PG&E Downgraded to Junk
Pacific Gas & Electric (NYSE:PCG) is being taken to the woodshed, with shares now hitting $18 in premarket trading, the lowest level since 2003. The latest beating is from S&P Global Ratings, which downgraded the utility’s credit rating to junk, the politically correct term for firms with doubtful ability to pay back their loans. The rating has officially been cut to B from BBB-, which is the lowest rating for “investment grade”. PG&E fell 22% yesterday and keeps falling in the premarket, (now $17.50), and nobody knows where the bottom is. Likely the firm will survive but last time it took about 3 years for the stock to recover previous levels after the infamous Erin Brokovich episode.
General Electric in a “Bull Market”
In a headline that belies the manufactured narrative of “bull market” and “bear market” as defined by a 20% rise or fall from highs/lows, General Electric (NYSE:GE) is now in a “bull market” because it has climbed 20% from lows, as reported by Barron’s. In an interesting omen though, GE bottomed out (for now) at $6.66, the exact same level that the S&P 500 bottomed out at on March 6, 2009 at 666. Leaving the sign of Satan aside, could this be an auspicious sign? Whether it is or isn’t, making investment decision based on it is probably not the greatest of ideas. The current enthusiasm is bubbling over the fact that different units that GE is putting for sale may have interested buyers. This may alleviate its dire debt situation before interest rates get out of control and may save the company, something celebrate for shareholders, maybe.
Brexit Delay Officially Denied, So It’s Almost Certainly Happening
Brexit is being delayed unofficially, officially. The British Secretary of State for Brexit (yes, there is one of those) has officially denied that any conversations between Brussels and London are taking place regarding a possible extension of Brexit negotiations past the March 29th deadline for the Article 50 countdown to officially pull the UK out of the EU. These aren’t happening, despite widespread reports that they are happening, which means they are definitely happening now that they’re being officially denied. More than a third of UK financial institutions are planning to move off the Island to Europe proper in an attempt to save themselves from the savage trade war likely to ensue of the UK leaves the EU without a deal. Barclays (NYSE:BCS) is one of these that has admitted to hightailing out of Great Britain. So it looks like if Brexit is cancelled, Britain has already lost much of its capital already anyway. So why not go through with it?
Sears Asks Judge Drain To Liquidate
Sears (OTCMKTS:SHLDQ) has asked the bankruptcy judge in charge of its case, the Honorable Robert Drain, to proceed with liquidation, after it could not square a $4.4 billion offer from its chairman Eddie Lampert to keep the company afloat. If the judge agrees, 68,000 people will be unemployed, and hundreds of Sears stores will be on a fire sale, so head on over for some good deals. Lawyers on Lampert’s side plan to present his $4.4 billion plan to Judge Drain, to argue that it is indeed viable, but it’s ultimately up to Sears’ creditors to accept or reject the deal. All Judge Drain can do is give Lampert until January 14th to improve on his bid to entice the banks involved to take it, before Sears get officially drained for good.
Trump Set to Bludgeon Democrats with Bully Pulpit on Wall Crisis
President Donald Trump is “going nuclear” in his attempt to get Democrats to budge on his request for $5 billion for border wall funding. He will take to the air today at 9pm to talk about the “crisis” on the border with Mexico, the perfect time slot to get people’s attention but also make them way too tired to keep watching the Democratic response as to how the wall is wasteful and unnecessary, Democrats now suddenly being fiscal hawks over $5 billion when they have piled up trillion dollar deficits for decades, as have Republicans for that matter. If this argument is really about fiscal prudence, then this market morning rundown is really about the ongoing UFO zombie apocalypse. But it should be entertaining, so everybody grab your popcorn for some prime time 9PM Monday night footb…uh…politics. And ray guns. For the UFO zombies.