Archives of “June 12, 2020” day

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Eurozone April industrial production -17.1% vs -18.5% m/m expected

  
  Analysis
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Latest data released by Eurostat – 12 June 2020

  • Prior -11.3%; revised to -11.9%
  • Industrial production WDA -28.0% vs -28.8% y/y expected
  • Prior -12.9%; revised to -13.5%
Those are some horrific numbers but again, it isn’t surprising at this stage since we know that April is the worst month in terms of economic activity due to the widespread lockdown measures in the region and the peak fallout from the virus outbreak.
This all just serves to reaffirm that Q2 economic conditions are set to be the worst in history for the euro area – much like most parts of the world.

Ryanair, EasyJet, British Airways launch legal action against UK government over quarantine rules

  
  Analysis

The airlines are demanding changes to the government’s quarantine rules

The UK government had imposed a ruling from 8 June that any traveller will have to self-isolate for two weeks due to the coronavirus outbreak situation and the decision has irked airlines, who are arguing that it is not necessary to do so.
That is resulting in the legal action being taken here, although I’m not sure how this will actually play out to be honest.
But the airlines are demanding the government to adopt back its previous quarantine ruling back in March, whereby only travellers from “high risk” countries are needed to adhere to the two-week self-quarantine period.
Not the least bit surprising as a two-week quarantine would basically defeat any purpose of travel to the UK for business/leisure at this stage. And that’s bad business for the travel sector and for airlines in general.

China infrastructure investment over the next 5years expected to be $1.4 trillion

  
  Analysis

The Wall Street Journal totalling up the many projects underway and planned and coming up with the figure.

  • Since the start of the year, municipal governments in Beijing, Shanghai and more than a dozen other localities have pledged 6.61 trillion yuan ($935 billion) to the cause, according to a Wall Street Journal tally. 
  • Chinese companies, urged on by authorities, are also putting up money.
  • Under a plan outlined earlier this year by China’s Ministry of Industry and Information Technology, these efforts would contribute to at least $1.4 trillion in investments during the next five years in artificial intelligence, data centers, mobile communications and other projects.
Link for more (may be gated)
The next few months will be instructive on how well the country is recovering from the virus outbreak.
The Wall Street Journal totalling up the many projects underway and planned and coming up with the figure.

North Korea says the US is ‘hell-bent’ on exacerbating tensions

  
Analysis, Politics

Someone appears to have rattled the North Korean cage, KCNA on comments from the NK foreign minister:

  • says relations with the US have now shifted into despair
  • US is hell-bent on exacerbating tensions
  • US policy proves US remains long-term threat to our people
  • NK says sees no improvement in relations to be made by maintaining relationship between Kim and Trump
  • says will build up more reliable force to confront US military threats
I thought romcoms were supposed to have happy endings?
Someone appears to have rattled the North Korean cage, KCNA on comments from the NK foreign minister:

Major indices have worst day since March 16th.

  
Analysis, US Market
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Dow and S&P down for the 3rd day in a row

The major indices had there worst day since March 16 as concerns about the growth prospects and increases in coronavirus cases weigh on equities.  Initial jobless claims should another 1.5 million increase which certainly did not help.

  • The Dow is closing at the lowest level since May 27.
  • The Dow and S&P are down for the 3rd day in a row
  • all 30 of the Dow stocks close lower with Boeing the weakest at -16.42%
  • worst day since March 16 for the major indices
  • The NASDAQ index snapped it’s a 4 day win streak
  • Dow and S&P on track for its worst week in 3 months
  • S&P index closes below its 200 day moving average at 3013
  • the Dow industrial average is within 300 points of a 10% decline from the high (24824 is the level)
  • the Dow industrial average fell back below its 100 day moving average at 25123.55, but is closing just above that level at 25128.13
The final numbers are showing:
  • S&P index -188.04 points or -5.89% up 3002.10. The low for the day reached 2999.49. The high was way up at 3123.53
  • NASDAQ index fell -527.62 points or -5.27% to 9492.72. That was just above the low for the day at 9491.30. The high was up at 9868.02
  • The Dow industrial average fell 1861.82 points or -6.9% to 25128.13. The low for the day reached 25082.72. The high was up at 26294.08
big losers today included:
  • Boeing, -16.42%
  • United Airlines, -16.09%
  • Delta Air Lines, -14.01%
  • Citigroup, -13.37%
  • Schlumberger, -11.60%
  • Southwest Airlines, -11.58%
  • Marriott, -10.91%
  • Fiat Chrysler, -10.10%
  • Bank of America, -10.0%
  • Ford Motor, -9.9%
  • Wells Fargo, -9.83%
  • PNC financial, -9.62%
  • Goldman Sachs, -9.14%
  • IBM, -9.12%
  • J.P. Morgan, -8.37%
The pattern of airlines and financials are chief among the biggest decliners today.
The biggest gainer in the Dow 30 today was Walmart which only fell by -0.87%. Procter & Gamble was the next best performer with a -2.41% decline.
Were there any winners today?
  • Zoom increase by 0.54%
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