(Bloomberg) -- Stocks in Europe and Asia gained on Tuesday alongside U.S. equity futures amid continuing optimism the spread of the coronavirus may be slowing in several major economies. Bonds extended declines and the dollar weakened.The Stoxx Europe 600 Index jumped, led by travel and leisure shares, as every major national gauge in the region advanced. Futures for the three main American benchmarks also all climbed after the S&P 500 Index on Monday closed at its highest since March 13. The MSCI Asia Pacific Index rose more than 2% after adding nearly 3% a day earlier.The dollar, a key barometer of funding strains, retreated the most since late March. The pound strengthened despite concern for Prime Minister Boris Johnson, who was moved into intensive care as he battles the virus. Oil resumed gains on signs the world’s biggest producers are moving toward a deal to call off their price war.Riskier assets including stocks and corporate bonds have started the week resuming a remarkable rebound amid the ongoing pandemic. Unprecedented and rapid stimulus by the world’s policy and law makers helped to spur the bounce, which has been given new impetus by signs the rate of increase of both the death toll and new infections may be easing.Still, as the economic impact of the measures taken to bring the outbreak under control continue to be felt, many market participants warn against expectations of a sustained rally.“Optimism on the direction of equity markets will be difficult to maintain until we see more clarity on the corporate earnings outlook and until the dispersion of analysts’ forecasts subsides,” Marija Veitmane, a multi-asset strategist at State Street Global Markets, wrote in a note.Elsewhere, Australia’s dollar rallied and bond yields surged after the country’s central bank signaled that markets are functioning well and continued improvement would allow for a scaling back in purchases of government debt. Chinese stocks climbed and the yuan strengthened in the wake of further targeted stimulus by policy makers as Shanghai reopened after a long weekend.These are some of the main moves in markets:StocksFutures on the S&P 500 Index climbed 2.5% as of 9:19 a.m. London time.The Stoxx Europe 600 Index increased 3.2%.The MSCI Asia Pacific Index advanced 2.3%.CurrenciesThe Bloomberg Dollar Spot Index decreased 0.7%.The euro climbed 0.7% to $1.0866.The British pound advanced 0.8% to $1.2332.The Japanese yen advanced 0.3% to 108.91 per dollar.BondsThe yield on 10-year Treasuries increased seven basis points to 0.74%.Germany’s 10-year yield jumped six basis points to -0.37%.Britain’s 10-year yield jumped three basis points to 0.368%.CommoditiesWest Texas Intermediate crude climbed 3.4% to $26.97 a barrel.Gold fell 0.6% to $1,650.73 an ounce.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.
In just two months, the masters of the economic universe have lost more than $400 billion.
With the decline in workplace pension plans, the responsibility to save for retirement falls squarely on the shoulders of employees. Here are the average 401(k) balance by age range as of the second quarter of 2019, according to data released by Fidelity Investments.
The recent rallies in the markets could be a 'bear-market trap' says chief market strategist from Miller Tabak.
There is a significant chance the global economy experiences “a vicious spiral, which is typical of recessions, between weak final demand, weaker labor markets, falling profits, weak credits markets and low oil prices.”
Doctors are seeing an upward trend in annual income, especially when they specialize. But there are other factors at work when it comes to physicians' incomes.
Investing in a company that pays you no matter how the market performs sounds like exactly what investors need right now, and recent market volatility means that many dividend aristocrats are cheaper than they've been in years. Here are 10 cheap dividend aristocrats to buy -- each one is well-positioned to survive a recession while paying you a healthy dividend. In the 2019 fiscal year, 66% of General Dynamics' consolidated revenue came from the U.S. government.
Chinese coffee chain super-brand Luckin Coffee has been in the spotlight the past week after the company revealed in an SEC filing that it has undertaken an internal investigation into an alleged $300 million fraud on the part of its former COO. The stock is down another 15% today as investors continue to comprehend the company’s disclosure and its positioning in the competitive Chinese coffee market, where the company displaced Starbucks as the retail and delivery leader in just a few short years. On Monday, Goldman Sachs Group Inc. said a group of lenders is putting 76.3 million of Luckin’s American depositary shares up for sale, after an entity controlled by Luckin Chairman Charles Zhengyao Lu defaulted on the terms of a $518 million margin loan.
The Dow Jones futures dropped early Tuesday after Monday's big advance strengthened the current coronavirus stock market rally.
If you are looking for gains in airline stocks, stick with high-quality companies, such as Delta and United, and avoid American and Spirit, analyst says.
More than $38 billion in loans already have been approved by the U.S. Small Business Administration under the Paycheck Protection Program.
Carnival Corp. stealthily filed its first quarter earnings on Friday, giving insight into a company on its knees as it faces an unprecedented crisis, and disclosing a long list of risk factors to its business going forward. The world's largest cruise company — which has found itself at the epicenter of the Covid-19 crisis with […]
The best tech stocks to buy and watch are strong price performers with healthy fundamentals, thanks to a new product or service that's driving growth.
It was the deal that sounded like an April Fools’ joke: bond investors falling over themselves to give a cruise ship company a boat load of money. Carnival printed the secured bonds as part of a wider $6.25bn rescue financing on April 1. Coronavirus has killed passengers on several of Carnival’s cruise ships — incidents that have put the term “floating Petri dishes” firmly in the popular lexicon.
What should you do with your stimulus check? Robert Kiyosaki, the best-selling author of “Rich Dad, Poor Dad,” offered a bit of advice to his 1.3 million followers on Twitter for when that cash finally arrives.
China's Ucar Inc, in which Luckin Coffee <LK.O> Chairman Charles Zhengyao Lu is the biggest shareholder, suspended trading of its shares on Tuesday after regulators questioned the car service provider about how the alleged fraud at Luckin would impact it. Ucar, in which Lu is chairman and CEO, said in a statement late on Monday that the company applied to halt trading in its shares to avoid abnormal price fluctuations and protect investor interest amid media reports on the company. Chinese media reports have linked the firm with Luckin, which said last week an internal investigation revealed sales fabrication of about 2.2 billion yuan ($310.80 million).
(Bloomberg) -- Jamie Dimon said the coronavirus pandemic will lead to a major economic downturn and stress mirroring the meltdown that nearly brought down the U.S. financial system in 2008.“At a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008,” the chief executive officer of JPMorgan Chase & Co. said Monday in his annual letter to shareholders. “Our bank cannot be immune to the effects of this kind of stress.”The 23-page letter, his shortest since 2008, came less than a week after Dimon told staff he’d returned to work after undergoing emergency heart surgery. It was his first public commentary about the coronavirus since the bank’s investor day on Feb. 25. At the time, the outbreak still seemed a distant threat, with fewer than 60 cases in the U.S. and none in New York.Dimon, the only current CEO who steered a major U.S. bank through the financial crisis, said JPMorgan’s earnings will be “down meaningfully” this year, though the bank is “unlikely” to cut its dividend. Such a move would only result from “extreme prudence,” he said, adding that JPMorgan will give more details on the impact when it reports first-quarter earnings later this month.The 64-year-old CEO outlined initiatives his bank is taking to support employees, businesses and the community, but refrained from offering long opinions about public policy that marked previous missives.Read more: What to Know About Recessions as World Heads Into One: QuickTakeHe said 180,000, or about 70%, of the firm’s employees are working from home, and the bank is giving payments of $1,000 to those whose jobs don’t allow them to work remotely.JPMorgan has been waiving fees for some loans, allowing customers to defer payments on mortgages and auto loans, and removing minimum payment requirements on credit cards. It’s also extended $950 million in new loans to small businesses over the past 60 days, and is planning to lend an additional $150 billion to clients across the world.Regulatory ReviewAfter the crisis, “we should use the opportunity to closely review the economic response and determine whether any additional regulatory changes are warranted to improve our financial and economic system,” Dimon wrote. “There will be a time and place for that -- but not now.”Dimon has become a spokesman for Wall Street thanks to his frequent public appearances, outspoken nature and nearly 15-year tenure at the biggest and most profitable bank in America. His absence while he recovered from surgery was felt across the industry as policy makers grappled with dire warnings about the economic effects of the pandemic and governments stepped up efforts to keep millions of people at home to stem the spread of the highly contagious virus.Dimon was more pessimistic about prospects for the economy than some industry figures were when the scale of the crisis was first becoming clear. A month ago, as stock markets were sliding, former Goldman Sachs Group Inc. CEO Lloyd Blankfein said in a tweet to “expect quick recovery when health threat recedes.” He said the economy “will avoid systemic damage” that takes years to work through.‘Forever Lost’Dimon said JPMorgan has been working closely with the government during the crisis, but the bank “will not request any regulatory relief” for itself. Still, regulators could change capital and liquidity requirements to help more capital flow through the system, he said.“Some rules can improperly prevent healthy, well-capitalized banks from lending freely in times of stress,” Dimon said. “This can hurt customers as the crisis deepens. Leaving high-quality, available liquidity undeployed in times of need is an opportunity forever lost.”He applauded recent actions by U.S. Department of Treasury and the Federal Reserve, which he said helped mitigate the economic impact of the virus.Shares of JPMorgan rose 6.3% to $89.36 at 9:48 a.m. in New York, more than the 4.1% gain in the S&P 500 index, which rallied after virus hot spots New York, Italy and Spain posted improvements in death rates over the weekend. JPMorgan’s stock has tumbled 36% this year, less than the 43% slump in the KBW index of bank stocks.Until last year, Dimon’s annual missives had gradually gotten longer, more than tripling in length since he took over as CEO at the end of 2005. He writes the letters himself, but drafts are reviewed and edited by the bank’s legal, accounting, compliance, public-relations and government-affairs teams before they’re published.Other HighlightsJPMorgan has been stress-testing the impact that adverse scenarios, such as a jump in unemployment to 10% and a 50% drop in the stock market, would have on the bank. The firm’s $48 billion in pretax earnings last year would enable it to remain profitable even if revenue fell 20% and credit costs rise $20 billion from 2019, he said.Companies have drawn more than $50 billion of their revolvers -- more than they did during the global financial crisis -- to shore up liquidity, Dimon said. In March, the firm provided more than $25 billion of new credit extensions to companies that requested it.Dimon said people could return to work more quickly if governments made tests widely available to determine who has recovered from the disease. “The country was not adequately prepared for this pandemic,” he said. “Done right, a disciplined transition would maximize the health of Americans and minimize the time, extent and suffering caused by the economic downturn.”(Updates with share price in 14th paragraph, bullet points at end.)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.
If Walt Disney Co (NYSE: DIS) was a pure theme park company, there would be a reason for "massive concerns." But this isn't the case, Michael Bapis, managing director at Vios Advisors at Rockefeller Capital Management said last Friday on a CNBC "Trading Nation" segment.Disney's Diversified Business Disney's business has evolved over the past five to seven years to the point where it's now heavily diversified, Bapis said. Most recently, the launch of the Disney+ streaming platform gives the company a new direct to consumer business and media distribution strategy.The company's theme parks unit "will hurt" in the near-term due to the coronavirus (COVID-19) pandemic and some level for pain could linger on for up to two years, he said. But in the interim, the streaming business offers a form of offset to lost revenue."It's just a product of the environment, it's a product of the markets that are just a 'sell everything' type of a market," Bapis said. "I do believe you could dip your toe into owning Disney now and you know, 12, 18, 24 months, it's definitely going to be higher."See Also: 7 Media And Entertainment Stocks To Buy, Sell And HoldBuy Disney's Stock Near $90? Investors should be aware that a stock like Disney will rebound before its business fully returns to normal, Miller Tabak equity strategist Matt Maley also said on "Trading Nation." In fact, stocks "always bounce" way before the company's fundamentals go back to normal.The $90 level coincides with a level of resistance seen over the past few years. But investors should "take your time" in buying near $90 per share and avoid jumping in "with both feet.""You're going to get some great prices here and one to two to three years, you're going to look really, really good in this stock," he said.Disney's stock traded higher by 4.5% around $98 per share at time of publication.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 Ratings See more from Benzinga * Disney's Bob Iger Addresses The Coronavirus: We Are 'Incredibly Resilient' * Beyond Meat Vs. Impossible Foods: Product Offerings And Pricing * Cramer On Buying Disney's Stock Right Now: 'Makes Sense To Me'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Futures rose Sunday. The choppy market rally is riskier for active investors than the coronavirus stock market crash. AMD, Nvidia, Amazon and Microsoft are stocks to watch.
An estimated 175 million Americans will get stimulus checks with the first payments going out this week or next, according to Larry Kudlow, director of the U.S. National Economic Council.
(Bloomberg) -- Texas billionaire Tilman Fertitta is looking to raise more debt to keep his casino and restaurant empire afloat through year-end if the Covid-19 shutdown persists. The offering is ending a near one-month drought in the market for risky corporate loans.The businessman is offering potential lenders an interest rate of at least 15% to participate in a new $250 million loan for his Golden Nugget casinos and hundreds of restaurants under the Landry’s Inc. umbrella that have been ravaged by the coronavirus, according to people with knowledge of the matter.The loan, which matures in October 2023 and is being arranged by Jefferies Financial Group Inc., is one of many levers Fertitta is pulling to shore up liquidity. The pandemic has brought the travel and leisure industry to a near standstill, leaving Fertitta’s businesses shuttered and burning cash while tens of thousands of his employees have been furloughed.The company has already drawn $300 million of existing credit lines in full and Fertitta is injecting $50 million of his own cash into the business, said one of the people, who asked not to be named because the details are confidential.Read more: Texas billionaire who levered restaurant empire hit on all sidesBased on initial discussions with investors, the loan is being offered at a spread of 14 percentage points over the benchmark London interbank offered rate and at a discount of about 96 cents on the dollar, the people said. That puts the all-in yield above 15%. The spread is the highest ever seen in the U.S. leveraged loan market excluding companies in bankruptcy, according to data compiled by Bloomberg.Fertitta sees the new loan as an expensive insurance policy in the event that none of these businesses can reopen before the end of the year, the same person said.Representatives for Fertitta’s companies and Jefferies did not immediately respond to requests for comment.The leveraged loan market has been slower to recover from the recent turmoil than the high-yield bond market, which reopened last week to borrowers seeking to replenish credit lines and to improve liquidity.While the restart is good news for companies that need cash, the cost of borrowing has soared. Only two months ago, sentiment in the credit market was so robust that debt investors allowed Fertitta to take a $200 million dividend out of the company, doubling the size initially targeted. That debt cost Fertitta only 2.5 percentage points over Libor.Read more: Leveraged loan thaw comes at highest borrowing cost on recordThe Landry’s loan is similar to a junk bond in that it may not be repaid for two years, the people said. It will be on an equal footing to Golden Nugget’s existing term loan but has a first-priority claim on some online gaming assets, one of the people said.(Updates with details on equity injection and revolver draw starting in second 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.
(Bloomberg) -- Activist investor Bill Ackman was so concerned about the potential impact of the coronavirus that he considered liquidating his hedge fund’s entire portfolio for the first time.Instead, the billionaire opted for another strategy: a lucrative credit hedge that earned his firm about $2.6 billion in profits when the market plummeted.Ackman said in a letter to investors in the fund, Pershing Square Capital Management, Monday that he used the proceeds from the credit bet to substantially boost investments in several portfolio companies. That included increasing his stake in Warren Buffett’s Berkshire Hathaway Inc. by 39%, and reinvesting in Starbucks Corp. in a new position valued at roughly $730 million.“We were sufficiently concerned about the health and economic implications of the coronavirus that we considered, for the first time ever, liquidating the portfolio in its entirety because we believed it was likely that markets would decline materially,” Ackman said in the letter. “After a careful review of the portfolio, we concluded that a hedging strategy was more consistent with our long-term ownership philosophy, and would likely lead to a better long-term outcome than selling off all of our assets.”Pershing Square used the proceeds to increase its holdings in Howard Hughes Corp., the real estate company that Ackman chairs, by 158% through a previously announced secondary offering. Ackman said his new Starbucks investment amounted to about 10% of Pershing Square’s $7.3 billion in assets under management after exiting his previous investment in the coffee chain this year.The activist investor boosted his stakes in Lowe’s Cos. by 46% and in Hilton Worldwide Holdings Inc. by 34%. Pershing Square also increased its holdings in Burger King owner Restaurant Brands International Inc. by 26% and medical device maker Agilent Technologies Inc. by 16%. The firm also raised its cash position to 18% from 14%.To protect the portfolio against the impact of the virus, Pershing Square paid about $27 million for hedges in the form of purchases of credit protection on investment-grade and high-yield credit indices, Ackman said in a letter last month. The hedges generated $2.6 billion in proceeds by the time he exited them on March 23.At their peak, Ackman said Monday, the hedges amounted to about 40% of the firm’s total capital.Hedges UnwoundAs a result, Pershing Square returned 11% on its investments in March amid the broader sell-off, bringing its year-to-date returns to 3.3% through March 31, according to its website.“We of course do not know whether the recent lows that have been achieved will be breached by further market declines,” Ackman said. “Our decision to unwind our hedges was driven by the less favorable risk-reward ratio offered by our credit hedges as spreads widened, and the much more favorable risk-reward ratio presented by the then-trading values of companies in which we bought shares.”He said he believed Pershing Square was well positioned to weather the impact of the coronavirus pandemic now that the hedges have been unwound.“We are fortunate to own businesses that are designed to withstand the test of time,” he said. “Importantly, our portfolio companies are generally considered essential businesses, and for the most part will remain open to the extent possible during a state and/or a national shutdown. All of our portfolio companies, however, will be affected to varying degrees in the short term by the virus’ impact on the global economy.”‘Hell Is Coming’Last month Ackman called for a 30-day shutdown across the U.S. to help slow the spread of Covid-19, the disease caused by the new coronavirus. In a March 18 interview, he said “hell is coming” if drastic steps weren’t taken to prevent its spread.A week later, he said in a interview with Bloomberg TV he had made a $2.5 billion “recovery bet” on a bounce back, after gaining confidence that President Donald Trump’s response to the outbreak was “heading in the right direction.”On Sunday, Ackman took to Twitter to convey his thoughts on the virus in a series of posts.“While it is hard to be positive when we know that tens of thousands more will die and many more will get severely sick, I have no choice but to be more optimistic about the intermediate future based on the data and facts I have seen recently. I hope I am right,” he wrote.(Updates with portion of hedges in eighth 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.
Every time a door shuts, another window of opportunity opens, the old saying sort of goes. At least that is how one analyst currently sees the situation for Amarin (AMRN), the maker of high triglycerides treatment, Vascepa.The biotech was assaulted last week on two fronts. First, the company lost a patent trial against two generic drug makers seeking to sell their own versions of Vascepa. The negative verdict was swiftly followed by a massive sell-off, sending the stock tumbling by 70% in one trading session.But all hope is not lost yet, says Cowen’s Ken Cacciatore. The verdict against Amarin pertains only to the US market, which now means the international market, and predominantly Europe, are where Vascepa’s commercial opportunities lie. The marketing authorization application for Vascepa is expected to be decided by the European Marketing Agency (EMA) in 4Q20.With this in mind, Cacciatore thinks there is only one way to go: “With the European commercial decision approaching – and given our belief in the size & durability of the EU opportunity which could reach $1.5-2B and is protected to 2033 – we believe a sale (not a license) makes most sense. And to ensure that the optionality of a potential U.S. patent appeal reversal is retained, we believe a CVR could realize that value. A sale & CVR simply makes the most sense.”A CVR occurs when one company acquires another and gives existing shareholders certain benefits in proportion to the number of shares they already own. In this case, because there is still the possibility the verdict can be overturned in the US and lead to “potential significant value,” such a scenario properly protects shareholders.Warming to the theme, Cacciatore adds another argument for a CVR: “A potential global commercial player would not only have the infrastructure to commercialize in Europe, but they could also quickly leverage Vascepa in the U.S. over the remaining 12 months before the appeal is decided.”“The bottom-line,” Cacciatore concludes, is that the current trading level still provides an “exceptionally compelling opportunity.” As a results, Cacciatore reiterates an Outperform rating on Amarin shares alongside an $8.00 price target, which implies about 60% from current levels. (To watch Cacciatore's track record, click here)Overall, Wall Street is torn between the bullish camp and the analysts who opt to hedge their bets on the drug maker. Based on 11 analysts tracked in the last 3 months, 6 rate Amarin stock a Buy, while 5 say Hold. That said, at $21.14, the average price target puts the upside potential at 329%. (See Amarin stock analysis on TipRanks)To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Two aviation companies planned to combine and make one of the largest aerospace manufacturers in the world.
Wells Fargo's news will stun millions of small business owners and nonprofits that had planned to file applications for the SBA Paycheck Protection Program this week.