Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Brent crude futures are following WTI’s lead, the coronavirus picture remains mixed across Europe and Netflix Inc. had a bumper quarter. Here’s what’s moving markets.
Brent Slumps
Europe’s main oil benchmark is now firmly part of the rout that sent U.S. oil futures below zero for the first time ever this week. Brent for June delivery lost 16% to trade near $16 a barrel on Wednesday, adding to a 24% drop on Tuesday. New York’s West Texas Intermediate, meanwhile, fell around 9%, following a 43% collapse yesterday. The Trump administration vowed to come to the rescue of the U.S. energy sector with stimulus funds and other measures, while a fund that offers investors exposure to fluctuations in crude prices might be worth less than nothing. Here’s an updated reminder of how this all happened.
Improvements and Setbacks
The virus picture is improving in some areas, but not without setbacks along the way. The Netherlands moved to begin easing restrictions as new infections drop, while Italy aims to roll out a detailed restart program beginning on May 4. In France, the number of patients in intensive care with Covid-19 fell to the lowest in three weeks, but in the U.K., a sharp increase in daily deaths provided a reminder of lingering dangers. In the U.S., infections rose the most since April 10. And over in Asia, the one-time standard bearer for taming the virus, Singapore, reported more than 1,000 cases for a second day.
Streaming King
If the name Joe Exotic means anything to you, then you might not be surprised to hear that Netflix Inc.’s business is booming. The company added a record 15.8 million paid subscribers during the first quarter, almost double the 8.47 million expected by Wall Street, as lockdowns around the world saw people binge-watch hit new releases like “Tiger King.” The firm’s stock was already up 34% year-to-date and spiked again in after-hours trading before erasing the gain as some investors questioned how long the explosive growth would last. A pause in production, meanwhile, may have only temporarily lowered costs.
U.K. Government Test
Boris Johnson’s coronavirus strategy faces its first major political test since the U.K. was put on lockdown a month ago when members of Parliament question ministers in a sitting conducted via video-conference. The prime minister remains out of action recovering from his own severe case of Covid-19, so in his place will be Foreign Secretary Dominic Raab, facing new opposition Labour Party Leader Keir Starmer. The session should give ministers a sense of how much pressure they’re under to start easing Britain’s lockdown. Separately, the U.K. will begin human trials of a coronavirus vaccine Thursday.
Coming Up…
European stock futures are edging up after shares in the region suffered their worst daily decline in almost a month on Tuesday, and U.S. futures are marginally lower as investors shrugged off the the Senate’s passing of $484 billion in new pandemic relief funds. Elsewhere, Turkey is expected to cut interest rates again, and euro area consumer and French manufacturing confidence are likely to plunge further. It’s another busy earnings day with Swiss drug-maker Roche Holding AG and Dutch brewer Heineken N.V. among those reporting. Luxury goods group Kering gave a cautious assessment of rebounding luxury sales in China.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Where herd immunity could actually work.
- Zoom parties are so five weeks ago.
- Babylon to pay for employees’ Covid-19 tests.
- Possible heirs to the North Korean throne.
- Last Carnival cruise ship at sea reaches port.
- Why we need two virus tests.
- Snapchat gets lockdown boost.
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