(Bloomberg Opinion) -- An oil major’s dividend is its solemn pledge that it will deliver no matter the vagaries of the market. But no one planned on those vagaries including negative oil prices. So can Big Oil maintain its dividends? Should it?As so often in this business, oilfield services provide early warning. Announcing quarterly earnings, Schlumberger Ltd. slashed its dividend by 75%, its first cut in at least four decades or so. The stock actually jumped 9% that day. Meanwhile, Halliburton Co. held off cutting but also made it clear it would have no qualms doing so if necessary. Its stock didn’t jump, but did close in the green despite oil closing with a minus sign in front of it that day.Those positive reactions may have had something to do with this:Aggregate indebtedness at the big five Western oil majors — BP Plc, Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA — has...
(Bloomberg Opinion) -- An oil major’s dividend is its solemn pledge that it will deliver no matter the vagaries of the market. But no one planned on those vagaries including negative oil prices. So can Big Oil maintain its dividends? Should it?As so often in this business, oilfield services provide early warning. Announcing quarterly earnings, Schlumberger Ltd. slashed its dividend by 75%, its first cut in at least four decades or so. The stock actually jumped 9% that day. Meanwhile, Halliburton Co. held off cutting but also made it clear it would have no qualms doing so if necessary. Its stock didn’t jump, but did close in the green despite oil closing with a minus sign in front of it that day.Those positive reactions may have had something to do with this:Aggregate indebtedness at the big five Western oil majors — BP Plc, Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA — has...
Oil prices rallied on Wednesday morning after U.S. President Trump hinted at war with Iran, tweeting that the U.S. Navy is authorized to shoot and destroy Iranian gunboats harassing U.S. ships at sea...
The Euro rallied slightly during the trading session on Wednesday, but as you can see is not really going anywhere at this point. More than likely, this is a market that will continue to see a lot of negativity going forward but in a slow manner....
U.S. Treasury Secretary Steven Mnuchin warned on Wednesday that companies that received coronavirus rescue money intended for small businesses could be investigated if it appears they did not really need the money. Mnuchin said on Fox Business Network it was "questionable" whether some larger companies qualified for the Paycheck Protection Program (PPP), based on a self-certification step in the loan process. As Congress readies another $310 billion in payroll loan funds for small businesses shut down by the coronavirus, Mnuchin's comments indicate the administration is paying more attention to oversight during this round of funding....
U.S. Treasury Secretary Steven Mnuchin warned on Wednesday that larger companies could face investigation if they apply for small business coronavirus rescue money without carefully reviewing whether they qualify for it. Mnuchin said on Fox Business Network it was "questionable" whether some larger companies could make the certifications necessary for the Paycheck Protection Program, and firms needed to look carefully at the certifications they make to the Treasury and the Small Business Administration to get forgivable loans of up to $10 million. The U.S. House of Representatives is set to vote on a new rescue bill that provides another $321 billion to the program aimed at keeping employees at temporarily closed businesses on the payroll after an initial $350 billion ran out in less than two weeks....
