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Tag Archives: Companies & Markets

Dark Side Comes to the Fore: Juul is the Second Highest Valued US Unicorn, Behind WeWork Which Crashed and Burned. Now it’s Juul’s Turn

Altria Rues the Day it Plowed $13 Billion into Juul. Now there’s Juul Labs, the second most highly valued startup in the US, behind WeWork. WeWork already crashed and burned. WeWork’s “valuation” was set at $47 billion behind closed doors by a handful of people with the sole purpose of unloading the shares in an IPO at the maximum price. But in trying to entice investors into the IPO, the unofficial number kept falling, and by the time it had plunged nearly 80% to $10 billion, the IPO...

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Thomas Cook Collapses, up to 600,000 Travelers Stranded in Hotel & Airline Chaos, Triggers “Biggest Peacetime Repatriation in UK History”

Rescue deal fell through at the last moment. China’s Fosun and other shareholders are toast. Creditors get to fight over the debris.  By Nick Corbishley, for WOLF STREET: Thomas Cook, the global travel & vacation-giant with its own airline and hotels, with 21,000 employees globally — 9,000 of them in the UK — and a 178-year history, ceased operations with immediate effect early Monday morning after failing to raise the £200 million of additional funds being requested by its main...

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Interest Rate Derivatives Trading Explodes to $6.5 Trillion/Day

A gigantic spike in 3 years. The UK dominates. By Nick Corbishley, for WOLF STREET: The volume of over-the-counter (OTC) interest rate derivatives traded globally soared by 141% in three years to $6.5 trillion per day in April 2019, according to the Bank for International Settlements’ new Triennial Survey of Global Derivatives Markets. In the prior survey period, April 2016, $2.7 trillion per day in trades were executed. Since 2001, the magnitude of trading volume has multiplied by a...

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WeWork IPO, the Straw that Breaks the Stock Market’s Back? Valuation Plunged by up to 79%

“They’re Going to Screw Up the Market”: Jim Cramer, on the moment-of-truth effects of the WeWork IPO. Much like the Fed, as some would say, Jim Cramer has a dual mandate: to entertain and to pump up the markets. He is certainly excellent as an entertainer. But this morning on CNBC’s “Squawk Box,” he let bleed through just how concerned he is about the stock market that is teetering at the top to such an extent that a single, messy, overhyped company going public will “screw up” the...

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Who’ll Rescue Thomas Cook, the Collapsing Vacation-Travel-Airline Giant with 21,000 Employees?

Shareholders are already toast. Would China’s Fosun conglomerate follow the time-honored principle of throwing good money after bad? By Nick Corbishley, for WOLF STREET: Following yet another bleak week of trading, the shares of 178-year-old British global travel & vacation-giant and airline Thomas Cook, with 21,000 employees globally — 9,000 of them in the UK — are down to 5 pence, down 96% from 130 pence in May last year. At that time, Thomas Cook Group was worth £2.5 billion....

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Here Are Photos of Some of the Dilapidated Equipment San Francisco Wants to Buy from Bankrupt PG&E for $2.5 billion

Californians have had it with PG&E, a convicted felon infamous for sacrificing safety, maintenance, reliability, and people to enhance “shareholder value.” But is San Francisco overpaying? Take a look. This – the offer made on Sunday – has been kicked around in San Francisco since the catastrophic wildfire in Butte County in Northern California last year that killed 85 people, the cause of which was determined to have been PG&E’s electrical transmission lines – how they’ve not...

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Orders for Heavy Trucks Plunged 80% in August

Here’s why — and how that’s impacting truck makers.  Orders for heavy trucks that haul part of the economy’s goods across the US plunged by 80.1% in August 2019 compared to August last year, to about 10,400 orders, according to preliminary estimates by FTR Transportation Intelligence. It was the 10th month in a row of year-over-year declines, and the second month in a row of 80%-plus declines, with orders in July having plunged 81.2% to about 9,800, not seen since 2010. So far this...

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The Airline Fiasco in Argentina as Peso Collapses and New Plan Goes Awry

The curse of pushing volume by selling tickets below cost became an even bigger curse with the peso massacre. By MC01, a frequent commenter on WOLF STREET: On 27 December 2016, the Federal Government of Argentina, under new President Mauricio Macri, launched the “Revolución de los aviones,” the brainchild of the Minister of Transports, Guillermo Dietrich, an ambitious plan aimed at overhauling the stagnant airline industry in Argentina. While often called “deregulation,” it was...

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Lenders Fear Ascena with 3,519 Stores May File for Bankruptcy: Source

Cash running low. Brick & mortar meltdown for landlords. Shares annihilated.  Ascena Retail Group – which operated 3,519 stores of the brands Dressbarn, Ann Taylor, Loft, Lou & Grey, Lane Bryant, Cacique, Catherines, and Justice – may soon file for bankruptcy. That is the fear of a group of about 40 lenders that Ascena owes over $1.4 billion. The lender group, which includes Franklin Resources (Franklin Templeton Investments), Eaton Vance, Lord Abbett, and Greywolf Capital, has...

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Woodford’s Shuttered Fund Crushed Further by Plunging Stocks in its Holdings, such as Muddy-Waters Target Burford Capital

Hedge funds have field day front-running the liquidation. 300,000 investors left twisting in the wind. By Nick Corbishley, for WOLF STREET: Neil Woodford, the manager of shuttered asset management fund, Woodford Equity Income fund, just had one heck of a black Friday. First came news that Link Fund Solutions, which manages the corporate governance of Mr Woodford’s investment vehicles, had slashed the valuation of cold fusion developer Industrial Heat, one of Woodford’s largest...

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