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19
DEC
2022

Pakistan pleads for flood relief after ‘cameras have gone’

Pakistan’s Foreign Minister Bilawal Bhutto Zardari urged the world to continue to help the South Asian nation recover from devastating floods ahead of a United Nations conference next month to mobilise funding.
Pakistan is facing an economic crisis with reserves covering one month of imports, a dollar shortage and a delay in its loan program with the International Monetary Fund. Investors are still concerned about the nation’s ability to pay its debt, with long-term dollar bonds continuing to trade at distressed levels despite the payment of a $1-billion bond this month.
“We find ourselves in this incredibly difficult position where we’re trying to manage our macroeconomic indicators with the IMF and provide the imminent relief for the people that is still necessary now in Pakistan, and plan forward for reconstruction and rehabilitation,” Zardari said in an interview with Bloomberg Television in Washington DC. “Unfortunately, the cameras have gone, the attention has disappeared, but there are still floodwaters in many areas of my country.”
Pakistan’s unprecedented floods in the summer killed more than 1,700 people, inundated a third of the nation and cut the nation’s growth by half. The floods have left about $32-billion in damages and losses to the nation’s economy.
The United Nations said the global community hasn’t provided enough funds after the devastating floods in Pakistan and that may lead to the suspension of its food support programme next month. The UN and Pakistan’s joint appeal garnered only about 30% of the $816-million funds requested, according to Julien Harneis, UN resident and humanitarian coordinator in Pakistan. They will seek more funds at a conference in Geneva, Switzerland, scheduled for 9 January.
Pakistan has seen a delay in its latest IMF loan tranche amid prolonged discussions with the global body, which has asked for details on how much the nation will be spending this year for rehabilitation after the devastating floods. The IMF indicated that talks have been productive to revise the macroeconomic outlook after the floods, resident representative in Pakistan Esther Perez Ruiz said in a statement this month.
“The entire unity government agrees that it’s important for us to deal with international financial institutions — we want to see the fundamental reform that’s required for the overall health of our economy,” Zardari said. “But at the moment, our number one priority has to be helping these people who are in extreme, extreme distress in the short, medium and long term.”
‘Eight-month tantrum’
Pakistan is also ...
19
DEC
2022

Yen surges on yield-curve change; Asia stocks fall: markets wrap

The yen strengthened as the Bank of Japan said it would let benchmark bond yields rise further. Asian equities headed for a fourth day of declines amid investors concern on the global inflation outlook.
The BOJ kept policy rate unchanged, but increased the upper band limit on the yield target to 0.5%. The yen had been appreciating since late October and got a boost more recently from speculation of pivoting away from ultra-lose policy.
Japanese government bond trading was in a midday break.
Shares dropped in China, South Korea and Australia, while Japanese shares eked out a small gain. Reports of growing disruptions from Covid outbreaks remained concerns among investors in Hong Kong and mainland.
US stock futures turned lower after the BOJ policy decision. The S&P 500 had closed at its lowest level in more than a month on Monday. The benchmark was dragged down by declines in big-tech firms including Apple, Microsoft and Amazon.
A gauge of the dollar dropped as it rallied.
In China, banks maintained their benchmark lending rates, including the five-year rate that is a reference for mortgages, for a fourth month after the central bank kept its monetary policy settings unchanged last week.
Oil was higher as investors weighed a pledge from China to revive consumption against broader low-risk sentiment, with West Texas Intermediate above $75 a barrel.
Still, global sentiment remained sour after former New York Fed president and Bloomberg Opinion columnist William Dudley told Bloomberg Television on Monday that optimistic markets could only make the central bank tighten even more.
Milford Asset Management sees the risk of profit decline among companies dragging for longer as the economy slows. “We are looking for at least a profit decline of 20% and possibly a bit more. That’s going to be a bit of a shock to investors next year,” William Curtayne, portfolio manager, said on Bloomberg Television.
19
DEC
2022

Bankman-Fried sent back to Bahamian jail after catching lawyer off-guard with US extradition plan

After hitting an abrupt and confusing snag in a Bahamas courtroom, Sam Bankman-Fried’s preparations to be extradited to the US appear back on track.
FTX co-founder Bankman-Fried said in court on Monday that he was ready to waive his right to fight extradition to the US where he faces fraud charges over the collapse of the cryptocurrency exchange. However, his local lawyer, Jerone Roberts, said in the same hearing that he wasn’t aware of the plan.
Ultimately, the proceedings were adjourned, and Bankman-Fried was ordered to return to jail. Later in the day, Roberts told local media that Bankman-Fried wouldn’t fight extradition and could be back in court again this week. Attempts to reach Roberts were unsuccessful.
The chaotic scene is the latest twist in the high-stakes drama that has been playing out since Bankman-Fried was arrested last week at the request of US authorities.
Although he initially said that he would fight extradition, Bankman-Fried has more recently indicated in private conversations that he was preparing to return to the US as soon as Monday, according to a person with direct knowledge of the matter.
Bankman-Fried’s change in attitude is in part tied to the expectation that he’ll be able to get bail in the US, according to the person, who asked not to be identified due to the sensitivity of the matter.
Former federal prosecutor Tim Howard said a US bail deal for Bankman-Fried is definitely a possibility. Willingly returning to the US would help calm fears that he’s a flight risk, though he’d still have other conditions to meet.
“If the defendant was to offer a substantial bail package secured by cash, home detention and location monitoring, I could see a situation where prosecutors would agree to that,” he said.
Representatives for Bankman-Fried and the US Attorney’s Office for the Southern District of New York, which has been handling the case, declined to comment on Monday.
Bankman-Fried wore a blue suit and a white shirt to Monday’s proceedings, which played out in a courtroom packed with about 20 people, including several who appeared to work for the US government and members of the press. There was confusion from the start as Roberts asked for clarification on the purpose of the hearing, and said he was “shocked” to find out that his client was in court.
“Whatever trail got him here this morning, it did not involve me,” said Roberts. “I am not at the front of what is ...
19
DEC
2022

US Stocks Drop as Traders Mull Rate-Hike Path: Markets Wrap

US stocks dropped as traders mulled the Federal Reserve’s path next year after central bank officials vowed to keep raising rates until they’re confident inflation has been subdued.
The S&P 500 and the tech-heavy Nasdaq 100 declined. Shares of Tesla Inc. gained in anticipation of Elon Musk stepping back from Twitter Inc., the social-media company that distracted him from running the electric-car maker for months. Twitter users voted 58% in favor of Musk stepping back from the leadership role. Treasuries dropped, with the policy-sensitive two-year yield around 4.22%.
Investors are still on the edge after recent remarks from the Fed and other hawkish central banks across the globe. But some may be looking past fears of an economic recession triggered by higher interest rates, and betting instead that inflation might be peaking, allowing the Fed and its peers some leeway in their tightening policy.
“I’m kind of more in the camp of they hike in February, and I do think they’ll hike again in March, but that’s probably it,” Matt Brill, head of US investment grade and senior portfolio manager at Invesco, said on Bloomberg Television. “We’re 90%-95% of the way done here. I think the floor has sort of been set and the worst is certainly behind us.”
But to Dennis DeBusschere, founder of 22V Research, the Fed restating their hawkish rhetoric complicates the near-term backdrop for the S&P 500.
“There is no near-term catalyst to reverse the market trend, but the downside to 3,800 is limited unless a negative catalyst appears,” he said.
Equity investors were also somewhat heartened by a vow from China’s top leaders to boost the economy next year by reviving consumption and supporting the private sector. While news of a Covid surge across China capped Asian market gains, Beijing’s pledge lifted energy and metals prices, with those sectors leading gains on Europe’s Stoxx 600 index.
The dollar was little changed as money markets weighed prospects of slowing US rate hikes, and amped up bets on higher rates elsewhere. The euro strengthened, following a string of hawkish comments from rate-setters.
On commodities, Beijing’s pro-growth pledge and a US move to refill strategic crude reserves boosted oil futures, though economic growth fears kept prices on track for a second monthly loss.
Key events this week:
China loan prime rates, Tuesday
Bank of Japan interest rate decision, Tuesday
US housing starts, Tuesday
EIA Crude Oil Inventory Report, Wednesday
US existing home sales, US Conference Board consumer confidence, Wednesday
US GDP, initial jobless ...
19
DEC
2022

What Led Twitter Users Into Voting Elon Musk Out: Timeline

After less than two months at the helm of Twitter Inc., Elon Musk asked his followers whether he should keep the job, pledging to abide by the result of the poll. They said he should step down.
It’s the latest episode in a tumultuous series of events that’s played out since he acquired the social network for $44 billion. In less than two months, Musk halved the company’s workforce, fired most of its executives, and asked the remaining employees to commit to “hardcore” hours.
He promised to restore free speech on the platform, but went on to ban several journalists and the owners of accounts he didn’t approve of. He tried to make paid subscriptions popular among users, but it was a particular hit among pranksters and satirists. It scared advertisers, who pulled back on spending, and raised alarm bells in regulatory offices, notably in Europe.
Here’s how events took place:
Oct. 27: Musk takes control
After being forced to complete the deal to buy Twitter for $44 billion, Musk announces he has taken possession of the social network. His first act is to fire the board along with CEO Parag Agrawal, Chief Financial Officer Ned Segal, head of legal and policy Vijaya Gadde and General Counsel Sean Edgett, among others in executive leadership.
Oct. 28: Brands begin to take pause
As Musk plans to unban accounts and says he will charge for user verification, advertisers start to get nervous. General Motors Co. suspends ads, and others review their Twitter budgets.
Oct. 31: Top tweeters protest
Amid murmurings of plans to charge existing verified accounts, bestselling author Stephen King says in a tweet: “$20 a month to keep my blue check? F—- that, they should pay me. If that gets instituted, I’m gone like Enron.” Musk replies, “We need to pay the bills somehow! Twitter cannot rely entirely on advertisers. How about $8?” Musk double downs on promoting the product. A possible release date of Nov. 7 is debated.
Nov. 3: Massive layoffs begin
A memo is sent to all employees telling them of imminent layoffs and to watch for an email with the subject line: “Your Role at Twitter.” Badge access to offices is suspended as about 3,700 staffers receive word that they’ve been cut. Realizing employees essential for the continuity of the business have been let go by mistake, some are asked to come back.
Nov. 5: Dorsey apologizes
Twitter co-founder and former CEO Jack Dorsey, who was a proponent of ...
18
DEC
2022

Asia stocks set to fall with focus on rates path: markets wrap

Asian stocks were poised to follow Wall Street lower on Monday as the Federal Reserve’s resolve to keep raising rates and a wave of Covid in Beijing damped sentiment for riskier assets.
The dollar weakened slightly against most major currencies and the yen advanced, boosted by a report that the Japanese prime minister may consider allowing more flexibility in the monetary regime that has kept the nation’s interest rates at rock-bottom levels.
Australian shares opened lower while equity futures for Japan and Hong Kong fell after the S&P 500 and the tech-heavy Nasdaq 100 closed lower for a third day on Friday. The quarterly triple witching expiration of equity derivatives amplified market moves.
The risk of higher interest rates pushing the US into recession in 2023 is casting a pall over trading that’s winding down into year end. Meanwhile, China’s pivot from Covid Zero raises the prospect of growth from economic reopening — along with the risk from a surge of new infections. The number of Covid-positive dead arriving at Beijing’s funeral parlours and crematoriums is increasing, according to media reports.
Government bond yields were little changed in Australia and New Zealand on Monday after US Treasuries were mixed on Friday, when short-term bonds rallied while the 10-year maturity fell. The policy-sensitive two-year Treasury yield ended the week 17 basis points lower than where it started.
Investors had cheered the softer-than-expected US inflation data but that euphoria faded as Fed officials hammered home the message that rates would go higher for longer until they’re confident inflation has been subdued. A wave of rate hikes and hawkish outlooks from central banks across the globe, including the European Central Bank, further bruised sentiment last week.
Key events this week:
China loan prime rates, Tuesday
Bank of Japan interest rate decision, Tuesday
US housing starts, Tuesday
EIA Crude Oil Inventory Report, Wednesday
US existing home sales, US Conference Board consumer confidence, Wednesday
US GDP, initial jobless claims, US Conf. Board leading index, Thursday
US consumer income, new home sales, US durable goods, PCE deflator, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.1% as of 8:10 a.m. in Tokyo. The S&P 500 fell 1.1% on Friday
Nasdaq 100 futures rose 0.1%. The Nasdaq 100 fell 0.9%
Nikkei 225 futures fell 0.8%
Australia’s S&P/ASX 200 Index fell 0.2%
Hang Seng Index futures fell 0.1%
Currencies
The euro was little changed at $1.0591
The Japanese yen rose 0.2% to 136.27 per dollar
The offshore yuan was little changed at ...
18
DEC
2022

There’s never been a worse time to get sick in the UK

Hospital waiting lists are growing. Pharmacies are running out of antibiotics. Nurses have been taking industrial action for the first time in their history and over the next week ambulance drivers will join them — with strikes planned for Wednesday.
The UK’s National Health Service is beginning to look sicker than some of its patients. After limping through the Covid-19 pandemic, the NHS is finding the aftermath even more challenging.
Even before nurses took to the picket line on Thursday after failing to agree on a new pay deal, Britain’s system of publicly funded care was under pressure. More than 7 million people are waiting for routine operations and staff are resigning at record rates.
Rishi Sunak’s government faces escalating action from nurses in the New Year if ministers fail to join talks with unions this week. On Sunday, Cabinet Office minister Oliver Dowden told the BBC the government was “resolute” and that it would “be irresponsible to allow public sector pay and inflation to get out of control”. Health Secretary Steve Barclay accused unions representing ambulance workers of being “less than co-operative in negotiations” in an uncompromising article for the Mail on Sunday.
“The NHS is in the biggest crisis in its history,” said Wes Streeting, the opposition Labour MP and shadow health secretary. “People are finding it impossible to get a GP appointment or operation when they need one. In an emergency, there’s no guarantee an ambulance will arrive on time, if one arrives at all.”
The NHS is Britain’s biggest employer, with a workforce of 1.4 million and an annual budget of £180-billion. It’s often been held up as a model, delivering universal care and good results at a lower cost than other health systems around the world.
However, after almost three years of pandemic, its staff are exhausted, and accident and emergency departments are so full that some patients are waiting more than 12 hours to be seen by a doctor. At the same time more than 40,000 NHS employees left the service in England in the 12 months to the end of June this year.
“It’s difficult to think of a time when the NHS has been under this amount of sustained pressure,” said Sally Warren, director of policy for the King’s Fund, an independent think-tank that advises on health-care policy. “You would always have spikes of a particular illness that the NHS would deal with, but this is a spike of ...
18
DEC
2022

Trump’s actions on 6 January merit insurrection charges, Schiff says

A member of the House’s 6 January panel said there’s enough evidence to charge Donald Trump with insurrection and other crimes.
Representative Adam Schiff, who sparred with Trump in his role as House Intelligence Committee Chair, said the former president’s actions surrounding the 2021 attack on the Capitol by his supporters are “a pretty good match” for a criminal insurrection charge.
“In terms of the criminal statute, if you can prove that someone incited insurrection, that is they incited violence against the government – or they gave aid and comfort to those who did – that violates that law,” Schiff said Sunday on CNN’s “State of the Union”.
The House committee plans to meet at 1pm on Monday in Washington to vote on its final report and referrals for criminal charges and other sanctions. That will include votes on recommendations that Trump be prosecuted for insurrection, obstruction of an official proceeding and conspiracy to defraud the US, according to a person familiar with the discussions.
Referrals are also being considered for several former Trump associates, including his chief of staff, Mark Meadows, legal advisers John Eastman and Rudy Giuliani, the former New York mayor, and Justice Department official Jeffrey Clark.
“We want to focus on those for which we believe there’s the strongest evidence,” said Schiff, a former prosecutor.
‘Kangaroo court’
A spokesman for Trump claimed in an earlier statement that “This kangaroo court has been nothing more than a Hollywood executive’s vanity documentary project that insults Americans’ intelligence and makes a mockery of our democracy.”
Schiff declined to confirm in the CNN interview what charges the panel would vote on, though he’s on the subcommittee that prepared recommendations on charges for the meeting.
He said he believes Trump “violated multiple criminal laws” and questioned why the US Justice Department hasn’t already prosecuted the former president for crimes related to 6 January and his efforts to overturn the 2020 election.
“I do worry that it may take until he is no longer politically relevant for justice to be served. That’s not the way it should be in this country,” Schiff said. “I find it hard otherwise to explain why almost two years from the events of 6 January and with the evidence that is already in the public domain why the Justice Department hasn’t moved more quickly.” BM/DM
18
DEC
2022

Distressed traders see bright spots in riskiest emerging market debt

Distressed investors are finding ample opportunity in the riskiest emerging debt markets, which have few major bonds maturing in the year ahead.
Only a tiny portion of distressed sovereign bonds from non-defaulted emerging markets are scheduled to mature next year, according to data compiled by Bloomberg. That gives money managers the chance to cash in on the high-yielding notes, with relatively few looming 2023 principal payments to worry about.
“There are plenty of non-defaulted sovereigns with highly elevated spreads, yet few of these sovereigns with elevated spreads face funding cliffs in 2023,” said Gabriel Sterne, head of global emerging-markets research at Oxford Economics. “The discerning investor may be able to profit from some hefty coupons before default occurs.”
While coupon payments can also ramp up default risk for a country in crisis, the calendar is thin for larger principal obligations.
El Salvador is just weeks away from a $604-million bond maturity, and Ghana has already announced plans for a restructuring that could change the picture for a $149-million bond due in August. Tunisia, which recently struck a deal with the International Monetary Fund, is on the hook to pay holders of a $500-million note in October.
All together, there’s only about $1.3-billion in principal of the high-risk debt due next year – a small part of the roughly $118-billion in total sovereign bonds from non-defaulted emerging markets that yield an average of at least 10 percentage points more than US Treasuries, according to data compiled by Bloomberg.
That leaves Wall Street to focus on its bullish expectation that peaks in global inflation and major central-bank policy rates next year trigger a comeback after 2022’s record-setting losses. A key Bloomberg gauge of emerging-market sovereign dollar bonds plunged almost 16% this year, on course for its worst annual loss since records began two decades ago.
Such depressed bond prices can carry potential for investors who expect governments to manage their debt loads – or at least come up with attractive restructuring conditions.
“Distressed countries present interesting opportunities,” according to Gustavo Medeiros, a money manager at Ashmore Group Plc in London. The average recovery value on sovereign debt restructurings is about 59 cents on the dollar, while nations rated C or lower tend to trade at an average of 30 cents or less, he wrote in a note.
Recovery values are core to discussions among holders of defaulted bonds from Sri Lanka and Zambia, who are already looking to negotiate with government ...
15
DEC
2022

ECB Hikes by Half Point as Lagarde Warns of More Such Moves

The European Central Bank increased interest rates by a half-point, with President Christine Lagarde telling investors to prepare for a long-running campaign of similar moves to quell the worst inflation in the history of the euro.
After successive hikes of 75 basis points, the ECB lifted the deposit rate more slowly on Thursday, to 2%, as economists expected. Pledging to push borrowing costs “significantly” higher, officials widened efforts to tame prices with a decision to shrink their €5 trillion ($5.3 trillion) bond portfolio.
“Anybody who thinks that this is a pivot for the ECB is wrong,” Lagarde told a news conference. “We should expect to raise interest rates at a 50 basis-point pace for a period of time.”
“We have more ground to cover, we have longer to go and we are in for a long game,” she said.
Traders added to rate-hike bets, pricing a deposit-rate peak of 3% next year, compared with 2.93% earlier. The Stoxx Europe 600 Index dropped as much as 2.9%, sinking to the lowest level in a month and by the most in nearly two months as rates-sensitive sectors like technology and retailers slumped.
Lagarde said financial markets hadn’t adequately accounted for the amount borrowing costs would need to rise to quell inflation.
Complementing the rate push, officials outlined plans for quantitative tightening — offloading government debt purchased as stimulus in the past. The plan envisages partially halting reinvestments of maturing bonds under the Asset Purchase Program from March. Volumes will average €15 billion a month in the second quarter, with the pace beyond that yet to be determined.
The ECB’s downshift on rate hiking, along with similar action this week by the Federal Reserve and the Bank of England, may reflect belief that the worst inflation in a generation — while not vanquished — is at least near its peak.
The announcement follows a first dip in 1 1/2 years for runaway euro-zone price gains and comes with the currency bloc probably already in recession.
But, like the Fed, the message was that monetary tightening has some way to run yet — despite policymakers in Frankfurt already overseeing the ECB’s most forceful-ever spell of rate hikes.
“If you were to compare with the Fed, we have more ground to cover, we have longer to go,” Lagarde said.
Fresh projections, also released Thursday, will help determine how long. With Russia’s war in Ukraine still raging, the predictions confirmed a challenging backdrop that includes economic expansion ...
15
DEC
2022

US Sanctions Russia’s Richest Tycoon, Nornickel Chief Potanin

The US sanctioned Vladimir Potanin, Russia’s richest tycoon and the president and biggest shareholder of mining giant MMC Norilsk Nickel PJSC, but left his company untouched as it tries to maintain stability in the metals market.
The action against Potanin on Thursday was part of a broader sanctions package the Treasury Department rolled out Thursday targeting some 40 people linked to Russia’s government. Also included was Rosbank, which Potanin acquired earlier this year, and a range of smaller entities.
“By sanctioning additional major Russian banks, we continue to deepen Russia’s isolation from global markets,” Treasury Undersecretary Brian Nelson said in a statement. “Today’s designations by the United States, together with actions taken by our international partners, will further inhibit the Putin regime’s ability to fund its horrific war against Ukraine.”
More than 40% of Potanin’s net worth — $30.4 billion according to Bloomberg Billionaires Index — comes from his stake in Nornickel, one of the world’s largest producers of nickel, palladium and copper. While the restrictions weren’t extended to Nornickel, they could prompt some buyers to shun Russian metal in a form of self-sanctioning.
The US action comes after the UK imposed sanctions on Potanin at the end of June. Before that, Potanin had largely avoided western sanctions that hit other members of the Russian elite. He has also been sanctioned by Canada and Australia.
Read: UK Sanctions Richest Russian, Sparking Metal Supply Fears
Potanin has headed Nornickel since striking a 2012 shareholder accord with United Co. Rusal International PJSC, the company’s second-largest investor. Potanin’s stake of just under 36% is held through his investment firm Interros Holding. It’s not clear if Potanin will step down.
The London Metal Exchange last month decided against a ban on new deliveries of Russian metal, after launching a formal discussion of the matter in October. Although the US and Europe have imposed sweeping sanctions on Russia in response to the invasion of Ukraine, the metals traded on the LME have largely avoided blanket restrictions.
Read: London Metal Exchange Decides Against Ban on Russian Metal
Since Russia’s invasion of Ukraine, Potanin has bought up some of Russia’s key privately owned banks, including buying Rosbank PJSC from Societe Generale SA. He also bought a stake in Tinkoff Bank from founder Oleg Tinkov, who said he was forced to sell after criticizing the war.
15
DEC
2022

Elon Musk’s Tesla Share Sales Approach the $40 Billion Mark

Elon Musk sold another $3.58 billion worth of Tesla Inc. shares, bringing the total amount he’s offloaded since late last year to almost $40 billion.
The latest disposal of about 22 million shares this week coincided with Musk falling from the top spot on the Bloomberg Billionaires Index, a position he’d occupied since September of last year. Tesla’s market value also slumped below the half-trillion-dollar mark for the first time since November 2020.
Musk’s persistent selling after repeated assurances that he was done unloading Tesla stock reflects mounting pressure on the finances of Twitter Inc. His erratic and impulsive approach to running the social-media company has alienated advertisers, and efforts to bring in more revenue from subscription fees backfired when impostor accounts exploited a poorly executed rollout of verification badges.
The chaos at Twitter has been an overhang on Tesla, which is facing its own set of challenges. The electric-car maker has cut prices and production this quarter in China and taken the rare step of offering incentives in the US. Musk has said the company is struggling to cope with the effects that China’s slumping property market, Europe’s energy crisis and the Federal Reserve’s interest rate increases are having on demand.
Tesla shares rallied as much as 2% as of 9:45 a.m. Thursday in New York. The stock has plunged 55% this year.
Musk tried for months to get out of the Twitter deal but ultimately failed. To help finance the purchase, he offloaded more than $15 billion of Tesla shares before closing the transaction — about $8.5 billion in April, then $6.9 billion in August. In November, he sold another $3.95 billion of his holdings.
Forgot to say one thing at Tesla annual shareholders meeting: just as my money was the first in, it will be the last out.
Elon Musk (@elonmusk) June 5, 2013
Musk layered a significant amount of high-interest debt on Twitter’s balance sheet as part of his buyout. The company’s debt load swelled to about $13 billion — up from $1.7 billion pre-deal — and it’s now facing annual interest payments approaching $1.2 billion. Its borrowing could get even more expensive because the interest rates on about half of that debt aren’t locked in and will rise with the market.
“At risk of stating obvious, beware of debt in turbulent macroeconomic conditions, especially when Fed keeps raising rates,” Musk tweeted this week.
Musk’s recent sales shrink his stake in the company to roughly 13%, ...

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