Written by Gary
US unemployment rolls swelling as coronavirus restrictions bite (SPY +1.3%). It’s been a while since we used the headline “Futures surge on trade talk optimism” but here we are again.
Here is the current market situation from CNN Money | |
 | European markets are sharply higher today with shares in France leading the region. The CAC 40 is up 1.29% while Germany’s DAX is up 1.12% and London’s FTSE 100 is up 1.08%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | Rolls-Royce signals job cuts as lowers engine output forecastBritish aero-engine maker Rolls-Royce signalled on Thursday it expects to cut some of its workforce, after reports that it was considering cutting up to 8,000 jobs to weather a global aerospace sector slump. |
| Air France job cuts to test CEO Smith’s consensual styleAir France-KLM is opening talks with its French unions on workforce cuts, Chief Executive Ben Smith told Reuters, as the airline group warned of mounting losses with no clear end in sight to the coronavirus crisis. |
| Air France-KLM boss right to tackle subject of jobs: ministerAir France-KLM Chief Executive Ben Smith is right to tackle the subject of jobs at the struggling airline, said French government minister Jean-Baptiste Djebbari on Thursday, as trade unions brace for possible cuts. |
| U.S. unemployment rolls seen swelling as coronavirus restrictions biteMillions more Americans likely sought unemployment benefits last week, suggesting a broadening of layoffs from consumer facing industries to other segments of the economy and could remain elevated even as many parts of the country start to reopen. |
| BT scraps dividend, invests in fibre as rivals agree mergerBritain’s biggest telecoms group BT suspended its dividend and said it would spend billions more on faster fibre broadband connections, as it prepares to meet the challenge posed by the merger of two of its biggest rivals. |
| China trade data lifts futures ahead of jobless claimsU.S. stock index futures jumped on Thursday after a surprise rise in Chinese exports and a surge in oil prices spurred hopes of an economic recovery, even as investors braced for what is likely to be another gloomy weekly jobless claims report. |
| JetBlue reports loss, revises Airbus orders to save $1 billion through 2022JetBlue Airways Corp on Thursday posted a $268 million quarterly loss as the coronavirus pandemic hurt air travel demand, and revised its order book with Airbus SE to save $1.1 billion in aircraft spending through 2022. |
| GSK sells $3.4 billion Hindustan Unilever stake in largest India block tradeGlaxoSmithKline has sold its stake in Unilever’s Indian business for $3.4 billion, marking India’s largest block trade, which will help the British company in its goal of reinvigorating its drug development pipeline. |
| Apple awards $10 million to nasal swab maker COPAN Diagnostics to help boost factory outputApple Inc said on Thursday that it was awarding $10 million to a maker of nasal swabs and other materials for collecting samples for Covid-19 tests in a move aimed at boosting the swab maker’s production to 1 million collection kits per week by early July. |
| COVID-America: 73,400 Dead; 33 Million Jobless; Stocks SoaringCOVID-America: 73,400 Dead; 33 Million Jobless; Stocks Soaring Following a 1576.9% YoY surge in job cuts, according to Challenger, Gray, and Christmas… |
| BoE Warns Of Worst Economic Slump In 300 YearsÂBoE Warns Of Worst Economic Slump In 300 Years The Bank of England’s Monetary Policy Committee (MPC) “voted unanimously” to keep the banking rate at 0.1% and left its bond-buying program unchanged despite the country’s worst economic slump in 300 years, caused by coronavirus lockdowns. MPC voted 7-2 to leave its bond-buying program unchanged at £645 billion. Two of its nine policymakers (Michael Saunders and Jonathan Haskel) voted to increase the program by £100 billion. The BoE described the economic impact of COVID-19 was “having a significant impact on the United Kingdom and many countries around the world,” adding that economic activity has stumbled since 1Q20 and unemployment “has risen markedly.” The Bank outlined an “illustrative scenario” that shows a 14% plunge in the British economy in 2020, followed by a V-shaped recovery in 2021. It said very significant monetary and fiscal stimulus is required for a recovery to play out. |
| New Coronavirus Cases Surge To Highest Level In 2 Weeks: Live UpdatesNew Coronavirus Cases Surge To Highest Level In 2 Weeks: Live Updates Summary: New cases reported Wednesday highest in 2 weeks Global case total tops 3.75 mil Belgium prepares to reopen most shops Monday CNN says 43 states will be ‘partially or mostly open’ by next week Brazilian villages slam lack of lifesaving medical equipment Moderna shares spike as 2nd phase vaccine trial set Japan grants emergency approval to remdesivir Teva shares explode higher Nigeria extends flight ban Vietnam still hasn’t reported a single death from COVID-19 *Â Â Â Â Â Â Â Â Â Â *Â Â Â Â Â Â Â Â Â Â Â * As more US states and countries move ahead with reopening their economies, Johns Hopkins said it had recorded the largest number of new coronavirus infections worldwide on Wednesday in two weeks, the latest sign that reopening economies has led to a slight pickup in the infection rate. New confirmed infections on Wednesday topped 92,700, the most since April 24 and the 4th-highest daily total yet. With ~24,300 cases, the US accounts for about a quarter of the above total. Total confirmed coronavirus cases are nearing the 4 million mark, with 3,772,267 reported as of Thursday, along with 264,189 deaths. 1,228,609 of those cases were from the US, along with 73,431 deaths. In Europe, Belgium announced Thursday that shops in the country would be allowed to reopen on May 11, the latest western European country t … |
| Futures Soar On Chinese Exports, Trade Talk Optimism, Oil SpikeFutures Soar On Chinese Exports, Trade Talk Optimism, Oil Spike It’s been a while since we used the headline “Futures surge on trade talk optimism” but here we are again. US equity futures rebounded from Wednesday’s slump, climbing alongside stocks in Europe on Thursday following an unexpected jump in Chinese exports and, drumroll, optimism of trade talks between the US and China, while Asian shares mostly fell as investors sift the latest company earnings and brace for more data that will show the extent of the fallout from the coronavirus. Oil jumped after Saudi Arabia announced a sharp cut in discounts to clients around the globe. |
| Kishore Biyani’s Future now hinges on stake sale to AmazonKishore Biyani’s Future now hinges on stake sale to AmazonKishore Biyani is planning to sell a massive stake to Amazon in an attempt to keep its crown jewel afloat. |
| Red carpet for American cos ditching ChinaRed carpet for American cos ditching ChinaTrump’s move to blame China for the Covid-19 outbreak is expected to worsen global trade ties. |
| India’s aviation is heading for a jumbo crashIndia’s aviation is heading for a jumbo crashThe aviation sector may take at least 6-8 quarters to reach pre-pandemic levels. |
| Key Words: A wave of bankruptcies, surging taxes, and Americans harboring lasting scars from coronavirus lockdowns ” the head of world’s largest asset manager warns of grim outlookThe era of coronavirus has been a hard one on the American psyche but the CEO of one of the world’s largest asset managers cautions that everyone should brace for even rougher days ahead, as the U.S. attempts to emerge from the worst public-health crisis in more than a century. |
| Need to Know: The U.S. economy may already have clawed back 5 million jobs of the 20-million-plus positions eliminated during the pandemicThe jobs situation may not be as bad as the April jobs report will show. |
| Economic Report: Jobless claims jump 3.2 million in early May, but historic rate of layoffs is slowingAlmost 3.2 million people applied for unemployment benefits last week after the coronavirus cost them their jobs, but the historic wave of layoffs tied to the pandemic is receding. |
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