FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 06 February 2016

Early Headlines: Big Oil Adds Debt, Emerging Market Debt Problems, Jobs Not All Bad, Bernie And The Banks, What Syria's Refugees Need, Deadly Taiwan Quake And More

Written by

Early Bird Headlines 06 February 2015

Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.



  • Big Oil Opts for Payouts Over Debt Rating (The Wall Street Journal) The world's biggest energy companies have a tough decision to make amid languishing oil prices: Do they keep their coveted investment-grade credit ratings or maintain century-old practices of paying shareholders annual dividends worth billions in cash? Four of the biggest Western oil companies - Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron Corp. and BP PLC - are poised to pay more than $35 billion in dividends to investors this year, an amount equal to about 40% of their combined cash flows, says Oppenheimer & Co. To do so, they face increased pressure to borrow, a strategy that has alarmed ratings firms.

  • Collapsing crude prices are hurting emerging-market debt (Nikkei Asian Review) Investors in emerging-market debt might have hoped for a different start to the New Year. As oil prices have fallen to new lows, markets have demanded ever-larger premiums for buying emerging-market debt. Risk premiums for such debt are now at their highest since 2011. Most risky asset classes have come under pressure during the first few weeks of the year, but there is a particularly close correlation between the interest rate premium commanded by emerging-market bonds and the oil price. That's because around 26% of the $1.4 trillion in emerging-market debt is directly oil-dependent.

  • Market volatility to continue as emerging markets pay off debt (City A.M.) The strength of the dollar is leading many emerging market economies to start paying off their dollar debts - deleveraging - in response to the strengthening of the dollar. A strong dollar means it harder to repay borrowed dollars if sales revenue or income is in a different currency. It leads to so-called currency mismatches.



  • Imperial Tobacco is dropping tobacco (City A.M.) No, they are not abandoning tobacco profucts, but changing their name to "Imperial Brands". The London Stock Exchange company will have a new symbol Monday morning: IMB (was IMT). On the New York Stockj Exchange the ADR symbol will be IMBBY. The company shares are up just shy of 20% over the most recent 12 months on the London exchange.


Saudi Arabia

  • Saudi currency devaluation would carry major political risk (Reuters) A devaluation of Saudi Arabia's currency could cause such political instability that Riyadh has little choice but to stick to its promise to use vast foreign exchange reserves to defend the riyal's 30-year-old peg to the U.S. dollar. Currency traders have been betting against the Saudi peg. But in Saudi Arabia's largely dollar-denominated economy breaking the peg would immediately raise the price of goods, hitting living standards. Combined with other pending painful economic reforms, this could lead to unrest in a country where the unwritten social contract swaps citizens' obedience and allegiance to the king for good government services and a share in oil wealth.


  • What Syria's Refugees Need (Bloomberg Editorial) The refugees and the countries where they are staying need jobs, infrastructure and education. The European Union may be struggling to absorb 1 million refugees (0.2% of the bloc's population), but Lebanon now has nearly as many Syrian children in its schools as Lebanese children, with many more young Syrians left out. In Jordan, 1.4 million refugees are putting severe strain on already scarce water supplies, power generation and hospitals, as well as schools. Partly in response, government expenditures have risen 38 percent, while the economy has slowed sharply as trade routes to Europe and much of the region have been cut off by war and Islamic State. To cope, the government says it needs $8 billion between now and 2018 to manage.



  • Quake fells Taiwan apartment building, at least five dead (Reuters) A powerful earthquake, magnitude 6.4 at about 4 am, toppled a 17-story apartment building in Tainan, southern Taiwan, on Saturday, killing at least five people, including a 10-day-old girl, and triggering frantic efforts to rescue about 35 people feared trapped inside. Many other buildings have reported damage in the sity of 2 million.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Contributors


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Rising Tide Does Not Lift All Ships
Comments on Feyerabend’s ‘Against Method’, Part II
News Blog
New Seasonal Outlook Updates from NOAA and JAMSTEC - Let's Compare Them.
Infographic Of The Day: Driving Into A Battery Powered Future
Earthquake Risk - Location Matters
Investor Alert: Be On The Lookout For Investment Scams Related To Hurricane Matthew
Lost In Translation: Five Common English Phrases You May Be Using Incorrectly
The Size And Scope Of Samsung's Business
Immigration Is The Top Worry For Britons
People Killed By Russian Airstrikes In Syria
Have You Taken These 4 Simple Steps To Improve Your Trading?
14 October 2016: ECRI's WLI Growth Index Insignificantly Declines
Mom Breaks Down In Tears When Son With Autism Meets Service Dog
Rail Week Ending 15 October 2016 Paints A Negative Economic View
What Is The New Normal For U.S. Growth?
Investing Blog
FinTech Is Taking A Bite Out Of Banks
Options Early Assignment - Should You Worry?
Opinion Blog
US 2016 Election: Will US-China Relations Change
Prop. 51 Versus A State-Owned Bank: How California Can Save $10 Billion On A $9 Billion Loan
Precious Metals Blog
How Will The Election Outcome Impact Precious Metals?
Live Markets
21Oct2016 Market Close: Major US Indexes Close Flat On Low Volume, Crude Prices Resume Climb, US Dollar Stabilizes In Mid 98 Handle, Yes, Most Investors Are Worried Which Way This Market Will Go
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved