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Tesla Hits All-Time High Before Being Downgraded: Where to Now?

What is the most shorted stock on Wall Street, you ask? Just beating out Apple for the top spot, it is Elon Musk’s Tesla (TSLA). $14.5 billion have been borrowed by investors in order to bet against the electric car manufacturer, apparently.The news is not very surprising as Tesla is one of the most polarizing companies out there. Hardly ever out of the headlines, most Wall Street observers have an opinion on what the future holds for the automobile industry disruptor.Earlier this week, Tesla notched an all-time high, closing Tuesday’s session at $537.92. The figure rounds out an extraordinary six …read more […]

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What the China Trade Deal Means for U.S. Oil Producers

(Bloomberg Opinion) — On the face of it, the Phase One trade deal signed between the U.S. and China last week looks set to provide a big boost to American oil and gas producers who need to develop new export markets. Just how well they fare against exporters who are much closer to the world’s biggest energy importer may depend as much on economics as on politics.The energy trade section of the deal signed on Jan. 15 commits China to increasing its purchases of American energy products — crude oil, refined products, liquefied natural gas and coal — from levels …read more […]

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U.S. Firms Could Win Lucrative Job of Cleaning Up China's Bad Debt

(Bloomberg) — One surprising part of the trade deal struck between U.S. President Donald Trump and Beijing is that U.S. investors won a direct shot at the potentially lucrative job of helping China clean up its heap of bad debt.China is embracing foreign capital as it grapples with a tide of soured debt. Some estimate it to have topped $1 trillion as the trade war weighed on economic growth and a long crackdown on shadow banking choked off liquidity.The Communist Party-ruled nation is trying to instill more discipline in the market as corporate defaults have hit records for two straight …read more […]

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'You're stealing our water': Germans protest against Tesla gigafactory

Around 250 Germans on Saturday protested in the outskirts of Berlin where electric car startup Tesla is planning to build a gigafactory, saying its construction will endanger water supply and wildlife in the area. The U.S. carmaker announced plans last November to build its first European car factory in Gruenheide, in the eastern state of Brandenburg. Politicians, unions and industry groups have welcomed the move, saying it will bring jobs to the region, but environmental concerns drove hundreds of locals to the streets on Saturday. …read more […]

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McDermott International may file for bankruptcy as soon as next week – Bloomberg

McDermott is discussing a restructuring plan in which its debt could be converted into equity, with its group of lenders getting the majority of the shares, the report said. Unsecured creditors would receive less than 10% of the equity along with warrants, according to one of the people cited in the Bloomberg report. …read more […]

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US Stocks: Boosted by Trade Deal, Better Economic Data, Solid Bank Earnings

The better-than-expected economic data demonstrated the resilience of the U.S. consumer in keeping the current economic expansion alive, and the solid corporate earnings from U.S. banks points toward the importance of the Fed holding interest rates at favorable price levels. …read more […]

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Private Equity's Mountain of Dry Powder Is a Danger Sign

(Bloomberg Opinion) — Investors keep flocking to private equity in Asia even though returns are declining. They should take heed: Payouts are likely to get worse from here, rather than better.The hunt for yield in a low-interest world has spurred institutional investors from China Investment Corp. to Japan’s Government Pension Investment Fund to join the rush into the alternative asset class. Private equity firms founded by veterans of Warburg Pincus and KKR & Co. are seeking to raise at least $4.5 billion for new funds in China, Cathy Chan of Bloomberg news reported Thursday, in the latest sign of the …read more […]

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Notable Insider Buys Last Week: Small-Cap Biotechs

At two of them, the shares were sold in recent secondary offerings. Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit. The following are a few of significant insider purchases reported last week, all small-cap biotechs. …read more […]