Global Private Credit Will Ask for Bigger Spreads After Week's Market Turmoil 

The recent turbulence in global markets has prompted private credit funds to reassess their lending margins. Major firms such as Ares Management and Blackstone have reduced their fees for private credit in order to compete with the syndicated loans offered by banks. However, the strategy may be subject to change in the event of an increase in recession fears and/or a deterioration in economic reports. David Golub, CEO of Golub Capital BDC Inc., has stated that excessive market turmoil could discourage private credit funds from reducing spreads. The private credit industry, with a valuation of $1.7 trillion, has experienced significant growth as companies seek alternative sources of funding due to higher interest rates and a reduction in the availability of loans from traditional lenders. Banks have only recently begun to compete with private lenders, who have driven prices down, leading to concerns about potential competition.

https://internasional.kontan.co.id/news/private-credit-global-bakal-minta-spread-lebih-besar-usai-gejolak-pasar-pekan-lalu

Cisco Will Conduct Another Layoffs This Year

Cisco, a leading technology company, is preparing to implement a second wave of layoffs, affecting thousands of employees, according to sources familiar with the matter. The company plans to concentrate its resources on higher-growth areas such as cybersecurity and artificial intelligence. It is estimated that approximately 4,000 employees may be affected by the layoffs. This development follows a period of declining demand and supply chain constraints in Cisco's core business of manufacturing routers and switches. The company has been taking steps to diversify its portfolio, including the recent acquisition of cybersecurity firm Splunk for $28 billion. Cisco's share price fell by almost 1% following the announcement of the layoffs and has since declined by over 9% for the year. The company has not yet responded to requests for comment.

https://internasional.kontan.co.id/news/cisco-bakal-kembali-melakukan-phk-tahun-ini

US Jobless Claims Fall, Largest in 11 Months

The latest figures from the Labour Department show a decrease of 17,000 in the number of Americans filing new applications for unemployment benefits, with the total standing at 233,000 for the week ending 3 August. This decline, the most significant in 11 months, was welcomed amidst concerns of a weakening labour market. Analysts had anticipated that the number of new claims would be higher, at 240,000. The recent rise in jobless claims was attributed to temporary plant closures and disruptions caused by Hurricane Beryl in Texas. Despite the fluctuations, the rate of layoffs remained low, with June experiencing the lowest rate in over two years. However, the non-farm payroll report from last week indicated a notable deceleration in job gains, resulting in an increase in the unemployment rate to 4.3%. This has prompted concerns among investors, with a 70% probability of the Federal Reserve reducing borrowing costs by 50 basis points next month.

https://internasional.kontan.co.id/news/klaim-pengangguran-as-turun-terbesar-dalam-11-bulan