California
California’s ratings should be higher, analyst firm says
California common obligation bonds needs to be rated larger than they’re, in response to a CreditSights report, however analysts warned the state’s revenues face headwinds given its dependence on capital market features.
California is headed to market Wednesday with a $1.2 billion aggressive refunding deal. The state additionally has a brand new cash GO sequence deliberate for November, however the dimension of that deal has but to be introduced.
“The state credit score ought to appropriately be within the excessive AA class,” CreditSights analysts wrote in a report launched Monday. “But, it nonetheless serves penance for fiscal sins dedicated within the Nineties and 2000s.”
The state’s GOs “needs to be rated larger than they’re presently given the big and rich economic system, sizable reserves, shrinking liabilities, and improved governance,” stated John Ceffalio, a senior municipal analysis analyst with CreditSights, co-author of the report.
The California Enterprise Roundtable launched a report Monday that stated the state will retain its standing because the fifth largest economic system on the earth, behind Germany. The state, which has a nominal gross home product of $22.9 billion, moved up a spot when the U.Okay. economic system contracted after it exited the European Union.
The state holds Aa2, AA-minus and AA scores from Moody’s Traders Service, S&P International Rankings and Fitch Rankings, respectively. All three have assigned a steady outlook.
“The spreads on California GOs have tightened forward of the sale, which is mirrored in our Market Carry out score,” Ceffalio stated. “Our earlier score was Outperform. On the shut on Thursday, 10-year Cal GO spreads had been plus-three to the municipal AAA curve.”
Unfold tightening this 12 months is a operate of each continued credit score enchancment and a scarcity of provide, Ceffalio stated. Yr-to-date, whole web provide of California bonds is adverse $6.4 billion, he stated.
“We do count on that the brand new sale, with one other to come back subsequent month, will push spreads a bit wider in a concession to the market,” Ceffalio stated.
The state priced two bond gross sales in October: $167.1 million of GOs on Oct. 4 and $84.4 million of income bonds. Proceeds from the 2 gross sales shall be utilized by CalVet to offer dwelling loans to veterans dwelling within the state.
The GOs had been offered with an all-in true curiosity value of 4.90%, whereas the income bonds offered with all-in true curiosity value of 4.96%, in response to California Treasurer Fiona Ma’s workplace. Academy Securities, Inc. and Wells Fargo had been joint senior managers on each bond gross sales, with Amerivet Securities, Bancroft Capital and Mischler Monetary Group as co-senior managers.
Although CreditSights opined the scores needs to be larger, analysts stated the state’s credit score high quality has probably peaked as California’s tax revenues have slowed.
Revenues for the fiscal 12 months that started July 1 are practically $4.8 billion under forecast, in response to the month-to-month report launched by the state’s Division of Finance final week. When mixed with the $2.2 billion shortfall on the finish of the 2021-22 fiscal 12 months, revenues are practically $7 billion under the latest income forecast produced by the DOF in Could.
“We count on revenues to proceed to disappoint because of poor fairness market returns and the growing likelihood of a recession, however California is well-positioned for this stress, given its giant reserves and low mounted prices,” Ceffalio stated.
In a recession, “we see California’s credit score draw back as well-protected by a fortress of reserves, which totaled practically $40 billion on the shut of fiscal 12 months 2022,” CreditSights analysts wrote.
California
Caitlyn Jenner says she'd 'destroy' Kamala Harris in hypothetical race to be CA gov
SAN FRANCISCO – Caitlyn Jenner, the gold-medal Olympian-turned reality TV personality, is considering another run for Governor of California. This time, she says, if she were to go up against Vice President Kamala Harris, she would “destroy her.”
Jenner, who publicly came out as transgender nearly 10 years ago, made a foray into politics when she ran as a Republican during the recall election that attempted to unseat Gov. Gavin Newsom in 2021. Jenner only received one percent of the vote and was not considered a serious candidate.
Jenner posted this week on social media that she’s having conversations with “many people” and hopes to have an announcement soon about whether she will run.
Caitlyn Jenner speaks at the 4th annual Womens March LA: Women Rising at Pershing Square on January 18, 2020 in Los Angeles, California. (Photo by Chelsea Guglielmino/Getty Images)
She has also posted in Trumpian-style all caps: “MAKE CA GREAT AGAIN!”
As for VP Harris, she has not indicated any future plans for when she leaves office. However, a recent poll suggests Harris would have a sizable advantage should she decide to run in 2026. At that point, Newsom cannot run again because of term limits.
If Jenner decides to run and wins, it would mark the nation and state’s first transgender governor.
California
Northern California 6-year-old, parents hailed as heroes for saving woman who crashed into canal
LIVE OAK — A six-year-old and her parents are being called heroes by a Northern California community for jumping into a canal to save a 75-year-old woman who drove off the road.
It happened on Larkin Road near Paseo Avenue in the Sutter County community of Live Oak on Monday.
“I just about lost her, but I didn’t,” said Terry Carpenter, husband of the woman who was rescued. “We got more chances.”
Terry said his wife of 33 years, Robin Carpenter, is the love of his life and soulmate. He is grateful he has been granted more time to spend with her after she survived her car crashing off a two-lane road and overturning into a canal.
“She’s doing really well,” Terry said. “No broken bones, praise the Lord.”
It is what some call a miracle that could have had a much different outcome without a family of good Samaritans.
“Her lips were purple,” said Ashley Martin, who helped rescue the woman. “There wasn’t a breath at all. I was scared.”
Martin and her husband, Cyle Johnson, are being hailed heroes by the Live Oak community for jumping into the canal, cutting Robin out of her seat belt and pulling her head above water until first responders arrived.
“She was literally submerged underwater,” Martin said. “She had a back brace on. Apparently, she just had back surgery. So, I grabbed her brace from down below and I flipped her upward just in a quick motion to get her out of that water.”
The couple said the real hero was their six-year-old daughter, Cayleigh Johnson.
“It was scary,” Cayleigh said. “So the car was going like this, and it just went boom, right into the ditch.”
Cayleigh was playing outside and screamed for her parents who were inside the house near the canal.
I spoke with Robin from her hospital bed over the phone who told us she is in a lot of pain but grateful.
“The thing I can remember is I started falling asleep and then I was going over the bump and I went into the ditch and that’s all I remember,” Robin said.
It was a split-second decision for a family who firefighters said helped save a stranger’s life.
“It’s pretty unique that someone would jump in and help somebody that they don’t even know,” said Battalion Chief for Sutter County Fire Richard Epperson.
Robin is hopeful that she will be released from the hospital on Wednesday in time to be home for Thanksgiving.
“She gets Thanksgiving and Christmas now with her family and grandkids,” Martin said.
Terry and Robin are looking forward to eventually meeting the family who helped save Robin’s life. The family expressed the same feelings about meeting the woman they helped when she is out of the hospital.
“I can’t wait for my baby to get home,” Terry said.
California
California may exclude Tesla from EV rebate program
California Gov. Gavin Newsom may exclude Tesla and other automakers from an electric vehicle (EV) rebate program if the incoming Trump administration scraps a federal tax credit for electric car purchases.
Newsom proposed creating a new version of the state’s Clean Vehicle Rebate Program, which was phased out in 2023 after funding more than 594,000 vehicles and saving more than 456 million gallons of fuel, the governor’s office said in a news release on Monday.
“Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay,” Newsom said in a statement. “We’re not turning back on a clean transportation future – we’re going to make it more affordable for people to drive vehicles that don’t pollute.”
The proposed rebates would be funded with money from the state’s Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program, the governor’s office said. Officials did not say how much the program would cost or save consumers.
NEBRASKA AG LAUNCHES ASSAULT AGAINST CALIFORNIA’S ELECTRIC VEHICLE PUSH
They would also include changes to promote innovation and competition in the zero-emission vehicles market – changes that could prevent automakers like Tesla from qualifying for the rebates.
Tesla CEO Elon Musk, who relocated Tesla’s corporate headquarters from California to Texas in 2021, responded to the possibility of having Tesla EVs left out of the program.
“Even though Tesla is the only company who manufactures their EVs in California! This is insane,” Musk wrote on X, which he also owns.
BENTLEY PUSHES BACK ALL-EV LINEUP TIMELINE TO 2035
Those buying or leasing Tesla vehicles accounted for about 42% of the state’s rebates, The Associated Press reported, citing data from the California Air Resources Board.
Newsom’s office told Fox Business Digital that the proposal is intended to foster market competition, and any potential market cap is subject to negotiation with the state Legislature.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
TSLA | TESLA INC. | 338.59 | -13.97 | -3.96% |
“Under a potential market cap, and depending on what the cap is, there’s a possibility that Tesla and other automakers could be excluded,” the governor’s office said. “But that’s again subject to negotiations with the legislature.”
Newsom’s office noted that such market caps have been part of rebate programs since George W. Bush’s administration in 2005.
Federal tax credits for EVs are currently worth up to $7,500 for new zero-emission vehicles. President-elect Trump has previously vowed to end the credit.
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California has surpassed 2 million zero-emission vehicles sold, according to the governor’s office. The state, however, could face a $2 billion budget deficit next year, Reuters reported, citing a non-partisan legislative estimate released last week.
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