“Britain’s armed forces are making contingency plans for how they could support the country if Britain leaves the European Union without a deal, senior British defence officials said on Sunday.
“Asked what role the armed forces could play if there was a ‘no deal’ Brexit, British defence minister Tobias Ellwood said: “The armed forces stand ready to support Britain on a practical basis”
““There are contingency plans being made, there are discussions being held behind the scenes as to what support our armed forces will do,” Ellwood said on the ‘Ridge on Sunday’ television programme.
““With the transition from Brexit, if there is a requirement to provide assistance we’re looking right across the full spectrum of requirements to make sure that we are prepared.””
“Theresa May’s Brexit plan is under siege from across the Tory party as she attempts to overcome the final sticking points with Brussels in time to push it through a critical meeting of her cabinet ministers on Tuesday. As time runs out, leading Brexiters have told the prime minister they remain deeply opposed to her version of an exit mechanism that would prevent the UK unilaterally quitting a temporary customs arrangement if Brexit talks collapse.”
“Research by business advisers BDO LLP indicated a “concerning turnaround” in the fortunes of the UK manufacturing sector.
“Manufacturers are at the sharp end of a general slowdown in global trade, as well as a Brexit-induced reluctance from European firms to source components from the UK, the report said.”
“Italy’s finance minister is working on limited adjustments to the populist government’s 2019 budget…
“With Italy’s reply due next week, Tria and his staff are assessing economic growth targets, emergency spending needs after devastating storms, the weight of interest payments on debt and measures to guarantee that there will be no breach of the 2.4% target…”
“After Condotte and Astaldi , another Italian big construction player raises the white flag. The Cooperative Muratori and Cementisti Romagnola (CMC Ravenna) , long since in financial difficulties, has officially declared that it will not be able to meet the payment obligations, on November 15th, of the interest accrued of the 325 million euro bond loan with coupon 6% and maturity 2023 issued last year… As a result, CMC Ravenna will default also on the interest payments.”
“The Central Bank of Nigeria (CBN) warned that the country’s economy may slip into a recession again given the weak economic fundamentals.
“CBN governor, Godwin Emefiele, who sounded this note of warning at the end of a two-day meeting of the Monetary Policy Committee in Abuja on Tuesday, September 25, 2018; said that the economy has again started showing signs of weakness.”
“Despite the gaming or casino industry growing its gross gambling revenue (GGR) by 3.5% to R18.5 billion in the year to end March 2018, the recession in the first half of this year has increased the number of illegal gambling operations.”
“The number of Turkish companies applying for bankruptcy protection has increased in recent months, as the private sector has been facing cash flow problems due to lira dropping by almost 40 percent again the dollar this year.
“Turkey’s private sector debt stands at $326 billion, while foreign currency-denominated loans is at $293 billon.”
“With interest rates in the US rising, this arbitrage has started to unravel. As interest rates rise, financial investors will withdraw the money they invested in stock and debt markets around the world. This will lead to falling markets and rising interest rates… With the US Fed raising rates and withdrawing printed money, low rates in the US and the Western world, which led to a flood of money into India, are on their way out.”
“In the span of just 11 months, China went from having no distressed dollar-denominated corporate bonds to having more than any other emerging market. The world’s second-biggest economy has 15 bonds whose option-adjusted spreads over US Treasuries were above 1,000 basis points as of November 6, according to a Bloomberg Barclays index. That’s more than all the other nations on the gauge, combined.”
“China’s auto sales sank for a fourth month last month as an unexpectedly painful slump in the global industry’s biggest market intensified.
“Purchases of sports utility vehicles (SUVs), sedans and minivans contracted 13 percent from a year earlier to just more than 2 million units, the China Association of Auto Manufacturers reported on Friday.”
“”China trade tensions will continue and possibly worsen,” said Isaac Boltansky, a policy analyst at research and trading firm Compass Point.
“”We believe the electoral split-decision will result in President Trump’s trade rhetoric — especially with China — becoming more bellicose in the weeks ahead.””
“South Korea’s factory utilization rate has fallen to the lowest level since the Asian financial crisis fueling concerns that the economy is showing signs of slowing down, observers said Sunday. The number is a key barometer of manufacturing output and directly impacts the economic health of countries that depend heavily on the production of goods to generate growth, such as South Korea.”
“A study on Japanese companies with a history of 100 or more years found that 461 establishments either went bankrupt or discontinued their business in fiscal 2017, a 2.2% increase over the previous year.
“This number is the largest on record since data was first compiled in fiscal 2000, exceeding the 430 longstanding companies that closed their doors in fiscal 2008, the year of the global financial crisis.”
“Australian auction clearance rates continued to slide last week, recording the seventh consecutive weekly reading below 50%. According to CoreLogic, a preliminary combined capitals clearance rate of 46.8% was achieved, down from the preliminary estimate of 47.4% reported seven days earlier.
“It was the weakest preliminary reading for the current downturn in the housing market.”
“October turned into ‘Shocktober’ as waves of panic roiled global markets and torched most, if not all, of this year’s gains.
“While the fears have abated in the past fortnight, they haven’t entirely disappeared. Nor should they.
“For while the old adage that bull markets are built on a wall of worry is usually trotted out to placate the fearful and soothe rattled nerves, tensions within the global financial system are building, potentially grinding towards a breaking point…”