Written by Gary
Ten-year Treasury yield retreats most in over three weeks as COVID-19 infections climb (SPY -0.2%). October 2020 Consumer Credit Barely Expands.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Oil Prices Sink As OPEC+ Hype Wears OffOil prices sank over 1% on Monday, erasing the positive sentiment that the market boasted last week after OPEC+ agreed on a plan for January production. While OPEC+ agreed to add 500,000 barrels of oil production per day to its quota, it was less of an increase than its original plan had called for. The markets interpreted this as a positive sign, and, combined with positive developments with several covid-19 vaccines, oil prices rallied last week. But reports of the increasing number of coronavirus cases is threatening to dampen the optimism that |
| Next OPEC+ Ministerial Meeting Reportedly Set For January 4Oil prices are set for a volatile start to the new year, as the next OPEC+ group meeting on production policy is expected to be set for the first trading day, January 4, Argus reported on Monday, citing delegates with the OPEC+ alliance. The group managed to avoid a no-deal outcome at its last week meetings, which went on for days amid disagreements over how the OPEC cartel and its Russia-led non-OPEC partners would act next year with the pandemic still depressing fuel demand in the world. The original plan for a 2-million-bpd increase of OPEC+ |
| The OPEC+ Mission To Balance Oil Markets Is Just Getting StartedDespite theOPEC+decision to ease output cuts, oil prices have rallied over the past couple of weeks, supported by vaccine news and the start of vaccination campaigns across the world. Although the OPEC+ decision is seen as a compromise among the major group producers, the group has clearly realized that their decision is also a warning for the member states that are falling behind on their compliance targets. Adding 500,000 bpd starting from January will mean thatmany countries including Russia and Iraq which contributed |
| Can Chinas Most Popular EV Conquer Europe?A new US$4,400 China-made city car overtook the Tesla Model 3 as the best-selling electric vehicle (EV) in China this August, and has been the top-selling EV in the worlds largest automotive market since then. Wuling, a Chinese joint venture of General Motors, SAIC Motor, and Liuzhou Wuling Motors, launched the Hong Guang MINI EV in July. The car has limited range capabilities and a top speed of just 60 mph, but it has been selling like hot cakes in China due to its affordability. The starting price of the Hong Guang MINI |
| Iraqs Oil Minister Sees Oil Breaking $50 In Early 2021Oil prices are set to exceed $50 a barrel early next year, thanks to the OPEC+ production agreements, although prices are still volatile because of the pandemic, Iraqi Oil Minister Ihsan Abdul Jabbar Ismaael said over the weekend. Prices are improving, but they are still sensitive to fluctuations caused by the repercussions of coronavirus, the oil minister of OPECs second-largest producer said at an oil and gas conference in Baghdad on Sunday, as carried by Middle East Monitor. COVID-19 has crippled the oil industries, putting |
| Oil Is Key In Russias Rapprochement With AzerbaijanIt is oftentimes said that the Middle East is the most complicated region in our world, however the Southern Caucasus would certainly take issue with that assumption. The military developments in and around Nagorno Karabakh have complicated matters even further, expanding the territorial holdings of Azerbaijan and effectively perpetuating them by creating a Russian peacemaking battalion. Political developments have imminently brought about energy-relevant changes and one of the main novelties of the post-2020 world might be a much tighter Russia-Azerbaijan |
| FDA could authorize Pfizer’s Covid vaccine this week as U.S. deaths surgeThe move would be a pivotal moment in the pandemic, as public health officials say the U.S. is likely to face its worst health crisis in history this winter. |
| Yes, your boss can fire you if you refuse to get a Covid vaccineCompanies have the legal right to make Covid inoculation a condition of employment, similar to how the annual influenza vaccine is required in some workplaces. |
| U.S. needs more warehouses to handle record returns this holiday and in coming years, CBRE saysUp to $70.5 billion worth of holiday purchases this year are expected to be returned by consumers, CBRE predicts. |
| Cuomo says New York could cut indoor dining, warns of shutdowns if hospitals are overwhelmedGov. Andrew Cuomo said he is ordering hospitals to increase bed capacity by at least 25% and asking for retired nurses and doctors “to return to service.” |
| Manhattan apartment seller takes $12 million loss on Billionaires’ Row condoThe multimillion-dollar loss highlights the wealth destruction experienced by buyers who paid top dollar for the glamorous midtown super-towers. |
| David’s Bridal CEO says wedding dress demand is resilient even as Covid forces smaller celebrationsDavid’s Bridal has built up its digital business, which has helped it better navigate the coronavirus pandemic. |
| Covid deaths and cases to set U.S. records this week as officials weigh stay-at-home orders“If you’re not working to stay ahead of this virus, you’re falling far, far behind and very quickly,” San Francisco Mayor London Breed said Friday |
| Trump to sign ‘America First’ executive order on Covid-19 vaccines TuesdayTrump is expected to sign an executive order designed to promote his “America First” foreign policy with regard to Covid-19 vaccinations. |
| SpaceX’s Starlink wins nearly $900 million in FCC subsidies to bring internet to rural areasThe FCC awarded Elon Musk’s SpaceX with nearly $900 million worth of federal subsidies to support rural customers with its Starlink satellite internet network |
| Alphabet-backed Sidewalk Infrastructure Partners invests in start-up paying customers to cut energy useSidewalk Infrastructure Partners invests $100 million to build the largest distributed clean power plant in the U.S. in partnership with OhmConnect. |
| New Ford Bronco Sport may have broad appeal with its off-road chops and on-road comfortWhile the Ford Bronco has received much of the attention, the Bronco Sport, or “Baby Bronco,” is expected to outsell its larger sibling. |
| Apparel retailer Francesca’s plans to shut another 97 stores after filing for bankruptcyThe apparel chain Francesca’s plans to shut an additional 97 locations after it filed for bankruptcy protection, dealing another blow to mall owners. |
| Watch live: World Health Organization holds press conference on the coronavirus outbreak“We know it’s been a hard year and people are tired, but in hospitals that are running at, or over, capacity; it’s the hardest it can possibly be,” WHO’s Tedros Adhanom Ghebreyesus said Friday. |
| Bonds & Bullion Bid As Stocks Skid On Stimulus/Vaccine StumbleBonds & Bullion Bid As Stocks Skid On Stimulus/Vaccine Stumble Tyler Durden Mon, 12/07/2020 – 16:01 For a few brief moments today, stocks rallied to record highs and all was fixed in the world as leaked “scoops” suggested Mitch McConnell was readying a $900bn COVID Relief Bill that might just work… but then that was dismissed and algos refocused on disappointing vaccine headlines once again… 1154ET SOME STATES’ COVID VACCINE ESTIMATES USED OUTDATED FIGURES, STATE FIGURES ASSUMED MORE PFIZER SHOTS WOULD BE AVAILABLE” HHS 1200ET McConnell re-evaluating liability protection, to announce $900bn bill at 3pm 1215ET McConnell will not be announcing bill at 3pm “You shall not pass” the bill… Here’s what that looked like in markets. Nasdaq held gains while Dow and S&P were red with Small Caps trying hard to eke out some gains… |
| Moderna, Pfizer CEOs Skip White House COVID Vaccine Summit After Leaking Data To BidenModerna, Pfizer CEOs Skip White House COVID Vaccine Summit After Leaking Data To Biden Tyler Durden Mon, 12/07/2020 – 15:57 Despite repeatedly pledging to be apolitical, Pfizer and Moderna have been criticized for waiting to release their ‘Phase 3’ trial data until just days after the Nov. 3 vote, while shooting down Trump’s insistence that a vaccines would be approved in a matter of weeks as extreme hyperbole, if not an outright lie. More than a month later, Pfizer and Moderna have revealed that they remain in close contact with the Biden team. As it turns out, Biden may have been briefed on the initial Pfizer and Moderna data before President Trump, even though, at that point, Biden’s victory had been decided by the media, and the media alone, STAT News reports. |
| Bill Gross Calls On Neighbor To End Feud And Join Forces To Fight COVID-19Bill Gross Calls On Neighbor To End Feud And Join Forces To Fight COVID-19 Tyler Durden Mon, 12/07/2020 – 15:45 Weeks of courtroom drama involving PIMCO founder and ‘bond king’ Bill Gross has unearthed some wild details of a feud between two Laguna Beach neighbors – Gross, and his neighbor Mark Towfiq – that has gotten way out of hand. So much so that Gross is once again in the tabloids due to his erratic behavior and aggressive tactics. In response to Towfiq filing a complaint with the city about a lawn statue on Gross’s property, the billionaire reportedly blasted music that could drown out the ocean and the highway, terrorizing the entire neighborhood, in an effort to pressure Towfiq into withdrawing his complaint with the city. As the days of testimony wore on, Gross accused Towfiq of violating his privacy by trying to take “Peeping Tom-style” video of himself and his girlfriend, retired tennis pro Amy Schwartz. Towfiq , in turn, told the court that he had been warned about Gross even before the billionaire bought the house next door. One former PIMCO employee (Towfiq is coincidentally a former PIMCO client) even allegedly offered Towfiq his “condolences” when he heard the news, describing Gross as |
| Uranium Stock Surge Accelerates After 2nd Covid Case At World’s Highest-Grade Uranium MineUranium Stock Surge Accelerates After 2nd Covid Case At World’s Highest-Grade Uranium Mine Tyler Durden Mon, 12/07/2020 – 15:41 On Friday we discussed the surge in Uranium stocks, asking if “this is the beginning of the next ESG craze.” As a reminder, Friday’s sharp move higher took place after House and Senate lawmakers revealed a compromise version of the annual National Defense Authorization Act. According to S&P Global, the bill effectively provides for the military to continue a policy under Joe Biden that classifies the domestic supplies of certain minerals such as uranium, graphite and lithium as vital to national security. This sent most uranium companies sharply higher, with names such as Cameco rising 9.7%, Uranium Energy +10%, Energy Fuels +17%, North Short GLobal Uranium Mining +6%. On Monday, this dramatic move higher accelerated further, with most names rising double digits if fading modestly in afternoon trading as shown below: |
| Brexit: Toyota says no-deal outcome will be ‘very negative’The carmaker’s European boss tells the BBC its UK plants could become uncompetitive if no deal is struck. |
| Pound sinks as UK-EU trade talks enter ‘critical stage’Sterling at a six week low against the euro amid worries at the prospect of a no-deal Brexit. |
| Mike Ashley’s Frasers Group in Debenhams rescue talksMr Ashley’s Frasers Group eyes a bid for the chain but says there is “no certainty” it will happen. |
| Will Maruti Suzuki’s premium valuation sustain?Given the improving volume visibility and a strong line up of new models in the coming months, the country’s largest car maker is expected to sustain the premium valuation. |
| Why brokerages have raised target price on ICICI Bank‹Antique Stock Broking raised target price to Rs 570 from Rs 500 and Ambit raised it to Rs 570 from Rs 507. Nomura raised the target price to Rs 625 from Rs 525 and CLSA raised it to Rs 625 from Rs 560. |
| These midcaps are about to turn largecapsAMFI categorises stocks into large caps, mid caps and small caps based on the average market capitalisation every six months. Mutual fund schemes must align their portfolios based on the share categories. |
| October 2020 Consumer Credit Barely ExpandsWritten by Steven Hansen Headline consumer credit barely expanded and was well below expectations. Our analysis of the unadjusted data shows annual growth was insignificant and continues barely in expansion year-over-year.
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| Dispatches from a Pandemic: This is why I volunteered for the Novavax COVID-19 vaccine trial, and am still cheering for the underdog‘No, I never considered it was risky, and no, of course, I’m not getting paid. I just received my second shot a few days ago,’ writes Pierre Briançon of volunteering for a vaccine trial in London. |
| Bond Report: 10-year Treasury yield retreats most in over three weeks as COVID-19 infections climbU.S. Treasury yields fall and prices rise Monday as safe-haven assets rally in response to the new lockdown measures imposed by California amid the worsening COVID-19 pandemic. |
| The Margin: Not everybody agrees with Ivanka Trump that this photo of her father at Mount Rushmore is ‘amazing’George Washington (from left), Thomas Jefferson, Teddy Roosevelt, Abraham Lincoln and Donald Trump. Ivanka Trump labels this mixed-media version of Mount Rushmore ‘amazing.’ |
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