US junk debt investors cautious of leveraged loans as economy slows

Leveraged loan deals are expected to pick back up after a stabilization in markets over the past week, although some investors say they are cautious about junk-rated loans if the economy weakens. Borrowers pulled back on leveraged loan deals last week, following disappointing jobs data on Aug. 1 and Aug. 2 that raised forecasts for aggressive interest rate cuts and spurred concerns about lower-rated debt. A total of six leveraged loans worth $3.3 billion sold last week, which falls well short of the $10 billion weekly average this year and is the worst week for issuance outside the holiday-shortened first week of July, according to PitchBook LCD data.

UK Headline Inflation Rises by Less Than Expected, GBP/USD Now Eyes US CPI

Inflation likely stayed low last month as Federal Reserve edges closer to cutting rates

If the Federal Reserve needs any further evidence that the worst price spike in four decades is steadily easing, it's likely to come Wednesday, when the government is expected to report that inflation cooled further last month. Consumer prices are thought to have risen just 0.2% from June to July, according to economists surveyed by FactSet, a pace only slightly above the Fed’s 2% annual inflation target. Excluding volatile food and energy costs, so-called core prices are also expected to have risen 0.2% from June and 3.2% from 12 months earlier, just below the 3.3% annual increase in June.

Dollar sags after benign US inflation data; kiwi skids on rate cut

TOKYO (Reuters) -The dollar remained on the back foot on Wednesday after tumbling versus major peers overnight as a benign reading for U.S. producer prices reinforced bets on Federal Reserve interest rate cuts this year. New Zealand's dollar dropped sharply from a four-week high after the Reserve Bank of New Zealand reduced the key cash rate and flagged more cuts to come, surprising some market participants. Japanese Prime Minister Fumio Kishida's decision to not run for reelection in his party's leadership race next month had little effect on markets, analysts said.

Oil Rises After Industry Report Points to US Stockpile Drawdown

(Bloomberg) -- Oil rose, after falling more than 2% on Tuesday, as an industry report pointed to a sizable drop in US crude stockpiles and tensions simmered in the Middle East. Most Read from BloombergBiden Invests $100 Million to Fuel Housing ConstructionIn DNC, Chicago’s Embattled Transit System Faces a High-Profile TestHow Chicago’s Gigantic Merchandise Mart Is Still Thriving as Office SpaceJohannesburg Mayor Quits Amid Infighting, Financial WoesGottheimer Calls for Rail Riders to Be Reimburs

New Zealand Cuts Rates as Slumping Economy Slows Inflation

(Bloomberg) -- New Zealand’s central bank cut interest rates, embarking on an easing cycle much sooner than previously indicated as the economy slumps and inflation slows. The local dollar plunged.Most Read from BloombergBiden Invests $100 Million to Fuel Housing ConstructionIn DNC, Chicago’s Embattled Transit System Faces a High-Profile TestHow Chicago’s Gigantic Merchandise Mart Is Still Thriving as Office SpaceJohannesburg Mayor Quits Amid Infighting, Financial WoesGottheimer Calls for Rail R

Chinese Data Expected to Show Economy Still Faltering

(Bloomberg) -- China’s economy probably failed to turn the corner on its worst stretch in five quarters, with an uneven recovery in July held back by consumer spending still lagging industrial activity and investment.Most Read from BloombergBiden Invests $100 Million to Fuel Housing ConstructionIn DNC, Chicago’s Embattled Transit System Faces a High-Profile TestJohannesburg Mayor Quits Amid Infighting, Financial WoesHow Chicago’s Gigantic Merchandise Mart Is Still Thriving as Office SpaceGotthei

Treasuries Rally After a Measure of Inflation Shows Price Easing

(Bloomberg) -- Treasuries advanced after a weaker-than-expected US producer prices report bolstered the case for the Federal Reserve to cut borrowing costs more aggressively this year. Most Read from BloombergBiden Invests $100 Million to Fuel Housing ConstructionIn DNC, Chicago’s Embattled Transit System Faces a High-Profile TestJohannesburg Mayor Quits Amid Infighting, Financial WoesHow Chicago’s Gigantic Merchandise Mart Is Still Thriving as Office SpaceGottheimer Calls for Rail Riders to Be

Federal board urges stricter safety rules for loading and dispatching charter flights like air tours

A federal safety agency is recommending that air tours and other commercial aircraft operators be required to have certificated dispatchers to help pilots plan their flights. The National Transportation Safety Board said Tuesday that and other recommendations are based on a study of more than 500 accidents, some of them fatal. The NTSB said it began the study after seeing a “cluster of safety issues” from investigations of crashes between 2010 and 2022.

Home Depot projects weakened sales, spelling shaky economic conditions

High interest rates and inflation push home improvement projects back