Connect with us

Business

Oil prices pull back after OPEC and Russia delay discussions on cutting output – CBC.ca

Published

on


Oil prices fell on Monday after Saudi Arabia and Russia delayed a meeting to discuss output cuts that could help to reduce global oversupply as the coronavirus pandemic pummels demand.

Brent crude fell more than $3 US when Asian markets opened but recovered some ground, with traders hopeful a deal between the top producers was still within reach.

Brent was down 81 cents, or 2.4 per cent, at $33.30 US a barrel. U.S. crude was 65 cents, or 2.3 per cent lower, at $27.69 a barrel, after having earlier been as low as $25.28.

The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, are expected to meet on Thursday, instead of Monday, to discuss cutting production.

“Perhaps it is best that the meeting was delayed for producers to cement a minimum of common ground before the actual discussions take place on Thursday,” BNP Paribas analyst Harry Tchilinguirian said. He noted initial disappointment at the delay had driven down prices in Asian business.

Kremlin spokesperson Dmitry Peskov said Moscow was ready to co-ordinate with other oil exporting countries to help stabilize the market and that the OPEC+ meeting was delayed for technical reasons.

OPEC+ is working on a deal to cut production by about 10 per cent of world supply, or 10 million barrels per day (bpd), in what member states expect to be an unprecedented global effort.

But Rystad Energy’s head of oil markets, Bjornar Tonhaugen, said even if the group agrees to cut up to 15 million bpd, “it will only be enough to scratch the surface of the more than 23 million bpd supply overhang predicted for April 2020.”

Sentiment was lifted by Saudi Arabia’s decision to delay releasing its official crude selling prices to Friday, pending the outcome of the OPEC+ meeting.

U.S. President Donald Trump has said he would impose tariffs on crude imports if needed to protect U.S. energy workers from the oil price crash.

Investor morale in the eurozone fell to an all-time low in April and the bloc’s economy is in deep recession because of the novel coronavirus, a survey showed on Monday.

“Wherever you look, the narrative is the same: the global economy is in a painful recession,” Stephen Brennock of oil broker PVM said. “As OPEC+ ponders fresh supply curbs, you can’t help but think that the oil market will continue to be at the mercy of the virus pandemic.”

Second wave of COVID-19 infections in China

Markets were also spooked when the National Health Commission of China said on Monday that 78 new asymptomatic cases had been identified as of the end of the day on Sunday, compared with 47 the day before.

Asymptomatic patients, who show no symptoms but can still pass the virus to others, have become China’s chief concern after strict containment measures succeeded in cutting the overall infection rate.

Let’s block ads! (Why?)



Source link

Business

Bombardier to lay off 2,500 aviation workers amid COVID-19 struggles – CBC.ca

Published

on


Bombardier will lay off 2,500 aviation workers throughout the year as the company struggles to keep its operations afloat during the COVID-19 pandemic.

In a release Friday morning the Quebec-based transportation company said it is expecting to see a 30 per cent year-over-year loss in business jet sales, forcing it to reduce its workforce.

In a statement to Radio-Canada Friday, the company said 1,500 of the layoffs will be in its Quebec facilities and 400 in Ontario, with the rest of the layoffs in its international facilities.

“These are permanent layoffs,” the company confirmed in a statement. 

Bombardier paused all operations in March in an effort to protect employees from the spread of the novel coronavirus. 

It gradually resumed operations again last month, but had already reported a loss of $200 million US in its first quarter.

The layoffs are just the latest in a series of struggles for the aerospace giant. 

In February, Bombardier exited the commercial plane business, selling its remaining stake in the A220 program to Airbus, in an effort to pay off a multibillion-dollar debt.

That same month, the company also sold its rail-building unit to French train giant Alstom SA, marking its exit from the rail business. 

More to come. 

Let’s block ads! (Why?)



Source link

Continue Reading

Business

History Suggests Record 50-Day Stock Market Rally May Be Just The Beginning – Benzinga

Published

on


The S&P 500 has gained a record 39.6% since it hit its 2020 low back on March 23. Not only has that rally erased much of the year’s COVID-19-related losses, it’s also the best 50-day stretch in the history of the market.

After such a strong rally, traders are understandably getting uneasy the market is overbought and due for a pullback. However, from a purely historical perspective, the strongest 50-day periods have generally led to even more gains over the year that follows, according to LPL Financial Senior Market Strategist Ryan Detrick.

A Closer Look

On Thursday, Detrick looked at the seven other times since the S&P 500 was constructed in 1957 that the index has gained at least 20% over a 50-day period. In all seven instances, the index gained at least another 5.2% in the year that followed.

“Big 50-day rallies in the past have taken place near the start of new bull markets, and the returns going out a year were quite bullish,” Detrick wrote.

What’s Next?

LPL found that the S&P 500 averaged a 1.1% gain over the month following the best 50-day stretches. The S&P 500 has averaged a 6.2% gain over three months, a 9.1% gain over six months and a 19.4% gain over the year following these exceptional 50-day stretches.

Detrick said traders are right to be concerned about the durability of the rally in the near-term given potential red flags in the put-to-call ratios among option traders. However, history suggests the next six months to a year could be very kind to investors overall.

Benizinga’s Take

It’s difficult to step in and chase the SPDR S&P 500 ETF Trust (NYSE: SPY) today after the market has had its best 50 days in history. However, LPL’s research suggests long-term investors with dry powder should consider scooping up S&P 500 stocks on any near-term pullbacks.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

Related Links:

5 Reasons The Value Stock Rally May Run Out Of Steam

What The Yield Curve Is Saying About The Stock Market Rally

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Let’s block ads! (Why?)



Source link

Continue Reading

Business

Bombardier to lay off nearly 200 regional rail workers in GTA – BNNBloomberg.ca

Published

on


Bombardier Inc. says it will temporarily lay off 196 employees working on regional transit services in the Greater Toronto Area due to a steep decline in ridership numbers amid the COVID-19 pandemic.

The company said in an email the job cuts, effective June 21, amount to about 20 per cent of its workforce at GO Transit and the Union Pearson Express.

Both rail services are owned by the Metrolinx transit agency, which contracts out operations to Bombardier.

Bombardier says ridership has dropped by 90 per cent due to the impact of the pandemic, prompting a reduction in service levels.

Commuting has plummeted as confinement measures shuttered businesses, triggered layoffs and prompted work-from-home policies.

Air passenger numbers have also plunged, with international traveller volumes falling 98 per cent year over year at Canadian airports last week, according to the Canada Border Services Agency.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending