9 March 2020

1) The FCC (Federal Communications Commission) will vote later this month on rules requiring all providers of phone service to implement automatic call blocking. This automatic technology will block illegal robocalls, that is, the automatic calling of people with a prerecorded message or to connect the person to a salesman. This will give phone and cable companies until June 20, 2021 to implement. This blocking technology is called STIR/SHAKEN protocol that authenticates the origin of a call and can automatically block it if it’s from an illegal robocaller.

2) The U.S. credit markets of bonds are suffering their worst day in a decade as fears increase over the spreading coronavirus and it’s possible effects on corporate income as well as their ability to repay debt. Bonds of American Airlines Group Inc. dropped to near distressed levels as companies worldwide canceled business travel. Other travel related bonds, such as rental car and cruise line companies, as well as energy companies, their bonds and loans fell further towards distressed levels. The selling off of bonds triggered a surge in derivative indexes that investors use to hedge against losses. The week has seen the most cash in at least ten years being withdrawn from funds buying corporate bonds and loans.

3) There are fears that the unraveling of the Saudi-Russia alliance will cause the biggest plunge of oil prices since 2015. Talks between members of the OPEC+ collapsed in Vienna, with members free to pump oil without any restrictions starting next month. The collapses is a result of Russia’s refusal to accept Saudi Arabia’s proposal for output cuts aimed at offsetting the coronavirus crisis’s impact on demand. Oil futures have plunged about 9% in New York and London.

4) Stock market closings for – 6 MAR 20:

Dow 25,864.78 down 256.50
Nasdaq 8,575.62 down 162.98
S&P 500 2,972.37 down 51.57

10 Year Yield: down at 0.71%

Oil: down at $41.57