Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Lockdown extensions in Europe, Trump defends his record and the oil price war reached an end. Here’s what’s moving markets.
Lockdown Extension
Europe gets back to work after the Easter break with countries at different stages of the outbreak. In its most recent update, Italy’s new cases fell but the number of deaths increased as the government faces more calls from businesses to reopen. Spain’s health minister said the country has overcome the peak of the virus, while France extended its lockdown and President Emmanuel Macron said the country was under-prepared for the pandemic. In the U.K., Prime Minister Boris Johnson was released from hospital over the weekend, while the country’s lockdown is set to be extended with expectations that the daily death toll will continue to rise.
Reopening
U.S. President Donald Trump vigorously defended his record on the virus, claiming “everything we did was right,” disputing media reports that the government had been slow to ramp up testing and medical supplies and blaming state governors for not doing enough. He also said his administration will issue guidance to governors who want to relax social distancing restrictions in coming days, though some states are already working together on that, and said he hopes to open the U.S. again “ahead of schedule.” Beyond Trump, America’s slaughterhouses are starting to close after workers tested positive for the virus, while 80 million citizens should get their virus aid this week.
War is Over
The oil price war of 2020 ended after marathon talks, though how much the new agreement between producers will do to solve the problems facing the market remains to be seen. The deal that's been struck will take around 10% of oil out of the market. Trump claimed the cut would be nearly double the agreed upon figure, albeit without providing any details. Saudi Aramco, meanwhile, still cut all its May prices in a clear indication of its intent to keep its barrels competitive. Going into Tuesday, oil prices are modestly higher having pared the initial jump after the deal was announced.
Earnings Season
Earnings season will get into gear this week, starting with U.S. banks JPMorgan Chase & Co. and Wells Fargo today and with plenty of European names to follow. It's quite possible the worst news is already priced in but there will be plenty of focus on pay reductions for executives as well as on how much dividends and buybacks will be cut. Wherever your focus, it won’t be one for the faint of heart though some see plenty of trading opportunities arising.
Coming Up…
European and U.S. stock futures are pointing higher, buoyed some optimism that countries are starting to consider how and when to ease restrictions and after Chinese trade outperformed in March. Gold continued to rally amid ongoing concern about the hit to the global economy from the pandemic, a concern illustrated by Goldman Sachs predicting that advanced economies will shrink 35% in the second quarter.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- YouTube news views are booming.
- Venture funds still raised $21 billion in the first quarter.
- Planning the days for working parents who homeschool.
- The important, endangered postal service.
- U.S. disaster response isn’t ready for national disaster.
- Smartphone streaming service Quibi is embracing television.
- How to own a sports team when there are no sports.
©2020 Bloomberg L.P.