Junk bond sell-off worsens as yields surge and defaults rise
The junk bond market sinks further with the HYG ETF down 1 percent on Monday, dragging the sector 4.1 percent lower over the week and 144 percent off its 52 week high. Analysts warn of rising defaults and commodity-driven distress as yields widen and spreads expand amid investor nervousness.
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Shell cuts 2,800 jobs as oil stabilizes after drop
Shell announces 2800 layoffs representing 3 percent of its workforce in a prearranged cut tied to its BG Group takeover. The move adds to 7500 previously announced layoffs as oil trades around 36 dollars a barrel, up about 1.9 percent on the day.
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Norfolk Southern Rejects Canadian Pacific Bid
Norfolk Southern board unanimously rejected Canadian Pacific Railway latest takeover attempt. The clash intensified after a conference call featuring Canadian Pacific CEO and activist investor Bill Ackman, who said pride kept NS from considering the offer.
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Natural gas prices fall amid mild weather across US
Mild temperatures cut heating demand for natural gas, sending prices down almost 5 percent. AccuWeather notes Chicago, Detroit, New York and Washington ran up to 25 degrees above normal in the past five days. Shares of Chesapeake Energy, Southwestern Energy and Devon Energy Corp. dropped to multiyear lows.
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Airware founder proves he can see past the horizon
Jonathan Downey, 32, CEO of San Francisco based Airwave.com, was named USA TODAY's Small- Business Innovator of the Year. Downey leads a three facets company with cloud services and drone navigation software, supported by major VC investors and contracts with Fortune 500 firms. He emphasizes practical drone capabilities over overpromising and joins the Association of Unmanned Vehicle Systems International board as the industry grows toward FAA rules.
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