North America Morning Briefing: Retail Sales -2-

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A Shanghai-based software supplier has petitioned the court to open bankruptcy proceedings for Nanjing Zhixing New Energy Vehicle Technology Development Co. or Byton, according to court records. The court did not accept the petition as Byton seeks a settlement with the creditor, the company said in a statement.

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ServiceMax, backed by Silver Lake and GE, goes public with a $ 1.4 billion SpaC deal

ServiceMax has agreed a merger with a special purpose vehicle that will bring the manufacturer of software for field service technicians to the stock exchange, the companies announced on Thursday.

The software company, currently owned by private equity firm Silver Lake, General Electric Co. and the venture arm of enterprise software giant Salesforce.com, will partner with Pathfinder Acquisition Corp. merge and value ServiceMax at approximately $ 1.4 billion.

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Limited Auto Supplies Cloud Broader retail sales in June

US buyers likely spiked spending at many retailers in June, but weak auto sales linked to supply disruptions may have slowed sales gains as the economy re-opened.

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SWFs invest more at home as Covid-19 hits economies

SWFs, among the world’s largest stock market players, are unleashing more of their firepower at home as governments rely on them to revive pandemic-stricken economies.

According to the International Forum of Sovereign Wealth Funds (IFSWF), the funds made approximately $ 12.7 billion in new investments directly in companies and projects in their domestic economy in 2020, more than three times the amount in 2019. This year SWFs have invested around $ 4 billion domestically to date, roughly the same as in all of 2019.

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Yield premium on risky corporate bonds is approaching all-time lows

The additional investor return of holding lower-rated corporate bonds versus ultra-safe Treasuries has fallen within striking distance of all-time lows, a sign of investor appetite for riskier assets and the changing composition of bond indices.

On Wednesday, the average extra yield or spread on bonds in the Bloomberg Barclays US High Yield Corporate Bond Index was 2.75 percentage points. Earlier this month the spread fell to 2.62 percentage points, the lowest level since June 2007 and just a touch higher than the all-time low of 2.33 percentage points in May this year.

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Infrastructure talks about extended IRS powers stalled

WASHINGTON disagreements over the Internal Revenue Service expansion have hampered legislature efforts to consolidate their roughly $ 1 trillion bipartisan infrastructure deal before an initial vote to support the deal comes next week.

In an hour-long meeting on Thursday afternoon with White House officials, Republicans and Democrats, who had been negotiating the deal for weeks, re-examined the pay. Lawmakers and aides said the group may abandon efforts to increase revenue through enhanced enforcement with the IRS after some Republicans said they were concerned about granting the tax authority new powers.

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BOJ offers banks zero interest loans to help businesses fight climate change

The Bank of Japan announced on Friday that it would be providing interest-free loans to commercial banks to help businesses fund projects to curb climate change.

The BOJ’s move adds to the global debate over whether central banks should extend their mandate beyond their traditional goal of price stability. Japan’s central bank said climate change needed to be addressed because of its significant economic and financial implications.

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US banking regulators are calling for comment on guidelines for relationships with third parties

The cross-agency guidelines on third-party relationships proposed by three banking regulators highlight the risks financial institutions face as banks increasingly rely on third-party vendors and financial technology companies for products and services, industry watchers said.

Federal Deposit Insurance Corp., the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency are seeking comments on the proposed guidelines that provide a risk management framework for third party relationships, the agencies said this week. Third parties referred to in the document include vendors, fintech companies, affiliates and holding companies of banking organizations, the agencies said.

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Setback in growth for wind power plants

Wind turbine manufacturers have big plans to supply the booming green power market. However, increasing demand does not guarantee sustained profitability in the short term.

Siemens Gamesa Renewable Energy, the leading manufacturer of offshore wind turbines, issued a profit warning late on Wednesday evening. On Friday morning, stocks are down 16% since the announcement. Management said the group’s profit margins would be flat or slightly negative and earnings would be at the lower end of projections. Just in the last quarter, the recently appointed CEO Andreas Nauen outlined his turnaround plan for the offshore division, which focuses on the problems.

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Car loans are getting off the beaten path

New and used vehicle prices are at record highs, supported by a semiconductor supply crisis that is keeping auto production in check while consumers are itching to get out and buy them. Used cars and trucks were 45.2% more expensive in June than a year earlier, while new cars were 5.3% more expensive, according to the Department of Labor. However, monthly payments look no different for consumers, thanks to lower rates, longer terms, or more cash. For new cars, average monthly loan payments increased just $ 7 year-over-year in the first quarter of 2021, according to consumer credit bureau Experian. Monthly used vehicle loan payments increased $ 19, or 5%, over the same period.

Even before the pandemic, credit terms had become longer. The average car loan duration in the second quarter was 70 months for new cars and 68.9 months for used cars, according to Edmunds; Ten years ago they averaged 64 and 62 months, respectively. Much of this happened as lender competition increased and car prices gradually rose, with automakers adding new technology and vehicle customization options. Longer payment terms were developed to make vehicles look cheaper.

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Palladium prices peak this year as automakers switch back to cheaper platinum – Analysis

Palladium’s year-long rally could finally come to an end this year as automakers revert to the now cheaper platinum alternative, UBS said.

Palladium futures have soared from around $ 200 an ounce in 2009 to a high of $ 2,981 an ounce this year. The metal has increased every year since 2015 as it became the major metal automaker used in their auto catalytic converters that filter harmful emissions from car exhaust.

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Eurozone exports fell again in May

Eurozone exports fell for the fifth straight month in May, suggesting that international trade in goods remains weak despite the easing of most coronavirus-related restrictions.

The European Union’s statistical office announced on Friday that currency area exports fell 1.5% in May compared to April, while imports rose 0.7%, both adjusted for seasonal fluctuations. The seasonally adjusted trade surplus was 9.4 billion euros ($ 11.1 billion) compared to 13.4 billion euros in April.

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EU new car sales rose in June, but the pace of growth slowed

Car registrations in the European Union continued their upward trend in June, although growth was more modest than in previous months, the Association of European Automobile Manufacturers (ACEA) announced on Friday.

New car registrations – a reflection of sales – rose in June compared to the previous year by 10% to 1.05 million units, with a growth of 25% from January to June to 5.4 million units.

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Biden says the situation in Hong Kong is getting worse

WASHINGTON President Biden said the situation in Hong Kong will “worsen” as the government prepares to issue a corporate advisory that he believes would set out what could happen if China presses ahead with the territory.

Mr Biden did not provide details on the advisory, which officials said could be released as early as Friday. When asked about the planned consultation during a press conference on Thursday together with German Chancellor Angela Merkel, Biden said: “The situation in Hong Kong is deteriorating and the Chinese government is not keeping its promises.”

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Floods in Germany and Belgium leave at least 100 dead, while rescue workers fight to find survivors

BERLIN rescuers in Germany and neighboring countries were looking for survivors of the worst flooding in the region this century as the death toll rose to over 100 and hundreds after days of torrential rain that some politicians and scientists linked to climate change be missed.

The German authorities used helicopters and drones to track down survivors who fled on roofs and hills without being able to take their belongings with them when flash floods flooded homes, turned streets into rivers, swept cars away and destroyed houses.

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Biden expects to release an update on the travel ban for Europe soon

President Biden said he expected to provide an update in the coming days following an assessment by his Covid-19 advisors on whether his government would lift a travel ban from Germany and other parts of Europe.

Chancellor Angela Merkel raised the issue during a bilateral meeting with Mr Biden on Thursday, he said.

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Canada Eyes opens the border to US tourists in mid-August

OTTAWA-Canada could start letting Americans into the country for recreational or tourist activities from mid-August, Prime Minister Justin Trudeau’s office said late Thursday.

(FOLLOW MORE) Dow Jones Newswires

Jul 16, 2021 6:09 AM ET (10:09 AM GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.


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