The Oktoberfest, one of the biggest beer binge events in the world, is closely watched for economic trends. Alas, this year was the second year in a row when, despite Teutonic organizational ingenuity and marketing muscle, the number of visitors and, most crucially, beer consumption “unexpectedly” dropped (as if we didn’t have enough bad news already).
After Snatching Olympics, Japan Suddenly Admits Fukushima Not “Under Control,” Begs For International Help
by Wolf Richter • • Comments Off on After Snatching Olympics, Japan Suddenly Admits Fukushima Not “Under Control,” Begs For International Help
As the Fukushima fiasco hobbled from cover-ups to partial revelations, mega-utility TEPCO – famous for its parsimoniousness with the truth and lackadaisical handling of the fiasco – always pretended the situation was under control. But days after Tokyo scored the 2020 Olympics, that pretense fell apart. Now Prime Minister Abe begged for international help.
Apple, After 2-Year Fight, Fails to Squash “Apfelkind” Café in Germany
by Wolf Richter • • Comments Off on Apple, After 2-Year Fight, Fails to Squash “Apfelkind” Café in Germany
Apple has become a legal juggernaut. It’s taking on everyone and everything for presumed violations of its patents and trademarks. Billions are at stake. Its bitten-into-apple logo is sacred. The color red is sacred. So are red apples of any kind, apparently. Then it tried to squash a cafe in Germany, owned by a stubborn entrepreneur with a vision.
The End Of Nuclear Energy In Japan?
by Wolf Richter • • Comments Off on The End Of Nuclear Energy In Japan?
“I’m calling for zero nuclear power,” said Junichiro Koizumi at a lecture in Nagoya. Hugely popular prime minister from 2001 to 2006, he’d groomed Shinzo Abe to become his successor. Abe, now again PM, is trying to restore the scandal-plagued nuclear industry to its former glory. But Koizumi’s words ripped into his policies – and are having an impact.
Wall Street Brushes Off Debt-Ceiling, Republicans Beg To Differ, But Default Would be “Catastrophic,” And Nothing Is Priced In
by Wolf Richter • • Comments Off on Wall Street Brushes Off Debt-Ceiling, Republicans Beg To Differ, But Default Would be “Catastrophic,” And Nothing Is Priced In
Wall Street is convinced the government shutdown won’t hurt unless it drags out too long. It’s even more convinced that Congress would never be crazy enough to refuse to raise the debt ceiling in time and send the mighty and sole superpower, biggest debtor of all times, into default. That risk hasn’t been priced in. But a majority of Republicans begs to differ.
Hammered By Abenomics, Japanese Consumers Get Gloomier
by Wolf Richter • • Comments Off on Hammered By Abenomics, Japanese Consumers Get Gloomier
A quarterly survey by the Bank of Japan brought a dose of reality to the glorious hype surrounding Abenomics, whose stated beneficiaries are the big banks and Japan Inc., including the formerly omnipotent nuclear power industry that Abenomics is trying to restore to its glory. But consumers are struggling with reality, apparently.
Supercars In The US, Japan, and China: How QE And Corruption Boosted Sales
by Wolf Richter • • Comments Off on Supercars In The US, Japan, and China: How QE And Corruption Boosted Sales
Supercar-makers Lamborghini, Ferrari, and Rolls-Royce are reacting to the forces whacking global markets for luxury products: a corruption crackdown in China, Abenomics in Japan, and the Fed’s money-printing in the US. The idea that sales in China, which is printing billionaires by the dozens, are crashing is a hard-to-swallow concept for the industry.
“A Feeding Frenzy, A Mad Dash To Snap It Up” – House Flipper
by Wolf Richter • • Comments Off on “A Feeding Frenzy, A Mad Dash To Snap It Up” – House Flipper
You can’t get away from it. The media fawn over it. Rational neighbors drool unexpectedly. Ads flood the airwaves. “Learn our simple three-step system on how to flip homes,” the announcer says. Everyone knows: untold riches are waiting for you. “Right here in the Bay Area,” he says. It’s hot, so hot that people will get burned. And banks will get hit (again).
S&P Threatens To Cut US Debt To Junk
by Wolf Richter • • Comments Off on S&P Threatens To Cut US Debt To Junk
“This sort of political brinkmanship is the dominant reason the rating is no longer ‘AAA,’” S&P ratings agency wrote in a research note. More ominously, it warned that if Congress failed to pass a debt-ceiling hike before the out-of-money date in mid-October, it would cut the U.S. to “selective default.” And then there would be the post-default era.
Bubble Trouble: Record Junk Bond Issuance, A Barrage Of IPOs, “Out Of Whack” Valuations, And Grim Earnings Growth
by Wolf Richter • • Comments Off on Bubble Trouble: Record Junk Bond Issuance, A Barrage Of IPOs, “Out Of Whack” Valuations, And Grim Earnings Growth
When Blackstone’s global head of private equity, Joseph Baratta, said Thursday night that “we” were “in the middle of an epic credit bubble,” the likes of which he hadn’t seen in his career, he knew whereof he spoke. Junk bond issuance hit an all-time record in September. IPOs are flying off the shelf. But earnings growth is grim – and plunging. What gives?