Banking

The title Garbage Man has many implications as it relates to investing and careers. For me, it was actually my first job. Yes, this former hockey head and now Macro Analyst started his working career as the Garbage Man back in his home town. I'm not sure I learned a whole lot about investment analysis while digging through the garbage barrels back in Bassano, Alberta, but what I did learn is that as you dig through all that garbage, every once in a while you find a little treasure.

As I sit here drinking my second cup of coffee, listening to Pandora (that's what the Millennials use to get music these days!), and reviewing the global macro news streaming on to our floor here in New Haven, there are a few little treasures that are emerging:

The Chinese central bank is noting this morning that they view gold prices as very high and they will be wary of "bubble" assets. It is interesting that the so called "Communists" see bubbles before He Who Sees No Bubbles (Bernanke) and the purported free marketers at the U.S. Fed do. From a fundamental perspective, this is negative for gold demand in the intermediate term as China is potentially a large buyer of gold to diversify her reserves, though presumably not at bubble prices.

Central Huijin Investment Co, an investment arm of China's sovereign wealth fund, may ask a reduced dividends payout from state-run banks next year, China Daily reported on Thursday.

"As the largest shareholder of the nation's three biggest listed banks, Huijin may propose to lower the proportion of dividends to be allocated to shareholders at the board meeting of these banks next year," the newspaper quoted an anonymous source.

Conventionally, the nation's three major state-run lenders, the Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and Bank of China (BOC) distribute some 40 percent of the profits they earn to shareholders, the report said.

Chinese police have detained at least four people on suspicion of match-fixing and gambling in a nationwide crackdown on soccer corruption.

The Ministry of Public Security told Xinhua on Wednesday in the capital city of Liaoning province that they had detained a number of former players, soccer officials and club officials, including Wang Xin, Wang Po, Ding Zhe and Yang Xu, on suspicion of "manipulating domestic soccer matches through commercial bribery."

Some of them were also suspected of gambling through foreign websites, said the Ministry, which heads up the unprecedented large-scale investigation.

China's banking regulator on Monday asked the country's commercial banks to better manage risks and avoid year-end volatility in lending.

Commercial banks should ensure that lending increase was kept in a stable and sustainable pace, the China Banking Regulatory Commission (CBRC) said.

Financial institutions with low capital adequacy ratio and no practical remedy plans would face restrictions in various sectors such as overseas investment, branch increase and business expansion, it said.

The CBRC called for enhanced inspections in financial system to detect problems after surging loan extends between the fourth quarter last year and the second quarter this year.