Wednesday , February 20 2019
Home / Tag Archives: Companies & Markets

Tag Archives: Companies & Markets

Next Chapter in Bankruptcy & Restructuring Saga of European and Asian Airlines

The fate of the A380 is sealed. By MC01, a frequent commenter, for WOLF STREET: On February 5, German low-cost carrier Germania announced it has filed for insolvency in Berlin and that all flights will be suspended indefinitely. According to the press release, this was due to unfulfilled “short-term liquidity needs,” meaning the company was struggling to raise the cash needed to pay for obligations coming due in the short term, such as fuel bills/hedging, landing fees, maintenance...

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I Was Asked About J.P. Morgan’s Blockchain-Based “JPM Coin.” I Ruthlessly Expand it to Other Payment Systems

Are banks trying to send credit-card-processing fee-gougers Visa, MasterCard et al. the way of Friendster? The crypto world went into a tizzy when J.P. Morgan announced “JPM Coin.” They thought that the bank had switched sides finally, after CEO Jamie Dimon had blasted cryptocurrencies as “fraud.” Given my own blistering rants about cryptocurrencies – such as Bitcoin Plunges to $3,738; Whole Crypto Scam Melts Down, Hedge Funds Stuck – I was asked what I thought about JPM Coin. And so I...

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This Retailer Bankruptcy Will Lead to the Largest Liquidation by Store Count in the US. Liquidation Sales to Start Next Week

Brick-and-Mortar Meltdown for its new shareholders: All of them PE Firms. By store count, this is likely the largest retailer liquidation in the US: Payless ShoeSource is planning to file for bankruptcy again later in this month – just 18 months after having emerged from its first bankruptcy. And this time, it will shutter all its remaining 2,300 or so stores in the US and Puerto Rico, let everyone go at those stores, and be done with it in the US. Its stores in Canada and Latin...

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Bond Funds Are “Potential Source of Financial Instability,” after Years of Global QE and Low Interest Rates: Fitch

“Liquidity issues at bond mutual funds could result in wider contagion and affect other parts of the financial system and the macro economy.” Bond investors go for different risks and returns. There is buy-low-sell-high, unless things don’t work out and it’s buy-high-sell-low. Buy-and-holders buy bonds when issued and hold till maturity, collecting coupon payments and then getting their money back – unless things don’t work out. Other investors buy a bond when a company or an entire...

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THE WOLF STREET REPORT

The New Battle-to-the-Death in the Auto Industry. Auto makers will face the loss of control over core technologies and the commodification of vehicles they market (11 minutes). Pent-up demand for high-priced luxury cars in the era of Carmageddon is a tricky thing, especially when tax credits phase out. Read…  Carmageddon for Tesla Model 3: US Deliveries Plunge 55% to 60% from Q4, Laid-off Delivery Employees tell Reuters    Would you like to be notified via email when...

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Carmageddon for Tesla Model 3: US Deliveries Plunge 55% to 60% from Q4, Laid-off Delivery Employees tell Reuters

Most everyone in the US who ever wanted & could afford a high-priced Model 3 now has one? Pent-up demand for luxury cars in the era of Carmageddon is a tricky thing, especially when tax credits phase out. Details trickling out over the 3,200-plus layoffs Tesla announced on January 18 are starting to paint a picture of what is happening on the demand side for the Model 3 in the US. According to two laid-off employees cited by Reuters, the company has gutted its delivery team of 230...

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New Trucks are Hot, Prices Surge. But Cars Face Carmageddon. And Total Sales Fall

Americans love paying big profit margins for big equipment, and automakers love them for it, but total sales are declining, and something doesn’t add up. The average transaction price of the vehicles sold by Fiat Chrysler jumped 5% in January compared to a year ago; for vehicles sold by Ford Motor Company, they rose 3.4%; for GM 2.4%; for Subaru 5.4%; for Toyota 3.0%. For the industry as a whole, the average transaction price in January, according to estimates by Kelley Blue Book,...

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What the CEO of America’s Largest Mall REIT, Simon Property Group, Just Said about the Brick & Mortar Meltdown and How it’s Trying to Manage It

“I prefer not to scare you at this point, okay. But it’s something that we’ve been able to withstand”: CEO David Simon. Mall-landlord Simon Property Group – as it says, the largest real estate investment trust “in the world” by market capitalization, with 234 “destinations” for shopping, dining, entertainment, and mixed-use in America and elsewhere – has its finger deeply in American brick-and-mortar retail. And when its CEO talks about how the company is dealing with these malls, as...

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New Home Prices Drop 12% as Supply Surges

Unwinding years of price gains as homebuilders try to make deals. The Commerce Department has reopened for business, and the good folks there are now in hyperdrive to put together and release the data that was blocked during the partial government shutdown that had also shut down the Commerce Department. This morning, it released the sales data for new homes whose sales closed in November. This report  had originally been scheduled for the end of December. In the near future, the...

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Preparing for a Coming Winter Storm? WeWork Pivots to Minimize Risk for Itself

WeWork landlords in America are likely to learn: In a down market, they’re all going to be partners, voluntarily or otherwise. By John E. McNellis, Principal at McNellis Partners, for The Registry: With major announcements almost daily, WeWork is stealing so many headlines it’s annoying the president. The latest is its name-change to WeCompany, the old name being simply too restrictive for a company bent on global domination. Among its new divisions are WeLive, WeGrow and even WeBank...

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