Connect with us

Top News

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

Published

on

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.

See also  Government approves strategy to combat "Portuguese underrepresentation" in Brussels

“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.

See also  And whoever does not jump is not a Portuguese!

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.

Next

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?

See also  Senate Republicans: No reason for Biden to 'sound the alarm' on Russia

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top News

Portuguese historical films will premiere on 29 December.

Published

on

Portuguese historical films will premiere on 29 December.

Method Media Bermuda will present the documentary FABRIC: Portuguese History in Bermuda on Thursday, December 29 at the Underwater Research Institute of Bermuda.

A spokesperson said: “Method Media is proud to bring Bermuda Fabric: Portugal History to Bermuda for its 5th and 6th showing at the Bermuda Underwater Observatory. In November and December 2019, Cloth: A Portuguese Story in Bermuda had four sold-out screenings. Now that Bermuda has reopened after the pandemic, it’s time to bring the film back for at least two screenings.

“There are tickets Ptix.bm For $ 20 – sessions at 15:30 and 18:00. Both screenings will be followed by a short Q&A session.

Director and producer Milton Raboso says, “FABRIC is a definitive account of the Portuguese community in Bermuda and its 151 years of history, but it also places Bermuda, Acors and Portugal in the world history and the events that have fueled those 151 years.

“It took more than 10 years to implement FABRIC. The film was supported by the Minister of Culture, the Government of the Azores and private donors.

Bermuda Media Method [MMB] Created in 2011 by producer Milton Raposo. MMB has created content for a wide range of clients: Bermuda’s new hospital renovation, reinsurance, travel campaigns, international sports and more. MMB pays special attention to artistic, cultural and historical content.

More about

#History of Bermuda #A photo #Portuguese

Model: Everybody, Entertainment, Movies/Movies, History, News

See also  "I am Portuguese in body and soul"
Continue Reading

Top News

CRISTANO RONALDO CAN MAKE UP A GIANT IN CARIOCA AND PORTUGUESE TECHNICIAN SAYS ‘There will be room’

Published

on

CRISTANO RONALDO CAN MAKE UP A GIANT IN CARIOCA AND PORTUGUESE TECHNICIAN SAYS 'There will be room'

News

This is a fact or event of journalistic interest. This may be new or recent information. This also applies to the novelty of an already known situation.

Article

Mostly original text. Expresses the opinion of the author, but not necessarily the opinion of the newspaper. It can be written by journalists or specialists from different fields.

Investigative

A report that contains unknown facts or episodes with a pronounced denunciatory content. This requires special methods and resources.

Content commerce

Editorial content that offers the reader conditions for making purchases.

Analysis

This is the interpretation of the news, taking into account information that goes beyond the facts told. It uses data, brings events and scenario forecasts, as well as past contexts.

Editorial

Analytical text translating the official position of the vehicle in relation to the facts covered.

Sponsored

This is an institutional article on a topic of interest to the company sponsoring the report.

fact checking

Content that confirms the accuracy and authenticity of the disclosed information or facts.

Context

This is an article that brings subsidies, historical data and relevant information to help understand a fact or news.

special

An exciting report that details the various aspects and developments of this topic. It brings data, statistics, historical context, as well as stories of characters that are affected by or directly related to the topic in question.

Criticism

A text with detailed analysis and opinions on products, services and works of art in a wide variety of fields such as literature, music, film and visual arts.

Continue Reading

Top News

Maestro de Braga is the first Portuguese in the National Symphony Orchestra of Cuba.

Published

on

Maestro de Braga is the first Portuguese in the National Symphony Orchestra of Cuba.

Maestro Filipe Cunha, Artistic Director of the Philharmonic Orchestra of Braga, has been invited to conduct the Cuban National Symphony Orchestra, as announced today.

According to a statement sent by O MINHO, “he will be the first Portuguese conductor to conduct this orchestra in its entire history.”

In addition to this orchestra, the maestro will also work with the Lyceo Mozarteum de la Habana Symphony Orchestra.

The concerts will take place on 4 and 12 March 2023 at the National Theater of Cuba in Havana.

In the words of the maestro, quoted in the statement, “these will be very beautiful concerts with difficult but very complex pieces” and therefore he feels “very motivated”.

From the very beginning, Rachmaninoff’s Piano Concerto No. 2 will be performed by an Italian pianist (Luigi Borzillo), whom the maestro wants to bring to Portugal later this year. In the same concert, Mendelshon’s First Symphony will be performed.

Then, at the second concert, in the company of the Mexican clarinetist Angel Zedillo, he will perform the Louis Sfora Concerto No. 2. In this concert, the maestro also conducts Tchaikovsky’s Fifth Symphony.

“This is an international recognition of my work. An invitation that I accept with humility and great responsibility. I was surprised to learn that I would be the first Portuguese member of the Cuban National Symphony Orchestra. This is a very great honor,” the maestro said in a statement.

“I take with me the name of the city of Braga and Portugal with all the responsibility that goes with it, and I hope to do a good job there, leaving a good image and putting on great concerts. These will be very special concerts because, in addition to performing pieces that I love, especially Rachmaninov and Tchaikovsky, I will be directing two wonderful soloists who are also my friends. It will be very beautiful,” concludes Filipe Cunha.

See also  Coronavirus: South Africa virus cases go half million mark

Continue Reading

Trending