Jun.21 -- A new generation of social media users may have been behind the lower turnout at President Donald Trump's rally in Tulsa, Oklahoma. Some teenage TikTokers ordered tickets with no intention of attending. Sarah Frier reports on "Bloomberg Daybreak: Asia."...
Oil prices nudged higher on Monday on tighter supplies from major producers, but a record rise in global coronavirus cases raised concerns a recovery in fuel demand could stall, checking gains. Brent crude rose 8 cents, or 0.2%, to $42.22 a barrel by 0249 GMT, while U.S. crude was at $39.93 a barrel, up 10 cents, or 0.3%. Both contracts rose about 9% last week and Brent crude futures have flipped into backwardation, where oil for immediate delivery costs more than supply later, usually an indication of tightening supply....
Oil prices nudged higher on Monday on tighter supplies from major producers, but concerns that a record rise in global coronavirus cases could curb a recovery in fuel demand checked gains. Brent crude rose 9 cents, or 0.2%, to $42.28 a barrel by 0009 GMT, while U.S. crude was at $39.76 a barrel, up 1 cent. Both contracts rose about 9% last week and Brent crude futures flipped into backwardation, where oil for immediate delivery costs more than supply later, usually an indication of tightening supply....
(Bloomberg) -- Asian stocks kicked off the week with modest losses as investors mulled the impact of coronavirus outbreaks in countries from the U.S. to Australia, though U.S. futures recouped much of an early decline.S&P 500 contracts pared most of the slide of as much as 1% after Monday’s open. Shares in Japan, South Korea and Australia started lower. California reported record new cases and Florida infections jumped more than the weekly average. The Aussie was weaker as one Australian state tightened restrictions due to fresh cases. Treasuries were little changed.Markets remain vulnerable as governments gradually ease coronavirus lockdowns and travel restrictions to revive economic growth while attempting to control the spread of Covid-19. Meanwhile, China over the weekend released details of a proposed national security law that would give the mainland the right to directly prosecute Hong Kong residents for still vaguely defined offenses.“Shares remain technically overbought and vulnerable to...
(Bloomberg) -- Investors should be more selective in the next six months as asset returns are likely to diverge because liquidity “cannot paper over specific weaknesses indefinitely,” according to JPMorgan Chase & Co.An “indiscriminate approach” to a portfolio would largely have worked in April and May, when most financial assets rallied -- a typical result at a turning point in the cycle, according to strategists led by John Normand in a June 19 note. They cited extreme positioning and liquidity dynamics, plus central-bank asset purchases, as contributing to increased correlations when economies enter recessions and then move to expansions.“But typically these high correlations mean-revert to their long-term averages within a few months, in part because the pace of quantitative easing slows and in turn allows country, sector and company-specific factors to reassert themselves,” the strategists wrote. The second half of 2020 “should bring this sort of differentiation.”Read more: JPMorgan Sounds Warning...
Jun.21 -- China confirmed that a proposed national security law would allow Beijing to override Hong Kong’s independent legal system, shedding new light on a move that has stoked tensions with the U.S. and threatens the city’s status as a top financial center. Yvonne Man reports on "Bloomberg Daybreak: Australia."...
(Bloomberg) -- American Airlines Group Inc. braced its balance sheet with $3.5 billion in new financing, diverging from its recent reliance on federal aid as the coronavirus pandemic suppresses travel demand.The carrier is selling $750 million of shares and the same amount of senior convertible notes due in 2025, American said in a statement Sunday. In addition, the carrier will offer $1.5 billion in senior secured notes and said it will enter into a $500 million term loan facility.American’s actions show the broad range of tools airlines are using to bolster balance sheets amid a hesitant return to flying that for now is led largely by leisure travelers anxious to escape months of confinement. While carriers have resumed some of the domestic flights slashed when the virus hurt travel demand in late March, a full recovery is expected to take years. The largest U.S. carriers continue to burn through as much...
