JUL 21 2021 ND SIT EC y POL Part 1
ND denounce-neoliberal debacle y propone State-Social + Capit-compet in Eco
ZERO HEDGE ECONOMICS
Neoliberal globalization is over. Financiers know it, they documented with graphics
Nasty econ games with China didn’t work & won’t work in the future
EVERGRANDE'S LIQUIDITY CRISIS BECOMES EVER GRANDER
An uncontrolled default by Evergrande would likely catastrophic repercussions for China’s financial system, eroding confidence in other highly leveraged property companies, shadow lenders and potentially even some banks
The melting ice cube that is Evergrande (which just one year ago vowed it would magically pivot into electric cars and would become China's "Largest, Most Powerful" EV maker in a few years) had a close encounter with a blowtorch earlier this week when as we noted, the company's shares crashed below liquidation level (i.e., the value of its standalone assets), trading at just 62% of book value following Monday’s plunge, the lowest ever value.
See Chart:
https://cms.zerohedge.com/s3/files/inline-images/evergrande%20below%20boow_0.jpg?itok=DjKWHZMR
Meanwhile, its Hong Kong-traded shares which trade under the (not so) lucky ticker 3333.HK, have lost more than half their value from YTD highs, The wide deviation from its market value suggests shareholders are pricing in a significant decline in the assets’ earnings power. In terms of dollar amounts, its shares have lost $15 billion in value since this year’s January high.
See Chart:
3333.HK
https://cms.zerohedge.com/s3/files/inline-images/3333%20hk.jpg?itok=mvnxeu87
As we noted a few days ago, the collapse in the valuation of the shares is a problem for a heavily indebted company with narrowing options for raising funds. It’s not just its own shares: subsidiary Evergrande Property Services has lost about $17 billion in value since its February high, while Evergrande New Energy Vehicle is down more than $60 billion in the period. Evergrande controls more than 60% of both firms. The value of Hengten Networks - a Hong Kong-listed internet services provider in which Evergrande has a 38% stake - has dropped about $15 billion.
Some of its affiliates missed payments earlier this year, and Caixin said authorities are probing Evergrande founder Hui Ka Yan's relationship with Shengjing Bank. Evergrande holds a 36% stake in the bank, and Caixin said the bank lent up to $20 billion to Evergrande via direct and indirect channels.
The reason why the company has been hammered is simple: as a result of Beijing's strict deleveraging demands targeting the housing developer sector (hoping to prevent a housing bubble), Evergrande's cash has been shrinking fast, and it's getting worse by the day as the company has entered a classical liquidity run (amid ongoing confusion whether Beijing will bail out the company in a worst case scenario).
After the shares plunged 16% on Monday a Chinese court froze a $20 million bank deposit, a city in Hunan province halted sales at two of the company’s residential projects, alleging the developer didn’t properly handle funds. The suspension will last until Oct. 13 and Evergrande can’t use funds currently deposited in supervised bank accounts, according to a statement.
Things went from bad to worse on Wednesday, when four of Hong Kong's top banks - HSBC Holdings Plc, Bank of China’s Hong Kong unit, Standard Chartered and Bank of East Asia - stopped providing mortgages to buyers of China Evergrande Group’s unfinished residential properties in Hong Kong, the latest sign of dwindling confidence in the developer’s financial strength.
The report sparked fresh worries over the company's ability to pull off a plan to cut debt by half before the end of 2022. Under its turnaround plan dubbed "high growth, scale control and debt reduction,'' Evergrande cut total borrowings to 716.5 billion yuan ($110 billion) by the end of last year from a peak of 875 billion yuan in March 2020, according to the developer's annual report. It targets a further cut of 150 billion yuan this year.
As Bloomberg notes, the unusual move by the four Hong Kong mortgage lenders to act in unison underscores how dramatically perceptions of Evergrande have deteriorated in recent weeks. And it's not just the company's stock that is getting hammered: the company’s 2025 dollar note sank by about 6 cents on Wednesday to 49 cents on the dollar, an all time low, and suggesting investors are bracing for a potential default absent a Beijing bailout of course.
See Chart:
Evergrande dollar notes tumble to record lows
https://cms.zerohedge.com/s3/files/inline-images/evergrande%20notes%20record%20low.jpg?itok=iSsQXDXV
An uncontrolled default by Evergrande - one where Beijing does not step in - would likely catastrophic repercussions for China’s financial system, eroding confidence in other highly leveraged property companies, shadow lenders and potentially even some banks, which is why Beijing will never allow it. Still, the status quo is unlikely to persist - officials from China’s top financial regulator told Evergrande founder Hui Ka Yan at the end of June that he should solve his company’s debt problems as quickly as possible, emphasizing the need to avoid major economic shocks.
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SOURCE: https://www.zerohedge.com/markets/evergrandes-liquidity-crisis-becomes-ever-grander
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ENTERING THE WORST SEASONAL PERIOD OF THE YEAR, AND 10 OTHER REASONS WHY GOLDMAN BRACES FOR AN AUGUST CORRECTION [ see Chart ]
If August outflows actually happen, I think tech underperforms cyclical value reopen given high concentration and largest passive impact. Once we see the first outflow in August, this will be the macro trigger for a tactical short. Stay
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AMERICAN LIFE EXPECTANCY SEES BIGGEST DROP SINCE WWII, ERASING 20 YEARS OF PROGRESS
"Getting back to where we were before the pandemic is still a very bad place."
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THE FALLACY OF CLIMATE FINANCIAL RISK
The new push for climate-related financial regulation is not really about risk; it is about a political agenda...
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MUSK SPARKS MAJOR CRYPTO SPIKE, STOCK SHORT-SQUEEZE CONTINUES
"I might pump, but I don't dump..."
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Q2'S STOCK-BOND CORRELATION REGIME HAS COLLAPSED AS VIX CURVE ANTICIPATES J-HOLE TURBULENCE [ See Chart ]
...VIX term structure abruptly turns upward-sloping around the Fed’s Jackson Hole conference - reflecting concern about elevated volatility that week.
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DAILY BRIEFING: IS THE SELL-OFF OVER? MAKING SENSE OF A MARKET IN FLUX
Peter Boockvar, CIO of Bleakley Advisory Group, joins Real Vision’s Ash Bennington and Jack Farley on the Daily Briefing to share his insights into market…
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Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption.
BIG TECH SHOULD BE "ACCOUNTABLE" FOR VACCINE "MISINFORMATION"
...ignores not only the constitutional implications of such a move but ignores how such an approach would eviscerate free speech...
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CALIFORNIA SHOPLIFTERS STROLL OUT OF TJ MAXX WITH ARMS FULL OF MERCHANDISE
"It's just lawlessness..."
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WHITEHEAD'S 'STATE OF THE NATION': STILL DIVIDED, ENSLAVED, & LOCKED DOWN
...when we lose sight of the true purpose of government - to protect our rights - we allow it to overstep its bounds and become a tyrant that rules by brute force.
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US-WORLD ISSUES (Geo Econ, Geo Pol & global Wars)
Global depression is on…China, RU, Iran search for State socialis, D rest in limbo
Arms for WW3 that won’t happen. It is a non-sense business. Towd Nuke-dismantle
RUSSIA UNVEILS "CHECKMATE": ITS LATEST, 5TH GENERATION STEALTH FIGHTER
"Such a fast development cycle was possible only with the help of advanced computer technologies and virtual testing."
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The terrorist who favor letal blockage on Cuba has not to talk on socialism in Cuba
CUBA DEMOTED TO "NOT REAL SOCIALISM"
...saying “Actually, that isn’t real socialism” about the Cuban revolution won’t change the fact that people vote for freedom and against socialism in overwhelming numbers.
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Pure LIES and ugly dystopia. Such ‘election’ didn’t happen . The revers do happen: massive meeting supporting Cuban President. The mercenaries paid to org demonstration agst Cuban Presid FAILED. The 99% of the Nation is Agst US blockage and their love for Cuban REV is been re-installed. CUBA WILL WIN!
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Dilution vs Real China: it has better Econ than US & is a super power in favor of PEACE
STATE DEPARTMENT'S #2 TO VISIT CHINA, WILL DISCUSS "AREAS OF SERIOUS CONCERN ABOUT PRC ACTIONS"
The meeting is reportedly to "touch base and for both sides to get a sense of where the relationship is going" and also comes as tensions remain heightened on several fronts.
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FIRST SOMALIA AIRSTRIKES OF BIDEN PRESIDENCY AS CONGRESS STILL QUESTIONING SYRIA STRIKES
Amnesty International & others have long urged a halt to US airstrikes in Somalia over mounting civilian casualties...
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AT LEAST 2 IRANIAN PROTESTERS SHOT AS WATER CRISIS GROWS: "WORST DROUGHT IN 50 YEARS"
Desperate masses can be heard in social media videos chanting, "PEOPLE ARE THIRSTY, WE WANT WATER!"
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Dilusion: Is US Copying China's Socialism?.. that is a sign fear & total ignorance on Soc
If The US Wants To Beat China, Why Is It Copying China's Socialism?
...a second Marshall Plan, which mirrors China’s wasteful BRI, will only consolidate big government, crony capitalism, and corruption...
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RECORD DROUGHTS PLAGUE ARGENTINA AS PARANA RIVER HITS 77-YEAR LOW
More bad news for global agriculture could result in higher food prices.
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The pro-business manipulation of pandemics is dem to failure
'ZERO COVID' CATASTROPHE: PARTICIPATING NATIONS SEE NEW RECORDS ACROSS THE BOARD
Zero Covid, as any rational person could have predicted a long time ago, HAS FAILED IN SPECTACULAR FASHION.
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US sabotage on JA olympics was real and failed
THOUSANDS OF OLYMPICS TICKET BUYERS HAVE PERSONAL INFO LEAKED ONLINE
Adding insult to injury, the ticket holders
will be unable to attend the actual events.
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ISRAEL SEEKS TO INVOKE US ANTI-BDS LAWS AGAINST BEN & JERRY'S
Israel vows "severe consequences" after company announced it will stop selling products in occupied territories...
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RUSSIA ANNOUNCES BILATERAL NUCLEAR ARMS CONTROL TALKS WITH BIDEN ADMINISTRATION
Biden now enjoying 'positive' traction with Putin... years of Russiagate hysteria notwithstanding.
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SPUTNIK NEWS : https://sputniknews.com/
- Is India's Ruling BJP Trying to Woo Muslims Through RSS Ahead of Uttar Pradesh State Polls?
- Russia Files First-Ever Inter-State Complaint With ECHR Against Ukraine
- From Middle East to a Dunkirk Cafe: Secret Trafficking Network Funnelling Migrants Into UK Exposed
- Labour MP Accused Of ‘Dishonestly’ Obtaining London Council Flat Committed Fraud
- First Hijab-Wearing Model Accuses Industry of Exploitation
- Phones of Two Dubai Princesses Reportedly Hacked by Pegasus Spyware
- Nord Stream 2 Pipeline Deal Reached
- The Amazon In Peril; Castillo Victory in Peru. What does this mean for progressive politics in the region? With Castillo the 2nd transatlantic project will unite Peru, Ec, Col y Ven with BRA and that will bring Econ development in the Nort part of South America. The 1st project will unite South Peru, Chile and Bolivia with BRA, Urug & Par. This project was initiated in the 80th of previous Century but sabotaged by US & his puppet regime of Alan Garcia in Peru. This time the project will have China-Rusian Econ support. All Latin America will be united to serve the cause of justice, democracy and Freedom.
- US and Germany Agree on Deal for Nord Stream 2 Completion
- Democrats and Republicans Squabble Over Picks for January 6 Commission Panel
- New COVID Variant Shows Up in Texas
- Russia Files First-Ever Inter-State Complaint With ECHR Against Ukraine
- Euro 2020: Police Were 'Told' to Ignore Ticketless Fans to Protect Force's 'Image'
- Anti-Riot Squads, Paramilitary Forces Fortify Delhi as Farmers to Protest Near Parliament
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