Week of Oct 28 2016 Weekly Recap & The Week Ahead
“Successful investing is anticipating the anticipations of others.” – John Maynard Keynes
1. Eurozone Approves Bailout Funds For Greece — Eurozone officials have approved a €2.8B tranche of financial aid for Greece after the cash-strapped nation delivered the needed reforms. Those included milestones in pension restructuring, bank governance, the energy sector and revenue collection. So far Greece has received €31.7B of its €86B bailout granted in July 2015, its third since being engulfed by debt in 2010.
2. U.S. May Delay Fines On Major Banks — a series of huge DOJ fines on Barclays (NYSE:BCS), Credit Suisse (NYSE:CS) and Deutsche Bank (NYSE:DB) for mis-selling mortgage securities could be postponed until after next month’s presidential election, Sky News reports. The delay also means RBS will likely have to account for the majority of a fine in its 2017 results, making it virtually certain that the bank will record its tenth consecutive annual loss.
3. Obamacare Rates Up 25% in 2017 — the average premium for benchmark 2017 Obamacare insurance plans sold on Healthcare.gov will jump 25% to $302 compared to this year, the biggest increase since the insurance first went on sale in 2013. Seeking to downplay the cost hikes, the administration said that including subsidies 77% of people would be able to find insurance plans with monthly premiums below $100, however, one in five consumers will only have one insurer from which to choose coverage. Not only are Obamacare premiums on the rise for 2017, deductibles will also be getting more expensive, according to an analysis by insurance comparison site HealthPocket. Deductibles for individuals enrolled in the lowest-priced Obamacare health plans will average more than $6,000 next year, the first time that threshold has been cracked in the three years that Affordable Care Act marketplaces have been in business. Families enrolled in the bronze plans will average deductibles of $12,393.
4. ECB ‘s Draghi Hits Back At Stimulus Critics — in a speech at a think-tank event in Berlin, ECB President Mario Draghi defended his of policy of ultra-low rates, but voiced concern about “distortions that can result” if they are “in place for too long.” He also declared victory in the bank’s fight against deflation, saying the ECB had “succeeded” in removing the threat of a vicious spiral of falling prices and ever weaker demand.
5. US Advance Q3 Gross Domestic Product Up 2.9%, vs 2.5% Increase Expected — US Gross domestic product increased at a 2.9 percent annual rate after rising at a 1.4 percent pace in the second quarter, the Commerce Department reported. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 2.1 percent rate. Spending was held back by a decline in purchases of goods. A surge in soybean exports helped to shrink the trade deficit in the third quarter. Exports increased at a 10 percent rate, the biggest rise since the fourth quarter of 2013.
The week ahead — Economic data from Econoday.com:
