Slowly slowly accumulating now.....

KLCI dropped but this UMW still intact to move the range for collection...

Warning issued.......

Most downside risk for May'20....

Forced Selling uplift......Political uncertain (Parliament Reopen)...

Q1'20 financial performance + Economy Data................

The oil industry has never been in a crisis quite like this and many producers will not survive

(PUBLISHED MON, APR 20 20205:56 PM EDT)

~ The oil industry is in a crisis like it's never seen before, with the double edged sword of too much supply and a shocking drop in demand due to coronavirus shutdowns around the world.

~ The U.S. market has been particularly hard hit by a glut of oil and not much storage left to put it in, and that helped start a wild plunge in the futures market Monday where one contract fell 300% into negative territory.

~ "Producers are now being sent the harshest signal ever to react to the crisis," said one analyst.



##https://www.cnbc.com/2020/04/20/the-oil-industry-has-never-been-in-a-crisis-quite-like-this-and-many-producers-will-not-survive.html

Virgin Australia Collapses as Virus Wipes Out Global Air Travel

April 21, 2020, 6:58 AM GMT+8 Updated on April 21, 2020, 7:19 AM GMT+8

Virgin Australia Holdings Ltd. became the nation’s biggest corporate casualty of the coronavirus, calling in administrators after the outbreak deprived the debt-burdened airline of almost all income.

Deloitte will take control of the company, the Brisbane-based airline said in a statement Tuesday. The administrators will be tasked with finding new investors to inject capital, reorganizing borrowings or getting a buyer in an attempt to save the business.

“We have commenced a process of seeking interest from parties for participation in the recapitalization of the business and its future, and there have been several expressions of interest so far,” said Vaughan Strawbridge, who is one of the four administrators at Deloitte.

Virgin Australia joins FlyBe -- the U.K.’s biggest domestic airline before it collapsed last month -- among the industry’s first corporate casualties of the virus. Airlines have been pummeled by domestic and international travel bans that forced them to seek government aid.

Virgin Australia, which had already furloughed 80% of its 10,000-strong workforce, will continue to operate some flights for essential workers, freight and the repatriation of Australians, it said.

The fate of Virgin Australia, which had more than A$5 billion ($3.2 billion) in debt as of the end of 2019, hung in the balance after it stopped virtually all services because of the virus and its request for state help failed. The company had asked the government for a A$1.4 billion loan, convertible into equity, to see it through the crisis.

The airline’s Velocity Frequent Flyer program is a separate company and is not in administration, according to the statement Tuesday.

A voluntary administrator is usually appointed by directors after they decide the company is insolvent or nearing insolvency. Virgin Australia had about A$1.1 billion in cash at the end of 2019. The airline is dominated by Qantas Airways Ltd. in essentially a two-player market in Australia and hasn’t made an annual profit for seven years.

Virgin Australia’s fight for survival triggered an ugly feud with its larger domestic rival. Qantas argued Virgin shouldn’t be rewarded with a bailout, while Virgin accused Qantas of spreading false rumors about its ebbing cash position -- allegations denied by Qantas.

At least two buyout groups were preparing to take over Virgin Australia, the Australian Financial Review reported last week.

Globally, airlines may lose out on $314 billion in ticket sales this year because of the virus, according to the International Air Transport Association.

While governments in the U.S. and across Europe have stepped in with support, or said they intend to, the Australian government baulked at potentially owning a stake in a money-losing domestic airline. Ministers repeatedly said their goal is to have two competing airlines in Australia, though stopped short of singling out Virgin Australia for any special help.

Almost entirely owned by foreign airlines, Virgin Australia is a unique experiment in global aviation. Singapore Airlines Ltd., Etihad Airways PJSC, HNA Group Co. and Nanshan Group Co. each own about 20% of the company. The Australian government said Virgin Australia’s shareholders should be their first source of financial aid.

Virgin Australia’s stock was suspended earlier this month while restructuring talks continued. The shares last traded at less than 9 Australian cents apiece on April 4, valuing the company at A$726 million.

##https://www.bloomberg.com/news/articles/2020-04-20/virgin-australia-collapses-as-airline-calls-in-administrators-k992yqn6?srnd=premium-asia

Since last month, more & more airline collapsed due to unprecedented health crisis..........VIRUS ZOMBIE.................................

Negative Prices for Oil? Here’s What That Means

(April 21, 2020, 5:58 AM GMT+8)

Stores never pay shoppers to take their goods away, but in extreme circumstances some businesses do, though generally in a very limited way. What’s happened in the oil market, however, was a massive and unprecedented negative swing, as the price on some futures contracts for West Texas crude fell to minus $37.63 a barrel. A collapse in petroleum demand from pandemic-driven lockdowns, a price war among the world’s largest producers that flooded the market, storage facilities nearing their capacities and the monthly rhythms of the futures market all played a role in the jaw-dropping development.

1. Why would a seller pay a buyer to take their oil?

For some producers, it may be cheaper in the long run than shutting down production or finding a place to store the supply bubbling out of the ground. Many worry that shutting their wells might damage them permanently, rendering them uneconomical in the future. There are also traders who buy oil futures contracts as a way of betting on price movements who have no intention of taking delivery of barrels. They can get caught by sharp price drops and face the choice of finding storage or selling at a loss. And the escalating glut of oil has made storage space scarce, and increasingly expensive.

2. Where did the glut come from?

Either the pandemic or the price war by itself would have rocked the energy markets. Together they have turned them upside down. As the virus began to spread around the globe, it began eating away at oil demand in stages. But just as countries like Italy showed what kind of damage a national lockdown could do economically, Saudia Arabia and Russia, the world’s biggest oil producers, butted heads. A pact that had restrained production collapsed and both countries opened their taps to the fullest, releasing record volumes of crude into the market.

4. What did futures contracts have to do with that?

The lowest prices came in trades in futures -- contracts in which a buyer locks in a purchase at a stated price at a stated time. Futures are a tool for users of oil to hedge against price swings, but also a means of speculation. The contracts run for a set period, and traders who don’t want to unwind their position or take delivery generally roll over their contracts shortly before expiration. Contracts for May delivery were due to expire on April 21, putting maximum pressure the day before on traders whose contracts were coming due. For them, selling at a steeply negative price was better than filling bathtubs with oil, though the market rout was such that the physical domestic crude market did see trades on an outright basis for grades like WTI in Midland, Mars Blend, Light and Heavy Louisiana Sweet crudes at negative levels.

6. What happened to storage?

Since the glut began to build and prices began to fall, storage facilities have been moving toward capacity. Crude stockpiles at Cushing in Oklahoma-- America’s key storage hub and delivery point of the West Texas Intermediate contract -- have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept. 30, according to the Energy Information Administration. The industry has been accumulating supply aboard ships, while contemplating other creative options such as storing oil aboard rail tankers. The Trump Administration, which is concerned about the possible ripple effect from oil bankruptcies, is eyeing a proposal, which is still in its infancy, to pay oil drillers to keep their oil in the ground temporarily. The idea would be to keep it off the market until prices recovered, giving the Treasury a healthy profit while protecting producers from immediate losses.


##https://www.bloomberg.com/news/articles/2020-04-20/negative-prices-for-oil-here-s-what-that-means-quicktake

Negative Prices for Oil? Here’s What That Means

(April 21, 2020, 5:58 AM GMT+8)

Stores never pay shoppers to take their goods away, but in extreme circumstances some businesses do, though generally in a very limited way. What’s happened in the oil market, however, was a massive and unprecedented negative swing, as the price on some futures contracts for West Texas crude fell to minus $37.63 a barrel. A collapse in petroleum demand from pandemic-driven lockdowns, a price war among the world’s largest producers that flooded the market, storage facilities nearing their capacities and the monthly rhythms of the futures market all played a role in the jaw-dropping development.

1. Why would a seller pay a buyer to take their oil?

For some producers, it may be cheaper in the long run than shutting down production or finding a place to store the supply bubbling out of the ground. Many worry that shutting their wells might damage them permanently, rendering them uneconomical in the future. There are also traders who buy oil futures contracts as a way of betting on price movements who have no intention of taking delivery of barrels. They can get caught by sharp price drops and face the choice of finding storage or selling at a loss. And the escalating glut of oil has made storage space scarce, and increasingly expensive.

2. Where did the glut come from?

Either the pandemic or the price war by itself would have rocked the energy markets. Together they have turned them upside down. As the virus began to spread around the globe, it began eating away at oil demand in stages. But just as countries like Italy showed what kind of damage a national lockdown could do economically, Saudia Arabia and Russia, the world’s biggest oil producers, butted heads. A pact that had restrained production collapsed and both countries opened their taps to the fullest, releasing record volumes of crude into the market.

3. Wasn’t there a deal on that?

Yes, one worked out by OPEC, Russia, the U.S. and the Group of 20 countries. But its call for an overall production cut of roughly 10% proved to be too little, too late. Prices initially turned negative just in obscure corners of the U.S. market such as Wyoming, where storage options are few. Then major hubs began to register negative prices for small streams of selected crudes. And on April 20, prices fell sharply below zero on CME, the world’s largest energy market, as well as NYMEX.


6. What happened to storage?

Since the glut began to build and prices began to fall, storage facilities have been moving toward capacity. Crude stockpiles at Cushing in Oklahoma-- America’s key storage hub and delivery point of the West Texas Intermediate contract -- have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept. 30, according to the Energy Information Administration. The industry has been accumulating supply aboard ships, while contemplating other creative options such as storing oil aboard rail tankers. The Trump Administration, which is concerned about the possible ripple effect from oil bankruptcies, is eyeing a proposal, which is still in its infancy, to pay oil drillers to keep their oil in the ground temporarily. The idea would be to keep it off the market until prices recovered, giving the Treasury a healthy profit while protecting producers from immediate losses.


##https://www.bloomberg.com/news/articles/2020-04-20/negative-prices-for-oil-here-s-what-that-means-quicktake

Negative Prices for Oil? Here’s What That Means

(April 21, 2020, 5:58 AM GMT+8)

Stores never pay shoppers to take their goods away, but in extreme circumstances some businesses do, though generally in a very limited way. What’s happened in the oil market, however, was a massive and unprecedented negative swing, as the price on some futures contracts for West Texas crude fell to minus $37.63 a barrel. A collapse in petroleum demand from pandemic-driven lockdowns, a price war among the world’s largest producers that flooded the market, storage facilities nearing their capacities and the monthly rhythms of the futures market all played a role in the jaw-dropping development.

1. Why would a seller pay a buyer to take their oil?

For some producers, it may be cheaper in the long run than shutting down production or finding a place to store the supply bubbling out of the ground. Many worry that shutting their wells might damage them permanently, rendering them uneconomical in the future. There are also traders who buy oil futures contracts as a way of betting on price movements who have no intention of taking delivery of barrels. They can get caught by sharp price drops and face the choice of finding storage or selling at a loss. And the escalating glut of oil has made storage space scarce, and increasingly expensive.

2. Where did the glut come from?

Either the pandemic or the price war by itself would have rocked the energy markets. Together they have turned them upside down. As the virus began to spread around the globe, it began eating away at oil demand in stages. But just as countries like Italy showed what kind of damage a national lockdown could do economically, Saudia Arabia and Russia, the world’s biggest oil producers, butted heads. A pact that had restrained production collapsed and both countries opened their taps to the fullest, releasing record volumes of crude into the market.

3. Wasn’t there a deal on that?

Yes, one worked out by OPEC, Russia, the U.S. and the Group of 20 countries. But its call for an overall production cut of roughly 10% proved to be too little, too late. Prices initially turned negative just in obscure corners of the U.S. market such as Wyoming, where storage options are few. Then major hubs began to register negative prices for small streams of selected crudes. And on April 20, prices fell sharply below zero on CME, the world’s largest energy market, as well as NYMEX.


6. What happened to storage?

Since the glut began to build and prices began to fall, storage facilities have been moving toward capacity. Crude stockpiles at Cushing in Oklahoma-- America’s key storage hub and delivery point of the West Texas Intermediate contract -- have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept. 30, according to the Energy Information Administration. The industry has been accumulating supply aboard ships, while contemplating other creative options such as storing oil aboard rail tankers. The Trump Administration, which is concerned about the possible ripple effect from oil bankruptcies, is eyeing a proposal, which is still in its infancy, to pay oil drillers to keep their oil in the ground temporarily. The idea would be to keep it off the market until prices recovered, giving the Treasury a healthy profit while protecting producers from immediate losses.


##https://www.bloomberg.com/news/articles/2020-04-20/negative-prices-for-oil-here-s-what-that-means-quicktake

Negative Prices for Oil? Here’s What That Means

(April 21, 2020, 5:58 AM GMT+8)

Stores never pay shoppers to take their goods away, but in extreme circumstances some businesses do, though generally in a very limited way. What’s happened in the oil market, however, was a massive and unprecedented negative swing, as the price on some futures contracts for West Texas crude fell to minus $37.63 a barrel. A collapse in petroleum demand from pandemic-driven lockdowns, a price war among the world’s largest producers that flooded the market, storage facilities nearing their capacities and the monthly rhythms of the futures market all played a role in the jaw-dropping development.

1. Why would a seller pay a buyer to take their oil?

For some producers, it may be cheaper in the long run than shutting down production or finding a place to store the supply bubbling out of the ground. Many worry that shutting their wells might damage them permanently, rendering them uneconomical in the future. There are also traders who buy oil futures contracts as a way of betting on price movements who have no intention of taking delivery of barrels. They can get caught by sharp price drops and face the choice of finding storage or selling at a loss. And the escalating glut of oil has made storage space scarce, and increasingly expensive.

2. Where did the glut come from?

Either the pandemic or the price war by itself would have rocked the energy markets. Together they have turned them upside down. As the virus began to spread around the globe, it began eating away at oil demand in stages. But just as countries like Italy showed what kind of damage a national lockdown could do economically, Saudia Arabia and Russia, the world’s biggest oil producers, butted heads. A pact that had restrained production collapsed and both countries opened their taps to the fullest, releasing record volumes of crude into the market.

4. What did futures contracts have to do with that?

The lowest prices came in trades in futures -- contracts in which a buyer locks in a purchase at a stated price at a stated time. Futures are a tool for users of oil to hedge against price swings, but also a means of speculation. The contracts run for a set period, and traders who don’t want to unwind their position or take delivery generally roll over their contracts shortly before expiration. Contracts for May delivery were due to expire on April 21, putting maximum pressure the day before on traders whose contracts were coming due. For them, selling at a steeply negative price was better than filling bathtubs with oil, though the market rout was such that the physical domestic crude market did see trades on an outright basis for grades like WTI in Midland, Mars Blend, Light and Heavy Louisiana Sweet crudes at negative levels.

6. What happened to storage?

Since the glut began to build and prices began to fall, storage facilities have been moving toward capacity. Crude stockpiles at Cushing in Oklahoma-- America’s key storage hub and delivery point of the West Texas Intermediate contract -- have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept. 30, according to the Energy Information Administration. The industry has been accumulating supply aboard ships, while contemplating other creative options such as storing oil aboard rail tankers. The Trump Administration, which is concerned about the possible ripple effect from oil bankruptcies, is eyeing a proposal, which is still in its infancy, to pay oil drillers to keep their oil in the ground temporarily. The idea would be to keep it off the market until prices recovered, giving the Treasury a healthy profit while protecting producers from immediate losses.


##https://www.bloomberg.com/news/articles/2020-04-20/negative-prices-for-oil-here-s-what-that-means-quicktake

Negative Prices for Oil? Here’s What That Means

(April 21, 2020, 5:58 AM GMT+8)

Stores never pay shoppers to take their goods away, but in extreme circumstances some businesses do, though generally in a very limited way. What’s happened in the oil market, however, was a massive and unprecedented negative swing, as the price on some futures contracts for West Texas crude fell to minus $37.63 a barrel. A collapse in petroleum demand from pandemic-driven lockdowns, a price war among the world’s largest producers that flooded the market, storage facilities nearing their capacities and the monthly rhythms of the futures market all played a role in the jaw-dropping development.

1. Why would a seller pay a buyer to take their oil?

For some producers, it may be cheaper in the long run than shutting down production or finding a place to store the supply bubbling out of the ground. Many worry that shutting their wells might damage them permanently, rendering them uneconomical in the future. There are also traders who buy oil futures contracts as a way of betting on price movements who have no intention of taking delivery of barrels. They can get caught by sharp price drops and face the choice of finding storage or selling at a loss. And the escalating glut of oil has made storage space scarce, and increasingly expensive.

2. Where did the glut come from?

Either the pandemic or the price war by itself would have rocked the energy markets. Together they have turned them upside down. As the virus began to spread around the globe, it began eating away at oil demand in stages. But just as countries like Italy showed what kind of damage a national lockdown could do economically, Saudia Arabia and Russia, the world’s biggest oil producers, butted heads. A pact that had restrained production collapsed and both countries opened their taps to the fullest, releasing record volumes of crude into the market.

3. Wasn’t there a deal on that?

Yes, one worked out by OPEC, Russia, the U.S. and the Group of 20 countries. But its call for an overall production cut of roughly 10% proved to be too little, too late. Prices initially turned negative just in obscure corners of the U.S. market such as Wyoming, where storage options are few. Then major hubs began to register negative prices for small streams of selected crudes. And on April 20, prices fell sharply below zero on CME, the world’s largest energy market, as well as NYMEX.

4. What did futures contracts have to do with that?

The lowest prices came in trades in futures -- contracts in which a buyer locks in a purchase at a stated price at a stated time. Futures are a tool for users of oil to hedge against price swings, but also a means of speculation. The contracts run for a set period, and traders who don’t want to unwind their position or take delivery generally roll over their contracts shortly before expiration. Contracts for May delivery were due to expire on April 21, putting maximum pressure the day before on traders whose contracts were coming due. For them, selling at a steeply negative price was better than filling bathtubs with oil, though the market rout was such that the physical domestic crude market did see trades on an outright basis for grades like WTI in Midland, Mars Blend, Light and Heavy Louisiana Sweet crudes at negative levels.

6. What happened to storage?

Since the glut began to build and prices began to fall, storage facilities have been moving toward capacity. Crude stockpiles at Cushing in Oklahoma-- America’s key storage hub and delivery point of the West Texas Intermediate contract -- have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept. 30, according to the Energy Information Administration. The industry has been accumulating supply aboard ships, while contemplating other creative options such as storing oil aboard rail tankers. The Trump Administration, which is concerned about the possible ripple effect from oil bankruptcies, is eyeing a proposal, which is still in its infancy, to pay oil drillers to keep their oil in the ground temporarily. The idea would be to keep it off the market until prices recovered, giving the Treasury a healthy profit while protecting producers from immediate losses.


##https://www.bloomberg.com/news/articles/2020-04-20/negative-prices-for-oil-here-s-what-that-means-quicktake

Negative Prices for Oil? Here’s What That Means

(April 21, 2020, 5:58 AM GMT+8)

Stores never pay shoppers to take their goods away, but in extreme circumstances some businesses do, though generally in a very limited way. What’s happened in the oil market, however, was a massive and unprecedented negative swing, as the price on some futures contracts for West Texas crude fell to minus $37.63 a barrel. A collapse in petroleum demand from pandemic-driven lockdowns, a price war among the world’s largest producers that flooded the market, storage facilities nearing their capacities and the monthly rhythms of the futures market all played a role in the jaw-dropping development.

1. Why would a seller pay a buyer to take their oil?

For some producers, it may be cheaper in the long run than shutting down production or finding a place to store the supply bubbling out of the ground. Many worry that shutting their wells might damage them permanently, rendering them uneconomical in the future. There are also traders who buy oil futures contracts as a way of betting on price movements who have no intention of taking delivery of barrels. They can get caught by sharp price drops and face the choice of finding storage or selling at a loss. And the escalating glut of oil has made storage space scarce, and increasingly expensive.

2. Where did the glut come from?

Either the pandemic or the price war by itself would have rocked the energy markets. Together they have turned them upside down. As the virus began to spread around the globe, it began eating away at oil demand in stages. But just as countries like Italy showed what kind of damage a national lockdown could do economically, Saudia Arabia and Russia, the world’s biggest oil producers, butted heads. A pact that had restrained production collapsed and both countries opened their taps to the fullest, releasing record volumes of crude into the market.

3. Wasn’t there a deal on that?

Yes, one worked out by OPEC, Russia, the U.S. and the Group of 20 countries. But its call for an overall production cut of roughly 10% proved to be too little, too late. Prices initially turned negative just in obscure corners of the U.S. market such as Wyoming, where storage options are few. Then major hubs began to register negative prices for small streams of selected crudes. And on April 20, prices fell sharply below zero on CME, the world’s largest energy market, as well as NYMEX.

4. What did futures contracts have to do with that?

The lowest prices came in trades in futures -- contracts in which a buyer locks in a purchase at a stated price at a stated time. Futures are a tool for users of oil to hedge against price swings, but also a means of speculation. The contracts run for a set period, and traders who don’t want to unwind their position or take delivery generally roll over their contracts shortly before expiration. Contracts for May delivery were due to expire on April 21, putting maximum pressure the day before on traders whose contracts were coming due. For them, selling at a steeply negative price was better than filling bathtubs with oil, though the market rout was such that the physical domestic crude market did see trades on an outright basis for grades like WTI in Midland, Mars Blend, Light and Heavy Louisiana Sweet crudes at negative levels.

6. What happened to storage?

Since the glut began to build and prices began to fall, storage facilities have been moving toward capacity. Crude stockpiles at Cushing in Oklahoma-- America’s key storage hub and delivery point of the West Texas Intermediate contract -- have jumped 48% to almost 55 million barrels since the end of February. The hub had working storage capacity of 76 million as of Sept. 30, according to the Energy Information Administration. The industry has been accumulating supply aboard ships, while contemplating other creative options such as storing oil aboard rail tankers. The Trump Administration, which is concerned about the possible ripple effect from oil bankruptcies, is eyeing a proposal, which is still in its infancy, to pay oil drillers to keep their oil in the ground temporarily. The idea would be to keep it off the market until prices recovered, giving the Treasury a healthy profit while protecting producers from immediate losses.


##https://www.bloomberg.com/news/articles/2020-04-20/negative-prices-for-oil-here-s-what-that-means-quicktake

US oil prices are on track for their worst day ever: Here’s why 

(PUBLISHED MON, APR 20 20204:49 AM EDTUPDATED MOMENTS AGO) 

~ The May contract of U.S. West Texas Intermediate (WTI) futures fell to $11.66 a barrel on Monday, down more than 36%. It means the price grade is on track to register its worst day back to contract inception in 1983. 

~ To be sure, the May contract expires on Tuesday, thus leaving it exposed to weaker trading volumes and more extreme market moves. 

~ The June contract of WTI, which is more actively traded, stood at $22.29 a barrel, almost 11% lower. 

~ “The curves are saying we have a big problem with the storage of oil right now,” Bjarne Schieldrop, chief commodities analyst at SEB, told CNBC via email. 


##https://www.cnbc.com/2020/04/20/coronavirus-us-oil-prices-collapse-as-storage-runs-out.html

US oil prices are on track for their worst day ever: Here’s why 

(PUBLISHED MON, APR 20 20204:49 AM EDTUPDATED MOMENTS AGO) 

~ The May contract of U.S. West Texas Intermediate (WTI) futures fell to $11.66 a barrel on Monday, down more than 36%. It means the price grade is on track to register its worst day back to contract inception in 1983. 

~ To be sure, the May contract expires on Tuesday, thus leaving it exposed to weaker trading volumes and more extreme market moves. 

~ The June contract of WTI, which is more actively traded, stood at $22.29 a barrel, almost 11% lower. 

~ “The curves are saying we have a big problem with the storage of oil right now,” Bjarne Schieldrop, chief commodities analyst at SEB, told CNBC via email. 


##https://www.cnbc.com/2020/04/20/coronavirus-us-oil-prices-collapse-as-storage-runs-out.html

US oil prices are on track for their worst day ever: Here’s why

(PUBLISHED MON, APR 20 20204:49 AM EDTUPDATED MOMENTS AGO)

~ The May contract of U.S. West Texas Intermediate (WTI) futures fell to $11.66 a barrel on Monday, down more than 36%. It means the price grade is on track to register its worst day back to contract inception in 1983.

~ To be sure, the May contract expires on Tuesday, thus leaving it exposed to weaker trading volumes and more extreme market moves.

~ The June contract of WTI, which is more actively traded, stood at $22.29 a barrel, almost 11% lower.

~ “The curves are saying we have a big problem with the storage of oil right now,” Bjarne Schieldrop, chief commodities analyst at SEB, told CNBC via email.


##https://www.cnbc.com/2020/04/20/coronavirus-us-oil-prices-collapse-as-storage-runs-out.html

US oil prices are on track for their worst day ever: Here’s why

(PUBLISHED MON, APR 20 20204:49 AM EDTUPDATED MOMENTS AGO)

~ The May contract of U.S. West Texas Intermediate (WTI) futures fell to $11.66 a barrel on Monday, down more than 36%. It means the price grade is on track to register its worst day back to contract inception in 1983.

~ To be sure, the May contract expires on Tuesday, thus leaving it exposed to weaker trading volumes and more extreme market moves.

~ The June contract of WTI, which is more actively traded, stood at $22.29 a barrel, almost 11% lower.

~ “The curves are saying we have a big problem with the storage of oil right now,” Bjarne Schieldrop, chief commodities analyst at SEB, told CNBC via email.


##https://www.cnbc.com/2020/04/20/coronavirus-us-oil-prices-collapse-as-storage-runs-out.html

Mohamed El-Erian sees US economy contracting up to 14% this year due to coronavirus crisis

(PUBLISHED MON, APR 20 20209:28 AM EDTUPDATED MOMENTS AGO)

~ Mohamed El-Erian said Monday the U.S. economy could experience a double-digit percentage contraction in 2020 due to the coronavirus pandemic.

~ “I think we may be at minus 10% to minus 14% growth for the U.S.,” he said on CNBC’s “Squawk Box.”

~ “I’m a little bit more worried than what the consensus of economists out there is right now,” the Allianz chief economic advisor said.


The U.S. economy could experience a double-digit percentage contraction in 2020 due to the coronavirus pandemic, Mohamed El-Erian told CNBC on Monday, suggesting a much steeper decline than most economists.

“I think we may be at minus 10% to minus 14% growth for the U.S.,” the Allianz chief economic said on “Squawk Box.” “This is a big hit.”

El-Erian said the distinct nature of this economic hit —stemming from a health crisis — means traditional frameworks may not be applicable, acting as a further obstacle for a rebound. “The benefits you would expect normally, lower oil price means more dollars in consumers’ pockets, even that doesn’t work in this economy. So I’m a little bit more worried than what the consensus of economists out there is right now.”

The comments from El-Erian, formerly CEO of investment powerhouse Pimco, were in response to data from CNBC’s Rapid Update survey, which includes various gross domestic product forecasts from across Wall Street. The average of the estimate late last week showed about a 4% decline in U.S. GDP this year, according to CNBC’s Steve Liesman.

International Monetary Fund said last week the U.S. economy could shrink 5.9% in 2020. The IMF said the world will “very likely” experience its worst economic hit since the Great Depression.

In a follow-up call with CNBC, El-Erian stressed there’s “tremendous uncertainty” around any economic forecast, including his own, saying, “I hope I’m wrong.”

However, he said he believes the process of resuming economic activity after a pandemic will be a challenging one. “Until people are both able and willing to go back to normal economic activity, the best you can do is relief.”


##https://www.cnbc.com/2020/04/20/coronavirus-mohamed-el-erian-sees-us-economy-contracting-10percent-14percent-in-2020.html

Hong Kong Unemployment Rises to Highest in Nearly Decade

April 20, 2020, 4:46 PM GMT+8 Updated on April 20, 2020, 5:21 PM GMT+8

Hong Kong’s jobless rate rose for a sixth straight month in March to the highest level since October 2010 as restrictions to control the coronavirus outbreak continue to pressure the city’s battered economy.

The unemployment rate increased to 4.2% for the January-to-March period, higher than the median estimate of 4.0% among economists surveyed by Bloomberg. The jump extended the longest stretch of increases since the aftermath of the global financial crisis. The underemployment rate climbed to 2.1%, the highest in almost a decade.

Year-on-year declines in total employment and the labor force widened further to 3.6% and 2.2% respectively, both the highest on record, the government said in a release.

“The labor market will continue to face significant pressure from the economic fallout arising from the pandemic in the near term,” said Law Chi-kwong, secretary for Labour and Welfare, in a government statement. “Some specific measures, in particular the employment support scheme and various types of support for specific sectors, should help keep workers in employment.”

Unemployment in consumption and tourism-related industries including retail, accommodations and food services rose to a combined 6.8%, the highest since 2009. Joblessness specifically in the food and beverage service industry climbed to 8.6%. Unemployment in construction, transportation and education also jumped, the government said.

In a blog post Sunday, Financial Secretary Paul Chan said the city’s unemployment and underemployment rates are expected to accelerate as political unrest and the coronavirus outbreak have stalled retail, tourism and many service industries. Visitor arrivals have plummeted almost 99% while small business sentiment hovers near a record low.

“Companies are under tremendous pressure, and the impact on the job market is continuously deepening,” Chan said in translated comments from his Chinese-language post.


##https://www.bloomberg.com/news/articles/2020-04-20/hong-kong-unemployment-rises-for-sixth-month-amid-virus-controls?srnd=premium-asia

US markets haven’t priced in a ‘significant second wave’ of coronavirus, says Citi Private Bank

(PUBLISHED MON, APR 20 20203:36 AM EDT)

~ Citi Private Bank’s Chief Investment Officer David Bailin warned that the worst may not be over for stock markets in the U.S.

~ “In the event that we have a very significant second wave of disease in the United States that cause a further shutdown of the economy ... that clearly is not priced into the market,” he said.

~ With the pandemic potentially dragging out a lot longer, Bailin said company earnings could fall by 40% “across the board” in the second quarter.


##https://www.cnbc.com/2020/04/20/us-markets-havent-priced-in-second-wave-of-coronavirus-citi-private-bank.html

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

United Airlines posts $2.1 billion pretax loss as coronavirus roiled business, seeks more federal aid

(PUBLISHED MON, APR 20 20208:21 AM EDTUPDATED MOMENTS AGO)

United Airlines on Monday reported a $2.1 billion loss for first quarter as the coronavirus pandemic drove travel demand down to the lowest level in decades.

The Chicago-based airline said has applied for up to $4.5 billion in government loans on top of about $5 billion federal payroll grants and loans it also expects to receive to weather the crisis.

United is the first major U.S. airline to detail the results of the virus on its results in the first three months of the year. The disease and harsh measures to stop it from spreading such as stay-at-home orders has ravaged air travel demand and and prompted carriers to slash most of their flights.


##https://www.cnbc.com/2020/04/20/united-airlines-ual-posts-1point2-billion-loss-amid-coronavirus-seeks-more-federal-aid.html

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

WTI oil price big dropped by 38% @ $11.24....dropped by $7 ++ ....

Never seen this level before.....tragedy...

Head of oil trader Hin Leong didn't disclose US$800m losses

April 20, 2020 13:19 pm +08


SINGAPORE (April 20): The founder and director of top Singapore oil-trading company Hin Leong Trading Pte Ltd (HLT) directed the firm not to disclose hundreds of millions of dollars in losses over several years, he said in a court filing reviewed by Reuters.

The affidavit signed by Lim Oon Kuin, a Chinese immigrant in his 70s widely known as O.K. Lim, is part of a Friday filing to the Singapore High Court by HLT and subsidiary Ocean Tankers (Pte) Ltd, seeking a six-month moratorium on debts of US$3.85 billion to 23 banks.

The filing cites a collapse in the oil price and the coronavirus pandemic, which has hammered oil demand and pushed up costs for HLT, one of Asia's largest oil traders.

Despite reporting net profit of US$78.2 million for the business year ended in October, "HLT has not been making profits in the last few years," Lim said in the filing, which has not been made public.

The company "suffered about US$800 million in futures losses over the years but these were not reflected in the financial statements," he said. "In this regard, I had given instructions to the finance department to prepare the accounts without showing the losses and told them that I would be responsible if anything went wrong."

Reuters was the first to disclose the existence of Lim’s affidavit spelling out the losses and specifics including his acknowledgement of personal responsibility for not reporting the losses. Bloomberg cited the US$800 million in losses in a report late Sunday.

Lim, reached by phone, declined comment to Reuters. Patrick Ang, managing partner at Rajah & Tann Singapore LLP, which is advising Hin Leong, also declined to comment when reached by e-mail.

Lim's son Evan Lim Chee Meng, a director at HLT and Ocean Tankers, who also submitted a signed affidavit with the debt-moratorium request, did not respond to an email requesting comment. HLT and Ocean Tankers could not be reached for comment over the weekend.

The 23 banks named in the filing declined or did not respond to emailed requests in the past several days for comment.

The affidavit, which said Lim was resigning immediately as director of the family-held company he founded half a century ago from a single delivery truck, did not specify over how many years the losses were incurred or why he was blaming HLT's difficulties on problems that arose largely in the past few months.

Under Singapore law, Friday's filing automatically protects HLT from legal action by creditors for 30 days while the court decides whether to grant the six-month debt-repayment extension.

Lim said in the filing that HLT had held a video conference on Tuesday with creditors and advisers "to inform bank lenders of HLT's financial position," which it said included liabilities of US$4.05 billion against assets of US$714 million as of April 9.

A drop of two-thirds in the oil price in the first three months of this year, a tightening of bank credit lines and margin calls at HLT caused a "severe depletion" of the company's cash reserves, Lim said in the filing.

HLT recorded payments to meet the margin calls as accounts receivable, the company sold "a substantial part of inventory" being financed by banks to raise cash and it did not sufficiently hedge its exposure to a fall in oil prices, Lim said.

PetroChina International (Singapore) Pte Ltd, the trading arm of Chinese state-owned energy giant PetroChina Co Ltd, has terminated petroleum sales contracts with HLT and demanded for an immediate payment of US$23.87 million, Lim said. PetroChina did not immediately respond to email and phone requests for comment.

HLT may file more affidavits with further information, including a list of 20 largest unsecured and unrelated creditors, Lim said.

HLT could also potentially owe Oil Tankers US$2.67 billion for cargoes that the shipping company is unable to deliver as HLT's lenders have already sold the oil, Lim said. 


##https://www.theedgemarkets.com/article/head-oil-trader-hin-leong-didnt-disclose-us800m%C2%A0losses

ABN Amro makes claims against troubled Singapore oil trading giant Hin Leong


SINGAPORE (BLOOMBERG) - ABN Amro Bank has become the latest lender to make a claim against a Singapore oil trading giant that filed for protection from creditors amid a plunge in oil prices.

The Dutch bank filed applications for charges related to irrevocable letters of credit tied to goods and documents of Hin Leong Trading (Pte) Ltd, according to filings with Singapore's Accounting and Corporate Regulatory Authority.

The Amsterdam-based lender is the second bank to file charges linked to Hin Leong, which owes some US$3.85 billion (S$5.48 billion) to more than 20 Singaporean and international banks, including HSBC Holdings, DBS Group Holdings Ltd. and Standard Chartered Plc.

London-based HSBC has the most exposure to the oil trader, with about US$600 million, people familiar with the situation said.

Hin Leong, founded in 1963 by Chinese tycoon Lim Oon Kuin, filed the application for a debt moratorium from Singapore's High Court on Friday, according to people with knowledge of the matter.

ABN Amro didn't specify the amount owed to the bank in the documents dated April 17. The charges covered include Hin Leong's bills of landing, air waybills, cargo and warehouse receipts, as well as the goods shipped related to the bank's credit.

An irrevocable letter of credit can't be canceled or amended by the issuing bank without the agreement of the parties in the credit transaction. Letters of credit are a critical financial lifeline for commodity traders, used as way of financing short-term trade.

A bank issues the so-called L/C on behalf of the buyer as a guarantee of payment to the seller. Once the goods have exchanged hands, the buyer repays the lender.

Societe Generale last week registered several charges covering goods and receivables financed by the bank and the Hin Leong bank account with the Paris-based bank.


##https://www.straitstimes.com/business/banking/abn-amro-makes-claims-against-troubled-singapore-oil-trading-giant-hin-leong

Since unprecedented health crisis to lead laggard of oil demand, crude oil plummeted by more than 75% until causing Singapore oil trading giant filed for bankruptcy

US crude plummets 19% as coronavirus pandemic ravages oil demand

(PUBLISHED SUN, APR 19 202010:07 PM EDTUPDATED 29 MIN AGO)

~ U.S. crude prices plunged in afternoon Asian trade on Monday as traders continued to fret over a slump in demand due to the coronavirus pandemic.

~ ANZ’s Daniel Hynes described the situation stateside as “quite dire.”

~ Prices on the May contract for West Texas Intermediate crude futures tanked 19% to $14.80 per barrel. The futures contract is set to expire on Tuesday, according to Refinitiv.


##https://www.cnbc.com/2020/04/20/oil-markets-us-crude-futures-in-focus-as-coronavirus-dents-demand.html

If comparing UMW against GenM now, I better pick up UMW.....

Not so fast to move up....

"Big Boy" keep on accumulating since last week, so for "Big Boy" not enough to push........

So if you feel undervalue for current price against other counters....

Why not also slowly slowly accumulate......

US crude plummets more than 15% as one analyst says the situation stateside is ‘quite dire’

(PUBLISHED SUN, APR 19 202010:07 PM EDTUPDATED MOMENTS AGO)


~ Prices on the May contract for West Texas Intermediate crude futures dropped 15.49% to $15.44 per barrel. The futures contract is set to expire on Tuesday, according to Refinitiv.


##https://www.cnbc.com/2020/04/20/oil-markets-us-crude-futures-in-focus-as-coronavirus-dents-demand.html

US crude plummets more than 15% as one analyst says the situation stateside is ‘quite dire’

(PUBLISHED SUN, APR 19 202010:07 PM EDTUPDATED MOMENTS AGO)


~ U.S. crude prices plunged in the morning of Asian trading hours on Monday as traders continued to fret over a slump in demand due to the coronavirus pandemic, with one analyst describing the situation stateside as “quite dire.”


~ Prices on the May contract for West Texas Intermediate crude futures dropped 15.49% to $15.44 per barrel. The futures contract is set to expire on Tuesday, according to Refinitiv.


##https://www.cnbc.com/2020/04/20/oil-markets-us-crude-futures-in-focus-as-coronavirus-dents-demand.html

US crude plummets more than 15% as one analyst says the situation stateside is ‘quite dire’

(PUBLISHED SUN, APR 19 202010:07 PM EDTUPDATED MOMENTS AGO)


~ U.S. crude prices plunged in the morning of Asian trading hours on Monday as traders continued to fret over a slump in demand due to the coronavirus pandemic, with one analyst describing the situation stateside as “quite dire.”


~ Prices on the May contract for West Texas Intermediate crude futures dropped 15.49% to $15.44 per barrel. The futures contract is set to expire on Tuesday, according to Refinitiv.


##https://www.cnbc.com/2020/04/20/oil-markets-us-crude-futures-in-focus-as-coronavirus-dents-demand.html

Expected certain listed companies results by IB :-

~ This comes as the unprecedented worldwide shutdown of all of Genting Group’s casinos, following the lockdown orders issued by authorities, have resulted in a synchronous loss of income streams to the group. According to analysts’ estimates, forecast earnings for FY20 for Genting Malaysia Bhd (GenM) has been cut by 32% to 39%.


~ Analysts estimate the bottom line of Berjaya Sports Toto Bhd and Magnum Bhd to be down by 9% and 8% respectively.


~ analysts have cut their earnings estimate for MAHB for FY20 by 32.3% to reflect the lower passenger traffic, lower airport traffic and lower average retail spending at airports. In terms of the property sector, an overhang in sales is likely to be exacerbated as demand for big-ticket items are likely to vanish due to a grim economic outlook. Based on the latest figures, aggregate property sales have declined by 12% year-on-year


~ RHB Investment Bank Bhd advised investors to avoid developers with high gearing, an unsold completed inventory as well as unsold stocks from ongoing projects as it believes these remaining unsold development projects will be slow moving going forward, tying up developers’ cash flow. These include S P Setia Bhd, Sime Darby Property Bhd and Mah Sing Group Bhd.


~ Overall, the research house expects banking sector earnings to fall 5% in 2020 on the back of NIM slippage, softer loan growth and higher credit costs. It has downgraded its ratings for CIMB Group Holdings Bhd and Malayan Banking Bhd to “neutral” from “buy”, mainly on concerns over higher asset quality risks.


~ As for discretionary goods retailers such as apparel chain operator Padini Holdings Bhd with staff’s basic salaries as well as lease and financing expenses commanding a major part of fixed expenses, due to a lacklustre consumption outlook, analysts have cut their earnings estimates for Padini for FY20 by 33% on the back of a revenue projection cut of 13%.

Grim 1Q earnings outlook for selected industries

(The Edge Financial Daily / April 20, 2020 07:39 am +08)

KUALA LUMPUR: The International Monetary Fund expects a recession in 2020 that will be at least as bad as the one seen during the global financial crisis in 2009, against a highly challenging global economic outlook, due mainly to the Covid-19 pandemic.

Bank Negara Malaysia (BNM), meanwhile, has revised downwards its gross domestic product (GDP) growth projection for Malaysia in 2020 to between -2% and 0.5%.

The central bank said Covid-19 had significantly weakened global growth prospects, with the outlook heavily contingent on how countries across the world successfully contain the pandemic over the remainder of the year. At the same time, the domestic economy will be impacted by the necessary global and domestic actions taken to contain the outbreak. Tourism-related sectors, in particular, are expected to be affected by broad-based travel restrictions and travel risk aversion.

In terms of factory production, economists project a steep fall in the Industrial Production Index in March and possibly months ahead, while production disruptions in the global supply chain will weigh on the manufacturing sector and exports.

This comes in the wake of the Global Manufacturing Purchasing Managers’ Index plunging to 47.2 points in February, the weakest since 2009.

‘Weak domestic spending ahead’

According to an online survey by the Department of Statistics carried out on March 23-31, the movement control order (MCO) had a deleterious effect on monthly spending, with total household expenditure falling 55% to RM2,813 from RM6,317.

Notably, higher-income households reported steeper declines in spending due to the greater proportion of discretionary items and non-consumption expenses in their expenditure baskets. In particular, the top 20% income group (T20) households cut outlays by 63%, followed by the M40 group cutting down spending by 54% and the B40 trimming expenditure by 49%.

In terms of spending categories, apart from food staples, communications and education, all other categories of consumption registered sharp declines due to travel restrictions and closures of non-essential businesses.

Specifically, spending on clothing and apparel dropped 95%, followed by transport (down 89%), as well as restaurants and hotels (down 86%). Meanwhile, big-ticket spending such as on household furniture and recreational expenses have both fallen by 70%.

The normalisation of consumer behaviour may be gradual as precautionary social distancing practices continue, suggested by anecdotal evidence from China, which has emerged from its lockdown.

The gloomy outlook for Malaysia’s private consumption, which makes up 59% of GDP, suggests that corporate earnings are highly likely to tread water down the road.


##https://www.theedgemarkets.com/article/grim-1q-earnings-outlook-selected-industries

Another 2 more weeks...most of the companies will be announcing their Q1'20 performance....

No matter individual company or individual country....

Wahh........2009 article also can retreat to re-examine...

Good job............


Lucky I free only that go & explore only, otherwise I wouldn't join in to chat...............


No word to say.....I really don't understand comprehensively what is the nature of polymal, chemical & petrochemical......


Lucky I'm no newbies.............................................





Posted by calvintaneng > Apr 18, 2020 8:40 PM

Read again:

• Synthetic latex

• Latex chemical

l • Synthetic rubber

• Rubber chemicals



SYNTHETIC LATEX IS FOR NITRILE GLOVES

Latex chemical, syntethic rubber & rubber chemical are for Rubber Gloves


See this article by TheEdgedaily

Small Cap Corner: Luxchem — proxy for rubber glove sector?

https://www.theedgemarkets.com/article/small-cap-corner-luxchem-%E2%80...

Financial performance for the past 6 years


_________2014 2015 2016 2017 2018 2019

Revenue 603,522 686,754 701549 806,710 814,086 765,480

PBT 29,578 54,397 59,078 55,781 49,880 50,122

PATMI 21,961 39,735 43,499 40,743 37,788 37,645

EPS 2.82 5.04 5.34 4.86 4.42 4.27


**All based on ('000) figures


^^^Based on current price against 2019 financial performance, PE standing about 11.12 times


@@@ So if this year, unprecedented health crisis + most of the countries locked down, my personally view that financial performance shall be adjusted accordingly


FYE 2018:

Earning Per Share - Basic

Computed based on Profit Attributable to Owners of the Company and divided by the weighted average number of shares in issue during the financial year ended 31 December 2018 of 855,857,346.
Earning Per Share - Diluted

Computed based on Profit Attributable to Owners of the Company and divided by the adjusted weighted average number of shares in issue during the financial year ended 31 December 2018 of 876,393,664.

FYE 2017:

Earning Per Share - Basic

Computed based on Profit Attributable to Owners of the Company and divided by the weighted average number of shares in issue during the financial year ended 31 December 2017 of 837,810,471.
Earning Per Share - Diluted

Computed based on Profit Attributable to Owners of the Company and divided by the adjusted weighted average number of shares in issue during the financial year ended 31 December 2017 of 872,024,391.

Upon the completion of the Company’s share split exercise on 8 September 2017, the issued and paid-up ordinary shares of the Company as of that date were increased from 281,617,551 shares to 844,852,653 shares. The share split involved a subdivision of one (1) existing ordinary share into three (3) ordinary shares.

FYE 2014 to FYE 2016:

Earning Per Share - Basic

The weighted average number of ordinary shares in issue during the financial year 2014, 2015 and 2016 have been adjusted to take into effect of the share split exercise undertaken by the Company on 8 September 2017 as as highlighted above.



##http://www.luxchem.com.my/investor-relation.html

I found all information from corporation webpage...

##http://www.luxchem.com.my/index.html


So I can't see any related to glove making worrr......!!!!!

Majority related to polymal, chemical & petrochemical....


^^^Please correct me if I'm wrong....

Luxchem Polymer Industries Sdn Bhd produces Malaysia's most comprehensive portfolio of UPR under the brand name POLYMAL. These resins which contribute to the enhancement of every day lives, are used in a variety of consumer and industrial applications in electrical, housing, aircraft, sports, industrial equipment, construction, vessel, railcar, plywood and automobile industries.



Founded in December 2009, Transform Master Sdn Bhd was acquired by Luxchem Corporation Berhad on 29 April 2016 as its subsidiary.
Transform Master is a reputable manufacturer for design, development and manufacturer of latex compounding and processing chemicals serving its customers on rubber latex industry.



PT Luxchem Indonesia

In line with the Group’s business expansion objectives and growth strategy, Luxchem Corporation Berhad established a Joint Venture company with Local Partner in October 2011 hence the formation of PT Luxchem Indonesia and an exciting business journey into the regional market.
Headed by seasoned and capable industry experts, PT. Luxchem Indonesia has grown the business from year to year and highly regarded as a reliable and reputable name in the distribution of chemical and petrochemical products in Indonesia.



Luxchem Vietnam Company Limited

Seeing great potential to expand our business aboard, Luxchem Corporation Berhad established a 100% owned subsidiary in Vietnam in January 2016, with a total capital of USD500,000.
The subsidiary serves to be the import and distribution of industrial chemicals to the customers of all regions in Vietnam. Since the incorporation, the subsidiary is steadily growing its customer base through its dedicated and experienced sales team.

A double recession? Economies risk debt crises after stimulus spending

PUBLISHED FRI, APR 17 20201:19 AM EDT

~ The debt incurred over time for coronavirus stimulus spending could mean a deeper crisis and a doubled-down recession for some countries, according to a recent report by the Economist Intelligence Unit.

~ The current wave of debt accumulation — which started in 2010 — is “the largest, fastest and most broad-based increase” in global borrowing since the 1970s.

The economic meltdown brought on by the coronavirus pandemic has governments deploying historically vast fiscal spending packages to support millions of their citizens and businesses.

This spending is necessary to support economies — officials agree on that much. But the debt incurred over time could mean a deeper crisis and a doubled-down recession for some countries, according to recent reports.

“Debt crises may be coming,” the Economist Intelligence Unit (EIU) wrote in late March. “For now, governments are ramping up fiscal spending to fight the epidemic, maintain basic economic architecture and keep workers in their jobs. As a result, fiscal deficits will rise sharply in the coming years.”

Already in early January, before any country imposed coronavirus lockdowns, the World Bank warned of the risk of a fresh global debt crisis. It described the current wave of debt accumulation — which started in 2010 — as “the largest, fastest and most broad-based increase” in global borrowing since the 1970s.

In the first half of 2019, global debt surged by $7.5 trillion, hitting a new record of more than $250 trillion, according to the Institute for International Finance. “With no sign of a slowdown, we expect the global debt load to exceed $255 trillion in 2019, largely driven by the U.S. and China,” the IIF wrote in late 2019 — before the year was over and well before anyone was talking about a global pandemic.

Now, the International Monetary Fund projects that the global economy this year will “very likely” suffer the worst financial crisis since the Great Depression, as governments around the world extend lockdowns and economic shutdowns to fight the spread of Covid-19. The Washington-based fund now expects the global economy to contract by 3% in 2020. In January, by contrast, it had forecast a global GDP expansion of 3.3% for this year.

Half the world has now asked the IMF for a bailout, the organization’s chief Kristalina Georgieva told CNBC on Wednesday, highlighting the severety of the economic crisis.


##https://www.cnbc.com/2020/04/17/coronavirus-a-double-recession-economies-risk-debt-crises-after-stimulus-spending.html

Always time to tell the truth...

Soon but not so far............Bursa market has given indicators....

Really can't realise !!!........

China says its economy shrank by 6.8% in the first quarter as the country battled coronavirus

(PUBLISHED THU, APR 16 202010:00 PM EDT)

~ China reported that its first quarter GDP contracted by 6.8% in 2020 from a year ago as the coronavirus outbreak seriously impacted the world’s second largest economy.

~ Analysts polled by Reuters had predicted China’s GDP would shrink by 6.5% in the January to March quarter, compared to a year ago. The forecasts from 57 analysts polled ranged from a 28.9% contraction to a 4% expansion

~ China’s economy came to standstill earlier in the year as Beijing implemented large-scale shutdowns and quarantines to limit human contact as it sought to contain the coronavirus disease, formally known as Covid-19.


China reported that its first quarter GDP contracted by 6.8% in 2020 from a year ago as the world’s second largest economy took a huge hit from the coronavirus outbreak, data from the National Bureau of Statistics of China showed.

The contraction in the first quarter would also be the first decline since at least 1992, when official quarterly GDP records started, according to Reuters.

Analysts polled by Reuters had predicted China’s GDP would shrink by 6.5% in the January to March quarter, compared to a year ago. The forecasts from 57 analysts polled ranged from a 28.9% contraction to a 4% expansion. China’s economy grew 6% in the previous quarter, from September to December 2019.

The world’s second largest economy came to standstill earlier this year as Beijing implemented large-scale shutdowns and quarantines to limit human contact in order to contain the coronavirus outbreak.

In January and February, exports fell sharply from a year ago as manufacturing activity contracted sharply.

China’s economy is beginning to come back online again, with work restarting in many companies, but it faces headwinds as the coronavirus spreads in the rest of the world and global demand is dented.

A separate Reuters poll showed China’s GDP growth is expected to slow sharply to 2.5% in 2020 from 6.1% in 2019.


##https://www.cnbc.com/2020/04/17/china-economy-beijing-contracted-in-q1-2020-gdp-amid-coronavirus.html

Still cheap mahhh....still can buy lorrr....

No matter ban or uplift shortselling, no different mahh....

Tik Tok...Tik Tok...The clock already started......

The 2nd wave & perfect storm just started @ 15/04/20......

I more prefer DJIA & S&P500 then reassess Malaysia market......