Trading Ideas

(Bloomberg) — Saudi Arabia might have just signed off on one of the most notable oil output deals in history, but challenges lie ahead as the kingdom faces keen competition from rival suppliers to the prized Asian market.That perhaps explains why the de-facto leader of OPEC slashed its official selling prices to Asian customers for May by larger-than-expected margins this week. Eight of eleven refiners across the region surveyed by Bloomberg welcomed Saudi Aramco’s aggressive marketing strategy, while the remaining three said they had expected even steeper discounts.Despite the price war being defused over the weekend, there’s no reason to …read more […]

In a bid to further cut costs, Tesla (TSLA) is pursuing a reduction in rent, according to correspondence viewed by The Wall Street Journal.“The rapid world pandemic that is now affecting our country has led Tesla to make strategic decisions to ensure the company’s long-term success and growth,” said the email sent to landlords, as seen by The Wall Street Journal. “As a result of the increasing restrictions on our ability to conduct business, we would like to inform you that we will be reducing our monthly rent obligations effective immediately.”The automaker told its landlords that it would like to …read more […]

The shares of Norwegian Air plunged by more than 60% on Tuesday as they resumed trade after the airline proposed a financial rescue package on April 8 that would significantly dilute existing equity. Special observation is used under circumstances that may make the valuation of a security particularly uncertain, according to the market operator’s guidelines. …read more […]

The company is being probed for “suspicions of breach of sanctions” by the Department of Justice (DoJ) and the Office of Foreign Assets Control (OFAC), a financial intelligence and enforcement agency under the U.S. Treasury department, the report said, adding it was not clear which country or countries the regulators were focusing on. The company and the DoJ did not immediately respond to Reuters’ requests for comment. …read more […]

Anheuser-Busch InBev , the world’s largest brewer, proposes to halve its final dividend and has postponed its annual shareholder meeting owing to uncertainty around the COVID-19 pandemic. The maker of Budweiser, Corona and Stella Artois on Tuesday said that it is proposing to pay a final 2019 dividend of 0.50 euros per share, down from the 1 euro it had initially proposed. It paid an interim dividend of 0.80 euros in November. …read more […]

The shares of Norwegian Air plunged by more than 60% on Tuesday as they resumed trade after the airline proposed a financial rescue package on April 8 that would significantly dilute existing equity. Special observation is used under circumstances that may make the valuation of a security particularly uncertain, according to the market operator’s guidelines. …read more […]

Streaming platform Roku (ROKU) has now updated its Q1:20 guidance, revealing that in late Q1 the “shelter at home” regulation resulted in an acceleration in account growth and an increase in viewing. Shares in ROKU rose 4.4% in Monday’s trading, while the S&P 500 dropped 1%.Specifically, Roku estimates Q1 Active Accounts at 39.8 million (up 37% year-over-year vs. 36% in Q4) implying roughly 3 million net additions, with Q1 streaming hours at 13.2 billion (up 49% Y/Y vs. 60% in Q1).The company also withdrew its FY20 guidance on April 13, citing broader business and macro uncertainties arising from the COVID-19.“We …read more […]

(Bloomberg) — U.S. stock index futures gained as countries across the globe weighed when it would be safe to ease restrictions set in place to help contain the spread of coronavirus.Contracts on the S&P 500 gained 1.6% as of 6:51 a.m. in London, after declining 0.7% on Monday. Futures advanced 1.7% on the Nasdaq 100 Index and climbed 1.6% on the Dow Jones Industrial Average. President Donald Trump declared he has “total” authority to order states to relax social distancing to combat the coronavirus outbreak and reopen their economies.U.S. stock futures got a boost during Asian trading hours after data …read more […]

The post The Coronavirus Outlook: Better Than Anticipated appeared first on Investment U. …read more […]

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Airline industry officials expect all major airlines to accept the grants in coming days, and U.S. Treasury Secretary Steven Mnuchin said on Monday he expects decisions to come out “very quickly.” Brent McIntosh, the Treasury undersecretary for international affairs, told Reuters on Monday the agency was not planning to change the terms laid out on Friday, which require 30% of the funds allotted to each airline to be repaid. The U.S. government would also receive warrants equal to 10% of the loan amount. …read more […]

(Bloomberg) — Gold extended a rally to hit the highest level in more than seven years on concern that the coronavirus pandemic will have a devastating effect on the global economy, hammering corporate earnings while supercharging demand for havens.Bullion has soared as the outbreak tipped economies into recession and spurred central banks and governments to launch unprecedented stimulus. Since getting caught up in a wave of forced selling last month as equities sank, gold has staged a powerful recovery. That means futures are now approaching $1,800 an ounce after trading in the $1,400s less than four weeks ago.Gold traded on …read more […]

Oil prices rose on Tuesday after a U.S. agency said shale output in the world’s biggest crude producer would fall by the most on record in April, adding to cuts from other major producers. U.S. West Texas Intermediate (WTI) crude was up 47 cents, or 2.1%, at $22.88, having dropped 1.5% the previous session. With other producers, including the world’s biggest, the United States, reducing output as well, the estimated reduction in production is about 19.5 million bpd. …read more […]

The Department of Justice (DoJ) and the Office of Foreign Assets Control, a financial intelligence and enforcement agency that is part of the U.S. Treasury department, are investigating BAT for “suspicions of breach of sanctions”, the newspaper reported, but said it is not clear which country or countries the regulators are focusing on. The DoJ and BAT did not immediately respond to Reuters’ requests for a comment. …read more […]

We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […] …read more […]