Stocks crumble after report showing sharp drop in U.S. hiring

Category: Finance

Fear has returned to Wall Street as stocks opened sharply lower following disappointing hiring data for July, raising concerns about a slowing economy. The Dow Jones fell over 800 points, with analysts predicting potential interest rate cuts by the Federal Reserve to combat economic stagnation. Despite the downturn, some indicators suggest the overall economy remains strong, with declining inflation and healthy consumer spending.

Keywords: Stock Market, Economic Slowdown, Federal Reserve

Source: CBS News

Update At: 8/2/2024

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Ukraine, Bondholders’ Committee Reach Debt Restructuring Deal

Ukraine has reached a preliminary agreement with private creditors to restructure over $20 billion of international debt, allowing the country to avoid default and allocate funds for its defense against Russia. Bondholders accepted a 37% loss on their holdings, resulting in $8.67 billion in waived claims, while Ukraine anticipates saving $11.4 billion over the next three years through reduced coupons and extended maturities.

Bloomberg.com

The Parliament approved the draft law on the restructuring of the external state debt. The main points

The Verkhovna Rada of Ukraine adopted draft law No. 11396, allowing the government to suspend external public debt payments during restructuring until October 1, 2024. The law includes provisions for including former Ukravtodor's debt in state debt and aims to enhance debt sustainability, supported by the IMF. The restructuring is expected to save over $10 billion in payments by 2027.

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EU Commission urges US, European investment giants to reach ‘swift’ debt restructuring deal with Kyiv

The European Commission has urged private creditors to quickly reach an agreement with Ukraine to prevent a default on $20 billion in debt. A two-year moratorium on interest payments is set to expire on August 1, and negotiations have stalled despite Ukraine's request for a 60% debt reduction. The situation is critical as Ukraine's military spending has surged and its debt-to-GDP ratio is projected to reach 94%. Without restructuring, Ukraine risks not being able to finance its defense and recovery efforts.

Euractiv

Ukraine's budget committee recommends passing a law on suspending debt payments

Ukraine's parliament budget committee has recommended a law to allow the government to suspend debt payments amid ongoing negotiations with investors to restructure foreign debts during the war with Russia.

ThePrint

An important milestone in debt restructuring: Ukraine reaches agreement with Eurobond holders | УНН

Ukraine has reached an agreement with the Eurobondholders' Committee, saving $11.4 billion in debt service over three years and $22.75 billion by 2033, allowing for increased resources for defense and social needs.

Українські національні новини

Ukraine's PM says debt deal frees funds for immediate needs of defence and recovery

Prime Minister Denys Shmyhal announced a debt restructuring deal that will save Ukraine up to $11.4 billion in debt servicing over the next three years, providing essential funds for defense and recovery efforts.

marketscreener.com

Think Tank Concludes Bondholder’s Ukrainian Debt Proposal Is ‘Excessively Harsh’

Ukraine's debt restructuring proposal faces challenges due to the harsh conditions set by Eurobond holders, risking a potential default by August 2024. The RRR4U report highlights the need for a more realistic approach considering Ukraine's wartime economic situation. Two restructuring options have been proposed, but creditor demands may not align with Ukraine's financial realities, prompting suggestions for alternative long-term bonds backed by international guarantees.

Kyiv Post

Flash flooding emergency in Arkansas after torrential rain

Financial markets may experience volatility and shifts in investor sentiment following Biden's announcement not to seek re-election, impacting stock prices and economic forecasts.

NBC News

Should You Buy Stocks With the S&P 500 Near Record Highs? Warren Buffett Has Brilliant Advice for Investors

The S&P 500 has risen 18% year-to-date, driven by enthusiasm for AI and expected interest rate cuts, but many stocks appear expensive historically. Warren Buffett advises caution, emphasizing the importance of buying stocks at rational prices, regardless of market highs. Investors should focus on valuation ratios and consider opportunities even in a high market, as historical data shows many market highs can become floors.

Yahoo Finance

3 bad investing mistakes that put your retirement at serious risk, according to Warren Buffett

Warren Buffett emphasizes the importance of avoiding investment mistakes to secure long-term wealth. Key mistakes include confusing speculative assets with investment-worthy assets and attempting to time the market. Buffett advocates for investing in income-generating assets and maintaining a long-term investment strategy rather than trying to predict market fluctuations.

Yahoo Finance