NEW YORK: Many U.S. companies that gorged on cheap debt with forgiving terms over the last decade now find themselves shackled by it, spending much of their earnings paying off lenders rather than investing in their businesses or hiring.As small firms, which together account for half of U.S. employment, begin to feel the squeeze, this could have a chilling effect on hiring, wages and consumption, adding to headwinds from wobbly financial markets and ebbing global growth, economists and corporate finance professionals say.The number of companies struggling with their debt obligations is hovering near record highs. Some 17 percent of publicly-traded U.S. companies had trouble making debt interest payments at the end of last year, up from less than 10 percent in 2010 and off from a high of over 20 percent in 2016, according to the Institute of International Finance Inc, a trade group for financial institutions.In value terms, such firms account for a fraction of companies the IIF … [Read more...] about Loose money era leaves trail of US corporate debt junkies
New york debt relief
Pemex’s New York roadshow spooks investors, yields spike
Business Yields on the debt of Mexican state-run oil company Pemex rose sharply this week after the company failed during presentations in New York to lay out a clear plan to reduce debt and increase output, analysts said. 12 Jan 2019 11:10AM Bookmark MEXICO CITY: Yields on the debt of Mexican state-run oil company Pemex rose sharply this week after the company failed during presentations in New York to lay out a clear plan to reduce debt and increase output, analysts said.Pemex faces the possibility of a credit ratings downgrade due to costly proposals by the new government of leftist President Andres Manuel Lopez Obrador that include plans to build a new refinery and upgrade existing ones.Half a dozen investors and analysts who either attended or were briefed on presentations in New York by the company's new chief financial officer, Alberto Velazquez, said they were unconvinced by the plan to turn around Pemex.Mexican financial assets slumped late last year after Lopez … [Read more...] about Pemex’s New York roadshow spooks investors, yields spike
Trump reportedly wants to cut off disaster relief funds to Puerto Rico
By Kate Feldman New York Daily News Mon., Nov. 12, 2018 U.S. President Donald Trump reportedly plans to stop financial aid to millions of Americans in Puerto Rico still dealing with the devastating effects of Hurricane Maria. The president believes, without evidence, that the Puerto Rican government is using the disaster relief funds to pay off debt rather than help its citizens rebuild, according to Axios. The island nation is still rebuilding after Maria’s destruction more than a year ago; most of the country waited almost 11 months for power to be restored and thousands of people are still displaced after their homes were destroyed. Trump was initially reluctant to send money to Puerto Rico and has continually complained about having to do so since. “The people of Puerto Rico are wonderful but the inept politicians are trying to use the massive and ridiculously high amounts of hurricane/disaster funding to pay off other obligations,” he tweeted … [Read more...] about Trump reportedly wants to cut off disaster relief funds to Puerto Rico
News US, Europe stocks enjoy relief rally after midterm vote
NEW YORK -- Stock markets on both sides of the Atlantic charged higher Wednesday after the US midterm elections produced no major surprises, triggering a relief rally. "Financial markets are continuing their forward drive on the realization that investors were rightly positioned for the outcome of the midterm elections," said Jamel Ahmad at FXTM. The Democrats regained control of the House of Representatives following Tuesday's vote, but President Donald Trump's Republican party widened its majority in the Senate. The dollar, however, slid against main rivals as investors expected Democratic control of the House to be "a potential roadblock" to any Trump effort to introduce further fiscal stimulus, Ahmad said. While the election results were broadly in line with forecasts -- with some notable upsets and near upsets in the details -- the outcome means Trump faces a tough 2 years before his 2020 re-election bid, with Democrats appearing ready to fight against his tax-cutting, … [Read more...] about News US, Europe stocks enjoy relief rally after midterm vote
We asked 17 people on the street in New York City what it means to be rich, and most of them didn’t talk about money
caption Sherina Seale said being rich is about having good health. source Myelle Lansat/Business Insider Business Insider asked 17 people around New York City what it means to be rich. Many people defined being rich as having a fulfilling life, full of love and family. New York City is one of the most expensive places in the US to live. New York City is a concrete beast that moves a mile a second. And it’s one of the most expenses places to live in America. According to the Economic Policy Institute’s Family Budget Calculator, it costs $4,771 a month to cover housing, food, transportation, taxes, healthcare, and necessities for a single person in New York. But when we asked people on the streets of New York City what it means to to be rich, many of them didn’t equate being rich with money. Self-made millionaire Chris Reining retired at 37 and believes there is a difference between “being rich” and “living rich,” he … [Read more...] about We asked 17 people on the street in New York City what it means to be rich, and most of them didn’t talk about money