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How US sanctions on Venezuela are rippling through oil markets

New York (CNN Business)US sanctions on Venezuela’s national oil company have accelerated the unprecedented collapse of its oil output and set off a domino effect in the global energy market. Heavy crude is typically cheaper than light crude, but demand for it has become so intense that it’s suddenly trading at a premium to lighter barrels. US Gulf Coast refiners, led by Citgo, Chevron and Valero, blend heavy crude with lighter barrels found in US shale oilfields to churn out gasoline, diesel and jet fuel. Meanwhile, Venezuela’s government, which relies…

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Charlotte Russe files for bankruptcy and will close nearly 100 stores

New York (CNN Business)Charlotte Russe has filed for Chapter 11 bankruptcy and plans to close 94 stores, the company announced Monday. Poor sales and too much debt hurt the retailer. In 2009, private equity firm Advent International bought Charlotte Russe in a $380 million cash-for-stock deal. Last year, Charlotte Russe reached a deal to reduce its debt from $214 million to $90 million. Despite the deal, Charlotte Russe’s sales plunged from $928 million in 2017 to $795 million last year. Comparable store sales fell 11.7% during the third quarter of…

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China’s stock market had a terrible 2018. This year could be a lot better

Hong Kong (CNN Business)China’s beaten down stock market could be headed for a rebound. Chinese stocks would hold strong appeal “in a world where they agree a trade deal,” said Christopher Wood, an equity strategist at Hong Kong-based broker CLSA. He predicts the two governments will reach some kind of agreement by early March to prevent a return to their bruising trade war. “If China is smart, they will do a deal with Donald Trump,” Wood said, describing him as “the most friendly president Beijing is going to deal with,…

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Stocks jump after the US and China reach trade truce

Hong Kong (CNN Business)A ceasefire is better than an escalating trade war as far as investors are concerned. US President Donald Trump and his Chinese counterpart, Xi Jinping, agreed on Saturday to a temporary truce in the trade clash between the two countries. The US government will now hold off on raising tariffs on $200 billion worth of Chinese goods from 10% to 25% on January 1, according toa White House statement. In exchange, China said it was willing to purchase a “very substantial” amount of agriculture, energy and other…

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PG&E unlikely to go bankrupt because of wildfires

New York (CNN Business)Shares of California electric company PG&E soared Friday on new hopes that the company won’t have to go bankrupt if it is found to be liable for the massive Camp Fire in Northern California. But the stock was up nearly 40% Friday after the president of the California Public Utilities Commission (CPUC) suggested that the state would work with PG&E to ensure that it would not be permanently crippled by lawsuits. “An essential component of providing safe electrical service is the financial wherewithal to carry out safety…

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Dollar Debt Will Be Elusive to Turkey as U.S. Sanctions Bite

The summer holiday in the bond market may be a long one for Turkey. New dollar issuance, including government and corporate-sector bonds, has dried up, with no sales recorded since April, according to data compiled by Bloomberg. And with corporate-bond losses among the worst in emerging markets amid a plunge in the lira, the dollar-debt market may be shut for some time to come. Quiet Summer Turkish bond sales have dried up since April as uncertainties deterred issuers

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Researchers Argue Proposed EPA Changes Could Cause 80,000 More Deaths a Decade

Two Harvard social scientists, writing an opinion column in a prominent medical journal, have put forward “an extremely conservative estimate” that some 80,000 more Americans could die each decade if proposed changes at the U.S. Environmental Protection Agency are implemented. The JAMA Forum” feature of the , which allows researchers to offer individual perspectives on health and policy. The EPA dismissed the essay as rhetoric, not research, in a statement provided to Bloomberg News. “This is not a scientific article, it’s a political article. The science is clear, under President Trump greenhouse gas emissions are down, water infrastructure…

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The Hedge Fund Summer Reading List

It’s that time of year again: summer reading season. While for many that means books for the beach, some emerging-market fund managers are yearning for titles that shed light on buying opportunities in Asia as well as the human psychology behind investing decisions. Asha Mehta, who oversees emerging markets at Acadian Asset Management in Boston, said she’s eager to crack Evan Osnos’s "Easternization: Asia’s Rise and America’s Decline From Obama to Trump and Beyond," which looks at how the rising wealth of Asian nations is shifting the balance of power…

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Hedge-Fund Investors Pour Into Oil as Firms Predict Surge to $80

Hedge funds investing in oil are luring capital at the fastest pace in more than a year. With crude climbing to levels not seen since 2014, commodity funds have recovered the client outflows they suffered last year. And if firms such as Saudi Arabia, the world’s biggest exporter, wants to push prices to $80 a barrel to help pay for the government’s policy agenda. Declining output in Venezuela and falling global inventories are also playing their part, as are the worsening tensions in Syria, which threaten to disrupt supply from…

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George Soros Prepares to Trade Cryptocurrencies

The family office is said to have recently approved trading Soros called the digital assets a ‘bubble’ in January George Soros called cryptocurrencies a bubble in January. Now his $26 billion family office is planning to trade digital assets. Adam Fisher, who oversees macro investing at New York-based Soros Fund Management, got internal approval to trade virtual coins in the last few months, though he has yet to make a wager, according to people familiar with the matter. A spokesman declined to comment. Soros, Read more: Crypto Hedge-Fund Bubble Begins…

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Bitcoin Newbies Are Getting Crushed While Old Timers Bemoan `Weak Hands

For Bitcoin investors, these are the times that try one’s soul. After surging to almost $20,000 in December following the introduction of regulated futures contracts in the U.S., the world’s largest cryptocurrency has lost more than half its value, plummeting to as low as $7,614 on Friday. It regained some ground on Saturday, rising 7.5 percent to $9,290.15 as of 2:58 p.m. in New York, according to Jamie Dimon to Nouriel Roubini have labeled as one of the biggest asset bubbles in history began showing signs of deflating. Selling by…

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Bitcoin Could End Up Using More Power Than Electric Cars

The global power needed to create cryptocurrencies this year could rival the entire electricity consumption of Argentina and be a growth driver for renewable energy producers from the U.S. to China. Miners of bitcoin and other cryptocurrencies could require up to 140 terawatt-hours of electricity in 2018, about 0.6 percent of the global total, Morgan Stanley analysts led by Nicholas Ashworth wrote in a note Wednesday. That’s more than expected power demand from electric vehicles in 2025. “If cryptocurrencies continue to appreciate we expect global mining power consumption to increase,”…

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From Bitcoin to Belize, Here Are Best and Worst Assets of 2017

It was a great year to hold bitcoin, but a bad time to have been invested in the Uzbek soum. As 2017 winds to a close, a look at the winners and losers around the globe shows that, broadly speaking, the riskiest assets performed well, with bullish sentiment on display in stocks, emerging-market sovereigns and corporate debt. Securities generally seen as the safest and least volatile bets — think Japanese government bonds — trailed behind. There was perhaps no investing idea that attracted more attention in 2017 than cryptocurrencies, from Jamie…

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