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Premarket Shares: The Fed now has Walmart debt. This is why it is important



Fed official: The virus determines the speed of economic recovery

These are just a few companies that have debt taken by the Federal Reserve in mid-June, part of the central bank’s unprecedented intervention in the credit market. CNN’s parent company, AT&T, is another company.

What happened: The Fed revealed hundreds of millions of dollars in purchases of individual corporate bonds on Sunday, while identifying nearly 800 issuers that met the conditions that the bonds could be bought on the phone.

Actions by the Federal Reserve have been praised by investors for easing conditions on the credit market after they quickly deteriorated in March, avoiding the potential for a company financial crisis that could trigger a wave of bankruptcy.

In a note to clients on Monday, Goldman Sachs said the Fed’s announcement that they would buy corporate bonds in the primary and secondary markets was sufficient to quickly provide assistance.

“The presence of a backstop only helps restore the flow of private credit,” said chief economist Jan Hatzius.

The policy has proven “very strong” to fight this crisis, Goldman Sachs said. But it is not clear the Fed should use it as a regular tool to fight future recessions, according to investment banks.

This crisis is expected to be severe but brief, reducing the risk of sustaining inefficient “zombie” companies that should be left to fail. That might not happen next time.

Plus, there is concern that ongoing commitment to the purchase of corporate bonds can create so-called “moral hazard,” prompting companies to borrow more from less selective lenders in hopes that Fed intervention will limit risk.

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“It is unlikely that the cost-benefit tradeoff will be profitable enough in the next recession,” Goldman Sachs said.

The Fed’s actions also did not make the credit market fully resistant to complex and rapidly changing views. If the pandemic forces another wave of blackouts that could thwart recovery, the conditions of the loan could tighten again.

“The risk of re-locking is very high, and monetary policy stimulus that explains most of the recovery in asset prices from March lows will be less effective going forward if it does not translate into a rebound in economic activity and a better outlook for corporate earnings,” Hussein Sayed, the chief market strategist at FXTM, told his client Monday.

The Facebook boycott garnered a lot of attention among advertisers

Big company names like Unilever, Starbucks and Verizon entered advertising boycott in protest at Facebook’s policy of hate speech – increasing its stakes for the company and suppressing its shares.

Most recently: Facebook shares fell more than 8% on Friday, noting their worst day since March. They fell by almost 4% in premarket trading.

The plunge removed more than $ 50 billion from the company’s market value.

CEO Mark Zuckerberg announced an expanded policy on hate speeches on Friday, which included a ban on advertisements to blame minorities, immigrants and asylum seekers. Facebook will also implement warning labels for user posts that are newsworthy but violate platform policies.

However, this step does not seem to satisfy many advertisers. Hershey’s said it would join the boycott after the announcement. Fox business report that PepsiCo also added his name to the list.
Reality check: Almost all of Facebook’s revenue of around $ 70 billion last year came from advertising money. But account 100 brands with the highest expenditure only for 6% of income, according to Pathmatics, a marketing intelligence company.

Most of them come from small and medium businesses. Tens of thousands will need to act over a significant period of time to reduce Facebook’s profits, my CNN Business colleague Brian Fung reports.

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Watch this space: Twitter shares also fall when companies stop social media advertising. The company’s shares fell more than 7% on Friday and fell 3% in premarket trading.

Pioneering destroyer Chesapeake Energy went bankrupt

Chesapeake Energy, a pioneer of US fracking, submitted an application bankruptcy protection over the weekend – the biggest oil and gas company that did it during the coronavirus pandemic, my CNN Business colleagues Clare Duffy and Matt Egan reported.

Chesapeake was once the number two producer of natural gas in the country thanks to initial speculation. Aubrey McClendon, founder and CEO of Chesapeake, is considered one of the boom shale leaders who turned the United States into the world’s largest supplier of oil and natural gas.

But rumors of bankruptcy revolve when companies wrestle with depressed energy prices and piles of debt.

The coronavirus crisis exacerbates these challenges. Despite the recent recovery of $ 40 a barrel, oil prices have fallen sharply this year due to oversupply and falling demand caused by orders staying at home.

“In the current commodity price environment, Chesapeake is burning cash at the same time that production is declining, which is not sustainable,” said Spencer Cutter, credit analyst at Bloomberg Intelligence.

What it means: Demand is starting to recover, helping the price of crude oil rise again. But they are still too low to guard against a series of bankruptcies because producers struggle against bankruptcy.


Pending home sales in the US for May post at 10 a.m. ET

Coming tomorrow: Will consumer confidence in the United States continue to improve in June?

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CBF congratulates Cruzeiro on the title, but makes a mistake with the “Portuguese” Pezzolano



CBF congratulates Cruzeiro on the title, but makes a mistake with the "Portuguese" Pezzolano

The Brazilian Football Confederation (CBF) made a “gaffe” when congratulating Cruzeiro on the Brazilian Serie B title won last Friday (30) after the failures of Grêmio and Bahia. While congratulating the heavenly team, the entity “managed” to change the nationality of coach Paulo Pezzolano, identifying him as Portuguese.

“Until the 32nd round, the team under the leadership of the Portuguese Paulo Pezzolano had 71 points, eighteen more than Gremio, which is currently in second place. Organization website.

Cruzeiro fans are already “heavy” because of the CBF, because the organization does not issue the Cruzeiro Cup in next Wednesday’s (5) fight against Ituano at the Mineirana. The trophy will only be delivered in the last round of the competition, scheduled for November 6th.

The main bet of the Ronaldo leadership is to start the process of “reconstruction” of Cruzeiro, Pezzolano is a Uruguayan born in Montevideo on April 25, 1993.

The coach’s employment contract was duly registered in the CBF Daily Newsletter (BID). It states the correct nationality, such as Uruguayan.

In addition, when he was still a player, Pezzolano also played in Brazilian football, defending Atlético-PR.

Now off the field, Pezzolano became the foreign manager with the most appearances, ahead of Cruzeiro (52), and also the most victorious.

He was the only foreigner to win the title for Cruzeiro. His “predecessors”, the Uruguayan Ricardo Diez (1953), the Argentine Filpo Nunez (1955 and 1970) and the Portuguese Paulo Bento (2016), spent less time in Rapos and could not lift a single trophy.

In 52 games under Pezzolano Cruzeiro won 33, drew nine and lost 10 (69.23% profit). In these matches, the heavenly team scored 85 goals and conceded only 39.

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A moment of silence in Portuguese football over the tragedy in Indonesia



A moment of silence in Portuguese football over the tragedy in Indonesia

The Portuguese Football Federation (FPF) announced this Sunday a minute of silence at the competitions it organizes, namely the Portuguese Cup, in memory of the victims of the tragedy that occurred in Indonesia.

“The Directorate of the Portuguese Football Federation announces a moment of silence in memory of the victims of the tragedy that occurred at the football stadium in Indonesia. The official website of the organization.

In the same note, FPF President Fernando Gomes says that “with great surprise and a feeling of deep pain, but also indignation” he learned “of the tragic scale of the events that have taken place in the stadium. in Indonesia”.

“It is with great sadness that I deplore the dramatic consequences of this tragedy, which resulted in the death of more than 170 fans, including many children. A football stadium should be a stage for celebration and joy, not for violence and death,” he said. concluded.

A moment of silence will be observed at the competitions organized by the FPF, namely the Portuguese Cup, the second stage of which will take place this weekend.

Indonesian authorities said 174 people were killed in unrest at the end of a football match in East Java, but acknowledged that the number could rise as many of them were critically injured.

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The tragedy, one of the worst in the history of football, occurred on Saturday evening when about 3,000 fans took to the field after Arema’s home team lost 3-2 to rivals Persebay Surabaya.

Police fired tear gas to try to contain the angry supporters, but their actions caused panic and thousands of people rushed to the exit.

Many people were trampled to death in the chaos of the stampede. At least two police officers were killed in the unrest that spread outside the stadium.

The Indonesian league was suspended and the authorities ordered an investigation into the incidents.

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New serious injury of the player of the national team of Portugal



Extremo português oferecido ao Manchester United Lesão Pedro Neto

An injury forces Pedro Neto to be substituted in the Wolves game.

Bad news for Wolverhampton Wanderers and Pedro Neto. The Portuguese received a new injury, and, according to Bruno Lage, it could be serious.

Away to West Ham, where the Portuguese lost 2-0, Pedro Neto was replaced in the 24th minute by Adama Traore, and after the match, the Wolves coach said that the injury could be “ugly”.

Wolves are now in the Premier League relegation zone, and Pedro Neto may be left with no hope of qualifying for the World Cup in Qatar.

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