Two aftershocks, one measuring a magnitude of 5.3 have hit Kumamoto prefecture in Japan, according to the US Geological Survey (USGS) The aftershocks followed just days after two deadly earthquakes struck the region, killing at least 42 and injuring more than 1,000 others. RT reports: A tsunami warning has not been issued, Japanese broadcaster NHK reported. The aftershocks measured 3.9 and 3.4 on the Japanese scale, according to the country’s Meteorological Agency. Each had a depth of 10 kilometers (6.2 miles).

Down in Fredrick, MD, visiting with the KBRA FIG team this week. Last week we published a research note, "Will Negative Interest Rates Save Europe’s Banking System?"  You can read the full report with footnotes at the link below (registration is free).

https://www.krollbondratings.com/show_report/4042

In addition to the 53% plunge in Morgan Stanley earnings driven by a collapse in FICC revenues which plunged 55% from $1.9BN to $873MM, the other major company to report earlier today was Pepsi which, if only uses GAAP data, had more disappointing numbers: total revenues declined by 3% from $12.2BN to $11.86BN, just missing expectations of $11.87BN.

GAAP earnings tumbled by 24% from $1.2BN to $931MM, although since PEP repurchased $619MM in shares in the quarter, GAAP EPS declined a little less, or 21%, from $0.81 to $0.64.

Source: assets.bwbx.io

Italian banks have been facing rough seas for quite a while now as the total amount of non-performing loans and bad debt is piling up now. The Italian state has been trying to find a solution for this increasingly important problem as all of its banks continue to report high write-downs on the value of their assets, which is undermining the health of the entire financial system in the country.

Submitted by John Rubino via DollarCollapse.com,

For years now, the easiest way to finesse a debate over whether precious metals markets are manipulated has been to say, “well, if they’re not manipulated they’re the only market that isn’t.”