Investors already braced for poor first-quarter earnings from major oil and gas companies next week will focus on how executives plan to save cash and whether they will cut dividends following the collapse in oil prices. The five biggest U.S. and European firms, known as the Oil Majors, have announced spending cuts averaging 23% in a rapid response to the precipitous fall in oil demand because of the coronavirus pandemic and a 65% slump in crude prices. With the rout likely to extend for months, the pressure on balance sheets remains extreme as very few parts of oil company businesses make money at the current oil price of $20 a barrel....
(Bloomberg) -- U.S. President Donald Trump’s comments on injecting bleach to kill the coronavirus sparked concern among experts who called it a ‘ridiculous concept’ that would damage the lungs. British Prime Minister Boris Johnson is ‘raring to go,’ but will follow doctors’ advice on returning to work.Spain had its fewest deaths in five weeks and new cases in Singapore dropped below 1,000 for the first time in five days. Russia reported the most new cases since April 19 and Germany had its worst day in almost a week, after Chancellor Angela Merkel said the country is ‘far from being out of the woods.’Earlier, Europe’s leaders inched toward an agreement on rebuilding plans, while U.S. lawmakers overwhelmingly passed a $484 billion aid bill, replenishing funding to aid small businesses and provide support for hospitals and virus testing.Key DevelopmentsVirus Tracker: Cases top 2.7 million; deaths exceed 190,000Europe grapples with lockdowns as cases drop...
(Bloomberg) -- Franklin Templeton will wind up $4.1 billion of Indian debt funds after a liquidity crisis compelled the firm to freeze investor withdrawals.The asset manager’s surprise announcement underscores persistent stress in credit markets as the coronavirus pandemic wreaks havoc on the global economy.It marked the biggest-ever forced closure of Indian funds and fueled worries of a renewed wave of withdrawals from similar products. Indian corporate bonds slumped on the news, while banks and fund managers paced declines in the country’s stock market.“There is fear in the minds of investors that other mutual funds may not be immune to the problems faced by Templeton,” said Deven Choksey, who oversees investment and research as managing director at KR Choksey Securities Pvt in Mumbai. He called on the Reserve Bank of India and other regulators to roll out further measures to support funds and financial markets.The episode is another black eye for Franklin...
(Bloomberg) -- Gold headed for a weekly advance on expectations there’ll be more stimulus measures to boost virus-hit economies, with RBC Capital Markets predicting allocations to bullion will increase, at least for now.“The combination of low rates, massive stimulus, and high uncertainty point toward gold allocations rising regardless of whether equity markets improve materially,” though that may not coincide with higher prices, analysts led by Helima Croft said in a note.Bullion held steady on Friday, trading near the highest in more than seven years as the pandemic triggers an unprecedented wave of stimulus from governments and central banks. With the global economy likely to suffer its worst downturn since the Great Depression this year, investors are seeking a haven from market turmoil pouring into exchange-traded funds backed by gold.RBC said it would buy bullion on pull-backs, at least until there’s enough momentum to begin to see an unwinding of global “whatever...
(Bloomberg) -- U.S. President Donald Trump’s comments on injecting bleach to kill the coronavirus sparked concern among experts who called it a ‘ridiculous concept’ that would damage the lungs. British Prime Minister Boris Johnson is ‘raring to go,’ but will follow doctors’ advice on returning to work.Russia reported the most new cases since April 19 and Germany had its worst day in nearly a week, after Chancellor Angela Merkel said the country is ‘far from being out of the woods.’ New cases in Singapore dropped below 1,000 for the first time in five days.Earlier, Europe’s leaders inched toward an agreement on rebuilding plans, while U.S. lawmakers overwhelmingly passed a $484 billion aid bill, replenishing funding to aid small businesses and provide support for hospitals and virus testing.Key DevelopmentsVirus Tracker: Cases top 2.7 million; deaths exceed 190,000Europe grapples with lockdowns as cases drop and economies reelMnuchin asks for equity stakes in exchange...
