Written by Gary
As COVID-19 cases rise, it underlines risks to recovery (SPY -1.9%). A final agreement on a new round of aid to the economy also remains elusive.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | The Big Oil Price Gamble: US Producers Cut Back On HedgingUS E&P companies have so far hedged 41% of their total forecasted 2021 oil output at an average price floor of $42 per barrel (Nymex WTI equivalent), lower than this years floor of $56 per barrel, a Rystad Energy analysis shows. Gas has proven more resilient as more than 45% of the expected production is hedged at a Henry Hub base floor price of $2.58 per MMBtu, marginally lower than 2020s $2.70 per MMBtu. Hedging strategies of US upstream operators have taken center stage as a tool that is helping companies cushion their cash |
| Hedge Funds Boost Bullish Oil BetsPortfolio managers increased their bullish bets on crude oil futures and options in the week to October 20 by the most since April, according to the latest commitment of traders report with data from exchanges. The jump in longs in Brent Crude and WTI Crude coincided with increased market speculation earlier this month that OPEC+ would likely postpone the easing of the ongoing production cuts until global oil demand strengthens, Reuters columnist John Kemp commented on Monday. In the week to October 20, money managers bought the equivalent of 55 |
| OPEC Chief Sees Still Anemic Oil Demand RecoveryGlobal economic and oil demand recovery is still anemic, OPEC Secretary General Mohammad Barkindo said on Monday, but noted that the cartel doesnt see another plunge in demand like in the second quarter. We do not expect a relapse to the massive contraction that we saw in the second quarter, Barkindo said at the virtual 2020 India Energy Forum by CERAWeek on Monday. We remain cautiously optimistic that the recovery will continue. It may take longer, maybe at lower levels, but we are determined to stay the |
| BP CEO: Second Wave Of COVID Hits Oil Demand Harder Than ExpectedThe second wave of coronavirus cases in the world is impacting global oil demand maybe a little bit more than we thought in the second half of this year, BPs chief executive Bernard Looney said on the virtual 2020 India Energy Forum by CERAWeek on Monday. In terms of oil demand, undoubtedly there has been an impact this year, probably less than we thought in the first half of the year, and maybe a little bit more than we thought in the second half of the year as the second wave of infections come in around the world, |
| Gulf Of Mexico Oil Drillers Evacuate Ahead Of Storm ZetaAnother storm is headed to the U.S. Gulf of Mexico this week, prompting oil and gas operators in the area to start evacuating platforms again. BP, for example, said it was closely monitoring Tropical Storm Zeta in the Caribbean Sea on Sunday to ensure the safety of its personnel and operations in the deepwater Gulf of Mexico. With forecasts indicating the storm will move across the Central and/or Northeastern Gulf of Mexico in the next few days, we are taking steps to respond. bp has begun securing its offshore facilities and evacuating |
| UK Armed Forces Storm Oil Tanker After Suspected HijackingThe UK armed forces boarded an oil tanker off England on Sunday evening, ending a 10-hour standoff in which stowaways on the vessels had threatened the crew in what UK authorities described as a suspected hijacking. Seven individuals have been detained, while all 22 crew of the oil tanker are safe and well, the UK authorities said, after the Special Boat Service (SBS) put an end to the 10-hour standoff with an operation that lasted just nine minutes. The Nave Andromeda crude oil tanker, traveling under the flag of Liberia, |
| From trivia nights to college classroom rentals: How theaters are surviving without new moviesThe combination of capacity restrictions, reluctant patrons and so few new films, cinema operators have had to adapt and become creative in order to make money. |
| Lordstown Motors shares pop in volatile Nasdaq trading debutShares of Lordstown Motors surged by nearly 20% before cooling off during the company’s public debut on the Nasdaq. |
| Average daily new coronavirus cases in U.S. hit all-time high, Gottlieb warns of ‘exponential spread’The worrying rise in new cases come after White House chief of staff Mark Meadows acknowledged that the U.S. is not going to control the pandemic. |
| Dunkin’ stock soars after chain confirms sale talks with Inspire BrandsShares of Dunkin’ surged 15% after the company confirmed sale talks with Inspire Brands. |
| Trump claims the worsening U.S. coronavirus outbreak is a ‘Fake News Media Conspiracy’ even as hospitalizations riseTrump has repeatedly downplayed the virus and has insisted that the U.S. has more cases than any other country only because the nation tests more people. |
| How Popeyes is trying to beat Chick-fil-A in the chicken sandwich warsFor much of Popeyes’ history its Louisiana-style menu featured items like fried chicken, chicken tenders and fried shrimp. But after nearly 50 years in business, it hadn’t sold a chicken sandwich nationwide. |
| WHO says getting the worsening Covid outbreak under control may require ‘sacrifice for many, many people’As new cases accelerate in the Northern Hemisphere, particularly in the U.S. and Europe, some countries may need to impose stricter virus measures again, the WHO said. |
| Dr. Scott Gottlieb: U.S. at Covid ‘tipping point’ but can still prevent new ‘exponential spread’Implementing targeted restrictions now could forestall a worse coronavirus outbreak during fall and winter, former FDA chief told CNBC. |
| Hopes are rising for a potential Covid vaccine ” and Fauci says findings will be known by early DecemberDr. Anthony Fauci believes it will only be a matter of weeks before the findings of a potential vaccine will be known. |
| Business leaders pride themselves on their ability to pivot and course-correct in times of crisis and economic turmoil. But there isn’t a CEO or management team on earth that’s experienced the health, financial and operational headwinds that have resulted from the coronavirus pandemic. |
| AstraZeneca says its coronavirus vaccine triggers immune response among adultsThe announcement is likely to boost hopes of a Covid vaccine being developed before the end of the year. |
| Watch live: The World Health Organization holds a press briefing on the coronavirus as pandemic worsens in the U.S.The WHO is holding a briefing on the Covid-19 pandemic. |
| Stocks making the biggest moves midday: Hasbro, Dunkin’ Brands, AstraZeneca, Delta & moreHasbro shares fell after the company reported mixed results for the previous quarter. Dunkin’ Brands jumps on news it may go private. |
| Stimulus Stalemate & SAP Slam Stocks, Hopes Crushed On COVID Chaos, Cresting ‘Blue Wave’Stimulus Stalemate & SAP Slam Stocks, Hopes Crushed On COVID Chaos, Cresting ‘Blue Wave’ Tyler Durden Mon, 10/26/2020 – 16:01 So this happened (in the US)… |
| Iconic Barbershop In NYC’s East Village Closes After 73 Years In Business Due To COVIDIconic Barbershop In NYC’s East Village Closes After 73 Years In Business Due To COVID Tyler Durden Mon, 10/26/2020 – 15:50 Today in “the solution can’t be worse than the problem” news… Astor Place hairstylists is closing down after 73 years of doing business in the East Village. The iconic hair salon has become the latest victim of both the coronavirus pandemic and the draconian shutdown measures that New York City has had to endure for months. |
| How Traders Are Responding To Today’s VIX Surge And Put/Call SpikeHow Traders Are Responding To Today’s VIX Surge And Put/Call Spike Tyler Durden Mon, 10/26/2020 – 15:44 Earlier this morning, our “Greek geek” friends at SpotGamma pointed out that SPX 3,400 was a critical support for the market as it represented the so called Zero Gamma, or the level at which dealer gamma flipped from positive to negative (below which selling becomes self-reinforcing due to delta-hedging of puts by dealers), and as such a drop below 3,400 “could add some selling pressure.” |
| Health Expert: Mask Wearing Will Remain Mandatory Even After A COVID VaccineHealth Expert: Mask Wearing Will Remain Mandatory Even After A COVID Vaccine Tyler Durden Mon, 10/26/2020 – 15:19 Authored by Paul Joseph Watson via Summit News, A top doctor who served as an expert witness for the U.S. Congress says that even after a COVID-19 vaccine is available, mask wearing and other social distancing measures will remain mandatory. |
| Stock markets slide as Covid-19 cases riseThe Dow falls 2.5% and the S&P 500 drops more than 2%, on track for its sharpest decline in weeks. |
| Uber sued by drivers over ‘automated robo-firing’Uber drivers claim they were wrongly dismissed by an algorithm without a right to appeal. |
| Jack Ma’s Ant Group set for record $34bn stock market listingThe Chinese firm is set for the biggest stock market listing ever, beating Saudi Aramco’s $29bn flotation. |
| Can a special dividend by L&T trigger upside in the stock?In early September, L&T received Rs 14,000 crore from the sale of its electrical and automation division to Schneider Electric. A portion of the net proceeds of around Rs 11,500-Rs 12,000 crore after deducting the capital gains tax, will be utilised towards paying the dividend. |
| Jack Ma’s Ant seeks to raise $35 billion in biggest-ever IPOThe company may raise another $5.17 billion if it exercises it Hong Kong and Shanghai green shoe options. That would give Ant a valuation of about $320 billion, making it bigger than JPMorgan Chase & Co. and four times larger than Goldman Sachs Group Inc. |
| Persistent Systems expects to retain momentum in Q3 on hopes of recovery in IP revenueThe Pune headquartered mid-tier IT company is among the few software exporters to report a sequential revenue growth in the June as well as September quarter. |
| Market Snapshot: Dow down more than 700 points as rise in COVID-19 cases underlines risks to recoveryStocks stumble Monday as the number of daily U.S. COVID-19 infections hit a record at the end of last week and a final agreement on a new round of aid to the economy remains elusive. |
| : France-Turkey row reaches new highs after ErdoÄŸan hurls insults at MacronThe French government said on Sunday it would recall the country’s ambassador in Ankara, after Turkish President Recep Tayyip ErdoÄŸan insulted French President Emmanuel Macron in a series of speeches. |
| : Europe tightens restrictions in desperate race against second wave of COVID-19The local and regional lockdowns in most European countries now threaten the region with another devastating economic blow. |
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