• Tag Archives France
  • How Corporate Zombies Are Threatening The Eurozone Economy

    The recovery in Eurozone growth has become part of the synchronised global growth narrative that most investors are relying on to deliver further gains in equities as we head into 2018. However, the ‘Zombification’ of a chunk of the Eurozone’s corporate sector is not only a major unaddressed structural problem, but it’s getting worse, especially in…you guessed it… Italy and Spain. According to the WSJ.
    The Bank for International Settlements, the Basel-based central bank for central banks, defines a zombie as any firm which is at least 10 years old, publicly traded and has interest expenses that exceed the company’s earnings before interest and taxes. Other organizations use different criteria. About 10% of the companies in six eurozone countries, including France, Germany, Italy and Spain are zombies, according to the central bank’s latest data. The percentage is up sharply from 5.5% in 2007. In Italy and Spain, the percentage of zombie companies has tripled since 2007, the Organization for Economic Cooperation and Development estimated in January. Italy’s zombies employed about 10% of all workers and gobbled up nearly 20% of all the capital invested in 2013, the latest year for which figures are available. The WSJ explains how the ECB’s negative interest rate policy and corporate bond buying are keeping a chunk of the corporate sector, especially in southern Europe on life support. In some cases, even the life support of low rates and debt restructuring is not preventing further deterioration in their metrics. These are the true ‘Zombie’ companies who will probably never come back from being ‘undead’, i.e. technically dead but still animate. Belatedly, there is some realisation of the risks.

    This post was published at Zero Hedge on Nov 17, 2017.


  • Stockman: US Entry Into World War I Was A Disaster

    103 years ago, in 1914, the Federal Reserve opened-up for business as the carnage in northern France was getting under way.
    ***
    And it brought to a close the prior magnificent half-century era of liberal internationalism and honest gold-backed money.
    The Great War was nothing short of a calamity, especially for the 20 million combatants and civilians who perished for no reason discernible in any fair reading of history, or even unfair one.
    Yet the far greater calamity is that Europe’s senseless fratricide of 1914-1918 gave birth to all the great evils of the 20th century – the Great Depression, totalitarian genocides, Keynesian economics, permanent warfare states, rampaging central banks and the follies of America’s global imperialism.

    This post was published at Zero Hedge on Nov 13, 2017.


  • Doug Noland: “Money” on the Move

    This is a syndicated repost courtesy of Credit Bubble Bulletin . To view original, click here. Reposted with permission.
    It’s been awhile since I’ve used this terminology. But global markets this week recalled the old ‘Bubble in Search of a Pin.’ It’s too early of course to call an end to the great global financial Bubble. But suddenly, right when everything looked so wonderful, there are indication of ‘Money’ on the Move. And the issue appears to go beyond delays in implementing U. S. corporate tax cuts.
    The S&P500 declined only 0.2%, ending eight consecutive weekly gains. But the more dramatic moves were elsewhere. Big European equities rallies reversed abruptly. Germany’s DAX index traded up to an all-time high 13,526 in early Tuesday trading before reversing course and sinking 2.9% to end the week at 13,127. France’s CAC40 index opened Tuesday at the high since January 2008, only to reverse and close the week down 2.5%. Italy’s MIB Index traded as high as 23,133 Tuesday before sinking 2.5% to end the week at 22,561. Similarly, Spain’s IBEX index rose to 10,376 and then dropped 2.7% to close Friday’s session at 10,093.
    Having risen better than 20% since early September, Japanese equities have been in speculative blow-off mode. After trading to a 26-year high of 23,382 inter-day on Thursday, Japan’s Nikkei 225 index sank as much as 859 points, or 3.6%, in afternoon trading. The dollar/yen rose to an eight-month high 114.73 Monday and then ended the week lower at 113.53. From Tokyo to New York, banks were hammered this week.

    This post was published at Wall Street Examiner by Doug Noland ‘ November 11, 2017.


  • Stocks and Precious Metals Charts – Just Stand

    “In our own times we see that politicians raised under neoliberalism are unwilling and unable to effectively use real Keynesian policies: they can’t do stimulus, when they try, they give the money primarily to the rich.
    They grew to power by being neoliberals; faced with new times they cannot change. In France we saw the main center-left party (really a neoliberal party) implode because it would just not change, and throughout the West center-left neoliberal parties are dying for just this reason. The world has changed, the people who run those parties cannot change…
    Our societies have failed to run themselves acceptably since 2008, and the youngs have no attachment to the status quo since it never ever worked for them. Change is thus not only possible, it is now inevitable.”
    Ian Welsh, When People and Societies Change
    Stocks were rallying off the jobs report.
    The American dream is now a nation of low paid bartenders and waitresses, living from paycheck to paycheck, and preyed upon by corporate behemoths in healthcare, housing, and finance.

    This post was published at Jesses Crossroads Cafe on 03 NOVEMBER 2017.


  • “Sacre Beurre” – Global Butter Prices Triple As Shortages Hit France

    It’s not received much attention, but global butter prices have roughly tripled since Summer 2016 as production cuts have hit supply…
    According to Bloomberg, global butter prices have almost tripled to 7,000 euros ($8,144) a ton from 2,500 euros in 2016, according to Agritel, an Paris-based farming consultancy. In Europe, prices peaked at about 6,500 euros a ton in September, the highest since the European Commission began collecting such data in 2000… The problem can be traced to the end of (EU) milk-production quotas in April 2015 that led to a glut early last year in Europe, and a drastic drop in prices. This prompted production cuts by spring this year. The reduction coincided with other global milk products exporters curbing their own output: the U. S. stopped selling abroad to address higher domestic demand while New Zealand, the world’s biggest dairy exporter, experienced lower production due to droughts, Pierre Begoc, an Agritel analyst, said in a phone interview.

    This post was published at Zero Hedge on Oct 30, 2017.


  • Russia Buys 34 Tonnes Of Gold In September

    – Russia adds 1.1 million ounces to reserves in ongoing diversification from USD
    – 34 ton addition brings Russia’s Central Bank holdings to 1,779t; 6th highest
    – Russia’s gold reserves are at highest point in Putin’s 17-year reign
    – Russia’s central bank will buy gold for its reserves on the Moscow Exchange
    – Russia recognises gold’s role as independent currency and safe haven
    Editor: Mark O’Byrne
    Prior to World War I Russia held the world’s third largest gold reserves, behind America and France. In the subsequent Russian Revolution, civil war and the rise of communism, they dropped down the table of nations with large gold reserves and the U. S. became the largest holder of national gold reserves.
    In recent years, since 2007, an increasingly powerful and assertive Russia has worked hard to reprise its place in the world’s top gold reserve rankings, quadrupling its purchases in the period to June this year.
    A 34 ton purchase of gold (1.1 million ounce) in September has put Russia firmly back in the golden spotlight. The country now holds 1,779 tons of gold, placing it sixth in the world and just behind China.

    This post was published at Gold Core on October 27, 2017.


  • Gold Will Be Safe Haven Again In Looming EU Crisis

    – Gold will be safe haven again in looming EU crisis
    – EU crisis is no longer just about debt but about political discontent
    – EU officials refuse to acknowledge changing face of politics across the union
    – Catalonia shows measures governments will use to maintain control
    – EU currently holds control over banks accounts and ability to use cash
    – Protect your savings with gold in the face of increased financial threat from EU
    Editor: Mark O’Byrne
    ***
    When we talk about the Eurozone crisis we are usually referring to the Eurozone debt crisis. According to the OECD the debt crisis of 2011 was the world’s greatest threat.
    In the years that followed, Germany, France and the UK led EU members in their efforts to stave off debt defaults from the likes of Ireland, Portugal, Italy, Spain and, of course, Greece. This was partly in order to protect the German, French and UK banks who had lent irresponsibly into the periphery EU nations and were very exposed.

    This post was published at Gold Core on October 26, 2017.


  • Catalonia is not Just About Spain – it is About Brussels!!

    There are of course those in Spain who side against Catalonia. Others write who are in Catalonia yet disagree with the separatists. Let me make this very clear. It is the government of Rajoy who has acted abusively, and this is all about protecting Brussels and federalizing Europe behind everyone’s back.
    Rajoy should have allowed a fair referendum and then negotiate if they won. Canada allowed two refferendums in Quebec and Britain allowed the Scottish referendum. This nonsense that the Constitution does not allow any democratic process is pure TYRANNY. That was the same argument in America by England and in France that led to revolution.

    This post was published at Armstrong Economics on Oct 23, 2017.


  • Macron’s Call to Federalize Europe

    France’s President Emmanuel Macron is calling for a radical restructuring of the whole EU. Macron has presented his map for the EU into 2024. He is proposing that the Eurozone budget must include a joint force for military operations. Macron intends to finance this new budget with its tax – the ‘EU tax’ he calls it.
    Macron has looked at the numbers and see that France will go the way of Greece if something is not changed and soon. Macron hopes just to throw all the rotten eggs into one basket and hope nobody will notice. It’s the Three Musketeers – All for one; One for All just times 28.
    Germany is still dominated by its misunderstanding of the Hyperinflation. Former Greek finance minister Yanis Varoufakis supports Macron’s federalist proposals on the euro single currency but believes only a real threat could make Germany budge on the issue. It has been Germany that opposed the consolidation of the debts to form the Euro. They are trying to remain isolated in their austerity posture refusing to budge on the debt consolidation, while at the same time they want the single currency to facilitate German exports eliminating foreign exchange risk among other members. They just cannot have it both ways.

    This post was published at Armstrong Economics on Oct 22, 2017.


  • A WORLD OF LIES BUT GOLD WILL REVEAL THE TRUTH

    The dollar is dead but the world doesn’t know it.
    It has been a slow death and the final stages will be very painful for the US and for the rest of the world. The US empire is finished financially and militarily.
    NIXON WAS CONVICTED FOR THE WRONG CRIME
    It all started with the establishment of the Fed in 1913 and escalated with Nixon. For anyone old enough to still remember him, they will think about the Watergate scandal. This was corruption and bribery at the highest level in the Nixon administration, including the president himself. In order to avoid impeachment which would have been a certainty, Nixon resigned. All this broke out 11 months after Nixon’s disastrous decision to take away the gold backing of the dollar on Aug 15, 1971. Nixon should not have been impeached for the Watergate scandal but for his decision to end the gold backing of the dollar. That disastrous decision is what will lead to a total collapse of the world economy and the financial system, starting sooner than anyone can imagine.
    DE GAULLE UNDERSTOOD GOLD
    By 1971, the US had already been running chronic budget deficits for 10 years consecutively. At the end of the 1960s, President Gaulle of France realised what would happen to the dollar and demanded payment in gold instead which was his right. This led to Nixon closing the gold window since this was the only way that the US could continue to live above its means. And this is exactly what the US has done for more than half a century now. Not only have they run a real budget deficit every year since 1961 but also a trade deficit every year since 1975.

    This post was published at GoldSwitzerland on October 19, 2017.


  • Left Opposes Lowing Taxes on Rich in France to Bring them Home

    An online petition from the left in France is demanding that Macrone tell the ‘truth’ about the tax rate the top 100 French will be taxed. They refuse to look at economics and insist that whatever wealth the rich have really belongs to them. Naturally, they have already gathered more than 10,000f French signatures demanding ‘truth’ from their government. They want to know the plans for a far-reaching abolition of the rich tax. It does not matter that so many have left France and will not return. That is always irrelevant to the left.

    This post was published at Armstrong Economics on Oct 20, 2017.


  • Preening Politicians & Europe’s Lost Testicles

    Authored by Robert Gore via Straight Line Logic blog,
    Disarmed and docile Europeans pose no meaningful threat to their governments’ depredations.
    All sorts of reasons have been advanced for declining birthrates. SLL spotlights Europe as an advanced case and offers a hypothesis: its testicles have gone missing.
    What does it do to a continent when a country 3,000 miles and an ocean away strikes the decisive blows in two of its cataclysmic wars? What does it do to that continent when that distant power assumes control over much of its defense? At a primal level, the very essence of manhood is the ability to defend one’s self and loved ones. Perhaps ceding responsibility for doing so is not emasculation, but it made Europe the little brother who must rely on big brother to fight his battles.
    Naturally, big brother calls the tune. During the Cold War, that meant accepting one’s place under the US defense umbrella and toeing the US line on the Soviet Union. Only French President Charles de Gaulle challenged US domination, and that was more show than substance. With a nuclear arsenal and geographic proximity, the Soviet Union posed an existential threat to Europe, even more than it did to the US. If the Soviet Union had invaded during the de Gaulle era, France would have quickly rejoined a US-led alliance.

    This post was published at Zero Hedge on Oct 19, 2017.


  • Meet New Zealand’s New Prime Minister As Kiwi Tumbles

    Labour leader, Jacinda Ardern, will be New Zealand’s next Prime Minister after winning the support of the New Zealand First Party to form a coalition government. Labour with NZ First and the Greens will have 63 of the 120 parliamentary seats versus the National Party with 56. At 37, Ardern joins a global wave (France, Austria) of young politicians being appointed to key leadership roles, and will be the country’s youngest Prime Minister and the third woman to hold the post. New Zealand’s Labour Party had not been in power for nine years, after three terms in power for the National Party.
    Twenty-six days after the election, the leader of New Zealand First, Winston Peters, announced his party was backing Labour live in an eagerly -awaited television announcement.

    This post was published at Zero Hedge on Oct 19, 2017.


  • $1 Trillion In Liquidity Is Leaving: “This Will Be The Market’s First Crash-Test In 10 Years”

    In his latest presentation, Francesco Filia of Fasanara Capital discusses how years of monumental liquidity injections by major Central Banks ($15 trillion since 2009) successfully avoided a circuit break after the Global Financial Crisis, but failed to deliver on the core promise of economic growth through the ‘wealth effect’, which instead became an ‘inequality effect’, exacerbating populism and representing a constant threat to the status quo.
    Fasanara discusses how elusive, over-fitting economic narratives are used ex-post to legitimize the “fake markets” – as defined previously by the hedge fund – induced by artificial flows. Meanwhile, as an unintended consequence, such money flows produced a dangerous market structure, dominated by both passive-aggressive investment vehicles and a high-beta long-only momentum community ($8 trn and rising rapidly), oftentimes under the commercial disguise of brands such as behavioral Alternative Risk Premia, factor investing, risk parity funds, low vol / short vol vehicles, trend-chasing algos, machine learning.
    However as Filia, and many others before him, writes, only when the tide goes out, will we discover who has been swimming naked, and how big of a momentum/crowding trap was built up in the process. The undoing of loose monetary policies (NIRP, ZIRP), and the transitioning from ‘Peak Quantitative Easing’ to Quantitative Tightening, will create a liquidity withdrawal of over $1 trillion in 2018 alone. The reaction of the passive community will determine the speed of the adjustment in the pricing for both safe and risk assets.

    This post was published at Zero Hedge on Oct 18, 2017.


  • Neck and Neck: Russian and Chinese Official Gold Reserves

    Official gold reserve updates from the Russian and Chinese central banks are probably one of the more closely watched metrics in the gold world. After the US, Germany, Italy and France, the sovereign gold holdings of China and Russia are the world’s 5th and 6th largest. And with the gold reserves ‘official figures’ of the US, Germany, Italy and France being essentially static, the only numbers worth watching are those of China and Russia.
    The Russian Federation’s central bank, the Bank of Russia, releases data on its official gold holdings in the Bank’s monthly ‘International Reserves and Foreign Currency Liquidity’ report which is published towards the end of the third week of each month, and which confirms gold reserve changes as of the previous month-end.
    The Chinese State releases data on its official gold holdings via a monthly ‘Official Reserve Assets’ report published by the State Administration of Foreign Reserves (SAFE) that is uploaded within the Forex Reserves pages of the SAFE website. This gold is classified as held by the Chinese central bank, the People’s Bank of China (PBoC). The SAFE report is published during the 2nd week of each month, reporting on the previous month-end.
    In both reports, official gold reserves (i.e. monetary gold) are specified in both US Dollars and fine troy ounces. Monetary gold is gold that is held by a central bank or other monetary authority as a reserve asset on a central bank’s balance sheet.

    This post was published at Bullion Star on 16 Oct 2017.


  • Germans Have Quietly Become the World’s Biggest Buyers of Gold

    When I talk about Indians’ well-known affinity for gold, I tend to focus on Diwali and the wedding season late in the year. Giving gifts of beautiful gold jewelry during these festivals is considered auspicious in India, and historically we’ve been able to count on prices being supported by increased demand.
    Another holiday that triggers gold’s Love Trade is Dussehra, which fell on September 30 this year. Thanks to Dussehra, India’s gold imports rose an incredible 31 percent in September compared to the same month last year, according to GFMS data. The country brought in 48 metric tons, equivalent to $2 billion at today’s prices.
    As I’ve shared with you many times before, Indians have long valued gold not only for its beauty and durability but also as financial security. Indian households have the largest private gold holdings in the world, standing at an estimated 24,000 metric tons. That figure surpasses the combined official gold reserves of the United States, Germany, Italy, France, China and Russia.
    A New Global Leader in Gold Investing?
    But as attracted to gold as Indians are, they weren’t the world’s biggest investors in the yellow metal last year, and neither were the Chinese. According to a new report from theWorld Gold Council (WGC), that title shifted hands to Germany in 2016, with investors there ploughing as much as $8 billion into gold coins, bars and exchange-traded commodities (ETCs). This set a new annual record for the European country.

    This post was published at GoldSeek on Thursday, 12 October 2017.


  • Spike In Airborne Radioactivity Detected In Europe, Source Located In Southern Urals

    In late February, concerns about a potential nuclear “incident”, reportedly in the vicinity of the Arctic circle, emerged when trace amounts of radioactive Iodine-131 of unknown origin were detected in January over large areas in Europe, according to a report by the Institute for Radiological Protection and Nuclear Safety, the French national public expert in nuclear and radiological risks. And while Norway was the first to measure the radioactivity, France was the first to officially inform the public about it.
    “Iodine-131 a radionuclide of anthropogenic origin, has recently been detected in tiny amounts in the ground-level atmosphere in Europe. The preliminary report states it was first found during week 2 of January 2017 in northern Norway. Iodine-131 was also detected in Finland, Poland, Czech Republic, Germany, France and Spain, until the end of January”, the IRSN wrote in a press release.

    This post was published at Zero Hedge on Oct 6, 2017.


  • The US government lost nearly $1 trillion in FY2017. Again

    There was a time, centuries ago, that France was the dominant superpower in the world.
    They had it all. Overseas colonies. An enormous military. Social welfare programs like public hospitals and beautiful monuments.
    Most of it was financed by debt.
    France, like most superpowers before (and after), felt entitled to overspend as much as they wanted.
    And their debts started to grow. And grow.
    By the eve of the French revolution in 1788, the national debt of France was so large that the government had to spend 50% of tax revenue just to pay interest to its lenders.
    Yet despite being in such dire financial straits the French government was still unable to cut spending.
    All of France’s generous social welfare programs, plus its expansive military, were all considered untouchable.

    This post was published at Sovereign Man on October 6, 2017.


  • EU is becoming a No-Go-Zone for Business

    The European Union has ordered AMAZON to pay about 250 million euros ($294 million) in taxes to Luxembourg, saying it was given an unfair tax advantage from 2003 because it paid less than they would have paid in France or Germany. The EU is retroactively changing taxes. This is a sure fire way of telling companies to get out of Europe. If no matter where you build your plant, if you would have been paying a higher tax in France or Germany, the EU says that is not fair and you have to pay more in BACK TAXES.

    This post was published at Armstrong Economics on Oct 6, 2017.


  • Spain Rebounds, Pound Tumbles In Quiet Session Ahead Of ECB Minutes, Fed Speakers

    Global markets came off record highs, trading subdued, with US index futures unchanged as traders are unwilling to make major moves ahead of today’s ECB minutes and tomorrow’s NFP release, and before speeches by central bankers including SF Fed President John Williams and the potential next Fed chair Jerome Powell, as well as ECB executive board members Peter Praet and Benoit Coeure.
    There was a modest relief rally in Spain, where the main IBEX 30 stock index traded up close to 1%, with banks across the region seeing some bullish performance as participants continue to guess whether or not Catalonia will declare independence next week as Economy Minister Luis de Guindos poured cold water on Catalonia’s bid for independence. A well-received Spanish bond auction, the first since the referendum and which saw the highest 10-year bid-to-cover ratio since February, added to the optimism. Other auctions out of France and the UK were well digested across markets. The Spanish-German spread posted its first tightening this month.

    This post was published at Zero Hedge on Oct 5, 2017.