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U.S. Stock Futures Dip; Yen Steady Before BOJ: Markets Wrap

(Bloomberg) — U.S. stock futures dipped early Monday as investors weighed further signs of positive developments in the global fight against the coronavirus. The yen was steady as traders awaited a key Bank of Japan policy meeting.Asian equity futures rose, following a move higher for U.S. stocks on Friday. The Australian dollar erased early modest losses to trade higher, while moves were muted elsewhere across foreign-exchange markets. Coronavirus deaths slowed the most in more than a month in Spain, Italy and France while fatalities reported in the U.K. and New York were the lowest since the end of March. Oil …read more […]

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Chinese Firms Halt Dividends, Sell Equity to Ride Out Pandemic

(Bloomberg) — In this era of pandemic uncertainty, Chinese and Hong Kong-listed firms have come to one consensus on how to best survive it: sit on their wallets and preserve cash.They are retaining profits instead of distributing them to shareholders, with the most Hong Kong dividend payers in at least 35 years opting not to do so in the first quarter. Meanwhile, though valuations recently reached a historical low in the city, firms haven’t picked up their stock-repurchase pace. Instead, sales of additional stock are near their highest since 2018.The data help illustrate how the pandemic has distressed the corporate …read more […]

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Domino’s Pizza Sees U.S. Comparable Sales Boost, Suspends Outlook

Domino’s Pizza Inc. (DPZ) provided an outlook into the four weeks of its second quarter, projecting a 7.1% increase in U.S. comparable store sales, as demand for home-delivery services is on the rise during the coronavirus pandemic.At the same time though, the world’s largest pizza chain by global retail sales pulled its two-to three-year outlook, citing the uncertainty about the global economy and the company’s business operations as a result of the COVID-19 impact. Domino’s international same-store sales are expected to be down 3.2% in the four weeks from March 23 to April 19, according to preliminary figures.”In a time …read more […]

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After betting its future on Boeing, jetmaker Embraer scrambles for elusive plan B

Brazilian planemaker Embraer SA has been thrust into an uncertain future with no immediate plan B, while not ruling out seeking a bailout after Boeing Co jettisoned a $4.2 billion commercial aerospace tie-up amid the coronavirus crisis. The company’s shell-shocked chief executive, in the job for a year with little aerospace experience, sought to rally staff after the board held late-night talks to review the collapse of plans for surviving mounting aerospace competition. “Our history is full of difficult moments, and we have overcome all of them,” Francisco Gomes Neto told Embraer’s 20,000 staff before giving …read more […]

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German government divided over form of Lufthansa rescue deal

Germany’s ruling coalition is divided over whether the state should have a role in running airline Lufthansa in return for a rescue package the company aims to finalise next week, politicians said on Sunday. Rolf Muetzenich, parliamentary party leader of junior coalition partners the Social Democrats, demanded a say in the running of the company in return for financial aid. “If companies such as Lufthansa receive billions of euros in state aid from taxpayers’ money, the federal government must also be guaranteed a say in the matter,” he told the Bild newspaper. …read more […]

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Brazil's Embraer adjusting production after deal with Boeing collapses

Brazil planemaker Embraer SA said that after a $4.2 billion deal with Boeing Co fell apart over the weekend, it is working on adjusting production levels and capital expenditures, as well as working to preserve cash. The company added in a statement that it finished 2019 with a “solid cash position” and had no “significant debt in the next two years.” Other measures include adjustments to inventory, extension of payment cycles, reduction of expenses and seeking financing, Embraer said. …read more […]

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Equity valuations rebounding, with bleak earnings a wild card

The sharp rebound in equities has pushed widely used measures of valuing U.S. shares to their highest level in years. Strategists say price-to-earnings ratios could go higher still given monetary stimulus, but huge uncertainty around earnings this year because of the economic fallout from the coronavirus makes for challenges in valuing shares. Stock prices have risen even as earnings estimates have fallen, lifting multiples that were knocked down in the virus-driven market meltdown. …read more […]

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How the U.S. could use taxpayer dollars to save oil and energy companies

The U.S. federal government is looking at “a whole bunch of alternatives” to support oil and other energy companies, Treasury Secretary Steven Mnuchin said on Friday as the industry struggles with plummeting prices and demand as the coronavirus crushes economic activity. Taking equity stakes as part of a lending facility for the industry is among the alternatives, Mnuchin said at a White House event. President Donald Trump said: “The energy business is very important to me, and we’re going to build it up.” …read more […]

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Will the Stock Market Rally Higher This Week? This Quarter?

DA stock market rally is an exciting thing to be part of. All week you’ve been watching your holdings decrease in value—then, suddenly, they’re trending up at a fast pace! A market rally can ease the pain of sudden losses and even end higher than where the downturn started. That is, of course, if it’s not a dead cat bounce or a pump-and-dump scenario.
In times of market volatility, stock market rallies aren’t uncommon. In fact, they’re actually part of the reason markets are so volatile! It’s important to pay attention to when the market is poised to rally and …read more […]

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Welcome to the Great Emerging-Market Schism: A Virus-Made Split

(Bloomberg) — A two-track world is starting to establish itself in emerging markets.Not only are the stocks, bonds and currencies of the developing economies reacting to the Covid-19 pandemic in very different ways, but the fallout is quickly creating two distinct camps of winners and losers. Hence, the extra premium investors demand to hold riskier emerging-market debt has ballooned, with the the spread between high-yield bonds and their investment-grade counterparts now close to its widest since 2002, according to JPMorgan Chase & Co.’s indexes. Qatar, Abu Dhabi and Saudi Arabia — which have single-A or double-A ratings — accounted for …read more […]