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US Stocks Higher After AT&T-Time Warner Merger Announced



  • US Stocks Higher After AT&T-Time Warner Merger Announced

US stocks rose early Monday but both AT&T and Time Warner shares dropped on news of their controversial $108.7 billion mega merger as antitrust challenges loomed.

AT&T’s takeover of Time Warner would transform the telecom giant into a media-entertainment powerhouse. But it is expected to face tough scrutiny from politicians and antitrust officials. Shares of Time Warner fell 2.6 percent, while AT&T lost 1.3 percent.

The market faces a heavy week of earnings reports that accelerates on Tuesday with Caterpillar, Procter & Gamble and General Motors.

About 35 minutes into trade, the Dow Jones Industrial Average stood at 18,240.02, up 0.5 percent.
The broad-based S&P 500 advanced 0.5 percent to 2,152.71, while the tech-rich Nasdaq Composite Index gained 0.8 percent to 5,301.83.

Analysts said investors were cheered by a series of smaller merger and acquisition announcements.

B/E Aerospace, a supplier of aircraft cabin equipment, surged 15.7 percent on news it will be bought by Rockwell Collins for $6.4 billion in cash and stock plus $1.9 billion in the assumption of debt. Rockwell Collins fell 5.2 percent.

TD Ameritrade lost 2.3 percent following an announcement that it will buy privately-held Scottrade for $4 billion, combining two large online brokerages.

Hilton Worldwide climbed 1.7 percent after Chinese conglomerate HNA Group said it would acquire a 25 percent stake in the global hospitality giant from investment firm Blackstone for $6.5 billion.

Rival hotelier Marriott International rose 1.3 percent.

Kimberly-Clark fell 2.9 percent after third-quarter earnings and revenues missed analyst expectations, with chief executive Thomas Falk pointing to “a more challenging economic and competitive environment.”

Kimberly-Clark, which makes toilet paper and other household products, also slashed its full-year forecast.

T-Mobile US jumped 6.5 percent after announcing that third-quarter net profit more than doubled to $1.1 billion as it added two million wireless customers.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd




The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins



Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020




Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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