U.S. Economic News
March 9, 2020
U.S. News
The Financial Times reports that the unfolding oil price war between Saudi Arabia and Russia is likely to seriously threaten heavily indebted, junk-rated U.S. shale producers. U.S. energy companies in the investment-grade corporate bond market are also at risk from Saudi Arabia’s aggressive production increase, as pressure on cash flows from collapsing oil prices could result in downgrades. FT
According to the Wall Street Journal, the U.S. semiconductor industry is pushing back against proposed changes to Commerce Department regulations that would further reduce sales of U.S. tech products to Chinese companies. The U.S. chip industry argues that in addition to lost revenues, regulations further severing technological ties between the U.S. and China could cede U.S. market leadership to South Korea in the short run and to China in the long run. WSJ