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Aston Martin shares surge after Mercedes-Benz exec is named new CEO - CNBC
Shares of Aston Martin surged Tuesday after the famed British car brand announced the head of Mercedes-Benz's performance division as its next CEO.
Shares of Aston Martin surged Tuesday after the famed British car brand announced the head of Mercedes-Benz's performance division as its next CEO. Tobias Moers, chief executive of Mercedes-AMG, will succeed Andy Palmer, who is stepping down effective immediately after leading Aston Martin since 2014. Moers will begin Aug. 1, the company said Tuesday. Shares of Aston Martin on Tuesday jumped about 40% on the London Stock Exchange before leveling off at about 43.50 pence (54 cents), up roughly 23%. The company went public with shares at £19 in October 2018. Lawrence Stroll, Aston Martin executive chairman, said in a statement Tuesday that the company's board "determined that now is the time for new leadership to deliver our plans." Keith Stanton, head of Aston Martin's manufacturing, has been appointed interim chief operating officer to support Stroll ahead of Moers joining the company. The management shake-up comes months after Stroll, a Canadian billionaire, became Aston Martin chairman in March after providing £536 million ($653 million) in cash to save the company. Aston Martin, best known for being the brand of choice of fictional secret agent James Bond, has struggled for years to gain traction with its car-centric lineup. The company is pinning much of its future success on the upcoming DBX, its first-ever SUV. The $189,900 vehicle is due out this summer. The automaker also faces a challenging global vehicle market due to the coronavirus pandemic. Auto research firm IHS Markit expects worldwide vehicle sales to decline 22% this year to less than 70 million units, led by a roughly 27% fall in the U.S. to 12.5 million units, compared with a year ago. Moers, in a statement, said he is "truly excited to be joining Aston Martin Lagonda at this point of its development." Correction: This story has been updated to reflect that shares of Aston Martin are in pence. A previous version misidentified the currency.
Watch live: New York Gov. Andrew Cuomo holds a press conference on the coronavirus outbreak from the NYSE - CNBC
New York Gov. Andrew Cuomo is holding his daily press conference on the Covid-19 outbreak.
[The stream is slated to start at 11:30 a.m. ET. Please refresh the page if you do not see a player above at that time.] div > div.group > p:first-child"> New York Gov. Andrew Cuomo is holding his daily press conference on the Covid-19 outbreak from the New York Stock Exchange in Manhattan as the state works toward reopening more companies for business. The virus has spread to more than 362,700 people and killed at least 29,220 across the state as of Tuesday morning, according to data compiled by Johns Hopkins University. On Friday, Cuomo said the daily number of new Covid-19 infections in New York had dropped below the case counts when the state first began fighting its outbreak. New York has started to deploy its phased reopening plan in regions of the state that have met seven health criteria, including declining hospitalizations and new cases, as well as sufficient hospital bed and testing capacity, among other requirements. The Centers for Disease Control and Prevention recently outlined a "three-phased approach" for reducing social distancing and proposed the use of six "gating" indicators to assess when to move through another phase. CNBC's Noah Higgins-Dunn contributed to this report. Read CNBC's live updates to see the latest news on the Covid-19 outbreak.
Stock market live updates: Dow futures rally 500 points, vaccine hope, Southwest jumps - CNBC
A conversation about the latest market-moving news, including progress on a coronavirus vaccine candidate.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 20, 2020. This is a live blog. Please check back for updates. 8:51 am: Canaccord sees opportunity in 'value, banks and tanks' Canaccord strategist Tony Dwyer expects a "relative bounce" in "value, banks and tanks (industrials)" as the economy continues to reopen. "The SPX has seen a historic move on the back of the mega-cap 'COVID-19' beneficiaries of the shelter-in-place policy for most of the country," Dwyer wrote in a note. "As the economy accelerates the reopening and the financial conditions reverse their recent tightening, there is likely to be a shift into those areas that benefit from a broader and more vibrant recovery." Imbert, Bloom 8:14 am: NYSE partially reopens Select traders and personnel returned to the New York Stock Exchange floor on Tuesday for the first time since March 23. There are slated to be about 80 floor brokers at the exchange, which is about 25% of the pre-pandemic level. NYSE President Stacey Cunningham said repeatedly during the intervening period that the floor would reopen as soon as it was safe to do so, arguing that the in-person experience made trading more efficient. Pound, Pisani 8 am: U.S. oil on track for best month ever West Texas Intermediate, the U.S. oil benchmark, is on track for its best month ever after an increase in demand as well as ongoing production cuts have lifted prices. WTI gained 79 cents on Tuesday, or 2.4%, to trade at $34.04 per barrel, bringing its month-to-date gain to more than 70%. International benchmark Brent crude rose 1.5% to trade at $36.06 per barrel. Still, WTI is well below its January high of $65.65 per barrel, and experts warn that factors including a second wave of coronavirus cases could prompt a return to historic lows. Stevens 7:58 am: Reopening stocks rip higher Shares of stocks positioned to benefit from the economy reopening rose in premarket trading on Tuesday. Airlines were a big winner with United Airlines jumped more than 7%. Delta and American Airlines rose more than 6%. Southwest rallied 6.5%, helped by an upgrade to buy at UBS. Cruise lines Carnival and Norwegian Cruise Line rose 9.3% and 8.8%, respectively. Retailers and restaurant companies also jumped, with hopes consumers will return to their stores and dining rooms. TJX Companies rose 2.3% and Nordstrom popped more than 3%. Darden Restaurants ticked nearly 4% higher. Casino stock MGM Resorts gained more than 7% before the bell. Fitzgerald 7:47 am: S&P 500 set to reach key level Tuesday's gains set up the S&P 500 on track to reach or break its 200-day moving average for the first time since March 5. S&P 500 futures implied a gain of more than 50 points at the open. That would put the broader-market index close to its 200-day average of 2,999.81. Breaking above that level could signal a change in the market's long-term trend from bearish to bullish. Imbert 7:37 am: Stocks run higher on positive news on vaccines and reopenings Wall Street latched onto more positive news Tuesday on the coronavirus front, with progress made both on the reopening of several states and progress made towards a vaccine. On the medical front, Novamax said it has started a human study of its vaccine, while Merck added that it is in collaboration with scientific research organization IAVI to develop a potential vaccine. Testing also accelerated, with nearly 500,000 reported Monday and a new low of 3.8% positives, according to Tom Lee at Fundstrat. At the same time, New Jersey continued its steps forward, reopening its beaches over the Memorial Day weekend largely without incident. Overall, states that reopened prior to May 1 have seen a 29% reported drop in cases over the past three weeks. Futures popped on the combination of positive news and pointed to a 500-point in the Dow two hours before the market open. Cox 7:26 am: Southwest shares jump after UBS upgrades to buy Shares of Southwest jumped more than 6% during Tuesday's premarket trading after UBS upgraded the stock to a buy rating. "We see a clearer path for domestic traveland have started to see enough evidence of LUV's cash burn reduction that some of the tail risk is removed," the firm said. UBS also said that the company has the clearest balance sheet restoration and fundamental valuation among the group. The firm's 12-month price target of $41 is about 42% above where the stock currently trades. Last week, Southwest said that new bookings began to outpace cancellations. Shares of the airline have dropped 46% this year. Stevens 7:24 am: Stock futures rally on coronavirus vaccine hopes U.S. stock futures were sharply higher on Tuesday morning as traders grew more optimistic about the prospects of the economy successfully reopening and a potential coronavirus vaccine. Dow Jones Industrial Average futures traded about 500 points higher, or 2%. S&P 500 and Nasdaq 100 futures gained 1.8% and 1.6%, respectively. Stocks that would benefit from the reopening of the economy led the sharp gains. Carnival, MGM Resorts and United Airlines all rose at least 6.8%. With reporting by Jeff Cox, Jesse Pound and Bob Pisani. Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
Treasury yields rise as coronavirus vaccine hopes drive risk-on sentiment - CNBC
U.S. government debt prices were lower on Tuesday in a holiday-shortened week, with mounting optimism about a coronavirus vaccine driving some risk-on sentiment from investors.
U.S. government debt prices were lower on Tuesday in a holiday-shortened week, with mounting optimism about a coronavirus vaccine driving some risk-on sentiment from investors. At around 4:25 a.m. ET, the yield on the benchmark 10-year Treasury note was up at 0.6949% and the yield on the 30-year Treasury bond rose to 1.4129%. Yields move inversely to prices. American biotech company Novavax said Monday that it had started the first human study of its experimental coronavirus vaccine, with initial results on safety and immune responses expected in July. The news followed Moderna's announcement last week that all 45 patients in its vaccine trial had developed coronavirus antibodies. As states look to tentatively reopen their economies, the U.S. has now confirmed more than 1.6 million cases of the virus, resulting in more than 98,000 deaths, according to Johns Hopkins University. Investors will also keep an eye on a flaring of trade tensions between the U.S. and China, with disputes over blame for the coronavirus pandemic and new Hong Kong security laws threatening to derail the landmark "phase one" trade agreement signed in January. On the data front, S&P/Case-Shiller home price readings for March are due at 9 a.m ET Tuesday, before April's new home sales figures at 10 a.m. ET. Auctions will be held Tuesday for $63 billion of 13-week Treasury bills, $54 billion of 26-week bills, $65 billion of 42-day bills and $44 billion of 2-year notes.
Hong Kong demand for VPNs surges on heels of China's plan for national security laws - CNBC
Atlas VPN said installations of the tool that helps people bypass web restrictions surged again on Friday, up more than three-fold from the previous day, while search interest in the keyword term "VPN" rocketed 1,680% on May 21 from a day earlier.
Demand for virtual private networks in Hong Kong surged more than six-fold last Thursday as Beijing proposed tough new national security laws for the financial hub, reflecting concerns over internet privacy, according to a VPN provider. Atlas VPN said installations of the tool that helps people bypass web restrictions surged again on Friday, up more than three-fold from the previous day, while search interest in the keyword term "VPN" rocketed 1,680% on May 21 from a day earlier. Search interest in the word "VPN" hit a record high on Friday, it added, citing data from Google Trends. Hong Kong returned to Chinese rule in 1997 and is governed under a "one country, two systems" formula that guarantees it a high degree of autonomy not seen in mainland China, including freedom of expression. The former British colony also enjoys unrestricted internet access, unlike on the mainland where the likes of Google, Facebook and Twitter are blocked. Beijing's plans to directly enact national security legislation sent a chill through financial markets and drew a swift rebuke from foreign governments, international human rights and privacy groups, who fear it could lead to increased surveillance and censorship. Hong Kong police said they arrested more than 180 people on Sunday, when authorities fired tear gas and water cannon to disperse anti-government protests over the planned security legislation. "If Hong Kong falls under the same digital restrictions as Chinese citizens in the near future, then we can expect an even higher interest in VPN services," said aid Rachel Welsh, Chief Operating Officer of Atlas VPN. The security legislation aims to tackle secession, subversion and terrorist activities and could see Chinese intelligence agencies set up bases in Kong, one of the world's leading financial hubs. Hong Kong and mainland Chinese officials have sought to reassure investors their interests would not be harmed and said the laws would only target a minority of "troublemakers" who had posed "imminent danger" to China's national security.
Knicks legend Patrick Ewing out of the hospital after testing positive for coronavirus - CNBC
The basketball Hall of Fame member revealed Friday that he had become infected, NBC News reports.
Basketball legend Patrick Ewing has been released from the hospital and is resting at home after having tested positive for the coronavirus, his family said Monday. "I want to thank all of the doctors and hospital staff for taking care of my father during his stay, as well as everyone who has reached out with thoughts and prayers to us and since his diagnosis," his son Patrick Ewing Jr. said in a statement. "My father is now home and getting better. We'll continue to watch his symptoms and follow the CDC guidelines. I hope everyone continues to stay safe and protect yourselves and your loved ones." More from NBC News:Big changes coming to public pools this summer as communities face tough choice on reopening'I'm looking for the truth': States face criticism for COVID-19 data cover-upsCountries try 'travel bubbles' to save post-lockdown tourist season The elder Ewing, the men's basketball coach at Georgetown University, who was inducted into the Naismith Memorial Basketball Hall of Fame in 2008, revealed Friday that he had tested positive for the coronavirus and was being treated at a local hospital. Ewing, 57, just completed his third season as coach at his alma mater. No other members of the team or the staff have tested positive, Georgetown said. Ewing, a 7-foot center, played 17 seasons in the NBA, 15 for the New York Knicks. He was an 11-time All-Star. No other Knicks player has ever scored more points, grabbed more rebounds or blocked more shots than Ewing. He's the all-time leader in rebounds and blocked shots at Georgetown and No. 2 in career scoring.
World Health Organization warns of 'second peak' in areas where coronavirus is declining - CNBC
Countries where coronavirus infections are declining could still face an "immediate second peak" if they let up too soon on measures to halt the outbreak, the World Health Organization said on Monday. The world is still in the middle of the first wave of the coronavirus outbreak, WHO emergencies head Dr Mike Ryan told an online briefing, noting that while cases are declining in many countries they are still increasing in Central and South America, South Asia and Africa. Ryan said epidemics often come in waves, which means that outbreaks could come back later this year in places where the first wave has subsided. There was also a chance that infection rates could rise again more quickly if measures to halt the first wave were lifted too soon. "When we speak about a second wave classically what we often mean is there will be a first wave of the disease by itself, and then it recurs months later. And that may be a reality for many countries in a number of months' time," Ryan said. "But we need also to be cognizant of the fact that the disease can jump up at any time. We cannot make assumptions that just because the disease is on the way down now it is going to keep going down and we are get a number of months to get ready for a second wave. We may get a second peak in this wave." He said countries in Europe and North America should "continue to put in place the public health and social measures, the surveillance measures, the testing measures and a comprehensive strategy to ensure that we continue on a downwards trajectory and we don't have an immediate second peak." Many European countries and U.S. states have taken steps in recent weeks to lift lockdown measures that curbed the spread of the disease but caused severe harm to economies.
Novavax starts clinical trial of its coronavirus vaccine candidate - CNBC
Novavax said on Monday it has started the Phase 1 clinical trial of a novel coronavirus vaccine candidate and has enrolled the trial's first participants, with preliminary results slated for July.
Novavax said on Monday it has started the Phase 1 clinical trial of a novel coronavirus vaccine candidate and has enrolled the trial's first participants, with preliminary results slated for July. The Maryland-based late-stage biotechnology company in April said it identified the candidate, NVX-CoV2373, with which it planned to use its Matrix-M adjuvant to enhance immune responses. Adjuvants are mainly used to make vaccines induce a strong immune response, including through the greater production of antibodies, and provide longer-lasting protection against viral and bacterial infection. Novavax said it expects preliminary immunogenicity and safety results from the trial in July. The announcement comes as drugmakers pause clinical trials for other ailments and race to find an antidote for Covid-19, the illness caused by the novel coronavirus which has infected more than 5.3 million people worldwide and killed over 343,000. Novavax said, upon successful completion of Phase 1, the Phase 2 portion of the trial will be conducted in several countries, including the United States. The Phase 2 trial will assess immunity, safety and Covid-19 disease reduction in a broader age range, Novavax said.
Oil is on track for its best month ever after rebound, but traders say it's 'not out of the woods' - CNBC
Oil prices have jumped more than 70% in May, but uncertainty remains in the market.
In the last two months, oil has hit two very different first-of-its kind milestones. In April West Texas Intermediate, the U.S. oil benchmark, plunged below zero and into negative territory for the first time on record. Meanwhile May is shaping up to be WTI's best month ever, going back to the contract's inception in 1983an astonishing turnaround month-on-month. Improvements on both the demand and supply side of the equation have pushed prices higher. Data shows that people in the U.S. and China are starting to hit the road again, while producers around the globe have cut output at record rates in an effort to prop up prices. The contract has jumped more than 70% in May and posted four straight weeks of gains, but some traders warn that the near-term outlook for oil remains uncertain, and that prices could head back into the $20s after settling around $33 on Friday. Additionally, part of WTI's blistering rally this month is due to the historic low from which it bounced. Prices are still about 50% below January's high of $65.65, significantly cutting into profits for energy companies, which are often saddled with debt. A number of U.S. energy companies have already filed for bankruptcy protection, including Whiting Petroleum, which was once a large player in the Bakken region. If prices stay at depressed levels, there could be more casualties. Still, the market has shown signs of rebalancing itself, and analysts say that if demand continues to improve and producers keep wells shut-in, the worst could be over for oil. "The oil market rebalancing continues to gather speed, driven by both supply and demand improvements ... These improvements are taking out the risk of a sharp pull-back in prices although we re-iterate our view that the rebalancing will take time," Goldman Sachs said in a recent note to clients. "We believe that the next stage of the oil market rebalancing will be one of range-bound spot prices with the most notable shifts being a decline in implied volatility as well as a continued flattening of the forward curve without long-dated prices rising yet," the firm added. 'Tide is turning' While demand for petroleum products fell off a cliff in April, the outlook is improving as economies around the world begin to reopen. Raymond James, which has been tracking shelter-in-place orders, said that of the 3.9 billion people worldwide who have been under lockdown at some point since January, 3.7 billion, or 95%, have experienced some sort of reopening. Chinese demand for oil in April rebounded to 89% of what it was a year earlier, according to IHS Markit, and the firm expects May demand to be 92% of 2019s level. During February's low, demand in China, the world's largest oil importer, fell to just 40% compared to a year earlier. In the U.S., all 50 states have begun the reopening process to varying degrees, which means people are once again driving. Data from the Energy Information Administration has shown an uptick in gasoline demand, although there's still a way to go before the pre-coronavirus levels are reached. A worker on a an oil drill near New Town, North Dakota. "All eyes are on demand ... this is mainly a demand problem," said Bernadette Johnson, vice president of market intelligence at Enverus. She sees WTI hovering around the $20s to mid-$30s mark in the near-term, as demand continues to come back. "We're expecting Q3 will look better from a supply/demand balance standpoint. You need a market that's in equilibrium to start seeing higher prices, and so Q3 is really the first quarter where we'll see that happen, because a lot of the demand is supposed to come back," she added. Evercore ISI echoed this point, writing in a recent note to clients that supply will continue to outpace demand in the second quarter, but that by the third quarter the "tide will turn," at which point demand will exceed supply. Record production cuts On the other side of the equation, historically low oil prices forced producers to shut in production at a record rate. Beginning May 1, OPEC and its oil-producing allies took 9.7 million barrels per day of production offline, after agreeing to the deepest production cut in history during an extraordinary, multi-day meeting in April. Then, earlier in May, Saudi Arabia said that, beginning June 1, it would voluntarily cut an additional 1 million bpd, on top of its portion of the cuts agreed to by OPEC+. Kuwait and UAE were among the other cartel members that followed suit and said they would also exercise additional cuts. Norway, Canada and the U.S. are among the other nations that also announced well shut-ins as oil prices plummeted. The latest figures from EIA show that U.S. production has dropped 1.6 million bpd below the March high of 13.1 million bpd. Exxon, Chevron and ConocoPhillips are among the companies that have scaled back operations. Darwei Kung, head of commodities at DWS Group, said that the rebound in oil prices is riding on lasting production cuts. But if prices rise enough that producers, including those in the U.S., ramp up output again, there's a chance that OPEC+ could abandon its cuts in an effort to gain market share. "We view the most important consideration for the supply part of the equation is the ability for OPEC+R countries to stay with policy to maintain price stability," Kung said. "In doing so, they have to commit to the production cuts even if a third party, such as [the] U.S., increase production as the oil price recovers." Second wave of coronavirus cases? As the oil market begins to re-balance itself, traders say another big risk is a possible second wave of coronavirus cases and subsequent return to shelter-in-place restrictions. Francisco Blanch, head of global commodities at Bank of America, said this would have "devastating consequences." The firm said that the rebound in prices has come faster than expected, and forecasts WTI averaging $32 per barrel this year and $42 in 2021. Bank of America expects international benchmark Brent crude to average $37 this year. The contract settled at $35.13 per barrel on Friday and is also coming off a fourth straight week of gains. "It is not clear if the rest of the world [outside China] can successfully prevent major reoccurrence of COVID-19 spread, given the disparity between countries or states within a country on containing the disease. A second wave of infection can change the recovery for oil demand significantly," added Kung. He noted that souring relations between the U.S. and China could be another headwind for oil going forward. 'Not out of the woods' The WTI contract that plunged into negative territory in April was for crude that was set to be delivered in May. With storage rapidly filling, including in the U.S. hub in Cushing, Oklahoma, no one wanted to take delivery of oil as demand was expected to remain depressed throughout May and into June. Enverus' Johnson said this was the "painful period" needed to force companies to shut-in production, and that prices dipping into negative territory was the market functioning correctly. "We're definitely not out of the woods," she said, before adding that the set-up looks much better in the back half of the year. Barclays has a similar forecast, writing in a recent note to clients that oil prices will "remain volatile as participants try to find a path through the extreme distortions caused by a fall off the cliff in demand and a lagged supply response." For 2020 the firm sees WTI averaging $33 per barrel, before rebounding to $50 per barrel in 2021. - CNBC's Michael Bloom contributed reporting.
Asia markets trade mostly higher as China's National People's Congress continues - CNBC
China announced a new national security law on Friday, which, if implemented, would give Beijing more control over Hong Kong
Asia markets traded mostly higher on Monday as investor sentiment remained resilient despite growing concerns over the U.S.-China relationship. Australia's benchmark ASX 200 rose 118.60 points, or 2.16%, to 5,615.60, with all sectors finishing up. In Japan, the Nikkei 225 index added 353.49 points, or 1.73%, to 20,741.65 while the Topix index was up 24.40 points, or 1.65%, to 1,502.20. Prime Minister Shinzo Abe will lift the state of emergency for the coronavirus pandemic in Tokyo and four other prefectures on Monday, Kyodo News reported. It added that Abe is expected to hold a press conference to explain his government's plan, which would ease restrictions on economic activity. More than 5.4 million people worldwide have now been infected by the virus, which was first reported in China's Hubei province, and more than 345,000 people have died, according to data from Johns Hopkins University. South Korea's Kospi gained 24.47 points, or 1.24%, to 1,994.60. Mainland Chinese shares traded mixed: The Shanghai composite rose 0.15% to 2,817.97, the Shenzhen composite was fractionally lower at 1,750.82 and the Shenzhen component was down 0.11% at 10,592.84. The Hang Seng index in Hong Kong erased earlier losses of more than 1% to finish up 0.1% at 22,953.68. Last Friday, the index lost more than 5% after China announced a new national security law, which, if implemented, would give Beijing more control over Hong Kong and may incite further pro-democracy protests in the city. The draft measure was announced as China's National People's Congress (NPC) the country's parliament kicked off its annual session and will last until May 28. "Risk sentiment proved resilient, on Friday night, to concerns about the fallout from China introducing national security legislation in Hong Kong. Weakness in Asian equities gave way to a flattish European session, and mild positivity in the US," Hayden Dimes at ANZ Research said in a Monday morning note. Government departments in Hong Kong rallied behind Beijing's plans on Monday after thousands took to the streets to protest over the weekend, Reuters reported. Security Chief John Lee said "terrorism" was growing in the city and activities that harm national security became more rampant, the news wire said. Still, China's announcement drew criticism from U.S. officials. White House national security advisor Robert O'Brien said on Sunday that if Beijing goes ahead with implementing the controversial law, the U.S. government will likely impose sanctions on China. Chinese Foreign Minister Wang Yi told reporters on Sunday that some political forces in the United States were taking the bilateral relation "hostage" and pushing the two economic powerhouses to the brink of "a 'new Cold War'," according to an official English translation of his remarks posted by the foreign ministry. Markets in Singapore, India and Indonesia were shut due to public holidays. The U.S. dollar traded at 99.906 against a basket of its peers at 3:17 p.m. HK/SIN, a touch higher than its previous close at 99.863. Currency strategists at the Commonwealth Bank of Australia said in a morning note that the dollar faces upside risks this week. "Rising tensions can put the US-China Phase One trade deal at risk. Although not our central scenario, if the US or China were to withdraw from the Phase One deal, (the dollar) would sharply appreciate," they wrote. The Japanese yen changed hands at 107.71 per dollar, strengthening from levels near 108 in the previous week. Meanwhile, the Australian dollar traded down 0.2% at $0.6522. Oil prices traded higher on Monday during Asian hours. U.S. crude rose 1.02% to $33.59 a barrel while global benchmark Brent traded up 0.34% at $35.25 as of 3:19 p.m. HK/SIN.