Month: July 2020

Top news and what to watch in the markets on Thursday, July 23, 2020. …read more […]

(Bloomberg) — Axis Bank Ltd., India’s third-largest private sector lender, has picked advisers including BNP Paribas SA and Credit Suisse Group AG to manage its proposed share sale, according to people familiar with the matter.The Mumbai-based lender has also chosen HSBC Holdings Plc and UBS Group AG for the offering, the people said, asking not to be named as the information is not public. Axis Bank plans to seek at least $1.3 billion from institutional investors, though it hasn’t finalized the fundraising target, the people said.The sale could come as soon as the end of August and Axis Bank may …read more […]

(Bloomberg) — Oil rose toward $45 a barrel in London, with a weaker dollar and stronger equity markets countering an expansion in U.S. crude stockpiles.Brent futures traded near their highest level since March as European stocks and U.S. equity futures advanced. Yet bearish signs persist in the physical market. China’s thawing oil demand has seen the value of Iraqi crude drop, and there’s renewed weakness in the key swaps that help value North Sea grades. In America, crude stockpiles rose by 5 million barrels last week.Oil jumped earlier this week after European Union leaders agreed on a stimulus package, but …read more […]

(Bloomberg Opinion) — It’s not only gold that glitters. Since touching its weakest level in more than a decade in March, silver has doubled to a seven-year high of almost $23 an ounce. Partly, it’s a rally fueled by the same low-yield, weak-dollar haven dynamic that has pushed bullion to within spitting distance of a record. Investor demand is booming and silver — which is the best conductor of electricity — has industrial uses, too. Short-term supply, meanwhile, has been dented by pandemic-related closures. The metal can keep shining.Silver tends to loosely track gold. Like the yellow metal, it is …read more […]

Tesla Inc boss Elon Musk urged miners to produce more nickel, a key ingredient in the batteries that power the company’s electric cars, warning the current cost of batteries remained a big hurdle to the company’s growth. “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way,” Musk said on a post-earnings call on Wednesday. Nickel makes batteries energy dense so cars can run further on a single charge, and Tesla needs the metal more than ever as it looks to ramp up …read more […]

(Bloomberg) — Deepening negative real yields in the U.S. Treasury market are fueling a frenetic rally in gold that’s boosting the precious metal toward a record.Bullion has gained 24% this year and is about $45 from an all-time high. And with five-year Treasuries now yielding -1.16% once the effects of inflation are stripped out, the lowest close in seven years, there’s little reason to expect a slowdown in precious-metal buying as investors fret about the economic outlook, prospects for further outbreaks of Covid-19 and the impact of central-bank bond buying.“Gold is a superior form of purchasing power protection and as …read more […]

(Bloomberg Opinion) — You know Tesla Inc. is maturing as a carmaker when it manages to be slightly dull. Wednesday evening’s earnings update was even more eagerly anticipated than usual after the recent surge in its share price. Elon Musk’s company has added an astonishing $200 billion to its already ample market capitalization since the end of March.Confirmation that Tesla will add a second U.S. factory in Austin, Texas is certainly something to celebrate — especially for the workers it will employ there to build its Cybertruck and other products. So too is the fourth consecutive quarter of net profit, …read more […]

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A reopening of some major economies locked down due to the coronavirus has lifted global oil prices and encouraged U.S. shale producers to return at least a third of the 2 million barrels per day (bpd) curtailed since April. With most new drilling halted and OPEC relaxing curbs that have underpinned the oil-price recovery, shale output will slide again in autumn, said oil executives and analysts. Shale output falls off faster than at conventional oil wells, a factor that will lead to output declining by September. …read more […]

(Bloomberg) — Daimler AG expects to generate an operating profit this year, after second-quarter results signaled the maker of Mercedes-Benz cars weathered the unprecedented industry slump better than feared.Daimler anticipates earnings before interest and taxes and free cash flow to be positive in 2020 but lower than last year, the Stuttgart, Germany-based manufacturer said Thursday in a statement. It previously forecast deliveries, revenue and profit for the group to decline in 2020.“We are now seeing the first signs of a sales recovery,” Daimler Chief Executive Officer Ola Kallenius said. The company said the outlook is based on an assumption that …read more […]

U.S. gold futures rose 0.1% to $1,867. “With tension between the United States and China rising, U.S. bond yields continuing to edge lower, and a weaker dollar very much in evidence, the case for higher gold prices remains strong,” said Jeffrey Halley, a senior market analyst at OANDA. In a marked escalation between the world’s two biggest economies, the United States gave China until Friday to close its consulate in Houston amid accusations of spying, which also hit risk sentiment. …read more […]

Digital sales for the quarter – including customers who order ahead through Chipotle’s mobile app to pick up in special drive-thru “Chipotlanes” – grew 216% to nearly 61% of total sales. In the third quarter, margins and earnings per share will likely remain bumpy, executives said during a conference call. With more Americans staying home due to the coronavirus health crisis, Chipotle has relied heavily on online orders in recent weeks. …read more […]

Tesla said it earned net income of $104 million from April to June, or $0.50 per share, marking the first time the company has posted a profit for four straight quarters, a condition for it to be considered for the stock index of the largest U.S. companies. The performance is a major accomplishment for Chief Executive Elon Musk, whose mission of leading the global auto industry into an electric future has frequently been questioned by investors who doubted Tesla’s viability. Many analysts believe the rally has been fueled in part by expectations of Tesla’s imminent inclusion in the …read more […]

(Bloomberg) — The hottest stock in Asia since markets hit their nadir in March amid the peak of the coronavirus impact is an Australian payment company that is seeking to cash in on the global change in spending habits.Installment payment platform operator Afterpay Ltd. has surged 713% to become the top performer on the 1,574 member MSCI Asia Pacific Index since the gauge’s March 23 low, according to data compiled by Bloomberg. Flowing government stimulus, a shift to digital payments and stuck-at-home shoppers have bolstered expectations for the firm as it expands across the U.S., U.K. and Canada.Afterpay’s market value …read more […]