Written by Gary
New federal coronavirus cash should keep economy afloat until vaccines are widespread (SPY +0.9%). Neiman Marcus and J.C. Penney were some of the biggest retail bankruptcies on record.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Will Batteries Kill Off Traditional Power Plants?Many of us typically do not give much thought to the batteries that power our electronic devices other than when our cell phones, laptops, or EVs run out of juice. Fewer still associate them with our power supply since they tend to be tucked away from sight and are not nearly as imposing as the towering smokestacks of fossil fuel power plants. Yet, the humble lithium-ion battery is beginning to threaten coal and natural gas power plants as utilities everywhere increasingly plug them into the electric grid. Indeed, theres an unfolding |
| Is The Energy Transition Creating A Major Investment Bubble?Tesla this month joined the S&P 500 as the fifth-largest company on the index, after its stock skyrocketed this year, driving a lot of appetite for EV investment in general. NextEra, the solar power firm, overtook Exxon as the most valuable energy company in the United States, albeit just briefly. Everyone is talking about hydrogen. The energy transition narrative is hogging energy headlines. But what if it turns out to be one huge bubble? Not all EVs are Teslas At least half a dozen electric car startups got a boost from Teslas |
| Natural Gas Prices Plunge 10% On Extremely Bearish Weather ForecastNatural gas futures are down more than 10% on Monday morning following new weather models that suggest warmer weather is ahead. Meteorologists at BAMWXshowone model that suggests temperature anomalies for much of the country could be well above average for early January.For the next two weeks, heating degree days for US-Lower 48 will be below trend, suggesting warmer temperatures and a decline in energy use to heat homes. “I suspect, however, the forecast for January came out extremely bearish over the weekend, triggering the |
| What Big Oils $145 Billion Write-Downs Mean For The IndustryThe 2020 oil price collapse provided a reality check for the global oil and gas industry, which reassessed its price assumptions for the years ahead and readjusted the value of its assets. Expectations that oil demand will not see a V-shaped recovery in 2020 and longer-term industry challenges, including the rise of renewables and electric vehicles (EVs), had nearly every oil and gas company in the world write down, significantly, the value of its assets this year. The 2020 write-downs of Big Oil and independent producers in the U.S. and |
| Mexico Restricts Fuel Imports Of Private FirmsMexico issued during the weekend new rules that would limit fuel imports of private firms in a controversial move seen as boosting the dominant position of state oil firm Pemex. Mexicos leftist populist President Andrs Manuel Lpez Obrador came to power with the promise to increase state support for Pemex and make the state-run major the pillar of a turnaround for the countrys declining oil production. Lpez Obrador is also trying to make Mexico energy independent, and the latest legislation to |
| Russia: OPEC+ Deal Could Be Tweaked If Oil Demand Recovers FasterThe terms of the OPEC+ production pact could be revised if oil demand recovers next year faster than currently expected, Russian Deputy Prime Minister Alexander Novak, who is still in charge of coordinating Russias oil policy with OPEC, told Rossiya TV news channel in an interview on Monday. The vaccine rollout is helping global oil demand to recover, and consumption could return to pre-crisis levels during 2021, Novak said. According to the man who is the face of Russias oil policy, global oil demand could grow by between |
| The retail industry is leading the way as women take over CEO rolesA record 41 female CEOs are soon going to be leading Fortune 500 companies, with Lauren Hobart set to take over Dick’s Sporting Goods in February. |
| Biden will invoke Defense Production Act to boost Covid vaccine production, advisor saysThe wartime production law allows the president to compel companies to prioritize manufacturing for national security purposes. |
| UK expected to approve Oxford-AstraZeneca Covid vaccine this weekThe coronavirus vaccine being developed by AstraZeneca and the University of Oxford will is expected to be approved for use in the U.K. in coming days. |
| New York attorney general investigating whether clinic fraudulently obtained Covid vaccine doses, Cuomo says“We want to send a clear signal … that if you violate the law on these vaccinations, we will find out and you will be prosecuted,” Gov. Andrew Cuomo said. |
| JPMorgan is acquiring a major credit card rewards business in a bet that travel will rebound next yearJPMorgan had partnered with cxLoyalty for its popular credit-card rewards program until 2018, when the bank switched to using Expedia. |
| Stocks making the biggest moves midday: Nikola, Weibo, DoorDash & moreThese are the stocks posting the largest moves midday. |
| ‘Wonder Woman 1984’ scores highest box office opening of the pandemic, Warner Bros. fast-tracks third film“Wonder Woman 1984” had the highest opening box office of any film released domestically during the pandemic. Warner Bros. has fast-tracked a third film. |
| This chart shows how restaurant revenue has fallen, even as delivery and takeout sales soarU.S. restaurant revenue is falling as takeout and delivery orders fail to make up for lost dine-in sales. |
| The 10 biggest retail bankruptcies of 2020This year, Neiman Marcus and J.C. Penney joined the ranks of some of the biggest retail bankruptcies on record, including Sears, Toys R Us and Circuit City. |
| NY healthcare provider may have fraudulently obtained vaccine dosesA New York-based healthcare provider is under investigation for potential fraud, accused of illegally obtaining and distributing the vaccine, NBC New York reports. |
| Fauci warns of post-Christmas surge in Covid infectionsFauci warns that coronavirus infections may get another boost as Americans flock together for Christmas and New Year’s celebrations. |
| 5 things to know before the stock market opens on MondayU.S. stock futures pointed to a higher open on Monday morning as traders were set to wrap up a volatile year. |
| Op-ed: Equities likely to grow, but finding yield remains difficultBond yields likely will remain paltry in 2021, but higher yields are available from alternative fixed-income investments that individuals typically overlook. |
| Ethereum Erupts, Oil & Gold Pump’n’Dump As Tech JumpsEthereum Erupts, Oil & Gold Pump’n’Dump As Tech Jumps $600 checks for all, vaccines for all, and stocks are hitting record highs as economic data collapses…
Source: Bloomberg The message is – Biden’s here, all is well! (Oh, apart from the “dark winter” he keeps on warning about)… Crypto deserves the main headlines since Xmas Eve’s close with Bitcoin up over 15% and altcoins even more… |
| California Gov Warns LA Lockdown Likely To Be Extended; Spanish COVID Deaths Top 50K: Live UpdatesCalifornia Gov Warns LA Lockdown Likely To Be Extended; Spanish COVID Deaths Top 50K: Live Updates Summary: California Gov extends LA lockdown Spain deaths top 50K WHO says UK study shows no differences in deaths between normal, mutant strain Finland latest to confirm presence of UK mutant strain Erdogan says will receive COVID vaccine Thurs Russia extends UK travel halt Global cases top 80MM US cases decline as states see holiday-related reporting delays AZ’s CEO latest to reassure public vaccine will work for mutant strain Dr. Gottlieb joins Dr. Fauci, others in warning of “grim month ahead” Indonesia imposes temporary ban on all foreign visitors Norway shortens traveler quarantine First Japanese lawmaker dies of COVID UK to approve AstraZeneca vaccine in coming days Beijing tightens travel curbs * * * Update (1330ET): California Gov Gavin Newsom warned during a noontime (on the west coast) press briefing that the state would extend the ‘stay at home’ order affecting LA County as the city becomes the new international epicenter of the coronavirus (the worst hit city in the worst hit state in the worst hit country, according to some). And to think, all of this has happened even with all of California’s COVID-19 restrictions. Newsom warned that the second-most-populous city in the country is now seeing 12K to 15K new cases per day, which is “taking a big toll” on local hospitals. Recent reports claimed the number of ICU beds in the entire city had shrunk to as low as 30 over the past … |
| Biden COVID Advisor Urges More “Genomic Surveillance” Necessary To Stop Mutant COVID StrainsBiden COVID Advisor Urges More “Genomic Surveillance” Necessary To Stop Mutant COVID Strains With December on track to be the deadliest month for the virus since the outbreak began (more than 63K people have died in the US so far this month), Dr. Fauci and others have been in the press constantly warning that the situation is on track to worsen in January and February. And on Monday, he was joined by Dr. Celine Gounder, a clinical assistant professor of medicine and infectious diseases at NYU’s Grossman School of Medicine and member of Biden’s COVID task force, who reiterated Dr. Fauci’s warnings about already-overwhelmed hospitals being poorly equipped to handle the next wave of patients. But while the MSM focused on remarks about President Biden likely invoking the Defense Production Act to try to ensure the US catches up to its lofty vaccination targets (we’re already about 18MM behind the OWS target of 20MM doses by year’s-end), Dr. Gounder added an off-hand line about the need for using “genomic surveillance” to track mutations like the B.1.1.7 mutated “variant” that has been making headlines for the past week or so.
Offering up some math to demonstrate why the US needs to dramatically ramp up the pace of vaccinations if it wants to reach whatever the new herd immunity threshold is, Dr. Gounder insisted there is “no question” about another surge due to the number of people traveling during the holiday … |
| TSA Screens 1.28 Million Passengers At Airports On Sunday – Most Since MarchTSA Screens 1.28 Million Passengers At Airports On Sunday – Most Since March The Transportation Security Administration (TSA) released new figures Monday that showed it screened 1.28 million passengers at airports across the country on Sunday, the highest amount of travelers in one given day since mid-March.Â
Even though Sunday’s passenger volume at airports was 50% lower than the same day last year, it was the sixth day out of the last ten that volume surpassed one million. The rise in air travel comes during the holiday season as Americans come together for Christmas and New Year’s celebrations despite warnings from top public health officials. |
| Mobile roaming: What will happen to charges after Brexit?Will Britons be able to use their mobile phones in Europe after Brexit transition, without paying extra? |
| Brexit: ‘Bumpy’ period expected as UK adjusts to new EU rulesMinisters warn of “practical and procedural changes” when the Brexit transition period ends this week. |
| Game of Thrones games maker dies ‘after poisoning’Lin Qi, 39, was the founder of Chinese firm Yoozoo which developed the popular online game. |
| Want to diversify your portfolio to other EMs? Here’s where you can investœA weak dollar coupled with low interest rates globally will drive a lot of money to emerging markets, said Radhika Gupta, CEO, Edelweiss Mutual Fund. |
| Why this FMCG major looks ripe for a reratingIn FY20, its revenue growth was muted followed by a mere 1% growth in the first half of FY21. However, the trend may reverse since analysts expect a faster growth in future given the recent product launches. |
| This auto ancillary stock set to gain from new fuel efficiency normsThe Indian subsidiary of the German parent has launched new products across categories such as clutches, damping system and engine parts which offer higher value propositions to customers. |
| Economic Report: New federal coronavirus cash should keep economy afloat until vaccines are widespreadThe U.S. economy is getting a badly needed dose of adrenalin from a new round of federal aid, but growth is unlikely to accelerate sharply for a few months until the coronavirus vaccines are more widely distributed. |
| The Tell: As Dow hits new record, ‘one of the most important tailwinds for equities’ is in placeStocks are on track to end a tumultuous 2020 with a push to all-time highs, stoking fears the market has rallied too far and too fast for its own good. But the rally is accompanied by a rare round of upward revisions to earnings expectations, which have historically tended to offer a strong tailwind, according to analysts at Jefferies. |
| What’s Worth Streaming: What’s worth streaming in January 2021: ‘WandaVision,’ ‘Cobra Kai,’ ‘Dickinson’ and moreNetflix has long dominated the streaming game, but rivals such as Disney+, HBO Max and even Apple TV+ are stepping up their games |
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