Weekly Flash Report 7/17 2020.07.17

Current Happenings

  • Airlines warn of massive job cuts in October, despite $25B in bailouts. With depressed travel demand and high expenses airlines are burning through their bailout bucks.
  • Chase, Citi, Goldman, and Morgan Stanley announced expectations-smashing earnings driven by record trading revenues. But they are bracing for massive loan defaults
  • Domino’s sales surged 16% because it thrives on the out-of-store experience: mobile-order takeout, delivery, and now “carside delivery.”
  • Twitter suffered a major hack last week when accounts from Obama to Bezos started tweeting out requests for cypto payment.

Regulatory Chatter and Industry Trends

  • The latest ERISA fiduciary breach lawsuit was filed against Biogen. The complaint says they did not try to use the plan’s bargaining power to reduce expenses and failed to scrutinize each investment option that was offered in the plan to ensure it was prudent in terms of cost and performance.

  • A judge has denied a motion to dismiss a lawsuit alleging Goldman Sachs’ 401(k) plan fiduciaries retained expensive, low-performing proprietary funds in the plan for the benefit of itself and a subsidiary. The judge found the claims sufficiently plead imprudence and disloyalty.

Investment Manager News

  • J.P. Morgan Asset Management has appointed Jared Gross to the newly created role of Institutional Portfolio Strategy.
  • Isaac Chang was named head of execution trading for global fixed income at Citadel.

What's Ahead

  • Existing Home Sales – July 22, 2020
  • EIA Petroleum Status Report – July 22, 2020
  • Jobless Claims – July 23, 2020
  • EIA Natural Gas Status Report – July 23 2020
  • Baker-Hughes Rig Count – July 24, 2020
  • New Home Sales – July 24, 2020

 

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