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Top news and what to watch in the markets on Tuesday, June 9, 2020....
(Bloomberg) -- Apple Inc. is preparing to announce a shift to its own main processors in Mac computers, replacing chips from Intel Corp., as early as this month at its annual developer conference, according to people familiar with the plans.The company is holding WWDC the week of June 22. Unveiling the initiative, codenamed Kalamata, at the event would give outside developers time to adjust before new Macs roll out in 2021, the people said. Since the hardware transition is still months away, the timing of the announcement could change, they added, while asking not to be identified discussing private plans.The new processors will be based on the same technology used in Apple-designed iPhone and iPad chips. However, future Macs will still run the macOS operating system rather than the iOS software on mobile devices from the company. Bloomberg News reported on Apple’s effort to move away from Intel earlier this year,...
(Bloomberg) -- U.S. futures and European stocks slumped as investors worried that global equity markets have run too far, too fast. Treasuries advanced with gold and the yen.Contracts on the three main American equity gauges all signaled declines at the open in Wall Street. The dollar rose against a basket of currencies for the first time in nine days. Banks and auto shares dragged the Stoxx Europe 600 Index lower. Government bonds in the European periphery slipped. A gauge of European junk-grade credit risk increased the most since mid-May. After a record-breaking rally, there are growing concerns that prices have overshot the economic recovery. The World Bank warned the global economy will contract the most since World War II this year, reducing incomes and sending millions of people into poverty in emerging and developing nations.“There are a lot of unknowns that we are dealing with despite the fact that normalizations of...
Shares in Scotts Miracle-Gro Co. (SMG) are soaring 6% in pre-market trading after the lawn product company revised its sales and earnings guidance upwards due to higher product demand.The stock jumped 6% to $147.70 in pre-market trading after Scotts Miracle-Gro said that for the fiscal year ending September 30, it now expects sales growth of 16% to 18% versus the 6% to 8% guidance provided in May.Higher sales estimates are driven mainly by stronger growth in its U.S. consumer segment, where the company sees growth of 9% to 11%, compared with its previous range of 1% to 3%. In addition, Hawthorne sales are forecast to grow 45% to 50% for the full year, compared with a recent increase in guidance of 30% to 35%.The revised guidance comes as an “unprecedented number of consumers are planting and maintaining gardens”, the company said. As a result, adjusted non-GAAP earnings are expected to be...
(Bloomberg) -- Oil dropped below $38 a barrel in New York as risky assets declined and Saudi Arabia said it would cease extra voluntary production cuts by the end of this month.Futures reversed an earlier gain to trade as much as 2.3% lower. The slide mirrored a retreat in equity markets, while Saudi Arabia said Monday that additional supply cuts, which amounted to about 1.2 million barrels a day and included contributions from allies in the Persian Gulf, wouldn’t continue beyond June.Oil has rebounded since dropping below zero in April as output cuts reduced a global glut and demand picked up following the easing of lockdown restrictions in some countries. However, with a surplus of fuels, most notably diesel, looming over oil’s recovery, Goldman Sachs Group Inc. has turned bearish in the short term due to poor returns from refining.Read: A Glut of Diesel Is Quietly Undermining Oil Price Resurgence“Global assets...
(Bloomberg) -- As a sense of euphoria sweeps through global equity markets propelling stocks to regain $21 trillion in value from a March low, the asset class is looking increasingly frothy.While stock luminaries who had advocated for a bull zone look like winners in hindsight, the debate goes on about whether the rally is a bear market bounce, doomed to end. While Asia still looks set to end the day with a gain, stocks in Europe have turned lower, poised for the worst performance in more than a week.Global equities have climbed back to levels last seen in February, when the coronavirus began spreading rapidly outside of China. The 42% surge from a March low is the best advance over an equivalent time-frame since 2009 for the MSCI ACWI Index that includes stocks in both the emerging and developed world. The gauge is now trading at 20 times next year’s profits,...
General Electric Co. (GE) said it reopened portions of its prior debt offerings as it seeks to raise $3 billion in total proceeds to bump up its cash buffers to cope with the coronavirus crisis.The company said the reopening was in “response to a reverse inquiry from a long-term strategic investor”. Shares rose 7.4% to $8.46 on Monday.GE expects to use these proceeds to reduce shorter-duration debt, including repaying a portion of GE’s intercompany debt obligations to GE Capital and lower GE Capital’s outstanding debt obligations.“The combination of transactions is expected to be leverage neutral over time,” the company said in a statement.The move builds on a number of recent leverage-neutral actions that have improved GE’s near-term liquidity by extending $4.2 billion of industrial maturities and $4.4 billion of capital maturities to date. The company added that it remains committed to achieving its leverage goals over time.Upon closing of the two...
