Agile
Tumbles in Hong Kong as Chairman Placed Under Custody - (www.bloomberg.com) Agile Property Holdings Ltd. (3383) tumbled to the lowest in more than five
years after its billionaire founder and chairman Chen Zhuolin was placed under
the control of Chinese prosecutors amid a money
laundering allegation
which it denied. Shares plunged as
much as 31 percent, the most on record, to HK$3.30 in Hong Kong after they
resumed trading following a suspension since Oct. 3. They closed 17 percent
lower at HK$3.95, the lowest since March 2009. The stock was downgraded by
at least six brokerages, including JPMorgan Chase & Co. and Macquarie Group
Ltd., according to Bloomberg data.
Oil price drop puts fracking to
the test - (www.cnbc.com) A
further slump in oil prices may dampen shale drilling's profitable run,
according to a report from Goldman
Sachs.
In the past four weeks, global oil prices plunged eight percent. And a barrel
in the U.S. is below $90, the first time in
two years.
On Thursday, shares of companies centered in North Dakota's Bakken Shale
dropped more than 5 percent. If prices drop any further, the Wall Street Journal reports, drilling activity would slow
down drastically. The key issue lies in the overabundance of oil, with sluggish
global demand to match it. Texas, Colorado and North Dakota shale-drilling has
increased U.S. production by nearly three million barrels a day since 2011.
Here's why shale oil stocks
are tanking - (www.cnbc.com) Now,
let's look at what happens when oil starts to drop fast, which is exactly our
scenario. That secured creditor with the line of credit? He's getting nervous,
because now instead of reserves worth $20 million for your project, those
reserves are now worth only, say, $16 million. That's a problem. The line of
credit you will be able to get will drop because as the price of oil drops
banks don't want to lend as much. So, instead of $5 million, your secured
creditor will only lend $4 million, and at a higher rate. Now you need $6
million more. Another problem: because the price of oil is down, you can't
contribute as much from your cash flow, so instead of $2 million that you
contribute, you can only contribute $1 million.
The new unemployed: Older, educated and broke - (www.cnbc.com) In
the upside-down, topsy-turvy world of jobs these days, even an advanced degree
can't protect some Americans from tumbling down the economic ladder. The
conventional wisdom that more education bears fruit in the labor market gets
turned on its head when it comes to unemployment. For people with masters and
even doctoral degrees, long-term unemployment is especially insidious. At best,
these formerly high-earning professionals face the prospect of a years-long
climb back to their former level of income and stature, while they delay retirement
to rebuild their decimated nest eggs. Others won't be that lucky. Debt,
foreclosure and evaporated savings push them out of the middle class, and some
just keep falling.
Oil
Bear Market Strains OPEC as Venezuela Seeks Meeting - (www.bloomberg.com) OPEC
is boosting production as its members fight for market share and seek to meet
rising domestic demand. The group pumped 30.47 million barrels a day in
September, the most since August 2013, it said Oct. 10 in its latest monthly
Oil Market Report. Saudi Arabia, Iran and most recently Iraq all widened the
discounts they’ll offer on their main grades sold to Asia next month to the
most since at least 2009. Venezuelan President Nicolas Maduro gave instructions
to ask for an extraordinary OPEC meeting, the country’s foreign ministry said
in a post on its Twitter account on Oct. 10. “The price of oil is important for
our country, and we’ll start actions to stop its fall,” the ministry cited
former oil minister Rafael Ramirez as saying.
Exclusive:
U.S. regulators press banks for more on auto loan exposure to assess risks - (www.reuters.com) U.S.
regulators are asking banks for more detail on their autos financing exposure,
as rapid growth in the lending has prompted officials to seek to better assess
the risks, according to a person familiar with the matter. Balances
remaining on auto loans have risen by about a third since April 2011, reaching
an all-time high of $924.2 billion in August, according to credit reporting
bureau Equifax. About a fifth of the loans are subprime. Banking regulators
fear that reckless lending may be at least helping to fuel that growth, and
there are early signs that delinquencies are increasing in the sector.
Draghi
Asset Plan Seen Falling Short as QE Predictions Rise - (www.bloomberg.com)
Russia Interventions Top $4 Billion as Oil Drop Worsens Rout - (www.bloomberg.com)
Russia Interventions Top $4 Billion as Oil Drop Worsens Rout - (www.bloomberg.com)
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