Category: Stock Market

Nvidia uses their AI expertise to fight COVID-19. Yahoo Finance’s Dan Howley joins the On The Move panel to discuss.

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(Bloomberg) — The pound is back to being the pariah of the currency world as renewed Brexit risks worsen the troubles of a market still reeling from the shock of the pandemic.Sterling fell a fifth day against the dollar on Friday after the latest negotiations between the U.K. and the European Union seemed set for a stalemate, with both sides refusing to compromise on key issues such as trade and movement of citizens. The pound is already the past month’s worst-performing Group-of-10 currency and options signal more pain ahead.British Prime Minister Boris Johnson threatened to walk away from the talks this week if enough progress wasn’t made. That raises the risk that the U.K. will end its transition period on Dec. 31 without a free-trade deal — putting further strain on an economy that’s already facing the worst recession in three centuries.“Brexit has reared its head again,” said Ned Rumpeltin, the European head of currency strategy at Toronto-Dominion Bank. “After hibernating since the end of last year, it looks like Brexit isn’t quite finished as a bearish factor for sterling. G-10 currencies remain highly risk-driven against the dollar, but the return of these concerns could emerge as a significant differentiator for sterling.”Buffeted by successive elections, failed parliamentary votes and shifts in monetary policy, volatility in sterling was at one point on par with those seen in riskier, emerging-market nations. The pound is already among the most volatile among G-10 currencies, second only to Norway’s krone this year.The pound has fallen 1.7% this week to around $1.22, on track for the worst such decline in almost two months. A close on Friday below the $1.2166 — a level that proved to be a key chart support in recent weeks — could set the stage for further losses, according to Rumpeltin.Lee Hardman, a strategist at MUFG, sees the U.K. currency slipping to $1.20 or even lower in the short term. While the consensus call in a Bloomberg currency survey is for sterling to climb 3% from current levels to end the year at $1.26, this is significantly lower than the $1.33 predicted just two months ago.“There is an increasing risk that investors view the outlook for the U.K. more negatively relative to elsewhere, thus encouraging increased speculative selling,” MUFG’s Hardman said. “The U.K. is in the unique position of having a considerable risk on the horizon in relation to the E.U. trade negotiations.”Two-month pound-dollar risk reversals, an options gauge of positioning that cover the June 30 deadline for any extension of a Brexit transition period, continue to signal a markedly bearish outlook for the U.K. currency.Bloomberg’s pound-dollar volatility calendar shows traders are not yet looking for significant price swings in the pair either at year-end or on June 30, suggesting the risk of market complacency that could leave sterling susceptible to wide fluctuations if Brexit talks turned more tense.The EU’s chief Brexit negotiator Michel Barnier is due to give a press conference Friday on this week’s round of negotiations.“Do I expect a significant deterioration in talks at this stage? No, as there are still the June and September rounds before the hoped October “soft” deadline,” said Jordan Rochester, a currency analyst at Nomura International Plc. “But it would help focus minds if Barnier turns up the temperature. We remain short sterling.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Stock futures were lower Friday morning after a whipsaw session on Thursday, as investors continued to weigh new economic data and earnings results against hopes of a speedy economic reopening.

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(Bloomberg) — Gold and silver are finishing the week on a high note, lifted by concerns over economic growth, a second wave of virus infections and simmering tensions between the U.S. and China.Gold headed back toward its peak in April, when prices hit the highest since 2012. Silver jumped to a two-month high. Prices are having a long-awaited breakout moment as market anxiety mounts, according to Rhona O’Connell, head of market analysis for EMEA and Asia at INTL FCStone.“There are fears over everything from political leadership through the health outlook overall and associated economic financial and political risk,” she said.Spot gold was up 0.3% at $1,735.41 an ounce at 9:54 a.m. in London, heading for its second weekly gain. Silver jumped as much 3% and traded near $16.20 an ounce, with its discount to gold coming down from recent records.Investors turned to safe havens after U.S. Federal Reserve Chairman Jerome Powell warned earlier this week that the pandemic will take a heavy toll on the economy. Fears intensified on gloomy American unemployment data Thursday, and as President Donald Trump said he doesn’t want to talk to his Chinese counterpart right now.Nations that enjoyed success quelling the virus, including South Korea and China, now face a rising number of infections. In the U.S., Texas saw its deadliest day and its biggest jump in new cases since the start of the outbreak. That comes two weeks after controversial moves to reopen the state’s economy.“The market seems to be bracing itself for disastrous hard data for April and May and a wave of bankruptcies,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. That supports the traditional safe haven gold, and “has added some extra spice to silver,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Tesla’s HR is ruffling some feathers, announcing to employees that should they decide to not return to work immediately they could lose unemployment benefits.

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Lufthansa plans to resume flights to destinations including Los Angeles, Toronto and Mumbai next month as it begins to restore some of the capacity grounded by the coronavirus crisis, the German airline group said on Thursday. Group airlines that had brought operations to a near halt will operate about 1,800 weekly flights to 130 destinations by the end of June, Lufthansa said in a statement. The announcement comes as carriers make tentative plans to return aircraft to service amid uncertainty over passenger demand, new health rules being drawn up and quarantine measures in some markets.

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