20Oct2020 Midday Update: Stimulus Hopes Lift Stocks Ahead Of Pelosi, Mnuchin Call, DOW Up 270 Points At 1 ET, WTI Crude Higher At 41.16, Google Targeted In Antitrust Suit Filed By DOJ

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 1.38% while Mexico’s IPC is up 1.25% and U.S.’s S&P 500 is up 0.72%.

Prepare For More U.S. Shale Mergers And Acquisitions

The consolidation in the U.S. shale patch is picking up pace after the crash in oil prices earlier this year. The latest big transaction in the U.S. oil industry involved the largest independent oil and gas producer ConocoPhillips buying Permian-focused Concho Resources in an all-stock deal valued at US$9.7 billion. The transaction will create a giant shale player with combined oil production in the Permian to rival the likes of Chevron. The new ConocoPhillips will be the largest independent oil and gas company, with pro forma

Poland Strikes $18 Billion Nuclear Power Deal With U.S.

The United States and Poland closed a nuclear power deal potentially worth $18 billion as the Central European country seeks to reduce its reliance on coal and Russian natural gas. While the deal is not yet final, there is a pretty good chance that Warsaw will pick the U.S. over its main competitors on the international nuclear energy scene, namely China and Russia. We are hopeful that the ultimate decisions that are made by Poland … over a period of time will result in them choosing U.S. technology, Energy Secretary Dan Brouillette

Three Energy Stocks To Watch On Election Day

With the U.S. presidential elections just two weeks away, the U.S. energy sector is facing one of those nail-biting moments where nobody seems to agree on what the future holds for the sector with the prospect of two very different presidential candidates. On the one hand, president of fracking company Reliance Well Services Dan Doyle has made a pretty convincing case that U.S. shale could be doomed under a Biden-Harris presidency despite the pair striking a centrist tone. On the opposite end of the spectrum, Goldman Sachs counters by arguing

Alberta Gives Oil Industry Much-Needed Tax Break

The Alberta provincial government has granted oil companies a three-year municipal property tax break to help them cope with the latest crisis, which hit before they had managed to recover from the last one, making their situation even more precarious than that of oil companies elsewhere. Supports to energy companies will include an exemption from property taxes for three years when drilling new wells and building new pipelines, the provincial government said in a news release. It will also cancel a well drilling equipment tax for

This Deal Could Create The Next Big Shale Giant

Just a day after ConocoPhilips announced it will buy Concho Resources, another U.S. oil major was reported to be in talks to buy a fellow driller. Pioneer Natural Resources is negotiating the acquisition of Parsley Energy, the Wall Street Journal reported late on Monday, citing unnamed sources familiar with the talks. According to them, the deal would be an all-stock transaction and could be finalized by the end of the month. Parsley Energy has a market value of some $4.17 billion and about $3.123 billion in long-term debt. The company reported

OPEC+ Is On The Brink Of A Crisis

The OPEC+ member countries are on the brink of a financial crisis if the latest assessments of the International Monetary Fund (IMF) are accurate. The IMF has presented a very bleak outlook for an economic recovery in the Middle East and Central Asia, predicting a 4.1% contraction for the region. The main driving factor behind this bearish outlook is the IMFs forecast that oil prices will remain in the $40 to $50 range in 2021. An extension of the current low oil price environment for another year would badly hurt oil and gas exporting countries,

GM’s official run at Tesla starts with its electric Hummer debut Tuesday night

As the Ford Bronco and Jeep Wrangler are set to battle over traditional off-road supremacy next year, General Motors has its sights set on a different competitor: Tesla.

AMC warns bankruptcy is on the table as cash runs low

AMC has agreed to sell as many as 15 million shares of its stock, but equity in the company could soon be worthless if the largest theater chain in the world files for bankruptcy.

Coronavirus likely to become as ‘endemic’ as the flu and a vaccine might not be able to stop it, top UK scientist says

A vaccine is not likely to eradicate the Covid virus, the U.K.’s chief scientific advisor said.

GM to invest more than $2 billion in U.S. manufacturing to increase electric vehicle production

General Motors is investing about $2.2 billion in its U.S. manufacturing operations, largely to increase production of electric vehicles.

From air fryers to spin bikes: Lowe’s bets on new categories this holiday season

Lowe’s has a broader mix of merchandise this holiday season, from air fryers to bedding and toys.

Procter & Gamble beats estimates as sales jump 9%, raises forecast amid strong demand

Procter & Gamble now expects sales growth of 3% to 4% during fiscal 2021, up from its prior forecast of 1% to 3%.

Coronavirus ‘circuit breakers’ and ‘firebreaks:’ What are they and do they work?

The term “circuit breaker” has become common parlance in the U.K. in recent weeks, as the country searches for a way to curb the second wave of the coronavirus in a short, sharp way.

A majority of U.S. states are now on New York’s Covid travel restriction list, Cuomo says

People traveling to New York from 43 states and territories are now required to quarantine for two weeks upon arrival, Gov. Andrew Cuomo said on Tuesday.

Stocks making the biggest moves midday: IBM, AMC Entertainment, Logitech, Travelers and more

These are the stocks posting the largest moves in midday trading.

Covid is accelerating across the globe as U.S. and Europe head into flu season

The pandemic is accelerating with U.S. cases climbing and at least 10 other countries and now reporting record highs in average daily new cases.

This chef got Covid, got laid off and then became a homebuilder

As housing demand soars, the acute labor shortage in the home construction business is providing new opportunities to unemployed workers in other fields.

Shoppers plan to visit fewer stores than ever this holiday season, survey says

Holiday shoppers want to visit fewer stores and finish their gift list in record time this year, a new survey from Deloitte found.

UK taps Open Orphan to explore vaccine trials that infect volunteers with coronavirus

The Covid-19 human challenge study model could potentially speed up the development of a vaccine. But bioethicists warn about potential harms.

Why Do We Put So Much Faith In Central Bankers?

Why Do We Put So Much Faith In Central Bankers? Tyler Durden Tue, 10/20/2020 – 12:15

Authored by Michael Maharrey via SchiffGold.com,

Well-known management consultant Peter Drucker perfectly described the predicament faced by central bankers.

“You can’t manage what you can’t measure.

So why do we put so much faith in central bankers?

Mystery Trader Shocks Market With Giant VIX Put Trades

Mystery Trader Shocks Market With Giant VIX Put Trades Tyler Durden Tue, 10/20/2020 – 11:56

While everyone is familiar with the exploits of the notorious vol trader Ruffer LLP, better known in the market as “50 cent” for his penchant for buying deep OTM VIX calls which while usually expiring worthless, occasionally make a killing, such as the $2.6 billion the fund made during the March crash when VIX soared, a new and heretofore unknown player has emerged in the vol space. And because this particular trader’s bet appear to be on a reduction in volatility Perhaps we can call him minus 50 cent?

According to Bloomberg, which first reported the mystery trader’s exploits, so large were the fund’s block trades that it moved the market’s entire Put to Call ratio from near record lows to the highest in a decade!

The fund was most likely buying a giant put spread in a massive bet that the VIX which is currently at 29 will tumble to 17 by February, or just after the inauguration date. According to Bloomberg, the unknown trader bought and sold some 360,000 put options, sending volume in those contracts soaring and moving the broader put-to-call measure, which has been declining in recent months, to 3.5, the highest level since 2009. And all that from one trade.Â

Can America Do It All?

Can America Do It All? Tyler Durden Tue, 10/20/2020 – 11:35

Authored by Pat Buchanan via Buchanan.org,

In fiscal year 2020, which ended on Sept. 30, the U.S. government set some impressive new records.

The deficit came in at $3.1 trillion, twice the previous record of $1.4 trillion in 2009, which was set during the Great Recession, and three times the 2019 deficit of about $1 trillion.

Federal spending hit $6.5 trillion, one-third of U.S. gross domestic product, a share unrivaled except for the later years of World War II when federal spending exceeded 40% of GDP.

The U.S. national debt, $14 trillion when Donald Trump took office, now stands at $21 trillion, roughly the same size as U.S. GDP.

In fiscal year 2021, the deficit could be of the same magnitude as 2020.

Why so? First, the economy is not fully recovered from the 2020 depression. Unemployment is still near 8%. Nancy Pelosi has already proposed $2.2 trillion in new spending to battle the effects of the coronavirus pandemic in the first month of this fiscal year. And COVID-19 cases are spiking again.

With the national debt already equal to the GDP, and growing faster now, a question arises: Where does this end?

Ireland Imposes New Fines For Violating Europe’s Most Restrictive Lockdown: Live Updates

Ireland Imposes New Fines For Violating Europe’s Most Restrictive Lockdown: Live Updates Tyler Durden Tue, 10/20/2020 – 11:23

Summary:

Ireland announces new fines for violating lockdowns

Belgium overtakes Netherlands as worst hit country last week

India sees lowest new cases in 3 months

Kansas nursing home sees all its patients infected

Moderna CEO says expects to apply for FDA EUA in December

Australia sees another shipborne outbreak

Russia outbreak worsens

Argentina tops 1 million cases, 5th country to do so

Singapore Airlines to resume non-stop flights to NY

Chinese officials in Qingdao claim to have detected live virus on frozen food packaging

* * *

Update (1100ET): After Ireland announced plans to force all bars and restaurants and other “non-essential” businesses to close once again – for a period of between 4-6 weeks – as Ireland embarks on another national lockdown, officials have unveiled a system of fines for anyone found holding a house party in breach of government restrictions, according to Irish Finance Minister Paschal Donohoe, who discussed the issue with reporters.

Google hit by antitrust charges in US over search

The US Justice Department accuses Google of disadvantaging its rivals in search and advertising.

Working lunch ‘loophole’ hope for pubs and restaurants

Hospitality chiefs are seeking clarity over whether business lunches are exempt from Covid restrictions.

UK job losses ‘could be larger than forecast’

The unemployment rate could rise above current predictions, a Bank of England policymaker warns.

Is it the right time to invest in stocks of banks, NBFCs?

Speculative bullish positions in the derivatives segment are building up in both banking and NBFC stocks even as worries remain over the fate of interest payments and recoveries of advances.

Brokerages upgrade earnings estimates and price targets of these stocks

US headquartered Jefferies said in a note last week that it expects capacity utilization of cement companies to improve to 65% in FY23 from an expected 60% in FY21 thanks to a swifter recovery in demand.

Markets are divesting you from fossil fuels

In 2008 energy was the S&P 500’s second-largest sector by weight, right behind information technology. Energy, one of the S&P 500’s 11 sectors, is made up entirely of oil and gas and oilfield services companies in the index, and over the past 12 years its heft has diminished.

: U.S. and allies take on Russia for ‘malicious’ military intelligence cyberattacks on Olympics and elections

Six Russian intelligence officers have been charged for alleged destructive cyberattacks against western interests from 2015 to 2019.

Paul Brandus: Biden and Trump agree on this one key part of foreign policy

Joe Biden’s stance has toughened since he supported China’s entry into the World Trade Organization two decades ago. Trump has been hammering the Asian nation for years.

Encore: Social Security benefits will increase by 1.3% in 2021

A modest increase reignites the debate over the appropriate price index