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Deep in the red: Chinese county pays price for vanity-project binge

“If a local administration raises debt in violation of central government policy, local officials will be held responsible for their entire life.”” writes Midwest Communications Inc for 95kqds.com. More than 1 billion yuan in debt was disposed of in that restructuring, he said.Hunan province also placed Rucheng on a “top-level government debt warning list” of counties with debt ratios over 100 percent, the Rucheng officials said. Source: 95kqds.com Share This:

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The debt threat: Business debt, and worries about it, are up

“But with interest rates rising and U.S. economic growth expected to slow next year, worries are building from Washington to Wall Street that corporate debt is approaching potentially dangerous levels” writes The Associated Press for seattletimes.com. Even the chairman of the Federal Reserve has taken notice of the rise in corporate debt.U.S. corporate debt has grown by nearly two-thirds since 2008 to more than $9 trillion and, along with government debt, has ballooned much faster than other parts of the bond market.To take advantage, they’re increasingly “shorting” corporate bonds, which…

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Merck to acquire France’s Intelliq for 2.1 billion euros in cash, assumption of debt

“MRK, +1.28% said Friday it has reached agreement to acquire privately held French company Antelliq for 2.1 billion euros in cash, and the assumption of EUR1.15 billion in debt” writes Ciara Linnane for marketwatch.com. Merck shares fell 1% in premarket trade, but have gained 39% in 2018, while the S&P 500 SPX, -0.02% has fallen 0.9%.The company works with farmers, veterinarians and pet owners to gather data needed to manage the health of livestock and pets.Antelliq specializes in digital animal identification, traceability and monitoring and had EUR360 million in sales…

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Italian government debt grew to €2.334 trillion in October

“Forget about the budget, it’s only a fraction of a problem if you put it in comparison to Italy’s debt pile” reports forexlive.com. And when that happens, expect Italian assets and the euro to be hit with a very large knock on the head because of the realisation that the debt-to-GDP ratio is only going to continue to rise.With Italian GDP contracting for the first time in four years during Q3, it’s hardly a pillar of confidence for investors that the ballooning debt-to-GDP ratio in Italy will settle down any…

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ASU chief: Colleges face a ‘completion crisis’ — half of students since 1980 never graduated

“It’s a completion crisis, not a debt crisis,” Crow said in a “Squawk Box” interview” writes Matthew J for cnbc.com. Those four-year degree completion rates were a bit higher when the time frame was compressed, according to data from the National Student Clearinghouse.”If you have debt and don’t finish, you have a huge problem.”.  Source: cnbc.com Share This:

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The Student Debt Crisis, and the FIRE Movement

“Youngme Moon, Felix Oberholzer-Gee, and Mihir Desai discuss staggering student debt levels, the FIRE (Financial Independence, Retire Early) Movement, and share their After Hours picks for the week” reports hbr.org. You can follow Youngme and Mihir on Twitter at: @YoungmeMoon and @DesaiMihirA. HBR Presents is a network of podcasts curated by HBR editors, bringing you the best business ideas from the leading minds in management. Source: hbr.org Share This:

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This is one of the biggest market risks that investors aren’t giving enough attention

“To avoid the pitfalls of corporate debt, Bell said more extensive research on a company’s financial health is a necessity” writes unknown author for cnbc.com. But another big market risk flying under the radar could cripple the bull market, said Lindsey Bell, an investment strategist at CFRA Research.Corporate debt, she said, is building to untenable levels just as the Federal Reserve is looking to raise rates again.”With over $9 trillion in corporate debt on the balance sheets out there, that’s concerning,” Bell said Tuesday on CNBC’s “Trading Nation.”. Peak earnings…

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Markets News 

JPMorgan’s bond market awards for 2018

“Bond market vol (MOVE) has spiked from 45 to 60” writes J P for businessinsider.com. After trading around 10 most of 2017, the VIX (equity market vol) has been spending 18Q4 between 20-25.In an era of QE, ZIRP/NIRP (zero interest rate policy/negative interest rate policy) and rampant asset price inflation – cash was truly trash.As the Federal Reserve was scrambling to raise rates and run down its balance sheet, Italian debt was enjoying its own mini Renaissance. Source: businessinsider.com Share This:

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