Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-64820 Fri, 19 Jul 2019 17:48:28 GMT BlackRock: CEOs pulling supply chains out of China http://implode-explode.com/viewnews/2019-07-19_BlackRockCEOspullingsupplychainsoutofChina.html "We're hearing from CEOs that more and more supply chains are moving out of China right now, " Fink said on "Squawk Box." "People are not waiting, companies are not waiting to see what the outcome is."

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``More than 50 multinational companies are moving production out of China, including Apple, Nintendo and Dell, CNBC previously reported. Companies began announcing in May that they would move from China to Vietnam, as China and the U.S. stepped up tit-for-tat duties.

Brooks Running -- which is part of Warren Buffett's Berkshire Hathaway -- said in May it would be "predominantly in Vietnam by the end of the year," adding that about 8,000 jobs will move there from China.

Vietnam! So much better.

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iehi-feed-64815 Wed, 17 Jul 2019 21:39:29 GMT Foreign purchases of American homes plunge 36% as Chinese buyers flee http://implode-explode.com/viewnews/2019-07-17_ForeignpurchasesofAmericanhomesplunge36asChinesebuyersflee.html Challenging conditions in the U.S. housing market, along with tighter currency controls by the Chinese government, caused a stunning drop in foreign demand for American homes.

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The decline was due to a drop in the number and average price of purchases. Foreigners bought 183,100 properties with a total value of about $77.9 billion, down from 266,800 valued at $121 billion in the previous period.

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The Chinese were the leading buyers for the seventh consecutive year, purchasing an estimated $13.4 billion worth of residential property. Yet that was a 56% decline from the previous 12 months and comparatively the biggest percentage drop of all foreign buyers.

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iehi-feed-64807 Fri, 12 Jul 2019 12:33:32 GMT Facebook's Libra cryptocurrency project branded of ‘serious concern' by Federal Reserve http://implode-explode.com/viewnews/2019-07-12_FacebooksLibracryptocurrencyprojectbrandedofseriousconcernbyFede.html The social networking giant wants to debut the coin in 2020 once financial partnerships are cemented in place and the proposed wallets used to store Libra are established with the same security measures as today's traditional bank accounts.

However, the US Federal Reserve wants Facebook to put its foot on the brake until a number of concerns have been addressed.

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"Facebook has a couple billion-plus users, so I think you have for the first time the possibility of very broad adoption," Powell said. "It needs a careful look, so I strongly believe we all need to be taking our time with this."

Singapore, too, has concerns over the Libra project. Earlier this week, officials demanded that Facebook provide a more thorough explanation of Libra in order for the country to decide whether regulators need to investigate the proposal. 

However, Singapore's Monetary Authority of Singapore (MAS) said it is "open" to financial innovation, on the proviso that Facebook does not pose a threat to the local financial ecosystem.

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iehi-feed-64802 Thu, 11 Jul 2019 14:54:59 GMT NYC FiDi Supertall Condo Building Headed for Foreclosure Auction http://implode-explode.com/viewnews/2019-07-11_NYCFiDiSupertallCondoBuildingHeadedforForeclosureAuction.html iehi-feed-64780 Fri, 28 Jun 2019 19:02:01 GMT Zimbabwe Bans All Foreign Currency, De-Dollarizes, Returns To Dreaded Zim http://implode-explode.com/viewnews/2019-06-28_ZimbabweBansAllForeignCurrencyDeDollarizesReturnsToDreadedZim.html Zimbabwe's government has taken the controversial decision to ban local trading in foreign currencies, including the US dollar, with immediate effect.

It has also reintroduced the Zimbabwe dollar, which was abandoned because of hyperinflation in 2009 when the country mainly adopted the US dollar and the South African rand.

The move has shocked Zimbabweans, who have little faith in a local currency - the exchange rate when the Zimbabwe dollar was scrapped was Z$35 quadrillion to $1.

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iehi-feed-64769 Thu, 13 Jun 2019 16:11:29 GMT Japan Un-Publishes Government Report That Admitted Demographic and Pension Disaster http://implode-explode.com/viewnews/2019-06-13_JapanUnPublishesGovernmentReportThatAdmittedDemographicandPensio.html This year's ‘Annual Report on Ageing Society' plainly stated this reality; it was a brutally honest assessment of Japan's underfunded pension program.

The report went on to tell people that they needed to save their own money for retirement because the pension fund wouldn't be able to make ends meet.

This terrified a lot of Japanese workers and pensioners.

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Prime Minister Shinzo Abe apologized for the report, calling it "inaccurate and misleading."

And Finance Minister Taro Aso-- himself a pensioner at age 78 (though in typical Japanese form he looks like he's 45)-- simply un-published the report.

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iehi-feed-64768 Thu, 13 Jun 2019 13:37:03 GMT With One Move, New York Cuts Sprint and T-Mobile Down to Size http://implode-explode.com/viewnews/2019-06-13_WithOneMoveNewYorkCutsSprintandTMobileDowntoSize.html In December 2016, Masayoshi Son, the billionaire owner of Sprint, paid a visit to Trump Tower to meet the president-elect. Afterward, the two announced that Mr. Son had spontaneously decided to invest $50 billion in the United States and create 50,000 jobs. There was an unspoken but widely understood quid pro quo. The Trump administration would finally agree to do what the Obama administration had refused: allow a giant, anticompetitive merger of Sprint with T-Mobile, leaving just three gigantic wireless carriers in the country.

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But President Trump and Mr. Son had made a giant miscalculation, one the business press also missed. They forgot about the states.

This week, nine states and the District of Columbia, led by New York's attorney general, Letitia James, filed suit in federal court in New York to block the merger... if the states win in court, as they seem likely to, the merger is dead. Inadvertently, this corporate blunder has created a new role for the states in merger review: acting as a backstop in cases of gross dereliction of duty by the federal government.

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Companies tend to act in their financial self-interest, and where there is less competition, they feel much less need to invest money to keep customers (ask your local cable company). And internal documents, referred to in a partly redacted complaint filed as part of the lawsuit, appear to confirm that the carriers saw the merger less as an opportunity to do battle with China (always an unclear mission for a domestic phone company) but rather as an opportunity to raise prices. The companies' own economists predict the merger will cost subscribers at least $4.5 billion a year.

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iehi-feed-64761 Tue, 04 Jun 2019 21:30:13 GMT GOP lawmakers discuss vote to block Trump's new tariffs on Mexico, in what would be its first real act of defiance http://implode-explode.com/viewnews/2019-06-04_GOPlawmakersdiscussvotetoblockTrumpsnewtariffsonMexicoinwhatwoul.html ``Congressional Republicans have begun discussing whether they may have to vote to block President Trump's planned new tariffs on Mexico, potentially igniting a second standoff this year over Trump's use of executive powers to circumvent Congress, people familiar with the talks said.

The vote, which would be the GOP's most dramatic act of defiance since Trump took office, could also have the effect of blocking billions of dollars in border wall funding that the president had announced in February when he declared a national emergency at the southern border, said the people, who spoke on the condition of anonymity because the talks are private.

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Trump's plans to impose tariffs on Mexico -- with which the United States has a free-trade agreement -- rely on the president's declaration of a national emergency at the border... Congress passed [a blocking] resolution in March after Trump reallocated the border wall funds, but he vetoed it. Now, as frustration on Capitol Hill grows over Trump's latest tariff threat, a second vote could potentially command a veto-proof majority to nullify the national emergency, which in turn could undercut both the border-wall effort and the new tariffs.

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iehi-feed-64760 Tue, 04 Jun 2019 21:28:00 GMT Cuba travel ban redux: Trump admin. halts cruise ships, group tours from visiting http://implode-explode.com/viewnews/2019-06-04_CubatravelbanreduxTrumpadminhaltscruiseshipsgrouptoursfromvisiti.html The Trump administration on Tuesday ended the most popular forms of U.S. travel to Cuba, banning cruise ships and a heavily used category of educational travel in an attempt to cut off cash to the island's communist government.

Cruise travel from the U.S. to Cuba began in May 2016 during President Barack Obama's opening with the island. It has become the most popular form of U.S. leisure travel to the island, bringing 142,721 people in the first four months of the year, a more than 300% increase over the same period last year. For travelers confused about the thicket of federal regulations governing travel to Cuba, cruises offered a simple, one-stop, guaranteed-legal way to travel.

That now appears to be over.

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Collin Laverty, head of Cuba Educational Travel, one of the largest Cuba travel companies in the U.S., called the new measures "political grandstanding aimed at Florida in the run up to the 2020 elections."

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iehi-feed-64756 Sun, 02 Jun 2019 20:39:47 GMT Why the tariffs are bad news for America and for Donald Trump http://implode-explode.com/viewnews/2019-06-02_WhythetariffsarebadnewsforAmericaandforDonaldTrump.html iehi-feed-64752 Fri, 31 May 2019 14:06:11 GMT Tariffs, Mr. Trump's Miracle Cure http://implode-explode.com/viewnews/2019-05-31_TariffsMrTrumpsMiracleCure.html iehi-feed-64750 Thu, 30 May 2019 17:29:24 GMT Markets Have Gone Nuts: Junk-Bonds Are in Party Mood, Treasuries Clamor for Doom & Rate Cuts | Wolf Street http://implode-explode.com/viewnews/2019-05-30_MarketsHaveGoneNutsJunkBondsAreinPartyMoodTreasuriesClamorforDoo.html So now, the Treasury market with its inverted yield curve and declining yields on the long end is clamoring for rate cuts, and it's acting as if a recession were imminent or has already started. But the junk bond market is acting as if it were a big boom party, and risks are just minor company-specific issues, rather than overall economic issues.

But they cannot both be right. So what gives? ... if bond markets are seen as a predictor of the next downturn, then either the junk bond market or the Treasury market is wrong.

If the junk bond market is wrong, it would be set up for a painful reckoning.

But if the Treasury market -- and the Treasury yield curve -- is wrong, there could be an ugly snap-back in longer-term Treasury yields, and related interest rates, such as mortgage rates.

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iehi-feed-64749 Thu, 30 May 2019 17:26:08 GMT The Department of Energy is calling fossil fuels "molecules of freedom" and "freedom gas" http://implode-explode.com/viewnews/2019-05-30_TheDepartmentofEnergyiscallingfossilfuelsmoleculesoffreedomandfr.html iehi-feed-64748 Thu, 30 May 2019 17:24:16 GMT The Bond Market Is Trying to Tell Us Something (Worry) http://implode-explode.com/viewnews/2019-05-30_TheBondMarketIsTryingtoTellUsSomethingWorry.html ...falling yields are to the economy what barometric pressure is to the weather: When they drop it's often a sign that some kind of storm is coming.

And lately, they've been falling fast. Everywhere. In Japan, Britain, Australia, Germany and the United States. Long-term yields on government bonds around the world are hitting some of their lowest levels in recent years.

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Today, in the United States, a government bond that's due in three months will pay a higher rate than a government bond that is due in 10 years. These occurrences, called inversions, are rare, and they have grabbed Wall Street's attention for one simple reason: They have preceded every recession over the last 60 years (although some of those downturns took up to two years to materialize).

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Since the Fed did an abrupt about-face on raising interest rates, investors have been slowly increasing the odds they put on the Fed actually starting to cut rates. And according to the bond market, those cuts are almost a done deal.

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iehi-feed-64744 Wed, 29 May 2019 20:21:07 GMT 'Don't say we didn't warn you' - a phrase from China signals the trade war could get even worse http://implode-explode.com/viewnews/2019-05-29_DontsaywedidntwarnyouaphrasefromChinasignalsthetradewarcouldgete.html ``We advise the U.S. side not to underestimate the Chinese side's ability to safeguard its development rights and interests. Don't say we didn't warn you!" the People's Daily said in a commentary titled "United States, don't underestimate China's ability to strike back." The publication is the official newspaper of the Communist Party of China.

The phrase "Don't say we didn't warn you" was only used two other times in history by the People's Daily -- in 1962 before China's border war with India and ahead of the 1979 China-Vietnam War.

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iehi-feed-64740 Sat, 25 May 2019 14:10:55 GMT Judge blocks $1B in funding diverted under emergency order from being used to build border wall http://implode-explode.com/viewnews/2019-05-25_Judgeblocks1Binfundingdivertedunderemergencyorderfrombeingusedto.html iehi-feed-64739 Fri, 24 May 2019 17:21:56 GMT Dow heads for fifth straight negative week, longest losing streak since 2011 http://implode-explode.com/viewnews/2019-05-24_Dowheadsforfifthstraightnegativeweeklongestlosingstreaksince2011.html Stocks were headed for weekly losses on Friday as investors worry the U.S.-China trade war is hurting economic growth.

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U.S. durable goods orders dropped 2.1% last month amid a slowdown in exports and a buildup in inventories. This is the latest economic data set showing cracks in the economy while the world's largest economies engage in a trade war. IHS Markit said Thursday that U.S. manufacturing activity fell to a nine-year low.

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"The growing worries around a US/China elongated trade battle and its implications on the tech space are heavily weighing on the minds of both investors and the companies themselves caught in the cross hairs," Dan Ives, analyst at Wedbush Securities, wrote in a note to clients. "The ‘poster child' for the US/China trade wars continue to be Apple with the stock under heavy pressure as many competitors are yelling fire in a crowded theater around the potential China impact to Cupertino if this situation worsens.

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iehi-feed-64735 Fri, 24 May 2019 13:45:54 GMT Theresa May Meets Her Lonely End http://implode-explode.com/viewnews/2019-05-24_TheresaMayMeetsHerLonelyEnd.html Mrs. May, as the first prime minister after the 2016 Brexit referendum, could have minimized those difficulties by exposing that lie, and by seeking a Brexit that kept Britain's economy close to Europe's while honoring the decision to leave. She had the power to define what Brexit meant. From the start she could have sought a consensus across Parliament.

Tragically she chose instead to pander to the her party's right wing and its backers in the news media, promising to quit both the European Union's single market and its customs union, and ceaselessly repeating the disastrous idea that "no deal is better than a bad deal." Her decisions in those first months were calamitous; they framed Brexit as a sharp break from Europe and turned it from a problem to a disaster.

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iehi-feed-64727 Wed, 22 May 2019 12:58:08 GMT Iconic Waldorf Astoria hotel is part of China's US property fire sale - but don't expect a bargain http://implode-explode.com/viewnews/2019-05-22_IconicWaldorfAstoriahotelispartofChinasUSpropertyfiresalebutdont.html iehi-feed-64722 Sun, 19 May 2019 17:11:35 GMT Deutsche Bank Suppressed Trump, Kushner Money Laundering Alarms; Fired Whistleblower http://implode-explode.com/viewnews/2019-05-19_DeutscheBankSuppressedTrumpKushnerMoneyLaunderingAlarmsFiredWhis.html Anti-money laundering specialists at Deutsche Bank recommended in 2016 and 2017 that multiple transactions involving legal entities controlled by Donald J. Trump and his son-in-law, Jared Kushner, be reported to a federal financial-crimes watchdog.

The transactions, some of which involved Mr. Trump's now-defunct foundation, set off alerts in a computer system designed to detect illicit activity, according to five current and former bank employees. Compliance staff members who then reviewed the transactions prepared so-called suspicious activity reports that they believed should be sent to a unit of the Treasury Department that polices financial crimes.

But executives at Deutsche Bank, which has lent billions of dollars to the Trump and Kushner companies, rejected their employees' advice. The reports were never filed with the government.

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Ms. McFadden [a longtime anti-money laundering specialist in Deutsche Bank's Jacksonville office] said she was terminated last year after she raised concerns about the bank's practices. Since then, she has filed complaints with the Securities and Exchange Commission and other regulators about the bank's anti-money-laundering enforcement.

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Ms. McFadden said she had reviewed the transactions and found that money had moved from Kushner Companies to Russian individuals. She concluded that the transactions should be reported to the government -- in part because federal regulators had ordered Deutsche Bank, which had been caught laundering billions of dollars for Russians, to toughen its scrutiny of potentially illegal transactions.

... Typically, such a report would be reviewed by a team of anti-money laundering experts who are independent of the business line in which the transactions originated -- in this case, the private-banking division -- according to Ms. McFadden and two former Deutsche Bank managers.

That did not happen with this report. It went to managers in New York who were part of the private bank, which caters to the ultrawealthy. They felt Ms. McFadden's concerns were unfounded and opted not to submit the report to the government, the employees said.

Ms. McFadden and some of her colleagues said they believed the report had been killed to maintain the private-banking division's strong relationship with Mr. Kushner.

After Mr. Trump became president, transactions involving him and his companies were reviewed by an anti-financial crime team at the bank called the Special Investigations Unit. That team, based in Jacksonville, produced multiple suspicious activity reports involving different entities that Mr. Trump owned or controlled, according to three former Deutsche Bank employees who saw the reports in an internal computer system.

Some of those reports involved Mr. Trump's limited liability companies. At least one was related to transactions involving the Donald J. Trump Foundation, two employees said.

Deutsche Bank ultimately chose not to file those suspicious activity reports with the Treasury Department, either, according to three former employees. They said it was unusual for the bank to reject a series of reports involving the same high-profile client.

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