15 August 2019 FT — Articles to Read

15 August 2019


Question: According to MSN: Money, what is the current level of US American mortgages?


Bonds sound recession alarm as China and Germany show strain – Pg. 1

  • Fears over a global economic downturn were intensified by disappointing data from Chian and Germany yesterday, sending bond yields tumbling to fresh lows and weighing on already-jittery stock markets
  • …yields of US and UK 10-year government bonds dipped below those of shorter-maturity debt for the first time since the financial crisis – an inversion of their normal relationship that has historically been a harbinger of recession
  • …German economy shrank in three months to June
  • The US “yield curve inversion” – when long-term bond yields are lower than short-term – was particularly unnerving to investors, given the global importance of the biggest economy
  • Typically, longer-term debt trades with higher yields to compensate investors for the risk of holding debt for several years, during which time it is more difficult to predict economic conditions. When the yield curve flips, it is generally seen as a strong signal that investors are expecting an economic downturn


WeWork goes public with mission to ‘elevate consciousness’ in $4bn IPO – Pg. 1

  • WeWork has unveiled its prospectus for a $3bn-$4bn IPO that would see the office-space provider become the latest private unicorn to go public I the face of stormier markets and a gloomier global economy
  • The heavily lossmaking property group, which stated its mission as “to elevate the world’s consciousness”, would follow Uber, Lyft and Pinterest in a rush to IPO this year after an extended period when hyped young companies have relied on private investors to supply billions of dollars of growth capital
  • The stampede is seen by some money managers as a sign that stock markets are near their peak
  • WeWork stands out for its rapid growth, ballooning losses and heavy debt load
  • The IPO filing received an immediate negative reaction from Fitch, the rating agency, which downgraded WeWork deeper into junk territory, noting high spending on properties and the hiring of thousands of staff


Macy’s tumbles on profit warning – Pg. 11

  • Macy’s issued another profit warning yesterday, intensifying concerns on Wall Street over bricks-and-mortar retailers and dragging share prices down across the sector
  • Macy’s also cited a drop in tourism. Sales from overseas travelers declined about 9% in the quarter,…


Answer: $9.4tn