Because this is what happens when the economy is doing swell.
Low oil prices are leaving many oil and gas companies with difficult debt loads, causing them to default at an extraordinary rate.
On top of that, rating firm Moody's forecasts the default rate will increase.
Marc Lasry, the chief executive of distressed investing specialist Avenue Capital Group, said these energy companies boosted their borrowings to between $250 billion and $300 billion, compared with the $100 billion
at the start of this year.
Of the 31 companies that have disclosed information on loan resets so far, banks have cut credit lines of 10 firms by just over $1.1 billion, Reuters reported.
I love me a good old economic recovery.
PHOENIX - There's devastating news just before one of the most expensive times of the year for many families as Honeywell Aerospace warns employees layoffs will follow holiday furloughs.
According to an internal email, workers can volunteer to leave by early December and then a portion of the workforce will be let go by January and will be offered severance packages.
A whistleblower tells ABC15 about a thousand employees in the Valley will be impacted and the first to go will be those who've been written up by a manager in the past for varying reasons and part of a performance improvement plan.
The employee, who has asked to remain anonymous for fear of retaliation, says some who are believed likely to lose their jobs are just a couple years away from qualifying for their pension.
"What could save them is if someone in the group who's close to retirement would take the golden parachute and leave," said the whistleblower.
The email comes on the heels of mandatory five-day furloughs for about 10,000 Arizona employees that will starting after thanksgiving.
Fifth Third Bancorp has identified another batch of locations where it will close branches, the latest round in its plans to close 105 branches by June 30.
Fifth Third (Nasdaq: FITB), Cincinnati’s largest locally based bank and the 16th-biggest in the country, closed 17 branches in four markets in late October, according to filings with the Ohio Division of Financial Institutions.
The latest round includes nine branches in the Chicago area, four in the Orlando, Fla., market and three more in the Naples, Fla., area. The other closure was in Daytona Beach, Fla.
Does this explain the recent slowdown in housing?
Exit the "all cash" Chinese home buyer.
China's slowdown is already playing out across the world, dragging down commodity prices and weighing on trade partners.
And that's while the economy is still growing at about 7 percent. So imagine what happens in a hard-landing scenario.
The crew at Oxford Economics have done just that in a new report that makes stark reading for anyone with a stake in the global economy.
China's economic boom of the past 30 years means it now accounts for 11 percent of world GDP and around 10 percent of world trade. For resources, it's an even bigger player, accounting for 11 percent of world oil demand and 40 to 70 percent of demand for other key commodities, according to the Oxford Economics research. Its financial system is massive, with its broad money supply now larger than the U.S.'s and amounting to over 20 percent of the world's.
So were China to sneeze, the world may well catch a cold.
From the WSJ.
Main U.S. terminals post decline in imports during peak shipping season for first time in a decade.
America’s busiest ports are sending a warning about the U.S. economy.
For the first time in at least a decade, imports fell in both September and October at each of the three busiest U.S. seaports, according to data from trade researcher Zepol Corp. analyzed by The Wall Street Journal. Combined, imports at the container terminals at the ports of Los Angeles, Long Beach, Calif. and around New York harbor, which handle just over half of the goods entering the country by sea, fell by just over 10% between August and October.
The declines came during a stretch from late summer to early fall known in the transportation world as peak shipping season, when cargo volumes typically surge through U.S. ports. It is a crucial few months for the U.S. economy as well: High import volumes can signal a confident view on the economy among retailers and manufacturers, while fears of a slowdown grow when ports are quiet.
WASHINGTON (AP) — Apartment construction plunged sharply in October, as the pace of homebuilding slipped amid a broader cooling of the real estate market.
Housing starts — both houses and apartments— fell last month 11 percent to a seasonally adjusted annual rate of 1.06 million homes, the Commerce Department said Wednesday.
Single-family house construction declined, but last month's drop mostly stemmed from a 25.5 percent slide in the volatile multi-family category that includes apartments.
Nearly 33 percent of buildings completed so far this year were apartment complexes and condo towers, compared to just 27 percent before the start of the recession in late 2007. The recovery from that economic downturn over the past six years has reshaped the housing market as those who lost their homes to foreclosures and recent college graduates have moved into rental properties.
The percentage of Americans who own homes has fallen to nearly a 48-year low of 63.7 percent.
Warren Buffett’s Berkshire Hathaway Inc. reduced its investment in Goldman Sachs Group Inc. by 13 percent during the third quarter.
Good one. Still here, and still holding FTR. Shares will hover around $5 as debt issuance based on $5 share price. Execution is now key as most regulatory hurdles cleared. Full speed ahead.
BTW- Been busy with the docs as my mother (who lives with us) isn't doing so well these days.
Lay offs are good news, just ask the Pollyanna's on this board.
ERIE, Pa. -- Employees at GE Transportation and the Erie community took a gut punch Friday as the company announced plans to cut 1,500 jobs in one of the biggest layoffs Erie has seen in years.
It's a "devastating blow" for the Erie community, said Scott Slawson, president of Local 506 of the United Electrical, Radio and Machine Workers of America.
Tammy Hammer, a 54-year-old Waterford woman who has worked her entire life in manufacturing, will likely feel the brunt of that blow.
Hammer, who started at GE Transportation four years ago, said it has been the best job of her career.
Now she wonders what's next.
"I'll probably be one of the ones laid off," Hammer said Friday outside of GE's Water Street entrance shortly before 3 p.m., when the second shift begins work. "I'll try not to worry too much today. Worry doesn't change anything, but it's hard to not worry about what you're going to do."
Numbers hint at the larger story.
The 1,500 jobs that GE Transportation plans to eliminate, beginning as soon as late December and continuing through the early months of 2016, represent 1.2 percent of all jobs in Erie County. The loss of those jobs alone has the potential to raise Erie County's unemployment rate by more than a full percentage point.
But these aren't just any jobs.
The company said earlier this year that the average hourly worker in Erie earns $34 an hour.
Based on a full-time schedule -- not counting overtime -- that adds up to lost annual wages of $106 million a year.
If the company moves ahead with its plan, 1,500 lost jobs represents a full third of the company's Erie workforce, which currently numbers about 4,500 people. And it would reduce the Lawrence Park Township's plant's 3,200-member union workforce by nearly half.
Note- "excludes investors".
Housing is recovering in sales and prices, but one segment is stubbornly weak and getting weaker. The share of first-time buyers fell to the lowest level in nearly three decades, just 32 percent of all purchases, according to the National Association of Realtors' annual profile of buyers and sellers. Investors are not included in the survey.
MINNEAPOLIS (AP) -- Target plans to close 13 stores nationwide, including one in New Ulm and two others in Milwaukee and Superior, Wisconsin.
The Minneapolis-based retailer says a decision to close a store usually follows several years of decreasing profitability. The retail giant plans to close the stores on Jan. 30, 2016.
Target was hurt by a massive credit-card breach before Christmas 2013 that sent shoppers temporarily fleeing. The company also botched a major expansion into Canada and pulled the plug on that earlier this year.
Layoffs in 2015 included 2,500 jobs, or about one-fifth of the workers in the company's corporate offices in Minneapolis and Brooklyn Park.
Put another song on the jukebox.
ATLANTA (AP) _ PulteGroup Inc. (PHM) on Thursday reported third-quarter earnings of $107.8 million.
On a per-share basis, the Atlanta-based company said it had net income of 30 cents. Earnings, adjusted for non-recurring costs, came to 33 cents per share.
The results fell short of Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 43 cents per share.
The homebuilder posted revenue of $1.51 billion in the period, which also did not meet Street forecasts. Three analysts surveyed by Zacks expected $1.73 billion.
Verizon may be laying off as many as 6,000 employees as rival Sprint culls its payroll, according to a Wall Street analyst.
Jeffrey Kvaal, with Nomura Securities International, wrote in a note to clients that Verizon employees had been informed of the cutbacks. Kvaal cited a Bloomberg article about Verizon’s plan to reorganize its wireless business and reduce its wireless employee count.
“Although the company did not specify the magnitude of the cuts, nor the areas impacted, our checks suggest the cuts will be broad-based and impact 5-6k (5,000 to 6,000) employees,” his note about Verizon said.
Jeffrey Nelson, vice president of corporate communication at Verizon, declined to address the number of layoffs Kvaal indicated but acknowledged earlier statements that job cuts would be part of the reorganization.
Verizon wireless employs about 180,000, according to Kvaal, who said he would not be surprised if the layoffs involved the company’s “legacy wireline business” as well.
Nothing but blue skies smiling at me.
And even though Chevron said in July that its cost-cutting initiatives would be "completed by mid-November of 2015" it decided to surprise everyone moments ago when on its earnings call it announced it would not only slash its capex by another 25%, but will shortly distribute another 7,000 pink slips. The reason: another terrible quarter in which the $2 billion in earnings were a 73% plunge from a year earlier.
Three food factories operated by Kraft Heinz Co. in upstate New York could be closed in a new wave of cost-cutting.
The plants in Avon, Walton and Campbell employ a total of 930 employees, according to the Kraft Foods employment website.
“These three New York factories are under close review and an announcement about their future will be communicated in the next week or so,” Kraft Heinz (Nasdaq: KHC) spokesman Michael Mullen said in a statement.
Because everything is swell I suppose?
Deutsche Bank on Thursday said it would reduce its workforce by some 9,000 full-time jobs by 2020 and close operations in 10 countries.
Litigation costs push Deutsche Bank to third quarter record loss AFP
Deutsche Bank to cut 35,000 jobs after $6.6 billion loss Associated Press
Restructuring Deutsche Bank reports 3Q loss of $6.6 billion Associated Press
Deutsche Bank Trading Revenue Rises as Writedowns Cause Loss Bloomberg
Deutsche Bank Q3 trading gains overshadowed by writedowns Reuters
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About 6,000 external contractor positions will also be scrapped by 2020. In addition, the bank plans to dispose of assets with a total cost base of approximately 4 billion euros and 20,000 jobs over the next 24 months. Those assets include its Postbank retail bank.
The bank will withdraw from Argentina, Chile, Mexico, Uruguay, Peru, Denmark, Finland, Norway, Malta and New Zealand.
From November of 2004.....
NEW YORK (CNN/Money) - Kmart is buying Sears, Roebuck & Co. for $11 billion in a deal that will marry two of the nation's oldest retailers that had trouble keeping up with the changes in American culture around them.