Germany continued a program by which millions of its citizens will not lose their jobs. The program is to help Europe’s biggest economy to recover from the coronavirus crisis. Merkel’s coalition agreed to provide subsidies until the end of 2021 to allow companies to hold on to the German workers during the crisis.
Hurricane Laura becomes a roof-ripping category N3 storm threatening $18 billion of damage to the region and keeping the U.S. largest oil companies shut for months. According to the National Hurricane Center, Laura’s winds were forecast to peak 193 kilometers per hour as the storm comes ashore late Wednesday or early Thursday (local time).
Cloud and software company stocks got boosted after salesforce.com.inc released its quarterly earnings reports, the stock soared 13%, the quarterly revenue, and profit estimates, giving the signal that even during COVID-19 pandemic and economic slump upgrading critical technology systems can boost the business.
Exxon, the world’s largest company in 2013, is now being kicked out of Dow Jones Industrial Average. The Fuel giant with a $446 billion market cap in 2014 is losing money for the first time in history. It was a part of the Dow Jones family for 92 years. Exxon is being replaced by Salesforce (CRM). And Chevron (CVX). To compare, oil companies have been crushed by the crash in prices, which went negative for the first time in history and collapses in demand.
"Historically, Exxon was arguably the most efficient company in the oil and gas space. The dividend, which was very manageable for them when cash flows were stronger, has become more of a burden," said CFRA's Glickman.
Exxon Mobil is the well-known company in the fossil fuels industry, but when investors have turned to bet aggressively on investing in renewable energy, solar and Tesla for instance, Exxon failed to make efforts to maintain its share on the market and stayed muted amidst the battle against the climate change.
Of course, no analyst predicts oil demand crash overnight but still, the best runners in oil companies will gradually shift away and thrive leaving Exxon Mobil behind.