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Reuters blog archive

from Mark Jones:

Market selloff – blip or new crisis? http://t.co/xNHrQqcb73

Market selloff – blip or new crisis? http://t.co/xNHrQqcb73

from Breakingviews:

Real estate rescue may not help China’s developers

By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

If you cheapen it, they will come. China’s large real estate companies are going all-out to shift their properties, aided by recent reductions in mortgage rates and the relaxation of local restrictions on who can buy. When developers sell more for less, however, there is grief ahead.

from John Foley:

Real estate rescue may not help China’s developers

By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

If you cheapen it, they will come. China’s large real estate companies are going all-out to shift their properties, aided by recent reductions in mortgage rates and the relaxation of local restrictions on who can buy. When developers sell more for less, however, there is grief ahead.

from Mark Jones:

Why markets ignore good news from U.S. to focus on bad news from Europe http://t.co/2GDGTyGaYJ

Why markets ignore good news from U.S. to focus on bad news from Europe http://t.co/2GDGTyGaYJ

from Mark Jones:

Is Ebola the real ‘World War Z?’ (Spoiler alert: It’s not) http://t.co/DMWbg5FHym

Is Ebola the real ‘World War Z?’ (Spoiler alert: It’s not) http://t.co/DMWbg5FHym

from Anatole Kaletsky:

Why markets ignore good news from U.S. to focus on bad news from Europe

A trader watches the screen at his terminal on the floor of the New York Stock Exchange in New York

What’s spooking the markets?

One thing we can say for sure is that it is not the slightly weaker-than-expected retail sales that triggered the mayhem on Wall Street on Wednesday morning. Most U.S. economic data have actually been quite strong in the month since Wall Street peaked on Sept. 19.

So to find an economic rationale for the biggest stock-market decline since 2011, we have to consider two other explanations.

from The Great Debate:

Is Ebola the real ‘World War Z?’ (Spoiler alert: It’s not)

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In 2006, I released a novel about a global zombie plague that drives humanity to the brink of extinction. While the zombies may have been fake, I tried to anchor the human response (political-military-economic-cultural) in reality. I studied the history of pandemics, natural disasters and industrialized warfare. I interviewed doctors, soldiers, journalists and someone who “has never gotten a check from the CIA” in an attempt to illustrate the fragile global systems that shield our species from the abyss. As a result, I’ve been repeatedly asked if the current outbreak of Ebola is the real-life incarnation of my novel. As much as any author would love to crow about how “I predicted this!”, this time, I’m happy to say, my fictional plague could not be more different from the truth.

It could be argued that there are some similarities between the initial Ebola outbreak in West Africa and my fictional virus. Early on, there were missed warnings, such as a U.S. intelligence group’s failure to mine data that was written in French. There was also an obvious lack of interest on the part of the industrialized world. Not only were the headlines already taken up by Islamic State and the war in Ukraine but, let’s be honest, ignoring the plight of Africans is shamefully commonplace in the First World.

from Global Markets Forum Dashboard:

Activist investors don’t wait for red to sell

Stocks bleeding red are generally a good play for a short seller, who is betting on falling values. Yet activist investors do not wait for rattled markets the likes of which befell markets on Wednesday to sell short a particular company’s stock. Embedded in their sales pitch are well-crafted theories that attempt to challenge Wall Street’s sell-side mentality and, with that, reap a potential cash windfall.

Sahm Adrangi, founder, Kerrisdale Capital Mgmnt

Sahm Adrangi, founder, Kerrisdale Capital Mgmnt

Sahm Adrangi, founder and chief investment officer of Kerrisdale Capital, is among a group of small social media savvy funds who pitch some of their research to the public. Before stocks sank on Wednesday, Adrangi had been pounding the media circuit to get his message out about satellite communications company Globalstar (GSAT), which, he says, has no equity value.

from Breakingviews:

Rampant market fear clarifies global divide

By Richard Beales

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Suddenly, fear has overwhelmed greed. Yields on 10-year U.S. Treasury bonds slumped below 1.9 percent at one stage on Wednesday, and the 2 percent slide in the S&P 500 Index erased what remained of this year’s gains, although the index ended the trading day down just under 1 percent. It all augurs poorly for the expected end next month of the Federal Reserve bond-buying program. Yet the domestic economy has been steadily improving. Slowing growth elsewhere presents the bigger worry.

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