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7:34 a.m. March 10, 2021 - By Tomi Kilgore
GE credit rating on track to be downgraded at S&P Global after GECAS dealGeneral Electric Co.'s credit rating is headed toward a downgrade at S&P Global Ratings, which said to combine its aircraft leasing business, GE Capital Aviation Services (GECAS), with AerCap Holdings NV increase GE's debt leverage more than previously expected. S&P said it placed GE's BBB+ rating on CreditWatch with negative implications, and expects a one-notch downgrade to BBB, which is two notches above "junk" status, in about 10 to 12 months. The GECAS deal is valued at more than $30 billion for GE, with proceeds expected to be used to reduce debt. However, the remaining assets of GE Capital, which S&P Global had previously treated as a captive finance unit, will be incorporated into GE, and is expected to increase GE's debt leverage to about 6.0X. Meanwhile, fellow credit rating agency Moody's Investors Service affirmed GE's Baa1 credit rating, which is three notches above "junk," and affirmed the negative outlook, while Fitch Ratings affirmed the BBB rating -- 2 notches above "junk" -- and stable outlook. GE's stock, which fell 5.7% in midday trading, has gained 16.6% over the past three months, while the S&P 500 has advanced 6.4%.
8:00 a.m. Feb. 17, 2021 - By MarketWatch
Texas power disaster may be strongest case yet for renewable energyBlaming renewables in Texas and elsewhere at a time when they need more, not less, of the nation's power system to modernize is short-sighted, said energy analysts.
5:00 a.m. Feb. 17, 2021 - By MarketWatch
Looking to avoid an obscenely overpriced U.S. stock market? Here’s one strategist’s advice on how to ride the inflation waveIf inflation is coming, where should investors go? How about Latin America, says one strategist.
1:00 p.m. Feb. 16, 2021 - By MarketWatch
Why the stock market’s ‘worst-case’ scenario depends on these 3 ingredientsTreasury yields are heading higher, says Jefferies, but nervous stock-market investors should also keep an eye on credit spreads and the U.S. dollar.
10:34 a.m. Oct. 9, 2020 - By Ciara Linnane
Coronavirus update: WHO warns of record single-day rise in global COVID-19 cases, while northeastern U.S. states heat up again Clusters emerge in Connecticut, Maryland, Pennsylvania and Rhode Island and New York City is seeing more than 500 cases a dayThe World Health Organization on Friday reported a record rise in global cases of the coronavirus that causes COVID-19 in the last 24 hours, in the latest sign that the illness is far from contained.
12:10 p.m. Oct. 8, 2020 - By Claudia Assis
JetBlue's debt downgraded deeper into junk territory by Fitch Fitch Ratings on Thursday downgraded JetBlue Airways Corp.'s debt one notch deeper into high-yield bonds, to BB- from BB. A "recovery in air traffic will be slower than previously anticipated," hampering JetBlue and other airlines' efforts to drum up business until COVID-19 cases decrease or until treatment or a vaccine against the virus become available. JetBlue's cash burn is likely to "remain material well into 2021," Fitch said. The ratings agency also worried about the airline's going deeper into debt, which helped it with liquidity but puts pressure on the airline's debt metrics in the longer term, it said. Airlines have been "proactive" in cutting capacity as demand has lagged, Fitch said. As capacity increases, so will costs, "and JetBlue will not see the same types of cost savings that some larger carriers will see from things like fleet retirements and management headcount reduction," the ratings agency said. "However, JetBlue is starting from a lower cost base, which Fitch believes puts the company in a better position to recover from the downturn." Air-travel demand recovered some from April's trough, but the pace of recovery slowed as reported cases began to rise again in June. "Fitch expects traffic levels to remain anemic until case levels improve substantially or until more effective treatments or a vaccine become widely available," it said. Shares of JetBlue edged higher in the extended session Thursday after ending the regular trading day up 3.7%.
2:37 p.m. July 31, 2020 - By Rachel Koning Beals
Fitch cuts U.S. credit outlook to 'negative' on COVID-19, election uncertainty, but maintains AAA ratingFitch Ratings on Friday turned more negative on the outlook for the gold-plated U.S. credit rating. High fiscal deficits and debt were already on a rising medium-term path before the onset of the huge economic shock precipitated by the coronavirus, the ratings agency said in giving the U.S. a "negative" outlook, while maintaining a AAA rating. The U.S. had the highest government debt of any AAA-rated sovereign heading into the crisis, and Fitch expects general government debt to exceed 130% of GDP by 2021. The U.S. sovereign rating is supported by structural strengths that include the size of the economy, high per capita income and a dynamic business environment. Fitch considers U.S. debt tolerance to be higher than that of other 'AAA' sovereigns. Fitch said it expects negative real interest rates and continued loose monetary policy at the Federal Reserve to provide some support to public debt dynamics. The report also looked ahead to the November election. "The odds of Democrats overturning the Republican majority in the Senate have shifted in their favor over the past quarter, but it is unlikely that either party will achieve a 60-seat majority," Fitch analysts wrote. "A continuation of policy gridlock is a risk. Political polarization may weaken institutions and reduces the scope for bipartisan cooperation, hindering attempts to address structural issues (including some highlighted by the pandemic and protests) but also longer-term fiscal challenges."
1:52 p.m. July 27, 2020 - Associated Press
Oprah ends print editions of O Magazine, announces new Apple TV+ series Magazine will continue to live online; new streaming talk show to debut ThursdayO, The Oprah Magazine is ending its regular monthly print editions with the December 2020 issue after 20 years of publication.
10:51 a.m. July 25, 2020 - By Keith Jurow
The feared jumbo mortgage debacle is here — thanks to the coronavirus — and ready to pound the housing market COVID-19 pandemic is squeezing borrowers’ ability to stay in their homesCOVID-19 pandemic is squeezing borrowers’ ability to stay in their homes, writes Keith Jurow.
4:08 a.m. July 18, 2020 - By Tonya Garcia
Online food prices jump as food companies struggle to meet demand Digital purchasing power has fallen into negative territory for the first time ever, according to Adobe dataOnline food prices have climbed 4.2% over the past six months according to the latest Adobe Inc. data as grocery e-commerce accelerated amid the COVID-19 pandemic and food producers struggled to keep up with continued high demand.
10:05 a.m. June 24, 2020 - By Andrea Riquier
Canadian ETFs lose ground as Fitch cuts sovereign ratingExchange-traded funds made up of Canadian securities slumped Wednesday in the wake of a sovereign debt downgrade. Fitch Ratings on Wednesday cut the country's rating to AA+ from AAA, citing "deterioration of Canada's public finances in 2020 resulting from the coronavirus pandemic." The ratings agency noted that Canada will run a much larger general government deficit in 2020 and emerge from recession with much higher public debt ratios. The iShares MSCI Canada ETF was 2.2% lower in the early afternoon, as was the JPMorgan BetaBuilders Canada ETF .
8:59 a.m. June 12, 2020 - By Jillian Berman
‘Higher education essentially preserves intergenerational racial and class inequality’: How coronavirus could make it worse With colleges squeezed for revenue, persistent problems are likely to continueWith colleges squeezed for revenue, persistent problems are likely to continue.
4:55 a.m. June 5, 2020 - By Steve Goldstein
This contrarian strategist recommends chasing bears in these hard-hit sectorsOne strategist explains why he likes the sectors that bearish investors are betting against.
11:02 a.m. May 23, 2020 - By Howard Gold
Warren Buffett has lost at least $7 billion from his last 3 big investments Berkshire Hathaway’s recent track record is really, really badBerkshire Hathaway’s recent track record is really, really bad.
2:46 p.m. May 12, 2020 - By Joy Wiltermuth
Fed spells out terms of TALF rescue facility, potentially paving way to unleash funds in weeks Fed facilities already providing ETF boostThe Federal Reserve on Tuesday laid out specifics for participants in its $100 billion Term Asset-Backed Securities Loan Facility to keep credit flowing to U.S. consumers and businesses during the pandemic, potentially paving the way to kick off the program in mid-June.
11:17 a.m. May 7, 2020 - By Ciara Linnane
Coronavirus update: U.S. death toll tops 74,000, as Trump administration shelves ‘too cautious’ CDC guide to reopening Tesla is gearing up to reopen California plant, and retailers Gap and Kohl’s are starting to open their doorsThe number of U.S. fatalities from the coronavirus that causes COVID-19 climbed above 73,000 on Thursday, as President Donald Trump’s administration said it is shelving recommendations from the Centers for Disease Control and Prevention on reopening safely because they were too cautious
2:51 a.m. May 7, 2020 - By Ciara Linnane
Fitch downgrades General Motors rating to one notch above junk Fitch Ratings downgraded General Motors Co.'s long-term issuer default rating to BBB-minus from BBB, putting it one notch above junk status. The rating agency also downgraded GM Financial's IDR to BBB-minus, and said both ratings outlooks are stable. The move is based on the expectation that the auto giant's credit profile will remain weak for a prolonged period, against the macroeconomic environment caused by the coronavirus pandemic. "Fitch expects the macro environment to remain weak through the rest of 2020 and much of 2021, which will likely keep sales volumes well below the 2019 level into much of 2022," the agency said in a statement. "The company's more concentrated operations, with its automotive FCF completely dependent on the North American and Chinese auto markets, could also pose some risk in the future, although it has resulted in less cash burn in the current environment." GM's ratings and stable outlook reflect the company's strong liquidity position and the expectation that it will retain and investment-grade rating once the peak of the pandemic has passed. GM shares were up 1.8% premarket, but have fallen 40% in the year to date, while the S&P 500 has fallen 12%.
4:21 a.m. May 5, 2020 - By Andrea Riquier
A new asset class joins the ETF world: sukuk A little more yield, a little more risk? A new ETF is the first to offer access to sukuk, Islamic finance-compliant instruments similar to lease agreements.
2:11 p.m. May 4, 2020 - By Ciara Linnane
Coronavirus update: Global case tally passes 3.5 million; Trump and senior officials continue to lash out at China J. Crew files for bankruptcy and GE announces permanent job cuts at its aviation unit; global deaths top 250,000The number of cases of the coronavirus that causes COVID-19 climbed above 3.54 million on Monday, as President Donald Trump and senior members of his administration continued to lash out at China, where the virus was first reported late last year.
5:15 a.m. May 4, 2020 - By Tomi Kilgore
Starbucks credit downgraded to 2 notches above 'junk' at Fitch, outlook is negativeStarbucks Corp.'s credit rating was downgraded to BBB from BBB+ at Fitch Ratings, citing the coffee seller's high debt leverage amid a "significant business interruption" from the coronavirus pandemic. Fitch said the rating outlook is negative, which warns of further downgrades. Starbucks's credit rating is now two notches above "junk" territory at Fitch. The credit rating agency said the downgrade follows Starbucks's proposed $3 billion debt offering and disappointing . Fitch said the negative outlook reflects the downturn on discretionary spending caused by the coronavirus pandemic, which Fitch expects "could extend well into 2021." The stock, which fell 1.2% in premarket trading, has lost 16.5% over the past three months through Friday, while the S&P 500 has shed 14.2%.
5:12 a.m. April 29, 2020 - By Steve Goldstein
Beaten-up value stocks are offering opportunities of a generation, fund manager saysOne fund manager is convinced value stocks will come back. Here’s where he is invested.
4:03 a.m. April 28, 2020 - By Lina Saigol
HSBC, Santander and UBS set aside billions for loan losses for coronavirus Europe’s lenders set aside billions in bad loan provisions HSBC, Santander and UBS set aside billions of loan loss provisions as they prepare for a wave of credit losses caused by the coronavirus pandemic.
8:26 a.m. April 18, 2020 - By Tonya Garcia
Nordstrom can withstand 12 months of store closures, but other department stores have much less time, analysts say Retailers have taken steps to cut expenses, but they’re going to need $1 billion in working capital, Cowen saysNordstrom has taken steps to increase its liquidity amid the Covid-19 outbreak, but other department stores could be in trouble, analysts say.
12:46 a.m. April 17, 2020 - By Lina Saigol
Vulture funds prepare to swoop in and feast on troubled company debtDistressed debt funds begin to circle troubled companies hit hard by the impact of the coronavirus pandemic
7:38 a.m. April 16, 2020 - By Joy Wiltermuth
U.S. commercial real estate braces for defaults as pandemic cuts cash flows ‘Everybody needs help,’ says Ann Hambly, founder of 1st Service Solutions, about commercial property ownersThe coronavirus pandemic has turned the $4.4 trillion U.S. commercial real estate finance market upside down, as landlord facing missed rents during the shutdown and race to get aid.
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