>>> What to look at today - 19th of March 2020

The dollar extended gains as investors questioned the effectiveness of a rapidly strengthening set of economic and financial support measures by global policy makers. Most stocks slid in volatile trading.
The euro and U.S. stock futures initially advanced after the European Central Bank announced a huge boost in its efforts to stabilize the economy and capital markets. The moves reversed as optimism faded, with investors increasingly concluding nothing can avert a global recession. The yen, so often a haven amid market stress, slumped, in a sign of the extraordinary demand for the greenback, which was near its strongest in more than three years. Asian stocks were mostly lower and European futures slumped. Yields rose.
US After Hours GES +25.7%, STLD +6.5%, FIVE +4.5% up on earnings/guidance; EL -9% and MAR -4.7% fall on withdrawn guidance, TLRD -10.4%, ONEM-2.3%

Nikkei -1.04% Hang Seng -2.25% CSI -0.84% Shanghai -0.57% Shenzen +0.62%

Eur$ 1.0935 CNH 7.0989 CNY 7.0704 JPY 108.53 GBP 1.1558 CHF 0.9655 RUB 79.79 TRY 6.5037 WTI$ 23.13 +1.2%

S&P -1,52% NAsdaq -1.09% EuroStoxx +0.80% (rally from -2% on the last 20') FTSE -0.25% Dax +0.58% SMI +2.15%

Macro :
- ECB’s Lagarde Says No Limits To Commitment to Euro
- World Could Need $26 Trillion Stimulus, Top Global Fund Says
- Austria Bans Short-Selling of Stocks for One Month
- Germany Considers Expanding Emergency Loan Program: Handelsblatt
- Senate Passes Virus Relief Bill, Plans for Even Bigger Stimulus
- Ackman Aggressively Buying Stocks Including Hilton: CNBC
- Portugal Will Declare State of Emergency to Contain Outbreak
- U.S. May Take Equity Positions as Part of Aid, Kudlow Says
- U.S. Investor Bull-Bear Spread -16.8: AAII

Keep an eye on :
- AC FP : Jefferies Confident on EU Hotels Even in ‘Extreme Scenario’
- AIR FP : Emirates Mulls Grounding Its A380 Fleet as Virus Spreads
- AF FP : France Would Consult Dutch on Any Move to Back Air France-KLM
- APAM NA : Aperam Temporarily Halts Production at Some European Lines
- BATS LN : BAT Studies Stimulants Like Cannabis for Nicotine-Free Products
- BNP FP : SocGen, BNP Win Capital Break as France Lets Banks Tap Buffers
- IAG LN : Intl. Airlines Group CEO Walsh Offers to Cut Pay by 20%: Sky
- BUCN SW : Bucher Reports Temporary Shut-Down of French Production Sites
- BWO NO : BW Offshore Decides to Defer About $60M of Planned Capex
- CNP FP : CNP Assurances Says Solvency Ratio High, Affirms Div EU0.94/Shr
- COLOB DC : Coloplast Cuts Full Year Organic Revenue at Constant FX Forecast
- CON GY : Continental to Close Some of Its Plants: Wirtschaftswoche
- CSGN SW : Credit Suisse Says Pretax Profit in Jan., Feb. Exceeds 1Q 2019
- DAI GY : Mercedes SUV Plant Likely to Be Shut Down Due to Parts Shortage
- DFDS DC : DFDS Suspends Dividend, 2020 Outlook
- EZJ LN : Easyjet Boss Warns of Bankrupt Airlines Over Coronavirus Crisis
- ENI IM : Eni Cancels Share Buyback With Oil Slump Forcing Spending Review
- EQNR NO : Equinor Defers Bay Du Nord Oil Project Off Canada: Upstream
- EQNR NO : Equinor’s Management Decides to Give Up Their Bonus for 2020: DN
- ERF FP : Eurofins Offering Coronavirus Testing in France, Spain, Brazil
- FFP FP : FFP Says It Can Increase Stake in PSA Group by 2%
- FCA IM : Fiat Chrysler to halt North American production for two weeks due to coronavirus
- FGP LN : Tchenguiz Says No Longer Holds ‘Material Interest’ in FirstGroup
- FPE GY : Fuchs Petrolub First Quarter Ebit EU321 Mln
- HEI GY : HeidelbergCement Skips 2020 Outlook Over Virus Uncertainty
- IFX GY : Infineon's Cypress M&A Needs to Offset Its Autos Weakness: React
- INS GY : Instone Real Estate FY Adjusted Ebit Beats Highest Est.
- JYSK DC : Jyske Bank Suspends Guidance for 2020, Postpones AGM
- KESKOB FH : Kesko Issues Profit Warning, Pulls Previous Sales Guidance-
- KRN GY : Krones Sees Full Year Pretax Profit Margin +3.2% To +3.7%
- SKB GY : Koenig & Bauer Full Year Ebit Misses Lowest Estimate
- KNIN SW : Kuehne+Nagel Faces Serious Delays in Europe From Closed Borders
- KVAER NO : Kvaerner Asks Shareholders to Scrap Dividend
- LHA GY : Lufthansa in Survival Mode as Repatriation, Supplies in Focus
- METN SW : Metall Zug Full Year Ebit CHF38.8 Mln, -57% Y/y
- MTRO LN : Steven Cohen Cuts Stake in Metro Bank Below 3%
- ML FP : Michelin Closes European Factories, Forecast No Longer Relevant
- TYRES FH : Nokian Covid-19 Temporary Layoffs Prove Timely Response: React
- NOEJ GY : Norma Group to Cut Production in EMEA, Americas From Next Week
- NAS NO : Norwegian CEO Says Norway Government Meeting Was ‘Constructive’
- OCDO LN : Ocado Shuts Down Website; Fully Booked for Four Days
- OSR GY : Osram Withdraws 2020 Guidance On Covid-19
- PNDORA DC : Pandora Closes Stores in U.S. for Two Weeks
- PAT GY : Patrizia Maintains 2020 Oper Income EU120 Mln To EU140 Mln
- UG FP : FFP Says It Can Increase Stake in PSA Group by 2%
- PUB FP : Publicis Says Board Has Decided to Maintain 2.30 Euros Div/Shr
- QIA Gy : Qiagen Launches Covid-19 Test Kit in Europe After CE Marking
- ROG SW : Roche to Study Actemra/Roactemra for Covid-19 Pneumonia Patients
- SFQ GY : Saf-Holland Skips 2019 Div., Plans Investments of 3% of Sales
- SIM DC : SimCorp Withdraws 2020 Guidance, Plans to Pay Dividends
- GLE FP : SocGen, BNP Win Capital Break as France Lets Banks Tap Buffers
- SON PL : Sonae 2019 Revenue Rises 9% to EU6.4b, Raises Dividend by 5% (1)
- TEL NO : Telenor Names Bachke New CFO; Rostrup to Head Asia Operations
- TIT IM : Italy Watchdog Asks Phone Carriers to Improve Internet Bandwidth
- TLG GY : TLG Immobilien Prelim Full Year FFO I Per Share EU1.37
- ROSE SW : Zur Rose Full Year Ebitda Loss CHF13.8 Mln
- UHR SW : Rolex Shuts Plants as Watchmakers Prepare for Worst Year Ever
- URW NA : Unibail-Rodamco-Westfield Has EU10.2b Cash, Undrawn Credit Lines
- VOS GY : Vossloh 2020 Sales Forecast Midpoint Meets Estimates

>>> US After Hours Summary: GES +25.7%, STLD +6.5%, FIVE +4.5% up

After Hours Summary: GES +25.7%, STLD +6.5%, FIVE +4.5% up on earnings/guidance; EL -9% and MAR -4.7% fall on withdrawn guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: GES +25.7%, STLD +6.5% (guides Q1 higher), FIVE +4.5%, PD +3.2%, TCOM +1.7%, WSM +0.7%

Companies trading higher in after hours in reaction to news: CHEF +19.4% (issues update on liquidity), CBTX +4.3% (suspends share repurchase program), DRNA +4.1% (receives orphan drug designation from FDA for DCR-A1AT), KL +3.9% (increases dividend), FITB +2.9% (announces customer relief from coronavirus), CNQ +2% (provides corporate update on capital flexibility), FCAU +1.8% (will cease production at its plants across North America), ABT +1.1% (announces that the FDA has issued Emergency Use Authorization (EUA) for the co's molecular test for novel coronavirus), SBUX +1% (bullish Mad Money interview on CNBC), SQ +0.9% (FDIC Board conditionally approves Square's application for deposit insurance), JNJ +0.7% (Janssen unit submits NDA to the FDA for multiple sclerosis), MMS +0.6% (expands common stock repurchase authorization)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: TLRD -10.4%, ONEM -2.3%

Companies trading lower in after hours in reaction to news: CARG -16.9% (offers 50% rate reduction on all marketplace subscription billings in April; suspends full year guidance), EL -9% (withdraws FY20 guidance), MAR -4.7% (withdraws all aspects of its 2020 outlook; provides business update), PTLA -4.1% (co suspends face-to-face field activity and instituted a mandatory work from home policy), PFE -2% (announces clinical data for two studies), MTN -1.1% (anticipates a negative impact of $180-$200 mln to EBITDA from coronavirus), VIAC -0.9% (suspends marketing efforts to sell Black Rock), ICE -0.1% (to move temporarily to fully electronic trading, effective March 23)

>>> US Close Dow -6.30% S&P -5.18% Nasdaq -4.70% Russell -10.42%

Closing Stock Market Summary

The S&P 500 fell 5.2% on Wednesday, although it did drop as much as 9.8% intraday as pandemic fears continued to hit not only stocks but also Treasuries and commodities. A strong finish also pared losses in the Dow Jones Industrial Average (-6.3%) and Nasdaq Composite (-4.7%) but did little for the Russell 2000 (-10.4%). 

Despite the coordinated stimulus packages announced by central banks and the massive stimulus plans laid out by Washington, confidence was lacking due to the growing outbreak of COVID-19 and the continued shutdown of the economy. Shortly before the close, the Senate finally passed the House bill that provides unemployment and sick leave benefits.

Selling was widespread and was made most pronounced in the cyclical energy (-14.3%), financials (-8.7%), and industrials (-7.2%) sectors. The energy space was crushed by the 24.4% collapse in WTI crude ($20.42/bbl, -$6.06), which fell to its lowest level since 2002. The communication services sector (-2.8%) declined the least today.

As part of the proposed $1 trillion stimulus package, the Treasury Department clarified today it would seek $300 billion for small business interruption and a secured lending facility of $50 billion for airlines. Separately, the FHFA announced the suspension of foreclosures and evictions for 60 days for enterprise-backed mortgages.

New measures taken to contain the virus included the closure of the U.S.-Canadian border for non-essential traffic and President Trump invoking the Defense Production Act, which gives the White House the right to require companies to manufacture medical supplies in short supply.

Boeing (BA 101.89, -22.25, -17.9%), meanwhile, asked for at least $60 billion of aid, including loan guarantees, for the aerospace industry. AT&T (T 32.85, -0.89, -2.6%), Simon Properties (SPG 44.92, -13.94, -23.7%), and the big three U.S. automakers were among the latest companies to temporarily close or reduce operations.

Safe-haven assets like gold ($1516.40/ozt, -$8.46, -0.6%) and U.S. Treasuries weren't so safe today, with losses suggesting that many investors were raising cash in these uncertain times. Longer-dated maturities remained under heavy selling pressure amid the view that more debt will be needed for the massive fiscal stimulus plans. 

The 2-yr yield rose seven basis points to 0.52%, and the 10-yr rose 27 basis points to 1.27%. The U.S. Dollar Index rose 1.4% to 100.97. 

Reviewing Wednesday's economic data:

  • Housing starts were stronger than expected in February at a seasonally adjusted annual rate of 1.599 million (consensus 1.475 million), yet they were down 1.5% m/m and will be expected to drop further in March. Building permits were weaker than expected at 1.464 million (consensus 1.480 million) and were down 5.5% m/m.
    • The key takeaway from the report is that it will be largely dismissed on the grounds that it is "old" data in a new world that is dealing with economic shutdown measures to curb the spread of COVID-19.
  • The weekly MBA Mortgage Applications Index declined 8.4% following last week's 55.4% surge.

Looking ahead, investors will receive the weekly Initial Claims and Continuing Claims report, the Q4 Current Account Balance, and the Philadelphia Fed Index for March on Thursday. 

  • Nasdaq Composite: -22.1%
  • S&P 500: -25.8%
  • Dow Jones Industrial Average: -30.3%
  • Russell 2000: -40.6%

NY Post: Bridgewater funds sink lower amid coronavirus woes

Bridgewater funds sink lower amid coronavirus woes

Bridgewater Associates, the Ray Dalio-led hedge fund giant famous for making money during the 2008 financial crisis, has posted double-digit losses so far this year amid sharp market declines sparked by the coronavirus outbreak, according to a note sent to clients on Wednesday and seen by Reuters.

Through March 16, Bridgewater’s All Weather 12 percent volatility “risk parity” fund fell about 14 percent for the year; its Pure Alpha 18 percent volatility hedge fund declined about 21 percent; and its Major Markets 14 percent volatility hedge fund dropped about 7 percent, Dalio wrote.

Dalio wrote that the performance was “not what I would want” but was “consistent with what I would have expected under the circumstances.”

Bridgewater has assets under management of about $160 billion, according to its Web site, and is trusted by some of the world’s largest investors to safeguard their money no matter the economic environment.


The S&P 500 index tumbled 7 percent on Wednesday, triggering a 15-minute trading halt of Wall Street’s main indexes for the second time this week, on fears that stimulus measures may not be enough to avert a coronavirus-driven recession.

Dalio said Bridgewater’s portfolios were positioned for relative economic strength but also had hedges on in case of an unanticipated steep market decline. The firm’s risk controls worked as designed, he said, adding that Bridgewater remained liquid and able to adjust its positions.

“Going forward, the world has now crossed a very dangerous threshold for financial markets and economies that poses great risks for all investors,” Dalio wrote, citing interest rates falling below zero percent amid an economic downturn, inequality and populism. “It is one we have been preparing for for a long time.”

“There has been a rumor going around China that Bridgewater has ‘crashed’ or ‘is in trouble,’” Dalio wrote, attaching the client note with the firm’s performance and views. “You have my word that that is totally false and that Bridgewater is totally safe.”

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He condemned “bad people” who spread such rumors. “I think we might have identified the rumor monger which we will pursue legally and disclose publicly if we are able.”