European shares end the session with declines

German DAX -2.1%. France’s CAC down -1.9%

The major European indices are ending the session with declines.
  • German DAX, -2.0%
  • France’s CAC, -1.9%
  • UK’s FTSE 100, -2.8%
  • Spain’s Ibex, -2.7%
  • Italy’s FTSE MIB, -1.9%
  • Portugal’s PSI 20, -2.9%
in the European debt market, the benchmark 10 year yields are ending the session mixed. Germany and UK yields are down marginally (-1 basis point and -0.3 basis points respectively). Italian yields rose 1.7 basis points despite ECB’s Villeroy’s comment that yields and spreads do matter to the ECB.   Portugal 10 year yields are up 2.2% as well.

French study says that nearly 3 million people in the country have been infected by the coronavirus

This according to a study by the Pasteur Institute


The study was published yesterday, with researchers saying that the infection rate in the worst-hit parts of France i.e. eastern part of the country and Paris region, is somewhere between 9 and 10 percent on average.

That is leading to about 4.4% of the French population, or 2.8 million people, to have been infected by the coronavirus – which is much higher than the official case count.
This is interesting to see because it shares a similar result to a Spanish study, which suggested that 5% of the country’s population had contracted the coronavirus.
But the more important takeaway from both studies is that they note the number of infections are nowhere near achieving the so-called “herd immunity”, which requires around 65% of the population to have been infected and recovered from the infection.
As such, the French research institute says that “without a vaccine, relying on the herd immunity alone will not be enough to avoid a second wave at the end of the lockdown” and that “efficient control measures must be upheld even after 11 May”.
I don’t think we will ever get to the bottom of figuring out the true count of the coronavirus infections globally, but what is more important is to observe the trend.
If you’re looking to travel globally in the future, I think it is prudent to acknowledge that it will definitely come with risks so countries with higher transparency – or at least what is perceived to be – and better handling will surely be rewarded in that regard.
As for economies and markets, the numbers can be 100,000 or 10,000,000 but at the end of the day it all depends on what governments are doing i.e. lockdown/restrictions.

IEA: The outlook for global oil markets has ‘improved somewhat’

IEA with their latest report on the oil market

  • Demand is seen a little stronger-than-expected
  • Demand forecast pushed up by 700k bpd
  • But still remains on track for a plunge of 8.6 mil bpd (roughly 9%)
  • Oil production is on track for a ‘historic decline’ this month – lowest level in 9 years
  • This owes to OPEC+ and other international producers slashing output
  • Oil market is still in a very difficult position
A very minor lift in the oil outlook but make no mistake, the overall conditions in the market remains highly subdued considering the supply and demand imbalance caused by the coronavirus pandemic across the globe. IEA is quick to warn about that as well:

“.. but major uncertainties remain. It is unclear whether governments can resume economic activity without causing renewed outbreaks of the pandemic, and how far the OPEC+ alliance will implement the promised supply curbs.”

BOJ’s Kuroda: Can expand asset purchases, cut rates if needed to ease further

BOJ governor, Haruhiko Kuroda, remarks

  • Can also increase market operation tools if needed
  • BOJ will take steps deemed most appropriate at the time
  • Japanese economy will be in a severe state for the time being
Nothing new that hasn’t already been said before by Kuroda. Diving deeper into negative rates is still a far reach, for now they will just continue to hoard everything else.

Intelsat has filed for Chapter 11 protection

Intelsat is a communications satellite services provider listed on the NY stock exchange, part of the Russell 2000 index.

  •  has undertaken a financial restructuring
  • restructuring process is intended to enhance the Company’s liquidity and will likely result in a substantial reduction of Intelsat’s legacy debt burden
  • To facilitate the financial restructuring, Intelsat and certain of its subsidiaries have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division.
  • Intelsat has secured a commitment for $1 billion of new financing
  • company says to co9ntunie day to day oeprations
Go to top