Year: 2020

(Bloomberg) — The pound is back to being the pariah of the currency world as renewed Brexit risks worsen the troubles of a market still reeling from the shock of the pandemic.Sterling fell a fifth day against the dollar on Friday after the latest negotiations between the U.K. and the European Union seemed set for a stalemate, with both sides refusing to compromise on key issues such as trade and movement of citizens. The pound is already the past month’s worst-performing Group-of-10 currency and options signal more pain ahead.British Prime Minister Boris Johnson threatened to walk away from the talks …read more […]

(Bloomberg) — Gold and silver are finishing the week on a high note, lifted by concerns over economic growth, a second wave of virus infections and simmering tensions between the U.S. and China.Gold headed back toward its peak in April, when prices hit the highest since 2012. Silver jumped to a two-month high. Prices are having a long-awaited breakout moment as market anxiety mounts, according to Rhona O’Connell, head of market analysis for EMEA and Asia at INTL FCStone.“There are fears over everything from political leadership through the health outlook overall and associated economic financial and political risk,” she said.Spot …read more […]

(Bloomberg) — Bearish bets have risen sharply on Singapore Airlines Ltd. shares, making it the most shorted stock in the city state as the carrier posted its biggest ever quarterly loss in the wake of the coronavirus pandemic.Investors have become increasingly pessimistic about holding the stock, with short interest as a percentage of carrier’s free-float shares more than quadrupling to 15.5% since mid-March, according to data from IHS Markit. The company’s stock price has dropped 40% this year, almost double the decline in the nation’s equity benchmark.The carrier recorded a net loss of S$732 million ($515 million) in the quarter …read more […]

(Bloomberg) — As it headed toward bankruptcy, Diamond Offshore Drilling Inc. took advantage of a little-noticed provision in the stimulus bill Congress passed in March to get a $9.7 million tax refund. Then, it asked a bankruptcy judge to authorize the same amount as bonuses to nine executives.The rig operator is one of dozens of oil companies and contractors now claiming hundreds of millions of dollars in tax rebates. They are employing a provision of the $2.2 trillion stimulus law, called the CARES act, that gives them more latitude to deduct recent losses.“This is a stealth bailout for the oil …read more […]

(Bloomberg) — European stocks jumped and U.S. equity futures eked out gains, trimming declines at the end of a week dogged by concern about a second wave of infections and simmering tension between America and China. Oil climbed and Treasuries edged higher.The Stoxx Europe 600 Index rallied led by mining and energy companies after missing a late rebound on Wall Street a day earlier. Futures contracts on the three main U.S. equity gauges pointed to more modest gains at the open, while Asian shares were mixed after data showed a rebound in Chinese industrial production but a deeper than expected …read more […]

(Bloomberg) — Hon Hai Precision Industry Co.’s profit plunged by the most on record after the coronavirus disrupted its China production and walloped global smartphone demand.Apple Inc.’s most important manufacturing partner recorded a 89% decline in net income to NT$2.1 billion ($70 million) in the first three months of 2020. Revenue slid almost 12% to NT$929.7 billion, according to Bloomberg News’ calculations based on previously reported monthly sales numbers.The earnings decline drove home to extent to which Covid-19 and the resultant global lockdown has chilled electronics demand and driven up costs for upstream producers like Hon Hai that had to …read more […]

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