Trading Ideas

Top news and what to watch in the markets on Thursday, March 12, 2020. …read more […]

Royal Dutch Shell Chief Executive Ben van Beurden’s pay package halved last year to 10 million euros ($11.3 million) after the energy company suffered seven deaths and saw a drop in revenue. Van Beurden, who became CEO in 2014, oversaw a sharp growth in Shell’s oil and gas output following the 2016 acquisition of BG Group for $53 billion. Shell said in its annual report that van Beurden’s remuneration dropped by 51% last year compared with 2018, due in part to seven fatalities the company had last year. …read more […]

The bank, which now rates Boeing “neutral”, said the added hit from the coronavirus to airlines made it impossible to stick with its call that investors should wait out the grounding of the company’s 737 MAX planes this year. Boeing said on Wednesday it was freezing new hiring and overtime except in certain critical areas to preserve cash, and the company is also moving to draw down funds from existing loan facilities as it battles the worst crisis in its history. “Our desire to hang in with Boeing until the return of the 737 MAX has worked out …read more […]

(Bloomberg) — The stock rout in Asia’s emerging markets is going from bad to worse. After most gauges tumbled into bear territory in the last few weeks, now the plunge is triggering trading halts.Circuit breakers were triggered in Thailand and the Philippines after the benchmark gauges of both countries slumped 10%, the most in Asia. Indonesia, where the stock exchange just tightened its rules, also suspended trading as the Jakarta Composite Index fell 5%.Both the SET Index and the Philippine Stock Exchange Index tanked the most since October 2008, as foreign investors liquidated their equity holdings fast in a region …read more […]

The bank, which now rates Boeing “neutral”, said the added hit from the coronavirus to airlines made it impossible to stick with its call that investors should wait out the grounding of the company’s 737 MAX planes this year. Boeing said on Wednesday it was freezing new hiring and overtime except in certain critical areas to preserve cash, and the company is also moving to draw down funds from existing loan facilities as it battles the worst crisis in its history. “Our desire to hang in with Boeing until the return of the 737 MAX has worked out …read more […]

The market is likely to stay under severe pressure as the coronavirus af …read more […]

British cinema operator Cineworld said on Thursday it could breach the terms of its existing debt arrangements under a worst case scenario for the impact of the coronavirus over the next few months, sending its shares down 20%. The company, whose biggest shareholder sold a part of Cineworld’s stake last week to refinance debt, has been grappling with worries about the potential impact of the coronavirus on box office attendance as the epidemic shows no signs of slowing. Cineworld is saddled with $3.5 billion in debt, excluding leases, as it begins to pay for its takeover of …read more […]

(Bloomberg) — Coronavirus-induced market mayhem has pushed so much liquidity out of U.S. Treasuries that the true value of more than $50 trillion in assets around the globe is in doubt.Yields in the world’s largest debt market have been on a mind-bending, three-week roller-coaster ride. At one point, the entire U.S. yield curve was below 1% for the first time ever. But this week rates have jumped from Monday’s all-time lows even though fear of the virus has intensified, and U.S. stocks sank into a bear market Wednesday. The biggest oil-price plunge since 1991 also stirred chaos this week.This volatility …read more […]

(Bloomberg) — For weeks, investors have been pleading for governments to shore up a global economy ravaged by the coronavirus. But after the biggest wave of stimulus announcements since the outbreak began, fear is mounting the efforts might not provide the salvation markets are looking for.Emergency measures in the U.K., Italy and Australia, along with a commitment from Germany’s Angela Merkel to do “whatever is necessary,” were met with fresh waves of selling in stocks, putting the MSCI All-Country World Index on the brink of a bear market. The gloom veered toward panic after President Donald Trump announced an underwhelming …read more […]

(Bloomberg) — The Indian rupee slid to near a record low and equities headed for a bear market as continued worries over the economic impact from the coronavirus sparked a broad selloff in risk assets globally.The rupee weakened as much as 1% to 74.3387 per dollar on Thursday to near its record low of 74.4825, a level last seen in October 2018. Sovereign bonds declined and the S&P BSE Sensex gauge of equities plunged as much as 7.6%, the steepest drop since January 2009.The rupee is Asia’s worst-performing currency this month and stocks are down almost 20% from the January …read more […]

Washington state’s House of Representatives passed a measure on Wednesday night that removes a key tax break for Boeing Co and other aerospace firms, in a bid to head off possible European tariffs on U.S. goods and ease a transatlantic trade dispute over aircraft subsidies. “This measure is important to protect our state’s economy,” House Democratic Majority Leader Pat Sullivan said by phone. “We don’t want tariffs levied by the European Union on the aerospace industry but also on other key industries in the state like wine and agricultural products.” …read more […]

(Bloomberg) — Oil plummeted after President Donald Trump said the U.S. would suspend all travel from Europe for the next 30 days to try and contain the coronavirus, pummeling fuel demand even further.Futures in London fell as much as 7% after being up shortly before Trump began a highly anticipated address on the White House’s response to the virus. The president also called on Congress to pass immediate payroll tax relief, but he stopped short of offering a detailed economic rescue package. The briefing failed to soothe broader markets, with the global stock rout deepening.Crude is down more than 25% …read more […]

(Bloomberg) — A combination of President Donald Trump’s unprecedented travel restrictions between the U.S. and Europe and underwhelming stimulus measures sparked a fresh exodus from risk assets in global financial markets Thursday.The rush to gauge the impact on the global economy and corporate earnings, a sense of disappointment at the lack of detail in the U.S. stimulus package and an impression that Washington has fallen behind the curve in its virus response occupied the minds of market participants.Here is a sample of their views:No EndgameStephen Innes, global chief markets strategist at AxiCorp“By criticizing Europe and not announcing stricter domestic travel …read more […]

(Bloomberg) — President Donald Trump suspended all travel from Europe, excluding the U.K., as the World Health Organization declared the coronavirus outbreak a pandemic.Oscar-winning actor Tom Hanks said he and his wife have the pathogen, which a top infectious-disease specialist said is 10 times more deadly than the seasonal flu. The National Basketball Association canceled all games until further notice, and officials across the globe took steps to discourage or ban large gatherings as cases neared 125,000.The global stock rout deepened as Trump stopped short of offering a detailed rescue package, even as Australia and the U.K. unveiled stimulus measures.Key …read more […]

Coronavirus is probably the 1 concern in investors’ minds right now. It should be. On February 27th we publish an article with the title “Recession is Imminent: We Need A Travel Ban NOW”. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […] …read more […]