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Trading Ideas

Airlines Raise More Than $17 Billion From Banks in Weeks

(Bloomberg) — Airlines worldwide raised more than $17 billion in bank loans in March to shore up their finances amid the coronavirus outbreak.U.S. carriers were the most active, borrowing $12.5 billion, according to data compiled by Bloomberg. Delta Air Lines Inc. is the top borrower this month, obtaining $5.6 billion, followed by Singapore Airlines Ltd., which secured a S$4 billion ($2.8 billion) bridge loan, and United Airlines Holdings Inc., which raised $2.5 billion.The airlines have borrowed new loans or drawn down on existing credit lines that they typically didn’t use before the health crisis. Companies in all industries globally have …read more […]

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Trading Ideas

Shares of a German Ventilator Manufacturer Are Soaring

(Bloomberg) — A crushing global shortage of ventilators needed to treat coronavirus patients has sent a German smallcap stock soaring, leaving analysts scrambling to value both the shares and the company’s ability to help combat the crisis.While major German indexes have lost between 17% and 28% in 2020, shares of Draegerwerk AG & Co KGaA have gained about 70%, taking off in mid-March after Germany ordered 10,000 ventilators and other medical equipment from the company. M.M. Warburg analyst Eggert Kuls estimates that each ventilator costs about 20,000 euros, making the deal worth 200 million euros ($221 million) in revenue for …read more […]

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Goldman Sees U.S., Russian Oil Most Vulnerable to Demand Crash

(Bloomberg) — Oil demand is getting hammered at a faster pace than anyone had predicted and landlocked crude production in the U.S., Russia and Canada is most vulnerable, according to Goldman Sachs Group Inc.Consumption will drop by 26 million barrels, or 25%, this week as social-distancing measures to contain the coronavirus now impact 92% of global GDP, analysts including Jeff Currie and Damien Courvalin said in a note. There’s been at least 900,000 barrels a day of announced shut-ins at the wellhead, with the true number likely higher and growing by the hour, they said.“The ultimate magnitude of these shut-ins, …read more […]

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Business News

China unexpectedly cuts reverse repo rate by most in five years to support virus-hit economy

China’s central bank unexpectedly cut the rate on reverse repurchase agreements by 20 basis points on Monday, the largest in nearly five years, as authorities ramped up steps to relieve pressure on an economy ravaged by the coronavirus pandemic.

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JPMorgan Says the Market Rout Is Probably Past Its Worst Now

(Bloomberg) — Strategists at JPMorgan Chase & Co. have concluded that most risk assets — a universe that typically includes stocks and credit — have seen their low points for the recession that’s gripped economies around the world.Conditions that JPMorgan had set for market stabilization and revival have largely been met, with recession-like pricing, a reversal in investor positioning and extraordinary fiscal stimulus, strategists led by John Normand wrote in a note Friday. Coronavirus infection rates remain a “wild card,” as they remain high even if they’re “slowing” in the U.S. and Europe.“Risky markets should remain volatile as long as …read more […]

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Major airlines urge U.S. Treasury to disburse assistance quickly

Major U.S. airlines asked the U.S. Treasury to move quickly to release up to $58 billion in government grants and loans and recommended a formula to divide up the money. The letter was signed by the chief executives of American Airlines, Delta Air Lines, United Airlines, Alaska Air Group, JetBlue Airways Corp, Southwest Airlines Co, Hawaiian Airlines and Atlas Air Worldwide. …read more […]