AMC to raise fresh capital as liquidity troubles deepen

AMC to raise fresh capital as liquidity troubles deepenAMC's move to raise fresh capital comes after ratings agency S&P said earlier this month that the company had just six months of cash reserves. "In the event the Company determines that these sources of liquidity will not be available to it or will not allow it to meet its obligations as they become due, it would likely seek an in-court or out-of-court restructuring of its liabilities," AMC said in a filing. Big theater chains, including AMC and Cineworld Group , have reopened many of their locations, but fears of the virus and delays in major releases have kept audiences at bay.

U.S. Futures Push Higher Amid Stimulus Talks: Markets Wrap

U.S. Futures Push Higher Amid Stimulus Talks: Markets Wrap(Bloomberg) -- Asian stocks rose and U.S. futures extended overnight gains amid optimism about progress on stimulus talks in Washington. Treasuries and the dollar retreated.Shares climbed in Japan, Hong Kong and South Korea, and fluctuated in Australia. S&P 500 contracts edged higher after House Speaker Nancy Pelosi said she remains hopeful of a deal before the election. The gauge bounced back from Monday’s selloff on Tuesday. Tech shares mostly shook off the U.S. Justice Department’s decision to sue Google for allegedly abusing its power. Netflix Inc. plunged in late trading after it missed Wall Street estimates.Elsewhere, Treasuries continued to decline, with the 10-year yield rising above 0.8%. Oil slipped. The yuan climbed to the strongest since July 2018 and copper hit its highest in more than two years. In the latest developments, Pelosi said Tuesday she’s hopeful for a stimulus agreement this week, which would be bigger, better and retroactive. Still, Senate Majority Leader Mitch McConnell has warned the White House against a bigger Pelosi-led deal before Nov. 3. The administration’s offer is now $1.88 trillion, White House Chief of Staff Mark Meadows said on CNBC. Pelosi has pushed for $2.2 trillion along with a number of requirements for how the money should be deployed.A rally built on stimulus hopes has investors weighing the chances of striking a deal against speculation that the looming election will prove too much of a hurdle to overcome. Yet with Federal Reserve policy makers urging for more fiscal support to complement unprecedented monetary aid, many in the market may be willing to let Pelosi’s deadline come and go.Federal Reserve Bank of Chicago President Charles Evans said Tuesday the prospect of Congress failing to deliver additional fiscal support made him nervous, though he was “somewhat optimistic” about next year’s recovery.“Equity markets are under some pressure following limited advances in stimulus talks,” Sebastien Galy, a senior macro strategist at Nordea Investment Funds SA, said in a note. “The odds of a deal being low, tells us much about the battle between hope and the reality of an economy still under severe shock but recovering.”Amid a resurgence in coronavirus cases, European Central Bank President Christine Lagarde said the unexpectedly early pickup in infections is a “clear risk” to the economic outlook in the region. Europe’s leaders have intensified efforts to slow the contagion, reviving lockdowns in some areas after piecemeal curbs made little impact. New cases hit daily records in Germany and the Netherlands.Here are some key events this week:Brexit trade talks are likely to continue at least into next week if the U.K. and EU fail to reach an agreement.The final presidential debate before the U.S. election, between President Donald Trump and former Vice President Joe Biden, will be live from Nashville, Tennessee on Thursday.Here are some of the main market moves:StocksS&P 500 futures rose 0.5% as of 11:23 a.m. in Tokyo. The S&P 500 Index gained 0.5%.Topix index rose 0.9%.Australia’s S&P/ASX 200 Index rose 0.2%.South Korea’s Kospi index rose 0.3%.Hong Kong’s Hang Seng Index rose 0.8%.Shanghai Composite Index fell 0.4%.Euro Stoxx 50 futures rose 0.1%.CurrenciesThe yen rose 0.1% to 105.40 per dollar.The offshore yuan traded at 6.6587 per dollar, up 0.1%. The onshore yuan gained as much as 0.16% to 6.6664 a dollar in early trading in Shanghai.The Bloomberg Dollar Spot Index dipped 0.2%.The euro was at $1.1833, up 0.1%.The British pound rose 0.1% to $1.2963.BondsThe yield on 10-year Treasuries increased more than two basis points to 0.81%.Australia’s 10-year bond yield rose more than three basis points to 0.79%.CommoditiesWest Texas Intermediate crude fell 0.6% to $41.44 a barrel.Gold added 0.4% to $1,913.76 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Disney says California rules will keep Disneyland shut for 'foreseeable future'

Disney says California rules will keep Disneyland shut for 'foreseeable future'Officials in California, home to Walt Disney Co's Disneyland, on Tuesday pushed the reopening of large theme parks months down the road, drawing outrage from the industry, which predicted the loss of thousands more jobs. California Health Secretary Mark Ghaly said theme parks with a capacity of more than 15,000 visitors must wait to resume business until a county's COVID-19 risk level drops to the lowest tier of "minimal" spread. Under California's four-tier scheme, the lowest tier means daily cases of the coronavirus must number less than one per 100,000.

Shale Oil M&A Accelerates With Pioneer Strike to Buy Out Parsley

Shale Oil M&A Accelerates With Pioneer Strike to Buy Out Parsley(Bloomberg) -- The series of mergers reshaping the beleaguered U.S. shale oil industry accelerated Tuesday when Pioneer Natural Resources Co. agreed to buy Parsley Energy Inc. for $4.5 billion in stock, creating one of the largest producers in the Permian Basin.The deal came a day after ConocoPhillips announced its $9.7 billion takeover of Concho Resources Inc. and underscores the view that oil companies must be big to survive in a new, pandemic-maligned world that’s oversupplied with crude. Earlier this month Chevron Corp. completed its takeover of Noble Energy Inc., while Devon Energy agreed to merge with shale driller WPX in late September.The sector is in full-on merger mode in response to oil prices that have been stuck at around $40 a barrel in recent months after the Covid-19 pandemic hit global demand. While that’s put pressure on energy companies around the world, the pain is most severe in U.S. shale. The industry is weighed down by massive debts, the result of years of break-neck expansion that made America the largest crude producer but also disappointed investors with poor returns.Energy has slumped to less than 2% of the S&P 500 Index, down from more than 11% a decade ago, even as the wider market rose to record levels.“There’s only going to be three or four independents that are investable by shareholders” after the recent market rout, Pioneer Chief Executive Officer Scott Sheffield said on a conference call with analysts. The “real survivors” will be Pioneer-Parsley, EOG Resources Inc., ConocoPhillips, and “maybe” Hess Corp. over the long-term, he said. “The best companies have been picked off the past few weeks.” Of those companies left, there’s speculation that billionaire Harold Hamm’s Continental Resources Inc. may come to some agreement with Marathon Oil Corp., Paul Sankey, a New York-based analyst at Sankey Research said in a note. Other mid-size players that haven’t made deals this year include Diamondback Energy Inc., Cimarex Energy Co. and Ovintiv Inc.Pioneer’s purchase of Parsley will save about $325 million a year in debt repayments and cost reductions while also adding to free cash flow, the company said. But size is also key to the transaction’s success, according to Sheffield. “You’ve got to be over $10 billion market cap.”Size matters in U.S. shale because of economies of scale, lower overheads, increased bargaining power with suppliers but also, crucially, greater access to debt markets. Many companies are having to contend with falling production for the first time because they lack the financial resources to drill the new wells needed to offset rapid declines from older ones. About 35% of Pioneer’s production drops off each year without fresh drilling, while at Concho, the rate is closer to 40%.A Pioneer-Parsley combination creates one of the largest players in the prolific Permian Basin of West Texas and New Mexico, which produces more oil output than every OPEC member except Saudi Arabia. The newly enlarged Pioneer’s production in the shale formation would grow by more than 40% to the equivalent of roughly 558,000 barrels of oil a day, according to regulatory filings and data from energy analysis firm Enverus compiled by Bloomberg, rivaling only Occidental Petroleum Corp. and Chevron Corp.Shares of Parsley were down 3.4% to $10.26 at 7:04 p.m. in New York, after the close of regular trading, while Pioneer was unchanged from the close at $83.53.Initial reports of the deal talks between Pioneer and Parsley raised eyebrows among some onlookers because Pioneer CEO Sheffield is the father of Parsley chairman Bryan Sheffield. More of the family’s wealth is tied up with Parsley than Pioneer, according to data compiled by Bloomberg. The two were not involved in the negotiations, Pioneer executive Rich Dealy said on the call.The deal already appears to have strong support from two of Parsley’s top shareholders. Bryan Sheffield’s stake in Parsley is amplified by his holdings of Class B shares, which give him overall voting power of 7.8%. Quantum Energy Partners holds a further 17% of the stock and said it supports the deal.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

AMD: Expect a “Beat and Raise” in Q3 Earnings, Says Top Analyst

AMD: Expect a “Beat and Raise” in Q3 Earnings, Says Top AnalystCOVID-19 has had ruinous consequences for many companies, but you’d be hard pressed to find any negative impact on perennial winner Advanced Micro Devices (AMD). The chip maker has swatted away the pandemic and has continued the market trouncing performance it set off on some half a decade ago.Heading into next week’s earnings (October 27, AMC), in possession of a year-to-date share gain of 78%, RBC analyst Mitch Steves pounds the table for more AMD upside.The 5-star analyst anticipates a "beat and raise” and, as such, lifts his price target from $84 to $92. This figure implies additional upside of 13% over the following months. Needless to say, Steves’ rating stays an Outperform (i.e. Buy). (To watch Steves’ track record, click here)So, what’s behind the target increase?Steves explained, “Our checks remain positive and we anticipate: 1) upside to gaming numbers due to higher than expected demand, 2) upside on PC CPUs as well given the continued strength from WFH initiatives - we also think AMD is continuing to gain share against Intel and 3) the steady share gains on the server side should continue and the firm should reach low-mid teens share (up from 10%) in the next 2-3 quarters.”Steves also addresses the recent rumored takeover of semiconductor peer Xilinx. Investors’ initial negative reaction to the estimated $30 billion deal was based on the fear the purchase amounts to a “defensive minded transaction.” Steves believes the noise surrounding the acqusition means “the focus has shifted away from AMD's current core/organic growth story.” However, the analyst expects such worries will “likely fade” so long as AMD “can produce organic results that meet/exceed expectations.”In addition to cementing AMD’s status as a large-cap semiconductor company, those in favor of the deal also highlight the acquisition’s potential to help AMD “expand into the communications sub-segment” and point to AMD's success when going head to head against Intel in the CPU segment.So, that’s RBC’s view, let’s see now what the rest of the Street has in mind for the high-flying chip maker. AMD's Moderate Buy consensus rating is based on 11 Buys, 13 Holds and 1 Sell. The $86.26 average price target suggests modest upside of 6% from current levels. (See AMD stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Pelosi, Mnuchin Move Closer to Stimulus Deal Amid Senate Doubts

Pelosi, Mnuchin Move Closer to Stimulus Deal Amid Senate Doubts(Bloomberg) -- House Speaker Nancy Pelosi said Tuesday she’s hopeful for a stimulus agreement this week, which would be crucial to getting a bill passed by Election Day, although Senate Majority Leader Mitch McConnell has warned the White House against a bigger Pelosi-led deal before Nov. 3.“That’s the plan. That’s what I would hope,” Pelosi said about reaching a compromise this week. She spoke to reporters after her latest call with Treasury Secretary Steven Mnuchin Tuesday.The White House also expressed some optimism on progress. Chief of Staff Mark Meadows said on CNBC that “everybody is working real hard” to get an agreement by the weekend, although he cautioned that there are still some outstanding issues.“I want to stress: We’re not just down to a difference of language and a few dollars,” Meadows said. “We still have a ways to go.”Even if remaining differences can be bridged, Senate Republicans remain a key roadblock, as many oppose a bill on the scale of what’s now under negotiation. Majority Leader Mitch McConnell has warned the White House not to rush into an agreement before the election, according to a person familiar with the matter.The administration’s offer has increased to $1.88 trillion, Meadows said. Pelosi is pushing for $2.2 trillion, while President Donald Trump reiterated Tuesday he could be willing to go even bigger.Stocks RoiledThe twists and turns of the stimulus talks have been roiling equities. The S&P 500 Index slumped 1.6% Monday, then climbed as much as 1.5% Tuesday after Pelosi noted progress being made. The gauge pared gains to close up 0.5%.S&P 500 contracts edged higher after Pelosi later wrote in a letter to Democratic colleagues that the stimulus package would be “safer, bigger, and better, and it will be retroactive.” S&P 500 futures rose 0.4% as of 10:10 a.m. in Tokyo.Pelosi’s spokesman, Drew Hammill, said the negotiators are moving closer to an agreement and “both sides are serious about finding a compromise.”McConnell said his chamber would take up a comprehensive coronavirus stimulus package “at some point” if Pelosi and Mnuchin are able to resolve the final areas of disagreement and get a bill through the House. But he didn’t say whether he would support such a deal, or encourage GOP members to back it.“It’s very unlikely that a number of that level would make it through the Senate, and I don’t support something of that level,” Senator Mitt Romney told reporters, referring to a number of $1.8 trillion or higher.Appropriations Chairman Richard Shelby said his staff doesn’t have the details from Mnuchin or Pelosi they need to work out a bill.“I’m not optimistic about us doing anything,” Shelby said. “We should have done something and we had the opportunity and the Democrats wouldn’t do it several months ago.”Staff WorkPelosi had tasked House committee chairmen to work out legislative language on a bill with their Senate Republican counterparts. Talks among appropriations committee members stalled because the levels of spending in accounts they are trying to resolve are interlinked with with areas of disagreement in the core Pelosi-Mnuchin talks, according to aides in both parties.Nevertheless, Pelosi said in a Bloomberg TV interview earlier Tuesday that “we are starting to write a bill.” She added that she was pleased with the Trump administration’s latest position on coronavirus testing and tracing. The two sides are also “in range” on other health care provisions, she said.While Mnuchin and Pelosi kept up their negotiations, McConnell moved on a separate front Tuesday to try to shame Democrats for blocking specific measures on which there’s bipartisan agreement.McConnell forced a symbolic vote on the $120 billion Continuing Paycheck Protection Program Act, a standalone bill providing coronavirus relief to small businesses. Democrats showed they have enough votes to block it.Read More: Senate Democrats Vote Against GOP Small Business Virus Aid BillThat was the first of two smaller-scale items. On Wednesday, McConnell will seek to proceed with a $500 billion GOP relief package that would extend expired unemployment benefits and provide small business relief and liability protections for businesses, among other provisions.“There are so many places where their bills are inadequate,” Senate Minority Leader Chuck Schumer said Tuesday. Pelosi is now trying to get a “big, bold” bill to address the nation’s needs, he said.If that fails, “we will try to get one in the lame duck and we will try to get one should we win the presidency and the Senate after that,” he said. The lame duck refers to the period between the election and the swearing in of the new Congress.(Adds S&P 500 futures, in the eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.