Overbought Stocks

Overbought Stocks

4.53k followers30 symbols Watchlist by Yahoo Finance

Follow this list to discover and track stocks that have been overbought as indicated by the RSI momentum indicator within the last week. A stock is overbought when the RSI is above 70. This list is generated daily, ranked based on market cap and limited to the top 30 stocks that meet the criteria.

30 symbols

  • Fed to Buy Junk Bonds, CLOs and Lend to States in New Stimulus

    Fed to Buy Junk Bonds, CLOs and Lend to States in New Stimulus

    (Bloomberg) -- The Federal Reserve on Thursday announced another series of sweeping steps to provide as much as $2.3 trillion in additional aid during the coronavirus pandemic, including starting programs to aid small and mid-sized businesses as well as state and local governments.In an unprecedented move, the Fed also said Thursday it would move to shore up some of the hardest-hit parts of financial markets, pledging to start buying some debt recently downgraded to below investment grade as well as certain collateralized loan obligations and commercial mortgage-backed securities.“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” Fed Chair Jerome Powell said in a statement. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”Powell is scheduled to speak at 10 a.m. New York time in a webinar hosted by the Brookings Institution. Follow his remarks in our TopLive coverage here. U.S. stocks rose at the open of trading in New York as some investors looked past a third-straight week of dire jobless numbers and focused on the Fed’s additional support for the economy. The surprise pledge from the Fed to buy recently downgraded corporate bonds also boosted some of the biggest ETFs tracking the securities.Key HighlightsA Municipal Liquidity Facility will offer as much as $500 billion in lending to states and municipalities, by directly purchasing that amount of short-term notes from states as well as large counties and cities.The Main Street Lending Program will “ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans.”Expanding the size and scope of the Primary and Secondary Market Corporate Credit Facilities and the Term Asset-Backed Securities Loan Facility to support as much as $850 billion in credit.Its Secondary Market facility may purchase U.S.-listed ETFs. While the preponderance of those holdings will be those primarily focused on U.S. investment-grade corporate bonds, the remainder will be in ETFs whose primary investment objective is exposure to U.S. high-yield corporate bonds.Starting the Paycheck Protection Program Liquidity Facility, “supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses.”Main StreetThe Fed laid out details of the heavily anticipated Main Street Lending Facility, which will deliver funding to companies much bigger than those yet eligible for help. Eligible borrowers can have up to 10,000 employees or up to $2.5 billion in annual revenue. Loan sizes will range from $1 million to $150 million.Borrowers will be subject to restrictions imposed by Congress in the CARES Act on employee retention, distribution of dividends and other factors. The program will be backstopped by $75 billion from the Treasury to absorb losses. Banks that handle the loans will be required to retain a 5% interest in each loan, with the facility purchasing the remainder.The Fed also said it will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.“The Fed has now done virtually everything we think it should be doing and we think it can do,” said Michael Gapen, chief U.S. economist at Barclays Capital in New York.Gapen said the unprecedented nature of some of the steps shows the Fed is extending its emergency lending powers into the economy where it’s needed most, among companies, households and states. That said, the direct purchase of municipal debt could put the Fed in an uncomfortable political position, he said.“It opens the Fed to political criticism for picking winners and losers,” he said. “They’ve stated many times they’d prefer not to do that, and now they’re doing it.”(Updates with markets.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • HSBC Admits of Possible Anti-Money Laundering Law Breaches

    HSBC Admits of Possible Anti-Money Laundering Law Breaches

    HSBC reports itself to the Australian financial regulator for potential breaches of anti-money laundering rules by its subsidiary in Australia.

  • Global Oil Cuts Seen Falling Short and Crashing Prices, ING Says

    Global Oil Cuts Seen Falling Short and Crashing Prices, ING Says

    (Bloomberg) -- Oil is set to tumble back toward $20 a barrel as global producers will likely fall short of targeted cuts this week, leaving a supply overhang that will threaten to overwhelm global storage, according to ING Groep NV.Oil giants including Saudi Arabia and Russia are likely only going to be able to cobble together a global agreement to curb 6 million to 7 million barrels a day of supplies, said Warren Patterson, ING’s head of commodities strategy. That’s more than triple what OPEC+ was cutting at the start of this year but is short of the 10 million barrels a day or more that U.S. President Donald Trump proposed last week.It’s also well shy of the loss in demand of about 15 million barrels a day in the second quarter caused by government lockdowns to stop the spread of the virus, Patterson said. Brent crude, which has already plunged 50% this year, will crater further as storage is maxed out.“I’ve been looking at commodity markets now for a little over 10 years and I’ve never seen anything like this,” said Singapore-based Patterson in a telephone interview. “The scale of demand destruction that we’ve seen in the market is just shocking.”ING, the Amsterdam-based bank that finances commodities across the value chain, sees Brent crude averaging $20 a barrel in the second quarter before rebounding to $45 in the fourth quarter. Futures traded at $33.34 on Thursday.Patterson doesn’t think the U.S. will be given a direct mandate to cut a specific volume because of its antitrust laws, but the country will still contribute output declines as drillers halt activity because of low prices. Russia wants the U.S. to do more than an organic drop in production, but will ultimately accept it as part of a larger agreement, he said.ING sees Saudi Arabia cutting 3 million barrels a day and Russia 1.6 million. Other OPEC members and countries like Canada will contribute enough cuts to get to 6 million to 7 million barrels a day, but Patterson said he doesn’t see a way they can add enough to get to 10 million.Top producers are set to meet on Thursday, followed by a meeting of G-20 energy ministers the following day.Amid the gloominess in markets, Patterson remains constructive on precious metals, with gold seen as having the most upside across the commodities complex in the second quarter. Prices are expected to average at $1,700 an ounce during this period and could even test the previous record of $1,921.17 seen in 2011 in the next two to three months, although it’s unlikely to remain at that level, he said.“We have also seen quite a bit of increased volatility in gold prices over the last month or so, but I don’t think that diminishes its appeal as a safe-haven asset,” said Patterson. “Given the level of uncertainty that we’re currently experiencing and also the fact that if you look around the globe, there’s basically not a central bank which is not easing -- that all sort of has quite supportive fundamentals for gold.”Gold has been on a tear, trading near the highest level in more than seven years, as investors spooked by coronavirus-related market meltdowns and economic angst clamor for the traditional haven. Holdings in bullion-backed exchange-traded funds are at the highest ever, and prospects for the precious metal have also been supported by global stimulus measures aimed at shoring up growth, including the Federal Reserve’s unlimited quantitative-easing program. Spot gold traded at $1,648 an ounce on Thursday and is up almost 9% this year.Patterson also commented on industrial metals and iron ore:Among the base metals, ING is most constructive on nickel due to a growing market deficit as a result of rising demand in the battery sector, and sees an average price of $13,500 a ton by the end of this year.Patterson is bearish on zinc, which he sees averaging at $1,880 a ton over the fourth quarter. Further downside is seen between now and then, with prices expected to drop to $1,800 as smelters maximize refined output due to attractive treatment charges.Iron ore is seen averaging $85 a ton in the second quarter on rising demand in China, but will trend lower to average $75 by the end of year on continued improvement of supply from major producers such as Vale SA.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Investing.com

    Stocks - Europe Heads Higher Ahead of Eurogroup meeting

    Wall Street had closed sharply higher Wednesday amid hopes the U.S. may turn a corner in its battle against the coronavirus as early as next week. The Dow Jones Industrial Average rose 3.4%, or 780 points, the S&P; 500 up 3.4%, while the NASDAQ Composite added 2.6%.

  • Should Old Dominion Freight Line, Inc.'s (NASDAQ:ODFL) Recent Earnings Worry You?
    Simply Wall St.

    Should Old Dominion Freight Line, Inc.'s (NASDAQ:ODFL) Recent Earnings Worry You?

    Assessing Old Dominion Freight Line, Inc.'s (NasdaqGS:ODFL) past track record of performance is an insightful exercise...

  • Can 3D Printing Help in the Battle Against Coronavirus?

    Can 3D Printing Help in the Battle Against Coronavirus?

    Let's keep a watch on three stocks that are working toward bridging the medical equipment supply shortage gap with the help of 3D printing.

  • Will Layoffs, Furloughs Help Carmakers Survive Coronavirus?

    Will Layoffs, Furloughs Help Carmakers Survive Coronavirus?

    The idea to go for pay cuts, layoffs and furloughs is to conserve cash as Tesla, Inc. (TSLA) and other car companies continue to bleed with halt in production and deliveries.

  • Financial Times

    HSBC reports potential money laundering breaches

    HSBC has told Australia’s financial crime agency that it may have broken anti-money laundering and counter-terrorism financing laws by failing to report transactions it facilitated with foreign banks and other institutions. The British lender is the latest financial institution to flag potential money laundering compliance failings in Australia. This follows scandals at Commonwealth Bank of Australia and Westpac, both of which led to the resignations of the banks’ chief executives.

  • Imagine Owning Royal Bank of Scotland Group (LON:RBS) While The Price Tanked 67%
    Simply Wall St.

    Imagine Owning Royal Bank of Scotland Group (LON:RBS) While The Price Tanked 67%

    Generally speaking long term investing is the way to go. But no-one is immune from buying too high. For example, after...

  • Financial Times

    RBS cuts 130 jobs in investment bank

    Royal Bank of Scotland has cut more than 130 jobs in its investment banking division during the coronavirus crisis, with many staff served their redundancy notices via video call, according to people familiar with the situation. The state-backed lender has pushed ahead with a restructuring of NatWest Markets — announced in February before the pandemic gathered pace in the UK — despite rivals delaying similar projects. Trade unions criticised the move, which comes at a time when the hiring market has all but ground to a halt, and most staff are working from home with the UK under lockdown.

  • Bloomberg

    The World Needs Ventilators. Here's the Snag

    (Bloomberg Opinion) -- In the face of a global health emergency, automakers are stepping in — or being summoned — to make ventilators. Can they manufacture at the scale required, with the world needing a 10-fold increase in production to cope with the surge in coronavirus infections? It will be a severe challenge.Car companies such as Ford Motor Co., General Motors Co. and Toyota Motor Corp. are a natural choice to mass-produce these medical devices. They churn out millions of vehicles every year, procuring and bringing together hundreds of parts from around the world at rapid speed. Ventilators needs anything from 400 to 1,000 components from tubes and sensors to pressure valves, humidification systems and filters. There is significant overlap between the engineering of ventilators and cars, which both bring together electronic, electric, hydraulic and mechanical aerodynamics expertise.The parts are mostly different, though. The constituents of a ventilator come from dozens of countries and through as many as nine layers of suppliers. At the same time, some specialty components, such as oxygenation membranes needed for mechanical ventilation, are made by only a few precision manufacturers— meaning that any attempt to effect a rapid expansion in global production is constrained by the ability of these companies to ramp up.The same disruption the coronavirus pandemic has wrought on automakers’ global supply chains will apply equally to their efforts to make ventilators. In normal times, such a switch might be feasible. However, automakers are only in this position because conditions are so abnormal. The coronavirus has wreaked havoc on supply chains. Logistics, transportation and manufacturing have been upended. Retooling factories will take time and the disease won’t wait.That makes the task even more formidable for companies such as Ford and GM, which have faced pressure from President Donald Trump to move more quickly and repurpose factories to turn out ventilators. Trump invoked the wartime Defense Production Act last week to help ventilator manufacturers procure supplies. Still, the administration’s effort doesn’t cover the full chain from raw materials to distribution, as my colleague Brooke Sutherland has written. The U.S. may need as many as 960,000 ventilators, the Society of Critical Care Medicine estimates, versus 200,000 that are available. India’s requirement is as many as 220,000 compared with an estimate of about 25,000 now, according to the Brookings Institution. These numbers depend on the speed of the disease’s spread and the severity of infections, and can change rapidly. Big manufacturers currently produce around 200 ventilators a week and need to make 10 times that number, according to Bloomberg Intelligence industrials and medical equipment analyst Nikkie Lu. The Indian government is urging local automakers to get involved. In the U.K. and Europe, the likes of McLaren Automotive Ltd. and Mercedes AMG High Performance Powertrains Ltd. are helping out.GM is sourcing 419 direct parts from 91 so-called tier-1 suppliers for ventilators made at its Kokomo plant in Indiana. While a significant portion are produced in North America, there are suppliers in more than 10 countries including China. GM is helping increase sourcing capacity within the supply chain of its ventilator partner Ventec Life Systems Inc., and is having to develop new sources of parts in its own.While China is reopening for business and putting a priority on medical equipment, other countries are in lockdown. That’s making it increasingly tough to get the right products to manufacturers, particularly where operations are dispersed. For example, New Zealand ventilator maker Fisher & Paykel Healthcare Corp. sources components from China for manufacture at home and in Mexico. ResMed Inc., a San Diego-based company that makes a ventilator used during the severe acute respiratory syndrome outbreak, does most of its manufacturing in Singapore and Sydney.There are other obstacles. This is a niche industry that’s complex and highly regulated. China has more than 20 mechanical ventilator makers that produce about 2,200 machines a week or about a fifth of total global output; only eight are certified to sell in Europe. Medical devices need to be produced in sterile and clean-room certified conditions. That means converting factories to scale up isn’t a simple matter. In recent weeks, some countries have complained of faulty tests and medical equipment coming from China. Officials there banned the export of medical supplies that don’t meet China’s standards.Then there’s protectionism. Trade barriers are going up in dozens of countries as the world moves into survival mode. Having shipped key medical supplies abroad going into the crisis, the U.S. has now joined the trend, using the defense act to order 3M Co. to halt exports of its protective masks to some nations and prioritize sales to the federal government. The U.S.-China trade war had already showed up the fragility of global supply chains. Covid-19 and the rush to make ventilators will be a telling marker of how effectively they still function. Conditions could hardly be more difficult for such a critical test. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    What We Really Want to Know When Wuhan Reopens

    (Bloomberg Opinion) -- The rainy, misty early April is the season we Chinese mourn our dead. As the lockdown lifts in the epicenter of the coronavirus outbreak, just in time for Wuhan's famous cherry blossoms, many of us want to know how many lives the virus claimed.Official statistics put Wuhan at more than 50,000 infected cases and just over 2,300 dead. But Caixin, an influential news outlet, reported that a shortage of testing kits and overflowing hospitals could mean actual figures are much higher, as many of the ill spent their final hours at home. To get to the bottom of this, you’d have to collect data from local district offices, and Wuhan has 2,033 administrative zones.This information vacuum touches all aspects of society, even stock investing. Unless we can travel around to conduct due diligence — still very difficult — we have no sense of how bad the economy is. Beijing may have staved off a cliff-dropping bear run earlier this year by keeping a lid on vital information, but officials did themselves no favors by making the equity market an unpalatable investment destination.High-frequency macro statistics such as unemployment can give us a sense of how the virus ravages consumer confidence, which underpins earnings for key sectors including technology and discretionary products. U.S. investors get their hands on this kind of data very quickly. Thanks to weekly statistics published by the Department of Labor, we know the virus claimed about 10 million jobs in just two weeks, the worst on record. Good luck finding the equivalent in China.The National Bureau of Statistics surveys the urban unemployment rate only monthly. Even then, its result is almost certainly skewed to the sunny side, because it doesn’t cover enough of the private businesses that are more likely to lay off workers. In reality, a whopping 130 million jobs may be at risk, estimates HSBC Holdings Plc, and that’s just in the urban retail and restaurant sectors.The March survey number could give us some insight, but we won’t see that until April 17. Even before the worst of the global virus outbreak, China's jobless rate had jumped by almost one percentage point to 6.2% in February, the highest on record.Then consider efforts to get back to work, with Hubei province — home to Wuhan — reopening Wednesday. China has proudly announced that almost all employees at large industrial enterprises have restarted. But a return to work doesn’t equate to a return to production, or a return to sales, which we have very little data on.Intuitively, we know the picture can’t be pretty. Many exporters in China can’t earn revenue until their goods are delivered. As the virus takes spreads globally, overseas demand is sinking and transportation time is lengthening. So China Inc.’s return to work is actually terrible news for stocks, because companies not only can’t make money but have to pay all the operational fixed costs.In other markets, earnings estimates can serve as a useful guide. During the global financial crisis, for instance, the S&P 500 Index bottomed at about the same time as analysts’ one-year forward earnings expectations. That’s never been the case with Chinese stocks, and is unlikely to change because due diligence is hard work.This explains why, despite the good news out of Wuhan, any talk of revival in China’s stock market has been conspicuously absent. The benchmark CSI 300 Index has been range-bound lately, down about 7% for the year — there’s simply no information to trade on. By comparison, a mere leveling of New York’s coronavirus fatalities has already gotten U.S. investors excited.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Why is Carnival (CCL) Stock Skyrocketing Today?

    Why is Carnival (CCL) Stock Skyrocketing Today?

    Shares of cruise giant Carnival Corp. (CCL) are soaring on Tuesday, up 18.5% in midday trading after Saudi Arabia's sovereign wealth fund disclosed a 43.5 million-share stake.

  • A 16% Leveraged Loan Is Painful But Necessary

    A 16% Leveraged Loan Is Painful But Necessary

    (Bloomberg Opinion) -- Backed into a corner by the coronavirus pandemic, Texas billionaire Tilman Fertitta is rolling the dice in the leveraged-loan market.Fertitta’s empire includes Golden Nugget casinos and restaurants under the Landry’s Inc. umbrella like Bubba Gump Shrimp Co., Morton’s The Steakhouse and Rainforest Cafe. Needless to say, the economic shutdown across America has wreaked havoc on all of those businesses. In a gambit to stockpile extra cash, Landry’s this week is dangling an unprecedented all-in yield of at least 16% to entice investors to buy into a new $250 million loan. It would be the first successful leveraged-loan deal in almost a month, assuming it draws enough commitments on Thursday.It already looks as if the offering arranged by Jefferies Financial Group Inc. will make it past the finish line. Bloomberg News’s Jeannine Amodeo and Davide Scigliuzzo reported Tuesday that order books are already double the size of the proposed loan. That checks out: As I noted last week when Carnival Corp. initially floated bonds yielding close to 13%, bankers involved in these sales have little reason to propose an interest rate that won’t clear the market. Indeed, despite being in a line of business directly harmed by the spreading coronavirus and in desperate need of cash, Carnival priced its bonds 100 basis points lower than the initial level.The Landry’s deal appears to be benefiting from a combination of the highest spread ever on a first-lien loan not tied to bankruptcy and renewed risk appetite broadly. For as risky as Carnival might seem, it at least technically had investment-grade ratings, and its bonds had the unusual benefit of being secured by a first-priority claim on its assets. By contrast, Moody’s Investors Service cut Golden Nugget’s “corporate family rating” on March 24 to B3 from B2, six steps below investment grade. That seems warranted given the company’s struggles. Here’s Bloomberg’s Scigliuzzo and Amodeo on how Landry’s has fared so far during the coronavirus outbreak:  The pandemic has brought the travel and leisure industry to a near standstill, leaving Fertitta’s businesses shuttered and burning cash while tens of thousands of his employees have been furloughed.The company has already drawn $300 million of existing credit lines in full and Fertitta is injecting $50 million of his own cash into the business, said one of the people, who asked not to be named because the details are confidential....Fertitta sees the new loan as an expensive insurance policy in the event that none of these businesses can reopen before the end of the year, the same person said.In other words, this leveraged loan is painful, but necessary, for a company that’s directly in the crosshairs of this virus-induced economic slowdown.It won’t be the last such business to try to wade into the riskiest parts of the debt markets looking for financing. Following in Carnival’s footsteps, Wynn Resorts Ltd., which had drawn down almost all of its $850 million revolving credit line, plans to issue $350 million of junk bonds, in what would be the first “unsecured” deal since the high-yield market sprung back to life last week. Viking Cruises is also considering a new $500 million junk bond while its ships are docked.For both investors and borrowers alike, the most crucial question might be whether the rift persists between high-yield debt and leveraged loans. Junk bond funds experienced a record inflow of $7.09 billion for the week ended April 1, according to Refinitiv Lipper data, indicating that the widest yield spreads since the last recession were enough to lure buyers. By contrast, loan funds continue to face withdrawals, with investors pulling another $528 million during the same period. Aside from a few weeks here and there, loan funds have been hemorrhaging cash nonstop since late 2018, when risk assets tumbled and forced the Federal Reserve to stop raising interest rates.Given that backdrop, some investors are skeptical that the Landry’s offering indicates the leveraged-loan market is on the brink of a comeback. A $690 million deal for Mallinckrodt was scrapped last month after attempting to launch, at the time marking the 18th loan deal to be pulled or postponed in 2020. Leveraged loans are trading at about 83 cents on the dollar, based on the S&P/LSTA Leveraged Loan Index. That’s up from as little as 76 cents but still a ways away from the 97 cents at the start of the year.An unidentified syndication manager told Reuters flat out that it “will not be a harbinger of the loan market reopening. With secondary levels still, on average, in the mid-80s, accounts will likely continue to focus their attention on buying names that they know at historically attractive levels.”For Fertitta, whose net worth dropped by about a third at one point a couple of weeks ago, having his deal slip through the cracks at any price would be a win. He shares that sentiment with the leveraged-loan market as a whole. “We are trying to survive,” he told Bloomberg’s Scigliuzzo. “I have enough liquidity to ride this out. I can’t go forever but I can go for a few months.”This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barclays Executives Donate Third of Fixed Pay to Virus Charities

    Barclays Executives Donate Third of Fixed Pay to Virus Charities

    (Bloomberg) -- Barclays Plc’s bosses are giving away a third of their fixed pay for the next six months to help people affected by the coronavirus pandemic.The donations from Chairman Nigel Higgins, Chief Executive Officer Jes Staley, and finance director Tushar Morzaria come as the British lender sets up a package of 100 million pounds ($123 million) for charities aiding those affected by the virus, Barclays said in a statement Tuesday.The decision to forgo some pay follows similar moves by other banks, which are under pressure to keep lending while conserving capital during the crisis. Nationwide Building Society Chief Executive Officer Joe Garner said he would cut his salary by a fifth and give up his bonus. Top managers at TSB earlier Tuesday waived their bonuses for 2020, following the lead of executives at their Spanish parent Banco de Sabadell SA. Standard Chartered Plc has committed $1 billion to companies involved in the fight against the pandemic.Last week, the Bank of England’s Prudential Regulation Authority called on the U.K.’s leading lenders, including Barclays, HSBC Holdings Plc and Lloyds Banking Group Plc, to cease paying cash bonuses to their top staff and scrap dividends. Banks agreed to the latter but haven’t commented on bonus plans.Staley received a total of 5.9 million pounds last year, including 2.35 million pounds in fixed pay.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Carnival Stock Up on News of Stake Sale to Saudi Arabia's PIF

    Carnival Stock Up on News of Stake Sale to Saudi Arabia's PIF

    Carnival (CCL) sells a 8.2% stake to Saudi Arabia's PIF.

  • Automakers Go Into Cash-Preserving Mode to Fight Coronavirus

    Automakers Go Into Cash-Preserving Mode to Fight Coronavirus

    With coronavirus concerns dimming earnings and sales prospects, carmakers are resorting to cost-containment initiatives and drawing down their credit lines to preserve cash.

  • Company News for Apr 7, 2020

    Company News for Apr 7, 2020

    Companies In The News Are: JPM, CCL, W, CPRI.

  • President Trump has singled out these companies for their coronavirus response
    Yahoo Finance

    President Trump has singled out these companies for their coronavirus response

    During his daily White House appearances, President Trump has not shied away from calling out companies by name. Here’s a running tally of the companies he’s focused most of his attention on.

  • Carmakers Looking Beyond Extended Factory Closures

    Carmakers Looking Beyond Extended Factory Closures

    Many U.S. carmakers are now looking at resuming production in May after President Trump last week extended the guidelines aimed at containing the spread of the coronavirus till Apr 30.

  • Bloomberg

    Dubai Weighs Bond and Emirates Loans as Virus Hits Economy

    (Bloomberg) -- Dubai is in talks with bankers about shoring up its finances and the emirate’s flag carrier is mulling billions of dollars of loans, as the coronavirus pandemic hammers the economy.The government is discussing various options, which could include the nation’s first Eurobond since 2016 and loans, according to people familiar with the matter, who asked not to be identified. Talks are at an early stage and no decision has been made, they said.If Dubai does tap the bond market, it would follow other governments from the region that have sold dollar debt or started the process since the spread of the virus rocked global markets. Qatar entered the market on Tuesday with a five- 10- and 30-year deal that will probably price later in the day. Israel issued $5 billion, including the Middle East’s first sovereign century bonds, last week.A representative for Dubai’s Department of Finance declined to comment.Like many other cities around the world, Dubai is in full lockdown as it seeks to contain the virus. The Middle East’s main business and travel hub is especially vulnerable given its open economy and reliance on tourism and trade.The Expo 2020 exhibition scheduled for October is set to be delayed by a year. The event was seen as key to boosting an economy that was already growing slowly.“Dubai needs to raise funds to mitigate financing pressures in relation to various state-owned entities,” said Ksenia Mishankina, a senior credit analyst at Union Bancaire Privee in London. A fall in interest rates in the developed world this year “should create conditions of a hunt for yield among investors,” she said.Emirates Airline is reaching out to local and international banks about funding in addition to state aid it received last month, according to people with knowledge of the matter. The world’s largest long-haul airline suspended almost all its passenger operations around the same time.The yield on Dubai’s $500 million bond maturing in 2043 rose 1 basis point to 5.87% on Monday, extending its climb since since early March to about 170 basis points. Dubai’s conventional dollar debt has lost 20% over the past month, compared with the average in emerging markets of 14%, according to Bloomberg Barclays indexes. Its sukuk notes are down 4.5%.Although Dubai isn’t rated by one of the three major firms, bond pricing suggests investors see it as a riskier borrower than Israel or Qatar, both of which are assessed as AA- by S&P Global Ratings.The United Arab Emirates, of which Dubai is a part, unveiled a 50-billion dirham ($13.6 billion) aid package for banks last month. Lenders are also allowed to free up capital buffers, which will make another 50 billion dirhams in liquidity available.Business conditions in the U.A.E. worsened at a record pace in March as the virus shut down much of the economy. The country has reported 2,076 cases of infection, with 11 deaths.(Updates with Qatar’s bond in third paragraph, latest pricing in fourth-last paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Financial Times

    Letter: HSBC made the rational commercial response

    In general a company’s ordinary shareholders have no enforceable legal right to receive regular dividends. The only recognised exceptions to this are where dividends are denied for a manifestly non-commercial reason, or where the complaining shareholders are faced with effective financial starvation due to an inability to liquidate their positions in response.

  • Financial Times

    Downgrades flood junk bond market with ‘fallen angels’

    On a sunny day in May 2012, Ford employees dressed in a mix of blue and white T-shirts gathered on the lawn outside the company’s headquarters in Dearborn, Michigan, celebrating the restoration of its investment-grade credit rating by arranging themselves to form the iconic oval logo. Ford had been downgraded seven years earlier, along with General Motors, in what were the biggest ever demotions to the junk market in terms of bonds outstanding. Ford’s elaborate celebration in 2012 signified the importance of a top-quality rating to the company — a point it reiterated on earnings calls with investors over the following eight years.