The Great American Shale Oil & Gas Massacre: Bankruptcies, Defaulted Debts, Worthless Shares, Collapsed Prices of Oil & Gas
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The Great American Shale Oil & Gas Massacre: Bankruptcies, Defaulted Debts, Worthless Shares, Collapsed Prices of Oil & Gas

Via Wolf Street The bankruptcy epicenter is in Texas. By Wolf Richter for WOLF STREET. The Great American Oil Bust started in mid-2014, when the price of crude-oil benchmark WTI began its long decline from over $100 a barrel to, briefly, minus -$37 a barrel in April 2020. Bankruptcies of US companies in the oil and gas sector...

Fed’s Assets Drop for 4th Week, Another -$85 Billion. 4-Week Total: -$248 Billion. Big Chunk, Short Time
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Fed’s Assets Drop for 4th Week, Another -$85 Billion. 4-Week Total: -$248 Billion. Big Chunk, Short Time

Via Wolf Street Repos & dollar liquidity swaps on their way out. SPVs declined. Hardly any corporate bonds and ETFs purchased. MBS flat. Treasuries ticked up. By Wolf Richter for WOLF STREET. OK, this balance-sheet shrinkage, now in its fourth week, is going faster than I’d expected. Total assets on the Fed’s balance sheet for the week ended...

Unemployment Claims Hit New Record: 32.9 Million State & Federal. Week 16 of U.S. Labor Market Collapse
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Unemployment Claims Hit New Record: 32.9 Million State & Federal. Week 16 of U.S. Labor Market Collapse

Via Wolf Street Claims by gig workers under federal PUA program soar, now 44% of total unemployment claims. Where’s the “V-Shaped” recovery of the labor market? By Wolf Richter for WOLF STREET. The data chaos persists, and the unemployment numbers keep getting worse. The torrent of newly unemployed keeps flowing week after week. But a lot of people...

No V-Shaped Recovery for Airline Ticket Sales. They Slide Again. United Announces 36,000 “Involuntary Furloughs”
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No V-Shaped Recovery for Airline Ticket Sales. They Slide Again. United Announces 36,000 “Involuntary Furloughs”

Via Wolf Street “Increase in Covid-19 cases negatively impacting industry demand”: United By Wolf Richter for WOLF STREET. With Covid-19 cases surging in the US and in other countries, airline industry ticket sales for both domestic and international flights are declining again, as demand has turned south, according to a presentation to employees by United Airlines, filed with...

Pandemic Compresses Brick & Mortar Meltdown: Brooks Brothers Files for Bankruptcy, Ascena (Ann Taylor, etc.) Prepares to File, Tailored Brands (Men’s Wearhouse, etc.) Not Far Behind
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Pandemic Compresses Brick & Mortar Meltdown: Brooks Brothers Files for Bankruptcy, Ascena (Ann Taylor, etc.) Prepares to File, Tailored Brands (Men’s Wearhouse, etc.) Not Far Behind

Via Wolf Street These three hold a dozen major brands and thousands of stores. Work-from-home is annihilating the casual and formal office-attire sector. By Wolf Richter for WOLF STREET. The brick-and-mortar retailer bankruptcy plot continues to progress relentlessly. Today, it’s Brooks Brothers, the oldest men’s clothier in the US that also diversified over the decades into women’s attire,...

US House Prices to Drop 6.6% by May 2021, First Annual Decline since Jan. 2012: CoreLogic, Owner of the Case-Shiller Index
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US House Prices to Drop 6.6% by May 2021, First Annual Decline since Jan. 2012: CoreLogic, Owner of the Case-Shiller Index

Via Wolf Street And this, after years of being unwaveringly bullish in its housing market predictions. By Wolf Richter for WOLF STREET. CoreLogic, which owns the Case-Shiller Home Price Index, released its monthly “Home Price Index Forecast” this morning, based on the Case-Shiller data. After years of being bullish about home prices, CoreLogic suddenly turned bearish. It forecast...

Huge Debt Payments Come at Worst Time for Canadian Drillers
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Huge Debt Payments Come at Worst Time for Canadian Drillers

Via Wolf Street “There’s a lot of extend, amend, and pretend with respect to finance documentation. But at some point the music will stop.” By Tsvetana Paraskova for Oilprice.com: The collapse in oil prices has significantly deteriorated Canada’s oil companies’ finances and has made repaying their debt more challenging. Over the past decade, Canadian firms...

Seems Counter-Intuitive in This Crisis: Inflation Heats Up for Services Firms, and They’re Able to Pass it on via Higher Prices
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Seems Counter-Intuitive in This Crisis: Inflation Heats Up for Services Firms, and They’re Able to Pass it on via Higher Prices

Via Wolf Street Even manufacturers, after months of crushed commodities prices, experience inflation and are able to pass it on. Stimulus money the government and the Fed have thrown around by the trillions of dollars in every direction. By Wolf Richter for WOLF STREET. It seems somewhat counter-intuitive in this crisis that companies in the services and non-manufacturing...

A Word About the Bounce in US Services PMIs: No, the Service Sector Isn’t Suddenly Hitting New Highs, it Stopped Plunging
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A Word About the Bounce in US Services PMIs: No, the Service Sector Isn’t Suddenly Hitting New Highs, it Stopped Plunging

Via Wolf Street But both PMIs agree: Jobs dropped further in June. By Wolf Richter for WOLF STREET. Two US services PMIs were released this morning: The broader ISM non-manufacturing PMI, which includes industries that are not typically classified as services – such as agriculture, mining (also oil and gas) and construction – and the IHS-Markit Services PMI,...

As the Biggest Restaurant Chains in the UK Fall into Bankruptcy, Attention Turns to KKR & Other PE Firms that Own Them
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As the Biggest Restaurant Chains in the UK Fall into Bankruptcy, Attention Turns to KKR & Other PE Firms that Own Them

Via Wolf Street PE firms have lots of cash but won’t invest it in their stripped-bare and failing restaurant chains. By Nick Corbishley, for WOLF STREET: After more than three months of not being able to serve either food or drinks, KKR-owned Casual Dining Group (CDG), one of the UK’s largest restaurant groups, collapsed into administration, a...

Massive Shifts Underway, Rental Market Reacts in Near-Real Time: Rents Plunge in San Francisco & Oil Patch, Drop in Expensive Cities. But Long List of Double-Digit Gainers
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Massive Shifts Underway, Rental Market Reacts in Near-Real Time: Rents Plunge in San Francisco & Oil Patch, Drop in Expensive Cities. But Long List of Double-Digit Gainers

Via Wolf Street Rents in San Francisco are still crazy-overpriced. By Wolf Richter for WOLF STREET. There are now at least three factors that have plowed into the US housing market – and the rental market is reacting in near-real time to them: The unicorn-startup bust that began last year and built up into a crescendo this year;...

Despite New Gigafactory in China, Tesla’s Global Deliveries Drop 4.8% in Q2, Much Worse Than I Expected
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Despite New Gigafactory in China, Tesla’s Global Deliveries Drop 4.8% in Q2, Much Worse Than I Expected

Via Wolf Street Hahahaha, that should have been the universal headline. By Wolf Richter for WOLF STREET. Tesla announced this morning – under enormous media hoopla and Wall Street hyperbole – that its global deliveries dropped 4.8% in the second quarter of 2020, to 90,650 vehicles. It doesn’t disclose how many of them were delivered in the US....

Never Before Have I Seen So Much Fake Unemployment & Jobs Data by the Bureau of Labor Statistics. Labor Department Nails It
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Never Before Have I Seen So Much Fake Unemployment & Jobs Data by the Bureau of Labor Statistics. Labor Department Nails It

Via Wolf Street Labor Department today: People on state & federal unemployment insurance jumped to 31.5 million, worst ever. Bureau of Labor Statistics today: 4.8 million jobs created, unemployment dropped by 3.2 million. BLS under-reported unemployment by 13.7 million, based on data from the Labor Department. What’s happening is infuriating. Read and cringe. By Wolf Richter for WOLF...

“Pent-up Demand” Not Yet: UK House Prices in June Fall for First Time Since 2012, Mortgage Approvals Slump to Record Low Despite Partial Reopening
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“Pent-up Demand” Not Yet: UK House Prices in June Fall for First Time Since 2012, Mortgage Approvals Slump to Record Low Despite Partial Reopening

Via Wolf Street Everyone is hoping for that bounce-back. By Nick Corbishley, for WOLF STREET: Tentative hopes that the UK’s housing market would stage a swift recovery in June, the first full month of market trading since the lockdown began on March 26, were dimmed by the Bank of England’s latest release of mortgage approval data. Approvals...

There Sure’s a Lot of Brain-Dead Misreporting About the Case-Shiller Home Price Index this Morning
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There Sure’s a Lot of Brain-Dead Misreporting About the Case-Shiller Home Price Index this Morning

Via Wolf Street No, it’s not yet a reflection of home prices during the Pandemic. Be patient. Reporters or spaghetti-code algos should have read the methodology before misleading their readers. By Wolf Richter for WOLF STREET: OK, dear reader, I feel like I’m fighting a one-man battle against media misinformation or something. I didn’t want to descend into...

Who Will Get Hit When Collateralized Loan Obligations (CLOs) Blow Up? Banks or Unsuspecting “Market Participants”?
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Who Will Get Hit When Collateralized Loan Obligations (CLOs) Blow Up? Banks or Unsuspecting “Market Participants”?

Via Wolf Street Some welcome light is being shed on the murky business of CLOs. By Wolf Richter for WOLF STREET. There has been quite some hoopla surrounding Collateralized Loan obligations (CLOs) because the underlying leveraged loans – junk-rated loans often used by private equity firms to fund leveraged buyouts (LBO) and other high-risk endeavors such as special...