Brent Bouncing Back To $51

Asian stocks rise lifted by commodity names; European equites trade mostly lower but with little in the way of conviction or firm direction while the Italian banking index is at the highest level in a year following domestic earnings; S&P index futures are modestly in the red after the cash market closed at a record high Wednesday and investors prepared for earnings from retailers.