December, 2018

• 26 December

  Debt market’s $200bn gorilla finally wakes up

  

  Joerg Boche is arguably the most important person in Europe’s corporate debt market right now. As the group head of treasury at Volkswagen AG, his decisions on the company’s funding are critical not just to the German autos giant but to European corporate credit spreads as a whole. VW had to rein in its bond issues after the Dieselgate scandal, ...

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• 26 December

  High debt isn’t driving Indian farmers to suicide

  

  It’s election season in India and the money is flowing. Governments in many states have begun waiving tens of millions of dollars’ worth of loans to poor farmers in an effort to buy their loyalty. The argument – widely accepted by politicians and journalists, the demographic groups with the least fiscal instinct – is that India’s farmers are buckling under ...

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• 26 December

  US stocks rebound from bear brink; crude rallies

  

  Bloomberg US stocks rebounded from the worst-ever pre-Christmas session as investors hoped for an end to the turmoil in American markets. The S&P 500 halted a four-day rout of almost 8 percent, clawing back from the brink of a bear market on speculation the selling had gone too far given a relatively robust economy. Amazon surged after providing a reminder ...

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• 26 December

  Gold powers to six-month high

  

  Bloomberg Gold is rallying into the end of 2018 as turmoil in global equities, the partial US government shutdown and concerns about the outlook for next year stoke demand, lifting prices to the highest in six months. Bullion climbed as much as 0.5 percent on Wednesday, extending last week’s gain and on course for the biggest monthly advance since January ...

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• 26 December

  Trump voices confidence in Mnuchin, Fed and economy

  

  Bloomberg Donald Trump expressed confidence in the Treasury secretary, Federal Reserve and US economy, moving to calm financial markets further roiled after Bloomberg News reported that the president had discussed firing the central ba-nk’s chairman over raising interest rates. Trump, asked if he has confidence in Treasury Secretary Steven Mnuchin, said, “Yes I do, very talented guy, very smart person.” ...

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• 26 December

  China weighs plans to boost bank capital

  

  Bloomberg Chinese authorities are studying plans to help banks replenish capital as they look to continue with their crackdown on financial risk without hurting credit growth. The move to promote sales of perpetual bonds as soon as possible comes as new regulations on asset management force banks to absorb off-balance-sheet debts. Swelling soured loans and a slump in share prices ...

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• 26 December

  CLO market faces record callable debt

  

  Bloomberg A record amount of collateralised loan obligations will be eligible to be reset or refinanced next month, potentially putting more pressure on prices. But the concerns may be for naught as the malaise weighing on credit markets could derail part of the push. More than $52 billion of CLOs originally issued in 2017 and 2018 could be refinanced or ...

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• 26 December

  Cevian Capital builds 2.3% stake in Nordea

  

  Bloomberg Swedish activist investment firm Cevian Capital has built a 2.3 percent stake in Nordea Bank Abp in a move that may put pressure on the Nordic region’s largest bank to improve its revenue development and profitability. Cevian’s comment that it “sees significant value potential in Nordea” and that it “will work with Nordea’s owners, board and management to realise ...

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• 26 December

  Dreams die hard for Wall Street crypto bankers

  

  Bloomberg Limbo—that’s where to find Wall Street when it comes to cryptocurrencies. Squeamish from the start about pursuing profits in one of the darker corners of finance, established firms this year slowed their already halting efforts to make a business out of Bitcoin mania. While none has thrown in the towel, and some continue to develop a trading infrastructure, most ...

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• 26 December

  Air Mauritius, 3 other airlines to form alliance

  

  Bloomberg South African Airways, Kenya Airways Plc, Air Mauritius Ltd. and RwandAir are in talks to create an alliance, as they face mounting competition. “Air Mauritius took the initiative to join forces with three other African airlines in a bid to create an alliance that would develop air connectivity in the region,” Chief Executive Officer Somas Appavou said. “In a ...

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