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Yahoo! - Fri, 03 Apr 2020 14:18:57 -0400
Dow 15,000 very likely as coronavirus pandemic hits U.S. economy: strategist

Dow 15,000 very likely as coronavirus pandemic hits U.S. economy: strategistThe coronavirus pandemic isn't done yet, bringing pressure to the stock market, pros say.

Yahoo! - Fri, 03 Apr 2020 12:36:55 -0400
Hell is Coming and We Sold Out Our National Security For A Few Dollars

Hell is Coming and We Sold Out Our National Security For A Few DollarsExecutive Summary: Two weeks ago we predicted that the U.S. death toll from COVID-19 would reach 20,000 by April 15th. The following article explains why.   Article: I am furious and frustrated. Once the greatest country on the face of this planet, the United States is going hat in hand to China, begging for a […]

Yahoo! - Fri, 03 Apr 2020 09:34:15 -0400
Goldman Sachs: These 3 Stocks Are Poised to Surge by at Least 35%

Goldman Sachs: These 3 Stocks Are Poised to Surge by at Least 35%Investment bank Goldman Sachs has been analyzing the market performance, and has a mixed outlook for the year – not necessarily bad news for the long term, but an acknowledgement that we’re not completely certain what the economic cycle has in store. David Kostin, Goldman Sachs' chief U.S. equity strategist, predicts that the market has not found its true bottom yet, and has to meet three conditions before it can. Kostin notes that the current peak-to-trough time, of just 23 trading days, is an order of magnitude faster than the median – which stands at 17 months. But there is hope on the horizon: Kostin also believes that the S&P can finish out the year at 3,000.The three conditions Kostin sees as essential to a true market bottom are: A slow in the viral spread in the US, allowing investors to understand the actual economic impact; evidence that policy actions by the Federal Reserve and Congress are showing success in limiting the damage; and a bottoming out in both investor sentiment and positioning.Once the bottom is reached, Kostin sees a quick rebound in the offing. With that in mind, Goldman's stock analysts remind investors that compelling opportunities can still be found. Using TipRanks database, we were able to pinpoint 3 stocks that are Buy-rated and backed by the analysts from Goldman Sachs as well as the rest of the Street. To top it all off, each stands to see over 35% gains in the next year. Columbia Property Trust (CXP)We’ll start in commercial real estate, with an REIT focused on urban office properties. Columbia Property Trust holds some 6.8 million square feet of office space in New York, San Francisco, and Washington DC, with smaller investments in Los Angeles and Boston. Three of these cities – NY, LA, and San Fran – are hard-hit by coronavirus or the lockdown policies implemented to halt its spread. That should hurt a commercial landlord, but Columbia also has over 6 years remaining on its average lease, and those long remaining terms, along with a high occupancy rate of 97%, help to insulate the company from immediate difficulties.A solid end to 2019 also put Columbia in a fair position to meet the current downturn. The company met the earnings forecast, showing 34 cents per share, while the $68.73 million revenues beat the estimates by 3.1%. The earnings were more than enough to keep up the 21-cent quarterly dividend. The payout ratio, at 61%, is low for the sector – but also shows that the company can easily afford its dividend. At 7.6%, the yield is excellent, far ahead of both the average yield on the S&P 500 and the yield on Treasury notes.5-star analyst Richard Skidmore, covering CXP for Goldman Sachs, sees the stock with a clear near-term path to weather the current storm. Skidmore writes, “CXP has approximately 2% of its portfolio expiring in 2020, so we see limited downside risk resulting from the current environment. We expect growth to accelerate in 2021/2022 driven by expiration renewals… From a liquidity perspective, CXP has $314mn available under its revolving credit facility, so we believe CXP has adequate liquidity to fund its operations…”Skidmore backs his Buy rating on the stock with a $16 price target, indicative of a 44% upside potential. (To watch Skidmore’s track record, click here)Overall, CXP shares have a Strong Buy from the analyst consensus, based on 3 Buy ratings and 1 Hold. The stock is selling for a low $11.10, and the $21.25 average price target suggest room for 91% upside growth in the coming 12 months. (See Columbia stock analysis on TipRanks)Celanese Corporation (CE)Next up, we’ll switch to the chemical industry, where Texas-based Celanese holds a global niche. The company produces acetyl products, a vital molecular compound with applications in a wide range of industries. Celanese is also the largest producer of vinyl acetate monomer, a vital component of industrial polymers and adhesives.The coronavirus pandemic, by forcing workplace closures to halt the viral spread, has halted operations and put serious pressure on the company. This comes on the heels of a disappointing fourth quarter, in which demand fell and earnings and revenues both missed the estimates. EPS, at $1.99 cents, was down 16% year-over-year, and revenues declined 15% over the same period.On a positive note, Celanese boasted $179 million in free cash flow for the quarter, well ahead of the $144 million in capital expenditure. The company was easily able to maintain its 62-cent quarterly dividend, with a moderate payout ratio of 31%. At $2.48, the annualized payment gives a yield of 3.6%.Goldman Sachs 5-star analyst Robert Koort has been covering CE shares, and sees them in an advantageous position right now – enough that he upgraded his stance on the stock from Neutral to Buy. His $95 price target implies an upside potential of 38%. (To watch Koort’s track record, click here)Defending his position on CE, Koort writes, “…the company has shown an ability to maintain meaningful free cash generation during previous economic downturns. Additionally, a significantly improved and less capital intensive business mix, and strategic acquisitions have driven structurally higher cash generation capabilities through the cycle, as evidenced by steep increases and relative stability in FCF generation over the last 7 years.”It appears consensus sentiment matches well with Koort's bullish stance, with TipRanks analytics showing CE as a Buy. Based on 17 analysts tracked in the last 3 months, 10 rate the stock a "buy," while 7 suggest "hold." The 12-month average price target stands at $104.36, marking a 52% upside from where the stock is currently trading. (See Celanese stock analysis on TipRanks.)Univar Solutions (UNVR)Last on our list is another player in the chemical industry. Univar is an ingredients distributor, providing an enormous range of chemicals, solvents, and additives needed by industrial chemical manufacturers in completing their formulations. The company bills itself as the one-stop-shop in supplying the major chemical manufacturers, and its $9.3 billion in 2019 revenue, up 8% year-over-year, underlines the importance of that niche.Q4 revenues were in-line with the 2019 total. At $2.2 billion, the quarterly total showed 9% year-over-year growth. EPS, however, was down; the 29 cents reported fell 4 cents from the year-ago number. Like Celanese above, however, Univar finished 2019 with plenty of cash on hand. The company reported some $330.3 million available, a 172% increase.This is another stock reviewed by GS’s Robert Koort. Like CE above, Koort gives UNVR an upgrade, raising his outlook to a Buy. Koort gives the stock a $15 price target, showing confidence in a 51% upside for the coming year. (To watch Koort’s track record, click here)Commenting on Univar, Koort wrote, “When looking at prior periods of economic weakness, distributors have broadly proven to perform relatively in-line with the market… we believe the stock has underperformed driven by several factors. First, during the last quarterly earnings call UNVR provided disappointing FCF guidance… We see this dynamic improving as the FCF guidance for 2020 assumed a back-end loaded improvement in sales. Should the macro environment falter… this could result in improving FCF...”UNVR shares are heavily discounted after the market’s recent slide, selling for just $9.89 now. The average price target is $24.88, and implies a powerful growth potential: 152% for the coming year. The stock gets a Moderate Buy rating from the analyst consensus, based on a 3 to 2 split of Buys versus Holds. (See Univar’s stock analysis at TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Yahoo! - Sat, 04 Apr 2020 11:41:19 -0400
Coronavirus will likely hit these states hardest financially, according to Moody's

Coronavirus will likely hit these states hardest financially, according to Moody'sNevada is likely to be hit the hardest financially by the coronavirus outbreak, according to research compiled by Moody’s Analytics.

Yahoo! - Fri, 03 Apr 2020 18:22:38 -0400
Coronavirus job losses 'way worse than anything we saw in the Great Depression:' Economist

Coronavirus job losses 'way worse than anything we saw in the Great Depression:' EconomistThe U.S. economy actually lost jobs on Friday, after a decade of gains, and the employment situation will likely only get bleaker as the nation remains closed for business to stem the spread of the deadly new coronavirus.

Yahoo! - Sat, 04 Apr 2020 00:00:00 -0400
The Most Profitable Trade: ‘Oil All Over the Oceans Right Now’

The Most Profitable Trade: ‘Oil All Over the Oceans Right Now’(Bloomberg) -- To outsiders, the oil trade of the day is so astonishing that even President Donald Trump sounded flabbergasted when he described it.“There’s oil all over the oceans right now. That’s where they are storing oil; we have never seen anything like that,” Trump said this week from the podium of the White House. “Every ship is now loaded to the gills.”With oil demand in freefall, traders are resorting like never before to using the world’s fleet of supertankers as temporary floating storage facilities, filling them with millions of unsold barrels until better times. It’s an unusual trade, but one that’s among the most lucrative around right now, just when everyone on Wall Street struggles to make money.From the coast of Singapore to the North Sea, the tankers are starting to slow down, ready to drop their anchors, holding crude the world economy doesn’t need as fuel demand plummets due to the coronavirus outbreak. And more tankers probably will be needed, as oil supply still runs well above demand.“The world is overproducing oil at a historic rate,” said Robert Hvide MacLeod, the head of Frontline Management, one of the world’s largest operators of supertankers. “Land-based storage is limited and selling out fast. Storage on ships will be the only solution.”What Trump didn’t say is that the most intriguing facet of the floating storage trade is just how profitable it is. In the industry, it’s often described as a money printing press: traders buy oil on the cheap, and immediately sell their cargo forward in the futures market, locking in a chunky profit -- with very little risk. Before oil prices rallied on Thursday on talk of an OPEC+ output cut, traders were easily able to lock-in a 20% annualized return on their money.Out of hundreds of supertankers in the world, large numbers of them are being hired not for their primary purpose -- shipping crude from A to B -- but to store oil amid a lack of space in shore tanks.Marco Dunand, the co-founder of top oil trading house Mercuria Energy Group, estimates that 250 million barrels of crude and refined products are already on the water, either as floating storage or waiting to be discharged because refineries can’t accept more crude right now.“The excess is pushing itself into the water,” he said.Far from being a problem, the floating storage is a money maker for some in the industry: the commodity trading houses and the shipowners.The oil market has flipped upside down, with the cost of a barrel of oil today far below what the market is willing to pay in, say, six months or a year. It’s what traders call a contango market. As oil is cheaper today than in 2021, a trader can buy crude now, put it on storage, while simultaneously selling in the forward market, in effect locking in the price difference between the different dates. As long as the contango is wide enough to cover the cost of storage, finance and insurance, the transaction is profitable.Ben Luckock, co-head of oil trading at merchant Trafigura Group, said the oil industry was pumping “a commodity that the world doesn’t need,” forcing crude into non-traditional storage: the tankers.“The problem for crude oil is fast coming. We need more contango to pay for non-traditional types of storage,” he said.Earlier this week, the six-month contango in Brent market, a gauge of the economic viability of floating storage, widened to a record of $14.46 a barrel, surpassing the peak set in the 2008-09 crisis, when oil demand briefly plunged.The floating storage game is the territory of the most sophisticated oil merchants, including little known names outside the petroleum industry like Vitol Group. Commodity trading giant Glencore Plc has hired the Europe, the world’s largest oil tanker, to store crude. In the past, others have also played the contango, including Koch Supply & Trading, the in-house trading arm of the billionaire Koch brothers, and Royal Dutch Shell Plc.Shipowner profitThe traders aren’t the only ones making money. Shipowners are racking up exorbitant fees. Two years ago, the daily price of a standard supertanker, known as very large crude carrier, or VLCC, was about $18,000 a day. This year, one owner managed to get a record of more than $400,000 a day.“There’s been a huge interest in storage and that’s helped to lift freight rates,” said Halvor Ellefsen, a tanker broker at Fearnley’s A/S. “The bottom line is that everybody in the shipping market is acutely aware of the contango, and the profits it can give traders.”The glut, almost entirely caused by the demand collapse emanating from Covid-19, is a disaster for the wider global oil industry though. While the traders and the shipowners profit from the contango, Trump is eager for Saudi Arabia and Russia to work together to roll back production in order to lift prices and protect the jobs of workers in the U.S. oil industry.With Trump pushing Riyadh and Moscow to act, the contango has narrowed, endangering the profitability of the floating storage trade. But it’s far from over. Even if the OPEC+ alliance cuts production by 10 million barrels a day, as Trump suggested, it won’t be enough to offset the drop in demand, which most executives say is far bigger than that.“According to our numbers, even this 10 million barrels cut, in the second quarter we may well see a stock building over 15 million barrels per day,” said Fatih Birol, the head of the International Energy Agency.With onshore tanks filling up every hour, every day, every week, the oil will have to flow onto the water -- into the very same tankers Trump talked about. It’s doing so already at record pace.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Fri, 03 Apr 2020 15:44:59 -0400
Kraft Heinz cuts output at three plants, adds shifts for mac & cheese

Kraft Heinz cuts output at three plants, adds shifts for mac & cheeseKraft Heinz Co said on Friday it has moved to significantly reduce production at three plants providing restaurant supplies amid the new coronavirus outbreak, but its CEO noted the company has added shifts at others to meet demand for packaged foods like macaroni and cheese. Speaking in a video presentation hosted by Brazilian retail brokerage XP Inc , Miguel Patricio said the affected factories, two in the United States and one in the United Kingdom, are in the food service segment and saw demand drop due to the pandemic, mainly in Europe. In a statement sent after the video, in which Patricio said the plants had been halted, Kraft said, "These facilities have significantly reduced production."

Yahoo! - Fri, 03 Apr 2020 14:26:23 -0400
Assoc of Flight Attendants Pres.: We're looking at job losses as steep 90% in the industry

Assoc of Flight Attendants Pres.: We're looking at job losses as steep 90% in the industryPresident of the Association of Flight Attendants-CWA Sara Nelson joins Yahoo Finance’s Zack Guzman to discuss the outlook on the airline industry and how workers are coping amid the coronavirus pandemic.

Yahoo! - Sat, 04 Apr 2020 11:40:32 -0400
Zoom stock: Privacy and China connection weigh on shares

Zoom stock: Privacy and China connection weigh on sharesOne of the few stocks that has benefited from the coronavirus pandemic is Zoom, although the stock is now under pressure due to privacy concerns. Zoom stock was up more than 100% this year because of its surge in popularity due to the worldwide quarantine and lockdowns. The shares climbed while most of the rest […]

Yahoo! - Sat, 04 Apr 2020 10:25:25 -0400
Introducing Chesapeake Energy (NYSE:CHK), The Stock That Collapsed 99%

Introducing Chesapeake Energy (NYSE:CHK), The Stock That Collapsed 99%Some stocks are best avoided. We really hate to see fellow investors lose their hard-earned money. For example, we...

Yahoo! - Thu, 02 Apr 2020 16:10:32 -0400
7 Tech Stocks to Buy For an Interconnected World

7 Tech Stocks to Buy For an Interconnected WorldAmidst growing global tumult, volatility has had the stock market swinging from extreme bearishness to brief moments of bullishness. And although the general direction is down, sticking to the game plan will pay off in the long run. Investors ought to stake claims in ongoing trends now to maximize returns over the next few years.If anything, a market correction, or even a crash, can create better prices for investors willing to buy and hold. In the technology sector, the increasingly connected world of smart devices (speakers, thermostats and doorbells, to name just a few) will result in strong sales growth for these devices and the systems that power them. While consumers are familiar with these devices as ways to make life more convenient, turning on lights or opening garages with their smartphones, the business applications should appeal to investors.Of course, this connected world needs communication infrastructure to support 5G networks and the Internet of Things (IoT). So, should the global economy slow considerably in the short-term, the demand for connectivity will not change much. For example, the sudden need to stay at home to work will increase the demand for connectivity solutions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut these developments in the telecom sector are only one aspect of the increasingly connected world.Robert Siegel, lecturer in management at Stanford Graduate School of Business, thinks every industry will be affected by the proliferation of smart devices that can communicate with each other via the internet:"Some obvious ones include manufacturing, mobility, and healthcare. The ability to make things with speed and scale will drive large scale but simultaneously customized manufacturing of items ranging from clothing to retail to food (yes, food!). Cars will become moving collections of sensors which will impact traffic, entertainment (in and out of the vehicle) and hospitality." * 7 Small-Cap Stocks That Might Not Survive When it comes to the world of smart devices investors should invest not only in the "usual suspects" (telecom and tech stocks), but in companies that offer solutions in the automotive or retail space as well. Here are seven stocks investors should consider. Tech Stocks to Buy: Cisco Systems (CSCO)Source: Valeriya Zankovych / Cisco Systems (NASDAQ:CSCO) directly benefits from the surge of people working from home in order to minimize the spread of the coronavirus. Cisco CEO Chuck Robbins said that user activity for its video conference platform, WebEx, surged to 5.5 billion meeting minutes in just the first 11 days of March.In the cloud space, Cisco has partnered with (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) to support AWS and Azure, respectively. Its software-defined network (SDN) WAN connectivity gives those platforms very tight security, as well as a way to analyze the entire network of devices. On a conference call, Cisco said that its SDN provides data on "hundreds or thousands [of] different types of network devices." That ensures the customer gets the most data out of its infrastructure.Cisco has expertise in building large-scale networks that are highly available (e.g. reliable) and secure. Customers get better tools to manage the network and to ensure its security. In effect, Cisco enables users to connect quickly to an Azure or AWS platform.Critically, Cisco has a security stack in place to handle a higher volume of users. So the end-user on, say, Office 365, should still have a good experience despite increased traffic.That's great news for Cisco. In a 5-year discounted cash flow growth exit model, assume revenue growing a modest 1.2% compounded annually. With the following metrics below, Cisco stock is worth over $50:Metrics Range Conclusion Discount Rate 9.5% - 8.5% 9.00% Perpetuity Growth Rate 2.0% - 3.0% 2.50% Fair Value $45.64 - $59.05 $51.32 Data courtesy of AT&T (T)Source: Jonathan Weiss / AT&T (NYSE:T) is one of the best plays in the telecom sector right now, even if the company recently cancelled an accelerated share buyback to preserve cash on hand.The company said that it decided to pause its $4 billion stock buyback "to maintain flexibility and focus on continued investment in serving our customers, taking care of our employees and enhancing our network, including nationwide 5G. These continued investments will help ensure the Company is well-positioned when the pandemic passes and economies begin to recover."Earlier in March 2020, the company announced that 5G is now live in 22 more markets across the U.S. Since some of the latest smartphones, like Samsung's Galaxy S20, support 5G, customers will begin to utilize the faster low-band spectrum. 5G offers faster speeds over broader distances than the older 4G+ network. And since the demand for better network performance keeps growing, AT&T is in a good position to build its subscriber base at the expense of its competitors.AT&T's Business Solutions division sells wireless products, IoT, and connected devices through FirstNet. It is deploying high-speed nationwide wireless broadband to serve public safety. The reliability and speed of its network will serve to improve AT&T's reputation. Consumer and business customers will switch to AT&T's network if they want a better network and more services. AT&T said its Business Wireline group contributes a lot to its EBITDA. * 7 Small-Cap Stocks That Might Not Survive Analysts currently have an average price target of $42.10 on AT&T stock (per Tipranks). Nokia (NOK)Source: RistoH / Nokia (NYSE:NOK) is a leading supplier of 5G networking solutions. In early March, the company announced a collaboration with Intel (NASDAQ:INTC). Nokia will ship variants of its 5G AirScale radio access solutions. This will embed Intel's Atom P5900 processor. So, the 5G radio will "combine compute, connectivity, and acceleration technologies." Because 5G supports billions of devices, the increase in volume and scale will need better technologies to back that demand.Nokia entered a partnership with Marvell (NASDAQ:MRVL) to develop 5G multi-Radio Access Technology (multi-RAT). This will combine Nokia's wireless technology with Marvell's multi-core ARM processor platforms. Nokia's ReefShark will benefit from lower power usage and smaller chip size.Nokia is progressing well in the 5G space. In Feb. 2020, the company completed a 5G core standalone network trial with KDDI, a leading telecoms company in Japan. So Nokia, through its 5G AirGile cloud-native core product, has the know-how to analyze 5G networks in a stand-alone service format.Assuming the following metrics in an earnings power value model, Nokia stock is worth $5.10:Metrics Range Conclusion Adjusted Earnings 952 M - 4.03 B 1.988 B Discount Rate 9.0% - 7.0% 8.00% Fair Value $2.39 - $11.31 $5.10 Data courtesy of Ericsson (ERIC)Source: Shutterstock Just as Nokia reported a successful trial with KDDI, Ericsson (NASDAQ:ERIC) achieved cloud-native CI/CD (Continuous Integration/Continuous Delivery) pipeline delivery for KDDI's standalone 5G Core network.This will support the automatic deployment of new software and functions without disrupting the 5G core network. Ericsson has effectively automated the deployment process by taking out the need for staff involvement.The company further announced the production of its first 5G base station. The factory is located in Lewisville, Texas. And once it is operational later this year, the factory will supply all radio access components for a solution that 5G networks will use.In its fourth quarter, Ericsson management said it had nearly 80 commercial 5G agreements in place, with 24 5G networks already live. Customers are migrating to 5G and will need both operational support systems and cloud infrastructure as a by-product. So overall, gross margins held a steady 38.1%. The company's portfolio will benefit from the good momentum regardless of the current market conditions.Looking ahead, the shift from 4G to 5G is driving capital expenditure growth in the industry. Alongside that upgrade is data growth from users. Plus, the sudden shift in users needing to work remotely due to the COVID-19 lockdown also accelerated the upgrade timetable. * 7 Small-Cap Stocks That Might Not Survive ERIC stock has a fair value of $7.94, according to a quantitative research report by Stock Rover. NXP Semiconductor (NXPI)Source: Lukassek / NXP Semiconductor (NASDAQ:NXPI) beat consensus estimates yet again in the fourth quarter. The company benefited from strong demand in mobile, automotive, and industrial IoT markets. Revenue topped $2.3 billion, $30 million above company guidance.In the industrial IoT sector, NXP posted revenue falling 12% year-on-year due to the U.S./China trade worries. But looking ahead, revenue from industrial IoT will rise by 20%. Mobile will increase in the low double-digit percentage range.To bolster its Wi-Fi product, NXP acquired Marvell's (NASDAQ:MRVL) connectivity business. This will strengthen its automotive infotainment connectivity solution. Its industrial and IoT applications will also benefit from the Marvell acquisition. In the 2021-22 period, NXP expects improved traction for its ultra-band solution. So, with more IoT application use cases, expect a higher revenue range forecast.Management expects modest growth in the 5G space. On the conference call, CEO Rick Clemmer said that the company hasn't "seen a resumption of the 5G growth yet. And it looks like it'll still be a couple of quarters out before we'll see strong growth in 5G deployment. We clearly see that it's coming. Just don't see it in the near term." STMicroelectronics (STM)Source: Michael Vi / STMicroelectronics (NYSE:STM) has lost half its value on the stock market. The company said it will cut production by up to 50% due to the coronavirus outbreak in France. Yet if the global slowdown proves short-lived, STMicro should meet its full-year 2020 outlook. It commented on its conference call that product demand will grow because of trends in "smart mobility, power and energy applications, and IoT and 5G."STMicro set a $1.5 billion capital expenditure plan to support growth in those markets. Its eventual goal is $12 billion in revenue. If history is any indicator, this firm will exceed those targets. Last year, for example, demand in personal electronics such as smartphones and wearables, climbed in the latter half of 2019.This year, 5G infrastructure build-outs are growing. So, ST is in a good position to meet the rising demand in IoT and 5G. And as more smartphone makers refresh the models to the 5G standard, the average selling price increases. ST will also offer such features as wireless charging and Micro Electro Mechanical Systems sensors. * 7 Small-Cap Stocks That Might Not Survive On Wall Street, the average price target on STM stock is $28.98 (per Tipranks). Qualcomm (QCOM)Source: Xixi Fu / Qualcomm (NASDAQ:QCOM) is a Wall Street favorite, with a $94.67 price target. The smartphone chip processor and modem supplier said that demand in China already returned to normal levels. The company is at the forefront of the 4G to 5G transition. In anticipation of the explosive growth ahead, the company is maintaining a healthy level of operating expenditure levels. This will help it keep or improve its structure.In the long-term, investments in the business today will pay off tomorrow. With its radio frequency design wins and high-performance Snapdragon chip, investors should expect Qualcomm's operating margins to increase. The business is so healthy not just in China but overall. The company said on its Q! earnings call that "in terms of inventory on 5G, we're really at the front end. And we have increasing demand from our OEM base. And really, the challenge for us is how do we keep up with increasing demand, because it's an incredible opportunity for us to grow."Investors may forecast revenue growing by around 3% annually in a 10-year discounted cash flow revenue exit model. Also, assume the following metrics:Metrics Range Conclusion Discount Rate 10.0% - 9.0% 9.50% Terminal Revenue Multiple 3.4x - 4.4x 3.9x Fair Value $74.34 - 92.15 $82.92 Data courtesy of finbox.ioDisclosure: the author owns Nokia stock. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post 7 Tech Stocks to Buy For an Interconnected World appeared first on InvestorPlace.

Yahoo! - Sat, 04 Apr 2020 07:55:35 -0400
OPEC+ meeting delayed as Saudi Arabia and Russia row over price collapse

OPEC+ meeting delayed as Saudi Arabia and Russia row over price collapseOPEC and Russia have postponed a meeting planned for Monday until later next week, OPEC sources said on Saturday, as a row intensified between Moscow and Saudi Arabia over who is to blame for plunging oil prices. The meeting's delay came despite pressure from U.S. President Donald Trump for the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to urgently stabilise global oil markets. OPEC+ is working on an unprecedented oil output curb equal to about 10% of world supply, or 10 million barrels per day, in what member states expect to be a global effort that will include the United States.

Yahoo! - Fri, 03 Apr 2020 17:09:28 -0400
Analysts Share Stocks They Would Buy In This Environment: Exxon Mobil, P&G And More

Analysts Share Stocks They Would Buy In This Environment: Exxon Mobil, P&G And MoreOn CNBC's "The Exchange," Jamie Cox of Harris Financial Group and Charles Bobrinskoy of Ariel Investment spoke about stocks they like in the current market environment.Cox said he keeps asking himself when is he going to buy an integrated oil company, if not when there is an oil price war going, combined with a 30% or more demand destruction. He thinks now might be the right time to start buying a little bit of Exxon Mobil Corporation (NYSE: XOM) or Royal Dutch Shell plc ADR Class A (NYSE: RDS-A) and initiate a position in companies that are well capitalized and have plenty of interest coverage.PreMarket Prep Stock Of The Day: Exxon MobilProcter & Gamble Co (NYSE: PG) is a better company to own and you can pick it up on discount relative to Clorox Co (NYSE: CLX), said Cox. He explained that these stocks pay a similar dividend, but Procter & Gamble has much better interest coverage ratio.Bobrinskoy likes Zimmer Biomet Holdings Inc (NYSE: ZBH). He's trying to find companies that are going to be fine because they're going to have pent up demand. People are currently not doing hip replacement surgeries or knee surgeries so its business is going to be down. Those surgeries aren't canceled, they're just postponed so Zimmer is very well positioned in the long term, said Bobrinskoy.See more from Benzinga * Cramer Shares His Thoughts On Procter & Gamble, Virgin Galactic And More(C) 2020 Benzinga does not provide investment advice. All rights reserved.

Yahoo! - Sat, 04 Apr 2020 09:50:02 -0400
'Fast Money' Traders Weigh In On AT&T, Tesla And Twitter

'Fast Money' Traders Weigh In On AT&T, Tesla And TwitterOn CNBC's "Fast Money," Guy Adami said he agrees with Goldman Sachs' upgrade on Twitter Inc (NYSE: TWTR) as the stock should benefit from increased traffic during the crisis. He is concerned about the ad spending, but he thinks that traders who want to play the market can buy some at the current price level.Dan Nathan sees Twitter as a valuable utility for the users, but the company is not growing sales at a rate one might expect for a growth company valued this way. If it drops to high to mid teens, the stock would be amazingly cheap, said Nathan.See Also: Tesla Analysts Dissect 'Surprisingly Strong' Q1 Deliveries DataTim Seymour spoke about AT&T Inc. (NYSE: T). He thinks the stock traded lower Friday as investors listened to the downgrade from MoffettNathanson, which now has a $23 price target for the stock. Seymour explained the company wanted to become more cyclical, but it has done so in the recession and now, investors are concerned about its debt. He has a long position in the name and he added the company now has a lower financing costs.Steve Grasso would be a seller of Tesla Inc (NASDAQ: TSLA) because going forward delivery numbers are going to be disappointed. Nathan is concerned people won't be able to afford Tesla's cars during the recession. He thinks the stock should be trading lower.See more from Benzinga * Cramer Shares His Thoughts On Procter & Gamble, Virgin Galactic And More(C) 2020 Benzinga does not provide investment advice. All rights reserved.

Yahoo! - Fri, 03 Apr 2020 14:31:37 -0400
Tesla stocks surges due to strong vehicle delivery numbers in Q1

Tesla stocks surges due to strong vehicle delivery numbers in Q1Tesla shares are up nearly 17% after the automotive company announced that it delivered roughly 88,000 cars in the first quarter of 2020. Yahoo Finance’s On The Move panel discusses.

Yahoo! - Fri, 03 Apr 2020 13:12:58 -0400
After $50 Billion of Losses, No One Comes to Save the Mortgage Market

After $50 Billion of Losses, No One Comes to Save the Mortgage Market(Bloomberg) -- The market for mortgage-backed securities was in free fall, with fear running rampant and banks seizing collateral.So Tom Barrack, the chairman of real estate investment trust Colony Capital Inc., published an 1,800-word plea for the Federal Reserve to buy bonds backed by homes, cars and other assets and for banks to halt margin calls.That was last Saturday. In the week since, three top investors in the sector have engaged restructuring advisers, two others sold $7 billion of debt at a discount and publicly traded mortgage REITs in the U.S. lost more than $12 billion of market value, bringing total declines this year to at least $50 billion.The carnage shows no signs of abating. Prominent asset managers including Blackstone Group Inc., TPG and Apollo Global Management Inc. have been sucked into the vortex wrought by the coronavirus pandemic, with their associated mortgage REITs losing more than two-thirds of their value on average so far in 2020.The pandemic has crippled commerce across the U.S., putting almost 10 million people out of work in a matter of weeks and sparking fears that huge numbers of businesses and individuals will fail to make rent and mortgage payments. As a result, investors are fleeing from residential and commercial debt that isn’t backstopped by the federal government.Read more: Nobody knows what will happen when the rent comes due on April 1“Nobody wants to buy those securities when the underlying contracts are not performing,” especially when it remains unclear how long the disruption will last, Barrack wrote in his post on Medium.Nobody, that is, except perhaps Starwood Capital Group’s Barry Sternlicht, JPMorgan Chase & Co. and others looking for deals as billions of dollars of debt hit the block.Sternlicht, who manages $60 billion, said in a letter to shareholders last week that his firm is looking to “take advantage of market dislocations” even as shares of his publicly traded REIT have tumbled 61% this year through Thursday.TCW, an asset manager overseeing about $217 billion, is buying selectively. So are family offices, according to people familiar with the transactions. And JPMorgan, the biggest U.S. bank, said Monday it was raising as much as $10 billion to invest in dislocated markets, including credit and real estate.“For buyers in this market, it’s about willingness and ability right now,” said Mark Fontanilla, who owns a market strategy consulting firm that specializes in structured finance. “Things are so uncertain, you need to have deployable, stable capital to be able to hold positions, especially less liquid ones, through the uncertainty.”Why the Mortgage Market Needs Its Fixes Fixed: QuickTakeIn some cases, asset managers’ private funds are bidding on assets being unloaded by their own publicly traded REITs. New Residential Investment Corp., managed by Fortress Investment Group, sold bonds with a face value of $6.1 billion. One of the buyers was an entity also affiliated with Fortress, the company disclosed in a filing Thursday.REITs with too much leverage and not enough liquidity have been the most prolific sellers. Leverage, used to increase returns when times are good, are now amplifying losses. This is typically done through so-called repurchase agreements, or repos, through which borrowers post securities as collateral. When the value of those assets drop, they must post more collateral or cash. When they can’t meet margin calls, banks may liquidate the assets, driving down prices even further.“I don’t think that the leverage amount that people have been using is inappropriate,” said Eric Reilly, a partner in Mayer Brown’s banking and finance group. “In order to get the returns that investors are looking for, whether you are a public REIT or a fund, it’s difficult to invest in high quality assets and meet your return.”In the past month, five mortgage REITs have notified investors that they’ve been unable to meet margin calls and started discussing forbearance agreements with their lenders. Other REITs have canceled, delayed or modified dividends, or liquidated riskier parts of their portfolios. While private funds also use leverage, they often have access to liquidity through capital calls, giving them more flexibility than their publicly traded peers. But they aren’t necessarily immune. Their problems may just be less apparent because of more relaxed disclosure requirements.“There are a lot more mortgage funds and real estate funds than mortgage REITs,” Reilly said. “There’s probably a couple of funds out there in some form of distress for every mortgage REIT you see.”Meanwhile, the market is waiting to see if the Fed sides with Barrack by including non-agency mortgage backed securities in its intervention efforts.For any relief program to work, all parties need to be part of the rescue program, including non-bank lenders, Reilly said.“This is nobody’s fault,” he said. “It came out of the blue, from across the world, and basically punched people in the mouth.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Sat, 04 Apr 2020 10:36:08 -0400
“Starbucks of China” down almost 70% on Thursday on fraud claims

“Starbucks of China” down almost 70% on Thursday on fraud claimsLuckin Coffee (NASDAQ:LK) stock tanked more than 80% (and is down 66% at the time of this writing) after the company revealed an investigation that essentially proved what Muddy Waters alleged months ago. Luckin Coffee admitted to inflating its sales numbers after an internal investigation. Luckin Coffee reveals investigation In a press release filed with […]

Yahoo! - Sat, 04 Apr 2020 11:43:38 -0400
Microsoft Corporation Stock Analysis

Microsoft Corporation Stock AnalysisSummary My top idea is Microsoft Corporation (NASDAQ:MSFT) stock Market capitalization is over 1 trillion US dollars Rating: AAA (S&P and Moody's) Competitors: Apple and Amazon Reasons why MSFT will outplay its competitors and emerge as one of the best investments Strong Fundamentals In 2019, Microsoft Corporation's stock rose by almost 30% with impressive earnings. […]

Yahoo! - Fri, 03 Apr 2020 18:00:00 -0400
Gold Bugs Finally See Their Predictions of Doom Coming True

Gold Bugs Finally See Their Predictions of Doom Coming True(Bloomberg) -- For years, gold bugs were relegated to the fringes of financial markets. Often viewed by mainstream investors as tinfoil-hat conspiracists with basements full of beans and bottled water, their warnings sounded apocalyptic: a coming collapse in financial assets, widespread devaluation of paper money and global disasters that erode civil liberties.Welcome to 2020.As the coronavirus brings economies around the world to a standstill, gold is rivaling Treasuries and the dollar as the best-performing major asset this year. The metal proved its haven status with a 6% rally as almost $16 trillion was wiped off global stock markets and oil plunged.There’s also been a scramble for physical metal as investors in exchange-traded funds build the biggest stockpile in history and dealers say they’re struggling to find gold to sell.How Virus Shows Again Why Fear and Gold Go Together: QuickTake“We’ve been trying to warn people that something like this would happen,” said Jim Rickards, the author of several books that predicted a coming financial reset. Rickards, who spoke from a New England mountain compound, has long recommended holding gold as a precaution for wealth preservation.“I’ve been saying it for years,” he said. “I’m not happy about being right.”There’s echoes of many of the typical gold bug predictions in today’s crisis. Besides the obvious economic and financial-market upheaval, social interaction has become taboo and in some places soldiers are telling people not to leave their homes.Even the so-called paper market for gold is showing cracks and a squeeze last month on New York’s Comex, the largest gold futures exchange, added fuel to another of the prophecies: that when the crisis came, there wouldn’t be enough gold to go around.When a Hot Gold Trade Blew Up, the Rush for 100-Ounce Bars Began“We have written more than 3,000 pages of research about gold and mining stocks in the last 14 years and it is pleasing to see that many of our theories have come true,” said Ronald-Peter Stoeferle, managing partner at Incrementum AG, a Liechtenstein-based investment and asset-management company.“We’re seeing lots of interest because we’ve been pounding the table for gold as a portfolio stabilizer, it’s a defender of your portfolio and gold did its job really perfectly.”No CounterpartyOf course, some of the predictions were always a bit vague. The Armageddon survivalists see gold more as the ultimate haven against generalized risk. As a hard asset, it acts as an inflation hedge. It has deep, liquid markets in which to trade, has kept its value over centuries, and, most importantly, physical metal stored in a vault has no counterparty that can default, not even a government or central bank.“Central banks have officially lost control of their most powerful policy tools,” said Roy Sebag, chief executive officer and founder of Goldmoney Inc., a precious-metal investment firm with $2 billion in assets. “It is against this macroeconomic sea change that gold will thrive as the money par excellence.”Gold rose for a sixth straight quarter in the three months through March and spot prices traded around $1,612 an ounce on Friday. While that’s still well shy of the record $1,921.17 reached in 2011, predictions are mounting that the metal will scale new highs in the coming years.Even those in the mainstream are climbing on board.Analysts at Citigroup see gold climbing to a record above $2,000 an ounce in 2021. Merk Finck chief strategist Robert Greil predicts it will rise to $1,750, and Cesar Perez Ruiz, who manages 236 billion Swiss francs ($243 billion) at Pictet Wealth Management, has been buying metal on dips near $1,500.“Gold might be one of the few things that diversify your portfolio,” said Chief Investment Officer Ruiz. “It’s moved quite fast very recently, so I’m waiting for a pause.”It hasn’t only been one-way traffic for gold. As in the 2008 crisis, prices have fallen during days of acute stress in the broader market as investors faced margin calls and sold liquid assets to raise cash. Still, the declines have been largely short-lived.“Before this is over, gold is going to go up a lot,” commodity investor Jim Rogers said by phone from Singapore. “Whenever people lose confidence in money and in governments, they always buy gold and silver.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Thu, 02 Apr 2020 17:23:49 -0400
Homeowner Alert: Mortgage Rates Are Near a Record Low Again

Homeowner Alert: Mortgage Rates Are Near a Record Low AgainRates have dropped this week and are giving homeowners new opportunities to save.

Yahoo! - Fri, 03 Apr 2020 14:05:14 -0400
3 Cannabis Stocks Set to Thrive Through the Global Shutdown

3 Cannabis Stocks Set to Thrive Through the Global ShutdownDespite the economic shutdown in large parts of North America, all of the initial reads on the cannabis sector have surprisingly been positive. Due to the medical cannabis aspects of the sector, most retail stores have been deemed essential allowing for the stores to remain open.Consumers from the U.S. and Canada have flooded retail stores and online websites to buy up cannabis products due to fears of and economic shutdown and potential store closures. Oddly though, the stocks haven’t generally rebounded despite positive sector trends as 2020 starts.Areas from California and Washington saw sales jump approximately double during the period from March 13 to March 17. Average store revenues were up roughly 100% at more than 1,300 stores using cannabis e-commerce platform Jane Technologies. Several other metrics saw massive product demand during mid-March.All of the news isn’t bullish as Massachusetts closed recreational cannabis stores, Nevada stores are seeing declining sales due to a lack of tourists and Canopy Growth closed 23 stores in Canada. In addition, sales are already seeing a return to normal levels as customers pull back from aggressive buying once realizing the stores will remain open even during lockdown.Several cannabis companies have recently reported solid quarterly reports that should only benefit from increased sales during the coronavirus outbreak along with company specific catalysts in 2020.We’ve delved into these three companies with solid earnings and positive outlooks for a strong March quarter and the full-year 2020. Furthermore, we’ve looked at the stocks through the lens of TipRanks' Stock Comparison tool to find out what makes them special. Let’s dive in.Curaleaf (CURLF)The largest under the radar cannabis play remains Curaleaf Holdings. The company reported pro-forma Q4 revenues of over $131.7 million to lead the cannabis space.The amount far tops the C$123.8 million generated by Canopy Growth while Curaleaf is EBITDA positive and produces far better bottom line results than the consistent C$90 million EBITDA losses of Canopy Growth.The amazing part is the tepid reaction to results due to the indication that the recent Select acquisition was underperforming. The company only generated a minimal boost from the Q3 pro-forma revenues of $129.1 million with a suggestion that strong Curaleaf and Grassroots results were offset by Select only producing $5 million in monthly revenues. The brand was generating $35 million in quarterly revenues when the merger was announced and the competitive California space along with the vape health issues really hurt revenues.The stock is only at $3.50 after hitting around $7.50 earlier this year and the company is positioned for a boost in sales from Illinois due to Grassroots and a rebound in Select sales from vapes and expanded distribution. In addition, Curaleaf is seeing a boost from the initial rush of sales due to stay-at-home order for the virus outbreak. The stock only has a $1.7 billion market valuation with sales still on pace to reach $1 billion this year providing a great entry point.Analysts are striking a bullish tone on Curaleaf stock, as well. 6 Buys and 1 Hold assigned in the last three months add up to a Strong Buy analyst consensus. In addition, the $9.68 average price target puts the potential twelve-month gain at over 170%. (See Curaleaf stock analysis on TipRanks)Green Thumb Industries (GTBIF)Green Thumb Industries is a leading player in several states seeing ramping growth due to legalization of recreational cannabis in Illinois and medical cannabis in Pennsylvania. The company reported Q4 revenues of $75.8 million and guided to 20% revenue growth in Q1 as most stores offer medical cannabis are considered essential by states and remain open.While Curaleaf didn’t guide for the quarter, Green Thumb appears more confident the virus outbreak isn’t going to impact sales, especially considering the quarter was nearly over when the company reported Q4 results. Green Thumb generated Q4 adjusted operating EBITDA of $14.4 million in the quarter as the company continues to maintain efficient operations.Similar to other cannabis stocks, Green Thumb is down about 50% from highs just a few months ago. The stock had a 52-week high above $16 and now trades down around $5.5 despite these strong quarterly results.With 215 million shares outstanding as of the start of 2020, Green Thumb has a market cap of $1.2 billion. The company appears set to generate 2020 revenues of $450 million and up to $680 million in 2021. The stock becomes more of a bargain as investors start viewing the 2021 revenues as legitimate with the strong recreational sales in Illinois and the potential growth in other states.Encouragingly for investors, 6 out of 7 analysts have published a "buy" rating on the stock, according to TipRanks. Their $14.63 average price target translates into 158% upside potential from the current share price. (See Green Thumb stock analysis on TipRanks)MediPharm Labs (MEDIF)Another company still in expansion mode is MediPharm Labs. The Canadian cannabis extraction company was built for profitable growth and the company remains on path to expand internationally in 2020 while other Canadian companies reign in global ambitions.For Q4, revenues were up over 200% from last Q4 to C$32.4 million, but revenues did decline from C$43.4 million in the prior quarter. Revenues and profits did take a hit as the Canadian market was oversupplied with wholesale bulk oil, but MediPharm Labs still generated gross profit of C$10.0 million and EBITDA of C$2.7 million.The company completed a year where revenues reached C$129.3 million and adjusted EBITDA was an impressive C$24.7 million. MediPharm Labs is positioned for growth in 2020 as Cannabis 2.0 products rollout in Canada and the company expands internationally having just obtained a GMP certification by the Therapeutic Goods Administration in Australia.The stock is down to near $1 despite these positive results. With a market cap of only $155 million, MediPharm Labs is cheap in comparison to expectations for revenue growing to nearly $120 million or C$170 million this year and up to $170 million in 2021. As more retail stores open in Canada and Cannabis 2.0 product sales expand, the cannabis extraction company will see revenues rebound making the stock a bargain down here near $1.Indeed, the stock boasts a confident Strong Buy consensus from the Street. TipRanks shows that the average analyst price target stands at $4.37, which implies over 300% upside over the next 12 months. (See MediPharm stock analysis on TipRanks)To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Yahoo! - Fri, 03 Apr 2020 19:53:11 -0400
Some WeWork Staff Planned Their Lives Around a Stock Deal That Just Collapsed

Some WeWork Staff Planned Their Lives Around a Stock Deal That Just Collapsed(Bloomberg) -- Teddy Kramer worked at WeWork from 2013 to 2015. When he left the company, he had been a director of new market development, helping the co-working startup open new offices in different regions. He’d put in the time and been granted shares in the company. At first, he thought he might be able to sell them after WeWork’s much-anticipated initial public offering in September, but the IPO attempt flopped.As a backup option, Kramer and other current and ex-WeWork staff were told they would be able to sell their shares to SoftBank Group Corp. in a deal set to take place on Wednesday. Kramer was expecting to sell between $50,000 and $100,000, he said, and he was depending on the cash to cover expenses while he started his new business, a co-working space in San Francisco called Neon. On Thursday, though, SoftBank sent a letter to all WeWork shareholders: The deal was off. The Japanese conglomerate, the largest investor in WeWork parent We Co., was pulling out of the agreement to purchase billions in WeWork stock from existing shareholders. The abrupt about-face has impacted many people like Kramer—rank-and-file employees who had been banking on the payout from SoftBank, some of whom are now left in a lurch as the coronavirus pandemic slams the global economy. They’d already faced the disappointment of losing the chance to sell after the promised IPO and seeing their highly valued WeWork shares lose almost all their worth in the fallout. SoftBank’s decision to pull out underlines the precarious nature of owning shares in a startup, even when the company was, at one point, the most valuable startup in the U.S.Less than a year ago, WeWork was on pace for an IPO that would add to the rolls of tech millionaires. New York was bracing for an infusion of wealth akin to the bonanza that beset Silicon Valley overnight when Facebook Inc. went public in 2012. An IPO or multibillion-dollar stock transaction like the one SoftBank agreed to with WeWork provides the seed money for people to buy homes and start businesses. For WeWork, those opportunities evaporated with little forewarning, coming as a shock to some shareholders who had already begun laying the foundation for their new lives. SoftBank cited several reasons for pulling out of the deal, including that WeWork was currently facing government inquiries from U.S. attorneys, the Securities and Exchange Commission, attorneys general in California and New York and the Manhattan district attorney. Those ongoing inquiries, the company said, meant that the conditions of the original deal had not been met. Representatives for SoftBank and WeWork declined to comment.  In the letter sent early Thursday confirming the deal was off, SoftBank framed the called-off stock sale as something that would have mainly benefited WeWork’s ousted chief executive officer, Adam Neumann, and WeWork’s investors. The bulk of the proceeds of the $3 billion stock sale was set to go to just five investors, including Neumann and venture capital firm Benchmark. "Adam Neumann, his family, and certain large institutional stockholders, such as Benchmark Capital, were the parties who stood to benefit most from the tender offer," SoftBank said in a statement about the decision. "Together, Mr. Neumann’s and Benchmark’s equity constitute more than half of the stock tendered in the offering. In contrast, current WeWork employees tendered less than 10% of the total."But for employees, a tenth of $3 billion is still a lot of money. Add in additional workers who have recently left the company, and that figure could climb even higher. Some current and former staff at WeWork have taken issue with SoftBank’s statements about its decision to pull out, arguing that the money they stood to receive from the sale would make more of a difference in their lives than to Neumann and others.“They’re trying to leverage the negative press that has followed Adam since the IPO by saying ‘This is just a billionaire making more money,’” Kramer said.Kramer, 36, said he’s fairly lucky. He hadn’t signed a lease yet for his new company, and doesn’t have employees that he would have to cut. But without the money from the stock sale, his business dream is on indefinite hold. In the meantime, he’s tutoring kids in reading comprehension over Zoom and looking for a different job.Other people were depending on the SoftBank sale to help defray costs they’d incurred when WeWork’s stock seemed much more valuable. One current WeWork employee, who also asked not to be named because of a non-disclosure agreement, said they bought a house last summer thinking they'd be able to pay for it after selling shares in the IPO. When that didn't happen, they had still been hoping cash from this stock sale could help offset some of those costs.A former employee, who asked not to be named because they signed a non-disclosure agreement, said that once the company’s IPO prospectus was made public in August, they figured that meant the IPO was likely to take place. Right after that, this person took out a loan in order to buy the shares they had access to. The idea was to buy early to try to avoid short-term capital gains tax.Over the next month, though, as WeWork’s bankers struggled to get institutional investors to commit to buying into WeWork’s IPO, the company’s prospects started to look shakier. The former employee said that WeWork’s then chief financial officer, Artie Minson, repeatedly tried to reassure workers at all-hands meetings. Minson told them the company had strong revenue, that its numbers had never been better, and that the company would go public by the end of the year.But quickly, WeWork withdrew its IPO and turned to SoftBank for bailout funding to avoid going bankrupt. Employees were offered the chance to reprice their shares at around $4 each. The former employee, though, still had a tax bill based on the value of the shares at their time of purchase, around $50 apiece. That left this person with a six-figure tax bill—and no way to sell the shares in order to pay it off. The former employee had been hoping that they’d be able to sell enough shares to SoftBank this week to pay off the loan taken out to buy the shares in the first place—not the profit this person had envisioned, but just enough to break even.Some employees might be able to find some relief, said Deep Gujral, a principal who works with venture-backed companies at the professional services firm Withum. Gujral recommended trying to negotiate with creditors: "Given the current climate, and Covid-19, they might be more receptive" to relaxing payment requirements, he said. "If you have a mortgage, and you go to the lender, they might be flexible." Gujral also expects to see class-action lawsuits that include current and former WeWork employees as a result of the withdrawn tender offer. After energy-services company Enron filed for bankruptcy in 2001, employees were able to use federal laws around benefit plans and stock to their advantage in court, and the same could apply here, he said.But hypothetical lawsuits are of little comfort to most WeWork shareholders. “The rest of the world needs to know that there are 500 to 1,000 early employees who are paying the price for this,” Kramer said. “All we ever did was work hard and make this company an $8 billion company. This was our moment. SoftBank came in and made a deal: ‘We're going to take care of you.’ And now all of a sudden it's, ‘Eh, we're not doing that.’”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Sat, 04 Apr 2020 11:43:01 -0400
Mexican president calls on Russia, Saudi Arabia to end oil price war

Mexican president calls on Russia, Saudi Arabia to end oil price warMexican President Andres Manuel Lopez Obrador on Saturday called on Russia and Saudi Arabia to reach a deal soon and end their oil price war to avoid deepening the oil price crisis. Mexico and others have seen the prices for their crude exports battered in recent weeks after the fallout from the new coronavirus eroded demand and major oil producers could not agree on how to respond. "How can Russia and Saudi Arabia not come to an agreement in order to stop oil price declines that are further deepening the crisis?" Lopez Obrador asked.

Yahoo! - Sat, 04 Apr 2020 08:27:39 -0400
Why You Might Be Interested In General Dynamics Corporation (NYSE:GD) For Its Upcoming Dividend

Why You Might Be Interested In General Dynamics Corporation (NYSE:GD) For Its Upcoming DividendGeneral Dynamics Corporation (NYSE:GD) stock is about to trade ex-dividend in 3 days time. This means that investors...

Yahoo! - Fri, 03 Apr 2020 08:10:32 -0400
Jim Cramer Gives His Opinion On AbbVie, Domino's Pizza And More

Jim Cramer Gives His Opinion On AbbVie, Domino's Pizza And MoreJim Cramer said on CNBC's "Mad Money Lightning Round" AbbVie Inc (NYSE: ABBV) traded lower on COVID-19, but he likes its dividend yield and it remains a great stock. It's a big position for his charitable trust fund.Clarivate Analytics PLC (NYSE: CCC) is a research company, but Cramer hadn't thought of it as a COVID-19 play. He needs to do more research to see if it is worth buying on that.Cramer is a buyer of Domino's Pizza, Inc. (NYSE: DPZ). He believes the company has a great delivery, which makes it a terrific investment.There is too much supply in the oil and gas pipelines sector, thinks Cramer. He doesn't like pipelines and natural gas anymore and he doesn't like Kinder Morgan Inc (NYSE: KMI).See more from Benzinga * RNC Genter Capital CEO Likes Tech, Health Care, Financials In Volatile Market(C) 2020 Benzinga does not provide investment advice. All rights reserved.

Yahoo! - Fri, 03 Apr 2020 13:48:37 -0400
Here's the difference between jobless claims and the unemployment rate

Here's the difference between jobless claims and the unemployment rate	In the latest edition of Yahoo U, Yahoo Finance’s Brian Cheung joins the On The Move to break down the difference between jobless claims and the unemployment rate.

Yahoo! - Sat, 04 Apr 2020 09:46:22 -0400
Mike Khouw's Moderna Options Trade

Mike Khouw's Moderna Options TradeOn CNBC's "Options Action", Mike Khouw shared with the viewers his options trading idea for Moderna Inc (NASDAQ: MRNA), the company that is currently leading the race for a COVID-19 vaccine.The stock is trading close to its all-time high and the options premiums in the name are elevated, so Khouw wants to make a bullish bet by selling the May $30/$28 put spread for a credit of 80 cents. If the stock stays above $30 at the May expiration, Khouw is going to collect the premium. The trade starts to lose money below $29.20 and in case of a pullback to $28 or lower it would reach its maximal loss of $1.20.Extreme market volatility has pulled the rug out from under a lot of traders. Attend the virtual Benzinga Options Boot Camp to learn to trade options in a volatile market and start going after solid trades with absolute confidence. Register for FREE at before space fills up!See more from Benzinga * Tony Zhang's Nike Trade * Analysts Share Stocks They Would Buy In This Environment: Exxon Mobil, P&G And More * PIMCO CIO Says To Buy What The Fed Is Buying(C) 2020 Benzinga does not provide investment advice. All rights reserved.

Yahoo! - Fri, 03 Apr 2020 19:00:00 -0400
The OPEC Meeting Could Send Oil Prices Crashing Below $10

Yahoo! - Sat, 04 Apr 2020 07:18:00 -0400
Exclusive: Amazon in contact with coronavirus test makers for potential screenings on employees

Exclusive: Amazon in contact with coronavirus test makers for potential screenings on employeesThe chief executives of Abbott Laboratories and Thermo Fisher Scientific Inc have told Amazon they would like to work with the e-commerce company, though the U.S. government is taking up all of their testing capacity at present, the notes said. The nature of Amazon's conversations with the test makers and the exact assistance they might offer were unclear. The document separately indicated Amazon is looking into the ability to screen more than one person at a time for the virus, and it also wants to partner with a medical organization in its testing efforts.

Yahoo! - Fri, 03 Apr 2020 18:33:38 -0400
Luckin Coffee Scandal Deals New Blow to Corporate China

Luckin Coffee Scandal Deals New Blow to Corporate China(Bloomberg) -- The fallout from Luckin Coffee Inc.’s accounting scandal is spreading far beyond the high-flying Starbucks challenger, with renewed concerns about Chinese corporate governance dragging down stocks across industries and threatening to bring a halt to the country’s overseas initial public offerings.The Xiamen-based coffee chain said on Thursday that its chief operating officer and some underlings may have fabricated billions of yuan in sales, upending what was supposed to be one of China’s best growth stories. Luckin Coffee shares plunged as much as 81% in U.S. trading and CAR Inc., a rental company founded by Luckin Coffee’s chairman, sank 54% in Hong Kong. Popular short-selling targets including Anta Sports Products Ltd. also slumped.Lone Pine Capital, one of Luckin Coffee’s top holders, no longer reports a stake in the company, according to a filing. It held a 10.7% stake as of Jan. 9, according to data compiled by Bloomberg.The revelations revived doubts about financial reporting that have for years dogged Chinese stocks listed in the U.S. and Hong Kong, two exchanges frequently picked by company founders to raise new funds. While China recently changed regulations to punish instances of financial fraud onshore, the penalties remain negligible. Just last year, one of China’s largest listed drug makers said it overstated cash holdings by more than $4.3 billion.“After the Luckin incident, investors will be more careful when investing in Chinese companies that have a short founding history and rely on huge leverage to expand,” said Jackson Wong, Hong Kong-based asset management director for Amber Hill Capital Ltd.The news is likely to put at least a temporary freeze on new U.S. listings by Chinese companies, according to four investment bankers who asked not to be identified because they aren’t authorized to speak to media. One of the bankers said U.S. investor appetite for Chinese shares already had waned amid a string of disappointing deals and heightened geopolitical tensions between Washington and Beijing.Those concerns come on top of a general flight from risk because of the coronavirus pandemic, which has caused IPO volumes globally to plunge in recent weeks.“It will inevitably affect the investors’ confidence and market momentum on other U.S.-listed China stocks,” said Steven Leung, executive director at UOB Kay Hian in Hong Kong. “It may even affect the Chinese companies’ U.S. IPO pipeline because investors would start to question their accountability.”Read more: Global Banks, Wary of Some China U.S. IPOs, Walk Away From DealsLouis Tse, Hong Kong-based managing director at VC Asset Management Ltd., disagreed, saying all IPOs have to follow the same procedures and meet the same regulatory requirements.“I don’t think this will tarnish the names of incoming companies in Nasdaq,” he said. “Psychologically it would have an impact, but it’s not necessarily on a Chinese company.”Outside the Luckin Coffee corporate family, the sell-off on Friday hit companies previously called out by speculators for their financial reporting -- including Anta Sports Products Ltd., Xtep International Holdings Ltd. and 361 Degrees International Ltd. China International Capital Corp., one of the lead managers of Luckin Coffee’s IPO last year, slid as much as 5.4% in Hong Kong.Luckin Coffee suspended Chief Operating Officer Jian Liu and others while its board investigates, and it said investors shouldn’t rely on previous financial statements for the nine months ended Sept. 30. The transactions in question occurred last year and totaled about 2.2 billion yuan ($310 million), according to its filing.If true, the fabricated sales figure could represent a significant portion of the company’s total revenue. Luckin, which has only reported financial data for the second and third quarter of last year after its May public offering, was seen reporting 5.15 billion yuan of revenue for the full year, according to the average of estimates compiled by Bloomberg.“Certain costs and expenses were also substantially inflated by fabricated transactions during this period,” Luckin said, adding that the board hasn’t verified the fabricated sales figures.Thursday’s share decline erased what had been a 54% gain since the company went public last year.The coffee chain, founded in 2017, operated about 4,500 stores by the end of 2019 in China. Chairman Lu Zhengyao and Chief Executive Officer Qian Zhiya employed a strategy they used with CAR Inc. more than a decade ago: burning money from investors to quickly grab market share from rivals. That strategy has been successful in winning over investors.Luckin Coffee planned to reach 10,000 locations by the end of next year in a market valued at $5.8 billion. Coffee consumption is only in its initial stages in China, and Luckin Coffee was trying to overtake Starbucks by opening more stores in two years than the industry giant has in two decades. Luckin pulled in Chinese consumers by offering generous discounts.Trouble emerged earlier this year, however. The stock plunged after Muddy Waters Capital tweeted Jan. 31 that it had a short position after receiving what it called a “credible,” unattributed 89-page report that alleged accounting issues with the chain and a broken business model. Luckin Coffee denied the allegations.The company raised $865 million from a share sale and a convertible bond offering in January, according to people with knowledge of the matter. It also raised $645 million in its U.S. IPO.“Luckin denied short sellers’ reports earlier, and then it admitted wrongdoing,” said Kenny Wen, a Hong Kong-based wealth management strategist at Everbright Sun Hung Kai Co. “Lots of lawsuits will emerge.”(Updates with holding data in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Sat, 04 Apr 2020 14:12:44 -0400
N.Y. Has Most Deaths in a Day; Italy Has Fewer: Virus Update

N.Y. Has Most Deaths in a Day; Italy Has Fewer: Virus Update(Bloomberg) -- New York State reported the most deaths in a single day while Italy, the nation with the most fatalities in the world, had the fewest since March 26. Spain plans to extend its lockdown.U.S. deaths rose to more than 7,500 and the global tally exceeds 62,000. At least a half-dozen cruise ships remain at sea with passengers and crew as companies navigate long trips and struggle to find ports willing to let them dock. The big question remains: When, and how, will this end?Key Developments:Global cases top 1.1 million; deaths exceed 62,000: Johns HopkinsBread lines are forming in Mar-a-Lago’s shadowThe virus is destroying ed jobs around the worldLandlords in peril as retailers withhold rentCruise ships, linked to the early spread, are still sailingThe maker of Purell gets tariff exclusionsNew York’s Deadliest Day (2 p.m. NY)New York, the worst-hit U.S. state, recorded the biggest daily death toll yet, adding 630 fatalities for a total of 3,565, Governor Andrew Cuomo said. One thousand ventilators are due to arrive from China on Saturday. “This is a big deal and it’s going to make a significant difference for us,” Cuomo said. Oregon donated another 140. “We’re not at the apex,” Cuomo told reporters. New York City’s total rose to 63,306 cases and 2,624 deaths.Read the full story here.Trudeau Plans Trump Call Amid Spat (1 p.m. NY)Canadian Prime Minister Justin Trudeau said he will speak to Donald Trump soon as the U.S. president escalates a battle with allies and 3M Co. over exports of medical equipment and N95 masks. Trudeau said he wasn’t looking to retaliate or limit exports to the U.S. but will note that Canada also sends key equipment across the border.“In terms of gloves and other types of equipment and test kits, the fact is we’ve supplied that equipment to the United States,” Trudeau said at a news conference. It would hurt both countries to interrupt those supplies, Trudeau said.Read story here.Italy’s Daily Deaths Lowest Since March 26 (1:10 p.m. NY)Italy reported 681 coronavirus deaths on Saturday, including a police officer in Premier Giuseppe Conte’s security team. Authorities warned that a return to normalcy remains distant. The daily toll was the lowest since March 26 and fell from 766 on Friday, according to civil protection data. There were 4,805 new cases, an increase from 4,585 a day earlier.While efforts to contain the virus have started bearing fruit, “It’s way too early to think the battle is won,” according to emergency response czar Domenico Arcuri.Read the full story hereDubai Extends Restrictions to 24 Hours (1:05 p.m. NY)Dubai imposed further restrictions on the movement of people and halted metro services as the Middle East’s business hub seeks to limit the spread of the coronavirus.A program to clear the streets will be extended to 24 hours for two weeks from Saturday, Dubai’s media office said by tweet. Supermarkets, pharmacies and food delivery services will operate, it said. Violators could face legal action, it said.Dubai will suspend metro and tram services from Sunday until further notice, Gulf News reported earlier. The Gulf nation has 1,505 cases so far, with 241 added on Saturday.U.K. Has ‘Reasons to Be Hopeful’ (12:30 p.m. NY)The measures put in place by the U.K. to fight the virus are providing “reasons to be hopeful,” NHS England Medical Director Stephen Powis said at a press briefing. Existing lockdown procedures will be reviewed next weekend, as the government previously announced, and financial assistance to help people and companies are constantly under review, Cabinet Office Minister Michael Gove said.Greece Extends Lockdown (12:30 p.m. NY)Greece is extending its national lockdown, with restrictions on movement, until early April 27, Deputy Citizen Protection Minister Nikos Chardalias said. The country introduced a total lockdown on March 22 after moving quickly to put in place restrictions following the first confirmed case on Feb. 26. Greece so far has 1,673 cases and 68 deaths.A Quarter of French Workers on Benefits (11:30 a.m. NY)French Labor Minister Muriel Penicaud said on BFM TV that 5 million workers, about a quarter of the nation’s people on payrolls, have been granted temporary unemployment benefits, a system put in place to help companies reduce operations without laying off staff.NYC Seeks U.S. Doctors, Nurses (11 a.m. NY)Mayor Bill de Blasio repeated calls for a national system to help move doctors and nurses from other states to areas with high need, saying the weeks ahead will be New York City’s “the toughest time.”“This is going to be a reality where you are going to have many cities and states simultaneously in crisis, needing health care professionals, needing ventilators,” de Blasio said on MSNBC, adding that the thinning ranks of health care workers was the city’s biggest challenge.The city on Friday sent an emergency mobile alert pleading for licensed health-care workers to volunteer at its hospitals. The mayor said the city needs 45,000 more medical personnel through April and May. “We need as many health workers as possible right here, right now,” he said.Egypt National Projects Postponed (11:15 a.m. NY)Egypt delayed the start of large national projects including the Grand Egyptian Museum and Museum of Egyptian Civilization, and postponed to 2021 moving the country’s administrative capital city due to the pandemic.Poland Weighs Easter Restrictions (10 a.m. NY)Poland is considering further restrictions ahead of the Easter holiday to keep the coronavirus from spreading via traditional family visits, Health Minister Lukasz Szumowski said.Poles have been under a lockdown for three weeks. While the government previously predicted a peak in the outbreak by mid-April, crediting its early restrictions, Szumowski said it’s now expected to keep growing over the coming weeks.Singapore Has Another 75 Cases (9:55 a.m. NY)Singapore’s Ministry of Health confirmed an additional 75 cases of Covid-19 infection, of which six are imported and 69 are local cases who have no recent travel history abroad.Spain Plans to Extend Lockdown (9:14 a.m. NY)Spanish Prime Minister Pedro Sanchez announced plans to extend the country’s lockdown by two weeks until April 25. “I understand it’s difficult to extend the effort and sacrifice two more weeks,” Sanchez said in a televised speech. “These are very difficult days for everyone.” A longer lockdown would be subject to cabinet and legislative approval.U.K. Deaths Increase (9:02 a.m. NY)The U.K. reported its deadliest day yet, with an increase of 708 coronavirus deaths, bringing the total to 4,313. According to the Department of Health and Social Care, 41,903 people have tested positive for the virus.Keir Starmer, newly elected as leader of Britain’s opposition Labour Party, said he would have the “courage” to back Prime Minister Boris Johnson where necessary in the national interest to defeat the coronavirus pandemic, while holding him accountable for mistakes.Hungary Funds Crisis Measures (7 a.m. NY)Hungary’s government announced cuts to political party finances and pledged tax increases for banks and retail chains as part of efforts to fund crisis measures. The steps are the latest in contentious measure that have seen Prime Minister Viktor Orban assume powers to rule by decree indefinitely.The cabinet will announce a major economic policy plan amounting to 18-22% of GDP on Tuesday, Gergely Gulyas, the minister in charge of the premier’s office said Saturday. The central bank will also announce measures of its own that day, he said.Herd Immunity Could Take Years (6:39 a.m. NY)Herd immunity against the coronavirus may take years to develop, Jaap Goudsmit, adjunct professor of epidemiology and infectious diseases at Harvard, said in an interview with Dutch daily De Telegraaf.The number of deaths in the Netherlands rose by 164, or 11%, to 1,651, according to a daily update from the RIVM National Institute for Public Health and the Environment. The tally of confirmed virus cases increased by 6% to 16,627, slightly below the growth rate seen in the beginning of the week. The amount of people hospitalized with the virus rose by 336 to 6,622.Spain Cases Pass Italy (5:50 p.m. HK)A slower pace of fatalities and new cases though is offering hope that Spain’s outbreak may be edging toward a peak.Spain said the number of confirmed cases increased to 124,736, from 117,710 a day earlier, according to Health Ministry data. In Italy, total cases stood at 119,827. In what could be a sign of hope, the number of new deaths in Spain declined for a second day, with an additional 809 fatalities in the past 24 hours for a total of 11,744.Swedish Deaths Seen in Thousands (5:48 p.m. HK)Sweden must expect to count its dead from the coronavirus in the “thousands,” Prime Minister Stefan Lofven said in an interview in Dagens Nyheter. The biggest Nordic economy, which has opted for less restrictive measures than many countries in the fight against the pandemic, has had more than 330 deaths after confirmed cases topped 6,000 this week. Lofven also said the country will need to contend with the pandemic and its economic impact for “months, not weeks.”Sweden’s government is preparing to seek extraordinary powers, allowing it to bypass Parliament for certain regulations, Expressen reported late Friday. The proposal, which has been sent to opposition lawmakers, suggests the coalition led by the Social Democrats might be planning to tighten its response to the pandemic.Russia Following ‘Optimistic Scenario’ (5:30 p.m. HK)The outbreak in Russia so far is following the “optimistic scenario, in large part because in the previous two months of contact with this virus, Russia took all the necessary measures,” Anna Popova, the country’s top public-health official, told state television.The government reported the second straight day of declines in new cases on Saturday. The latest figures showed 582 additional infections in the last 24 hours, bringing the total to 4,731, with 43 deaths.France Extends Tax Delay (4:05 p.m. HK)France will allow companies to postpone their tax and social security payments again for the month of April, Budget Minister Gerald Darmanin said in an interview with Ouest France newspaper. The government will decide later whether those taxes will eventually be canceled entirely, he said. On Twitter, Darmanin said 450,000 small businesses have applied for a 1,500-euro ($1,620) payment from the government’s “solidarity fund.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Sat, 04 Apr 2020 09:38:48 -0400
Interested In Verizon Communications Inc. (NYSE:VZ)’s Upcoming 1.1% Dividend? You Have 4 Days Left

Interested In Verizon Communications Inc. (NYSE:VZ)’s Upcoming 1.1% Dividend? You Have 4 Days LeftVerizon Communications Inc. (NYSE:VZ) stock is about to trade ex-dividend in 4 days time. You will need to purchase...

Yahoo! - Fri, 03 Apr 2020 12:19:43 -0400
Disney announces plans to furlough non-union theme park employees

Disney announces plans to furlough non-union theme park employeesDue to the COVID-19 pandemic, Disney is set to furlough non-union park employees beginning April 19. Yahoo Finance’s Dan Robert joins On The Move to break down the latest developments.

Yahoo! - Fri, 03 Apr 2020 07:00:52 -0400
They Rented Their Cars Out Online. Then Things Fell Apart

They Rented Their Cars Out Online. Then Things Fell Apart(Bloomberg) -- Los Angeles resident Matt Hauer has been renting out his Toyota Corolla to strangers since last May using the popular car-sharing app Getaround Inc. Occasionally his renters got parking tickets or left messes, but he was always satisfied with how Getaround addressed the issues. Then last month, his front bumper partly fell off and began dragging—which he said his mechanic assessed as the result of a renter’s fender-bender. But this time, Hauer’s attempts to get Getaround pay the $1,200 bill degenerated into a string of unanswered emails and long stretches of waiting on hold. His last interaction with the company was a phone call last week. “They told me they’d call me back in 10 minutes,” he said. “I have yet to hear back.”The economic crisis triggered by the Covid-19 pandemic is hitting startups hard. More than 7,000 employees at young tech companies have lost their jobs since March 11, according to the website, which compiles public reporting. The so-called sharing economy in particular has been hobbled by the reaction to the pandemic. On March 20, Bloomberg reported that Getaround was actively looking to sell itself and could seek bankruptcy protection if it couldn’t secure a deal. It cut jobs in late March.“Like most startups, we are often in discussions with potential investors and strategic partners, some of whom may also be potential acquirers,” a Getaround representative said in a statement. “With the amount of uncertainty related to Covid-19—we are continuing to model scenarios for the business as we often do throughout the year. We are not actively seeking bankruptcy protection.”Getaround’s main competitor, Turo Inc., said this week it had also reduced its staff by 30%. A Turo spokesman said it was in a “great cash position to weather this storm.”In interviews with Bloomberg, six car owners said they’ve had increasing trouble in recent months getting Getaround to pay for costs related to rentals. In two cases, car owners said Getaround had agreed to pay repair shops directly, but that mechanics wouldn’t release their cars for days because the money didn’t come through even after Getaround assured them it had been taken care of. In another incident, a user said the company has yet to send her the money renters paid to drive her car.Getaround, most recently valued by investors at well over $1 billion, had been having trouble before the pandemic. Starting late last year, there were noticeable changes in the startup’s responsiveness and willingness to pay for rental-related costs, the car owners said. Like Hauer, they said the shift was particularly stark given Getaround’s reasonable track record before then. In January, the company announced a round of job cuts, which it attributed to being “pressure tested due to rapid growth.” “We acknowledge that there is still work to be done to achieve our goals and we are working directly with a small group of owners who have experienced delays in the recent past in having their claims resolved,” a Getaround spokeswoman said in an email. She said the company had brought on new employees and managers to its claims team. Getaround said it rarely pays mechanics directly for repairs, which may have led to delays in those cases where it did so, and that it is unaware of any cases of car owners not receiving rental income. But frustrated car owners began to worry that the issues they’ve been experiencing reflected deeper problems at the company. One Los Angeles resident who began renting out two cars on Getaround in early 2019 said she had been so worn down by the difficulties in recouping costs for parking tickets and cleaning costs related to renters smoking that she had just paid for some of them.This person, who asked not to be named because she works in entertainment and doesn’t want a dispute with a car-sharing company showing up when people search for her on Google, said she’s now concerned about paying her leases without the $900 in monthly car-sharing income she had been making. “Honestly I feel so bad for whoever the founder of the company is,” she said. "At the same time, if they do go out of business, I can’t afford to lose that money.” Andie Kantor, a librarian who lives in Hawthorne, California, is just the type of car-owner you might expect to see in a Getaround ad. A single mother, Kantor saw the platform as an appealing way to make extra income. She purchased a Prius last year specifically to rent on Getaround, using the money to cover both its monthly costs and those of her primary vehicle. “My finances are tied up with this car,” she said. In February, a Getaround renter got into an accident that left the Prius seriously damaged. It took Kantor more than a week to get Getaround to arrange for a tow truck to take the car to a service shop, she said. Then, when she went to pick it up, the mechanic refused to release it, saying that Getaround hadn’t yet paid him, and still owed him money for a previous job. It took another 10 days of haggling, Kantor said, to get the company to pay. In total, she lost a month of rental income and now can’t rent out the car at all because of the pandemic. Hauer, the man whose bumper became detatched, has temporarily removed his car from the platform because he doesn’t think it’s safe to drive. Both he and Kantor said they’re considering selling their vehicles. “It all depends on the virus and how this works out,” Kantor said. “I don’t even know how to sell it at this point, because no one’s open.” For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Sat, 04 Apr 2020 07:09:31 -0400
Russia Can Reduce Its Oil Output by 10% if the U.S. Joins Cuts

Russia Can Reduce Its Oil Output by 10% if the U.S. Joins Cuts(Bloomberg) -- Russia would target a 1 million barrel-a-day cut in any new deal with other key oil producers, on condition the U.S. joins cuts, according to four people familiar with the sentiment in the industry.The country’s President Vladimir Putin, who said that a reduction in global oil production of about 10 million barrels a days is possible and the nation is ready to participate in this “on a partnership” basis, won’t agree for Russia to take more than one-tenth of the global cuts, according to one of the people, who spoke on condition of anonymity because the matter isn’t yet public.The idea to decrease global production by 10 million barrels a day, in response to the shrinking demand amid the coronavirus outbreak, was initially announced by the U.S. President Donald Trump earlier this week and then echoed by Putin at the meeting with Russian biggest oil producers and government officials.The ministry’s press service did not respond to a request for a comment.Russia’s cuts of roughly 1 million barrels per day would represent some 10% of the nation’s daily average output that reached 11.294 million barrels in March. The wider coalition of oil producers may demand more, in which case Russia may consider a cut of 1.5 million barrels per day, though the Kremlin may not like such a scenario, the other person said.The OPEC+ meeting to try to end the oil price war is unlikely to go ahead on Monday as previously expected, as Riyadh and Moscow engaged on a war of words about who’s to blame for the collapse in oil prices.The OPEC+ alliance needs more time for negotiations, a delegate familiar with the matter said, noting the meeting may still happen a few days later.Yet any potential deal is already at risk following Trump’s meeting with U.S. oil industry executives Friday, in which he didn’t make any public declaration of a plan to curtail domestic output, saying that it’s a free market and up to Saudi Arabia and Russia to solve their price war.The two de-facto OPEC+ leaders and architects of the previous pacts to reduce production signaled they are still far from reaching a new agreement. On Saturday, Saudi Arabia denied Putin’s comments claiming that the kingdom withdrew from the OPEC+ agreement.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Sat, 04 Apr 2020 10:28:32 -0400
Economist: ‘Depression-magnitude’ job losses coming

Economist: ‘Depression-magnitude’ job losses comingThe coronavirus outbreak, or COVID-19, is pushing the U.S. economy further into historic territory.

Yahoo! - Fri, 03 Apr 2020 04:05:57 -0400
Walmart limits store access; US airlines sign up for grants

Walmart limits store access; US airlines sign up for grantsThe outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments on Friday related to the global economy, the work place and the spread of the virus. COSTS MOUNT: The pandemic will cost the global economy as much as $4.1 trillion, or nearly 5% of all economic activity, according to new estimates from the Asian Development Bank.

Yahoo! - Fri, 03 Apr 2020 11:44:06 -0400
3 “Strong Buy” Stocks With Double-Digit Upside — At Least According to Needham

3 “Strong Buy” Stocks With Double-Digit Upside — At Least According to NeedhamThe second quarter of 2020 started with a slide in the markets, as the glum mood came after President Trump acknowledged publicly that the first two weeks of April are likely to see a rise in deaths from COVID-19, as the epidemic intensifies.In one way, this is to be expected – the disease has an incubation period up to 14 days, and course of illness lasting up to 14 cases, in cases with notable symptoms. The majority of cases are reported as mild, but the disease, as we know can be deadly in more severe cases. The social distancing moves, imposed through lockdowns and quarantines, are pounding the economy – but also slowing the spread of COVID-19. But they were implemented some two to three weeks ago, so the natural course of the disease, in those exposed before the lockdown policies took hold, is reaching its peak now, The good news is, the success of social distancing policies is slowing the disease spread, allowing hospitals to cope.Downturns can present buying opportunities for contrarian-minded investors. Investment firm Needham has recently been thinking along these lines and came out with reports on stocks that should rally when the spread of COVID-19 will stabilize, or actually benefit from the current situation.We’ve taken three of Needham’s top picks and looked them up in the TipRanks database. These are investments that TipRanks reveals as “Strong Buys” and, more importantly, all three offer robust upside potential. Let’s take a closer look. EverQuote, Inc. (EVER)Everything is available online these days. It’s one of the wonders of the internet information age in which we live, as just about any product or service can be researched and purchased with the click of a mouse and a simple online search. Some products are more amenable to online service than others, and insurance is clearly in that category.Online insurance firm EverQuote connects customers and providers through its platform, and has expanded from its beginnings in the car insurance sector to also offer life and home policies. EverQuote’s services are free for site visitors – insurance customers don’t pay any fee for using the site. The company brings in profits from charging referral fees to the policy providers – but those fees are only assessed when policies are purchased.EverQuote shares have underperformed the broader markets recently, having lost half of their value since the current bear trend began. This came after a Q4 that saw the company outperform expectations, with a net loss of 4 cents per share against a forecast of 6 cents – a loss that was less than one-third the year-ago figure of 15 cents. Revenue growth was strong in Q4, reaching $73.8 million, 8.2% over the estimates and up 85% year-over-year.With the coronavirus pandemic in full swing, older forward guidance is of little use. But it’s important to note that as restrictions are lifted and business begins to resume in 2H20, customers will need to renew lapsed insurance policies – or may have been ‘scared straight’ by the downturn, into putting their insurance protections in order.5-star Needham analyst Mayank Tandon agrees, seeing a clear path forward for the company. The analyst noted, “In our view, EVER's business model should remain largely resilient given that it is run through a digital marketplace and ~85% of the revenue comes from auto insurance, which is a nondiscretionary expense… we believe that demand should remain strong as consumers look for ways to save money in a difficult economic environment and carriers/agents compete for share by leveraging highly measurable marketing channels.”Tandon reiterates his Buy rating here, and sets a price target of $45, suggesting an upside 95%. (To watch Tanon’s track record, click here)EVER’s Strong Buy analyst consensus rating is based on a 6 to 1 split of Buys versus Hold. Shares are priced low, at $23.03, and the $46.57 average price target suggests an upside potential of 102%. (See EverQuote’s stock analysis at TipRanks)Livongo Health, Inc. (LVGO)Moving to the health industry, we find an interesting company with a unique niche. Livongo is a biotech – that develops systems for the treatment of chronic health conditions. Specifically, the company works with patients with diabetes, using a combination of medical treatment and real-time data analysis technology to give customers a personalized approach to disease management. The connection here to COVID-19 is apparent: the coronavirus disease is dangerous to patients with preexisting chronic conditions, and better management of those is key to maintaining good health.At the beginning of March, LVGO reported a strong Q4. Earnings were positive, at 2 cents per share, versus the 5-cent loss expected, and revenue, at $50.2 million, was 1.8% better than forecast. The revenue total also represented 137% year-over-year, a clear testament to the company’s valuable niche. In another clear sign that LVGO is well-suited to current conditions, the stock has posted 12% gains year-to-date, while the overall market has dropped sharply.Writing for Needham, 5-star analyst Scott Berg notes these points, saying of Livongo, “We note shares of Livongo have significantly outperformed the broader market including the Russell 2000 significantly since they reported 4Q results on March 2... We want to highlight our belief Livongo's success in FY20 is not perfectly correlated with the broader economy and they may actually benefit from some recent economic trends related to COVID-19.”Berg sets a $42 price target to back his Buy rating, implying an upside of 51%. (To watch Berg’s track record, click here)With 5 Buy-side reviews, Livongo holds a unanimous Strong Buy analyst consensus rating. The stock has an average price target of $39.40, which suggests a strong 40% upside potential from the current share price of $23.22. (See Livongo’s stock analysis at TipRanks)Monolithic Power Systems (MPWR)While its name suggests a utility, this is actually a tech company. Monolithic Power is maker of power circuits and converters, for digital, analog, and mixed-signal systems, used in portable electronics, wireless devices, computer systems, cars… and medical equipment. That last is a segment in high demand, as hospitals and medical providers are seeking expand their inventories in expectation of increased near-term need due to COVID-19.Where most companies have lost heavily recently, MPWR has managed to outperform the market. While the stock is still down in the bear market, the loss is only 13%, compared to the 23% to 26% losses in the S&P 500 and Dow Jones indexes. Monolithic entered 2020 after an in-line Q4 report. Specifically, EPS, at $1.04, edged over the estimates by 1 cent, while revenue, at $166.74 million, was 2.23% higher than expected.Strong customer orders powered the quarter, and MPWR finished 2019 with a backlog of work orders. That was noted by Needham’s 5-star analyst Quinn Bolton, who sees the backlog as a firm foundation for the company going forward, despite an overall gloomy economic outlook. Bolton opined, “Monolithic Power Systems has a consistent track record of execution and faster growth than its analog/mixed-signal peers. Targeting a growth rate 10-15 pts higher than the overall market, MPS is the fastest growing company in the attractive catalog analog segment, in our opinion. We believe MPS will continue to grow faster than the analog market in 2020 and 2021 driven by market share gains, the ramp of new products/design wins and co-development projects with tier-one customers.”Bolton maintains his Buy rating on this stock, and while he lowered his price target considering current economic declines, he still sees the stock gaining 23% in the coming year, to reach $190 per share. (To watch Bolton’s track record, click here)Monolithic is another company with a unanimous analyst consensus rating. The Strong Buy rating is based on 9 Buys, while the $201.11 average price target implies an upside potential of 29% from the current share price, $155.80. (See Monolithic stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Yahoo! - Fri, 03 Apr 2020 12:34:24 -0400
'This is way worse than anything we saw in the Great Depression': Economist

'This is way worse than anything we saw in the Great Depression': EconomistThe Department of Labor released its monthly jobs report on Friday, showing a loss of 701,000 jobs. KPMG Chief Economist Constance Hunter shares her take on the report with the On The Move panel.

Yahoo! - Sat, 04 Apr 2020 08:02:04 -0400
Why Americans should think twice before filing for a tax extension beyond July 15

Why Americans should think twice before filing for a tax extension beyond July 15The federal government has moved the tax filing deadline from April 15 to July 15 due to the novel coronavirus pandemic, and Americans can even file for an extension beyond that to Oct. 15. But they should do so with caution.

Yahoo! - Fri, 03 Apr 2020 06:47:37 -0400
Momo Inc. (NASDAQ:MOMO) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Momo Inc. (NASDAQ:MOMO) Looks Like A Good Stock, And It's Going Ex-Dividend SoonMomo Inc. (NASDAQ:MOMO) stock is about to trade ex-dividend in 3 days time. Investors can purchase shares before the...

Yahoo! - Fri, 03 Apr 2020 14:30:09 -0400
7 Media And Entertainment Stocks To Buy, Sell And Hold

7 Media And Entertainment Stocks To Buy, Sell And HoldThe coronavirus (COVID-19) outbreak has dragged down stock prices across the board, and media and entertainment stocks are no exception. While some media and entertainment businesses have ground to a complete halt due to the economic shutdown, others are thriving from a surge in at-home business.CFRA recently assessed the media and entertainment landscape in the wake of the COVID-19 outbreak, and analysts updated their takes on some popular stocks in the group. CFRA said companies that rely heavily on public gatherings and carry the most debt are most at risk, while others should have no problem navigating the current environment.Here are seven media and entertainment stocks to buy, sell and hold, according to CFRA.Comcast Corporation (NASDAQ: CMCSA) - Buy Analyst Tuna Amobi said Comcast is one of the rare winners from the COVID-19 outbreak given its cable and satellite business is likely getting a huge boost from Americans stuck in their homes. Comcast also has a relatively high A- S&P credit rating, suggesting its balance sheet is healthy.Comcast's Universal Studios postponed the release date of its upcoming "Fast and Furious" movie for another year, and the movie studio business could take a hit. However, Amobi says Comcast should make it through the shutdown just fine in the long term.CFRA has a Strong Buy rating and $54 price target for CMCSA stock.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.Walt Disney Co (NYSE: DIS) - Buy Segments of Disney's businesses, including its theme parks, movie studios and cruise lines, are certainly getting hammered by the economic shutdown. However, large-scale home confinement could be a major boost for Disney+, which launched back in November.Streaming video is one of the few remaining sources of entertainment for many Americans who might not have otherwise tried out Disney+. Amobi says COVID-19 is a net positive for Disney in that respect, and new Disney CEO Robert Chapek should bring some desirable skills to the table as Disney works to update its business model.CFRA has a Buy rating and $160 price target for DIS stock.AMC Entertainment Holdings Inc (NYSE: AMC) - Buy AMC shares are down more than 71% year-to-date and are trading at around $2 after COVID-19 completely shut down the movie theater business. It looks like AMC won't be opening up its theater doors until the end of April at the earliest. While the company's near-term outlook is dicey at best, Amobi said the stock is a compelling value at current levels. Prior to the outbreak, CFRA was projecting a 2.5% revenue decline in 2020 followed by a 1.3% gain in 2021.CFRA has a Buy rating and $8 price target for AMC stock.Live Nation Entertainment, Inc. (NYSE: LYV) - Buy Prior to the COVID-19 shutdown, live entertainment ticketing company Live Nation was firing on all cylinders. There's no reason why the company can't eventually return to that level, but investors may need to be patient.It may be June or later before large events and shows are back on the calendar, and it may take many more months for customers to be financially able and willing to gather in large numbers without fear of infection. Investors must hope the broad self-isolation will make stir-crazy Americans desperate to get out of the house and go back to normal social events at the earliest possible opportunity.CFRA has a Buy rating and $65 price target for LYV stock.Madison Square Garden Co (NYSE: MSG) - Hold Like AMC, all of Madison Square Garden's events are on hold until at least the end of the month. However, the company recently announced a $400 million sale of the LA Forum to Los Angeles Clippers owner Steve Ballmer. The valuation of the deal and the cash infusion is reassuring to MSG investors and should help boost the company's liquidity as it navigates the COVID-19 shutdown.In the long term, the New York Knicks, New York Rangers and Madison Square Garden Arena are all extremely valuable and productive New York City assets that should continue to create value for investors. However, investors may want to stay on the sidelines for now given none of these assets are generating cash flow at the moment.CFRA has a Hold rating and $325 price target for MSG stock.Royal Caribbean Cruises Ltd (NYSE: RCL) - Sell Few stocks may have their businesses permanently impacted by the coronavirus outbreak, but cruise lines may be one.A disproportionately large percentage of Royal Caribbean's customers are retirees, the age demographic that is most at-risk from COVID-19. Even once travel bans are lifted, airlines will likely see their business return much sooner than cruise lines given there are plenty of reasons to fly other than vacations. Slumping demand in the near-term could trigger extreme pricing discounts, which could eat into margins and cash flow.CFRA has a Sell rating and $100 price target for RCL stock.See Also: 8 Best Investment Strategies During A RecessionLas Vegas Sands Corp. (NYSE: LVS) - Sell Not only are all of Las Vegas Sands' U.S. casinos shut down indefinitely, the company has a heavy debt load that could start to come into play as the crisis drags on. Las Vegas Sands barely survived the 2008 financial crisis thanks to its debt, which now stands at $12.5 billion.Las Vegas Sands currently pays an 8.4% dividend, but a dividend cut could be the company's first line of defense against financial hardship. Casinos in Macau, China are back up and running after a COVID-19 shutdown, but Macau gross gaming revenue plummeted nearly 80% in the month of March.CFRA has a Sell rating and $62 price target for LVS stock.Latest Ratings for DIS DateFirmActionFromTo Apr 2020Atlantic EquitiesUpgradesNeutralOverweight Apr 2020Guggenheim SecuritiesDowngradesBuyNeutral Apr 2020Imperial CapitalMaintainsIn-Line View More Analyst Ratings for DIS View the Latest Analyst RatingsSee more from Benzinga * With Live Sports On Hold, ESPN And Fox Load Up On Pro Wrestling * 9 Beaten-Down Travel Stocks To Buy, Sell And Hold * BofA Slashes Casino Price Targets, Sees Buying Opportunities(C) 2020 Benzinga does not provide investment advice. All rights reserved.

Yahoo! - Fri, 03 Apr 2020 16:53:43 -0400
Top unions call for closure of all Amazon warehouses — experts say it would be disastrous

Top unions call for closure of all Amazon warehouses — experts say it would be disastrousA nationwide closure would be crushing for the company, crippling its distribution network amid a spike in demand for Amazon’s delivery service.

Yahoo! - Fri, 03 Apr 2020 19:02:12 -0400
Mortgage Crisis Prompts U.S. to Weigh Harder Line With Borrowers

Mortgage Crisis Prompts U.S. to Weigh Harder Line With Borrowers(Bloomberg) -- With a wave of U.S. mortgage borrowers expected to seek reprieves from monthly payments, regulators are taking steps to make it easier for firms that service the loans and bracing for the reality that they may have to take a harder line in specifying who qualifies for relief.The likely surge in coronavirus-fueled forbearance requests has been exacerbated by the $2.2 trillion stimulus measure that Congress passed last week. The legislation stipulated that homeowners hurt by the pandemic’s devastating impact on the economy could delay payments for months.But lawmakers put few burdens on borrowers, forbidding mortgage servicers from demanding documented proof of hardship. Instead, consumers would just have to attest that they’re struggling.Widespread Abuses?In anticipation that there could be confusion, fights and even widespread abuses as borrowers withhold payments, agencies are seeking to clarify that the break is only for those who really need it. Officials at the Federal Housing Finance Agency and Department of Housing and Urban Development are among those discussing whether to issue guidance on who’s eligible, people familiar with the matter said.On Friday, federal banking regulators said they will be flexible in supervising mortgage servicers and in pursuing enforcement actions provided that the companies make good faith efforts to assist borrowers seeking to miss payments.Read More: Mortgage Firms Teeter Near Crisis That Regulators Saw ComingThe regulators could take other steps to make clear that pain must be legitimate, such as requiring evidence that borrowers have actually lost their jobs, said the people, who requested anonymity because the discussions are private. Government watchdogs want to see how many consumers seek forbearance before taking more aggressive steps to clarify who can apply, the people said.FHFA spokesman Raphael Williams said the agency interprets the stimulus legislation as requiring that consumers have to have lost jobs or income to qualify for forbearance.Mortgage relief is “for those who do not have the means to make payments due to economic hardship caused by COVID-19,” HUD Director Ben Carson said in an emailed statement. “If people are in a situation where they can pay their mortgage or rent on time, they should do so,” he said.Delinquency WaveAbout 300,000 borrowers whose mortgages are backed by Fannie Mae and Freddie Mac have requested forbearance as of April 1, according to the FHFA.It’s expected to become clearer in the coming weeks just how bad the problem will get, as bills become past due. Mortgage lenders are already preparing for the biggest wave of delinquencies in history after a record 10 million people applied for unemployment benefits over the past two weeks. It’s also not clear how long the crisis will last.As many as 30% of Americans with home loans – about 15 million households –- could stop paying if the U.S. economy remains closed through the summer or beyond, according to an estimate by Mark Zandi, chief economist for Moody’s Analytics.Nonbank PainNonbanks that service mortgages would likely be hit hard because they’re still obligated to distribute monthly payments to investors in bonds tied to home loans even if borrowers stop paying. As a result, servicers are bracing for a liquidity shortfall.And FHFA Director Mark Calabria said in a Bloomberg Television interview last week that Fannie and Freddie, the mortgage giants that backstop about half of the nation’s $10 trillion housing market, might have to take delinquent loans on their books if missed payments pile up. Calabria’s agency regulates Fannie and Freddie, which have been under government control since the 2008 financial crisis.Read More: Why the Mortgage Market Needs Its Fixes FixedUnder the stimulus legislation, borrowers with loans insured by government agencies such as the Federal Housing Administration and the Department of Veterans Affairs would be eligible for forbearance. Consumers whose mortgages are backed by Fannie and Freddie would also be eligible to skip payments.Who’s Eligible?Borrowers would be eligible for 60 days of forbearance if they can demonstrate virus-related financial stress. The relief can be extended for 30 days up to four times.While most of the new programs are aimed at helping home owners, the government is also trying to help renters too. The FHFA has granted mortgage forbearance to U.S. landlords in exchange for suspending evictions if renters can’t make payments.Commercial borrowers with federally backed loans could potentially skip payments for at least 30 days with a possible extension of up to 60 additional days. Unlike individual consumers, businesses would have to document financial hardship and they would be barred from evicting tenants as long as they are missing mortgage payments.Helping RentersOfficials are also considering taking additional steps to help renters, a group they have warned could cause further turmoil in the housing market as the crisis continues.As the White House weighs a fourth round of stimulus measures, it’s considering recommendations from housing agencies that include providing help through existing state grant and voucher programs to help renters stay in their residences, according to people familiar with the matter. Talks are still in early their early stages and could change, the people said asking not to be named because the talks are private.(Updates with federal agency announcement on flexibility in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Sat, 04 Apr 2020 14:26:50 -0400
Trump’s ‘Free Market’ Response to a Global Deal to Save Oil

Trump’s ‘Free Market’ Response to a Global Deal to Save Oil(Bloomberg) -- On Thursday, U.S. President Donald Trump sent oil prices rallying on the prospect of an unprecedented, U.S.-backed deal to cut global crude production.On Friday, he walked out of a meeting with the titans of America’s oil industry without any public declaration of a plan to curtail domestic output, saying it’s a free market and up to Saudi Arabia and Russia to solve their price war that sent crude crashing.His remarks call into question Trump’s ability to broker a truce between the world’s two biggest crude exporters at a time when the coronavirus pandemic is destroying demand and threatening the shale industry’s survival. The president said that tariffs on oil imports could be imposed, though he’s not planning to do that at the moment.While both Saudi Arabia and Russia have expressed openness to coordinated production cuts -- and Trump said a deal between the two nations will come soon -- it’s unclear that can be achieved without the U.S. and other nations also taking part. On Saturday, renewed diplomatic tension between Riyadh and Moscow further blurred the outlook for a deal. Asked whether America would join in, Trump was evasive.“It’s a free market. We’ll figure it out,” he told reporters in Washington after the gathering with the heads of Exxon Mobil Corp., Chevron Corp. and other major producers. “Ultimately the marketplace will take care of it.”Left to its own devices, though, the market is poised to collapse further as the Covid-19 crisis could slash global crude demand by almost a third. Hundreds of thousands of industry jobs are hanging in the balance, with about $15 billion of investments wiped out from the budgets of shale explorers and many of them on the brink of bankruptcy. Oil producer Whiting Petroleum Corp. and service provider Hornbeck Offshore Services Inc. filed for bankruptcy this week.So now all eyes turn to the Organization of Petroleum Exporting Countries, which was initially slated to convene on Monday in a virtual meeting with members, allies and guests including the oil-rich Canadian province of Alberta, in a bid to address crude’s meltdown. But that meeting was delayed as Riyadh and Moscow traded barbs about who’s to blame for the collapse in oil prices. The alliance is now tentatively aiming to hold the virtual gathering on April 9, a delegate familiar with the matter said.“It’s up to the meeting on Monday chaired by Saudi Arabia to deliver the 10 million barrels a day promised by Trump, without U.S. participation,” Roger Diwan, oil analyst at IHS Markit Ltd, said before the meeting was postponed. “That’s a very high bar to achieve.”Russian President Vladimir Putin said his country is prepared to take part in deep cuts in oil production together with Saudi Arabia and other major producers. On Saturday, however, Saudi Foreign Minister Prince Faisal bin Farhan said comments by Putin laying blame on Riyadh for the end of the OPEC+ pact between the two countries in March were “fully devoid of truth.”Trump vowed to support the U.S. oil industry with measures that include filling the country’s Strategic Petroleum Reserve to ease the glut as storage tanks in distribution hubs are almost filled to the brim.“We’ll get our energy back,” he said during a portion of Friday’s meeting that was open to reporters. “I’m with you 1,000%. It’s a great business, it’s a very vital business and honestly, you’ve been very fair. You’ve kept energy prices reasonable for a long period of time.”The meeting included Exxon Chief Executive Officer Darren Woods, Occidental Petroleum Corp.’s Vicki Hollub and Energy Transfer LP’s Kelcy Warren. Greg Garland, chairman and CEO of Phillips 66, and Mike Wirth, chairman and CEO of Chevron, also attended.The executives didn’t ask for a bailout, according to Trump. They did discuss tariffs on foreign oil, which “are a way of evening the score,” he said. “Am I thinking about imposing it as of this moment? No, but if we are not treated fairly, its certainly a tool in the toolbox.”ClearView Energy Partners analysts said Trump’s comments Friday indicate the U.S. is likely to prod the Russia-Saudi talks along not by expressing a willingness to cut U.S. production but rather a willingness to impose tariffs.Restricting imports with a tariff, an idea championed by Oklahoma oil tycoon Harold Hamm, a Trump confidant, is one of the most contentious matters, with refiners and Northeast U.S. gas producers firmly opposed.Prior to the gathering Trump had indicated he already has a plan in mind for helping oil companies he says are being “ravaged” by a price war between Russia and Saudi Arabia. He said he knows what to do to solve the problem, though he declined to reveal the strategy other than to say it’s “tough” and “I’d rather not do that.”He acknowledged that addressing the growing supply glut, which has been exacerbated by collapsing demand, would be difficult. “It’s going to take a long time to -- to get rid of that,” he said. “There’s massive excess amounts of oil and gas. Massive. Like probably there’s never been.”Energy Secretary Dan Brouillette told oil industry representatives shortly after Trump’s meeting that he expected a Saudi-Russia deal on crude production cuts within days. While he didn’t provide details on what a deal might look like, he stressed that his agency was working with counterparts in both nations, according to four people familiar with the call who asked not to be named detailing a private conversation.West Texas Intermediate crude suffered its biggest-ever quarterly decline in the three months through March. Even after the past two days’ rally, futures are still down 54% this year.Trump again Friday called for purchasing oil for the nation’s emergency reserve during the meeting. Funding for the purchases was earlier spiked by Congressional Democrats, but Trump on Friday said they should “go back and see” if it could be included in “another bill.”Brouillette, speaking at the meeting, said the Energy Department is still planning on purchasing oil for the reserve without providing more details.(Updates with delayed OPEC+ meeting in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Yahoo! - Fri, 03 Apr 2020 19:32:11 -0400
Berkshire Cuts Delta, Southwest Stakes With Airlines in Freefall

Yahoo! - Sat, 04 Apr 2020 10:11:21 -0400
Why Ally Financial Inc. (NYSE:ALLY) Should Be In Your Dividend Portfolio

Why Ally Financial Inc. (NYSE:ALLY) Should Be In Your Dividend PortfolioCould Ally Financial Inc. (NYSE:ALLY) be an attractive dividend share to own for the long haul? Investors are often...

Yahoo! - Fri, 03 Apr 2020 05:44:17 -0400
Bitcoin on the brink of major bullish breakout

Bitcoin on the brink of major bullish breakoutBitcoin looks to be on the brink of a major breakout as it coils up just beneath the crucial $7,000 level of resistance. The test of $7,000 comes after a volatile trading session that saw Bitcoin surge from $6,600 to $7,300 before being met with a substantial sell-off. Bearish pressure eventually pushed price back below $6,800, although a bounce this morning has lifted it back into a bullish posture. If Bitcoin can close Friday's daily candle and Sunday's weekly candle above $7,150 it would confirm a bullish breakout, which would pave the way towards continuation to the upside. Potential targets begin to emerge at both $7,400 and $7,850 if a breakout is to come into fruition, while a rejection from

Yahoo! - Fri, 03 Apr 2020 17:00:00 -0400
Has Russia Reached Its Limit In The Oil Price War?

Yahoo! - Fri, 03 Apr 2020 16:42:36 -0400
Bad News Is Grinding Down Wall Street’s Few Remaining Bulls

Bad News Is Grinding Down Wall Street’s Few Remaining Bulls(Bloomberg) -- There is no shocking this market anymore.Between the rapidly escalating coronavirus crisis and the unprecedented stimulus measures to counter its impact, investors have endured weeks of extreme turbulence. The evidence suggests they are becoming inured to both good news and bad.In a week of disastrous economic data and carnage across the corporate space, volatility retreated and the S&P 500 was calm, at least in comparison to the last three weeks. New bond sales surged, and were lapped up in a market otherwise preoccupied but just how big the coming wave of defaults will be.Drawing from coverage across Bloomberg News, this is how another five days of hope and fear unfolded on Wall Street and beyond.Hope and FearMonday 30 March: Extreme price swings across markets are beginning to ease. Policy and law makers globally have moved with unexpected pace to blunt the economic and financial impacts of the pandemic.The world’s major central banks, including the Federal Reserve and European Central Bank, have effectively pledged support without limits. Hot on the heels of data showing the Fed’s balance sheet topping $5 trillion for the first time, today the ECB reveals it boosted asset purchases by a record last week.These actions, in conjunction with moves by other central banks around the world, have eased the panic in markets that saw companies scrambling for dollars and drawing down credit lines while investors dumped riskier assets for safer options. Last week was the best for the S&P 500 since 2009, and wild moves continue to fade today. The S&P 500 Index will climb for the fourth session out of five, taking its advance to 17% from a week ago.“The lowest allocation I would recommend is neutral given how much equities have fallen and how much monetary and fiscal stimulus is being delivered,” says John Normand, head of cross-asset fundamental strategy at JPMorgan Chase & Co. “I would prefer to build an overweight gradually in the coming months on a view that even a gradual reopening of economies once the virus fades will deliver much higher return on equities than on bonds in the second half of this year.”Treasuries do slip as stocks gain, but in truth that reopening seems a long way off. Today the World Health Organization points to signs of stabilization in Europe after Italy reports the smallest number of new infections in almost two weeks, but the country is still extending its lockdown and seeing pockets of social unrest. Restrictions on public life are tightened in Spain, Austria, Greece and Cyprus. Russia moves toward a lockdown.Even President Donald Trump backtracks on his ambition of reopening the U.S. economy by Easter, instead extending social-distancing measures until the end of April. In a stark shift from two weeks of measured optimism, the president warns that 100,000 or more people may die.The economic toll of all this is mounting alongside the number of infections and deaths. The Dallas Fed’s general economic index plunges to minus 70, the lowest reading in data going back to 2004. Below zero indicates contracting activity; the figure was 1.2 in February.Perhaps that’s why, for all that the turmoil has eased, things are not quite right in markets.Take the dollar. In theory, America’s currency should be facing a reckoning. It is expensive on just about every measure. The U.S. is now the front line for the fight against the virus. The government will have to borrow to the hilt to fill its stimulus plans. The Fed is flooding the markets with greenbacks in a bid to keep them functioning and liquid. Yet today the dollar strengthens again.Why isn’t it falling? In time, it may. But the models that say it’s misguided to treat the dollar as a national currency, when no one else does. This is the international currency, dominating a global system in which a vast proportion of deals, investment and goods are ultimately denominated in the greenback. In a crisis, demand surges -- and the world is not convinced the crisis is over. The lingering desire for dollars means stresses remain in the short-term funding markets.Elsewhere, oil looks broken. The price of crude crashes to an 18-year low as global economy continues to shut down, destroying demand and leaving the world awash with what we once called black gold.The energy sector is over-represented among high-yield corporate borrowers, who issue bonds with high coupons because they are seen as having a greater risk of default.This part of the credit market, known as junk debt, has faced tremendous pressure in recent weeks because of such exposures and because investors have been flocking to safer options. Despite the easing market conditions, ratings agencies are lining up to downgrade creditworthiness of many high-yield borrowers.A worse rating means higher debt-servicing costs, which in turn drives up the risk of default even further. It’s a problem that extends to nations, too, and emerging-market currencies including South Africa’s rand and Mexico’s peso tumble on downgrade concerns.The EndTuesday 31 March: It’s the end of the month and end of the quarter and end of the bear-market bounce.That’s the term used for a short revival in the stock market during a longer, more pronounced downward trend. The S&P 500’s recent gains happened despite the worsening pandemic, leading many to conclude equities couldn’t possibly sustain the upward momentum.“Is it possible to have a bear market without a false start? I doubt it,” says Gregory Perdon, chief investment officer at Arbuthnot Latham Co. & Ltd. “In this environment, we remove benchmark risks, sell winners, buy losers, reduce illiquids and get powder dry.”Read more: A Brief History of S&P 500 Bear-Market Rallies and What FollowsWhile investors and strategists ponder the direction of markets, in the real world things are going only one way.Goldman Sachs Group Inc. downgrades its already terrible assessment for the U.S. economy, saying it will shrink an annualized 34% in the second quarter. The total number of American employees who are out a paycheck at major retail chains rises to around 600,000, according to Bloomberg calculations. New York’s Metropolitan Transportation Authority, which runs the nation’s largest public transportation system, says it needs help to make sure it can keep paying bondholders.This is all happening after Trump has signed a more than $2 trillion stimulus bill into law. Today the president will call on Congress to provide another $2 trillion, this time for infrastructure.This kind of fiscal support would be targeted domestically, of course, but the U.S. is no island. In our globalized, financialized world, trouble on one side of the planet can reach the other in an instant. That is why the Fed takes its next extraordinary step, announcing a temporary repurchase agreement facility to allow foreign central banks to swap any Treasury securities they hold for cash.Put simply, the Fed is planning to export more dollars in a bid to stabilize the global funding markets. The new facility won’t start until next week, but the announcement takes some of the juice out of the greenback rally, and it finishes slightly lower.This barrage of liquidity and support leaves weird patterns across markets, though. The Fed is even buying U.S. corporate bonds now, which has helped spark a huge dash to sell new debt. That reaches a pinnacle today as cruise line operator Carnival Corp. and Airbus AE, two companies that are among the hardest hit by the coronavirus pandemic, both market big deals.At the same time, there’s a warning flare in another part of the corporate funding mechanism. The bid-ask spreads of derivatives known as forward contracts, which allow companies to protect themselves from currency fluctuations, have blown out to the most expensive levels in years.As the quarter ends with a whimper, the list of winners says it all: Treasuries, the dollar, gold, bunds, yen and the Swiss franc are the only major assets to have delivered a positive return. The safest of the havens.Dismal Data, Corporate CarnageWednesday 1 April: Everyone knew the data would break bad, and that the corporate toll of this virus would be extreme. But it’s one thing knowing what’s coming, and quite another to see it arrive.The bad news today will be relentless. It starts overnight as the biggest banks in the U.K. announce they will cancel dividends and buybacks. They’ve been encouraged by the Bank of England, but the nuance won’t matter: By virtue of timing, they become emblematic of the turmoil sweeping boardrooms from Sydney to San Francisco.Buybacks -- when a company buys its own shares to reduce the amount outstanding and so boost earnings per share -- were a big feature of the 11-year bull market. But they are a luxury most companies can no longer afford, and are disappearing fast.Read more: A Quarter of Annual Buyback Volume Has Been Yanked, Goldman SaysDividend yields have technically jumped as stocks slumped in the first quarter, but as they shore up balance sheets in the age of the coronavirus companies are dashing to scrap such payouts. That’s bad news for pension funds, which count on such income to help meet their liabilities.Corporations are also issuing profit warnings left and right or ditching their outlooks altogether. Those which can are drawing on their credit lines. Ironically, the easing of conditions spurred by the emergency measures of the Fed and other central banks has triggered a different kind of dash for cash, and the new bond offerings keep rolling in.Two things have happened in the real economy that make all of this inevitable: Supply chains are collapsing and demand is in freefall. Which brings us to the data. It shows orders and employment at U.S. factories are contracted at the quickest pace in 11 years last month. Global manufacturing data was, somehow, even more grim.Read more: Virus Lockdowns Drag Global Manufacturing Into a SlumpThis is surely just the start though, just the beginning of the bad numbers. By the end of the day, confirmed cases of coronavirus will top 920,000 worldwide with 46,000 dead. France reports its deadliest day. Germany extends its lockdown by two weeks.U.S. officials tell Bloomberg News the country’s intelligence community has concluded China concealed the extent of its outbreak. The Pentagon is seeking to provide as many as 100,000 military-style body bags for potential civilian use.Unsurprisingly, there are still alarm bells in the world’s financial markets. Municipal-bond prices tumble anew. The S&P 500 drops the most in two weeks. Treasury yields fall as credit-default swaps -- contracts which insure a bondholder against losses -- rise, which could be signaling more pain.Speaking of credit, the turmoil across markets is unraveling a slew of leveraged trades, while concern is growing that rating downgrades could start to hit collateralized loan obligations.10 MillionThursday 2 April: Economists have been debating whether the recovery will be V-shaped, L-shaped, or bizarrely now a Nike swoosh. To the companies and people who make up the economy, it must seem like discussing how high they will bounce after falling from a plane. All that matters right now is the onrushing ground.Read more: Blue-Collar America Braces for Another Devastating RecessionUnemployment claims have doubled again in the world’s largest economy. That would be a remarkable phrase at any time, but when last week’s reading was the highest ever after a jump of 3 million, it’s hard to comprehend. Ten million lost jobs in two weeks. The market reaction is curiously muted.“As the market does not react very negatively to negative news, it has by definition bottomed out,” reckons Sebastien Galy, senior macro strategist at Nordea Investment Funds SA. “The question is the flow of surprise from here.”One person always capable of delivering a surprise is President Trump, who suggest in a tweet that he’s brokering a deal that would have Saudi Arabia and Russia dramatically cut oil production. It triggers the biggest surge in the crude price on record.Whether resolving the price war in oil will make a difference remains to be seen. The coronavirus is causing the biggest demand crash ever witnessed, and there is no end in sight. The pain is everywhere: Goldman Sachs strategists are talking about company earnings for members of the S&P 500 shrinking 57%, and it doesn’t seem out of the question.Meanwhile, markets get messier by the day. Stocks rise, despite the data and deluge of corporate news, with big energy companies leading the way thanks to that wild jump in oil. Yet elsewhere, like the $3.9 trillion muni-bond market, dysfunction is reappearing and there are calls for a Fed rescue.Perhaps the central bank will oblige. Perhaps it will have to. But its unprecedented actions come with consequences. Concerns are starting to grow that the central bank’s stretched position risks squeezing out private sector financing because of the cash it has absorbed.AttritionFriday 3 April: The market can’t be shocked, but at this rate it will be ground down. Bad data are expected, deaths are inevitable, corporate stress is predictable. But it all keeps coming, day after day. It is attrition that will cause investors to capitulate.Global virus cases have topped 1 million, and the World Health Organization is urging countries not to rush to end lockdowns. There doesn’t seem much danger of that. Singapore is shutting schools and workplaces. The U.K. has its deadliest day yet, as does France. New York and New Jersey governors order unused ventilators and other equipment to be commandeered as the crisis escalates.More signs of the severity of the economic hit. The monthly U.S. jobs report is abysmal, even though it comes from a period before government-mandated shutdowns went into widespread effect.The data is a reality check in some corners of the financial world. The corporate bond market slows down to end what was already a record week for global issuance, where sales surpassed have $200 billion. The dollar gains to end a strong week.The S&P 500 drops, but like all the moves this week it feels measured. It was perhaps helped by another jump in oil on news the OPEC+ coalition will hold a virtual meeting on Monday and that Russia is ready to cut output.Perhaps the best that can be said for this week in markets is that nothing broke, that we know of. It’s not much, but given the unremitting bad news surrounding the pandemic, the corporate pain and the dismal economic data, it’s enough for some.“The market is consolidating a little here,” says Chris Chapman, a portfolio manager at Manulife Investment. “Market functioning is returning somewhat more to normal, though liquidity is still not great. But people do seem to be out there looking for buying opportunities. We’re still somewhat cautious but have also begun looking to add on the margins to risk.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.