The company's S-1 lays the groundwork for what is widely expected to be one of the largest initial public offerings of the year, second only to Uber's IPO in May. It's also...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
Trump's tweet comes a day after Apple put out a press release describing the money it spends on U.S.-based suppliers and vendors.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
President Donald Trump held a call on Wednesday with the CEOs of three major U.S. banks, according to people with knowledge of the situation.Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
Scientists say the smoke plumes, filled with megatons of tiny, harmful particles, could travel to other areas of the world and cause serious respiratory problems for people.Weather & Natural Disastersread more
Some Weight Watchers loyalists applaud Kurbo by WW. But nutritionists worry Kurbo promotes an unhealthy relationship with food during an especially impressionable time.Health and Scienceread more
Benefits from what President Trump called "the biggest reform of all time" to the tax code have dwindled to a faint breeze just 20 months after its enactment, writes John...Politicsread more
Epstein, 66, was found in his cell in Manhattan federal lockup Saturday morning and transferred to a nearby hospital, where he was subsequently pronounced dead.Politicsread more
Air travelers faced delays at U.S. airports on Friday afternoon after a computer issue snarled processing of international arrivals.Airlinesread more
China may witness its first local government bond defaults, although the timing was uncertain, Fitch Ratings said in a press release issued on Sunday, amid persistent concerns over high debt levels in the world second largest economy.
These bonds were issued by Chinese local government financing vehicles (LGFVs), which were created by local authorities to bypass restrictions on borrowing.
There are concerns about the potential for a wave of defaults in China due to high local government debt, which could impact the financial markets and potentially spread a wave of contagion across the global economy.
The LGFVs have also borrowed from the Chinese shadow banking sector as official channels dried up due to the government's crackdown on leverage.
Shadow banking is a broad category of banking-like services from non-traditional players; it can include loans from non-financial companies as well as investment products. It is outside the bounds of normal banking regulation, so it largely goes unregulated.
No Chinese LGFV has defaulted to date on its publicly traded debt so far, but the first defaults "are becoming more likely and will probably trigger a repricing of the market," Fitch said.
Fitch's warning comes after S&P Global Ratings downgraded China's long-term sovereign credit rating by one notch last week to A+ from AA-, citing increasing risks from the country's rapid build-up of credit. Moody's Investors Service downgraded China's sovereign credit rating in May.
Despite the risk of LGFV bond defaults, Fitch said the overall risks are likely limited due to the government's "pervasive ownership and influence" across the financial system.
But the ratings agency said widespread defaults remained a tail risk, or a potential scenario with only a small probability of occurring.
"The authorities continue to rely on local government investment—supported by LGFVs—to hit economic growth targets, and have a broad spectrum of policy tools to limit default contagion," Fitch added.
"The authorities are in a position to prevent systemic defaults," said Fitch, including using the last resort of bailing out the LGFVs using fiscal resources.
The central government has been trying to "disentangle" LGFVs from public-sector balance sheets to contain financial risks through means such as instituting debt ceilings and providing swaps to convert LGFV debt into explicit government debt, Fitch noted.
LGFV debt, however, has continued to rise with 4 trillion yuan ($605 billion) worth of LGFV bonds issued since 2015 still outstanding, equivalent to 5.4 percent of China's gross domestic product.
Chinese authorities will likely to allow the lower quality LGFV bonds to fail, Fitch said.
"These would be LGFVs deemed most financially stretched by the authorities, and consist mostly of lower-tier (non-provincial) LGFVs, particularly those that mix commercial with policy activities, such as property with urban development," said Fitch.
China has already allowed some state-owned enterprises to default in the last few years, as the central government seeks to instill greater budget and market discipline.