Tuesday, April 19, 2016

Economic News , Data & Views ( April 19 , 2016 ) Tuesday Items To Ponder ( 1. Wall Street Hits 2016 Highs , High Yield Spreads Hit 2016 Lows , Emerging Equities Up 20% Since January Lows , Credit Riding the Good Feelings Vibe Too - Happy Days Are Here Again. 2. Saudis To Borrow 10 BN From UFJ / HSBC & JPM- First International Debt Issuance In 25 Years. 3. Dutch Parliament Votes Against Revoking Earlier Approval For EU-Ukraine Association Agreement. 4. Refugee Crisis Updates. Greece In Focus - Creditor Talks , Economy , Domestic Politics , Protests. 5. Odds & Ends - Merkel's Popularity Fades After Comdian Bow To Turkey , Katy Bar The Door - Citizens Want Out Of EU , Libya Political Items De Jour , Deadly Kabul Blast As Spring Campaign Of Taliban Commences , Another Round Of Oil Production Rumors For All - OPEC Chatting Up June Talks - Because April Talks Went So well , 30 Year JGB Falls To Record Low Yield Of 0.335 %. )


Wall Street closed at 2016 highs. Dow rises 49.44 points (0.27%) to 18,053.60 as oil rebounds.

"Don't call it a comeback. I've been here for years." - S&P 500 (today's press conference on the new all-time high)

US High Yield Spreads at new YTD low of 646 bps. Peaked on Feb 11 at 887 bps. Cycle low was in June '14 at 335 bps.

Emerging Market equities up 20% since the Gundlach short recommendation at the Jan lows.

Credit Returns, YTD EM Local Currency: +12.7% EM in USD: +7.0% US High Yield: +4.9% US Leveraged Loans: +3.8%

Saudi Arabia to borrow $10bn from UFJ, HSBC, JPM. 1st international debt issuance in 25yrs.

Another example of a citizen referendum and voters being ignored.

Refugee Situation .....

accelerates payments to while carrying out deportations “riddled with abuse”

EU approves migrant aid as tensions run higher

UN chief slams 'deeply worrying' attacks on refugees

He's probably correct regarding the refugee crisis confronting Europe.

Greece starts letting migrants leave island camps

Turkey wants EU visa changes by June or migrant deal is off

Turkey reminding Europe it's not keeping its promises to Turkey....

again block railway line at on the Greece- border after yesterday's clashes with police


More firms seek Juncker Plan funding

Tue meetings of gov't w mission chiefs on education, energy & priv fund concluded, Wed meeting to focus on fiscal (via )

Paper foresees major pension cuts

Taxpayers’ bill to rise by 1.8 bln euros

Cash-strapped universities seek help with electricity bills

Theoharis quits Potami, to continue as independent MP

Forthnet: New Greek tax on pay TV ‘extremely harmful’

Private sector union plans action over pension reform

Greece expects Eurostat to confirm larger 2015 primary surplus

gov't spokeswoman said pension & personal income tax bills will be tabled for public consultation today.

gov't spokeswoman said pension bill includes incr in contributions for suppl pensions of 1pp for 1st 3 yrs & 0.5pp for next 3 yrs.

industrial turnover dives 15.1 pct in Feb on sharp drop in energy turnover

Creditors want legislation of contingent measures,timeline of implementation,more on pension cuts&non taxation limit

Odds & Ends ......

Merkel's overall approval rating at 45%-lower than depths of refugee crisis, down from 56% at start of April.

Brexit , Frexit , Germxit - does everyone want to leave the EU now ?

Recognised (by some states) parliament in Tobruk may vote today UN-backed government.

Rrecognition status: EU states recognise UN-backed GNA govt. Russia+UAE say only if Tobruk parliament votes yes. Other states unclear

Kabul police chief tells reporters at scene of blast: 28 killed, mostly civilians

Because June will be different than April....