(Bloomberg) -- U.S. equity futures tumbled with stocks globally on Thursday as fears of a second wave of the virus and a cautious outlook from the Federal Reserve clouded hopes for a speedy economic recovery.Contracts on the S&P 500 Index extended their losses by as much as 2% a day after Fed Chairman Jerome Powell suggested the pandemic could inflict long-lasting damage on the economy. Reports of coronavirus infection rates jumping in parts of America added to the risk-off mood. The Stoxx Europe 600 Index sank, with sectors scooped up in the recent rally such as banks and travel leading declines.Treasuries continued higher alongside German bunds on haven demand, while the dollar rebounded from Wednesday’s losses.“This is the first time we’ve had a little bit of negative newsflow recently” on developments in the coronavirus, Dean Turner, economist at UBS Global Wealth Management, told Bloomberg TV. “Put that in the context of...
(Bloomberg) -- U.S. President Donald Trump sets off on a road trip on Thursday intended to underscore his commitment to reopening the nation as soon as possible. Meanwhile, a second wave of cases in America is raising alarm after new infections pushed the overall count past 2 million.In Britain, Prime Minister Boris Johnson is battling to contain a public split with his own top scientific advisers, after they warned the government must learn from the catalog of failures it made during the coronavirus crisis.Stocks tumbled as the Federal Reserve indicated the pandemic could inflict lasting damage. Job losses mounted, with London’s Heathrow airport starting permanent cuts. U.K.-listed Centrica and Johnson Matthey also unveiled plans to reduce their workforce.Key Developments:Virus Tracker: Cases pass 7.3 million; deaths exceed 416,000Trump’s slipping polls make GOP holding Senate more dauntingProtester in Australia tests positive after attending rallyDisney to reopen California Disneyland in July; Coachella canceledLife and...
(Bloomberg) -- Venezuela’s fall from oil superpower to failing producer can be illustrated in one image: a single drilling rig working the world’s largest oil reserves.As fields across the nation shut amid a relentless U.S. campaign to cut Venezuela off from global oil markets, the number of rigs drilling for crude fell to just one in May, according to data from Baker Hughes. Another lone rig was drilling for gas.That marks a 96% decline since January, when drilling fell to levels not seen since 1963. Having a single active crude rig takes the country back to the beginning of its oil industry, well before it became a founding member of the Organization of Petroleum Exporting Countries. The development underscores the toll that U.S. sanctions have taken on the nation as President Donald Trump escalates efforts to remove Venezuelan President Nicolas Maduro from power.State-owned oil company Petroleos de Venezuela SA has been...
(Bloomberg) -- A massive wave of corporate distress is pitting beleaguered companies against their lenders in brawls that are shaping up to be nastier than ever before.Desperate firms and their private equity owners are seeking to take advantage of years of weakening creditor protections to help cut obligations and raise cash after the coronavirus outbreak brought businesses to a standstill. Be it via allowances written into borrowing documents when times were good or simply loopholes in deal terms, they’re siphoning collateral and transferring assets while pushing deeply discounted debt swaps onto investors, who risk seeing the value of their bonds and loans plunge if they don’t go along.Still, money managers aren’t just rolling over. Credit powerhouses like GSO Capital Partners, BlackRock Inc. and HPS Investment Partners have lined up scores of lawyers and financial advisers to defend their interests, often finding themselves at odds with one another as they fight for...
