Shares and oil prices lower as Omicron fears hit European markets

London shares  fell sharply today as the prospect of tighter Covid-19 restrictions over Christmas leads to more turbulence for European markets. The rapid spread of the Omicron variant and its impact on the global economic outlook has also weighed on oil, with Brent crude trading more than 3% lower at just above $71 a barrel.The main corporate developments involved FTSE 100 boardroom changes after mining giant Rio Tinto appointed Dominic Barton as its new chairman and GlaxoSmithKline named former Tesco boss Sir Dave Lewis as chair-designate of its consumer healthcare division. The FTSE 100 index has dived 1.7% in the latest sell-off linked to the fast-spreading Omicron variant. Demand fears meant commodity stocks were at the forefront of the slump as Anglo American, BP and Antofagasta all fell by 3% or more. The prospect of tighter travel restrictions, including bans on UK visitors to Europe, meant British Airways owner IAG fell 5% and Rolls-Royce dropped 4%. Events business Informa was the biggest top flight faller at 6% lower.The UK-focused FTSE 250 index was down 2%, taking it back to the level last seen in the summer. Upper Crust business SSP and WHSmith both fell more than 5%. Oil prices have fallen sharply and investors face another turbulent session as European markets react to the tightening of Covid-19 restrictions ahead of Christmas. The rapid spread of the Omicron variant has resulted in a fresh lockdown in the Netherlands and other countries are considering their response, including potential bans on UK travelers. Brent crude fell more than 3% to $71.17 a barrel today as traders responded to the travel ban impact on jet fuel sales.

 

Oil prices drop 2% as rapid Omicron spread dims fuel demand outlook

  • Omicron threat looms over winter holidays in Europe and U.S.
  • Netherlands enters lockdown
  • U.S. drillers add oil and gas rigs for second week in a row

SINGAPORE, Dec 20 (Reuters) – Oil prices slumped 3% on Monday as surging cases of the Omicron coronavirus variant in Europe and the United States stoked investor worries that new restrictions on businesses to combat its spread may hit fuel demand. Brent crude futures fell $2.14, or 2.9%, to $71.38 a barrel by 0747 GMT while U.S. West Texas Intermediate (WTI) crude futures fell $2.45, or 3.5%, to $68.41 a barrel. “Today’s Asia … weak sentiment in oil prices seems to go in line with a weakness seen in the S&P 500 and Nasdaq 100 e-mini futures,” said Kelvin Wong, market analyst at CMC Markets. “(This is) due to fears of impending restrictions on economic activities to contain the current increasing spread of the COVID-19 Omicron variant worldwide which may increase the risk of demand slowdown.” The Netherlands went into lockdown on Sunday and the possibility of more COVID-19 restrictions being imposed ahead of the Christmas and New Year holidays loomed over several European countries. U.S. health officials urged Americans on Sunday to get booster shots, wear masks and be careful if they travel over the winter holidays, as the Omicron variant raged across the world and was set to take over as the dominant strain in the United States. Meanwhile, U.S. energy firms this week added oil and natural gas rigs for a second week in a row.

The oil and gas rig count, an early indicator of future output, rose by three to 579 in the week to Dec. 17, its highest since April 2020, energy services firm Baker Hughes Co said in its closely followed report on Friday.

Still, lower exports are expected from Russia with exports and transit of oil from the country planned at 56.05 million tonnes in the first quarter of 2022 versus 58.3 million tonnes in the fourth quarter of 2021, a quarterly export schedule seen by Reuters showed on Friday. China’s diesel exports in November plunged 69% from a year ago as refineries prioritised domestic supply to ease a fuel crunch with state-backed refineries having raised oil processing rates. NN: Oil between $60 to 70 a barrel is a price i call neutral from our trading standpoint.. Everybody makes money here. Do not let them shit you. Below $30 the industry sucks shut. Any thing over $50 the oil rush is on. Production is coming back. And their is plenty of capital available. Smart oil producers hedged when oil went to $80. For the next year they could give a rats ass about what oil does. Of course the wild card is the Omicron mutation spreading like nothing seen before.

Omicron has extraordinary transmissibility – Fauci

NIAID director Anthony Fauci told the CNN’s “State of the Union” Sunday that the U.S. will likely see record numbers of COVID-19 cases, hospitalizations and deaths in the weeks ahead due to the Omicron variant. The variant has been detected in 89 countries and experts are warning of a large winter surge due to the variant’s high transmissibility and its ability to evade immune protection. Stay on top of the latest market trends and economic insights with Axios Markets.  Asked by host Jake Tapper whether the U.S. is likely to record high numbers of cases, as well as hospitalizations and deaths, Fauci said, “Unfortunately, Jake, I think that that is going to happen.” “We are going to see a significant stress in some regions of the country on the hospital system, particularly in those areas where you have a low level of vaccination,” he added. “This virus is extraordinary. It has a doubling time of anywhere from two to three days,” adding that the variant is “going to take over.” “It is going to be a tough few weeks to months, as we get deeper into the winter.”

Fauci also appeared on MSNBC’s “Meet the Press” Sunday, where he mentioned the variant’s “extraordinary capability of spreading” and that Omicron is “raging” through the world. Fauci also warned that the belief that Omicron cases might be less severe is derived from data from South Africa, where the population has had “so much experience with prior infections that it might be underlying immunity that’s making it look like it’s less severe.” “As a virus, it inherently may not be less severe,” he warned. “We have so many people in this country who are eligible to be vaccinated who have not yet been vaccinated. And that’s going to be a real problem for stress on the hospital system” Fauci added of the coming situation in the U.S.

UK may face ‘hundreds of thousands’ of COVID cases per day – report


Tougher restrictions may reportedly soon be introduced in the face of the rapidly-spreading Omicron variant, after experts warned there are likely already hundreds of thousands of new infections every day. Stricter measures could be imposed after Boxing Day, according to a report in The Sun newspaper, which said the contingency plan had not yet been presented to ministers.

It comes after scientific advisers to the Government said hospital admissions with the variant in the UK are “probably around one tenth of the true number” due to a lag in reporting.The “situation update” from the Scientific Advisory Group for Emergencies (Sage) on Thursday was published on Saturday and said that it is “almost certain that there are now hundreds of thousands of new Omicron infections per day” in England. London Mayor Sadiq Khan has declared a major incident due to the “hugely concerning” surge in cases across the capital, as he voiced fears about staff absences in vital public services including the NHS, the fire service and police due to infection.Asked about a possible tightening of restrictions after Christmas, a Government spokesman said they will “continue to look closely at all data and keep our measures under review”. Health Secretary Sajid Javid said the current measures are “responsible and proportionate”, even as he admitted being torn over their introduction. “Standing in Parliament this week and arguing for Plan B brought me no joy – promoting individual freedom and opportunity is one of the reasons I got into politics,” he wrote in The Sunday Telegraph. “But we have to be clear-eyed about the challenge Omicron presents. Our strategy since it emerged has been and remains to buy time for our scientists to assess the threat and build up our defences … Together we are taking a responsible and proportionate response,” he added. The prospect of new rules comes less than a week after Boris Johnson suffered a rebellion from a large number of Conservative backbenchers who defied him to vote against the mandatory use of Covid health passes for large venues. Brexit minister Lord Frost, who quit on Saturday, gave an indication of his belief as to the Prime Minister’s mindset, saying in his resignation letter that “we also need to learn to live with Covid and I know that is your instinct too”. Meanwhile, the Mirror reported that the royal family’s traditional Christmas Day walk to church might not be accessible to the public due to the pandemic. Buckingham Palace declined to comment but it is understood Christmas plans remain under consideration. The Sunday Telegraph reported a source as saying options include the Queen remaining at Windsor Castle. Last week, it was confirmed the traditional pre-Christmas family party for the royals, due to be held on Tuesday, was being cancelled amid concerns it could put too many people’s festive arrangements at risk if it went ahead. The latest figures from the UK Health Security Agency showed there had been 10,059 additional confirmed cases of the Omicron variant of Covid-19 reported across the UK, bringing the total confirmed cases of the variant across the four nations to 24,968. In England, the number of deaths of people with the Omicron variant has risen to seven, and hospital admissions for people with confirmed or suspected Omicron rose to 85. Advice from the Scientific Pandemic Influenza Group on Modelling, Operational sub-group (SPI-M-O), in documents also released on Saturday but dated December 8 said that, in almost all modelling, a significant reduction in transmission “similar in scale to the national lockdown” of January this year would be required “to keep hospitalisations below the height of previous peaks”.

Experts warned that indoor mixing is the “biggest risk factor” for the spread of the variant, and that large gatherings risked creating “multiple spreading events”.

They said the ramping up of the booster programme would not help in terms of hospitals admissions at this stage, as many would be those who are infected now, before immunity has had time to build. The Liberal Democrats have called for Parliament to be recalled on Monday to debate the next steps, with party leader Sir Ed Davey saying: “We cannot allow the Prime Minister to sit on his hands while the NHS and businesses are on the brink of collapse.”

Stephen Reicher, professor of social psychology at the University of St Andrews and member of Sage, said it was clear that Plan B measures alone would not be enough to stop the spiralling numbers of cases and cautioned that waiting until after Christmas to act is “probably too late”.

A Cobra meeting was expected to be held at some point over the weekend with the devolved nations. NN: How high a price must they pay Christmas. We mandate isolation for infectious TB sufferers. I think its a time for a rethink on vaccine mandates. Come January their will be hell to pay. We do not know yet how deadly this Omicron mutant really is. So far its the most infectious to date. In the mean time i suggest taking no chances till we have more informations

The Netherlands imposes new virus lockdown

LONDON (AP) — Nations across Europe moved to reimpose tougher measures to stem a new wave of COVID-19 infections spurred by the highly transmissible omicron variant, with the Netherlands leading the way by imposing a nationwide lockdown.All non-essential stores, bars and restaurants in the Netherlands will be closed until Jan. 14 starting Sunday, caretaker Prime Minister Mark Rutte said at a hastily arranged press conference Saturday night. Schools and universities will shut until Jan. 9, he said. In what is surely to prove a major disappointment, the lockdown terms also rein in private holiday celebrations. Residents only will be permitted two visitors except for Christmas and New Year’s, when four will be allowed, according to Rutte.

“The Netherlands is going into lockdown again from tomorrow,” he said, adding that the move was “unavoidable because of the fifth wave caused by the omicron variant that is bearing down on us.”

It wasn’t just the Dutch seeking to slow the spread of omicron. Alarmed ministers in France, Cyprus and Austria tightened travel restrictions. Paris canceled its New Year’s Eve fireworks. Denmark has closed theaters, concert halls, amusement parks and museums. Ireland imposed an 8 p.m. curfew on pubs and bars and limited attendance at indoor and outdoor events. London Mayor Sadiq Khan underscored the official concern about the climbing cases and their potential to overwhelm the health care system by declaring a major incident Saturday, a move that allows local councils in Britain’s capital to coordinate work more closely with emergency services.

Irish Prime Minister Micheál Martin captured the sense of the continent in an address to the nation, saying the new restrictions were needed to protect lives and livelihoods from the resurgent virus.

“None of this is easy,” Martin said Friday night. “We are all exhausted with COVID and the restrictions it requires. The twists and turns, the disappointments and the frustrations take a heavy toll on everyone. But it is the reality that we are dealing with.” The World Health Organization reported Saturday that the omicron variant of the coronavirus has been detected in 89 countries, and COVID-19 cases involving the variant are doubling every 1.5 to 3 days in places with community transmission and not just infections acquired abroad. Major questions about omicron remain unanswered, including how effective existing COVID-19 vaccines are against it and whether the variant produces severe illness in many infected individuals, WHO noted. Yet omicron’s “substantial growth advantage” over the delta variant means it is likely to soon overtake delta as the dominant form of the virus in countries where the new variant is spreading locally, the U.N. health agency said. In the Netherlands, shoppers fearing the worst swarmed to commercial areas of Dutch cities earlier Saturday, thinking it might be their last chance to buy Christmas gifts. Rotterdam municipality tweeted that it was “too busy in the center” of the port city and told people: “Don’t come to the city.” Amsterdam also warned that the city’s main shopping street was busy and urged people to stick to coronavirus rules. “I can hear the whole of the Netherlands sighing,” Rutte said in his lockdown announcement. “All this, exactly one week before Christmas. Another Christmas that is completely different from what we want. Very bad news again for all those businesses and cultural institutions that rely on the holidays.” The head of the Dutch public health institute, Jaap van Dissel, described the shutdown as a preventative move that would “buy time” for more people to get booster vaccines and for the nation’s health care system to prepare for a possible new surge in infections. In the U.K., where confirmed daily cases soared to record numbers this week, the government has reimposed a requirement for masks to be worn indoors and ordered people to show proof of vaccination or a recent negative coronavirus test when going to nightclubs and large events. But the moves caused anger. Critics of British Prime Minister Boris Johnson’s latest coronavirus restrictions flooded Oxford Street, a popular London shopping area, on Saturday. The maskless protesters blew whistles, yelled “Freedom!” and told passersby to remove their face coverings. Hundreds of people blocked traffic as they marched with signs bearing slogans such as “Vaccine passports kill our freedoms” and “Don’t comply.” Other signs had the faces of Johnson or U.K. Health Secretary Sajid Javid and read, “Give them the boot.”

Scientists are warning the British government it needs to go further to prevent hospitals from being overwhelmed. Leaked minutes from the Scientific Advisory Group for Emergencies suggested a ban on indoor mixing and hospitality, the BBC reported.

Britain and other nations are also accelerating the pace of booster shots after early data showed that two doses of vaccine were less effective against the omicron variant. Shopping centers, cathedrals and soccer stadiums in Britain have been converted into mass vaccination centers. Omicron is now the dominant coronavirus variant in London, and efforts were stepped up to reach people who haven’t yet been vaccinated or boosted. The mayor said during a visit to a mass vaccination pop-up clinic at London soccer team Chelsea’s stadium that public services ranging from ambulances to police calls could be impeded by the rapidly spreading variant. “The big issue we have is the number of Londoners who have this virus, and that’s leading to big issues in relation to staff absences and the ability of our public services to run at the optimum levels,″ Khan told the BBC.  In France, the government announced that it will start giving the vaccine to children in the 5 to 11 age group beginning Wednesday. Prime Minister Jean Castex said Friday that with the omicron variant spreading like “lightning,” the government proposed requiring proof of vaccination from individuals entering restaurants, cafes and other public establishments. The action requires parliamentary approval. Thousands of opponents of vaccine requirements and mask mandates protested Saturday in Hamburg, Berlin, Düsseldorf and other German cities. In Austria, local media reported the crowds swelled to tens of thousands.

Dow tumbles 530 pts at close on tapering, virus worries

Major stock market benchmarks in the United States ended the session in the red on Friday, with the Dow Jones plunging more than 530 points amid worries regarding both the monetary policy and the spread of the Omicron variant of the coronavirus.

Federal Reserve’s Christopher Waller and Mary Daly both expressed somewhat hawkish stances earlier during the day, while the sentiment was also negatively impacted by a rise in COVID infections, with the state of New York recording an all-time high in daily cases.

The Dow Jones dropped 1.48%, or 532 points, as the session came to a close with Goldman Sachs surrendering 3.92%. The Nasdaq 100 was concurrently down by 0.39% as NetEase dived 5.15%. At the same time, the S&P 500 lost 1.03%. Missouri-based Leggett & Platt was the index’s worst performer, with a 7.98% plummet at the closing bell.

The euro nosedived 0.84% versus the dollar, selling for 1.12383 at 3:59 pm ET.

NY to require boosters for ‘fully vaccinated’ status

New York Gov. Kathy Hochul (D) announced during a press conference on Thursday that she is planning to introduce legislation that includes a booster shot within the definition of being “fully vaccinated.” While the Democratic governor noted that the legislation needed to be more fleshed out and required more data to be collected, she signaled the change would happen eventually, saying that “at some point, we have to determine that fully vaccinated means boosted as well,”  Hochul’s remarks come as the country begins to see an uptick of COVID-19 cases again and as health officials grapple with the spread of the omicron variant, which President Biden’s chief medical adviser Anthony Fauci warned on Thursday would likely be the dominant strain in “a few weeks.” Fauci also signaled that the omicron variant could have serious implications on hospitals, which could see a strain of resources. “Besides the toll of suffering and death which will inevitably go up if in fact we have that convergence in the winter months of flu and omicron and delta, we could get our hospital systems overwhelmed,” Fauci said. The government’s top infectious disease expert said he was more concerned about Americans who remain unvaccinated, reassuring the public that people who have already received the vaccines and boosters would be “relatively well protected, at least against severe disease.” Fauci said earlier this month that it “it’s going to be a matter of when, not if” the definition of being “fully vaccinated” changes, but he noted that the change likely was not going to happen right away. NN: You can conclude two things here. The first governments are scared shit. This virus  is so infections that the infections double every 48 hours, something never seen before. The second conclusion is how fucked up leadership is and politicized. Since August we new a third vaccine was critical. And we so stated. Now that infections are skyrocketing finally 5 months to late they are SLOWLY recommendation booster shots. Which means the public is confused and less then 40% of the US population is sufficiently protected. Its going to be a real ugly winter. And like your barking dog started warning uou last August massive shut downs are coming and deaths unless we get a miracle. Final conclusion: Global leaders are corrupt and stupid. How do you think that is going to work out?  Millions will die because of the most deadly disease of them all……..  STUPIDNESS!

Joe Biden warns of ‘winter of death’ for the unvaccinated, with Omicron ‘here now and spreading’

Joe Biden issued a grim warning on Thursday as he said that unvaccinated Americans “will soon overwhelm” US hospitals and they will experience “a winter of severe illness and death”. “I want to send a direct message to the American people: Due to the steps we’ve taken, Omicron has not yet spread as fast as it would have otherwise done,” Mr Biden said at the White House following his Covid-19 briefing. “But it’s here now and it’s spreading and it’s going to increase.” “We are looking at a winter of severe illness and death for the unvaccinated — for themselves, their families and the hospitals they’ll soon overwhelm,” he said. The US president urged Americans to get their booster shots, saying it was “past time” to get one and prevent schools and businesses from shutting down. “We’re gonna protect our economic recovery. If we do this, we’re gonna keep schools and businesses open … and I want to see everyone around enjoy that. I want to see them enjoy the fact that they’re able to be in school, that businesses are open and the holidays are coming,” he said. President Biden wore his mask throughout the meeting with his coronavirus adviser Dr Anthony Fauci, and Dr Julie Ledgerwood and Dr John Mascola of the Dale and Betty Bumpers Vaccine Research Center on Thursday. His stark warnings come as Covid infections surge across the US, driven by the heavily-mutated Omicron variant of coronavirus. Omicron has accounted for nearly 3 per cent of Covid cases in the US as of Saturday, up from only 0.4 per cent the week before, according to US Centers for Disease Control and Prevention. The country also reached a grim milestone of 800,000 deaths from Covid-19 this week.

The US is recording an average of nearly 120,000 new cases every day and more than 1,200 people are succumbing to the infection daily, according to data from Johns Hopkins University. This is a nearly 50 per cent increase since the previous month.

On Tuesday, the CDC presented two scenarios based on models on what could be the situation in the US over the next few weeks and months. They predicted that cases linked to both Delta and Omicron variants could peak in January, and cases related to Omicron could again surge in the spring. The CDC has predicted that by 8 January, the death toll in the US could be in the range of 837,000 to 845,000 . “I suspect that those numbers are going to shoot up dramatically in the next couple of weeks,” Céline Gounder, infectious disease specialist and epidemiologist, said. She added that the Omicron wave may peak at the end of January and recede sometime in February. NN: This is the next wave i have been barking my ass off. Please get you 3rd shoot the booster and hunker down the best you can. You know the drill by now.

World coal power demand to hit new high after China, India, U.S. surge – IEA

SHANGHAI (Reuters) – Rising consumption in China, India and the United States could bring global coal-fired power demand to a new all-time high this year, undermining efforts to cut greenhouse gas emissions, the International Energy Agency (IEA) said on Friday.The IEA said global power generation from coal was expected to reach 10,350 terawatt-hours in 2021, up 9%, driven by a rapid economic recovery that has “pushed up electricity demand much faster than low-carbon supplies can keep up.” Overall coal demand, including for industries such as cement and steel, is expected to grow 6% this year. Though it will not exceed the record consumption levels of 2013 and 2014, it could hit a new all-time high next year, the IEA report said.

IEA Executive Director Fatih Birol said the increase was “a worrying sign of how far off track the world is in its efforts to put emissions into decline towards net zero.”

China is responsible for more than half of global coal-fired power generation and is expected to see a 9% year-on-year increase in 2021, the IEA said. Generation in India is forecast to grow 12% this year. Cutting coal use was a major bone of contention at climate talks in Glasgow last month, with countries finally agreeing to “phase down” consumption as part of their efforts to keep global temperature rises as close to 1.5 degrees Celsius as possible. China has already made a pledge to start reducing coal consumption, but will do so only after 2025, giving developers considerable leeway to raise generation capacity further in the coming four years. According to a report published this week by researchers with China’s State Grid Corporation, energy security concerns mean the country is likely to build as much as 150 gigawatts (GW) of new coal-fired power capacity over the 2021-2025 period, bringing the total to 1,230 GW. NN: Wish upon a star. Is that reality? The more they push their anti fossil fuel imitative the more they lose. Forget golbal warming… Just from a pollution stand point mankind need to stop using coal for electric generation. As far as steel making coal will be with us for a long time in the future. As far as 100% renewables meeting mankind’s energy demand keep wishing on that star. I find the predictions of a carbon free world by 2040 comical. The pompous pricks want you to believe they can predict energy sources 20 years in the future. They could not even predict energy demand for this winter. As they fire up the coal generation stations…

Nasdaq sinks 300 points pulled by tech stocks

The Nasdaq 100 declined as much as 2% deep into Thursday’s session, led by the sell-off of tech giants such as Apple, Nvidia, AMD, Tesla, and Microsoft. The previous day was marked by the Federal Reserve’s decision to start scrapping pandemic policies, announcing it would double the tapering pace to $30 billion per month from January. In a statement released yesterday, the Fed’s board members hinted at three rate hikes next year if recovery stays strong. The Nasdaq 100 plunged 1.97% or 321 points at 12:15 pm ET, while the S&P 500 lost 0.37%. At the same time, the Dow Jones jumped 0.29% or 102 points. The euro grew 0.15% against the dollar to sell for 1.13047 a minute later.