27Apr2020 Midday Update: Wall Street Continues To Trade Sideways For The 14th. Session, It Is Make Or Break Time For The Markets, DOW Up 285 Points At 1 PM, WTI Slips 28% To Trade At 12.19, US Dollar Rises To 100.15

Here is the current market situation from CNN Money

North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 3.64% while U.S.’s S&P 500 is up 1.36% and Mexico’s IPC is up 0.99%.

GM suspends dividend, share buybacks as coronavirus hits sales

General Motors Co said on Monday the automaker has suspended its quarterly cash dividend on its common stock and its share buybacks to save cash in the face of the coronavirus crisis that has severely hurt global automobile sales.

Airbus to furlough 3,200 staff at Broughton factory in Wales

Airbus will furlough around 3,200 staff at its Broughton factory in Wales, the European planemaker said on Monday after it warned staff that the coronavirus crisis had put its survival at stake.

Boeing says it will need to borrow more money on coronavirus fallout

Boeing Co will need to borrow more money over the next six months and does not expect to pay dividends again for years, as the U.S. planemaker wrestles with industry fallout from the coronavirus and the grounding of its 737 MAX jet, chief executive Dave Calhoun told shareholders on Monday at its annual general meeting.

Fiat Chrysler resumes van production in Atessa, some other Italian operations

Fiat Chrysler resumed van production on Monday at its Atessa plant in central Italy, a week before the country plans to start lifting a national lockdown put in place to limit the spread of the coronavirus.

Wall Street gathers steam as U.S. states prepare to reopen

U.S. stock markets jumped more than 1% on Monday as more states prepared to ease stay-at-home orders and investors geared up for one of the busiest weeks of quarterly earnings reports, including from tech titans Apple and Microsoft.

U.S. banks gird for mad grab of another $310 billion in new small business aid

U.S. banks on Monday began another chaotic dash to grab $310 billion in fresh small business aid released by the government, after it changed some of the rules of the first-come-first-served program at the 11th hour.

Airbus warns staff on jobs with its ‘survival at stake’

European planemaker Airbus gave its starkest assessment yet of damage from the coronavirus crisis, telling the company’s 135,000 employees to brace for potentially deeper job cuts and warning its survival is at stake without immediate action.

Poland’s LOT in talks to convert Boeing Dreamliners for freight

Polish airline LOT is in talks with Boeing to modify its 787 Dreamliner jets into temporary cargo carriers, a LOT spokesman told Reuters, in a move that could help to narrow losses from the coronavirus crisis.

Adidas says worse to come as profits and sales plunge

Adidas warned of an even bigger hit to second-quarter sales and profits from coronavirus lockdowns, after the German sportswear firm reported first-quarter earnings were almost wiped out and said it had not yet seen a full rebound in China.

Boeing CEO Warns Aviation Rebound Will Take YearsÂ

Boeing CEO Warns Aviation Rebound Will Take YearsÂ

Days after President Trump floated the idea that the US government could purchase five years of airline tickets in bulk as part of a stimulus package for crippled airline carriers, Boeing CEO’s Dave Calhoun has warned that air travel growth might not return to pre-corona levels for years.Â

Tyson Foods Warns “Food Supply Chain Is Breaking”

Tyson Foods Warns “Food Supply Chain Is Breaking”

News feeds in April have been inundated with food supply chain disruption stories due to coronavirus-related shutdowns. At least a third of US meatpacking facilities handling hogs have shifted offline this month, other plants that process cows and chickens have also shuttered operations, forcing farmers to cull herds and flocks. This is because each plant closure diminishes the ability for a farmer to sell animals at the market, leaves them with overcapacity issues similar to the turmoil facing the oil industry. Only unlike oil where pumped oil must be stored somewhere (as one can’t just dump it in the nearest river) even if that ends up costing producers money as we saw last Monday when oil prices turned negative for the first time ever, food producers have a simpler option: just killing their livestock.

We previously explained what this imbalance has created: crashing live cattle spot prices while finished meat prices are soaring, which doesn’t just affect farmers but also consumers simultaneously and could spark a shortage of meat at grocery stores as soon as the first week of May. Â

$6 Trillion Contraction Could Be “Too Optimistic”, Economists Warn Eyeing Second COVID-19 Wave

$6 Trillion Contraction Could Be “Too Optimistic”, Economists Warn Eyeing Second COVID-19 Wave

Bloomberg Economics estimates that the global economy will contract 4% in 2020 due to coronavirus lockdowns. However, these estimates are overly “optimistic,” assuming a V-shaped economic recovery would be seen in the back half of the year.Â

The narrative of a V-shaped recovery before the November election has been recently drummed up by the Trump administration. Wall Street has bid stocks up in the last 24 sessions with high hopes that stimulus will stabilize asset prices, and lockdowns will be lifted across many states that would enable the economy to soar. MSCI All World has seen a near 25% gain in price on these hopes.

Blockbuster Demand For 2Y Trasury Auction Sends Yield To 8 Year Low

Blockbuster Demand For 2Y Trasury Auction Sends Yield To 8 Year Low

Just hours after the BOJ joined the global “nuclear” central bank response, when it announced the launch of unlimited QE, demand for today’s 2Y Treasury auction was not coincidentally off the charts, with the yield tumbling further to just 0.229% down from 0.390% last month, stopping through the When Issued by 1.3bps – the biggest since May 2016 – and the lowest since July 2012.

The blistering demand also manifested itself in a surge in the Bid to Cover, which soared to 3.102 from 2.362, the highest since Jan 2018 and far above the 2.51 six auction average.

The internals were quite impressive as well, with the Direct takedown doubling from 8.55% last month to 17.80%, in line with the recent average of 17.2%, and with Indirects taking down a whopping 55.81%, higher than last month’s 55.20%, and above the 49.9% six auction average, it left Dealers holdings just 26.3% of the auction, the lowest since last November.

And with a truncated issuance schedule ahead of this week’s FOMC announcement, we will get the 5Y auction in just over two hours (and the 7Y tomorrow). It will be interesting to see if we get the same blistering demand there as we just witnessed in the 2Y paper.

Overall, tremendous demand for 2Y paper which is getting precariously close to yields where the Bill complex is trading, and suggesting that sooner or later, the Fed will have to launch some form of Yield Curve Control as Zoltan Pozsar predicted to prevent Bill yields from rising above coupons.

Sewage could be the canary in India’s coronavirus coal mine

Sewage could be the canary in India’s coronavirus coal mineExperts are developing a protocol to test sewage for Covid traces in selected areas of Bengaluru and Kolkata.

Das bats for fiscal boost to prop up economy

Das bats for fiscal boost to prop up economy”Fiscal measures are important”, the RBI governor said, adding that budget gap target slippage was unavoidable.

Zoom’s biggest rivals are coming for it

Zoom’s biggest rivals are coming for itFacebook, Google are mobilising against Zoom as it has become one of the biggest beneficiaries of the outbreak.

Coronavirus update: Optimism over phased reopenings is tempered by continued concerns over inadequate testing for COVID-19 virus

The growing optimism over the phased reopening of businesses in some states and other countries, as evidenced by the rallies in the U.S. and some international stock markets on Monday, has been only slightly tempered by continued concerns over the lack of adequate testing for the COVID-19 virus.

The New York Post: Florida Governor Ron DeSantis calls state ‘God’s waiting room’

Florida Gov. Ron DeSantis sparked outrage by referring to the Sunshine State as œGod’s waiting room during a briefing about the coronavirus pandemic.

Outside the Box: Stimulus checks need to arrive faster so Americans can get all the coronavirus money Washington has promised

Protect relief checks from debt collectors and allow for immediate deposit, writes Miami Mayor Francis X. Suarez.