The coronavirus rescue bill leverages the Fed by $4 trillion to head off a credit crisis–you think it might be serious? Look at the credit card market
Besides the $2.2 billion that the Coronavirus rescue bill allocated to checks to individuals, etc. it also created $4 trillion for the Federal Reserve. Why does the Fed need that much? Because the coronavirus recession threatens a full-blown credit crises
You can see the problem facing Middleby (MIDD). It sells into the commercial restaurant market. Much of that restaurant market has been closed to implement social distancing strategies intended to slow the spread of the coronavirus. Nobody in the restaurant sector is thinking of buying new equipment. And they won’t be for months (or more) after the current coronavirus pandemic is under control.
Automakers are scheduled to report first quarter sales numbers tomorrow with Ford Motor (F), Fiat Chrysler, and General Motors (GM) all expected to snow big declines. And the next quarter looks even worse.
The first tankers in what looks like a long fleet of tankers are loading now in Saudi Arabia on their way to Europe and the United States in April. The Saudi government looks to be making good on its announced increase in output to a record 12.3 million barrels a day in April from 9.7 million barrels a day in February. The country also cut the official selling price on its oil earlier the month as another move in the country’s price and production war with Russia. That oil production war, set off when Russia refused to join other oil producers in curbing output, has hit at the same time as the global coronavirus pandemic has cut demand for oil.
Will Grupo Aeroportuario del Pacifico cut its dividend at April 28 meeting? Selling out of the Dividend Portfolio
Grupo Aeroportuario del Pacífico (PAC) has postponed its annual meeting until April 28. The company’s stock buyback plan and dividend payouts on the agenda. It’s hard to imagine that the company hasn’t at least considered cutting its buyback and dividends.
As of noon New York time, today March 30, U.S. benchmark West Texas Intermediate fell another 5.67% to $20.29 a barrel. International benchmark Brent dropped 9.83% to $22.45 a barrel. That’s an 18-year low for oil. And worse is yet to come.
Johnson & Johnson (JNJ) said today that it will begin human testing of its experimental vaccine for the coronavirus by September and that clinical data on its effects is expected before the end of the year. If the vaccine works well, the company said it could be available for emergency use in early 2021. I’d stress the “could” but this is still great news.