Emerging markets on track to set sovereign debt
record - (www.cnbc.com) Developing economies are on
course to raise a record sum in global debt markets this year, as ultra-low
rates in the developed world cheapen borrowing costs for countries from Asia to
South America. After a slow start, governments in countries including Mexico,
Qatar and Argentina have issued bonds worth $90 billion in 2016. By the end of
the year, credit strategists at JPMorgan expect sales of debt by emerging
markets in "hard" currencies such as dollars and euros to reach more than $125
billion — boosted by Saudi Arabia's first appearance in global bond
markets. A punishingly low yield environment for money managers has
sparked a jump in demand for emerging market fixed debt in the past few months,
as lack of inflation keeps interest rates in big economies on hold and prompts
additional monetary easing from the European Central Bank, the Bank of Japan
and the Bank of England.
“Zombie
Apocalypse”: The Hanjin Bailout that Didn’t Happen - (www.wolfstreet.com) “Shatters
the complacency” that TBTF carriers “are immune to failure”. South Korea’s
Hanjin Shipping Co., the world’s seventh largest container carrier and a unit
of Hanjin Group, Korea’s 10th-largest conglomerate that also controls Korean
Air Lines, has been in financial trouble for a long time. Bankruptcy or rather
a government bailout, not only for Hanjin, but also of the second largest
Korean carrier, Hyundai Merchant Marine (HMM), has been bandied about for as
long. HMM was restructured, with creditors taking a big hit, including its main
creditor, the state-owned Korean Development Bank which in the process became
HMM’s largest shareholder, which boils down to a taxpayer bailout. Pending
regulatory approval, the restructured HMM will join 2M carriers Maersk Line and
MSC in a new alliance next April.
Evergrande's debt burden just keeps on growing,
squeezing shareholders - (www.reuters.com) Building
up the second-biggest corporate debt pile in China does come at a cost. China
Evergrande Group, the nation’s No.2 real estate developer reported last week
that its borrowings grew to $57 billion by the end of June, including so-called
perpetual bonds. Only state-owned Petrochina owes more. The crushing impact of
that burden became clear in its first-half results as despite reporting a 12.6
percent jump in sales, Evergrande said that income attributable to shareholders
slumped 74 percent to 2.46 billion yuan ($368 million). That was mainly because
of a 60 percent rise in payments on the perpetual bonds as well as a surge in
marketing costs.
40,000
Students In Limbo, 8,000 Employees Fired As ITT Suddenly Shuts Down - (www.zerohedge.com) The
company said the closure is due to an investigation and sanctions by the U.S.
Department of Education. "It is with profound regret that we must report
that ITT Educational Services, Inc. will discontinue academic operations at all
of its ITT Technical Institutes permanently after approximately 50 years of
continuous service," the company stated Tuesday. "Effective today,
the company has eliminated the positions of the overwhelming majority of our
more than 8,000 employees." As previously reported, ITT Tech stopped
enrolling new students on August 29, just a few days after it was cut off from
a significant amount of federal funding by the government. ITT's collapse was
catalyzed when the Department of Education effectively killed the company two
weeks ago, when it told the company on August 25 that it couldn’t enroll new
students who use federal financial aid. The school accused federal officials of
forcing the closure and denying it due process. The company has been the
subject of state and federal probes for various reasons, including its
recruitment tactics, lending practices and job placement figures.
No ‘For Sale’ Sign? Silicon Valley Buyers
Aren’t Deterred - (www.nytimes.com) Swell-looking
home you’ve got here. Ever think about selling it? How about to me, right now? That
is increasingly the approach the house-hungry are using in Silicon Valley,
where the number of homes on the market is so small that would-be buyers are
driven to desperation. Their solution: seek out homes that are, in theory at
least, not for sale. Sue Zweig grew up in this working-class community, back
when people said it was for the newly wed and the nearly dead. Not long ago,
when she was out walking her dog, she began to realize things were different. A
woman pulled over, asked about houses for sale in the neighborhood and ended up
spending 45 minutes poking around Ms. Zweig’s living room and kitchen. Her
four-bedroom house was not on the market then, and it was not on the market a year
or so later when another eager buyer showed up. This time, Ms. Zweig, a nurse,
and her husband, Steve Zweig, made a deal for $1.375 million, a seven-figure
profit over what they had paid in 1987. They moved out of the house last year.
Central
banks nearing limits of ability to stimulate growth: OECD - (www.reuters.com)
Sleepy summer may give way to freaky fall - (www.reuters.com)
Row on tarmac an awkward G20 start for U.S., China - (www.reuters.com)
May’s Brexit Red Lines Prompt Warning From European Commission - (www.bloomberg.com)
Turkey Says No Future Migration Help Without EU Visa-Free Deal - (www.bloomberg.com)
Sleepy summer may give way to freaky fall - (www.reuters.com)
Row on tarmac an awkward G20 start for U.S., China - (www.reuters.com)
May’s Brexit Red Lines Prompt Warning From European Commission - (www.bloomberg.com)
Turkey Says No Future Migration Help Without EU Visa-Free Deal - (www.bloomberg.com)
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