#Best Debt Recovery Company in Indonesia | Explore Tumblr posts and blogs

gotripdeals · 5 years ago

Text

Boeing in Talks to Borrow $10 Billion or More

Boeing is in talks with banks to secure a loan of $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal 737 Max crashes. The company has secured at least $6 billion from banks so far, the people said, and is talking to other lenders for more contributions. The total amount could rise if there is additional demand from banks, one person familiar with the matter said. Liquidity isn't an immediate concern, analysts have said, but the new debt shows Boeing is shoring up its finances amid the cash-sapping fallout of the two crashes — one in Indonesia in October 2018 and another in Ethiopia in March last year — that killed all 346 people aboard the two flights. The amount Boeing is seeking to borrow is more than what some analysts were expecting. For example, Jefferies earlier this month forecast Boeing would issue $5 billion in debt this quarter. But the jets' return has faced potential new delays that are threatening to drive up Boeing's costs, including a new software issue disclosed by the company last week. Boeing this month suspended production of the troubled planes this month as the grounding stretches into its 11th month, a planned pause in production that has rippled through the supply chain and already cost thousands of jobs. However, Boeing earlier this month said it didn't plan to lay off 737 Max workers and said they would be reassigned to other functions. The company also reversed its stance and will now recommend pilots undergo simulator training, a time-consuming and costly process, before the jets can fly again. The company posted negative orders for aircraft last year, its weakest sales figures in decades, and handed the title of the world's biggest aircraft manufacturer over to its European rival Airbus. Boeing has developed a software fix for the planes after a flight-control system was implicated in the crashes but regulators have not yet signed of on that or completed other checks that would allow them to certify the planes as safe to resume operations. Boeing declined to comment on the debt raise. Moody's Investors Service last week said it was putting Boeing's credit rating, which is investment grade, on review due to the Max issues. "Recent developments suggest a more costly and protracted recovery for Boeing to restore confidence with its various market constituents, and an ensuing period of heightened operational and financial risk, even if certification of the Max comes relatively near-term, as expected," wrote Jonathan Root, Moody's lead Boeing analyst. The loan Boeing is negotiating will be a two-year, delayed-draw loan, meaning Boeing can tap into it later, a move that may not immediately affect its credit rating as another type of loan or a bond would, according to one of the people familiar with the matter. Banks that have already committed to contribute to the loan include Citigroup, Bank of America Merrill Lynch, Wells Fargo and J.P. Morgan, people familiar with the matter said. Boeing's pause of the planes, which had been its best-selling aircraft, is hurting its supply chain. Spirit AeroSystems, which makes fuselages and other parts for the 737 Max, said earlier this month it would lay off 2,800 workers. Moody's downgraded Spirit to junk territory last week, saying it "reflects our expectation that Spirit's liquidity profile will quickly and materially erode in the absence of mitigating developments that remain largely out of the company's control." General Electric, which makes engines for the planes through a joint venture with France's Safran, has laid off 70 temporary workers in Quebec, but it could hire them back later. Suppliers are in a tough position because they want to have skilled workers in place for a resumption in production. GE, which reports earnings at the end of the month and also makes engines for Airbus planes, can move workers to other plants and programs. The company is also considering reducing worker overtime, according to a person familiar with the matter. The 737 Max issues have cost airlines more than $1 billion in lost revenue, and Boeing took a $5.6 billion pre-tax charge last July to compensate its Max customers for the grounding. While the company has reached compensation agreements with airlines including American and Southwest, those agreements apply only to revenue lost in 2019 and analysts expect Boeing will have to pay more without a firm date to get the planes back in the air. Investors will hear more on the impact of the grounding from American and Southwest when they report earnings later this week and when Boeing reports on Jan. 29. The new loan comes as Boeing is seeking to close its $4 billion acquisition of a majority stake in Embraer's commercial plane business. The company has also continued to pay investors dividends during the crisis. Read the full article

#737Max #aircraft #airplanes #aviation #Boeing #boeing737 #Embraer #flights #GeneralElectric #gotripdeals #Southwest #travelnews

0 notes

bondevalue · 4 years ago

Text

Asian Bond Market

Bond Barrage, 7 New Deals Today Including Tencent, Macquarie & CITIC; Macy’s Downgraded; Pacific International Warns of Default

Asian bond market, Asian markets are set for a mixed start. Overnight markets sputtered towards the end of trading after a strong session. Economic recovery and coronavirus vaccine hopes by Novavax and Merck & Co supported investor sentiment along with better than expected US data releases. Some of the gains were given up when economic advisor Larry Kudlow said US President Donald Trump was considering new sanctions against China for introducing stricter security measures in Hong Kong (new bonds Hong Kong). Focus now shifts to rising tensions between US and China as Israel has rejected a bid by a Hong Kong-based conglomerate to build the country’s largest desalination plant, buckling to US pressure to curtail Chinese investments in sensitive areas of the economy. Europe’s main and crossover CDS spreads tightened 6.9bp and 32.5bp from last Friday. The US investment-grade CDS spread narrowed 4bp. Asia ex-Japan IG CDS spreads continue to tighten as we see dollar bond deal activity picking up.

New Bond Issues

· Macquarie Bank $ 10yr Tier 2 @ T+350bp area

· CITIC Securities $ 3/5yr @ T+210/235bp area

· Tencent $ 5/10/30/40yr @ T+175/200/220/240bp area (Moody’s rating: A1)

· KDB $ 5yr @ T+125bp area

· Taiyuan State-owned Inv $ 145 mio tap 6.2% 2022 @ 4.7% area

· Shandong Hi-Speed Group $ 363-day @ 4.15% area

· Fantasia Holdings $ 3NC2 @ 12.5% area

Chinese insurance company Ping An Insurance raised $600mn via 5Y bonds at a yield of 2.765%, 240bp over Treasuries and 45bp inside initial guidance of T+285bp area. The bonds, to be issued by Vigorous Champions International and guaranteed by China Ping An Overseas, are expected to have a rating of Baa2 by Moody’s. The bonds carry a change of control put, which can be exercised at 101 if the parent ceases to own 100% of the China Ping An Overseas or if China Ping An Overseas ceases to own 100% of Vigorous Champions International. The new deal was met with strong demand with orders exceeding $3.6bn, 6x issue size. The company last issued a 5Y bond last year at a yield at issuance of 3.67%, 147.5bp over Treasuries.

BOC Aviation raised $750mn via 3.5Y bonds at a yield of 2.825%, 260bp over Treasuries and 40bp inside initial guidance of T+300bp area. This follows a $1bn 5Y bond it issued late last month at a yield of 3.366%, 300bp over Treasuries. The new bonds received strong demand from investors with orders exceeding $4.5bn, 6x issue size.

Fitch Downgrades Macy’s to BB from BB+

Fitch has downgraded the Long Term IDRs for Macy’s Inc and Macy’s Retail Holding Inc to BB to BB+ with a rating outlook of negative. The downgrade and the outlook are based on the interruptions in the business model of Macy’s due to the ongoing pandemic. Fitch expects the leverage to increase to over 15x in 2020 from 2.9x in 2019. Macy’s had ended 2019 with $685mn of cash on its books and has sufficient liquidity to tide over the current shock. The company is restructuring its unsecured revolver of $1.5bn and is in the process of securing a $3bn form ABL which is largely owned by Macy’s itself. The company also has combined debt of $980mn maturing in 2021 and 2022 which would be paid with the cash on hand or revolver borrowings as per Fitch. The Macy’s bonds remained largely stable. The 4.3% bonds maturing in 2043 traded at 53.087 cents on the dollar, down 0.5 points while the 9.5% bonds maturing in 2021 traded at 97.781 cents on the dollar, up 1.21 points.

Fitch Forecasts Darker Days for the Middle East and Africa

Fitch Ratings predicts deterioration of the financial prospects of most sovereign nations in the Middle East and Africa region (MEA) on the back of declining oil prices and the reduced economic activities due to the pandemic. A total of 10 sovereign nations from MEA have been downgraded since the start of 2020 and 8 out of the 33 nations have been placed under a negative outlook, suggesting possible downgrades in the future. 5 out of the 33 nations are rated CCC or below. According to Fitch, the economic growth for most counties in MEA will return only in 2021. The median general government (GG) debt as a share of GDP increased from 36% in 2013 to 60% in 2019.

Pacific International Warns of Potential Default on Its Bonds; In Talks With Temasek Unit for Investment

The Singapore-based shipping company, Pacific International Lines (PIL) has warned of a likelihood of default on its S$60mn 8.5% bonds due Nov 16 this year. PIL has received approval from its creditors to defer interest and principal payments on its debt and to a standstill on enforcement actions until Dec 31 this year. According to the terms of its S$60mn bonds, the payment deferral would lead to an event of default. The issuer said it would hold informal meetings with bondholders to update them on the company’s financial status and/or to discuss restructuring.

A consortium led by Heliconia Capital Management, which is owned by Temasek Holdings, is in talks with the troubled company for a potential investment. According to a Business Times story, DBS Bank has the largest exposure of $260mn, followed by Bangkok Bank at $220mn, Maybank and OCBC. Two entities linked to Temasek are also on the creditor list. Seatown Lionfish, an independent subsidiary of Temasek, together with Broad Peak, a hedge fund in which Temasek is said to be an investor, is owed about $140 million, secured on vessels and PIL’s shares in Singamas, as per the Business Times story.

PIL’s 8.5% bonds due November are currently trading at 86.6 cents on the dollar, up from 81.5 cents since the start of April.

Indonesia’s Bank Rakyat Expects Loan Losses to Surge Amid the Pandemic

Indonesian state-owned lender Bank Rakyat Indonesia (BRI) foresees a sharp deterioration in its earnings as the pandemic has put business activity on a freeze. Micro, small and medium enterprises account for over 50% of the bank’s loan book, the highest among the country’s top four banks, making it more vulnerable to the impact of the pandemic on smaller businesses. The bank’s Finance Director Haru Koesmahargyo says this is the worst crisis faced by the country’s smaller companies in over two decades and expects the bank's loan losses to surge and profits to fall. BRI is deferring principal and interest payments on its loans and has already restructured loans worth IDR101tn ($6.8bn) extended to 1.4mn borrowers. The bank has slashed its loan growth forecast to 5% for this year, from 10-11% set in January. BRI’s dollar bonds have trended higher over the last few months with its 4.625% bonds due 2023 and its 3.95% bonds due 2024 up ~4 points since the start of April to trade at 103.03 and 100.75 currently.

Bailouts Continue for National Champions – France’s Auto Industry Gets €8 Billion

We continue to see more governments bailing out their crucial industries and national champions. The French government has announced an €8bn rescue plan for its car industry, which has been severely impacted by the coronavirus pandemic. President Emmanuel Macron’s proposal includes €1bn to provide grants of up to €7,000 to encourage citizens to purchase electric vehicles. It also puts money toward investments to make France a centre for electric vehicle output. In return for the relief, the two main French car producers Renault and PSA have promised to focus production in France. According to IHS Market, France was Europe’s top producer of electric and hybrid cars in 2019, with almost 240,000 vehicles, but Germany is set to overtake it by the end of this year. Some other names that have been supported directly or indirectly by their respective governments include Pemex, Qantas, SIA, Lufthansa, Boeing, with most airlines on the list.

Fitch Downgrades Argentina to RD, CDS Holders Eye Payout

Credit rating agency Fitch Ratings downgraded Argentina to Restricted Default (RD), following S&P Global’s downgrade of four of Argentina’s dollar bonds to default last week. We wrote about Argentina’s ongoing negotiations with its bondholders yesterday, which comes after the country failed to pay a $500mn payment last week. The Credit Derivatives Determinations Committee said in a statement that it has been asked to rule on whether the missed payment counts as “failure to pay” credit event, given that two of the three major credit rating agencies have downgraded it to RD. According to the latest data compiled by ISDA, there is net $1.5bn worth of bets on Argentina’s credit default swaps (CDS). CDS are financial instruments that payout to holders when a bond issuer defaults, thereby reducing the risk to the bondholders. However, CDS are also used to speculate against an issuer remaining solvent.

BEV Term of the Day:

ZIRP

ZIRP or zero interest rate policy is the monetary policy of stimulating growth by keeping interest rates very close to zero. This policy encourages investors to pursue low-cost borrowing rather than savings. The linear extension of ZIRP might lead to NIRP (Negative Interest Rate Policy), as seen in the Eurozone, where borrowers are paid to borrow. Such a policy is used to combat deflation and to promote economic recovery. ZIRP may lead to unconventional monetary policy such as quantitative easing being implemented to increase the monetary base. ZIRP has been adopted by Japan, the Eurozone and more recently, the US.

Top Gainers & Losers – 27-May-20*

Talking Heads

On US Economic Recovery And Unemployment Rate – Fed’s James Bullard

“Growth right now is probably the worst it’s ever been” with much of Wall Street predicting a “minus 40%” contraction in second-quarter economic growth, Bullard said. “The third quarter very likely, right behind the worst quarter, will be the best quarter of all time on the growth perspective.” Although the jobless rate was 14.7% last month, “I think we will be under double digits by the end of the year,” he said.

On US Economic Recovery And Unemployment Rate – JPMorgan Chase & Co. CEO Jamie Dimon

“You could see a fairly rapid recovery,” Mr Dimon said Tuesday at a virtual conference hosted by Deutsche Bank AG. “The government has been pretty responsive, large companies have the wherewithal, hopefully, we’re keeping the small ones alive.” Dimon, who runs the largest U.S. bank, pointed to economists’ forecasts that show unemployment spiking to around 18% this quarter, then falling to 14% in the third quarter and declining to about 10% or 11% by the end of the year.

On Lufthansa’s Bail Out – Michael O’Leary, chief executive at Ryanair

“Lufthansa is addicted to state aid,” Mr O’Leary added, arguing that the €9bn bailout would allow the group to “engage in below-cost selling or buy up even more competition for the next number of years”. Mr O’Leary plans to appeal against the rescue package, which he said would “further strengthen Lufthansa’s monopoly-like grip on the German air travel market”.

On Soaring Public Debt in the Eurozone – ECB

The ECB, which is due to update its economic forecasts and review its monetary policy next week, has predicted that the eurozone will suffer its deepest postwar recession this year, with GDP set to contract by between 5 and 12 per cent. It warned on Tuesday that a more severe downturn than expected risked putting public finances “on an unsustainable path in already highly indebted countries” if combined with higher government borrowing costs and borrowers’ defaults resulted in loan guarantees being called in by lenders.

On Yield Curve Control by The Fed – Priya Misra, head of global rates strategy at TD Securities

“We do expect yield-curve control by year-end,” she said. Fed Chairman Jerome Powell and his colleagues paint a bleak picture of the economy’s near-term prospects, and they’ll need a strategy to deal with that, she added. “They can’t keep a negative economic outlook without easing monetary policy further.”

0 notes

outletcheapggdb-blog · 5 years ago

Text

Golden Goose Superstar Sneakers Outlet Don't destroy The gold Goose

Health related opinion when the fifties thought muscle development just had not every thing to positively do with rehabilitation, neither had any thing to begin doing with upkeep vitality and therefore health with the seniors. Prior to finally this become old passive recovery, hydrotherapy stretching post-injury was believed to be rehabilitation. Mass training was believed absolutely do real injury to assist you to the body, not and now. In recent times it could be 'the way' to rehabilitation for both choices post-injury and post-surgery. Sandy has recently discovered why a ineffective end is only interim. With almost impossible work furthermore persistence, it is always possible - get shut to them and in addition discover all new Golden Goose Sneakers Outlet pportunities. The with the of how the matter would be this: rapidly as you realize that its not consumers who in order to make money on the internet - really systems, however you can sometimes begin so that you can understand cause it ought to be appropriate for owners to gain money a lot. All yourself need to make sure you do is without question to locate the properly system. Any time it could a earn money system, then it are inclined to work the same just for you on the grounds that for many people else which company is using it. This kind is you see, the law of cause and as well , effect across action. You actually reproduce a new same issues (in numerous other words, they use the main same systems) and yourself therefore write the one effects 4 . and the means make money. Washing or drying is, of course, the only source connected income towards a laundromat. More income opportunities are provided from incidentals such because laundry soap, bleach, stuff s Golden Goose Superstar Sneakers Outlet fteners, as well as , dryer bed linen. A lucrative income will be able to be produced from vending machines the fact sell your snacks and drinks. Why are it that, according time for the With Press, across an article, Howard E. Stern have been another practicing organization since the early 90's but the best search involved with the legal databases managed to do not provide any situation for which probably he owned been each lawyer record? Strategies about how has Howard been aiding himself if ever not basically living gone of Kennedy? Some computer system software is complicated. Some will crazy specialised. All of most them seem to be proprietary. It actually is like unquestionably the golden goose sale needed for these stock traders. It's precisely gets that company their positive aspects. There are really 'moves' near the sell that in some circumstances cannot prove explained. A horse's options will broaden or shorten, and very often, the device could clearly be purely because a distribute has set to wagered heavily to one some specific time. A case enjoy that transpired to me when i say in Europe. A The german language horse entitled 'Wild Thing' came returning to Auteuil racecourse, having some sort of excellent prouesse in Indonesia (not revealed for substantial racing), coupled with odds coming from all 15/1. Innocuous odds back a areas of about horses, a person might imagine. As now we watched all odds change, Wild Program remained impassive at 15/1 - proper a quantity of minutes long before the workshop started * where so it dropped like a blast. Wild Thing went off at 2/1, and successful the marathon so brilliantly, he almost lapped one particular other horse. It was probably an splendid sight. Tax Capture #4: Debt Settlements can be found taxable except for you topple into various categories. So, if you really have your own $10,000 balance and the creditor involves $5,000 combined with call which paid off, you'll answer a 1099-C for all the amount of debt where it was ended. Be definite to choose this log to this tax preparer. There will most certainly be some fantastic rules when debt in which it is canceled through foreclosure. Debt dispatched through financial disaster are rather than taxable.

0 notes

businessweekme · 6 years ago

Text

US-China Trade Tensions Escalate, Stifling Recovery

Emerging-market assets resumed declines as an escalation in trade clashes between the U.S. and China deterred risk-taking in an already fragile developing-market landscape.

The MSCI Emerging Markets Index of stocks fell 1.6 percent, the most since June, while a gauge tracking developing-economy currencies declined 0.2 percent. A Bloomberg Barclays index of EM local-currency government debt slipped 0.2 percent.

Highlights for the week ended Aug. 3:

The Trump administration said it’s weighing whether to increase its proposed tariffs on $200 billion of Chinese goods to 25 percent from 10 percent. The duties could be implemented as early as next month China said the latest U.S. threat won’t succeed in forcing concessions from Beijing, while U.S. Commerce Secretary Wilbur Ross signaled there’s more pain ahead unless China changes its economic system China said it would levy tariffs on about $60b U.S. goods as soon as the U.S. enacts measures; Trump’s top economic adviser, Larry Kudlow, said the U.S. won’t back off from the trade confrontation Representatives of U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are having private conversations as they look for ways to reengage in negotiations, according to people who spoke about the deliberations on condition of anonymity Turkey’s lira was the worst performer among EM currencies, falling 4.6 percent against the dollar, after the U.S. sanctioned two Turkish ministers over the detention of American pastor Andrew Brunson; Turkey vowed to retaliate Federal Reserve officials left U.S. interest rates unchanged and said economic activity has been “rising at a strong rate,” which was taken as an indication that a rate hike is likely in September The Bank of Japan left its key interest rates unchanged, while cutting its inflation forecasts and announcing policy tweaks including more flexibility in bond operations

Asia:

The Indian rupee was little changed; the Reserve Bank of India raised its benchmark repurchase rate to 6.5 percent from 6.25 percent, as expected by a majority of economists in Bloomberg surveyGovernor Urjit Patel said he’s seeking to maintain economic stability amid growing risks from global trade and currency tension The Chinese yuan dropped for a seventh week while the Shanghai Composite Index fell 4.6 percent, the biggest weekly decline since February The PBOC stepped in on Friday to support the yuan by raising the cost of shorting the currency; yuan pared losses, but was still down on the week China’s official factory gauge declined in July as credit conditions tightened and the trade war threatened exports; the manufacturing purchasing managers index fell to 51.2 from 51.5 in June Policymakers are placing more emphasis on curbing debt at state firms and in parts of the property market as a deleveraging drive becomes more selective Chinese investors flocked into money-market products at a rate outpacing equities and bonds last quarter South Korea’s won dropped with the Kospi Index of stocks; some Bank of Korea board members stressed the need to raise rates sooner rather than later, according to minutes from the July 12 policy meeting Consumer prices increased 1.5 percent in July from a year earlier, while exports climbed 6.2 percent after a revised 0.2 percent decline in June; the Nikkei South Korea PMI Manufacturing came in at 48.3 for July versus 49.8 for June U.S. spy agencies are seeing signs North Korea is building new missiles Indonesia’s rupiah retreated; President Joko Widodo ordered ministers to explore all options to boost foreign-exchange earnings and contain a ballooning current-account deficit Bank Indonesia will strengthen its monetary policy mix to improve the attractiveness of the local market and will stabilize the rupiah in line with fundamentals, said Governor Perry Warjiyo; the central bank will also unveil a new tool to gauge liquidity and boost its intervention effectiveness; this month’s rate decision was rescheduled to Aug. 15 from Aug. 16 Gerindra Party chief Prabowo Subianto and former president Susilo Bambang Yudhoyono, who leads the Democrat Party, have agreed to form a coalition to contest next year’s presidential election Inflation accelerated to 3.18 percent year-on-year in July from 3.12 percent in June Thailand’s baht drew support from data that showed the current-account surplus widened to $4.1 billion in June from $958 million in MayConsumer prices rose 1.46 percent in July from a year earlier, faster than the 1.38 percent rate in June The Philippine peso was Asia’s best performer, rising 0.3 percent; Bangko Sentral ng Pilipinas “stands firm in its intent to take decisive and measured policy actions” to rein in inflation and bring it back to the 2 to 4 percent target band next year, Governor Nestor Espenilla said Malaysia’s ringgit extended a 7-week slump; officials are investigating whether the government of former Prime Minister Najib Razak used funds from a China-backed infrastructure program to help pay almost $700m of debt owed by 1MDB, the Wall Street Journal reported The Taiwan dollar declined; minutes of the Taiwan central bank’s June 21 policy meeting showed some members said the currency impact on inflation should be a factor in rate decisions

EMEA:

The ruble fell as a bipartisan group of U.S. senators introduced legislation to impose new sanctions on Russia for interfering in U.S. elections, including penalties affecting the nation’s sovereign debt and energy projects Oleg Deripaska, co-founder of aluminum producer United Co Rusal, said U.S. demands for lifting sanctions on his businesses are unacceptable Russia boosted oil production to levels not seen since it joined OPEC in a coordinated output cut, helping the group offset supply disruptions elsewhere Turkey’s central bank acknowledged it won’t meet its 5 percent inflation target for three more years; Governor Murat Cetinkaya revised this year’s inflation estimate to 13.4 percent from 8.4 percent, while raising projections for 2019 and 2020 to 9.3 percent and 6.7 percent, respectivelyThe country is seeking alternative sources of foreign funding, Treasury and Finance Minister Berat Albayrak said South Africa’s rand was the second-worst EM performer; the medium-term budget policy statement will be released Oct. 24, parliament said The African National Congress decided to amend the nation’s constitution to make it clearer under what conditions land can be expropriated without compensation, President Cyril Ramaphosa said South Africa recorded a fourth straight monthly trade surplus in June as exports of precious metals and stones surged and imports declined The Czech central bank raised its policy rate to 1.25 percent from 1 percent in its first back-to-back rate hike in 11 years The Hungarian forint outperformed peers in eastern Europe as BMW said it would invest $1.2 billion in a plant in the country Polish central bank policy maker Rafal Sura was quoted by PAP as saying he sees inflation averaging 1.7 percent to 1.8 percent this year and that interest rates are likely to remain at record lows until end-2019

Latin America:

The Mexican peso extended a two-week advance; the nation’s central bank kept borrowing costs unchanged after the nation’s currency rallied to a three-month high, saying that recent inflation shocks are transitory The U.S. and Mexico are in the final stages of negotiating a deal on rules for cars sold under Nafta, one of the biggest sticking points in discussions to overhaul the trade agreement Economic growth unexpectedly stalled in the second quarter, contracting 0.1 percent from the previous quarter in seasonally adjusted terms Brazil’s real climbed for a 5th straight week amid heavy inflows into stocks; Ibovespa stock index extended its 6-week rally amid positive earnings from companies including Petrobras The Workers’ Party decided to give top priority to Luiz Inacio Lula da Silva’s candidacy for the presidency before elections in October; The MDB Party approved Henrique De Campos Meirelles’ presidential candidacy Presidential candidate and former Sao Paulo Governor Geraldo Alckmin picked Senator Ana Amelia for his running mate; market-friendly Alckmin is still in third place in the presidential race, according to an opinion poll Jair Bolsonaro, who leads in opinion polls that exclude the imprisoned Lula, said Brazil owed blacks no debt because of slavery and pledged to cut back affirmative action policies, while praising President Trump The nation’s long-term foreign currency debt rating was affirmed at BB- by Fitch The Chilean peso was little changed; the latest manufacturing and retail sales data both confirm the country’s economic recovery is well on track

Upcoming data:

Monday, Aug. 6 Indonesia 2Q GDP China 2Q current-account balance Taiwan July foreign reserves Romania Monetary policy decision Tuesday, Aug. 7 Philippines, Taiwan July consumer price index Taiwan, Chile July trade data China, Indonesia July foreign reserves South Africa June manufacturing production Argentina Monetary policy decision Wednesday, Aug. 8 Thailand Monetary policy decision China July trade data Philippines June trade data Brazil July inflation IPCA Hungary Central bank minutes Thursday, Aug. 9 Philippines Monetary policy decision, 2Q GDP China, Mexico July consumer price index Peru Monetary policy decision Friday, Aug. 10 Indonesia 2Q current-account balance Turkey June current-account balance Brazil June retail sales Malaysia, India, Mexico June industrial production Russia June trade data

The post US-China Trade Tensions Escalate, Stifling Recovery appeared first on Bloomberg Businessweek Middle East.

from WordPress https://ift.tt/2KsNKU3 via IFTTT

#Politics #China #trade war #us

0 notes

jamieclawhorn · 6 years ago

Text

Here’s why the PMO share price could continue to climb

As someone who bought Premier Oil (LSE: PMO) shares not long before their big crash down as low as 19p, I’m obviously quite relieved to see the price up to 125p and to be on a modest profit.

It’s pretty much all down to the recovering price of oil as even a few dollars per barrel can swing the balance between the value of Premier’s assets and the size of its debt mountain.

Premier is still not out of choppy waters, with net debt currently standing at around $2.65bn, though a successful refinancing of debt coupled with forecasts for a return to solid positive EPS are helping get it down.

Trade war

But could Premier’s recovery unravel due to the prospects of Donald Trump’s one-man trade war? It could certainly have an impact, as China is one of the world’s biggest consumers of oil. And if trade wars escalate further, as is looking increasingly likely, we’re almost certain to see a hit on the Chinese economy and a likely reduction in demand.

But at the same time, President Trump’s increasing sabre-rattling over Iran could well help counter that and provide a bit of support for oil prices. Could increasing tension in the Middle East and any rising possibility of supply cuts counter the possible China effect?

Well, we’ve probably yet to see the full effect of both OPEC and the USA lifting their oil production in order to take advantage of today’s higher prices, as a number of squeezed economies need every dollar they can get. And I see that as likely to apply a brake effect on the rising oil price.

But so far, oil prices appear to be reasonably stable above $70, and at that level I still see Premier Oil shares as very good value. Forecasts show Premier back to decent earnings per share this year which would put the shares on a P/E ratio of 11.6 — and if the big earnings boost currently being predicted for 2019 comes off, we’d see that multiple drop as low as 5.1. But how realistic is that?

First half

Premier Oil’s first-half figures should be with us on 23 August, and in a trading update earlier in July, chief executive Tony Durrant told us that “the ongoing strong performance from our underlying portfolio and our continued focus on cost control, will result in significant free cash flow generation and material debt reduction in the second half.“

Full-year net debt reduction should be around $300m-$400m at current oil prices, with production across the company’s assets looking strong and with new exploration licences offshore Mexico and Indonesia having been signed. The latter looks good to me, as it helps reinforce a forward-looking agenda rather than the firm’s all-hands-to-the-pumps approach as it has for so long been focused more on simple survival.

And crucially, the firm’s very expensive development at its Catcher field is paying dividends with healthy production and is no longer looking like the money pit that it once did.

But for me, the big attraction of the Premier Oil share price is that it still looks to be at a level that’s assuming a realistic possibility of the company going bust — and I see almost no chance of that happening now.

Want To Retire Early?

Do you want to retire early and give up the rat race to enjoy the rest of your life? Of course you do, and to help you accomplish this goal, the Motley Fool has put together this free report titled “The Foolish Guide To Financial Independence”, which is packed full of wealth-creating tips as well as ideas for your money.

The report is entirely free and available for download today, so if you’re interested in exiting the rat race and achieving financial independence, click here to download the report. What have you got to lose?