Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-59659 Fri, 29 Apr 2016 03:23:49 GMT Exxon Mobil Loses 'AAA' Rating It Held Since Depression http://implode-explode.com/viewnews/2016-04-28_ExxonMobilLosesAAARatingItHeldSinceDepression.html iehi-feed-59623 Sun, 24 Apr 2016 00:32:14 GMT Greece's debt crisis looks familiar, but consequences may be worse http://implode-explode.com/viewnews/2016-04-23_Greecesdebtcrisislooksfamiliarbutconsequencesmaybeworse.html In fact, last summer's deal was less a cure-all for Greece's economic woes than a collective kicking of the can down the road. It avoided default by loaning Athens €13bn very quickly in exchange for a narrowly focused set of pension and tax reforms.

Even then, much of the heavy lifting was put off until the new programme's first quarterly review -- including the politically combustible issue of debt relief. As if to underline how ephemeral the deal was, the International Monetary Fund made clear it was not participating and would put off any decision on whether to join until it was certain Mr Tsipras, who had become the first leader of a developed country to default on an IMF payment, would live up to his commitments.

That first quarterly review has now stretched into two additional quarters, and the three-dimensional stand-off between Athens, Berlin and the IMF has only deepened.

While the IMF has demanded a restructuring of Greece's debts, Germany has suddenly decided that no debt relief is needed at all. Still, it has insisted the IMF participate anyway.

Meanwhile, the IMF has decided the agreement reached in July was badly constructed and should have lower budget surplus targets.

As for Mr Tsipras, he has returned to an angry, defensive crouch, railing against outside forces.

There is little political capacity in Athens to push through additional reforms or spending cuts even if Mr Tsipras wanted to.

"Europe's politicians have been distracted with other challenges and markets have become complacent about the inherent risks in Greece's new bailout," said Mujtaba Rahman, head of European analysis at the Eurasia Group risk consultancy. "But if Berlin doesn't revise its approach, this is going to blow up in everyone's faces."

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iehi-feed-59621 Sat, 23 Apr 2016 17:27:29 GMT Oil Megaprojects Dreamed Up a Decade Ago Still Coming Online, Limiting Production Decline http://implode-explode.com/viewnews/2016-04-23_OilMegaprojectsDreamedUpaDecadeAgoStillComingOnlineLimitingProdu.html iehi-feed-59617 Sat, 23 Apr 2016 17:01:24 GMT US-Saudi: Yesteryear days are gone forever http://implode-explode.com/viewnews/2016-04-23_USSaudiYesteryeardaysaregoneforever.html iehi-feed-59594 Wed, 20 Apr 2016 15:55:10 GMT Saudi $10 Billion Financial District Is Missing One Thing: Banks http://implode-explode.com/viewnews/2016-04-20_Saudi10BillionFinancialDistrictIsMissingOneThingBanks.html Not a single financial institution has agreed to take space in the 73 buildings the state is constructing at the King Abdullah Financial District, according to Waleed Aleisa, chief executive officer and project manager of the district at developer Al Ra'idah... "Saudi banks want to own their own buildings and want to pay as little as possible," Aliesa said in an interview. "They don't appreciate the brand as much as we see in the West, where banks will pay a premium to be in financial hubs."

As Saudi Arabia prepares for a post-oil future by boosting other industries, its plan to strengthen Riyadh's position as a financial center is plagued with delays, cost overruns and a failure to understand the needs of local banks, according to Aliesa. Attracting financial clients now will be challenging given that the work, about 70 percent finished, has largely ground to a halt and the developer is considering replacing the main contractor.''

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iehi-feed-59586 Tue, 19 Apr 2016 16:59:10 GMT Is Dilma's Impeachment Actually a Coup? http://implode-explode.com/viewnews/2016-04-19_IsDilmasImpeachmentActuallyaCoup.html iehi-feed-59584 Mon, 18 Apr 2016 19:59:46 GMT Forget Doha - Soaring oil demand in China to Rescue OPEC? http://implode-explode.com/viewnews/2016-04-18_ForgetDohaSoaringoildemandinChinatoRescueOPEC.html iehi-feed-59579 Mon, 18 Apr 2016 13:48:29 GMT Oil producers get worst possible outcome, destroy remaining credibility http://implode-explode.com/viewnews/2016-04-18_Oilproducersgetworstpossibleoutcomedestroyremainingcredibility.html Emerging Markets Pause Rally as Investors Weigh Doha Impasse.]]> iehi-feed-59571 Sun, 17 Apr 2016 13:35:56 GMT Oil freeze deal faces trouble as Saudi-Iran tensions spike http://implode-explode.com/viewnews/2016-04-17_OilfreezedealfacestroubleasSaudiIrantensionsspike.html iehi-feed-59559 Fri, 15 Apr 2016 13:43:58 GMT EU migrant relocation plan 'DEAD' as Poland REFUSES to take in mere 7,000 http://implode-explode.com/viewnews/2016-04-15_EUmigrantrelocationplanDEADasPolandREFUSEStotakeinmere7000.html Poland has been ordered to take in 7,000 asylum seekers as part of the project, which Britain is not involved in because it is outside the Schengen free movement zone.  But today the country's deputy foreign minister, Konrad Szymanski, told the newspaper Dziennik Gazeta Prawna his Government would refuse to accept a single migrant, adding that the scheme is already "dead". 

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Jaroslaw Kaczynski, leader of the conservative eurosceptic Law and Justice (PiS) which stormed to victory in the country's October general election, said last year that migrants could bring diseases and parasites into Poland.

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iehi-feed-59556 Thu, 14 Apr 2016 23:17:20 GMT No end in sight for energy pain at Wells Fargo, Bank of America http://implode-explode.com/viewnews/2016-04-14_NoendinsightforenergypainatWellsFargoBankofAmerica.html iehi-feed-59546 Wed, 13 Apr 2016 22:30:12 GMT Leading global coal miner Peabody files for bankruptcy http://implode-explode.com/viewnews/2016-04-13_LeadingglobalcoalminerPeabodyfilesforbankruptcy.html The Chapter 11 bankruptcy filing ranks among the largest in the commodities sector since energy and metal prices began to fall in mid-2014 as once fast-growing markets including China and Brazil started to slow.

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Debt troubles for Peabody date to its $5.1 billion leveraged buyout of Macarthur Coal in 2011, just when prices peaked for the metallurgical coal that the Australian company supplies to Asian steel mills.

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iehi-feed-59529 Tue, 12 Apr 2016 16:05:40 GMT Wells Fargo Misjudged the Risks of Energy Financing http://implode-explode.com/viewnews/2016-04-12_WellsFargoMisjudgedtheRisksofEnergyFinancing.html Wells Fargo's foray into oil shows how Wall Street misjudged the risks hidden in an esoteric type of energy financing long thought to be bulletproof. To fuel the growth of its energy desk, the bank targeted some of the least creditworthy borrowers in the shale patch, offsetting the risk by demanding oil and gas as collateral. This type of financing, known as reserves-based lending, was considered safe because banks historically got back every penny they loaned, even after default, according to a 2013 Standard & Poor's report.

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Some of those loans may now be underwater. JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley would need an additional $9 billion to cover souring oil and gas loans in the worst-case scenario, Moody's Investors Service said in an April 7 report. Lenders could lose 21 cents on the dollar on defaulted exploration and production loans, four times more than the historical average, Moody's said.

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The new guidelines mean banks will have to downgrade loans and set aside more cash to cover losses. Oil and gas producers owed Wells Fargo $9.6 billion at the end of 2015, about 55 percent of the bank's outstanding energy loans, company filings show. Most of that debt is backed by reserves, the bank has said.

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iehi-feed-59509 Sun, 10 Apr 2016 15:20:14 GMT Three Oil Majors Have Debt Ratings Cut by Moody's on Price Rout http://implode-explode.com/viewnews/2016-04-10_ThreeOilMajorsHaveDebtRatingsCutbyMoodysonPriceRout.html iehi-feed-59500 Fri, 08 Apr 2016 18:01:36 GMT The demise of the dollar looms as non-dollar oil trading plans solidify http://implode-explode.com/viewnews/2016-04-08_Thedemiseofthedollarloomsasnondollaroiltradingplanssolidify.html In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan and France -- to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.''

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

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Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East.

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Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.

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iehi-feed-59481 Wed, 06 Apr 2016 17:03:21 GMT As Dollar Falls, World Perks Up http://implode-explode.com/viewnews/2016-04-06_AsDollarFallsWorldPerksUp.html The dollar peaked in January, while stocks and junk bonds bottomed out in mid-February. Several factors played a part: Oil prices stabilized on expected supply cuts and investors began exiting a crowded bet on a rising dollar.

But the most important factor was the Fed's decision to dial back on its plan to raise interest rates a full percentage point this year. On March 16 it signaled it would raise rates only by half that much, if that. This was driven not by any change in the U.S. economic data but by a desire to pre-empt some of the Fed's newfound fears.

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It would be too strong to call this a new "Fed put," a commitment akin to a financial derivative that protects investors against losses. Nonetheless, the Fed's new posture suggests a greater willingness to risk inflation breaching its 2% target in order to prevent worse scenarios for the global economy. That's a new--and invaluable--safety net.

Hmm... sounds like this should be called a new "Fed Put"....

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iehi-feed-59454 Mon, 04 Apr 2016 18:43:12 GMT China Unveils Proposal for $50 Trillion Clean Global Electricity Network http://implode-explode.com/viewnews/2016-04-04_ChinaUnveilsProposalfor50TrillionCleanGlobalElectricityNetwork.html iehi-feed-59445 Sun, 03 Apr 2016 18:46:25 GMT Oil boom 'too much of a good thing': Goldman http://implode-explode.com/viewnews/2016-04-03_OilboomtoomuchofagoodthingGoldman.html iehi-feed-59443 Sun, 03 Apr 2016 18:41:39 GMT Russian Oil Output Rises to Record as Freeze in Doubt http://implode-explode.com/viewnews/2016-04-03_RussianOilOutputRisestoRecordasFreezeinDoubt.html iehi-feed-59441 Sun, 03 Apr 2016 17:06:16 GMT The Saudi Arabia Debt Crisis Just Got $9.4 Billion Worse http://implode-explode.com/viewnews/2016-04-03_TheSaudiArabiaDebtCrisisJustGot94BillionWorse.html