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Lufthansa board hopeful of securing government bailout soon
3 May 15:04
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Lufthansa board hopeful of securing government bailout soon
BERLIN (Reuters) - Lufthansa is hopeful its bailout talks with the German government can be concluded soon, the airline’s board told staff in a letter seen by Reuters, adding that it is also considering alternatives such as creditor protection. Travel bans have forced the German group to ground 700 of its aircraft, leading to a 99% drop in passenger numbers and causing the group, which includes Swiss and Austrian Airlines, to lose about one million euros ($1.1 million) in liquidity reserves per hour. “We estimate that these talks can lead to a conclusion soon,” Chief Executive Carsten Spohr and board members wrote in the letter, adding that they are also checking alternative options but do not expect to need them. “We remain nevertheless convinced that we will not have to fall back on alternatives given the talks with Berlin.” Lufthansa is negotiating a 10 billion euro bailout that would result in the government taking a 25.1% stake in the airline, weekly paper Der Spiegel said on Friday. Of that, 5.5 billion euros would be in the form of non-voting capital, for which the government wants a coupon of 9%, the paper said. A further 3.5 billion euros in loans would be provided by state bank Kreditanstalt für Wiederaufbau (KFW), the paper said, adding that Belgium, Austria and Switzerland might contribute towards the bailout. Reuters reported on Wednesday that Lufthansa is negotiating a 9 billion euro bailout, with loans from Austria, Germany and Switzerland, citing a source close to the matter. The slump in travel due to the coronavirus pandemic has led to a sweeping restructuring of the airline industry, with other carriers also seeking state bailouts. Finance Minister Olaf Scholz told the Passauer Neue Presse newspaper at the weekend that “taxpayers can count on us not to conduct these talks naively.” ($1 = 0.9105 euros)
3 May 15:04 • Reuters • https://www.reuters.com/article/us-health-coronavirus-lufthansa-idUSKBN22F0MIRating: 4.04
Lufthansa hopeful on deal for German state aid
Europe's biggest airline group Lufthansa said Sunday it was close to a deal with the German government on state aid to ease the impact of the coronavirus crisis. The group, which warns it is bleeding cash and might have to declare insolvency, had appeared to be stalled in its bid for up to 10 billion euros ($11 billion) in aid, according to a report in the weekly Der Spiegel. But in a note from Lufthansa directors to staff seen by AFP, the company said it has held "intense and constructive exchanges" with the German government on the financial help. "In our view these discussions could be concluded in the near future," it said. "Support from the German state constitutes an essential step towards ensuring our future," it added, as Europe begins to ease measures taken to stem the spread of COVID-19. Like airlines worldwide, Lufthansa and its subsidiaries that include Swiss and Austrian Airlines have been essentially grounded and face an uncertain future once operations are fully up and running again. In April, chief executive Carsten Spohr said the group was carrying fewer than 3,000 passengers daily compared with a pre-pandemic average of around 350,000 a day. "We are losing about a million euros in liquidity reserves per hour. Day and night. Week by week," Spohr said. According to Der Spiegel, the German government is holding out for a stake of just over 25 percent in the group in exchange for financial aid, which would put Berlin in a position to block strategic decisions by Lufthansa management. No blank cheques The Social Democratic Party (SPD), which includes Finance Minister Olaf Scholz among its ranks, has warned Lufthansa it cannot expect a blank cheque from Berlin. "The state is not some idiot that will just hand over money and have no say after that," SPD leader Carsten Schneider told the daily Die Welt in comments to appear on Monday. In particular, he ruled out dividend payments to Lufthansa shareholders if the company received state aid. But Lufthansa directors have warned that without such aid they could declare insolvency to benefit from a grace period during which they could try to sort out the group's finances. That might mean job cuts, especially given that Spohr has said there are now 10,000 too many workers given the state of Lufthansa's operations. Around 700 of its roughly 760 aircraft are currently parked at airports and more than 80,000 of its 130,000 staff are on part-time work schemes. The director's letter to staff nonetheless voiced optimism, saying: "We are still convinced, in light of the talks with Berlin, that we will not have to go with alternative options." Swiss authorities have already agreed to guarantee loans of up to 1.2 billion euros to Lufthansa, while Austrian Airlines has asked the government in Vienna for 767 million euros in state aid. The group's supervisory board is to meet on Monday, and hold an online general assembly a day later.
3 May 17:28 • Tech Xplore • https://techxplore.com/news/2020-05-lufthansa-german-state-aid.htmlRating: 0.31
Lufthansa hopeful on deal for German state aid
BERLIN: Europe's biggest airline group Lufthansa said on Sunday (May 3) it was close to a deal with the German government on state aid to ease the impact of the coronavirus crisis. The group, which warns it is bleeding cash and might have to declare insolvency, had appeared to be stalled in its bid for up to 10 billion euros (US$11 billion) in aid, according to a report in the weekly Der Spiegel. But in a note from Lufthansa directors to staff seen by AFP, the company said it has held "intense and constructive exchanges" with the German government on the financial help. "In our view these discussions could be concluded in the near future," it said. "Support from the German state constitutes an essential step towards ensuring our future," it said, as Europe begins to ease measures taken to stem the spread of COVID-19. Like other airlines worldwide, Lufthansa and its subsidiaries that include Swiss and Austrian Airlines have been essentially grounded and face an uncertain future once their operations are fully up and running again. In April, chief executive Carsten Spohr said the group was carrying fewer than 3,000 passengers daily compared with a pre-pandemic average of around 350,000 a day. "We are losing about a million euros in liquidity reserves per hour. Day and night. Week by week," Spohr warned. According to Der Spiegel, the German government is holding out for a stake of just over 25 per cent in the group in exchange for financial aid, which would put Berlin in a position to block strategic decisions by Lufthansa management. NO BLANK CHEQUES The Social Democratic Party (SPD), which includes Finance Minister Olaf Scholz among its ranks, has warned Lufthansa it cannot expect a blank cheque from Berlin. "The state is not some idiot that will just hand over money and have no say after that," SPD leader Carsten Schneider told the daily Die Welt in comments to appear on Monday. In particular, he ruled out dividend payments to Lufthansa shareholders if the company received state aid. But Lufthansa directors have warned that without such aid they could declare insolvency to benefit from a grace period during which they could try to sort out the group's finances. That might mean job cuts, especially given that Spohr has said there are now 10,000 too many workers given the state of Lufthansa's operations. Around 700 of its roughly 760 aircraft are currently parked at airports and more than 80,000 of its 130,000 staff are on part-time work schemes. The director's letter to staff nonetheless voiced optimism, saying: "We are still convinced, in light of the talks with Berlin, that we will not have to go with alternative options." Swiss authorities have already agreed to guarantee loans of up to 1.2 billion euros to Lufthansa, while Austrian Airlines has asked the government in Vienna for 767 million euros in state aid. The group's supervisory board is to meet on Monday, and hold an online general assembly a day later.
3 May 23:00 • CNA • https://www.channelnewsasia.com/news/business/lufthansa-hopeful-deal-german-state-aid-covid-19-coronavirus-12698362Rating: 3.25
Lufthansa hopeful on deal for German state aid
BERLIN, Germany – Europe's biggest airline group Lufthansa said on Sunday, May 3, it was close to a deal with the German government on state aid to ease the impact of the coronavirus crisis. The group, which warns it is bleeding cash and might have to declare insolvency, had appeared to be stalled in its bid for up to 10 billion euros ($11 billion) in aid, according to a report in the weekly Der Spiegel. But in a note from Lufthansa directors to staff seen by Agence France-Presse, the company said it has held "intense and constructive exchanges" with the German government on the financial help. "In our view these discussions could be concluded in the near future," it said. "Support from the German state constitutes an essential step towards ensuring our future," it said, as Europe begins to ease measures taken to stem the spread of COVID-19. Like airlines worldwide, Lufthansa and its subsidiaries that include Swiss and Austrian Airlines have been essentially grounded and face an uncertain future once their operations are fully up and running again. In April, chief executive Carsten Spohr said the group was carrying fewer than 3,000 passengers daily compared with a pre-pandemic average of around 350,000 a day. "We are losing about a million euros in liquidity reserves per hour. Day and night. Week by week," Spohr said. According to Der Spiegel, the German government is holding out for a stake of just over 25% in the group in exchange for financial aid, which would put Berlin in a position to block strategic decisions by Lufthansa management. No blank checks The Social Democratic Party (SPD), which includes Finance Minister Olaf Scholz among its ranks, has warned Lufthansa it cannot expect a blank check from Berlin. "The state is not some idiot that will just hand over money and have no say after that," SPD leader Carsten Schneider told the daily Die Welt in comments to appear on Monday, May 4. In particular, he ruled out dividend payments to Lufthansa shareholders if the company received state aid. But Lufthansa directors have warned that without such aid they could declare insolvency to benefit from a grace period during which they could try to sort out the group's finances. That might mean job cuts, especially given that Spohr has said there are now 10,000 too many workers given the state of Lufthansa's operations. Around 700 of its roughly 760 aircraft are currently parked at airports and more than 80,000 of its 130,000 staff are on part-time work schemes. The director's letter to staff nonetheless voiced optimism, saying, "We are still convinced, in light of the talks with Berlin, that we will not have to go with alternative options." Swiss authorities have already agreed to guarantee loans of up to 1.2 billion euros to Lufthansa, while Austrian Airlines has asked the government in Vienna for 767 million euros in state aid. The group's supervisory board is to meet on Monday, and hold an online general assembly a day later. – Rappler.com
3 May 15:55 • Rappler • https://www.rappler.com/business/259805-lufthansa-hopeful-deal-german-state-aid-coronavirusRating: 1.64
Lufthansa board hopeful of securing government bailout soon
BERLIN, May 3 — Lufthansa is hopeful its bailout talks with the German government can be concluded soon, the airline’s board told staff in a letter seen by Reuters, adding that it is also considering alternatives such as creditor protection. Travel bans have forced the German group to ground 700 of its aircraft, leading to a 99 per cent drop in passenger numbers and causing the group, which includes Swiss and Austrian Airlines, to lose about €1 million (RM4.7 million) in liquidity reserves per hour. “We estimate that these talks can lead to a conclusion soon,” Chief Executive Carsten Spohr and board members wrote in the letter, adding that they are also checking alternative options but do not expect to need them. “We remain nevertheless convinced that we will not have to fall back on alternatives given the talks with Berlin.” Lufthansa is negotiating a €10 billion bailout that would result in the government taking a 25.1 per cent stake in the airline, weekly paper Der Spiegel said on Friday. Of that, €5.5 billion would be in the form of non-voting capital, for which the government wants a coupon of 9 per cent, the paper said. A further €3.5 billion in loans would be provided by state bank Kreditanstalt für Wiederaufbau (KFW), the paper said, adding that Belgium, Austria and Switzerland might contribute towards the bailout. Reuters reported on Wednesday that Lufthansa is negotiating a €9 billion bailout, with loans from Austria, Germany and Switzerland, citing a source close to the matter. The slump in travel due to the coronavirus pandemic has led to a sweeping restructuring of the airline industry, with other carriers also seeking state bailouts. Finance Minister Olaf Scholz told the Passauer Neue Presse newspaper at the weekend that “taxpayers can count on us not to conduct these talks naively.” — Reuters
3 May 15:38 • Malaymail • https://www.malaymail.com/news/money/2020/05/03/lufthansa-board-hopeful-of-securing-government-bailout-soon/1862705Rating: 1.42
Lufthansa board hopeful of securing government bailout soon
BERLIN (Reuters) - Lufthansa is hopeful its bailout talks with the German government can be concluded soon, the airline's board told staff in a letter seen by Reuters, adding that it is also considering alternatives such as creditor protection. Travel bans have forced the German group to ground 700 of its aircraft, leading to a 99% drop in passenger numbers and causing the group, which includes Swiss and Austrian Airlines, to lose about one million euros ($1.1 million) in liquidity reserves per hour. "We estimate that these talks can lead to a conclusion soon," Chief Executive Carsten Spohr and board members wrote in the letter, adding that they are also checking alternative options but do not expect to need them. "We remain nevertheless convinced that we will not have to fall back on alternatives given the talks with Berlin." Lufthansa is negotiating a 10 billion euro bailout that would result in the government taking a 25.1% stake in the airline, weekly paper Der Spiegel said on Friday. Of that, 5.5 billion euros would be in the form of non-voting capital, for which the government wants a coupon of 9%, the paper said. A further 3.5 billion euros in loans would be provided by state bank Kreditanstalt für Wiederaufbau (KFW), the paper said, adding that Belgium, Austria and Switzerland might contribute towards the bailout. Reuters reported on Wednesday that Lufthansa is negotiating a 9 billion euro bailout, with loans from Austria, Germany and Switzerland, citing a source close to the matter. The slump in travel due to the coronavirus pandemic has led to a sweeping restructuring of the airline industry, with other carriers also seeking state bailouts. Finance Minister Olaf Scholz told the Passauer Neue Presse newspaper at the weekend that "taxpayers can count on us not to conduct these talks naively." ($1 = 0.9105 euros)
3 May 00:00 • Investing.com • https://www.investing.com/news/stock-market-news/lufthansa-board-hopeful-of-securing-government-bailout-soon-2159014Rating: 0.30
This chart shows just how many jobs can be done from home in other countries
3 May 14:33
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This chart shows just how many jobs can be done from home in other countries
A lot of people find themselves working from home during the novel coronavirus. However, not every job can be done remotely, and the number further varies by country. A recent report by Jonathan I. Dingel and Brent Neiman from The University of Chicago analyzed the share of jobs that can be done at home in different countries. This builds off their previous research of which US cities have the highest share of occupations that can be done at home. To find the percentage of jobs that can be done at home around the world, Dingel and Neiman mapped the Standard Occupational Classification system from the US Bureau of Labor Statistics to the International Labour Organization's International Standard Classification of Occupations. The researchers found these two codes didn't always map to one unique code, so they adjusted by a weighted average for each country. LoadingSomething is loading. It is important to note their classification of telework jobs was based on their US classification from the Occupational Information Network (O*NET). The researchers wrote "the nature of an occupation likely varies across economies with different income levels." Their results show that the lower a country's GDP per capita, the lower the share of jobs that can be done at home. The researchers note in the paper this means "developing economies and emerging markets may face an even greater challenge in continuing to work during periods of stringent social distancing." The following chart shows the share of jobs that can be done in 12 countries with the highest GDP per capita. Of these countries, Luxembourg had the highest share of jobs that can potentially be done at home at 53.4%. That is 11.8 percentage points higher than the share of jobs that can be done at home in the US, 41.6%. Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story. Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.
3 May 14:33 • Business Insider • https://www.businessinsider.com/how-many-jobs-can-be-done-from-home-other-countries-2020-5Rating: 4.40
This chart shows just how many jobs can be done from home in other countries
A lot of people find themselves working from home during the novel coronavirus. However, not every job can be done remotely, and the number further varies by country. A recent report by Jonathan I. Dingel and Brent Neiman from The University of Chicago analyzed the share of jobs that can be done at home in different countries. This builds off their previous research of which US cities have the highest share of occupations that can be done at home. To find the percentage of jobs that can be done at home around the world, Dingel and Neiman mapped the Standard Occupational Classification system from the US Bureau of Labor Statistics to the International Labour Organization’s International Standard Classification of Occupations. The researchers found these two codes didn’t always map to one unique code, so they adjusted by a weighted average for each country. It is important to note their classification of telework jobs was based on their US classification from the Occupational Information Network (O*NET). The researchers wrote “the nature of an occupation likely varies across economies with different income levels.” Their results show that the lower a country’s GDP per capita, the lower the share of jobs that can be done at home. The researchers note in the paper this means “developing economies and emerging markets may face an even greater challenge in continuing to work during periods of stringent social distancing.” The following chart shows the share of jobs that can be done in 12 countries with the highest GDP per capita. Of these countries, Luxembourg had the highest share of jobs that can potentially be done at home at 53.4%. That is 11.8 percentage points higher than the share of jobs that can be done at home in the US, 41.6%.
3 May 14:33 • Business Insider Malaysia • https://www.businessinsider.my/how-many-jobs-can-be-done-from-home-other-countries-2020-5Rating: 0.30
This chart shows just how many jobs can be done from home in other countries
A lot of people find themselves working from home during the novel coronavirus. However, not every job can be done remotely, and the number further varies by country. A recent report by Jonathan I. Dingel and Brent Neiman from The University of Chicago analysed the share of jobs that can be done at home in different countries. This builds off their previous research of which US cities have the highest share of occupations that can be done at home. To find the percentage of jobs that can be done at home around the world, Dingel and Neiman mapped the Standard Occupational Classification system from the US Bureau of Labour Statistics to the International Labour Organisation’s International Standard Classification of Occupations. The researchers found these two codes didn’t always map to one unique code, so they adjusted by a weighted average for each country. It is important to note their classification of telework jobs was based on their US classification from the Occupational Information Network (O*NET). The researchers wrote “the nature of an occupation likely varies across economies with different income levels.” Their results show that the lower a country’s GDP per capita, the lower the share of jobs that can be done at home. The researchers note in the paper this means “developing economies and emerging markets may face an even greater challenge in continuing to work during periods of stringent social distancing.” The following chart shows the share of jobs that can be done in 12 countries with the highest GDP per capita. Of these countries, Luxembourg had the highest share of jobs that can potentially be done at home at 53.4%. That is 11.8 percentage points higher than the share of jobs that can be done at home in the US, 41.6%.
3 May 14:33 • Business Insider Australia • https://www.businessinsider.com.au/how-many-jobs-can-be-done-from-home-other-countries-2020-5Rating: 0.30
This chart shows just how many jobs can be done from home in other countries, Business Insider - Business Insider Singapore
A lot of people find themselves working from home during the novel coronavirus. However, not every job can be done remotely, and the number further varies by country. A recent report by Jonathan I. Dingel and Brent Neiman from The University of Chicago analyzed the share of jobs that can be done at home in different countries. This builds off their previous research of which US cities have the highest share of occupations that can be done at home. To find the percentage of jobs that can be done at home around the world, Dingel and Neiman mapped the Standard Occupational Classification system from the US Bureau of Labor Statistics to the International Labour Organization’s International Standard Classification of Occupations. The researchers found these two codes didn’t always map to one unique code, so they adjusted by a weighted average for each country. It is important to note their classification of telework jobs was based on their US classification from the Occupational Information Network (O*NET). The researchers wrote “the nature of an occupation likely varies across economies with different income levels.” Their results show that the lower a country’s GDP per capita, the lower the share of jobs that can be done at home. The researchers note in the paper this means “developing economies and emerging markets may face an even greater challenge in continuing to work during periods of stringent social distancing.” The following chart shows the share of jobs that can be done in 12 countries with the highest GDP per capita. Of these countries, Luxembourg had the highest share of jobs that can potentially be done at home at 53.4%. That is 11.8 percentage points higher than the share of jobs that can be done at home in the US, 41.6%.
3 May 14:33 • www.businessinsider.sg • https://www.businessinsider.sg/how-many-jobs-can-be-done-from-home-other-countries-2020-5Rating: 0.30
Consumers' focus shifts to packaged, high-value food items amid coronavirus lockdown 2.0
3 May 16:42
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14 articles
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Consumers' focus shifts to packaged, high-value food items amid coronavirus lockdown 2.0
The second phase of the coronavirus lockdown saw a considerable shift in buying patterns of consumers from basic necessities to high-value items like snacks, processed food, packaged meat and frozen desserts, retailers said. Retailers such as Future Group, Metro and Lots Wholesale said they witnessed a spike in demand for packaged food products like biscuits and noodles, resulting in an increase in the average purchase value per customer. People also sought critical non-food products such as kitchen appliances, electrical goods, stationery and storage containers at Metro. "Yes, the second phase witnessed a growing demand for processed food, packaged meat and frozen desserts. People are working from home. Hence, snack items, biscuits and hot beverages are also in demand amongst customers," Metro Cash & Carry India MD and CEO Arvind Mediratta told PTI. As the restrictions started easing, customers saw they could get easy access to their daily essentials and so panic buying stopped, he added. "Initially, customers were unsure of what the trickle down effect of the lockdown would be. Consumers started becoming vigilant and began hoarding essential commodities. There was a sense of panic. "But gradually, everyone was made aware that all essential products will continue to be available and people will not face a shortage. Currently, there is less panic buying and more need base buying," he said. As most people are working from home, Metro is witnessing enquiries from customers for IT products such as computers, mouse, keyboard, chargers and other accessories. Future Group President Food & FMCG Kamaldeep Singh said in the first phase people were buying basic necessary items such as atta, pulses and sugar, but in the second phase they focussed more on food items like biscuits, noodles and pasta. "The definition of basic necessity has changed in couple of weeks from basic foods to snacking and munching items," he said. According to Singh, people are not willing to travel long distances, hence footfall of large format stores is down but sales of convenience stores like EasyDay have picked up considerably. Though people are not hoarding goods, they have cravings for snacks and other items as they are staying at home, he said. "In the second stage, people are buying products which can be cooked at home like pasta, noodles etc. Sales of frozen non-veg and home snacking and processed food have gone up to a large extent, such as French fries, baked items and ready-to-cook meals," he said. As restaurants are closed, people are cooking many dishes at home, Singh said, adding "the trend in the second phase has shifted from pure basic essentials to instant food and snacking items." Lots Wholesale Solutions Managing Director Tanit Chearavanont said the demand in the second phase is majorly coming from both the "food and non-food FMCG categories" as compared to commodities which had seen a spike in the initial phase of lockdown. "Overall, the average purchase value per customer has gone up," he said. "There is a marked difference between consumer behaviour between the first phase and the second phase of lockdown. The first phase of lockdown was fuelled by panic buy resulting in bulk purchase in categories like commodities and FMCG food products. Panic buying continued for an initial 7-10 days of lockdown, slowly giving way to consumer's confidence in the availability of essential goods," he said. Also, with the summer season kicking in, another category seeing major demand is insecticides, Chearavanont added. According to value fashion and lifestyle products retailer V-Mart Retail, now consumers are "trusting" their retailers and have faith that goods would remain available. "Though, we are not operating many stores but have observed a shift in the consumer buying pattern in the second phase of lockdown. Earlier, we had noticed panic buying by the customer, purchasing whatever they can do but now people are assured about availability. That trust has come and now people are purchasing as per their requirement," said V-Mart Retail Chairman and MD Lalit Agarwal. Meanwhile, several retailers have reported an increase in sales of their private labels, which filled the gaps as supply lines from other manufacturers were disrupted. Asked whether the trend is likely to continue, Singh said consumers in the lockdown period are brand agnostics. "Right now the consumer is not very brand conscious, he simply wants products," he said. According to Mediratta, due to the disruption in the supply chain, there were several FMCG companies that were not able to deliver their goods as their production was interrupted, leading to a shortage of branded goods such as instant noodles. "However, customers were not bothered even if favorite brands were not available and were happy to transition to a private label brand. This gave a lot of boost to private labels whose stocks were available locally and so their supply remained steady without hindrances," he said. The government first imposed a 21-day nationwide lockdown on March 24 to curb the spread of coronavirus infections. On April 14, the lockdown was extended till May 3. The government has further extended the lockdown till May 17, but with considerable relaxations based on zones.
3 May 16:42 • Deccan Herald • https://www.deccanherald.com/business/business-news/consumers-focus-shifts-to-packaged-high-value-food-items-amid-coronavirus-lockdown-20-833032.htmlRating: 2.25
Morrisons begins selling flour from in-store bakery following nationwide shortage
From banana bread to gooey brownies and sourdough, many of us have turned our hands to home baking as a way to fill our time while in lockdown. But, as most avid bakers will have come to learn, getting hold of the basic ingredients needed to make these tasty treats is not always easy. Flour – a key baking ingredient – has been flying off the shelves in recent weeks, with rising demand leaving many shops and supermarkets struggling to keep up with demand. As the flour industry attempts to fulfil orders for smaller bags, Morrisons has found a way to ensure its customers do not have to go without. This week, the supermarket has responded by decanting its own bakery flour into bags to sell in store daily. The small bags are being made up from the larger sacks used by the in-store bakeries, with customers paying 60p for a 1kg bag of plain, self-raising or white and wholemeal bread flour. It is also selling larger 16kg bags which cost £9, and 50g bag of bakery yeast for 20p. So far, Morrisons has sold more than 370 tonnes of flour to Britain’s bakers and more than 19,000 bags of yeast. Andy Clarke, bakery buying manager, at Morrisons said: “Listening to customers, we know baking is important right now to keep the family busy and entertain kids during the lockdown. “It felt like a no brainer to give customers the ingredients they need to bake at home during this very difficult time." Customers have been praising the supermarket on social media for making their shopping easier. “I went to the shops today and got flour and eggs. I felt like I'd won the lottery. Thanks to the @Morrisons staff for decanting flour from their sacks into paper bags. It's the little things that cheer you up,” one person wrote on Twitter. Another added: “There's enough to go around but not in small bags. Luckily, clever #Morrisons has come up with a solution. Hope other supermarkets follow.” Earlier this month, the National Association of British and Irish Millers (Nabim) said the industry was “working round the clock” to double production but was still struggling to meet demand. One flour mill in Oxfordshire said it had started running a 24-hour operation for the first time in its 25-year history to help get flour to shops. “It’s unprecedented,” Emily Munsey, who runs Wessex Mill with her father, told the BBC. “We’ve increased production about four-fold but we’re nowhere close to meeting the demand we’ve seen.” Alex Waugh, director general of Nabim, said the problem was not being able to mill enough flour, not that the industry lacked capacity to pack the flour into smaller bags for retailers.
3 May 15:14 • The Independent • https://www.independent.co.uk/life-style/food-and-drink/morrisons-buy-bags-flour-bread-baking-shortage-yeast-lockdown-a9496506.htmlRating: 2.71
Kroger, Costco to limit meat purchases in some states
(CNN) - The slowdown at meat processing plants from the coronavirus pandemic has led to a new wave of panic-shopping. This has led some grocery stores to impose limits on meat purchases. Kroger said it is limiting ground beef and pork purchases in some of its stores. Costco is limiting purchase of fresh beef, pork and poultry products to a total of three items per member. Other large grocers said they expect to be periodically out of stock on different types of cuts. In recent weeks, top meat suppliers have announced temporary closures as their workers fall ill with COVID-19. President Trump signed an executive order to compel meat plants to stay open during the crisis.
3 May 23:48 • WVLT • https://www.wvlt.tv/content/news/Kroger-to-limit-beef-pork-purchases-in-some-states-570162011.htmlRating: 0.30
New apps emerge amid COVID-19 to tackle gripes with popular delivery services
When the weekend rolls around, Torontonians won’t have to miss the White Lily Diner’s thick-cut bacon, organic corn grits and toast smeared in rhubarb hibiscus jam just because the country has plunged into a pandemic. The east-end diner is selling its brunch staples and offering to drop them at customers’ doors, but the process won’t involve any of the familiar delivery apps whose couriers have become a fixture on busy streets in recent years. Instead of relying on Uber Eats, SkipTheDishes or DoorDash, White Lily is using a new entrant to the market: Tock To Go. “The biggest draw off the bat was probably just the fact that they’re so much less expensive,” said White Lily co-owner Ashley Lloyd, who laid off her entire staff when she closed the restaurant to dine-in meals amid COVID-19. “Restaurant margins are slim…I can understand people turning to (their delivery competitors), but honestly I don’t know how they do it.” Tock To Go is part of a new wave of food delivery companies hitting the Canadian market, hoping to attract vendors with features like lower commissions and fill the hole Foodora will leave behind when it shutters its Canadian operations in mid-May. READ MORE: Local restaurants feel squeezed by delivery apps’ commission fees The services — Ottawa’s Love Local Delivery, Vancouver’s From To, Toronto’s volunteer-run iRover and new delivery features on Montreal’s Eva — have been created to help out in a tough moment, when restaurants are barely scraping by — even as demand for food delivery surges. These services want to do things differently from the household names, so they have eliminated commission fees or offered rates well below the 10- to 30-per cent charged by Uber Eats, SkipTheDishes, DoorDash and others. Tock To Go, a Chicago-based service from restaurateur Nick Kokonas that evolved from his Tock reservation system, only takes a 3 per cent commission from restaurants in Vancouver and Toronto. Tock first appeared in the cities in 2018, but didn’t launch Tock to Go until the pandemic started. Tock to Go doesn’t have couriers to deliver meals. Instead, it asks customers to pre-order food, helping restaurants arrange their own delivery. “Ordering apps take up to 20 to 30 (per cent), which simply is not sustainable for restaurants,” Tock’s director of marketing Kyle Welter said in an email. “Tock allows each restaurant to specify the number of orders for any set time range, so the kitchen doesn’t get overwhelmed and they can responsibly manage the flow of customers.” Over in B.C., Brandon Grossutti from Gastown restaurant Pidgin will launch From To, a delivery service with a handful of Vancouver eateries, in May. In the weeks before restaurants in Canada closed to stop the spread of COVID-19, Grossutti realized Pidgin would need a takeout option, so he signed up with Uber Eats and Burnaby-based Fantuan Delivery. “Then the reality of it hit. We did fairly well gross wise, but you see the checks coming in and…the first week was a lot of money out the door in commissions,” said Grossutti, who had to lay off workers “It’s a weirdly parasitic relationship where you have a parasite basically eating its hosts until it dies and it’s not a sustainable relationship.” Grossutti decided to put his software industry background to work. He made From To, which gives restaurants the ability to decide if they want to pay for, split with or pass on customers’ delivery costs. From To currently takes no commission. “We had talked at certain points about taking like 5 per cent, which would be much less than what’s out there, but we realized that during this time we need to make this sustainable because people are already losing money,” Grossutti said. The lower commissions don’t seem to have bothered rivals. “We welcome new competitors to the market, as it raises awareness of the industry and promotes even more traffic to restaurants to stimulate growth,” Winnipeg-bred SkipTheDishes said in an email to The Canadian Press. “It is natural for competitors to see value in this market and we’re confident in Skip’s position as Canada’s homegrown food delivery company.” READ MORE: B.C. to allow restaurants to hire laid-off servers to deliver alcohol SkipTheDishes is offering a 10.5 per cent commission deal to restaurants wanting to do their own deliveries but still use the platform and is expediting payments to all businesses using its services. Meanwhile, San Francisco-based Uber Eats is eliminating its fees on pickup orders and reducing its usual 30 per cent charges to 15 per cent for restaurants who choose to use their own delivery people. DoorDash, also headquartered in San Francisco, is waiving April commission fees for new, independent clients. Existing independent clients can have those fees waived on pickup orders, and 100,000 clients were added to DashPass — its subscription program which offers $0 delivery for consumers — for free. Harriet Clunie, the executive chef at European-style bistro Das Lokal, said that is not enough because the moves put the onus on restaurateurs to offset costs or hire their own delivery staff to take advantage of benefits. She banded together with other members of the Ottawa restaurant community to found Love Local Delivery, a service that launched in March and will courier food within 5 kilometres of restaurants for a flat $5 fee, or more for longer distances. There are no commission fees right now and the service focuses solely on independently-owned restaurants. While it might have to charge commission when it launches an app in the near future, Clunie said the service is committed to keeping that potential fee low. “It’s all people that are in the same boat and we’re trying to help everybody that’s struggling, restaurants or small businesses or drivers that are unemployed and just trying to make some money to feed the family,” she said. “It’s an approach that’s really trying to lift everybody up.” Tara Deschamps, The Canadian Press
3 May 16:15 • North Delta Reporter • https://www.northdeltareporter.com/news/new-apps-emerge-amid-covid-19-to-tackle-gripes-with-popular-delivery-services/Rating: 0.30
Kroger to limit beef, pork purchases in some states
(CNN) - The slowdown at meat processing plants from the coronavirus pandemic has led to a new wave of panic-shopping. This has led some grocery stores to impose limits on meat purchases. Kroger said it is limiting ground beef and pork purchases in some of its stores. Other large grocers said they expect to be periodically out of stock on different types of cuts. In recent weeks, top meat suppliers have announced temporary closures as their workers fall ill with COVID-19. President Trump signed an executive order to compel meat plants to stay open during the crisis. Copyright 2020 CNN. All rights reserved.
3 May 23:41 • Hawaii News Now • https://www.hawaiinewsnow.com/2020/05/03/kroger-limit-beef-pork-purchases-some-states/Rating: 0.30
New apps emerge amid COVID-19 to tackle gripes with popular delivery services
TORONTO -- When the weekend rolls around, Torontonians won't have to miss the White Lily Diner's thick-cut bacon, organic corn grits and toast smeared in rhubarb hibiscus jam just because the country has plunged into a pandemic. The east-end diner is selling its brunch staples and offering to drop them at customers' doors, but the process won't involve any of the familiar delivery apps whose couriers have become a fixture on busy streets in recent years. Instead of relying on Uber Eats, SkipTheDishes or DoorDash, White Lily is using a new entrant to the market: Tock To Go. "The biggest draw off the bat was probably just the fact that they're so much less expensive," said White Lily co-owner Ashley Lloyd, who laid off her entire staff when she closed the restaurant to dine-in meals amid COVID-19. "Restaurant margins are slim...I can understand people turning to (their delivery competitors), but honestly I don't know how they do it." Tock To Go is part of a new wave of food delivery companies hitting the Canadian market, hoping to attract vendors with features like lower commissions and fill the hole Foodora will leave behind when it shutters its Canadian operations in mid-May. The services -- Ottawa's Love Local Delivery, Vancouver's From To, Toronto's volunteer-run iRover and new delivery features on Montreal's Eva -- have been created to help out in a tough moment, when restaurants are barely scraping by -- even as demand for food delivery surges. These services want to do things differently from the household names, so they have eliminated commission fees or offered rates well below the 10- to 30-per cent charged by Uber Eats, SkipTheDishes, DoorDash and others. Tock To Go, a Chicago-based service from restaurateur Nick Kokonas that evolved from his Tock reservation system, only takes a 3 per cent commission from restaurants in Vancouver and Toronto. Tock first appeared in the cities in 2018, but didn't launch Tock to Go until the pandemic started. Tock to Go doesn't have couriers to deliver meals. Instead, it asks customers to pre-order food, helping restaurants arrange their own delivery. "Ordering apps take up to 20 to 30 (per cent), which simply is not sustainable for restaurants," Tock's director of marketing Kyle Welter said in an email. "Tock allows each restaurant to specify the number of orders for any set time range, so the kitchen doesn't get overwhelmed and they can responsibly manage the flow of customers." Over in B.C., Brandon Grossutti from Gastown restaurant Pidgin will launch From To, a delivery service with a handful of Vancouver eateries, in May. In the weeks before restaurants in Canada closed to stop the spread of COVID-19, Grossutti realized Pidgin would need a takeout option, so he signed up with Uber Eats and Burnaby-based Fantuan Delivery. "Then the reality of it hit. We did fairly well gross wise, but you see the checks coming in and...the first week was a lot of money out the door in commissions," said Grossutti, who had to lay off workers "It's a weirdly parasitic relationship where you have a parasite basically eating its hosts until it dies and it's not a sustainable relationship." Grossutti decided to put his software industry background to work. He made From To, which gives restaurants the ability to decide if they want to pay for, split with or pass on customers' delivery costs. From To currently takes no commission. "We had talked at certain points about taking like 5 per cent, which would be much less than what's out there, but we realized that during this time we need to make this sustainable because people are already losing money," Grossutti said. The lower commissions don't seem to have bothered rivals. "We welcome new competitors to the market, as it raises awareness of the industry and promotes even more traffic to restaurants to stimulate growth," Winnipeg-bred SkipTheDishes said in an email to The Canadian Press. "It is natural for competitors to see value in this market and we're confident in Skip's position as Canada's homegrown food delivery company." SkipTheDishes is offering a 10.5 per cent commission deal to restaurants wanting to do their own deliveries but still use the platform and is expediting payments to all businesses using its services. Meanwhile, San Francisco-based Uber Eats is eliminating its fees on pickup orders and reducing its usual 30 per cent charges to 15 per cent for restaurants who choose to use their own delivery people. DoorDash, also headquartered in San Francisco, is waiving April commission fees for new, independent clients. Existing independent clients can have those fees waived on pickup orders, and 100,000 clients were added to DashPass -- its subscription program which offers $0 delivery for consumers -- for free. Harriet Clunie, the executive chef at European-style bistro Das Lokal, said that is not enough because the moves put the onus on restaurateurs to offset costs or hire their own delivery staff to take advantage of benefits. She banded together with other members of the Ottawa restaurant community to found Love Local Delivery, a service that launched in March and will courier food within 5 kilometres of restaurants for a flat $5 fee, or more for longer distances. There are no commission fees right now and the service focuses solely on independently-owned restaurants. While it might have to charge commission when it launches an app in the near future, Clunie said the service is committed to keeping that potential fee low. "It's all people that are in the same boat and we're trying to help everybody that's struggling, restaurants or small businesses or drivers that are unemployed and just trying to make some money to feed the family," she said. "It's an approach that's really trying to lift everybody up." This report by The Canadian Press was first published May 3, 2020.
3 May 14:35 • CTVNews • https://www.ctvnews.ca/business/new-apps-emerge-amid-covid-19-to-tackle-gripes-with-popular-delivery-services-1.4922739Rating: 2.87
Beer and wine from Morrisons now being delivered to homes by Deliveroo in under 30minutes
Morrisons customers will be able to get beer and wine delivered to their doorsteps from this weekend while pubs and bars across the country remain closed. Red and white wine, beer and larger will be available to online shoppers at the same price as Morrisons supermarkets on the Deliveroo app. It comes after Morrisons and Deliveroo announced a partnership to help customers order essential household items to their door in as little as under 30 minutes. The Morrisons range on Deliveroo has now expanded from 75 to 110 items and include more summer foods such as fish fillets, British beef burgers, fruits and salads. A wider number of household essentials, such as washing detergent, is also be included. Joseph Sutton, online director at Morrisons, said: “When we listen to customers during the lockdown they would like us to supply more treats for the emerging summer and the longer days. Customise your news feed and get Bristol news personalised to you with our free app. Click here to find out more, or visit the Apple App Store or Google Play to download it for Android. BristolLive is running a unique nationwide survey aimed at capturing British life under lockdown. Help us record these historic times and tell us how the pandemic has affected your life - from food shopping to finances, home schooling to mental health. It only takes a few minutes and you'll be playing a part in how we look back on these times once the pandemic is over. Thank you. Click here to take the Great Big Lockdown Survey "We are continuing to play our full part in feeding the nation and our partnership with Deliveroo is proving a popular way for customers to receive their food and drink.” Ajay Lakhwani, vice president of new business at Deliveroo, said: "We are pleased to play our role in making sure households have access to everything they need and want as they keep safe at home. "The expansion of the Morrisons range on Deliveroo is great news for our customers across the country, who can now enjoy an even wider selection of delicious food and drink, straight to their doorstep in under 30 minutes.” Customers can order on the Deliveroo app or website, as normal, from a selection of items that include meat and Quorn, fruit and household essentials.
3 May 13:22 • BristolLive • https://www.bristolpost.co.uk/news/bristol-news/deliveroo-morrisons-beer-wine-delivery-4100862Rating: 0.30
A bread & butter story: How kitchen items are reaching you through the lockdown
Baking powder to cornflakes, vegetables to chips, bread to eggs, milk to oil. The Indian Express follows the delivery chains running night and day across Mayur Vihar, East Delhi, which saw the Capital’s first coronavirus case, to see how items in your kitchen are reaching you through a lockdown Shampoo sales down, running out of Maggi At the ‘Home Needs Supermarket’ in Delhi’s Mayur Vihar Phase-1, Arunima, a government school teacher, has been browsing through shelves. She is looking for cocoa powder to bake a cake. “We have run out of cocoa powder,” Rashid, the cashier at the store, informs her, and offers the 34-year-old a bottle of Nutella instead. In the past two weeks, since a second lockdown was enforced across the country to check the spread of COVID-19, says owner Sumit Kumar, many of his customers have had to leave disappointed. “There has been a surge in demand for baking products such as vanilla essence, cocoa powder and baking soda, as well as ingredients for making pizzas. But we ran out of most of these items two weeks ago,” says Kumar. Established five years ago, the store’s stock of items such as Maggi and chips — also in high demand in lockdown — have dried up too. “We don’t have tissues and toilet paper either. We will run out of sanitary pads in a week,” says Kumar. “With salons shut though, the sale of razors and trimmers has picked up.” On March 2, a 45-year-old businessman in Mayur Vihar, East Delhi, became the Capital’s first COVID-19 case. Since then, there have been 201 cases in East Delhi, and 10 of its areas are containment zones — upsetting the area’s food supply network. Despite essential industries being allowed to continue operations under the lockdown, grocery stores such as Kumar’s, and several vendors linked to the supply chain, have been facing disruptions in procurement, distribution, and even demand. While the sale of non-perishable items such as wheat, rice, dal and sugar have increased by 20%, says Kumar, “they have become expensive for us to procure”. “Earlier, distributors gave us a 2% discount on grocery items, and we would pass on the benefits to customers. Now, there has been a 3% hike in prices. Fortunately, the sale of these products has increased, and people are buying in bulk. Price of cornflakes has increased by Rs 15, but there has been a surge in its demand too,” says Kumar. However, he says, the demand for otherwise fast-selling daily use products such as shampoo, face cream and deodorant has dropped, and the store has decided not to purchase new stock. “We get more customers now than earlier, but they are only buying a few items. Hand-sanitisers are our fastest-selling product,” he says. Nearly 300 customers visit his store now, compared to 100-200 earlier. Costs up, sales down for farmers, vegetable vendors Three kilometres away, in Mayur Vihar’s Yamuna Khadar area, a hailstorm has delayed farmer Chenpal Mandal’s trip to Ghazipur wholesale market. Around 1 am, when it ends, the 42-year-old finds that his coriander and spinach crops spread over five bighas have been destroyed. Left with just a quintal of cucumber now, he packs the produce in a sack, loads it on to a tempo that he has hired for Rs 500, and arrives at Ghazipur market around 2 am. Most of the vegetables and fruits supplied to grocers in Mayur Vihar are sourced from the 300 shops in Ghazipur market. While the vegetables come here from Rajasthan, Uttar Pradesh, Uttarakhand, and Haryana, a considerable portion is also supplied by farms in Delhi — the Yamuna floodplains, Burari and Najafgarh areas. The Ghazipur mandi opens for business at 10 pm, with trucks, tempos and wooden carts lining up outside through the day. When Mandal arrives at the market, about 50-60 farmers and buyers — without masks or gloves — are already queued up outside each shop, run by a ‘commission agent’. The agents have extra staff to ensure social distancing but their pleas go unheard. Mandal joins the queue, a gamcha around his face. To avoid overcrowding, the market has replicated the Azadpur mandi system, where three people tested positive for COVID-19 and a 57 year-old trader died. Only 1,000 vehicles are allowed inside at a time, between 6 am and 10 pm, with each batch getting four hours. The wholesalers are allowed between 10 pm and 6 am. It takes Mandal two hours to sell his cucumber. “Usually, we get Rs 1,000 for a quintal of cucumber. Today, I was paid only Rs 300. Now my family will have to wait another month, when we will harvest spinach,” says Mandal. Along with 15 members of his family, the 42-year-old cultivates onion, spinach, coriander, cucumber, brinjal, radish and cabbage on 16 bighas of land in the Yamuna floodplains. “Nuksaan ka koi hisab nahin (There is no limit to our losses),” he adds, about the lockdown. “I buy seeds from a seeds market in Laxmi Nagar (in East Delhi). This time, the cabbage seeds alone cost me Rs 60,000. To maintain a bigha, I have to spend Rs 10,000 over three months, and Rs 600 for operating a tractor. I already owe Rs 65,000 to commission agents and farmers,” he says. In shop after shop at the market, large piles of vegetables lie unsold. At one stall, with tomatoes from UP, Haryana and Bengaluru, the commission agent is selling a kilogram for Rs 5 — down from Rs 12 earlier. Another commission agent nearby is complaining about his unsold bottle gourd. Earlier, a 30 kg sack was sold for Rs 400. He is now willing to give it away for Rs 150. Read | Central Vista: Nod for new Parliament after nearly 1,300 objections “The farmers usually hand over their produce to commission agents, who sell it to the highest bidder. Now, if police do not allow people to visit the market, prices will drop. Vegetables start rotting and so are eventually sold at throwaway prices,” says Rajender Sharma, former chairman of the Agricultural Produce Market Committee, Azadpur. As Mandal begins the 6-km walk back home, with only Rs 300 in his pocket, he worries, “Police peet rahi hai, corona peet raha hai (Both police and coronavirus are hitting us). Who cares for farmers?” Read | Back-channel used to ‘urge’ Pak to release Kulbhushan Jadhav: Harish Salve At Bhagyawan Society in Mayur Vihar Phase-1, Inder Dev Sah is among the handful of vendors who has set up his cart on a Tuesday morning. “I have been selling vegetables to the 95 families in this apartment for five years. Today, I woke up at 5 am to go to Ghazipur mandi. It took me two hours to buy vegetables worth Rs 4,000. I crossed three police checkpoints,” he says. For the next three hours, he does not get any customers. Finally, around 11 am, a retired government officer stops by to purchase peas for Rs 15. Before the lockdown he would make Rs 400-500 every day. “Now it’s Rs 100-150.” Sah has been asked to leave the spot on several occasions by police. “But I return every day,” he smiles. “My son has a medical condition because of which he can’t walk. I have to work to pay for his medicines.” Problems in the breadline: manufacturer to godown, shop SOME distance from his shop, outside the ‘park wala market’ in Mayur Vihar Phase-1, Jitender Dwivedi is shouting into his phone: “Ten crates of brown bread, five crates of milk bread… need it now.” The 42-year-old delivers bread to shops in the area. “At 5 am, I take my tempo truck to a local godown in Trilokpuri and pick up 50 crates of bread. The godown owner pays me Rs 300 for a day’s work,” he says. Read | Four security personnel ‘trapped’ in house as J&K encounter on after 8 hours The bread godown, a kilometre away, operates from a 6×6 ft ground-floor room. Maina Devi (56), the owner, has been in the business for over 30 years, earning around Rs 1,200 a day selling 150 crates to shops in Trilokpuri and Mayur Vihar. “I have two rickshaws, a scooter and a tempo truck for delivery… While our bread supply has not been affected, I am concerned about my delivery boys. They go into areas which may have COVID-19 patients,” says Devi. She, in turn, sources her bread from a middleman, Mujahid, who buys it from a manufacturing unit in Samaypur Badli. “Earlier, I used to buy around 3,000 loaves. Now, since the demand is down, I buy 1,500 loaves, paying Rs 7 a loaf. At 8 every night I queue up outside the manufacturing unit and sometimes wait till 2 am. I then deliver the bread to around 15 small godowns in Trilokpuri area,” says Mujahid, 22. Read | Rush for seats as first train leaves from Surat, site of migrant unrest While both Devi and Mujahid deny any disruption in bread supply, Dwivedi warns of a shortage. Industry sources say that with most bread manufacturing units functioning with skeletal crews, and sourcing of raw material becoming tough, production is a challenge. “It takes eight hours to make a packet of bread. It’s a labour-intensive job which involves heating, cooling, moulding, and quality-testing. Furthermore, the raw materials comes from millers based in Haryana and UP, and ensuring drivers for transportation has been challenging,” says a official from Big Basket. Another official, who looks after bread supply at the online grocery portal, says the disruption is due to many factors. Read | Arvind Subramanian on Covid response: ‘We should be driven by need’ “For example, packaging. The plastic covers, which are manufactured in Bengaluru, are in short supply. We are even running low on the stock of ink used to print manufacturing dates. How can we send out bread packets without a manufacturing date?” he says. Hotels shut, poultries see egg sales plunge Between 6 am and 8 am, 70-year-old Ramjilal delivers 100 crates of eggs to grocery stores in Mayur Vihar Phase-1. “I can earn up to Rs 300 a day. In the past weeks, the supply of eggs has reduced considerably. I also keep getting batches of bad eggs. There are days I don’t make even Rs 100,” he says. Three km away, in New Ashok Nagar, Ramjilal’s supplier Sitaram lies on a bed with crates of eggs stacked around him. Opinion by P Chidambaram | Will never know how many people died, as no govt will admit to starvation deaths In a corner, a worker shifts rotten eggs to a crate, while a cashier gives salary to two drivers. These drivers bring Sitaram’s stock of eggs from Haryana’s Panipat every day, which may now be a problem due to the state sealing the border with Delhi. “I get 1,800 trays of eggs, each with 30 eggs. A tray costs Rs 102. My drivers leave for Panipat at 4.30 am and return around noon. The eggs are then supplied to areas in East Delhi,” says Sitaram. However, he too complains of rotten eggs, “sometimes more than 100 trays”. At the Panipat poultry farm, owner Raj Kumar is anxious about his debt of Rs 5 lakh. “I have been a poultry farmer for 40 years and own about one lakh chickens. I send out about 80,000 eggs daily. Now I am getting Re 1 for an egg, from Rs 4 earlier… No wholesaler comes. The hotels are shut and the demand is very low,” says Raj Kumar. Surinder Bhutani, general secretary of the Central Haryana Poultry Farmers’ Association, says transportation hurdles have hit the industry. “There are 2,000 poultry farms in Haryana. Our main customers are in South India. It has become difficult to transport eggs. Even if we get the eggs to the street vendors, their business is shut. In the last one year, the cost of chicken feed has also increased. Then, there is the cost of medicines for them, labour, trays. All poultry farmers have sustained heavy losses.” Mother Dairy at helm, milk flows smoothly Apart from the grocery stores that stock milk, most residents of Mayur Vihar depend on the neighbourhood’s 22 Mother Dairy outlets. At one such outlet, Anmol, 27, is making a list of the inventory. Her father has been running the milk booth since 2005. It is 12.30 pm, and the outlet has run out of its high-selling double-toned milk. “The fresh batch will come only in the evening,” she says, adding that while they had never seen anything like the lockdown, “the supply of milk has remained steady”. Read | Daily tests up from 4,300 to 75,000 since April 1 This is a fact attested to by most stores and milk booths, unlike in the case of other essential grocery items. “In the early days of the lockdown, there were some issues, but they were sorted out on a daily basis. One main concern was of drivers going hungry while covering longer routes. We have now ensured adequate ration on their journeys,” said a Mother Dairy spokesperson. The milk at Anmol’s booth is procured from a processing plant in the Patparganj industrial area. The plant gets its supply from 10 states, including Uttar Pradesh, Punjab, Haryana, Rajasthan, Maharashtra and Andhra Pradesh. “The milk is procured through a network of pooling points in villages, where strict quality control is maintained, right from the milking of animals to the processing plants. The milk collected is chilled to below 4 degrees Celsius in our bulk coolers/milk chilling centres to ensure good quality of raw milk during transportation to Delhi,” the spokesperson added. Read | Finding doctors to certify them fit, obtaining clearances test migrants’ patience When it arrives in Delhi, the raw milk undergoes a series of tests at various stages of processing. As per Mother Dairy records, 50-55,000 litres of milk is delivered to the 22 Mother Dairy booths and nine milk distributors in Mayur Vihar every day. Trucks carrying token milk and pouch milk make 24 trips to the neighbourhood every day, and each truck carries between 1,500 and 8,000 litres of milk. Milk and cheese products at Sumit Kumar’s grocery store are sourced from a distributor based in Patparganj. In Mayur Vihar, about 90 people, including booth operators, distributors, salesmen and drivers are part of the Mother Dairy supply chain. At grocery store, now a daily trip to stock up on supplies Back at the Home Needs Supermarket, Sumit Kumar and his cashier Rashid are waiting for the day’s supply of cold drinks and pulses. Earlier, explains Kumar, distributors would take their order over the phone and deliver the stock to the store. But since the lockdown, with the supply chain disrupted, the burden of transportation has fallen on them. Amit Kumar, a distributor based in Patparganj, supplies to Kumar’s store Maggi, ketchup, cheese and milk products for infants, procuring the stock from wholesalers in Ludhiana, Uttarakhand and Uttar Pradesh. “There has been a 50% fall in my stock procurement. Many of my orders from other states have not arrived. Some of the trucks were turned away by police, while some orders could not be delivered due to staff shortage. Last week, I shut down my warehouse following an order by the district magistrate. I was unable to ensure social distancing among my staff. We are trying to deal with these issues to kickstart the supply again,” says Amit Kumar. So, for now, cashier Rashid heads out on his scooter to distributor godowns in Kondli to get items such as cocoa powder, Maggi, chips, soft drinks and toiletries for the shop, but most of them, he says, have run out of supplies. “I have to go every day, whereas earlier, the stocks sent by distributors would last over 15 days,” he adds. What has also changed in the lockdown, says Kumar, is that distributors have stopped giving goods on credit. “Earlier, I would pay them after the products were sold. Distributors have even stopped accepting cheques. I have to pay them in cash. This has also driven up prices,” he says. To avoid a burnout, Kumar recently hired a rickshaw-puller to deliver the supplies in the afternoon. Around 4 pm, the rickshaw-puller arrives, bringing with him 50 bottles of cold drinks and two sacks of dal. Paid Rs 30 for the delivery, he requests a helper at the store for an additional Rs 10. “Nahin. Abhi naukri hai, isi mein khush raho (No. You should be happy that you at least have a job),” the helper shoots back, going back into the store.
3 May 09:45 • The Indian Express • https://indianexpress.com/article/cities/delhi/delhi-lockdown-essential-items-bread-butter-6390896/Rating: 0.30
The fast-food item people miss the most in lockdown might surprise you
With the UK on lockdown and the majority of fast-food chains closed, many of us are dreaming of our favourite fixes from KFC, McDonald's, Greggs and more. To help, many restaurants have been releasing their secret recipes and cooking tutorials so families can recreate their meals at home. McDonald's has released its McMuffin and Hash Brown recipes, while Greggs has released its Steak Bake, Chicken Bake and Sausage, Bean and Cheese Melt tutorials. Even supermarkets are getting in on it, Iceland is selling KFC fakeaways and Aldi is helping fans recreate fast-food favourites using affordable ingredients. New data from Breville has revealed the menu items from the above fast-food chains we miss the most, and the answer might surprise you. Despite KFC offering huge burgers, delicious gravy sides and more, it's the humble popcorn chicken from the branch people miss the most. According to Google statistics, the searches for KFC Popcorn Chicken soared in March as customers attempted to recreate it at home. Next was the McDonald's Big Mac, followed by the fast-food chain's McFlurry. The top ten foods the nation has been trying to recreate at home is below. To help foodies out, Breville has collated a selection of online recipes from bloggers and foodie sites and provided instruction and ingredients on how to make these at home. Go to their website to find out more.
3 May 07:00 • Wales Online • https://www.walesonline.co.uk/whats-on/food-drink-news/fast-food-item-people-miss-18185174Rating: 0.62
Lockdown 2.0: Consumers' focus shifts to packaged, high-value food items
The second phase of the coronavirus lockdown saw a considerable shift in buying patterns of consumers from basic necessities to high-value items like snacks, processed food, packaged meat and frozen desserts, retailers said. Retailers such as Future Group, Metro and Lots Wholesale said they witnessed a spike in demand for packaged food products like biscuits and noodles, resulting in an increase in the average purchase value per customer. People also sought critical non-food products such as kitchen appliances, electrical goods, stationery and storage containers at Metro. "Yes, the second phase witnessed a growing demand for processed food, packaged meat and frozen desserts. People are working from home. Hence, snack items, biscuits and hot beverages are also in demand amongst customers," Metro Cash & Carry India MD and CEO Arvind Mediratta said. As the restrictions started easing, customers saw they could get easy access to their daily essentials and so panic buying stopped, he added. "Initially, customers were unsure of what the trickle-down effect of the lockdown would be. Consumers started becoming vigilant and began hoarding essential commodities. There was a sense of panic. "But gradually, everyone was made aware that all essential products will continue to be available and people will not face a shortage. Currently, there is less panic buying and more need-based buying," he said. As most people are working from home, Metro is witnessing enquiries from customers for IT products such as computers, mouse, keyboard, chargers and other accessories. Future Group President Food & FMCG Kamaldeep Singh said in the first phase people were buying basic necessary items such as atta, pulses and sugar, but in the second phase, they focussed more on food items like biscuits, noodles and pasta. "The definition of basic necessity has changed in a couple of weeks from basic foods to snacking and munching items," he said. According to Singh, people are not willing to travel long distances, hence footfall of large-format stores is down but sales of convenience stores like EasyDay have picked up considerably. Though people are not hoarding goods, they have cravings for snacks and other items as they are staying at home, he said. "In the second stage, people are buying products which can be cooked at home like pasta, noodles etc. Sales of frozen non-veg and home snacking and processed food have gone up to a large extent, such as French fries, baked items and ready-to-cook meals," he said. As restaurants are closed, people are cooking many dishes at home, Singh said, adding "the trend in the second phase has shifted from pure basic essentials to instant food and snacking items." Lots Wholesale Solutions Managing Director Tanit Chearavanont said the demand in the second phase is majorly coming from both the "food and non-food FMCG categories" as compared to commodities which had seen a spike in the initial phase of lockdown. "Overall, the average purchase value per customer has gone up," he said. "There is a marked difference between consumer behaviour between the first phase and the second phase of lockdown. The first phase of lockdown was fuelled by panic buy resulting in bulk purchase in categories like commodities and FMCG food products. Panic buying continued for an initial 7-10 days of lockdown, slowly giving way to consumer's confidence in the availability of essential goods," he said. Also, with the summer season kicking in, another category seeing major demand is insecticides, Chearavanont added. According to value fashion and lifestyle products retailer V-Mart Retail, now consumers are "trusting" their retailers and have faith that goods would remain available. "Though, we are not operating many stores but have observed a shift in the consumer buying pattern in the second phase of lockdown. Earlier, we had noticed panic buying by the customer, purchasing whatever they can do but now people are assured about availability. That trust has come and now people are purchasing as per their requirement," said V-Mart Retail Chairman and MD Lalit Agarwal. Meanwhile, several retailers have reported an increase in sales of their private labels, which filled the gaps as supply lines from other manufacturers were disrupted. Asked whether the trend is likely to continue, Singh said consumers in the lockdown period are brand agnostics. "Right now the consumer is not very brand conscious, he simply wants products," he said. According to Mediratta, due to the disruption in the supply chain, there were several FMCG companies that were not able to deliver their goods as their production was interrupted, leading to a shortage of branded goods such as instant noodles. "However, customers were not bothered even if favourite brands were not available and were happy to transition to a private label brand. This gave a lot of boost to private labels whose stocks were available locally and so their supply remained steady without hindrances," he said. The government first imposed a 21-day nationwide lockdown on March 24 to curb the spread of coronavirus infections. On April 14, the lockdown was extended till May 3. The government has further extended the lockdown till May 17, but with considerable relaxations based on zones.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
3 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/business/lockdown-2-0-consumers-focus-shifts-to-packaged-high-value-food-items-5216851.htmlRating: 0.30
Cheese on toast is Britain's favourite snack ahead of cheese and onion crisps and a bacon sandwich
Stuck at home, we’re said to be snacking twice as much as before lockdown. Now we know which is the nation’s favourite go-to light bite – cheese on toast. It topped a list of 15 of the country’s top snacks. A poll of 2,000 Britons put it in first place, with 22 per cent of the overall vote. Cheese and onion crisps was second on 21 per cent – with a bacon sarnie in third spot with 19 per cent, the poll by cash savings service Raisin.co.uk revealed.
2 May 23:40 • Mail Online • https://www.dailymail.co.uk/news/article-8281377/Cheese-toast-Britains-favourite-snack-ahead-cheese-onion-crisps-bacon-sandwich.html?ns_mchannel=rss&ns_campaign=1490&ito=1490Rating: 4.11
Bronx takeout joint a ‘beacon’ in Chinese takeout ‘darkness’ amid coronavirus
As many Chinese takeout joints “pu pu” staying open during the coronavirus crisis, there is a place in the Bronx keeping the wok fires burning. China Wang, on West 225th Street in Spuyten Duyvil, is doing a brisk take-out/delivery business, attracting customers craving the security of comfort food, with an egg roll on the side. The restaurant is able to stay open — unlike many others of its kind — because the family business is still getting regular food supplies, has a small staff — and a ravenous fan base, manager Long Chen said. “A lot of customers have my cellphone number and they ask, “Are you guys open?” CC Henriquez, 49, trekked all the way from the Upper West Side to satisfy her craving for her “favorite, chicken and broccoli.” New Jersey resident Mike Rivera, 50, a cable TV engineer on his lunch break, ordered shrimp and broccoli, shrimp fried rice and General Tso’s chicken. China Wang regular Zachary Miller, 50, said the eatery is just like home — with a lot more options. “This is all homemade, and if you want something substituted, they’ll do it. They’ve always been part of the community. They’re willing to help us. We want to help them,” he said. China Wang has only a few staffers and their temperatures are taken daily, to check for fever. Workers wear masks and there is a protective plexiglass at the counter. “People are terrified (of the virus) and don’t want to go to work. A lot of stores around here are closed. Even grocery stores,” Chen said. The bleak situation is not unique to Chinese restaurants, but the sheer number of takeout joints being taken out by the virus is concerning. On a recent Monday, China Wang was the only takeout spot among 50 Gothamist called to pick up the phone. Prior to the outbreak, some 270 restaurants operated in Manhattan’s Chinatown. That number has dwindled to just 40, according to Wellington Chen, executive director of the Chinatown Partnership Local Development Corporation. China Wang is “a beacon in our darkness. Everybody wants to be home, and safe,” he said.
2 May 20:16 • New York Post • https://nypost.com/2020/05/02/china-wang-one-of-few-chinese-restaurants-open-in-nyc-amid-coronavirus/?utm_campaign=SocialFlow&utm_medium=SocialFlow&utm_source=NYPTwitterRating: 2.55
How to make a 'Meatball Marinara' at home with just four ingredients from Aldi
A few of our favourite fast food restaurants are already starting to reopen some of their stores around the country, including KFC and Greggs. While that is welcome news, others, like Subway, are yet to re-open. So we've had to resort to alternative methods in order to get our 'Footlong Fix' and that's how we came across this super-easy Meatball Marinana sub recipe. Here's what you're going to need, which is all available from Aldi : It'll cost you £3.11 in total, but will serve enough for two. It's worth remembering to stock up on any of those extras, such as salad or Jalapeños, that you would normally order on your sub too. Here's how to make it: Not bad for a make-at-home alternative, eh? The coronavirus outbreak has left many people across Greater Manchester struggling for access to food, basics and other support. Many of them are self-isolating, often in fragile health and alone. Public services have been working hard to find and help them, but we know they are over-stretched and working round the clock. So the Manchester Evening News and the Greater Manchester Mayor's Charity have launched Covaid-19 - a fundraiser aimed at supporting those who most need help, from elderly people with no support network to homeless families living in hotels. The money will be distributed via the mayor of Greater Manchester's charity. You can donate by visiting our JustGiving page here. If you fancy an even bigger challenge, why not try your hand at making this no-knead bread recipe or, even better, this giant Crunchie bar. Alternatively, here's the restaurants you can order delivery from if you want someone else to do the cooking for you. For more ideas and inspiration to pass the time and stay entertained during lockdown, visit our Stay In section.
2 May 18:27 • men • https://www.manchestereveningnews.co.uk/whats-on/food-drink-news/make-meatball-mariana-sub-recipe-18173070Rating: 1.15
One of Wirral's most popular restaurants is delivering
One of Wirral’s most popular restaurants is operating a delivery service during the coronavirus lockdown. The Refreshment Rooms in Rock Ferry introduced its new delivery service in March after the government ordered bars, restaurants and clubs across the UK to close to prevent the spread of coronavirus. With two separate menus, one with hot food and another for chilled to be heated up at a later time, the service has already proven popular with fans of The Refreshment Rooms. The menu features dishes such as Coca Cola Ribs, Steak and Ale Pie, Scouse, Lasagna and even Chocolate Fudge Cake. Roast dinners are available on Sundays. The chilled menu is smaller and includes many of the same dishes which can be stores in the refrigerator and heated up later. In a notice on The Refreshment Rooms website, it says: “With the strange times we find ourselves in we are introducing a delivery service with a limited choice from our menu with items we feel will travel well - wherever possible we will use recyclable or biodegradable packaging so it needn’t cost the earth. “We will offer hot food delivery together with some options delivered chilled for consumption within 48 hours (these items will need refrigeration). “This will be a pre-paid, no contact delivery service only to help minimise any health issues for you and our staff. Orders will be left on the step and the driver will ring you to confirm delivery.” The delivery service is available to anyone within a four mile radius in Wirral, though the radius for the chilled menu is wider, and runs between 12pm and 4pm, Monday - Saturday. Delivery on Sundays operate on a callback system only. To order, phone lines are open from 11.30am daily for same day delivery, or a day in advance for the chilled menu. If ordering on Sundays, private message The Refreshment Rooms on Facebook with a name and phone number, and a member of the team will contact you to take your order and arrange delivery. The Refreshment Rooms is also offering NHS and emergency service workers 10% off on food deliveries.
2 May 14:19 • Liverpool Echo • https://www.liverpoolecho.co.uk/whats-on/food-drink-news/one-wirrals-most-popular-restaurants-18172887Rating: 0.83
Fast-food chains like McDonald's and Taco Bell are betting traumatized Americans will flock to familiarity as restaurants reopen
3 May 13:00
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4 articles
Weight: 2.64
Importance: 2.65
Age penalty: 1.00
Best date: 3 May 13:00
Average US: 14.8
Weighted average US: 49.14965304172502
Average GB: 0.1
Weighted average GB: 0.3320922502819258
Average IN: 0.85
Weighted average IN: 2.822784127396369
Fast-food chains like McDonald's and Taco Bell are betting traumatized Americans will flock to familiarity as restaurants reopen
As states reopen for business during the coronavirus pandemic, fast-food giants are betting Americans seeking comfort will flock to old favorites. Executives of chains, including McDonald's, KFC, Taco Bell, and Checkers and Rally's, have all said that customers' desire for normalcy and familiarity will help boost sales as restaurants recover. David Gibbs, the CEO of Yum Brands, said on Wednesday that the company's chains — which include Pizza Hut, KFC, and Taco Bell — stand out for their "convenience and normalcy, all of which are highly sought out in these uncertain times and beyond." Frances Allen, the CEO of Checkers and Rally's, told Business Insider in a webinar that she expects people are going to want to return to comfort food and comfort brands. "There is going to be this cocooning going on, a sort of a relief that we survived, but at the same time, wanting to embrace the things that give them comfort," Allen said. "And there's nothing like burgers and fries as comfort food. From a selfish point of view, we're also excited to be able to lean back into that." McDonald's CEO Chris Kempczinski said on a call with investors on Thursday that familiar brands thrived in grocery stores as people stayed home. Earlier in the week, PepsiCo CEO Ramon Laguarta said the company was seeing impressive sales from large brands that customers trust. "I think that same dynamic is going to be at play as people start to come out looking for familiar brands," Kempczinski said Thursday. Fast-food companies, including McDonald's, Yum Brands, and Restaurant Brands International, that reported earnings this week said that sales are beginning to recover after plummeting in late March. Drive-thru business helped chains outperform the rest of the struggling restaurant business as customers sheltered-in-place across the US. LoadingSomething is loading. Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story. Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.
3 May 13:00 • Business Insider • https://www.businessinsider.com/mcdonalds-taco-bell-bet-customers-will-flock-to-familiarity-2020-4Rating: 4.40
Fast-food chains like McDonald's and Taco Bell are betting traumatized Americans will flock to familiarity as restaurants reopen
As states reopen for business during the coronavirus pandemic, fast-food giants are betting Americans seeking comfort will flock to old favourites. Executives of chains, including McDonald’s, KFC, Taco Bell, and Checkers and Rally’s, have all said that customers’ desire for normalcy and familiarity will help boost sales as restaurants recover. David Gibbs, the CEO of Yum Brands, said on Wednesday that the company’s chains – which include Pizza Hut, KFC, and Taco Bell – stand out for their “convenience and normalcy, all of which are highly sought out in these uncertain times and beyond.” Frances Allen, the CEO of Checkers and Rally’s, told Business Insider in a webinar that she expects people are going to want to return to comfort food and comfort brands. “There is going to be this cocooning going on, a sort of a relief that we survived, but at the same time, wanting to embrace the things that give them comfort,” Allen said. “And there’s nothing like burgers and fries as comfort food. From a selfish point of view, we’re also excited to be able to lean back into that.” McDonald’s CEO Chris Kempczinski said on a call with investors on Thursday that familiar brands thrived in grocery stores as people stayed home. Earlier in the week, PepsiCo CEO Ramon Laguarta said the company was seeing impressive sales from large brands that customers trust. “I think that same dynamic is going to be at play as people start to come out looking for familiar brands,” Kempczinski said Thursday. Fast-food companies, including McDonald’s, Yum Brands, and Restaurant Brands International, that reported earnings this week said that sales are beginning to recover after plummeting in late March. Drive-thru business helped chains outperform the rest of the struggling restaurant business as customers sheltered-in-place across the US.
3 May 13:00 • Business Insider Australia • https://www.businessinsider.com.au/mcdonalds-taco-bell-bet-customers-will-flock-to-familiarity-2020-4Rating: 0.30
Fast-food chains like McDonald’s and Taco Bell are betting traumatized Americans will flock to familiarity as restaurants reopen
As states reopen for business during the coronavirus pandemic, fast-food giants are betting Americans seeking comfort will flock to old favorites. Executives of chains, including McDonald’s, KFC, Taco Bell, and Checkers and Rally’s, have all said that customers’ desire for normalcy and familiarity will help boost sales as restaurants recover. David Gibbs, the CEO of Yum Brands, said on Wednesday that the company’s chains – which include Pizza Hut, KFC, and Taco Bell – stand out for their “convenience and normalcy, all of which are highly sought out in these uncertain times and beyond.” Frances Allen, the CEO of Checkers and Rally’s, told Business Insider in a webinar that she expects people are going to want to return to comfort food and comfort brands. “There is going to be this cocooning going on, a sort of a relief that we survived, but at the same time, wanting to embrace the things that give them comfort,” Allen said. “And there’s nothing like burgers and fries as comfort food. From a selfish point of view, we’re also excited to be able to lean back into that.” McDonald’s CEO Chris Kempczinski said on a call with investors on Thursday that familiar brands thrived in grocery stores as people stayed home. Earlier in the week, PepsiCo CEO Ramon Laguarta said the company was seeing impressive sales from large brands that customers trust. “I think that same dynamic is going to be at play as people start to come out looking for familiar brands,” Kempczinski said Thursday. Fast-food companies, including McDonald’s, Yum Brands, and Restaurant Brands International, that reported earnings this week said that sales are beginning to recover after plummeting in late March. Drive-thru business helped chains outperform the rest of the struggling restaurant business as customers sheltered-in-place across the US.
3 May 13:00 • Business Insider Malaysia • https://www.businessinsider.my/mcdonalds-taco-bell-bet-customers-will-flock-to-familiarity-2020-4Rating: 0.30
Fast-food chains like McDonald's and Taco Bell are betting traumatized Americans will flock to familiarity as restaurants reopen, Business Insider - Business Insider Singapore
As states reopen for business during the coronavirus pandemic, fast-food giants are betting Americans seeking comfort will flock to old favorites. Executives of chains, including McDonald’s, KFC, Taco Bell, and Checkers and Rally’s, have all said that customers’ desire for normalcy and familiarity will help boost sales as restaurants recover. David Gibbs, the CEO of Yum Brands, said on Wednesday that the company’s chains – which include Pizza Hut, KFC, and Taco Bell – stand out for their “convenience and normalcy, all of which are highly sought out in these uncertain times and beyond.” Frances Allen, the CEO of Checkers and Rally’s, told Business Insider in a webinar that she expects people are going to want to return to comfort food and comfort brands. “There is going to be this cocooning going on, a sort of a relief that we survived, but at the same time, wanting to embrace the things that give them comfort,” Allen said. “And there’s nothing like burgers and fries as comfort food. From a selfish point of view, we’re also excited to be able to lean back into that.” McDonald’s CEO Chris Kempczinski said on a call with investors on Thursday that familiar brands thrived in grocery stores as people stayed home. Earlier in the week, PepsiCo CEO Ramon Laguarta said the company was seeing impressive sales from large brands that customers trust. “I think that same dynamic is going to be at play as people start to come out looking for familiar brands,” Kempczinski said Thursday. Fast-food companies, including McDonald’s, Yum Brands, and Restaurant Brands International, that reported earnings this week said that sales are beginning to recover after plummeting in late March. Drive-thru business helped chains outperform the rest of the struggling restaurant business as customers sheltered-in-place across the US.
3 May 13:00 • www.businessinsider.sg • https://www.businessinsider.sg/mcdonalds-taco-bell-bet-customers-will-flock-to-familiarity-2020-4Rating: 0.30
Pot Job Seekers Surge as Sector Is Still Hiring: Cannabis Weekly
3 May 14:00
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5 articles
Weight: 2.62
Importance: 2.63
Age penalty: 1.00
Best date: 3 May 14:00
Average US: 25.8
Weighted average US: 36.00540113393297
Average GB: 0.16000000000000003
Weighted average GB: 0.3291606553186863
Average IN: 4.3
Weighted average IN: 5.9776607515774245
Pot Job Seekers Surge as Sector Is Still Hiring: Cannabis Weekly
Unlike many industries, the cannabis sector is still hiring during the pandemic. Yet the number of open positions has dwindled as layoffs become more common and many of the jobs that do exist are temporary. Vangst, which runs the Gigs site for temporary pot jobs and recently launched a platform for full-time positions, is filling about 600 jobs a week. That’s a slight decrease from pre-Covid 19 levels earlier this year, mostly because companies are employing fewer in-store staff as they switch to delivery or curbside pickup. Meanwhile, the number of job candidates on the platform surged by 300% between March and April, according to Karson Humiston, founder and chief executive officer of Vangst. “We’ve seen a huge uptick in candidates, and we’re seeing a large number of candidates coming from hospitality and retail,” Humiston said in a phone interview. “When our clients do pick up hiring again, they’re going to have access to a really strong talent pool.” Of the temporary jobs that are being filled on Vangst’s Gigs platform, about half are replacements for employees who are unable to work and the other half are for normal seasonal work related to harvests or packaging, she said. The cannabis sector employed 243,700 people at the beginning of 2020, up 15% from the prior year and nearly double the number of jobs in 2017, according to data from cannabis information firm Leafly. However, that number has been shrinking as companies that grew too fast and are now dealing with pandemic-related disruptions cut back. Canopy Growth Corp. said Wednesday that it’s cutting 200 jobs in Canada, the U.S. and the U.K., about 5% of its total workforce. That’s on top of 500 positions that were eliminated in early March when it closed two facilities in British Columbia. “When you have the largest cannabis company in the world laying off 700 people, that’s a signal of what’s going on in the broader market,” Humiston said. “We were already seeing that on the full-time side of our business and then Covid-19 came and exacerbated it.” Not everyone is cutting back, however. Trulieve Cannabis Corp., one of the largest U.S. cannabis companies by market value, has hired around 250 people since the pandemic started and still has about 150 open positions. The Florida-based company has doubled the number of vehicles in its delivery fleet and saw its call center volume spike from 25,000 calls a week to 65,000 as customers adapted to the new realities of pandemic shopping. It’s been hiring employees for both segments of the business, as well as for its dispensaries, said CEO Kim Rivers. At first Trulieve was hiring to replace people who had to take time off, but “at this point it really is actual hiring, adding to the workforce,” Rivers said in a phone interview. Despite the pandemic, Trulieve opened a new dispensary in Titusville, Florida on April 18 and plans to open another one in the next week or so. Rivers said it remains to be seen whether the pandemic-related expansion remains in place once things return to normal, but she’s hopeful Trulieve will be able to keep the employees it’s hired. “We prefer to not lose folks who have experience within the company, and there may be other roles that folks could shift into as well because we are continuing to grow,” she said. WEDNESDAY 5/6 THURSDAY 5/7 FRIDAY 5/8 Canopy Growth Cuts 200 Jobs in Canada, U.S. and U.K. Linton’s Newest Cannabis Company Seeks $150 Million in IPO Cannabis Firm Curaleaf Taps Ex-FINRA Official to Lead Compliance
3 May 14:00 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/pot-job-seekers-surge-as-sector-is-still-hiring-cannabis-weeklyRating: 4.04
Pot job seekers surge as sector is still hiring
Unlike many industries, the cannabis sector is still hiring during the pandemic. Yet the number of open positions has dwindled as layoffs become more common and many of the jobs that do exist are temporary. Vangst, which runs the Gigs site for temporary pot jobs and recently launched a platform for full-time positions, is filling about 600 jobs a week. That’s a slight decrease from pre-COVID 19 levels earlier this year, mostly because companies are employing fewer in-store staff as they switch to delivery or curbside pickup. Meanwhile, the number of job candidates on the platform surged by 300% between March and April, according to Karson Humiston, founder and chief executive officer of Vangst. “We’ve seen a huge uptick in candidates, and we’re seeing a large number of candidates coming from hospitality and retail,” Humiston said in a phone interview. “When our clients do pick up hiring again, they’re going to have access to a really strong talent pool.” Of the temporary jobs that are being filled on Vangst’s Gigs platform, about half are replacements for employees who are unable to work and the other half are for normal seasonal work related to harvests or packaging, she said. The cannabis sector employed 243,700 people at the beginning of 2020, up 15 per cent from the prior year and nearly double the number of jobs in 2017, according to data from cannabis information firm Leafly. However, that number has been shrinking as companies that grew too fast and are now dealing with pandemic-related disruptions cut back. Canopy Growth Corp. said Wednesday that it’s cutting 200 jobs in Canada, the U.S. and the U.K., about five per cent of its total workforce. That’s on top of 500 positions that were eliminated in early March when it closed two facilities in British Columbia. “When you have the largest cannabis company in the world laying off 700 people, that’s a signal of what’s going on in the broader market,” Humiston said. “We were already seeing that on the full-time side of our business and then Covid-19 came and exacerbated it.” Not everyone is cutting back, however. Trulieve Cannabis Corp., one of the largest U.S. cannabis companies by market value, has hired around 250 people since the pandemic started and still has about 150 open positions. The Florida-based company has doubled the number of vehicles in its delivery fleet and saw its call center volume spike from 25,000 calls a week to 65,000 as customers adapted to the new realities of pandemic shopping. It’s been hiring employees for both segments of the business, as well as for its dispensaries, said CEO Kim Rivers. At first Trulieve was hiring to replace people who had to take time off, but “at this point it really is actual hiring, adding to the workforce,” Rivers said in a phone interview. Despite the pandemic, Trulieve opened a new dispensary in Titusville, Florida on April 18 and plans to open another one in the next week or so. Rivers said it remains to be seen whether the pandemic-related expansion remains in place once things return to normal, but she’s hopeful Trulieve will be able to keep the employees it’s hired. “We prefer to not lose folks who have experience within the company, and there may be other roles that folks could shift into as well because we are continuing to grow,” she said. Events This Week WEDNESDAY 5/6 THURSDAY 5/7 FRIDAY 5/8
3 May 15:01 • BNN • https://www.bnnbloomberg.ca/pot-job-seekers-surge-as-sector-is-still-hiring-cannabis-weekly-1.1430767Rating: 1.34
Pot Job Seekers Surge as Sector Is Still Hiring: Cannabis Weekly
(Bloomberg) — Unlike many industries, the cannabis sector is still hiring during the pandemic. Yet the number of open positions has dwindled as layoffs become more common and many of the jobs that do exist are temporary. Vangst, which runs the Gigs site for temporary pot jobs and recently launched a platform for full-time positions, is filling about 600 jobs a week. That’s a slight decrease from pre-Covid 19 levels earlier this year, mostly because companies are employing fewer in-store staff as they switch to delivery or curbside pickup. Meanwhile, the number of job candidates on the platform surged by 300% between March and April, according to Karson Humiston, founder and chief executive officer of Vangst. “We’ve seen a huge uptick in candidates, and we’re seeing a large number of candidates coming from hospitality and retail,” Humiston said in a phone interview. “When our clients do pick up hiring again, they’re going to have access to a really strong talent pool.” Of the temporary jobs that are being filled on Vangst’s Gigs platform, about half are replacements for employees who are unable to work and the other half are for normal seasonal work related to harvests or packaging, she said. The cannabis sector employed 243,700 people at the beginning of 2020, up 15% from the prior year and nearly double the number of jobs in 2017, according to data from cannabis information firm Leafly. However, that number has been shrinking as companies that grew too fast and are now dealing with pandemic-related disruptions cut back. Canopy Growth Corp. said Wednesday that it’s cutting 200 jobs in Canada, the U.S. and the U.K., about 5% of its total workforce. That’s on top of 500 positions that were eliminated in early March when it closed two facilities in British Columbia. “When you have the largest cannabis company in the world laying off 700 people, that’s a signal of what’s going on in the broader market,” Humiston said. “We were already seeing that on the full-time side of our business and then Covid-19 came and exacerbated it.” Not everyone is cutting back, however. Trulieve Cannabis Corp., one of the largest U.S. cannabis companies by market value, has hired around 250 people since the pandemic started and still has about 150 open positions. The Florida-based company has doubled the number of vehicles in its delivery fleet and saw its call center volume spike from 25,000 calls a week to 65,000 as customers adapted to the new realities of pandemic shopping. It’s been hiring employees for both segments of the business, as well as for its dispensaries, said CEO Kim Rivers. At first Trulieve was hiring to replace people who had to take time off, but “at this point it really is actual hiring, adding to the workforce,” Rivers said in a phone interview. Despite the pandemic, Trulieve opened a new dispensary in Titusville, Florida on April 18 and plans to open another one in the next week or so. Rivers said it remains to be seen whether the pandemic-related expansion remains in place once things return to normal, but she’s hopeful Trulieve will be able to keep the employees it’s hired. “We prefer to not lose folks who have experience within the company, and there may be other roles that folks could shift into as well because we are continuing to grow,” she said. Events This Week WEDNESDAY 5/6 Scotts Miracle-Gro Co. reports second-quarter results pre-marketInnovative Industrial Properties Inc. reports first-quarter results after the market close THURSDAY 5/7 22nd Century Group Inc. reports pre-marketFlower One Holdings Inc. releases post-market FRIDAY 5/8 Cronos Group Inc. and CV Sciences Inc. report pre-market Last Week’s Top Stories Canopy Growth Cuts 200 Jobs in Canada, U.S. and U.K. Linton’s Newest Cannabis Company Seeks $150 Million in IPO Cannabis Firm Curaleaf Taps Ex-FINRA Official to Lead Compliance ©2020 Bloomberg L.P. Bloomberg.com
3 May 15:00 • Financial Post • https://business.financialpost.com/pmn/business-pmn/pot-job-seekers-surge-as-sector-is-still-hiring-cannabis-weeklyRating: 0.94
Work-from-home job offers for women rise amid COVID-19 crisis
Amid the lockdown to curb COVID-19pandemic, more and more companies are offering work-from-home jobs for women, says a report. As per the report by online career platform JobsForHer, work-for-home jobs posted on its platform saw 30 per cent rise in March 2020 as compared to the same month last year. This is a time when working from home is the new normal. The number of women looking to start or restart their careers has also risen dramatically in recent times, said JobsForHer Founder and CEO Neha Bagaria. Read| What you do to land jobs in corona-hit economy The rise has been particularly noted in metro cities including Delh- NCR, Bengaluru , Chennai, Mumbai, Hyderabad and Pune, it added. With work-from-home becoming the norm for a majority of the workforce, several companies are posting remote working jobs, offering opportunities for women who are looking to begin their career or make a comeback, it said. The platform saw that certain job roles such as journalist, editor, content writing, tele calling, customer services, QA testing were the ones that women professionals majorly applied for. Read| Hacks to pick the right internship and translate it into a job JobsForHer also observed that education, IT, recruitment, Internet or e-commerce and advertising and PR are some of the most popular industries for women while searching for jobs. Amazon, SQUADRUN, Ufaber EduTech, Multibhashi and OneHourLearning are some of the companies in which women were applying for work-from-home jobs, it added. Overall, there was 50 per cent increase in the number of applications from job seekers in March this year compared to the year-ago month. Women today are highly motivated and despite the world almost coming to a halt, they are still pursuing opportunities. The work-from-home comes as a blessing for those women who have prior familial commitments, Bagaria added.
3 May 08:20 • The Indian Express • https://indianexpress.com/article/jobs/work-from-home-job-offers-for-women-rise-amid-covid-19-crisis-6389271/Rating: 0.30
Reopening the Economy Too Soon Could Negatively Impact Latinx Essential Workers
Hispanic and Latinx communities like my own have become part of the backbone carrying us through this pandemic. In America, Hispanics and Latinxs disproportionately work in retail and service industries — overwhelmingly the industries deemed essential during a pandemic. These are also the most front-facing consumer jobs. In fact, Black and brown people make up 75 percent of the front-line workers in New York City, according to a study from Scott M. Stringer, the city's comptroller. They are delivering food and manning the cash register at your local chain pharmacy. Keep in mind, these aren't jobs that typically come with healthcare plans or 401(k) options. With the good news that New York is officially on the downside of its peak in daily coronavirus deaths, reopening America feels inevitable. But should we jump to it right away? Reopening the economy too soon can negatively impact Hispanic and Latinx workers (and their families) who are already stretched thin. Many of our homes have multiple generations living under one roof. My tias, Mayra and Monica, and younger cousins, for example, cared for my tata into his later years in a single-family home. Hispanic and Latinx workers come home from work to children, parents, and grandparents. Because of overexposure, even more of these essential workers and their family members — especially those who are at higher risk — could suffer as a result of reopening too soon. My pregnant sister, Anna, is working through the pandemic as a receptionist for a company that mounts TVs in Hoover, AL. On one hand, I love that she will have health insurance when the baby comes. On the other hand, who considers home theater installation an essential service right now? Some states have already started pulling back on self-isolation measures. Georgia is easing social distancing, including opening gyms and nail salons. Florida reopened its beaches. It is our responsibility to care for each other during a pandemic. This means making choices about what we buy and how we buy it, prioritizing what we think is essential in a non-pandemic situation vs. what really is essential. It also means donating to charities, causes, and organizations that are supporting those suffering the most during this time if your situation allows it. Now is the time to tip heavily. Volunteer (virtually) instead of watching a movie. There are things to do and places to give to if you want to keep busy while the world continues to fight this virus. We can't be reckless with human life just because we need a haircut. We will bounce back from this eventually. We will reopen and rebuild. If you really care about the economy, protect the people who are keeping life afloat during this time by staying at home as much as possible. We can't stimulate the economy if we are dead. Consider the health of our healthcare professionals, grocery store clerks, and food delivery workers and their families. Let's protect our community.
2 May 21:00 • POPSUGAR Latina • https://www.popsugar.com/latina/reopening-economy-can-affect-latinx-essential-workers-47416381Rating: 1.91
Adidas is using AI and 3D printing to cope with a plunge in sales during the coronavirus pandemic
3 May 11:27
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4 articles
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Adidas is using AI and 3D printing to cope with a plunge in sales during the coronavirus pandemic
German sportswear giant Adidas plans to bolster its lagging performance by shifting strategy to focus on its digital platform.The fitness brand reported a 19% sales decline this week as more than 70% of its global stores remained closed during the coronavirus pandemic. Over an earnings call with company executives, Adidas zeroed in on plans for "digital acceleration" and said it would pivot to a greater focus on its digital presence now that it has limited capacity to operate out of physical stores. Business Insider got some insights from Adidas into what its revamped digital focus involves: Adidas also says it is investing in its digital retail infrastructure, and is reaping the benefits during the coronavirus as its online stores, as well of those of partner retailers, are open all the time. Its physical stores and other sporting-goods retailers remain closed in most parts of the world. The brand's ecommerce sales saw the highest growth rate on record last year, a jump of 34%. That spurt accelerated even further as sales for ecommerce grew by 35% in currency-neutral terms with 55% growth in March this year.The firm aims to support this trend by connecting experts from its retail teams, mobile-fitness app Runtastic, and the IT team, all working towards building up ecommerce. Adidas is also extending partnership programs with digital pure players — companies that only run virtually — such as Zalando, Asos, Zappos, and Tmall. As well as focusing more heavily on ecommerce, Adidas is also promoting heavily products that are selling well while people are stuck at home. The brand is increasingly promoting products like the Adilette Slides — a favorite among consumers working from home — as they have enjoyed high demand on the brand's channels. Adilette sales went up by a 'triple-digit percentage' rate in April, the company said. For its sports apps "adidas Running" and "adidas Training", the brand has been offering free premium access since the start of the coronavirus pandemic. Since then, hundreds of thousands of athletes have used more than 250 training videos, workouts and training plans to continue keeping fit from home. Adidas has also focused its marketing investments and efforts towards digital and social media channels and an increase in digital storytelling under the hashtag "#hometeam." Over the past few weeks, the brand has shared inspiring home stories from the daily lives of numerous brand ambassadors around the world who demonstrate creative ways to "make the most of time at home and, of course, to continue to exercise." LoadingSomething is loading. Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story. Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.
3 May 11:27 • Business Insider • https://www.businessinsider.com/adidas-ai-3d-printing-coronavirus-sales-plunge-2020-4Rating: 4.40
Adidas is using AI and 3D printing to cope with a plunge in sales during the coronavirus pandemic
German sportswear giant Adidas plans to bolster its lagging performance by shifting strategy to focus on its digital platform. The fitness brand reported a 19% sales decline this week as more than 70% of its global stores remained closed during the coronavirus pandemic. Over an earnings call with company executives, Adidas zeroed in on plans for “digital acceleration” and said it would pivot to a greater focus on its digital presence now that it has limited capacity to operate out of physical stores. Business Insider got some insights from Adidas into what its revamped digital focus involves: Adidas also says it is investing in its digital retail infrastructure, and is reaping the benefits during the coronavirus as its online stores, as well of those of partner retailers, are open all the time. Its physical stores and other sporting-goods retailers remain closed in most parts of the world. The brand’s ecommerce sales saw the highest growth rate on record last year, a jump of 34%. That spurt accelerated even further as sales for ecommerce grew by 35% in currency-neutral terms with 55% growth in March this year. The firm aims to support this trend by connecting experts from its retail teams, mobile-fitness app Runtastic, and the IT team, all working towards building up ecommerce. Adidas is also extending partnership programs with digital pure players – companies that only run virtually – such as Zalando, Asos, Zappos, and Tmall. As well as focusing more heavily on ecommerce, Adidas is also promoting heavily products that are selling well while people are stuck at home. The brand is increasingly promoting products like the Adilette Slides – a favourite among consumers working from home – as they have enjoyed high demand on the brand’s channels. Adilette sales went up by a ‘triple-digit percentage’ rate in April, the company said. For its sports apps “adidas Running” and “adidas Training”, the brand has been offering free premium access since the start of the coronavirus pandemic. Since then, hundreds of thousands of athletes have used more than 250 training videos, workouts and training plans to continue keeping fit from home. Adidas has also focused its marketing investments and efforts towards digital and social media channels and an increase in digital storytelling under the hashtag “#hometeam.” Over the past few weeks, the brand has shared inspiring home stories from the daily lives of numerous brand ambassadors around the world who demonstrate creative ways to make the most of time at home and, of course, to continue to exercise.”
3 May 11:27 • Business Insider Australia • https://www.businessinsider.com.au/adidas-ai-3d-printing-coronavirus-sales-plunge-2020-4Rating: 0.30
Adidas is using AI and 3D printing to cope with a plunge in sales during the coronavirus pandemic
German sportswear giant Adidas plans to bolster its lagging performance by shifting strategy to focus on its digital platform. The fitness brand reported a 19% sales decline this week as more than 70% of its global stores remained closed during the coronavirus pandemic. Over an earnings call with company executives, Adidas zeroed in on plans for “digital acceleration” and said it would pivot to a greater focus on its digital presence now that it has limited capacity to operate out of physical stores. Business Insider got some insights from Adidas into what its revamped digital focus involves: Adidas also says it is investing in its digital retail infrastructure, and is reaping the benefits during the coronavirus as its online stores, as well of those of partner retailers, are open all the time. Its physical stores and other sporting-goods retailers remain closed in most parts of the world. The brand’s ecommerce sales saw the highest growth rate on record last year, a jump of 34%. That spurt accelerated even further as sales for ecommerce grew by 35% in currency-neutral terms with 55% growth in March this year. The firm aims to support this trend by connecting experts from its retail teams, mobile-fitness app Runtastic, and the IT team, all working towards building up ecommerce. Adidas is also extending partnership programs with digital pure players – companies that only run virtually – such as Zalando, Asos, Zappos, and Tmall. As well as focusing more heavily on ecommerce, Adidas is also promoting heavily products that are selling well while people are stuck at home. The brand is increasingly promoting products like the Adilette Slides – a favorite among consumers working from home – as they have enjoyed high demand on the brand’s channels. Adilette sales went up by a ‘triple-digit percentage’ rate in April, the company said. For its sports apps “adidas Running” and “adidas Training”, the brand has been offering free premium access since the start of the coronavirus pandemic. Since then, hundreds of thousands of athletes have used more than 250 training videos, workouts and training plans to continue keeping fit from home. Adidas has also focused its marketing investments and efforts towards digital and social media channels and an increase in digital storytelling under the hashtag “#hometeam.” Over the past few weeks, the brand has shared inspiring home stories from the daily lives of numerous brand ambassadors around the world who demonstrate creative ways to “make the most of time at home and, of course, to continue to exercise.”
3 May 11:27 • Business Insider Malaysia • https://www.businessinsider.my/adidas-ai-3d-printing-coronavirus-sales-plunge-2020-4Rating: 0.30
Adidas is using AI and 3D printing to cope with a plunge in sales during the coronavirus pandemic, Business Insider - Business Insider Singapore
German sportswear giant Adidas plans to bolster its lagging performance by shifting strategy to focus on its digital platform. The fitness brand reported a 19% sales decline this week as more than 70% of its global stores remained closed during the coronavirus pandemic. Over an earnings call with company executives, Adidas zeroed in on plans for “digital acceleration” and said it would pivot to a greater focus on its digital presence now that it has limited capacity to operate out of physical stores. Business Insider got some insights from Adidas into what its revamped digital focus involves: Adidas also says it is investing in its digital retail infrastructure, and is reaping the benefits during the coronavirus as its online stores, as well of those of partner retailers, are open all the time. Its physical stores and other sporting-goods retailers remain closed in most parts of the world. The brand’s ecommerce sales saw the highest growth rate on record last year, a jump of 34%. That spurt accelerated even further as sales for ecommerce grew by 35% in currency-neutral terms with 55% growth in March this year. The firm aims to support this trend by connecting experts from its retail teams, mobile-fitness app Runtastic, and the IT team, all working towards building up ecommerce. Adidas is also extending partnership programs with digital pure players – companies that only run virtually – such as Zalando, Asos, Zappos, and Tmall. As well as focusing more heavily on ecommerce, Adidas is also promoting heavily products that are selling well while people are stuck at home. The brand is increasingly promoting products like the Adilette Slides – a favorite among consumers working from home – as they have enjoyed high demand on the brand’s channels. Adilette sales went up by a ‘triple-digit percentage’ rate in April, the company said. For its sports apps “adidas Running” and “adidas Training”, the brand has been offering free premium access since the start of the coronavirus pandemic. Since then, hundreds of thousands of athletes have used more than 250 training videos, workouts and training plans to continue keeping fit from home. Adidas has also focused its marketing investments and efforts towards digital and social media channels and an increase in digital storytelling under the hashtag “#hometeam.” Over the past few weeks, the brand has shared inspiring home stories from the daily lives of numerous brand ambassadors around the world who demonstrate creative ways to “make the most of time at home and, of course, to continue to exercise.”
3 May 11:27 • www.businessinsider.sg • https://www.businessinsider.sg/adidas-ai-3d-printing-coronavirus-sales-plunge-2020-4Rating: 0.30
U.S. processes over $500 billion in small business loans to stem coronavirus fallout
3 May 16:27
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11 articles
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Weighted average IN: 19.446484192277484
U.S. processes over $500 billion in small business loans to stem coronavirus fallout
(Reuters) - The United States has made over $500 billion in loans to small businesses hit hard by the coronavirus pandemic, and about $145 billion remains in the congressionally approved fund, the U.S. Small Business Administration and Treasury Department said Sunday. The SBA has processed about 2.2 million loans worth more than $175 billion since Congress last month authorized more funding for the Paycheck Protection Program, part of almost $3 trillion in spending to fight the heavy economic toll of the pandemic, which has thrown about 30 million Americans out of work. The second round of funding was launched on Monday, allowing lenders to issue forgivable, government-guaranteed loans to small businesses shuttered by the outbreak. The average loan size in the second round of the PPP loan processing has been $79,000, according to the statement released on Sunday. The U.S. government’s $660 billion small business rescue program has stumbled on missing paperwork, technology failure, and the misdirection of funds to big corporations. It also faces the hurdle of forgiving those hastily arranged loans. The latest data released by the government does not address complaints around the transparency of the program. For example, it not include a breakdown of industries that have received loans. The pandemic, which has killed more than 66,000 people in the United States, has shuttered wide swaths of American life, closing many businesses and schools and leaving hundreds of millions largely sheltering at home. Over the past week some U.S. states have begun to allow some businesses to reopen.
3 May 16:27 • Reuters • https://www.reuters.com/article/us-health-coronavirus-usa-stimulus-idUSKBN22F0KXRating: 4.04
Feds warn small businesses of potential coronavirus SBA loan fraud
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here. Federal officials on Friday warned small businesses to be alert for scammers looking to take advantage of federal aid for entrepreneurs struggling during the coronavirus pandemic. The $2 trillion CARES act, passed by Congress in March, set aside $349 billion worth of loans for small businesses. Under the program, small businesses may apply for loans through the Small Business Administration (SBA). The SBA did not initiate loans, nor did it require information already provided in the application. The feds warned entrepreneurs that anyone asking for money was “not legitimate, nor are emails that end in anything but ‘.gov’.” SAN FRANCISCO POLICE CHIEF NIXES OFFICERS’ ‘THIN BLUE LINE’ CORONAVIRUS MASKS “Those who prey on others look for opportunities like the various loans provided to small businesses. United States Attorneys and our respective law enforcement partners, like the FBI, are on the lookout for those predators. We strongly encourage those who become aware of such scams to report it to the authorities so we can take action,” said U.S. Attorney for the Northern District of West Virginia Bill Powell. Eugene Kowel, the acting special agent in charge for the FBI in Pittsburgh, urged companies to use backup and malware-detection systems and to train employees “to be skeptical of emails, attachments and websites they don’t recognize.” CLICK HERE TO GET THE FOX NEWS APP The warning came amid a general uptick in criminal scams related to the coronavirus pandemic. Last month, the FBI put out an alert warning that the pandemic was providing criminals with illicit opportunities at “breathtaking” speed.
3 May 23:11 • Fox News • https://www.foxnews.com/politics/coronavirus-small-businesses-potential-sba-loan-fraud-fbiRating: 3.32
US processes over US$500b in small business loans to stem coronavirus fallout
WASHINGTON, May 4 — The United States has made over US$500 billion (RM2.15 trillion) in loans to small businesses hit hard by the coronavirus pandemic, and about US$145 billion remains in the congressionally approved fund, the US Small Business Administration and Treasury Department said yesterday. The SBA has processed about 2.2 million loans worth more than US$175 billion since Congress last month authorised more funding for the Paycheck Protection Programme, part of almost US$3 trillion in spending to fight the heavy economic toll of the pandemic, which has thrown about 30 million Americans out of work. The second round of funding was launched today, allowing lenders to issue forgivable, government-guaranteed loans to small businesses shuttered by the outbreak. The average loan size in the second round of the PPP loan processing has been US$79,000, according to the statement released yesterday. The US government’s US$660 billion small business rescue programme has stumbled on missing paperwork, technology failure, and the misdirection of funds to big corporations. It also faces the hurdle of forgiving those hastily arranged loans. The latest data released by the government does not address complaints around the transparency of the program. For example, it not include a breakdown of industries that have received loans. The pandemic, which has killed more than 66,000 people in the United States, has shuttered wide swaths of American life, closing many businesses and schools and leaving hundreds of millions largely sheltering at home. Over the past week some US states have begun to allow some businesses to reopen. — Reuters
3 May 23:09 • Malaymail • https://www.malaymail.com/news/money/2020/05/04/us-processes-over-us500b-in-small-business-loans-to-stem-coronavirus-fallou/1862726Rating: 1.42
U.S. processes over $500 billion in small business loans to stem coronavirus fallout
The United States has made over $500 billion in loans to small businesses hit hard by the coronavirus pandemic, and about $145 billion (115.98 billion pounds) remains in the congressionally approved fund, the U.S. Small Business Administration and Treasury Department said Sunday. The SBA has processed about 2.2 million loans worth more than $175 billion since Congress last month authorized more funding for the Paycheck Protection Program, part of almost $3 trillion in spending to fight the heavy economic toll of the pandemic, which has thrown about 30 million Americans out of work. The second round of funding was launched on Monday, allowing lenders to issue forgivable, government-guaranteed loans to small businesses shuttered by the outbreak. The average loan size in the second round of the PPP loan processing has been $79,000, according to the statement released on Sunday. The U.S. government’s $660 billion small business rescue program has stumbled on missing paperwork, technology failure, and the misdirection of funds to big corporations. It also faces the hurdle of forgiving those hastily arranged loans. The latest data released by the government does not address complaints around the transparency of the program. For example, it not include a breakdown of industries that have received loans. The pandemic, which has killed more than 66,000 people in the United States, has shuttered wide swaths of American life, closing many businesses and schools and leaving hundreds of millions largely sheltering at home. Over the past week some U.S. states have begun to allow some businesses to reopen. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
3 May 17:32 • The Globe and Mail • https://www.theglobeandmail.com/business/international-business/us-business/article-us-processes-over-500-billion-in-small-business-loans-to-stem/Rating: 2.18
I-T dept cautions people against phishing e-mails promising refund
The Income Tax (I-T) department on Sunday asked taxpayers to beware of phishing e-mails promising refund. “Taxpayers Beware! Please do not click on any fake link which promises to give refund. These are phishing messages and are not sent by the income tax department,” the department said in a tweet. According to the latest data, between April 8 and April 20, the department issued nearly 14 lakh refunds worth over ₹9,000 crore to various taxpayers, including individuals, Hindu Undivided Families, proprietors, firms, corporate, start-ups, and MSMEs. On April 8, the Finance Ministry said it will fast-track issuance of pending income tax refunds up to ₹5 lakh which will benefit around 14 lakh taxpayers, to provide relief to individuals and businesses hit by the COVID-19 outbreak.
3 May 20:20 • The Hindu • https://www.thehindu.com/news/national/i-t-dept-cautions-people-against-phishing-e-mails-promising-refund/article31496498.eceRating: 0.30
U.S. processes over $500 billion in small business loans to stem coronavirus fallout
(Reuters) - The United States has made over $500 billion in loans to small businesses hit hard by the coronavirus pandemic, and about $145 billion remains in the congressionally approved fund, the U.S. Small Business Administration and Treasury Department said Sunday. The SBA has processed about 2.2 million loans worth more than $175 billion since Congress last month authorized more funding for the Paycheck Protection Program, part of almost $3 trillion in spending to fight the heavy economic toll of the pandemic, which has thrown about 30 million Americans out of work. The second round of funding was launched on Monday, allowing lenders to issue forgivable, government-guaranteed loans to small businesses shuttered by the outbreak. The average loan size in the second round of the PPP loan processing has been $79,000, according to the statement released on Sunday. The U.S. government's $660 billion small business rescue program has stumbled on missing paperwork, technology failure, and the misdirection of funds to big corporations. It also faces the hurdle of forgiving those hastily arranged loans. The latest data released by the government does not address complaints around the transparency of the program. For example, it not include a breakdown of industries that have received loans. The pandemic, which has killed more than 66,000 people in the United States, has shuttered wide swaths of American life, closing many businesses and schools and leaving hundreds of millions largely sheltering at home. Over the past week some U.S. states have begun to allow some businesses to reopen. (Reporting by Kanishka Singh in Bengaluru and Howard Schneider in Washington; Editing by Lisa Shumaker)
3 May 14:04 • Yahoo • https://news.yahoo.com/u-processes-over-500-billion-140429083.htmlRating: 0.30
Trump aides say business-loan plan working, ‘pause’ comes next
The Trump administration on Sunday termed the second phase of an emergency job-saving program a success, with more than $175 billion in loans already issued to smaller companies and more likely after a “pause.” The two phases of the so-called Paycheck Protection Program (PPP) have provided a total of $669 billion, including $320 billion in the latest tranche. The program aims to preserve jobs threatened by the coronavirus pandemic, which has paralyzed much of the US economy. The number of individual loans issued under the second phase 2.2 million so far exceeds the number issued in the first phase, according to a joint statement from Treasury Secretary Steven Mnuchin and Jovita Carranza, administrator of the federal Small Business Administration (SBA). The PPP relief funds, part of a larger package of emergency relief measures worth more than $2.7 trillion, aim to help keep the huge network of small and medium-sized businesses afloat until confinement measures linked to the pandemic are more widely eased. Some 30 million people in the US, a record, have applied for unemployment benefits since the beginning of the COVID-19 crisis. “It’s going to be very difficult in the months ahead,” White House economic adviser Larry Kudlow said on CNN. “The economy is still in a terrible contractionary phase, tremendous hardships everywhere.” But he insisted he was optimistic, pointing to forecasts of “a very strong second-half economic rebound,” possibly followed next year by “one of the fastest growth rebounds in American history.” ‘A pause’ He said the federal effort to shore up smaller and medium-sized businesses had been “an extremely popular and effective program,” and that “there may well be additional legislation.” As Congress and the administration study next steps, Kudlow added, “There’s kind of a pause period right now” of perhaps a few weeks. The administration and congressional leaders of both parties are already in talks on a next round of economic support, but their priorities diverge on several points. Trump would like to see the next round include tax breaks for workers and for the sports and entertainment industries, Kudlow said. The president also wants to see new spending for infrastructure upgrades across the country. But Democrats want greater oversight over the vast spending programs and oppose Trump’s efforts to insist states ban so-called sanctuary cities that provide protections for undocumented immigrants. The Trump administration has also been sharply criticized for funneling billions of dollars in the PPP’s first phase to large corporations that in principle should not have qualified for the conditional loans. Mnuchin and Carranza noted in their statement that the average loan provided in the second phase has been $79,000, indicating the money is going, as intended, to smaller companies. They said that since the first phase launched on April 3, the SBA has processed more than 3.8 million loans for a total of more than $500 billion.
3 May 19:39 • The Guardian • https://guardian.ng/news/world/trump-aides-say-business-loan-plan-working-pause-comes-next/Rating: 0.30
Taxpayers beware of phishing e-mails promising refund
New Delhi: The Income Tax Department on Sunday asked taxpayers to beware of phishing e-mails promising refund. "Taxpayers Beware! Please do not click on any fake link which promises to give refund. These are phishing messages and are not sent by the income tax department," the department said in a tweet. According to the latest data, between 8-20 April, the department issued nearly 14 lakh refunds involving an amount of over Rs 9,000 crore to various taxpayers including individuals, Hindu Undivided Families, proprietors, firms, corporate, start-ups, and MSMEs. On 8 April, the finance ministry said it will fast-track issuance of pending income tax refunds up to Rs 5 lakh which will benefit around 14 lakh taxpayers, to provide relief to individuals and businesses hit by the COVID-19 outbreak.
3 May 13:53 • Deccan Chronicle • https://www.deccanchronicle.com/business/in-other-news/030520/taxpayers-beware-of-phishing-e-mails-promising-refund.htmlRating: 1.64
Small Firms Still in Dark on Loan Forgiveness as Clock Ticks
U.S. Small Business and Coronavirus:What you need to knowNewFollow this Storyi Sign up here for our daily coronavirus newsletter on what you need to know, and subscribe to our Covid-19 podcast for the latest news and analysis. Small businesses that struggled to get loans from a government pandemic relief program still don’t know how much they may have to repay after the government missed a deadline to give specific guidance. The U.S. Small Business Administration was supposed to clarify by April 26 how loans it approved as part of the Trump administration’s multitrillion-dollar coronavirus stimulus package can be spent and still qualify to become grants. Companies and lenders say they need more guidance on how to calculate the amount that’s eligible for forgiveness and what documentation is required to support the claims. That could leave small firms on the hook to repay loan proceeds they thought would be a grant. As a result, some business owners are holding onto the loans and may even return them, according to interviews with small business groups, lenders and borrowers. The Paycheck Protection Program was designed as a lifeline for small firms, many of which were shuttered due to stay-at-home orders, have no revenue coming in, and may be forced to close for good. Time is short, since the funds must be spent within eight weeks after they’re received to qualify for forgiveness. Every day of uncertainty means making decisions is more difficult, the groups and business owners said. “As soon as they got the money, they’re calling and saying, ‘OK, how do I spend this to make sure I get this forgiven, because I don’t want to mess this up,’” said Kimberly Rayer, a partner at Starfield & Smith in Pennsylvania, who advises lenders on SBA loan programs. “Borrowers are concerned, they would like to make sure that they don’t have to pay this money back.” The uncertainty about how loans will be forgiven is just the latest stumbling block in the SBA’s chaotic effort to funnel about $670 billion to small firms across the country to counter the devastating effects of Covid-19 on their operations. The initiative was intended to keep them afloat and keep employees on payrolls to be ready to reopen. The initial round of $349 billion in funding ran out on April 16 in just 13 days after 1.66 million firms were approved for loans. The program relaunched April 27 with an additional $320 billion, and the SBA and Treasury Department reported on Sunday that 2.2 million loans totaling $175.7 billion from more than 5,400 lenders have been processed, with an average loan size of $79,000 -- much lower than the $206,000 average in the first round. The totals, through May 1, mean less than half the additional funding remains available. The new data show that disparities in approvals among states in the first round of funding have been largely eliminated and suggest more smaller firms are getting loans. The program provides loans of as much as $10 million to small businesses affected by the outbreak. The law says borrowers don’t have to repay the loans if the money is spent on payroll plus mortgage interest, rent and utilities. An initial rule issued by SBA and Treasury said 75% of the proceeds must be spent on payroll and 25% on the approved expenses. The amount forgiven is reduced if owners cut jobs or wages, and any amount that’s not forgiven must be repaid at 1% interest in two years, with the first payment deferred for six months. Business owners don’t have enough guidance about how they’re spending the money to ensure they’ll avoid having to repay it, said Holly Wade, director of research and policy analysis for the National Federation of Independent Business. Questions include whether expenses incurred during the eight weeks but paid later would qualify. They’d also like more flexibility about how the proceeds can be used and still qualify for forgiveness. Small business and industry groups are lobbying Congress and the Trump administration for changes. “There’s just many questions where we don’t have an answer, and small business owners are concerned,” Wade said. Congress said in the legislation creating the program that the SBA was to issue guidance and regulations for loan forgiveness “not later than 30 days after the date of enactment of this act,” which would have been April 26. Almost a week on, the agency hasn’t said when it will issue the guidance and didn’t comment for this report. For more: Trump’s Rural Base Fared Better Than Coastal Cities in SBA Loans The program was designed to have banks disburse loans to small businesses that SBA would guarantee, to get money into the hands of those in need as quickly as possible. Lenders can apply to have the agency reimburse them for the portions of loans that are forgiven, starting seven weeks after money is disbursed. Lenders also want more guidance because they make the initial assessment about loan forgiveness, said Paul Merski of the Independent Community Bankers of America. The SBA and Treasury should produce a calculator to help lenders and borrowers determine loan forgiveness and simplify the process, he said. The rollout of the small business relief program last month had numerous problems. SBA’s lending platform was quickly overwhelmed, and guidance to borrowers and banks -- which has changed dozens of times since it launched April 3 -- sowed confusion and caused banks to hold back on processing applications initially. Large firms and national chains swooped in, picking up millions of dollars in loans and leaving many mom-and-pop businesses shut out. Almost 320 public companies received loans totaling $1.12 billion, according to data compiled by FactSquared. After the Trump administration warned large firms with access to other capital about taking loans and Treasury Secretary Steven Mnuchin said all loans of more than $2 million would be reviewed for criminal liability, 29 companies had returned loans worth $183 million as of May 1, data show. Texas hotelier Monty Bennett, a major donor to President Donald Trump whose companies are among the biggest known recipients of loans that total about $70 million, according to regulatory filings, said Saturday he’ll return the money. James Cummings, who runs 22 Great Clips franchises across North Carolina, said he received a loan for his hair salons toward the end of April, but is holding on to it until he gets more details on how the forgiveness will work. He’s hoping that the government will allow more flexibility in how he spends it. Cummings said he needs to “be able to use this money when we reopen, or we’re literally going to have to pay it all back, every dime.” The salon operator is among small business owners that are finding themselves caught in an additional bind: even with a loan, they can’t pay their employees as much as the workers could get from unemployment benefits, but they can’t use more of the money to cover other expenses while waiting to reopen. Many restaurants and other small business owners also say eight weeks of federal coronavirus relief won’t be enough, especially if they’re not ready to reopen during that time. Industry groups including the National Restaurant Association are seeking a number of changes, including an extension of the period when owners can use the loan and have it forgiven. Advocates also want more flexibility to the rule on how the proceeds can be spent, but Mnuchin has defended the terms because the intent of the law was to keep workers employed. Clara Osterhage, who owns hair salons in Ohio and other states, got her loan funds on April 26, but doesn’t know when she’ll be able to reopen and whether she can rehire workers. She said she needs more clarity about the rules and may end up having to return the money rather than having to repay with interest a two-year loan she can’t afford. “It’s incredibly concerning,” Osterhage said. “I don’t know the rules of the game, and I have no control.” (An earlier version corrected loan amounts associated with Monty Bennett.) — With assistance by Ben Brody (Updates with latest loan data in eight paragraph.)
3 May 10:00 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/small-firms-still-in-dark-on-sba-loan-forgiveness-as-clock-ticksRating: 4.04
I-T department warns against fake refund messages
Amid the ongoing financial crisis during the coronavirus lockdown, the I-T department has fast-tracked the process of issuing all pending income tax refunds up to Rs 5 lakh The income tax (I-T) department has asked taxpayers to be cautious with alerts they receive for income tax refunds as they can be phishing messages to trick assessees. A typical fake message, looks similar to an official message from the department and reads like this: "Due to Covid-19 outbreak, central govt. has decided to provide tax refund to ALL taxpayers, in order to provide them financial ease during lockdown. Click below to claim your refund. (Phishing web link)". Taxpayers have been warned in an advisory that the department has not sent any such communication. "The department would like to advise tax payers, not to click or entertain any such communication that they receive. Please note, that these are phishing messages and not sent by the income tax department," it said. Coronavirus lockdown: 78% people want ecommerce sites to sell non-essential items too, shows survey Amid the ongoing financial crisis during the coronavirus lockdown, the I-T department has fast-tracked the process of issuing all pending income tax refunds up to Rs 5 lakh. Till April 21, nearly 14 lakh refunds worth over Rs 9,000 crore have been issued to various taxpayers. "Taxpayers Beware! Please do not click on any fake link which promises to give refund. These are phishing messages and are not sent by the Income Tax Department," the I-T department said in a tweet today. To avoid any fake transaction, the department has also been sending emails to taxpayers advising them to make a confirmation before processing their refunds. All such confirmations should be carried out only on the income tax department's official e-filing portal, the advisory said. Coronavirus crisis: Man held for making liquor from hand sanitiser
3 May 09:39 • Business Today • https://www.businesstoday.in/current/economy-politics/i-t-department-warns-against-fake-refund-messages/story/402740.htmlRating: 2.10
IT dept cautions people against phishing e-mails promising refund
The income tax department on Sunday asked taxpayers to beware of phishing e-mails promising refund. "Taxpayers Beware! Please do not click on any fake link which promises to give refund. These are phishing messages and are not sent by the income tax department," the department said in a tweet. According to the latest data, between April 8 and 20, the department issued nearly 14 lakh refunds involving an amount of over Rs 9,000 crore to various taxpayers including individuals, Hindu Undivided Families, proprietors, firms, corporate, start-ups, and MSMEs. On April 8, the finance ministry said it will fast-track issuance of pending income tax refunds up to Rs 5 lakh which will benefit around 14 lakh taxpayers, to provide relief to individuals and businesses hit by the COVID-19 outbreak.
3 May 07:54 • The Economic Times • https://economictimes.indiatimes.com/news/economy/finance/it-dept-cautions-people-against-phishing-e-mails-promising-refund/articleshow/75516087.cmsRating: 0.30
The future of the office, how we'll shop and pay, and Masa Son's biggest challenge
3 May 13:33
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4 articles
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The future of the office, how we'll shop and pay, and Masa Son's biggest challenge
Hello! As the curve flattens in many parts of the world and the movement to reopen the economy gains steam, I keep finding myself thinking about this seating plan. As Holly Secon reported this week, 44% of workers on one floor of a South Korean call center got the coronavirus. The desks colored blue show where employees with confirmed cases sat. For some of you, that seating plan might look a little like your bank of desks at the office. It certainly looks like mine. A number of Business Insider reporters this week delved in to what a return to work might look like, and how offices will have to be reconfigured to make a return possible: There are other questions beyond whether we'll go back to the office, when, and what it might look like. How will we shop? How will we pay? What felt normal in February — queueing for Chipotle in a packed restaurant and paying by bank card — now feels anachronistic. Where did it all go wrong for Masayoshi Son? From Dakin Campbell's story: In 2017, Son, the founder and CEO of SoftBank, upended the tech establishment with the creation of the $100 billion Vision Fund, the largest venture-capital fund in history. Over the next two years, it would deploy $75 billion across 88 investments, with Son holding an outsized voice on the three-person investment committee. Son earned a reputation among some venture capitalists and entrepreneurs who saw him pressuring founders into taking more money than they needed, elbowing aside coinvestors, and warping markets by seemingly pushing for growth at all costs. Venture capitalists kept investing alongside him, and founders took the money as valuations rose. The fund earned some wins, selling a stake in India e-commerce company Flipkart to Walmart and making money on an investment in publicly-traded chipmaker Nvidia. But as more than one company with billions of dollars in Vision Fund cash and no profits began to crater last year, the Silicon Valley community quickly turned against him. You can read the full story here: Masa Son is facing one of his biggest challenges yet as the SoftBank Vision Fund racks up billions in losses. 12 insiders reveal where it all went wrong. Lastly, if you didn't catch the first installment of Starting Up, Business Insider's interview show, you should check out Drake Baer's conversation with Slack cofounder and CTO Cal Henderson. Below are headlines on some of the stories you might have missed from the past week. Stay safe, everyone. -- Matt
3 May 13:33 • Business Insider • https://www.businessinsider.com/top-business-stories-this-week-the-office-payments-masa-son-2020-5Rating: 4.40
The future of the office, how we'll shop and pay, and Masa Son's biggest challenge
Hello! As the curve flattens in many parts of the world and the movement to reopen the economy gains steam, I keep finding myself thinking about this seating plan. As Holly Secon reported this week, 44% of workers on one floor of a South Korean call center got the coronavirus. The desks colored blue show where employees with confirmed cases sat. For some of you, that seating plan might look a little like your bank of desks at the office. It certainly looks like mine. A number of Business Insider reporters this week delved in to what a return to work might look like, and how offices will have to be reconfigured to make a return possible: There are other questions beyond whether we’ll go back to the office, when, and what it might look like. How will be shop? How will we pay? What felt normal in February – queueing for Chipotle in a packed restaurant and paying by bank card – now feels anachronistic. Where did it all go wrong for Masayoshi Son? From Dakin Campbell’s story: In 2017, Son, the founder and CEO of SoftBank, upended the tech establishment with the creation of the $100 billion Vision Fund, the largest venture-capital fund in history. Over the next two years, it would deploy $75 billion across 88 investments, with Son holding an outsized voice on the three-person investment committee. Son earned a reputation among some venture capitalists and entrepreneurs who saw him pressuring founders into taking more money than they needed, elbowing aside coinvestors, and warping markets by seemingly pushing for growth at all costs. Venture capitalists kept investing alongside him, and founders took the money as valuations rose. The fund earned some wins, selling a stake in India e-commerce company Flipkart to Walmart and making money on an investment in publicly-traded chipmaker Nvidia. But as more than one company with billions of dollars in Vision Fund cash and no profits began to crater last year, the Silicon Valley community quickly turned against him. You can read the full story here: Masa Son is facing one of his biggest challenges yet as the SoftBank Vision Fund racks up billions in losses. 12 insiders reveal where it all went wrong. Lastly, if you didn’t catch the first installment of Starting Up, Business Insider’s interview show, you should check out Drake Baer’s conversation with Slack cofounder and CTO Cal Henderson. Below are headlines on some of the stories you might have missed from the past week. Stay safe, everyone. — Matt
3 May 15:47 • Business Insider Nederland • https://www.businessinsider.nl/top-business-stories-this-week-the-office-payments-masa-son-2020-5/Rating: 0.30
The future of the office, how we'll shop and pay, and Masa Son's biggest challenge
Hello! As the curve flattens in many parts of the world and the movement to reopen the economy gains steam, I keep finding myself thinking about this seating plan. As Holly Secon reported this week, 44% of workers on one floor of a South Korean call centre got the coronavirus. The desks coloured blue show where employees with confirmed cases sat. For some of you, that seating plan might look a little like your bank of desks at the office. It certainly looks like mine. A number of Business Insider reporters this week delved in to what a return to work might look like, and how offices will have to be reconfigured to make a return possible: There are other questions beyond whether we’ll go back to the office, when, and what it might look like. How will we shop? How will we pay? What felt normal in February – queueing for Chipotle in a packed restaurant and paying by bank card – now feels anachronistic. Where did it all go wrong for Masayoshi Son? From Dakin Campbell’s story: In 2017, Son, the founder and CEO of SoftBank, upended the tech establishment with the creation of the $US100 billion Vision Fund, the largest venture-capital fund in history. Over the next two years, it would deploy $US75 billion across 88 investments, with Son holding an outsized voice on the three-person investment committee. Son earned a reputation among some venture capitalists and entrepreneurs who saw him pressuring founders into taking more money than they needed, elbowing aside coinvestors, and warping markets by seemingly pushing for growth at all costs. Venture capitalists kept investing alongside him, and founders took the money as valuations rose. The fund earned some wins, selling a stake in India e-commerce company Flipkart to Walmart and making money on an investment in publicly-traded chipmaker Nvidia. But as more than one company with billions of dollars in Vision Fund cash and no profits began to crater last year, the Silicon Valley community quickly turned against him. You can read the full story here: Masa Son is facing one of his biggest challenges yet as the SoftBank Vision Fund racks up billions in losses. 12 insiders reveal where it all went wrong. Lastly, if you didn’t catch the first instalment of Starting Up, Business Insider’s interview show, you should check out Drake Baer’s conversation with Slack cofounder and CTO Cal Henderson. Below are headlines on some of the stories you might have missed from the past week. Stay safe, everyone. — Matt
3 May 13:33 • Business Insider Australia • https://www.businessinsider.com.au/top-business-stories-this-week-the-office-payments-masa-son-2020-5Rating: 0.30
The future of the office, how we'll shop and pay, and Masa Son's biggest challenge, Business Insider - Business Insider Singapore
Hello! As the curve flattens in many parts of the world and the movement to reopen the economy gains steam, I keep finding myself thinking about this seating plan. As Holly Secon reported this week, 44% of workers on one floor of a South Korean call center got the coronavirus. The desks colored blue show where employees with confirmed cases sat. For some of you, that seating plan might look a little like your bank of desks at the office. It certainly looks like mine. A number of Business Insider reporters this week delved in to what a return to work might look like, and how offices will have to be reconfigured to make a return possible: There are other questions beyond whether we’ll go back to the office, when, and what it might look like. How will we shop? How will we pay? What felt normal in February – queueing for Chipotle in a packed restaurant and paying by bank card – now feels anachronistic. Where did it all go wrong for Masayoshi Son? From Dakin Campbell’s story: In 2017, Son, the founder and CEO of SoftBank, upended the tech establishment with the creation of the $100 billion Vision Fund, the largest venture-capital fund in history. Over the next two years, it would deploy $75 billion across 88 investments, with Son holding an outsized voice on the three-person investment committee. Son earned a reputation among some venture capitalists and entrepreneurs who saw him pressuring founders into taking more money than they needed, elbowing aside coinvestors, and warping markets by seemingly pushing for growth at all costs. Venture capitalists kept investing alongside him, and founders took the money as valuations rose. The fund earned some wins, selling a stake in India e-commerce company Flipkart to Walmart and making money on an investment in publicly-traded chipmaker Nvidia. But as more than one company with billions of dollars in Vision Fund cash and no profits began to crater last year, the Silicon Valley community quickly turned against him. You can read the full story here: Masa Son is facing one of his biggest challenges yet as the SoftBank Vision Fund racks up billions in losses. 12 insiders reveal where it all went wrong. Lastly, if you didn’t catch the first installment of Starting Up, Business Insider’s interview show, you should check out Drake Baer’s conversation with Slack cofounder and CTO Cal Henderson. Below are headlines on some of the stories you might have missed from the past week. Stay safe, everyone. — Matt
3 May 13:33 • www.businessinsider.sg • https://www.businessinsider.sg/top-business-stories-this-week-the-office-payments-masa-son-2020-5Rating: 0.30
Coronavirus: McDonald's seeks rent cut from UK landlords
3 May 14:36
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3 articles
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Coronavirus: McDonald's seeks rent cut from UK landlords
McDonald's is in talks with some of its landlords in the UK about cutting rent payments as the fast food chain prepares to reopen some of its sites. Businesses face their next quarterly rent bill on 24 June when they are due to pay for the next three months. McDonald's said it has paid in full for the current quarter. However, it said that "given the unprecedented situation", it was in talks with landlords about how they could "offer support" on rent. McDonald's has closed all its outlets in the UK because of the coronavirus pandemic. A spokesman for the company said: "We have opened dialogue with some of our landlords to discuss how they might offer support on rent and service charges for a short period due to our restaurants not trading." McDonald's plans to reopen 15 outlets in the UK for delivery only services on 13 May. Other food chains such as Burger King and Yo! Sushi did not pay rent to landlords in the UK when it fell due in March. The government has implemented some measures to help businesses who are struggling to pay their rent. But shopping centre-owner Intu said recently that it was considering legal action against some big brands who have money but are "not engaging" in rent negotiations. Intu, which owns Manchester's Trafford Centre and the Lakeside in Essex, declined to name the brands. In April, the British Retail Consortium and the British Property Federation both wrote to Chancellor Rishi Sunak seeking more support for shops and landlords. They want the government to support a "furloughed space grant scheme" where businesses would pay some rent, landlords would agree to a reduction and the state would make-up the shortfall. A spokesman for the Treasury said: "We recognise the current challenges facing commercial landlords and the significant impact recent changes are having on their business models. We also recognise that many landlords are working closely with tenants to find solutions that work for both parties." "Our package of support for businesses currently includes our new bounce back loans, which provide quick and easy support for eligible companies that is interest-free for the first 12 months, our job retention scheme and other measures such as protecting commercial tenants from eviction." Last week, McDonald's revealed that the coronavirus outbreak had sent first quarter like-for-like sales down 3.4%. It said around three quarters of its outlets across the world remained opened and were serving people via drive-throughs, delivery or takeaway services. But the UK is among a few of its markets where it has temporarily closed all of its sites. Others include France, Italy and Spain.
3 May 14:36 • BBC News • https://www.bbc.co.uk/news/business-52520109Rating: 4.85
Superdrug becomes latest retailer to slash rent payments to landlords
Superdrug, the UK high-street health and beauty chain owned by one of Asia’s richest tycoons, has slashed its rent payments despite keeping a number of its stores open during the coronavirus crisis. In a letter addressed to its landlords on April 22 and seen by the Financial Times, the company states its intention “to reduce our lease payments to 25 per cent of our passing rent commencing from the next due rental date for a minimum period of three months”. “For the avoidance of doubt, this is a rent reduction as opposed to a rent deferment,” the letter adds. Retail tenants on high streets and in shopping centres have struggled during a nationwide lockdown that has sharply reduced the numbers of shoppers. Many have withheld rent as a result. Four weeks after payment was due for the three months to June 24, just 55 per cent of rent owed by retailers in the UK had been paid, according to data compiled by Remit Consulting. Most businesses withholding payments are those that have been forced to shut due to government guidelines. But some retailers that have been allowed to remain open have also stopped or reduced payments, including pharmacy chain Boots and discount chain Poundstretcher. The government has taken steps to protect commercial tenants, banning evictions for three months from March 23 and restricting landlords from using “aggressive” measures to collect unpaid rent a month later. However, the new rules have been used by some tenants “as an excuse to simply withhold payment”, said Steph Yates, senior consultant at Remit Consulting. “A situation seems to be evolving where there are some tenants who genuinely can’t pay while others are simply choosing not to pay,” she added. Superdrug, which has more than 800 stores in the UK, is owned by AS Watson, a global health and beauty group controlled by billionaire Hong Kong tycoon Li Ka-shing that had revenues of more than €10bn last year. The company declined to state how many of its stores have remained open during lockdown. In a statement to the FT, Superdrug said UK high streets had faced “an unprecedented decline in footfall”. AnalysisUK retail industryFive ways coronavirus will change British retail “During this period of lockdown . . . we continue to incur the full costs of our store estate and we have paid our second quarter rent and service charges in full,” it added. “We are now seeking rent reductions across our store estate. We have longstanding partnerships with many of our landlords and trust that we have their support to ensure that both parties may continue to grow and thrive post the Covid-19 pandemic.” Boots, which is owned by US-listed Walgreens Boots Alliance and is Superdrug’s main rival in the UK, has also reduced some payments. The Nottingham-based group has withheld rent for the March-June quarter on about 25 per cent of its stores that are owned by large commercial landlords, pending negotiations about sharing the burden of sharply reduced revenue, but said it continued to pay rent on the rest of its estate that is owned by individual or smaller landlords. Superdrug may have been influenced by Boots’ decision, said one commercial property agent who did not wish to be named and whose clients include a number of Superdrug landlords. But he added: “To cut rent unilaterally in that way lacked a bit of class.” Other AS Watson subsidiaries have also been seeking to extract concessions from landlords. Perfume shop ICI Paris XL withheld rent payments for April from 155 Dutch landlords, prompting one landlord to launch legal proceedings against the European division of AS Watson. Pieter van Loon, who owns about 30 shops in Dordrecht and has ICI Paris XL as a tenant, launched proceedings in early April to claim the €9,474.72 in rent he was owed. Like Superdrug, ICI Paris XL informed its landlords of its intentions via a letter, which Mr van Loon said came as a surprise. He eventually reached an agreement with AS Watson.
3 May 11:00 • Ft • https://www.ft.com/content/5cce6cb1-4e19-4101-a874-8b8ca04ae548Rating: 2.96
May Is The Month Of Reckoning For Retail Landlords, Tenants
It’s May and this is the month of reckoning for retailers and their landlords. With malls and stores across the country closed since March, and half of those stores in default on their April rent, retailers and landlords have tough decisions to make. This month, if they can’t find a way to share the pain, they risk mortally wounding each other. As the COVID-19 pandemic shut down non-essential retail, and restaurants, movie theaters and entertainment venues, landlords have responded in different ways. Some have taken a hard line, taking non-paying retailers to court. Some have offered to defer rent payments until the stores reopen, or to let tenants spread out missed payments over the course of a year or more. And some have proactively decided to forgive all or part of the rent and fees during the shutdown period. ‘Compassionate capitalism’ Ophir Sternberg, founder and CEO of Lionheart Capital, LLC, is giving retail tenants of his retail real estate subsidiary, Out of the Box Ventures, LLC, a break on rent in April and May. Out of the Box, which has 30 retail properties in 17 states, is forgiving 60 to 70% of tenant’s typical rent during April and May, and asking them to only pay the landlord’s fixed costs - the common area maintenance (CAM) charges and property taxes. Tenants will not have to repay the forgiven rent after stores reopen. Sternberg said he made the rent-forgiveness decision as stores began shutting down and he saw “there was a battle brewing between a lot of retail landlords and their tenants.” “I thought that was not the right approach, especially not in this type of crisis,” Sternberg said. “We should all be working together. If we’re going to come out of this stronger than we really have to work together,” he said. By making the offer, which Sternberg said will apply to between 400 and 500 tenants, Out of the Box is foregoing its typical profits for the two months. He calls the strategy “compassionate capitalism,” and says survival depends on landlords realizing “we are in the same boat as our tenants. Their success is our success.” If the closings extend beyond May, “we’ll revisit and have some further conversations with our tenants and see what we can do,” he said. Bedrock LLC, the Detroit real estate company owned by Quicken Loans founder Dan Gilbert, is suspending all rent and fees for the small business retail and restaurant tenants in its portfolio of downtown stores for April, May, and June. “We wanted to give people the confidence that they could start working on the relaunch of their business” rather that have to worry about their immediate cash flow, Matt Cullen, Bedrock CEO told Crain’s Detroit Business. A more common offer from landlords is rent deferrals. Unibail Rodamco Westfield, which owns powerhouse U.S. malls including Garden State Plaza in New Jersey, told tenants they could delay paying their April rent for 90 days, or through July 1. Even the landlords, like Taubman Centers, that have notified tenants that they are expected to pay rent even while the malls are closed, are leaving the door open for negotiation, saying through a spokesperson that it is willing to talk to retailers about their challengesand help them come up with a plan. ‘I am my retailers’ partner’ The crisis has highlighted the symbiotic relationship of retail tenants and landords, said Yaromir Steiner, founder and CEO of Steiner + Associates, which has developed more than 9 million square feet of mixed use space, and owns Easton Town Center in Columbus, Ohio. There are two kinds of retail real estate now, Steiner said: Need-based, or replenishment retail properties, with retailers such as Walmart or Kroger, and want-based, or discretionary retailers such as the typical mall and lifestyle tenants. In the want-based real estate of malls, the tenant pays a higher rent and the landlord, in turn, spends to draw customers and drive up the retailer’s sales. “In the want kind of environment, I make lots of investments to attract the customer, to keep the customer, to beautify the project,” he said. “Why am I doing this? Because I am my retailers’ partner. I need to make sure that people love coming here to spend their discretionary dollars. My retailers, in return, say ‘Ok, you are delivering me the higher volume of sales, I have no problem paying the higher rent’.” “Because we have a symbiotic relationship, the death of either one of us will not be beneficial to the other one,” he said. “We succeed and fail together.” That means, Steiner said, that retailers who have the ability to pay rent must pay, to keep the mall and retail ecosystems alive. Landlords, in turn, can forego their return on capital during the crisis in order to make some concessions to tenants, or to allow tenants to defer payments. Most leases, Steiner said, put the landlord in a strong legal position to demand rent, and to take action against non-paying tenants. While some retailers have claimed that the pandemic is a force majeure that eliminates their obligation to pay rent, most of the leases Steiner has with his tenants “have crystal clear language that force majeure does not allow for non-payment of rent.” But nobody wants to be tied up in lawsuits or incur legal fees at this time, Steiner said. “That’s another reason why we need to work together.” ‘Everybody’s a troubled retailer now’ Andy Graiser, co-president of A&G Real Estate Partners, a Melville, N.Y. real estate advisory firm, agrees that legal battles and evictions are the last thing landlords want now. “The cost of replacing these tenants is not going to be cheap,” Graiser said. “There’s going to be a lot of down time. When landlords factor in broker’s fees, and new tenant construction costs, “you’re probably better served by working with the retailers you have to keep them going,” he said. Retailers who were struggling before the shutdowns began may not be able to be saved, he said, but landlords who get too aggressive with viable tenants “may overplay their hand a little too much and it may just force the retailer into an early bankruptcy,” he said. A&G is getting calls from numerous retailers looking for advice on how to manage their lease obligations at a time when stores are closed and no sales are taking place. “We’ve been doing this type of work for 29 years for troubled retailers but right now almost everybody’s a troubled retailer,” Graiser said. Retailers and landlords, he said, are engaged in a bit of a staring contest, with each side trying to preserve their rights, in order to protect their bargaining position in negotiations. “For the month of April we’re seeing a lot of landlords just reserving their rights and sending out default letters. It’s almost like checking a box,” he said. The most common concession landlords are offering at this point is to defer rent, and to allow retailers to pay it back in 12 equal payments starting next year, Graiser said. But “we’re in early innings,” still, he said. The real negotiations may start after stores reopen and “the landlord realizes they might be only doing 20 to 30% of their sales. I think at that time there might be a more holistic discussion to fix everything to make sure the retailer can operate.” ‘If they don’t take care of their tenants, they don’t have a business’ The rent forgiveness offer from Out of the Box Ventures “definitely helped out a lot,” said Matt Jeffery, owner of five Vendors Village stores in Indiana and Kentucky, including one in the Haute City mall in Terra Haute, IN owned by Out of the Box. Jeffery said some of his landlords have been more understanding than others, but “Out of the Box has been the most proactive of anybody.” Jeffery, in turn, is not making the vendors who rent booths to sell collectibles, crafts, and other goods in his stores pay rent while the stores are closed. “The people at Out of the Box realize the same thing that I realize, that if we don’t take care of our vendors, we don’t have a business,” Jeffery said. “If they don’t take care of their tenants, they don’t have a business.” Graiser of A&G believes the retailer-landlord standoffs will come to a head this month. “Because the May rent will not be paid. So they have to start coming together because at that point they will be two months delinquent,” he said. “People will be coming together in May, and if they don’t I think we’ll start seeing a bunch of bankruptcies starting in June.”
3 May 00:00 • Forbes • https://www.forbes.com/sites/joanverdon/2020/05/03/may-is-the-month-of-reckoning-for-retail-landlords-tenants/Rating: 4.41
Israel’s Biggest Energy Company Hit With ‘Going Concern’ Warning
3 May 10:26
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Israel’s Biggest Energy Company Hit With ‘Going Concern’ Warning
Sign up here for our daily coronavirus newsletter on what you need to know, and subscribe to our Covid-19 podcast for the latest news and analysis. Delek Group Ltd., Israel’s largest energy company, received an auditors’ warning about its ability to repay debt as it scrambles to placate creditors in the wake of the coronavirus pandemic. The questions about Delek’s ability to continue as a “going concern” were included in the company’s fourth-quarter earnings report on Sunday. Delek, controlled by investor Yitzhak Tshuva, estimates it will reach a deal on the terms of its credit, and plans to raise 400 million shekels ($114 million) this year to shore up its finances, Delek said in a statement. It’s already carried out asset sales of more than 450 million shekels that were used to pay back loans, and decided to cut capital expenditures for 2020 in half to $125 million. Banks and bondholders have been pressuring Delek for repayment of its debt after company shares started tanking in early March, just as the coronavirus spread to most of the world. Delek is on the hook for 2.8 billion shekels of debt this year, according to data compiled by Bloomberg. Delek joins a host of energy firms facing a shaky future with demand for oil shrinking by 30% to 40% this year since prices for the commodity tumbled. Delek shares have dropped 70% this year.
3 May 10:26 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/israel-s-biggest-energy-company-hit-with-going-concern-warningRating: 4.04
Israel's Biggest Energy Company Hit With 'Going Concern' Warning
By Yaacov Benmeleh (Bloomberg) — Delek Group Ltd., Israel’s largest energy company, received an auditors’ warning about its ability to repay debt as it scrambles to placate creditors in the wake of the coronavirus pandemic. The questions about Delek’s ability to continue as a “going concern” were included in the company’s fourth-quarter earnings report on Sunday. Delek, controlled by investor Yitzhak Tshuva, estimates it will reach a deal on the terms of its credit, and plans to raise 400 million shekels ($114 million) this year to shore up its finances, Delek said in a statement. It’s already carried out asset sales of more than 450 million shekels that were used to pay back loans, and decided to cut capital expenditures for 2020 in half to $125 million. Banks and bondholders have been pressuring Delek for repayment of its debt after company shares started tanking in early March, just as the coronavirus spread to most of the world. Delek is on the hook for 2.8 billion shekels of debt this year, according to data compiled by Bloomberg. Delek joins a host of energy firms facing a shaky future with demand for oil shrinking by 30% to 40% this year since prices for the commodity tumbled. Delek shares have dropped 70% this year. ©2020 Bloomberg L.P. Bloomberg.com
3 May 10:46 • Financial Post • https://business.financialpost.com/pmn/business-pmn/israels-biggest-energy-company-hit-with-going-concern-warningRating: 0.94
Israel's Delek fourth-quarter loss widens, auditors place 'going concern' warning
TEL AVIV (Reuters) - Israeli conglomerate Delek Group reported a wider loss in the fourth quarter and its auditors placed a "going concern" warning on the company due to the impact from the coronavirus outbreak and steep drop in oil prices in April. Debt-laden Delek, which last year bought Chevron (NYSE:CVX)'s British North Sea (NYSE:SE) oil and gas fields for $2 billion, said on Sunday it lost 311 million shekels ($89 million) in the final three months of 2019, compared with a loss of 219 million a year earlier as finance expenses widened. Delek, whose stock price and bond prices have been hit hard this year, is in talks with bond and other credit holders to negotiate a settlement. The company, which holds key stakes in Israel's two main natural gas fields, has sold a number of assets to raise cash and said it was seeking to sell its holdings in its Delek Israel unit as well as to receive royalties in two smaller gas sites. Delek's "auditors have added to the financial statements a note drawing attention to the issue of 'going concern'," it said, noting it expects "to reach an agreed plan concerning an update of the financial covenants and credit terms, strengthening of the collateral and reinforcing its capital." Bondholders, concerned over the firm's financial situation, have threatened to call for Delek to repay all of the 6 billion shekels owed them if the company did not immediately inject 400 million shekels to shore up its balance sheet. CEO Idan Wallace said that in recent months, the global energy sector has experienced unparalleled and extreme volatility but that Delek "is a strong company with quality assets and a clear positive net asset value." ($1 = 3.5055 shekels)
3 May 00:00 • Investing.com • https://www.investing.com/news/stock-market-news/israels-delek-fourthquarter-loss-widens-auditors-place-going-concern-warning-2158958Rating: 0.30
Saudi Stocks Slump as Minister Warns of ‘Painful’ Measures Ahead
3 May 07:37
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Saudi Stocks Slump as Minister Warns of ‘Painful’ Measures Ahead
Saudi Arabian stocks dropped the most in almost eight weeks after the kingdom’s finance minister said “painful” measures -- including deep spending cuts -- were needed to respond to the coronavirus crisis and crash in oil prices. The Tadawul All Share Index closed down 7.4%, the most since March 9. Oil giant Saudi Aramco retreated 5.2% to 30 riyals per share, while major lenders including Al Rajhi Bank, National Commercial Bank and Saudi British Bank plunged at least 6.7%. The world’s biggest oil exporter hasn’t witnessed “a crisis of this severity” in decades, Mohammed Al-Jadaan said in an interview with Saudi television station Al-Arabiya on Saturday, adding that government spending will have to be cut “very deeply.” His comments were a sharp change in tone from more reassuring remarks he gave about the economy one week before. Al-Jadaan “is the voice of the Saudi government and leadership,” said Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital Ltd. in Abu Dhabi. Investors “took it as a warning of much higher spending cuts to come than the original 20%-30% expected earlier in the crisis.” On Friday, the government’s outlook was cut to negative from stable by Moody’s Investors Service, citing “increased downside risks to Saudi Arabia’s fiscal strength.” The rating was kept at A1, the fifth-highest, and one level above that of Fitch Ratings. The collapse in crude prices and the government’s drawdown of foreign reserves is putting more pressure on the Saudi riyal. Still, prices for 12-month dollar-riyal forward contracts are well short of their all-time high reached in 2016. A currency devaluation would be too costly for Saudi Arabia and the better option is to adapt to the oil shock through fiscal changes, according to Goldman Sachs Group Inc. Read more: Goldman Says Saudi Fiscal Adjustment Preferable to a Devaluation Read more comments on Saudi Arabia and Middle Eastern markets: — With assistance by Paul Abelsky
3 May 07:37 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/saudi-stocks-slump-as-minister-warns-of-painful-measures-aheadRating: 4.04
Jadaan: Saudi Arabia to Take Strict Measures to Deal with Virus Impact
Saudi Finance Minister Mohammed al-Jadaan said on Saturday that Riyadh will take strict measures to deal with the economic impact of the coronavirus pandemic, adding that "all options for dealing with the crisis are open". "We must reduce budget expenditures sharply", Jadaan said in an interview with Al Arabiya TV, adding that the impact of the new coronavirus on Saudi Arabia's state finances will appear from the second quarter of the year. "Saudi finances need more discipline and the road ahead is long," he said. Jadaan said Saudi Arabia had used some revenue from investments to plug the deficit. He noted the country had introduced stimulus measures aimed at preserving jobs in the private sector and safeguarding the provision of basic services.
3 May 04:45 • Asharq AL-awsat • https://aawsat.com/english/home/article/2264971/jadaan-saudi-arabia-take-strict-measures-deal-virus-impactRating: 2.10
Painful steps ahead to fight economic downturn — Al Jadaan
By Ismaeel Naar, Joanne Serrieh and Omar ElkatouriDUBAI — Saudi Arabia is committed to protecting itself from the economic fallout of the coronavirus through any necessary financial measures despite plunging oil revenues, Finance Minister Mohammed Al-Jadaan told Al Arabiya on Saturday.Earlier this week, the Kingdom reported that its budget had fallen into a $9 billion deficit after oil revenue plunged amid a global oversupply of crude due to the coronavirus pandemic.Despite oil being Saudi Arabia’s largest revenue, the Kingdom maintains significant reserves and has vast untapped borrowing potential.While Al-Jadaan acknowledged that the unprecedented global economic impact of the coronavirus would also hit the Kingdom, he said that it was committed to taking the necessary measure to mitigate the fallout — including reducing expenditure and regulating public finance more.“The Kingdom is committed to the task of sustaining public financing, and is committed to having enough financial strength to face this crisis even if it is prolonged. We have taken several steps both in relation to health, and in relation to financial measures in terms of reducing expenditure.“Right now, we are looking at what we can do to reduce the deficit level. Certainly, there has been a significant drop in revenues, and we will likely see its impact in the coming quarters,” Al-Jadaan said during an exclusive interview with Al Arabiya.'Studying several options'The Saudi Arabian Monetary Authority (SAMA) said late on Tuesday foreign assets fell in March to $464 billion, the lowest in 19 years, as the Kingdom moves to combat the economic fallout of the virus.Al-Jadaan said that authorities in Saudi Arabia are currently studying several options aimed at mitigating the damage caused by the coronavirus. The minister added that the drop in both oil and non-oil revenues will be seen further in the coming quarters.“We began the year with oil prices higher than $60 per barrel, these days we’re seeing the numbers near $20. This huge drop leads to a more than 50 percent drop in oil revenues,” he said.Saudi Arabia has implemented various policies to control the spread of the virus, including implementing a lockdown on most of the Kingdom, imposing a curfew to limit public movement and shutting incoming international travel.While important, these measures have also had a negative impact on the non-oil economy, as businesses remain closed and people are told to stay at home.“With non-oil revenues, due to the precautionary measures, they will be dropping as there is a huge reduction in economic activity and as a result, the non-oil revenues will drop.“We must deal with this wisely and efficiently and with God’s will the Kingdom will be looking at several options to face a pandemic the world has never seen the likes of for more than 70 years, since nearly World War II. At a global level, this level of pandemic has never been seen before,” Al-Jadaan said.The minister said last week the Kingdom would limit the amount of money it would take from its reserves to a maximum of $32 billion. Instead, the Kingdom will take advantage of its mostly untapped ability to borrow, and issue $60 billion of debt.“We will continue to take loans, and we have seen a large demand on government debt securities, internally or externally. As per the plan we will take loans up to SR220 billion, as per the conditions in the market and the available liquidity,” he said.Al-Jadaan added that he does not believe the Kingdom, or the world, will return to pre-coronavirus economic conditions, mainly as a result of the pandemic’s impact on economic activities and supply chains globally.'Steps taken will be painful'Discussing Saudi Arabia’s economic challenges, Al-Jadaan said that the Kingdom’s economy still depends greatly on public spending and it will therefore continue to maintain public finance to support the economy in the near future. However, he added that his ministry believes more regulations are needed to sustain the measures.“Public finance needs to be regulated more. The government has worked over the last four to five years on big regulations to regulate public finance and lower the deficit, but we still have a long way to go.“We will reduce expenditure, if God wills, even if some of the steps taken will be painful, but they are for the benefit of everyone, for the benefit of the country and for the benefit of the citizens,” Al-Jadaan said.In order to maintain and sustain public financing, the minister said that the government plans on redirecting some public funds to support the health sector in the coming quarters.“The government must take different measures than it previously has. There must be a limit to spending, redirecting parts of it to providing health services for the nationals and residents, and facing the results of the major shock in returns, whether that’s the result of major limitations on people in terms of restricting movement and economic activities. Therefore, its repercussions on demand of raw materials including petrol and the major drop in prices,” he said.Projects delayedAl-Jadaan explained the Kingdom is currently considering delaying some projects as a result of the impact.“As a result of the precautionary measures, therefore, we will reduce spending on them. Projects, whether major ones or some programs for achieving the (Vision 2030), that are, in their nature, a result of the precautionary measures, require delaying its implementation, therefore reducing the spending,” Al-Jadaan said.The finance minister said the Kingdom is also considering other items to limit spending, provided they do not affect people’s basic services.“We’re also considering other items, as long as we don’t touch basic services for the people, all options are open. And, the government is currently studying the effect of these options and will therefore decide based on it and we will make recommendations soon,” he confirmed. — Al Arabiya English
2 May 22:50 • Saudi Gazette • https://saudigazette.com.sa/article/592612/SAUDI-ARABIA/Painful-steps-ahead-to-fight-economic-downturn-Al-JadaanRating: 0.30
GCC markets in red as Saudi Arabia warns of ‘painful’ times ahead
Dubai: Gulf stock markets were trading deep in the red on Sunday, with the region’s largest bourse – Saudi Arabia’s Tadawul – leading declines, after the kingdom warned of a much harsher COVID-19 hit to its economy. Dubai Financial Market (DFM) index dropped 3.96 per cent to 1,946 points, while Abu Dhabi Securities Exchange (ADX) fell 2.95 per cent to 4,105 points, with losses exasperating minutes after Tadawul plunged over 7 per cent. Saudi Arabia will need to take “painful” measures and look for deep spending cuts as the kingdom faces a double crisis caused by the coronavirus pandemic and the meltdown in global oil markets, its finance minister said on Saturday. Investors elsewhere in the GCC were worried that more countries in the region will follow suit in implementing stringent measures against the growing virus outbreak in the days and months ahead. “The kingdom hasn’t witnessed a crisis of this severity over the past decades,” Mohammed Al-Jadaan said in an interview with Saudi television station Al-Arabiya. “It’s very important that we take very tough and strong measures, and they might be painful, but they’re necessary.” Investors were particularly jolted as the stance taken by the kingdom was a sharp reversal from just over a week ago. The finance minister's remarks then were reassuring, when he reiterated the kingdom had been through similar crises before, “maybe even worse,” and would pass through this one as it had others. In contrast, on Saturday, Al-Jadaan said that government spending would need to be “cut deeply”, while adding that the list of budget items that will be affected is “very long”. Some programs under the kingdom’s “Vision 2030” -- Prince Mohammed bin Salman’s economic diversification plan -- will also face spending cuts as their implementation is delayed by measures taken to slow the spread of the virus, Al-Jadaan warned. Worsening sentiment in the region were more downward rating revisions. International ratings agency Moody's Investors Service on Thursday revised Saudi Arabia's outlook to negative on Saturday. The world’s largest oil exporter is bracing for a bigger hit from the oil price rout and production cuts negotiated by OPEC and its allies. The price of Brent crude crashed by more than 50 per cent in March, contributing to a record $27 billion monthly drop in the Saudi central bank’s net foreign assets. The Saudi benchmark plunged as much as 7 per cent in early Sunday trading, while Boursa Kuwait dropped 1.5 per cent and the Qatar Stock Exchange slipped nearly a per cent. The indices in Bahrain and Muscat were trading relatively flat on Sunday. The ratings agency also changed the outlook for Dubai’s largest listed developer Emaar Properties and its unit Emaar Malls Group to negative from stable, citing the impact of the coronavirus pandemic. Last month, S&P Global Ratings placed Emaar Properties and Emaar Malls on creditwatch with negative implications. The Dubai real estate sector has for years struggled with oversupply and sluggish economic growth. On the DFM, Emaar Properties slumped 4.7 per cent in early trade, with its spin-offs Emaar Development and Emaar Malls recording similar sized losses as well. Also among top decliners were Dubai Islamic Bank which dropped over 4 per cent. On the Abu Dhabi bourse, lenders and real estate firms followed suit, with ADIB dropping 4.4 per cent and Aldar Properties down 4.9 per cent. Lender ADCB fell 2.2 per cent. Markets were also weighed by renewed wider geopolitical concerns, particularly as the trade relations between the US and China were back in the spot light, worsening after President Donald Trump threatened new tariffs on China.
3 May 07:47 • Gulf News • https://gulfnews.com/business/markets/gcc-markets-in-red-as-saudi-arabia-warns-of-painful-times-ahead-1.71302402Rating: 3.21
Saudi Arabian Finance Minister Says Real Impact of COVID-19 Expected in Second Quarter of 2020
BEIRUT (Sputnik) - The full impact of the coronavirus pandemic will reveal itself in the second quarter of this year, Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said in an interview with local media. According to Al-Jadaan, Saudi Arabia is considering a wide range of "strict and painful measures" to cut spending. Al-Jadaan said that Saudi Arabia, as well as the world as a whole, will not return to what it was like before the coronavirus pandemic and suggested that economic processes will undergo significant changes. In April, Saudi Arabian Finance Minister Mohammed Al-Jadaan said that his country was dealing with the COVID-19 pandemic and the resulting significant drop in oil revenues from a position of strength, since serious reforms had been carried out in the country in recent years, while also indicating that Saudi Arabia had enough of a buffer to deal with the low prices. As of 2 May, 3,272,202 people have contracted the novel coronavirus, with over 230,000 fatalities registered, the World Health Organization count shows. According to data from the Johns Hopkins University Coronavirus Resource Centre, more than 3.4 million COVID-19 cases have been confirmed globally since the start of the pandemic in December of last year. The global death toll from the viral disease stands at over 242,000.
2 May 22:01 • Sputniknews • https://sputniknews.com/middleeast/202005021079176353-saudi-arabian-finance-minister-says-real-impact-of-covid-19-expected-in-second-quarter-of-2020/Rating: 3.96
Saudi to take 'strict, painful' measures to deal with coronavirus impact
RIYADH — Saudi Arabia will take strict and painful measures to deal with the economic impact of the coronavirus pandemic, the finance minister said on Saturday, adding that “all options for dealing with the crisis are open.” “We must reduce budget expenditures sharply,” Mohammed al-Jadaan said in an interview with Al Arabiya TV, adding that the impact of the new coronavirus on Saudi Arabia’s state finances will appear from the second quarter of the year. “Saudi finances need more discipline and the road ahead is long,” he said. One measure would be to slow down government projects, including mega-projects, to reduce spending, he said. The world’s largest oil exporter is suffering from historically low oil prices, while measures to fight the coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman. Saudi Arabia’s central bank foreign exchange reserves fell in March at their fastest rate in at least 20 years, hitting their lowest level since 2011, while the kingdom slipped to a $9 billion budget deficit in the first quarter as oil revenue collapsed. Jadaan said last month that Riyadh could borrow $26 billion more this year while it would draw down up to $32 billion from its foreign reserves to finance the deficit. On Saturday Jadaan told Al Arabiya Saudi Arabia had used some revenue from investments to plug the deficit, and that the crisis presented investment opportunities. Jadaan noted the country had introduced stimulus measures aimed at preserving jobs in the private sector and safeguarding the provision of basic services. (Reporting by Lisa Barrington, Marwa Rashad, Ahmed Tolba and Samar Hassan; Writing by Lisa Barrington; Editing by Nick Macfie, David Holmes and Daniel Wallis)
2 May 20:42 • Financial Post • https://business.financialpost.com/pmn/business-pmn/saudi-to-take-strict-painful-measures-to-deal-with-coronavirus-impact-3Rating: 0.94
Saudi Arabia announces 8 coronavirus deaths
JEDDAH: The economic challenges of the coronavirus pandemic are great and neither Saudi Arabia nor the world will be the same when it is over, the Kingdom’s Finance Minister Mohammed Al-Jadaan said on Saturday. Saudi Arabia would take strict and painful measures to deal with the impact, and “all options for dealing with the crisis are open,” the minister said in an interview with Al-Arabiya TV. “We must reduce budget expenditures sharply,” Al-Jadaan said, and some government projects may be slowed down to reduce expenditure. Al-Jadaan said that citizens’ welfare and their benefit is top priority, but that some of the action taken will be “painful, but for everyone’s benefit.” “Current actions taken to date to cut spending are not enough, and Saudi public finances will need more control and the journey ahead is long. This section contains relevant reference points, placed in (Opinion field) “Expenses must be reduced to cope with the fallout from coronavirus and we need to be careful not to increase the cost of debt.” “We are currently reviewing a set of initiatives to support the economy, the private sector and the health sector. Revenues have declined dramatically and are expected to continue to decline over this year and possibly until the beginning of the next fiscal year. Therefore we must be prepared, economically and financially, to confront this pandemic. “We have to plan for the worst, take matters seriously and shrink … in order to continue providing citizens and expats with services, and manage the government.” Al-Jadaan said that the Kingdom released economic support packages valuing SAR180 billion ($47.8 billion), but that it had used up SAR1 trillion from its reserves over the past four years. “The real impact of the coronavirus pandemic will appear in the second quarter, and we have to face a very big revenue shock,” he said. “We must tighten the belt and come out of the crisis strong.” The number of virus cases in the Kingdom reached 25,459 on Saturday, an increase of 1,362, and the death toll rose by seven to 176. Worldwide, the virus has infected nearly 3.5 million people, and killed more than 240,000.
2 May 17:23 • Arab News • https://www.arabnews.com/node/1668646/saudi-arabiaRating: 1.72
CII for greater industrial activities in districts with high economic performance
3 May 12:51
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CII for greater industrial activities in districts with high economic performance
At a time when the government has decided to provide some relaxations in restrictions during the third phase of the nationwide lockdown starting from May 4, the Confederation of Indian Industry (CII) on Sunday called for a greater industrial activities in districts with high economic performance. The industry body also called for “economic contribution of districts to be taken into consideration while classifying lockdown zones.” “Districts with high economic activity should resume all industrial and business operations, including in containment zones, with highest safety protocols,” CII said in a report, ‘Strategy Note on Resumption of Economic Activities in Industrial Area.’ Also ReadLockdown 3.0 begins tomorrow with ‘considerable relaxations’; some curbs to continue The suggestions followed the notification, issued on May 1 by the Centre, on graded exit from the coronavirus- related lockdown. The third phase of lockdown necessitates “a focused strategy to minimise economic contraction due to Covid-19”, without compromising on efforts to control the contagion, the trade body said in a statement. “Prioritising districts with heavy presence of economic and industrial activities with continued operations, accompanied by strictest precautions, can help enterprises to remain financially sustainable while averting job losses,” CII Director General Chandrajit Banerjee said. The industry body also said while the protracted lockdown in the country, necessitated by the rapid spread of Covid-19, has also caused enormous stress to the financial sustainability of many businesses. In its strategy note, it requested that the top districts should be identified based on variables like their contribution to country’s GDP, or presence of industrial estates and clusters or registration of enterprises in a district. Instead of the current practice of categorising the entire district as a ‘Red zone’, the CII has suggested the need for classifying zones as ‘Containment’, ‘Orange’ and ‘Green’ within an industrial district. “Economic activities, in varying degrees of relaxation, should be permitted in all areas of this district, but health and safety protocols would differ from zone to zone,” it said. Also ReadAllow factories in containment zones to operate, says Food Processing industry The Containment zone may be a street, mohalla or factory building where positive cases have been detected, the industry body said. It has suggested that close surrounding areas can be classified as Orange zones, where industrial activity can be continued with strict precautionary measures and monitoring. The distinction of essential and non-essential items should be removed and all factories should be permitted to restart, the industry body said. “Aggressive measures are required to ensure that an industrial district moves from ‘Red’ to ‘Orange’ and ‘Green’ within 21 days. “The cost of undertaking precautionary measures by way of repeated sanitation, wearing of PPE, masks, monitoring, group testing etc. will be much less than the economic loss, if businesses in such high performing districts have to remain shut for longer duration,” Banerjee said. The government has permitted industrial estates, SEZ and industrial townships with restricted entry within urban areas of ‘red zones’ to commence operations. “CII submitted that all industrial units, including in non-notified industrial areas and standalone units, be allowed to function in urban areas. These should include non-essential goods and services as well,” the statement said. The body also called for limited public transport to function to enable workers and self-employed people to reach the industrial areas. ‘Green’ zones within an industrial district, on other hand, should be allowed to work with relaxed restrictions but in adherence to strict health and safety protocols prescribed by the authorities.
3 May 12:51 • BusinessLine • https://www.thehindubusinessline.com/economy/policy/cii-for-greater-industrial-activities-in-districts-with-high-economic-performance/article31494785.eceRating: 1.98
Allow districts with high economic activity to resume all industrial, biz operations: CII
Districts with substantial economic activity should be permitted to resume all industrial and business operations with highest safety protocols for enterprises to remain financially sustainable while averting job losses, CII said on Sunday. Confederation of Indian Industry (CII) called for economic contribution of districts to be taken into consideration while classifying lockdown zones. Districts with high economic activity should resume all industrial and business operations, including in containment zones with highest safety protocols, said CII in its report titled 'A Strategy Note on Resumption of Economic Activities in Industrial Areas', submitted to the government. Follow live updates on the coronavirus pandemic here The government notification of May 1 has permitted industrial estates, special economic zone (SEZ) and industrial townships with restricted entry within urban areas of red zones to commence operations. The industry body said that all industrial units, including in non-notified industrial areas and standalone units, be allowed to function in urban areas. These should include non-essential goods and services as well. It has recommended that close surrounding areas can be classified as orange zones where industrial activity can be continued with strict precautionary measures and monitoring. The distinction of essential and non-essential items should be removed and all factories should be permitted to restart, according to CII. "The third phase of lockdown necessitates a focused strategy to minimize economic contraction due to COVID-19, without compromising on efforts to control the contagion. Prioritising districts with heavy presence of economic and industrial activities with continued operations accompanied by strictest precautions can help enterprises to remain financially sustainable while averting job losses," CII Director General Chandrajit Banerjee said. While the protracted lockdown in the country, necessitated by the rapid spread of COVID-19, has helped in controlling the spread of epidemic and given us time to augment medical capacity, it has also caused enormous stress to the financial sustainability of many businesses, the chamber said. CII has requested that the top districts should be identified based on variables like their contribution to the country's GDP, or presence of industrial estates and clusters or registration of enterprises in a district. Instead of the current practice of classifying the entire district as a red zone, CII has suggested the need for classifying zones as Containment, Orange and Green within an industrial district. Economic activities, in varying degrees of relaxation, should be permitted in all areas of those districts, but health and safety protocols would differ from zone to zone, the chamber suggested. It said the containment zone may be a street, mohalla or factory building where positive cases have been detected. In containment zones, industrial units where no positive cases exist, can be allowed to operate if workers can be restricted to the premises or within walkable distance, as per the CII note. Raw materials and finished goods should be disinfected and kept separately for 72 hours before use as permissible by the health authorities. Maximum precautions and safety measures in the form of masks, repeated sanitation, restricted movement of people and vehicles, and group testing, among others, can be carried out regularly in such containment zones, noted CII. "Aggressive measures are required to ensure that an industrial district moves from Red to Orange and Green within 21 days. The cost of undertaking precautionary measures by way of repeated sanitation, wearing of PPE, Masks, monitoring, group testing etc. will be much less than the economic loss if businesses in such high performing districts have to remain shut for longer duration," said Banerjee. CII also called for limited public transport to function to enable workers and self-employed people to reach the industrial areas. Green zones within an industrial district, on other hand, should be allowed to work with relaxed restrictions but following strictly the health and safety protocols prescribed by the health authorities. There should be a real time availability of data on all types of zones within the industrial districts. The authorities may also provide updated information on Aarogya Setu app, other apps, local newspapers, radio, TV and online channels, according to the chamber. It also prescribed standard operating procedures for offices, workplaces, factories and establishments prior to resuming operations.
3 May 17:05 • Deccan Herald • https://www.deccanherald.com/business/business-news/allow-districts-with-high-economic-activity-to-resume-all-industrial-biz-operations-cii-833040.htmlRating: 2.25
CII For Greater Industrial Activities In Districts With High Economic Performance
India Business Written By Press Trust Of India | Mumbai | Updated On: May 03, 2020 16:39 IST At a time when the government has decided to provide some relaxations in restrictions during the third phase of the nationwide lockdown starting from May 4, the Confederation of Indian Industry (CII) on Sunday called for greater industrial activities in districts with high economic performance. The industry body also called for "economic contribution of districts to be taken into consideration while classifying lockdown zones". "Districts with high economic activity should resume all industrial and business operations, including in containment zones with highest safety protocols," CII said in a report, 'Strategy Note on Resumption of Economic Activities in Industrial Area'. The suggestions followed the notification, issued on May 1 by the government, on graded exit from the coronavirus-related lockdown. The third phase of lockdown necessitates "a focused strategy to minimise economic contraction due to Covid-19", without compromising on efforts to control the contagion, the trade body said in a statement. "Prioritising districts with heavy presence of economic and industrial activities with continued operations, accompanied by strictest precautions, can help enterprises to remain financially sustainable while averting job losses," CII Director General Chandrajit Banerjee said. The industry body also said while the protracted lockdown in the country, necessitated by the rapid spread of Covid-19, has also caused enormous stress to the financial sustainability of many businesses. In its strategy note, it requested that the top districts should be identified based on variables like their contribution to country's GDP, or the presence of industrial estates and clusters or registration of enterprises in a district. Instead of the current practice of categorising the entire district as a 'red zone', the CII has suggested the need for classifying zones as 'containment', 'orange', and 'green' within an industrial district. "Economic activities, in varying degrees of relaxation, should be permitted in all areas of this district but health and safety protocols would differ from zone to zone," it said. The containment zone may be a street, "mohalla" or factory building where positive cases have been detected, the industry body said. It has suggested that close surrounding areas can be classified as 'orange zones' where industrial activity can be continued with strict precautionary measures and monitoring. The distinction of essential and non-essential items should be removed and all factories should be permitted to restart, the industry body said. "Aggressive measures are required to ensure that an industrial district moves from 'red' to 'orange' and 'green' within 21 days. "The cost of undertaking precautionary measures by way of repeated sanitation, wearing of PPE, masks, monitoring, group testing etc. will be much less than the economic loss, if businesses in such high performing districts have to remain shut for longer duration," Banerjee said. The government has permitted industrial estates, SEZ and industrial townships with restricted entry within urban areas of 'red zones' to commence operations. "CII submitted that all industrial units, including in non-notified industrial areas and standalone units, be allowed to function in urban areas. These should include non-essential goods and services as well," the statement said. The body also called for limited public transport to function to enable workers and self-employed people to reach the industrial areas. 'Green' zones within an industrial district, on other hand, should be allowed to work with relaxed restrictions but in adherence to strict health and safety protocols prescribed by the authorities.
3 May 16:39 • Republic World • https://www.republicworld.com/business-news/india-business/cii-for-greater-industrial-activities-in-districts-with-high-economic-performance.htmlRating: 2.30
Lockdown | Allow districts with high economic activity to resume all industrial, business operations: CII
Districts with substantial economic activity should be permitted to resume all industrial and business operations with highest safety protocols for enterprises to remain financially sustainable while averting job losses, CII said on Sunday. Confederation of Indian Industry (CII) called for economic contribution of districts to be taken into consideration while classifying lockdown zones. Districts with high economic activity should resume all industrial and business operations, including in containment zones with highest safety protocols, said CII in its report titled ‘A Strategy Note on Resumption of Economic Activities in Industrial Areas’, submitted to the government. The government notification of May 1 has permitted industrial estates, Special Economic Zone (SEZ) and industrial townships with restricted entry within urban areas of red zones to commence operations. The industry body said that all industrial units, including in non-notified industrial areas and standalone units, be allowed to function in urban areas. These should include non-essential goods and services as well. It has recommended that close surrounding areas can be classified as orange zones where industrial activity can be continued with strict precautionary measures and monitoring. The distinction of essential and non-essential items should be removed and all factories should be permitted to restart, according to CII. “The third phase of lockdown necessitates a focused strategy to minimize economic contraction due to COVID-19, without compromising on efforts to control the contagion. Prioritising districts with heavy presence of economic and industrial activities with continued operations accompanied by strictest precautions can help enterprises to remain financially sustainable while averting job losses,” CII Director General Chandrajit Banerjee said. While the protracted lockdown in the country, necessitated by the rapid spread of COVID-19, has helped in controlling the spread of epidemic and given us time to augment medical capacity, it has also caused enormous stress to the financial sustainability of many businesses, the chamber said. CII has requested that the top districts should be identified based on variables like their contribution to the country’s GDP, or presence of industrial estates and clusters or registration of enterprises in a district. Instead of the current practice of classifying the entire district as a red zone, CII has suggested the need for classifying zones as Containment, Orange and Green within an industrial district. Economic activities, in varying degrees of relaxation, should be permitted in all areas of those districts, but health and safety protocols would differ from zone to zone, the chamber suggested. It said the containment zone may be a street, mohalla or factory building where positive cases have been detected. In containment zones, industrial units where no positive cases exist, can be allowed to operate if workers can be restricted to the premises or within walkable distance, as per the CII note. Raw materials and finished goods should be disinfected and kept separately for 72 hours before use as permissible by the health authorities. Maximum precautions and safety measures in the form of masks, repeated sanitation, restricted movement of people and vehicles, and group testing, among others, can be carried out regularly in such containment zones, noted CII. “Aggressive measures are required to ensure that an industrial district moves from Red to Orange and Green within 21 days. The cost of undertaking precautionary measures by way of repeated sanitation, wearing of PPE, Masks, monitoring, group testing etc. will be much less than the economic loss if businesses in such high performing districts have to remain shut for longer duration,” said Mr. Banerjee. CII also called for limited public transport to function to enable workers and self-employed people to reach the industrial areas. Green zones within an industrial district, on other hand, should be allowed to work with relaxed restrictions but following strictly the health and safety protocols prescribed by the health authorities. There should be a real time availability of data on all types of zones within the industrial districts. The authorities may also provide updated information on Aarogya Setu app, other apps, local newspapers, radio, TV and online channels, according to the chamber. It also prescribed standard operating procedures for offices, workplaces, factories and establishments prior to resuming operations.
3 May 12:23 • The Hindu • https://www.thehindu.com/news/national/allow-districts-with-high-economic-activity-to-resume-all-industrial-biz-operations-cii/article31494706.eceRating: 0.30
CII bats for greater industrial activities in 'high economic performance' zones
At a time when the government has decided to provide some relaxations in restrictions during the third phase of the nationwide lockdown starting from May 4, the Confederation of Indian Industry (CII) on Sunday called for greater industrial activities in districts with high economic performance. The industry body also called for "economic contribution of districts to be taken into consideration while classifying lockdown zones." "Districts with high economic activity should resume all industrial and business operations, including those in containment zones, with highest safety protocols," CII said in a report, 'Strategy Note on Resumption of Economic Activities in Industrial Area.' The suggestions followed the notification, issued on May 1 by the government, on graded exit from the coronavirus-related lockdown. The third phase of lockdown necessitates "a focused strategy to minimise economic contraction due to Covid-19", without compromising on efforts to control the contagion, the trade body said in a statement. "Prioritising districts with a heavy presence of economic and industrial activities with continued operations, accompanied by strictest precautions, can help enterprises to remain financially sustainable while averting job losses," CII Director General Chandrajit Banerjee said. The industry body also said while the protracted lockdown in the country, necessitated by the rapid spread of Covid-19, has also caused enormous stress to the financial sustainability of many businesses. In its strategy note, it requested that the top districts should be identified based on variables like their contribution to country's GDP, or presence of industrial estates and clusters or registration of enterprises in a district. Instead of the current practice of categorising the entire district as a 'red zone', the CII has suggested the need for classifying zones as 'containment', 'orange' and 'green' within an industrial district. "Economic activities, in varying degrees of relaxation, should be permitted in all areas of this district but health and safety protocols would differ from zone to zone," it said. The containment zone may be a street, "mohalla" or factory building where positive cases have been detected, the industry body said. It has suggested that close surrounding areas can be classified as 'orange zones' where industrial activity can be continued with strict precautionary measures and monitoring. The distinction of essential and non-essential items should be removed and all factories should be permitted to restart, the industry body said. "Aggressive measures are required to ensure that an industrial district moves from 'red' to 'orange' and 'green' within 21 days. "The cost of undertaking precautionary measures by way of repeated sanitation, wearing of PPE, masks, monitoring, group testing etc. will be much less than the economic loss, if businesses in such high performing districts have to remain shut for a longer duration," Banerjee said. The government has permitted industrial estates, SEZ and industrial townships with the restricted entry within urban areas of 'red zones' to commence operations. "CII submitted that all industrial units, including in non-notified industrial areas and standalone units, be allowed to function in urban areas. These should include non-essential goods and services as well," the statement said. The body also called for limited public transport to function to enable workers and self-employed people to reach the industrial areas. 'Green' zones within an industrial district, on the other hand, should be allowed to work with relaxed restrictions but in adherence to strict health and safety protocols prescribed by the authorities.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
3 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/business/economy/cii-bats-for-greater-industrial-activities-in-high-economic-performance-zones-5216621.htmlRating: 0.30
Singapore looks to ramp up factory activities as virus curbs ease
3 May 15:37
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4 articles
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Singapore looks to ramp up factory activities as virus curbs ease
SINGAPORE (Reuters) - Singapore will progressively ramp up its manufacturing activities, its minister of trade and industry said on Sunday, with the city-state looking to restart its economy as coronavirus curbs start to ease over the next few weeks. Sectors that are intertwined with the global supply chain such as biopharmaceutical and petrochemicals as well precision manufacturing will be among priority sectors, Chan Chun Sing told reporters. Only about 17% of Singapore’s labour force is currently working onsite to maintain essential services and support for global production chains and connectivity. Chan said workplaces will have put in place prescribed measures to minimise the risk of infection before they can reopen. He added that those who are able to work from home will have to continue to do so for the foreseeable future. “So we will not be able to open some of the social entertainment outlets, but we will focus on our manufacturing capacities and production capabilities first,” he said. The city-state is facing the deepest recession in its 55-year history, compounded by so-called “circuit breaker” restrictions, which are aimed at stemming the spread of the novel coronavirus and are due to last until June 1. Singapore will start allowing some businesses to reopen from May 12, authorities said on Saturday.
3 May 15:37 • Reuters • https://www.reuters.com/article/us-health-coronavirus-singapore-idUSKBN22F05ERating: 4.04
Singapore looks to ramp up factory activities as virus curbs ease
Singapore will progressively ramp up its manufacturing activities, its minister of trade and industry said on Sunday, with the city-state looking to restart its economy as coronavirus curbs start to ease over the next few weeks. Sectors that are intertwined with the global supply chain such as biopharmaceutical and petrochemicals as well precision manufacturing will be among priority sectors, Chan Chun Sing told reporters. Only about 17% of Singapore’s labour force is currently working onsite to maintain essential services and support for global production chains and connectivity. Chan said workplaces will have put in place prescribed measures to minimise the risk of infection before they can reopen. He added that those who are able to work from home will have to continue to do so for the foreseeable future. “So we will not be able to open some of the social entertainment outlets, but we will focus on our manufacturing capacities and production capabilities first,” he said. The city-state is facing the deepest recession in its 55-year history, compounded by so-called “circuit breaker” restrictions, which are aimed at stemming the spread of the novel coronavirus and are due to last until June 1. Singapore will start allowing some businesses to reopen from May 12, authorities said on Saturday.
3 May 11:18 • Bdnews24 • https://bdnews24.com/world/south-east-asia/2020/05/03/singapore-looks-to-ramp-up-factory-activities-as-virus-curbs-easeRating: 2.85
Singapore Prepares To Reopen Factories As Coronavirus Restrictions Start To Ease
Rest of the World News Written By Zaini Majeed | Mumbai | Updated On: May 03, 2020 14:14 IST As of May 3, Singapore announced that it will “progressively ramp up” manufacturing activities to combat the COVID-19 outbreak, as the city looks ahead to reopening the economy over the weeks ahead, minister of trade and industry told the press conference. Sectors that conduct essential businesses such as biopharmaceutical and petrochemicals, as well as precision manufacturing which are intertwined with the global supply chain, will be on priority to “reopen”, Chan Chun Sing reportedly said. To accelerate the engine of global production and connectivity, at least 17 percent of Singapore's labour force has resumed operations on-site in the factories, as per the media reports. Chan reportedly said that several guidelines have been introduced to ensure the health safety of the workers so that they safely resume business. Besides, he added, those who are able to work from the confinements of their homes must continue to do so, according to reports. Further, he added that the city was no position to “reopen” entertainment and social outlets and some public premises, but would instead focus on manufacturing capacities and production to revive the economy in shackles. Earlier, Singapore extended the stay-home for the foreign workers, including Indians, in the construction sector by two weeks until May 18 as reports of outbreak emerged among the community. The overseas workers constitute the majority of the 932 new infections reported, as per media reports. Read: US: Most States Fall Short Of Coronavirus Testing Thresholds Read: Singapore Reports 447 New Cases Of Coronavirus, Total Infections Reaches 17,548 The number of infections in migrant workers surged continuously, and the prevalence remained "noticeably higher" with respect to transmission. Therefore, the "transmission at construction worksites among such workers had occurred before the start of the stay-home notice period," the health ministry said. As of May 3, Singapore accounted for 18,205 out of the total 3,497,006 confirmed cases of the novel coronavirus worldwide. As many as 17 deaths have been reported so far. However, Singapore would allow some businesses to reopen from May 12 as part of a gradual resumption of economy, as per media reports. Read: UK Reports 621 More Coronavirus Deaths, Total Toll Surpasses 28,000 Read: COVID-19: Singapore Reports 932 New Cases, Mostly Foreign Workers; 1 Death (Image Credit: AP)
3 May 14:14 • Republic World • https://www.republicworld.com/world-news/rest-of-the-world-news/singapore-to-ramp-up-factory-production-integral-to-global-supply.htmlRating: 2.30
Singapore looks to ramp up factory activities as virus curbs ease
SINGAPORE — Singapore will progressively ramp up its manufacturing activities, its minister of trade and industry said on Sunday, with the city-state looking to restart its economy as coronavirus curbs start to ease over the next few weeks. Sectors that are intertwined with the global supply chain such as biopharmaceutical and petrochemicals as well precision manufacturing will be among priority sectors, Chan Chun Sing told reporters. Only about 17% of Singapore’s labor force is currently working onsite to maintain essential services and support for global production chains and connectivity. Chan said workplaces will have put in place prescribed measures to minimize the risk of infection before they can reopen. He added that those who are able to work from home will have to continue to do so for the foreseeable future. “So we will not be able to open some of the social entertainment outlets, but we will focus on our manufacturing capacities and production capabilities first,” he said. The city-state is facing the deepest recession in its 55-year history, compounded by so-called “circuit breaker” restrictions, which are aimed at stemming the spread of the novel coronavirus and are due to last until June 1. Singapore will start allowing some businesses to reopen from May 12, authorities said on Saturday. (Reporting by Aradhana Aravindan in Singapore; editing by Jane Wardell)
3 May 05:28 • Financial Post • https://business.financialpost.com/pmn/business-pmn/singapore-looks-to-ramp-up-factory-activities-as-virus-curbs-easeRating: 0.94
Oil up 3% as countries ease lockdowns, production falls
4 May 19:22
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9 articles
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Weighted average GB: 1.0332716415227317
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Weighted average IN: 6.67335014008606
Oil up 3% as countries ease lockdowns, production falls
NEW YORK (Reuters) - Oil was up 3% on Monday as more countries announced they would begin easing coronavirus lockdowns and as crude supply cuts by the world’s top producing nations and companies take hold. Worldwide fuel demand fell by an estimated 30% in April largely due to stay-at-home orders, and weak consumption is expected to overhang the crude market for months, even as major world oil-producers reduce output as of May 1. However, analysts have said that swift action by those parties could help reduce the supply glut more quickly. “The market continues to price in the idea that things are improving,” Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. Brent crude LCOc1 settled at $27.20 a barrel, up 76 cents, or 2.9%, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 61 cents, or 3.1%, to $20.39 a barrel. “We’re supposed to see the production cuts start to show up... the slow restart of not only some of the states here in the U.S. but some of the countries in Europe is beginning to partially alleviate some of the demand fears,” McGillian said. Italy, Finland and several U.S. states were among numerous governments moving to ease lockdown restrictions on Monday to resurrect their economies, but officials cautioned against acting too swiftly as coronavirus cases passed 3.5 million and deaths neared a quarter of a million globally. In addition to fresh supply cuts that began this month by the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, oil and gas output from some of the world’s top oil companies is set to drop in the second quarter of 2020 to levels not seen in at least 17 years. Goldman Sachs said it is growing more optimistic about the rise of oil prices next year due to lower crude production and a partial recovery in oil demand. The Wall Street bank raised its 2021 forecast for global benchmark Brent to $55.63 per barrel from $52.50 earlier. The bank hiked its estimate for WTI to $51.38 a barrel from $48.50 previously. The re-emergence of trade tensions between the United States and China limited the rise in prices. “Demand growth in China is good for the energy market right now, it is pretty much the only game in town” said Bob Yawger, director of energy futures at Mizuho. “Even a verbal scrap with President Trump is not good for China demand growth, considering the fragile circumstances the market is currently operating under.” Adding to U.S. President Donald Trump’s threat last week to impose tariffs on China, Secretary of State Mike Pompeo said on Sunday there was “a significant amount of evidence” that the new coronavirus emerged from a Chinese laboratory. Oil prices recovered some of their losses after U.S. Treasury Secretary Steven Mnuchin said he expected China to make good on its trade agreement with the United States. He also said he expected oil markets to rebound, and that the Trump administration was looking for more storage capacity.
4 May 19:22 • Reuters • https://www.reuters.com/article/us-global-oil-idUSKBN22F0XARating: 4.04
Africa's oil producers impacted by OPEC production cut
Africa’s oil producing nations have not been spared the impact of the global decision to reduce oil output. About 14 countries in sub-Saharan Africa produce oil, which accounts for most of their annual export income. Crude oil prices rose marginally on Friday (May 1) as the Organization of Petroleum Exporting Countries (OPEC) and their allies started reducing output. Major producers in April agreed to a production cut deal by 10 million barrels a day in May and June. The record production cut is a way of balancing the mismatch between supply and demand in global oil prices due to the coronavirus pandemic. The COVID-19 outbreak has reduced demand for oil due to isolation and travel restrictions measures introduced globally to slowdown the spread of the disease. Africa’s major oil producers include Nigeria, Angola and Gabon. A rise in oil prices between $50 to $60 would allow them to earn badly needed foreign exchange to carry out development projects. The World Bank and the IMF have urged African oil producing nations to diversify their economies to reduce their over-dependence on oil to improve the living standards of their people.
3 May 14:40 • Africanews • https://www.africanews.com/2020/05/03/africa-s-oil-producers-impacted-by-opec-production-cut/Rating: 1.14
Algeria Refuses to Borrow from IMF to Ease Financial Crisis
Algerian President Abdelmadjid Tebboune has declared his country will not approach the International Monetary Fund (IMF) for loans, despite a financial crisis triggered by a collapse in global oil prices and coronavirus lockdowns. “Accumulating debt harms national sovereignty,” Tebboune told reporters in a meeting with Algerian media, broadcast late Friday. Algeria fell into heavy debt with the IMF during the 1990s, an episode Tebboune referenced in his address. Algeria is heavily dependent on oil production, which generates over 90 percent of its export receipts. A collapse in hydrocarbon prices this year – caused by plunging demand due to societal lockdowns designed to combat the spread of coronavirus, and exacerbated by a brief price war between key players Russia and Saudi Arabia – is putting even greater pressure on Algeria's external accounts. Even before this year’s crisis took hold, Algeria’s foreign exchange reserves had fallen to $62 billion at the end of 2019, from $180 billion in 2014. But Tebboune stressed he prefers “to borrow from Algerian citizens, rather than the IMF or the World Bank.” He also expressed reluctance to borrowing from foreign banks, saying that doing so prevented Algeria from making its position clear on issues including the fate of the Palestinian cause and Western Sahara. Tebboune also said that several “friendly” nations had offered loans, which had been declined for the time being. he did not name these countries. He ruled out relying on extra printing of the local currency by the central bank, noting that this could cause inflation. Tebboune also revealed plans to develop new natural resources, including uranium, gold and phosphate, with the help of foreign investors, after the end of the health crisis caused by the novel coronavirus. “The novel coronavirus has frozen several plans and projects. But they will be launched after the health crisis is overcome,” he said. A sharp fall in oil and gas revenue in recent years has deepened the country’s financial problems, widening the budget and trade deficits. Algeria still relies heavily on energy earnings despite previous announcements that it would carry out reforms and develop the non-hydrocarbon sector. The coronavirus outbreak has worsened the economic situation with energy earnings dropping further, forcing the government to cut spending and planned investment for 2020. “We are determined to develop our agriculture and reduce significantly the value of purchases from abroad,” Tebboune stressed. Elected in December 2019 after mass protests demanding political and economic reforms and the removal of the ruling elite, Tebboune has vowed to open up the economy and amend the constitution to give a greater role to parliament. “A political change will take place and strong institutions will be created,” Tebboune said, referring to demands by the protest movement known as Hirak. The government has decided to postpone loan payments for state and private firms financially hit by the coronavirus, and Tebboune said more measures would be taken to benefit companies and the self-employed. “Losses of firms are being assessed. We are ready to provide financial support. Even self-employed people such as taxi drivers and hairdressers will be helped,” he said.
3 May 08:15 • Asharq AL-awsat • https://aawsat.com/english/home/article/2265216/algeria-refuses-borrow-imf-ease-financial-crisisRating: 2.10
Algeria cuts energy revenue, forex forecasts for 2020
ALGIERS — Algeria expects its foreign exchange reserves to fall to $44.2 billion by the end of 2020, below a previous forecast of $51.6 billion, hit by a sharp drop in global crude oil prices, the government said on Sunday. The price slide is expected to push down full-year energy export earnings to $20.6 billion, far below a $37.4 billion projection announced earlier this year, government spokesman and Communication Minister Amar Belhimer said on state radio. OPEC producers’ group member Algeria depends heavily on oil and gas revenue to finance the state budget and pay for imports estimated annually at $45 billion. A fall in energy earnings over past years has significantly widened its budget and trade deficits. Financial pressures increased after the coronavirus outbreak caused oil prices to plunge further, forcing the government to cut spending and investment planned for this year in several sectors including hydrocarbons. That also impacted foreign exchange reserves which are currently around $60 billion, down from $72.6 billion in April last year. The amount of reserves expected by the end of 2020 will cover a year of imports, Belhimer said. (Reporting by Hamid Ould Ahmed; Editing by Andrew Cawthorne)
3 May 17:24 • Financial Post • https://business.financialpost.com/pmn/business-pmn/algeria-cuts-energy-revenue-forex-forecasts-for-2020Rating: 0.94
Algeria rules out IMF borrowing to ease financial woes
Algerian President Abdelmadjid Tebboune has declared his country will not approach the IMF for loans, despite a financial crisis triggered by a collapse in global oil prices and coronavirus lockdowns. "Accumulating debt harms national sovereignty," said Tebboune, in a meeting with Algerian media broadcast late Friday. The North African nation is heavily dependent on oil production, which generates over 90 percent of the country's export receipts. A collapse in hydrocarbon prices this year -- caused by plunging demand due to societal lockdowns designed to combat the spread of coronavirus, and exacerbated by a brief price war between key players Russia and Saudi Arabia -- is putting ever greater pressure on Algeria's external accounts. Even before this year's crisis took hold, Algeria's foreign exchange reserves had fallen to $62 billion at the end of 2019, from $180 billion in 2014. But the president said Algeria would prefer "to borrow from its own citizens, rather than the International Monetary Fund or World Bank." Algeria fell into heavy debt with the IMF during the 1990s, an episode Tebboune referenced in his address. He also expressed aversion to borrowing from foreign banks, saying that doing so prevented Algeria making its position clear on issues including the fate of the Palestinians and Western Sahara. Morocco has controlled most of the Western Sahara, a former Spanish colony, since the 1970s. It fought a war with the Algeria-backed Polisario Front over the territory from 1975 to 1991, when a ceasefire deal was agreed. Tebboune also said that certain "friendly" nations had offered loans, which had been declined for the time being. He did not specify which countries had offered assistance. The president ruled out relying on extra printing of domestic currency by the central bank, noting that this could cause an inflationary spiral.
3 May 03:52 • Daily Nation • https://www.nation.co.ke/news/africa/Algeria-rules-out-IMF-borrowing-to-ease-financial-woes/1066-5540982-9whjhj/index.htmlRating: 1.96
Algeria rules out IMF borrowing to ease financial woes
Algerian President Abdelmadjid Tebboune has declared his country will not approach the IMF for loans, despite a financial crisis triggered by a collapse in global oil prices and coronavirus lockdowns. “Accumulating debt harms national sovereignty,” said Tebboune, in a meeting with Algerian media broadcast late Friday. The North African nation is heavily dependent on oil production, which generates over 90 percent of the country’s export receipts. A collapse in hydrocarbon prices this year — caused by plunging demand due to societal lockdowns designed to combat the spread of coronavirus, and exacerbated by a brief price war between key players Russia and Saudi Arabia — is putting ever greater pressure on Algeria’s external accounts. Even before this year’s crisis took hold, Algeria’s foreign exchange reserves had fallen to $62 billion at the end of 2019, from $180 billion in 2014. But the president said Algeria would prefer “to borrow from its own citizens, rather than the International Monetary Fund or World Bank.” Algeria fell into heavy debt with the IMF during the 1990s, an episode Tebboune referenced in his address. He also expressed aversion to borrowing from foreign banks, saying that doing so prevented Algeria making its position clear on issues including the fate of the Palestinians and Western Sahara. Morocco has controlled most of the Western Sahara, a former Spanish colony, since the 1970s. It fought a war with the Algeria-backed Polisario Front over the territory from 1975 to 1991, when a ceasefire deal was agreed. Tebboune also said that certain “friendly” nations had offered loans, which had been declined for the time being. He did not specify which countries had offered assistance. The president ruled out relying on extra printing of domestic currency by the central bank, noting that this could cause an inflationary spiral.
2 May 13:04 • The Guardian • https://guardian.ng/news/world/algeria-rules-out-imf-borrowing-to-ease-financial-woes/Rating: 0.30
Challenging times for Gulf states
Gulf countries face a steep decline in government revenues as a result of the sharp drop in oil prices. This comes at a time when the region and the world are dealing with the economic fallout of the coronavirus pandemic. Saudi Arabia on Saturday warned of painful measures to offset the economic impact of the global pandemic. Finance Minister Mohammed Al Jadaan said stringent economic measures that include fiscal retrenchment are required in these challenging times, especially since the world’s largest oil exporter is suffering from historically low oil prices. These belt-tightening measures are necessary to prevent lasting economic damage. According to the latest forecasts by the International Monetary Fund (IMF) real GDP of oil exporters is projected to contract by 4.2 per cent in 2020. This is a significant downward revision from the 2.1 per cent growth projected in the October 2019 Regional Economic Outlook of the IMF. Oil prices at these levels could result in more than $230 billion in lost annual revenue for GCC oil exporters, placing significant strains on fiscal and external balances. GCC governments have been swift in initiating broad policy actions to save lives, contain the spread of the pandemic, and support the hardest-hit sectors of their economies. The overall fiscal and monetary support announced so far has been close to $200 billion and averages about 12 per cent of the GDP of the region. While the relief packages are substantial, the uncertainty over the impact of the virus outbreak and the trajectory of oil prices is worrisome. Mounting health care expenditure and rising funding requirement for economic support programmes in the face of shrinking revenues have become a massive challenge for GCC governments. Most regional governments, except Oman and Bahrain, have substantial external balances and strong credit profiles that will enable them to fund the emergency requirements by dipping into the reserve kitty and or through borrowings. With no real recovery seen for oil prices in the near term, these governments could fast deplete a substantial portion of their reserves while building significant debt piles, if expenditures continue unchecked. Therefore, GCC states must pursue an economic policy trajectory based on fiscal prudence. Health measures and economic stimulus packages are unavoidable, but all unnecessary costs that are not related to the coronavirus crisis must be cut. These are trying times for the economies. The solutions might be painful but necessary. Out-of-the-box measures are required. The Saudi minister’s statement points in the right direction.
3 May 10:40 • Gulf News • https://gulfnews.com/opinion/editorials/challenging-times-for-gulf-states-1.71303433Rating: 3.21
Oil price crash: Experts suggest way forward - The Nation Nigeria
The global oil price crash notwithstanding, Nigeria can turn the tide, experts have said. Though oil prices showed slight increase last Thursday as Nigeria Brent crude inched up by 4.6 percent to $21.39 per barrel reversing some of the losses posted previously after storage in the United States rose less than expected, experts have however argued that this relief may be momentary after all. Former Minister of Finance, Dr. Ngozi Okonjo-Iweala, has called for the restructuring of Nigeria’s economy in the face of dwindling oil prices. Okonjo-Iweala gave the advice on Thursday when she appeared on Channels TV’s Business Morning. According to her, Nigeria and other African countries must look at other sources of revenue to cushion the economic impact of dwindling oil prices. The former Managing Director of the World Bank said Nigeria has several sources of revenue it should tap to create employment for the teeming masses. “There will be business cycles with commodity prices. What you also need to do is make the economy less dependent on these commodities,” she said. Echoing similar sentiments, former Vice President, Atiku Abubakar in a statement titled: ‘How to pull Nigeria from the brink,’ said the country must face the fact that reliance on crude oil is failing Nigeria and other mono product economy crude oil exporters. “Now is the time for Nigeria and her contemporaries to cure their addiction to sweet crude. For far too long we have grown high on our own supply, to the extent that we have neglected almost every other sector of our economy.” Laoye Jaiyeola, Chief Executive, Nigerian Economic Summit Group (NESG), a think tank organisation that supports policy initiatives both at the private and public sectors, said there is need for all hands to be on deck. For Professor Jonathan Aremu, he would rather the government reorder its priorities going forward.
3 May 01:15 • Latest Nigeria News, Nigerian Newspapers, Politics • https://thenationonlineng.net/oil-price-crash-experts-suggest-way-forward/Rating: 0.30
Plunging oil demands
The oil markets have been revoked by sharp price swings in recent days , with traders concerned a drop in demand caused by the coronavirus pandemic which would lead to storage problems for the oversupply of oil . Since many countries are now moving toward in rebuilding their economy which would lead to a rise in the demand for oil . Many oil industries in the world remain underdeveloped and due to COVID-19 crisis Andy I shutdown worldwide, the pandemic is likely to result from the oil price crash and upending the current balance of power. The key-oil producing countries like Iraq and Nigeria can’t find way to be free from crisis with less interest loans. Oil prices have been rebounded recently after the reports that a key measure of oil inventories showed lower than expected demand for storage and oil- focused exchange trade-funds appeared to have finished selling June futures contracts. In Pakistan oil prices have been cut and reduce the price by at least 50 litres . This is very crucial during the current state of affairs due to the joblessness during COVID-19 . In this regard the government of Pakistan needs to be active and deliver a financial relief package to the poor and reduce the commodities prices . Barkatullah Turbat
3 May 17:18 • Pakistan Today • https://www.pakistantoday.com.pk/2020/05/03/plunging-oil-demands/Rating: 0.87
Indian bank bad debt could double after coronavirus crisis
3 May 19:52
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Indian bank bad debt could double after coronavirus crisis
India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers told Reuters. Indian banks are already grappling with 9.35 trillion rupees ($123 billion) of soured loans, which was equivalent to about 9.1% of their total assets at the end of September 2019. "There is a considered view in the government that bank non-performing assets (NPAs) could double to 18-20% by the end of the fiscal year, as 20-25% of outstanding loans face a risk of default," the official with direct knowledge of the matter said. A fresh surge in bad debt could hit credit growth and delay India's recovery from the coronavirus pandemic. "These are unprecedented times and the way it's going we can expect banks to report double the amount of NPAs from what we've seen in earlier quarters," the finance head of a top public sector bank told Reuters. The official and bankers declined to be named as they were not officially authorized to discuss the matter with media. India's finance ministry declined to comment, while the RBI and Indian Banks' Association, the main industry body, did not immediately respond to emails seeking comment. The Indian economy has ground to a standstill amid a 40-day nationwide lockdown to rein in the spread of coronavirus cases. The lockdown has now been extended by a further two weeks, but the government has begun to ease some restrictions in districts that are relatively unscathed by the virus. India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from COVID-19, the respiratory disease caused by the coronavirus.
3 May 19:52 • Bdnews24 • https://bdnews24.com/economy/2020/05/03/indian-bank-bad-debt-could-double-after-coronavirus-crisisRating: 2.85
Indian bank bad debt could double after coronavirus crisis: sources
MUMBAI/NEW DELHI: India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers told Reuters. Indian banks are already grappling with 9.35 trillion rupees ($123 billion) of soured loans, which was equivalent to about 9.1% of their total assets at the end of September 2019. "There is a considered view in the government that bank non-performing assets (NPAs) could double to 18-20% by the end of the fiscal year, as 20-25% of outstanding loans face a risk of default," the official with direct knowledge of the matter said. A fresh surge in bad debt could hit credit growth and delay India's recovery from the coronavirus pandemic. "These are unprecedented times and the way it's going we can expect banks to report double the amount of NPAs from what we've seen in earlier quarters," the finance head of a top public sector bank told Reuters. The official and bankers declined to be named as they were not officially authorized to discuss the matter with media. India's finance ministry declined to comment, while the RBI and Indian Banks' Association, the main industry body, did not immediately respond to emails seeking comment. The Indian economy has ground to a standstill amid a 40-day nationwide lockdown to rein in the spread of coronavirus cases. The lockdown has now been extended by a further two weeks, but the government has begun to ease some restrictions in districts that are relatively unscathed by the virus. India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from COVID-19, the respiratory disease caused by the coronavirus. Read MoreIndia gears up for mega virus concert fundraiser with Jagger, Smith India, the world's second-most populous nation with 1.3 billion people, has reported almost 40,000 cases of the infectious disease with 1,301 deaths. Read MoreWith fighter jets and army bands, India's military thank health workers In the financial capital of Mumbai, television showed fighter jets roaring over the famous Marine Drive, which runs parallel to the Arabian Sea, as some residents craned for a view from their balconies. Read MoreHindu woman observes Ramadan in India A Hindu Brahmin woman is observing fasting during the Muslim holy month of Ramadan in a bid to promote communal harmony and peace among all faiths.
3 May 17:55 • The Peninsula • https://thepeninsulaqatar.com/article/03/05/2020/Indian-bank-bad-debt-could-double-after-coronavirus-crisis-sourcesRating: 3.14
Indian bank bad debt could double in coronavirus crisis, say sources
MUMBAI, May 4 — India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers told Reuters. Indian banks are already grappling with 9.35 trillion rupees (RM531.8 billion) of soured loans, which was equivalent to about 9.1 per cent of their total assets at the end of September 2019. “There is a considered view in the government that bank non-performing assets (NPAs) could double to 18-20 per cent by the end of the fiscal year, as 20-25 per cent of outstanding loans face a risk of default,” the official with direct knowledge of the matter said. A fresh surge in bad debt could hit credit growth and delay India’s recovery from the coronavirus pandemic. “These are unprecedented times and the way it’s going we can expect banks to report double the amount of NPAs from what we’ve seen in earlier quarters,” the finance head of a top public sector bank told Reuters. The official and bankers declined to be named as they were not officially authorised to discuss the matter with media. India’s finance ministry declined to comment, while the Reserve Bank of India and Indian Banks’ Association, the main industry body, did not immediately respond to emails seeking comment. The Indian economy has ground to a standstill amid a 40-day nationwide lockdown to rein in the spread of coronavirus cases. The lockdown has now been extended by a further two weeks, but the government has begun to ease some restrictions in districts that are relatively unscathed by the virus. India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from Covid-19, the respiratory disease caused by the coronavirus. ‘Riding the tiger’ Bankers fear it is unlikely that the economy will fully open up before June or July, and loans, especially those to small — and medium-sized businesses which constitute nearly 20 per cent of overall credit, may be among the worst affected. This is because all 10 of India’s largest cities fall in high-risk red zones, where restrictions will remain stringent. A report by Axis Bank said that these red zones, which contribute significantly to India’s economy, account for roughly 83 per cent of the overall loans made by its banks as of December. One of the sources, an executive director of a public sector bank, said that economic growth had been sluggish and risks had been heightened, even ahead of the coronavirus crisis. “Now we have this Black Swan event which means without any meaningful government stimulus, the economy will be in tatters for several more quarters,” he said. McKinsey & Co last month forecast India’s economy could contract by around 20 per cent in the three months through June, if the lockdown was extended to mid-May, and growth in the fiscal year was likely to fall 2 per cent to 3 per cent. Bankers say the only way to stem the steep rise in bad loans is if the RBI significantly relaxes bad asset recognition rules. Banks have asked the central bank to allow all loans to be categorised as NPAs only after 180 days, which is double the current 90-day window. “The lockdown is like riding the tiger, once we get off it we’ll be in a difficult position,” a senior private sector banker told Reuters. — Reuters
3 May 23:20 • Malaymail • https://www.malaymail.com/news/money/2020/05/04/indian-bank-bad-debt-could-double-in-coronavirus-crisis-sources/1862728Rating: 1.42
Indian bank bad debt could double after coronavirus crisis
Mumbai: India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers told Reuters. Indian banks are already grappling with 9.35 trillion rupees ($123 billion) of soured loans, which was equivalent to about 9.1% of their total assets at the end of September 2019. “There is a considered view in the government that bank non-performing assets (NPAs) could double to 18-20% by the end of the fiscal year, as 20-25% of outstanding loans face a risk of default,” the official with direct knowledge of the matter said. A fresh surge in bad debt could hit credit growth and delay India’s recovery from the coronavirus pandemic. “These are unprecedented times and the way it’s going we can expect banks to report double the amount of NPAs from what we’ve seen in earlier quarters,” the finance head of a top public sector bank told Reuters. The official and bankers declined to be named as they were not officially authorized to discuss the matter with media. India’s finance ministry declined to comment, while the RBI and Indian Banks’ Association, the main industry body, did not immediately respond to emails seeking comment. The Indian economy has ground to a standstill amid a 40-day nationwide lockdown to rein in the spread of coronavirus cases. The lockdown has now been extended by a further two weeks, but the government has begun to ease some restrictions in districts that are relatively unscathed by the virus. India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from COVID-19, the respiratory disease caused by the coronavirus.
3 May 15:08 • Gulf News • https://gulfnews.com/business/banking/indian-bank-bad-debt-could-double-after-coronavirus-crisis-1.71307012Rating: 3.21
Indian bank bad debt could double after coronavirus crisis -sources
MUMBAI/NEW DELHI — India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers told Reuters. Indian banks are already grappling with 9.35 trillion rupees ($123 billion) of soured loans, which was equivalent to about 9.1% of their total assets at the end of September 2019. “There is a considered view in the government that bank non-performing assets (NPAs) could double to 18-20% by the end of the fiscal year, as 20-25% of outstanding loans face a risk of default,” the official with direct knowledge of the matter said. A fresh surge in bad debt could hit credit growth and delay India’s recovery from the coronavirus pandemic. “These are unprecedented times and the way it’s going we can expect banks to report double the amount of NPAs from what we’ve seen in earlier quarters,” the finance head of a top public sector bank told Reuters. The official and bankers declined to be named as they were not officially authorized to discuss the matter with media. India’s finance ministry declined to comment, while the RBI and Indian Banks’ Association, the main industry body, did not immediately respond to emails seeking comment. The Indian economy has ground to a standstill amid a 40-day nationwide lockdown to rein in the spread of coronavirus cases. The lockdown has now been extended by a further two weeks, but the government has begun to ease some restrictions in districts that are relatively unscathed by the virus. India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from COVID-19, the respiratory disease caused by the coronavirus. (Reporting by Nupur Anand and Manoj Kumar; additional reporting by Nidhi Verma; Editing by Euan Rocha and Alexander Smith)
3 May 14:49 • Financial Post • https://business.financialpost.com/pmn/business-pmn/indian-bank-bad-debt-could-double-after-coronavirus-crisis-sourcesRating: 0.94
It's a bloodbath as R100bn expected to flow out of SA
This week could see R100 billion flow out of South Africa because of the “junk” status of the country’s debt. The rand could well weaken to about R19.50 against the dollar, and further downgrades in the future aren’t out of the question, say analysts. Credit ratings agency Moody’s Investors Service’s downgrade of the country’s sovereign debt at the end of March finally dumped the nation into full junk status. This week, S&P Global downgraded our foreign and domestic state debt deeper into junk status and said that, although the country had done well to combat the Covid-19 coronavirus from a medical point of view, it would be difficult to handle the long-term economic fallout of the five-week lockdown. This was because South Africa was in a weak economic position even before the lockdown, it said. Government announced a stimulus package of R500 billion to handle the crisis and will have to borrow much of it, including through the issuing of bonds to foreign investors. Various institutional investors such as pension funds, exchange-traded funds and funds that follow specific indices are not allowed to invest in bonds that are below investment grade Junk status means that South Africa’s government bonds on Thursday dropped out of the FTSE World Government Bond Index (WGBI). Various institutional investors such as pension funds, exchange-traded funds and funds that follow specific indices are not allowed to invest in bonds that are below investment grade. To date, it’s been estimated that these investors will therefore have to get rid of between R30 billion and R100 billion in bonds, said George Herman, investment head at Citadel. Many people think investors started dropping the bonds since the Moody’s announcement on March 27, but, according to Herman, these have really been discretionary investors and hedge funds – money that flows quickly in and out – who got rid of all high-risk assets. Between April 22 and 24, when the WGBI was rebalanced, foreigners only sold about R12 billion of South African government bonds. Herman expects institutional investors to get rid of their holdings this week, which could lead to as much as R100 billion flooding out of the country and giving the rand a pounding. He predicts a weakening of the rand to about R19.50 to the dollar. At one point on Wednesday, it was still trading at R18.11. Herman thinks institutional investors were slow to react because they didn’t know what country’s government bonds would replace South Africa’s. Now that they know it is Israel, they are expected to start selling this week. Read: Battered by economic storms Nolan Wapenaar, a fund manager at Anchor Capital, is of the opinion that a good deal of the money has already left the country. In the six months between the announcement that South African bonds would become part of the WGBI and the bonds finally being taken up, investors increased their exposure to South African government bonds very gradually. “It’s reasonable to expect that the same has happened and that they have got rid of it over time.” Mexico looks like the next country that will drop out of the WGBI. Wapenaar is of the opinion that the focus will now shift to Mexico and Israel, and South Africa will be forgotten. He said S&P’s further downgrade was also expected. The good news is that they changed the outlook of the debt from negative to stable. This indicates that South Africa has reached the turning point at the bottom of the curve. And Wapenaar expects a further downgrade from Moody’s, but not from Fitch Ratings and S&P. The investment pool gets smaller as your credit rating worsens. Annabel Bishop, an economist from Investec, said that credit downgrades would generally make it more difficult to do business in South Africa: the cost of debt rises, markets are more turbulent and this makes the country more susceptible to further downgrades. S&P said the Covid-19 crisis had curtailed South Africa’s growth prospects as a result of the long lockdown, poorer than expected external demand and strict credit requirements. It also expects the economy to contract by 4.5% and the budget deficit to rise to 13.3% of GDP. State debt could be as high as 75% of GDP by the end of the year, and reach 84.7% by 2023, which raises questions about the sustainability of these debt levels. By 2023, interest rates could make up 6.5% of GDP (or 22% of total government revenue), as opposed to 4.1% of GDP (14% of total revenue) last year. Quick, sustained economic growth of more than 3%, and closer to 5%, is necessary [for South Africa to regain investment status]Annabel Bishop, an economist from Investec Bishop writes in a note that interest repayments on South Africa’s higher debt occasioned by increased expenses brought about by Covid-19 would have been easy to afford if South Africa had not been dumped into junk status due to years of excessive expenditure, accompanied by state capture, corruption, and fruitless and wasteful expenditure. Bishop believes it will take a long time for South Africa to regain investment status. “Quick, sustained economic growth of more than 3%, and closer to 5%, is necessary to get there eventually.” Peter Attard Montalto from Intellidex said an emergency budget that shows how the R500 billion in stimulus measures will be financed should actually see the light earlier than July, but this was an indication of how difficult reallocating R130 billion from the current budget would be. According to Montalto, the Land and Agricultural Development Bank of SA, which this week indicated that it could not meet its debt obligations, will receive a R1 billion lifeline from the state this year. Although it is uncertain what will happen to other state-owned enterprises (SOEs) like SAA, he welcomed the minister of finance’s general statement that dysfunctional SOEs would be sold. Intellidex also estimates that state revenue collection could decline by as much as 11% this year. Edward Kieswetter, commissioner of the SA Revenue Service (Sars), this week told Netwerk24 that Sars had already lost more than R1.5 billion in revenue because of the ban on the sale of tobacco and alcohol. If we can’t turn our debt situation around, then there are only unhappy options left over: you print money, or you accept aid from the International Monetary Fund or from China, which comes with a lot of conditionsNolan Wapenaar, a fund manager at Anchor Capital Wapenaar added that it was now a priority to drive economic growth and create jobs by implementing the correct policies. Poor revenue collection is a major economic threat because it will leave the state with even less fiscal room. With state debt rising to close to 80% of GDP, this does not bode well for the future. History shows that problems in developing countries become too big once debt rises to close to 100% of GDP. “Where we previously had 10 years to improve the fiscal position, we now have half of that. "If we can’t turn our debt situation around, then there are only unhappy options left over: you print money, or you accept aid from the International Monetary Fund or from China, which comes with a lot of conditions.” S&P did, however, change the outlook from negative to stable, thanks to a credible and consistent Reserve Bank, a currency that is actively traded, and deep capital markets that will help bring about gradual external and fiscal adjustments. It said the credit rating could improve if government’s reforms succeed in turning around the upward trajectory of state debt as a percentage of GDP, and if employment and productivity improved substantially and lead to higher per capita GDP growth in real terms.
3 May 09:00 • CityPress • https://city-press.news24.com/Business/its-a-bloodbath-as-r100bn-expected-to-flow-out-of-sa-20200503Rating: 0.30
Govt to cap relief package at $60 billion to protect credit rating: Report
The Indian government is likely to cap its overall spending on coronavirus-related relief at around 4.5 trillion rupees ($60 billion), due to concerns that excess spending could trigger a sovereign rating downgrade, two senior government officials said. "We have to be cautious as downgrades have started happening for some countries and rating agencies treat developed nations and emerging markets very differently," the first official told Reuters. On Tuesday, Fitch warned India's sovereign rating could come under pressure if its fiscal outlook deteriorates further as the government tries to steer the country through the coronavirus crisis. "We have already done 0.8% of GDP, we might have space for another 1.5%-2% GDP," the official, who is involved in preparing the package said, referencing the 1.7 trillion rupee outlay that the government announced in March that was directed at helping the poor via cash transfers and food grain distribution. The stimulus plans yet to be outlined are likely to be aimed at helping people who have lost their jobs, as well as both small and large companies, via tax holidays and other measures, said both officials. They did not wish to be named as the matter is still under discussion. A spokesman for the finance ministry declined to comment. Fitch and Standard & Poor's both have India pegged at an investment grade rating that is one notch above a junk rating, while Moody's Investors Service is the only major rating agency that has India's rating two notches above junk. With a 40-day nationwide lockdown bringing the $2.9 trillion economy to a standstill, and the lockdown in many of India's big cities likely to be extended, many economists expect the economy to stagnate, or even shrink this year, putting further pressure on government finances. The second official said government revenues are in a tight position given "very weak" tax collections, and the fact that a 2.1 trillion privatisation programme planned for this fiscal year, now looks like it will be a non-starter. The government has cut salaries of lawmakers including the prime minister and the president, and withheld raises for government employees and pensioners, in a drive to save as much as it can to control fiscal slippage. India has a fiscal deficit target of 3.5% of GDP for the current year that runs through March 2021, which it is most likely to miss due to weak revenue collections. In this economic situation, when revenues are falling, and the economy needs government support, the widening of the fiscal deficit is a foregone conclusion, the second official said. "Considering our higher fiscal deficit ... there is limited scope for government to spend," the second official told Reuters. India has reported over 35,000 cases and 1,147 confirmed deaths from the coronavirus.
2 May 17:49 • India Today • https://www.indiatoday.in/business/story/india-set-to-cap-stimulus-package-at-60-billion-to-protect-credit-rating-report-1673776-2020-05-02Rating: 0.30
Cricket Australia secures $50 million loan as safety cover
3 May 17:11
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Cricket Australia secures $50 million loan as safety cover
Cricket Australia has secured a loan of $50 million, an upfront payment as part of a larger $200 million credit, which it has sought to cover the losses if India fails to tour the country later this year due to the COVID-19 pandemic. According to a report published in The Sydney Morning Herald, stakeholders have been informed that the loan with the Commonwealth Bank is a “done deal”. However, it raised fresh questions about CA’s decision to stand down 80% of its staff due to financial crisis. CA stood down more than 200 staff on 20% pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made. The decision, which had saved CA about $3 million, is in question now with the governing body securing $50 million loan. While Roberts, himself, is still earning 80% of his salary, he is set to propose to state associations a 25% reduction in grants from CA, the reports said. CA is staring at losing a staggering A$300 million in the wake of the pandemic and India’s four-Test tour in December-January could provide relief to the struggling body. Former Test all-rounder Shane Watson, who is the president of Australian Cricketers’ Association Board, will convene a meeting early next week “to formalise a position on the state of the game’s finances”.
3 May 17:11 • The Hindu • https://www.thehindu.com/sport/cricket/cricket-australia-secures-50-million-loan-as-safety-cover/article31495743.eceRating: 0.30
Cricket Australia secures $50 million loan as safety cover for India Tests: Report
MELBOURNE: Cricket Australia has secured a loan of $50 million, an upfront payment as part of a larger $200 million credit, which it has sought to cover the losses if India fail to tour the country later this year due to the COVID-19 pandemic. According to a report published in 'The Sydney Morning Herald', stakeholders have been informed that the loan with the Commonwealth Bank is a "done deal". However, it raised fresh questions about the governing body's decision to stand down 80 per cent of its staff last month due to financial crisis. CA stood down more than 200 staff on 20 per cent pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made. Explore Briefs The decision, which had saved CA about $3 million, is in question now with the governing body securing $50 million loan. While Roberts, himself, is still earning 80 per cent of his salary, he is set to propose to state associations a 25 per cent reduction in grants from CA, the reports said. CA is staring at losing a staggering 300 million Australian dollars in the wake of the pandemic and India's four-Test tour in December-January could provide relief to the struggling body. Former Test all-rounder Shane Watson, who is the president of Australian Cricketers' Association Board, will convene a meeting early next week "to formalise a position on the state of the game's finances".
3 May 12:16 • The Times of India • https://timesofindia.indiatimes.com/sports/cricket/news/cricket-australia-secures-50-million-loan-as-safety-cover-for-india-tests-report/articleshow/75518852.cmsRating: 0.30
Cricket Australia secures USD 50 million loan as safety cover for India Tests: Report
Cricket Australia has secured a loan of USD 50 million, an upfront payment as part of a larger USD 200 million credit, which it has sought to cover the losses if India fail to tour the country later this year due to the COVID-19 pandemic. According to a report published in 'The Sydney Morning Herald', stakeholders have been informed that the loan with the Commonwealth Bank is a "done deal". However, it raised fresh questions about the governing body's decision to stand down 80 per cent of its staff last month due to financial crisis. CA stood down more than 200 staff on 20 per cent pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made. The decision, which had saved CA about USD 3 million, is in question now with the governing body securing USD 50 million loan. While Roberts, himself, is still earning 80 per cent of his salary, he is set to propose to state associations a 25 per cent reduction in grants from CA, the reports said. CA is staring at losing a staggering 300 million Australian dollars in the wake of the pandemic and India's four-Test tour in December-January could provide relief to the struggling body. Former Test all-rounder Shane Watson, who is the president of Australian Cricketers' Association Board, will convene a meeting early next week "to formalise a position on the state of the game's finances"
3 May 18:36 • Deccan Herald • https://www.deccanherald.com/sports/cricket-australia-secures-usd-50-million-loan-as-safety-cover-for-india-tests-report-833079.htmlRating: 2.25
Cricket Australia gets $50 million loan as safety cover if India’s tour is cancelled: Report
Cricket Australia has secured a loan of $50 million, an upfront payment as part of a larger $200 million credit, which it has sought to cover the losses if India fail to tour the country later this year due to the coronavirus pandemic. According to a report published in The Sydney Morning Herald, stakeholders have been informed that the loan with the Commonwealth Bank is a “done deal”. However, it raised fresh questions about the governing body’s decision to stand down 80% of its staff last month due to financial crisis. CA stood down more than 200 staff on 20% pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made. The decision, which had saved CA about $3 million, is in question now with the governing body securing $50 million loan. While Roberts, himself, is still earning 80% of his salary, he is set to propose to state associations a 25% reduction in grants from CA, the reports said. CA is staring at losing a staggering 300 million Australian dollars in the wake of the pandemic and India’s four-Test tour in December-January could provide relief to the struggling body. Former Test all-rounder Shane Watson, who is the president of Australian Cricketers’ Association Board, will convene a meeting early next week “to formalise a position on the state of the game’s finances”.
3 May 13:11 • Scroll.in • https://scroll.in/field/960932/cricket-australia-gets-50-million-loan-as-safety-cover-if-indias-tour-is-cancelled-reportRating: 0.30
Industry super funds to demand answers as ME Bank borrowers fume
Industry super fund shareholders of boutique lender Members Equity Bank will demand an urgent explanation on Monday following concerning claims of borrowers being cut off from personal funds without their consent or knowledge. The Age and Sydney Morning Heraldreported on Saturday that Melbourne-based ME Bank, owned by 26 industry superannuation funds, had blindsided customers by removing their access to money in redraw facilities in order to pay down home loans. Bill Watson, chief executive of the $3 billion industry fund First Super, described the news as "concerning". "I'll be seeking an explanation from the bank tomorrow," he said on Sunday. "Once we've received an explanation, we will determine what action needs to be taken from there. As a shareholder, clearly we don't want to see consumers disadvantaged." Gerard Noonan, the chairman of the $6 billion Media Super, said several members of the fund had raised questions about the ME Bank move. "We're looking into it," Mr Noonan said. "So far it seems like a readjustment of the way the bank has structured its drawdown facilities when customers have used their excess mortgage repayments as a source of back-up source of borrowing." Home loan redraw facilities allow borrowers who are ahead on their loan repayments to withdraw funds above their minimum repayment amounts if they need to use those funds for any other purpose. On its website, ME Bank promotes its redraw facility as a product that allows customers to make extra mortgage repayments and with the added flexibility of letting clients "redraw money from your loan at any time, for free." Other industry super fund directors said they had been seeking to speak with ME Bank over the weekend for information about what had occurred. "But I haven't been able to talk to anyone," said one. A number of customers last week contacted The Age and The Sydney Morning Herald after noticing between 10 and 50 per cent of their redraw funds were absorbed into their home loan without any notification. In a statement released on Saturday ME Bank acknowledged the changes had caused concern among some customers, "particularly in the current environment". The lender said the changes were designed to prevent customers from overusing their redraw to a point where they risked falling behind on their original repayment schedule. "This can put customers at risk of not meeting their repayment commitments, potentially leaving them open to financial hardship at the end of the loan term," ME Bank said. "No money has been removed from customer accounts. The adjustment made is to the amount available for redraw." ME Bank said staff were contacting affected customers and reviewing their circumstances to determine how they could help with their financial needs.
3 May 13:45 • The Age • https://www.theage.com.au/business/banking-and-finance/industry-super-funds-to-demand-answers-as-me-bank-borrowers-fume-20200503-p54pdq.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
Industry super funds to demand answers as ME Bank borrowers fume
Industry super fund shareholders of boutique lender Members Equity Bank will demand an urgent explanation on Monday following concerning claims of borrowers being cut off from personal funds without their consent or knowledge. The Age and Sydney Morning Heraldreported on Saturday that Melbourne-based ME Bank, owned by 26 industry superannuation funds, had blindsided customers by removing their access to money in redraw facilities in order to pay down home loans. Bill Watson, chief executive of the $3 billion industry fund First Super, described the news as "concerning". "I'll be seeking an explanation from the bank tomorrow," he said on Sunday. "Once we've received an explanation, we will determine what action needs to be taken from there. As a shareholder, clearly we don't want to see consumers disadvantaged." Gerard Noonan, the chairman of the $6 billion Media Super, said several members of the fund had raised questions about the ME Bank move. "We're looking into it," Mr Noonan said. "So far it seems like a readjustment of the way the bank has structured its drawdown facilities when customers have used their excess mortgage repayments as a source of back-up source of borrowing." Home loan redraw facilities allow borrowers who are ahead on their loan repayments to withdraw funds above their minimum repayment amounts if they need to use those funds for any other purpose. On its website, ME Bank promotes its redraw facility as a product that allows customers to make extra mortgage repayments and with the added flexibility of letting clients "redraw money from your loan at any time, for free." Other industry super fund directors said they had been seeking to speak with ME Bank over the weekend for information about what had occurred. "But I haven't been able to talk to anyone," said one. A number of customers last week contacted The Age and The Sydney Morning Herald after noticing between 10 and 50 per cent of their redraw funds were absorbed into their home loan without any notification. In a statement released on Saturday ME Bank acknowledged the changes had caused concern among some customers, "particularly in the current environment". The lender said the changes were designed to prevent customers from overusing their redraw to a point where they risked falling behind on their original repayment schedule. "This can put customers at risk of not meeting their repayment commitments, potentially leaving them open to financial hardship at the end of the loan term," ME Bank said. "No money has been removed from customer accounts. The adjustment made is to the amount available for redraw." ME Bank said staff were contacting affected customers and reviewing their circumstances to determine how they could help with their financial needs.
3 May 13:45 • Brisbane Times • https://www.brisbanetimes.com.au/business/banking-and-finance/industry-super-funds-to-demand-answers-as-me-bank-borrowers-fume-20200503-p54pdq.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
Industry super funds to demand answers as ME Bank borrowers fume
Industry super fund shareholders of boutique lender Members Equity Bank will demand an urgent explanation on Monday following concerning claims of borrowers being cut off from personal funds without their consent or knowledge. The Age and Sydney Morning Heraldreported on Saturday that Melbourne-based ME Bank, owned by 26 industry superannuation funds, had blindsided customers by removing their access to money in redraw facilities in order to pay down home loans. Bill Watson, chief executive of the $3 billion industry fund First Super, described the news as "concerning". "I'll be seeking an explanation from the bank tomorrow," he said on Sunday. "Once we've received an explanation, we will determine what action needs to be taken from there. As a shareholder, clearly we don't want to see consumers disadvantaged." Gerard Noonan, the chairman of the $6 billion Media Super, said several members of the fund had raised questions about the ME Bank move. "We're looking into it," Mr Noonan said. "So far it seems like a readjustment of the way the bank has structured its drawdown facilities when customers have used their excess mortgage repayments as a source of back-up source of borrowing." Home loan redraw facilities allow borrowers who are ahead on their loan repayments to withdraw funds above their minimum repayment amounts if they need to use those funds for any other purpose. On its website, ME Bank promotes its redraw facility as a product that allows customers to make extra mortgage repayments and with the added flexibility of letting clients "redraw money from your loan at any time, for free." Other industry super fund directors said they had been seeking to speak with ME Bank over the weekend for information about what had occurred. "But I haven't been able to talk to anyone," said one. A number of customers last week contacted The Age and The Sydney Morning Herald after noticing between 10 and 50 per cent of their redraw funds were absorbed into their home loan without any notification. In a statement released on Saturday ME Bank acknowledged the changes had caused concern among some customers, "particularly in the current environment". The lender said the changes were designed to prevent customers from overusing their redraw to a point where they risked falling behind on their original repayment schedule. "This can put customers at risk of not meeting their repayment commitments, potentially leaving them open to financial hardship at the end of the loan term," ME Bank said. "No money has been removed from customer accounts. The adjustment made is to the amount available for redraw." ME Bank said staff were contacting affected customers and reviewing their circumstances to determine how they could help with their financial needs.
3 May 13:45 • WAtoday • https://www.watoday.com.au/business/banking-and-finance/industry-super-funds-to-demand-answers-as-me-bank-borrowers-fume-20200503-p54pdq.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
Reports | CA secure $50 million loan from Commonwealth Bank as cover for India series
Cricket Australia President Kevin Roberts recently revealed that the board has cashflow issues which resulted in drastic cuts to the salaries of staff who have been stood down. That surprised many because the board had always claimed that they have sufficient reserves in the bank but later it was revealed that they had put money in the share markets in the form of equity. An India series cancellation might have a cascading effect but reports have surfaced that the BCCI might extend their helping hand to lengthen the series to drive money into the CA account. In the wake of that possibility, Sydney Morning Herald reported that Cricket Australia secured $50 million loan from Commonwealth Bank as cover after seeking an up-front loan as part of its application for a larger amount of up to $200m. Meanwhile, Australian Cricketers’ Association, headed by Shane Watson, will convene a meeting this week to formalise a position on the state of the game’s finances. Another meeting has been scheduled between CA and state associations around the proposal for them to take a 25 percent reduction in grants from head office. The players have been communicated through an email from Australian Cricketers Association while Justin Langer, whose salary has been deducted by 50 %, has stated that another avenue might open up in such a case.
3 May 14:14 • SportsCafe • https://sportscafe.in/cricket/articles/2020/may/03/cricket-australia-secures-50-million-loan-from-commonwealth-bank-as-cover-for-india-series?utm_medium=rssRating: 0.30
8@eight: ASX set to edge lower
3 May 22:23
•
3 articles
Weight: 1.80
Importance: 1.80
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Best date: 3 May 22:23
Average US: 3.733333333333333
Weighted average US: 3.1681237569867884
Average GB: 0.0
Weighted average GB: 0.0
Average IN: 1.8333333333333333
Weighted average IN: 1.720587750415579
8@eight: ASX set to edge lower
The new month kicked off with volatility on Wall Street as stocks tumbled to close the week. the ASX is set to inch lower this morning, with futures at 8am pointing to a fall of 7 points at the open. 1. May kicks-off with upwell of volatility: The new month has been seized by the bears, with stock markets tumbling on Friday. The headlines of “sell in May and stay away” have been rampant, and perhaps justifiably. The losses for stock markets across the globe were steep, in what was something of a 180-degree change in the market sentiment that defined April’s trading. It ought to be said, activity was lower than average, and many major stock exchanges were closed throughout Asia and Europe. Nevertheless, for those that were open, it proved bearish day’s trade, with the S&P500 for one, shedding 2.81 per cent, as the VIX leapt back to the 37-mark. 2. Apple and Amazon disappoint the market: One catalyst for the tumble in global equities came as Amazon and Apple disappointed investors with its earnings on Friday morning. Although both companies delivered reasonable financial results for the last quarter, market participants were evidently underwhelmed by their appraisals regarding the future. Apple refused to deliver any guidance, citing the high degree of uncertainty in doing so. While Amazon flagged that though it expected a boost in top-line growth in the quarter ahead, higher expenses incurred from the fallout from the COVID-19 crisis will impact its future profitability. 3. A better week for US corporates: Apple and Amazon’s results, and the subsequent tumble in tech shares on Wall Street on Friday, belied what was an otherwise better than expected week for both the sector and the S&P500 more broadly from an earnings perspective. According to data compiled by Fact Set, the information technology sector has generally beaten analyst earnings expectations for the quarter, recording EPS growth of 4.2 per cent, above the 1.3 per cent estimates coming into the reporting period. The strong showing from the IT sector contributed to an improved blended EPS for the S&P500 for Q1, which rose to -13.7 per cent last week. 4. US-China trade tensions reinflame: The other major cause for Friday’s bearishness was of renewed trade tensions between the US and China, as both countries continue their feud about the origins of the COVID-19 crisis, and the culpability for the pandemic. US President Donald Trump floated the idea of re-introducing tariffs on certain Chinese goods, as punishment for what he says as China’s failure to control the spread of the COVID-19 virus. It was also reported on Friday in the financial media that President Trump is considering blocking a US Government investment fund from investing in Chinese equities on Security grounds. 5. ASX200 and AUD tumble: The possible return of a tit-for-tat trade-war pummelled Australian stocks and the AUD on Friday. The ASX200 shed 5.01 per cent to begin the new trading month, with the export sensitive materials and energy sectors pacing the index’s losses. The Australian Dollar also found itself victim to concerns about potential tariffs on the Chinese economy. Moving somewhat in lock-step with the off-shore Yuan, and as a proxy for the global growth outlook, the AUD/USD plunged 1.44 per cent to close the week’s trade at 0.6418. SPI Futures are pointing to a small drop for the ASX200 this morning. 6. Global growth pulse remains weak: Aside from the deleterious effects of another headwind to global trade, the global growth pulse is showing further signs of weakening. Though it proved a better than estimated result, US ISM Manufacturing data printed at its weakest since the GFC on Friday night. The US 10 Year Treasury yield remained mired 0.61 per cent, with the US yield curve flattening as a result. The US Dollar traded mixed, up against high beta-currencies and the Pound, but down against the Euro and Yen. And gold also bounced, rallying 0.83 per cent Friday to close trade at $US1700. 7. The week ahead: The data this week will home-in on earnings, central banks and macroeconomic data. Over 55 per cent of companies of the S&P500 have already reported, and although few market-moving names release earnings in the week ahead, market participants continue to track the aggregate earnings growth figure of the companies that are updating the market. The RBA and Bank of England both meet, and aren’t expected to materially change their policy suite. The RBA also delivers its Statement on Monetary Policy on Friday. And the big macroeconomic event will be US jobs data on Friday, which is forecast to reveal the US unemployment rate jumped to 16 per cent in April. 8. Market watch: ASX futures down 7 points or 0.1% to 5230 There was no Friday iron ore price data given the May 1 holiday in Asia This column was produced in commercial partnership between The Sydney Morning Herald, The Age and IG Information is of a general nature only.
3 May 22:23 • The Age • https://www.theage.com.au/business/markets/8-eight-asx-set-to-edge-lower-20200504-p54ph5.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
8@eight: ASX set to edge lower
The new month kicked off with volatility on Wall Street as stocks tumbled to close the week. the ASX is set to inch lower this morning, with futures at 8am pointing to a fall of 7 points at the open. 1. May kicks-off with upwell of volatility: The new month has been seized by the bears, with stock markets tumbling on Friday. The headlines of “sell in May and stay away” have been rampant, and perhaps justifiably. The losses for stock markets across the globe were steep, in what was something of a 180-degree change in the market sentiment that defined April’s trading. It ought to be said, activity was lower than average, and many major stock exchanges were closed throughout Asia and Europe. Nevertheless, for those that were open, it proved bearish day’s trade, with the S&P500 for one, shedding 2.81 per cent, as the VIX leapt back to the 37-mark. 2. Apple and Amazon disappoint the market: One catalyst for the tumble in global equities came as Amazon and Apple disappointed investors with its earnings on Friday morning. Although both companies delivered reasonable financial results for the last quarter, market participants were evidently underwhelmed by their appraisals regarding the future. Apple refused to deliver any guidance, citing the high degree of uncertainty in doing so. While Amazon flagged that though it expected a boost in top-line growth in the quarter ahead, higher expenses incurred from the fallout from the COVID-19 crisis will impact its future profitability. 3. A better week for US corporates: Apple and Amazon’s results, and the subsequent tumble in tech shares on Wall Street on Friday, belied what was an otherwise better than expected week for both the sector and the S&P500 more broadly from an earnings perspective. According to data compiled by Fact Set, the information technology sector has generally beaten analyst earnings expectations for the quarter, recording EPS growth of 4.2 per cent, above the 1.3 per cent estimates coming into the reporting period. The strong showing from the IT sector contributed to an improved blended EPS for the S&P500 for Q1, which rose to -13.7 per cent last week. 4. US-China trade tensions reinflame: The other major cause for Friday’s bearishness was of renewed trade tensions between the US and China, as both countries continue their feud about the origins of the COVID-19 crisis, and the culpability for the pandemic. US President Donald Trump floated the idea of re-introducing tariffs on certain Chinese goods, as punishment for what he says as China’s failure to control the spread of the COVID-19 virus. It was also reported on Friday in the financial media that President Trump is considering blocking a US Government investment fund from investing in Chinese equities on Security grounds. 5. ASX200 and AUD tumble: The possible return of a tit-for-tat trade-war pummelled Australian stocks and the AUD on Friday. The ASX200 shed 5.01 per cent to begin the new trading month, with the export sensitive materials and energy sectors pacing the index’s losses. The Australian Dollar also found itself victim to concerns about potential tariffs on the Chinese economy. Moving somewhat in lock-step with the off-shore Yuan, and as a proxy for the global growth outlook, the AUD/USD plunged 1.44 per cent to close the week’s trade at 0.6418. SPI Futures are pointing to a small drop for the ASX200 this morning. 6. Global growth pulse remains weak: Aside from the deleterious effects of another headwind to global trade, the global growth pulse is showing further signs of weakening. Though it proved a better than estimated result, US ISM Manufacturing data printed at its weakest since the GFC on Friday night. The US 10 Year Treasury yield remained mired 0.61 per cent, with the US yield curve flattening as a result. The US Dollar traded mixed, up against high beta-currencies and the Pound, but down against the Euro and Yen. And gold also bounced, rallying 0.83 per cent Friday to close trade at $US1700. 7. The week ahead: The data this week will home-in on earnings, central banks and macroeconomic data. Over 55 per cent of companies of the S&P500 have already reported, and although few market-moving names release earnings in the week ahead, market participants continue to track the aggregate earnings growth figure of the companies that are updating the market. The RBA and Bank of England both meet, and aren’t expected to materially change their policy suite. The RBA also delivers its Statement on Monetary Policy on Friday. And the big macroeconomic event will be US jobs data on Friday, which is forecast to reveal the US unemployment rate jumped to 16 per cent in April. 8. Market watch: ASX futures down 7 points or 0.1% to 5230 There was no Friday iron ore price data given the May 1 holiday in Asia This column was produced in commercial partnership between The Sydney Morning Herald, The Age and IG Information is of a general nature only.
3 May 22:23 • Brisbane Times • https://www.brisbanetimes.com.au/business/markets/8-eight-asx-set-to-edge-lower-20200504-p54ph5.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
8@eight: ASX set to edge lower
The new month kicked off with volatility on Wall Street as stocks tumbled to close the week. the ASX is set to inch lower this morning, with futures at 8am pointing to a fall of 7 points at the open. 1. May kicks-off with upwell of volatility: The new month has been seized by the bears, with stock markets tumbling on Friday. The headlines of “sell in May and stay away” have been rampant, and perhaps justifiably. The losses for stock markets across the globe were steep, in what was something of a 180-degree change in the market sentiment that defined April’s trading. It ought to be said, activity was lower than average, and many major stock exchanges were closed throughout Asia and Europe. Nevertheless, for those that were open, it proved bearish day’s trade, with the S&P500 for one, shedding 2.81 per cent, as the VIX leapt back to the 37-mark. 2. Apple and Amazon disappoint the market: One catalyst for the tumble in global equities came as Amazon and Apple disappointed investors with its earnings on Friday morning. Although both companies delivered reasonable financial results for the last quarter, market participants were evidently underwhelmed by their appraisals regarding the future. Apple refused to deliver any guidance, citing the high degree of uncertainty in doing so. While Amazon flagged that though it expected a boost in top-line growth in the quarter ahead, higher expenses incurred from the fallout from the COVID-19 crisis will impact its future profitability. 3. A better week for US corporates: Apple and Amazon’s results, and the subsequent tumble in tech shares on Wall Street on Friday, belied what was an otherwise better than expected week for both the sector and the S&P500 more broadly from an earnings perspective. According to data compiled by Fact Set, the information technology sector has generally beaten analyst earnings expectations for the quarter, recording EPS growth of 4.2 per cent, above the 1.3 per cent estimates coming into the reporting period. The strong showing from the IT sector contributed to an improved blended EPS for the S&P500 for Q1, which rose to -13.7 per cent last week. 4. US-China trade tensions reinflame: The other major cause for Friday’s bearishness was of renewed trade tensions between the US and China, as both countries continue their feud about the origins of the COVID-19 crisis, and the culpability for the pandemic. US President Donald Trump floated the idea of re-introducing tariffs on certain Chinese goods, as punishment for what he says as China’s failure to control the spread of the COVID-19 virus. It was also reported on Friday in the financial media that President Trump is considering blocking a US Government investment fund from investing in Chinese equities on Security grounds. 5. ASX200 and AUD tumble: The possible return of a tit-for-tat trade-war pummelled Australian stocks and the AUD on Friday. The ASX200 shed 5.01 per cent to begin the new trading month, with the export sensitive materials and energy sectors pacing the index’s losses. The Australian Dollar also found itself victim to concerns about potential tariffs on the Chinese economy. Moving somewhat in lock-step with the off-shore Yuan, and as a proxy for the global growth outlook, the AUD/USD plunged 1.44 per cent to close the week’s trade at 0.6418. SPI Futures are pointing to a small drop for the ASX200 this morning. 6. Global growth pulse remains weak: Aside from the deleterious effects of another headwind to global trade, the global growth pulse is showing further signs of weakening. Though it proved a better than estimated result, US ISM Manufacturing data printed at its weakest since the GFC on Friday night. The US 10 Year Treasury yield remained mired 0.61 per cent, with the US yield curve flattening as a result. The US Dollar traded mixed, up against high beta-currencies and the Pound, but down against the Euro and Yen. And gold also bounced, rallying 0.83 per cent Friday to close trade at $US1700. 7. The week ahead: The data this week will home-in on earnings, central banks and macroeconomic data. Over 55 per cent of companies of the S&P500 have already reported, and although few market-moving names release earnings in the week ahead, market participants continue to track the aggregate earnings growth figure of the companies that are updating the market. The RBA and Bank of England both meet, and aren’t expected to materially change their policy suite. The RBA also delivers its Statement on Monetary Policy on Friday. And the big macroeconomic event will be US jobs data on Friday, which is forecast to reveal the US unemployment rate jumped to 16 per cent in April. ASX futures down 7 points or 0.1% to 5230 There was no Friday iron ore price data given the May 1 holiday in Asia Information is of a general nature only.
3 May 22:23 • WAtoday • https://www.watoday.com.au/business/markets/8-eight-asx-set-to-edge-lower-20200504-p54ph5.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
The ACCC is facing a devilishly complex task in forcing Google and Facebook to pay publishers
3 May 14:15
•
3 articles
Weight: 1.80
Importance: 1.80
Age penalty: 1.00
Best date: 3 May 14:15
Average US: 3.733333333333333
Weighted average US: 3.1681237569867884
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Weighted average GB: 0.0
Average IN: 1.8333333333333333
Weighted average IN: 1.720587750415579
The ACCC is facing a devilishly complex task in forcing Google and Facebook to pay publishers
The Australian Competition and Consumer Commission's new code of conduct designed to bring fairness to the digital advertising marketplace will be world-first. But will it be world-class? The fight between media companies such as News Corporation and Nine, owner of this newspaper, and Google and Facebook, pits print against digital, regulation against the open internet, market power against political influence, Canberra against California, Walkley Award winning investigations against cat videos. Our online advertising market is worth about $9 billion a year, and for every $100 spent by advertisers online, excluding classifieds, $47 goes to Google, $24 to Facebook and $29 elsewhere. But given the intricacies of social media ecosystems, the opacity of digital ad markets, the platform and publishers’ co-dependent but mutually antagonistic embrace, the fact that social media and search engines operate completely different revenue models, attempting to find a way forward will not be easy. Technically, the purpose of the ACCC code is to correct the "significant imbalance" between the bargaining power of digital platforms and the news media. In internet searches and social media, Google and Facebook are so dominant they are the gateways to the internet, "unavoidable trading partners" for those seeking to do business on the web. In declaring this the ACCC agrees with the publishers to an extent that has puzzled the web giants. As did the sudden intervention of the government, stung by the closure of local and regional newspapers thanks to the coronavirus advertising collapse. It dumped the voluntary negotiations and demanded a mandatory code. The platforms were blindsided. The ACCC says there is considerable vital and urgent work to be done. It has to formulate a way to value news content. Good luck. The internet is very good at ranking readership of stories, but if my Big Brother exclusive gets more clicks than your political investigation, it is more valuable, right? And you thought putting a price on carbon was hard. News Corp is alive to the risks if the publishers don’t adopt a uniform negotiating position and, say, Facebook closes a deal with Guardian Australia, but not News Corp. It wants a provision that bans data collection until all major news publishers have signed up. The task of designing a mandatory code, with enforcement, penalty and appeal provisions will be very difficult. Even more difficult: enforcing it. Litigation at some point appears certain. Some publishers advocate a licence system, where a designated body collects fees and distributes them to members. But are we ready for a media version of the Australian Wheat Board? Web giants would prefer a pay-per-click system, used in digital advertising. But publishers would shout blue murder, given platforms use "snippets", preview panes to display content, so readers get the story without leaving the site. The news industry must fight hard to avoid the experience of musicians, which get a pittance from the platforms. It took the star power of Taylor Swift to win a victory over Apple, which backed down after announcing it would not pay musicians during free the introductory launch of its streaming service. When Spain forced Google to pay a licence fee for news content, the company shut its local Google News operation down. France is attempting something similar right now. Let’s be clear. All those who consume the news must pay for it, whether they be digital web giants, or humble newspaper readers. But the ACCC must ensure its reforms are not just for the big publishers like News and Nine, but also for the 122-year-old Barrier Daily Truth, which stopped publishing two months ago. It is clear the internet killed print classified revenues just as video killed the radio star. But did those dollars all flow to Facebook and Google or to platforms like Domain and Carsales? We wish the ACCC luck, but it will be difficult to put the genie back in the bottle.
3 May 14:15 • The Age • https://www.theage.com.au/business/companies/the-accc-is-facing-a-devilishly-complex-task-in-forcing-google-and-facebook-to-pay-publishers-20200503-p54pdy.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
The ACCC is facing a devilishly complex task in forcing Google and Facebook to pay publishers
The Australian Competition and Consumer Commission's new code of conduct designed to bring fairness to the digital advertising marketplace will be world-first. But will it be world-class? The fight between media companies such as News Corporation and Nine, owner of this newspaper, and Google and Facebook, pits print against digital, regulation against the open internet, market power against political influence, Canberra against California, Walkley Award winning investigations against cat videos. Our online advertising market is worth about $9 billion a year, and for every $100 spent by advertisers online, excluding classifieds, $47 goes to Google, $24 to Facebook and $29 elsewhere. But given the intricacies of social media ecosystems, the opacity of digital ad markets, the platform and publishers’ co-dependent but mutually antagonistic embrace, the fact that social media and search engines operate completely different revenue models, attempting to find a way forward will not be easy. Technically, the purpose of the ACCC code is to correct the "significant imbalance" between the bargaining power of digital platforms and the news media. In internet searches and social media, Google and Facebook are so dominant they are the gateways to the internet, "unavoidable trading partners" for those seeking to do business on the web. In declaring this the ACCC agrees with the publishers to an extent that has puzzled the web giants. As did the sudden intervention of the government, stung by the closure of local and regional newspapers thanks to the coronavirus advertising collapse. It dumped the voluntary negotiations and demanded a mandatory code. The platforms were blindsided. The ACCC says there is considerable vital and urgent work to be done. It has to formulate a way to value news content. Good luck. The internet is very good at ranking readership of stories, but if my Big Brother exclusive gets more clicks than your political investigation, it is more valuable, right? And you thought putting a price on carbon was hard. News Corp is alive to the risks if the publishers don’t adopt a uniform negotiating position and, say, Facebook closes a deal with Guardian Australia, but not News Corp. It wants a provision that bans data collection until all major news publishers have signed up. The task of designing a mandatory code, with enforcement, penalty and appeal provisions will be very difficult. Even more difficult: enforcing it. Litigation at some point appears certain. Some publishers advocate a licence system, where a designated body collects fees and distributes them to members. But are we ready for a media version of the Australian Wheat Board? Web giants would prefer a pay-per-click system, used in digital advertising. But publishers would shout blue murder, given platforms use "snippets", preview panes to display content, so readers get the story without leaving the site. The news industry must fight hard to avoid the experience of musicians, which get a pittance from the platforms. It took the star power of Taylor Swift to win a victory over Apple, which backed down after announcing it would not pay musicians during free the introductory launch of its streaming service. When Spain forced Google to pay a licence fee for news content, the company shut its local Google News operation down. France is attempting something similar right now. Let’s be clear. All those who consume the news must pay for it, whether they be digital web giants, or humble newspaper readers. But the ACCC must ensure its reforms are not just for the big publishers like News and Nine, but also for the 122-year-old Barrier Daily Truth, which stopped publishing two months ago. It is clear the internet killed print classified revenues just as video killed the radio star. But did those dollars all flow to Facebook and Google or to platforms like Domain and Carsales? We wish the ACCC luck, but it will be difficult to put the genie back in the bottle.
3 May 14:15 • Brisbane Times • https://www.brisbanetimes.com.au/business/companies/the-accc-is-facing-a-devilishly-complex-task-in-forcing-google-and-facebook-to-pay-publishers-20200503-p54pdy.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
The ACCC is facing a devilishly complex task in forcing Google and Facebook to pay publishers
The Australian Competition and Consumer Commission's new code of conduct designed to bring fairness to the digital advertising marketplace will be world-first. But will it be world-class? The fight between media companies such as News Corporation and Nine, owner of this newspaper, and Google and Facebook, pits print against digital, regulation against the open internet, market power against political influence, Canberra against California, Walkley Award winning investigations against cat videos. Our online advertising market is worth about $9 billion a year, and for every $100 spent by advertisers online, excluding classifieds, $47 goes to Google, $24 to Facebook and $29 elsewhere. But given the intricacies of social media ecosystems, the opacity of digital ad markets, the platform and publishers’ co-dependent but mutually antagonistic embrace, the fact that social media and search engines operate completely different revenue models, attempting to find a way forward will not be easy. Technically, the purpose of the ACCC code is to correct the "significant imbalance" between the bargaining power of digital platforms and the news media. In internet searches and social media, Google and Facebook are so dominant they are the gateways to the internet, "unavoidable trading partners" for those seeking to do business on the web. In declaring this the ACCC agrees with the publishers to an extent that has puzzled the web giants. As did the sudden intervention of the government, stung by the closure of local and regional newspapers thanks to the coronavirus advertising collapse. It dumped the voluntary negotiations and demanded a mandatory code. The platforms were blindsided. The ACCC says there is considerable vital and urgent work to be done. It has to formulate a way to value news content. Good luck. The internet is very good at ranking readership of stories, but if my Big Brother exclusive gets more clicks than your political investigation, it is more valuable, right? And you thought putting a price on carbon was hard. News Corp is alive to the risks if the publishers don’t adopt a uniform negotiating position and, say, Facebook closes a deal with Guardian Australia, but not News Corp. It wants a provision that bans data collection until all major news publishers have signed up. The task of designing a mandatory code, with enforcement, penalty and appeal provisions will be very difficult. Even more difficult: enforcing it. Litigation at some point appears certain. Some publishers advocate a licence system, where a designated body collects fees and distributes them to members. But are we ready for a media version of the Australian Wheat Board? Web giants would prefer a pay-per-click system, used in digital advertising. But publishers would shout blue murder, given platforms use "snippets", preview panes to display content, so readers get the story without leaving the site. The news industry must fight hard to avoid the experience of musicians, which get a pittance from the platforms. It took the star power of Taylor Swift to win a victory over Apple, which backed down after announcing it would not pay musicians during free the introductory launch of its streaming service. When Spain forced Google to pay a licence fee for news content, the company shut its local Google News operation down. France is attempting something similar right now. Let’s be clear. All those who consume the news must pay for it, whether they be digital web giants, or humble newspaper readers. But the ACCC must ensure its reforms are not just for the big publishers like News and Nine, but also for the 122-year-old Barrier Daily Truth, which stopped publishing two months ago. It is clear the internet killed print classified revenues just as video killed the radio star. But did those dollars all flow to Facebook and Google or to platforms like Domain and Carsales? We wish the ACCC luck, but it will be difficult to put the genie back in the bottle.
3 May 14:15 • WAtoday • https://www.watoday.com.au/business/companies/the-accc-is-facing-a-devilishly-complex-task-in-forcing-google-and-facebook-to-pay-publishers-20200503-p54pdy.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
First the Australian economy needs CPR. We’ll worry about reform later
3 May 14:15
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Best date: 3 May 14:15
Average US: 3.733333333333333
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First the Australian economy needs CPR. We’ll worry about reform later
I can’t take seriously all those people saying we mustn’t waste a crisis, but seize this great opportunity to introduce sweeping economic reform. It’s like telling a baby who hasn’t yet learnt to walk it should start training for the Olympics. It’s true, of course, that we won’t get back to economic life as we used to know it – that is, knew it before the global financial crisis, more than a decade ago – until we get back to reasonably strong annual improvement in the productivity of labour. But the plain fact is, you’ve got to have a functioning economy before you can worry about how fast its productivity is improving. So there’ll be a time to debate which policies would or wouldn't do most to enhance productivity, but we have more pressing matters to attend to. Some in the don’t-waste-the-crisis party can be forgiven because they’re under 50 and have no memory of what happens in recessions. But as my colleague Shane Wright has said, most of them are "the usual suspects, falling back on their usual agendas". They have no genuine concern about the economy’s present life-threatened state, but are business people engaged in rent-seeking, or economists running off faith in their economic model, whether or not it’s supported by empirical evidence their theory actually works. These urgers have forgotten that micro-economic reform seeks to increase economic growth by making the supply (production) side of the economy work more efficiently. It delivers results only over the medium to long term. It’s thus no substitute for macro-economic management, which deals with managing the demand side of the economy in the short term. Right now, the prospect of a 10 per cent unemployment rate tells us we have more supply than we’re able to use. Clearly, our problem’s that demand is insufficient. The improvement in economic efficiency we assume we could gain by, say, taxing land rather than the transfer of it, is minor compared with the monumental inefficiency we know for certain is occurring because 10 per cent of our workers can’t find work. Right now, we don’t even have an economy that’s functioning, much less functioning well. Much of it’s closed - locked up by government decree. We’re starting to ease the lockdown, but we won’t be opening our borders for another year or two. When we do have most of the lockdown removed, what will we see? The economy won’t snap back. Not even bounce back in any significant way. True, once businesses are allowed to reopen they’ll be making some sales rather than next to none. But with so many households unemployed, sales won’t go back to anything like where they were. Most households and businesses will be in cost-cutting mode. Firms have been incurring overheads while earning little. Even those households still working will be worried about their big mortgages and fearful of losing their own jobs. As Treasury secretary Dr Steven Kennedy has warned, “some jobs and businesses will have been lost permanently”. Most firms and households will be getting back to some semblance of normality, but few will be doing much that causes the economy to grow in any positive sense. As Reserve Bank governor Dr Philip Lowe has said, firms and households are suffering from a "high level of uncertainty about the future" and will engage in "precautionary behaviour". They’ll be saving not spending. Sound like a bounce-back, or an economy still in the intensive care unit? Ask yourself this: which are the forces that will propel the economy forward? It won’t be the main factor we’ve relied on in recent years – high immigration. Our population’s now falling, as people on temporary visas are sent home and not replaced. (Not that population growth does anything much to lift income per person.) It won’t be “external stimulus” because the rest of the world is growing faster than us (it isn’t), or a lower dollar is making our exports cheaper to foreigners because we’ll continue banning foreign tourists and overseas students. Export commodity prices aren’t rising. It won’t be growth in real wages (employers will compulsively demand a wage freeze) nor a "wealth effect" from rising house prices prompting households to cut their rate of saving. And a key missing piece: it won’t be big cuts in interest rates to encourage borrowing and spending. That leaves only "fiscal stimulus" – the budget. The huge government spending so far has merely limited the extent of the economy’s fall. Should Scott Morrison soon start winding it back as he says he plans to, we could fall even further. No, if we're to actually recover what will come next is a lot more government spending, particularly on useful projects. It can only be a government-led recovery. Ross Gittins is the Herald’s economics editor.
3 May 14:15 • The Age • https://www.theage.com.au/business/the-economy/first-the-australian-economy-needs-cpr-we-ll-worry-about-reform-later-20200503-p54pc7.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
First the Australian economy needs CPR. We’ll worry about reform later
I can’t take seriously all those people saying we mustn’t waste a crisis, but seize this great opportunity to introduce sweeping economic reform. It’s like telling a baby who hasn’t yet learnt to walk it should start training for the Olympics. It’s true, of course, that we won’t get back to economic life as we used to know it – that is, knew it before the global financial crisis, more than a decade ago – until we get back to reasonably strong annual improvement in the productivity of labour. But the plain fact is, you’ve got to have a functioning economy before you can worry about how fast its productivity is improving. So there’ll be a time to debate which policies would or wouldn't do most to enhance productivity, but we have more pressing matters to attend to. Some in the don’t-waste-the-crisis party can be forgiven because they’re under 50 and have no memory of what happens in recessions. But as my colleague Shane Wright has said, most of them are "the usual suspects, falling back on their usual agendas". They have no genuine concern about the economy’s present life-threatened state, but are business people engaged in rent-seeking, or economists running off faith in their economic model, whether or not it’s supported by empirical evidence their theory actually works. These urgers have forgotten that micro-economic reform seeks to increase economic growth by making the supply (production) side of the economy work more efficiently. It delivers results only over the medium to long term. It’s thus no substitute for macro-economic management, which deals with managing the demand side of the economy in the short term. Right now, the prospect of a 10 per cent unemployment rate tells us we have more supply than we’re able to use. Clearly, our problem’s that demand is insufficient. The improvement in economic efficiency we assume we could gain by, say, taxing land rather than the transfer of it, is minor compared with the monumental inefficiency we know for certain is occurring because 10 per cent of our workers can’t find work. Right now, we don’t even have an economy that’s functioning, much less functioning well. Much of it’s closed - locked up by government decree. We’re starting to ease the lockdown, but we won’t be opening our borders for another year or two. When we do have most of the lockdown removed, what will we see? The economy won’t snap back. Not even bounce back in any significant way. True, once businesses are allowed to reopen they’ll be making some sales rather than next to none. But with so many households unemployed, sales won’t go back to anything like where they were. Most households and businesses will be in cost-cutting mode. Firms have been incurring overheads while earning little. Even those households still working will be worried about their big mortgages and fearful of losing their own jobs. As Treasury secretary Dr Steven Kennedy has warned, “some jobs and businesses will have been lost permanently”. Most firms and households will be getting back to some semblance of normality, but few will be doing much that causes the economy to grow in any positive sense. As Reserve Bank governor Dr Philip Lowe has said, firms and households are suffering from a "high level of uncertainty about the future" and will engage in "precautionary behaviour". They’ll be saving not spending. Sound like a bounce-back, or an economy still in the intensive care unit? Ask yourself this: which are the forces that will propel the economy forward? It won’t be the main factor we’ve relied on in recent years – high immigration. Our population’s now falling, as people on temporary visas are sent home and not replaced. (Not that population growth does anything much to lift income per person.) It won’t be “external stimulus” because the rest of the world is growing faster than us (it isn’t), or a lower dollar is making our exports cheaper to foreigners because we’ll continue banning foreign tourists and overseas students. Export commodity prices aren’t rising. It won’t be growth in real wages (employers will compulsively demand a wage freeze) nor a "wealth effect" from rising house prices prompting households to cut their rate of saving. And a key missing piece: it won’t be big cuts in interest rates to encourage borrowing and spending. That leaves only "fiscal stimulus" – the budget. The huge government spending so far has merely limited the extent of the economy’s fall. Should Scott Morrison soon start winding it back as he says he plans to, we could fall even further. No, if we're to actually recover what will come next is a lot more government spending, particularly on useful projects. It can only be a government-led recovery. Ross Gittins is the Herald’s economics editor.
3 May 14:15 • Brisbane Times • https://www.brisbanetimes.com.au/business/the-economy/first-the-australian-economy-needs-cpr-we-ll-worry-about-reform-later-20200503-p54pc7.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
First the Australian economy needs CPR. We’ll worry about reform later
I can’t take seriously all those people saying we mustn’t waste a crisis, but seize this great opportunity to introduce sweeping economic reform. It’s like telling a baby who hasn’t yet learnt to walk it should start training for the Olympics. It’s true, of course, that we won’t get back to economic life as we used to know it – that is, knew it before the global financial crisis, more than a decade ago – until we get back to reasonably strong annual improvement in the productivity of labour. But the plain fact is, you’ve got to have a functioning economy before you can worry about how fast its productivity is improving. So there’ll be a time to debate which policies would or wouldn't do most to enhance productivity, but we have more pressing matters to attend to. Some in the don’t-waste-the-crisis party can be forgiven because they’re under 50 and have no memory of what happens in recessions. But as my colleague Shane Wright has said, most of them are "the usual suspects, falling back on their usual agendas". They have no genuine concern about the economy’s present life-threatened state, but are business people engaged in rent-seeking, or economists running off faith in their economic model, whether or not it’s supported by empirical evidence their theory actually works. These urgers have forgotten that micro-economic reform seeks to increase economic growth by making the supply (production) side of the economy work more efficiently. It delivers results only over the medium to long term. It’s thus no substitute for macro-economic management, which deals with managing the demand side of the economy in the short term. Right now, the prospect of a 10 per cent unemployment rate tells us we have more supply than we’re able to use. Clearly, our problem’s that demand is insufficient. The improvement in economic efficiency we assume we could gain by, say, taxing land rather than the transfer of it, is minor compared with the monumental inefficiency we know for certain is occurring because 10 per cent of our workers can’t find work. Right now, we don’t even have an economy that’s functioning, much less functioning well. Much of it’s closed - locked up by government decree. We’re starting to ease the lockdown, but we won’t be opening our borders for another year or two. When we do have most of the lockdown removed, what will we see? The economy won’t snap back. Not even bounce back in any significant way. True, once businesses are allowed to reopen they’ll be making some sales rather than next to none. But with so many households unemployed, sales won’t go back to anything like where they were. Most households and businesses will be in cost-cutting mode. Firms have been incurring overheads while earning little. Even those households still working will be worried about their big mortgages and fearful of losing their own jobs. As Treasury secretary Dr Steven Kennedy has warned, “some jobs and businesses will have been lost permanently”. Most firms and households will be getting back to some semblance of normality, but few will be doing much that causes the economy to grow in any positive sense. As Reserve Bank governor Dr Philip Lowe has said, firms and households are suffering from a "high level of uncertainty about the future" and will engage in "precautionary behaviour". They’ll be saving not spending. Sound like a bounce-back, or an economy still in the intensive care unit? Ask yourself this: which are the forces that will propel the economy forward? It won’t be the main factor we’ve relied on in recent years – high immigration. Our population’s now falling, as people on temporary visas are sent home and not replaced. (Not that population growth does anything much to lift income per person.) It won’t be “external stimulus” because the rest of the world is growing faster than us (it isn’t), or a lower dollar is making our exports cheaper to foreigners because we’ll continue banning foreign tourists and overseas students. Export commodity prices aren’t rising. It won’t be growth in real wages (employers will compulsively demand a wage freeze) nor a "wealth effect" from rising house prices prompting households to cut their rate of saving. And a key missing piece: it won’t be big cuts in interest rates to encourage borrowing and spending. That leaves only "fiscal stimulus" – the budget. The huge government spending so far has merely limited the extent of the economy’s fall. Should Scott Morrison soon start winding it back as he says he plans to, we could fall even further. No, if we're to actually recover what will come next is a lot more government spending, particularly on useful projects. It can only be a government-led recovery.
3 May 14:15 • WAtoday • https://www.watoday.com.au/business/the-economy/first-the-australian-economy-needs-cpr-we-ll-worry-about-reform-later-20200503-p54pc7.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
'Never more critical': Government pressed on low-carbon recovery study
3 May 14:01
•
3 articles
Weight: 1.80
Importance: 1.80
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Best date: 3 May 14:01
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'Never more critical': Government pressed on low-carbon recovery study
The Berejiklian government is being urged by a lower house committee to report within months how the promotion of low-carbon technologies can help revive NSW's economy as well as reducing its dependence on coal. The five-member lower house Committee on Environment and Planning - three of whom are Liberal MPs - last week agreed to ask the government for the study of the employment and investment opportunities that can be generated by the renewable energy sector and a shift to a low-carbon economy. Alex Greenwich, the independent MP who is also chair of the committee, said the workforce and economic opportunities from accelerating the take-up of wind and solar energy would be "critical" for the state's rebound from the COVID-19 pandemic. "Our committee has heard thousands of new jobs are waiting to be created and there has never been a more important time for this," Mr Greenwich said. The jobs range from construction related to the building of new transmission and storage for the power sector, investment in hydrogen technology, to stepping up energy efficiency in homes and businesses that would have lasting benefits. "There is a lot NSW can do to future proof our economy by increasing access and supply of renewable energy both locally and for export," he said. The committee had planned to hold hearings into its energy inquiry by now in places such as the Hunter Valley, before the coronavirus-linked lockdowns delayed the events. The recent collapse in export thermal coal prices - now trading at about half their levels of two years ago - has only added to the urgency of weaning the region off fossil fuels, Mr Greenwich said. "What is going to happen to this region when these exports and dependency [on coal] drop off further?" he said. "This has to be an area of priority." Energy and Environment Minister Matt Kean, who has said he aims to accelerate the roll-out of renewable energy in NSW, said he would respond to the committee's request "shortly". “I welcome the committee’s support for ensuring a strong and sustainable economic recovery from COVID-19 and their approach to seeking expert input on this matter," Mr Kean said. The committee members include Liberal MPs, Felicity Wilson, James Griffin and Nathaniel Smith, and Labor's Anoulack Chanthivong. Rooftop solar energy installations were almost 900 megawatts in the first four months of this year, with new systems in April more than 50 per cent higher than the same month in 2019, Green Energy Markets reported on Friday. The impact on business of the coronavirus, however, will likely show a big fall in solar demand in coming months.
3 May 14:01 • The Age • https://www.theage.com.au/environment/climate-change/never-more-critical-government-pressed-on-low-carbon-recovery-study-20200503-p54pci.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
'Never more critical': Government pressed on low-carbon recovery study
The Berejiklian government is being urged by a lower house committee to report within months how the promotion of low-carbon technologies can help revive NSW's economy as well as reducing its dependence on coal. The five-member lower house Committee on Environment and Planning - three of whom are Liberal MPs - last week agreed to ask the government for the study of the employment and investment opportunities that can be generated by the renewable energy sector and a shift to a low-carbon economy. Alex Greenwich, the independent MP who is also chair of the committee, said the workforce and economic opportunities from accelerating the take-up of wind and solar energy would be "critical" for the state's rebound from the COVID-19 pandemic. "Our committee has heard thousands of new jobs are waiting to be created and there has never been a more important time for this," Mr Greenwich said. The jobs range from construction related to the building of new transmission and storage for the power sector, investment in hydrogen technology, to stepping up energy efficiency in homes and businesses that would have lasting benefits. "There is a lot NSW can do to future proof our economy by increasing access and supply of renewable energy both locally and for export," he said. The committee had planned to hold hearings into its energy inquiry by now in places such as the Hunter Valley, before the coronavirus-linked lockdowns delayed the events. The recent collapse in export thermal coal prices - now trading at about half their levels of two years ago - has only added to the urgency of weaning the region off fossil fuels, Mr Greenwich said. "What is going to happen to this region when these exports and dependency [on coal] drop off further?" he said. "This has to be an area of priority." Energy and Environment Minister Matt Kean, who has said he aims to accelerate the roll-out of renewable energy in NSW, said he would respond to the committee's request "shortly". “I welcome the committee’s support for ensuring a strong and sustainable economic recovery from COVID-19 and their approach to seeking expert input on this matter," Mr Kean said. The committee members include Liberal MPs, Felicity Wilson, James Griffin and Nathaniel Smith, and Labor's Anoulack Chanthivong. Rooftop solar energy installations were almost 900 megawatts in the first four months of this year, with new systems in April more than 50 per cent higher than the same month in 2019, Green Energy Markets reported on Friday. The impact on business of the coronavirus, however, will likely show a big fall in solar demand in coming months.
3 May 14:01 • Brisbane Times • https://www.brisbanetimes.com.au/environment/climate-change/never-more-critical-government-pressed-on-low-carbon-recovery-study-20200503-p54pci.htmlRating: 0.86
'Never more critical': Government pressed on low-carbon recovery study
The Berejiklian government is being urged by a lower house committee to report within months how the promotion of low-carbon technologies can help revive NSW's economy as well as reducing its dependence on coal. The five-member lower house Committee on Environment and Planning - three of whom are Liberal MPs - last week agreed to ask the government for the study of the employment and investment opportunities that can be generated by the renewable energy sector and a shift to a low-carbon economy. Alex Greenwich, the independent MP who is also chair of the committee, said the workforce and economic opportunities from accelerating the take-up of wind and solar energy would be "critical" for the state's rebound from the COVID-19 pandemic. "Our committee has heard thousands of new jobs are waiting to be created and there has never been a more important time for this," Mr Greenwich said. The jobs range from construction related to the building of new transmission and storage for the power sector, investment in hydrogen technology, to stepping up energy efficiency in homes and businesses that would have lasting benefits. "There is a lot NSW can do to future proof our economy by increasing access and supply of renewable energy both locally and for export," he said. The committee had planned to hold hearings into its energy inquiry by now in places such as the Hunter Valley, before the coronavirus-linked lockdowns delayed the events. The recent collapse in export thermal coal prices - now trading at about half their levels of two years ago - has only added to the urgency of weaning the region off fossil fuels, Mr Greenwich said. "What is going to happen to this region when these exports and dependency [on coal] drop off further?" he said. "This has to be an area of priority." Energy and Environment Minister Matt Kean, who has said he aims to accelerate the roll-out of renewable energy in NSW, said he would respond to the committee's request "shortly". “I welcome the committee’s support for ensuring a strong and sustainable economic recovery from COVID-19 and their approach to seeking expert input on this matter," Mr Kean said. The committee members include Liberal MPs, Felicity Wilson, James Griffin and Nathaniel Smith, and Labor's Anoulack Chanthivong. Rooftop solar energy installations were almost 900 megawatts in the first four months of this year, with new systems in April more than 50 per cent higher than the same month in 2019, Green Energy Markets reported on Friday. The impact on business of the coronavirus, however, will likely show a big fall in solar demand in coming months.
3 May 14:01 • WAtoday • https://www.watoday.com.au/environment/climate-change/never-more-critical-government-pressed-on-low-carbon-recovery-study-20200503-p54pci.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
$300m clean energy fund to back fossil-fuel hydrogen projects
3 May 14:01
•
3 articles
Weight: 1.80
Importance: 1.80
Age penalty: 1.00
Best date: 3 May 14:01
Average US: 3.733333333333333
Weighted average US: 3.1681237569867884
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Weighted average GB: 0.0
Average IN: 1.8333333333333333
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$300m clean energy fund to back fossil-fuel hydrogen projects
The Morrison government has committed $300 million to the Clean Energy Finance Corporation and instructed it to invest in new hydrogen energy projects including those powered by fossil fuels. The move makes clear the government's position on the debate over the potential to develop an emissions-free hydrogen industry powered exclusively by renewable energy. "Gas and gas transmission networks already play an essential role in energy reliability, but gas has even more potential as a resource to produce and transmit hydrogen," said Energy and Emissions Reduction Minister Angus Taylor. Renewable energy advocates, along with Labor-led governments in Queensland, Western Australia and the ACT, argue fossil-fuelled hydrogen should be barred from public funds, which should flow to “green hydrogen” powered by renewables. State governments contribute to regulation of the energy sector through the Council of Australian Governments (COAG). But crucially for Mr Taylor, he secured majority support at the November COAG meeting to develop a hydrogen industry under a "technology-neutral" approach including all power source options. Hydrogen has emerged in recent months as a key element of the Morrison government’s emissions reduction strategy, which Mr Taylor said would be based on a "technology investment road map". Mr Taylor said his goal was to back projects that could reach a long-term goal of producing hydrogen at $2 a kilogram – the point "where hydrogen becomes competitive with alternative energy sources in large-scale deployment across our energy systems". The announcement of the Advancing Hydrogen Fund follows a crash in the global oil market crash. The fall has flowed on to lower gas prices, which Mr Taylor said “provides us with an opportunity for strategic economic stimulus”. The government has estimated an Australian hydrogen industry could create more than 8000 jobs and generate about $11 billion a year in GDP by 2050. Chief Scientist Alan Finkel has said a domestic hydrogen industry could underpin an energy export boom for Australia, and Australia should develop it using renewables and fossil fuel to avoid the risks associated with reliance on any one fuel source. "By producing hydrogen from natural gas or coal, using carbon capture and permanent storage, we can add back two more lanes to our energy highway, ensuring we have four primary energy sources to meet the needs of the future – solar, wind, hydrogen from natural gas, and hydrogen from coal," Dr Finkel said. "Think for a moment of the vast amounts of steel, aluminium and concrete needed to support, build and service solar and wind structures. "What if there was a resources shortage? It would be prudent, therefore, to safeguard against any potential resource limitations with another energy source." In time, green hydrogen could take over and drive a net zero emissions global economy, according to Dr Finkel. The Advancing Hydrogen Fund will provide debt or equity finance to commercial projects requiring $10 million or more in capital, which Clean Energy Finance Corporation chief executive Ian Learmonth said would fill market gaps created by "technology, development or commercial challenges". Mr Taylor recently announced a $70 million fund for green hydrogen project development through the Australian Renewable Energy Agency.
3 May 14:01 • The Age • https://www.theage.com.au/politics/federal/300m-clean-energy-fund-to-back-fossil-fuel-hydrogen-projects-20200503-p54pdr.html?ref=rss&utm_medium=rss&utm_source=rss_politics_federalRating: 2.20
$300m clean energy fund to back fossil-fuel hydrogen projects
The Morrison government has committed $300 million to the Clean Energy Finance Corporation and instructed it to invest in new hydrogen energy projects including those powered by fossil fuels. The move makes clear the government's position on the debate over the potential to develop an emissions-free hydrogen industry powered exclusively by renewable energy. "Gas and gas transmission networks already play an essential role in energy reliability, but gas has even more potential as a resource to produce and transmit hydrogen," said Energy and Emissions Reduction Minister Angus Taylor. Renewable energy advocates, along with Labor-led governments in Queensland, Western Australia and the ACT, argue fossil-fuelled hydrogen should be barred from public funds, which should flow to “green hydrogen” powered by renewables. State governments contribute to regulation of the energy sector through the Council of Australian Governments (COAG). But crucially for Mr Taylor, he secured majority support at the November COAG meeting to develop a hydrogen industry under a "technology-neutral" approach including all power source options. Hydrogen has emerged in recent months as a key element of the Morrison government’s emissions reduction strategy, which Mr Taylor said would be based on a "technology investment road map". Mr Taylor said his goal was to back projects that could reach a long-term goal of producing hydrogen at $2 a kilogram – the point "where hydrogen becomes competitive with alternative energy sources in large-scale deployment across our energy systems". The announcement of the Advancing Hydrogen Fund follows a crash in the global oil market crash. The fall has flowed on to lower gas prices, which Mr Taylor said “provides us with an opportunity for strategic economic stimulus”. The government has estimated an Australian hydrogen industry could create more than 8000 jobs and generate about $11 billion a year in GDP by 2050. Chief Scientist Alan Finkel has said a domestic hydrogen industry could underpin an energy export boom for Australia, and Australia should develop it using renewables and fossil fuel to avoid the risks associated with reliance on any one fuel source. "By producing hydrogen from natural gas or coal, using carbon capture and permanent storage, we can add back two more lanes to our energy highway, ensuring we have four primary energy sources to meet the needs of the future – solar, wind, hydrogen from natural gas, and hydrogen from coal," Dr Finkel said. "Think for a moment of the vast amounts of steel, aluminium and concrete needed to support, build and service solar and wind structures. "What if there was a resources shortage? It would be prudent, therefore, to safeguard against any potential resource limitations with another energy source." In time, green hydrogen could take over and drive a net zero emissions global economy, according to Dr Finkel. The Advancing Hydrogen Fund will provide debt or equity finance to commercial projects requiring $10 million or more in capital, which Clean Energy Finance Corporation chief executive Ian Learmonth said would fill market gaps created by "technology, development or commercial challenges". Mr Taylor recently announced a $70 million fund for green hydrogen project development through the Australian Renewable Energy Agency.
3 May 14:01 • Brisbane Times • https://www.brisbanetimes.com.au/politics/federal/300m-clean-energy-fund-to-back-fossil-fuel-hydrogen-projects-20200503-p54pdr.html?ref=rss&utm_medium=rss&utm_source=rss_politics_federalRating: 0.86
$300m clean energy fund to back fossil-fuel hydrogen projects
The Morrison government has committed $300 million to the Clean Energy Finance Corporation and instructed it to invest in new hydrogen energy projects including those powered by fossil fuels. The move makes clear the government's position on the debate over the potential to develop an emissions-free hydrogen industry powered exclusively by renewable energy. "Gas and gas transmission networks already play an essential role in energy reliability, but gas has even more potential as a resource to produce and transmit hydrogen," said Energy and Emissions Reduction Minister Angus Taylor. Renewable energy advocates, along with Labor-led governments in Queensland, Western Australia and the ACT, argue fossil-fuelled hydrogen should be barred from public funds, which should flow to “green hydrogen” powered by renewables. State governments contribute to regulation of the energy sector through the Council of Australian Governments (COAG). But crucially for Mr Taylor, he secured majority support at the November COAG meeting to develop a hydrogen industry under a "technology-neutral" approach including all power source options. Hydrogen has emerged in recent months as a key element of the Morrison government’s emissions reduction strategy, which Mr Taylor said would be based on a "technology investment road map". Mr Taylor said his goal was to back projects that could reach a long-term goal of producing hydrogen at $2 a kilogram – the point "where hydrogen becomes competitive with alternative energy sources in large-scale deployment across our energy systems". The announcement of the Advancing Hydrogen Fund follows a crash in the global oil market crash. The fall has flowed on to lower gas prices, which Mr Taylor said “provides us with an opportunity for strategic economic stimulus”. The government has estimated an Australian hydrogen industry could create more than 8000 jobs and generate about $11 billion a year in GDP by 2050. Chief Scientist Alan Finkel has said a domestic hydrogen industry could underpin an energy export boom for Australia, and Australia should develop it using renewables and fossil fuel to avoid the risks associated with reliance on any one fuel source. "By producing hydrogen from natural gas or coal, using carbon capture and permanent storage, we can add back two more lanes to our energy highway, ensuring we have four primary energy sources to meet the needs of the future – solar, wind, hydrogen from natural gas, and hydrogen from coal," Dr Finkel said. "Think for a moment of the vast amounts of steel, aluminium and concrete needed to support, build and service solar and wind structures. "What if there was a resources shortage? It would be prudent, therefore, to safeguard against any potential resource limitations with another energy source." In time, green hydrogen could take over and drive a net zero emissions global economy, according to Dr Finkel. The Advancing Hydrogen Fund will provide debt or equity finance to commercial projects requiring $10 million or more in capital, which Clean Energy Finance Corporation chief executive Ian Learmonth said would fill market gaps created by "technology, development or commercial challenges". Mr Taylor recently announced a $70 million fund for green hydrogen project development through the Australian Renewable Energy Agency.
3 May 14:01 • WAtoday • https://www.watoday.com.au/politics/federal/300m-clean-energy-fund-to-back-fossil-fuel-hydrogen-projects-20200503-p54pdr.html?ref=rss&utm_medium=rss&utm_source=rss_politics_federalRating: 0.55
Santos hopes for Narrabri gas verdict 'no later than August'
3 May 14:00
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3 articles
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Santos hopes for Narrabri gas verdict 'no later than August'
Energy giant Santos expects a ruling on its long-delayed Narrabri coal-seam gas project by the end of August after the introduction of new rules allowing public hearings to be held online during the coronavirus crisis. Santos has been waiting years to be given the go-ahead to develop the Narrabri gas fields in north-west New South Wales, believed to be capable of supplying half the state's gas needs. Its plan has been mired in red tape amid thousands of objections surrounding potential impacts to waterways and farmland, which are now being reviewed. The NSW planning umpire in March was given 12 weeks to make a determination before the timeline blew out due to coronavirus restrictions. Santos managing director Kevin Gallagher said ensuring the independent umpire could continue evaluating projects was "vitally important" in order to drive new investments, generate jobs and support the country's economic recovery once the worst of the lockdowns had eased. As the lockdown-driven oil price plunge forces producers to pull back billions of dollars of planned energy projects around the country, Mr Gallagher said the $3 billion Narrabri project could support at least 1300 jobs during development and was now "more important than ever". "We would expect a decision no later than August now that there are arrangements in place for public hearings," he told The Sydney Morning Herald and The Age. "That date is very important to us to allow us to start planning and preparation work, and it's very important for NSW customers too, who are paying more than they need to for gas from other states." Environmental group Lock The Gate, which opposes the Narrabri project, is urging NSW against allowing digital hearings, warning they may "prevent many people from having their say" due to unreliable access to phone or internet connections in some regional areas and older residents' lack of computer literacy. "Many people living in north-west NSW will struggle to participate in digital hearings because they live on the wrong side of the digital divide,” said the group's NSW coordinator, Georgina Woods. The evaluation of the project comes at a difficult time for Santos and other energy producers, as lockdowns cripple economic activity, cause steep oil and gas price falls and force a dramatic pull-back in the industry's investments in new developments. Santos, however, is pressing ahead with plans for Narrabri, saying it is confident the price turmoil would not endanger the economics of the project, and confirming on Sunday it wanted to invest in the project "as soon as we can". "Ours is a cyclical business," Mr Gallagher said. "We must not lose sight of the fact that the current low price and market conditions are not permanent." Because LNG is tied to oil prices, critics of the Narrabri project have called into question whether it will be economically viable, due to the threat of vastly cheaper LNG imports. However, Mr Gallagher said he was "confident Narrabri gas will be cheaper than LNG imports, especially when gas prices are high in Asia". "Demand, and with it, prices, will ultimately recover," he said. "Therefore, we must continue to focus on how and when we need to develop future gas sources at the lowest possible cost of supply to increase competition." The push to lift gas supply coming into the southern states has been taking on increasing urgency in recent years as manufacturers have begun blaming a three-fold hike in gas prices as they close their doors, while the federal government has made increasing local gas production a condition for states to receive multibillion-dollar energy funding deals.
3 May 14:00 • The Age • https://www.theage.com.au/business/companies/santos-hopes-for-narrabri-gas-verdict-no-later-than-august-20200503-p54pb7.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
Santos hopes for Narrabri gas verdict 'no later than August'
Energy giant Santos expects a ruling on its long-delayed Narrabri coal-seam gas project by the end of August after the introduction of new rules allowing public hearings to be held online during the coronavirus crisis. Santos has been waiting years to be given the go-ahead to develop the Narrabri gas fields in north-west New South Wales, believed to be capable of supplying half the state's gas needs. Its plan has been mired in red tape amid thousands of objections surrounding potential impacts to waterways and farmland, which are now being reviewed. The NSW planning umpire in March was given 12 weeks to make a determination before the timeline blew out due to coronavirus restrictions. Santos managing director Kevin Gallagher said ensuring the independent umpire could continue evaluating projects was "vitally important" in order to drive new investments, generate jobs and support the country's economic recovery once the worst of the lockdowns had eased. As the lockdown-driven oil price plunge forces producers to pull back billions of dollars of planned energy projects around the country, Mr Gallagher said the $3 billion Narrabri project could support at least 1300 jobs during development and was now "more important than ever". "We would expect a decision no later than August now that there are arrangements in place for public hearings," he told The Sydney Morning Herald and The Age. "That date is very important to us to allow us to start planning and preparation work, and it's very important for NSW customers too, who are paying more than they need to for gas from other states." Environmental group Lock The Gate, which opposes the Narrabri project, is urging NSW against allowing digital hearings, warning they may "prevent many people from having their say" due to unreliable access to phone or internet connections in some regional areas and older residents' lack of computer literacy. "Many people living in north-west NSW will struggle to participate in digital hearings because they live on the wrong side of the digital divide,” said the group's NSW coordinator, Georgina Woods. The evaluation of the project comes at a difficult time for Santos and other energy producers, as lockdowns cripple economic activity, cause steep oil and gas price falls and force a dramatic pull-back in the industry's investments in new developments. Santos, however, is pressing ahead with plans for Narrabri, saying it is confident the price turmoil would not endanger the economics of the project, and confirming on Sunday it wanted to invest in the project "as soon as we can". "Ours is a cyclical business," Mr Gallagher said. "We must not lose sight of the fact that the current low price and market conditions are not permanent." Because LNG is tied to oil prices, critics of the Narrabri project have called into question whether it will be economically viable, due to the threat of vastly cheaper LNG imports. However, Mr Gallagher said he was "confident Narrabri gas will be cheaper than LNG imports, especially when gas prices are high in Asia". "Demand, and with it, prices, will ultimately recover," he said. "Therefore, we must continue to focus on how and when we need to develop future gas sources at the lowest possible cost of supply to increase competition." The push to lift gas supply coming into the southern states has been taking on increasing urgency in recent years as manufacturers have begun blaming a three-fold hike in gas prices as they close their doors, while the federal government has made increasing local gas production a condition for states to receive multibillion-dollar energy funding deals.
3 May 14:00 • Brisbane Times • https://www.brisbanetimes.com.au/business/companies/santos-hopes-for-narrabri-gas-verdict-no-later-than-august-20200503-p54pb7.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
Santos hopes for Narrabri gas verdict 'no later than August'
Energy giant Santos expects a ruling on its long-delayed Narrabri coal-seam gas project by the end of August after the introduction of new rules allowing public hearings to be held online during the coronavirus crisis. Santos has been waiting years to be given the go-ahead to develop the Narrabri gas fields in north-west New South Wales, believed to be capable of supplying half the state's gas needs. Its plan has been mired in red tape amid thousands of objections surrounding potential impacts to waterways and farmland, which are now being reviewed. The NSW planning umpire in March was given 12 weeks to make a determination before the timeline blew out due to coronavirus restrictions. Santos managing director Kevin Gallagher said ensuring the independent umpire could continue evaluating projects was "vitally important" in order to drive new investments, generate jobs and support the country's economic recovery once the worst of the lockdowns had eased. As the lockdown-driven oil price plunge forces producers to pull back billions of dollars of planned energy projects around the country, Mr Gallagher said the $3 billion Narrabri project could support at least 1300 jobs during development and was now "more important than ever". "We would expect a decision no later than August now that there are arrangements in place for public hearings," he told The Sydney Morning Herald and The Age. "That date is very important to us to allow us to start planning and preparation work, and it's very important for NSW customers too, who are paying more than they need to for gas from other states." Environmental group Lock The Gate, which opposes the Narrabri project, is urging NSW against allowing digital hearings, warning they may "prevent many people from having their say" due to unreliable access to phone or internet connections in some regional areas and older residents' lack of computer literacy. "Many people living in north-west NSW will struggle to participate in digital hearings because they live on the wrong side of the digital divide,” said the group's NSW coordinator, Georgina Woods. The evaluation of the project comes at a difficult time for Santos and other energy producers, as lockdowns cripple economic activity, cause steep oil and gas price falls and force a dramatic pull-back in the industry's investments in new developments. Santos, however, is pressing ahead with plans for Narrabri, saying it is confident the price turmoil would not endanger the economics of the project, and confirming on Sunday it wanted to invest in the project "as soon as we can". "Ours is a cyclical business," Mr Gallagher said. "We must not lose sight of the fact that the current low price and market conditions are not permanent." Because LNG is tied to oil prices, critics of the Narrabri project have called into question whether it will be economically viable, due to the threat of vastly cheaper LNG imports. However, Mr Gallagher said he was "confident Narrabri gas will be cheaper than LNG imports, especially when gas prices are high in Asia". "Demand, and with it, prices, will ultimately recover," he said. "Therefore, we must continue to focus on how and when we need to develop future gas sources at the lowest possible cost of supply to increase competition." The push to lift gas supply coming into the southern states has been taking on increasing urgency in recent years as manufacturers have begun blaming a three-fold hike in gas prices as they close their doors, while the federal government has made increasing local gas production a condition for states to receive multibillion-dollar energy funding deals.
3 May 14:00 • WAtoday • https://www.watoday.com.au/business/companies/santos-hopes-for-narrabri-gas-verdict-no-later-than-august-20200503-p54pb7.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
Once we've spent big, structural reform is our next weapon
3 May 13:32
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6 articles
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Best date: 3 May 13:32
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Once we've spent big, structural reform is our next weapon
The Morrison government’s economic policy response to the COVID-19 shock has so far been about supporting businesses and workers affected by the downturn. As the government begins to shift from medical emergency management and job stabilisation to plan jobs recovery, it needs to consider the most effective ways to thaw the economy from the deep freeze – the so-called "hiber-cession". It also faces some binding constraints. Whatever approach the government takes, it cannot rely on further stimulus through either arm of macroeconomic policy. This is because both monetary and fiscal policy levers have effectively been “spent” in crisis management. What remains? Essentially, structural reform. That is, improving the mix of taxes and spending along with other market structures in a way that enhances competition and/or productivity. Applied pragmatically and fairly, this can be a no-regrets outcome. What is needed now are initiatives to shore up private capital expenditure. The idea is to help the economy rebound and recover with vigour. The backdrop to the COVID-19 shock was a decade-long weakness in business capital expenditure in OECD economies, seemingly due to low expectations of future income growth and over-reliance on unorthodox central bank stimuli. This caused a vicious downward cycle. Low business expenditure reduced trend growth, which further lowered investment. The superannuation sector is a willing partner to assist government in designing, funding and implementing any economic recovery measures. The federal and state governments could consider drawing upon long‑term equity investors such as super funds to help shape their plans to pull the Australian economy out of the COVID-19 downturn. There are structural reforms the government could announce with the prospect of cross-party support to create jobs and generate wealth in the Australian economy for years to come. First, infrastructure. Governments could reach out to institutional investors, presenting them with a shopping list or league table of medium- to high-value project priorities and asking who wants to be the long-term owner. The idea is to tender these out to equity participants and leave them to contract out construction activities. This would leave governments to line up planning approvals. Projects that didn't meet super funds' risk-return profiles could be supported by the public in terms of sharing patronage risk until volumes were established. Second, tax reform. Economists Ross Garnaut and Craig Emerson remind us of the prevalence of "economic rents" in the Australian economy and the need to replace company taxes and stamp duties with a cash-flow tax and land taxes. Such tax reforms could be achieved on a revenue-neutral basis. A cash-flow tax allows for the immediate write-off of capital expenditure by business. It forces big foreign tech companies to pay their fair share of tax. It leaves most enterprises non-taxable over time. It would also be a huge spur to institutional investors, such as super funds, to fund greenfield investment and so build the industries of the future. Third, strategic supply chain investments in each major Australian export commodity would help to target infrastructure and industry policy bottlenecks. These should include logistics, processing and distribution channels with a view to enhancing domestic value-adding. There are some obvious supply chains within the Australian economy that could and should have been dedicated to high-growth markets in commodities (such as wheat, wool, milk and beef). We should follow the example of many other smaller nations, such as New Zealand, and purposefully fuse these operations into an internationally competitive conglomerate. Super fund investment across supply chains can help to make this a reality. Fourth, build to-rent and affordable housing. Governments surely realise that if they are not prepared to deliver affordable housing directly via public balance sheets (i.e. public housing), they must provide equivalent subsidy to private balance sheets, probably via not-for-profit community-housing providers. The simple way to fund this is to limit negative gearing to new homes and provide a tradeable tax credit to long-term equity capital to build housing for the community housing sector. Fifth, small- and medium-size enterprise lending. It seems there is a genuine market failure limiting capital provision (debt and equity) to SMEs. This is supported by RBA firm-level research, which has quantified this funding gap at about 500 basis points, controlling for all other factors including risk. Anthony Pratt has done much to publicise this matter. Super funds want to work with banks (and possibly others) to provide longer term debt and equity. Funds could outsource credit "assessment" activities to banks or non-banks and specialist investment managers acting on their behalf or investing in other structures (such as RMBS or ABS securitisation) that provide them with exposure to the small business sector. Looking at the five proposals, they would barely affect federal or state budgets, but all could significantly and speedily affect business investment by way of the private sector. Also, the cash-flow tax would provide a significant upfront stimulus to the economy when it is needed most. All these proposals could be implemented quickly with the backing of long‑term equity investors such as super funds, which have deep experience in managing infrastructure and property projects. Stephen Anthony is Industry Super Australia’s chief economist.
3 May 13:32 • The Age • https://www.theage.com.au/money/super-and-retirement/once-we-ve-spent-big-structural-reform-is-our-next-weapon-20200501-p54p0s.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
Once we've spent big, structural reform is our next weapon
The Morrison government’s economic policy response to the COVID-19 shock has so far been about supporting businesses and workers affected by the downturn. As the government begins to shift from medical emergency management and job stabilisation to plan jobs recovery, it needs to consider the most effective ways to thaw the economy from the deep freeze – the so-called "hiber-cession". It also faces some binding constraints. Whatever approach the government takes, it cannot rely on further stimulus through either arm of macroeconomic policy. This is because both monetary and fiscal policy levers have effectively been “spent” in crisis management. What remains? Essentially, structural reform. That is, improving the mix of taxes and spending along with other market structures in a way that enhances competition and/or productivity. Applied pragmatically and fairly, this can be a no-regrets outcome. What is needed now are initiatives to shore up private capital expenditure. The idea is to help the economy rebound and recover with vigour. The backdrop to the COVID-19 shock was a decade-long weakness in business capital expenditure in OECD economies, seemingly due to low expectations of future income growth and over-reliance on unorthodox central bank stimuli. This caused a vicious downward cycle. Low business expenditure reduced trend growth, which further lowered investment. The superannuation sector is a willing partner to assist government in designing, funding and implementing any economic recovery measures. The federal and state governments could consider drawing upon long‑term equity investors such as super funds to help shape their plans to pull the Australian economy out of the COVID-19 downturn. There are structural reforms the government could announce with the prospect of cross-party support to create jobs and generate wealth in the Australian economy for years to come. First, infrastructure. Governments could reach out to institutional investors, presenting them with a shopping list or league table of medium- to high-value project priorities and asking who wants to be the long-term owner. The idea is to tender these out to equity participants and leave them to contract out construction activities. This would leave governments to line up planning approvals. Projects that didn't meet super funds' risk-return profiles could be supported by the public in terms of sharing patronage risk until volumes were established. Second, tax reform. Economists Ross Garnaut and Craig Emerson remind us of the prevalence of "economic rents" in the Australian economy and the need to replace company taxes and stamp duties with a cash-flow tax and land taxes. Such tax reforms could be achieved on a revenue-neutral basis. A cash-flow tax allows for the immediate write-off of capital expenditure by business. It forces big foreign tech companies to pay their fair share of tax. It leaves most enterprises non-taxable over time. It would also be a huge spur to institutional investors, such as super funds, to fund greenfield investment and so build the industries of the future. Third, strategic supply chain investments in each major Australian export commodity would help to target infrastructure and industry policy bottlenecks. These should include logistics, processing and distribution channels with a view to enhancing domestic value-adding. There are some obvious supply chains within the Australian economy that could and should have been dedicated to high-growth markets in commodities (such as wheat, wool, milk and beef). We should follow the example of many other smaller nations, such as New Zealand, and purposefully fuse these operations into an internationally competitive conglomerate. Super fund investment across supply chains can help to make this a reality. Fourth, build to-rent and affordable housing. Governments surely realise that if they are not prepared to deliver affordable housing directly via public balance sheets (i.e. public housing), they must provide equivalent subsidy to private balance sheets, probably via not-for-profit community-housing providers. The simple way to fund this is to limit negative gearing to new homes and provide a tradeable tax credit to long-term equity capital to build housing for the community housing sector. Fifth, small- and medium-size enterprise lending. It seems there is a genuine market failure limiting capital provision (debt and equity) to SMEs. This is supported by RBA firm-level research, which has quantified this funding gap at about 500 basis points, controlling for all other factors including risk. Anthony Pratt has done much to publicise this matter. Super funds want to work with banks (and possibly others) to provide longer term debt and equity. Funds could outsource credit "assessment" activities to banks or non-banks and specialist investment managers acting on their behalf or investing in other structures (such as RMBS or ABS securitisation) that provide them with exposure to the small business sector. Looking at the five proposals, they would barely affect federal or state budgets, but all could significantly and speedily affect business investment by way of the private sector. Also, the cash-flow tax would provide a significant upfront stimulus to the economy when it is needed most. All these proposals could be implemented quickly with the backing of long‑term equity investors such as super funds, which have deep experience in managing infrastructure and property projects. Stephen Anthony is Industry Super Australia’s chief economist.
3 May 13:32 • Brisbane Times • https://www.brisbanetimes.com.au/money/super-and-retirement/once-we-ve-spent-big-structural-reform-is-our-next-weapon-20200501-p54p0s.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
Once we've spent big, structural reform is our next weapon
The Morrison government’s economic policy response to the COVID-19 shock has so far been about supporting businesses and workers affected by the downturn. As the government begins to shift from medical emergency management and job stabilisation to plan jobs recovery, it needs to consider the most effective ways to thaw the economy from the deep freeze – the so-called "hiber-cession". It also faces some binding constraints. Whatever approach the government takes, it cannot rely on further stimulus through either arm of macroeconomic policy. This is because both monetary and fiscal policy levers have effectively been “spent” in crisis management. What remains? Essentially, structural reform. That is, improving the mix of taxes and spending along with other market structures in a way that enhances competition and/or productivity. Applied pragmatically and fairly, this can be a no-regrets outcome. What is needed now are initiatives to shore up private capital expenditure. The idea is to help the economy rebound and recover with vigour. The backdrop to the COVID-19 shock was a decade-long weakness in business capital expenditure in OECD economies, seemingly due to low expectations of future income growth and over-reliance on unorthodox central bank stimuli. This caused a vicious downward cycle. Low business expenditure reduced trend growth, which further lowered investment. The superannuation sector is a willing partner to assist government in designing, funding and implementing any economic recovery measures. The federal and state governments could consider drawing upon long‑term equity investors such as super funds to help shape their plans to pull the Australian economy out of the COVID-19 downturn. There are structural reforms the government could announce with the prospect of cross-party support to create jobs and generate wealth in the Australian economy for years to come. First, infrastructure. Governments could reach out to institutional investors, presenting them with a shopping list or league table of medium- to high-value project priorities and asking who wants to be the long-term owner. The idea is to tender these out to equity participants and leave them to contract out construction activities. This would leave governments to line up planning approvals. Projects that didn't meet super funds' risk-return profiles could be supported by the public in terms of sharing patronage risk until volumes were established. Second, tax reform. Economists Ross Garnaut and Craig Emerson remind us of the prevalence of "economic rents" in the Australian economy and the need to replace company taxes and stamp duties with a cash-flow tax and land taxes. Such tax reforms could be achieved on a revenue-neutral basis. A cash-flow tax allows for the immediate write-off of capital expenditure by business. It forces big foreign tech companies to pay their fair share of tax. It leaves most enterprises non-taxable over time. It would also be a huge spur to institutional investors, such as super funds, to fund greenfield investment and so build the industries of the future. Third, strategic supply chain investments in each major Australian export commodity would help to target infrastructure and industry policy bottlenecks. These should include logistics, processing and distribution channels with a view to enhancing domestic value-adding. There are some obvious supply chains within the Australian economy that could and should have been dedicated to high-growth markets in commodities (such as wheat, wool, milk and beef). We should follow the example of many other smaller nations, such as New Zealand, and purposefully fuse these operations into an internationally competitive conglomerate. Super fund investment across supply chains can help to make this a reality. Fourth, build to-rent and affordable housing. Governments surely realise that if they are not prepared to deliver affordable housing directly via public balance sheets (i.e. public housing), they must provide equivalent subsidy to private balance sheets, probably via not-for-profit community-housing providers. The simple way to fund this is to limit negative gearing to new homes and provide a tradeable tax credit to long-term equity capital to build housing for the community housing sector. Fifth, small- and medium-size enterprise lending. It seems there is a genuine market failure limiting capital provision (debt and equity) to SMEs. This is supported by RBA firm-level research, which has quantified this funding gap at about 500 basis points, controlling for all other factors including risk. Anthony Pratt has done much to publicise this matter. Super funds want to work with banks (and possibly others) to provide longer term debt and equity. Funds could outsource credit "assessment" activities to banks or non-banks and specialist investment managers acting on their behalf or investing in other structures (such as RMBS or ABS securitisation) that provide them with exposure to the small business sector. Looking at the five proposals, they would barely affect federal or state budgets, but all could significantly and speedily affect business investment by way of the private sector. Also, the cash-flow tax would provide a significant upfront stimulus to the economy when it is needed most. All these proposals could be implemented quickly with the backing of long‑term equity investors such as super funds, which have deep experience in managing infrastructure and property projects.
3 May 13:32 • WAtoday • https://www.watoday.com.au/money/super-and-retirement/once-we-ve-spent-big-structural-reform-is-our-next-weapon-20200501-p54p0s.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
Need to speed up work on infra to make up for time lost on Covid-19: PM Modi
Prime Minister Narendra Modi has stressed the need to take speedy measures to commence work on new infrastructure projects and speed up works in the infra sector to make up for the time lost on Covid-19. Projects taken up under the National Infrastructure Pipeline must be reviewed at the highest level frequently so as to avoid time delays and enable creation of jobs, Modi said at a meeting with the Finance Minister and senior officials here on Saturday. The meeting was held to discuss interventions in the financial sector as well structural reforms to spur growth and welfare in the current context. It comes at a time when the government is expected to roll out one more “stimulus package” to help the economy become self-reliant and turn the Covid-19-induced crisis into an opportunity. Indian economy has been hit hard by the nationwide lockdown. The government on Friday announced gradual lifting of the lockdown over two weeks starting from May 4 even while continuing the restrictions in the red zones of the country. Meanwhile, at the Saturday meeting, the Prime Minister discussed new structural reforms in the areas of corporate governance, credit markets and infrastructure sectors besides underscoring the need to strengthen major structural reforms undertaken in the past, an official release said. Modi also discussed strategies and interventions to support MSMEs and farmers, enhance liquidity and strengthen credit flows. He also discussed ways and means to ensure financial stability in the wake of Covid-19 and measures taken to enable businesses to recover quickly, the release added. Dwelling on the issue of welfare of workers and the common man, PM pointed out the need to generate gainful employment opportunities by helping businesses overcome difficulties caused by Covid-19. It was also felt that the reform initiatives undertaken by the various ministries should continue and action should be taken in a time-bound manner to remove obstacles to investment flows and capital formation. The meeting was attended by the Home Minister, Finance Minister, Secretaries of the Ministry of Finance along with other senior officials of the government.
3 May 06:30 • BusinessLine • https://www.thehindubusinessline.com/news/national/need-to-speed-up-work-on-infra-to-make-up-for-time-lost-on-covid-19-pm-modi/article31493686.eceRating: 1.98
Lockdown 3.0: PM Modi discusses plan to spur growth in MSMEs as India heads for partial reopening
PM Modi discussed generating employment opportunities by helping businesses overcome difficulties due to disruptions caused by COVID-19; stressed on need to strengthen new structural reforms in corporate governance, credit markets and infrastructure sectors Prime Minister Narendra Modi held a meeting to discuss strategies to restart the economy and initiate structural reforms in the MSME (Ministry of Micro, Small and Medium Enterprises) sector to spur growth in the wake of coronavirus pandemic. He discussed strategies to support MSMEs and farmers by enhancing liquidity and strengthening credit flows and talked about ways to ensure financial stability to enable businesses severely hit by the nation-wide lockdown. The meeting was held with Finance Minister Nirmala Sitharaman, Home Minister Amit Shah, secretaries of the Ministry of Finance and other top officials. The key meeting was held a day before the second phase of lockdown ends on Sunday. The Centre has already extended the lockdown by two more weeks while giving some relaxations in red, orange and green zones. Also read:RBI cancels licence of CKP Co-operative Bank; depositors to get up to Rs 5 lakh PM Modi pointed out the need to generate gainful employment opportunities by helping businesses overcome difficulties due to disruptions caused by COVID-19. He stressed on the need to strengthen major structural reforms undertaken in the past and new structural reforms in corporate governance, credit markets and infrastructure sectors were also discussed, a government statement said. The PM also stressed the need to take speedy measures to commence work on new infrastructure projects and initiate speedy work in the infrastructure sector to make up for the time lost in COVID-19. Modi has said the projects taken up under the National Infrastructure Pipeline should be reviewed at the highest level frequently to avoid time delays and enable jobs creation. PM Modi also discussed the reform initiatives undertaken by various ministries. He said that they continue unabated and action should be taken in a time-bound manner to remove obstacles in investment flows and capital formation. Meanwhile, over 2,293 new novel coronavirus cases and 71 deaths were reported in India in the last 24 hours. The country's total number of COVID-19 cases now stands at 37,776, including 26,535 active cases, 10,017 recoveries, 1 migrated and 1,223 deaths, the Union Ministry of Health data says. Also read:Coronavirus India Live Updates: Lockdown 3.0! 2,644 new cases in 24 hours; biggest 1-day spike; tally-37,776
3 May 04:19 • Business Today • https://www.businesstoday.in/current/economy-politics/lockdown-3-pm-modi-discusses-plan-to-spur-growth-in-msmes-as-india-heads-for-partial-reopening/story/402715.html?utm_source=twitter&utm_medium=WEBRating: 2.10
PM Modi for new structural reforms to revive economy hit by COVID-19
New Delhi, May 02: Prime Minister Narendra Modi on Saturday underlined the need for new structural reforms and expedite work on infrastructure projects to revive the economy reeling under the impact of coronavirus-induced lockdown. He made these observations during a series of meetings held on Saturday to discuss strategies and interventions in the financial sector as well as structural reforms to spur growth and welfare in the current context. The series of meetings with key Cabinet ministers, officials of economic ministries is likely to culminate into a second stimulus package for sectors, including MSME and the farm sector, hit hard by the outbreak of COVID-19 pandemic. Dwelling on the issue of welfare of workers and the common man, the Prime Minister pointed out the need to generate gainful employment opportunities by helping businesses overcome difficulties due to disruptions caused by COVID-19, an official statement said. The Prime Minister also stressed on the need to strengthen major structural reforms undertaken in the past and new structural reforms in the areas of corporate governance, credit markets and infrastructure sectors were also discussed, it said. He also stressed the need to take speedy measures to commence work on new infrastructure projects and speed up works in the infrastructure sector so as to make up for the time lost in COVID-19. He wanted the projects taken up under the National Infrastructure Pipeline (NIP) be reviewed at the highest level frequently to avoid time delays and enable the creation of jobs. The task force on NIP has recently submitted a report which projected a staggering Rs 111 lakh crore investment in the infrastructure sector by 2024-25. The statement further said that it was also discussed that the reform initiatives undertaken by the various Ministries should continue unabated and the action should be taken in a time-bound manner to remove any obstacles to investment flows and capital formation. The meeting was attended by the Home Minister, the Finance Minister, Secretaries of the Ministry of Finance along with senior officials of the Government of India. At a meeting with the finance minister and officials, the prime minister discussed strategies and interventions to support MSMEs and farmers, enhance liquidity and strengthen credit flows. He also discussed ways and means to ensure financial stability in the wake of COVID-19 and measures taken to enable businesses to recover quickly from the impacts. Earlier in the day, MSME Minister Nitin Gadkari said that his ministry has suggested a relief package to the prime minister and the finance minister for the medium, small and micro sector and exuded confidence that an announcement would be made soon. "Chaired a meeting on strengthening our MSME sector, which plays a pivotal role in economic development. There were extensive discussions on ways to make this sector more vibrant, attractive and ready to embrace new opportunities," the prime minister said in a tweet after the meeting. The Prime Minister in another tweet said, "Held a meeting to discuss subjects related to the financial world, including structural reforms that will give a boost to growth and public welfare. We reviewed strategies to support the MSME sector and ensure liquidity & credit supply." The central government is focused on ensuring welfare of workers, helping businesses overcome the difficulties arising in the wake of COVID-19, reforms in corporate governance, credit markets and the infra sector, he said. During another meeting concerning the farm sector, various reforms in agriculture marketing, management of marketable surplus, access of farmers to institutional credit and freeing the agriculture sector of various restrictions with appropriate backing of the statute were discussed. The focus was on making strategic interventions in the existing marketing eco-system and bringing appropriate reforms in the context of rapid agricultural development, an official statement said. "Concessional credit flow to strengthen agriculture infrastructure, special Kisan Credit Card saturation drive for PM-Kisan beneficiaries and facilitating inter and intra-state trade of agriculture produce to ensure the fairest return to farmer were some of the important areas covered. Developing e-NAM into a platform of platforms to enable e-commerce was one of the important topics of discussion," it said. A discussion also emanated on the possibilities of the uniform statutory framework in the country to facilitate new ways for farming which will infuse capital and technology in agrarian economy, it said, adding, the pros and cons of bio-technological developments in crops or enhancement of productivity and reduction in input costs were also deliberated. During the deliberations, each ministry made recommendations and possible steps to be taken in the short run to prop up the sector administered by them. After a detailed review of every sector, a relief and stimulus package will be worked out, sources said. The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and industry ministry among others on Thursday. To mitigate hardships faced by the bottom of the pyramid, the government in late March had announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly.
2 May 11:49 • Oneindia • https://www.oneindia.com/india/pm-modi-meets-amit-shah-sitharaman-over-2nd-economic-stimulus-package-report-3081756.htmlRating: 0.30
Oil prices look for boost as production cuts come into effect
3 May 12:03
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Oil prices look for boost as production cuts come into effect
Abu Dhabi: Oil markets on Friday closed on their first weekly high in a month, with Brent trading at $26.44 and West Texas Intermediate (WTI) on $19.78, as prices flickered with some good news on Opec+ production cuts of almost 10 million barrels per day (bdp) coming into effect. “Oil markets recovered strongly last week as Opec+ production cuts began in earnest and more and more countries took steps to reopen their economies. Indeed, oil futures outperformed most other commodities and other risk assets which showed little conviction either to gain or lose,” said Edward Bell, commodity analyst at Emirates NBD. “In isolation, and at least for the very short-term, conditions are looking better for the oil market than they have in some time. However, oil serves to lubricate the global economy and as economic conditions remain fragile—or worse—in many economies the overwhelming negative fundamentals will still exert substantial downward pressure on prices,” he added. “The recovery in prices in this past week may be as good as it gets for some time unless there is a dramatic turnaround in economic fundamentals,” he said. The global imbalance between supply and demand, meanwhile, is also set to halve during May from 26.4 million bpd to 13.6 million bpd according to Rystad Energy, providing oil markets with more good news as storage facilities continue to face the reality of having nowhere left to store oil. “While this may seem like a drastic improvement from April, the oil market is not magically fixed,” said Rystad Energy oil market analyst Louise Dickson. “The storage issue still looms large and will spill over onto trading floors, as buyers are left with crude they cannot physically cannot place, and into the boardrooms of oil companies which must make very costly but necessary decisions to scale back production and give the market some breathing space,” Dickson added. “No matter how this physical rebalancing occurs during May, we still expect that the oil price bottom is right in front of us rather than behind us. The next question for markets now is what the recovery will look like and how many oil companies are able to weather the storm and bring inevitable field shut-ins back onstream,” Dickson said.
3 May 12:03 • Gulf News • https://gulfnews.com/business/oil-prices-look-for-boost-as-production-cuts-come-into-effect-1.71303970Rating: 3.21
Will April Pain Lead To May Gain For Commodities?
Summary By Jim Wiederhold COVID-19 continued to wreak havoc across commodities markets in April. The S&P GSCI fell 9.67% in April and 47.92% YTD. Economic data continued to weaken into uncharted territory. Supply chains crucial to the flow of commodities from extraction to consumption experienced a sudden shut-off and demand collapsed. Energy and agriculture underperformed, while metals offered some green shoots. With the collapse of front-month oil prices on April 20, 2020, the full effect of the oil supply glut was revealed. Market historians can now add negative oil prices to the list of unprecedented market events of 2020. Demand disappearance, diminishing storage capacity, and physically settled May WTI crude oil contracts produced a perfect storm for energy-related commodities. Global energy demand could slump by 6% in 2020 due to the restrictions placed on transport and industrial activity in what would be the largest contraction in absolute terms on record, according to the International Energy Agency. Compounding the hit to price levels that the COVID-19 pandemic has had on demand, oil output from OPEC was the highest since March 2019. OPEC+ production cuts are expected to take effect from the start of May 2020. After falling 54.72% in March 2020, the S&P GSCI Crude Oil dropped another 40.69% in April 2020. Crude oil volatility spiked to all-time highs as the weakness was felt across all oil products. The S&P GSCI Industrial Metals rose 0.96% in April, reversing some of the downside seen in March. Copper and nickel were both supported by China restarting production facilities that had been on lockdown, as well as supply chain disruptions. With elevated levels of volatility across assets, the S&P GSCI Gold rose 6.03%, outshining all other commodities and demonstrating its safe-haven status during times of market uncertainty. According to the World Gold Council, investment demand for the yellow metal rose 80% in Q1 2020 compared to the same quarter last year, which offset a 39% fall in jewelry demand. The S&P GSCI Grains fell 6.25%, with weakness seen across the board. The S&P GSCI Corn underperformed the most (-7.60%) due to its correlation to energy in the ethanol space. The dramatic increase in demand for grocery store food items could not offset the historic lack of demand for ethanol. Cocoa, cotton, and coffee reversed their divergent performance from the prior month. After a strong March, the S&P GSCI Coffee dropped 11.87% in April. After double-digit declines in March, the S&P GSCI Cotton and S&P GSCI Cocoa both advanced 11.56% and 7.12%, respectively. The S&P GSCI Livestock dropped 5.15% in April. Millions of pounds of meat are expected to be missing from the U.S. supply chain as several major meat producers shut down plants and slaughterhouses. Meat shortages at grocery stores are expected in the near term, as farmers face the likely culling of herds because they will not have anywhere to sell their livestock to be processed. In April, it was estimated that nearly a third of U.S. pork processing capacity was offline. Disclosure: Copyright © 2020 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. This material is reproduced with the prior written consent of S&P DJI. For more information on S&P DJI please visit www.spdji.com. For full terms of use and disclosures please visit www.spdji.com/terms-of-use. Original post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
3 May 17:32 • Seeking Alpha • https://seekingalpha.com/article/4342514-will-april-pain-lead-to-may-gain-for-commodities?source=feed_all_articlesRating: 0.30
Oil Falls on Ample Supply as Investors Shun Near-Term Contracts
(Bloomberg) -- Oil declined in Asia on signs producers delivered ample supply into the market last month, and as investors continued to cut their exposure to nearer-term contracts. Futures in New York fell as much as 6.5%, after gaining 17% last week. OPEC+’s pledge to trim supply by 9.7 million barrels a day took effect May 1, but the bloc’s production surged by the most in almost 30 years in April as its biggest members fought to dominate a global market devastated by coronavirus. Russia slightly increased its crude oil and condensate output before the agreed cuts kicked in. Since crude plunged into negative territory last month, investors have been fleeing the nearest futures contracts, increasing volatility. S&P Global Inc., the company behind the most closely followed commodity index, said it will roll West Texas Intermediate crude oil futures for July into August for its commodity indexes. The United States Oil Fund (NYSE:USO) LP, which came under pressure from regulators last month due to the size of its WTI position, said on Friday that it will halve holdings in the July contract. Algerian Energy Minister Mohamed Arkab, who holds OPEC’s rotating presidency, called on members of the cartel to implement more than 100% of their agreed cuts. And in a further sign of producers paring back their output, the number of rigs drilling for oil and gas tumbled almost 20% in April. In the U.S., the oil rig count dropped by 53 to 325, a seventh straight week of declines. READ: Global Oil Demand Starts a Long, Painful and Uncertain Recovery Oil futures rallied sharply last week on early signs that demand might be bottoming out, and as U.S. energy majors announced major cutbacks. Chevron Corp. (NYSE:CVX) will slash output by as much as 400,000 barrels a day and Exxon Mobil Corp (NYSE:XOM). plans to cut rigs in the Permian Basin by 75% by the end of the year. ©2020 Bloomberg L.P.
3 May 00:00 • Investing.com • https://www.investing.com/news/commodities-news/oil-falls-on-ample-supply-as-investors-shun-nearterm-contracts-2159174Rating: 0.30
Salaries increase for top mutual fund CEOs on robust business growth
3 May 17:14
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Salaries increase for top mutual fund CEOs on robust business growth
CEO salaries increased at the country’s top mutual fund houses during 2019-20 on robust business growth, with HDFC Mutual Fund's Milind Barve being the highest paid executive. According to an analysis of the data made public by mutual funds, the CEO salary given by the top 12 fund houses in terms of assets under management increased in the range of 2-132 per cent in 2019-20 from the preceding fiscal year. However, CEO remuneration of Aditya Birla Sunlife MF, Nippon India MF and DSP MF dropped by up to 19 per cent during the period under review. The salaries for chief investment officers also witnessed a rise for most fund houses. Salary disclosed by the fund houses for 2019-20 was decided in April-May 2019 on the basis of 2018-19 profitability, which was at an all-time high for the industry, according to industry executives. Overall, the past fiscal was a good year for the mutual fund industry barring the month of March, which saw record declines amid the coronavirus pandemic. Barve, chief executive of second-largest fund house HDFC MF, claimed the top slot with a salary pay-out of Rs 7.43 crore for the fiscal. His package climbed by 3 per cent from Rs 7.23 crore in 2018-19. In terms of percentage growth, SBI MF, which is the largest fund house in the country in terms of AUM, gave its CEO Ashwani Bhatia a salary jump of 132 per cent to Rs 51 lakh in 2019-20. He had earned a salary of Rs 22 lakh in the preceding fiscal. Ironically, Bhatia is the lowest paid CEO among the top fund houses. Apart from SBI MF, fund houses like UTI MF and Kotak MF too gave a staggering salary hike to their respective CEOs. Barve is followed by Nilesh Shah, the top honcho of Kotak MF, who received a pay package of Rs 7.32 crore, 68 per cent higher than Rs 4.35 crore received in the preceding fiscal. ICICI Prudential MF paid Rs 6.98 crore to its MD Nimesh Shah last fiscal, a hike of 12 per cent from Rs 6.25 crore in 2018-19. Nippon India MF’s CEO Sundeep Sikka got a salary of Rs 6.01 crore, which is a decline of 8 per cent from last fiscal.
3 May 17:14 • Business-Standard • https://www.business-standard.com/article/markets/salaries-increase-for-top-mutual-fund-ceos-on-robust-business-growth-120050301088_1.htmlRating: 0.30
Salaries increase for top mutual fund CEOs
CEO salaries increased at the country's top mutual fund houses during 2019-20 on robust business growth, with HDFC Mutual Fund's Milind Barve being the highest paid executive. According to an analysis of the data made public by mutual funds, the CEO salary given by the top 12 fund houses in terms of assets under management increased in the range of 2-132 per cent in 2019-20 from the preceding fiscal year. However, CEO remuneration of Aditya Birla Sunlife MF, Nippon India MF and DSP MF dropped by up to 19 per cent during the period under review. The salaries for chief investment officers also witnessed a rise for most fund houses. Salary disclosed by the fund houses for 2019-20 was decided in April-May 2019 on the basis of 2018-19 profitability, which was at an all-time high for the industry, according to industry executives. Overall, the past fiscal was a good year for the mutual fund industry barring the month of March, which saw record declines amid the coronavirus pandemic. Barve, chief executive of second-largest fund house HDFC MF, claimed the top slot with a salary pay-out of Rs 7.43 crore for the fiscal. His package climbed by 3 per cent from Rs 7.23 crore in 2018-19. In terms of percentage growth, SBI MF, which is the largest fund house in the country in terms of AUM, gave its CEO Ashwani Bhatia a salary jump of 132 per cent to Rs 51 lakh in 2019-20. He had earned a salary of Rs 22 lakh in the preceding fiscal. Ironically, Bhatia is the lowest paid CEO among the top fund houses. Apart from SBI MF, fund houses like UTI MF and Kotak MF too gave a staggering salary hike to their respective CEOs. Barve is followed by Nilesh Shah, the top honcho of Kotak MF, who received a pay package of Rs 7.32 crore, 68 per cent higher than Rs 4.35 crore received in the preceding fiscal. ICICI Prudential MF paid Rs 6.98 crore to its Managing Director Nimesh Shah last fiscal, a hike of 12 per cent from Rs 6.25 crore in 2018-19. Nippon India MF's CEO Sundeep Sikka got a salary of Rs 6.01 crore, which is a decline of 8 per cent from last fiscal, while the same for A Balasubramanian, chief executive at Aditya Birla SunLife MF, was at Rs 5.41 crore, a decrease of 7 per cent. IDFC Mutual Fund chief executive Vishal Kapoor's pay package rose to Rs 5.12 crore from Rs 5.01 crore, translating into an increase of 2 per cent. Chandresh Nigam, chief executive at Axis MF, got a salary of Rs 4.8 crore in the period under review as compared to Rs 3.97 crore in 2018-19. However, he took home a pay package of Rs 17.67 crore, which included a one time pay-out. UTI MF's Acting CEO Imtaiyazur Rahman took home a salary of Rs 4.48 crore in the past fiscal, a 97 per cent jump from Rs 2.27 crore paid in 2018-19. On the other hand, salary of DSP MF's Kalpen Parekh plunged by 19 per cent to Rs 4.2 crore in 2019-20. The salary of Sanjay Sapre, president of Franklin Templeton MF, was not available for 2019-20 as the company's financial year ends in September. Sapre's salary was Rs 3.50 crore for the year ended September 30, 2019, as compared to Rs 2.99 crore in the previous fiscal. L&T MF top boss Kailash Kulkarni's salary rose from Rs 2.41 crore to Rs 2.7 crore in the period under review. The fund houses started disclosing salaries after Sebi, in April 2017, directed them to disclose annual remuneration of all employees earning Rs 1.02 crore or above within one month of a financial year, starting with 2016-17. Earlier, remuneration of all employees earning Rs 60 lakh or above in a financial year was required to be disclosed. This is part of Sebi's effort to promote transparency in remuneration policies so that executive salary is aligned with the interest of investors. While a few mutual fund houses have complied with Sebi's directive and disclosed the information, others still have to comply with the rule. The asset under management of the industry, comprising 44 players, rose to Rs 27 lakh crore at the end of March 31, 2020 from Rs 24.5 crore in March-end 2019 and Rs 23 lakh crore in March-end 2018.
3 May 15:07 • Deccan Herald • https://www.deccanherald.com/business/business-news/salaries-increase-for-top-mutual-fund-ceos-833000.htmlRating: 2.25
Salaries Increase For Top Mutual Fund CEOs
Bookmark CEO salaries increased at the country's top mutual fund houses during 2019-20 on robust business growth, with HDFC Mutual Fund's Milind Barve being the highest paid executive. According to an analysis of the data made public by mutual funds, the CEO salary given by the top 12 fund houses in terms of assets under management increased in the range of 2-132 percent in 2019-20 from the preceding fiscal year. However, CEO remuneration of Aditya Birla Sunlife MF, Nippon India MF and DSP MF dropped by up to 19 percent during the period under review. The salaries for chief investment officers also witnessed a rise for most fund houses. Salary disclosed by the fund houses for 2019-20 was decided in April-May 2019 on the basis of 2018-19 profitability, which was at an all-time high for the industry, according to industry executives. Overall, the past fiscal was a good year for the mutual fund industry barring the month of March, which saw record declines amid the coronavirus pandemic. Barve, chief executive of second-largest fund house HDFC MF, claimed the top slot with a salary pay-out of Rs 7.43 crore for the fiscal. His package climbed by 3 percent from Rs 7.23 crore in 2018-19. In terms of percentage growth, SBI MF, which is the largest fund house in the country in terms of AUM, gave its CEO Ashwani Bhatia a salary jump of 132 percent to Rs 51 lakh in 2019-20. He had earned a salary of Rs 22 lakh in the preceding fiscal. Ironically, Bhatia is the lowest paid CEO among the top fund houses. Apart from SBI MF, fund houses like UTI MF and Kotak MF too gave a staggering salary hike to their respective CEOs. Barve is followed by Nilesh Shah, the top honcho of Kotak MF, who received a pay package of Rs 7.32 crore, 68 percent higher than Rs 4.35 crore received in the preceding fiscal. ICICI Prudential MF paid Rs 6.98 crore to its Managing Director Nimesh Shah last fiscal, a hike of 12 percent from Rs 6.25 crore in 2018-19. Nippon India MF's CEO Sundeep Sikka got a salary of Rs 6.01 crore, which is a decline of 8 percent from last fiscal, while the same for A Balasubramanian, chief executive at Aditya Birla SunLife MF, was at Rs 5.41 crore, a decrease of 7 percent. IDFC Mutual Fund chief executive Vishal Kapoor's pay package rose to Rs 5.12 crore from Rs 5.01 crore, translating into an increase of 2 percent. Chandresh Nigam, chief executive at Axis MF, got a salary of Rs 4.8 crore in the period under review as compared to Rs 3.97 crore in 2018-19. However, he took home a pay package of Rs 17.67 crore, which included a one time pay-out. UTI MF's Acting CEO Imtaiyazur Rahman took home a salary of Rs 4.48 crore in the past fiscal, a 97 percent jump from Rs 2.27 crore paid in 2018-19. On the other hand, salary of DSP MF's Kalpen Parekh plunged by 19 per cent to Rs 4.2 crore in 2019-20. The salary of Sanjay Sapre, president of Franklin Templeton MF, was not available for 2019-20 as the company's financial year ends in September. Sapre's salary was Rs 3.50 crore for the year ended September 30, 2019, as compared to Rs 2.99 crore in the previous fiscal. L&T MF top boss Kailash Kulkarni's salary rose from Rs 2.41 crore to Rs 2.7 crore in the period under review. The fund houses started disclosing salaries after SEBI, in April 2017, directed them to disclose annual remuneration of all employees earning Rs 1.02 crore or above within one month of a financial year, starting with 2016-17. Earlier, remuneration of all employees earning Rs 60 lakh or above in a financial year was required to be disclosed. This is part of SEBI's effort to promote transparency in remuneration policies so that executive salary is aligned with the interest of investors. While a few mutual fund houses have complied with SEBI's directive and disclosed the information, others still have to comply with the rule. The asset under management of the industry, comprising 44 players, rose to Rs 27 lakh crore at the end of March 31, 2020 from Rs 24.5 crore in March-end 2019 and Rs 23 lakh crore in March-end 2018. Missing BloombergQuint's WhatsApp service? Join our Telegram channel or activate Website Notifications.
3 May 09:32 • Bloomberg | Quint • https://www.bloombergquint.com/mutual-funds/salaries-increase-for-top-mutual-fund-ceosRating: 1.94
Salaries increase for top mutual fund CEOs
According to an analysis of the data made public by mutual funds, the CEO salary given by the top 12 fund houses in terms of assets under management increased in the range of 2-132 per cent in 2019-20 from the preceding fiscal year CEO salaries increased at the country's top mutual fund houses during 2019-20 on robust business growth, with HDFC Mutual Fund's Milind Barve being the highest paid executive. According to an analysis of the data made public by mutual funds, the CEO salary given by the top 12 fund houses in terms of assets under management increased in the range of 2-132 per cent in 2019-20 from the preceding fiscal year. However, CEO remuneration of Aditya Birla Sunlife MF, Nippon India MF and DSP MF dropped by up to 19 per cent during the period under review. The salaries for chief investment officers also witnessed a rise for most fund houses. Salary disclosed by the fund houses for 2019-20 was decided in April-May 2019 on the basis of 2018-19 profitability, which was at an all-time high for the industry, according to industry executives. Overall, the past fiscal was a good year for the mutual fund industry barring the month of March, which saw record declines amid the coronavirus pandemic. Barve, chief executive of second-largest fund house HDFC MF, claimed the top slot with a salary pay-out of Rs 7.43 crore for the fiscal. His package climbed by 3 per cent from Rs 7.23 crore in 2018-19. In terms of percentage growth, SBI MF, which is the largest fund house in the country in terms of AUM, gave its CEO Ashwani Bhatia a salary jump of 132 per cent to Rs 51 lakh in 2019-20. He had earned a salary of Rs 22 lakh in the preceding fiscal. Ironically, Bhatia is the lowest paid CEO among the top fund houses. Apart from SBI MF, fund houses like UTI MF and Kotak MF too gave a staggering salary hike to their respective CEOs. Barve is followed by Nilesh Shah, the top honcho of Kotak MF, who received a pay package of Rs 7.32 crore, 68 per cent higher than Rs 4.35 crore received in the preceding fiscal. ICICI Prudential MF paid Rs 6.98 crore to its Managing Director Nimesh Shah last fiscal, a hike of 12 per cent from Rs 6.25 crore in 2018-19. Nippon India MF's CEO Sundeep Sikka got a salary of Rs 6.01 crore, which is a decline of 8 per cent from last fiscal, while the same for A Balasubramanian, chief executive at Aditya Birla SunLife MF, was at Rs 5.41 crore, a decrease of 7 per cent. IDFC Mutual Fund chief executive Vishal Kapoor's pay package rose to Rs 5.12 crore from Rs 5.01 crore, translating into an increase of 2 per cent. Chandresh Nigam, chief executive at Axis MF, got a salary of Rs 4.8 crore in the period under review as compared to Rs 3.97 crore in 2018-19. However, he took home a pay package of Rs 17.67 crore, which included a one time pay-out. UTI MF's Acting CEO Imtaiyazur Rahman took home a salary of Rs 4.48 crore in the past fiscal, a 97 per cent jump from Rs 2.27 crore paid in 2018-19. On the other hand, salary of DSP MF's Kalpen Parekh plunged by 19 per cent to Rs 4.2 crore in 2019-20. The salary of Sanjay Sapre, president of Franklin Templeton MF, was not available for 2019-20 as the company's financial year ends in September. Sapre's salary was Rs 3.50 crore for the year ended September 30, 2019, as compared to Rs 2.99 crore in the previous fiscal. L&T MF top boss Kailash Kulkarni's salary rose from Rs 2.41 crore to Rs 2.7 crore in the period under review. The fund houses started disclosing salaries after Sebi, in April 2017, directed them to disclose annual remuneration of all employees earning Rs 1.02 crore or above within one month of a financial year, starting with 2016-17. Earlier, remuneration of all employees earning Rs 60 lakh or above in a financial year was required to be disclosed. This is part of Sebi's effort to promote transparency in remuneration policies so that executive salary is aligned with the interest of investors. While a few mutual fund houses have complied with Sebi's directive and disclosed the information, others still have to comply with the rule. The asset under management of the industry, comprising 44 players, rose to Rs 27 lakh crore at the end of March 31, 2020 from Rs 24.5 crore in March-end 2019 and Rs 23 lakh crore in March-end 2018. Also read: Major milestone! India conducts 1 million coronavirus tests Also read: Need to allow industrial activity across all zones amid coronavirus lockdown: CII to govt Also read:I-T department warns against fake refund messages
3 May 11:28 • Business Today • https://www.businesstoday.in/current/economy-politics/salaries-increase-for-top-mutual-fund-ceos/story/402746.htmlRating: 2.10
Amid Covid-19 pandemic, salaries increase for top mutual fund CEOs
CEO salaries increased at the country’s top mutual fund houses during 2019-20 on robust business growth, with HDFC Mutual Fund’s Milind Barve being the highest paid executive. According to an analysis of the data made public by mutual funds, the CEO salary given by the top 12 fund houses in terms of assets under management increased in the range of 2-132 per cent in 2019-20 from the preceding fiscal year. However, CEO remuneration of Aditya Birla Sunlife MF, Nippon India MF and DSP MF dropped by up to 19 per cent during the period under review. The salaries for chief investment officers also witnessed a rise for most fund houses. Salary disclosed by the fund houses for 2019-20 was decided in April-May 2019 on the basis of 2018-19 profitability, which was at an all-time high for the industry, according to industry executives. Overall, the past fiscal was a good year for the mutual fund industry barring the month of March, which saw record declines amid the coronaviruspandemic. Barve, chief executive of second-largest fund house HDFC MF, claimed the top slot with a salary pay-out of Rs 7.43 crore for the fiscal. His package climbed by 3 per cent from Rs 7.23 crore in 2018-19. In terms of percentage growth, SBI MF, which is the largest fund house in the country in terms of AUM, gave its CEO Ashwani Bhatia a salary jump of 132 per cent to Rs 51 lakh in 2019-20. He had earned a salary of Rs 22 lakh in the preceding fiscal. Ironically, Bhatia is the lowest paid CEO among the top fund houses. Apart from SBI MF, fund houses like UTI MF and Kotak MF too gave a staggering salary hike to their respective CEOs. Barve is followed by Nilesh Shah, the top honcho of Kotak MF, who received a pay package of Rs 7.32 crore, 68 per cent higher than Rs 4.35 crore received in the preceding fiscal. ICICI Prudential MF paid Rs 6.98 crore to its Managing Director Nimesh Shah last fiscal, a hike of 12 per cent from Rs 6.25 crore in 2018-19. Nippon India MF’s CEO Sundeep Sikka got a salary of Rs 6.01 crore, which is a decline of 8 per cent from last fiscal, while the same for A Balasubramanian, chief executive at Aditya Birla SunLife MF, was at Rs 5.41 crore, a decrease of 7 per cent. IDFC Mutual Fund chief executive Vishal Kapoor’s pay package rose to Rs 5.12 crore from Rs 5.01 crore, translating into an increase of 2 per cent. Chandresh Nigam, chief executive at Axis MF, got a salary of Rs 4.8 crore in the period under review as compared to Rs 3.97 crore in 2018-19. However, he took home a pay package of Rs 17.67 crore, which included a one time pay-out. UTI MF’s Acting CEO Imtaiyazur Rahman took home a salary of Rs 4.48 crore in the past fiscal, a 97 per cent jump from Rs 2.27 crore paid in 2018-19. On the other hand, salary of DSP MF’s Kalpen Parekh plunged by 19 per cent to Rs 4.2 crore in 2019-20. The salary of Sanjay Sapre, president of Franklin Templeton MF, was not available for 2019-20 as the company’s financial year ends in September. Sapre’s salary was Rs 3.50 crore for the year ended September 30, 2019, as compared to Rs 2.99 crore in the previous fiscal. L&T MF top boss Kailash Kulkarni’s salary rose from Rs 2.41 crore to Rs 2.7 crore in the period under review. The fund houses started disclosing salaries after Sebi, in April 2017, directed them to disclose annual remuneration of all employees earning Rs 1.02 crore or above within one month of a financial year, starting with 2016-17. Earlier, remuneration of all employees earning Rs 60 lakh or above in a financial year was required to be disclosed. This is part of Sebi’s effort to promote transparency in remuneration policies so that executive salary is aligned with the interest of investors. While a few mutual fund houses have complied with Sebi’s directive and disclosed the information, others still have to comply with the rule. The asset under management of the industry, comprising 44 players, rose to Rs 27 lakh crore at the end of March 31, 2020 from Rs 24.5 crore in March-end 2019 and Rs 23 lakh crore in March-end 2018.
3 May 08:55 • The Indian Express • https://indianexpress.com/article/business/companies/amid-covid-19-pandemic-salaries-increase-for-top-mutual-fund-ceo-6391685/Rating: 0.30
Super funds push for more CEO pay pain, despite 40pc cuts
Industry super funds are warning top listed companies to extend CEO, executive and board pay cuts beyond June 30 to avoid the ire of investors, despite EY analysis showing CEOs have cut their pay by more than 40 per cent. The analysis by big four accounting firm EY finds that 25 top 300 CEOs have cut their pay by an average of 39 per cent. Across all listed companies, the figure climbs to 41 per cent. The EY audit of pay cuts prepared for The Australian Financial Review does not calculate a dollar figure, however analysis prepared for the Financial Review by OpenDirector last month estimated the cuts equate to more than $25 million. The average pay cut for top 300 CEOs had reached as high 48 per cent a fortnight ago, led by pay freezes at Qantas, Myer and Premier Investments. However, as the crisis has worn on, the pay cuts have become more modest. National Australia Bank and Aristocrat Leisure were among the latest to announce reductions last week. NAB's board and chief executive Ross McEwan have cut remuneration by 20 per cent to the end of September and senior management will not receive any short-term bonuses. However, most of the cuts to date apply only until June 30 and investors, already up in arms over a string of COVID-19 capital raisings, are stepping-up pressure ahead of AGM season for the pay restraint to be extended. "We would expect boards to be using discretion to review variable remuneration outcomes over the coming months, taking into account the appropriateness of any payments in light of the experiences of their investors, staff, customers and the broader community," said Louise Davidson, chief executive of the Australian Council of Superannuation Investors, which represents non-profit super funds managing $1.6 trillion on governance and voting recommendations. "Investors would expect companies to use appropriate judgment in determining what remuneration outcomes should look like as the economy recovers," she said. The call is likely to anger some in business, with AustralianSuper – led by ACSI chairman Ian Silk – and Queensland fund LGIAsuper among the few super funds to announce a pay cut for their senior executives. EY partner Joanne Avasti said its audit confirmed that companies most drastically and immediately affected, such as airlines and leisure, cut executive pay quickly and dramatically, such as temporarily removing fixed remuneration, cancelling short-term bonuses and sacrificing board fees. However, as weeks have passed, companies affected to a lesser extent have made more modest cuts, with lower reductions in fixed remuneration and board fees, or retaining fixed remuneration but cancelling annual bonuses. "It is clear that the coming financial year will require greater flexibility and judgment as companies have difficulty determining measures and targets for variable remuneration programs with any level of certainty," she said. "In some cases existing arrangements will need to be hibernated as they are not fit for purpose at present." Qantas CEO Alan Joyce was among the first to announce that he, senior executives and the board would forego their salary for the rest of the financial year, in a move expected to save more than $5 million, after the airline stood down 20,000 workers. Myer, which has stood down 10,000 staff and closed its stores for four weeks, has also said its senior executives will work without pay. So too has the CEO of Premier Investments, which has stood down 10,000 staff at stores including Smiggle, Peter Alexander, Portmans, Just Jeans and Jay Jays, along with its directors including Solomon Lew. The response from company leaders has been varied, leaving big questions about the response of investors once AGM season hits. Flight Centre has announced a 50 per cent pay cut for senior management, and Harvey Norman's senior executives and directors agreed to a 20 per cent cut. There have also been major pay and staff cuts at large private companies and consultants, including lawyers and accountants, with EY among those cutting pay.
3 May 14:00 • Australian Financial Review • https://www.afr.com/work-and-careers/leaders/super-funds-push-for-more-ceo-pay-pain-despite-40pc-cuts-20200503-p54pbiRating: 1.94
Salaries increase for top mutual fund CEOs
CEO salaries increased at the country's top mutual fund houses during 2019-20 on robust business growth, with HDFC Mutual Fund's Milind Barve being the highest-paid executive. According to an analysis of the data made public by mutual funds, the CEO salary given by the top 12 fund houses in terms of assets under management increased in the range of 2-100 percent in 2019-20 from the preceding fiscal. However, CEO remuneration of Aditya Birla Sunlife MF, Nippon India MF and DSP MF dropped by up to 19 per cent during the period under review. The salaries for chief investment officers also witnessed a rise for most fund houses. Salary disclosed by the fund houses for 2019-20 was decided in April-May 2019 on the basis of 2018-19 profitability, which was at an all-time high for the industry, according to industry executives. Overall, the past fiscal was a good year for the mutual fund industry barring the month of March, which saw record declines amid the coronavirus pandemic. Barve, chief executive of second-largest fund house HDFC MF, claimed the top slot with a salary pay-out of Rs 7.43 crore for the fiscal. His package climbed by 3 per cent from Rs 7.23 crore in 2018-19. SBI MF, which is the largest fund house in the country in terms of AUM, gave its CEO Ashwani Bhatia a salary of Rs 51 lakh in 2019-20. He had earned a salary of Rs 22 lakh in the eight months of preceding fiscal. Bhatia, who had joined in August 2018, is the lowest paid CEO among the top fund houses. Apart from SBI MF, fund houses like UTI MF and Kotak MF too gave a staggering salary hike to their respective CEOs. Barve is followed by Nilesh Shah, the top honcho of Kotak MF, who received a pay package of Rs 7.32 crore, 68 per cent higher than Rs 4.35 crore received in the preceding fiscal. ICICI Prudential MF paid Rs 6.98 crore to its Managing Director Nimesh Shah last fiscal, a hike of 12 per cent from Rs 6.25 crore in 2018-19. Nippon India MF''s CEO Sundeep Sikka got a salary of Rs 6.01 crore, which is a decline of 8 per cent from last fiscal, while the same for A Balasubramanian, chief executive at Aditya Birla SunLife MF, was at Rs 5.41 crore, a decrease of 7 per cent. IDFC Mutual Fund chief executive Vishal Kapoor''s pay package rose to Rs 5.12 crore from Rs 5.01 crore, translating into an increase of 2 per cent. Chandresh Nigam, chief executive at Axis MF, got a salary of Rs 4.8 crore in the period under review as compared to Rs 3.97 crore in 2018-19. However, he took home a pay package of Rs 17.67 crore, which included a one time pay-out. UTI MF''s Acting CEO Imtaiyazur Rahman took home a salary of Rs 4.48 crore in the past fiscal, a 97 per cent jump from Rs 2.27 crore paid in 2018-19. On the other hand, salary of DSP MF''s Kalpen Parekh plunged by 19 per cent to Rs 4.2 crore in 2019-20. The salary of Sanjay Sapre, president of Franklin Templeton MF, was not available for 2019-20 as the company''s financial year ends in September. Sapre''s salary was Rs 3.50 crore for the year ended September 30, 2019, as compared to Rs 2.99 crore in the previous fiscal. L&T MF top boss Kailash Kulkarni''s salary rose from Rs 2.41 crore to Rs 2.7 crore in the period under review. The fund houses started disclosing salaries after Sebi, in April 2017, directed them to disclose annual remuneration of all employees earning Rs 1.02 crore or above within one month of a financial year, starting with 2016-17. Earlier, remuneration of all employees earning Rs 60 lakh or above in a financial year was required to be disclosed. This is part of Sebi''s effort to promote transparency in remuneration policies so that executive salary is aligned with the interest of investors. While a few mutual fund houses have complied with Sebi''s directive and disclosed the information, others still have to comply with the rule. The asset under management of the industry, comprising 44 players, rose to Rs 27 lakh crore at the end of March 31, 2020 from Rs 24.5 crore in March-end 2019 and Rs 23 lakh crore in March-end 2018.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.
3 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/business/mutual-funds/salaries-increase-for-top-mutual-fund-ceos-2-5217091.htmlRating: 0.30
Intel is reportedly close to buying transit app creator Moovit
3 May 16:13
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Intel is reportedly close to buying transit app creator Moovit
Intel’s autonomous driving ambitions may soon get a boost from a well-known app developer. Calcalist, The Marker and TechCrunch sources claim Intel is close to acquiring transit app developer Moovit in a deal that would be worth around $1 billion. The deal would reportedly fold Moovit into Intel’s Israeli automotive hub (currently led by Mobileye) and help with its overall self-driving strategy. Moovit told TechCrunch it had no comment “at this time.” A deal is supposedly near enough that it could be unveiled within days. It’s easy to see why Intel would be interested in Moovit, and not just because of existing financial backing. The startup uses a mix of AI and data analytics to monitor real-time traffic and offer transit directions to roughly 800 million people. That could be valuable for robotaxis and other driverless vehicles that need to consider live traffic to choose the fastest routes. If your Intel-powered ride avoids gridlock to reach your destination on time, you’ll know who to thank.
3 May 16:13 • Engadget • https://www.engadget.com/intel-close-to-buying-moovit-161315421.htmlRating: 2.92
Intel Reportedly Finalizing $1B Deal to Buy Israeli Startup Moovit
Tech giant Intel Corp. is reportedly in the final stages of a $1 billion deal to acquire Israeli startup Moovit, a company that uses artificial intelligence and big data analytics to track traffic and transit to provide route recommendations to some 800 million consumers around the globe. A spokesperson from Moovit declined to comment when contacted by Inventiva. However, sources who spoke with the news outlet said the startup is slated to become part of Intel’s Israeli automotive hub, which is anchored by autonomous driving firm Mobileye. Intel acquired Mobileye in 2017 for $15.3 billion, the biggest acquisition deal in Israel at the time. Intel Capital has previously backed Moovit in a strategic investment, according to Inventiva.
3 May 22:46 • The Jewish Press • https://www.jewishpress.com/news/breaking-news/intel-reportedly-finalizing-1b-deal-to-buy-israeli-startup-moovit/2020/05/03/Rating: 0.34
Intel reportedly acquiring smart transit startup Moovit for $1 billion
Intel is reportedly close to acquiring Moovit, which is an Israel-based startup that uses AI and data analytics to track traffic and provide transit insights. TechCrunch reports that the deal is expected to close in the next few days for around $1 billion USD (about $1.4 billion CAD). The deal would reportedly combine Moovit into Intel’s Israeli automotive hub and advance its self-driving strategy. Although it’s not clear what Moovit would do in that space, its traffic data and intelligent routing would help advance autonomous vehicles services. Moovit’s data analytics would be useful for driverless vehicles that need to understand live traffic to determine the more efficient routes. The company has also reported significant recent growth in the past few years. In 2018, Moovit reported that its apps were used by 120 million people around the world in 2,000 cities and 80 countries. Now in 2020, that number has increased to 800 million people in 3,100 cities in 102 countries. Nothing has been confirmed about the acquisition yet, but sources say that Intel is expected to make an announcement soon. Source: TechCrunch
3 May 18:04 • mobilesyrup • https://mobilesyrup.com/2020/05/03/intel-reportedly-acquiring-smart-transit-startup-moovit/Rating: 0.45
UK-US trade talks to begin on Tuesday
3 May 16:20
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UK-US trade talks to begin on Tuesday
The UK will plough ahead with trade talks with the US on Tuesday as both nations insist that the negotiations will not be derailed by the coronavirus pandemic. A video conference call will be held between Liz Truss, international trade secretary, and Robert Lighthizer, US trade representative. The first round of negotiations will last for two weeks and will involve 200 officials. Future talks will take place every six weeks, according to officials. The ability for the UK to strike trade deals with individual countries has always been seen as a major prize by the Eurosceptic politicians who led the campaign to leave the European Union in 2016. The Department for International Trade has suggested that a successful deal with Washington could eventually boost the UK economy by £15bn a year. The department says its analysis suggests that an FTA would benefit every region and nation of the UK with the greatest benefits in Scotland, the midlands and north-east. However, the government has previously said that such a US deal could boost GDP between 0.07 per cent and 0.16 per cent, prompting claims from some trade experts that the net effect would be negligible compared to the loss of trade resulting from leaving the EU’s single market and customs union. A cross-Whitehall study conducted in 2018 suggested that growth would be reduced by 2 to 8 per cent in the same period as a result of Brexit. The UK talks will be led by Oliver Griffiths, director of US negotiations at the DIT, and overseen by Crawford Falconer, chief trade negotiation adviser for the department. Ms Truss said she would “drive a hard bargain” to secure a deal that benefited the UK and help the economy bounce back from the economic challenges posed by Covid-19. “We want to strike an ambitious deal that opens up new opportunities for our businesses, brings in more investment and creates better jobs for people across the whole of the country,” she said. Washington is expected to demand a relaxation on some regulations in agribusiness, such as allowing imports of chlorinated chicken, which could prove politically unpalatable. Ms Truss has previously said that maintaining food standards is a “red line” for the UK. Donald Trump, US president, initially said that access to the National Health Service would be “on the table” during the talks, only to distance himself from those comments a few months later. In early March, the UK government released its negotiating objectives document in which it said that boosting trade for small and medium companies was a priority. Although the primary focus is on goods, the UK is hopeful of boosting trade in digital services. The UK also hopes to secure an early deal on financial services and will run talks in parallel on improving ties between the City of London and Wall Street.
3 May 16:20 • Ft • https://www.ft.com/content/a5f8eeb1-2c49-4125-927d-1ff0762dfdb5Rating: 2.96
Britain and America will officially launch talks for a major free trade agreement on Tuesday – UK Express
The significant move comes amid growing optimism that the two countries can have a first stage deal in place by the end of the year when the UK’s transition period with the EU comes to an end. The International Trade Secretary Liz Truss and the US Trade Representative Robert Lighthizer are launching negotiations through a video conference call. This first round of negotiations will last for around two weeks and will involve around 100 negotiators on each side. Meanwhile, Tory MPs are pressing the government to ensure trade deals are in place to speed up Britain’s recovery from the coronavirus. Despite being the risk-positive news, the fears of the US-China trade war keep the US dollar strong against the majority of its counterparts amid the early Asian session on Monday. That said, the GBP/USD remains on the back foot around 1.2480 by the press time.
3 May 21:39 • FXStreet • https://www.fxstreet.com/news/britain-and-america-will-officially-launch-talks-for-a-major-free-trade-agreement-on-tuesday-uk-express-202005032139Rating: 1.96
UK trade talks with US begin Tuesday
LONDON — The U.K. and U.S. will launch talks on a free-trade agreement on Tuesday. U.K. International Trade Secretary Liz Truss will hold an initial video call with U.S. Trade Representative Robert Lighthizer, with around 100 officials listening in from both sides. Truss pledged to drive a "hard bargain" with Washington and insisted a trade deal is "essential' to ease the economic burden of the coronavirus. The first round of talks is set to take two weeks, with further rounds roughly every six weeks. Britain hopes to win lower goods tariffs on its exports to the U.S. on things like cars and ceramics, as well as a package on services, among other things. Ministers hope negotiations with Washington will pile pressure on the EU in the Brexit trade talks, where the two sides are at an impasse over key sticking points such as fisheries and level playing field rules to limit competition. Truss said: “As we kick off trade negotiations this week, we will drive a hard bargain that benefits every part of the U.K. and works for the small businesses who are suffering most in this difficult period.” Jeff Emerson, the spokesman for the U.S. trade representative, added: "I can confirm the talks start Tuesday by video-conference." On the U.K. side, the talks will be led by negotiator Oliver Griffiths and overseen by Chief Trade Negotiation Adviser Crawford Falconer. The talks will be held remotely until travel becomes possible.
3 May 15:26 • POLITICO • https://www.politico.eu/article/uk-trade-talks-with-us-begin-tuesday/Rating: 0.80
Post-Brexit trade deal talks with US to begin this week
Britain will begin the first round of post-Brexit trade deal talks with the US this week as the Government seeks to strike an “ambitious” relationship which “opens up new opportunities” to UK businesses. International Trade Secretary Liz Truss and US trade representative Robert Lighthizer will launch the negotiations via video conference call because of the Covid-19 crisis. Around 100 negotiators on each side will take part in the talks, the first round of which are set to last for a fortnight. Further rounds will take place roughly every six weeks, and will continue to be carried out remotely until it is safe to travel. “We want to strike an ambitious deal that opens up new opportunities for our businesses, brings in more investment and creates better jobs for people across the whole of the country. “As we sit down at the negotiating table early next week, be assured that we will drive a hard bargain to secure a deal that benefits individuals and businesses in every region and nation of the UK.” Talks will be led on the UK side by UK-US chief negotiator Oliver Griffiths, while all UK trade negotiations are being overseen by the Department for International Trade’s chief trade negotiation adviser Crawford Falconer. It comes after the UK blamed Brussels for having made “limited progress” during the second round of negotiations on a future trade deal between the European Union and UK. Negotiators have warned their counterparts across the Channel that Britain will “not subordinate” its laws to the EU “in any areas” and called for more flexibility from the bloc in order to strike a deal. The EU’s negotiation mandate stated that the UK must sign up to some Brussels-set regulations to prevent the bloc being undercut on standards once the transition period ends in December. Michel Barnier, the EU’s chief negotiator, last month accused the UK of refusing to commit “seriously” on numerous fundamental points during the talks, which took place via video-conferencing technology because of the coronavirus pandemic. Shadow international trade secretary Emily Thornberry said: “With the US election now just six months away, we should all be extremely wary of a president who will do anything to stay in the White House, and a Conservative Government that will do anything to help him. “That is a recipe for a trade deal designed for the benefit of the major corporations behind American industry, farming and healthcare, which will have very real implications on workers’ rights, environmental protections, the food we eat and our beloved NHS. “If Boris Johnson will not stand up to Donald Trump, then the British Parliament must. This is too important to get wrong. “Labour will insist that any proposed trade deal is subject to proper scrutiny, and we will not let the interests of the British people be sacrificed to boost the profits of US corporations.”
3 May 12:37 • Jersey Evening Post • https://jerseyeveningpost.com/news/uk-news/2020/05/02/post-brexit-trade-deal-talks-with-us-to-begin-this-week/Rating: 0.38
Post-Brexit trade deal talks with US to begin this week
The negotiations will be launched on Tuesday via video conference call because of the coronavirus crisis. Britain will begin the first round of post-Brexit trade deal talks with the US this week as the Government seeks to strike an “ambitious” relationship which “opens up new opportunities” to UK businesses. International Trade Secretary Liz Truss and US trade representative Robert Lighthizer will launch the negotiations via video conference call because of the Covid-19 crisis. Around 100 negotiators on each side will take part in the talks, the first round of which are set to last for a fortnight. Further rounds will take place roughly every six weeks, and will continue to be carried out remotely until it is safe to travel. Ms Truss said: “The US is our largest trading partner and increasing transatlantic trade can help our economies bounce back from the economic challenge posed by coronavirus. “We want to strike an ambitious deal that opens up new opportunities for our businesses, brings in more investment and creates better jobs for people across the whole of the country. “As we sit down at the negotiating table early next week, be assured that we will drive a hard bargain to secure a deal that benefits individuals and businesses in every region and nation of the UK.” Talks will be led on the UK side by UK-US chief negotiator Oliver Griffiths, while all UK trade negotiations are being overseen by the Department for International Trade’s chief trade negotiation adviser Crawford Falconer. It comes after the UK blamed Brussels for having made “limited progress” during the second round of negotiations on a future trade deal between the European Union and UK. Negotiators have warned their counterparts across the Channel that Britain will “not subordinate” its laws to the EU “in any areas” and called for more flexibility from the bloc in order to strike a deal. The EU’s negotiation mandate stated that the UK must sign up to some Brussels-set regulations to prevent the bloc being undercut on standards once the transition period ends in December. Michel Barnier, the EU’s chief negotiator, last month accused the UK of refusing to commit “seriously” on numerous fundamental points during the talks, which took place via video-conferencing technology because of the coronavirus pandemic. Shadow international trade secretary Emily Thornberry said: “With the US election now just six months away, we should all be extremely wary of a president who will do anything to stay in the White House, and a Conservative Government that will do anything to help him. “That is a recipe for a trade deal designed for the benefit of the major corporations behind American industry, farming and healthcare, which will have very real implications on workers’ rights, environmental protections, the food we eat and our beloved NHS. “If Boris Johnson will not stand up to Donald Trump, then the British Parliament must. This is too important to get wrong. “Labour will insist that any proposed trade deal is subject to proper scrutiny, and we will not let the interests of the British people be sacrificed to boost the profits of US corporations.”
2 May 21:03 • Shropshire Star • https://www.shropshirestar.com/news/uk-news/2020/05/02/post-brexit-trade-deal-talks-with-us-to-begin-this-week/Rating: 0.30
Post-Brexit trade deal talks with US to begin this week
Britain will begin the first round of post-Brexit trade deal talks with the US this week as the Government seeks to strike an “ambitious” relationship which “opens up new opportunities” to UK businesses. International Trade Secretary Liz Truss and US trade representative Robert Lighthizer will launch the negotiations via video conference call because of the Covid-19 crisis. Around 100 negotiators on each side will take part in the talks, the first round of which are set to last for a fortnight. Further rounds will take place roughly every six weeks, and will continue to be carried out remotely until it is safe to travel. Ms Truss said: “The US is our largest trading partner and increasing transatlantic trade can help our economies bounce back from the economic challenge posed by coronavirus. “We want to strike an ambitious deal that opens up new opportunities for our businesses, brings in more investment and creates better jobs for people across the whole of the country. “As we sit down at the negotiating table early next week, be assured that we will drive a hard bargain to secure a deal that benefits individuals and businesses in every region and nation of the UK.” Talks will be led on the UK side by UK-US chief negotiator Oliver Griffiths, while all UK trade negotiations are being overseen by the Department for International Trade’s chief trade negotiation adviser Crawford Falconer. It comes after the UK blamed Brussels for having made “limited progress” during the second round of negotiations on a future trade deal between the European Union and UK. Negotiators have warned their counterparts across the Channel that Britain will “not subordinate” its laws to the EU “in any areas” and called for more flexibility from the bloc in order to strike a deal. The EU’s negotiation mandate stated that the UK must sign up to some Brussels-set regulations to prevent the bloc being undercut on standards once the transition period ends in December. Michel Barnier, the EU’s chief negotiator, last month accused the UK of refusing to commit “seriously” on numerous fundamental points during the talks, which took place via video-conferencing technology because of the coronavirus pandemic. Shadow international trade secretary Emily Thornberry said: “With the US election now just six months away, we should all be extremely wary of a president who will do anything to stay in the White House, and a Conservative Government that will do anything to help him. “That is a recipe for a trade deal designed for the benefit of the major corporations behind American industry, farming and healthcare, which will have very real implications on workers’ rights, environmental protections, the food we eat and our beloved NHS. “If Boris Johnson will not stand up to Donald Trump, then the British Parliament must. This is too important to get wrong. “Labour will insist that any proposed trade deal is subject to proper scrutiny, and we will not let the interests of the British people be sacrificed to boost the profits of US corporations.”
2 May 21:03 • Express & Star • https://www.expressandstar.com/news/uk-news/2020/05/02/post-brexit-trade-deal-talks-with-us-to-begin-this-week/Rating: 0.30
Britain to start trade talks with US next week, says report
LONDON, May 2 — UK ministers are to start trade deal talks with the United States next week, with Britain issuing the order to start formal negotiation despite the coronavirus pandemic, the Sun reported yesterday. The first round of the talks will be held between UK International Trade Secretary Liz Truss and US Trade Representative Robert Lighthizer, the report said, adding that until the travel lockdown lasts talks will be carried out through teleconferencing. “No10 gave the green light late this week for the talks to start,” the Sun reported, citing a source close to the negotiations. “Both countries are committed to starting trade negotiations as soon as possible to reach a comprehensive free trade agreement in these unprecedented times,” a spokeswoman for Britain’s Department for International Trade said, but declined to confirm the timeline in The Sun report. According to a Telegraph report last month, negotiations on the UK-US free trade deal were stalled due to the virus outbreak. — Reuters
2 May 00:57 • Malaymail • https://www.malaymail.com/news/money/2020/05/02/britain-to-start-trade-talks-with-us-next-week-says-report/1862257Rating: 1.42
CKP depositors to get money back
3 May 11:32
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CKP depositors to get money back
About 99.2% of the 132170 depositors of CKP Cooperative Bank will get their full deposits back as they are covered under the deposit insurance scheme, Reserve Bank of India said on Sunday. The bank's license was cancelled by the RBI. It requested the registrar of cooperative societies (RCS) for the liquidation process. "CKP Co-op Bank Ltd., Mumbai has been under All Inclusive Directions of @RBI since 2014. As there was no scope for revival of the bank, its licence has been cancelled. Out of 132170 depositors of the bank, about 99.2% will get full payment of their deposits from DICGC," a RBI spokesperson said in a social media post. RBI has requested the Registrar of Co-operative Societies, Pune, Maharashtra, to issue an order for winding up the affairs of the CKP Cooperative Bank and appoint a liquidator for the bank. Now RCS will appoint a liquidator for starting the process of giving back the deposits in consultation with Deposit Insurance and Credit Guarantee Corporation (DICGC). The deposit insurance cover was increased to ₹5 lakh from ₹1 lakh earlier this year. The bank has a deposit base of ₹485.56 crore, as on November 2019. RBI said CKP, which has 8 branches spread across Mumbai and Thane districts, did not satisfy the requirement of minimum capital and reserves and was not in a position to pay its present and future depositors.
3 May 11:32 • The Hindu • https://www.thehindu.com/business/ckp-depositors-to-get-money-back/article31494507.eceRating: 0.30
More than 90% CKP Co-op Bank depositors to get back money, says RBI
More than 99 per cent of the depositors in CKP Co-op Bank will get full payment of the deposits back from the Deposit Insurance and Credit Guarantee Corporation (DICGC), a senior official of the Reserve Bank of India (RBI) tweeted on Sunday. The RBI cancelled the licence of CKP Co-op Bank on April 28, and notified the cancellation on its website on Saturday. It said deposits up to Rs 5 lakh are guaranteed by the DICGC. This portion is 99.2 per cent. ALSO READ: RBI cancels CKP Co-op Bank's licence on adverse financial position “CKP Co-op Bank, Mumbai, has been under the all-inclusive directions of the RBI since 2014. As there was no scope for revival of the bank, its licence has been cancelled. Out of 132,170 depositors of the bank, about 99.2 per cent will get full payment of their deposits from their DICGC,” tweeted Yogesh Dayal, chief general manager of RBI. RBI, in a statement on Saturday, had said there was no concrete revival plan or proposal for merger with another bank and that credible commitment towards revival from the management was not visible. The bank failed to meet the regulatory requirement of maintaining a minimum capital adequacy ratio of 9 per cent and reserves. The RBI said the lender was not in a position to pay its present and future depositors. The affairs of the bank were being conducted in a manner detrimental to public interest and the interests of depositors, the RBI statement said. CKP Bank's NPA is more than 97 per cent as it lent to real estate players in and around Mumbai who did not pay back. The bank's total deposits was Rs 485 crore, but the net worth was a negative Rs 239 crore.
3 May 08:24 • Business-Standard • https://www.business-standard.com/article/finance/99-depositors-of-ckp-co-operative-bank-to-get-back-money-says-rbi-120050300498_1.htmlRating: 0.30
CKP Co-operative Bank licence cancellation: RBI says 99.2% of depositors to get full repayment
Under the DIGC scheme, full recovery for those accountholders is allowed who hold funds of less than Rs 5 lakh The Reserve Bank of India on Sunday said 99.2 percent of The CKP Co-operative Bank's 1.32 lakh customers will be eligible for full recovery of their funds under the DICGC scheme when the bank is liquidated. Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, full recovery for those accountholders is allowed who hold funds of less than Rs 5 lakh in case the bank goes bust. A day after licence cancellation of the bank, RBI issued a clarification on Twitter to pacify the accountholders of the lender. RBI's CGM - Communications Yogesh Dayal in a tweet today said, "Out of 132170 depositors of the bank, about 99.2% will get full payment of their deposits from DICGC." On Saturday also, the apex bank said all depositors will be covered under the deposit insurance scheme of the DICGC but did not specify how many of the bank's customers had accounts having less than Rs 5 lakh. The limit of the DICGC scheme was increased from Rs 1 lakh to Rs 5 lakh after the PMC Bank episode. Coronavirus crisis: RBI Governor Shaktikanta Das to meet bank chiefs today: What's on the agenda? On May 2, the RBI cancelled the licence of CKP Co-operative Bank, with effect from the close of business on April 30, 2020. On liquidation, depositors are entitled to repayment of their deposits up to Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions, the RBI said in a press release. "The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible," the RBI said. The Registrar of Co-operative Societies, Pune, Maharashtra, has been asked to issue an order for winding up the affairs of the Mumbai-based CKP Co-operative Bank and appoint a liquidator for the bank, it said. The Dadar, Mumbai-based CKP Co-operative Bank had deposits of Rs 486 crore. It was established in 1915. Is RBI concerned about Indian banks' credit exposure abroad via foreign branches?
3 May 10:42 • Business Today • https://www.businesstoday.in/sectors/banks/ckp-co-operative-bank-licence-cancellation-rbi-depositors-to-get-full-repayment/story/402744.htmlRating: 2.10
RBI Suspends Operations, Cancels License Of Mumbai Based CKP Co-Operative Bank
The Reserve Bank of India (RBI) on Saturday (2 May) announced the suspension of the operations of the Mumbai based CKP Co-operative Bank Limited (Ltd) and cancelled its banking licence, reports Economic Times. The RBI said that all the depositors of the bank are entitled to repayment of their deposits up to a monetary ceiling of Rs five lakh under the DICGC Act, 1961 which provides the depositors with deposit insurance. The strong decision to suspend operations and cancel the bank's license came as the RBI reasoned that the financial position of the bank was highly unsustainable and that there was no concrete revival plan or proposal for a merger with another bank. RBI also underscored that there was no credible commitment from the management of the bank towards a course of revival. The central bank said, "The affairs of the bank were and are being conducted in a manner detrimental to the public interest and the interest of the depositors and that the general character of the management of the bank is prejudicial to the interest of depositors as also public interest." The RBI will now go ahead with the liquidation proceedings against the bank post which the depositors would be paid with the insured sums on their deposits.
3 May 12:13 • Swarajya • https://swarajyamag.com/insta/rbi-suspends-operations-cancels-license-of-mumbai-based-ckp-co-operative-bankRating: 1.22
RBI cancels licence of CKP Cooperative Bank, cites its ‘adverse, unsustainable’ financial position
The Reserve Bank of India on Saturday said it cancelled the licence of Mumbai-based CKP Cooperative Bank, as the bank’s financial position is “highly adverse and unsustainable”. The central bank said that the affairs of the bank were being conducted in a manner detrimental to public interest. The order, passed on April 28, is effective from April 30. “Consequent to the cancellation of its licence, the CKP Co-operative Bank Limited, Mumbai, is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits...” the RBI said. The central bank asked the Registrar of Co-operative Societies, Pune, to issue an order for winding up the affairs of CKP Cooperative Bank. It also ordered the registrar to appoint a liquidator. The RBI said CKP Cooperative Bank is not in a position to pay its depositors. Instead, they will be paid according to the Deposit Insurance and Credit Guarantee Corporation Act, 1961. The Deposit Insurance and Credit Guarantee Corporation can grant each depositor up to Rs 5,00,000 as repayment, the RBI said. “The bank’s efforts for revival have been far from adequate though the bank has been given ample time and opportunity and dispensations,” the RBI said. “No merger proposal has been received in respect of the bank. Thus, in all likelihood, public interest would be adversely affected if the bank were allowed to carry on its business any further.” As of November 2019, the total deposits of the bank amounted to Rs 485.56 crore and its loan book has Rs 161.17 crore, Mint reported. In March, RBI had imposed a moratorium on cash-strapped Yes Bank, and restricted withdrawals at Rs 50,000 for each account. The board of directors of the bank was also superseded with immediate effect. The RBI said Yes Bank lacked a credible revival plan, and therefore it had to act in the interest of the public and depositors.
3 May 07:53 • Scroll.in • https://scroll.in/latest/960900/rbi-cancels-licence-of-ckp-cooperative-bank-cites-its-adverse-unsustainable-financial-positionRating: 0.30
About 99.2% CKP Co-operative Bank depositors to get money back under deposit insurance: RBI
About 99.2 percent of the 1,32,170 depositors of CKP Co-op Bank, whose licence was cancelled on Saturday, will get their full deposits back under the deposit insurance and credit guarantee scheme (DICGC), a Reserve Bank of India (RBI) spokesperson said on May 3. "CKP Co-op Bank Ltd, Mumbai has been under All Inclusive Directions of RBI since 2014. As there was no scope for a revival of the bank, its licence has been cancelled. Out of 1,32,170 depositors of the bank, about 99.2 percent will get full payment of their deposits from DICGC," said Yogesh Dayal, chief general manager, department of communication at RBI said in a tweet. Under Deposit insurance scheme, on liquidation, every depositor is entitled to repayment of his/her deposits up to Rs5 lakh from DICGC. In other words, going by RBI communication, 99.2 percent of the depositors of CKP Bank are in the less than Rs 5 lakh deposit category. As on April 30, the bank had a loan book of Rs 158 crore and deposits of Rs 486 crore. The bank had a negative net worth of Rs 239 crore, according to the latest figures available. Nearly, 97 percent of its loans had turned to NPAs, a lot of which are loans given to small and mid-sized real estate developers. CKP Bank has its head office at Matunga, Mumbai and has eight branches spread across Mumbai and Thane districts. "The Bank has attained an important status in the co-operative banking sector, by crossing various milestones of quality and standards and by setting new standards of its own," its website says. The lender is the latest cooperative bank to lose its licence on account of financial failure. Cancelling its licence, the RBI said that the financial position of the bank is highly adverse and unsustainable. The adverse financial position was only one of the many reasons behind the cancellation of the licence. The bank, as per RBI's observation, also did not have any concrete revival plan or proposal for a merger with another bank.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
3 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/business/about-99-2-ckp-co-operative-bank-depositors-to-get-money-back-under-deposit-insurance-rbi-5216751.htmlRating: 0.30
RBI cancels Mumbai-based CKP Co-op Bank's license
The Reserve Bank of India (RBI) on Sunday said 99.2 per cent of the depositors of The CKP Co-operative Bank Ltd., Mumbai, whose license has been cancelled, will get full payment of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC) As at November-end 2019, CKP Co-op Bank, as per its website, had deposits aggregating Rs 485.56 crore and loans aggregating Rs 161.17 crore. According to a tweet by RBI Chief General Manager Yogesh Dayal, “CKP Co-operative Bank has been under All Inclusive Directions of @RBI since 2014. As there was no scope for revival of the bank, its license has been cancelled. “Out of 132170 depositors of the bank, about 99.2% will get full payment of their deposits from DICGC.” The RBI, in a statement on Saturday, said the licence of The CKP Co-operative Bank Ltd., Mumbai, has been cancelled with effect from the close of business on April 30, 2020. Consequent to the cancellation of its licence, the Bank is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits as defined in the Banking Regulation Act, 1949 with immediate effect, the central bank said in a statement. The Registrar of Co-operative Societies, Pune, Maharashtra, has also been requested to issue an order for winding up the affairs of The CKP Co-operative Bank Ltd., Mumbai and appoint a liquidator for the bank, the central bank said in a statement. Depositors eligible for higher deposit insurance claim With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of The CKP Co-operative Bank Ltd., Mumbai, as per the DICGC Act, 1961 will be set in motion, it added. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of ₹ 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions. DICGC, a wholly owned subsidiary of the Reserve Bank of India, had raised the limit of insurance cover for depositors in insured banks from ₹1 lakh to ₹5 lakh per depositor with effect from February 4, 2020 with the approval of Government of India. The central bank said it canceled the Bank’s license as “The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible. “The bank is not satisfying the requirement of minimum capital and reserves…and capital adequacy and earning prospects…and also stipulated minimum regulatory capital requirement of 9 per cent.” The central bank statement observed that the affairs of the bank were and are being conducted in a manner detrimental to the public interest and interest of the depositors and that the general character of the management of the bank is prejudicial to the interest of depositors as also public interest. Thus, the bank has not been complying with provisions of Section 22 (3)(b) and (c) Banking Regulation Act. “The bank’s efforts for revival have been far from adequate though the bank has been given ample time and opportunity and dispensations. No merger proposal has been received in respect of the bank. Thus, in all likelihood, public interest would be adversely affected if the bank were allowed to carry on its business any further. “No useful purpose would be served by allowing the bank to continue as envisaged in Section 22(3)(e) of the Act. Rather, Public interest would be adversely affected if the bank is allowed to carry on its banking business any further,” the RBI said.
2 May 19:30 • BusinessLine • https://www.thehindubusinessline.com/money-and-banking/rbi-cancels-mumbai-based-ckp-co-op-banks-license/article31492331.eceRating: 1.98
RBI cancels licence of Mumbai-based CKP Co-op Bank
The Reserve Bank of India has cancelled the licence of Mumbai-based CKP Co-operative Bank to carry on banking business in the wake of its unsustainable financial position. The Registrar of Co-operative Societies, Maharashtra, has also been requested to issue an order for winding up the affairs of the bank and appoint a liquidator, the RBI said. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation. The bank has a deposit base of Rs 486 crore. According to the RBI, it cancelled the licence of the bank as the financial position of the bank is highly adverse and unsustainable. “There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible,” the RBI said. “The bank is not satisfying the requirement of minimum capital and reserves, capital adequacy and earning prospects and also stipulated minimum regulatory capital requirement of 9 per cent,” it said. The bank is not in a position to pay its present and future depositors. “The affairs of the bank were and are being conducted in a manner detrimental to the public interest and interest of the depositors and that the general character of the management of the bank is prejudicial to the interest of depositors as also public interest,” the RBI said. The bank’s efforts for revival have been far from adequate though the bank has been given ample time and opportunity and dispensations. “No merger proposal has been received in respect of the bank. Thus, in all likelihood, public interest would be adversely affected if the bank were allowed to carry on its business any further,” it said.
2 May 18:57 • The Indian Express • https://indianexpress.com/article/business/banking-and-finance/rbi-cancels-licence-of-mumbai-based-ckp-co-op-bank-6390986/Rating: 0.30
RBI cancels licence of Mumbai-based CKP Cooperative Bank
The Reserve Bank of India (RBI) on Saturday cancelled the licence of Mumbai-based CKP Co-operative Bank Ltd. The licence of CKP Co-operative Bank Ltd has been cancelled with effect from the close of business on April 30, 2020, as the bank's financial position had worsened. In its order, the central bank has maintained that the CKP Co-operative Bank Ltd was not in a position to pay its present and future depositors due to its financial instability. In a statement on Saturday, the RBI said, "The CKP Co-operative Bank Ltd., Mumbai, is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits." The Registrar of Co-operative Societies, Pune, Maharashtra, has also been requested to issue an order for winding up the affairs of CKP Co-operative Bank Ltd. and appoint a liquidator for the bank. The RBI said, "The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible." "The bank is not satisfying the requirement of minimum capital and reserves....The bank is not in a position to pay its present and future depositors, thereby not complying with Section 22(3) (a) read with Section 56 of the Act," the RBI said. The central bank further said that the CKP Co-operative Bank’s efforts for revival have been far from adequate though it was given ample time and opportunity and dispensations.
2 May 17:59 • India Today • https://www.indiatoday.in/business/story/rbi-cancels-licence-of-mumbai-based-ckp-cooperative-bank-1673780-2020-05-02Rating: 0.30
RBI cancels CKP Co-op Bank's licence on adverse financial position
The Reserve Bank of India (RBI) on Saturday cancelled the licence of Mumbai-based CKP Co-operative Bank, saying the lender’s financial position was highly adverse and unsustainable. The banking regulator has asked the Maharashtra government to start the process of winding up operations and appoint a liquidator. On liquidation, every depositor of the bank is entitled to get up to Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation, in line with the guidelines. The licence has been cancelled with effect from the close of business on April 30, 2020. ALSO READ: Adani Ports and SEZ promoters release 56.6 million pledged shares The RBI in a statement said there was no concrete revival plan or proposal for merger with another bank and that credible commitment towards revival from the management was not visible. The bank failed to meet the regulatory requirement of maintaining a minimum capital adequacy ratio of 9 per cent and reserves. The RBI said the lender was not in a position to pay its present and future depositors. The affairs of the bank were being conducted in a manner detrimental to public interest and the interests of depositors, the RBI statement said.
2 May 17:49 • Business-Standard • https://www.business-standard.com/article/finance/rbi-cancels-ckp-co-op-bank-s-licence-on-adverse-financial-position-120050201217_1.htmlRating: 0.30
RBI cancels CKP Co-op Bank’s licence
The Reserve Bank of India (RBI) has cancelled the licence of Mumbai-based The CKP Cooperative Bank Ltd., with effect from the close of business on April 30, 2020, as the lender’s financial position had deteriorated and it was not in a position to repay depositors. “The Registrar of Co-operative Societies, Pune, Maharashtra, has also been requested to issue an order for winding up the affairs of The CKP Cooperative Bank Ltd., Mumbai, and appoint a liquidator for the bank,” RBI said in a late evening statement on Saturday. The depositors of the bank will get a maximum of ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), as per law. The deposit insurance cover was increased to ₹5 lakh from ₹1 lakh earlier this year. The bank has a deposit base of ₹485.56 crore, as on November 2019. “The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible,” the RBI said, giving reasons for the decision. The bank has negative networth of ₹239.2 crore. It has a customer base of 1,34,167 and has eight branches spread across Mumbai and Thane districts. The banking regulator said the bank did not satisfy the requirement of minimum capital and reserves and was not in a position to pay its present and future depositors. “The affairs of the bank were and are being conducted in a manner detrimental to public interest and interest of the depositors, and the general character of the management of the bank is prejudicial to the interest of depositors as also public interest,” RBI said. The banking regulator observed that the bank’s efforts for revival have been ‘far from adequate’ though the bank has been given ample time and opportunity and dispensations. “No merger proposal has been received in respect of the bank. Thus, in all likelihood, public interest would be adversely affected if the bank were allowed to carry on its business any further,” the RBI said.
2 May 16:28 • The Hindu • https://www.thehindu.com/business/Industry/rbi-cancels-ckp-co-op-banks-licence/article31490827.eceRating: 0.30
RBI cancels licence of CKP Co-operative Bank; depositors to get up to Rs 5 lakh
On liquidation, depositors are entitled to repayment of their deposits up to Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions, RBI said The Reserve Bank of India on Saturday cancelled the licence of CKP Co-operative Bank, with effect from the close of business on April 30, 2020. On liquidation, depositors are entitled to repayment of their deposits up to Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions, the RBI said in a press release. "The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible," the RBI said. The Registrar of Co-operative Societies, Pune, Maharashtra, has been asked to issue an order for winding up the affairs of the Mumbai-based CKP Co-operative Bank and appoint a liquidator for the bank, it said. Following the cancellation of its licence, the bank is prohibited accepting deposits and repayment of deposits with immediate effect. Also Read: Coronavirus: RBI Governor praises banks for near normal operations in lockdown, reviews economic situation "With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of The CKP Co-operative Bank Ltd., Mumbai, as per the DICGC Act, 1961 will be set in motion," the RBI said. The central bank cancelled the licence of the bank as the bank did not meet the requirement of minimum capital and reserves, capital adequacy, earning prospects and also stipulated minimum regulatory capital requirement of 9 per cent. Also Read: Banks to remain closed for 13 days in May; here's full list of holidays "The bank is not in a position to pay its present and future depositors, thereby not complying with Section 22(3) (a) read with Section 56 of the Act," it added. The RBI said that the affairs of the bank were also conducted in a manner detrimental to the public interest and interest of the depositors. "The bank has not been complying with provisions of Section 22 (3)(b) and (c) of the Act," it added. According to the RBI, the bank's efforts for revival "have been far from adequate though it has been given ample time and opportunity and dispensations". "No merger proposal has been received in respect of the bank. Thus, in all likelihood, public interest would be adversely affected if the bank were allowed to carry on its business any further," the RBI said. Established in 1915, CKP Co-operative Bank is one of the oldest urban co-operative bank in Mumbai. The bank has head office at Matunga and has 8 branches spread across Mumbai and Thane Districts. As of November 2019, CKP Co-operative Bank's had a deposit base of Rs 485.56 crore, while loan book stood at Rs 161.17 crore. The bank's net worth, the total value of its assets less the total of all liabilities, was minus Rs 239.18 crore. In September last year, the Reserve Bank of India had imposed restrictions on Punjab and Maharashtra Co-operative (PMC) Bank not to do any business for six months after it found major irregularities, which included financial irregularities, complete failure of internal control and systems, and wrongdoing and under-reporting of its lending exposure.
2 May 15:44 • Business Today • https://www.businesstoday.in/current/corporate/rbi-cancels-licence-of-ckp-co-operative-bank/story/402704.htmlRating: 2.10
Fate of AAP delayed by several weeks as potential bidders circle
3 May 07:56
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Weight: 1.25
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Average US: 3.4499999999999997
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Fate of AAP delayed by several weeks as potential bidders circle
Australian Associated Press has entered detailed discussions with multiple bidders interested in salvaging the newswire and its contacts database Medianet but it will be weeks before its fate is decided. Chairman Campbell Reid said in a statement that the Board would enter confidential discussions with interested parties over several weeks after it met with consultancy TMT Partners on the weekend to discuss sale proposals. "The safeguarding of AAP staff entitlements is the first consideration for the AAP board in these discussions and any agreement entered into with a purchaser will oblige the purchaser to honour those entitlements," Mr Reid said. "In the event of there being no sale AAP will honour those entitlements." AAP's future has been in doubt since February when The Sydney Morning Herald and The Age revealed that AAP's major shareholders Nine Entertainment Co (publisher of this masthead) and News Corp planned to close the 85-year-old organisation to save costs. But the decision, which affects about 600 employees, was put on hold two months ago after AAP received a number of approaches from parties interested in acquiring its operations. Staff and AAP subscribers have since been waiting on a decision by the Board about a potential sale before they progress with plans for a future without the newswire. AAP subscribers including the ABC, Daily Mail, Private Media, Guardian Australia and Verizon Media have previously discussed pooling resources and forming journalism partnerships that could replace the newswire when it closes in June, but sources said the conversations have not progressed since the sale process began. AAP chief executive Bruce Davidson confirmed plans to establish a new private business that would include the company's fact-checking division and parts of its editorial services arm Pagemasters before the sale process began. He also held talks with private investors including stockbroker John Murray but all plans are currently on hold. News Corp Australia is planning to launch its newswire service, which will provide content for mastheads including The Australian, The Daily Telegraph and The Herald Sun and external customers, next month.
3 May 07:56 • The Age • https://www.theage.com.au/business/companies/fate-of-aap-delayed-by-several-weeks-as-potential-bidders-circle-20200503-p54pef.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
Fate of AAP delayed by several weeks as potential bidders circle
Australian Associated Press has entered detailed discussions with multiple bidders interested in salvaging the newswire and its contacts database Medianet but it will be weeks before its fate is decided. Chairman Campbell Reid said in a statement that the Board would enter confidential discussions with interested parties over several weeks after it met with consultancy TMT Partners on the weekend to discuss sale proposals. "The safeguarding of AAP staff entitlements is the first consideration for the AAP board in these discussions and any agreement entered into with a purchaser will oblige the purchaser to honour those entitlements," Mr Reid said. "In the event of there being no sale AAP will honour those entitlements." AAP's future has been in doubt since February when The Sydney Morning Herald and The Age revealed that AAP's major shareholders Nine Entertainment Co (publisher of this masthead) and News Corp planned to close the 85-year-old organisation to save costs. But the decision, which affects about 600 employees, was put on hold two months ago after AAP received a number of approaches from parties interested in acquiring its operations. Staff and AAP subscribers have since been waiting on a decision by the Board about a potential sale before they progress with plans for a future without the newswire. AAP subscribers including the ABC, Daily Mail, Private Media, Guardian Australia and Verizon Media have previously discussed pooling resources and forming journalism partnerships that could replace the newswire when it closes in June, but sources said the conversations have not progressed since the sale process began. AAP chief executive Bruce Davidson confirmed plans to establish a new private business that would include the company's fact-checking division and parts of its editorial services arm Pagemasters before the sale process began. He also held talks with private investors including stockbroker John Murray but all plans are currently on hold. News Corp Australia is planning to launch its newswire service, which will provide content for mastheads including The Australian, The Daily Telegraph and The Herald Sun and external customers, next month.
3 May 07:56 • Brisbane Times • https://www.brisbanetimes.com.au/business/companies/fate-of-aap-delayed-by-several-weeks-as-potential-bidders-circle-20200503-p54pef.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
Fate of AAP delayed by several weeks as potential bidders circle
Australian Associated Press has entered detailed discussions with multiple bidders interested in salvaging the newswire and its contacts database Medianet but it will be weeks before its fate is decided. Chairman Campbell Reid said in a statement that the Board would enter confidential discussions with interested parties over several weeks after it met with consultancy TMT Partners on the weekend to discuss sale proposals. "The safeguarding of AAP staff entitlements is the first consideration for the AAP board in these discussions and any agreement entered into with a purchaser will oblige the purchaser to honour those entitlements," Mr Reid said. "In the event of there being no sale AAP will honour those entitlements." AAP's future has been in doubt since February when The Sydney Morning Herald and The Age revealed that AAP's major shareholders Nine Entertainment Co (publisher of this masthead) and News Corp planned to close the 85-year-old organisation to save costs. But the decision, which affects about 600 employees, was put on hold two months ago after AAP received a number of approaches from parties interested in acquiring its operations. Staff and AAP subscribers have since been waiting on a decision by the Board about a potential sale before they progress with plans for a future without the newswire. AAP subscribers including the ABC, Daily Mail, Private Media, Guardian Australia and Verizon Media have previously discussed pooling resources and forming journalism partnerships that could replace the newswire when it closes in June, but sources said the conversations have not progressed since the sale process began. AAP chief executive Bruce Davidson confirmed plans to establish a new private business that would include the company's fact-checking division and parts of its editorial services arm Pagemasters before the sale process began. He also held talks with private investors including stockbroker John Murray but all plans are currently on hold. News Corp Australia is planning to launch its newswire service, which will provide content for mastheads including The Australian, The Daily Telegraph and The Herald Sun and external customers, next month.
3 May 07:56 • WAtoday • https://www.watoday.com.au/business/companies/fate-of-aap-delayed-by-several-weeks-as-potential-bidders-circle-20200503-p54pef.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
AAP staff wait on board discussions with bidders
Australian Associated Press will have to wait several more weeks before a decision is made on whether the wire service is sold or closed down. AAP chairman Campbell Reid said the board, made up of News Corp and Nine executives, has entered into "detailed discussions with a number of parties" which had expressed interest in AAP and Medianet. "These discussions are confidential and are expected to take several weeks," Mr Reid said in a statement. "The safeguarding of AAP staff entitlements is the first consideration for the AAP board in these discussions and any agreement entered into with a purchaser will oblige the purchaser to honour those entitlements. In the event of there being no sale AAP will honour those entitlements." The AAP board met over the weekend to discuss proposals which were put forward by Friday's 5pm deadline. "You should also be aware that even after the board has met, it could still be some time before any announcement is made, depending on the assessment of the bids," AAP chief executive Bruce Davidson said in a staff email on Friday afternoon. On March 3, AAP announced it would close its doors after 85 years in operation, affecting 180 editorial staff and a total of 500 individual staff members and 100 contractors across its business. By mid-March, AAP had received several approaches interested in buying the newswire and its other businesses. AAP had said the decision was made because the newswire service was "no longer viable to continue", and its largest shareholders, News Corp and Nine, decided to pull their support for the organisation to which they contribute a combined more than $10 million per year. Australian Community Media and Seven West Media both contribute more than $1 million per year. Clients of the service pay much less for access to AAP content. The Sydney Morning Herald reported that talent manager Glenn Wheatley was one of the interested parties.
3 May 05:51 • Australian Financial Review • https://www.afr.com/companies/media-and-marketing/aap-staff-wait-on-board-discussions-with-bidders-20200503-p54pdzRating: 1.94
No bank in Nigeria shall retrench staff of any cadre – CBN
3 May 23:48
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8 articles
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Best date: 3 May 19:56
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Average IN: 0.03375
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No bank in Nigeria shall retrench staff of any cadre – CBN
THE Central Bank of Nigeria (CBN) has said no bank in Nigeria shall retrench staff irrespective of their cadre. The apex bank said in a press release that this is necessary to help mitigate the negative impact of the COVID-19 pandemic on families and livelihoods. Earlier, the Managing Director of Access Bank had said in an interview that the bank would lay-off 75 per cent of its workforce which comprises mostly of junior workers. A special meeting of the bankers’ committee was convened on May 2, by the CBN, to further review the implications of the COVID-19 pandemic on the Nigerian banking industry. According to the apex bank, the committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties. CBN has, however, stated in the press release that banks will require its express approval before they can lay-off staff. In an interview with The ICIR, Martins Kayode, a financial consultant said, “Some of the banks are scared they would run out of business in no time, so they want to push some workers out to save cost.” But, according to Price Waterhouse Cooper (PWC), banks can help customers and businesses to pull through the crisis and emerge stronger once the outbreak eventually recedes. The COVID-19 pandemic has brought the world into exceptionally difficult and largely uncharted waters, and banks are feeling the strains alongside their clients, their employees and the societies they serve.
3 May 23:48 • The ICIR • https://www.icirnigeria.org/no-bank-in-nigeria-shall-retrench-staff-of-any-cadre-cbn/Rating: 0.30
BREAKING: CBN stops banks from retrenching workers
The Central Bank of Nigeria (CBN) has ordered all banks not to retrench workers. A statement from the apex bank signed by Mr. Isaac Okorafor Director, Corporate Communications said the CBN, Bankers’ Committee decided to suspend lay-offs in banks. Access Bank has been trending in the media after an alleged video of a town hall meeting between the Managing Director of the bank Herbert Wigwe and the staff. In the video, Wigwe was heard informing staff of the bank that some contract staff of the bank will be laid off while other staff will have their salaries cut. Following the backlash that greeted the video, the CBN on Sunday stated: “In order to help minimise and mitigate the negative impact of the COVID-19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time).” This decision the CBN said was taken “following special meeting of the Bankers’ Committee on May 2, 2020, to further review the implications of the COVID-19 pandemic on the Nigerian banking industry.” The Committee, the CBN noted “deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties.” At the end of the deliberations, it was also decided that “the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff.”
3 May 17:47 • Latest Nigeria News, Nigerian Newspapers, Politics • https://thenationonlineng.net/breaking-cbn-stops-banks-from-retrenching-workers/Rating: 0.30
CBN, banks suspend staff lay-off
Kayode Oyero The Central Bank of Nigeria and the banks in the country have agreed to shelve the planned sack of workers in the banking sector as a result of the pandemic. This was contained in a statement on Sunday by the apex bank’s Director, Corporate Communications, Isaac Okorafor. The PUNCH reports that the Presidential Task Force Team on COVID-19 had said last week that banks would be allowed to re-open for commercial operations as the lockdown eases in parts of the country effective Monday, May 4. Some banks had proposed the idea of downsizing their workforce as they plan to recommence operations, a decision that has met public outcry. But the apex bank said it convened a meeting with the banks to review the economic impact the proposed action would have on workers and their families, especially at such a difficult time. It said, “A special meeting of the Bankers’ Committee was convened on May 2, 2020, to further review the implications of the COVID-19 pandemic on the Nigerian banking industry. The Committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties and decided as follows: “In order to help minimize and mitigate the negative impact of the COVID19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time). “To give effect to the above measure, the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff. “The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic.”
3 May 17:32 • Punch Newspapers • https://punchng.com/breaking-cbn-banks-suspend-staff-lay-off/Rating: 0.30
Banks reach agreement to halt staff sack
The bankers committee of the Central Bank of Nigeria has agreed that plans to lay off staff would be suspended. This was announced in a statement signed by Isaac Okorafor, CBN director of corporate communications, on Sunday. A meeting of the bankers committee was reported to have held on Saturday, May 2, to review the effect of the coronavirus on the banking industry. According to the statement, it was also agreed that banks would need the express approval of the CBN to lay off any staff. “The committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties,” the statement read. “In order to help minimize and mitigate the negative impact of the COVID-19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time). “To give effect to the above measure, the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff. “The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic.” In a video that went viral on social media, Herbert Wigwe, chief executive officer of Access Bank, had hinted that the bank would have to lay off some staff and implement a salary cut. Wigwe said he would take a 40 percent salary cut.
3 May 16:55 • TheCable • https://www.thecable.ng/breaking-banks-reach-agreement-to-halt-staff-sackRating: 0.30
CBN suspends banks from sacking staff
The Central Bank of Nigeria (CBN) have suspended the ongoing staff layoffs by some banks in the country. The apex bank corporate communications director Isaac Okorafor made the disclosure in a statement on Sunday. “In order to help minimize and mitigate the negative impact of the COVID-19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time),” Okorafor said. This is coming after a few banks have resorted to lay off staff and also cut down staff salaries. Nigeria’s Access Bank Plc is one of the banks planning to cut staff salaries to avoid laying off as coronavirus continues to ravage the world and affect global economies, Bloomberg reported. Bloomberg on Friday reported that “people with direct knowledge of the matter” said the pay cuts are expected to start from May unless business conditions improve. Apart from the coronavirus troubles which forced many banks to close some of their branches and allow staff to work from home, crash of oil prices and the threat of another naira devaluation pose a great threat of rising bad-debt levels for banks. To avoid the economic crisis on the bank, CBN said there will be a review the implications of the COVID-19 pandemic on the Nigerian banking industry after their special committee meeting. The committee, the CBN noted “deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties.” Okarafor stated that “the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff.”
3 May 18:35 • The Guardian • https://guardian.ng/news/cbn-suspends-banks-autonomy-to-lay-off-staff/Rating: 0.30
BREAKING: CBN, Bankers Committee halt sack of banks’ workers
Kindly Share This Story: The Central Bank of Nigeria (CBN) has halted lay-offs by banks. The apex bank said in a statement Sunday evening that the decision was taken after a special meeting of the Bankers’ Committee. According to the statement by the Director of Corporate Communications, Mr Isaac Okoroafor, no sack of either permanently or Adhoc staff can be carried out by any bank without the approval of the regulator. The statement reads in full, “A special meeting of the Bankers’ Committee was convened on May 2, 2020, to further review the implications of the COVID-19 pandemic on the Nigerian banking industry. “The Committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties and decided as follows: “In order to help minimize and mitigate the negative impact of the COVID-19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time). “To give effect to the above measure, the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff. “The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenge occasioned by the COVID-19 pandemic.” Vanguard Kindly Share This Story:
3 May 19:56 • Vanguard News • https://www.vanguardngr.com/2020/05/breaking-cbn-bankers-committee-halt-sack-of-banks-workers/Rating: 2.43
Coronavirus: CBN orders banks not to lay off workers
The Central Bank of Nigeria (CBN) has directed banks not to lay off staff amidst the coronavirus pandemic. Although speculations about the impending sack of workers in the banking sector have been on since the outbreak of the coronavirus, Access Bank Plc was the first to announce its plan to downsize, or in the alternative slash its workers’ salaries. The group managing director of the bank, Herbert Wigwe, announced during a video conference with the bank’s staff that the management of the bank plans to offload about 75 per cent of its workforce. Criticism has tailed the bank’s decision with the Nigeria Labour Congress threatening to mobilise its members to fight such plans. But, apparently to forestall a major crisis in the country, even as the country’s economy is struggling to find its footing as the economic impact of the coronavirus bites harder, the CBN, through its Bankers’ Committee, on Sunday, ordered the immediate suspension of such plans. The CBN spokesperson, Isaac Okoroafor, who signed the statement, said the order was given at the end of a special meeting of the Bankers’ Committee held on May 2 to further review the implications of the COVID-19 pandemic on the Nigerian banking industry. The statement titled: “CBN, Bankers’ Committee Suspend Lay-offs in Banks”, reads: “A special meeting of the Bankers’ Committee was convened on May 2, 2020, to further review the implications of the COVID-19 pandemic on the Nigerian banking industry. The Committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties and decided as follows: “1. In order to help minimize and mitigate the negative impact of the COVID- 19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time). “2. To give effect to the above measure, the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff. “The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic.”
3 May 18:55 • Premium Times Nigeria • https://www.premiumtimesng.com/news/headlines/391217-just-in-coronavirus-cbn-orders-banks-not-to-lay-off-workers.html?utm_source=dlvr.it&utm_medium=twitterRating: 0.30
CBN, Bankers’ Committee Reach Agreement To Halt Employees Sack
The Central Bank of Nigeria have suspended the ongoing staff layoffs by some banks in the country. The apex bank said in a statement that the decision was taken after a special meeting of the Bankers’ Committee. Access Bank had announced plans to sack its workers as a result of the negative impact of the Coronavirus outbreak. According to the statement by the CBN Director of Corporate Communications, Mr Isaac Okoroafor, on Sunday, it was also agreed that banks would need the express approval of the apex bank to lay off any staff. The statement reads, “The committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties. “In order to help minimise and mitigate the negative impact of the COVID-19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time). “To give effect to the above measure, the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff. “The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic.”
3 May 00:00 • Sahara Reporters • http://saharareporters.com/2020/05/03/cbn-bankers%E2%80%99-committee-reach-agreement-halt-employees-sackRating: 1.44
Reliance to produce new gas from D6 by end of June; to cost USD 2.2/unit at current oil prices
3 May 11:00
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4 articles
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Average IN: 44.425
Weighted average IN: 78.03460698514779
Reliance to produce new gas from D6 by end of June; to cost USD 2.2/unit at current oil prices
Reliance Industries and its partner BP Plc of UK have pushed back the start of production from the second wave of discoveries in their eastern offshore KG-D6 block to end June because of restrictions on the movement of people and material the nationwide lockdown has imposed. At current Brent oil price of around USD 26 per barrel, the gas from R-Series field in KG-D6 block will cost about USD 2.2 per million British thermal unit -- lower than even the government-mandated rate of USD 2.39 for gas from state-owned ONGC fields. In an investor presentation post its fourth-quarter earnings, Reliance said it is working on three projects in the KG-D6 block, where production from older fields stopped in February this year. "First Gas from R-Cluster field expected by June 2020 subject to lifting of lockdown," it said. Gas production from R-Cluster was to start by mid-May but the coronavirus lockdown has delayed it. Reliance said it expects to achieve a peak output of around 28 million standard cubic metres per day by FY24 when all three projects are up and running. Reliance and BP are developing three sets of discoveries in KG-D6 block -- R-Cluster, Satellites, and MJ by 2022. R-Cluster will have a peak output of 12 mmscmd while Satellites, which are supposed to begin output from mid-2021, would produce a maximum of 7 mmscmd. MJ field will start production in second half of 2022 and will have a peak output of 12 mmscmd. Reliance in November last year auctioned the first set of 5 mmscmd of gas from the newer discoveries in the KG-D6 block by asking bidders to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. Sources said Reliance had in November set a floor or minimum quote of 8.4 per cent of dated Brent price -- which meant that bidders had to quote 8.4 per cent or a higher percentage for seeking gas supplies. Considering current average Brent price of USD 26 per barrel, the gas will cost around USD 2.2 per mmBtu. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made. In the first round of auction in November 2019, Essar Steel, Adani Group and state-owned GAIL bought a majority of volumes on offer. The price at that time came to USD 5.1-5.16 per unit. But international oil rates have slumped as demand evaporated due to outbreak of coronavirus and lockdowns imposed by countries around the globe. Essar Steel had picked up 2.25 mmscmd in the country's first transparent and dynamic forward auction that lasted about five-and-half-hours on November 15, 2019, sources said. Gujarat State Petroleum Corp (GSPC) picked up 1.2 mmscmd while Adani Group and Mahanagar Gas Ltd bought 0.3 mmscmd, sources said, adding GAIL, acting on behalf of fertiliser companies, bought 0.3 mmscmd of gas. Hindustan Petroleum Corp Ltd (HPCL) had bought 0.35 mmscmd and 0.10 mmscmd went to Gujarat State Fertilizers & Chemicals Ltd (GSFC)/Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), sources said. In all, 15 customers across sectors such as steel, petrochemicals, city gas, glass and ceramic got gas in the tender, they added. In the November 15 auction, bidders quoted between 8.5 and 8.6 per cent slope to corner all of the 5 mmscmd supplies available. This translated into a price between USD 5.1 per mmBtu and USD 5.16 per mmBtu at the then prevailing Brent oil price of USD 60 per barrel. Initially, Reliance had set a floor quote of 9 per cent of dated Brent price, which translated into a gas price of USD 5.4 per mmBtu at USD 60 oil price. But consumers saw this as a very high price considering that imported LNG in the spot market is available at around USD 4 per mmBtu rate currently. To pacify the consumers, Reliance lowered the floor/minimum quote to 8.4 per cent of dated Brent price. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, the output from D-1 and D-3 ceased in February. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake.
3 May 11:00 • Deccan Herald • https://www.deccanherald.com/business/business-news/reliance-to-produce-new-gas-from-d6-by-end-of-june-to-cost-usd-22/unit-at-current-oil-prices-832945.htmlRating: 2.25
CPCL ramps up LPG output
With the demand for liquefied petroleum gas (LPG) on the rise from domestic users because of the lockdown, Chennai Petroleum Corporation Limited (CPCL) refinery has increased its production. CPCL’s Manali refinery complex, which has three refineries, produces around 28,000 tonnes of LPG every month. “We usually produce 3 to 4% of LPG from crude oil. That has now been increased to 7 to 8%. LPG is the lightest product and it is one of the first to get in the process of refining. The secondary cracking unit too is producing LPG,” said an official source in CPCL, which is a subsidiary of Indian Oil Corporation Ltd. The Centre recently decided to import more LPG to meet the higher demand. Oil marketing companies had to put in place a few restrictions to stop panic bookings by consumers. Distributors have been witnessing a spike in demand for refill cylinders with people staying home. “We don't see this demand coming down any time soon. It will continue even if the lockdown is lifted since many people don't seem to be comfortable eating out. And with salary cuts that option will be put on the back burner as much as possible,” said a distributor. Indian Oil Corporation Ltd., which is the market leader in supply of cooking gas in the State, requires around 1 lakh tonnes of LPG a month. Around 80,000 to 90,000 tonnes are imported every month through its Ennore terminal. The State consumes around 2 lakh tonnes of LPG every month. However, this number varies slightly according to the demand, said oil industry sources.
3 May 18:20 • The Hindu • https://www.thehindu.com/news/cities/chennai/cpcl-ramps-up-lpg-output/article31496434.eceRating: 0.30
Coronavirus lockdown: Reliance to resume gas production from KG-D6 by June-end
Reliance said it expects to achieve a peak output of around 28 million standard cubic metres per day by FY24 when all three projects are up and running Reliance Industries and its partner BP Plc of UK have pushed back the start of production from the second wave of discoveries in their eastern offshore KG-D6 block to end June because of restrictions on the movement of people and material the nationwide lockdown has imposed. At current Brent oil price of around USD 26 per barrel, the gas from R-Series field in KG-D6 block will cost about USD 2.2 per million British thermal unit - lower than even the government-mandated rate of USD 2.39 for gas from state-owned ONGC fields. In an investor presentation post its fourth-quarter earnings, Reliance said it is working on three projects in the KG-D6 block, where production from older fields stopped in February this year. "First Gas from R-Cluster field expected by June 2020 subject to lifting of lockdown," it said. Gas production from R-Cluster was to start by mid-May but the coronavirus lockdown has delayed it. Reliance said it expects to achieve a peak output of around 28 million standard cubic metres per day by FY24 when all three projects are up and running. Reliance and BP are developing three sets of discoveries in KG-D6 block -- R-Cluster, Satellites, and MJ by 2022. R-Cluster will have a peak output of 12 mmscmd while Satellites, which are supposed to begin output from mid-2021, would produce a maximum of 7 mmscmd. MJ field will start production in the second half of 2022 and will have a peak output of 12 mmscmd. Reliance in November last year auctioned the first set of 5 mmscmd of gas from the newer discoveries in the KG-D6 block by asking bidders to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. Sources said Reliance had in November set a floor or minimum quote of 8.4 per cent of dated Brent price - which meant that bidders had to quote 8.4 per cent or a higher percentage for seeking gas supplies. Considering the current average Brent price of USD 26 per barrel, the gas will cost around USD 2.2 per mmBtu. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made. In the first round of auction in November 2019, Essar Steel, Adani Group and state-owned GAIL bought a majority of volumes on offer. The price at that time came to USD 5.1-5.16 per unit. But international oil rates have slumped as demand evaporated due to outbreak of coronavirus and lockdowns imposed by countries around the globe. Essar Steel had picked up 2.25 mmscmd in the country's first transparent and dynamic forward auction that lasted about five-and-half-hours on November 15, 2019, sources said. Gujarat State Petroleum Corp (GSPC) picked up 1.2 mmscmd while Adani Group and Mahanagar Gas Ltd bought 0.3 mmscmd, sources said, adding GAIL, acting on behalf of fertiliser companies, bought 0.3 mmscmd of gas. Hindustan Petroleum Corp Ltd (HPCL) had bought 0.35 mmscmd and 0.10 mmscmd went to Gujarat State Fertilizers & Chemicals Ltd (GSFC)/Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), sources said. In all, 15 customers across sectors such as steel, petrochemicals, city gas, glass and ceramic got gas in the tender, they added. In the November 15 auction, bidders quoted between 8.5 and 8.6 per cent slope to corner all of the 5 mmscmd supplies available. This translated into a price between USD 5.1 per mmBtu and USD 5.16 per mmBtu at the then-prevailing Brent oil price of USD 60 per barrel. Initially, Reliance had set a floor quote of 9 per cent of dated Brent price, which translated into a gas price of USD 5.4 per mmBtu at USD 60 oil price. But consumers saw this as a very high price considering that imported LNG in the spot market is available at around USD 4 per mmBtu rate currently. To pacify the consumers, Reliance lowered the floor/minimum quote to 8.4 per cent of dated Brent price. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, the output from D-1 and D-3 ceased in February. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake. Also Read: Coronavirus lockdown: 78% people want ecommerce sites to sell non-essential items too, shows survey Also Read: China mocks US' response to coronavirus in short animation 'Once Upon a Virus' Also Read: Major milestone! India conducts 1 million coronavirus tests
3 May 08:57 • Business Today • https://www.businesstoday.in/latest/trends/coronavirus-lockdown-ril-to-produce-new-gas-from-kg-d6-by-end-june/story/402733.htmlRating: 2.10
Reliance to produce new gas from D6 by June end; to cost $2.2 per unit
Reliance Industries and its partner BP Plc of UK have pushed back the start of production from the second wave of discoveries in their eastern offshore KG-D6 block to end June because of restrictions on movement of people and material the nationwide lockdown has imposed. At current Brent oil price of around $26 per barrel, the gas from R-Series field in KG-D6 block will cost about $2.2 per million British thermal unit -- lower than even the government mandated rate of $2.39 for gas from state-owned ONGC fields. In an investor presentation post its fourth-quarter earnings, Reliance said it is working on three projects in the KG-D6 block, where production from older fields stopped in February this year. "First Gas from R-Cluster field expected by June 2020 subject to lifting of lockdown," it said. Gas production from R-Cluster was to start by mid-May but the coronavirus lockdown has delayed it. Reliance said it expects to achieve a peak output of around 28 million standard cubic metres per day by FY24 when all three projects are up and running. ALSO READ: Reliance Industries confident of hitting zero net debt target by December Reliance and BP are developing three sets of discoveries in KG-D6 block -- R-Cluster, Satellites, and MJ by 2022. R-Cluster will have a peak output of 12 mmscmd while Satellites, which are supposed to begin output from mid-2021, would produce a maximum of 7 mmscmd. MJ field will start production in second half of 2022 and will have a peak output of 12 mmscmd. Reliance in November last year auctioned the first set of 5 mmscmd of gas from the newer discoveries in the KG-D6 block by asking bidders to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. Sources said Reliance had in November set a floor or minimum quote of 8.4 per cent of dated Brent price -- which meant that bidders had to quote 8.4 per cent or a higher percentage for seeking gas supplies. Considering current average Brent price of $26 per barrel, the gas will cost around $2.2 per mmBtu. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made. In the first round of auction in November 2019, Essar Steel, Adani Group and state-owned GAIL bought a majority of volumes on offer. The price at that time came to $5.1-5.16 per unit. But international oil rates have slumped as demand evaporated due to outbreak of coronavirus and lockdowns imposed by countries around the globe. Essar Steel had picked up 2.25 mmscmd in the country's first transparent and dynamic forward auction that lasted about five-and-half-hours on November 15, 2019, sources said. Gujarat State Petroleum Corp (GSPC) picked up 1.2 mmscmd while Adani Group and Mahanagar Gas Ltd bought 0.3 mmscmd, sources said, adding GAIL, acting on behalf of fertiliser companies, bought 0.3 mmscmd of gas. Hindustan Petroleum Corp Ltd (HPCL) had bought 0.35 mmscmd and 0.10 mmscmd went to Gujarat State Fertilizers & Chemicals Ltd (GSFC)/Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), sources said. In all, 15 customers across sectors such as steel, petrochemicals, city gas, glass and ceramic got gas in the tender, they added. ALSO READ: Soft crude oil prices to lower working capital requirement of OMCs In the November 15 auction, bidders quoted between 8.5 and 8.6 per cent slope to corner all of the 5 mmscmd supplies available. This translated into a price between $5.1 per mmBtu and $5.16 per mmBtu at the then prevailing Brent oil price of $60 per barrel. Initially, Reliance had set a floor quote of 9 per cent of dated Brent price, which translated into a gas price of $5.4 per mmBtu at $60 oil price. But consumers saw this as a very high price considering that imported LNG in the spot market is available at around $4 per mmBtu rate currently. To pacify the consumers, Reliance lowered the floor/minimum quote to 8.4 per cent of dated Brent price. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, the output from D-1 and D-3 ceased in February. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake.
3 May 07:08 • Business-Standard • https://www.business-standard.com/article/companies/reliance-to-produce-new-gas-from-d6-by-june-end-to-cost-2-2-per-unit-120050300313_1.htmlRating: 0.30
Copper giant Peru to gradually ease restrictions on mining sector in May
3 May 16:20
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3 articles
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Copper giant Peru to gradually ease restrictions on mining sector in May
LIMA — Peru will gradually ease restrictions on key sectors including mining and construction in May, the government said in a decree on Sunday, after activity had been virtually paralyzed since mid-March by the coronavirus pandemic and a nationwide lockdown. In the decree published in the official newspaper El Peruano, the government said the exploitation, storage and transportation of large-scale mining could be restarted, as well as key construction projects, some related to hydrocarbons. Peru is the world’s second largest producer of copper and is heavily dependent on the sector for economic growth. The decree said that to restart activities, companies must implement rigorous health protocols to avoid infections. These will be set by local governments within the next five days and will be supervised by health authorities. The country’s mining sector and wider economy has been hit hard by the pandemic, which has seen 42,534 confirmed cases of the virus in the country – the second most in Latin America. The death toll from the disease in Peru is now around 1,200. “It is necessary to begin the social and economic recovery,” the government said in the decree. “Therefore, it is a priority to address the transition to a resumption of activities that incorporates precautions and protective measures to prevent infections and minimize the risk of a rebound in the disease.” Major local mine Antamina, controlled by global firms BHP Group Ltd and Glencore, reported over the last week that some 210 company workers had tested positive for the novel coronavirus, of which 87% were asymptomatic. The government of President Martín Vizcarra had previously said it would restart key activities in four phases starting this month, but without specifying which sectors. The supreme decree on Sunday also included resumptions of production in the agricultural industry, industrial fishing, some areas of construction and the metal-mechanical sector. (Reporting by Marco Aquino; Writing by Adam Jourdan; Editing by Lisa Shumaker)
3 May 16:20 • Financial Post • https://business.financialpost.com/pmn/business-pmn/copper-giant-peru-to-gradually-ease-restrictions-on-mining-sector-in-mayRating: 0.94
Copper giant Peru to gradually ease restrictions on mining sector in May
Peru will gradually ease restrictions on key sectors including mining and construction in May, the government said in a decree on Sunday, after activity had been virtually paralyzed since mid-March by the coronavirus pandemic and a nationwide lockdown. In the decree published in the official newspaper El Peruano, the government said the exploitation, storage and transportation of large-scale mining could be restarted, as well as key construction projects, some related to hydrocarbons. Peru is the world’s second largest producer of copper and is heavily dependent on the sector for economic growth. The decree said that to restart activities, companies must implement rigorous health protocols to avoid infections. These will be set by local governments within the next five days and will be supervised by health authorities. The country’s mining sector and wider economy has been hit hard by the pandemic, which has seen 42,534 confirmed cases of the virus in the country – the second most in Latin America. The death toll from the disease in Peru is now around 1,200. “It is necessary to begin the social and economic recovery,” the government said in the decree. “Therefore, it is a priority to address the transition to a resumption of activities that incorporates precautions and protective measures to prevent infections and minimize the risk of a rebound in the disease.” Major local mine Antamina, controlled by global firms BHP Group Ltd and Glencore, reported over the last week that some 210 company workers had tested positive for the novel coronavirus, of which 87% were asymptomatic. The government of President Martín Vizcarra had previously said it would restart key activities in four phases starting this month, but without specifying which sectors. The supreme decree on Sunday also included resumptions of production in the agricultural industry, industrial fishing, some areas of construction and the metal-mechanical sector. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
3 May 17:40 • The Globe and Mail • https://www.theglobeandmail.com/business/international-business/article-copper-giant-peru-to-gradually-ease-restrictions-on-mining-sector-in/Rating: 2.18
Copper giant Peru to gradually ease restrictions on mining sector in May
LIMA (Reuters) - Peru will gradually ease restrictions on key sectors including mining and construction in May, the government said in a decree on Sunday, after activity had been virtually paralyzed since mid-March by the coronavirus pandemic and a nationwide lockdown. In the decree published in the official newspaper El Peruano, the government said the exploitation, storage and transportation of large-scale mining could be restarted, as well as key construction projects, some related to hydrocarbons. Peru is the world's second largest producer of copper and is heavily dependent on the sector for economic growth. The decree said that to restart activities, companies must implement rigorous health protocols to avoid infections. These will be set by local governments within the next five days and will be supervised by health authorities. The country's mining sector and wider economy has been hit hard by the pandemic, which has seen 42,534 confirmed cases of the virus in the country - the second most in Latin America. The death toll from the disease in Peru is now around 1,200. "It is necessary to begin the social and economic recovery," the government said in the decree. "Therefore, it is a priority to address the transition to a resumption of activities that incorporates precautions and protective measures to prevent infections and minimize the risk of a rebound in the disease." Major local mine Antamina, controlled by global firms BHP Group Ltd (AX:BHP) and Glencore (L:GLEN), reported over the last week that some 210 company workers had tested positive for the novel coronavirus, of which 87% were asymptomatic. The government of President Martín Vizcarra had previously said it would restart key activities in four phases starting this month, but without specifying which sectors. The supreme decree on Sunday also included resumptions of production in the agricultural industry, industrial fishing, some areas of construction and the metal-mechanical sector.
3 May 00:00 • Investing.com • https://www.investing.com/news/stock-market-news/copper-giant-peru-to-gradually-ease-restrictions-on-mining-sector-in-may-2159048Rating: 0.30
Covid-Hit Economy May Take More Than A Year To Recover: CII Survey
3 May 18:30
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Covid-Hit Economy May Take More Than A Year To Recover: CII Survey
The lockdown due to coronavirus scare has brought economic activity to a grinding halt accompanied with job and livelihood losses, according to an industry chamber survey.The country-wide lockdown imposed on 23 March, while necessary, has had deep ramifications on economic activity, a snap poll conducted by Confederation of Indian Industry has said.According to the CII CEOs Snap Poll on Impact of COVID-19 on Economy and Industry, while a majority of the firms continue to anticipate a significant decline in their topline, they now foresee a delay in economic revival and demand recovery.The survey saw the participation of more than 300 CEOs, of which nearly two-thirds belonged to Micro, Small and Medium Enterprises.Citing findings from its CEOs, the survey indicated that 65 per cent of the firms expect revenues to fall more than 40 per cent in April-June quarter.Taking cognizance of the deteriorating industry expectations, CII Director-General Chandrajit Banerjee said, “While the lockdown was necessary to mitigate the impact of coronavirus on the population, it has had dire implications for economic activity. At this hour, the industry awaits a stimulus package for economic revival and livelihood sustenance besides a calibrated exit from lockdown.”The survey results reveal that the country may experience a protracted slowdown in economic activity, as 45 per cent of the CEOs polled feel it will take over a year to achieve economic normalcy once the lockdown ends.On the job and livelihoods front, more than half of the firms foresee job losses in their respective sectors after the lockdown.A significant share of respondents (45 per cent) expect 15 per cent to 30 per cent cut in jobs.However, nearly two-thirds of the respondents reported that they have not experienced a salary/wage cut in their firms so far.With respect to their own companies, however, the respondents anticipate a slightly quicker recovery within 6-12 months with 34 per cent of the respondents indicating the same.Further, a major proportion of the respondents anticipate normalcy in domestic demand conditions within 6-12 months, post lockdown.For the full financial year 2020-21, the expectations of a fall in revenue are staggered, with 33 per cent of the firms anticipating a revenue fall of more than 40 per cent, closely followed by 32 per cent of firms expecting a revenue contraction ranging between 20 per cent to 40 per cent.While three out of four firms have identified that a ‘complete shutdown of operations’ was a major constraint being faced by business, more than half of them have also indicated ‘lack of demand for products’ as a hindrance to business activity.The survey also points out that according to a large proportion of the firms, a recovery in domestic demand, for their product or services, may precede the recovery in foreign demand for the same.
3 May 18:30 • Swarajya • https://swarajyamag.com/economy/covid-hit-economy-may-take-more-than-a-year-to-recover-cii-surveyRating: 1.22
Lockdown 3.0: India Inc. expects 40% decline in revenues, fears year-long wait for economic revival
Three out of four firms have identified 'complete shutdown of operations' as a major constraint being faced by businesses, whereas more than half of them have indicated 'lack of demand for products' as a hindrance The country-wide lockdown imposed on March 23, while necessary, has had deep ramifications on economic activity. A CII CEOs Snap Poll on Impact of COVID-19 on Economy and Industry has found that Indian industry not only anticipates a significant decline in their topline, but also fears that economic revival and demand recovery may take more than a year. The survey saw participation from more than 300 CEOs, of which nearly two-thirds belonged to MSMEs. Majority of the respondents (65 per cent) expect revenues to fall more than 40 per cent in the current quarter (April-June 2020). For financial year 2020-21, the expectations of a fall in revenue are staggered, with 33 per cent of the firms anticipating a revenue fall of more than 40 per cent, closely followed by 32 per cent of firms expecting a revenue contraction ranging between 20 per cent to 40 per cent. ALSO READ:Need to allow industrial activity across all zones amid coronavirus lockdown: CII to govt A similar snap poll conducted a month ago by CII had found significant majority of firms expecting revenues to fall more than 10 per cent. While three out of four firms have identified 'complete shutdown of operations' as a major constraint being faced by businesses, more than half of them have also indicated 'lack of demand for products' as a hindrance to business activity. The survey results also suggest the possibility of a protracted slowdown in economic activity. Forty five per cent of the respondents say it will take more than a year to achieve economic normalcy once the lockdown ends. However, with respect to their own companies, 34 per cent of the respondents anticipate a slightly quicker recovery, i.e. within 6-12 months. The CEOs also say the recovery in domestic demand, for their product or services, may precede the recovery in foreign demand for the same. ALSO READ:Coronavirus lockdown 3.0: Industry welcomes relaxations but stimulus package demand still on On the jobs and livelihoods front, more than half of the firms (54 per cent) foresee job losses in their respective sectors after the lockdown ends. A major share of respondents (45 per cent) expect 15 per cent to 30 per cent cut in jobs. However, nearly two-thirds of the respondents reported that they have not carried out a salary/wage cut in their firms so far. Taking cognisance of the deteriorating industry expectations, Chandrajit Banerjee, Director General, CII, called for a stimulus package for the industry. "While the lockdown was necessary to mitigate the impact coronavirus has on the population, it has had dire implications for economic activity. At this hour, the industry awaits a stimulus package for economic revival and livelihood sustenance besides calibrated exit from lockdown," he states. ALSO READ:Coronavirus lockdown: 78% people want ecommerce sites to sell non-essential items too, shows survey
3 May 10:14 • Business Today • https://www.businesstoday.in/current/economy-politics/lockdown3-india-inc-expects-40-percent-decline-in-revenues-fears-year-long-wait-for-economic-revival/story/402742.htmlRating: 2.10
Business Activities Significantly Hit; Recovery May Take Over A Year: CEO Survey
Bookmark The lockdown has brought economic activity to a grinding halt, industry body CII said on Sunday, citing findings from its CEOs survey, which indicated that 65 percent of the firms expect revenues to fall more than 40 percent in April-June quarter. The Confederation of Indian Industry survey results reveal that India may experience a protracted slowdown in economic activity. 45 percent of the CEOs polled estimate it will take over a year to achieve economic normalcy once the lockdown ends. The snap poll saw the participation of more than 300 CEOs, of which nearly two-thirds belonged to MSMEs. On the career and livelihoods front, more than half of the firms foresee job losses in their respective sectors after the lockdown. A significant share of respondents (45 percent) expect 15-30 percent cut in jobs. However, allaying some concerns, nearly two-thirds of the respondents reported that they have not experienced a salary/ wage cut in their firms so far. The country-wide lockdown imposed on March 23, while necessary, has had deep ramifications on economic activity, CII said. For the full financial year 2020-21, the expectations of a fall in revenue are staggered, with 33 per cent of the firms anticipating a revenue fall of more than 40 per cent, closely followed by 32 per cent of firms expecting a revenue contraction ranging between 20 per cent to 40 per cent. While three out of four firms have identified that a 'complete shutdown of operations' was a major constraint being faced by business, more than half of them have also indicated 'lack of demand for products' as a hindrance to business activity. "While the lockdown was necessary to mitigate the coronavirus impact on the population, it has had dire implications for economic activity. At this hour, the industry awaits a stimulus package for economic revival and livelihood sustenance besides calibrated exit from lockdown," CII Director General Chandrajit Banerjee said. Additionally, it is pertinent to note that according to a large proportion of the firms, a recovery in domestic demand, for their product or services, may precede the recovery in foreign demand for the same. Missing BloombergQuint's WhatsApp service? Join our Telegram channel or activate Website Notifications.
3 May 08:37 • Bloomberg | Quint • https://www.bloombergquint.com/business/business-activities-significantly-hit-recovery-may-take-over-a-year-surveyRating: 1.94
Biz activities significantly hit; recovery may take over a year: CII survey
The lockdown has brought economic activity to a grinding halt, CII said on Sunday, citing findings from its CEOs survey, which indicated that 65 per cent of the firms expect revenues to fall more than 40 per cent in April-June quarter. The survey results reveal that the country may experience a protracted slowdown in economic activity, as 45 per cent of the CEOs polled feel it will take over a year to achieve economic normalcy once the lockdown ends. The snap poll saw the participation of more than 300 CEOs, of which nearly two-thirds belonged to MSMEs. On the career and livelihoods front, more than half of the firms foresee job losses in their respective sectors after the lockdown. A significant share of respondents (45 per cent) expect 15 per cent to 30 per cent cut in jobs. ALSO READ: Coronavirus LIVE: Special train carrying 1,150 workers arrives in Odisha However, nearly two-thirds of the respondents reported that they have not experienced a salary/ wage cut in their firms so far. The country-wide lockdown imposed on 23 March, while necessary, has had deep ramifications on economic activity, CII said. For the full financial year 2020-21, the expectations of a fall in revenue are staggered, with 33 per cent of the firms anticipating a revenue fall of more than 40 per cent, closely followed by 32 per cent of firms expecting a revenue contraction ranging between 20 per cent to 40 per cent. While three out of four firms have identified that a 'complete shutdown of operations' was a major constraint being faced by business, more than half of them have also indicated 'lack of demand for products' as a hindrance to business activity. "While the lockdown was necessary to mitigate the coronavirus impact on the population, it has had dire implications for economic activity. At this hour, the industry awaits a stimulus package for economic revival and livelihood sustenance besides calibrated exit from lockdown," CII Director General Chandrajit Banerjee said. ALSO READ: Khattar urges migrant workers not to leave, says industries are resuming Additionally, it is pertinent to note that according to a large proportion of the firms, a recovery in domestic demand, for their product or services, may precede the recovery in foreign demand for the same.
3 May 08:19 • Business-Standard • https://www.business-standard.com/article/economy-policy/biz-activities-significantly-hit-recovery-may-take-over-a-year-cii-survey-120050300398_1.htmlRating: 0.30
Business activities significantly hit; recovery may take over a year: Survey
The lockdown has brought economic activity to a grinding halt, CII said on Sunday, citing findings from its CEOs survey, which indicated that 65 per cent of the firms expect revenues to fall more than 40 per cent in April-June quarter. The survey results reveal that the country may experience a protracted slowdown in economic activity, as 45 per cent of the CEOs polled feel it will take over a year to achieve economic normalcy once the lockdown ends. The snap poll saw the participation of more than 300 CEOs, of which nearly two-thirds belonged to MSMEs. On the career and livelihoods front, more than half of the firms foresee job losses in their respective sectors after the lockdown. A significant share of respondents (45 per cent) expect 15 per cent to 30 per cent cut in jobs. However, allaying some concerns, nearly two-thirds of the respondents reported that they have not experienced a salary/ wage cut in their firms so far. The country-wide lockdown imposed on March 25, while necessary, has had deep ramifications on economic activity, CII said. For the full financial year 2020-21, the expectations of a fall in revenue are staggered, with 33 per cent of the firms anticipating a revenue fall of more than 40 per cent, closely followed by 32 per cent of firms expecting a revenue contraction ranging between 20 per cent to 40 per cent. While three out of four firms have identified that a 'complete shutdown of operations' was a major constraint being faced by business, more than half of them have also indicated 'lack of demand for products' as a hindrance to business activity. "While the lockdown was necessary to mitigate the coronavirus impact on the population, it has had dire implications for economic activity. At this hour, the industry awaits a stimulus package for economic revival and livelihood sustenance besides calibrated exit from lockdown," CII Director General Chandrajit Banerjee said. Additionally, it is pertinent to note that according to a large proportion of the firms, a recovery in domestic demand, for their product or services, may precede the recovery in foreign demand for the same.
3 May 08:01 • The Economic Times • https://economictimes.indiatimes.com/news/economy/finance/business-activities-significantly-hit-recovery-may-take-over-a-year-survey/articleshow/75516154.cmsRating: 0.30
South Africa’s unemployment rate could hit 50%: report
South African Chamber of Commerce and Industry chief executive officer, Alan Mukoki, has warned that the country’s unemployment rate could climb as high as 50% in line with the National Treasury’s worst prediction. Treasury siad that more than 2.5 million jobs could be cut as a result of the coronavirus pandemic, with wages and salaries expected to fall by as much as 30%. While these numbers are severe, Mukoki said that jobs would be sacrificed so businesses could stay afloat. “Employers have cash-flow problems. Some lucky businesses will make it through this, but it will be at the cost of their workforce. “The prospect of having the unemployment rate climb to 50% is not out of line,” he told the Sunday Times. “What we are seeing is that businesses will not borrow money and get into debt to pay staff when they can simply be laid off and made the burden of the Unemployment Insurance Fund. “Most staff are not indispensable so you can get rid of them and maintain the business when it needs to be reactivated in six months’ time, or whenever the economy can reopen properly.” Worst-case Treasury has said that it expects job losses, tax losses and a contracting economy due to the coronavirus pandemic and the lockdown to halt its spread. The finance minister will only present an adjustment budget, which accounts for the impact of the pandemic and economic relief measures, in June or July, according to Treasury and tax officials who briefed lawmakers on the potential impact of the virus on Thursday (30 April). Some of the key points they presented include:
3 May 00:00 • BusinessTech • https://businesstech.co.za/news/business/394654/south-africas-unemployment-rate-could-hit-50-report/Rating: 1.45
Oil Market Update: U.S. Majors Earnings In Focus; New Trade Tiff Brewing?
It is now all a matter of time, time that it will take for two opposing trends to find a new balance. Officially many US states can start lifting their stay-at-home orders from May 1. Unofficially, reopening already began more than a week ago. From next week the US jobs market, retail spending and transport will start picking up but they will not revert from 0% to 100% capacity any time soon. A smaller trickle of around 25%-30% is more likely because of the phenomenal amount of lost jobs and the subsequent retail spending power decline. Despite an easing of restrictions, a large slice of the population does not feel safe enough to go back to life as it was before the pandemic; according to the Wall Street Journal that number is close to 60%. Nevertheless, demand should gradually start getting better over the coming weeks as some of the jobs that were lost are reinstated. On the supply side, OPEC countries and Russia will start producing less oil to the tune of 9.7mbd from the beginning of this month, and US producers will also cut output, as seen in ConocoPhillips's (NYSE:COP) 1.3mbd reduction that will start in June. But the slow reopening of US states will only be a mouse-sized nibble at the problem. Footage of dozens of full oil tankers sitting off the coast of southern California is a very clear reminder of how much surplus oil there is. In addition, Saudi Arabia and other OPEC countries ramped up their oil output to the max in April to balance out the lower income they will see from May onwards and a large portion of that oil—28 tankers, according to Rystad Energy—is still making its way to the US. So timing here is crucial. Although the supply/ demand will start to slightly shift in the weeks ahead, it is possible that the oversupply will initially become worse before it starts improving. API weekly crude oil stocks on Tuesday, EIA’s petroleum reserve numbers on Wednesday, US jobless data on Thursday and the Baker Hughes rig count on Friday should all be looked at together to form a clearer picture. Ever since the Washington Post published an article in mid-April about how US Embassy officials in China warned the State Department about inadequate safety at a Chinese research facility in Wuhan, the epicenter of the COVID 19 outbreak, it has been a question how this particular sword will be used in the months ahead. It seems that it has now become a spark to ignite the flames of a new tariff war between the US and China. President Trump has this week escalated his attacks on China over the spread of the coronavirus by threatening new tariffs. There is nothing positive in this for the oil market. For the moment Chinese demand is the only engine still driving global demand, eroded by the lockdowns and stay-at-home orders in Europe and the US. Chinese April trade data on Thursday will show where China’s oil imports are and if they have returned to pre-corona levels in April, when most of the country had already reopened and the spread of the virus was brought under control. Original Post
3 May 00:00 • Investing.com • https://www.investing.com/analysis/oil-market-week-ahead-us-majors-to-report-results-200523368Rating: 0.30
Here's how much home prices will drop over the next year — and when they're expected to hit bottom, Business Insider - Business Insider Singapore
According to a report by Bank of America, lower home prices post-pandemic will be a result of lower household incomes. While both the Payroll Protection Program and the CARES Act are expected to soften the economic blow to the housing market, BofA predicts the lower end of the housing market will feel the most heat as the hospitality, travel, and energy industries grapple with the economic impacts of the outbreak. Prior to the pandemic, BofA had estimated that home prices would increase 4% to 5% in 2020, but now it forecasts that home prices will drop until they hit a bottom in April 2021.
2 May 12:30 • www.businessinsider.sg • https://www.businessinsider.sg/how-much-us-home-prices-are-expected-to-drop-in-2020-2020-5Rating: 0.30
10 most-valued domestic firms add Rs 3.10 trn to m-cap; TCS biggest gainer
3 May 12:25
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10 most-valued domestic firms add Rs 3.10 trn to m-cap; TCS biggest gainer
Ten most-valued domestic companies together added a whopping Rs 3,10,362.26 crore to market capitalisation last week, helped by a sharp rally in the valuation of TCS and sharp recovery in the broader market. During the last week that was holiday-shortened, the Sensex rallied 2,390.40 points or 7.63 per cent. Tata Consultancy Services' (TCS) market valuation zoomed Rs 73,753.12 crore to Rs 7,56,049.23 crore, becoming the biggest gainer in the top-10 chart. ALSO READ: In pics: Migrants,students across India return to their native places The market cap of HDFC jumped Rs 58,499.9 crore to reach Rs 3,32,050.84 crore and that of HDFC Bank advanced Rs 35,213.71 crore to Rs 5,49,354.06 crore. Reliance Industries Ltd witnessed a rise of Rs 31,506.3 crore to Rs 9,30,006.19 crore in its valuation. The market valuation of ICICI Bank surged Rs 29,180.58 crore to Rs 2,45,959.12 crore and that of Infosys gained Rs 24,659.57 crore to Rs 3,05,029.05 crore. Kotak Mahindra Bank's market cap rose by Rs 22,334.73 crore to Rs 2,59,589.74 crore and that of Hindustan Unilever Limited went up by Rs 21,660.41 crore to Rs 5,15,872.69 crore. ALSO READ: LIVE: Forces boost morale of corona warriors, PM Modi says great gesture Bharti Airtel added Rs 10,911.11 crore to Rs 2,80,606.59 crore in its valuation and ITC Rs 2,642.83 crore to Rs 2,23,902.99 crore. In the ranking of top-10 firms, RIL retained the number one ranking followed by TCS, HDFC Bank, HUL, HDFC, Infosys, Bharti Airtel, Kotak Mahindra Bank, ICICI Bank and ITC.
3 May 12:25 • Business-Standard • https://www.business-standard.com/article/markets/10-most-valued-domestic-firms-add-rs-3-10-trn-to-m-cap-tcs-biggest-gainer-120050300640_1.htmlRating: 0.30
10 Most-Valued Domestic Firms Together Add Rs 3.10 Lakh Crore To Market Value
Bookmark Ten most-valued domestic companies together added a whopping Rs 3,10,362.26 crore to market capitalisation last week, helped by a sharp rally in the valuation of TCS and sharp recovery in the broader market. During the last week that was holiday-shortened, the Sensex rallied 2,390.40 points or 7.63 percent. Tata Consultancy Services' market valuation zoomed Rs 73,753.12 crore to Rs 7,56,049.23 crore, becoming the biggest gainer in the top-10 chart. The market cap of HDFC jumped Rs 58,499.9 crore to reach Rs 3,32,050.84 crore and that of HDFC Bank advanced Rs 35,213.71 crore to Rs 5,49,354.06 crore. Reliance Industries Ltd witnessed a rise of Rs 31,506.3 crore to Rs 9,30,006.19 crore in its valuation. The market valuation of ICICI Bank surged Rs 29,180.58 crore to Rs 2,45,959.12 crore and that of Infosys gained Rs 24,659.57 crore to Rs 3,05,029.05 crore. Kotak Mahindra Bank's market cap rose by Rs 22,334.73 crore to Rs 2,59,589.74 crore and that of Hindustan Unilever Limited went up by Rs 21,660.41 crore to Rs 5,15,872.69 crore. Bharti Airtel added Rs 10,911.11 crore to Rs 2,80,606.59 crore in its valuation and ITC Rs 2,642.83 crore to Rs 2,23,902.99 crore. In the ranking of top-10 firms, RIL retained the number one ranking followed by TCS, HDFC Bank, HUL, HDFC, Infosys, Bharti Airtel, Kotak Mahindra Bank, ICICI Bank and ITC. Missing BloombergQuint's WhatsApp service? Join our Telegram channel or activate Website Notifications.
3 May 10:41 • Bloomberg | Quint • https://www.bloombergquint.com/markets/10-most-valued-domestic-firms-together-add-rs-3-10-lakh-cr-to-m-cap-tcs-biggest-gainerRating: 1.94
TCS, HDFC twins, RIL gain most in market cap; top 10 domestic firms add Rs 3.10 lakh cr in four sesions
Investors saw their wealth surge by Rs 7.68 lakh crore on signs of relaxation in coronavirus lockdowns globally and central banks infusing liquidity in order to keep economies afloat Market capitalisation of top ten companies rose by a huge Rs 3.10 lakh crore in four trading sessions last week on strong rally in domestic markets amid positive global cues. Tata Consultancy Services (TCS) logged a Rs 73,753.12 crore rise in its market cap to Rs 7.56 lakh crore, becoming the biggest gainer in the top-10 chart. Market cap of mortgage lender HDFC surged Rs 58,499.9 crore to close the week at Rs 3.32 lakh crore. It's subsidiary HDFC Bank saw market cap gaining Rs 35,213.71 crore to Rs 5.49 lakh crore. Mukesh Ambani-led Reliance Industries market cap rose Rs 31,506.3 crore to Rs 9.30 lakh crore in the last four trading sessions. Financial markets were closed on account of Maharashtra Day on Friday. Investors saw their wealth surge by Rs 7.68 lakh crore on signs of relaxation in coronavirus lockdowns globally and central banks infusing liquidity in order to keep economies afloat. While Sensex gained 2,388 points (7.63%) , Nifty rose 705 points (7.70%) in last four sessions. "Most major global markets have rallied in the current week as several countries have started to talk about lifting the lockdown," said Sanjeev Zarbade, VP PCG Research, Kotak Securities. Sensex zooms 997 points, Nifty at 9,859; auto, metal shares outperform "Reports of encouraging results about Gilead's drug in treating COVID-19 as well as starting of human trials on a vaccine also fuelled the rally," he added. Encouraging results from a COVID-19 drug trial in the US turbocharged sentiment and short-covering on expiry of F&O contracts at home on Friday also added to investor wealth. Subsequently, market capitalisation of private sector lender ICICI Bank gained Rs 29,180.58 crore to Rs 2.45 lakh crore in last four sessions. IT behemoth Infosys gained Rs 24,659.57 crore in market cap to Rs 3. 05 lakh crore. Kotak Mahindra Bank's market cap rose by Rs 22,334 crore to Rs 2.59 lakh crore and that of Hindustan Unilever Limited went up by Rs 21,660.41 crore to Rs 5.15 lakh crore. Telecom major Bharti Airtel added Rs 10,911.11 crore in market cap to Rs 2.80 lakh crore . FMCG firm ITC logged a rise of Rs 2,642.83 crore to Rs 2.23 lakh crore. In the ranking of top-10 firms, RIL retained the number one ranking followed by TCS, HDFC Bank, HUL, HDFC, Infosys, Bharti Airtel, Kotak Mahindra Bank, ICICI Bank and ITC.
3 May 14:06 • Business Today • https://www.businesstoday.in/markets/company-stock/tcs-hdfc-twins-ril-gain-most-in-market-cap-top-10-domestic-firms-add-rs-310-lakh-cr/story/402756.htmlRating: 2.10
FPIs remain in sell-off mode, withdraw Rs 15,403 crore in April
3 May 14:26
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FPIs remain in sell-off mode, withdraw Rs 15,403 crore in April
In March, FPIs had withdrawn a record Rs 1.1 lakh crore on a net basis from the Indian capital markets (both equity and debt) Continuing their selling spree for the second straight month, foreign portfolio investors (FPIs) withdrew a net Rs 15,403 crore from the Indian capital markets in April amid the coronavirus crisis. As per the depositories data, FPIs pulled out a net sum of Rs 6,884 crore from equities and a net Rs 8,519 crore from the debt segment between April 1-30. The total net outflow during the month stood at Rs 15,403 crore. In March, FPIs had withdrawn a record Rs 1.1 lakh crore on a net basis from the Indian capital markets (both equity and debt). "Of the inflows that are coming into India, nearly all are in the NBFC and pharma sectors," said Harsh Jain, co-founder and COO at Groww. He further said outflows have continued due to uncertainty surrounding economic conditions and investors are being cautious, keeping their reserves in the US dollar. "Though net outflow continued in April, it did not reach the levels seen in March. However, the pessimism continues to grip the markets. Foreign investors would continue to adopt a cautious stance, which is also reflected in their investment pattern in the Indian markets. TCS, HDFC twins, RIL gain most in market cap; top 10 domestic firms add Rs 3.10 lakh cr "So far, India has been able to contain the COVID-19 pandemic from spreading aggressively. In addition to that, measures announced by the government and the RBI periodically to revitalize the sagging economy would have also resonated well with investors," said Himanshu Srivastava, senior analyst manager research, Morningstar India. With selective relaxation in the lockdown and gradual opening up of economic activity in the country, foreign investors will be closely watching the developments on this front. They would also start looking at the domestic economic indicators as well to see how the country manages its deficits, he added. "These are unprecedented scenarios; and with risk-taking going off the table, emerging markets like India may continue to witness similar trends for a prolonged period or until the time situation on the coronavirus front stabilizes," Srivastava said.FPIs remain in sell-off mode, pull out Rs 15,403 crore in April Continuing their selling spree for the second straight month, foreign portfolio investors (FPIs) withdrew a net Rs 15,403 crore from the Indian capital markets in April amid the coronavirus crisis. As per the depositories data, FPIs pulled out a net sum of Rs 6,884 crore from equities and a net Rs 8,519 crore from the debt segment between April 1-30. The total net outflow during the month stood at Rs 15,403 crore. In March, FPIs had withdrawn a record Rs 1.1 lakh crore on a net basis from the Indian capital markets (both equity and debt). "Of the inflows that are coming into India, nearly all are in the NBFC and pharma sectors," said Harsh Jain, co-founder and COO at Groww. He further said outflows have continued due to uncertainty surrounding economic conditions and investors are being cautious, keeping their reserves in the US dollar. "Though net outflow continued in April, it did not reach the levels seen in March. However, the pessimism continues to grip the markets. Foreign investors would continue to adopt a cautious stance, which is also reflected in their investment pattern in the Indian markets. "So far, India has been able to contain the COVID-19 pandemic from spreading aggressively. In addition to that, measures announced by the government and the RBI periodically to revitalize the sagging economy would have also resonated well with investors," said Himanshu Srivastava, senior analyst manager research, Morningstar India. With selective relaxation in the lockdown and gradual opening up of economic activity in the country, foreign investors will be closely watching the developments on this front. They would also start looking at the domestic economic indicators as well to see how the country manages its deficits, he added. "These are unprecedented scenarios; and with risk-taking going off the table, emerging markets like India may continue to witness similar trends for a prolonged period or until the time situation on the coronavirus front stabilizes," Srivastava said.
3 May 14:26 • Business Today • https://www.businesstoday.in/markets/stocks/fpis-sell-off-mode-withdraw-rs-15403-crore-in-april/story/402758.htmlRating: 2.10
FPIs pause selloff mode, outflow drops 88% in April
In a big relief to the capital markets, even as the coronaviruspandemic continues to hit economies and markets worldwide, foreign portfolio investors (FPIs) significantly reduced the pace of outflows in April, after a record net outflow of Rs 1,18,203 crore in March 2020. In April, FPIs pulled out a net of Rs 14,858 crore from equity and debt markets. According to data sourced from CDSL, FPIs sold a net of Rs 6,883 crore from the equities market in April and sold net holdings worth Rs 12,551 crore from the debt market. They were, however, net positive investors in debt voluntary retention route (VRR) scheme that allows FPIs to participate in repos and also invest in exchange traded funds that invest in debt instruments. They invested a net of Rs 4,032 crore in debt VRR schemes in April. The VRR channel is aimed at attracting long-term and stable FPI investments into debt markets, while providing FPIs with operational flexibility to manage their investments. While net fund outflow of Rs 14,858 crore from capital markets in April is a significant amount, it is one-eighth of outflows seen in March when the pandemic started spreading in India and the Prime Minister announced a 21-day lockdown on March 24. The outflow from the equity markets reduced from Rs 61,972 crore in March to Rs 6,883 crore in April. The sharp decline in outflow brought relief for equity markets and they staged a smart recovery, in line with other global markets. After witnessing a sharp fall of 23 per cent in March, the Sensex at BSE revived sharply by 14.4 per cent in April. Experts say as the government has announced to significantly relax the lockdown restrictions in districts marked in green and orange, and also allow certain business activities in districts marked in red, it will restart some economic activity in the country that has come to a grinding halt. “While there has been relative control in the spread of virus in India, the uncertainty still continues. However, as countries around the world are working on developing medicine and vaccine for Covid-19 and there seems to be some progress on it, a success on that front will lead to a V-shaped recovery in the economy and markets. Unless, there is a fresh scare on spread of virus, I think FPIs will not press the panic button,” said the CEO of a leading brokerage. Himanshu Srivastava, senior analyst manager research, Morningstar India, said, “So far, India has been able to contain the COVID-19 pandemic from spreading aggressively. In addition to that, measures announced by the government and the RBI periodically to revitalize the sagging economy would have also resonated well with investors.” He further added that with selective relaxation in the lockdown and gradual opening up of economic activity in the country, foreign investors will be closely watching the developments on this front. They would also start looking at the domestic economic indicators as well to see how the country manages its deficits, he added. “These are unprecedented scenarios; and with risk-taking going off the table, emerging markets like India may continue to witness similar trends for a prolonged period or until the time situation on the coronavirus front stabilizes,” said Srivastava.
3 May 19:47 • The Indian Express • https://indianexpress.com/article/business/economy/fpis-pause-selloff-mode-outflow-drops-88-in-april-6392367/Rating: 0.30
FPIs Remain In Selloff Mode, Pull Out Rs 15,403 Crore In April
Bookmark Foreign portfolio investors withdrew a net Rs 15,403 crore from the Indian capital markets in April amid the coronavirus crisis continuing their selling spree for the second straight month. As per the depositories data, FPIs pulled out a net sum of Rs 6,884 crore from equities and a net Rs 8,519 crore from the debt segment between April 1-30. The total net outflow during the month stood at Rs 15,403 crore. In March, FPIs had withdrawn a record Rs 1.1 lakh crore on a net basis from the Indian capital markets (both equity and debt). "Of the inflows that are coming into India, nearly all are in the NBFC and pharma sectors," said Harsh Jain, co-founder and COO at Groww. He further said outflows have continued due to uncertainty surrounding economic conditions and investors are being cautious, keeping their reserves in the US dollar. "Though net outflow continued in April, it did not reach the levels seen in March. However, the pessimism continues to grip the markets. Foreign investors would continue to adopt a cautious stance, which is also reflected in their investment pattern in the Indian markets. "So far, India has been able to contain the COVID-19 pandemic from spreading aggressively. In addition to that, measures announced by the government and the RBI periodically to revitalize the sagging economy would have also resonated well with investors," said Himanshu Srivastava, senior analyst manager research, Morningstar India. With selective relaxation in the lockdown and gradual opening up of economic activity in the country, foreign investors will be closely watching the developments on this front. They would also start looking at the domestic economic indicators as well to see how the country manages its deficits, he added. "These are unprecedented scenarios; and with risk-taking going off the table, emerging markets like India may continue to witness similar trends for a prolonged period or until the time situation on the coronavirus front stabilises," Srivastava said. Missing BloombergQuint's WhatsApp service? Join our Telegram channel or activate Website Notifications.
3 May 07:39 • Bloomberg | Quint • https://www.bloombergquint.com/markets/fpis-remain-in-selloff-mode-pull-out-rs-15-403-cr-in-aprilRating: 1.94
FPIs in selloff mode for 2nd straight month, pull out Rs 15,403 cr in April
Foreign portfolio investors (FPIs) continued their selling spree for the second straight month, withdrawing a net Rs 15,403 crore from the Indian capital markets in April amid the coronavirus crisis. As per the depositories data, FPIs pulled out a net sum of Rs 6,884 crore from equities and a net Rs 8,519 crore from the debt segment between April 1-30. The total net outflow during the month stood at Rs 15,403 crore. In March, FPIs had withdrawn a record Rs 1.1 trillion on a net basis from the Indian capital markets (both equity and debt). "Of the inflows that are coming into India, nearly all are in the NBFC and pharma sectors," said Harsh Jain, co-founder and COO at Groww. ALSO READ: RBI guv Das chastises banks not doing enough on lending, NBFC liquidity He further said outflows have continued due to uncertainty surrounding economic conditions and investors are being cautious, keeping their reserves in the US dollar. "Though net outflow continued in April, it did not reach the levels seen in March. However, the pessimism continues to grip the markets. Foreign investors would continue to adopt a cautious stance, which is also reflected in their investment pattern in the Indian markets. "So far, India has been able to contain the COVID-19 pandemic from spreading aggressively. In addition to that, measures announced by the government and the RBI periodically to revitalize the sagging economy would have also resonated well with investors," said Himanshu Srivastava, senior analyst manager research, Morningstar India. With selective relaxation in the lockdown and gradual opening up of economic activity in the country, foreign investors will be closely watching the developments on this front. They would also start looking at the domestic economic indicators as well to see how the country manages its deficits, he added. "These are unprecedented scenarios; and with risk-taking going off the table, emerging markets like India may continue to witness similar trends for a prolonged period or until the time situation on the coronavirus front stabilizes," Srivastava said.
3 May 05:46 • Business-Standard • https://www.business-standard.com/article/markets/fpis-in-selloff-mode-for-2nd-straight-month-pull-out-rs-15-403-cr-in-april-120050300225_1.htmlRating: 0.30
Saudi experts warn against investing in unlicensed projects
3 May 22:12
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Saudi experts warn against investing in unlicensed projects
DUBAI: Top executives of Emirates and Etihad, two of the Middle East’s biggest airlines, have said passenger demand may not return to pre-coronavirus crisis levels until 2023. About 85 percent of the world’s airlines could face financial distress by the end of the year without government aid, Emirates President Tim Clark and Etihad CEO Tony Douglas told a video conference hosted by the US-UAE Business Council last week. Clark and Douglas reiterated their beliefs that until an effective vaccine for the COVID-19 respiratory disease becomes widely available, how passengers fly will be different, a statement by the council said. Lasting restrictions like 14-day quarantines, testing, and social distancing will impact demand and operations, they said. The airlines could not be reached for comment. Emirates and Etihad, which operate fleets of over 370 aircraft, a majority of them wide-bodied, grounded their operations in March and are serving limited outbound flights to take repatriate foreigners from the UAE. Dubai is expected to resume welcoming tourists by July, more than four months after halting the vital sector due to the coronavirus pandemic, an official said. The return however will be gradual and could be delayed until September, Helal Al-Marri, the director general of Dubai’s Department of Tourism and Commerce Marketing, told Bloomberg TV last week. A majority of global airlines have also stopped operations due to shutdowns imposed to counter the spread of the novel coronavirus.
3 May 22:12 • Arab News • https://www.arabnews.com/node/1669156/business-economyRating: 1.72
UAE airlines say years needed to restore demand
DUBAI, United Arab Emirates – Top executives of Emirates and Etihad, two of the Middle East's biggest airlines, have said passenger demand may not return to pre-coronavirus crisis levels until 2023. About 85% of the world's airlines could face financial distress by the end of the year without government aid, Emirates president Tim Clark and Etihad chief executive officer Tony Douglas told a video conference hosted by the US-UAE Business Council last week. Clark and Douglas reiterated their beliefs that until an effective vaccine for the COVID-19 respiratory disease becomes widely available, how passengers fly will be different, a statement by the council said. Lasting restrictions like 14-day quarantines, testing, and physical distancing will impact demand and operations, they said. The airlines could not be reached for comment. Emirates and Etihad, which operate fleets of over 370 aircraft, a majority of them wide-bodied, have grounded their operations in March and are serving limited outbound flights to take repatriate foreigners from the United Arab Emirates. Dubai is expected to resume welcoming tourists by July, more than 4 months after halting the vital sector due to the coronavirus pandemic, an official said. The return however will be gradual and could be delayed until September, Helal al-Marri, the director general of Dubai's Department of Tourism and Commerce Marketing, told Bloomberg TV last week. A majority of global airlines have also stopped operations due to shutdowns imposed to counter the spread of the novel coronavirus. The International Air Transport Association (IATA) has repeatedly called on governments to provide generous aid to airlines. IATA said on April 23 that air traffic in the Middle East and North Africa (MENA) is set to plummet by more than half due to the virus crisis. It also said that MENA airlines' revenues are forecast to slump by $24.5 billion this year compared to 2019. The International Civil Aviation Organization, a United Nations agency, said last month that the pandemic could mean 1.2 billion fewer air passengers worldwide by September. IATA has urged governments to offer airlines direct financial support, loans, and tax relief. – Rappler.com
3 May 15:00 • Rappler • https://www.rappler.com/business/259801-uae-emirates-etihad-say-years-needed-restore-passenger-demandRating: 1.64
UAE airlines say years needed to restore demand
DUBAI, May 3 — Top executives of Emirates and Etihad, two of the Middle East’s biggest airlines, have said passenger demand may not return to pre-coronavirus crisis levels until 2023. About 85 per cent of the world’s airlines could face financial distress by the end of the year without government aid, Emirates President Tim Clark and Etihad CEO Tony Douglas told a video conference hosted by the US-UAE Business Council last week. Clark and Douglas reiterated their beliefs that until an effective vaccine for the Covid-19 respiratory disease becomes widely available, how passengers fly will be different, a statement by the council said. Lasting restrictions like 14-day quarantines, testing, and social distancing will impact demand and operations, they said. The airlines could not be reached for comment. Emirates and Etihad, which operate fleets of over 370 aircraft, a majority of them wide-bodied, have grounded their operations in March and are serving limited outbound flights to take repatriate foreigners from the United Arab Emirates. Dubai is expected to resume welcoming tourists by July, more than four months after halting the vital sector due to the coronavirus pandemic, an official said. The return however will be gradual and could be delayed until September, Helal al-Marri, the director general of Dubai’s Department of Tourism and Commerce Marketing, told Bloomberg TV last week. A majority of global airlines have also stopped operations due to shutdowns imposed to counter the spread of the novel coronavirus. The International Air Transport Association has repeatedly called on governments to provide generous aid to airlines. IATA said on April 23 that air traffic in the Middle East and North Africa is set to plummet by more than half due to the virus crisis. It also said that MENA airlines’ revenues are forecast to slump by US$24.5 billion this year compared to 2019. The International Civil Aviation Organization, a UN agency, said last month that the pandemic could mean 1.2 billion fewer air passengers worldwide by September. IATA has urged governments to offer airlines direct financial support, loans and tax relief. — AFP
3 May 13:38 • Malaymail • https://www.malaymail.com/news/money/2020/05/03/uae-airlines-say-years-needed-to-restore-demand/1862690Rating: 1.42
Credit risk funds see outflows of Rs 11,134 crore in a week after Franklin Templeton crisis
3 May 20:00
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Credit risk funds see outflows of Rs 11,134 crore in a week after Franklin Templeton crisis
Mutual funds witnessed outflows of Rs 11,134 crore under credit risk funds in a week after Franklin Templeton decided to shut down six credit risk schemes on April 24 blaming the ongoing “liquidity crisis” in the market. According to the Association of Mutual Funds of India (AMFI), net redemptions under credit risk funds stood at Rs 2,949.49 crore as of April 24, and peaked at Rs 4,294.36 crore as of April 27. “Thereafter, for the past three days i.e. on Tuesday April 28, April 29 and April 30, the net redemptions under credit risk funds stood at Rs 1,847.29 crore, Rs 1,251.17 crore and Rs 793.99 crore respectively,” AMFI said. As the credit risk fund category had assets of over Rs 55,000 crore till March, over 20 per cent of the funds was pulled out by investors in the last week of April alone. The overall debt segment had witnessed outflows of Rs 1.94 lakh crore in the month of March. However, AMFI said net redemptions under credit risk funds, one of debt mutual fund scheme category, which constitute less than 5 per cent of total debt mutual fund AUM, are tapering off substantially, post RBI’s announcement of special liquidity measure of Rs 50,000 crore for the mutual fund industry. “All mutual funds have met the redemptions in the normal course of business. There is 81.5 per cent drop in net redemptions in credit risk funds category on April 30 from the peak net redemptions as on April 27, courtesy measures announced by the RBI,” AMFI said. Explained While the RBI’s Rs 50,000 crore liquidity window has given some comfort to mutual funds, credit risk funds are most at risk if redemptions continue, particularly where funds have exposure to less liquid securities, such as unlisted securities and higher risk appetite through exposure to defaulted entities. Nilesh Shah, Chairman, AMFI, said: ‘’Declining trend in net redemptions from credit risk funds is a welcome development, indicative of investors comfort from RBI’s special liquidity facility available to the MF industry. AMFI will continue to work with regulators for normal functioning of the market.” Franklin Templeton Mutual Fund, the ninth largest mutual fund in the country, had given a big jolt to the investor community with its decision to wind up six yield-oriented managed credit funds with effect from April 23, 2020. The six schemes — Franklin India low duration fund, dynamic accrual fund, credit risk fund, short term income plan, ultra short bond fund and income opportunities fund — have combined assets under management of around Rs 28,000 crore.
3 May 20:00 • The Indian Express • https://indianexpress.com/article/business/credit-risk-funds-see-outflows-of-rs-11134-crore-in-a-week-after-franklin-templeton-crisis-6392403/Rating: 0.30
Credit risk funds’ redemptions peak at ₹4,294 cr on April 27; fall with RBI’s liquidity support
Credit risk funds have seen a net redemption of ₹8,186 crore over the past week, following the turbulence created by the sudden closure of six debt-oriented schemes by Franklin Templeton. Net redemptions under such funds peaked to ₹4,294 crore on April 27, against ₹2,949 crore on April 24. Subsequently, they fell to ₹1,847 crore, ₹1,251 crore and ₹794 crore between April 28-30 as the RBI offered support to the MF industry. Credit risk funds those that invest nearly two-thirds of their corpus in relatively low credit-rated debt instruments. Nilesh Shah, Chairman, Association of Mutual Funds in India (AMFI), said the declining trend in net redemptions from credit risk funds indicates investor comfort from RBI’s special liquidity facility to the MF industry. The AMFI will continue to work with regulators to ensure normal functioning of the market, he added. Last Monday, the RBI had announced a special liquidity window of ₹50,000 crore for banks to lend specially to the mutual fund industry to tide over any redemption pressure from investors. Banks can now borrow 90-day funds from the RBI at the current repo rate of 4.4 per cent and on-lend to MFs or purchase investment-grade corporate papers held by them. The RBI scheme is available between April 27 and May 11. Banks buying securities from MFs can hold them in their held-to-maturity segment, even if the total investment in that category overshoots the central bank’s limits. The advantage of the segment is that banks do not have to account for mark-to-market losses in case the bond values fall further. As of April 23, four mutual fund houses, including Franklin Templeton, had borrowed ₹4,428 crore from banks to meet redemption requests.
3 May 16:15 • BusinessLine • https://www.thehindubusinessline.com/money-and-banking/credit-risk-funds-redemptions-peak-at-4294-cr-on-april-27-fall-with-rbis-liquidity-support/article31495493.eceRating: 1.98
After RBI infusion, net redemptions under Credit Risk Funds down by 81.5%, claims AMFI
The Association of Mutual Funds in India (AMFI) on May 3 claimed that net redemptions under Credit Risk Funds have dropped 81.5 percent after the Reserve Bank of India (RBI) announced a special liquidity measure of Rs 50,000 crore for the mutual fund industry. Net redemptions under Credit Risk Funds stood at Rs 2,949.49 crore as on April 24 and peaked at Rs 4,294.36 crore on April 27, AMFI has said. Thereafter, for three days — April 28, 29 and 30 — the Net Redemptions under Credit Risk Funds stood at Rs 1,847.29 crore, Rs 1,251.17 crore and Rs 793.99 crore, respectively. According to AMFI, this is an 81.5 percent drop in net redemptions in Credit Risk Funds category as on April 30, from the peak on April 27 “courtesy measures announced by the RBI”. Also read | Franklin Templeton India Crisis: RBI announces Rs 50,000 crore special liquidity facility for mutual funds "Declining trend in net redemptions from Credit Risk Funds is a welcome development, indicative of Investors comfort from RBI's special liquidity facility available to the MF industry. AMFI will continue to work with Regulators for normal functioning of the market," Nilesh Shah, Chairman, AMFI. Credit Risk Funds constitute less than 5 percent of the total Debt Mutual Fund AUM. Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.
3 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/business/mutual-funds/after-rbi-infusion-net-redemptions-under-credit-risk-funds-down-by-81-5-claims-amfi-5216511.htmlRating: 0.30
Norwegian Air gets bondholder deal on US$1.2b debt-for-equity swap
3 May 23:39
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3 articles
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Norwegian Air gets bondholder deal on US$1.2b debt-for-equity swap
OSLO, May 4 — Norwegian Air said yesterday it had secured support from enough bondholders for a US$1.2 billion (RM5.15 billion) debt-for-equity swap, a vital step in helping it survive the coronavirus crisis. The budget airline is poised to run out of cash by mid-May without approval for its plan, which involves handing over most of the company to its lessors and bondholders. Airlines around the world have been hit particularly hard by the impact on travel of the coronavirus pandemic, with many forced to turn to governments for state aid to avoid bankruptcy. The next step for Norwegian Air is to secure support from its lessors for its rescue plan, ahead of an extraordinary general meeting today to get approval from shareholders. Bondholders had turned down Norwegian Air’s plan on Friday, but yesterday the airline said it had now secured a written agreement with the largest bondholders of the NAS07, without naming them, to improve some of the terms. Although holders of three of its four bonds had given sufficient backing on Friday, support among holders of the NAS07 bond had fallen short of the minimum requirement, with only 62 per cent voting in favour, less than the 67 per cent required. “I am pleased to confirm that we have reached an agreement with the bondholders,” CEO Jacob Shram said in a statement, which said that a vote will still need to take place on May 18 to ensure Norwegian Air secures the necessary 67 per cent support. The agreement will provide an improvement of terms for holders of the NAS07 — whose collateral include slots to fly in and out of London’s Gatwick airport — so that the value of their bonds after the conversion may be increased by up to 38 per cent, against 20 per cent earlier, based on valuations of the Gatwick slots. The same terms would apply for holders of another bond, the NAS08, but not for those of the NAS09, Norwegian Air said. Also today, Norwegian is set to decide the timeline for the launch of a share issue, which will end on May 18. The airline has said it plans to raise 400 million crowns. If successful, the debt-to-equity plan allows the carrier to tap government guarantees of up to 2.7 billion Norwegian crowns (US$265 million), which hinge on a reduction in its debt to equity ratio, on top of 300 million crowns it has already received. Norwegian Air is only paying invoices vital to maintaining minimum operations, such as salaries for staff still employed and critical IT infrastructure. It has put payments for ground handling, debt and leases on hold. — Reuters
3 May 23:39 • Malaymail • https://www.malaymail.com/news/money/2020/05/04/norwegian-air-gets-bondholder-deal-on-us1.2b-debt-for-equity-swap/1862734Rating: 1.42
Norwegian Air gets bondholder deal on €1.09bn debt-for-equity swap
Norwegian Air said on Sunday it had secured support from enough bondholders for a $1.2 billion (€1.09 billion) debt-for-equity swap, a vital step in helping it survive the coronavirus crisis. The budget airline is poised to run out of cash by mid-May without approval for its plan, which involves handing over most of the company to its lessors and bondholders. Airlines around the world have been hit particularly hard by the impact on travel of the coronavirus pandemic, with many forced to turn to governments for state aid to avoid bankruptcy. The next step for Norwegian Air is to secure support from its lessors for its rescue plan, ahead of an extraordinary general meeting on Monday to get approval from shareholders. Bondholders had turned down Norwegian Air’s plan on Friday, but on Sunday the airline said it had now secured a written agreement with the largest bondholders of the NAS07, without naming them, to improve some of the terms. Although holders of three of its four bonds had given sufficient backing on Friday, support among holders of the NAS07 bond had fallen short of the minimum requirement, with only 62 per cent voting in favour, less than the 67 per cent required. “I am pleased to confirm that we have reached an agreement with the bondholders,” chief executive Jacob Shram said in a statement, which said that a vote will still need to take place on May 18th to ensure Norwegian Air secures the necessary 67 per cent support. The agreement will provide an improvement of terms for holders of the NAS07 - whose collateral include slots to fly in and out of London’s Gatwick airport - so that the value of their bonds after the conversion may be increased by up to 38 per cent, against 20 per cent earlier, based on valuations of the Gatwick slots. The same terms would apply for holders of another bond, the NAS08, but not for those of the NAS09, Norwegian Air said. Also on Monday, Norwegian is set to decide the timeline for the launch of a share issue, which will end on May 18th. The airline has said it plans to raise 400 million crowns (€35 million). If successful, the debt-to-equity plan allows the carrier to tap government guarantees of up to 2.7 billion Norwegian crowns, which hinge on a reduction in its debt to equity ratio, on top of 300 million crowns it has already received. Norwegian Air is only paying invoices vital to maintaining minimum operations, such as salaries for staff still employed and critical IT infrastructure. It has put payments for ground handling, debt and leases on hold. – Reuters
3 May 15:37 • The Irish Times • https://www.irishtimes.com/business/transport-and-tourism/norwegian-air-gets-bondholder-deal-on-1-09bn-debt-for-equity-swap-1.4244058Rating: 1.99
Norwegian Air gets bondholder deal on $1.2 bln debt-for-equity swap
OSLO — Norwegian Air said on Sunday it had secured support from enough bondholders for a $1.2 billion debt-for-equity swap, a vital step in helping it survive the coronavirus crisis. The budget airline is poised to run out of cash by mid-May without approval for its plan, which involves handing over most of the company to its lessors and bondholders. Airlines around the world have been hit particularly hard by the impact on travel of the coronavirus pandemic, with many forced to turn to governments for state aid to avoid bankruptcy. The next step for Norwegian Air is to secure support from its lessors for its rescue plan, ahead of an extraordinary general meeting on Monday to get approval from shareholders. Bondholders had turned down Norwegian Air’s plan on Friday, but on Sunday the airline said it had now secured a written agreement with the largest bondholders of the NAS07, without naming them, to improve some of the terms. Although holders of three of its four bonds had given sufficient backing on Friday, support among holders of the NAS07 bond had fallen short of the minimum requirement, with only 62% voting in favor, less than the 67% required. “I am pleased to confirm that we have reached an agreement with the bondholders,” CEO Jacob Shram said in a statement, which said that a vote will still need to take place on May 18 to ensure Norwegian Air secures the necessary 67% support. The agreement will provide an improvement of terms for holders of the NAS07 — whose collateral include slots to fly in and out of London’s Gatwick airport — so that the value of their bonds after the conversion may be increased by up to 38%, against 20% earlier, based on valuations of the Gatwick slots. The same terms would apply for holders of another bond, the NAS08, but not for those of the NAS09, Norwegian Air said. Also on Monday, Norwegian is set to decide the timeline for the launch of a share issue, which will end on May 18. The airline has said it plans to raise 400 million crowns. If successful, the debt-to-equity plan allows the carrier to tap government guarantees of up to 2.7 billion Norwegian crowns ($265 million), which hinge on a reduction in its debt to equity ratio, on top of 300 million crowns it has already received. Norwegian Air is only paying invoices vital to maintaining minimum operations, such as salaries for staff still employed and critical IT infrastructure. It has put payments for ground handling, debt and leases on hold. (Reporting by Gwladys Fouche; Editing by Alexander Smith)
3 May 14:04 • Financial Post • https://business.financialpost.com/pmn/business-pmn/norwegian-air-gets-bondholder-deal-on-1-2-bln-debt-for-equity-swapRating: 0.94
App helps farmers connect with consumers during extended COVID-19 lockdown
3 May 10:11
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3 articles
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App helps farmers connect with consumers during extended COVID-19 lockdown
By Pushkar Banakar NEW DELHI: The extension of the lockdown has caused problems of procurement for the Centre and farmers across the country are anxious about their crop. To ease their anxiety and with an aim to help sell their produce directly to the customer, Harvesting Farmer Network (HFN) is connecting over 10000 farmers across the country directly to customers through social media.According to Ruchit Garg, founder of the HFN, the platform has helped farmers from across the country sell over 2 lakh kg of produce in the past 15 days. The social media account of the platform was launched only 18 days ago. “We need to support small farmers right now, more than ever. A platform for small farmers which allows them to effectively market and sell their produce directly to the consumer is the need of the hour,” Garg said and added that given the good response, a website is in the making.ALSO READ: This Jharkhand man is changing face of primary education with innovative ideas Farmers too are happy with the initiative. Ramkelawan Sahu, a banana farmer from Bemetara in Odisha sold a portion of his produce due to the efforts of HFN. “I was having trouble in selling my produce but HFN helped me. Now I have sold at least 40 per cent of it,” he said.HFN puts out the farmers’ numbers on social media and the details of the produce to help nearby people connect with them. Subsequently, the farmer and the consumer directly negotiate the price of the produce.ALSO READ: In Coronavirus times, students turn farmers and help parents on fields HFN does not charge any money for their services. Another beneficiary of the initiative is Ram Prasad, a fig farmer from Karnataka.“This initiative helped me as I was able to even cover the transportation cost of my produce. If the buyer is nearby, we don’t charge as much but for distant buyers we include the transportation charge,” he said. Garg has recently moved back to India from US after 11 years to work in agriculture with small farmers.“Given the problems faced by the farmers during the lockdown, we moved from giving actionable solutions to helping them sell their produce,” Garg said and added that the initiative has found many takers in the south as compared to the north.
3 May 10:11 • The New Indian Express • https://www.newindianexpress.com/thesundaystandard/2020/may/03/app-helps-farmers-connect-with-consumers-during-extended-covid-19-lockdown-2138381.htmlRating: 2.04
Ninjacart to link farmers to end users
With millions of farmers across the country left in the lurch, owing to the lockdown, Ninjacart, a city-based fresh produce supply chain company has launched an initiative called ‘Harvest The Farms’ to help the farmers. Millions of tonnes of vegetables are rotting in the farms unharvested, and through this initiative, farmers who are struggling to find buyers for their produce can now directly sell to the consumers through Ninjacart. ‘Harvest The Farms’ is being launched in partnership with local grocery stores and will be available in Zomato, Swiggy and Dunzo across Bengaluru, Mumbai, Delhi-NCR, Ahmedabad, Chennai and Pune. “During these uncertain times, while we are dealing with supply chain disruption, we cannot overlook the farmer’s plight and let the harvest get wasted. With India’s largest fresh produce supply chain and extensive distribution network in cities, we believe we can leverage our capabilities to help farmers harvest the produce and let customers buy directly - preventing food wastage and reducing losses to farmers,'' said the company. Under this initiative, Ninjacart will identify vegetables that are in excess supply, as well as those that are going unharvested within their farmer networks. They will offer to buy these vegetables from the farmers, to help them recover their investments. These products will then be offered to customers at a lower rate. Some of these produce are tomato, capsicum, cauliflower, cabbage, banana, watermelon and muskmelon among others. Ninjacart is also appealing to the public to let them know if they are aware of any farmers who are struggling to sell their produce. They can write to Ninjacart on care@ninjacart.com or give a missed call to farmer helpline 080-4711-2110 or tag them on Twitter, to reach out to the farmer, and explore avenues to help them.
2 May 17:52 • The Hindu • https://www.thehindu.com/news/national/karnataka/ninjacart-to-link-farmers-to-end-users/article31491708.eceRating: 0.30
SMC selling farm produce at Petron stations
To date, 30 stations have been utilized for the company’s efforts to bring food products closer to communities and provide people a safe, convenient, alternative way to buy essential goods during the quarantine. It is looking to mobilize 60 more stations. It has also started identifying key stations in Metro Manila that would sell farmers’ produce such as fruits and vegetables under the Department of Agriculture’s “Kadiwa ni Ani at Kita” rolling market program. The company is looking to use as many stations to bring more produce to more communities. “Petron’s major stations will become a lifeline for farmers in the province struggling to find a way to sell their fresh farm harvest. With this program, we are able to help them sustain their livelihood in this time of crisis. At the same time, we’re also making available fresh fruits and vegetables to people in Metro Manila to complement the products we offer,” SMC president and chief operatig officer Ramon Ang said. Ang said food accessibility was also an issue the company worked to address early into the 2019 coronavirus disease crisis. “With physical distancing and business restrictions, many Filipinos have had to line up for hours at supermarkets and public markets to get food supplies. While it’s a necessary activity, it also increases the risk to people’s health,” he added. Thirty Petron stations now serve as sites for the SMC Logistics reefer van-cum-rolling stores San Miguel deployed throughout Metro Manila. The food trucks come loaded with frozen poultry products, fresh and processed meats, and ready-to-eat goods. The initiative is an expansion of San Miguel Foods Inc.’s Manukang Bayan rolling store concept. Stations located in Pasig, Paranaque, Quezon City, Caloocan, Taytay, Mandaluyong, Muntinlupa, Marikina, Pasay, Taguig, Manila, Las Pinas, and Makati, are among those that host the reefer van rolling stores. These rolling stores are also now in the Visayas starting with five Petron stations in Bacolod and Negros Occidental. Meanwhile, six Petron Treats convenience stores now serve as pick-up points for products ordered via SMC’s new online ordering system, order.sanmiguelfoods.com. The system further minimizes time spent in queues or outside homes as it lets customers order products under the company’s roster of brands, and later pick them up and pay for them at select Treats stores. Participating branches include Treats Commonwealth, Diego Silang Katipunan, Santolan in Pasig, J. P. Rizal in Marikina, and Litex Road in Quezon City. SMC is looking to add 50 more stations.
2 May 05:23 • Journal Online • https://journal.com.ph/specials/business/smc-selling-farm-produce-petron-stationsRating: 0.30
Commerce Ministry working to identify key sectors for making India a manufacturing hub
3 May 08:47
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3 articles
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Commerce Ministry working to identify key sectors for making India a manufacturing hub
New Delhi: The commerce and industry ministry is working to identify certain key sectors -- like capital goods, leather and chemicals -- with a view to establish India as manufacturing hub, according to sources. Several meetings have taken place with stakeholders, including industry chambers, to identify those sectors which have the potential to become global winners and make India a strong manufacturing hub, the sources said. "There are 12 champion sectors which can be looked upon. These include modular furniture, toys, food processing like ready-to-eat food, agro-chemicals, textiles like man-made fibres, air conditioners, capital goods, pharma and auto components," one of the sources said. Groups and sub-groups have been constituted on the matter by engaging representatives from industry chambers like CII and Assocham. The core group would identify specific implementable policy based on issues like technological capability, employment potential, and global as well as domestic demand, they added. Commerce and Industry Minister Piyush Goyal has recently stated that in the post-COVID era, there is going to a be perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade. He has said that the ministry is working on identifying the specific sectors which can be taken forward in the immediate future for the exports purpose. Promoting manufacturing will help in creating more jobs and pushing India's dwindling exports. Manufacturing sector contributes about 15 per cent in the country's economy and the government is aiming to increase it significantly. The output of eight core infrastructure industries shrank by a record 6.5 per cent in March due to significant dip in production of crude oil, natural gas, fertiliser, steel, cement and electricity amid the coronavirus lockdown. Exports too contracted by a record 34.6 per cent in March on account of the lockdown due to COVID-19 outbreak.
3 May 08:47 • The Economic Times • https://economictimes.indiatimes.com/news/economy/policy/commerce-ministry-working-to-identify-key-sectors-for-making-india-a-manufacturing-hub/articleshow/75516512.cmsRating: 0.30
Govt working to identify key sectors for making India a manufacturing hub
The commerce and industry ministry is working to identify certain key sectors -- like capital goods, leather and chemicals -- with a view to establish India as a manufacturing hub, according to sources. Several meetings have taken place with stakeholders, including industry chambers, to identify those sectors which have the potential to become global winners and make India a strong manufacturing hub, sources said. "There are 12 champion sectors which can be looked upon. These include modular furniture, toys, food processing like ready-to-eat food, agrochemicals, textiles like man-made fibers, air conditioners, capital goods, pharma, and auto components," one of the sources said. Groups and sub-groups have been constituted on the matter by engaging representatives from industry chambers like CII and Assocham. The core group would identify specific implementable policies based on issues like technological capability, employment potential, and global as well as domestic demand, they added. ALSO READ: Biz activities significantly hit; recovery may take over a year: CII survey Commerce and Industry Minister Piyush Goyal has recently stated that in the post-Covid era, there is going to be a perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade. He has said that the ministry is working on identifying the specific sectors which can be taken forward in the immediate future for the purpose of the export. Promoting manufacturing will help in creating more jobs and pushing India's dwindling exports. ALSO READ: NCLTs may not entertain frivolous litigation anymore: IBBI Chair M S Sahoo The manufacturing sector contributes about 15 per cent in the country's economy and the government is aiming to increase it significantly. The output of eight core infrastructure industries shrank by a record 6.5 per cent in March due to significant dip in production of crude oil, natural gas, fertiliser, steel, cement, and electricity amid the coronavirus lockdown. Exports too contracted by a record 34.6 per cent in March on account of the lockdown due to Covid-19 outbreak.
3 May 08:52 • Business-Standard • https://www.business-standard.com/article/economy-policy/govt-working-to-identify-key-sectors-for-making-india-a-manufacturing-hub-120050300413_1.htmlRating: 0.30
Govt working to identify key sectors for making India a manufacturing hub
Commerce and Industry Minister Piyush Goyal has recently stated that in the post-COVID era, there is going to a be a perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade The commerce and industry ministry is working to identify certain key sectors -- like capital goods, leather and chemicals -- to establish India as manufacturing hub, according to sources. Several meetings have taken place with stakeholders, including industry chambers, to identify those sectors which have the potential to become global winners and make India a strong manufacturing hub, the sources said. "There are 12 champion sectors which can be looked upon. These include modular furniture, toys, food processing like ready-to-eat food, agro-chemicals, textiles like man-made fibres, air conditioners, capital goods, pharma and auto components," one of the sources said. Groups and sub-groups have been constituted on the matter by engaging representatives from industry chambers like CII and Assocham. The core group would identify specific implementable policy based on issues like technological capability, employment potential, and global as well as domestic demand, they added. Commerce and Industry Minister Piyush Goyal has recently stated that in the post-COVID era, there is going to a be a perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade. He has said that the ministry is working on identifying the specific sectors which can be taken forward in the immediate future for the export. Promoting manufacturing will help in creating more jobs and pushing India's dwindling exports. The manufacturing sector contributes about 15 per cent in the country's economy and the government is aiming to increase it significantly. The output of eight core infrastructure industries shrank by a record 6.5 per cent in March due to significant dip in production of crude oil, natural gas, fertiliser, steel, cement and electricity amid the coronavirus lockdown. Exports too contracted by a record 34.6 per cent in March on account of the lockdown due to COVID-19 outbreak. Also Read: Coronavirus lockdown: 78% people want ecommerce sites to sell non-essential items too, shows survey Also Read: China mocks US' response to coronavirus in short animation 'Once Upon a Virus' Also Read: Major milestone! India conducts 1 million coronavirus tests
3 May 09:21 • Business Today • https://www.businesstoday.in/current/economy-politics/govt-working-to-identify-key-sectors-for-making-india-a-manufacturing-hub/story/402737.htmlRating: 2.10
Virus impact puts thousands of jobs risk at Rolls-Royce
3 May 17:31
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3 articles
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Virus impact puts thousands of jobs risk at Rolls-Royce
Thousands of jobs could be at risk at British aircraft engine manufacturer Rolls-Royce, which on Sunday said it was in talks with unions about the impact of the coronavirus outbreak on operations. As many as 8,000 jobs could be affected, according to one person familiar with the matter, as the firm grappled with what it said was the "unprecedented" fall-out from the global pandemic. "We have taken swift action to increase our liquidity, dramatically reducing our spending in 2020, and strengthen our resilience in these exceptionally challenging times," a spokesman said. "But we will need to take further action," he added. The company, which has 50,000 staff in 50 countries, including some 24,000 in the UK, is working with employee and union representatives. Further details on job losses would be given to staff before the end of the month, the spokesman said. The global aviation industry has been badly affected by the outbreak, forcing flights to be cancelled because of lack of demand and restrictions on travel. According to the International Air Transport Association trade body, air traffic dropped by more than half in March compared with the same period last year. US aerospace giant Boeing has said it expected to make thousands of job cuts because of the fall in traffic volume, with demand dropping to levels not seen since 2006. Traffic had previously dropped 10.3 percent year-on-year in February. Europe's Airbus last week reported a net first-quarter loss of 481 million euros ($522 million), compared to a profit of 40 million euros in the same period last year. Airbus said in early April it had cut aircraft production by around a third as global airlines scaled back their plans because of the pandemic.
3 May 17:31 • Tech Xplore • https://techxplore.com/news/2020-05-virus-impact-thousands-jobs-rolls-royce.htmlRating: 0.31
Virus impact puts thousands of Rolls-Royce jobs at risk
LONDON, United Kingdom – Thousands of jobs could be at risk at British aircraft engine manufacturer Rolls-Royce, which on Sunday, May 3, said it was in talks with unions about the impact of the coronavirus outbreak on operations. As many as 8,000 jobs could be affected, according to one person familiar with the matter, as the firm grappled with what it said was the "unprecedented" fallout from the pandemic. "We have taken swift action to increase our liquidity, dramatically reducing our spending in 2020, and strengthen our resilience in these exceptionally challenging times," a spokesman said. "But we will need to take further action," he added. The company, which has 50,000 staff in 50 countries, including some 24,000 in the United Kingdom, is working with employee and union representatives. Further details on job losses would be given to staff before the end of the month, the spokesman said. The global aviation industry has been badly affected by the outbreak, forcing flights to be canceled because of lack of demand and restrictions on travel. According to the International Air Transport Association trade body, air traffic dropped by more than half in March compared with the same period last year. United States aerospace giant Boeing has said it expected to make thousands of job cuts because of the fall in traffic volume, with demand dropping to levels not seen since 2006. Traffic had previously dropped 10.3% year-on-year in February. Europe's Airbus last week reported a net 1st quarter loss of 481 million euros ($522 million), compared to a profit of 40 million euros in the same period last year. Airbus said in early April it had cut aircraft production by around a third as global airlines scaled back their plans because of the pandemic. – Rappler.com
3 May 15:35 • Rappler • https://www.rappler.com/business/259804-coronavirus-impact-puts-thousands-rolls-royce-jobs-at-riskRating: 1.64
Virus impact puts thousands of jobs risk at Rolls-Royce
LONDON - Thousands of jobs could be at risk at British aircraft engine manufacturer Rolls-Royce, which on Sunday said it was in talks with unions about the impact of the coronavirus outbreak on operations. As many as 8,000 jobs could be affected, according to one person familiar with the matter, as the firm grappled with what it said was the "unprecedented" fall-out from the global pandemic. "We have taken swift action to increase our liquidity, dramatically reducing our spending in 2020, and strengthen our resilience in these exceptionally challenging times," a spokesman said. "But we will need to take further action," he added. The company, which has 50,000 staff in 50 countries, including some 24,000 in the UK, is working with employee and union representatives. Further details on job losses would be given to staff before the end of the month, the spokesman said. The global aviation industry has been badly affected by the outbreak, forcing flights to be cancelled because of lack of demand and restrictions on travel. According to the International Air Transport Association trade body, air traffic dropped by more than half in March compared with the same period last year. US aerospace giant Boeing has said it expected to make thousands of job cuts because of the fall in traffic volume, with demand dropping to levels not seen since 2006. Traffic had previously dropped 10.3% year-on-year in February. Europe's Airbus last week reported a net first-quarter loss of 481 million euros ($522 million), compared to a profit of 40 million euros in the same period last year. Airbus said in early April it had cut aircraft production by around a third as global airlines scaled back their plans because of the pandemic.
3 May 00:00 • ewn.co.za • https://ewn.co.za/2020/05/03/virus-impact-puts-thousands-of-jobs-risk-at-rolls-royceRating: 1.68
Buffett’s Chance for a Blockbuster Deal Faded When Fed Stepped In
3 May 19:56
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6 articles
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Buffett’s Chance for a Blockbuster Deal Faded When Fed Stepped In
Warren Buffett struck some of his famous deals -- taking lucrative stakes in Goldman Sachs Group Inc. and General Electric Co. -- by swooping in when others panicked during the last financial crisis. He’s treading more carefully this time around. With a record $137 billion of cash piled up at his Berkshire Hathaway Inc., Buffett fielded questions over the weekend from shareholders who wanted to know why he hadn’t acted as companies clamored for liquidity amid the pandemic-related shutdowns. This crisis is different, Buffett said. “We have not done anything because we don’t see anything that attractive to do,” Buffett said at his annual shareholder meeting, which was held by webcast. The deals in 2008 and 2009 weren’t done to make “a statement to the world,” he said. “They seemed intelligent things to do and markets were such that we didn’t really have much competition.” The famous investor’s reputation allowed him to serve as a lender of last resort during the 2008 financial crisis, racking up deals that generated 10% annual dividends from household-name companies. But as panic about the virus and shutdowns assaulted equities in March and even began to freeze debt markets, the Federal Reserve beat him to the punch with an unprecedented set of emergency measures. “There was a period right before the Fed acted, we were starting to get calls,” Buffett said at Saturday’s meeting. “They weren’t attractive calls, but we were getting calls. And the companies we were getting calls from, after the Fed acted, a number of them were able to get money in the public market frankly at terms we wouldn’t have given.” Read more: Buffett Dumps Airlines and His Aerospace Pain Will Only Worsen Buffett’s cautious reaction to the latest crisis drew plenty of attention from investors. While Berkshire bought back $1.7 billion of its shares in the first quarter, it was a net seller of stocks through April as it shed stakes in four major U.S. airlines. The approach seems to put him in the camp of other notable investors who think markets may not have seen the worst of the impact from the pandemic. Buffett said the prospect of buying back Berkshire’s own stock isn’t much more attractive than it was in January, even as the share price dropped. “He received much more demanding questions,” said Tom Russo, who oversees investments including Berkshire shares at Gardner Russo & Gardner LLC. The sale of stakes in Delta Air Lines Inc., Southwest Airlines Co., American Airlines Group Inc. and United Airlines Holdings Inc. continues Buffett’s tumultuous history with the industry. He swore off the sector years ago after a troubled bet on USAir, then in 2016 he dove back in. In March, he told Yahoo Finance that he wouldn’t be selling airline stocks. “Well, he just rejoined Airlines Anonymous,” said Bill Smead, chief investment officer of Smead Capital Management, which owns Berkshire shares. Buffett, Berkshire’s chairman and chief executive officer, gained fame for turning a struggling textile company into a conglomerate now valued at $444 billion. But as Berkshire swelled in size, the billionaire investor struggled to supercharge its growth amid soaring valuations in the recent bull market. That’s weighed on Berkshire’s stock price, as the Class A shares fell 19% this year through Friday, more than the 12% decline in the S&P 500 Index, and have trailed the benchmark’s returns over the past decade. Berkshire shares dropped 3.2% at 9:42 a.m. In the meantime, Berkshire’s companies keep throwing off earnings, building the $137 billion cash pile that’s equal to nearly 31% of Berkshire’s market value. Buffett acknowledged that Berkshire doesn’t need that much on hand, adding that he still aims to keep his company as a “Fort Knox,” stout enough to weather the pandemic. Buffett said he couldn’t promise Berkshire would outperform the S&P over the next decade, but he could vow not to be reckless. Maintaining that discipline is gratifying to longtime investors, said James Armstrong, who manages money, including Berkshire shares, as president of Henry H. Armstrong Associates. “He bears a lot of responsibility and he never has any trouble remembering that Berkshire isn’t his,” Armstrong said. “Despite the criticism in the press and the public eye that he should deploy that cash, he continues to, every day, make his calculation of price to value and say, ‘I either see a good investment or I don’t.”’ Berkshire’s meeting lacked the familiar presence of his longtime business partner, Charlie Munger, as well as the thousands of audience members who normally attend the event in Omaha, Nebraska. Buffett said that Munger, 96, was still in fine health, but it didn’t make sense for him to travel from California or to have another vice chairman, Ajit Jain, come in from the East Coast in this age of social distancing. Buffett, 89, instead was joined by a top deputy who lives just hours from Omaha, Greg Abel. A vice chairman overseeing the non-insurance units, Abel is considered a candidate to take over the CEO job someday. While Buffett still dominated the time, Abel spoke up about incoming calls before the Fed acted and gave investors a taste of his leadership style and his knowledge of Berkshire’s varied operations. Buffett’s businesses haven’t been spared the effects of the shutdowns. The railroad BNSF reported reduced volumes as Covid-19 disrupted commerce, while footwear and apparel businesses were hit with a 34% decline in first-quarter earnings. Munger said earlier this year that some small Berkshire units might not reopen after the pandemic. Buffett clarified the point, saying Berkshire was never willing to prop up a business amid unending losses. “There are businesses that were having problems before and that have even greater problems now,” he said. Buffett remains cautious about the current crisis, saying that the range of economic possibilities was “extraordinarily wide.” Still, he ended the meeting on his classic optimistic note that people should never bet against America. And he left open the possibility that Berkshire’s dealmaking days will return. The panic in markets “changed dramatically when the Fed acted, but who knows what happens next week or next month or next year? The Fed doesn’t know. I don’t know and nobody knows,” Buffett said. “There’s a lot of different scenarios that can play out. And under some scenarios, we’ll spend a lot of money. And under other scenarios, we won’t.” (Updates share price in 12th paragraph.)
3 May 19:56 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/buffett-s-chance-for-a-blockbuster-deal-faded-as-fed-stepped-inRating: 4.04
Warren Buffett says the coronavirus cannot stop America, or Berkshire Hathaway
(This May 2 story has been refiled to correct the spelling of “towel” in second paragraph) By Jonathan Stempel and Megan Davies (Reuters) - Billionaire investor Warren Buffett on Saturday said the United States’ capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments. Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc (BRKa.N), Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the towel on a multi-billion-dollar bet on U.S. airlines. Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska with 1-3/4 hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year’s bear market, even if the pandemic gets a second wind late this year. Illustrating his remarks with dozens of plain black-and-white slides, Buffett called dealing with the pandemic “quite an experiment” that had an “extraordinarily wide” range of possible economic outcomes. But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American “magic” prevailed before and would do again, he said. “Nothing can stop America when you get right down to it,” Buffett said. “I will bet on America the rest of my life.” The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo Finance. Buffett and Vice Chairman Greg Abel, 57, spent nearly 2-1/2 hours answering shareholder questions posed by a reporter. Abel has day-to-day oversight of Berkshire’s non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive. The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp (BAC.N) and Apple Inc (AAPL.O) during the market meltdown. While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19, the illness caused by the novel coronavirus. Buffett said operating earnings will, through at least this year, be “considerably less” than they would have been had the pandemic not occurred. Berkshire’s cash stake ended the quarter at a record $137.3 billion, though Buffett said “we’re willing to do something very big,” perhaps a $30 billion to $50 billion transaction. But it won’t be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its “entire positions” in the four largest: American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N), Southwest Airlines Co (LUV.N) and United Airlines Holdings Inc (UAL.O). Buffett said he “made a mistake” investing in the sector, which the pandemic has changed “in a very major way” with no fault of the airlines, leaving limited upside for investors. “It is basically that we shut off air travel in this country,” he said. The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls “Woodstock for Capitalists.” Abel stood in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions. Buffett said Munger was in “fine shape” and “good health,” and looked forward to attending Berkshire’s 2021 annual meeting. Vice Chairman Ajit Jain, 68, who oversees Berkshire’s insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel lives closer to Omaha than Munger and Jain. Berkshire has said its board of directors knows who would become CEO if Buffett died or became incapacitated. Buffett’s eldest son Howard would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Buffett as chief investment officer. Abel told investors “I don’t see the culture of Berkshire changing” after Buffett and Munger are no longer there. He also said Berkshire was likely to expand its workforce, which totaled 391,539 people at year end, even though some businesses have furloughed employees and cut salaries since the pandemic began, and could start resorting to layoffs. Berkshire wouldn’t be alone. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18% of the workforce, a level not seen since the Great Depression. Abel nonetheless said that in five years, “we see our employment numbers being far greater than they are today.” Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co (AXP.N), to Berkshire’s board, making him the company’s first African American director.
3 May 06:52 • Reuters • https://www.reuters.com/article/us-berkshire-buffett-idUSKBN22E0TRRating: 4.04
Warren Buffett says the coronavirus cannot stop America, or Berkshire Hathaway
Billionaire investor Warren Buffett on Saturday said the United States’ capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments. Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc, Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the towel on a multi-billion-dollar bet on U.S. airlines. Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska with 1-3/4 hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year’s bear market, even if the pandemic gets a second wind late this year. Illustrating his remarks with dozens of plain black-and-white slides, Buffett called dealing with the pandemic “quite an experiment” that had an “extraordinarily wide” range of possible economic outcomes. But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American “magic” prevailed before and would do again, he said. “Nothing can stop America when you get right down to it,” Buffett said. “I will bet on America the rest of my life.” The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo Finance. Buffett and Vice Chairman Greg Abel, 57, spent nearly 2-1/2 hours answering shareholder questions posed by a reporter. Abel has day-to-day oversight of Berkshire’s non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive. BERKSHIRE EXITS AIRLINES The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp and Apple Inc during the market meltdown. While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19, the illness caused by the novel coronavirus. Buffett said operating earnings will, through at least this year, be “considerably less” than they would have been had the pandemic not occurred. Berkshire’s cash stake ended the quarter at a record $137.3 billion, though Buffett said “we’re willing to do something very big,” perhaps a $30 billion to $50 billion transaction. But it won’t be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its “entire positions” in the four largest: American Airlines Group Inc, Delta Air Lines Inc, Southwest Airlines Co and United Airlines Holdings Inc. Buffett said he “made a mistake” investing in the sector, which the pandemic has changed “in a very major way” with no fault of the airlines, leaving limited upside for investors. “It is basically that we shut off air travel in this country,” he said. The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls “Woodstock for Capitalists.” ABEL SHARES THE STAGE Abel stood in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions. Buffett said Munger was in “fine shape” and “good health,” and looked forward to attending Berkshire’s 2021 annual meeting. Vice Chairman Ajit Jain, 68, who oversees Berkshire’s insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel lives closer to Omaha than Munger and Jain. Berkshire has said its board of directors knows who would become CEO if Buffett died or became incapacitated. Buffett’s eldest son Howard would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Buffett as chief investment officer. Abel told investors “I don’t see the culture of Berkshire changing” after Buffett and Munger are no longer there. He also said Berkshire was likely to expand its workforce, which totaled 391,539 people at year end, even though some businesses have furloughed employees and cut salaries since the pandemic began, and could start resorting to layoffs. Berkshire wouldn’t be alone. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18% of the workforce, a level not seen since the Great Depression. Abel nonetheless said that in five years, “we see our employment numbers being far greater than they are today.” Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co , to Berkshire’s board, making him the company’s first African American director. (Reporting by Jonathan Stempel in New York; editing by Megan Davies, Alistair Bell, Cynthia Osterman and Michael Perry)
3 May 06:35 • Financial Post • https://business.financialpost.com/pmn/business-pmn/warren-buffett-says-the-coronavirus-cannot-stop-america-or-berkshire-hathaway-2Rating: 0.94
Coronavirus pandemic can't stop America or Berkshire Hathaway: Warren Buffett
Illustrating his remarks with dozens of plain black-and-white slides, Buffett calls dealing with the pandemic "quite an experiment" that had an "extraordinarily wide" range of possible economic outcomes Billionaire investor Warren Buffett on Saturday said the United States' capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments. Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc (BRKa.N), Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the total on a multi-billion-dollar bet on US airlines. Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska with 1-3/4 hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year's bear market, even if the pandemic gets a second wind late this year. Illustrating his remarks with dozens of plain black-and-white slides, Buffett called dealing with the pandemic "quite an experiment" that had an "extraordinarily wide" range of possible economic outcomes. But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American "magic" prevailed before and would do again, he said. "Nothing can stop America when you get right down to it," Buffett said. "I will bet on America the rest of my life." The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo Finance. Buffett and Vice Chairman Greg Abel, 57, spent nearly 2-1/2 hours answering shareholder questions posed by a reporter. Abel has day-to-day oversight of Berkshire's non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive. Also read: Coronavirus impact: Warren Buffett's Berkshire posts record net loss of $50 billion in March quarter BERKSHIRE EXITS AIRLINES The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp (BAC.N) and Apple Inc (AAPL.O) during the market meltdown. While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19, the illness caused by the novel coronavirus. Buffett said operating earnings will, through at least this year, be "considerably less" than they would have been had the pandemic not occurred. Berkshire's cash stake ended the quarter at a record $137.3 billion, though Buffett said "we're willing to do something very big," perhaps a $30 billion to $50 billion transaction. But it won't be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N), Southwest Airlines Co (LUV.N) and United Airlines Holdings Inc. Buffett said he "made a mistake" investing in the sector, which the pandemic has changed "in a very major way" with no fault of the airlines, leaving limited upside for investors. "It is basically that we shut off air travel in this country," he said. The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls "Woodstock for Capitalists." Abel stood in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions. Buffett said Munger was in "fine shape" and "good health," and looked forward to attending Berkshire's 2021 annual meeting. Vice Chairman Ajit Jain, 68, who oversees Berkshire's insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel lives closer to Omaha than Munger and Jain. Berkshire has said its board of directors knows who would become CEO if Buffett died or became incapacitated. Buffett's eldest son Howard would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Buffett as chief investment officer. Abel told investors "I don't see the culture of Berkshire changing" after Buffett and Munger are no longer there. He also said Berkshire was likely to expand its workforce, which totaled 391,539 people at year end, even though some businesses have furloughed employees and cut salaries since the pandemic began, and could start resorting to layoffs. Berkshire wouldn't be alone. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18% of the workforce, a level not seen since the Great Depression. Abel nonetheless said that in five years, "we see our employment numbers being far greater than they are today." Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co (AXP.N), to Berkshire's board, making him the company's first African American director. Also read: Warren Buffett's Berkshire Hathaway sells entire stakes in 4 largest US airlines
3 May 04:31 • Business Today • https://www.businesstoday.in/current/corporate/coronavirus-pandemic-cant-stop-america-or-berkshire-hathaway-warren-buffett/story/402716.html?utm_source=twitter&utm_medium=WEBRating: 2.10
Warren Buffett says COVID-19 won't stop America, or Berkshire Hathaway
New York | Billionaire investor Warren Buffett says the United States' capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledges the global pandemic could significantly damage the economy and his investments. Over more than four hours at the annual meeting of Berkshire Hathaway on Saturday (Sunday AEST), Mr Buffett said his conglomerate had taken many steps responding to the pandemic, including providing cash to struggling operating units and throwing in the towel on a multibillion-dollar bet on US airlines. He remained keen on making a big acquisition, which he had not done since 2016, but had not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska, with nearly two hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year's bear market, even if the pandemic got a second wind late this year. Mr Buffett called dealing with the pandemic "quite an experiment" that had an "extraordinarily wide" range of possible economic outcomes. But he said Americans had persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American "magic" prevailed before and would do again. "Nothing can stop America when you get right down to it," Mr Buffett said. "I will bet on America the rest of my life." The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo Finance. Mr Buffett and vice-chairman Greg Abel, 57, spent nearly two hours answering shareholder questions posed by a reporter. Mr Abel has day-to-day oversight of Berkshire's non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Mr Buffett as chief executive. The meeting began several hours after Berkshire reported a record $US49.75 billion ($77.41 billion) first-quarter net loss, reflecting huge unrealised losses on common stock holdings such as Bank of America and Apple during the market meltdown. While quarterly operating profit rose 6 per cent, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19. Mr Buffett said operating earnings would, through at least this year, be "considerably less" than they would have been had the pandemic not occurred. Berkshire's cash stake ended the quarter at a record $US137.3 billion, though Mr Buffett said "we're willing to do something very big", perhaps a $US30 billion to $US50 billion transaction. But it will not be in US airlines, after Mr Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group, Delta Air Lines, Southwest Airlines and United Airlines Holdings. He said he "made a mistake" investing in the sector, which the pandemic had changed "in a very major way" with no fault of the airlines, leaving limited upside for investors. "It is basically that we shut off air travel in this country," he said. The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Mr Buffett calls "Woodstock for capitalists". Mr Abel stood in for long-time vice-chairman Charlie Munger, 96, who normally joins Mr Buffett to answer shareholder questions. Mr Buffett said Mr Munger was in "fine shape" and "good health", and looked forward to attending Berkshire's 2021 annual meeting. Vice-chairman Ajit Jain, 68, who oversees Berkshire's insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Mr Abel lives closer to Omaha than Mr Munger and Mr Jain. Berkshire has said its board of directors knows who would become CEO if Mr Buffett died or became incapacitated. Mr Buffett's eldest son, Howard, would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Mr Buffett as chief investment officer. Mr Abel told investors "I don't see the culture of Berkshire changing" after Mr Buffett and Mr Munger were no longer there. He also said Berkshire was likely to expand its workforce, which totalled 391,539 at year end, though some businesses had furloughed employees and cut salaries since the pandemic began and could start resorting to layoffs. Berkshire would not be alone. Nationwide jobless claims have since March 21 totalled about 30.3 million, or 18 per cent of the workforce, a level not seen since the Great Depression. Mr Abel nonetheless said that in five years, "we see our employment numbers being far greater than they are today". Shareholders also elected Kenneth Chenault, a former chief executive of long-time Berkshire holding American Express, to Berkshire's board, making him the company's first African American director. Reuters
3 May 03:11 • Australian Financial Review • https://www.afr.com/markets/equity-markets/warren-buffett-says-covid-19-won-t-stop-america-or-berkshire-hathaway-20200503-p54pcnRating: 1.94
Warren Buffett Says Berkshire Sold Its Entire Position in US Airlines Due to Virus Pandemic
Warren Buffet confirmed during the 2020 Annual Shareholders Meeting on Saturday that his Berkshire Hathaway Inc had sold its entire position in the US airlines due to the novel coronavirus pandemic. Buffet explained that certain businesses, like the airline industry, have been really affected by the COVID-19 induced lockdown and are "far beyond our control". He also said that the conglomerate has not made any investments during the pandemic, unlike the 2008 financial crisis, because they haven't "seen anything that attractive". The billionaire said that the virus is a "huge unknown", so it is unpredictable how the American public will react in case there is a second wave of the epidemic several months from now. Buffett's comments follow the report by his company, which also owns railroad Burlington Northern Santa Fe, insurer Geico and chocolate maker See's Candies, of losing $50 billion in net worth due to the COVID-19 pandemic. Still, Berkshire's operating profits were 6 percent higher than in 2019, reaching $5.87 billion.
3 May 00:27 • Sputniknews • https://sputniknews.com/business/202005031079176891-warren-buffett-says-berkshire-sold-its-entire-position-in-us-airlines-due-to-virus-pandemic/Rating: 3.96
Coronavirus | European leaders push vaccine financing drive
3 May 22:57
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Coronavirus | European leaders push vaccine financing drive
European leaders are backing an initiative from Brussels to raise 7.5 billion euros (£6.6 billion, $8.3 billion) to find a vaccine to curb the global COVID-19 pandemic. The president of the European Commission, Ursula von der Leyen, outlined the fund-raising plan for the scientific fight-back against COVID-19 on Friday. An online pledging conference will take place on Monday to plug gaps in financing of research. Italy’s Prime Minister Giuseppe Conte, French President Emmanuel Macron, and Germany’s Chancellor Angela Merkel gave their support in an open letter published in weekend newspapers. The president of the European Council, Charles Michel, and Norway’s Prime Minister, Erna Solberg, also signed and all gave their backing to the World Health Organization in the face of US criticism about its handling of the crisis. The funds raised will “kickstart an unprecedented global cooperation between scientists and regulators, industry and governments, international organisations, foundations and healthcare professionals”, the leaders said. But they warned that more money would still be needed to manufacture and deliver “available, accessible and affordable” medicines across the world. “If we can develop a vaccine that is produced by the world, for the whole world, this will be a unique global public good of the 21st century,” they added. Britain, Canada, France, Germany, Italy, Japan, Norway, Saudi Arabia and the European Commission, are co-hosting the conference, which is part of a month-long international investment drive before the Global Vaccine Summit on June 4. U.K. Prime Minister Boris Johnson, who spent three nights in intensive care with COVID-19, said finding a treatment was “the most urgent shared endeavour of our lifetimes”. He will confirm Britain’s pledge of £388 million for vaccine research, tests and treatments, which is part of a wider £744 million to the global effort against the virus. “To win this battle, we must work together to build an impregnable shield around all our people, and that can only be achieved by developing and mass producing a vaccine,” he will tell delegates, according to his office. “The more we pull together and share our expertise, the faster our scientists will succeed.” Dozens of research projects are under way around the world to find a vaccine, which the United Nations has said is the only way for a return to normal life. On Thursday, British pharmaceutical giant AstraZeneca announced a partnership with Oxford University for the large-scale manufacture and potential distribution of a vaccine currently on trial.
3 May 22:57 • The Hindu • https://www.thehindu.com/news/international/coronavirus-european-leaders-push-vaccine-financing-drive/article31497360.eceRating: 0.30
European leaders unveil plans to raise $8 billion for Covid-19 treatments and vaccine
The European Union and its partners will host an international pledging conference on May 4 to raise $8 billion to kick-start global cooperation on effective diagnostics, treatments and a vaccine for Covid-19. European Council President Charles Michel, French President Emmanuel Macron, German Chancellor Angela Merkel, European Commission President Ursula von der Leyen, Italian Prime Minister Giuseppe Conte and Norwegian Prime Minister Erna Solberg issued a joint appeal on Sunday for contributions to the Coronavirus global response. Saudi Arabia, the current president of the G20, on Sunday pledged $500 million to support the fundraising efforts and said it will co-lead the global response. “The pledging event aims to raise funds for the immediate need of $8 billion, which the Global Preparedness and Monitoring Board stated is urgently required to develop and deliver a Covid-19 vaccine, along with diagnostics and therapeutic resources,” said a statement from the Saudi government. People familiar with developments said the Indian government is yet to take a call in participating in the drive. The European leaders said in a statement that they intended to raise the initial $8 billion to make up a global funding shortfall estimated by the Global Preparedness and Monitoring Board and others. “The funds that we raise will kick-start an unprecedented global cooperation between scientists and regulators, industry and governments, international organisations, foundations and healthcare professionals,” the statement said. All the funds will be channelled through recognised global health organisations such as CEPI, Gavi, Vaccines Alliance, Global Fund and Unitaid to develop and deploy as “quickly as possible, for as many as possible, the diagnostics, treatments and vaccines that will help the world overcome the pandemic”, it added. The European leaders said they will also support the World Health Organization and join forces with entities such as the Bill and Melinda Gates Foundation and the Wellcome Trust for developing diagnostics and treatment. “While some are cautiously emerging from lockdown, others are still in isolation and see their daily social and economic lives severely restricted. Consequences could be particularly dramatic in Africa and the Global South as a whole,” the statement said. “But what we all have in common is that none of us can really think or plan ahead with any great certainty about what the future of the pandemic really holds,” it said, emphasising the need for joint efforts against the pandemic. The European leaders said they were building on the commitment by G20 leaders to develop a “massive and coordinated response to the virus” and had launched the Access to Covid-19 Tools (ACT) accelerator, a global platform to scale-up research, development, access and equitable distribution of a vaccine and other life-saving therapeutics and diagnostics treatments.
3 May 15:47 • Hindustan Times • https://www.hindustantimes.com/world-news/european-leaders-unveil-plans-to-raise-8-billion-for-covid-19-treatments-and-vaccine/story-0VTm6WVcjF98reWwViZwPO.htmlRating: 0.30
European leaders push vaccine financing drive
LONDON (AFP) -- European leaders are backing an initiative from Brussels to raise 7.5 billion euros ($8.3 billion) to tackle the global coronavirus pandemic.The president of the European Commission, Ursula von der Leyen, outlined the fund-raising plan for an international effort to find a vaccine and treatment for COVID-19 on Friday.An online pledging conference will take place on Monday to plug gaps in financing of research.Italy's Prime Minister Giuseppe Conte, French President Emmanuel Macron, and Germany's Chancellor Angela Merkel gave their support in an open letter published in weekend newspapers.The president of the European Council, Charles Michel, and Norway's Prime Minister, Erna Solberg, also signed and all gave their backing to the World Health Organization in the face of US criticism about its handling of the crisis.The funds raised will "kickstart an unprecedented global cooperation between scientists and regulators, industry and governments, international organisations, foundations and healthcare professionals", the leaders said.But they warned that more money would still be needed to manufacture and deliver "available, accessible and affordable" medicines across the world."If we can develop a vaccine that is produced by the world, for the whole world, this will be a unique global public good of the 21st century," they added. (AFP)
3 May 12:03 • Koreaherald • http://www.koreaherald.com/view.php?ud=20200503000250Rating: 1.56
Deputy finance minister urges Sarb to print money – Report
3 May 18:45
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3 articles
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Deputy finance minister urges Sarb to print money – Report
South Africa’s finance deputy minister was quoted in a leading newspaper on Sunday as urging the central bank to temporarily create money to fund the government response to the Covid-19 pandemic and its economic fallout. In an interview with the Sunday Times, David Masondo called on the government to avert a 1930s-style depression by getting the central bank to buy government bonds directly to fund the country’s deficit during the coronavirus crisis. “Such bonds must be once-off special bonds with earned proceeds, and should be treated as a temporary measure with a clear exit plan,” he was quoted by the paper as saying. “Such money from the Sarb (South African Reserve Bank) must be used for immediate Covid-19 health-related interventions and … economic recovery measures,” he added. A central bank spokeswoman did not immediately respond to a request for comment. President Cyril Ramaphosa last month announced a record R500 billion rescue package equalling 10% of the GDP of Africa’s most industrialised nation, to cushion the economic blow of the coronavirus pandemic. Since then debate has stirred as to how it is to be funded. Ramaphosa has approached the IMF and World Bank, a sensitive issue in a government that has generally been hostile to the so-called Washington consensus. Masondo is a former youth leader of South Africa’s Communist Party, but since Ramaphosa appointed him a year ago he has been a strong advocate of tough economic reforms, including clamping down on excessive government spending. In an unprecedented move in March, the bank central did begin a programme of buying back government bonds from the secondary market to inject liquidity and prevent lending from seizing up. But the idea of the central bank purchasing government debt directly to fund the deficit would most likely cross a red line for Finance Minister Tito Mboweni, a fiscal conservative who believes in central bank independence. The government would also be keen to avoid a situation like neighbour Zimbabwe, whose runaway money-printing to pay its bills triggered massive hyperinflation a decade ago.
3 May 18:45 • Moneyweb • https://www.moneyweb.co.za/news/economy/deputy-finance-minister-urges-sarb-to-print-money-report/Rating: 1.42
S.Africa deputy finance minister urges central bank to print money to fund gov't -report
JOHANNESBURG — South Africa’s finance deputy minister was quoted in a leading newspaper on Sunday as urging the central bank to temporarily create money to fund the government response to the COVID-19 pandemic and its economic fallout. In an interview with the Sunday Times, David Masondo called on the government to avert a 1930s-style depression by getting the central bank to buy government bonds directly to fund the country’s deficit during the coronavirus crisis. “Such bonds must be once-off special bonds with earned proceeds, and should be treated as a temporary measure with a clear exit plan,” he was quoted by the paper as saying. “Such money from the SARB (South African Reserve Bank) must be used for immediate COVID-19 health-related interventions and … economic recovery measures,” he added. A central bank spokeswoman did not immediately respond to a request for comment. President Cyril Ramaphosa last month announced a record 500 billion rand ($26.3 billion) rescue package equalling 10% of the GDP of Africa’s most industrialized nation, to cushion the economic blow of the coronavirus pandemic. Since then debate has stirred as to how it is to be funded. Ramaphosa has approached the IMF and World Bank, a sensitive issue in a government that has generally been hostile to the so-called Washington consensus. Masondo is a former youth leader of South Africa’s Communist Party, but since Ramaphosa appointed him a year ago he has been a strong advocate of tough economic reforms, including clamping down on excessive government spending. In an unprecedented move in March, the bank central did begin a program of buying back government bonds from the secondary market to inject liquidity and prevent lending from seizing up. But the idea of the central bank purchasing government debt directly to fund the deficit would most likely cross a red line for Finance Minister Tito Mboweni, a fiscal conservative who believes in central bank independence. The government would also be keen to avoid a situation like neighbor Zimbabwe, whose runaway money-printing to pay its bills triggered massive hyperinflation a decade ago. (Reporting by Tim Cocks Additional reporting by Alexander Winning Editing by Frances Kerry)
3 May 11:20 • Financial Post • https://business.financialpost.com/pmn/business-pmn/s-africa-deputy-finance-minister-urges-central-bank-to-print-money-to-fund-govt-reportRating: 0.94
South Africa deputy finance minister urges central bank to print money to fund government: report
JOHANNESBURG (Reuters) - South Africa's finance deputy minister was quoted in a leading newspaper on Sunday as urging the central bank to temporarily create money to fund the government response to the COVID-19 pandemic and its economic fallout. In an interview with the Sunday Times, David Masondo called on the government to avert a 1930s-style depression by getting the central bank to buy government bonds directly to fund the country's deficit during the coronavirus crisis. "Such bonds must be once-off special bonds with earned proceeds, and should be treated as a temporary measure with a clear exit plan," he was quoted by the paper as saying. "Such money from the SARB (South African Reserve Bank) must be used for immediate COVID-19 health-related interventions and ... economic recovery measures," he added. A central bank spokeswoman did not immediately respond to a request for comment. President Cyril Ramaphosa last month announced a record 500 billion rand ($26.3 billion) rescue package equalling 10% of the GDP of Africa's most industrialized nation, to cushion the economic blow of the coronavirus pandemic. Since then debate has stirred as to how it is to be funded. Ramaphosa has approached the IMF and World Bank, a sensitive issue in a government that has generally been hostile to the so-called Washington consensus. Masondo is a former youth leader of South Africa's Communist Party, but since Ramaphosa appointed him a year ago he has been a strong advocate of tough economic reforms, including clamping down on excessive government spending. In an unprecedented move in March, the bank central did begin a programme of buying back government bonds from the secondary market to inject liquidity and prevent lending from seizing up. But the idea of the central bank purchasing government debt directly to fund the deficit would most likely cross a red line for Finance Minister Tito Mboweni, a fiscal conservative who believes in central bank independence. The government would also be keen to avoid a situation like neighbour Zimbabwe, whose runaway money-printing to pay its bills triggered massive hyperinflation a decade ago.
3 May 00:00 • Investing.com • https://www.investing.com/news/economy/south-africa-deputy-finance-minister-urges-central-bank-to-print-money-to-fund-government-report-2158947Rating: 0.30
US aviation sector cuts more jobs amid travel meltdown
3 May 06:25
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3 articles
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US aviation sector cuts more jobs amid travel meltdown
WASHINGTON: The ongoing US travel crisis is causing thousands of job cuts as the aviation sector waits for passengers to return to the skies but braces for years of lower demand because of the coronavirus pandemic. US airlines are slashing hundreds of thousands of flights, cutting schedules by 80 per cent or more through at least June and parking thousands of jets as demand for tickets has plunged by about 95 per cent. Airlines are requiring facial coverings and implementing new cleaning procedures to try to convince passengers it is safe to fly again, but also fear the weakened economy may further drag down demand. Late Friday, Spirit AeroSystems said that in response to lower production rates from Boeing and Airbus it would layoff 1,450 workers in Kansas. "This sudden drop in air travel has forced our customers to adjust to lower demand from airlines, many of which are seeking to defer or cancel airplane orders," Spirit AeroSystems chief executive Tom Gentile told employees in an email seen by Reuters. "All indications right now tell us this lower demand for new commercial airplanes is likely to last for several years." On Wednesday, Boeing announced it would cut some production rates and eliminate about 16,000 jobs worldwide, or 10per cent of its workforce by year end. Boeing Chief Executive Dave Calhoun said he expects it will "take two to three years for travel to return to 2019 levels and it will be a few years beyond that for the industry to return to long-term growth trends." The cuts in some areas, such as commercial airplanes, will be more than 15per cent, Boeing said. Delta Air Lines Inc said last week it does not expect air travel to recover for two or three years. More than 37,000 Delta employees have volunteered to take unpaid leave lasting from one month to a year. American Airlines Chief Executive Doug Parker told Reuters in an interview on Thursday that the airline will be "smaller than we intended to be certainly into 2021." Labor union SEIU said Thursday at least 13,000 union members at airports have been laid off and another 1,000 layoffs are planned. The US Treasury has not yet awarded US$3 billion in payroll assistance cash grants approved by Congress for airport contractors such as baggage handlers and airplane caterers. US airlines last month collectively were awarded US$25 billion in Treasury cash grants but as a condition must not fire workers or reduce through Sep 30. Numerous airlines have warned that without a dramatic turnaround in passenger numbers they will be forced to make new significant cuts before year end. JPMorgan Chase said in a research note on Friday that "Oct 1 is likely to emerge as one of the darkest days in history for airline labour" - though it noted that Congress could opt to extend additional assistance. United Airlines is reducing working hours by 25 per cent for 15,000 employees starting May 24, drawing criticism from an employee union and some U.S. lawmakers who contend that the move violates the terms of the US$5 billion payroll assistance United is receiving from the Treasury. "The taxpayers of this country have offered a generous bailout to your company and you should, in turn, honour this trust by keeping the promises you made to those you employ," Republican Senator Josh Hawley wrote United on Friday. United declined to comment on Hawley's letter on Saturday but its chief operations officer Greg Hart told employees in an email on Friday that the reduction in hours does not violate the terms of the government assistance. He said United is "making similar changes for our management personnel" and that those changes will be announced on Monday. Last month, General Electric said it was furloughing 50 per cent of workers in US engine assembly and component manufacturing operations, a move that impacted thousands of employees. That followed the 2,600 US job cuts announced in March by GE's aviation unit, which makes engines for Boeing and Airbus. Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram
3 May 06:25 • CNA • https://www.channelnewsasia.com/news/business/us-aviation-sector-cuts-more-jobs-amid-travel-meltdown-12697438Rating: 3.25
U.S. aviation sector cuts more jobs amid travel meltdown
WASHINGTON — The ongoing U.S. travel crisis is causing thousands of job cuts as the aviation sector waits for passengers to return to the skies but braces for years of lower demand because of the coronavirus pandemic. U.S. airlines are slashing hundreds of thousands of flights, cutting schedules by 80% or more through at least June and parking thousands of jets as demand for tickets has plunged by about 95%. Airlines are requiring facial coverings and implementing new cleaning procedures to try to convince passengers it is safe to fly again, but also fear the weakened economy may further drag down demand. Late Friday, Spirit AeroSystems said that in response to lower production rates from Boeing Co and Airbus SE it would layoff 1,450 workers in Kansas. “This sudden drop in air travel has forced our customers to adjust to lower demand from airlines, many of which are seeking to defer or cancel airplane orders,” Spirit AeroSystems Chief Executive Tom Gentile told employees in an email seen by Reuters. “All indications right now tell us this lower demand for new commercial airplanes is likely to last for several years.” On Wednesday, Boeing Co announced it would cut some production rates and eliminate about 16,000 jobs worldwide, or 10% of its workforce by year end. Boeing Chief Executive Dave Calhoun said he expects it will “take two to three years for travel to return to 2019 levels and it will be a few years beyond that for the industry to return to long-term growth trends.” The cuts in some areas, such as commercial airplanes, will be more than 15%, Boeing said. Delta Air Lines Inc said last week it does not expect air travel to recover for two or three years. More than 37,000 Delta employees have volunteered to take unpaid leave lasting from one month to a year. American Airlines Chief Executive Doug Parker told Reuters in an interview on Thursday that the airline will be “smaller than we intended to be certainly into 2021.” Labor union SEIU said Thursday at least 13,000 union members at airports have been laid off and another 1,000 layoffs are planned. The U.S. Treasury has not yet awarded $3 billion in payroll assistance cash grants approved by Congress for airport contractors such as baggage handlers and airplane caterers. U.S. airlines last month collectively were awarded $25 billion in Treasury cash grants but as a condition must not fire workers or reduce through Sept. 30. Numerous airlines have warned that without a dramatic turnaround in passenger numbers they will be forced to make new significant cuts before year end. JPMorgan Chase said in a research note on Friday that “October 1st is likely to emerge as one of the darkest days in history for airline labor” — though it noted that Congress could opt to extend additional assistance. United Airlines is reducing working hours by 25% for 15,000 employees starting May 24, drawing criticism from an employee union and some U.S. lawmakers who contend that the move violates the terms of the $5 billion payroll assistance United is receiving from the Treasury. “The taxpayers of this country have offered a generous bailout to your company and you should, in turn, honor this trust by keeping the promises you made to those you employ,” Republican Senator Josh Hawley wrote United on Friday. United declined to comment on Hawley’s letter on Saturday but its chief operations officer Greg Hart told employees in an email on Friday that the reduction in hours does not violate the terms of the government assistance. He said United is “making similar changes for our management personnel” and that those changes will be announced on Monday. Last month, General Electric Co said it was furloughing 50% of workers in U.S. engine assembly and component manufacturing operations, a move that impacted thousands of employees. That followed the 2,600 U.S. job cuts announced in March by GE’s aviation unit, which makes engines for Boeing and Airbus. (Reporting by David Shepardson; Additional reporting by Tracy Rucinski; Editing by Daniel Wallis)
2 May 22:18 • Financial Post • https://business.financialpost.com/pmn/business-pmn/u-s-aviation-sector-cuts-more-jobs-amid-travel-meltdownRating: 0.94
U.S. aviation sector cuts more jobs amid travel meltdown
By David Shepardson WASHINGTON (Reuters) - The ongoing U.S. travel crisis is causing thousands of job cuts as the aviation sector waits for passengers to return to the skies but braces for years of lower demand because of the coronavirus pandemic. U.S. airlines are slashing hundreds of thousands of flights, cutting schedules by 80% or more through at least June and parking thousands of jets as demand for tickets has plunged by about 95%. Airlines are requiring facial coverings and implementing new cleaning procedures to try to convince passengers it is safe to fly again, but also fear the weakened economy may further drag down demand. Late Friday, Spirit AeroSystems (N:SPR) said that in response to lower production rates from Boeing Co (N:BA) and Airbus SE (PA:AIR) it would layoff 1,450 workers in Kansas. "This sudden drop in air travel has forced our customers to adjust to lower demand from airlines, many of which are seeking to defer or cancel airplane orders," Spirit AeroSystems Chief Executive Tom Gentile told employees in an email seen by Reuters. "All indications right now tell us this lower demand for new commercial airplanes is likely to last for several years." On Wednesday, Boeing Co (N:BA) announced it would cut some production rates and eliminate about 16,000 jobs worldwide, or 10% of its workforce by year end. Boeing Chief Executive Dave Calhoun said he expects it will "take two to three years for travel to return to 2019 levels and it will be a few years beyond that for the industry to return to long-term growth trends." The cuts in some areas, such as commercial airplanes, will be more than 15%, Boeing said. Delta Air Lines Inc (N:DAL) said last week it does not expect air travel to recover for two or three years. More than 37,000 Delta employees have volunteered to take unpaid leave lasting from one month to a year. American Airlines (O:AAL) Chief Executive Doug Parker told Reuters in an interview on Thursday that the airline will be "smaller than we intended to be certainly into 2021." Labor union SEIU said Thursday at least 13,000 union members at airports have been laid off and another 1,000 layoffs are planned. The U.S. Treasury has not yet awarded $3 billion in payroll assistance cash grants approved by Congress for airport contractors such as baggage handlers and airplane caterers. U.S. airlines last month collectively were awarded $25 billion in Treasury cash grants but as a condition must not fire workers or reduce through Sept. 30. Numerous airlines have warned that without a dramatic turnaround in passenger numbers they will be forced to make new significant cuts before year end. JPMorgan Chase (NYSE:JPM) said in a research note on Friday that "October 1st is likely to emerge as one of the darkest days in history for airline labor" -- though it noted that Congress could opt to extend additional assistance. United Airlines (O:UAL) is reducing working hours by 25% for 15,000 employees starting May 24, drawing criticism from an employee union and some U.S. lawmakers who contend that the move violates the terms of the $5 billion payroll assistance United is receiving from the Treasury. "The taxpayers of this country have offered a generous bailout to your company and you should, in turn, honor this trust by keeping the promises you made to those you employ," Republican Senator Josh Hawley wrote United on Friday. United declined to comment on Hawley's letter on Saturday but its chief operations officer Greg Hart told employees in an email on Friday that the reduction in hours does not violate the terms of the government assistance. He said United is "making similar changes for our management personnel" and that those changes will be announced on Monday. Last month, General Electric Co (N:GE) said it was furloughing 50% of workers in U.S. engine assembly and component manufacturing operations, a move that impacted thousands of employees. That followed the 2,600 U.S. job cuts announced in March by GE's aviation unit, which makes engines for Boeing and Airbus.
2 May 00:00 • Investing.com • https://www.investing.com/news/stock-market-news/us-aviation-sector-cuts-more-jobs-amid-travel-meltdown-2158806Rating: 0.30
Gold bars fight COVID kits for space on the plane
3 May 17:13
•
3 articles
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Gold bars fight COVID kits for space on the plane
Swiss refiner Valcambi SA tried for five straight days last month to move a shipment of gold out of Hong Kong. Twice the metal was packed carefully onto a plane, only to be offloaded again. After daily attempts and numerous arguments, the gold suddenly arrived in Switzerland without warning, said Chief Executive Officer Michael Mesaric. "We had not even asked for a slot." The coronavirus crisis has shone a light on a corner of precious metals markets that usually draws little attention: the logistics of transporting gold, silver and other metals across the world. The business is dominated by companies including Brink's Co., G4S Plc, Loomis AB and Malca-Amit, which link miners and refiners with gold trading and consumption hubs around the world. In normal times, gold bars worth millions of dollars travel the world in the cargo holds of commercial planes, just a few meters from the feet of passengers, before being whisked in armored trucks to refineries and vaults. But the grounding of flights has had a chaotic effect on an industry that's used to relying on instantaneous delivery: prices in key markets have diverged dramatically, and the London gold market has even started talking about allowing delivery in other cities around the world. Now, with global travel at a standstill, the precious metals industry is scrambling for alternative ways to keep the market moving. It's a world of logistical headaches: even when space can be found on a plane, packages are often turned away if essentials like medical supplies need to travel instead. "The limited commercial flights, charters or freighters we are using must prioritize personal protection equipment, medical, food and other essential products over our requirements to move bullion," said Baskaran Narayanan, vice president at Brink's Asia Pacific Ltd. Another big name in the business, Malca-Amit could deliver within 24 hours before the health crisis, said managing director of Malta-Amit Singapore Pte. Ariel Kohelet. Now it's more like 48 to 72 hours, and costs have risen. "We've widened our use of cargo-only aircraft that are not dependent on passengers to fly and we've also chartered aircraft," he said. Some in the market say they're managing to keep operating without delays. However, it's been particularly difficult to get metal in and out of Asia, said Robert Mish, president of precious-metals dealer Mish International Monetary Inc. "Some customers understand it and some don't," said Mish. "Some customers will pay more now, and others will say, 'I understand,' and take delivery in two weeks." It's even getting more expensive to move gold that doesn't typically travel by airplane. German refiner C. Hafner GmbH + Co. KG used to send gold bars to neighboring Poland in security trucks. After road borders closed and its contractor stopped operating, the company has started flying the metal with FedEx Corp., said Torsten Schlindwein, deputy head of precious metals trading. Transportation costs have surged about 60% as a result.
3 May 17:13 • Gulf News • https://gulfnews.com/world/offbeat/gold-bars-fight-covid-kits-for-space-on-the-plane-1.1588526202748Rating: 3.21
Gold bars fight Covid kits for space on the plane
Swiss refiner Valcambi SA tried for five straight days last month to move a shipment of gold out of Hong Kong. Twice the metal was packed carefully onto a plane, only to be offloaded again. After daily attempts and numerous arguments, the gold suddenly arrived in Switzerland without warning, said Chief Executive Officer Michael Mesaric. "We had not even asked for a slot.” The coronavirus crisis has shone a light on a corner of precious metals markets that usually draws little attention: the logistics of transporting gold, silver and other metals across the world. The business is dominated by companies including Brink’s Co., G4S Plc, Loomis AB and Malca-Amit, which link miners and refiners with gold trading and consumption hubs around the world. In normal times, gold bars worth millions of dollars travel the world in the cargo holds of commercial planes, just a few meters from the feet of passengers, before being whisked in armored trucks to refineries and vaults. But the grounding of flights has had a chaotic effect on an industry that’s used to relying on instantaneous delivery: prices in key markets have diverged dramatically, and the London gold market has even started talking about allowing delivery in other cities around the world. Now, with global travel at a standstill, the precious metals industry is scrambling for alternative ways to keep the market moving. It’s a world of logistical headaches: even when space can be found on a plane, packages are often turned away if essentials like medical supplies need to travel instead. "The limited commercial flights, charters or freighters we are using must prioritize personal protection equipment, medical, food and other essential products over our requirements to move bullion,” said Baskaran Narayanan, vice president at Brink’s Asia Pacific Ltd. Another big name in the business, Malca-Amit could deliver within 24 hours before the health crisis, said managing director of Malta-Amit Singapore Pte. Ariel Kohelet. Now it’s more like 48 to 72 hours, and costs have risen. "We’ve widened our use of cargo-only aircraft that are not dependent on passengers to fly and we’ve also chartered aircraft,” he said. Some in the market say they’re managing to keep operating without delays. However, it’s been particularly difficult to get metal in and out of Asia, said Robert Mish, president of precious-metals dealer Mish International Monetary Inc. "Some customers understand it and some don’t,” said Mish. "Some customers will pay more now, and others will say, ‘I understand,’ and take delivery in two weeks.” It’s even getting more expensive to move gold that doesn’t typically travel by airplane. German refiner C. Hafner GmbH + Co. KG used to send gold bars to neighboring Poland in security trucks. After road borders closed and its contractor stopped operating, the company has started flying the metal with FedEx Corp., said Torsten Schlindwein, deputy head of precious metals trading. Transportation costs have surged about 60% as a result. Lockdown regulations and red tape have contributed to the delays, said Peter Thomas, a senior vice president at Chicago-based broker Zaner Group. When he tried to fly some silver out of Peru in early April, authorities initially refused to approve loading documents or allow union workers to load the plane. The metal was eventually moved on private aircraft, he said. "It was expensive but it got done,” he said. "I think that as the virus subsides and as we get rolling again, we’re going to see a lot of product that has been sitting around, especially in smaller refineries, hit the market.” Read MoreIreland unveils 6.5 billion euro coronavirus business package Ireland will allow firms impacted by the coronavirus crisis to warehouse tax liabilities for 12 months, offering a "lifeline" as part of an additional package of business supports that could reach 6.5 billion euros, the government announced on Saturday. Read MoreFrom physical retail to online business: Marketing and logistics principles for supermarkets Supermarkets and retailers around the world began distributing goods via online order channels over a decade ago, often as a future-oriented addition to a minor business segment, complementing standard services.
3 May 10:43 • The Peninsula • https://thepeninsulaqatar.com/article/03/05/2020/Gold-bars-fight-Covid-kits-for-space-on-the-planeRating: 3.14
Gold Bars Fight Covid Kits for Space on the Plane
Swiss refiner Valcambi SA tried for five straight days last month to move a shipment of gold out of Hong Kong. Twice the metal was packed carefully onto a plane, only to be offloaded again. After daily attempts and numerous arguments, the gold suddenly arrived in Switzerland without warning, said Chief Executive Officer Michael Mesaric. “We had not even asked for a slot.” The coronavirus crisis has shone a light on a corner of precious metals markets that usually draws little attention: the logistics of transporting gold, silver and other metals across the world. The business is dominated by companies including Brink’s Co., G4S Plc, Loomis AB and Malca-Amit, which link miners and refiners with gold trading and consumption hubs around the world. In normal times, gold bars worth millions of dollars travel the world in the cargo holds of commercial planes, just a few meters from the feet of passengers, before being whisked in armored trucks to refineries and vaults. But the grounding of flights has had a chaotic effect on an industry that’s used to relying on instantaneous delivery: prices in key markets have diverged dramatically, and the London gold market has even started talking about allowing delivery in other cities around the world. Now, with global travel at a standstill, the precious metals industry is scrambling for alternative ways to keep the market moving. It’s a world of logistical headaches: even when space can be found on a plane, packages are often turned away if essentials like medical supplies need to travel instead. “The limited commercial flights, charters or freighters we are using must prioritize personal protection equipment, medical, food and other essential products over our requirements to move bullion,” said Baskaran Narayanan, vice president at Brink’s Asia Pacific Ltd. Another big name in the business, Malca-Amit could deliver within 24 hours before the health crisis, said managing director of Malta-Amit Singapore Pte. Ariel Kohelet. Now it’s more like 48 to 72 hours, and costs have risen. “We’ve widened our use of cargo-only aircraft that are not dependent on passengers to fly and we’ve also chartered aircraft,” he said. Read more: The Global Airline Shutdown Has a Surprise Victim Some in the market say they’re managing to keep operating without delays. However, it’s been particularly difficult to get metal in and out of Asia, said Robert Mish, president of precious-metals dealer Mish International Monetary Inc. “Some customers understand it and some don’t,” said Mish. “Some customers will pay more now, and others will say, ‘I understand,’ and take delivery in two weeks.” It’s even getting more expensive to move gold that doesn’t typically travel by airplane. German refiner C. Hafner GmbH + Co. KG used to send gold bars to neighboring Poland in security trucks. After road borders closed and its contractor stopped operating, the company has started flying the metal with FedEx Corp., said Torsten Schlindwein, deputy head of precious metals trading. Transportation costs have surged about 60% as a result. Read more: The Gold Market Is Being Tested Like Never Before Lockdown regulations and red tape have contributed to the delays, said Peter Thomas, a senior vice president at Chicago-based broker Zaner Group. When he tried to fly some silver out of Peru in early April, authorities initially refused to approve loading documents or allow union workers to load the plane. The metal was eventually moved on private aircraft, he said. “It was expensive but it got done,” he said. “I think that as the virus subsides and as we get rolling again, we’re going to see a lot of product that has been sitting around, especially in smaller refineries, hit the market.” — With assistance by Jack Farchy
3 May 06:00 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/gold-bars-fight-covid-kits-for-space-on-the-planeRating: 4.04
Warren Buffett: 'American magic' will spur US economic recovery
3 May 05:35
•
8 articles
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Age penalty: 0.18
Best date: 3 May 05:35
Average US: 7.21375
Weighted average US: 12.23333543047581
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Average IN: 2.74375
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Warren Buffett: 'American magic' will spur US economic recovery
WASHINGTON: Billionaire investor Warren Buffet said on Saturday (May 2) he's confident the US economy will bounce back from its pummeling by the coronavirus pandemic because "American magic has always prevailed". The 89-year-old made the sanguine prediction about the world's largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly US$50 billion. Buffett also announced on Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry. "It turns out I was wrong," he said of his acquisitions of 10 per cent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Berkshire Hathaway had paid US$7 billion to US$8 billion, and "we did not take out anything like that", he said. Between the purchases that took place over months, and the sale, "the airlines business I think changed in a very major way" and could no longer meet Berkshire criteria for profitability, he said. Buffett's announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for US$25 billion in relief funds. "AMERICAN MIRACLES, AMERICAN MAGIC" Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback "temporary" but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. "We've faced great problems in the past, haven't faced this exact problem - in fact we haven't really faced anything that quite resembles this problem," Buffett said in a lengthy speech on the country's economic history. "But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again." "We are now a better country, as well as an incredibly more wealthy country, than we were in 1789 ... We got a long ways to go but we moved in the right direction," he said, referencing the abolition of slavery and women's suffrage. "Never bet against America." Buffett is considered one of the savviest investors anywhere. His fortune of US$72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company's annual gathering in Omaha is a high-point of the calendar for investors, a "Woodstock for capitalists". But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway's wide range of investments, and the need for social distancing forced it to hold the annual meeting online. Buffett addressed his shareholders in a livestream flanked only by Gregory Abel, who is in charge of Berkshire's non-insurance operations. His business partner for six decades, 96-year-old Charlie Munger, did not appear. GROWTH BY ONE MEASURE Buffett, in a statement, played down his company's bleak-looking net figure. He said a better measure of the company's performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to US$5.9 billion from US$5.55 billion a year earlier. The brutal drop in the net - to a loss of US$49.75 billion from a profit last year of US$21.7 billion - resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated "Oracle of Omaha". Buffett, famous for his relatively modest lifestyle, turns 90 on Aug 30. In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting "comparative revenue and earnings increases" over the same 2019 period. Many of its companies - including in rail transport, energy production and some manufacturing and service businesses - are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are "necessary actions" and "temporary", it said. Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram
3 May 05:35 • CNA • https://www.channelnewsasia.com/news/business/warren-buffett-us-america-economic-recovery-covid-19-12697404Rating: 3.25
'American magic' will spur US economic recovery: Warren Buffett
WASHINGTON: Billionaire investor Warren Buffet said Saturday he's confident the US economy will bounce back from its pummeling by the coronavirus pandemic because "American magic has always prevailed." The 89-year-old made the sanguine prediction about the world's largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly $50 billion. Buffett also announced Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry. "It turns out I was wrong," he said of his acquisitions of 10 percent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Berkshire Hathaway had paid $7 billion to $8 billion, and "we did not take out anything like that," he said. Between the purchases that took place over months, and the sale, "the airlines business I think changed in a very major way" and could no longer meet Berkshire criteria for profitability, he said. Buffett's announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for $25 billion in relief funds. - 'American miracles, American magic' - Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback "temporary" but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. "We've faced great problems in the past, haven't faced this exact problem -- in fact we haven't really faced anything that quite resembles this problem," Buffett said in a lengthy speech on the country's economic history. "But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again." "We are now a better country, as well as an incredibly more wealthy country, than we were in 1789... We got a long ways to go but we moved in the right direction," he said, referencing the abolition of slavery and women's suffrage. "Never bet against America." Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company's annual gathering in Omaha is a high-point of the calendar for investors, a "Woodstock for capitalists." But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway's wide range of investments, and the need for social distancing forced it to hold the annual meeting online. Buffett addressed his shareholders in a livestream flanked only by Gregory Abel, who is in charge of Berkshire's non-insurance operations. His business partner for six decades, 96-year-old Charlie Munger, did not appear. - Growth by one measure - Buffett, in a statement, played down his company's bleak-looking net figure. He said a better measure of the company's performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier. The brutal drop in the net -- to a loss of $49.75 billion from a profit last year of $21.7 billion -- resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated "Oracle of Omaha." Buffett, famous for his relatively modest lifestyle, turns 90 on August 30. In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting "comparative revenue and earnings increases" over the same 2019 period. Many of its companies -- including in rail transport, energy production and some manufacturing and service businesses -- are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are "necessary actions" and "temporary," it said. bur-vog-acb/bfm
3 May 02:25 • The Economic Times • https://economictimes.indiatimes.com/news/international/business/american-magic-will-spur-us-economic-recovery-warren-buffett/articleshow/75513548.cmsRating: 0.30
Warren Buffett says the coronavirus cannot stop America, or Berkshire Hathaway
(This May 2 story has been refiled to correct the spelling of “towel” in second paragraph) By Jonathan Stempel and Megan Davies (Reuters) - Billionaire investor Warren Buffett on Saturday said the United States’ capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments. Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc (BRKa.N), Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the towel on a multi-billion-dollar bet on U.S. airlines. Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska with 1-3/4 hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year’s bear market, even if the pandemic gets a second wind late this year. Illustrating his remarks with dozens of plain black-and-white slides, Buffett called dealing with the pandemic “quite an experiment” that had an “extraordinarily wide” range of possible economic outcomes. But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American “magic” prevailed before and would do again, he said. “Nothing can stop America when you get right down to it,” Buffett said. “I will bet on America the rest of my life.” The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo Finance. Buffett and Vice Chairman Greg Abel, 57, spent nearly 2-1/2 hours answering shareholder questions posed by a reporter. Abel has day-to-day oversight of Berkshire’s non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive. The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp (BAC.N) and Apple Inc (AAPL.O) during the market meltdown. While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19, the illness caused by the novel coronavirus. Buffett said operating earnings will, through at least this year, be “considerably less” than they would have been had the pandemic not occurred. Berkshire’s cash stake ended the quarter at a record $137.3 billion, though Buffett said “we’re willing to do something very big,” perhaps a $30 billion to $50 billion transaction. But it won’t be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its “entire positions” in the four largest: American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N), Southwest Airlines Co (LUV.N) and United Airlines Holdings Inc (UAL.O). Buffett said he “made a mistake” investing in the sector, which the pandemic has changed “in a very major way” with no fault of the airlines, leaving limited upside for investors. “It is basically that we shut off air travel in this country,” he said. The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls “Woodstock for Capitalists.” Abel stood in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions. Buffett said Munger was in “fine shape” and “good health,” and looked forward to attending Berkshire’s 2021 annual meeting. Vice Chairman Ajit Jain, 68, who oversees Berkshire’s insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel lives closer to Omaha than Munger and Jain. Berkshire has said its board of directors knows who would become CEO if Buffett died or became incapacitated. Buffett’s eldest son Howard would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Buffett as chief investment officer. Abel told investors “I don’t see the culture of Berkshire changing” after Buffett and Munger are no longer there. He also said Berkshire was likely to expand its workforce, which totaled 391,539 people at year end, even though some businesses have furloughed employees and cut salaries since the pandemic began, and could start resorting to layoffs. Berkshire wouldn’t be alone. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18% of the workforce, a level not seen since the Great Depression. Abel nonetheless said that in five years, “we see our employment numbers being far greater than they are today.” Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co (AXP.N), to Berkshire’s board, making him the company’s first African American director.
3 May 06:52 • Reuters • https://www.reuters.com/article/us-berkshire-buffett-idUSKBN22E0TRRating: 4.04
Warren Buffett: ‘American magic’ will spur US economic recovery
Washington, United States | AFP | Billionaire investor Warren Buffet said Saturday he’s confident the US economy will bounce back from its pummeling by the coronavirus pandemic because “American magic has always prevailed.” The 89-year-old made the sanguine prediction about the world’s largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly $50 billion. Buffett also announced Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry. “It turns out I was wrong,” he said of his acquisitions of 10 percent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Berkshire Hathaway had paid $7 billion to $8 billion, and “we did not take out anything like that,” he said. Between the purchases that took place over months, and the sale, “the airlines business I think changed in a very major way” and could no longer meet Berkshire criteria for profitability, he said. Buffett’s announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for $25 billion in relief funds. – ‘American miracles, American magic’ – Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback “temporary” but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. “We’ve faced great problems in the past, haven’t faced this exact problem — in fact we haven’t really faced anything that quite resembles this problem,” Buffett said in a lengthy speech on the country’s economic history. “But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again.” “We are now a better country, as well as an incredibly more wealthy country, than we were in 1789… We got a long ways to go but we moved in the right direction,” he said, referencing the abolition of slavery and women’s suffrage. “Never bet against America.” Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company’s annual gathering in Omaha is a high-point of the calendar for investors, a “Woodstock for capitalists.” But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway’s wide range of investments, and the need for social distancing forced it to hold the annual meeting online. Buffett addressed his shareholders in a livestream flanked only by Gregory Abel, who is in charge of Berkshire’s non-insurance operations. His business partner for six decades, 96-year-old Charlie Munger, did not appear. – Growth by one measure – Buffett, in a statement, played down his company’s bleak-looking net figure. He said a better measure of the company’s performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier. The brutal drop in the net — to a loss of $49.75 billion from a profit last year of $21.7 billion — resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated “Oracle of Omaha.” Buffett, famous for his relatively modest lifestyle, turns 90 on August 30. In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting “comparative revenue and earnings increases” over the same 2019 period. Many of its companies — including in rail transport, energy production and some manufacturing and service businesses — are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are “necessary actions” and “temporary,” it said. Share on: WhatsApp
3 May 05:00 • The Independent Uganda: • https://www.independent.co.ug/warren-buffett-american-magic-will-spur-us-economic-recovery/Rating: 0.30
Warren Buffett: 'American magic' will spur U.S. economic recovery
WASHINGTON, USA – Billionaire investor Warren Buffett said on Saturday, May 2, he's confident the United States economy will bounce back from its pummeling by the coronavirus pandemic because "American magic has always prevailed." The 89-year-old made the sanguine prediction about the world's largest economy as his holding company Berkshire Hathaway reported 1st quarter net losses of nearly $50 billion. Buffett also announced on Saturday that his company had sold all its stakes in 4 major US airlines last month, as the pandemic clobbered the travel industry. "It turns out I was wrong," he said of his acquisitions of 10% stakes in American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines. Berkshire Hathaway had paid $7 billion to $8 billion, and "we did not take out anything like that," he said. Between the purchases that took place over months, and the sale, "the airlines business I think changed in a very major way" and could no longer meet Berkshire criteria for profitability, he said. Buffett's announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for $25 billion in relief funds. 'American miracles, American magic' Berkshire Hathaway, based in Omaha, Nebraska, called its 1st quarter setback "temporary" but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. "We've faced great problems in the past, haven't faced this exact problem – in fact we haven't really faced anything that quite resembles this problem," Buffett said in a lengthy speech on the country's economic history. "But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again." "We are now a better country, as well as an incredibly more wealthy country, than we were in 1789.... We got a long ways to go but we moved in the right direction," he said, referencing the abolition of slavery and women's suffrage. "Never bet against America." Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the 4th largest in the world, according to Forbes, and in normal years, the company's annual gathering in Omaha is a high-point of the calendar for investors, a "Woodstock for capitalists." But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway's wide range of investments, and the need for physical distancing forced it to hold the annual meeting online. Buffett addressed his shareholders in a livestream flanked only by Gregory Abel, who is in charge of Berkshire's non-insurance operations. His business partner for 6 decades, 96-year-old Charlie Munger, did not appear. Growth by one measure Buffett, in a statement, played down his company's bleak-looking net figure. He said a better measure of the company's performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier. The brutal drop in the net – to a loss of $49.75 billion from a profit last year of $21.7 billion – resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated "Oracle of Omaha." Buffett, famous for his relatively modest lifestyle, turns 90 on August 30. In documents filed on Saturday, Berkshire noted that until mid-March many of its companies were posting "comparative revenue and earnings increases" over the same 2019 period. Many of its companies – including in rail transport, energy production, and some manufacturing and service businesses – are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are "necessary actions" and "temporary," it said. – Rappler.com
3 May 01:30 • Rappler • https://www.rappler.com/business/259806-warren-buffett-berkshire-hathaway-earnings-report-q1-2020Rating: 1.64
Warren Buffett: ‘American magic’ will spur US economic recovery
Warren Buffett, CEO of Berkshire Hathaway, arrives at the May 2019 shareholder meeting in Omaha, Nebraska. AFP/File/Johannes EISELE The 89-year-old made the sanguine prediction about the world’s largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly $50 billion. Buffett also announced Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry. “It turns out I was wrong,” he said of his acquisitions of 10 percent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Berkshire Hathaway had paid $7 billion to $8 billion, and “we did not take out anything like that,” he said. Between the purchases that took place over months, and the sale, “the airlines business I think changed in a very major way” and could no longer meet Berkshire criteria for profitability, he said. Buffett’s announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for $25 billion in relief funds. ‘American miracles, American magic’ Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback “temporary” but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. “We’ve faced great problems in the past, haven’t faced this exact problem — in fact we haven’t really faced anything that quite resembles this problem,” Buffett said in a lengthy speech on the country’s economic history. “But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again.” “We are now a better country, as well as an incredibly more wealthy country, than we were in 1789… We got a long ways to go but we moved in the right direction,” he said, referencing the abolition of slavery and women’s suffrage. “Never bet against America.” Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company’s annual gathering in Omaha is a high-point of the calendar for investors, a “Woodstock for capitalists.” But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway’s wide range of investments, and the need for social distancing forced it to hold the annual meeting online. Buffett addressed his shareholders in a livestream flanked only by Gregory Abel, who is in charge of Berkshire’s non-insurance operations. His business partner for six decades, 96-year-old Charlie Munger, did not appear. Growth by one measure Buffett, in a statement, played down his company’s bleak-looking net figure. He said a better measure of the company’s performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier. The brutal drop in the net — to a loss of $49.75 billion from a profit last year of $21.7 billion — resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated “Oracle of Omaha.” Buffett, famous for his relatively modest lifestyle, turns 90 on August 30. In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting “comparative revenue and earnings increases” over the same 2019 period. Many of its companies — including in rail transport, energy production and some manufacturing and service businesses — are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are “necessary actions” and “temporary,” it said.
3 May 08:39 • The Citizen • https://citizen.co.za/news/news-world/2278007/warren-buffett-american-magic-will-spur-us-economic-recovery/Rating: 1.26
Coronavirus cannot stop America or Berkshire Hathaway, says Warren Buffett
Billionaire investor Warren Buffett on Saturday said the United States' capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments. Over more than four and half hours at the annual meeting of Berkshire Hathaway Inc, Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the total on a multi-billion-dollar bet on US airlines, the Reuters reported. Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska with 1 hour 45 minutes of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year's bear market, even if the pandemic gets a second wind late this year. Illustrating his remarks with dozens of plain black-and-white slides, Buffett called dealing with the pandemic "quite an experiment" that had an "extraordinarily wide" range of possible economic outcomes. ALSO READ: Buffet's Berkshire Hathaway posts $50 bn loss in coronavirus impact But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American "magic" prevailed before and would do again, he said. "Nothing can stop America when you get right down to it," Buffett said. "I will bet on America the rest of my life." The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo Finance. Buffett and Vice Chairman Greg Abel, 57, spent nearly 2 and half hours answering shareholder questions posed by a reporter. Abel has day-to-day oversight of Berkshire's non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive. BERKSHIRE EXITS AIRLINES The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp and Apple Inc during the market meltdown. While quarterly operating profit rose 6 per cent, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of Covid-19, the illness caused by the novel coronavirus. Buffett said operating earnings will, through at least this year, be "considerably less" than they would have been had the pandemic not occurred. Berkshire's cash stake ended the quarter at a record $137.3 billion, though Buffett said "we're willing to do something very big," perhaps a $30 billion to $50 billion transaction. But it won't be in US airlines, after Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group Inc, Delta Air Lines Inc, Southwest Airlines Co and United Airlines Holdings Inc. Buffett said he "made a mistake" investing in the sector, which the pandemic has changed "in a very major way" with no fault of the airlines, leaving limited upside for investors. "It is basically that we shut off air travel in this country," he said. The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls "Woodstock for Capitalists."Abel shares the stage Abel stood in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions. Buffett said Munger was in "fine shape" and "good health," and looked forward to attending Berkshire's 2021 annual meeting. Vice Chairman Ajit Jain, 68, who oversees Berkshire's insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel lives closer to Omaha than Munger and Jain. ALSO READ: US GDP shrinks 4.8 per cent in first quarter as pandemic decimates economy Berkshire has said its board of directors knows who would become CEO if Buffett died or became incapacitated. Buffett's eldest son Howard would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Buffett as chief investment officer. Abel told investors "I don't see the culture of Berkshire changing" after Buffett and Munger are no longer there. He also said Berkshire was likely to expand its workforce, which totaled 391,539 people at year end, even though some businesses have furloughed employees and cut salaries since the pandemic began, and could start resorting to layoffs. Berkshire wouldn't be alone. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18 per cent of the workforce, a level not seen since the Great Depression. Abel nonetheless said that in five years, "we see our employment numbers being far greater than they are today." Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co, to Berkshire's board, making him the company's first African American director.
3 May 04:58 • Business-Standard • https://www.business-standard.com/article/international/coronavirus-cannot-stop-america-or-berkshire-hathaway-says-warren-buffett-120050300188_1.htmlRating: 0.30
Warren Buffett says the coronavirus cannot stop America, or Berkshire Hathaway
Billionaire investor Warren Buffett on Saturday said the United States’ capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments. Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc, Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the total on a multi-billion-dollar bet on U.S. airlines. Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska with 1-3/4 hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year’s bear market, even if the pandemic gets a second wind late this year. Illustrating his remarks with dozens of plain black-and-white slides, Buffett called dealing with the pandemic “quite an experiment” that had an “extraordinarily wide” range of possible economic outcomes. But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American “magic” prevailed before and would do again, he said. “Nothing can stop America when you get right down to it,” Buffett said. “I will bet on America the rest of my life.” The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo Finance. Buffett and Vice Chairman Greg Abel, 57, spent nearly 2-1/2 hours answering shareholder questions posed by a reporter. Abel has day-to-day oversight of Berkshire’s non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive. BERKSHIRE EXITS AIRLINES The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp and Apple Inc during the market meltdown. While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19, the illness caused by the novel coronavirus. Buffett said operating earnings will, through at least this year, be “considerably less” than they would have been had the pandemic not occurred. Berkshire’s cash stake ended the quarter at a record $137.3 billion, though Buffett said “we’re willing to do something very big,” perhaps a $30 billion to $50 billion transaction. But it won’t be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its “entire positions” in the four largest: American Airlines Group Inc, Delta Air Lines Inc, Southwest Airlines Co and United Airlines Holdings Inc. Buffett said he “made a mistake” investing in the sector, which the pandemic has changed “in a very major way” with no fault of the airlines, leaving limited upside for investors. “It is basically that we shut off air travel in this country,” he said. The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls “Woodstock for Capitalists.” ABEL SHARES THE STAGE Abel stood in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions. Buffett said Munger was in “fine shape” and “good health,” and looked forward to attending Berkshire’s 2021 annual meeting. Vice Chairman Ajit Jain, 68, who oversees Berkshire’s insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel lives closer to Omaha than Munger and Jain. Berkshire has said its board of directors knows who would become CEO if Buffett died or became incapacitated. Buffett’s eldest son Howard would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Buffett as chief investment officer. Abel told investors “I don’t see the culture of Berkshire changing” after Buffett and Munger are no longer there. He also said Berkshire was likely to expand its workforce, which totaled 391,539 people at year end, even though some businesses have furloughed employees and cut salaries since the pandemic began, and could start resorting to layoffs. Berkshire wouldn’t be alone. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18% of the workforce, a level not seen since the Great Depression. Abel nonetheless said that in five years, “we see our employment numbers being far greater than they are today.” Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co , to Berkshire’s board, making him the company’s first African American director. (Reporting by Jonathan Stempel in New York; editing by Megan Davies, Alistair Bell, Cynthia Osterman and Michael Perry)
3 May 02:20 • Financial Post • https://business.financialpost.com/pmn/business-pmn/warren-buffett-says-the-coronavirus-cannot-stop-america-or-berkshire-hathawayRating: 0.94
The Observer view on Britain's relationship with Saudi Arabia
3 May 05:00
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3 articles
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The Observer view on Britain's relationship with Saudi Arabia
Dramatic falls in global oil prices are the result, primarily, of collapsing demand due to the coronavirus pandemic. Other factors predating the crisis are also at work: this year’s price-cutting war between Saudi Arabia and Russia, overproduction resulting in crude oil surpluses and a chronic lack of storage capacity. Yet conventional market explanations obscure a bigger, more exciting story. It is the story of the green, clean energy revolution, of rapidly expanding use of wind and solar power and the prospective end of the fossil fuel era. Renewables will make up almost 30% of world demand for electricity this year. Last week, Britain set a record by going 18 consecutive days without resorting to coal-fired power generation, according to National Grid data. The UK also hit a new solar power high on 20 April. Since 2012, the amount of emissions required to produce one kilowatt hour of energy has declined by more than two-thirds. These advances towards a net-zero carbon future are artificially accelerated by the Covid-19 lockdown. They could be reversed. Yet sustainable energy generation, and its crucial importance in tackling the climate crisis, is one of many areas where today’s enforced changes could lead to fundamental, permanent shifts in the “post-oil” future. Britain’s dysfunctional and often embarrassing relationship with Saudi Arabia, one of the world’s leading oil producers, should form part of any such post-pandemic reappraisal. British dependence on Saudi crude increased after Iran’s 1979 revolution. North Sea discoveries changed that. Most imported UK oil now comes from Norway. Only 3% comes from Saudi Arabia. Successive governments have nevertheless continued to nurture the Saudi relationship. A main reason is Riyadh’s apparently insatiable appetite for weaponry. According to analysis by the Campaign Against Arms Trade, BAE Systems sold £15bn worth of arms and services to Saudi Arabia between 2015 to 2019. Thousands of British jobs are said to be contingent on such sales. Much of this weaponry has been used in the Saudi-led campaign in Yemen, which entered its sixth murderous year in March. The UN says the war has helped cause the world’s worst humanitarian crisis. In June last year, to the government’s disgust, the court of appeal halted UK arms sales, citing concerns about a “historic pattern of breaches of international humanitarian law”. If oil and arms are taken out of the equation, what remains to bind Britain to an undemocratic, quasi-feudal regime notorious for its human rights abuses, repression of its Shia Muslim minority, institutionalised discrimination against women and dangerous efforts to draw Britain and the US into confrontation with its arch rival, Iran? One often-heard justification for turning a blind eye is that the Saudis offer invaluable intelligence in the fight against fanatical Islamist groups such as Islamic State and al-Qaida. It is certainly in Britain’s interest that the Saudis continue to cooperate with western counter-terrorism efforts. But it’s a two-way street. The Saudi regime lacks legitimacy. It faces a region-wide challenge from Iran and threats of its own from Sunni extremists. It appears unable, despite superficial reforms, to satisfy a youthful population’s aspirations for a more open society. Terrorism, feeding off instability and injustice, is a big problem for Riyadh, too. High levels of Saudi investment in British businesses and property are also given as an excuse for maintaining the status quo. But if nothing else does, the brutal 2018 murder of the journalist Jamal Khashoggi, allegedly on the orders of the Saudi crown prince, Mohammed bin Salman, should shatter such complacency. Right now, for example, the Premier League should heed Khashoggi’s fiancee, Hatice Cengiz, and block the proposed purchase of Newcastle United by a Saudi fund controlled by Salman. And once the Covid crisis is past, the government should launch a full-spectrum review of bilateral relations. Collapsing demand for their key export means the Saudis are not the power they were. The oil sheikhs are out of pocket and out of time.
3 May 05:00 • the Guardian • https://www.theguardian.com/commentisfree/2020/may/03/the-observer-view-on-britains-relationship-with-saudi-arabia-Rating: 5.39
World energy agency sees renewables making big gains as COVID-19 fades
Lockdown measures taken to stop the new coronavirus have caused a ‘staggering’ drop in energy demand, with renewables being the most resilient as demand for clean power increases, according to the world’s energy watchdog. Roughly one-third of the world’s population in some form of lockdown to stop the spread of COVID-19, a report from the International Energy Agency showed. There is expected to be a 6 per cent decline in energy demand over the next year, making it the biggest drop since World War II. The IEA said the drop would trigger multi-decade lows for the world’s consumption of traditional power, such as oil, gas and coal while renewable continued to grow. “This is a historic shock to the entire energy world,” said IEA executive director Fatih Birol. “It is still too early to determine the longer-term impacts, but the energy industry that emerges from this crisis will be significantly different from the one that came before.” The coronavirus has caused a ‘major shift’ to low-carbon sources of power, such as wind and solar, says the report, which is based on data from the first 100 days of the year and includes new forecasts for 2020. It stressed coal and natural gas “are finding themselves increasingly squeezed between low overall power demand and increasing output from renewables.” Renewable energy is expected to grow by 5 per cent this year, to make up almost 30 per cent of the world’s declining demand for electricity. Energy-related carbon emissions are set to fall to their lowest level since 2010 and will see the largest annual decrease on record if the full predictions play out. For the world to limit global warming to 1.5 degrees Celsius, global emissions must fall by 7.6 per cent annually through to 2030. Australia National University professor and climate councillor Will Steffen said the report showed we are in for an ‘unprecedented’ dip. “We had a decline after the GFC but, as this report points out, the projected fall in 2020 is 6 per cent, which is seven times that decline,” he told The New Daily. Professor Steffen stressed that this amount alone will not have an perceptible impact on the changing climate, but that Australia was well positioned to pivot towards renewables. “The critical question is what we do next,” he said. The coronavirus pandemic gives Australia a good chance to “move more rapidly when we come out of the crisis and ramp up economies with renewables”, Professor Steffen said. “There are growing markets for renewables in Asia.” However, the government has hinted that they “want to ramp up gas and coal”, in which case “a sharp rebound of emissions would happen”. “That’s the heart of the issue, which direction we go in, in terms of economic recovery,” Professor Steffen said. But the report comes as Greek-based renewable energy developer Ellaktor announced it would pull out of the Australia’s solar market after posting huge loses, mostly from its Australian portfolio. Ellaktor follows a growing list of companies leaving the Australian solar market, as lengthy delays, cost overruns, and general slow down of construction, which is largely due to lack of federal direction and connection issues, threaten to strangle the market. Despite this, Tristan Edis, technology analyst at Green Energy Markets, said Australia is well-positioned to pivot towards renewables. “The issue is, typically, governments are looking to try and jump-start the economy after a downturn, so they’re looking at ‘how do you get money into peoples pockets’,” Mr Edis said. “Most of that money will flow off to China and you keep someone employed for a short period of time in Harvey Norman. He said there were enough projects that were ready to start tomorrow to power the whole of Australia that should be part of our national stimulus package coming out of COVID-19. “We’ve got this huge pipeline with projects that already have planning approval, in solar and wind,” he said. “And in many cases, they can start work very quickly. So they usually only take 12 to 24 months to build them. “That’s the entire generating capital of the national market. It’s a huge amount of projects. You’ve got this huge pipeline full that’s ready.”
2 May 20:00 • The New Daily • https://thenewdaily.com.au/life/science/environment/2020/05/02/coronavirus-carbon-emissions/Rating: 0.78
Royal Dutch Shell And The Oil Majors: Buyers Beware
Summary Energy is Transitioning to Renewables The global economy is transforming away from carbon fuel sources. In this period of transition, it is often easier to identify the losers than the beneficiaries. From a big picture perspective, the following points are pertinent: 1) The US shale algorithm is broken – whilst the United States is currently the largest oil producer in the world, production may have peaked. Moreover, there is intense pressure on banks against funding energy producers. Winning back shareholders is going to be highly challenging given the historical prioritisation of growth over return on capital by management teams. The capital structures of many incumbent shale operators are heavily loaded with debt. Given the US high yield energy index is back to 2008 and 2016 levels, it suggests the cost of capital may remain elevated for quite some time. Whilst the government may provide short-term support, capital markets are effectively closed for the shale players. 2) Pressure on the oil and gas sector has been intensified by institutional investors pursuing an ESG agenda and thereby shunning carbon emitters. This is a broad-based movement, particularly vibrant in Europe, and is not reversing. A win by the Democrats could mark the next leg down in the sector by heralding the introduction of a carbon tax. 3) Given the inherent safety issues and lack of scale potential with nuclear energy, the future lies in a transition to renewable energy. 4) Electricity is gaining market share as it is more flexible and links to the electric auto revolution. Russia, Saudi Arabia and a couple of African countries are the last sole users of oil for power production. Why this Cycle may be Different Given it could take 24 months for energy demand to recover, E&P operators are responding aggressively. We have seen a flurry of capex cuts in 2020, with global spend expected to fall by 17%, according to Rystad Energy. Spend is likely to contract more heavily in the United States. As inventories mount, the least fit producers will engage in capital restructuring, which will likely involve some filing for Chapter 11. As such, we may see a fast rebalancing since the shale sector is under such intense pressure. Whilst this may appear to bode positively for the sector, I do not expect Shell (NYSE:RDS.A) (NYSE:RDS.B) or the other majors to generate considerable free cash flow for shareholders. Instead, I believe Shell’s management team is going to spend heavily on renewables. Whilst some may think we could see an oil and gas mega-merger wave, I believe they may be disappointed at least in the short/medium term. Listening to energy majors' earnings calls over the last couple of weeks suggest management teams are prioritising the deployment of capital in the renewable energy sector. Where we could see the direction of travel for M&A is towards acquiring utilities or renewable power producers. In 2018, Total (NYSE:TOT) acquired Direct Energie, a French electric utility. This followed their 2016 acquisition of Saft, a battery maker for $1.1bn. The company plans to start producing EV batteries by 2023. Shell’s Dividend Cut is Instructive When Shell announced a cut in its dividend on 30 April for the for the first time since World War II, what was most striking was the severity of the reduction – a 70% cut which caught investors off guard and illustrates the existential crisis unfolding within board rooms. I believe the move underscores the transition to a new era. The prevailing yield is now 3.5% and could mark a major step towards re-positioning the business towards a renewable-focused business. Those expecting the dividend to be hiked if oil markets recover may be left disappointed. Instead, management could be on the hunt to acquire a utility or invest directly in renewable projects. The Good News The good news is that renewables are increasingly becoming the lowest cost mechanism of providing energy and households are beginning to embrace the transition to electrification of transport and reduction in plastics, which also affects oil demand. According to Renewable Energy World, renewable power accounted for 18.5% of US electrical generation in the first 8 months of 2019. By 2060, this could flip-flop with renewables accounting for around 80% of power generation. Even airlines are becoming more environmentally friendly. The French finance minister recently signalled their intent to save Air France but on the condition the airline becomes the most environmentally friendly airline in the world. The Bad News The bad news for the oil majors is they are relatively late to the party. Existing renewable players such as Vestas (OTCPK:VWDRY) (OTCPK:VWSYF), NextEra (NYSE:NEE), and Canadian Solar (NASDAQ:CSIQ) have already gained a significant footprint and offer investors a pure-play exposure to renewables. As the big oil majors enter the renewable space, returns on capital are likely to disappoint given strong competition for capital from new and incumbent operators. Concluding Remarks We are at the beginning of a 20-30 year growth theme in which transportation infrastructure transitions towards electro mobility. As wind/solar penetration increases and hydrocarbon usage declines, renewable specialists such as Vestas or NextEra are ideally positioned in to benefit. Whilst there is the potential for some projects to be delayed from 2020 to 2021 due to the social distancing measures enforced by governments worldwide, this is a minor blip versus the bigger picture. With traditional and gas majors pivoting to join the renewable energy revolution, I expect returns on capital to be unexciting and far lower than those enjoyed during the heyday of the fossil fuel era. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
2 May 17:09 • Seeking Alpha • https://seekingalpha.com/article/4342337-royal-dutch-shell-and-oil-majors-buyers-beware?source=feed_all_articlesRating: 0.30
Aviation Turbine Fuel Price Cut By 23 Per Cent; Now Costs One-Third Of Petrol, Diesel Rates
3 May 14:26
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Aviation Turbine Fuel Price Cut By 23 Per Cent; Now Costs One-Third Of Petrol, Diesel Rates
In a major boost for the Indian aviation industry which has been battered by the disruption introduced by COVID-19 pandemic globally, the aviation turbine fuel (ATF) charges in India have been cut by a steep 23 per cent, reports Economic Times. The steep fall in ATF prices brings down its price to a third of the price of petrol and diesel whose prices ave remained frozen for a continuous period of 50 days as of Sunday (3 May). The price cut also is in line with the slump in the international oil prices. Not only does this mark the steepest cut ever in the prices of ATF, but also the sixth such reduction in the price since February this year. Since February, the prices of ATF have been slashed by almost two-thirds. In Delhi, for instance, the price of ATF before the beginning of the reduction cycle in February stood at Rs 64,323.76 per kiloliter. Now, the same figure has come down to 22,544.75 per kiloliter. Until March, the ATF prices used to be revised on the first of every month. However, on 21 March, the oil companies adopted the practice to revise the practice fortnightly in a bid to pass on the benefit of falling international oil prices to the airlines.
3 May 14:26 • Swarajya • https://swarajyamag.com/insta/aviation-turbine-fuel-price-cut-by-23-per-cent-now-costs-one-third-of-petrol-diesel-ratesRating: 1.22
Jet fuel price cut 23%; costs less than one-third of petrol, diesel
ATF, which is used as a fuel in aeroplanes, now costs less than one-third of the price of petrol used in cars and two-wheelers. A litre of petrol in Delhi comes for Rs 69.59 while jet fuel is priced at Rs 22.54 per litre Jet fuel (ATF) prices have been slashed by a steep 23 per cent in line with a slump in international oil prices and it now costs about one-third of petrol and diesel whose rates continue to be frozen for the 50th day on Sunday.Aviation turbine fuel (ATF) price has been cut by Rs 6,812.62 per kilolitre, or 23.2 per cent, to Rs 22,544.75 per kl in the national capital, according to a price notification by state-owned oil marketing companies. ATF, which is used as a fuel in aeroplanes, now costs less than one-third of the price of petrol used in cars and two-wheelers. A litre of petrol in Delhi comes for Rs 69.59 while jet fuel is priced at Rs 22.54 per litre. Diesel, used mostly in trucks, buses and tractors, is priced at Rs 62.29 per litre. In fact, even market priced or non-subsidised kerosene is much cheaper than petrol and diesel after its rates were cut 13.3 per cent to Rs 39,678.47 per kl (Rs 39.67 per litre), according to the notification. This the steepest cut ever and sixth reduction in ATF prices since February. Since February, jet fuel prices have been cut by almost two-thirds. ATF price in Delhi before the reduction cycle began in February was Rs 64,323.76 per kl and now costs Rs 22,544.75 per kl. Similar reduction has been effected in other metro cities as well. While the oil PSUs have regularly revised ATF prices, they have since March 16 kept petrol and diesel prices on hold ostensibly on account of extreme volatility in the international oil markets. Petrol and diesel prices were frozen soon after the government raised excise duty on the two fuels by Rs 3 per litre each to mop up gains arising from falling international rates. Oil companies, instead of passing on the excise hike to consumers, decided to adjust them against the reduction required because of the drop in international oil prices. They used the same tool and did not pass on the Re 1 per litre hike required for switching over to ultra-clean BS-VI grade fuel from April 1. Market analysts, however, said the same volatility was witnessed in ATF prices as well but that has not stopped the oil companies from passing on the cut to airlines. More importantly, no airline has been operating since mid-March in view of restrictions placed to check the spread of coronavirus, yet oil companies have continued to revise downward jet fuel prices. In fact, oil companies used to revise ATF prices on the 1st of every month but they on March 21 adopted fortnightly revisions to pass on the benefit of falling international oil prices to the airlines. Even non-PDS or market priced kerosene cost has seen rate reduction similar to ATF. It was priced at Rs 65,815.47 per kl in January. Though the government had deregulated petrol and diesel prices, rate changes have been in the past put on hold by public sector oil companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) for reasons that appear to be non-commercial. There was a 19-day price freeze on petrol and diesel ahead of the Karnataka polls in May 2018 despite international fuel prices going up by nearly USD 5 a barrel. However, no sooner were the elections over, they rapidly passed on to customers the desired increase -- over 16-straight days post-May 14, 2018, petrol price climbed by Rs 3.8 per litre and diesel by Rs 3.38. Similarly, they had stopped revising fuel prices for almost 14 days ahead of the assembly elections in Gujarat in December 2017. These companies had also imposed a freeze on petrol and diesel prices between January 16, 2017, and April 1, 2017, when assembly elections in five states -- Punjab, Goa, Uttarakhand, Uttar Pradesh and Manipur -- were held. During the 2019 general elections, they moderated the revision by not passing on all of the desired increase in rates to consumers, industry sources said. And rates began to rise a day after the final phase of polling for Lok Sabha elections ended. Also read: Coronavirus India Live Updates: Lockdown 3.0! Highest 1-day jump with 2,644 cases; IAF salutes corona heroes Also read:Major milestone! India conducts 1 million coronavirus tests Also read:Lockdown 3.0: Armed forces say 'Thank You' to corona warriors; check out latest visuals from different states
3 May 06:06 • Business Today • https://www.businesstoday.in/sectors/aviation/jet-fuel-price-cut-23-costs-less-than-one-third-of-petrol-diesel/story/402723.htmlRating: 2.10
ATF price slashed 23%, costs one-third of 'frozen' petrol, diesel rates
Jet fuel (ATF) prices have been slashed by a steep 23 per cent in line with a slump in international oil prices and it now costs about one-third of petrol and diesel whose rates continue to be frozen for the 50th day on Sunday. Aviation turbine fuel (ATF) price has been cut by Rs 6,812.62 per kilolitre, or 23.2 per cent, to Rs 22,544.75 per kl in the national capital, according to a price notification by state-owned oil marketing companies. ATF, which is used as a fuel in aeroplanes, now costs less than one-third of the price of petrol used in cars and two-wheelers. A litre of petrol in Delhi comes for Rs 69.59 while jet fuel is priced at Rs 22.54 per litre. Diesel, used mostly in trucks, buses and tractors, is priced at Rs 62.29 per litre. In fact, even market priced or non-subsidised kerosene is much cheaper than petrol and diesel after its rates were cut 13.3 per cent to Rs 39,678.47 per kl (Rs 39.67 per litre), according to the notification. This the steepest cut ever and sixth reduction in ATF prices since February. ALSO READ: MCX offers chance to exit trading if crude oil price slips into negative Since February, jet fuel prices have been cut by almost two-thirds. ATF price in Delhi before the reduction cycle began in February was Rs 64,323.76 per kl and now costs Rs 22,544.75 per kl. Similar reduction has been effected in other metro cities as well. While the oil PSUs have regularly revised ATF prices, they have since March 16 kept petrol and diesel prices on hold ostensibly on account of extreme volatility in the international oil markets. Petrol and diesel prices were frozen soon after the government raised excise duty on the two fuels by Rs 3 per litre each to mop up gains arising from falling international rates. Oil companies, instead of passing on the excise hike to consumers, decided to adjust them against the reduction required because of the drop in international oil prices. They used the same tool and did not pass on the Re 1 per litre hike required for switching over to ultra-clean BS-VI grade fuel from April 1. Market analysts, however, said the same volatility was witnessed in ATF prices as well but that has not stopped the oil companies from passing on the cut to airlines. More importantly, no airline has been operating since mid-March in view of restrictions placed to check the spread of coronavirus, yet oil companies have continued to revise downward jet fuel prices. In fact, oil companies used to revise ATF prices on the 1st of every month but they on March 21 adopted fortnightly revisions to pass on the benefit of falling international oil prices to the airlines. Even non-PDS or market priced kerosene cost has seen rate reduction similar to ATF. It was priced at Rs 65,815.47 per kl in January. Though the government had deregulated petrol and diesel prices, rate changes have been in the past put on hold by public sector oil companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) for reasons that appear to be non-commercial. ALSO READ: Fuel sales slump 50% in April; petrol down 64%, diesel 61%, ATF 94% There was a 19-day price freeze on petrol and diesel ahead of the Karnataka polls in May 2018 despite international fuel prices going up by nearly USD 5 a barrel. However, no sooner were the elections over, they rapidly passed on to customers the desired increase -- over 16-straight days post-May 14, 2018, petrol price climbed by Rs 3.8 per litre and diesel by Rs 3.38. Similarly, they had stopped revising fuel prices for almost 14 days ahead of the assembly elections in Gujarat in December 2017. These companies had also imposed a freeze on petrol and diesel prices between January 16, 2017, and April 1, 2017, when assembly elections in five states -- Punjab, Goa, Uttarakhand, Uttar Pradesh and Manipur -- were held. During the 2019 general elections, they moderated the revision by not passing on all of the desired increase in rates to consumers, industry sources said. And rates began to rise a day after the final phase of polling for Lok Sabha elections ended.
3 May 06:00 • Business-Standard • https://www.business-standard.com/article/economy-policy/atf-price-slashed-23-costs-one-third-of-frozen-petrol-diesel-rates-120050300236_1.htmlRating: 0.30
Flight Centre waives cancellation fees after consumer watchdog threatens legal action
3 May 04:57
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Flight Centre waives cancellation fees after consumer watchdog threatens legal action
The consumer watchdog was preparing to launch court action against Flight Centre for charging $300 fees to process Covid-19 refunds before the company agreed to end to the practice. Flight Centre angered many of its customers by charging the $300 fee to each person for each element of their trip that was cancelled due to the pandemic and associated travel restrictions. The policy led to absurd situations. In one case, a Gold Coast family were asked to pay $2,100 in cancellation fees to process a hotel refund of $1,600 for their seven-person Disneyland trip. Flight Centre on Saturday announced it will no longer charge the fee if the travel provider cancels its service. In other words, if an airline or tour operator cancels a trip, a customer who booked through Flight Centre will no longer be charged the $300 fee. Flight Centre is applying the waiver retrospectively to any bookings on or after 13 March, according to Flight Centre executive general manager, Allisa O’Connell. “The decision to waive fees will impact our business, nevertheless we have heard your feedback and we believe this step is the right one for the current economic conditions where stand downs and job losses are a daily occurrence for many Australians,” O’Connell said. On Sunday, the Australian Competition and Consumer Commission revealed the change was made in the face of looming court action. ACCC chair Rod Sims said the regulator’s next step would have been to take Flight Centre to court, if it did not change its position. Sims said the company’s decision would allow the issue to be dealt with more quickly than legal proceedings. “This is a very welcome move made by Flight Centre for thousands of customers impacted by Covid-19 travel cancellations,” Sims said on Sunday. “We are continuing to discuss issues in relation to refunds and cancellations with the travel sector, and encourage travel providers to treat consumers fairly in these exceptional circumstances.” The sector has been thrown into crisis by travel restrictions. The industry’s peak body has lobbied government for additional support and made representations to the Australian Competition and Consumer Commission that stressed the sector’s reliance on giving credit notes, rather than refunds, in the case of cancelled travel. In some cases, the crisis has prompted questionable behaviour from tour operators. Topdeck, the youth travel operator, altered its refund policy and applied it retrospectively in a way that denied customers refunds. Intrepid also altered its refund policy and applied it to past bookings, and told some customers who still wanted a refund to wait three months before asking again. The company says it is not denying refunds and is still working with individuals to resolve their concerns. The ACCC has received more than 6,000 complaints from consumers about the travel sector more broadly, and said thousands more had contacted their local state or territory fair trading agencies. But Sims called for consumers to remain patient, given the devastating impact Covid-19 has had on the sector. “We ask consumers to remain patient and be mindful of the significant pressures on businesses at this time and, where possible, contact the business by email or website, rather than by phone,” Sims said. “These are very complex issues and may take smaller businesses more time to respond.” The ACCC has previously issued guidance warning the travel sector against changing their refund policies and applying them to old bookings. “Travel providers must honour the terms and conditions agreed to at the time the consumer purchased their flights, cruises, tours or accommodation,” a spokesman told the Guardian last month. “Informing consumers that they have no right to a refund when in fact they do is likely to constitute misleading conduct in breach of the Australian Consumer Law.”
3 May 04:57 • the Guardian • https://www.theguardian.com/australia-news/2020/may/03/flight-centre-waives-cancellation-fees-after-consumer-watchdog-threatens-legal-actionRating: 5.39
Flight Centre Just Axed Cancellation Fees & Will Issue Refunds After Pressure From The ACCC
Flight Centre has scrapped cancellation fees due the coronavirus pandemic and will refund everyone who was charged from March 13, after countless Aussies complained to the Australian Competition and Consumer Commission (ACCC). Until now, the travel agent had been stinging customers with a $300 fee per person for cancelled international flights, and a $50 fee per person for cancelled domestic flights. It didn’t matter whether or not the cancellation was the choice of the customer or if the flight had been cancelled by the airline due to the pandemic. “This is a very welcome move made by Flight Centre for thousands of customers impacted by COVID-19 travel cancellations,” ACCC Chair Rod Sims said. “We are continuing to discuss issues in relation to refunds and cancellations with the travel sector, and encourage travel providers to treat consumers fairly in these exceptional circumstances. “While we know some consumers are very concerned about getting a refund or credit for their cancelled travel plans, we do ask people to be mindful of the significant impact that this pandemic has had on the travel industry.” The policy will also apply to other travel agents which are part of the Flight Centre Group: Aunt Betty, Travel Associates, Student Universe, Universal Traveller and BYOjet. Flight Centre executive general manager Allisa O’Connell told customers about the new policy in an email on Saturday night. “The decision to waive fees will impact our business, nevertheless we have heard your feedback and we believe this step is the right one for the current economic conditions where stand-downs and job losses are a daily occurrence for many Australians,” she wrote. “Please note this waiver applies to our fees – we cannot waive fees or conditions that airlines and other third-party suppliers impose.” The ACCC said it’s received over 6,000 complaints about refunds in the travel industry, but didn’t say how many were about Flight Centre in particular. Image: AAP / Glenn Hunt
3 May 09:38 • Pedestrian TV • https://www.pedestrian.tv/news/flight-centre-cancellation-fees-refunds/Rating: 0.62
Flight Centre bows to fee storm, avoids ACCC lawsuit
Flight Centre avoided a costly legal clash with the competition regulator after bowing to pressure over its cancellation fees. Travel agencies including Brisbane-based Flight Centre have been criticised by customers over communication failures, fees, changes to refund policies and delays in refunding money as the coronavirus pandemic caused countries to close borders. Australian Competition and Consumer Commission chairman Rod Sims said on Sunday: "We are continuing to discuss issues in relation to refunds and cancellations with the travel sector, and encourage travel providers to treat consumers fairly in these exceptional circumstances. "While we know some consumers are very concerned about getting a refund or credit for their cancelled travel plans, we do ask people to be mindful of the significant impact that this pandemic has had on the travel industry." One gripe with Flight Centre had been over a $300 cancellation fee. The company had already altered its policies once to try to soothe anger, saying last week that customers who retained credit with the travel agency could book a holiday until December next year then seek a refund without incurring any fees. If a cancellation fee was to be charged for someone seeking a refund earlier, it would be capped at two customers per group, or $600 in total for international travel. That move had left Mr Sims "not content" last week. At the weekend, amid a barrage of complaints on social media including Facebook, Flight Centre changed its policy again. The travel agency said it would "waive its usual cancellation fees for bookings where the travel provider [eg airline, cruise line or tour operator] has cancelled its service and you are unable to travel as a result". "The decision to waive fees will impact our business, nevertheless we have heard your feedback." The ACCC, which in the past decade took Flight Centre to the High Court over allegations of price-fixing that resulted in a $12.5 million fine, welcomed the travel agent’s latest move. "[The ACCC’s] next step would have been court action if Flight Centre did not change its position. This announcement will provide faster relief for consumers than would have been likely to have resulted from any court action," the regulator said. Guidance from the ACCC has been that people should be compensated by methods including a refund or voucher. But Mr Sims had said one of the key questions about cancellation fees was whether it related to the customer cancelling or cancellations having to be made in the pandemic. A Flight Centre spokesman said the company had believed it had been acting lawfully and within guidelines with its initial approach, but understood that some customers had not been happy. People who kept credit with Flight Centre instead of seeking a refund would receive extra vouchers. The travel agency also tried to reassure customers about its longevity by pointing to it recently raising $700 million. Other travel outfits have also faced ACCC pressure or customer complaints. Webjet and STA Travel have been criticised for failing to contact customers. Customers accused STA of changing refund policies, with some saying the changes meant they could only get credit. But a company spokeswoman denied "any changes to the terms and conditions since the outbreak of COVID-19, contrary to many other travel companies". After discussions with the ACCC, travel outfit Intrepid agreed to honour refund policies that had been active when customers had earlier booked journeys before it changed terms and conditions and offered credit instead. On Friday, travel agency Helloworld said: "many suppliers, including airlines, cruise operators, tour operators and other providers have unilaterally changed their cancellation conditions and are offering future travel credits rather than cash refunds". "Many customers are agreeable to accepting credits for future travel, particularly on the basis that any applicable cancellation fees are fully waived, however, we are working with suppliers on behalf of our customers who are seeking a cash refund where such a refund was a term of the original booking," it said. Helloworld also said it was not currently seeking to raise funds. Having cut costs, it would likely chew through between $1.5 million and $2 million a month for the next six months. It was also owed $3.7 million by Virgin Australia.
3 May 02:17 • Australian Financial Review • https://www.afr.com/companies/tourism/flight-centre-bows-to-fee-storm-avoids-accc-lawsuit-20200503-p54pcaRating: 1.94
Flight Centre scraps cancellation fees for trips affected by virus
Flight Centre has decided to stop charging customers for cancelling trips due to the coronavirus pandemic. It comes following mounting pressure from the consumer watchdog, who received a large number of complaints from Australians about the cancellation fees. The ACCC today welcomed the announcement by the travel agent, revealing their next step was to take court action if Flight Centre refused to change its position. “This is a very welcome move made by Flight Centre for thousands of customers impacted by COVID-19 travel cancellations,” ACCC Chair Rod Sims said. “We are continuing to discuss issues in relation to refunds and cancellations with the travel sector, and encourage travel providers to treat consumers fairly in these exceptional circumstances. “While we know some consumers are very concerned about getting a refund or credit for their cancelled travel plans, we do ask people to be mindful of the significant impact that this pandemic has had on the travel industry.” Flight Centre will now refund thousands of customers who, from 13 March, were charged $300 per person to get a refund for a cancelled international flight or $50 for a domestic flight. This policy will also apply to cancellations fees charged by Aunt Betty, Travel Associates, Student Universe, Universal Traveller and Jetescape Travel, which are part of the Flight Centre group.
2 May 22:49 • myGC.com.au • http://www.mygc.com.au/flight-centre-scraps-cancellation-fees-for-trips-affected-by-virus/Rating: 0.30
FICCI seeks infrastructure status for lockdown-hit steel sector
3 May 16:31
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FICCI seeks infrastructure status for lockdown-hit steel sector
NEW DELHI: Industry body Ficci has suggested various measures like infrastructure status to the steel industry, zero duty on critical raw materials, and another three-month moratorium to revive the sector, which has been impacted by the lockdown. COVID-19 pandemic and subsequent nationwide lockdown have affected the demand and production of steel, as well as resulted in the rise of inventory levels, it said, adding the policy interventions would help the industry to revive and help generate employment opportunities. In its suggestions to the government, Ficci said: "It recommends for an extension of additional three months moratorium granted on payment of interest and repayment of loans without any penal interest and interest free financing/at nominal rates for MSMEs in the sector to revive". Granting infrastructure status to the steel industry, it said, will give access to finance at competitive rates from various markets and sources. Besides, the entire supply chain of the sector should be incorporated into essential services, and be allowed to operate with precautionary measures as per the guidelines of the government. The industry body also suggested zero import duty on critical raw materials for steel making. The move will help players to reduce input cost and sustain in the market. Fast tracking operationalisation of all steel consuming industries should be accorded the highest priority, the body said, adding new areas of applications for steel products like in furniture, setting railway infrastructure etc must be explored to further enhance the demand. "To further reduce financial burden on the sector, Ficci recommends for deferment of royalty, DMF (District Mineral Fund) and NMET (National Mineral Exploration Trust) by 6 months till the economic situation stabilises and subsuming of all levies like royalty, DMF, NMET etc. into one tax like GST," the industry body said. Other suggestions included to subsidise railway freight by additional 15 per cent for next six months, waiving off charges like container detention and demurrage charges, ground rent by custodians till end of May 2020 to reduce the financial burden on the industry, priority in rake allocation for transportation of raw material and steel products for next 6 months. It also said that all statutory clearances like mineral license, environment clearance, and consent to operate etc, that are pending for renewals, should be deemed granted for at least one year, in view of the nationwide lockdown. It has requested the government to facilitate the movement of migrant workers from their native places to plants by providing special sanitised wagons and financial support to the workers for commuting. The body also raised concerns that India could see a surge in imports post lockdown as many countries would try to dump in their products into local market.
3 May 16:31 • The New Indian Express • https://www.newindianexpress.com/business/2020/may/03/ficci-seeks-infrastructure-status-for-lockdown-hit-steel-sector-2138650.htmlRating: 2.04
Coronavirus lockdown: Ficci seeks infrastructure status for steel sector
Ficci has suggested zero import duty on critical raw materials for steel making. The move will help players to reduce input cost and sustain in the market Industry body Ficci has suggested various measures like infrastructure status to the steel industry, zero duty on critical raw materials, and another three-month moratorium to revive the sector, which has been impacted by the lockdown. COVID-19 pandemic and subsequent nationwide lockdown have affected the demand and production of steel, as well as resulted in the rise of inventory levels, it said, adding the policy interventions would help the industry to revive and help generate employment opportunities. In its suggestions to the government, Ficci said: "It...recommends for an extension of additional three months moratorium granted on payment of interest and repayment of loans without any penal interest and interest free financing/at nominal rates for MSMEs in the sector to revive". Granting infrastructure status to the steel industry, it said, will give access to finance at competitive rates from various markets and sources. Besides, the entire supply chain of the sector should be incorporated into essential services, and be allowed to operate with precautionary measures as per the guidelines of the government. The industry body also suggested zero import duty on critical raw materials for steel making. The move will help players to reduce input cost and sustain in the market. Fast tracking operationalisation of all steel consuming industries should be accorded the highest priority, the body said, adding new areas of applications for steel products like in furniture, setting railway infrastructure etc must be explored to further enhance the demand. "To further reduce financial burden on the sector, Ficci recommends for deferment of royalty, DMF (District Mineral Fund) and NMET (National Mineral Exploration Trust) by 6 months till the economic situation stabilises and subsuming of all levies like royalty, DMF, NMET etc. into one tax like GST," the industry body said. Other suggestions included to subsidise railway freight by additional 15 per cent for next six months, waiving off charges like container detention and demurrage charges, ground rent by custodians till end of May 2020 to reduce the financial burden on the industry, priority in rake allocation for transportation of raw material and steel products for next 6 months. It also said that all statutory clearances like mineral license, environment clearance, and consent to operate etc, that are pending for renewals, should be deemed granted for at least one year, in view of the nationwide lockdown. It has requested the government to facilitate the movement of migrant workers from their native places to plants by providing special sanitised wagons and financial support to the workers for commuting. The body also raised concerns that India could see a surge in imports post lockdown as many countries would try to dump in their products into local market. Also read: Lockdown 3.0: India Inc. expects 40% decline in revenues, fears year-long wait for economic revival Also read: Lockdown 3.0: Allow industries to resume across all zones, CII tells govt
3 May 12:24 • Business Today • https://www.businesstoday.in/current/economy-politics/coronavirus-lockdown-ficci-seeks-infrastructure-status-for-steel-sector/story/402750.htmlRating: 2.10
Modi Meets Ministers to Finalize Steps to Revive Indian Economy
Prime Minister Narendra Modi discussed ways to increase liquidity and credit to businesses, infrastructure and farming sectors to restart Asia’s third-largest economy, which is reeling under the impact of the world’s toughest lockdown. In a meeting with senior ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and other key government officials on May 2, Modi discussed strategies and interventions to support small businesses and farmers as the country prepares to allow some activity to revive the economy. Talks revolved around enhancing liquidity and strengthening credit flows for a quick recovery after the country was shut towards the end of March to check the spread of Covid-19, according to a statement posted on Twitter. Prime Minister Modi announced a total lockdown on March 24, shutting all but essential goods and services. That halted manufacturing and wiped out consumption, the backbone of the economy which is heading for it first contraction in more than four decades. The government has extended the stay-at-home orders for another two weeks from May 4 but eased restrictions in some areas to restart economic activity. Revival of the infrastructure sector and speedier implementation of construction projects that involve large scale employment were examined, the statement added. The government is considering a proposal to guarantee as much as 3 trillion rupees ($40 billion) of loans to small businesses, people familiar with the matter said last month. India’s central bank Governor Shaktikanta Das met chief executive officers of the nation’s banks on May 2 to discuss ways to ensure credit flow to businesses once the lockdown order ends.
3 May 05:12 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/modi-meets-ministers-to-finalize-steps-to-revive-indian-economyRating: 4.04
PM Modi chairs meet to discuss agriculture sector reforms
As the government prepares to rejuvenate the economy by easing the lockdown, Prime Minister Narendra Modi on Saturday held a meeting to take stock of reforms in the agriculture sector and discussed various measures, including development of ‘e-NAM into a platform of platforms’ to enable e-commerce and creation of commodity-specific boards or councils to boost agricultural exports. The high-level meeting, also attended by Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Agriculture Minister Narendra Singh Tomar, deliberated on the “pros and cons” of bio-technological developments in agriculture. The meeting comes at a time when reforms in the agriculture sector remain stuck. In July last year, the government constituted a nine-member high-powered committee of Chief Ministers with then Maharashtra CM Devendra Fadnavis being appointed as convenor. The committee was supposed to submit its report within two months but it managed to do so only much later — the recommendations are yet to be made public. “PM Narendra Modi held a meeting today to deliberate on the issues and reforms required in the agriculture sector. Special emphasis was given on reforms in agriculture marketing, management of marketable surplus, access of farmers to institutional credit and freeing the agriculture sector of various restrictions with appropriate backing of statute,” the PMO said in a statement. “The focus was on making strategic interventions in the existing marketing eco-system and bringing appropriate reforms in the context of rapid agricultural development,” said statement. In a series of meetings this week, the Prime Minister has already reviewed several sectors such as power, education, civil aviation, defence, aerospace, coal and mining; and discussed strategies for boosting investment. The PMO stated, “Concessional credit flow to strengthen agriculture infrastructure, special Kisan Credit Card saturation drive for PM-Kisan beneficiaries and facilitating inter and intra-state trade of agriculture produce to ensure fairest returns to farmers were some of the important areas covered. Developing e-NAM into a platform of platforms to enable e-commerce was one of the important topics. Discussion also emanated on the possibilities of uniform statutory framework to facilitate new ways for farming which will infuse capital and technology in agrarian economy.”
3 May 01:10 • The Indian Express • https://indianexpress.com/article/india/pm-modi-chairs-meet-to-discuss-agriculture-sector-reforms-6391090/Rating: 0.30
Coronavirus | PM Modi discusses reforms for agriculture sector
Prime Minister Narendra Modi on Saturday discussed ways to reform the agriculture sector with an emphasis on marketing, farmers’ access to institutional credit and freeing the sector from restrictions with legal backing. Full coverage on coronavirus The government has maintained that the farm sector is functioning smoothly despite the lockdown to check the spread of COVID-19, and the lockdown will not have much impact on its growth in the current financial year, unlike other sectors. The pros and cons of biotechnological developments in crops or productivity enhancement and reduction in input costs were also deliberated, an official statement said. The meeting discussed strategic interventions in the marketing ecosystem and reforms in the context of rapid agricultural development. Concessional credit flow to strengthen infrastructure, a special Kisan Credit Card saturation drive for the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) beneficiaries and facilitating inter- and intra-State trade of agriculture produce to ensure the fairest return to farmers were some of the other important areas covered, the statement said. Coronavirus, May 2 updates | State-wise tracker for coronavirus cases, deaths and testing rates Developing eNAM or the National Agriculture Market (NAM) into a “platform of platforms” to facilitate e-commerce was among the important topics of the meeting. Also discussed was a uniform statutory framework to create new ways of farming, which will infuse capital and technology into the agrarian economy. The challenges of the Model Agricultural Land Leasing Act, 2016, and protecting the interests of small and marginal farmers were discussed at the meeting attended by Home Minister Amit Shah, Agriculture Minister Narendra Singh Tomar and Finance Minister Nirmala Sitharaman. State Helpline numbers for COVID-19 | e-Book on COVID-19 The meeting also discussed ways to make the Essential Commodities Act compatible with the present times so as to incentivise largescale private investment in post-production infrastructure. Developing ‘Brand India’, creation of commodity-specific boards/ councils and promotion of agri-clusters or contract-farming were some of the interventions that were discussed to boost exports. Watch | Guidelines for extended lockdown The use of technology in agriculture is of paramount importance as it has the potential to unlock the entire value chain for the benefit of farmers. Mr. Modi underscored the importance of the dissemination of technology till the last mile and making farmers more competitive in the global value chain. The meeting decided to further strengthen the role of Farmer Producer Organisations to make the agrarian economy vibrant and agriculture trade transparent and to create the maximum benefits to farmers. The overall emphasis was on revisiting the laws governing the market for better price realisation and allowing farmers the freedom of choice, the statement said. Also read: Comment | Reducing farm distress during a pandemic Mr. Modi wrote on Twitter that the meeting reviewed aspects of agriculture reform. “Our priority areas are reforms in agriculture marketing, management of marketable surplus, access of farmers to institutional credit and freeing agriculture sector of various restrictions,” he said.
2 May 16:48 • The Hindu • https://www.thehindu.com/news/national/coronavirus-pm-modi-discusses-reforms-for-agriculture-sector/article31490982.eceRating: 0.30
Coronavirus lockdown 3.0: Industry welcomes relaxations but stimulus package demand still on
With further relaxations announced, it's time for the government to announce a financial package, especially for the MSMEs, President, FICCI, Sangita Reddy said Even as most industry bodies supported broad relaxations announced in certain zones by the government on Friday, demand for a stimulus package to mitigate the impact of the coronavirus pandemic has been reiterated again. Since coronavirus lockdown has led to a massive disruption in the economy, a package is needed to boost the struggling economy, India Inc said. "The relaxation to many industrial activities including industrial establishments in urban areas such as Special Economic Zones, industrial estates and industrial townships with access control within the red zone with restrictions, is absolutely in line with what Confederation of Indian Industry (CII) had been asking for and we especially welcome it," said Chandrajit Banerjee, CII Director-General. While all industrial activities are permitted in rural areas, limited industrial establishments will be allowed to operate in urban areas, the Ministry of Home Affairs (MHA) said in an order released Friday. Manufacturing establishments allowed in urban areas include: only special economic zones (SEZs), export-oriented units (EOUs), industrial estates and industrial townships with access control, manufacturing units of essential goods including drugs and pharmaceuticals, medical devices, their raw material, and intermediaries; production unis, which require continuous process and staggered shifts and social distancing and manufacturing units of packaging material. "With restricted economic activities, the imperative for a quick and forceful economic support package for industry is even more compelling now. CII has suggested instituting a Government spending package equivalent to 3 per cent of GDP which would add Rs 6 lakh crore to the available firepower. Enhanced debt to GDP ratio could be a way out to add fiscal space at a time when the debt to GDP ratio is modest in India," Chandrajit Banerjee also said. With further economic relaxations coming up, it's time for the government to announce a financial package, especially for the MSMEs, President, FICCI, Sangita Reddy said. Reacting to the development, ASSOCHAM said, ''The government's strategy to build on the gains in the form of containment of coronavirus is understandable and must be supported, but the 40-day lockdown has resulted in massive economic disruption. The disruption has started causing livelihood concerns for millions of workforce - both in the formal and informal sectors." Meanwhile, e-commerce activities in the Red Zones are permitted only in respect of essential goods. and private offices can operate with up to 33 per cent strength as per requirement, with the remaining people working from home. Also read: Coronavirus India Live Updates: 2,293 COVID-19 cases in 24 hours, biggest jump after lockdown extension Also read: Coronavirus crisis: Donald Trump hints at imposing new tariff on China for mishandling virus outbreak
2 May 07:01 • Business Today • https://www.businesstoday.in/latest/trends/coronavirus-lockdown-30-industry-welcomes-relaxations-but-stimulus-package-demand-still-on/story/402667.htmlRating: 2.10
Coronavirus lockdown: PM Modi discusses reforms in agriculture sector
Amid coronavirus-induced lockdown, Prime Minister Narendra Modi on Saturday deliberated on ways to reform the agriculture sector with emphasis on agriculture marketing, access of farmers to institutional credit and freeing the sector of various restrictions with appropriate backing of laws. Agriculture accounts for 15 percent of India's gross domestic product and is a source of livelihood for more than half of the country's 1.3 billion population. The government has maintained that the country's farm sector is functioning smoothly despite the COVID-19 lockdown and there will not be much impact on its growth in the current fiscal, unlike other sectors. Coronavirus India LIVE Updates The pros and cons of bio-technological developments in crops or enhancement of productivity and reduction in input costs was also deliberated, an official statement said. The meeting also focused on making strategic interventions in the existing marketing eco-system and bringing appropriate reforms in the context of rapid agricultural development. Concessional credit flow to strengthen agriculture infrastructure, special Kisan Credit Card saturation drive for PM-Kisan beneficiaries and facilitating inter and intra-state trade of agriculture produce to ensure fairest return to farmers were some of the other important areas covered, the statement said. Developing eNAM or the National Agriculture Market into a "platform of platforms" to enable e-commerce was one of the important topics of discussion on Saturday. Discussion also emanated on the possibilities of a uniform statutory framework in the country to facilitate new ways for farming which will infuse capital and technology in the agrarian economy. The challenges of the Model Agricultural Land Leasing Act, 2016 and how to protect the interest of small and marginal farmers was discussed in detail. Ways to make the Essential Commodities Act compatible with present times so that large-scale private investment in post-production agriculture infrastructure is incentivised, and how it has a positive effect on commodity derivative markets, was also discussed. Developing ‘Brand India', creation of commodity specific boards/councils and promotion of agri-clusters or contract farming are some of the interventions that were deliberated to boost agriculture commodity export. The use of technology in the agriculture sector is of paramount importance as it has the potential to unlock the entire value chain for the benefit of farmers. PM Modi emphasised on the dissemination of technology till the last mile and making farmers more competitive in the global value chain. It was decided to further strengthen the role of Farmers Producer Organisations (FPOs) to bring vibrancy in agrarian economy, transparency in agriculture trade and enable maximum benefits to the farmers. Overall emphasis was on revisiting the existing laws governing market for better price realisation and freedom of choice to the farmers, the statement said. Agriculture and allied sector's growth stood at 3.7 percent during the 2019-20 fiscal. Follow our full coverage of the coronavirus pandemic here.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/india/coronavirus-lockdown-pm-modi-discusses-reforms-in-agriculture-sector-5215101.htmlRating: 0.30
In PM’s push for farm reforms, a role for Kisan credit cards, PM-KISAN scheme
Prime Minister Narendra Modi on Saturday held a meeting with ministers and government officials to discuss ways to boost the agriculture sector in India as the country looks to rebound from the economic setback dealt by coronavirus outbreak. The government’s focus is on making strategic interventions in the existing marketing eco-system for the farm sector and bringing appropriate reforms in the context of rapid agricultural development. A government release said that this would be achieved by further strengthening Farmer Producer Organisations (FPOs) and by developing ‘Brand India’ in the sector that would contribute to boosting agricultural exports. “PM Narendra Modi holds a meeting to discuss ways to boost the agriculture sector; emphasises on the dissemination of technology till the last mile and making farmers more competitive in the global value chain,” said a release by the government. The prime minister has been stressing on boosting exports to aid economic growth. The meeting also discussed ways to make several government instruments for the sector including the Kisan Credit Cards, PM-KISAN and e-Nam even more effective and increase their contribution to farmer welfare. Kisan Credit Cards offer short-term credit limits for crops and term loans to holders by participating banks including cooperatives. This initiative grants farmers access to formal banking networks. KCC credit cardholders are also eligible for personal accident insurance for death and permanent disability. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a scheme started by the Narendra Modi government in 2018 that provides income support of Rs.6000/- per year to all farmer families across the country. The sum is paid in three equal installments of Rs.2000/- each every four months. National Agriculture Market or eNAM is another initiative to modernize the farming sector with a tool that helps farmers in discovering the best price for their produce. It (eNAM) is an online trading platform for agricultural commodities that brings farmers, traders and buyers at one place. Saturday’s meeting, which also discussed ways to invigorate the agriculture sector with modern technology, comes in the backdrop of appeals by the prime minister for self-reliance in a post-coronavirus world and for attracting foreign investments by offering a favourable environment aided by government policy, infrastructural and technological advancement. India readies to enter the third phase of nationwide lockdown from May 4, which will see a graded resumption of economic activities across the country. The government has given total exemptions to the agriculture sector in all zones.
2 May 12:40 • Hindustan Times • https://www.hindustantimes.com/india-news/in-pm-modi-s-push-for-agricultural-reforms-a-role-for-kisan-credit-cards-pm-kisan-scheme/story-uSV3GuPoxHOCvV7mzXAMXK.htmlRating: 0.30
PM Modi discusses reforms in agriculture sector
Amid coronavirus-induced lockdown, Prime Minister Narendra Modi on Saturday deliberated on ways to reform the agriculture sector with emphasis on agriculture marketing, access of farmers to institutional credit and freeing the sector of various restrictions with appropriate backing of laws. Agriculture accounts for 15 per cent of India's gross domestic product and is a source of livelihood for more than half of the country's 1.3 billion population. The government has maintained that the country's farm sector is functioning smoothly despite the Covid-19 lockdown and there will not be much impact on its growth in the current fiscal, unlike other sectors. The pros and cons of bio-technological developments in crops or enhancement of productivity and reduction in input costs was also deliberated, an official statement said. The meeting also focused on making strategic interventions in the existing marketing eco-system and bringing appropriate reforms in the context of rapid agricultural development. Concessional credit flow to strengthen agriculture infrastructure, special Kisan Credit Card saturation drive for PM-Kisan beneficiaries and facilitating inter and intra-state trade of agriculture produce to ensure fairest return to farmers were some of the other important areas covered, the statement said. Developing eNAM or the National Agriculture Market into a "platform of platforms" to enable e-commerce was one of the important topics of discussion on Saturday. Discussion also emanated on the possibilities of a uniform statutory framework in the country to facilitate new ways for farming which will infuse capital and technology in the agrarian economy. The challenges of the Model Agricultural Land Leasing Act, 2016 and how to protect the interest of small and marginal farmers was discussed in detail. Ways to make the Essential Commodities Act compatible with present times so that large-scale private investment in post-production agriculture infrastructure is incentivised, and how it has a positive effect on commodity derivative markets, was also discussed. Developing 'Brand India', creation of commodity specific boards/councils and promotion of agri-clusters or contract farming are some of the interventions that were deliberated to boost agriculture commodity export. The use of technology in the agriculture sector is of paramount importance as it has the potential to unlock the entire value chain for the benefit of farmers. PM Modi emphasised on the dissemination of technology till the last mile and making farmers more competitive in the global value chain. It was decided to further strengthen the role of Farmers Producer Organisations (FPOs) to bring vibrancy in agrarian economy, transparency in agriculture trade and enable maximum benefits to the farmers. Overall emphasis was on revisiting the existing laws governing market for better price realisation and freedom of choice to the farmers, the statement said. Agriculture and allied sector's growth stood at 3.7 per cent during the 2019-20 fiscal. IndiaToday.in has plenty of useful resources that can help you better understand the coronavirus pandemic and protect yourself. Read our comprehensive guide (with information on how the virus spreads, precautions and symptoms), watch an expert debunk myths, check out our data analysis of cases in India, and access our dedicated coronavirus page. Get the latest updates here.
2 May 12:00 • India Today • https://www.indiatoday.in/india/story/pm-modi-discusses-reforms-in-agriculture-sector-1673698-2020-05-02?utm_source=rssRating: 0.30
PM holds meeting to discuss ways to boost agriculture
Prime Minister Narendra Modi on Saturday held a meeting to deliberate on the issues being faced by Indian agricultural sector and the reforms required in a wide range of fields such as agriculture marketing, management of marketable surplus, access of farmers to institutional credit and freeing the farm sector from various restrictions with appropriate backing of the statute. He stressed upon the need for making strategic interventions in the existing marketing eco-system and bringing appropriate reforms in the context of rapid agricultural development. The meeting also deliberated on ways to making concessional credit flow possible to strengthen agriculture infrastructure, special Kisan Credit Card saturation drive for PM-Kisan beneficiaries and facilitating inter and intra-state trade of agriculture produces to ensure the fairest return to farmers. Developing e-NAM into a platform of platforms to enable e-commerce was also a topic of discussion. Apart from Home Minister Amit Shah, Finance Minister Nirmala Sitharaman and Agriculture Minister Narendra Singh Tomar and senior Agriculture Ministry officials participated in the meeting The meeting also discussed the possibilities of having a uniform statutory framework in the country to facilitate new ways for farming which will infuse capital and technology in an agrarian economy. The pros and cons of biotechnological developments in crops or enhancement of productivity and reduction in input costs came up for discussion at the meeting. The participated suggested that there is a need to make the Essential Commodities Act compatible with present times. This will help incentivise large-scale private investment in post-production agriculture infrastructure and also will have a positive effect on commodity derivative markets. Developing Brand India, creation of commodity-specific boards or councils and promotion of agri-clusters and contract farming are some of the interventions that were deliberated to boost Agriculture commodity export. The PM called for the dissemination of technology till the last mile and for making Indian farmers more competitive in the global value chain The use of technology in the agriculture sector is of paramount importance as it has the potential to unlock the entire value chain for the benefit of the farmers.
2 May 12:17 • BusinessLine • https://www.thehindubusinessline.com/economy/agri-business/modi-convenes-a-meeting-to-discuss-ways-to-boost-agriculture/article31489493.eceRating: 1.98
PM-led meet dwells on crop biotech, format for capital infusion in farming
In a meeting chaired by Prime Minister Narendra Modi today, the government deliberated on the possibility of a uniform statutory framework in the country for infusing capital and technology in the agriculture sector through newer ways. It also discussed pros and cons of biotechnology in the crop sector, along with fast-tracking reforms in agriculture marketing, according to a statement issued after the meeting. Developing the Electronic-National Agriculture Market (e-NaM) platform into a ‘platform of platforms’ for e-commerce trade was discussed in the meeting as well. Yesterday, the government added 200 new mandis to the e-NaM platform taking the total to 785. The meeting is part of the series of such deliberations that Prime Minister Modi is having on various sector in the aftermath of Covid-19 crisis. Sources said in today's meeting apart from the Prime Minister and PMO bureaucrats, Home Minister Amit Shah and Finance Minister Nirmala Sitharaman also participated. Both the Home Minister and Finance Minister have been part of earlier deliberations on other sectors as well. ALSO READ: Data story: The march of Covid-19 across India Officials in the know said that these sectoral meetings are doubling up as forums to discuss relief measures for various sectors and stakeholders. There will be some more sectoral meetings on Sunday as well. “There are no separate meetings to discuss the package. The needs of various sectors, small and medium enterprises, farmers, workers and others are being discussed in the relevant sectoral meetings. These discussions will find their way to any package that is announced,” said an official. Meanwhile, according to the statement, Prime Minister Modi in today's meeting on agriculture stressed on the need for management of marketable surplus, access of farmers to institutional credit. He also underlined the need for freeing agriculture sector of various restrictions with appropriate backing of statute. The focus of the deliberations was also on making strategic interventions in the existing marketing eco-system and bringing appropriate reforms. Issues related to cheap credit to agriculture infrastructure, special drives to saturate Kisan Credit Card penetration and PM-KISAN beneficiaries along with facilitating inter-state and intra-state trade in agriculture produce to ensure fairest return to farmer were some of the important areas covered. Agriculture accounts for 15 per cent of India's gross domestic product and is a source of livelihood for more than half of the country's 1.3 billion population. The government has maintained that the country's farm sector is functioning smoothly despite the Covid-19 lockdown and there will not be much impact on its growth in the current fiscal, unlike other sectors. ALSO READ: Jio-Facebook deal likely to boost adoption of crypto-blockchain in India The challenges of the Model Agricultural Land Leasing Act, 2016 and how to protect the interest of small and marginal farmers was discussed in detail. Ways to make the Essential Commodities Act compatible with present times so that large-scale private investment in post-production agriculture infrastructure is incentivized, and how it has a positive effect on commodity derivative markets, was also discussed. Developing ‘Brand India', creation of commodity specific boards/councils and promotion of agri-clusters or contract farming are some of the interventions that were deliberated to boost agriculture commodity export. The use of technology in the agriculture sector is of paramount importance as it has the potential to unlock the entire value chain for the benefit of farmers. Modi emphasised on the dissemination of technology till the last mile and making farmers more competitive in the global value chain. It was decided to further strengthen the role of Farmers Producer Organisations (FPOs) to bring vibrancy in agrarian economy, transparency in agriculture trade and enable maximum benefits to the farmers. Overall emphasis was on revisiting the existing laws governing market for better price realisation and freedom of choice to the farmers, the statement said. The growth rate of agriculture and allied sector's growth stood at 3.7 per cent during the 2019-20 fiscal.
2 May 14:17 • Business-Standard • https://www.business-standard.com/article/economy-policy/pm-led-meet-dwells-on-crop-biotech-format-for-capital-infusion-in-farming-120050200955_1.htmlRating: 0.30
Oil's Recovery Could Take Decades, Not Years
3 May 05:00
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3 articles
Weight: 0.25
Importance: 2.27
Age penalty: 0.11
Best date: 3 May 05:00
Average US: 20.233333333333334
Weighted average US: 28.088074769162645
Average GB: 0.19999999999999998
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Average IN: 4.2
Weighted average IN: 5.389016761773829
Oil's Recovery Could Take Decades, Not Years
Who knows what the new normal for oil demand will be once Covid-19 is firmly in the rear view mirror? Not me, that's for sure. But it is likely to be lower than it was in 2019, and it could be that way for many years. That’s going to create overcapacity throughout the oil supply chain and weigh on prices. While signs are emerging that we might have passed the worst of this historic oil demand rout, they’re very tentative. No one is predicting a swift recovery to where we were before the pandemic struck. Some, including Royal Dutch Shell Plc’s chief executive officer, Ben van Beurden, suggest that oil demand may never recover fully. Citigroup analysts don’t see jet fuel consumption back at last year’s level until well into 2022, and they’re at the optimistic end of the spectrum. Boeing’s CEO suggests passenger traffic might not get back to 2019 levels for three years, and even when the flying public does return, airlines will use their newest and most efficient planes to carry them, as my colleagues Liam Denning and Brooke Sutherland note here. So let’s make a guess about the loss in future demand, and let’s make a fairly small one. Let’s assume it’s about 5 million barrels a day. That doesn’t sound like too much; it’s about 5% of last year’s global oil demand. The drop in worldwide oil consumption in April has been put as high as 35 million barrels a day, and forecasts estimate 2020 oil use will be about 10 million barrels a day (or 10%) lower than in 2019. Sure, many of us will return to our pre-Covid-19 ways of life just as quickly as we can, but others will gladly give up the daily commute in favor of working from home more often — and employers may be happy to accommodate their wishes. After months of successful teleconferencing, those business trips that helped keep planes full of high-paying travelers may also come under more scrutiny. These changes may push up electricity use while they dampen fuel demand, but that will do little to help the oil industry, which is increasingly struggling to hold onto its fragments of the power-generation sector. Of course, we could collectively shrug off this latest crisis, just as we did the financial crash of 2008-09, which was consigned to history with barely a backward glance. But the global pandemic feels very different from the financial crisis. It hits at our physical well-being as well as our financial health, and it has forced us all, to one degree or another, to adopt new ways of living and working, whether we like them or not. The industry can survive a 5% drop in long-term demand, but it will find it much harder to thrive. A loss like that will cause structural overcapacity, right through the oil supply chain. There will be too many wells to get oil out of the ground, too many ships to move it, too many refineries to process it. Even before the pandemic, we were looking at a world where oil demand growth was increasingly concentrated in plastics, rather than fuels. That was already darkening the outlook for refiners in Europe and North America, which were also facing growing competition from newer plants in the Middle East and Asia that were more efficient and had beneficial long-term oil supply deals. A prolonged drop in demand will only make that competition stiffer, as more plants seek markets for their excess products. The upstream part of the business — the bit that’s concerned with finding the crude and getting it out of the ground — may face fewer problems. Oil fields naturally go into decline once they’re brought into operation, requiring producers to create new capacity elsewhere. Nowhere is that more obvious than in the U.S. shale patch. But the second U.S. shale boom was driven by, among other things, several years of robust growth in global oil demand. This led to most of the world’s oil producers, including almost all of the OPEC countries, pumping as hard as they could, and helped to keep oil prices at around $50 a barrel. But those OPEC producers are now cutting production by more than 20%, and non-OPEC countries are seeing their output fall by similar percentages. True, some of the wells that get shut will never be reopened, but most will sit waiting for their owners to see an opportunity to get them back to work. That overhang of spare production capacity will put an effective cap on oil prices, just as it did throughout the 1990s. No amount of Saudi-led supply management, or U.S. presidential bullying of foreign oil producers, will be able to remove that spare capacity. And once the current crisis is past, Riyadh may be less willing to play the role of swing producer, restraining its output while everybody else reopens the taps. Every time oil prices rise, producers will rush to use their idled capacity, undermining the recovery. After the oil-price slump of the mid-1980s, it took two decades for prices to return to their previous levels — longer if you build in the effects of inflation. This time the wait could be even more protracted. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. To contact the author of this story:Julian Lee at jlee1627@bloomberg.net To contact the editor responsible for this story:Nicole Torres at ntorres51@bloomberg.net
3 May 05:00 • Bloomberg.com • https://www.bloomberg.com/opinion/articles/2020-05-03/oil-s-recovery-from-coronavirus-could-take-decades-not-yearsRating: 4.04
Oil’s recovery could take decades, not years
Who knows what the new normal for oil demand will be once Covid-19 is firmly in the rear view mirror? Not me, that’s for sure. But it is likely to be lower than it was in 2019, and it could be that way for many years. That’s going to create overcapacity throughout the oil supply chain and weigh on prices. While signs are emerging that we might have passed the worst of this historic oil demand rout, they’re very tentative. No one is predicting a swift recovery to where we were before the pandemic struck. Some, including Royal Dutch Shell Plc’s chief executive officer, Ben van Beurden, suggest that oil demand may never recover fully. Citigroup analysts don’t see jet fuel consumption back at last year’s level until well into 2022, and they’re at the optimistic end of the spectrum. Boeing’s CEO suggests passenger traffic might not get back to 2019 levels for three years, and even when the flying public does return, airlines will use their newest and most efficient planes to carry them, as my colleagues Liam Denning and Brooke Sutherland note here. So let’s make a guess about the loss in future demand, and let’s make a fairly small one. Let’s assume it’s about 5 million barrels a day. That doesn’t sound like too much; it’s about 5% of last year’s global oil demand. The drop in worldwide oil consumption in April has been put as high as 35 million barrels a day, and forecasts estimate 2020 oil use will be about 10 million barrels a day (or 10%) lower than in 2019. Sure, many of us will return to our pre-Covid-19 ways of life just as quickly as we can, but others will gladly give up the daily commute in favor of working from home more often — and employers may be happy to accommodate their wishes. After months of successful teleconferencing, those business trips that helped keep planes full of high-paying travelers may also come under more scrutiny. These changes may push up electricity use while they dampen fuel demand, but that will do little to help the oil industry, which is increasingly struggling to hold onto its fragments of the power-generation sector. Of course, we could collectively shrug off this latest crisis, just as we did the financial crash of 2008-09, which was consigned to history with barely a backward glance. But the global pandemic feels very different from the financial crisis. It hits at our physical well-being as well as our financial health, and it has forced us all, to one degree or another, to adopt new ways of living and working, whether we like them or not. The industry can survive a 5% drop in long-term demand, but it will find it much harder to thrive. A loss like that will cause structural overcapacity, right through the oil supply chain. There will be too many wells to get oil out of the ground, too many ships to move it, too many refineries to process it. Even before the pandemic, we were looking at a world where oil demand growth was increasingly concentrated in plastics, rather than fuels. That was already darkening the outlook for refiners in Europe and North America, which were also facing growing competition from newer plants in the Middle East and Asia that were more efficient and had beneficial long-term oil supply deals. A prolonged drop in demand will only make that competition stiffer, as more plants seek markets for their excess products. The upstream part of the business — the bit that’s concerned with finding the crude and getting it out of the ground — may face fewer problems. Oil fields naturally go into decline once they’re brought into operation, requiring producers to create new capacity elsewhere. Nowhere is that more obvious than in the U.S. shale patch. But the second U.S. shale boom was driven by, among other things, several years of robust growth in global oil demand. This led to most of the world’s oil producers, including almost all of the OPEC countries, pumping as hard as they could, and helped to keep oil prices at around $50 a barrel. But those OPEC producers are now cutting production by more than 20%, and non-OPEC countries are seeing their output fall by similar percentages. True, some of the wells that get shut will never be reopened, but most will sit waiting for their owners to see an opportunity to get them back to work. That overhang of spare production capacity will put an effective cap on oil prices, just as it did throughout the 1990s. No amount of Saudi-led supply management, or U.S. presidential bullying of foreign oil producers, will be able to remove that spare capacity. And once the current crisis is past, Riyadh may be less willing to play the role of swing producer, restraining its output while everybody else reopens the taps. Every time oil prices rise, producers will rush to use their idled capacity, undermining the recovery. After the oil-price slump of the mid-1980s, it took two decades for prices to return to their previous levels — longer if you build in the effects of inflation. This time the wait could be even more protracted. © 2020 Bloomberg L.P.
3 May 11:38 • Moneyweb • https://www.moneyweb.co.za/news/markets/oils-recovery-could-take-decades-not-years/Rating: 1.42
Oil's Recovery Could Take Decades, Not Years
By Julian Lee (Bloomberg Opinion) — Who knows what the new normal for oil demand will be once Covid-19 is firmly in the rear view mirror? Not me, that’s for sure. But it is likely to be lower than it was in 2019, and it could be that way for many years. That’s going to create overcapacity throughout the oil supply chain and weigh on prices. While signs are emerging that we might have passed the worst of this historic oil demand rout, they’re very tentative. No one is predicting a swift recovery to where we were before the pandemic struck. Some, including Royal Dutch Shell Plc’s chief executive officer, Ben van Beurden, suggest that oil demand may never recover fully. Citigroup analysts don’t see jet fuel consumption back at last year’s level until well into 2022, and they’re at the optimistic end of the spectrum. Boeing’s CEO suggests passenger traffic might not get back to 2019 levels for three years, and even when the flying public does return, airlines will use their newest and most efficient planes to carry them, as my colleagues Liam Denning and Brooke Sutherland note here. So let’s make a guess about the loss in future demand, and let’s make a fairly small one. Let’s assume it’s about 5 million barrels a day. That doesn’t sound like too much; it’s about 5% of last year’s global oil demand. The drop in worldwide oil consumption in April has been put as high as 35 million barrels a day, and forecasts estimate 2020 oil use will be about 10 million barrels a day (or 10%) lower than in 2019. Sure, many of us will return to our pre-Covid-19 ways of life just as quickly as we can, but others will gladly give up the daily commute in favor of working from home more often — and employers may be happy to accommodate their wishes. After months of successful teleconferencing, those business trips that helped keep planes full of high-paying travelers may also come under more scrutiny. These changes may push up electricity use while they dampen fuel demand, but that will do little to help the oil industry, which is increasingly struggling to hold onto its fragments of the power-generation sector. Of course, we could collectively shrug off this latest crisis, just as we did the financial crash of 2008-09, which was consigned to history with barely a backward glance. But the global pandemic feels very different from the financial crisis. It hits at our physical well-being as well as our financial health, and it has forced us all, to one degree or another, to adopt new ways of living and working, whether we like them or not. The industry can survive a 5% drop in long-term demand, but it will find it much harder to thrive. A loss like that will cause structural overcapacity, right through the oil supply chain. There will be too many wells to get oil out of the ground, too many ships to move it, too many refineries to process it. Even before the pandemic, we were looking at a world where oil demand growth was increasingly concentrated in plastics, rather than fuels. That was already darkening the outlook for refiners in Europe and North America, which were also facing growing competition from newer plants in the Middle East and Asia that were more efficient and had beneficial long-term oil supply deals. A prolonged drop in demand will only make that competition stiffer, as more plants seek markets for their excess products. The upstream part of the business — the bit that’s concerned with finding the crude and getting it out of the ground — may face fewer problems. Oil fields naturally go into decline once they’re brought into operation, requiring producers to create new capacity elsewhere. Nowhere is that more obvious than in the U.S. shale patch. But the second U.S. shale boom was driven by, among other things, several years of robust growth in global oil demand. This led to most of the world’s oil producers, including almost all of the OPEC countries, pumping as hard as they could, and helped to keep oil prices at around $50 a barrel. But those OPEC producers are now cutting production by more than 20%, and non-OPEC countries are seeing their output fall by similar percentages. True, some of the wells that get shut will never be reopened, but most will sit waiting for their owners to see an opportunity to get them back to work. That overhang of spare production capacity will put an effective cap on oil prices, just as it did throughout the 1990s. No amount of Saudi-led supply management, or U.S. presidential bullying of foreign oil producers, will be able to remove that spare capacity. And once the current crisis is past, Riyadh may be less willing to play the role of swing producer, restraining its output while everybody else reopens the taps. Every time oil prices rise, producers will rush to use their idled capacity, undermining the recovery. After the oil-price slump of the mid-1980s, it took two decades for prices to return to their previous levels — longer if you build in the effects of inflation. This time the wait could be even more protracted. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies. ©2020 Bloomberg L.P. Bloomberg.com
3 May 06:02 • Financial Post • https://business.financialpost.com/pmn/business-pmn/oils-recovery-could-take-decades-not-yearsRating: 0.94
Temperatures fall 7 to 10 degrees below average in parts of Queensland
3 May 04:57
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Temperatures fall 7 to 10 degrees below average in parts of Queensland
The cold snap affecting much of Queensland is expected to hang around for another morning or two, with the mercury predicted to sink close to or even below freezing in some parts on Monday. The Sunshine Coast was seven degrees below the May average overnight while the Wide Bay region experienced conditions from 7 to 10 degrees below average. Thangool on the Capricornia coast, about 120 kilometres south of Rockhampton, was the coolest spot in the state overnight, at just 3.6 degrees. On Saturday morning, the temperature in Oakey, west of Toowoomba, had fallen to minus 0.4 degrees and Kingaroy, north-west of Brisbane, broke the freezing barrier with minus 0.1. Weather bureau senior meteorologist Gabriel Branescu said the weather should warm up from Tuesday and Wednesday in coastal areas. He said inland parts should get relief from Thursday to Saturday but not before a return to possible freezing temperatures near Stanthorpe and the Darling Downs on Monday. "We have a slow-moving high-pressure system in the Great Australian Bight directing the really dry and cool air mass directly across the state," he said. “Temperatures will start to moderate from Tuesday and Wednesday next week as the winds will tend more easterly and bring in more moisture from the ocean. "We’re expecting the minimum temperatures to stay about 13 or 14 degrees in Brisbane and the Sunshine Coast, around 11 or 12 degrees in the Gold Coast area. "Cool temperatures will remain inland for another two or three mornings until the warmer and more moist air mass will make its way to the Northern Territory border later next week." During the early hours of Sunday, Kingaroy, in the Wide Bay and Burnett region, hit a low of 4 degrees while Gayndah and Maryborough reached 5.6. In the south-eastern corner, Greenbank in Logan recorded just 5.9 degrees overnight, Beaudesert experienced 6.8 and the Sunshine Coast Airport dropped to 7. In the Darling Downs and Granite Belt, Applethorpe recorded 7.7 degrees, Dalby hit 6, Miles got to 7.3 and Oakey reached 6.9. Across the state's centre, Roma, Charleville and Rolleston Airport had a low of 5.2 degrees, Blackall experienced 5.7, Hughenden dropped to 6.6 and Richmond recorded 6.9. Meanwhile, Woolshed in north Queensland recorded 8.3 degrees and the Mackay Racecourse on the central Queensland coast dropped to 8.2 overnight. Mr Branescu said Monday would bring another chilly start to the day. "Cooler temperatures are here to stay for a few more nights, especially on Monday morning, we expect temperatures to drop even below zero around the Stanthorpe and Darling Downs area … where the minimum temperatures can drop to minus one", he said. "Roma may also see temperatures dropping to near zero. So large areas of frost in the Darling Downs, Maranoa and Warrego for another morning or two."
3 May 04:57 • The Age • https://www.theage.com.au/national/queensland/temperatures-fall-7-to-10-degrees-below-average-in-parts-of-queensland-20200503-p54pcz.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
Temperatures fall 7 to 10 degrees below average in parts of Queensland
The cold snap affecting much of Queensland is expected to hang around for another morning or two, with the mercury predicted to sink close to or even below freezing in some parts on Monday. The Sunshine Coast was seven degrees below the May average overnight while the Wide Bay region experienced conditions from 7 to 10 degrees below average. Thangool on the Capricornia coast, about 120 kilometres south of Rockhampton, was the coolest spot in the state overnight, at just 3.6 degrees. On Saturday morning, the temperature in Oakey, west of Toowoomba, had fallen to minus 0.4 degrees and Kingaroy, north-west of Brisbane, broke the freezing barrier with minus 0.1. Weather bureau senior meteorologist Gabriel Branescu said the weather should warm up from Tuesday and Wednesday in coastal areas. He said inland parts should get relief from Thursday to Saturday but not before a return to possible freezing temperatures near Stanthorpe and the Darling Downs on Monday. "We have a slow-moving high-pressure system in the Great Australian Bight directing the really dry and cool air mass directly across the state," he said. “Temperatures will start to moderate from Tuesday and Wednesday next week as the winds will tend more easterly and bring in more moisture from the ocean. "We’re expecting the minimum temperatures to stay about 13 or 14 degrees in Brisbane and the Sunshine Coast, around 11 or 12 degrees in the Gold Coast area. "Cool temperatures will remain inland for another two or three mornings until the warmer and more moist air mass will make its way to the Northern Territory border later next week." During the early hours of Sunday, Kingaroy, in the Wide Bay and Burnett region, hit a low of 4 degrees while Gayndah and Maryborough reached 5.6. In the south-eastern corner, Greenbank in Logan recorded just 5.9 degrees overnight, Beaudesert experienced 6.8 and the Sunshine Coast Airport dropped to 7. In the Darling Downs and Granite Belt, Applethorpe recorded 7.7 degrees, Dalby hit 6, Miles got to 7.3 and Oakey reached 6.9. Across the state's centre, Roma, Charleville and Rolleston Airport had a low of 5.2 degrees, Blackall experienced 5.7, Hughenden dropped to 6.6 and Richmond recorded 6.9. Meanwhile, Woolshed in north Queensland recorded 8.3 degrees and the Mackay Racecourse on the central Queensland coast dropped to 8.2 overnight. Mr Branescu said Monday would bring another chilly start to the day. "Cooler temperatures are here to stay for a few more nights, especially on Monday morning, we expect temperatures to drop even below zero around the Stanthorpe and Darling Downs area … where the minimum temperatures can drop to minus one", he said. "Roma may also see temperatures dropping to near zero. So large areas of frost in the Darling Downs, Maranoa and Warrego for another morning or two."
3 May 04:57 • Brisbane Times • https://www.brisbanetimes.com.au/national/queensland/temperatures-fall-7-to-10-degrees-below-average-in-parts-of-queensland-20200503-p54pcz.html?ref=rss&utm_medium=rss&utm_source=rss_national_queenslandRating: 0.86
Temperatures fall 7 to 10 degrees below average in parts of Queensland
The cold snap affecting much of Queensland is expected to hang around for another morning or two, with the mercury predicted to sink close to or even below freezing in some parts on Monday. The Sunshine Coast was seven degrees below the May average overnight while the Wide Bay region experienced conditions from 7 to 10 degrees below average. Thangool on the Capricornia coast, about 120 kilometres south of Rockhampton, was the coolest spot in the state overnight, at just 3.6 degrees. On Saturday morning, the temperature in Oakey, west of Toowoomba, had fallen to minus 0.4 degrees and Kingaroy, north-west of Brisbane, broke the freezing barrier with minus 0.1. Weather bureau senior meteorologist Gabriel Branescu said the weather should warm up from Tuesday and Wednesday in coastal areas. He said inland parts should get relief from Thursday to Saturday but not before a return to possible freezing temperatures near Stanthorpe and the Darling Downs on Monday. "We have a slow-moving high-pressure system in the Great Australian Bight directing the really dry and cool air mass directly across the state," he said. “Temperatures will start to moderate from Tuesday and Wednesday next week as the winds will tend more easterly and bring in more moisture from the ocean. "We’re expecting the minimum temperatures to stay about 13 or 14 degrees in Brisbane and the Sunshine Coast, around 11 or 12 degrees in the Gold Coast area. "Cool temperatures will remain inland for another two or three mornings until the warmer and more moist air mass will make its way to the Northern Territory border later next week." During the early hours of Sunday, Kingaroy, in the Wide Bay and Burnett region, hit a low of 4 degrees while Gayndah and Maryborough reached 5.6. In the south-eastern corner, Greenbank in Logan recorded just 5.9 degrees overnight, Beaudesert experienced 6.8 and the Sunshine Coast Airport dropped to 7. In the Darling Downs and Granite Belt, Applethorpe recorded 7.7 degrees, Dalby hit 6, Miles got to 7.3 and Oakey reached 6.9. Across the state's centre, Roma, Charleville and Rolleston Airport had a low of 5.2 degrees, Blackall experienced 5.7, Hughenden dropped to 6.6 and Richmond recorded 6.9. Meanwhile, Woolshed in north Queensland recorded 8.3 degrees and the Mackay Racecourse on the central Queensland coast dropped to 8.2 overnight. Mr Branescu said Monday would bring another chilly start to the day. "Cooler temperatures are here to stay for a few more nights, especially on Monday morning, we expect temperatures to drop even below zero around the Stanthorpe and Darling Downs area … where the minimum temperatures can drop to minus one", he said. "Roma may also see temperatures dropping to near zero. So large areas of frost in the Darling Downs, Maranoa and Warrego for another morning or two."
3 May 04:57 • WAtoday • https://www.watoday.com.au/national/queensland/temperatures-fall-7-to-10-degrees-below-average-in-parts-of-queensland-20200503-p54pcz.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
‘World has changed,' Buffett says, as Berkshire sells all holdings in largest U.S. airlines
3 May 17:56
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9 articles
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‘World has changed,' Buffett says, as Berkshire sells all holdings in largest U.S. airlines
Berkshire Hathaway Inc. sold its entire stakes in the four largest U.S. airlines in April, chairman Warren Buffett said Saturday at the company’s annual meeting, saying “the world has changed” for the aviation industry. The conglomerate had held sizeable positions in the airlines, including an 11-per-cent stake in Delta Air Lines, 10 per cent of American Airlines Co., 10 per cent of Southwest Airlines Co. and 9 per cent of United Airlines at the end of 2019, according to its annual report and company filings. The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years. Airline stocks have been hard hit by the near-collapse of U.S. travel demand amid the coronavirus pandemic. U.S. airlines are cutting hundreds of thousands of flights and parking thousands of planes. U.S. travel demand has fallen by about 95 per cent and there is no clear timetable for passengers to return to flights at precrisis levels. Mr. Buffett said the airline industry’s outlook changed rapidly. “We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss,” Mr. Buffett said. “We will not fund a company ... where we think that it is going to chew up money in the future.” Berkshire disclosed on April 3 it had sold about 18 per cent of its Delta stake and 4 per cent of its Southwest shares. Mr. Buffett said Berkshire had invested between US$7-billion and US$8-billion amassing stakes in the four airlines including American Airlines Group Inc. “We did not take out anything like $7- or $8-billion and that was my mistake,” Mr. Buffett said at the company’s annual meeting which was livestreamed. “I am the one who made the decision.” Southwest, American and United declined comment. Delta said in a statement it was aware of the sale and has “tremendous respect for Mr. Buffett and the Berkshire team.” The airline added it remains “confident that the strengths that are core to Delta’s business – our people, our brand, our network and our operational reliability – will endure and position Delta to succeed.” Mr. Buffett said he previously considered investing in additional airlines. “It is a blow to have essentially your demand dry up ... It is basically that we shut off air travel in this country,” Mr. Buffett added. Mr. Buffett previously expressed grim sentiments about the financial outlook for airlines. He did invest in USAir in 1989. “If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favour by shooting Orville down,” Mr. Buffett wrote in his 2007 annual letter. “Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it.”
3 May 17:56 • The Globe and Mail • https://www.theglobeandmail.com/business/international-business/article-berkshire-sells-entire-stakes-in-us-airlines-world-has-changed/Rating: 2.18
Warren Buffett Dumps Berkshire Hathaway's Airline Stocks, but I'm Not Selling
Just a few months ago, Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) was one of the largest shareholders of all four top U.S. airlines: American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), and United Airlines (NASDAQ:UAL). Warren Buffett's conglomerate owned stakes of roughly 10% in all four airline stocks. As of the end of 2019, Delta, Southwest, and United all ranked among Berkshire Hathaway's top 15 equity investments. However, the COVID-19 pandemic has caused air traffic to come screeching to a halt. As a result, airlines have been reporting losses for the first quarter and expect a tidal wave of red ink starting in the second quarter. Unsurprisingly, airline stocks have plunged since mid-February. This market crash gave Buffett an opportunity to increase Berkshire Hathaway's airline holdings at lower prices than what it had a paid a few years ago. But instead, Buffett chose to sell all of Berkshire's airline holdings at a loss, as he revealed on Saturday at the company's annual meeting. Berkshire Hathaway first started investing in airline stocks in the third quarter of 2016. At the time, one of the conglomerate's two portfolio managers -- either Todd Combs or Ted Weschler -- bought shares of American Airlines, Delta Air Lines, and United Airlines. Soon thereafter, the Oracle of Omaha himself got involved. In the fourth quarter, he added Southwest Airlines shares to Berkshire Hathaway's portfolio. And over the next three years, he significantly increased Berkshire's holdings of all four airlines. Buffett's decision to get involved with airline stocks a few years ago was always a bit of a head-scratcher. For years, he had been warning followers about the danger of investing in airlines. Over that span, he frequently described airlines as capital-intensive commodity businesses that were doomed to destroy investors' capital. Presumably, Buffett changed his mind sometime around 2016. He was probably impressed with a solid streak of significant free cash flow generation at Delta, Southwest, and United. This seemed to indicate that the airline industry had matured; rather than fighting for market share at the expense of profits, airlines were focusing on generating strong returns for investors. That said, Berkshire Hathaway also opened a big stake in American Airlines, which was barely generating any free cash flow in the midst of an industry boom, due to extremely high capex. Investors first got a hint that Buffett was selling airline stocks in early April, when regulatory filings showed that Berkshire Hathaway had sold some of its shares in Delta and Southwest. This brought the conglomerate's stakes in those two carriers below 10%, at which point it was no longer obliged to file prompt notices of any further sales (or purchases) of those stocks. Some investors speculated that Berkshire Hathaway may have wanted to reduce its stakes to less than 10% due to language in the CARES Act that could have prevented major holders of airline stocks from buying additional shares in the near future. To put it bluntly, they were hoping that the stock sales were just the first move in a bigger plan to try to buy either Delta or Southwest outright. This idea wasn't totally implausible. Buying an airline like Delta Air Lines would have allowed Berkshire Hathaway to put a lot of cash to work at once. Moreover, with Berkshire's backing, Delta would have had the ability to make big investments that rivals couldn't afford, putting it in position to exit the crisis in a dominant position. However, as I noted in late March, Buffett's investment philosophy prioritizes owning high-quality companies. Clearly, no airline can be considered a high-quality business right now. Sure enough, in his remarks at the annual meeting, Buffett said that he had made a mistake with respect to the airlines and chose to make a clean break by selling all of Berkshire Hathaway's airline stocks. While I wasn't surprised by Buffett's decision to exit Berkshire's airline investments, I don't plan to follow suit. At 34 years of age, I have plenty of time to be patient, and I expect higher-quality airline stocks like Southwest and Delta to make a full recovery in the years ahead. Buffett appears to be worried that airline traffic will remain below 2019 levels for many years to come. I am significantly more optimistic on this score. To be sure, even if a vaccine becomes available sometime next year, air traffic is likely to remain well below 2019 levels in 2021, and possibly even 2022. But by 2023 or 2024 at the latest, I expect the global economy to return to health, driving a rebound for the airline industry as individuals and businesses make up for all the travel they are missing out on now. Furthermore, I think Buffett is underestimating airlines' ability to make money during a period of lower demand. While it's impossible for airlines to avoid massive losses when demand is down more than 90% from normal levels, they have plenty of tools to adapt to a world where travel demand is 10% or 20% lower than previous levels (which could be the case in the second half of 2021 or 2022). Older planes that are more expensive to operate can be retired. Labor costs can be reduced through attrition, buyouts, and reduced overtime work. Less-profitable flights can be cut while leaving the most lucrative routes intact. Thus, I think investors have overreacted by knocking more than $20 billion off of Delta's market cap and about $15 billion off of Southwest's market cap since February. I boosted my stakes in both airlines last month. If airline stocks crash this month due to the news about Berkshire Hathaway's sales, I will probably continue buying.
3 May 19:07 • The Motley Fool • https://www.fool.com/investing/2020/05/03/warren-buffett-dumps-berkshire-airline-stocks.aspxRating: 0.30
Berkshire sells entire stakes in US airlines: Warren Buffett
WASHINGTON: Berkshire Hathaway sold its entire stakes in the four largest US airlines in April, chairman Warren Buffett said on Saturday (May 2) at the company's annual meeting, saying "the world has changed" for the aviation industry. The conglomerate had held sizeable positions in the airlines, including an 11 per cent stake in Delta Air Lines, 10 per cent of American Airlines, 10 per cent of Southwest Airlines and 9 per cent of United Airlines at the end of 2019, according to its annual report and company filings. The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years. Airline stocks have been hard hit by the near-collapse in US travel demand amid the coronavirus pandemic. US airlines are cutting hundreds of thousands of flights, parking thousands of planes as US travel demand has fallen by about 95 per cent and there is no clear timetable for passengers to return to flights at pre-crisis levels. Buffett said the airline industry's outlook rapidly changed. "We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss," Buffett said. "We will not fund a company that - where we think that it is going to chew up money in the future." Berkshire disclosed on Apr 3 it had sold about 18 per cent of its Delta stake and 4 per cent of its Southwest shares. Buffett said Berkshire had invested around US$7 billion or US$8 billion amassing stakes in the four airlines including American Airlines Group. "We did not take out anything like US$7 or US$8 billion and that was my mistake," Buffett said at the company's annual meeting which was livestreamed. "I am the one who made the decision." Southwest, American and United declined comment. Delta said in a statement it was aware of the sale and has "tremendous respect for Mr. Buffett and the Berkshire team." The airline added it remains "confident that the strengths that are core to Delta’s business – our people, our brand, our network and our operational reliability – will endure and position Delta to succeed." Buffett said he previously considered investing in additional airlines. "It is a blow to have essentially your demand dry up ... It is basically that we shut off air travel in this country," Buffett added. Buffett previously expressed grim sentiments about the financial outlook for airlines. He did invest in USAir in 1989. "If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favour by shooting Orville down," Buffett wrote in his 2007 annual letter. "Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it." Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram
3 May 08:35 • CNA • https://www.channelnewsasia.com/news/business/berkshire-sells-stakes-shares-us-airlines-warren-buffett-12697546Rating: 3.25
Berkshire sells entire stakes in U.S. airlines: Buffett
(Reuters) - Berkshire Hathaway Inc (BRKa.N) sold its entire stakes in the four largest U.S. airlines in April, Chairman Warren Buffett said Saturday at the company’s annual meeting, saying “the world has changed” for the aviation industry. The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines (DAL.N), 10% of American Airlines Co (AAL.O), 10% of Southwest Airlines Co (LUV.N) and 9% of United Airlines (UAL.O) at the end of 2019, according to its annual report and company filings. The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years. Airline stocks have been hard hit by the near collapse U.S. travel demand amid the coronavirus pandemic. U.S. airlines are cutting hundreds of thousands of flights, parking thousands of planes as U.S. travel demand has fallen by about 95% and there is no clear timetable for passengers to return to flights at pre-crisis levels. Buffett said the airline industry’s outlook rapidly changed. “We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss,” Buffett said. “We will not fund a company that — where we think that it is going to chew up money in the future.” Berkshire disclosed on April 3 it had sold about 18% of its Delta stake and 4% of its Southwest shares. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc (AAL.O). “We did not take out anything like $7 or $8 billion and that was my mistake,” Buffett said at the company’s annual meeting which was livestreamed. “I am the one who made the decision.” Southwest, American and United declined comment. Delta said in a statement it was aware of the sale and has “tremendous respect for Mr. Buffett and the Berkshire team.” The airline added it remains “confident that the strengths that are core to Delta’s business – our people, our brand, our network and our operational reliability – will endure and position Delta to succeed.” Buffett said he previously considered investing in additional airlines. “It is a blow to have essentially your demand dry up.... It is basically that we shut off air travel in this country,” Buffett added. Buffett previously expressed grim sentiments about the financial outlook for airlines. He did invest in USAir in 1989. “If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down,” Buffett wrote in his 2007 annual letter. “Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it.”
3 May 06:52 • Reuters • https://www.reuters.com/article/us-berkshire-airlines-idUSKBN22E0VPRating: 4.04
Berkshire sells entire stakes in US airlines
New York: Berkshire Hathaway Inc sold its entire stakes in the four largest U.S. airlines in April, Chairman Warren Buffett said Saturday at the company’s annual meeting, saying “the world has changed” for the aviation industry. The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines, 10% of American Airlines Co, 10% of Southwest Airlines Co and 9% of United Airlines at the end of 2019, according to its annual report and company filings. The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years. Airline stocks have been hard hit by the near collapse U.S. travel demand amid the coronavirus pandemic. US airlines are cutting hundreds of thousands of flights, parking thousands of planes as U.S. travel demand has fallen by about 95% and there is no clear timetable for passengers to return to flights at pre-crisis levels. Buffett said the airline industry’s outlook rapidly changed. “We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss,” Buffett said. “We will not fund a company that -- where we think that it is going to chew up money in the future.” Berkshire disclosed on April 3 it had sold about 18% of its Delta stake and 4% of its Southwest shares. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc. “We did not take out anything like $7 or $8 billion and that was my mistake,” Buffett said at the company’s annual meeting which was livestreamed. “I am the one who made the decision.” Southwest, American and United declined comment. Delta said in a statement it was aware of the sale and has “tremendous respect for Mr. Buffett and the Berkshire team.” The airline added it remains “confident that the strengths that are core to Delta’s business our people, our brand, our network and our operational reliability will endure and position Delta to succeed.” Buffett said he previously considered investing in additional airlines. “It is a blow to have essentially your demand dry up.... It is basically that we shut off air travel in this country,” Buffett added. Buffett previously expressed grim sentiments about the financial outlook for airlines. He did invest in USAir in 1989. “If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down,” Buffett wrote in his 2007 annual letter. “Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it.”
3 May 04:21 • Gulf News • https://gulfnews.com/business/aviation/berkshire-sells-entire-stakes-in-us-airlines-1.71300456Rating: 3.21
Warren Buffett's Berkshire Hathaway sells entire stakes in 4 largest US airlines
The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years Berkshire Hathaway Inc sold its entire stakes in the four largest US airlines in April, Chairman Warren Buffett said Saturday at the company's annual meeting, saying "the world has changed" for the aviation industry. The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines, 10% of American Airlines Co, 10% of Southwest Airlines Co and 9% of United Airlines at the end of 2019, according to its annual report and company filings. The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years. Airline stocks have been hard hit by the near collapse U.S. travel demand amid the coronavirus pandemic. U.S. airlines are cutting hundreds of thousands of flights, parking thousands of planes as U.S. travel demand has fallen by about 95% and there is no clear timetable for passengers to return to flights at pre-crisis levels. Buffett said the airline industry's outlook rapidly changed. "We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss," Buffett said. "We will not fund a company that - where we think that it is going to chew up money in the future." Berkshire disclosed on April 3 it had sold about 18% of its Delta stake and 4% of its Southwest shares. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc (AAL.O). "We did not take out anything like $7 or $8 billion and that was my mistake," Buffett said at the company's annual meeting which was livestreamed. "I am the one who made the decision." Southwest, American and United declined comment. Delta said in a statement it was aware of the sale and has "tremendous respect for Mr. Buffett and the Berkshire team." The airline added it remains "confident that the strengths that are core to Delta's business - our people, our brand, our network and our operational reliability - will endure and position Delta to succeed." Buffett said he previously considered investing in additional airlines. "It is a blow to have essentially your demand dry up.... It is basically that we shut off air travel in this country," Buffett added. Also read: Coronavirus impact: Warren Buffett's Berkshire posts record net loss of $50 billion in March quarter
3 May 04:02 • Business Today • https://www.businesstoday.in/current/corporate/warren-buffett-berkshire-hathaway-sells-entire-stakes-in-4-largest-us-airlines/story/402713.htmlRating: 2.10
Warren Buffett announces Berkshire's decision to sell entire stake in US airlines
Berkshire Hathaway Inc sold its entire stakes in the four largest US airlines in April, Chairman Warren Buffett said Saturday at the company's annual meeting, saying "the world has changed" for the aviation industry. The conglomerate had held sizeable positions in the airlines, including an 11 per cent stake in Delta Air Lines, 10 per cent of American Airlines Co, 10 per cent of Southwest Airlines Co and 9 per cent of United Airlines at the end of 2019, according to its annual report and company filings. The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years. Airline stocks have been hard hit by the near collapse US travel demand amid the coronavirus pandemic. US airlines are cutting hundreds of thousands of flights, parking thousands of planes as US travel demand has fallen by about 95 per cent and there is no clear timetable for passengers to return to flights at pre-crisis levels. Buffett said the airline industry's outlook rapidly changed. "We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss," Buffett said. "We will not fund a company that - where we think that it is going to chew up money in the future." Berkshire disclosed on April 3 it had sold about 18 per cent of its Delta stake and 4 per cent of its Southwest shares. Buffett said Berkshire had invested around USD 7 billion or USD 8 billion amassing stakes in the four airlines including American Airlines Group Inc. "We did not take out anything like USD 7 or USD 8 billion and that was my mistake," Buffett said at the company's annual meeting which was live-streamed. "I am the one who made the decision." Southwest, American and United declined to comment. Delta said in a statement it was aware of the sale and has "tremendous respect for Mr. Buffett and the Berkshire team." The airline added it remains "confident that the strengths that are core to Delta's business - our people, our brand, our network and our operational reliability - will endure and position Delta to succeed." Buffett said he previously considered investing in additional airlines. "It is a blow to have essentially your demand dry up.... It is basically that we shut off air travel in this country," Buffett added. Buffett previously expressed grim sentiments about the financial outlook for airlines. He did invest in US Air in 1989. "If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down," Buffett wrote in his 2007 annual letter. "Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it."
3 May 03:28 • India Today • https://www.indiatoday.in/business/story/warren-buffett-announces-berkshire-s-decision-to-sell-entire-stake-in-us-airlines-1673823-2020-05-03Rating: 0.30
Berkshire sells entire stakes in U.S airlines - Buffett
Berkshire Hathaway Inc sold its entire stakes in the four largest U.S. airlines in April, Chairman Warren Buffett said Saturday at the company’s annual meeting, saying “the world has changed” for the aviation industry. The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines, 10% of American Airlines Co, 10% of Southwest Airlines Co and 9% of United Airlines at the end of 2019, according to its annual report and company filings. The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years. Airline stocks have been hard hit by the near collapse U.S. travel demand amid the coronavirus pandemic. U.S. airlines are cutting hundreds of thousands of flights, parking thousands of planes as U.S. travel demand has fallen by about 95% and there is no clear timetable for passengers to return to flights at pre-crisis levels. Buffett said the airline industry’s outlook rapidly changed. “We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss,” Buffett said. “We will not fund a company that — where we think that it is going to chew up money in the future.” Berkshire disclosed on April 3 it had sold about 18% of its Delta stake and 4% of its Southwest shares. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc. “We did not take out anything like $7 or $8 billion and that was my mistake,” Buffett said at the company’s annual meeting which was livestreamed. “I am the one who made the decision.” Southwest, American and United declined comment. Delta said in a statement it was aware of the sale and has “tremendous respect for Mr. Buffett and the Berkshire team.” The airline added it remains “confident that the strengths that are core to Delta’s business – our people, our brand, our network and our operational reliability – will endure and position Delta to succeed.” Buffett said he previously considered investing in additional airlines. “It is a blow to have essentially your demand dry up…. It is basically that we shut off air travel in this country,” Buffett added. Buffett previously expressed grim sentiments about the financial outlook for airlines. He did invest in USAir in 1989. “If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down,” Buffett wrote in his 2007 annual letter. “Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it.” (Reporting by David Shepardson and Jonathan Stempel; Editing by Cynthia Osterman)
3 May 01:46 • Financial Post • https://business.financialpost.com/pmn/business-pmn/berkshire-sells-entire-stakes-in-u-s-airlines-buffett-4Rating: 0.94
Berkshire sells entire stakes in U.S. airlines: Buffett
By David Shepardson and Jonathan Stempel (Reuters) - Berkshire Hathaway Inc (N:BRKa) sold its entire stakes in the four largest U.S. airlines in April, Chairman Warren Buffett said Saturday at the company's annual meeting, saying "the world has changed" for the aviation industry. The conglomerate had held sizeable positions in the airlines, including an 11% stake in Delta Air Lines (N:DAL), 10% of American Airlines Co (O:AAL), 10% of Southwest Airlines Co (N:LUV) and 9% of United Airlines (O:UAL) at the end of 2019, according to its annual report and company filings. The conglomerate was one of the largest individual holders in the four airlines and in 2016 disclosed it had begun investing in the four carriers after avoiding the sector for years. Airline stocks have been hard hit by the near collapse U.S. travel demand amid the coronavirus pandemic. U.S. airlines are cutting hundreds of thousands of flights, parking thousands of planes as U.S. travel demand has fallen by about 95% and there is no clear timetable for passengers to return to flights at pre-crisis levels. Buffett said the airline industry's outlook rapidly changed. "We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss," Buffett said. "We will not fund a company that -- where we think that it is going to chew up money in the future." Berkshire disclosed on April 3 it had sold about 18% of its Delta stake and 4% of its Southwest shares. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc (O:AAL). "We did not take out anything like $7 or $8 billion and that was my mistake," Buffett said at the company's annual meeting which was livestreamed. "I am the one who made the decision." Southwest, American and United declined comment. Delta said in a statement it was aware of the sale and has "tremendous respect for Mr. Buffett and the Berkshire team." The airline added it remains "confident that the strengths that are core to Delta’s business – our people, our brand, our network and our operational reliability – will endure and position Delta to succeed." Buffett said he previously considered investing in additional airlines. "It is a blow to have essentially your demand dry up.... It is basically that we shut off air travel in this country," Buffett added. Buffett previously expressed grim sentiments about the financial outlook for airlines. He did invest in USAir in 1989. "If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down," Buffett wrote in his 2007 annual letter. "Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it."
3 May 00:00 • Investing.com • https://www.investing.com/news/stock-market-news/berkshire-sells-entire-stakes-in-us-airlines-buffett-2158833Rating: 0.30
The world's oldest central bank hits legal roadblock in economic crisis fight
3 May 23:37
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The world's oldest central bank hits legal roadblock in economic crisis fight
Sweden's central bank may need to have some of its age-old laws changed if it's to act on a pledge to do "whatever it takes" to save the economy. The Riksbank's 352-year history gives it the distinction of being the world's oldest central bank. But the legislation governing it has yet to catch up with the kind of policy it needs to deliver to address the crisis triggered by COVID-19. Specifically, the Riksbank doesn't have the legal right to buy bonds issued by companies, even though it's made clear it's ready to do so as part of a recent package of emergency measures. "The intention of the current Riksbank Act doesn't allow the bank to make outright purchases of corporate bonds or other private securities on the primary or secondary markets," said Niklas Schullerqvist, secretary to the parliamentary committee charged with overhauling the bank's policy framework. So far the Stockholm-based central bank has bought 5.6 billion kronor ($890 million) of corporate commercial paper as part of an emergency quantitative-easing plan. But it's refrained from buying corporate bonds - an important source of financing in the biggest Nordic economy - despite repeated assurances it will so. Schullerqvist says the Riksbank needs to consider European Union legislation on state aid as corporate bond purchases "may be considered supporting some specific parts of the economy." Riksbank spokesman Tomas Lundberg said the bank's legal team is looking into the matter, but wouldn't comment further because "it's an ongoing process." In a recent interview with Bloomberg, Riksbank Governor Stefan Ingves said purchases of investment-grade bonds are "certainly on our agenda." He also said "there are some legal issues when it comes to buying into the primary market." Sweden's primary bond market is a vital source of funding for the country's businesses. And with record-low borrowing costs and a growing investor base flush with cash, the market's growth has increasingly shaped Sweden's economy. But the market has been turned on its head since the COVID-19 crisis hit. Investors panicked and tried to redeem their cash, prompting 35 fixed-income funds to shut their doors. Even so, clients withdrew record quantities of cash and a spike in yields locked out all but a handful of top rated borrowers. In April, Sweden's syndicated public bond market only saw corporate issuance from investment-grade companies such as Volvo, Industrivarden and Scania, as well as state-owned entities including Jernhusen, Akademiska Hus and Sveaskog. The crisis that's hit Sweden's corporate bond market has drawn pleas from the investor community for the Riksbank to intervene before it's too late. The Riksbank "should support new money rather than being very active in the secondary market," said Daniel Sachs, chief executive at credit manager Proventus Capital Management AB. Magnus Nilsson, founding partner of Nordic Cross Asset Management, says that a "first step" toward making it easier for struggling businesses to access funding "would be for the Riksbank to get involved in the primary market for investment grade bonds." Bloomberg
3 May 23:37 • The Age • https://www.theage.com.au/business/banking-and-finance/the-world-s-oldest-central-bank-hits-legal-roadblock-in-coronavirus-fight-20200504-p54pit.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
The world's oldest central bank hits legal roadblock in economic crisis fight
Sweden's central bank may need to have some of its age-old laws changed if it's to act on a pledge to do "whatever it takes" to save the economy. The Riksbank's 352-year history gives it the distinction of being the world's oldest central bank. But the legislation governing it has yet to catch up with the kind of policy it needs to deliver to address the crisis triggered by COVID-19. Specifically, the Riksbank doesn't have the legal right to buy bonds issued by companies, even though it's made clear it's ready to do so as part of a recent package of emergency measures. "The intention of the current Riksbank Act doesn't allow the bank to make outright purchases of corporate bonds or other private securities on the primary or secondary markets," said Niklas Schullerqvist, secretary to the parliamentary committee charged with overhauling the bank's policy framework. So far the Stockholm-based central bank has bought 5.6 billion kronor ($890 million) of corporate commercial paper as part of an emergency quantitative-easing plan. But it's refrained from buying corporate bonds - an important source of financing in the biggest Nordic economy - despite repeated assurances it will so. Schullerqvist says the Riksbank needs to consider European Union legislation on state aid as corporate bond purchases "may be considered supporting some specific parts of the economy." Riksbank spokesman Tomas Lundberg said the bank's legal team is looking into the matter, but wouldn't comment further because "it's an ongoing process." In a recent interview with Bloomberg, Riksbank Governor Stefan Ingves said purchases of investment-grade bonds are "certainly on our agenda." He also said "there are some legal issues when it comes to buying into the primary market." Sweden's primary bond market is a vital source of funding for the country's businesses. And with record-low borrowing costs and a growing investor base flush with cash, the market's growth has increasingly shaped Sweden's economy. But the market has been turned on its head since the COVID-19 crisis hit. Investors panicked and tried to redeem their cash, prompting 35 fixed-income funds to shut their doors. Even so, clients withdrew record quantities of cash and a spike in yields locked out all but a handful of top rated borrowers. In April, Sweden's syndicated public bond market only saw corporate issuance from investment-grade companies such as Volvo, Industrivarden and Scania, as well as state-owned entities including Jernhusen, Akademiska Hus and Sveaskog. The crisis that's hit Sweden's corporate bond market has drawn pleas from the investor community for the Riksbank to intervene before it's too late. The Riksbank "should support new money rather than being very active in the secondary market," said Daniel Sachs, chief executive at credit manager Proventus Capital Management AB. Magnus Nilsson, founding partner of Nordic Cross Asset Management, says that a "first step" toward making it easier for struggling businesses to access funding "would be for the Riksbank to get involved in the primary market for investment grade bonds." Bloomberg
3 May 23:37 • Brisbane Times • https://www.brisbanetimes.com.au/business/banking-and-finance/the-world-s-oldest-central-bank-hits-legal-roadblock-in-coronavirus-fight-20200504-p54pit.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
The world's oldest central bank hits legal roadblock in economic crisis fight
Sweden's central bank may need to have some of its age-old laws changed if it's to act on a pledge to do "whatever it takes" to save the economy. The Riksbank's 352-year history gives it the distinction of being the world's oldest central bank. But the legislation governing it has yet to catch up with the kind of policy it needs to deliver to address the crisis triggered by COVID-19. Specifically, the Riksbank doesn't have the legal right to buy bonds issued by companies, even though it's made clear it's ready to do so as part of a recent package of emergency measures. "The intention of the current Riksbank Act doesn't allow the bank to make outright purchases of corporate bonds or other private securities on the primary or secondary markets," said Niklas Schullerqvist, secretary to the parliamentary committee charged with overhauling the bank's policy framework. So far the Stockholm-based central bank has bought 5.6 billion kronor ($890 million) of corporate commercial paper as part of an emergency quantitative-easing plan. But it's refrained from buying corporate bonds - an important source of financing in the biggest Nordic economy - despite repeated assurances it will so. Schullerqvist says the Riksbank needs to consider European Union legislation on state aid as corporate bond purchases "may be considered supporting some specific parts of the economy." Riksbank spokesman Tomas Lundberg said the bank's legal team is looking into the matter, but wouldn't comment further because "it's an ongoing process." In a recent interview with Bloomberg, Riksbank Governor Stefan Ingves said purchases of investment-grade bonds are "certainly on our agenda." He also said "there are some legal issues when it comes to buying into the primary market." Sweden's primary bond market is a vital source of funding for the country's businesses. And with record-low borrowing costs and a growing investor base flush with cash, the market's growth has increasingly shaped Sweden's economy. But the market has been turned on its head since the COVID-19 crisis hit. Investors panicked and tried to redeem their cash, prompting 35 fixed-income funds to shut their doors. Even so, clients withdrew record quantities of cash and a spike in yields locked out all but a handful of top rated borrowers. In April, Sweden's syndicated public bond market only saw corporate issuance from investment-grade companies such as Volvo, Industrivarden and Scania, as well as state-owned entities including Jernhusen, Akademiska Hus and Sveaskog. The crisis that's hit Sweden's corporate bond market has drawn pleas from the investor community for the Riksbank to intervene before it's too late. The Riksbank "should support new money rather than being very active in the secondary market," said Daniel Sachs, chief executive at credit manager Proventus Capital Management AB. Magnus Nilsson, founding partner of Nordic Cross Asset Management, says that a "first step" toward making it easier for struggling businesses to access funding "would be for the Riksbank to get involved in the primary market for investment grade bonds."
3 May 23:37 • WAtoday • https://www.watoday.com.au/business/banking-and-finance/the-world-s-oldest-central-bank-hits-legal-roadblock-in-coronavirus-fight-20200504-p54pit.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
World’s oldest central bank hits legal roadblock in crisis fight
By Love Liman and Rafaela Lindeberg Sweden’s central bank may need to have some of its age-old laws changed if it’s to act on a pledge to do “whatever it takes” to save the economy. The Riksbank’s 352-year history gives it the distinction of being the world’s oldest central bank. But the legislation governing it has yet to catch up with the kind of policy it needs to deliver to address the crisis triggered by Covid-19. Specifically, the Riksbank doesn’t have the legal right to buy bonds issued by companies, even though it’s made clear it’s ready to do so as part of a recent package of emergency measures. “The intention of the current Riksbank Act doesn’t allow the bank to make outright purchases of corporate bonds or other private securities on the primary or secondary markets,” said Niklas Schullerqvist, secretary to the parliamentary committee charged with overhauling the bank’s policy framework. So far the Stockholm-based central bank has bought 5.6 billion kronor ($568 million) of corporate commercial paper as part of an emergency quantitative-easing plan. But it’s refrained from buying corporate bonds -- an important source of financing in the biggest Nordic economy -- despite repeated assurances it will so. Schullerqvist says the Riksbank needs to consider European Union legislation on state aid as corporate bond purchases “may be considered supporting some specific parts of the economy.” Riksbank spokesman Tomas Lundberg said the bank’s legal team is looking into the matter, but wouldn’t comment further because “it’s an ongoing process.” Shape of Sweden’s Bond Market In a recent interview with Bloomberg, Riksbank Governor Stefan Ingves said purchases of investment-grade bonds are “certainly on our agenda.” He also said “there are some legal issues when it comes to buying into the primary market.” Sweden’s primary bond market is a vital source of funding for the country’s businesses. And with record-low borrowing costs and a growing investor base flush with cash, the market’s growth has increasingly shaped Sweden’s economy. But the market has been turned on its head since the Covid-19 crisis hit. Investors panicked and tried to redeem their cash, prompting 35 fixed-income funds to shut their doors. Even so, clients withdrew record quantities of cash and a spike in yields locked out all but a handful of top rated borrowers. In April, Sweden’s syndicated public bond market only saw corporate issuance from investment-grade companies such as Volvo Group, Industrivarden AB and Scania CV AB, as well as state-owned entities including Jernhusen AB, Akademiska Hus AB and Sveaskog AB. The crisis that’s hit Sweden’s corporate bond market has drawn pleas from the investor community for the Riksbank to intervene before it’s too late. The Riksbank “should support new money rather than being very active in the secondary market,” said Daniel Sachs, chief executive at credit manager Proventus Capital Management AB. Magnus Nilsson, founding partner of Nordic Cross Asset Management, says that a “first step” toward making it easier for struggling businesses to access funding “would be for the Riksbank to get involved in the primary market for investment grade bonds.”
3 May 08:27 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/news/worlds-oldest-central-bank-hits-legal-roadblock-in-crisis-fight/articleshow/75516360.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppstRating: 0.30
World’s Oldest Central Bank Hits Legal Blockade Amid Crisis
Sweden’s central bank may need to have some of its age-old laws changed if it’s to act on a pledge to do “whatever it takes” to save the economy. The Riksbank’s 352-year history gives it the distinction of being the world’s oldest central bank. But the legislation governing it has yet to catch up with the kind of policy it needs to deliver to address the crisis triggered by Covid-19. Specifically, the Riksbank doesn’t have the legal right to buy bonds issued by companies, even though it’s made clear it’s ready to do so as part of a recent package of emergency measures. “The intention of the current Riksbank Act doesn’t allow the bank to make outright purchases of corporate bonds or other private securities on the primary or secondary markets,” said Niklas Schullerqvist, secretary to the parliamentary committee charged with overhauling the bank’s policy framework. So far the Stockholm-based central bank has bought 5.6 billion kronor ($568 million) of corporate commercial paper as part of an emergency quantitative-easing plan. But it’s refrained from buying corporate bonds -- an important source of financing in the biggest Nordic economy -- despite repeated assurances it will do so. Schullerqvist says the Riksbank needs to consider European Union legislation on state aid as corporate bond purchases “may be considered supporting some specific parts of the economy.” Riksbank spokesman Tomas Lundberg said the bank’s legal team is looking into the matter, but wouldn’t comment further because “it’s an ongoing process.” Meanwhile, a proposal due to be voted on by lawmakers may strip Sweden’s central bank of its right to do any form of quantitative easing beyond the purchase of government bonds. According to the bank, “The proposed bill limits the Riksbank’s capacity to act, for instance by not allowing the Riksbank to purchase other securities than government papers, unless there are special reasons, or making lending to the banks conditional on them increasing their lending to companies. If this bill had applied now during the coronavirus pandemic, it would have limited the Riksbank’s monetary policy toolbox and it would have been unclear what the Riksbank was allowed to do.” In a recent interview with Bloomberg, Riksbank Governor Stefan Ingves said purchases of investment-grade bonds are “certainly on our agenda.” He also said “there are some legal issues when it comes to buying into the primary market.” Sweden’s primary bond market is a vital source of funding for the country’s businesses. And with record-low borrowing costs and a growing investor base flush with cash, the market’s growth has increasingly shaped Sweden’s economy. But the market has been turned on its head since the Covid-19 crisis hit. Investors panicked and tried to redeem their cash, prompting 35 fixed-income funds to shut their doors. Even so, clients withdrew record quantities of cash and a spike in yields locked out all but a handful of top rated borrowers. In April, Sweden’s syndicated public bond market only saw corporate issuance from investment-grade companies such as Volvo Group, Industrivarden AB and Scania CV AB, as well as state-owned entities including Jernhusen AB, Akademiska Hus AB and Sveaskog AB. The crisis that’s hit Sweden’s corporate bond market has drawn pleas from the investor community for the Riksbank to intervene before it’s too late. The Riksbank “should support new money rather than being very active in the secondary market,” said Daniel Sachs, chief executive at credit manager Proventus Capital Management AB. Magnus Nilsson, founding partner of Nordic Cross Asset Management, says that a “first step” toward making it easier for struggling businesses to access funding “would be for the Riksbank to get involved in the primary market for investment grade bonds.” (Adds bill details in 8th and 9th paragraphs.)
3 May 04:00 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/world-s-oldest-central-bank-hits-legal-roadblock-in-crisis-fightRating: 4.04
Tesla applies to generate electricity in UK
3 May 12:38
•
4 articles
Weight: 0.05
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Age penalty: 0.07
Best date: 3 May 04:33
Average US: 6.325
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Tesla applies to generate electricity in UK
Tesla has applied for a licence to generate electricity in the UK, documents show. The US company is mainly known for its electric vehicles but also has operations in battery energy storage and solar panel and solar roof tile manufacturing. The application, made to the Gas and Electricity Markets Authority by Tesla Motors Co., does not specify the reasons for seeking a licence. It was filed on Tuesday and signed by Evan Rice, Tesla energy products sales director. Tesla created one of the world’s largest lithium-ion batteries for the Australian state grid in 2017. Chief executive Elon Musk had said his company would develop the 100-megawatt battery within 100 days of contracts being signed at the end of September, and if it failed to deliver on time he would hand the battery to the South Australia state government for free.
3 May 12:38 • Jersey Evening Post • https://jerseyeveningpost.com/news/uk-news/2020/05/03/tesla-applies-to-generate-electricity-in-uk/Rating: 0.38
Tesla applies to generate electricity in UK
Tesla has applied for a licence to generate electricity in the UK, documents show. The US company is mainly known for its electric vehicles but also has operations in battery energy storage and solar panel and solar roof tile manufacturing. The application, made to the Gas and Electricity Markets Authority by Tesla Motors Co., does not specify the reasons for seeking a licence. It was filed on Tuesday and signed by Evan Rice, Tesla energy products sales director. Tesla created one of the world’s largest lithium-ion batteries for the Australian state grid in 2017. Chief executive Elon Musk had said his company would develop the 100-megawatt battery within 100 days of contracts being signed at the end of September, and if it failed to deliver on time he would hand the battery to the South Australia state government for free.
3 May 04:35 • ITV News • https://www.itv.com/news/2020-05-03/tesla-applies-to-generate-electricity-in-uk/Rating: 0.88
Tesla applies to generate electricity in UK
Tesla has applied for a licence to generate electricity in the UK, documents show. The US company is mainly known for its electric vehicles but also has operations in battery energy storage and solar panel and solar roof tile manufacturing. The application, made to the Gas and Electricity Markets Authority by Tesla Motors Co., does not specify the reasons for seeking a licence. It was filed on Tuesday and signed by Evan Rice, Tesla energy products sales director. Tesla created one of the world’s largest lithium-ion batteries for the Australian state grid in 2017. Chief executive Elon Musk had said his company would develop the 100-megawatt battery within 100 days of contracts being signed at the end of September, and if it failed to deliver on time he would hand the battery to the South Australia state government for free.
3 May 04:33 • Express & Star • https://www.expressandstar.com/news/uk-news/2020/05/03/tesla-applies-to-generate-electricity-in-uk/Rating: 0.30
Tesla applies to generate electricity in UK
Tesla created one of the world’s largest lithium-ion batteries for the Australian state grid in 2017. Tesla has applied for a licence to generate electricity in the UK, documents show. The US company is mainly known for its electric vehicles but also has operations in battery energy storage and solar panel and solar roof tile manufacturing. The application, made to the Gas and Electricity Markets Authority by Tesla Motors Co., does not specify the reasons for seeking a licence. It was filed on Tuesday and signed by Evan Rice, Tesla energy products sales director. Tesla created one of the world’s largest lithium-ion batteries for the Australian state grid in 2017. Chief executive Elon Musk had said his company would develop the 100-megawatt battery within 100 days of contracts being signed at the end of September, and if it failed to deliver on time he would hand the battery to the South Australia state government for free.
3 May 04:33 • Shropshire Star • https://www.shropshirestar.com/news/uk-news/2020/05/03/tesla-applies-to-generate-electricity-in-uk/Rating: 0.30
Oil-hungry Asian nations pounce on low prices to build stockpiles
3 May 14:00
•
5 articles
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Average IN: 7.2700000000000005
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Oil-hungry Asian nations pounce on low prices to build stockpiles
SINGAPORE – Some oil-hungry Asian nations are taking advantage of the collapse in prices caused by the coronavirus pandemic to build up their crude stockpiles. Here are some questions and answers about strategic reserves and the region's oil supplies: What are strategic oil reserves and why do countries need them? Strategic reserves are stockpiles of oil and other fuels held by governments in secure storage facilities to cover unexpected disruptions to energy supplies. Major economies such as the United States, China, and Russia began to build up reserves after oil shocks in the 1970s, according to Ravi Krishnaswamy, regional senior vice president for energy and environment at consultancy Frost & Sullivan. The events that spurred them to take action were principally the 1973 Yom Kippur War between Israel and the Arab nations, and the 1979 Iranian revolution, which fuelled worries about supplies. How big are the strategic reserves across the region? China is believed to have the biggest in the Asia-Pacific. Beijing does not give an official estimate, but analysts say it is at around 550 million barrels. In comparison, the United States' strategic reserves currently hold around 630 million. State-owned China National Petroleum Corporation said recently that the country's reserves were "obviously insufficient, and have not yet reached the international standard '90-day safety line.'" The International Energy Agency requires its members to hold emergency oil stocks equivalent to at least 90 days of net oil imports. China is an associate member, but not a full member. Japan's oil reserves were around 500 million barrels at the end of February, equivalent to national consumption for more than 7 months, according to the latest official data, while South Korea had around 96 million barrels in strategic reserves as of December 2019, enough for 89 days. India, by contrast, has reserves with storage capacity of approximately 40 million barrels – which would last just 10 days in the country of 1.3 billion people. How are reserves stored? Strategic reserves are stored largely in secure underground depots like natural rock caverns. The US Strategic Petroleum Reserve, the world's largest supply of emergency crude, is stored in huge underground salt caverns along the Gulf Coast. But building underground storage is challenging as it needs to have the right geological formation, and countries also need to build infrastructure to pump oil in and out. The high cost of building reserves has stopped many countries developing them to sufficient levels. In Asia, India uses caverns to store its reserves but other countries, such as Japan, put theirs in aboveground tanks. Which Asian countries are pouncing on low prices to build up stockpiles? Australia, which has long had one of the lowest levels of emergency stockpiles in the developed world, said it will take advantage of the fall in prices to develop a strategic reserve in the US. The country's own storage capacity is already full, but it has an agreement with the US allowing it to lease space in its Strategic Petroleum Reserve. In China, the Shanghai International Energy Exchange last month gave approval for state-owned Sinopec Petroleum Reserve to add more storage capacity. One storage depot in southern Guangdong province can hold up to 600,000 cubic meters (3.8 million barrels), while another in northern Hebei province can hold up to one million cubic meters. India's Ministry of Petroleum tweeted on April 15 it was buying crude to fill its reserves, stored in rock caverns, "to their full capacity." Madhu Nainan, editor of industry publication PetroWatch, however, questioned whether the country had enough available storage space to build up capacity quickly. "In India, storage tanks and pipelines are full and dealers' tanks are full," he told Agence France-Presse (AFP). Japan and South Korea, with ample stockpiles, have not announced plans to build up their reserves substantially. A Japanese trade ministry official said current levels were sufficient, while Seoul plans to increase stockpiles by less than 1% this year. Could low prices boost the region's economies when lockdowns are lifted? It looks unlikely, in the short term at least. Many observers believe economic activity won't bounce back quickly with the gradual lifting of lockdowns but only when a vaccine for the virus is discovered – which could be some time away. "Low oil prices won't turbocharge Asian economic recovery," Jeffrey Halley, OANDA senior market analyst, told AFP. Are there any winners from low prices? Major oil importers in Asia – such as China, Japan, and South Korea – would in usual times benefit from low prices, but this is unlikely to be the case immediately given the economic devastation caused by the pandemic. In Japan, for example, "the price crash has hit financial markets hard, which is negatively affecting the Japanese economy," said Toshihiro Nagahama, an economist at Dai-ichi Life Research Institute. "We can't apply our usual framework to this unprecedented period." Some economists, however, expect oil prices to stay low for a long period, meaning major importers could eventually emerge winners. "Oil prices are expected to remain low to some extent when the post-corona era comes, and given the current situation, it will have a positive effect on [South Korea's] economy in terms of recovery," said Jung Jun-hwan, a researcher at the Korea Energy Economics Institute. There are also "obvious losers" in Asia, such as oil exporters Malaysia, Indonesia, and Brunei, said OANDA's Halley. – Rappler.com
3 May 14:00 • Rappler • https://www.rappler.com/business/259796-oil-hungry-asian-nations-pounce-low-prices-build-stockpilesRating: 1.64
INTERVIEW: Saudi Arabia is open for business despite the pandemic
SINGAPORE: Some oil-hungry Asian nations are taking advantage of the collapse in prices caused by the coronavirus pandemic to build up their crude stockpiles.Here are some questions and answers about strategic reserves and the region’s oil supplies:Strategic reserves are stockpiles of oil and other fuels held by governments in secure storage facilities to cover unexpected disruptions to energy supplies.Major economies such as the US, China and Russia began to build up reserves after oil shocks in the 1970s, according to Ravi Krishnaswamy, regional senior vice president for energy and environment at consultancy Frost & Sullivan.The events that spurred them to take action were principally the 1973 Yom Kippur War between Israel and the Arab nations, and the 1979 Iranian revolution, which fueled worries about supplies.China is believed to have the biggest in the Asia-Pacific. Beijing does not give an official estimate but analysts say it is at around 550 million barrels. In comparison, the United States’ strategic reserves currently hold around 630 million.State-owned China National Petroleum Corporation said recently that the country’s reserves were “obviously insufficient, and have not yet reached the international standard ‘90-day safety line’.”The International Energy Agency requires its members to hold emergency oil stocks equivalent to at least 90 days of net oil imports. China is an associate member, but not a full member.Japan’s oil reserves were around 500 million barrels at the end of February, equivalent to national consumption for more than seven months, according to the latest official data, while South Korea had around 96 million barrels in strategic reserves as of December 2019, enough for 89 days.India, by contrast, has reserves with storage capacity of approximately 40 million barrels — which would last just 10 days in the country of 1.3 billion people.Strategic reserves are stored largely in secure underground depots like natural rock caverns. The US Strategic Petroleum Reserve, the world’s largest supply of emergency crude, is stored in huge underground salt caverns along the Gulf Coast.But building underground storage is challenging as it needs to have the right geological formation, and countries also need to build infrastructure to pump oil in and out.The high cost of building reserves has stopped many countries developing them to sufficient levels.In Asia, India uses caverns to store its reserves but other countries, such as Japan, put theirs in above-ground tanks.Australia, which has long had one of the lowest levels of emergency stockpiles in the developed world, said it will take advantage of the fall in prices to develop a strategic reserve in the United States.The country’s own storage capacity is already full but it has an agreement with the US allowing it to lease space in its Strategic Petroleum Reserve.In China, the Shanghai International Energy Exchange last month gave approval for state-owned Sinopec Petroleum Reserve to add more storage capacity.One storage depot in southern Guangdong province can hold up to 600,000 cubic meters (3.8 million barrels), while another in northern Hebei province can hold up to one million cubic meters.India’s Ministry of Petroleum tweeted on April 15 it was buying crude to fill its reserves, stored in rock caverns, “to their full capacity.”Madhu Nainan, editor of industry publication PetroWatch, however, questioned whether the country had enough available storage space to build up capacity quickly.“In India, storage tanks and pipelines are full and dealers’ tanks are full,” he told AFP.Japan and South Korea, with ample stockpiles, have not announced plans to build up their reserves substantially.A Japanese trade ministry official said current levels were sufficient, while Seoul plans to increase stockpiles by less than one percent this year.It looks unlikely, in the short term at least. Many observers believe economic activity won’t bounce back quickly with the gradual lifting of lockdowns but only when a vaccine for the virus is discovered — which could be some time away.“Low oil prices won’t turbocharge Asian economic recovery,” Jeffrey Halley, OANDA senior market analyst, told AFP.Major oil-importers in Asia — such as China, Japan and South Korea — would in usual times benefit from low prices but this is unlikely to be the case immediately given the economic devastation caused by the pandemic.In Japan, for example, “the price crash has hit financial markets hard, which is negatively affecting the Japanese economy,” said Toshihiro Nagahama, an economist at Dai-ichi Life Research Institute.“We can’t apply our usual framework to this unprecedented period.”Some economists, however, expect oil prices to stay low for a long period, meaning major importers could eventually emerge winners.“Oil prices are expected to remain low to some extent when the post-corona era comes, and given the current situation, it will have a positive effect on (South Korea’s) economy in terms of recovery,” said Jung Jun-hwan, a researcher at the Korea Energy Economics Institute.There are also “obvious losers” in Asia, such as oil exporters Malaysia, Indonesia and Brunei, said OANDA’s Halley.
3 May 04:01 • Arab News • https://www.arabnews.com/node/1668831/business-economyRating: 1.72
Oil-hungry Asian nations pounce on low prices to build stockpiles
Some oil-hungry Asian nations are taking advantage of the collapse in prices caused by the coronavirus pandemic to build up their crude stockpiles. Here are some questions and answers about strategic reserves and the region's oil supplies: - What are strategic oil reserves and why do countries need them? - Strategic reserves are stockpiles of oil and other fuels held by governments in secure storage facilities to cover unexpected disruptions to energy supplies. Major economies such as the US, China and Russia began to build up reserves after oil shocks in the 1970s, according to Ravi Krishnaswamy, regional senior vice president for energy and environment at consultancy Frost & Sullivan. The events that spurred them to take action were principally the 1973 Yom Kippur War between Israel and the Arab nations, and the 1979 Iranian revolution, which fuelled worries about supplies. - How big are the strategic reserves across the region? - China is believed to have the biggest in the Asia-Pacific. Beijing does not give an official estimate but analysts say it is at around 550 million barrels. In comparison, the United States' strategic reserves currently hold around 630 million. State-owned China National Petroleum Corporation said recently that the country's reserves were "obviously insufficient, and have not yet reached the international standard '90-day safety line'". The International Energy Agency requires its members to hold emergency oil stocks equivalent to at least 90 days of net oil imports. China is an associate member, but not a full member. Japan's oil reserves were around 500 million barrels at the end of February, equivalent to national consumption for more than seven months, according to the latest official data, while South Korea had around 96 million barrels in strategic reserves as of December 2019, enough for 89 days. India, by contrast, has reserves with storage capacity of approximately 40 million barrels -- which would last just 10 days in the country of 1.3 billion people. - How are reserves stored? - Strategic reserves are stored largely in secure underground depots like natural rock caverns. The US Strategic Petroleum Reserve, the world's largest supply of emergency crude, is stored in huge underground salt caverns along the Gulf Coast. But building underground storage is challenging as it needs to have the right geological formation, and countries also need to build infrastructure to pump oil in and out. The high cost of building reserves has stopped many countries developing them to sufficient levels. In Asia, India uses caverns to store its reserves but other countries, such as Japan, put theirs in above-ground tanks. - Which Asian countries are pouncing on low prices to build up stockpiles? - Australia, which has long had one of the lowest levels of emergency stockpiles in the developed world, said it will take advantage of the fall in prices to develop a strategic reserve in the United States. The country's own storage capacity is already full but it has an agreement with the US allowing it to lease space in its Strategic Petroleum Reserve. In China, the Shanghai International Energy Exchange last month gave approval for state-owned Sinopec Petroleum Reserve to add more storage capacity. One storage depot in southern Guangdong province can hold up to 600,000 cubic metres (3.8 million barrels), while another in northern Hebei province can hold up to one million cubic metres. India's Ministry of Petroleum tweeted on April 15 it was buying crude to fill its reserves, stored in rock caverns, "to their full capacity". Madhu Nainan, editor of industry publication PetroWatch, however, questioned whether the country had enough available storage space to build up capacity quickly. "In India, storage tanks and pipelines are full and dealers' tanks are full," he told AFP. Japan and South Korea, with ample stockpiles, have not announced plans to build up their reserves substantially. A Japanese trade ministry official said current levels were sufficient, while Seoul plans to increase stockpiles by less than one percent this year. - Could low prices boost the region's economies when lockdowns are lifted? - It looks unlikely, in the short term at least. Many observers believe economic activity won't bounce back quickly with the gradual lifting of lockdowns but only when a vaccine for the virus is discovered -- which could be some time away. "Low oil prices won't turbocharge Asian economic recovery," Jeffrey Halley, OANDA senior market analyst, told AFP. - Are there any winners from low prices? - Major oil-importers in Asia -- such as China, Japan and South Korea -- would in usual times benefit from low prices but this is unlikely to be the case immediately given the economic devastation caused by the pandemic. In Japan, for example, "the price crash has hit financial markets hard, which is negatively affecting the Japanese economy", said Toshihiro Nagahama, an economist at Dai-ichi Life Research Institute. "We can't apply our usual framework to this unprecedented period." Some economists, however, expect oil prices to stay low for a long period, meaning major importers could eventually emerge winners. "Oil prices are expected to remain low to some extent when the post-corona era comes, and given the current situation, it will have a positive effect on (South Korea's) economy in terms of recovery," said Jung Jun-hwan, a researcher at the Korea Energy Economics Institute. There are also "obvious losers" in Asia, such as oil exporters Malaysia, Indonesia and Brunei, said OANDA's Halley. burs-mba/sr/dan/axn
3 May 03:30 • Yahoo • https://news.yahoo.com/oil-hungry-asian-nations-pounce-low-prices-build-024801828.htmlRating: 0.30
Oil-hungry Asian nations pounce on low prices to build stockpiles
Some oil-hungry Asian nations are taking advantage of the collapse in prices caused by the coronavirus pandemic to build up their crude stockpiles. Here are some questions and answers about strategic reserves and the region's oil supplies: Strategic reserves are stockpiles of oil and other fuels held by governments in secure storage facilities to cover unexpected disruptions to energy supplies. Major economies such as the US, China and Russia began to build up reserves after oil shocks in the 1970s, according to Ravi Krishnaswamy, regional senior vice president for energy and environment at consultancy Frost & Sullivan. The events that spurred them to take action were principally the 1973 Yom Kippur War between Israel and the Arab nations, and the 1979 Iranian revolution, which fuelled worries about supplies. China is believed to have the biggest in the Asia-Pacific. Beijing does not give an official estimate but analysts say it is at around 550 million barrels. In comparison, the United States' strategic reserves currently hold around 630 million. State-owned China National Petroleum Corporation said recently that the country's reserves were "obviously insufficient, and have not yet reached the international standard '90-day safety line'". The International Energy Agency requires its members to hold emergency oil stocks equivalent to at least 90 days of net oil imports. China is an associate member, but not a full member. Japan's oil reserves were around 500 million barrels at the end of February, equivalent to national consumption for more than seven months, according to the latest official data, while South Korea had around 96 million barrels in strategic reserves as of December 2019, enough for 89 days. India, by contrast, has reserves with storage capacity of approximately 40 million barrels -- which would last just 10 days in the country of 1.3 billion people. Strategic reserves are stored largely in secure underground depots like natural rock caverns. The US Strategic Petroleum Reserve, the world's largest supply of emergency crude, is stored in huge underground salt caverns along the Gulf Coast. But building underground storage is challenging as it needs to have the right geological formation, and countries also need to build infrastructure to pump oil in and out. The high cost of building reserves has stopped many countries developing them to sufficient levels. In Asia, India uses caverns to store its reserves but other countries, such as Japan, put theirs in above-ground tanks. Australia, which has long had one of the lowest levels of emergency stockpiles in the developed world, said it will take advantage of the fall in prices to develop a strategic reserve in the United States. The country's own storage capacity is already full but it has an agreement with the US allowing it to lease space in its Strategic Petroleum Reserve. In China, the Shanghai International Energy Exchange last month gave approval for state-owned Sinopec Petroleum Reserve to add more storage capacity. One storage depot in southern Guangdong province can hold up to 600,000 cubic metres (3.8 million barrels), while another in northern Hebei province can hold up to one million cubic metres. India's Ministry of Petroleum tweeted on April 15 it was buying crude to fill its reserves, stored in rock caverns, "to their full capacity". Madhu Nainan, editor of industry publication PetroWatch, however, questioned whether the country had enough available storage space to build up capacity quickly. "In India, storage tanks and pipelines are full and dealers' tanks are full," he told AFP. Japan and South Korea, with ample stockpiles, have not announced plans to build up their reserves substantially. A Japanese trade ministry official said current levels were sufficient, while Seoul plans to increase stockpiles by less than one percent this year. It looks unlikely, in the short term at least. Many observers believe economic activity won't bounce back quickly with the gradual lifting of lockdowns but only when a vaccine for the virus is discovered -- which could be some time away. "Low oil prices won't turbocharge Asian economic recovery," Jeffrey Halley, OANDA senior market analyst, told AFP. Major oil-importers in Asia -- such as China, Japan and South Korea -- would in usual times benefit from low prices but this is unlikely to be the case immediately given the economic devastation caused by the pandemic. In Japan, for example, "the price crash has hit financial markets hard, which is negatively affecting the Japanese economy", said Toshihiro Nagahama, an economist at Dai-ichi Life Research Institute. "We can't apply our usual framework to this unprecedented period." Some economists, however, expect oil prices to stay low for a long period, meaning major importers could eventually emerge winners. "Oil prices are expected to remain low to some extent when the post-corona era comes, and given the current situation, it will have a positive effect on (South Korea's) economy in terms of recovery," said Jung Jun-hwan, a researcher at the Korea Energy Economics Institute. There are also "obvious losers" in Asia, such as oil exporters Malaysia, Indonesia and Brunei, said OANDA's Halley. burs-mba/sr/dan/axn https://www.facebook.com/policies
3 May 02:58 • Pulse Live • https://www.pulselive.co.ke/news/world/oil-hungry-asian-nations-pounce-on-low-prices-to-build-stockpiles/dhlr10rRating: 0.51
Oil-hungry Asian nations pounce on low prices to build stockpiles
Some oil-hungry Asian nations are taking advantage of the collapse in prices caused by the coronavirus pandemic to build up their crude stockpiles. Here are some questions and answers about strategic reserves and the region's oil supplies: - What are strategic oil reserves and why do countries need them? - Strategic reserves are stockpiles of oil and other fuels held by governments in secure storage facilities to cover unexpected disruptions to energy supplies. Major economies such as the US, China and Russia began to build up reserves after oil shocks in the 1970s, according to Ravi Krishnaswamy, regional senior vice president for energy and environment at consultancy Frost & Sullivan. The events that spurred them to take action were principally the 1973 Yom Kippur War between Israel and the Arab nations, and the 1979 Iranian revolution, which fuelled worries about supplies. - How big are the strategic reserves across the region? - China is believed to have the biggest in the Asia-Pacific. Beijing does not give an official estimate but analysts say it is at around 550 million barrels. In comparison, the United States' strategic reserves currently hold around 630 million. State-owned China National Petroleum Corporation said recently that the country's reserves were "obviously insufficient, and have not yet reached the international standard '90-day safety line'". The International Energy Agency requires its members to hold emergency oil stocks equivalent to at least 90 days of net oil imports. China is an associate member, but not a full member. Japan's oil reserves were around 500 million barrels at the end of February, equivalent to national consumption for more than seven months, according to the latest official data, while South Korea had around 96 million barrels in strategic reserves as of December 2019, enough for 89 days. India, by contrast, has reserves with storage capacity of approximately 40 million barrels -- which would last just 10 days in the country of 1.3 billion people. - How are reserves stored? - Strategic reserves are stored largely in secure underground depots like natural rock caverns. The US Strategic Petroleum Reserve, the world's largest supply of emergency crude, is stored in huge underground salt caverns along the Gulf Coast. But building underground storage is challenging as it needs to have the right geological formation, and countries also need to build infrastructure to pump oil in and out. The high cost of building reserves has stopped many countries developing them to sufficient levels. In Asia, India uses caverns to store its reserves but other countries, such as Japan, put theirs in above-ground tanks. - Which Asian countries are pouncing on low prices to build up stockpiles? - Australia, which has long had one of the lowest levels of emergency stockpiles in the developed world, said it will take advantage of the fall in prices to develop a strategic reserve in the United States. The country's own storage capacity is already full but it has an agreement with the US allowing it to lease space in its Strategic Petroleum Reserve. In China, the Shanghai International Energy Exchange last month gave approval for state-owned Sinopec Petroleum Reserve to add more storage capacity. One storage depot in southern Guangdong province can hold up to 600,000 cubic metres (3.8 million barrels), while another in northern Hebei province can hold up to one million cubic metres. India's Ministry of Petroleum tweeted on April 15 it was buying crude to fill its reserves, stored in rock caverns, "to their full capacity". Madhu Nainan, editor of industry publication PetroWatch, however, questioned whether the country had enough available storage space to build up capacity quickly. "In India, storage tanks and pipelines are full and dealers' tanks are full," he told AFP. Japan and South Korea, with ample stockpiles, have not announced plans to build up their reserves substantially. A Japanese trade ministry official said current levels were sufficient, while Seoul plans to increase stockpiles by less than one percent this year. - Could low prices boost the region's economies when lockdowns are lifted? - It looks unlikely, in the short term at least. Many observers believe economic activity won't bounce back quickly with the gradual lifting of lockdowns but only when a vaccine for the virus is discovered -- which could be some time away. "Low oil prices won't turbocharge Asian economic recovery," Jeffrey Halley, OANDA senior market analyst, told AFP. - Are there any winners from low prices? - Major oil-importers in Asia -- such as China, Japan and South Korea -- would in usual times benefit from low prices but this is unlikely to be the case immediately given the economic devastation caused by the pandemic. In Japan, for example, "the price crash has hit financial markets hard, which is negatively affecting the Japanese economy", said Toshihiro Nagahama, an economist at Dai-ichi Life Research Institute. "We can't apply our usual framework to this unprecedented period." Some economists, however, expect oil prices to stay low for a long period, meaning major importers could eventually emerge winners. "Oil prices are expected to remain low to some extent when the post-corona era comes, and given the current situation, it will have a positive effect on (South Korea's) economy in terms of recovery," said Jung Jun-hwan, a researcher at the Korea Energy Economics Institute. There are also "obvious losers" in Asia, such as oil exporters Malaysia, Indonesia and Brunei, said OANDA's Halley. burs-mba/sr/dan/axn
3 May 02:50 • Digital Journal • http://www.digitaljournal.com/news/world/oil-hungry-asian-nations-pounce-on-low-prices-to-build-stockpiles/article/571122Rating: 0.78
Billionaire Warren Buffett hasn't had a haircut or worn a tie in 7 weeks, he revealed at Berkshire Hathaway's annual meeting
3 May 02:29
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Billionaire Warren Buffett hasn't had a haircut or worn a tie in 7 weeks, he revealed at Berkshire Hathaway's annual meeting
Warren Buffett has been dressing down and letting his hair grow out during the coronavirus pandemic, he revealed during Berkshire Hathaway’s annual meeting on Saturday. “It’s been seven weeks since I’ve had a haircut,” the billionaire investor and Berkshire CEO said during the virtual event, which was livestreamed by Yahoo Finance. “It’s been more than seven weeks since I put on a tie or anything,” Buffett continued. “Just a question of which sweatsuit I wear.” Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode The 89-year-old has likely been avoiding a trip to the barbers and other non-essential social contact to avoid catching the potentially lethal virus. He joked in March that he was “drinking a little more Coca-Cola” during the pandemic, as the soda “seems to have warded off everything else in life.” Buffett made his latest comments while discussing Berkshire’s exit from its positions in the “big four” US airlines. The conglomerate sold $US6.1 billion in stock on a net basis in April, which Buffett attributed to dumping airline stocks. He suggested that people might fly less in the coming years out of fear of catching the virus, or cut back on travel after realising the ease of working from home. Fewer passengers could force the airlines to drop prices, widening their losses due to the coronavirus. Read more:GOLDMAN SACHS: These are the top 11 companies to watch as we enter the best stock-picking environment in over a decade
3 May 02:29 • Business Insider Australia • https://www.businessinsider.com.au/billionaire-warren-buffett-berkshire-hathaway-no-haircut-tie-7-weeks-2020-5Rating: 0.30
Billionaire Warren Buffett hasn’t had a haircut or worn a tie in 7 weeks, he revealed at Berkshire Hathaway’s annual meeting
Warren Buffett has been dressing down and letting his hair grow out during the coronavirus pandemic, he revealed during Berkshire Hathaway’s annual meeting on Saturday. “It’s been seven weeks since I’ve had a haircut,” the billionaire investor and Berkshire CEO said during the virtual event, which was livestreamed by Yahoo Finance. “It’s been more than seven weeks since I put on a tie or anything,” Buffett continued. “Just a question of which sweatsuit I wear.” Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode The 89-year-old has likely been avoiding a trip to the barbers and other non-essential social contact to avoid catching the potentially lethal virus. He joked in March that he was “drinking a little more Coca-Cola” during the pandemic, as the soda “seems to have warded off everything else in life.” Buffett made his latest comments while discussing Berkshire’s exit from its positions in the “big four” US airlines. The conglomerate sold $6.1 billion in stock on a net basis in April, which Buffett attributed to dumping airline stocks. He suggested that people might fly less in the coming years out of fear of catching the virus, or cut back on travel after realizing the ease of working from home. Fewer passengers could force the airlines to drop prices, widening their losses due to the coronavirus. Read more:GOLDMAN SACHS: These are the top 11 companies to watch as we enter the best stock-picking environment in over a decade
3 May 02:29 • Business Insider Malaysia • https://www.businessinsider.my/billionaire-warren-buffett-berkshire-hathaway-no-haircut-tie-7-weeks-2020-5Rating: 0.30
Billionaire Warren Buffett hasn't had a haircut or worn a tie in 7 weeks, he revealed at Berkshire Hathaway's annual meeting, Business Insider - Business Insider Singapore
Warren Buffett has been dressing down and letting his hair grow out during the coronavirus pandemic, he revealed during Berkshire Hathaway’s annual meeting on Saturday. “It’s been seven weeks since I’ve had a haircut,” the billionaire investor and Berkshire CEO said during the virtual event, which was livestreamed by Yahoo Finance. “It’s been more than seven weeks since I put on a tie or anything,” Buffett continued. “Just a question of which sweatsuit I wear.” Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode The 89-year-old has likely been avoiding a trip to the barbers and other non-essential social contact to avoid catching the potentially lethal virus. He joked in March that he was “drinking a little more Coca-Cola” during the pandemic, as the soda “seems to have warded off everything else in life.” Buffett made his latest comments while discussing Berkshire’s exit from its positions in the “big four” US airlines. The conglomerate sold $6.1 billion in stock on a net basis in April, which Buffett attributed to dumping airline stocks. He suggested that people might fly less in the coming years out of fear of catching the virus, or cut back on travel after realizing the ease of working from home. Fewer passengers could force the airlines to drop prices, widening their losses due to the coronavirus. Read more:GOLDMAN SACHS: These are the top 11 companies to watch as we enter the best stock-picking environment in over a decade
3 May 02:29 • www.businessinsider.sg • https://www.businessinsider.sg/billionaire-warren-buffett-berkshire-hathaway-no-haircut-tie-7-weeks-2020-5Rating: 0.30
Billionaire Warren Buffett hasn't had a haircut or worn a tie in 7 weeks, he revealed at Berkshire Hathaway's annual meeting
Warren Buffett has been dressing down and letting his hair grow out during the coronavirus pandemic, he revealed during Berkshire Hathaway’s annual meeting on Saturday. “It’s been seven weeks since I’ve had a haircut,” the billionaire investor and Berkshire CEO said during the virtual event, which was livestreamed by Yahoo Finance. “It’s been more than seven weeks since I put on a tie or anything,” Buffett continued. “Just a question of which sweatsuit I wear.” The 89-year-old has likely been avoiding a trip to the barbers and other non-essential social contact to avoid catching the potentially lethal virus. He joked in March that he was “drinking a little more Coca-Cola” during the pandemic, as the soda “seems to have warded off everything else in life.” Buffett made his latest comments while discussing Berkshire’s exit from its positions in the “big four” US airlines. The conglomerate sold $6.1 billion in stock on a net basis in April, which Buffett attributed to dumping airline stocks. He suggested that people might fly less in the coming years out of fear of catching the virus, or cut back on travel after realizing the ease of working from home. Fewer passengers could force the airlines to drop prices, widening their losses due to the coronavirus.
3 May 04:30 • Business Insider Nederland • https://www.businessinsider.nl/billionaire-warren-buffett-berkshire-hathaway-no-haircut-tie-7-weeks-2020-5/Rating: 0.30
Texas Hotel Group To Give Back $70M In PPP Loans
3 May 22:34
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10 articles
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Texas Hotel Group To Give Back $70M In PPP Loans
Texas hospitality group Ashford Inc. is buckling under pressure and will return $70 million in Paycheck Protection Program (PPP) loan money it received due to the coronavirus pandemic, according to The New York Times. The network of hotels run by Texan Monty Bennett had dozens of PPP applications in the works totaling $126 million. The public outcry that the money should have gone to the neediest of businesses prompted the hospitality group to announce it would return the bulk of the money. The Dallas-based hotel nexus received $76 million, according to data compiled by The Washington Post. The hospitality group was the biggest recipient of PPP loans and had originally said it deserved the money. “Total PPP funding for the hotel industry accounts for less than 3 percent of the PPP fund’s initial budget of $350 billion and roughly 1.5 percent of the fund’s total budget today,” Ashford Hospitality Trust said in a statement. “Our companies have not crowded out smaller businesses from receiving funds, as some media reports have suggested. The PPP program was specifically intended for companies like ours.” The hotel group’s Ashford Inc., Ashford Hospitality Trust, and Braemar Hotels & Resorts — all publicly traded — said in a statement that they would return the money due to “recently changed rules” and “inconsistent federal guidance that put the companies at compliance risk,” Reuters reported. Among the largest recipients of the Small Business Administration (SBA) loans, the hotel group indicated that it would return a minimum of $70 million. The government reeled in loan requirements after numerous companies like Ashford’s — Ruth’s Chris Steak House, Fiesta Restaurant Group (the parent of Pollo Tropical and Taco Cabana), AutoNation and the Los Angeles Lakers — received loans while the neediest small- to medium-sized businesses (SMBs) were closed out. Last week, Treasury Secretary Steven Mnuchin said companies had until May 7 to voluntarily return the funds if they did not meet the program’s criteria.
3 May 22:34 • PYMNTS.com • https://www.pymnts.com/loans/2020/texas-hotel-group-give-back-70-million-ppp-loans/Rating: 0.81
Monty Bennett, Trump donor and largest recipient of PPP funds, will return money
The hotel conglomerate run by a major campaign donor to President Donald Trump, Monty Bennett, announced Saturday it would return all the money it received through the Paycheck Protection Program. “The Ashford Group of Companies announced today that all of its companies, including Ashford Inc. (NYSE American: AINC), Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust”), and Braemar Hotels & Resorts Inc. (NYSE: BHR) (“Braemar”), will return all funds provided by the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) due to the agency’s recently changed rules and inconsistent federal guidance that put the companies at compliance risk,” Bennett’s companies said in a statement emailed to investors. Bennett’s decision came two hours after Democratic nominee Joe Biden blasted Bennett, tweeting, “Monty Bennett should return the tens of millions of dollars he received, and we should give it to the small businesses that need it.” Bennett runs a conglomerate of 128 hotels, which received, collectively, more than $58 million through the PPP. Business Insider broke the news on April 23 that he won the money after contributing significantly to Trump’s re-election and spent $50,000 to hire two of the president’s fundraisers to lobby the administration for bailout money. A Bennett company spokesman did not immediately return a request for comment Saturday night. Two days ago, the Bennett spokesman said the company was still deciding whether to return the money. Spokespeople for the Treasury Department and Small Business Administration did not immediately return requests for comment Saturday. One week ago, Bennett announced he did not plan to return the money unless pressed to by the SBA. The Treasury Department announced on April 23 that it would require publicly traded companies, like Bennett’s to return the PPP money, following a massive public backlash as it was revealed some of the biggest recipients were large chains like Shake Shack and Ruth’s Chris Steakhouse. The fund, originally designed to help small businesses weather the COVID-19 pandemic, was quickly drained of the first infusion of $349 billion from Congress. Congress held an emergency series of meetings through April to approve another $300 billion for the program. Bennett pleaded his case through March as the COVID-19 outbreak racked his hotel conglomerate, which includes high-end properties like Ritz-Carltons, and more modest fare like Courtyard Suites, spread across the nation. He took to the airwaves to say he may not be able to make the coming debt payments on $4 billion of outstanding loans and had been forced to lay off 90% of the staff in his hotels. But it wasn’t until after he hired two prominent fundraisers for the Trump campaign, Jeff Miller and Roy Bailey, to lobby the Treasury Department, that loans started coming through for him. Bennett noted in a statement Saturday night that he was invited to the White House with other hotel owners on March 17 – one week after he hired Miller and Bailey to lobby for him. “The hotel industry has been devastated by the COVID-19 pandemic and resulting National Emergency,” Bennet said in a statement. “Hotel industry executives met with the Administration at the White House on March 17, 2020 to plead for help for our industry. We are disappointed that, in an abundance of caution to avoid any risk of non-compliance with the changed PPP rules, our actions mean that our employees, vendors, communities and others in need will not benefit from the PPP as Congress intended. We call on Congress, the Treasury Department and the Federal Reserve to provide assistance to the hotel industry to protect jobs and asset values that have been severely impaired as a result of the pandemic and the government’s actions that have followed.”
3 May 03:30 • Business Insider Nederland • https://www.businessinsider.nl/monty-bennett-trump-donor-will-return-ppp-money-2020-5/Rating: 0.30
Trump Donor Whose Hotels Won Small-Business Loans Returns Money
U.S. Small Business and Coronavirus:What you need to knowNewFollow this Storyi A major donor to President Donald Trump whose companies are among the biggest known recipients of rescue loans for small businesses hurt by the coronavirus outbreak said he will return the money. Texas hotelier Monty Bennett, whose companies own 130 properties across the country, said Saturday that he will return the loans provided under the Small Business Administration’s Paycheck Protection Program, which is intended to help keep workers employed. Bennett said new restrictions meant those companies may no longer qualify. “We are disappointed that, in an abundance of caution to avoid any risk of non-compliance with the changed PPP rules, our actions mean that our employees, vendors, communities and others in need will not benefit from the PPP as Congress intended,” he said in a statement. The move follows criticism that public companies like Bennett’s were able to secure millions of dollars in funding from the program while some mom-and-pop businesses were left with nothing. On Friday, Senate Democratic leader Chuck Schumer called on the SBA to review the loans made to Bennett’s companies. “This runs against the spirit of the law to provide much needed funds to truly small or family-owned businesses around the country that are in dire need of assistance,” the New York senator said. Bennett is the chairman of three interrelated companies: Ashford Hospitality Trust Inc. and Braemar Hotels & Resorts Inc., which own the hotels, and Ashford Inc., which provides asset management and hotel management services in exchange for advisory fees. The three together disclosed receiving about $70 million in PPP loans, according to regulatory filings. Luxury Hotelier Who Backed Trump Wins Big in Small-Business Aid The companies were able to secure loans because of a loophole that allowed big restaurant chains and other large companies to rake in millions in low-interest loans. On Thursday, the Trump administration announced a new rule that single corporate groups shouldn’t get more than $20 million in total loans, which applies if businesses are “majority owned, directly or indirectly, by a common parent.” As Congress was rushing to rescue small businesses in March, Ashford hired two Trump-linked lobbyists to advocate for a hotel-industry rescue, according to disclosures filed with Congress. One was Roy Bailey, the Republican fund-raiser in Texas who served as the 2016 co-chairman of the Trump campaign’s fund-raising arm and raised money for Trump’s preferred super-PAC. The other was Miller Strategies LLC, whose chief executive officer, Jeffrey Miller, is also bundler for his 2016 campaign. Bennett is also a Trump donor. He gave $150,000 in the last six months to a fund-raising committee for the president’s reelection campaign and for Republicans, according to Federal Election Commission records, and donated more than $200,000 during the 2016 presidential campaign. — With assistance by Ben Brody
3 May 03:15 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/trump-donor-whose-hotels-won-small-business-loans-returns-moneyRating: 4.04
Ashford Group to return $59 million U.S. payroll loan
Ashford Group of companies, run by a donor of U.S. President Donald Trump, said on Saturday it would return a $58.7 million loan it received from the government’s program to help small businesses survive the economic impact of the coronavirus. U.S. Senate Democratic leader Chuck Schumer had sent a letter to the Small Business Administration (SBA) demanding a review of all loans made to Ashford, run by Trump donor and Dallas hotelier Monty Bennett. According to media reports, the hospitality firm is the biggest known applicant of the government’s small-business relief program. The company said it would return the funds due to the SBA’s “recently changed rules” and “inconsistent federal guidance that put the companies at compliance risk.” The group’s publicly traded companies overseen by Bennett include Ashford Inc, Ashford Hospitality Trust Inc and Braemar Hotels & Resorts Inc. Schumer said in his letter that he was “deeply concerned that large, publicly traded companies, like Ashford, may be exploiting the Program.” The company said in its statement, “Some media and members of Congress have falsely implied” that Ashford accessed loopholes to qualify for the funds.” (Reporting by Aishwarya Nair in Bengaluru; Editing by Cynthia Osterman and Alistair Bell)
3 May 01:44 • Financial Post • https://business.financialpost.com/pmn/business-pmn/ashford-group-to-return-59-million-u-s-payroll-loanRating: 0.94
Ashford Group Of Companies Takes Action To Meet Changed Paycheck Protection Program Eligibility Guidelines
DALLAS, May 2, 2020 /PRNewswire/ -- The Ashford Group of Companies announced today that all of its companies, including Ashford Inc. (NYSE American: AINC), Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust"), and Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar"), will return all funds provided by the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") due to the agency's recently changed rules and inconsistent federal guidance that put the companies at compliance risk. Federal Government assistance is required to repair the most significant damage in history to U.S. hotels and hospitality businesses caused by government-ordered shutdowns and restrictions on travel and public gatherings. Industry-wide revenue is down approximately 80-90% as a result of the government orders, resulting in the immediate loss of 3.9 million jobs, according to the American Hotel & Lodging Association. Some media and members of Congress have falsely implied that Ashford accessed "loopholes" in the CARES Act to qualify for the PPP funds. In fact, Congress designed the PPP to specifically allow companies that own multiple hotel properties to obtain separate loans for each property as a means to prevent the economic collapse of the hospitality industry that is now occurring. This is why Congress wrote the CARES Act to waive the SBA's standard affiliation rules for hotels and restaurants, as follows: [A]ny business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a North American Industry Classification System code beginning with 72 at the time of disbursal shall be eligible to receive a covered loan. This specific provision of the law was referenced in the SBA's Paycheck Protection Program Frequently Asked Questions ("FAQ") published on April 13, 2020: Question 24: How do the $10 million cap and affiliation rules work for hotels and restaurants (and any business assigned a North American Industry Classification System (NAICS) code beginning with 72)? Answer: Under the CARES Act, any single business entity that is assigned a NAICS code beginning with 72 (including hotels and restaurants) and that employs not more than 500 employees per physical location is eligible to receive a PPP loan. Ashford relied on the statute as passed by Congress and the guidance provided by the SBA to apply for PPP loans in good faith. Ashford also relied on the SBA's view that its affiliation rules do not apply to any business entity that is assigned a NAICS code beginning with 72 and that employs not more than a total of 500 employees. Under these rules, qualified hotels and restaurants that are owned by a parent business are permitted to apply for separate PPP loans, provided that each property maintains a unique EIN. The $10 million maximum loan amount under the PPP applies to every eligible business entity. Ashford applied for PPP loans for each qualified hotel property in full compliance with this guidance, and in the belief it was our obligation to protect our employees, vendors, communities, lenders and shareholders from unfair economic damage. Since we submitted our loan applications, the rules have changed almost daily. In fact, the SBA has issued numerous Interim Final Rules and at least 12 separate FAQs. For example, the SBA added the following new guidance relating to public companies on April 23, 2020 (weeks after we submitted our PPP applications): 31. Question: Do businesses owned by large companies with adequate sources of liquidity to support the business's ongoing operations qualify for a PPP loan? Answer: In addition…borrowers should review carefully the required certification that "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification. Ashford companies do not have "substantial market value" compared to the majority of other publicly-traded companies or even Ashford's own market values before the government shutdown actions. We also now have limited access to the capital markets across our companies. More recently, the SBA issued a Fifth Interim Final Rule on April 30, 2020, with the following addition: Can a single corporate group receive unlimited PPP loans? No. To preserve the limited resources available to the PPP program, and in light of the previous lapse of PPP appropriations and the high demand for PPP loans, businesses that are part of a single corporate group shall in no event receive more than $20,000,000 of PPP loans in the aggregate. For purposes of this limit, businesses are part of a single corporate group if they are majority owned, directly or indirectly, by a common parent. This limitation shall be immediately effective with respect to any loan that has not yet been fully disbursed as of April 30, 2020. Businesses are subject to this limitation even if the businesses are eligible for the waiver of affiliation provision under the CARES Act or are otherwise not considered to be affiliates under SBA's affiliation rules. While we believed then and continue to believe today that we qualify for PPP loans based on the legislation and rule-making in place at the time our applications were submitted, continuous SBA rule changes and evolving opinions by Administration officials have led us to conclude that we may no longer qualify. As a result, the Ashford Group of Companies will return all PPP funds on or before May 7, 2020, in accordance with SBA's previously announced safe harbor. Ashford management had no intention of crowding out any business from gaining equal access to the PPP funds, and could not have known that congressional appropriations for the program would be insufficient to cover the needs of all other businesses in the nation that have suffered similar harm. Congress and the Administration should have known but chose to restrict funding when the CARES Act was passed on March 27, only to provide additional funding later. In fact, Congress did not make any changes to the rules under which Ashford had already applied for and received funds when it passed its second version of the CARES Act nearly a month later on April 23. In the face of continuing confusion, the need for immediate government action to fix the PPP program and repair economic damage is acute and growing. "The hotel industry has been devastated by the COVID-19 pandemic and resulting National Emergency," commented Monty J. Bennett, Ashford Inc.'s Chairman and Chief Executive Officer and the Chairman of the Board of Ashford Trust and Braemar. "Hotel industry executives met with the Administration at the White House on March 17, 2020 to plead for help for our industry. We are disappointed that, in an abundance of caution to avoid any risk of non-compliance with the changed PPP rules, our actions mean that our employees, vendors, communities and others in need will not benefit from the PPP as Congress intended. We call on Congress, the Treasury Department and the Federal Reserve to provide assistance to the hotel industry to protect jobs and asset values that have been severely impaired as a result of the pandemic and the government's actions that have followed." Ashford Inc. provides global asset management, investment management and related services to the real estate and hospitality sectors. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts. Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about Ashford's strategy and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the registrant's control. These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: the impact of the novel strain of coronavirus (COVID-19) on our business; the ability of Ashford Trust to meet the NYSE continued listing standards; our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; general volatility of the capital markets and the market price of our common stock and preferred stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in the registrant's filings with the Securities and Exchange Commission. The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We will not publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise except to the extent required by law. View original content:http://www.prnewswire.com/news-releases/ashford-group-of-companies-takes-action-to-meet-changed-paycheck-protection-program-eligibility-guidelines-301051481.html SOURCE Ashford Inc.
3 May 01:00 • finanzen.at • https://www.finanzen.at/nachrichten/aktien/ashford-group-of-companies-takes-action-to-meet-changed-paycheck-protection-program-eligibility-guidelines-1029156876Rating: 0.61
Ashford Group Of Companies Takes Action To Meet Changed Paycheck Protection Program Eligibility Guidelines
DALLAS, May 2, 2020 /PRNewswire/ -- The Ashford Group of Companies announced today that all of its companies, including Ashford Inc. (NYSE American: AINC), Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust"), and Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar"), will return all funds provided by the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") due to the agency's recently changed rules and inconsistent federal guidance that put the companies at compliance risk. Federal Government assistance is required to repair the most significant damage in history to U.S. hotels and hospitality businesses caused by government-ordered shutdowns and restrictions on travel and public gatherings. Industry-wide revenue is down approximately 80-90% as a result of the government orders, resulting in the immediate loss of 3.9 million jobs, according to the American Hotel & Lodging Association. Some media and members of Congress have falsely implied that Ashford accessed "loopholes" in the CARES Act to qualify for the PPP funds. In fact, Congress designed the PPP to specifically allow companies that own multiple hotel properties to obtain separate loans for each property as a means to prevent the economic collapse of the hospitality industry that is now occurring. This is why Congress wrote the CARES Act to waive the SBA's standard affiliation rules for hotels and restaurants, as follows: [A]ny business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a North American Industry Classification System code beginning with 72 at the time of disbursal shall be eligible to receive a covered loan. This specific provision of the law was referenced in the SBA's Paycheck Protection Program Frequently Asked Questions ("FAQ") published on April 13, 2020: Question 24: How do the $10 million cap and affiliation rules work for hotels and restaurants (and any business assigned a North American Industry Classification System (NAICS) code beginning with 72)? Answer: Under the CARES Act, any single business entity that is assigned a NAICS code beginning with 72 (including hotels and restaurants) and that employs not more than 500 employees per physical location is eligible to receive a PPP loan. Ashford relied on the statute as passed by Congress and the guidance provided by the SBA to apply for PPP loans in good faith. Ashford also relied on the SBA's view that its affiliation rules do not apply to any business entity that is assigned a NAICS code beginning with 72 and that employs not more than a total of 500 employees. Under these rules, qualified hotels and restaurants that are owned by a parent business are permitted to apply for separate PPP loans, provided that each property maintains a unique EIN. The $10 million maximum loan amount under the PPP applies to every eligible business entity. Ashford applied for PPP loans for each qualified hotel property in full compliance with this guidance, and in the belief it was our obligation to protect our employees, vendors, communities, lenders and shareholders from unfair economic damage. Since we submitted our loan applications, the rules have changed almost daily. In fact, the SBA has issued numerous Interim Final Rules and at least 12 separate FAQs. For example, the SBA added the following new guidance relating to public companies on April 23, 2020 (weeks after we submitted our PPP applications): 31. Question: Do businesses owned by large companies with adequate sources of liquidity to support the business's ongoing operations qualify for a PPP loan? Answer: In addition…borrowers should review carefully the required certification that "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification. Ashford companies do not have "substantial market value" compared to the majority of other publicly-traded companies or even Ashford's own market values before the government shutdown actions. We also now have limited access to the capital markets across our companies. More recently, the SBA issued a Fifth Interim Final Rule on April 30, 2020, with the following addition: Can a single corporate group receive unlimited PPP loans? No. To preserve the limited resources available to the PPP program, and in light of the previous lapse of PPP appropriations and the high demand for PPP loans, businesses that are part of a single corporate group shall in no event receive more than $20,000,000 of PPP loans in the aggregate. For purposes of this limit, businesses are part of a single corporate group if they are majority owned, directly or indirectly, by a common parent. This limitation shall be immediately effective with respect to any loan that has not yet been fully disbursed as of April 30, 2020. Businesses are subject to this limitation even if the businesses are eligible for the waiver of affiliation provision under the CARES Act or are otherwise not considered to be affiliates under SBA's affiliation rules. While we believed then and continue to believe today that we qualify for PPP loans based on the legislation and rule-making in place at the time our applications were submitted, continuous SBA rule changes and evolving opinions by Administration officials have led us to conclude that we may no longer qualify. As a result, the Ashford Group of Companies will return all PPP funds on or before May 7, 2020, in accordance with SBA's previously announced safe harbor. Ashford management had no intention of crowding out any business from gaining equal access to the PPP funds, and could not have known that congressional appropriations for the program would be insufficient to cover the needs of all other businesses in the nation that have suffered similar harm. Congress and the Administration should have known but chose to restrict funding when the CARES Act was passed on March 27, only to provide additional funding later. In fact, Congress did not make any changes to the rules under which Ashford had already applied for and received funds when it passed its second version of the CARES Act nearly a month later on April 23. In the face of continuing confusion, the need for immediate government action to fix the PPP program and repair economic damage is acute and growing. "The hotel industry has been devastated by the COVID-19 pandemic and resulting National Emergency," commented Monty J. Bennett, Ashford Inc.'s Chairman and Chief Executive Officer and the Chairman of the Board of Ashford Trust and Braemar. "Hotel industry executives met with the Administration at the White House on March 17, 2020 to plead for help for our industry. We are disappointed that, in an abundance of caution to avoid any risk of non-compliance with the changed PPP rules, our actions mean that our employees, vendors, communities and others in need will not benefit from the PPP as Congress intended. We call on Congress, the Treasury Department and the Federal Reserve to provide assistance to the hotel industry to protect jobs and asset values that have been severely impaired as a result of the pandemic and the government's actions that have followed." Ashford Inc. provides global asset management, investment management and related services to the real estate and hospitality sectors. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts. Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about Ashford's strategy and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the registrant's control. These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: the impact of the novel strain of coronavirus (COVID-19) on our business; the ability of Ashford Trust to meet the NYSE continued listing standards; our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; general volatility of the capital markets and the market price of our common stock and preferred stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in the registrant's filings with the Securities and Exchange Commission. The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We will not publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise except to the extent required by law. View original content:http://www.prnewswire.com/news-releases/ashford-group-of-companies-takes-action-to-meet-changed-paycheck-protection-program-eligibility-guidelines-301051481.html SOURCE Ashford Inc.
3 May 01:00 • finanzen.ch • https://www.finanzen.ch/nachrichten/aktien/ashford-group-of-companies-takes-action-to-meet-changed-paycheck-protection-program-eligibility-guidelines-1029156876Rating: 0.95
Monty Bennett, Trump donor and largest recipient of PPP funds, will return money
The hotel conglomerate run by a major campaign donor to President Donald Trump, Monty Bennett, announced Saturday it would return all the money it received through the Paycheck Protection Program. “The Ashford Group of Companies announced today that all of its companies, including Ashford Inc. (NYSE American: AINC), Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust”), and Braemar Hotels & Resorts Inc. (NYSE: BHR) (“Braemar”), will return all funds provided by the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) due to the agency’s recently changed rules and inconsistent federal guidance that put the companies at compliance risk,” Bennett’s companies said in a statement emailed to investors. Bennett’s decision came two hours after Democratic nominee Joe Biden blasted Bennett, tweeting, “Monty Bennett should return the tens of millions of dollars he received, and we should give it to the small businesses that need it.” Bennett runs a conglomerate of 128 hotels, which received, collectively, more than $58 million through the PPP. Business Insider broke the news on April 23 that he won the money after contributing significantly to Trump’s re-election and spent $50,000 to hire two of the president’s fundraisers to lobby the administration for bailout money. A Bennett company spokesman did not immediately return a request for comment Saturday night. Two days ago, the Bennett spokesman said the company was still deciding whether to return the money. Spokespeople for the Treasury Department and Small Business Administration did not immediately return requests for comment Saturday. One week ago, Bennett announced he did not plan to return the money unless pressed to by the SBA. The Treasury Department announced on April 23 that it would require publicly traded companies, like Bennett’s to return the PPP money, following a massive public backlash as it was revealed some of the biggest recipients were large chains like Shake Shack and Ruth’s Chris Steakhouse. The fund, originally designed to help small businesses weather the COVID-19 pandemic, was quickly drained of the first infusion of $349 billion from Congress. Congress held an emergency series of meetings through April to approve another $300 billion for the program. Bennett pleaded his case through March as the COVID-19 outbreak racked his hotel conglomerate, which includes high-end properties like Ritz-Carltons, and more modest fare like Courtyard Suites, spread across the nation. He took to the airwaves to say he may not be able to make the coming debt payments on $4 billion of outstanding loans and had been forced to lay off 90% of the staff in his hotels. But it wasn’t until after he hired two prominent fundraisers for the Trump campaign, Jeff Miller and Roy Bailey, to lobby the Treasury Department, that loans started coming through for him. Bennett noted in a statement Saturday night that he was invited to the White House with other hotel owners on March 17 – one week after he hired Miller and Bailey to lobby for him. “The hotel industry has been devastated by the COVID-19 pandemic and resulting National Emergency,” Bennet said in a statement. “Hotel industry executives met with the Administration at the White House on March 17, 2020 to plead for help for our industry. We are disappointed that, in an abundance of caution to avoid any risk of non-compliance with the changed PPP rules, our actions mean that our employees, vendors, communities and others in need will not benefit from the PPP as Congress intended. We call on Congress, the Treasury Department and the Federal Reserve to provide assistance to the hotel industry to protect jobs and asset values that have been severely impaired as a result of the pandemic and the government’s actions that have followed.”
3 May 00:12 • Business Insider Malaysia • https://www.businessinsider.my/monty-bennett-trump-donor-will-return-ppp-money-2020-5Rating: 0.30
Monty Bennett, Trump donor and largest recipient of PPP funds, will return money
The hotel conglomerate run by a major campaign donor to President Donald Trump, Monty Bennett, announced Saturday it would return all the money it received through the Paycheck Protection Program. "The Ashford Group of Companies announced today that all of its companies, including Ashford Inc. (NYSE American: AINC), Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust"), and Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar"), will return all funds provided by the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") due to the agency's recently changed rules and inconsistent federal guidance that put the companies at compliance risk," Bennett's companies said in a statement emailed to investors. Bennett's decision came two hours after Democratic nominee Joe Biden blasted Bennett, tweeting, "Monty Bennett should return the tens of millions of dollars he received, and we should give it to the small businesses that need it." Bennett runs a conglomerate of 128 hotels, which received, collectively, more than $58 million through the PPP. Business Insider broke the news on April 23 that he won the money after contributing significantly to Trump's re-election and spent $50,000 to hire two of the president's fundraisers to lobby the administration for bailout money. A Bennett company spokesman did not immediately return a request for comment Saturday night. Two days ago, the Bennett spokesman said the company was still deciding whether to return the money. Spokespeople for the Treasury Department and Small Business Administration did not immediately return requests for comment Saturday. One week ago, Bennett announced he did not plan to return the money unless pressed to by the SBA. The Treasury Department announced on April 23 that it would require publicly traded companies, like Bennett's to return the PPP money, following a massive public backlash as it was revealed some of the biggest recipients were large chains like Shake Shack and Ruth's Chris Steakhouse. The fund, originally designed to help small businesses weather the COVID-19 pandemic, was quickly drained of the first infusion of $349 billion from Congress. Congress held an emergency series of meetings through April to approve another $300 billion for the program. Bennett pleaded his case through March as the COVID-19 outbreak racked his hotel conglomerate, which includes high-end properties like Ritz-Carltons, and more modest fare like Courtyard Suites, spread across the nation. He took to the airwaves to say he may not be able to make the coming debt payments on $4 billion of outstanding loans and had been forced to lay off 90% of the staff in his hotels. But it wasn't until after he hired two prominent fundraisers for the Trump campaign, Jeff Miller and Roy Bailey, to lobby the Treasury Department, that loans started coming through for him. Bennett noted in a statement Saturday night that he was invited to the White House with other hotel owners on March 17 — one week after he hired Miller and Bailey to lobby for him. "The hotel industry has been devastated by the COVID-19 pandemic and resulting National Emergency," Bennet said in a statement. "Hotel industry executives met with the Administration at the White House on March 17, 2020 to plead for help for our industry. We are disappointed that, in an abundance of caution to avoid any risk of non-compliance with the changed PPP rules, our actions mean that our employees, vendors, communities and others in need will not benefit from the PPP as Congress intended. We call on Congress, the Treasury Department and the Federal Reserve to provide assistance to the hotel industry to protect jobs and asset values that have been severely impaired as a result of the pandemic and the government's actions that have followed."
3 May 00:12 • Business Insider • https://www.businessinsider.com/monty-bennett-trump-donor-will-return-ppp-money-2020-5Rating: 4.40
Monty Bennett, Trump donor and largest recipient of PPP funds, will return money
The hotel conglomerate run by a major campaign donor to President Donald Trump, Monty Bennett, announced Saturday it would return all the money it received through the Paycheck Protection Program. “The Ashford Group of Companies announced today that all of its companies, including Ashford Inc. (NYSE American: AINC), Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust”), and Braemar Hotels & Resorts Inc. (NYSE: BHR) (“Braemar”), will return all funds provided by the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) due to the agency’s recently changed rules and inconsistent federal guidance that put the companies at compliance risk,” Bennett’s companies said in a statement emailed to investors. Bennett’s decision came two hours after Democratic nominee Joe Biden blasted Bennett, tweeting, “Monty Bennett should return the tens of millions of dollars he received, and we should give it to the small businesses that need it.” Bennett runs a conglomerate of 128 hotels, which received, collectively, more than $US58 million through the PPP. Business Insider broke the news on April 23 that he won the money after contributing significantly to Trump’s re-election and spent $US50,000 to hire two of the president’s fundraisers to lobby the administration for bailout money. A Bennett company spokesman did not immediately return a request for comment Saturday night. Two days ago, the Bennett spokesman said the company was still deciding whether to return the money. Spokespeople for the Treasury Department and Small Business Administration did not immediately return requests for comment Saturday. One week ago, Bennett announced he did not plan to return the money unless pressed to by the SBA. The Treasury Department announced on April 23 that it would require publicly traded companies, like Bennett’s to return the PPP money, following a massive public backlash as it was revealed some of the biggest recipients were large chains like Shake Shack and Ruth’s Chris Steakhouse. The fund, originally designed to help small businesses weather the COVID-19 pandemic, was quickly drained of the first infusion of $US349 billion from Congress. Congress held an emergency series of meetings through April to approve another $US300 billion for the program. Bennett pleaded his case through March as the COVID-19 outbreak racked his hotel conglomerate, which includes high-end properties like Ritz-Carltons, and more modest fare like Courtyard Suites, spread across the nation. He took to the airwaves to say he may not be able to make the coming debt payments on $US4 billion of outstanding loans and had been forced to lay off 90% of the staff in his hotels. But it wasn’t until after he hired two prominent fundraisers for the Trump campaign, Jeff Miller and Roy Bailey, to lobby the Treasury Department, that loans started coming through for him. Bennett noted in a statement Saturday night that he was invited to the White House with other hotel owners on March 17 – one week after he hired Miller and Bailey to lobby for him. “The hotel industry has been devastated by the COVID-19 pandemic and resulting National Emergency,” Bennet said in a statement. “Hotel industry executives met with the Administration at the White House on March 17, 2020 to plead for help for our industry. We are disappointed that, in an abundance of caution to avoid any risk of non-compliance with the changed PPP rules, our actions mean that our employees, vendors, communities and others in need will not benefit from the PPP as Congress intended. We call on Congress, the Treasury Department and the Federal Reserve to provide assistance to the hotel industry to protect jobs and asset values that have been severely impaired as a result of the pandemic and the government’s actions that have followed.”
3 May 00:12 • Business Insider Australia • https://www.businessinsider.com.au/monty-bennett-trump-donor-will-return-ppp-money-2020-5Rating: 0.30
Ashford Group to return $59 million U.S. payroll loan
(Reuters) - Ashford Group of companies, run by a donor of U.S. President Donald Trump, said on Saturday it would return a $58.7 million loan it received from the government's program to help small businesses survive the economic impact of the coronavirus. U.S. Senate Democratic leader Chuck Schumer had sent a letter to the Small Business Administration (SBA) demanding a review of all loans made to Ashford, run by Trump donor and Dallas hotelier Monty Bennett. According to media reports, the hospitality firm is the biggest known applicant of the government's small-business relief program. The company said it would return the funds due to the SBA's "recently changed rules" and "inconsistent federal guidance that put the companies at compliance risk." The group's publicly traded companies overseen by Bennett include Ashford Inc (A:AINC), Ashford Hospitality Trust Inc (N:AHT) and Braemar Hotels & Resorts Inc (N:BHR). Schumer said in his letter that he was "deeply concerned that large, publicly traded companies, like Ashford, may be exploiting the Program." The company said in its statement, "Some media and members of Congress have falsely implied" that Ashford accessed loopholes to qualify for the funds."
3 May 00:00 • Investing.com • https://www.investing.com/news/stock-market-news/ashford-group-to-return-59-million-us-payroll-loan-2158836Rating: 0.30
For A Smart Investor, Warren Buffett Has Slipped Up When It Comes To Airlines
3 May 00:00
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For A Smart Investor, Warren Buffett Has Slipped Up When It Comes To Airlines
Many people have made money investing in the airline industry. Warren Buffett is not among them. Buffett just sold again, arguably selling at a low point, since the three major airlines have near-zero bookings, fly at about 10% of capacity, face layoffs, expect to lose money in the current quarter, and just declared on their April earnings calls that they like to think they have enough liquidity to survive. Obviously the outlook is not spectacular. Airlines, disproportionately impacted by the coronavirus crisis, have generally lost at least half of their stock value this year. Although it is often said that the best advice is to buy low and sell high, Buffett’s Berkshire Hathaway said Saturday that it recently sold all of its holdings in the four biggest U.S. airlines: American, Delta, Southwest and United. The investment firm had owned 11% stake of Delta, 10% of American, 10% of Southwest and 9% of United. It began investing in airlines in 2016, after Buffett had been warning against airline investing for years At Berkshire’s virtual meeting on Saturday, Buffett said of the airline industry, “We put, whatever it was, seven or eight billion into it and we did not take out anything like seven or eight billion. “That was my mistake,” Buffett said. “We have sold the entire positions.” Before 2016, Buffett spent years fretting over an airline investing experience in 1989, when he purchased debt in US Airways. In an interview for the book “American Airways: Building the World’s Biggest Airline,” (Published in 2014 by McFarland & Co.) which I wrote with Dan Reed, I asked former US Airways CEO Ed Colodny about Buffett’s involvement with the airline, then called USAir. It began when hedge fund manager Michael Steinhardt appeared poised to launch a hostile bid for US Air, acquiring about 6% of the company. After a friend suggested that he talk with Buffet about protecting the airline from a hostile takeover, Colodny went to Omaha, where he and CFO William Loftus joined Buffett for lunch at Gorat’s Steak House, a Buffett favorite. “We spent a couple of hours talking about the airline, a very friendly casual conversation, and I had a great T-bone steak” Colodny said. “At the end of the discussion, Warren indicated he was interested in making an investment. We set up a small team to meet with his folks and two weeks later we had an agreement to sell him convertible preferred stock at 9.25%. After we made the deal, Michael Steinhardt went away. We never had any real problems with him.” Buffett bought $358 million worth of debt at 9.25%, convertible in two years to US Air stock at $60 a share, up from the trading price of $52. The shares represented about 12% of the company. Buffet and associate Charles Munger subsequently served a few years on the US Air board. The shares never appreciated, and Buffet never converted. “He wrote down his investment at one point, and he cashed out as soon as he was able,” Colodny said. “I think at the end of the day he got all his dividends paid and his principal back.” Nevertheless, over the past two decades Buffett has made a series of widely reported repudiations of airline investing, including this statement from a 2002 interview with the London newspaper The Telegraph: “If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money. “But seriously, the airline business has been extraordinary,” Buffett continued. “It has eaten up capital over the past century like almost no other business because people seem to keep coming back to it and putting fresh money in. You've got huge fixed costs; you've got strong labor unions and you've got commodity pricing. That is not a great recipe for success. I have an 800 (free call) number now that I call if I get the urge to buy an airline stock. I call at two in the morning and I say: 'My name is Warren and I'm an aeroholic.' And then they talk me down.” To sum up, Buffett invested in US Air, apparently broke even, advised himself never to do it again, ignored his own advice, and lost money in 2020. I have never invested in airlines, except for during a brief period in 2005 when I worked for US Airways, made two small investments in other carriers and broke even. I never imagined that the mechanics union AMFA would be foolish enough to strike Northwest. Right now, what I see is pent-up demand that will increase until we have a vaccine. I agree with Buffett: We probably have a long wait.
3 May 00:00 • Forbes • https://www.forbes.com/sites/tedreed/2020/05/03/for-a-smart-investor-warren-buffett-has-slipped-up-when-it-comes-to-airlines/Rating: 4.41
Warren Buffett discussed coronavirus, the economy, and stocks at Berkshire Hathaway's annual meeting. Here are the highlights., Business Insider - Business Insider Singapore
Warren Buffett discussed a range of topics at Berkshire Hathaway’s annual meeting on Saturday, famously described as “Woodstock for capitalists.” The famed investor and Berkshire CEO, along with Greg Abel, vice chairman of non-insurance operations, hosted the virtual event and answers questioned posed by journalists. The pair spoke hours after Berkshire released its first-quarter earnings. The company posted a record quarterly loss of about $50 billion, largely due to $55 billion in investment losses. It also grew its cash pile from $128 billion to $137 billion in the period, and sold about $6.1 billion in stock on a net basis in April, upending expectations that it would capitalize on the coronavirus sell-off and buy stocks on the cheap. Here are the highlights from the Berkshire annual meeting: Buffett opened the meeting by explaining the absence of Charlie Munger, his longtime partner. “Charlie is in fine shape, his mind is as good as ever, his voice is as strong as ever,” he said, but it “just didn’t seem like a good idea” for the 96-year-old to attend. “He’s added Zoom to his repertoire,” Buffett continued. “He’s just skipped right by me technologically. Like stepping over a peanut.” Buffett tackled the topic of coronavirus early on in the meeting. “It’s been a flip of the switch in a huge way in terms of national behavior, the national psyche, it’s dramatic,” he said. “There was an extraordinary wide variety of possibilities on both the health side and the economic side,” he continued. A few months on, it’s become clear that “we’re not getting a best case and we know we’re not getting a worst case.” “The range of possibilities is still extraordinarily wide,” he continued. “We do not know what happens when you shut down a substantial portion of society.” Whereas the train fell off the tracks in the 2008 financial crisis, Buffett said, “This time we just pulled the train off the tracks and put it on its siding.” Buffett discussed America’s rapid progress since its creation. “We are a very, very young country,” he said. “What we have accomplished is miraculous.” This story is still developing….
2 May 21:00 • www.businessinsider.sg • https://www.businessinsider.sg/warren-buffett-berkshire-hathaway-2020-annual-meeting-highlights-2020-5Rating: 0.30
Warren Buffett says Berkshire have sold ALL $4bn of its airline stocks because of the effect of the coronavirus, but tells investors they should still 'bet on America'
Berkshire Hathaway has sold all its airline stocks because of the coronavirus pandemic, but Warren Buffett is telling investors they should still 'bet on America'. The billionaire investor revealed the conglomerate has offloaded the entirety of its stocks in the US airline industry, waving goodbye to shares in United, American, Southwest and Delta Airlines, during the firm's annual shareholder meeting Saturday. In the same meeting, Buffett urged investors to hold onto stocks in businesses they like and to 'never bet against America' despite the mounting concerns over the long-term impact the virus is wreaking on the economy. More than 30 million Americans have lost their jobs since the outbreak began and gross domestic product plummeted 4.8 percent in the first quarter alone, officially plunging the US into its first recession since 2008. The airline industry has been one of the hardest-hit by the pandemic as borders closed, the federal government banned flights to and from some nations and stay-at-home orders have left the few planes still operating empty of passengers. Buffett confirmed Berkshire has sold its roughly 10 percent stake in the four largest airlines because the 'world has changed' for the industry. Back in December, Berkshire owned upwards of $4 billion in airline stocks including 42.5 million or a 10 percent stake in American, 58.9 million or a 9.2 percent stake in Delta, 51.3 million or a 10.1 percent stake in Southwest and 21.9 million or a 7.6 percent stake in United. 'The world has changed for the airlines. And I don't know how it's changed and I hope it corrects itself in a reasonably prompt way,' he said during Saturday's meeting, often dubbed Woodstock for Capitalists, which was held virtually. 'I don't know if Americans have now changed their habits or will change their habits because of the extended period.' The chairman and CEO warned that the current downturn could have an impact on consumer travel habits going on far longer than the virus itself. 'I think there are certain industries, and unfortunately, I think that the airline industry, among others, that are really hurt by a forced shutdown by events that are far beyond our control,' he said. 'I don't know whether two or three years from now, that as many people will fly as many passenger miles as they did last year ...The future is much less clear to me about how the business will turn out through absolutely no fault of the airlines themselves.'' Berkshire has sold the entirety of its stake because the company doesn't like to simply 'trim positions'. 'When we sell something, very often it's going to be our entire stake: We don't trim positions. That's just not the way we approach it any more than if we buy 100% of a business. We're going to sell it down to 90% or 80%,' he said. 'If we like a business, we're going to buy as much of it as we can and keep it as long as we can. And when we change our mind we don't take half measures.' Buffett went on to say that he likes the airlines, but that sometimes there are events 'on the lower levels of probabilities that happen' like the pandemic that mean investors need to change tact. However, the financial guru offered up somewhat contradictory advice as he recommended investors hold onto stocks they like and continue to 'bet on America'. 'If you owned the businesses that you liked prior to the virus arriving... nobody's forcing you to sell,' he said. 'Stocks have an enormous advantage and... if you bet on America, and sustain that position for decades, you're going to do better than, in my view far better than, owning treasuries securities.' Buffett said it is difficult to predict when and how the economy will recover as the US comes out of the other side of the crisis, but said investors should 'never bet against America'. 'We do not know exactly what happens when you voluntarily shut down a substantial portion of your society,'' he said. He said in the last recession of 2008 'our economic train went off the tracks... This time we just pulled the train off the tracks and put it on its siding.'' 'We may not know the answers to some very important questions for many years,'' he said. But he urged investors to 'never bet against America and that in my view is as true today at it was in 1789, and even was true during the Civil War and the depths of the Depression.' The stock market has been spirallng downward amid the pandemic, as businesses across many industries have taken a dramatic hit. Last month, JPMorgan Chase analysts warned investors to get ready for a 'vicious spiral' twice as worse as that seen in the 2008 global financial crisis. For airlines, a decade-long hot streak where the big players together earned tens of billions of dollars, bought new planes and hired thousands more workers was wiped out in a matter of weeks, when the pandemic ramped up. Government flight restrictions and border closures aimed at slowing the spread of coronavirus ravaged the industry. Planes have been pictured abandoned on runways as airlines cut thousands of flights, planes that do take off have barely anyone on board and thousands of staff have been laid off or furloughed to try to keep the industry afloat. American, United, Southwest and Delta all reported their first losses in years last month. The major players reached an agreement with the US Treasury in April for $25 billion in government aid to pay workers and avoid massive layoffs. But Buffett's own businesses haven't been immune to the pandemic either. His comments came the same day Berkshire Hathaway reported nearly $50 billion in losses in the first quarter, marking the greatest loss the company has ever suffered throughout its history. The conglomerate said most of its more than 90 businesses are facing 'relatively minor to severe' negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed 'essential'. The conglomerate – which owns companies including Geico auto insurance, Burlington Northern Santa Fe railroad, Dairy Queen and Duracel - said in a regulatory filing Saturday morning that before the coronavirus outbreak in mid-March many of its businesses were posting revenue and earnings increases compared to year ago. However, the pandemic has led the BNSF railroad's shipping of consumer products and coal to fall, while Geico set aside money for car insurance premiums it no longer expects to collect. Some businesses cut salaries and furloughed workers, and retailers such as See's Candies and the Nebraska Furniture Mart closed stores.
3 May 05:18 • Mail Online • https://www.dailymail.co.uk/news/article-8281613/Warren-Buffett-says-Berkshire-sold-airline-stocks-coronavirus.html?ns_mchannel=rss&ito=1490&ns_campaign=1490Rating: 4.11
Warren Buffett’s Berkshire Hathaway loses $50B during coronavirus pandemic
Cue the tiny violins: One of the world’s richest men has lost billions because of the coronavirus pandemic. Warren Buffett’s Berkshire Hathaway Inc. investment firm posted a quarterly net loss of $50 billion Saturday and reported that a number of its 90 operating businesses have been “severely affected,” according to Reuters. Buffett, 89, is nicknamed the Oracle of Omaha because of his Nebraska roots and investment savvy. He is the fifth-wealthiest billionaire, according to Forbes, with a personal net worth of about $72 billion. The other top four: Jeff Bezos, $138 billion; Bill Gates, $104 billion; Bernard Arnault, $94 billion; and Mark Zuckerberg, $75 billion. Berkshire saw two of its biggest businesses take particularly hard hits. BNSF Railway, North America’s largest freight railroad network, saw shipping volumes of consumer products and coal plummet, while insurance giant Geico set aside money for car premiums it probably won’t collect. The smaller operations cut salaries and furloughed workers, and retailers such as See’s Candies and Nebraska Furniture Mart closed stores. Berkshire reported buying a net $1.8 billion of stocks in the first quarter but selling a net $6.1 billion in April. The investment firm repurchased $1.7 billion of its own stock in the first quarter, but that was less than the prior quarter. The pandemic also has forced Buffett to cancel “Woodstock for Capitalists,” a weekend festival that normally draws tens of thousands of people to Omaha.
2 May 21:02 • New York Post • https://nypost.com/2020/05/02/warren-buffetts-berkshire-hathaway-loses-50b-amid-coronavirus/Rating: 2.55
Buffett stays on sidelines with cash rising to $137bn
Warren Buffett has been waiting years for stocks to look more attractive. He apparently didn’t think the first-quarter plunge was that opportunity.As the coronavirus slowdown started to grip the U.S., the famed investor’s Berkshire Hathaway Inc. was building its massive cash pile to a record $137 billion by the end of March. The company said that figure climbed even higher as it dumped more than $6 billion of stocks in April, making Buffett a net seller of equities so far this year. Buffett, who will host Berkshire’s annual meeting virtually later Saturday, has largely stayed in the shadows as the pandemic hammered the global economy and stock markets. That’s a contrast to the financial crisis in 2008, when his Omaha-based company dipped into its vast cash reserves to gain lucrative preferred shares and rescue businesses teetering on the edge of collapse. While Berkshire’s operating earnings climbed in the first quarter, Buffett warned of pain from the virus’s fallout. “As efforts to contain the spread of the Covid-19 pandemic accelerated in the second half of March and continued through April, most of our businesses were negatively affected, with the effects to date ranging from relatively minor to severe,” the company said in a regulatory filing Saturday. The sharp drop in stocks sparked a debate over whether the slide was overblown, with some financial leaders highlighting buying opportunities and others predicting more pain to come. Those looking to Buffett for bullish signs would be left wanting. Berkshire reduced its stock buybacks even as its shares saw their biggest quarterly decline in more than a decade, while the $6.1 billion of net equities sales in April far outstripped the $1.8 billion of net purchases in the year’s first three months. “Historically, he’s been pretty visible in the marketplace, encouraging investors to take advantage of market downturns and being greedy when others are fearful,” Jim Shanahan, an analyst at Edward Jones, said in a phone interview. “But if Buffett himself isn’t seeing opportunities, even in his own stock, what are we to think about the recent market selloff? Is it not a buying opportunity for long-term investors?” Berkshire’s Class A shares have dropped about 19% this year through Friday’s close, worse than the 12% decline in the S&P 500 over the same time period. Berkshire repurchased just $1.7 billion of its own stock, less than it did in the last three months of 2019. The company recently disclosed that it pared back stakes in Delta Air Lines Inc. and Southwest Airlines Co. as airlines have been pummeled by travel restrictions and stay-at-home orders worldwide. Buffett, Berkshire’s chairman and chief executive officer, has been on the hunt for higher-returning investments such as acquisitions or stock purchases for years, but has struggled amid what he called “sky-high” prices. That has prompted a range of questions about whether he can continue the market-beating run that turned Berkshire into one of the world’s most valuable companies. “He’s really careful about taking on risks that he can’t really ascertain, and I think that’s what’s happening now,” said Paul Lountzis, who oversees investments including Berkshire shares as president of Lountzis Asset Management. The conglomerate’s first-quarter net income plunged to a loss of $49.7 billion, driven by $55.5 billion in unrealized losses in the huge stock portfolio. Gains in the insurance unit’s investing portfolio helped push operating earnings up almost 6% to $5.87 billion. Berkshire started to see the Covid-19 pandemic affect units including its railroad, BNSF, which reported a 5.2% decrease in volume in the first quarter. Precision Castparts, which makes products for industrial and energy companies, reported lower sales across all of its major markets, partially because of the pandemic and Boeing Co.’s 737 Max issues. The company’s footwear and apparel businesses were also hit, reporting a 34% decline in earnings. The company said its essential businesses that have remained open saw revenue slow “considerably” in April, while many of those that had to close are being “severely impacted.” Berkshire didn’t record any goodwill impairments in the quarter, but said it may have to write down the value of some of its businesses at its next review in the fourth quarter. Still, the company called its liquidity and capital “extremely strong.” What Bloomberg Intelligence says “Berkshire Hathaway should still produce solid earnings and remain a bastion of financial strength, but stark 1Q declines bode poorly for 2020 comparisons.” – Matthew Palazola, senior industry analyst, and Derek Han, associate analyst Buffett will host the annual meeting starting at 3:45 p.m. in Omaha with key deputy Greg Abel by his side. Buffett’s longtime business partner, Charlie Munger, won’t be in attendance. Follow the TopLive blog here. Here are other details from Berkshire’s earnings report: © 2020 Bloomberg L.P.
2 May 20:11 • Moneyweb • https://www.moneyweb.co.za/news/international/buffett-stays-on-sidelines-with-cash-rising-to-137bn/Rating: 1.42
Buffett stays on sidelines with cash rising to $137 billion
By Katherine Chiglinsky Warren Buffett has been waiting years for stocks to look more attractive. He apparently didn’t think the first-quarter plunge was that opportunity. As the coronavirus slowdown started to grip the U.S., the famed investor’s Berkshire Hathaway Inc. was building its massive cash pile to a record $137 billion by the end of March. The company said that figure climbed even higher as it dumped more than $6 billion of stocks in April, making Buffett a net seller of equities so far this year. Buffett, who will host Berkshire’s annual meeting virtually later Saturday, has largely stayed in the shadows as the pandemic hammered the global economy and stock markets. That’s a contrast to the financial crisis in 2008, when his Omaha-based company dipped into its vast cash reserves to gain lucrative preferred shares and rescue businesses teetering on the edge of collapse. While Berkshire’s operating earnings climbed in the first quarter, Buffett warned of pain from the virus’s fallout. “As efforts to contain the spread of the Covid-19 pandemic accelerated in the second half of March and continued through April, most of our businesses were negatively affected, with the effects to date ranging from relatively minor to severe,” the company said in a regulatory filing Saturday. The sharp drop in stocks sparked a debate over whether the slide was overblown, with some financial leaders highlighting buying opportunities and others predicting more pain to come. Those looking to Buffett for bullish signs would be left wanting. Berkshire reduced its stock buybacks even as its shares saw their biggest quarterly decline in more than a decade, while the $6.1 billion of net equities sales in April far outstripped the $1.8 billion of net purchases in the year’s first three months. “Historically, he’s been pretty visible in the marketplace, encouraging investors to take advantage of market downturns and being greedy when others are fearful,” Jim Shanahan, an analyst at Edward Jones, said in a phone interview. “But if Buffett himself isn’t seeing opportunities, even in his own stock, what are we to think about the recent market selloff? Is it not a buying opportunity for long-term investors?” Throwing off CashBerkshire’s Class A shares have dropped about 19% this year through Friday’s close, worse than the 12% decline in the S&P 500 over the same time period. Berkshire repurchased just $1.7 billion of its own stock, less than it did in the last three months of 2019. The company recently disclosed that it pared back stakes in Delta Air Lines Inc. and Southwest Airlines Co. as airlines have been pummeled by travel restrictions and stay-at-home orders worldwide. Buffett, Berkshire’s chairman and chief executive officer, has been on the hunt for higher-returning investments such as acquisitions or stock purchases for years, but has struggled amid what he called “sky-high” prices. That has prompted a range of questions about whether he can continue the market-beating run that turned Berkshire into one of the world’s most valuable companies. “He’s really careful about taking on risks that he can’t really ascertain, and I think that’s what’s happening now,” said Paul Lountzis, who oversees investments including Berkshire shares as president of Lountzis Asset Management. The conglomerate’s first-quarter net income plunged to a loss of $49.7 billion, driven by $55.5 billion in unrealized losses in the huge stock portfolio. Gains in the insurance unit’s investing portfolio helped push operating earnings up almost 6% to $5.87 billion. Wild RideBerkshire started to see the Covid-19 pandemic affect units including its railroad, BNSF, which reported a 5.2% decrease in volume in the first quarter. Precision Castparts, which makes products for industrial and energy companies, reported lower sales across all of its major markets, partially because of the pandemic and Boeing Co.’s 737 Max issues. The company’s footwear and apparel businesses were also hit, reporting a 34% decline in earnings. The company said its essential businesses that have remained open saw revenue slow “considerably” in April, while many of those that had to close are being “severely impacted.” Berkshire didn’t record any goodwill impairments in the quarter, but said it may have to write down the value of some of its businesses at its next review in the fourth quarter. Still, the company called its liquidity and capital “extremely strong.” What Bloomberg Intelligence Says “Berkshire Hathaway should still produce solid earnings and remain a bastion of financial strength, but stark 1Q declines bode poorly for 2020 comparisons.” -- Matthew Palazola, senior industry analyst, and Derek Han, associate analyst Buffett will host the annual meeting starting at 3:45 p.m. in Omaha with key deputy Greg Abel by his side. Buffett’s longtime business partner, Charlie Munger, won’t be in attendance. Follow the TopLive blog here. Here are other details from Berkshire’s earnings report: • Berkshire’s businesses have implemented business-continuity plans to help weather the crisis and are “preparing for reduced cash flows from reduced revenues and economic activity as a result of Covid-19.” • Some operations have had to furlough employees, reduce wages and salaries, or cut back on capital spending to help mitigate the losses, Berkshire said in the report. See’s Candies, which Buffett bought in 1972, announced in early April that it would furlough retail workers and said more recently that it was testing reopening a few stores.
2 May 18:47 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/news/buffett-stays-on-sidelines-with-cash-rising-to-137-billion/articleshow/75512379.cmsRating: 0.30
Warren Buffett discussed coronavirus, the economy, and stocks at Berkshire Hathaway's annual meeting. Here are the highlights.
Warren Buffett discussed a range of topics at Berkshire Hathaway’s annual meeting on Saturday, famously described as “Woodstock for capitalists.” The famed investor and Berkshire CEO, along with Greg Abel, vice chairman of non-insurance operations, hosted the virtual event and answers questioned posed by journalists. The pair spoke hours after Berkshire released its first-quarter earnings. The company posted a record quarterly loss of about $50 billion, largely due to $55 billion in investment losses. It also grew its cash pile from $128 billion to $137 billion in the period, and sold about $6.1 billion in stock on a net basis in April, upending expectations that it would capitalize on the coronavirus sell-off and buy stocks on the cheap. Here are the highlights from the Berkshire annual meeting: Buffett opened the meeting by explaining the absence of Charlie Munger, his longtime partner. “Charlie is in fine shape, his mind is as good as ever, his voice is as strong as ever,” he said, but it “just didn’t seem like a good idea” for the 96-year-old to attend. “He’s added Zoom to his repertoire,” Buffett continued. “He’s just skipped right by me technologically. Like stepping over a peanut.” Buffett tackled the topic of coronavirus early on in the meeting. “It’s been a flip of the switch in a huge way in terms of national behavior, the national psyche, it’s dramatic,” he said. “There was an extraordinary wide variety of possibilities on both the health side and the economic side,” he continued. A few months on, it’s become clear that “we’re not getting a best case and we know we’re not getting a worst case.” “The range of possibilities is still extraordinarily wide,” he continued. “We do not know what happens when you shut down a substantial portion of society.” Whereas the train fell off the tracks in the 2008 financial crisis, Buffett said, “This time we just pulled the train off the tracks and put it on its siding.” This story is still developing….
2 May 23:06 • Business Insider Nederland • https://www.businessinsider.nl/warren-buffett-berkshire-hathaway-2020-annual-meeting-highlights-2020-5/Rating: 0.30
Warren Buffett discussed coronavirus, the economy, and stocks at Berkshire Hathaway’s annual meeting. Here are the highlights.
Warren Buffett discussed a range of topics at Berkshire Hathaway’s annual meeting on Saturday, famously described as “Woodstock for capitalists.” The famed investor and Berkshire CEO, along with Greg Abel, vice chairman of non-insurance operations, hosted the virtual event and answers questioned posed by journalists. The pair spoke hours after Berkshire released its first-quarter earnings. The company posted a record quarterly loss of about $50 billion, largely due to $55 billion in investment losses. It also grew its cash pile from $128 billion to $137 billion in the period, and sold about $6.1 billion in stock on a net basis in April, upending expectations that it would capitalize on the coronavirus sell-off and buy stocks on the cheap. Here are the highlights from the Berkshire annual meeting: Buffett opened the meeting by explaining the absence of Charlie Munger, his longtime partner. “Charlie is in fine shape, his mind is as good as ever, his voice is as strong as ever,” he said, but it “just didn’t seem like a good idea” for the 96-year-old to attend. “He’s added Zoom to his repertoire,” Buffett continued. “He’s just skipped right by me technologically. Like stepping over a peanut.” Buffett tackled the topic of coronavirus early on in the meeting. “It’s been a flip of the switch in a huge way in terms of national behavior, the national psyche, it’s dramatic,” he said. “There was an extraordinary wide variety of possibilities on both the health side and the economic side,” he continued. A few months on, it’s become clear that “we’re not getting a best case and we know we’re not getting a worst case.” “The range of possibilities is still extraordinarily wide,” he continued. “We do not know what happens when you shut down a substantial portion of society.” Whereas the train fell off the tracks in the 2008 financial crisis, Buffett said, “This time we just pulled the train off the tracks and put it on its siding.” Buffett discussed America’s rapid progress since its creation. “We are a very, very young country,” he said. “What we have accomplished is miraculous.” This story is still developing….
2 May 21:00 • Business Insider Malaysia • https://www.businessinsider.my/warren-buffett-berkshire-hathaway-2020-annual-meeting-highlights-2020-5Rating: 0.30
Warren Buffett discussed coronavirus, the economy, and stocks at Berkshire Hathaway's annual meeting. Here are the highlights.
Warren Buffett discussed a range of topics at Berkshire Hathaway’s annual meeting on Saturday, famously described as “Woodstock for capitalists.” The famed investor and Berkshire CEO, along with Greg Abel, vice chairman of non-insurance operations, hosted the virtual event and answers questioned posed by journalists. The pair spoke hours after Berkshire released its first-quarter earnings. The company posted a record quarterly loss of about $US50 billion, largely due to $US55 billion in investment losses. It also grew its cash pile from $US128 billion to $US137 billion in the period, and sold about $US6.1 billion in stock on a net basis in April, upending expectations that it would capitalise on the coronavirus sell-off and buy stocks on the cheap. Here are the highlights from the Berkshire annual meeting: Buffett opened the meeting by explaining the absence of Charlie Munger, his longtime partner. “Charlie is in fine shape, his mind is as good as ever, his voice is as strong as ever,” he said, but it “just didn’t seem like a good idea” for the 96-year-old to attend. “He’s added Zoom to his repertoire,” Buffett continued. “He’s just skipped right by me technologically. Like stepping over a peanut.” Buffett tackled the topic of coronavirus early on in the meeting. “It’s been a flip of the switch in a huge way in terms of national behaviour, the national psyche, it’s dramatic,” he said. “There was an extraordinary wide variety of possibilities on both the health side and the economic side,” he continued. A few months on, it’s become clear that “we’re not getting a best case and we know we’re not getting a worst case.” “The range of possibilities is still extraordinarily wide,” he continued. “We do not know what happens when you shut down a substantial portion of society.” Whereas the train fell off the tracks in the 2008 financial crisis, Buffett said, “This time we just pulled the train off the tracks and put it on its siding.” Buffett discussed America’s rapid progress since its creation. “We are a very, very young country,” he said. “What we have accomplished is miraculous.” This story is still developing….
2 May 21:00 • Business Insider Australia • https://www.businessinsider.com.au/warren-buffett-berkshire-hathaway-2020-annual-meeting-highlights-2020-5Rating: 0.30
Warren Buffett discussed bailouts, coronavirus, and selling airline stocks at Berkshire Hathaway's annual meeting. Here are the highlights.
Warren Buffett held forth on airlines, buybacks, bailouts, coronavirus, the US economy, oil prices, and other topics at Berkshire Hathaway's annual meeting on Saturday, often described as "Woodstock for capitalists." The famed investor and Berkshire CEO, along with Greg Abel, vice chairman of non-insurance operations, hosted the virtual event and answered several questions. The event was livestreamed by Yahoo Finance. The pair spoke hours after Berkshire released its first-quarter earnings. The company posted a record quarterly net loss of about $50 billion, largely due to $55 billion in investment losses. It also grew its cash pile from $128 billion to $137 billion in the period, and sold about $6.1 billion in stock on a net basis in April, upending expectations that it would capitalize on the coronavirus sell-off and buy stocks on the cheap. Read more:GOLDMAN SACHS: Buy these 13 stocks primed to keep delivering powerful dividends as their peers are forced to slash payouts Here are the highlights from the Berkshire annual meeting: Buffett opened the meeting by lamenting the absence of Charlie Munger, Berkshire's vice chairman and his longtime partner. "Charlie is in fine shape, his mind is as good as ever, his voice is as strong as ever," he said. It "just didn't seem like a good idea" for the 96-year-old to fly from his California home to attend the meeting in Omaha, Nebraska. "He's added Zoom to his repertoire," Buffett continued, referring to the video-conferencing app. "He's just skipped right by me technologically. Like stepping over a peanut." Buffett discussed the impact of the coronavirus pandemic. "It's been a flip of the switch in a huge way in terms of national behavior, the national psyche, it's dramatic," he said. "There was an extraordinarily wide variety of possibilities on both the health side and the economic side," Buffett continued. A few months on, it's become clear that "we're not getting a best case and we know we're not getting a worst case." "The range of possibilities is still extraordinarily wide," Buffett continued. "We do not know what exactly happens when you shut down a substantial portion of your society." Whereas the US economy went off the tracks in the 2008 financial crisis, Buffett said, "This time we just pulled the train off the tracks and put it on its siding." Read more:'Beware of the oddity': A Wall Street firm studied every market crash over the last 150 years to reveal how abnormal this one is — and concluded that stocks are doomed for another fall Buffett offered historical context for the current disruption by reflecting on the Great Depression. He pointed out that someone who invested on the day of his birth in August 1930 needed to wait more than 20 years to make back their money. He also discussed the challenges that his father faced at that time, when he had no job and two children to feed, but couldn't access his savings as the bank was closed. "Don't worry about your groceries," Buffett's grandfather, who owned a grocery store where Buffett and Munger worked as children, told his father. "I'll let your bill run." "He cared about his family, but he wasn't going to go crazy," Buffett joked. When the Dow Jones passed the 381 mark in the 1950s, he said, investors feared the market was overheated and it was going to be 1929 again. Buffett's mentor and boss at the time, Benjamin Graham, was called to Washington along with a slew of other experts to assess whether the US economy was in trouble. Now, the Dow is above 24,000. "You're looking at a market today that has produced $100 for every $1," Buffett said. "Nothing can stop America when you get right down to it." "We are now a better country as well as an incredibly more wealthy country than we were in 1789," the next slide read. "We have gone dramatically in the right direction," Buffett said. Read more:'Brace for selling': A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now — opening the floodgates for a 'sell in May' episode Buffett applied his optimistic outlook to the pandemic threat. He also underlined his company's commitment to funding its own operations, and warned against the dangers of debt. "When something like the current pandemic happens, it's hard to factor that in and that's why you never want to use borrowed money to buy into investments," he said. "We run Berkshire that way." "There's no reason to use borrowed money to participate in the American tailwind," he added. Buffett also trumpeted the merits of stocks. Equities are an "enormously sound investment," he said, that will outperform US Treasuries and the money people have stashed under their mattresses over time. Buffett also discouraged people from selling stocks purely because their prices change. "If you owned the businesses you liked prior to the virus arriving, it changed prices, but nobody's forcing you to sell." The Berkshire boss recommended "the best thing" for investors to bet on is the S&P 500 index, as it gives them a broad cross-section of American businesses. "I will bet on America the rest of my life," Buffett said. "I hope I've convinced you to bet on America." Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won't end as quickly as it began and shares an investing strategy for the next 3 years and beyond. Buffett described the impact of coronavirus on Berkshire's numerous companies. "For some period, certainly during the balance of the year ... our operating earnings will be considerably less than if the virus hadn't come along," he said. "It hurts some of our businesses a lot." While Berkshire's three biggest businesses — insurance, the BNSF railroad, and Berkshire Hathaway Energy — are in a "reasonably decent" position," Buffett said, other businesses have been "effectively shut down." Buffett also defended the company's vast cash reserves. "We don't want to be dependent on the kindness of friends even," Buffett said, let alone strangers. "There are times when money almost stops," he added, pointing to the 2008 financial crisis and the liquidity crunch just over a month ago. "Investment-grade companies were essentially going to be frozen out of the market" in late March, Buffett said, before the Federal Reserve "reacted in a huge way." "Fear is the most contagious disease you can imagine, makes the virus look like a piker," he added, using a term for a gambler who only makes small bets. Buffett shed some light on Berkshire's stock-market activity in recent months. "We did very little in the first quarter," he said. However, he pointed to Berkshire's sales of $6.1 billion in stocks on a net basis in April, and explained that figure reflected its exit from positions in the "big four" US airlines. "It turned out I was wrong," Buffett said about his bets on American, Delta, United, and Southwest. He explained that the airline business has "changed in a very major way." The investor questioned whether people would fly as much in the next two or three years as they did last year. Even if 70% or 80% of the airline business returns, he said, the carriers could end up with "too many planes." Later, he added that an oversupply of airline seats would drive down prices, and it was unclear how long the airlines would have to sustain billions of dollars in operating losses due to the pandemic. Moreover, they will have to repay their recent loans from the government out of their earnings, he said. The carriers also agreed to hand over warrants that the Treasury can exercise to buy their shares at a discount in the future then sell them for a profit, potentially weighing on their stock prices down the line. "The future is much less clear to me," Buffett said about the airline business. Buffett addressed the question of whether Berkshire would be bailing out companies as it did during the financial crisis. He said that the Fed's speed in lending to struggling companies meant there was less need for Berkshire's cash this time around, and the right opportunity was yet to come its way. "We haven't done anything because we don't see anything that attractive to do," Buffett said. However, there was some early interest, he added. "There was a period right before the Fed acted," the investor said. "We were getting calls. A number of them were able to get money in the public market, frankly at terms that we wouldn't have given them." Buffett and Abel added that none of Berkshire's fully owned businesses have applied for government aid. Buffett detailed the tough situation at See's Candies, the Berkshire-owned chocolate maker that he's described as his "dream business." "We were in the midst of our Easter season, and Easter is a big sales period for See's," he said. "See's business stopped and it's a very seasonal business to start with. We have a lot of Easter candy. Easter candy's kind of specialized too, we won't sell it." He also acknowledged that not all of Berkshire's businesses will last, giving the example of Blue Chip Stamps, a trading stamps company that he invested in back in the 1970s. Buffett tackled the topic of Berkshire's underperformance versus the S&P 500 in recent years. "The truth is I recommend the S&P 500 to people," he said. "Berkshire is about as sound as any single investment can be in terms of earning reasonable returns over time, but I would not want to bet my life on whether we beat the S&P 500 over the next 10 years." While Berkshire's sheer scale makes it difficult to beat the broader market, Buffett said, it has some upsides. "We're better positioned than anyone in the energy business," he said, citing the fact it doesn't have to pay dividends. "We can do things in insurance that nobody else can do." Buffett lauded Ajit Jain, Berkshire's vice chairman of insurance operations. He praised his intelligence, revealing that he wrote to Jain's father a few years after he joined Berkshire to say, "If you've got another son like this, send him over from India, and we'll rule the world." Buffett weighed in on the plunge in oil prices in recent weeks. He defended his $10 billion investment in Occidental Petroleum, saying "it was attractive at oil prices that then prevailed." Now, he continued, "it does not pay to drill." "Any shareholder in any oil-producing company, you join me in having made a mistake so far in where oil prices went," Buffett added. "Who knows where they go in the future." If oil prices remain low, he continued, at least some energy companies are likely to default on their loans, hurting their shareholders and causing headaches for the banking industry. "There's going to be a whole lot of money [lost]," Buffett said. Buffett considered the prospect of negative interest rates as central banks around the world cut rates to almost zero in order to stimulate their economies. "Probably the most interesting question that I've seen in economics," he said. "We're doing things that we don't know [their] ultimate outcome," Buffett continued, warning of "extreme consequences." The puzzle of what negative rates would do to US financial markets is "the most important question in the world," he said in March. "And I don't know the answer." Buffett doubled down on his defense of buybacks as an efficient way of distributing cash to shareholders. The practice is facing fresh criticism after the "big four" airlines repurchased billions' worth of their stock in recent years, then clamored for government aid when they were caught short of cash by the coronavirus outbreak. "It's very politically correct to be against buybacks," Buffett said. "There's a lot of crazy things said on buybacks." While he's witnessed some cases of "stupid" buybacks, they aren't immoral, he added. Buffett answered a question about why Berkshire didn't repurchase more of its shares when they plunged in late March. The investor seemed to suggest that Berkshire's intrinsic value fell roughly in line with its stock price during the market meltdown. "I don't feel that it's far more compelling to buy Berkshire shares now than I did three months or six months or a year ago," Buffett said. "Berkshire is worth less today because I took that position than if I hadn't," he said about its airline investments. Buffett praised the Paycheck Protection Program, the government initiative to loan money to small businesses to help them weather the pandemic. "It's a very good idea to take care of the people that are having terrible trouble taking care of themselves," Buffett said. He expected some amount of fraud, but gave "real credit" to Congress for acting promptly to help the millions of people left jobless by the outbreak. Comedian Bill Murray submitted a similar question about how the country would reward the grocery-store cashiers, delivery drivers, warehouse workers, and others who will make up "a new class of war veterans." "It's like people that landed in Normandy," Buffett said. "The poor, the disadvantaged, there's an unimaginable suffering. They're working 24-hour days and we don't even know their names." "We ought to do something that can help those people," he added, referring more broadly to Americans struggling to make ends meet. "Nobody should be left behind."
2 May 17:03 • Business Insider • https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-2020-annual-meeting-highlights-2020-5-1029156864Rating: 0.30
Buffett Stays on Sidelines With Cash Rising to $137 Billion
(Bloomberg) — Warren Buffett has been waiting years for stocks to look more attractive. He apparently didn’t think the first-quarter plunge was that opportunity. As the coronavirus slowdown started to grip the U.S., the famed investor’s Berkshire Hathaway Inc. was building its massive cash pile to a record $137 billion by the end of March. The company said that figure climbed even higher as it dumped more than $6 billion of stocks in April, making Buffett a net seller of equities so far this year. Buffett, who will host Berkshire’s annual meeting virtually later Saturday, has largely stayed in the shadows as the pandemic hammered the global economy and stock markets. That’s a contrast to the financial crisis in 2008, when his Omaha-based company dipped into its vast cash reserves to gain lucrative preferred shares and rescue businesses teetering on the edge of collapse. While Berkshire’s operating earnings climbed in the first quarter, Buffett warned of pain from the virus’s fallout. “As efforts to contain the spread of the Covid-19 pandemic accelerated in the second half of March and continued through April, most of our businesses were negatively affected, with the effects to date ranging from relatively minor to severe,” the company said in a regulatory filing Saturday. The sharp drop in stocks sparked a debate over whether the slide was overblown, with some financial leaders highlighting buying opportunities and others predicting more pain to come. Those looking to Buffett for bullish signs would be left wanting. Berkshire reduced its stock buybacks even as its shares saw their biggest quarterly decline in more than a decade, while the $6.1 billion of net equities sales in April far outstripped the $1.8 billion of net purchases in the year’s first three months. “Historically, he’s been pretty visible in the marketplace, encouraging investors to take advantage of market downturns and being greedy when others are fearful,” Jim Shanahan, an analyst at Edward Jones, said in a phone interview. “But if Buffett himself isn’t seeing opportunities, even in his own stock, what are we to think about the recent market selloff? Is it not a buying opportunity for long-term investors?” Berkshire’s Class A shares have dropped about 19% this year through Friday’s close, worse than the 12% decline in the S&P 500 over the same time period. Berkshire repurchased just $1.7 billion of its own stock, less than it did in the last three months of 2019. The company recently disclosed that it pared back stakes in Delta Air Lines Inc. and Southwest Airlines Co. as airlines have been pummeled by travel restrictions and stay-at-home orders worldwide. Buffett, Berkshire’s chairman and chief executive officer, has been on the hunt for higher-returning investments such as acquisitions or stock purchases for years, but has struggled amid what he called “sky-high” prices. That has prompted a range of questions about whether he can continue the market-beating run that turned Berkshire into one of the world’s most valuable companies. “He’s really careful about taking on risks that he can’t really ascertain, and I think that’s what’s happening now,” said Paul Lountzis, who oversees investments including Berkshire shares as president of Lountzis Asset Management. The conglomerate’s first-quarter net income plunged to a loss of $49.7 billion, driven by $55.5 billion in unrealized losses in the huge stock portfolio. Gains in the insurance unit’s investing portfolio helped push operating earnings up almost 6% to $5.87 billion. Berkshire started to see the Covid-19 pandemic affect units including its railroad, BNSF, which reported a 5.2% decrease in volume in the first quarter. Precision Castparts, which makes products for industrial and energy companies, reported lower sales across all of its major markets, partially because of the pandemic and Boeing Co.’s 737 Max issues. The company’s footwear and apparel businesses were also hit, reporting a 34% decline in earnings. The company said its essential businesses that have remained open saw revenue slow “considerably” in April, while many of those that had to close are being “severely impacted.” Berkshire didn’t record any goodwill impairments in the quarter, but said it may have to write down the value of some of its businesses at its next review in the fourth quarter. Still, the company called its liquidity and capital “extremely strong.” What Bloomberg Intelligence Says “Berkshire Hathaway should still produce solid earnings and remain a bastion of financial strength, but stark 1Q declines bode poorly for 2020 comparisons.” — Matthew Palazola, senior industry analyst, and Derek Han, associate analyst Buffett will host the annual meeting starting at 3:45 p.m. in Omaha with key deputy Greg Abel by his side. Buffett’s longtime business partner, Charlie Munger, won’t be in attendance. Follow the TopLive blog here. Here are other details from Berkshire’s earnings report: Berkshire’s businesses have implemented business-continuity plans to help weather the crisis and are “preparing for reduced cash flows from reduced revenues and economic activity as a result of Covid-19.”Some operations have had to furlough employees, reduce wages and salaries, or cut back on capital spending to help mitigate the losses, Berkshire said in the report. See’s Candies, which Buffett bought in 1972, announced in early April that it would furlough retail workers and said more recently that it was testing reopening a few stores. ©2020 Bloomberg L.P. Bloomberg.com
2 May 15:02 • Financial Post • https://business.financialpost.com/pmn/business-pmn/buffett-stays-on-sidelines-with-cash-rising-to-137-billionRating: 0.94
How ‘the single best trade of all time’ netted one investor a $2.6 billion profit
Bill Ackman had a hunch back in February that the coronavirus pandemic would have a greater impact on the stock market than investors were pricing in, so he essentially made a wager that the bubble would burst and started setting up a $27 million hedge. The Pershing Square hedge-fund manager then watched as the virus spread and the market tanked, turning his relatively modest bearish bet into a $2.6 billion winner. He cashed out on March 23. In an op-ed for the New York Times, author and former investment banker William Cohan called Ackman’s move perhaps “the single best trade of all time.” Ackman explained the thinking behind the hedge in a recent podcast. “We said, ‘You know what, we’ve got this massive position ... which maybe has the potential to double if credit spreads widen to where they were during the financial crisis,” he told the Knowledge Project. “‘But if they don’t, and the government takes the right steps, this hedge could be worth zero, and the stock market could go right back up to where it was.’ So we made the decision to exit.” At that point, Ackman explained, he got out with his tidy profit and started buying stocks. He then invested more than $3 billion in risk assets, a move that also proved prescient as the Fed started pumping money into the system and stocks rallied hard off the coronavirus bottom. Aside from dishing on his big windfall, the billionaire said he admires Tesla’s Elon Musk but questioned whether he should perhaps lay off Twitter TWTR, -0.56% for awhile. “I don’t know that Elon Musk has been the ideal public-company CEO,” Ackman said during the podcast. “He had a challenging period there with his tweets.” Ackman also talked about Warren Buffett and how Berkshire Hathaway BRK.A, -1.04%BRK.B, -1.07% likely bought back its own shares as well as other stocks during the market drop. “I’m surprised they haven’t done anything yet that’s visible, but my guess is they’ve been buying stocks a lot,” Ackman told host Shane Parrish. “The big opportunity for Berkshire is Berkshire itself.” You can listen to the full interview on the Farnham Street blog platform or via YouTube:
2 May 13:31 • MarketWatch • https://www.marketwatch.com/story/how-the-single-best-trade-of-all-time-netted-one-investor-a-26-billion-profit-2020-04-29Rating: 0.30
Warren Buffett says the coronavirus cannot stop America, or Berkshire Hathaway
(This May 2 story has been refiled to correct the spelling of "towel" in second paragraph) By Jonathan Stempel and Megan Davies (Reuters) - Billionaire investor Warren Buffett on Saturday said the United States' capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the economy and his investments. Over more than 4-1/2 hours at the annual meeting of Berkshire Hathaway Inc (N:BRKa), Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the towel on a multi-billion-dollar bet on U.S. airlines. Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska with 1-3/4 hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year's bear market, even if the pandemic gets a second wind late this year. Illustrating his remarks with dozens of plain black-and-white slides, Buffett called dealing with the pandemic "quite an experiment" that had an "extraordinarily wide" range of possible economic outcomes. But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression. American "magic" prevailed before and would do again, he said. "Nothing can stop America when you get right down to it," Buffett said. "I will bet on America the rest of my life." The meeting was held virtually for the first time because of the pandemic, without shareholders in attendance, and streamed by Yahoo (NASDAQ:AABA) Finance. Buffett and Vice Chairman Greg Abel, 57, spent nearly 2-1/2 hours answering shareholder questions posed by a reporter. Abel has day-to-day oversight of Berkshire's non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive. BERKSHIRE EXITS AIRLINES The meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp (N:BAC) and Apple Inc (O:AAPL) during the market meltdown. While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19, the illness caused by the novel coronavirus. Buffett said operating earnings will, through at least this year, be "considerably less" than they would have been had the pandemic not occurred. Berkshire's cash stake ended the quarter at a record $137.3 billion, though Buffett said "we're willing to do something very big," perhaps a $30 billion to $50 billion transaction. But it won't be in U.S. airlines, after Buffett confirmed that Berkshire in April sold its "entire positions" in the four largest: American Airlines Group Inc (O:AAL), Delta Air Lines Inc (N:DAL), Southwest Airlines Co (N:LUV) and United Airlines Holdings Inc (O:UAL). Buffett said he "made a mistake" investing in the sector, which the pandemic has changed "in a very major way" with no fault of the airlines, leaving limited upside for investors. "It is basically that we shut off air travel in this country," he said. The meeting was devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls "Woodstock for Capitalists." ABEL SHARES THE STAGE Abel stood in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions. Buffett said Munger was in "fine shape" and "good health," and looked forward to attending Berkshire's 2021 annual meeting. Vice Chairman Ajit Jain, 68, who oversees Berkshire's insurance businesses and is also considered a possible CEO candidate, was also absent from the meeting. Abel lives closer to Omaha than Munger and Jain. Berkshire has said its board of directors knows who would become CEO if Buffett died or became incapacitated. Buffett's eldest son Howard would likely become non-executive chairman, and portfolio managers Todd Combs and Ted Weschler could succeed Buffett as chief investment officer. Abel told investors "I don't see the culture of Berkshire changing" after Buffett and Munger are no longer there. He also said Berkshire was likely to expand its workforce, which totaled 391,539 people at year end, even though some businesses have furloughed employees and cut salaries since the pandemic began, and could start resorting to layoffs. Berkshire wouldn't be alone. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18% of the workforce, a level not seen since the Great Depression. Abel nonetheless said that in five years, "we see our employment numbers being far greater than they are today." Shareholders also elected Kenneth Chenault, a former chief executive of longtime Berkshire holding American Express Co (N:AXP), to Berkshire's board, making him the company's first African American director.
2 May 00:00 • Investing.com • https://www.investing.com/news/coronavirus/buffett-says-coronavirus-cannot-stop-america-2158795Rating: 0.30
Normally $200, you can get over 100 WooCommerce plugins for just $39
3 May 09:00
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Normally $200, you can get over 100 WooCommerce plugins for just $39
TL;DR: Make your store's website stand out from the rest with this WooCommerce 110+ Premium Plug-in Bundle for $39, an 80% savings as of May 3. The e-commerce industry is thriving. Even before recent events, shopping for necessities online was already the norm, but since the pandemic struck, purchasing goods over the internet went into complete overdrive. It's not just because retail giants have doubled down on their e-commerce efforts — many people have been opening their own online stores, too. Some have begun selling unwanted items they found lying around during their social distancing time at home, while some have started monetizing their hobbies and selling their goods online to earn some extra cash. If you happened to be one of those people and chose WordPress and WooCommerce to set up shop, you may want to consider sprucing up your storefront and marketing to attract more customers. The WooCommerce 110+ Premium Plug-in Bundle has tons of features and goodies that'll help extend the functionality of your store. There's an anti-fraud plugin to help you pick up fraudulent transactions as they happen, a compare products feature that assists your customers with comparing items, a dynamic pricing plugin that automatically sets discounts for the buyer's basket, and hundreds of other useful tools. Check out the full list here. From one-page checkout and payments to Google Analytics to MailChimp, these plugins will make your store stand out from the pack — and you won't have to hire a pricey developer along the way. The bundle is valued at $199.99, but you can get it on sale for $39. WooCommerce 110+ Premium Plugin Bundle — $39See Details
3 May 09:00 • Mashable • https://mashable.com/shopping/may-3-woocommerce-plugin-bundle-sale/?europe=true&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Mashable+%28Mashable%29Rating: 2.28
Macy’s, Costco, Trader Joe’s, Zappos Approaching Return Of Retail From Many Angles
Most big American retailers have been shut down tight for more than six weeks. They closed in a seemingly random order across the country, leaving only stores selling essential goods – like super markets, drug stores and discounters with household products – and some outliers like those selling guns, crafts, liquor and sporting goods, open. Just as randomly, as we perhaps start to enter what some are calling the PostPad period, we are now seeing some of these retailers – both ones that were shuttered and some that remained open but were making it up as they went along – adapting policies and procedures to address what entrepreneur Mark Cuban has called The New Abnormal. And similar to the shutdown these are all over the place too. Here’s a look at how four of the major national retailers are moving onto the next stage of this economic crisis: Macy’s On Monday Macy’s plans to open 68 of its approximately 775 stores, choosing states like Georgia and South Carolina where governors have relaxed restrictions, even as these states are not meeting federally suggested guidelines for reductions in infection levels. About a quarter of these stores will be located in malls operated by Simon Properties which aggressively opened 49 of its shopping centers last Friday, coincidentally the day May rents were due from its tenants. The reopening Macy’s stores will have reduced hours, all kinds of social distancing and health and safety measures including having employees wear masks. Masks for shoppers appear to be optional. Mall-based stores are expected to have an especially tough time restarting as surveys show as much as 45% of the population says it will avoid going to these places, at least at first. Shopping centers in China and Europe that have reopened have had mixed results in getting shoppers to return. Macy’s CEO Jeff Gennette understands none of this is going to be easy. He told CNBC, “I retain this optimism for our role in American retail…but everything was affected … all of us, are going to have some tough years." Costco Unlike the mask-optional policy at Macy’s, Costco has moved to a mandatory mask requirement. Though the warehouse club has remained open during the pandemic it said last week that starting on Monday it will require employees and shoppers to wear masks when they are in the store. As such, they are believed to be the first major retailer to make this required even though many stores are having at least their workers wear masks and many shoppers are doing that as well. “The use of a mask or face covering should not be seen as a substitute for social distancing. Please continue to observe rules regarding appropriate distancing while on Costco premises,” the company said. One can assume that if you don’t happen to have a mask on hand, Costco will be glad to sell you 144 of them. Trader Joe’s Another retailer that has remained open selling food and essential merchandise, the eclectic super market is also taking a contrarian position when it comes to adapting some of the techniques like home delivery and curbside pick-up that other grocers have employed: it’s not doing either. In a company podcast reported on in the online site SF Gate, the company offered unusual reasoning for the decision. “Creating an online shopping system for curbside pickup or the infrastructure for delivery, it's a massive undertaking. It's something that takes months or years to plan, build and implement and it requires tremendous resources. Well, at Trader Joe's, the reality is that over the last couple of decades we've invested those resources in our people rather than build an infrastructure that eliminates the need for people." And while Trader Joe’s employees and the company culture that supports them is one of the most treasured cornerstones of their business one has to wonder if this is the real reason. Other retailers, like Michael’s, have rolled out curbside pick-up systems in a matter of weeks and home deliveries are exploding across the entire retail spectrum. It’s a noble thought to place that much value on the personal experience of shopping at a Trader Joe’s but these are unprecedented times that seem to call for unprecedented measures, even if they are only temporary. Zappos As an online-only seller, this footwear and fashion accessories e-com that is owned by Amazon has been up and running the entire time. One has to assume that running shoes are not a top-of-mind purchase when so many people are quarantined in their homes but no doubt Zappos has been maintaining some level of business over this crisis. So, its latest move has to be both a little out of left field and somewhat inspired. A little while ago it introduced a Customer Service for Anything – yup, that’s its name – phone number where anybody can call to ask about anything. Yes, it can be regarding a Zappos purchase but it doesn’t have to be. As the name implies, it can be about, well, anything. No doubt questions regarding toilet paper, what to stream this evening and questionable remedies suggested by a certain Washington DC resident have been popular topics. Zappos has always taken a somewhat different approach to things, from its management structure to its merchandising so this service seems to be consistent with its credo. Maybe the most remarkable part of this whole thing is that it has a phone number you can call at all. Trying to get a human life form on the phone at its Amazon parent is somewhat akin to finding the Ark of the Covenant. Many other retailers are putting into place policies and programs as they seek to welcome shoppers back into their stores and websites. One has a feeling we’ve only just begun to see exactly what kinds of things they will do to make that happen.
3 May 00:00 • Forbes • https://www.forbes.com/sites/warrenshoulberg/2020/05/03/macys-costco-trader-joes-zappos-approaching-return-of-retail-from-many-angles/Rating: 4.41
Recommended Reading: The life of a dropshipper
Sirin Kale, Wired In Bali, co-working spaces are filled with remote workers looking to make big bucks — and to do so quickly. Through a process called dropshipping, sellers are able to target would-be buyers via Facebook and Instagram ads with products they never see or store themselves. Purchased items are shipped directly from warehouses which can lead to long delivery times, and in some cases, a lot more trouble than its worth for all parties. Still, this lucrative business scheme is popular for those looking to make a handsome sum without leaving paradise. Bill Fitzgerald, Consumer Reports With all the attention on Zoom’s lax security measures now that we’re all working at home, the Digital Lab at Consumer Reports took a close look at the privacy policies of other popular video conferencing services. As you might expect, the inspection concluded with a list of items the companies can do to better protect their users. This is worth a read if you use Skype, Google Meet or Webex — especially if you haven’t read the privacy policies yourself. William E. Ketchum III, NBC News Travis Scott’s Fortnite virtual concert drew over 27.7 million unique players. The 10-minute set was huge for both the artist and the game, but Scott isn’t the only musician, singer or rapper forced to get creative under quarantine. From DJs spinning sets on Instagram Live to carefully coordinated at-home performance events — and even near-daily sets from solo acts — the show goes on. COVID-19 has halted touring and in-person gatherings but it hasn’t stopped your favorite artists from performing. And now, they’re more accessible than ever.
2 May 16:30 • Engadget • https://www.engadget.com/recommended-reading-the-life-of-a-dropshipper-163030231.htmlRating: 2.92
Activist investor hedge fund reportedly financing Eko lawsuit against Quibi over Turnstyle feature
3 May 22:06
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Weighted average IN: 14.94113165033709
Activist investor hedge fund reportedly financing Eko lawsuit against Quibi over Turnstyle feature
Hedge fund Elliott Management Corp. is financing Eko’s patent lawsuit against streaming service Quibi, The Wall Street Journal reports. Eko’s suit claims that Quibi stole trade secrets and that its “Turnstyle” feature violates Eko’s patents. Turnstyle allows Quibi videos to play differently depending on the orientation —vertical or horizontal— of the viewer’s phone, switching in real time. Eko wants Quibi to stop using its technology or license it and is suing for a preliminary injunction and damages. As part of the financing arrangement, Elliott would get an equity stake in Eko, according to the WSJ, though it’s not clear how much money is involved. Quibi, the mobile video app that launched last month, raised nearly $2 billion to produce “quick bite” shows that last a max of 10 minutes. It filed a lawsuit against Eko a day before Eko filed its suit, asking a court to find that Turnstyle doesn’t infringe Eko’s patent. Quibi told The Verge in March that Turnstyle was its patented technology and that Eko’s claims were “without merit.” A Quibi spokesperson reiterated its stance in a statement emailed to The Verge late Sunday. “As we made clear in our filing, Quibi’s patented Turnstyle feature is the result of the work from our talented engineering team,” the spokesperson said. “When a new product launches, these types of claims are unfortunately too common. Eko’s actions and complaints remain meritless.” Elliott Management did not immediately respond to requests for comment on Sunday. An Eko spokesperson declined to comment. Elliott Management is known for aggressive investor activism, backed by more than $40 billion in capital. The group was behind a recent push to replace Jack Dorsey as CEO of Twitter. The two sides reached an agreement in March that allowed Dorsey to remain as CEO but gave Elliott executive Jesse Cohn a seat on Twitter’s board, and a seat on a board committee tasked with evaluating a CEO succession plan for Twitter. Elliott also acquired a stake in AT&T in 2019, writing in a letter that the telco “suffered from operational and execution issues over the past decade, for which the current leadership team is accountable.” But it supported the recent appointment of AT&T COO John Stankey to CEO, according to CNBC. (Disclosure: Vox Media, which owns The Verge, has a deal with Quibi to produce a Polygon Daily Essential, and there have been talks about a Verge show.) UPDATE: May 3rd 6:40PM ET: Added information about Elliott’s role at AT&T UPDATE May 3rd 7:06 PM ET: Added that Eko declined to comment. UPDATE May 4th 9:50AM ET: Added comment from Quibi spokesperson
3 May 22:06 • The Verge • https://www.theverge.com/2020/5/3/21245864/activist-hedge-fund-eko-lawsuit-quibi-turnstyle-elliottRating: 3.34
Elliott Management financing major patent lawsuit against streaming startup Quibi
Hedge fund Elliott Management Corp. is financing a high-stakes patent lawsuit against Quibi, the new streaming service founded by entertainment veteran Jeffrey Katzenberg, according to people familiar with the situation, putting power players of Wall Street and Hollywood on a collision course. Elliott has agreed to fund a suit brought by interactive-video company Eko, which claims Quibi is violating its patents and has stolen trade secrets, the people said. As part of the financing, Elliott would end up with an equity stake, the people said. The size of the equity stake couldn’t be learned, though it is a substantial investment, the people said. The litigation concerns a Quibi feature called “Turnstyle,” which the company has described as a groundbreaking technology. It plays different videos for users depending on how they are holding their phone, switching in real time between horizontal and vertical versions. New York-based Eko, whose official corporate name is Interlude US Inc., has demanded that Quibi stop using its technology or license it. It is suing for a preliminary injunction and damages. In a statement, a Quibi spokeswoman denied that the company infringed on Eko’s patent, calling Eko’s lawsuit meritless. An expanded version of this report appears on WSJ.com: Also popular on WSJ.com: Should you wear a mask when exercising outdoors? ‘A bargain with the devil’ — bill comes due for overextended Airbnb hosts.
3 May 21:26 • MarketWatch • https://www.marketwatch.com/story/elliott-management-financing-major-patent-lawsuit-against-streaming-startup-quibi-2020-05-03Rating: 0.30
Hedge Fund Elliott Management Backs Patent Lawsuit Against Quibi
The activist investor that waged high-profile battles with AT&T and Twitter is financing a patent infringement lawsuit against mobile streaming service Quibi, a source familiar with the matter confirms. Elliott Management agreed to fund Eko’s suit in exchange for an equity stake in the company, theWall Street Journal first reported. The dispute centers on Quibi’s signature feature, called Turnstyle, which displays full-screen video horizontally or vertically—depending on how the viewer holds the phone. The Israeli company claims two Quibi employees, who were provided access to its subsidiary’s technology while working at Snap, stole its idea. A Quibi spokesperson issued a statement denying that, saying Eko’s claims lack merit. The conflict will pit Elliott’s combative founder, billionaire Paul E. Singer, against another tenacious figure, Hollywood mogul Jeffrey Katzenberg. Elliott had previously called for the ouster of Twitter’s chief executive, Jack Dorsey, before reaching a settlement with the company earlier this year. AT&T agreed last year to separate the CEO and chairman roles after Randall Stephenson stepped down. Quibi launched on April 6, 2020, debuting a service designed to deliver quick bursts of entertainment for busy people on the go—in the middle of a pandemic. Katzenberg and CEO Meg Whitman raised $1.75 billion to launch the service, which attracted 1.7 million downloads in its first week.
3 May 00:00 • Forbes • https://www.forbes.com/sites/dawnchmielewski/2020/05/03/hedge-fund-elliott-management-backs-patent-lawsuit-against-quibi/?utm_source=TWITTER&utm_medium=social&utm_content=3319654153&utm_campaign=sprinklrForbesTechTwitterRating: 4.41
Ireland unveils 6.5 billion euro coronavirus business package
3 May 00:13
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Ireland unveils 6.5 billion euro coronavirus business package
DUBLIN: Ireland will allow firms impacted by the coronavirus crisis to warehouse tax liabilities for 12 months, offering a "lifeline" as part of an additional package of business supports that could reach 6.5 billion euros (US$7.2 billion), the government announced on Saturday (May 2). Commercial rates will also be written off for three months, a 2 billion euro credit guarantee scheme introduced for small and medium sized businesses and Ireland's sovereign wealth fund mandated to invest 2 billion euros directly into bigger firms, Finance Minister Paschal Donohoe said in a statement. After a lockdown to stop the spread of COVID-19, Ireland laid out a roadmap on Friday for a gradual re-opening of the economy that could allow building sites and some retailers to reopen in two weeks, with restaurants following in June, hotels in July and finally pubs in August. The government concentrated its initial 8 billion euro fiscal response on increased jobless payments and wage subsidies for workers, with 1 billion euros of liquidity supports offered to reeling firms. The much larger package on Saturday also included a 10,000 euro restart grant for micro and small businesses. Ireland's main business lobby, IBEC, welcomed the measures as an important further step in addressing the cashflow crisis facing many. Highlighting the scale of the economic shock, Donohoe said firms had deferred 800 million euros of tax in March alone and that that figure could reach 2 billion euros by June. He also hoped the Ireland Strategic Investment Fund's (ISIF) new equity fund would lead to investment far in excess of the 2 billion euros available capital as it will seek to maximise added capital from existing shareholders and new co-investors. While Jobs Minister Heather Humphries said more supports will be needed for sectors that will find the coming months harder than others, Donohoe said the acting government had not yet considered any potential sector-specific cut to VAT rates. Hotels, restaurants and pubs, which will only be allowed operate at limited capacity when they open, have called for the VAT rate for the hospitality sector to be temporarily cut to 0 per cent from 13.5 per cent and for state funds to help them pay rent. Donohoe said a new government would be required to enact the tax deferral and credit guarantee schemes, the first tangible sign that the political deadlock since an election in February election could directly hurt business if it cannot be broken. Donohoe's Fine Gael and rival Fianna Fail are trying to find enough support from smaller parties to form a coalition. No new legislation can be passed until a new government is formed and selects the remaining members of the upper house of parliament. "It is very clear to me that there are economic decisions that our country will need relavent to keeping jobs and creating new jobs that in the coming weeks will require the election of a new Taoiseach (prime minister)," he told a news conference. Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram
3 May 00:13 • CNA • https://www.channelnewsasia.com/news/world/ireland-unveils-6-5-billion-euro-coronavirus-business-package-12697050Rating: 3.25
Republic announces €6.5bn package to support business struggling with pandemic
The Irish Government has announced a suite of measures to help businesses struggling in the coronavirus emergency. Multi-euro recovery funds were agreed in a special cabinet meeting the morning after Taoiseach Leo Varadkar announced a five-stage road map to reopening society. The measures include a €2 billion pandemic stabilisation and recovery fund and a €2 billion Covid-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from three months to six years. A €10,000 restart grant for micro and small businesses, a three-month commercial rates waiver for impacted businesses, the “warehousing” of tax liabilities for 12 months after recommencement of trading and a commitment to local authorities to make up the rates shortfall were also announced. The Republic's finance minister Paschal Donohoe said the measures are designed to “minimise the damage” of the pandemic. “Our collective public health has been targeted; our businesses and our economy have been shouldered with an unimaginable burden; and our society is grappling with this new reality. But, by working together, we are minimising the damage,” he said. “On top of the measures previously put in place by Government, this suite of measures being outlined today is designed to build confidence, further assist businesses in terms of the management of their companies, and allow them to begin looking to the future and start charting a path forward for weeks and months ahead.” The Irish government has already rolled out a multibillion-euro package of assistance for employers and workers during the crisis. Around 450,000 workers are receiving state payments through a temporary wage subsidy scheme, while around another 600,000 have applied for a special Covid-19 unemployment benefit. The Government has also significantly expanded financial support for small and medium sized-businesses. On Friday, Mr Varadkar announced the current lockdown has been extended until May 18, at which point phase one of the “journey to a new normal” will commence. Each stage is three weeks apart, but the country will only move from one to the other when medical experts confirm it is safe to do so. The fifth phase is scheduled to commence on August 10 if everything goes to plan. While the majority of restrictions remain in place for another fortnight, two will ease in the coming days. From next Tuesday, a travel limit that has forced people to stay within 2km of home when exercising will be extended to 5km, and self-isolating over-70s will be advised they can leave home for a walk or drive. On May 18, outdoor work, like construction and landscaping, will resume. Some retail outlets – like garden centres, hardware stores and repair shops – will also reopen. Mr Varadkar said some outdoor sporting and fitness activities in small groups would also be allowed from that date. Cafes and restaurants are set to reopen in phase three, which will start on June 29, but pubs are not due to reopen until phase five. Phase four, which will start on July 20, will see hotels and hairdressers opening for business. In terms of sport, golf and tennis will be permitted in phase one while close-contact sports such as rugby will have to wait until phase five on August 10. Mr Varadkar has expressed hope that the show-piece All-Ireland GAA finals could go ahead this autumn, albeit behind closed doors. In phase one, people outside of the same family unit can meet in groups of no more than four in an outdoor setting. In phase two, starting June 8, visits to the homes of over-70s and other vulnerable groups will be permitted with strict social distancing and hygiene steps. The plan does not include any timescale for lifting the cocooning advice. Mr Varadkar said advice on wearing face masks or coverings in shops and public transport would be issued when the plan begins to roll out on May 18. Mr Varadkar said schools and colleges will reopen in September/October at the start of the new academic year. Education authorities are to assess whether Leaving Cert exams for final-year students could go ahead in July in the absence of the wider school population. Mr Varadkar said it was still the plan for sixth year students to spend two weeks in class ahead of the exams starting.
2 May 13:19 • The Irish News • http://www.irishnews.com/news/republicofirelandnews/2020/05/02/news/republic-announces-measures-to-support-business-struggling-with-pandemic-1924266/Rating: 0.30
Ireland unveils 6.5 billion euro coronavirus business package
DUBLIN — Ireland will allow firms impacted by the coronavirus crisis to warehouse tax liabilities for 12 months, offering a “lifeline” as part of an additional package of business supports that could reach 6.5 billion euros, the government announced on Saturday. Commercial rates will also be written off for three months, a 2 billion euro credit guarantee scheme introduced for small and medium sized businesses and Ireland’s sovereign wealth fund mandated to invest 2 billion euros directly into bigger firms, Finance Minister Paschal Donohoe said in a statement. After a lockdown to stop the spread of COVID-19, Ireland laid out a roadmap on Friday for a gradual re-opening of the economy that could allow building sites and some retailers to reopen in two weeks, with restaurants following in June, hotels in July and finally pubs in August. The government concentrated its initial 8 billion euro fiscal response on increased jobless payments and wage subsidies for workers, with 1 billion euros of liquidity supports offered to reeling firms. The much larger package on Saturday also included a 10,000 euro restart grant for micro and small businesses. Ireland’s main business lobby, IBEC, welcomed the measures as an important further step in addressing the cashflow crisis facing many. Highlighting the scale of the economic shock, Donohoe said firms had deferred 800 million euros of tax in March alone and that that figure could reach 2 billion euros by June. He also hoped the Ireland Strategic Investment Fund’s (ISIF) new equity fund would lead to investment far in excess of the 2 billion euros available capital as it will seek to maximize added capital from existing shareholders and new co-investors. While Jobs Minister Heather Humphries said more supports will be needed for sectors that will find the coming months harder than others, Donohoe said the acting government had not yet considered any potential sector-specific cut to VAT rates. Hotels, restaurants and pubs, which will only be allowed operate at limited capacity when they open, have called for the VAT rate for the hospitality sector to be temporarily cut to 0%from 13.5% and for state funds to help them pay rent. Donohoe said a new government would be required to enact the tax deferral and credit guarantee schemes, the first tangible sign that the political deadlock since an election in February election could directly hurt business if it cannot be broken. Donohoe’s Fine Gael and rival Fianna Fail are trying to find enough support from smaller parties to form a coalition. No new legislation can be passed until a new government is formed and selects the remaining members of the upper house of parliament. “It is very clear to me that there are economic decisions that our country will need relavent to keeping jobs and creating new jobs that in the coming weeks will require the election of a new Taoiseach (prime minister),” he told a news conference. (Editing by Frances Kerry)
2 May 13:17 • Financial Post • https://business.financialpost.com/pmn/business-pmn/ireland-unveils-6-5-billion-euro-coronavirus-business-package-2Rating: 0.94
Irish government announces measures to support business struggling with pandemic
The Irish Government has announced a suite of measures to help businesses struggling in the coronavirus emergency. Multi-euro recovery funds were agreed in a special cabinet meeting the morning after Taoiseach Leo Varadkar announced a five-stage road map to reopening society. The measures include a two billion euro pandemic stabilisation and recovery fund and a two billion euro Covid-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from three months to six years. A 10,000 euro restart grant for micro and small businesses, a three-month commercial rates waiver for impacted businesses, the “warehousing” of tax liabilities for 12 months after recommencement of trading and a commitment to local authorities to make up the rates shortfall were also announced. Finance minister Paschal Donohoe said the measures are designed to “minimise the damage” of the pandemic. “Our collective public health has been targeted; our businesses and our economy have been shouldered with an unimaginable burden; and our society is grappling with this new reality. But, by working together, we are minimising the damage,” he said. “On top of the measures previously put in place by Government, this suite of measures being outlined today is designed to build confidence, further assist businesses in terms of the management of their companies, and allow them to begin looking to the future and start charting a path forward for weeks and months ahead.” The Government has already rolled out a multibillion-euro package of assistance for employers and workers during the crisis. Around 450,000 workers are receiving state payments through a temporary wage subsidy scheme, while around another 600,000 have applied for a special Covid-19 unemployment benefit. The Government has also significantly expanded financial support for small and medium sized-businesses. On Friday, Mr Varadkar announced the current lockdown has been extended until May 18, at which point phase one of the “journey to a new normal” will commence. Each stage is three weeks apart, but the country will only move from one to the other when medical experts confirm it is safe to do so. The fifth phase is scheduled to commence on August 10 if everything goes to plan. While the majority of restrictions remain in place for another fortnight, two will ease in the coming days. From next Tuesday, a travel limit that has forced people to stay within 2km of home when exercising will be extended to 5km, and self-isolating over-70s will be advised they can leave home for a walk or drive. On May 18, outdoor work, like construction and landscaping, will resume. Some retail outlets – like garden centres, hardware stores and repair shops – will also reopen. Mr Varadkar said some outdoor sporting and fitness activities in small groups would also be allowed from that date. Cafes and restaurants are set to reopen in phase three, which will start on June 29, but pubs are not due to reopen until phase five. Phase four, which will start on July 20, will see hotels and hairdressers opening for business. In terms of sport, golf and tennis will be permitted in phase one while close-contact sports such as rugby will have to wait until phase five on August 10. Mr Varadkar has expressed hope that the show-piece All-Ireland GAA finals could go ahead this autumn, albeit behind closed doors. In phase one, people outside of the same family unit can meet in groups of no more than four in an outdoor setting. In phase two, starting June 8, visits to the homes of over-70s and other vulnerable groups will be permitted with strict social distancing and hygiene steps. The plan does not include any timescale for lifting the cocooning advice. Mr Varadkar said advice on wearing face masks or coverings in shops and public transport would be issued when the plan begins to roll out on May 18. Mr Varadkar said schools and colleges will reopen in September/October at the start of the new academic year. Education authorities are to assess whether Leaving Cert exams for final-year students could go ahead in July in the absence of the wider school population. Mr Varadkar said it was still the plan for sixth year students to spend two weeks in class ahead of the exams starting. But he said other options, such as using predictive marking to allocate results, may be needed if sitting the Leaving Certs could not be held safely. The five phase plan was agreed by Cabinet on the back of advice from experts on the National Public Health Emergency Team (Nphet). The current lockdown period had been due to expire on Monday. The Taoiseach has stressed the blueprint is a “living document” and steps outlined in later phases could potentially be implemented sooner. He also predicted that the two-metre social distancing guidelines could be reduced, potentially by half. The total number of people who have died from Covid-19 in Ireland rose to 1,265 on Friday, after another 34 deaths were announced. As of Friday, there had been 20,833 confirmed cases of the disease.
2 May 12:17 • independent • https://www.independent.ie/breaking-news/irish-news/irish-government-announces-measures-to-support-business-struggling-with-pandemic-39175484.htmlRating: 1.21
Paschal Donohoe: Oireachtas needs to 'come together' for Government business support
Business supports announced today are reliant on a new Government being formed. €6bn euro has been unveiled to help companies re-open following Covid-19 restrictions - including a three month waiver on rates to local authorities. The Taoiseach says he is hopeful a Government could be formed in June. Finance Minister Paschal Donohoe says parties need to come together to ensure stability for businesses. He says: "There is much that can be done in relation to the set up for these funds before legislation is required. "In order for all of this to be implemented that legislation will be needed [...] This will require the Oireachtas to come together." Commercial rates are to be waived for three months for business impacted by the Covid-19 pandemic. The shortfall of €260m on local authorities is to be funded by the Government. The Government had already brought forward a series of measures to support those impacted by the pandemic - including emergency income support such as the Temporary Wage Subsidy Scheme and the Pandemic Unemployment Payment. They have now introduced a number of additional measures to aid the economy as the Covid-19 restrictions start to be lifted. A €6bn support package for farmers, small, medium and larger businesses has been agreed by Cabinet. It includes allowing companies to get a low-interest rate loan to re-open their business. The measures are: Finance minister Paschal Donohoe said the measures are designed to “minimise the damage” of the pandemic. Minister Donohoe said: “Covid-19 has created a world that none of us could have imagined just a few short weeks ago. Our collective public health has been targeted; our businesses, and our economy, have been shouldered with an unimaginable burden; and our society is grappling with this new reality. . "But, by working together, we are minimising the damage. The hard work of the Irish people has ensured that we are getting to grips with this disease, our people are united in caring for one another under the most extreme of circumstances and our businesses are attempting to adapt to this new and most challenging environment. “On top of the measures previously put in place by Government, this suite of measures being outlined today is designed to build confidence, further assist businesses in terms of the management of their companies, and allow them to begin looking to the future and start charting a path forward for weeks and months ahead. Group calls on Govt to implement five measures to help retailers recover from pandemic "We will continue to seek the best ways of supporting our people, and wider society, and rebuilding our economy so that we can get people back to work safely. We will do this by being cognisant of official public health advice and doing what is in the best interests of all our people.”
2 May 12:02 • Irishexaminer • https://www.irishexaminer.com/breakingnews/business/paschal-donohoe-oireachtas-needs-to-come-together-for-government-business-support-997338.htmlRating: 0.69
COVID-19: Government to outline further measures to help businesses
The Government is to outline further measures to support businesses impacted by COVID-19. The Ministers for Finance, Business and Housing - Paschal Donohoe, Heather Humphreys and Eoghan Murphy - are to give further details on Saturday. It follows on from the publication by the Government of theroadmap for easing restrictions and re-opening the economy. Chambers Ireland chief executive Ian Talbot said: "The past several weeks have been tremendously challenging for communities, so indications that some restrictions will be eased in the coming days will be warmly received." "Chambers Ireland reiterates its call for liquidity funds and grant aid for business to cover overheads such as rent, utilities and working capital. "The deferral announced in March was found to be insufficient by three-quarters of business who responded to our earlier survey published on May 9th. "If action on commercial rates is to have any meaningful impact, they will need to be waived for impacted businesses for at least six months, if not a full year." He added: "Without additional aid to support working capital, liquidity and cash flow, the chance of businesses successfully re-opening and maintaining employment is significantly reduced. We await Government clarity on these matters over the weekend." Earlier this week, Minister Donohoe told Newstalk that COVID-19 payments and wage subsidy schemes could not continue indefinitely. He said: "We cannot sustain this indefinitely - these are interventions that are costing between €200m and €400m per week. "And what I will do now in the coming weeks... is will explain the future of a scheme like that. "The two principles I have is number one: we cannot sustain this indefinitely - but I also know turning it off abruptly will undo much of the good work that we've put in place. "And then secondly, to try and change it in a way that ties in with income and jobs recovering in our country".
2 May 09:22 • Newstalk • https://www.newstalk.com/news/covid-19-government-outline-measures-help-businesses-1009391Rating: 0.30
Malaysian economy could shrink more than earlier forecasts, says finance minister
3 May 00:07
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Malaysian economy could shrink more than earlier forecasts, says finance minister
KUALA LUMPUR: Malaysia's economy in 2020 could shrink more than initially forecast due to extended curbs on movement imposed to stem an outbreak of the new coronavirus, the finance minister said on Saturday (May 2). Malaysia's central bank had forecast in April for growth in gross domestic product (GDP) of between -2 per cent and 0.5 per cent this year. "But that forecast was made after just two weeks of movement curbs. We're now more than five weeks in ... so our GDP could shrink even more," Finance Minister Tengku Zafrul Tengku Abdul Aziz said in an interview with a local television channel. Malaysia, which has announced a stimulus package worth 250 billion ringgit (US$5.8 billion) to help cushion the economic blow from the outbreak, will also announce an economic recovery plan later this month, the minister said. Malaysian authorities on Saturday defended plans to ease coronavirus lockdown measures next week even as the number of new infections jumped to a two-week high. Most businesses will reopen on Monday, although schools, cinemas and nightclubs will remain closed, along with the country's borders. Mass gatherings will still be banned. Security minister Ismail Sabri said Malaysia was not being hasty in relaxing the curbs, stressing that businesses reopening will have to implement hygiene and social distancing measures.
3 May 00:07 • CNA • https://www.channelnewsasia.com/news/asia/malaysia-economy-could-shrink-more-than-earlier-forecast-covid19-12697044Rating: 3.25
Malaysian economy could shrink more than earlier forecasts, says Tengku Zafrul
KUALA LUMPUR, May 2 — Malaysia’s economy in 2020 could shrink more than initially forecast due to extended curbs on movement imposed to stem an outbreak of the new coronavirus, the finance minister said on Saturday. Malaysia’s central bank had forecast in April for growth in gross domestic product (GDP) of between -2 per cen and 0.5 per cent this year. “But that forecast was made after just two weeks of movement curbs. We’re now more than five weeks in ... so our GDP could shrink even more,” Finance Minister Tengku Zafrul Tengku Abdul Aziz said in an interview with a local television channel. — Reuters
2 May 12:23 • Malaymail • https://www.malaymail.com/news/malaysia/2020/05/02/malaysian-economy-could-shrink-more-than-earlier-forecasts-says-tengku-zafr/1862457Rating: 1.42
Malaysian economy could shrink more than earlier forecasts: finance minister
KUALA LUMPUR (Reuters) - Malaysia's economy in 2020 could shrink more than initially forecast due to extended curbs on movement imposed to stem an outbreak of the new coronavirus, the finance minister said on Saturday. Malaysia's central bank had forecast in April for growth in gross domestic product (GDP) of between -2% and 0.5% this year. "But that forecast was made after just two weeks of movement curbs. We're now more than five weeks in ... so our GDP could shrink even more," Finance Minister Tengku Zafrul Tengku Abdul Aziz said in an interview with a local television channel.
2 May 00:00 • Investing.com • https://www.investing.com/news/economic-indicators/malaysian-economy-could-shrink-more-than-earlier-forecasts-finance-minister-2158644Rating: 0.30
'A chance for Zimbabwe to reindustrialise'
3 May 09:14
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'A chance for Zimbabwe to reindustrialise'
THE outbreak of the novel coronavirus, which has so far killed over 230 000 people and crippled economies around the world, is a huge opportunity for Zimbabwe to reindustrialise, economic analysts have said.Declared a pandemic by the World Health Organisation in March this year, Covid-19, a respiratory disease caused by the coronavirus, has decimated Zimbabwe's fragile economy, with some of the country's major trading partners like China, cancelling orders due to port closures, hurting exports in the process.Economic analysts, who spoke to Standardbusiness, said Zimbabwe should start taking import substitution policies seriously and reindustrialise, lest the whole economy crumbles.The southern African country has been, for a long time, talking about an import substitution policy, but with little support from government in terms of political will and financial support."We need to rethink our strategy as a country. We need to reindustrialise and policy makers should take this more seriously."I see this coronavirus as a significant force for the country to reindustrialise."It can be seen as levelling the ground," Persistence Gwanyanya, an economist, said."It's an opportunity to catch up with the rest of the world."We now need to take advantage of that opportunity to grow our economy."Covid-19, according to ZimTrade — the country's export promotion body — is expected to impact China's global trade for several months as it recorded the first case of the virus.China is one of Zimbabwe's top trading partners, with Harare sending exports worth US$974 million in 2019 against imports of US$368 million, according to Trade Map.Chinese companies are cancelling import orders due to port closures and Zimbabwe's exports to the Asian country would be affected, ZimTrade said."With China having shut down its manufacturing centres and closed its ports, there will be a resultant decrease in demand for the Zimbabwean products," ZimTrade added."At the same time, closed borders in China means Zimbabwean manufacturers that rely on raw materials and other consumables from China will be affected and the spiral effect of reduced manufacturing in China will have a toll on Zimbabwean industries."The major products that Zimbabwe imports from China include machinery, mechanical appliances, boilers, electrical machinery, equipment, vehicles, chemical products, rubber, and plastics.Zimbabwe mainly imports raw materials and machinery for production purposes, which will then be used to manufacture different products some of which are exported."Going forward, it is important for local companies to start considering locally produced raw materials that can support businesses," ZimTrade said."This can be easily achieved if stronger linkages are created between suppliers and buyers so that they can strike a balance between supplying the quality products and right prices."This import substitution will allow the country to create employment and at the same time preserve the scarce foreign currency."Another economic analyst, Believer Mhlanga said it was high time the government analysed Zimbabwe's imports and strategise on substitution."I understand we have been importing things that we can manufacture ourselves or raw materials that we have or can produce on our own," Mhlanga said."Instead of holding hands and counting loses on imports, we should make use of this opportunity to manufacture our own products using our own resources."We should only import raw materials that are not locally available-this should be a turning point for Zimbabwe."We have seen countries like South Africa, Ghana and other developed countries crafting policies that are internally friendly."On exports, Mhlanga said government should engage its counterparts to open the ports and guarantee safety of exports."If they have warehouses for storage they can produce and store in anticipation for the high demand when economies open-provided storage costs are manageable and bearable," he added."The government can come in by providing low cost capital for sustenance."In some of his writings, Richard Chinomona noted that while the Covid-19 crisis had brought about untold fear and suffering to the human race, the challenges Zimbabwe faced after closing its borders had presented unexpected opportunities for the local industries to resuscitate and grow.Chinomona noted that Zimbabwe's industrial base collapsed partly because of the cheap imports mainly from China and Europe."Now that the boarders are by and large closed to international trade this is the time to resuscitate the local industries, produce locally all previous imports and only buy locally made Zimbabwean products," he wrote.Chinomona said forex shortages affected many industries that imported inputs outside Zimbabwe as the country was importing unnecessary products like old clothes, fruits, stationary while also spending a lot on unnecessary government foreign trips."With restricted international trade and government official foreign trips, Zimbabwe can harness the available forex towards the purchase of high-tech machinery to resuscitate and boost our industrial base," he said."Now that Covid-19 disrupted China's production and supplies globally, particularly the dumping of cheap products into the Zimbabwean market, this is the right opportunity to resuscitate our industries and supply the void made in our local market."With Covid-19 also causing havoc in South Africa and most of its industries closed or producing below capacity amid border closures or restrictions, Chinomona said the local market needed Zimbabwe's local industries to supply all the previously imported products.He said Covid-19 was likely to be an issue for at least a year unless a vaccine or cure is found and this on its own, implied that Zimbabwe should gear up to resuscitate its industrial base tosatisfy the local market. Strategies to resuscitate Zimbabwe's industrial base during the crisis, according to Chinomona, should include adoption of a deliberate import substitution strategy as a matter of government policy, creation of a special fund for industrialisation, which makes available cheap funds to the industrial sector.Zimbabwe should craft a policy that discourages importation of products from China, South Africa and Europe, he said."The policy should promote partnership between foreign and Zimbabwean industries and with production done in Zimbabwe," Chinomona said."For instance, if China is our "all weather friend" why can't it come and set up it's industries in Zimbabwe in partnership with our local industries and produce at the lowest possible cost?""Why should China want to produce cheaply thousands of kilometres away from Zimbabwe and then dump its cheap products in Zimbabwe?"If China is really our "all weather friend" then it should bring its technology and build industries in Zimbabwe, produce in Zimbabwe and employ Zimbabweans.Produced in Zimbabwe and Buy Zimbabwe should be Zimbabwe government's priority strategy during this Covid-19 crisis and beyond, Chinomona added.
3 May 09:14 • Bulawayo24 News • https://bulawayo24.com/index-id-news-sc-local-byo-184699.htmlRating: 0.30
‘Great opportunity for Zimbabwe to re-industrialise’
THE outbreak of the novel coronavirus, which has so far killed over 230 000 people and crippled economies around the world, is a huge opportunity for Zimbabwe to reindustrialise, economic analysts have said.Declared a pandemic by the World Health Organisation in March this year, Covid-19, a respiratory disease caused by the coronavirus, has decimated Zimbabwe’s fragile economy, with some of the country’s major trading partners like China, cancelling orders due to port closures, hurting exports in the process. Economic analysts, who spoke to Standardbusiness, said Zimbabwe should start taking import substitution policies seriously and reindustrialise, lest the whole economy crumbles. The southern African country has been, for a long time, talking about an import substitution policy, but with little support from government in terms of political will and financial support. “We need to rethink our strategy as a country. We need to reindustrialise and policy makers should take this more seriously. “I see this coronavirus as a significant force for the country to reindustrialise. “It can be seen as levelling the ground,” Persistence Gwanyanya, an economist, said. “It’s an opportunity to catch up with the rest of the world. “We now need to take advantage of that opportunity to grow our economy.” Covid-19, according to ZimTrade — the country’s export promotion body — is expected to impact China’s global trade for several months as it recorded the first case of the virus. China is one of Zimbabwe’s top trading partners, with Harare sending exports worth US$974 million in 2019 against imports of US$368 million, according to Trade Map. Chinese companies are cancelling import orders due to port closures and Zimbabwe’s exports to the Asian country would be affected, ZimTrade said. “With China having shut down its manufacturing centres and closed its ports, there will be a resultant decrease in demand for the Zimbabwean products,” ZimTrade added. “At the same time, closed borders in China means Zimbabwean manufacturers that rely on raw materials and other consumables from China will be affected and the spiral effect of reduced manufacturing in China will have a toll on Zimbabwean industries.” The major products that Zimbabwe imports from China include machinery, mechanical appliances, boilers, electrical machinery, equipment, vehicles, chemical products, rubber, and plastics. Zimbabwe mainly imports raw materials and machinery for production purposes, which will then be used to manufacture different products some of which are exported. “Going forward, it is important for local companies to start considering locally produced raw materials that can support businesses,” ZimTrade said. “This can be easily achieved if stronger linkages are created between suppliers and buyers so that they can strike a balance between supplying the quality products and right prices. “This import substitution will allow the country to create employment and at the same time preserve the scarce foreign currency.” Another economic analyst, Believer Mhlanga said it was high time the government analysed Zimbabwe’s imports and strategise on substitution. “I understand we have been importing things that we can manufacture ourselves or raw materials that we have or can produce on our own,” Mhlanga said. “Instead of holding hands and counting loses on imports, we should make use of this opportunity to manufacture our own products using our own resources. “We should only import raw materials that are not locally available-this should be a turning point for Zimbabwe. “We have seen countries like South Africa, Ghana and other developed countries crafting policies that are internally friendly.” On exports, Mhlanga said government should engage its counterparts to open the ports and guarantee safety of exports. “If they have warehouses for storage they can produce and store in anticipation for the high demand when economies open-provided storage costs are manageable and bearable,” he added. “The government can come in by providing low cost capital for sustenance.” In some of his writings, Richard Chinomona noted that while the Covid-19 crisis had brought about untold fear and suffering to the human race, the challenges Zimbabwe faced after closing its borders had presented unexpected opportunities for the local industries to resuscitate and grow. Chinomona noted that Zimbabwe’s industrial base collapsed partly because of the cheap imports mainly from China and Europe. “Now that the boarders are by and large closed to international trade this is the time to resuscitate the local industries, produce locally all previous imports and only buy locally made Zimbabwean products,” he wrote. Chinomona said forex shortages affected many industries that imported inputs outside Zimbabwe as the country was importing unnecessary products like old clothes, fruits, stationary while also spending a lot on unnecessary government foreign trips. “With restricted international trade and government official foreign trips, Zimbabwe can harness the available forex towards the purchase of high-tech machinery to resuscitate and boost our industrial base,” he said. “Now that Covid-19 disrupted China’s production and supplies globally, particularly the dumping of cheap products into the Zimbabwean market, this is the right opportunity to resuscitate our industries and supply the void made in our local market.” With Covid-19 also causing havoc in South Africa and most of its industries closed or producing below capacity amid border closures or restrictions, Chinomona said the local market needed Zimbabwe’s local industries to supply all the previously imported products. He said Covid-19 was likely to be an issue for at least a year unless a vaccine or cure is found and this on its own, implied that Zimbabwe should gear up to resuscitate its industrial base tosatisfy the local market. Strategies to resuscitate Zimbabwe’s industrial base during the crisis, according to Chinomona, should include adoption of a deliberate import substitution strategy as a matter of government policy, creation of a special fund for industrialisation, which makes available cheap funds to the industrial sector. Zimbabwe should craft a policy that discourages importation of products from China, South Africa and Europe, he said. “The policy should promote partnership between foreign and Zimbabwean industries and with production done in Zimbabwe,” Chinomona said. “For instance, if China is our “all weather friend” why can’t it come and set up it’s industries in Zimbabwe in partnership with our local industries and produce at the lowest possible cost?” “Why should China want to produce cheaply thousands of kilometres away from Zimbabwe and then dump its cheap products in Zimbabwe? “If China is really our “all weather friend” then it should bring its technology and build industries in Zimbabwe, produce in Zimbabwe and employ Zimbabweans. Produced in Zimbabwe and Buy Zimbabwe should be Zimbabwe government’s priority strategy during this Covid-19 crisis and beyond, Chinomona added. Source – The Standard
3 May 00:00 • The Zimbabwe Mail • https://www.thezimbabwemail.com/economic-analysis/great-opportunity-for-zimbabwe-to-re-industrialise/Rating: 0.30
Many lockdown regulations do more harm than good – Experts
South Africa’s extended lockdown is starting to impact the economy, with National Treasury expecting job losses, tax losses, and a contracting economy. National Treasury’s director-general Dondo Mogajane warned the country’s economy could contract by as much as 16.1% this year. The contraction will depend on how long it takes to contain the coronavirus pandemic and for the economy to recover. South Africa also stands to lose up to 7 million jobs, depending on the speed of the country’s economic recovery. Mogajane said South Africa therefore has to move quickly to get the economy back to normal, while containing the impact of the virus. Two of the lockdown regulations which have resulted in the most criticism and unhappiness are the ban on alcohol and cigarette sales. Apart from the lack of support from many citizens, it is also costing the country a lot of money in lost tax revenue. SARS Commissioner Edward Kieswetter said the losses in tax revenue from beer and alcohol in April were: “So, year to date, our under recovery from these activities is R1.5 billion and we’re just through the first month,” said Kieswetter. Considering the negativity about the ban and the loss in tax revenues, it is not surprising that Finance Minister Tito Mboweni does not support this decision. Mboweni said he would have allowed the sale of alcoholic beverages and tobacco products under level 4 to resume if it was his choice. An area which has drawn sharp criticism from industry is the restrictions placed on ecommerce and deliveries. While many other countries allowed unfettered ecommerce because of the contactless nature of the industry, this did not happen in South Africa. Online shops are only allowed to sell the products which brick-and-mortar shops are allowed to sell. Minister for Trade and Industry Ebrahim Patel said that ecommerce will continue to operate under restrictions due to concerns over fair competition. “If we open up any one category, let’s say ecommerce, unavoidably there’s enormous pressure to do the same for physical stores,” Patel stated. Ecommerce companies have a different view. Takealot CEO Kim Reid said online stores should be able to sell all items as it allows people to buy goods in an almost completely contactless way. “Social distancing is built into ecommerce,” Reid said, adding that with a few simple delivery protocols, ecommerce allows for a very hygienic way of shopping. He said South Africa’s ecommerce companies are an asset in the fight against the coronavirus that the government should be using. One restriction which is making many South Africans unhappy is only being allowed to exercise outside between 06:00 and 09:00. This has resulted in large crowds flocking to popular walking and jogging spots like the Sea Point promenade and the Durban beachfront at the same time. Former FNB CEO Michael Jordaan highlighted that the sun rises at 06:31 in Johannesburg and only at 07:21 in Cape Town. “The regulations are not thought through,” he said. Western Cape Premier Alan Winde said the regulations are causing congestion and needed to be re-thought. He said exercise is essential for health and lockdown regulations should not be making it a luxury. He added that essential workers may not have the ability to exercise between 06:00 and 09:00, and they should also be accommodated. He suggested having morning and afternoon sessions when people are allowed to walk, jog, or cycle outside. Constitutional expert Pierre de Vos said ministers should provide proper, fact-based and rational justifications for every lockdown regulation they seek to impose. “Matters will be made worse if the government decides to use the police and the military to try to impose its will by force in the face of widespread public resistance,” he said. Many people feel many of the ministers are not experts in their field and that some regulations do more harm than good. Here are a few of the regulations which are widely criticized by industry players and citizens.
3 May 00:00 • MyBroadband • https://mybroadband.co.za/news/business/350418-many-lockdown-regulations-do-more-harm-than-good-experts.htmlRating: 1.91
Buffett says he dumped entire stake in airline-sector stocks: ‘The world changed for airlines’ amid coronavirus
3 May 17:39
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Buffett says he dumped entire stake in airline-sector stocks: ‘The world changed for airlines’ amid coronavirus
Warren Buffett says Berkshire Hathaway dumped all of its holdings in the airline sector, painting a grim picture of the industry that has been badly hurt by the COVID-19 pandemic. “I was wrong about that business,” Buffett said, speaking on Saturday in Omaha, Neb., at Berkshire’s annual shareholder meeting, which was held virtually due to the deadly disease. Back in April, Berkshire Hathaway BRK.A, -1.04%BRK.B, -1.07% disclosed that it sold large blocks of stock in Delta Air Lines DAL, -3.81% and Southwest Airlines LUV, -4.13%. Subsidiaries of Berkshire sold 13 million Delta shares for a total of $314.2 million and 2.3 million Southwest shares amounting to more than $74 million, as he looked to substantially scale back his ownership of the airlines sector which has been devastated by stay-at-home protocols that have been put in place since the coronavirus epidemic took hold of the world over the past three months. Buffett, however, explained that his company and its subsidiaries have now unloaded their entire stake in airlines. Buffett explained at the meeting that he thought he was getting roughly 10% of the four largest airlines for an attractive price. He also owned stakes in American Airlines Group Inc. AAL, -3.15% and United Airlines Holdings Inc. UAL, -4.51%. Collectively, those airlines, represent some 80% of the passenger miles flown in the U.S., Buffett said. But he determined recently that his decision, in light of the emerging pathogen, was ill-advised and he sought to unload his position: “I just decided that I’d made a mistake.” As of the most recent filings, Berkshire had held 70 million shares of Delta representing 1.7% of the conglomerate’s portfolio, according to data provider Whale Wisdom. Berkshire also had roughly 54 million shares of Southwest, representing 1.2% of its holdings, 22 million shares of United Airlines, representing 0.8% and 42.5 million shares of American Airlines, about 0.5% of Berkshire, according to the site. “The airline business, and I may be wrong, and I hope I’m wrong, changed in a major way,” he explained, noting that it has been through no fault of the CEOs of the companies. “I’ve been basically told not to fly,” he added, noting that he may not fly commercial going forward. “I wouldn’t normally talk about it, but I think it requires an explanation,” he said of his decision to discuss selling airline stocks. “We like those airlines but the world has changed…and I don’t know how it’s changed,” he said. Shares of Delta, the largest airline by market capitalization, were down 59% in the year to date, United Airlines were off nearly 70% so far this year, Southwest shares were down by about 46% thus far in 2020, and American Airlines was off 63% over the same period, as of Friday’s close. An exchange-traded fund that tracks the industry, U.S. Global Jets ETF JETS, -2.74%, was down by more than 55% in the year to date. By comparison, the Dow Jones Industrial Average DJIA, +0.56% was off 17% so far this year, after recovering much of its March decline in April. The S&P 500 SPX, +0.90% was looking at a year-to-date loss of 12.4% and the Nasdaq Composite Index COMP, +1.13% was down 4.1% so far in 2020. Airlines received a $25 billion U.S. government bailout back in mid April to prop up the industry The Trump administration reached an agreement with major airlines over the terms of a $25 billion bailout to prop up an industry hobbled by the coronavirus pandemic. Volumes for airlines are down substantially, according to industry groups, with the aircraft and passenger volume down more than 90%, compared with a year ago, according to industry group Airlines for America, and more than 3,000 planes have been idled, constituting about half of the active fleets. On Sunday, Southwest CEO Gary Kelly said he thinks the first week of April was the worst period for his company of the coronavirus pandemic, and business should pick up from here. Speaking in an interview on CBS News’ “Face the Nation,” he said, “I don’t think June will be a good month, but hopefully it will be a bit better than May.”
3 May 17:39 • MarketWatch • https://www.marketwatch.com/story/buffett-dumps-entire-airline-stake-saying-the-world-changed-for-airlines-2020-05-02Rating: 0.30
Warren Buffett Dumps The Airlines
Summary Over the weekend, we received some major investing news from Berkshire Hathaway (BRK.A) (BRK.B) CEO Warren Buffett. The legendary investor announced that he has sold all of his four major US airline stakes. Buffett admitted that he made a mistake, as the coronavirus situation has completely changed the game for the industry. While he's not disappointed in how the businesses have been run, the major borrowings needed to support these names are going to limit their upside in his opinion. Today, I want to take a look at these names in terms of Berkshire's former stakes and where things stand for each. Let's look at United (UAL), American (AAL), Delta (DAL), and Southwest (LUV). Within 45 days of the end of each quarter, institutions like Berkshire Hathaway have to report their holdings in stocks like these four. Unfortunately, we don't have the end of March 2020 data in just yet, so the table below shows where things stood at the end of 2019, and how this related to the number of shares outstanding for each airline. (Data sourced from each company's respective NASDAQ holdings page, for example Delta's page seen here, and 10-K filings, for example Southwest's 10-K seen here) Now we did receive news in early April that Berkshire had sold some shares in both Delta and Southwest - 13 million for Delta and 2.3 million for Southwest. Based on the NASDAQ information above, Berkshire Hathaway was the largest institutional holder of Delta at the end of 2019, the second largest in United and Southwest, and the third largest in American. It will be interesting to see how some of the other large holders react to this news during Q2, but we won't see all of that share activity logged until mid July. To give investors an idea of where these stocks stand currently, I put together the following table. Obviously, the coronavirus has caused these names to fall dramatically during this year and from their 52-week highs. However, three of the four names have seen rebounds of at least 17% from their yearly low. Southwest has held up the best overall, but is closest to its low, while if you gambled on United at or near its low, you've seen a major bounce in percentage terms (although you're still down a lot from the high). (*Does not included dividends. Data sourced from Yahoo! Finance) Investors understand that global travel has been hammered, and things aren't likely to improve that much in the near term. In the table below, I wanted to give an idea of how bad these four names are projected to see their revenues decline in each quarter this year. I also am showing what this means for total revenue declines this year, the revenue bounce back expected next year, and what two key valuation metrics show for these four names. (Data sourced from each company's Seeking Alpha estimates page, for instance American's page seen here) There are a couple of trends here. Southwest is the most expensive on both price to sales and price to earnings metrics, and as I showed above, it's also closest to its yearly low. Delta is expected to have the worst revenue performance over this two year period, largely thanks to expectations for it to have the worst second half of 2020. If you had to bet on one, United would seem like the way to go given the best two year revenue combo as well as the lowest P/E ratio. What's my personal opinion of the airline sector currently? Well, I wouldn't touch any of these names with a ten foot pole. The revenue losses are certainly going to be dramatic, and large debt issuances are going to hurt the bottom line for years to come. If we look at things in quarterly sequential terms, the street is expecting things to get better in the second half of the year, but what if there is a new wave of coronavirus? There comes a point at which debt issuances may not be possible anymore, which would mean the companies would have to turn to equity sales. Delta is the largest of these four with a market cap of $15.4 billion, while American is the smallest at $4.5 billion. Should these names need another few billion each, you're talking about massive dilution that would come to investors, and if we're at that point, it probably means shares have fallen even more, so the market caps could be a fraction then of what they are now. In the end, Warren Buffett's announcement that he is getting out of the four major airlines is a major hit for this sector's confidence. Just as some of these names were starting to recover some of their massive losses, I fear we're about to see a new leg down as Berkshire has exited. It remains to be seen how long it will take for business to recover, and the longer the coronavirus situation lingers, the more interest expenses or equity dilution investors will face. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Additional disclosure: Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.
3 May 23:40 • Seeking Alpha • https://seekingalpha.com/article/4342554-warren-buffett-dumps-airlines?source=feed_all_articlesRating: 0.30
Warren Buffet Sells Full Slate of U.S. Airlines Investments
Warren Buffet’s Berkshire Hathaway Inc. has sold its entire holdings in U.S. airlines in the wake of the coronavirus that has led to a virtual standstill of the industry and revenue losses in the billions. Buffet revealed the news to shareholders on Saturday, according to a Reuters report, which included that the conglomerate had some $7 to $8 billion invested in the airline industry: “We made that decision in terms of the airline business,” Buffet said. “We took money out of the business basically even at a substantial loss. We will not fund a company that — where we think that it is going to chew up money in the future.” Bershire had already sold 18 percent of its Delta stake and four percent of Southwest shares, it announced on April 3. “We did not take out anything like $7 or $8 billion and that was my mistake,” Buffett said at the company’s virtual annual meeting. “I am the one who made the decision.” “Buffett previously expressed grim sentiments about the financial outlook for airlines,” Reuters reported. “He did invest in USAir in 1989.” “If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down,” Buffett wrote in his annual letter to shareholders in 2007. “Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it.” Follow Penny Starr on Twitter
3 May 23:15 • Breitbart • https://www.breitbart.com/economy/2020/05/03/warren-buffets-berkshire-hathaway-sells-full-slate-of-u-s-airlines-investments/Rating: 0.30
Warren Buffett: 'American magic' will spur US economic recovery
Billionaire investor Warren Buffet said Saturday he's confident the US economy will bounce back from its pummeling by the coronavirus pandemic because "American magic has always prevailed". The 89-year-old made the sanguine prediction about the world's largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly $50 billion. Buffett also announced Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry. "It turns out I was wrong," he said of his acquisitions of 10 percent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Berkshire Hathaway had paid $7 billion to $8 billion, and "we did not take out anything like that," he said. Between the purchases that took place over months, and the sale, "the airlines business I think changed in a very major way" and could no longer meet Berkshire criteria for profitability, he said. Buffett's announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for $25 billion in relief funds. 'American miracles, American magic' Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback "temporary" but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. "We've faced great problems in the past, haven't faced this exact problem -- in fact we haven't really faced anything that quite resembles this problem," Buffett said in a lengthy speech on the country's economic history. "But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again." "We are now a better country, as well as an incredibly more wealthy country, than we were in 1789... We got a long ways to go but we moved in the right direction," he said, referencing the abolition of slavery and women's suffrage. "Never bet against America." Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company's annual gathering in Omaha is a high-point of the calendar for investors, a "Woodstock for capitalists." But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway's wide range of investments, and the need for social distancing forced it to hold the annual meeting online. Buffett addressed his shareholders in a livestream flanked only by Gregory Abel, who is in charge of Berkshire's non-insurance operations. His business partner for six decades, 96-year-old Charlie Munger, did not appear. Growth by one measure Buffett, in a statement, played down his company's bleak-looking net figure. He said a better measure of the company's performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier. The brutal drop in the net -- to a loss of $49.75 billion from a profit last year of $21.7 billion -- resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated "Oracle of Omaha." Buffett, famous for his relatively modest lifestyle, turns 90 on August 30. In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting "comparative revenue and earnings increases" over the same 2019 period. Many of its companies -- including in rail transport, energy production and some manufacturing and service businesses -- are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are "necessary actions" and "temporary," it said. If you want to help in the fight against COVID-19, we have compiled an up-to-date list of community initiatives designed to aid medical workers and low-income people in this article. Link: [UPDATED] Anti-COVID-19 initiatives: Helping Indonesia fight the outbreak
3 May 13:36 • The Jakarta Post • https://www.thejakartapost.com/news/2020/05/03/warren-buffett-american-magic-will-spur-us-economic-recovery.htmlRating: 1.40
Warren Buffett's Berkshire Hathaway sells entire stake in US airlines
Berkshire Hathaway Inc. has sold its stakes in the four largest U.S. airline companies, Warren Buffett, the owner of the conglomerate holding company, told shareholders on Saturday. Berkshire Hathaway held an 11 percent stake in Delta Air Lines, 10 percent of American Airlines and Southwest Airlines, and 9 percent of United Airlines, making it one of the largest holders in those companies, according to Reuters. The company had invested around $7 billion or $8 billion in the four companies, Buffett said. Citing the outbreak of the novel coronavirus and what it's done to demand for air travel, Buffett said that he decided to sell those stakes because he concluded he'd made a "mistake in valuing." "We took money out of the business, basically, even at a substantial loss," Buffett said. "We will not fund a company ... where we think that it is going to chew up money in the future." "The airline business — and I may be wrong, and I hope I'm wrong — I think it changed in a very major way, and it's obviously changed in the fact that their four companies are each going to borrow perhaps average of at least $10 [billion] or $12 billion each," he added. Airlines around the world have experienced a substantial financial hit in recent months as planes stay grounded due to a rapid drop in demand. American Airlines reported a first-quarter net loss of $2.2 billion. United Airlines said its net loss was $1.7 billion. Buffett's holding company also reported a loss of nearly $50 billion during the first quarter, according to a U.S. Securities and Exchange Commission filing. He expressed optimism about the U.S.'s ability to recover economically during the shareholder meeting, saying, "The American miracle, the American magic has always prevailed, and it will do so again." At the same time, he voiced concerns about the U.S. airline industry and its ability to recover to pre-pandemic levels. "I don't know whether two or three years from now that as many people will fly as many passenger miles as they did," he said. The Trump administration and the major U.S. airlines reached an agreement last month on a $25 billion bailout to help companies weather a sudden drop in revenue. The program, which was created as part of the coronavirus stimulus package signed by President Trump in March, is intended to help the airlines pay staff.
3 May 11:36 • TheHill • https://thehill.com/policy/finance/495840-warren-buffetts-berkshire-hathaway-sells-entire-stake-in-us-airlinesRating: 1.94
Warren Buffett: 'American magic' will spur US economic recovery
Billionaire investor Warren Buffet said Saturday he's confident the US economy will bounce back from its pummeling by the coronavirus pandemic because "American magic has always prevailed." The 89-year-old made the sanguine prediction about the world's largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly $50 billion. Buffett also announced Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry. "It turns out I was wrong," he said of his acquisitions of 10 percent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Berkshire Hathaway had paid $7 billion to $8 billion, and "we did not take out anything like that," he said. Between the purchases that took place over months, and the sale, "the airlines business I think changed in a very major way" and could no longer meet Berkshire criteria for profitability, he said. Buffett's announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for $25 billion in relief funds. Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback "temporary" but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. "We've faced great problems in the past, haven't faced this exact problem -- in fact we haven't really faced anything that quite resembles this problem," Buffett said in a lengthy speech on the country's economic history. "But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again." "We are now a better country, as well as an incredibly more wealthy country, than we were in 1789... We got a long ways to go but we moved in the right direction," he said, referencing the abolition of slavery and women's suffrage. "Never bet against America." Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company's annual gathering in Omaha is a high-point of the calendar for investors, a "Woodstock for capitalists." But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway's wide range of investments, and the need for social distancing forced it to hold the annual meeting online. Buffett addressed his shareholders in a livestream flanked only by Gregory Abel, who is in charge of Berkshire's non-insurance operations. His business partner for six decades, 96-year-old Charlie Munger, did not appear. Buffett, in a statement, played down his company's bleak-looking net figure. He said a better measure of the company's performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier. The brutal drop in the net -- to a loss of $49.75 billion from a profit last year of $21.7 billion -- resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated "Oracle of Omaha." Buffett, famous for his relatively modest lifestyle, turns 90 on August 30. In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting "comparative revenue and earnings increases" over the same 2019 period. Many of its companies -- including in rail transport, energy production and some manufacturing and service businesses -- are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are "necessary actions" and "temporary," it said.
3 May 03:43 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/news/warren-buffett-american-magic-will-spur-us-economic-recovery/articleshow/75514038.cmsRating: 0.30
Warren Buffett's company Berkshire Hathaway sells US airline shares
Billionaire investor Warren Buffett says his company Berkshire Hathaway has sold all of its shares in the four largest US airlines. Speaking at the annual shareholders' meeting, Mr Buffett said "the world has changed" because of the coronavirus. He then said he had been wrong to invest in the airline industry. Mr Buffett's comments came just hours after Berkshire Hathaway announced a record $50bn (£40bn) net first quarter loss, Reuters news agency reports. The conglomerate had an 11% stake in Delta Air Lines, 10% of American Airlines, 10% of Southwest Airlines, and 9% of United Airlines, according to its annual report and company filings. The firm began investing in the four airlines in 2016, after avoiding the aviation industry for years. Mr Buffett told the meeting, which was held virtually: "We made that decision in terms of the airline business. We took money out of the business basically even at a substantial loss. "We will not fund a company that... where we think that it is going to chew up money in the future." The US travel industry has almost collapsed as a result of the coronavirus pandemic, with airlines cutting hundreds of thousands of flights and taking thousands of planes out of service. Mr Buffett said he had been considering investing in additional airlines before the pandemic hit. "It is a blow to have, essentially, your demand dry up," he said. "It is basically that we shut off air travel in this country." In a statement, Delta said it was aware of the sale and has "tremendous respect for Mr Buffett and the Berkshire team". The airline added that it remains "confident" in its strengths.
3 May 03:30 • BBC News • https://www.bbc.co.uk/news/world-us-canada-52518186Rating: 4.85
Warren Buffett Sold All His Airline Stocks: Should You Sell Too?
Warren Buffett has bailed on the airlines, with Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) selling its entire stakes in Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), American Airlines Group (NASDAQ:AAL), and United Airlines Holdings (NASDAQ:UAL). Airline stocks have been hard hit by the COVID-19 pandemic, with travel demand all but evaporating. Most airline stocks have lost half of their value or more this year as a result, with the industry now focused more on survival than earnings growth. Speaking at Berkshire's annual meeting on Saturday, Buffett said he did not sell due to the declining share prices. Rather, "I just decided that I'd made a mistake." The announcement is sure to put further pressure on airline shares, as investors have made a lot of money over the years doing as Buffett does. But is the Oracle of Omaha right this time around? Berkshire has a long and turbulent history with the airlines. Three decades ago, he bought shares in USAir (now part of American) but ended up writing off much of that investment. In 2001, he swore off the industry, declaring that "if capitalists had been present at Kitty Hawk when the Wright brothers' plane first took off, they should have shot it down." But in recent years he warmed to the sector, becoming one of the largest shareholders in each of the four biggest U.S. airlines. The industry in the late 2000s went through a period of restructuring and consolidation that reduced the number of competitors chasing every passenger and allowing all the remaining participants to be more profitable. Buffett was so enamored with airlines that in 2019 he broke one of his cardinal rules and allowed Berkshire's position in Delta, and then Southwest, to climb above the 10% threshold. Crossing 10% led to Berkshire having to make more disclosures about its stakes in those carriers, which back in early April gave us our first hints Berkshire was selling. There is certainly reason for concern. Airlines have a rocky history during recessions, as the industry has seen a number of onetime high fliers -- including TWA, Pan Am, and Eastern -- disappear during past downturns. This COVID-19 slowdown has hit the industry worse than the attacks of Sept. 11, 2001, with United, for example, expecting to fly fewer passengers in the entire month of May 2020 than it did on any single day in May 2019. Even after the pandemic is contained, the airline business appears headed for a difficult future. Between virus fears and a likely recession, travelers could take a long time to return. Buffett said Saturday, "I don't know that three or four years from now people will fly as many passenger miles as they did last year." Boeing management backed up that sentiment on the company's earnings call last week, predicting it would take years for traffic to return to pre-pandemic levels. And while the airlines are getting $50 billion in bailout funds to help buffer the revenue declines, the companies have warned they might have to be significantly smaller in the future. The airlines reported billions in losses in the first quarter, and the second quarter is going to be worse. They have traded stock warrants for government help, extended their balance sheets by adding billions in debt, and in some cases diluted shareholders by raising equity at multiyear share-price lows. Buffett shied away from criticizing airline CEOs in his comments Saturday, saying he does not envy the challenges they face. "The world has changed for airlines, and I wish them well," he said, predicting the industry would have to shed significant portions of their fleets, and a lot of jobs, in the years to come. He's probably right, and most of the airlines have already grounded large numbers of planes. But the airlines by and large have the wherewithal to survive a more typical recessionary travel environment. The big unknown is just how long travel demand will remain depressed, and just how severe the depression will be. Berkshire's dalliance with airlines is very off-key for an investor who famously said, "be greedy when others are fearful." Berkshire is almost without doubt selling low after buying high. And the fact that Buffett would rather take his lumps and move on than ride out the storm should send a shiver down the spines of other shareholders. I'm one of those shareholders, and I believe he is right that the industry faces a multiyear recovery. I also believe that the airlines, thanks to all that hard work done in the past decade, can fly through this crisis without bankruptcies. But I'll concede that with so much still unknown about the extent of the pandemic, and the recession that will likely follow, it is impossible to say for sure. Traffic is currently down 90% or more year over year. If that continues through the summer and into the fall, all bets are off. It also seems likely the airlines will be slower to recover once whatever trouble lies ahead is over. But with the major airline stocks now trading at less than 0.4 times trailing sales, there is the potential for blockbuster returns if they make it through the down times and traffic does once again return. Given the uncertainty, I think there are better sectors to buy into right now. If Buffett ends up redeploying the $6 billion in proceeds from the airline sales in the months to come, it will be hard to argue with the decision. But for now, at least, Buffett has remained on the sidelines, with Berkshire Hathaway's total cash stockpile rising to $137 billion at the end of March. Time will tell, and as a Berkshire shareholder, I hate to go against Buffett. But given the choice between cash on the sidelines and holding Delta shares, I'm holding my shares. And I believe investors willing to hold on to top performers like Delta and Southwest will be rewarded. Buffett's now been wrong about airlines multiple times during his long, storied career. The airlines are in a world of hurt right now. But I'm betting he didn't get it completely right when he decided to sell this time around, either.
3 May 02:41 • The Motley Fool • https://www.fool.com/investing/2020/05/02/warren-buffett-said-he-was-wrong-about-airlines-wa.aspxRating: 0.30
Billionaire Warren Buffett dumps airline stocks as Berkshire Hathaway posts $US50b loss
Billionaire US investor Warren Buffett said his company Berkshire Hathaway completely exited its stakes in the four major US airlines, as the coronavirus pandemic pushed the vaunted investment firm to $US49.7 billion ($77 billion) quarterly loss. The sales of shares of Delta Air Lines, Southwest Airlines, American Airlines and United Airlines made up most of the company's $US6.5 billion in equity sales in April. During his live-streamed annual meeting, Buffett said the business has fundamentally changed following the economic fallout from the coronavirus pandemic. He declined to blame the performance of the airline executives, saying they've done a good job of raising money to get through the crisis. "The world changed for airlines and I wish them well," Buffett said Saturday. He clarified that he made the decision and that he lost money on his investments. "That was my mistake." Buffett's had a complicated relationship with the airline industry over the years. After a troublesome investment in USAir, Buffett joked that he would call an 800 number to declare he was an "air-o-holic" if he ever got the urge to invest in airlines again. Then in 2016, Berkshire dove into the industry again, amassing stakes in the four largest US airlines. At the end of 2019, those stakes amounted to almost $US10 billion. Buffett's renewed faith in the industry prompted speculation that he might one day own one of the carriers. But now, he's cut those investments again. Berkshire disclosed in April that it had at least trimmed its Delta and Southwest stakes, both of which had previously been above a 10 per cent ownership level. "The airline business - and I may be wrong and I hope I'm wrong - but I think it's changed in a very major way," Buffett said. "The future is much less clear to me." The disclosure was among the most significant at the annual meeting, which was notable for its different feel this year as the event that usually draws tens of thousands was done was hosted virtually. Buffett, 89, shared the stage with a top deputy, Greg Abel, who runs Berkshire's non-insurance operating units. Vice Chairman Charlie Munger, 96, didn't join, though Buffett said his longtime business partner was in good health. Buffett said he didn't know how consumer travel habits will change after the pandemic subsides, but any reduction in travel could leave airlines with higher-than-necessary fixed costs. Any impact could filter down to suppliers like Boeing Co. "The real question is whether you need a lot of new planes or not," he said. Buffett said the efforts to slow the pandemic amounted to "quite an experiment," and while the range of public health and economic outcomes has narrowed, they remain "enormous." "I don't know the consequences" of shutting down large parts of the US economy, Buffett said, though Berkshire's operating earnings will be "considerably less" than if the virus hadn't hit. Buffett gave an extended history lesson to back up his assertion that "nothing basically can stop America." He said he's still bullish on the US economy because it has overcome many obstacles over the past two centuries, though "we haven't faced anything that quite resembles this." Bloomberg
3 May 01:46 • The Age • https://www.theage.com.au/business/markets/billionaire-warren-buffett-dumps-airline-stocks-as-berkshire-hathaway-posts-us50b-loss-20200503-p54pcd.html?ref=rssRating: 2.20
Billionaire Warren Buffett dumps airline stocks as Berkshire Hathaway posts $US50b loss
Billionaire US investor Warren Buffett said his company Berkshire Hathaway completely exited its stakes in the four major US airlines, as the coronavirus pandemic pushed the vaunted investment firm to $US49.7 billion ($77 billion) quarterly loss. The sales of shares of Delta Air Lines, Southwest Airlines, American Airlines and United Airlines made up most of the company's $US6.5 billion in equity sales in April. During his live-streamed annual meeting, Buffett said the business has fundamentally changed following the economic fallout from the coronavirus pandemic. He declined to blame the performance of the airline executives, saying they've done a good job of raising money to get through the crisis. "The world changed for airlines and I wish them well," Buffett said Saturday. He clarified that he made the decision and that he lost money on his investments. "That was my mistake." Buffett's had a complicated relationship with the airline industry over the years. After a troublesome investment in USAir, Buffett joked that he would call an 800 number to declare he was an "air-o-holic" if he ever got the urge to invest in airlines again. Then in 2016, Berkshire dove into the industry again, amassing stakes in the four largest US airlines. At the end of 2019, those stakes amounted to almost $US10 billion. Buffett's renewed faith in the industry prompted speculation that he might one day own one of the carriers. But now, he's cut those investments again. Berkshire disclosed in April that it had at least trimmed its Delta and Southwest stakes, both of which had previously been above a 10 per cent ownership level. "The airline business - and I may be wrong and I hope I'm wrong - but I think it's changed in a very major way," Buffett said. "The future is much less clear to me." The disclosure was among the most significant at the annual meeting, which was notable for its different feel this year as the event that usually draws tens of thousands was done was hosted virtually. Buffett, 89, shared the stage with a top deputy, Greg Abel, who runs Berkshire's non-insurance operating units. Vice Chairman Charlie Munger, 96, didn't join, though Buffett said his longtime business partner was in good health. Buffett said he didn't know how consumer travel habits will change after the pandemic subsides, but any reduction in travel could leave airlines with higher-than-necessary fixed costs. Any impact could filter down to suppliers like Boeing Co. "The real question is whether you need a lot of new planes or not," he said. Buffett said the efforts to slow the pandemic amounted to "quite an experiment," and while the range of public health and economic outcomes has narrowed, they remain "enormous." "I don't know the consequences" of shutting down large parts of the US economy, Buffett said, though Berkshire's operating earnings will be "considerably less" than if the virus hadn't hit. Buffett gave an extended history lesson to back up his assertion that "nothing basically can stop America." He said he's still bullish on the US economy because it has overcome many obstacles over the past two centuries, though "we haven't faced anything that quite resembles this."
3 May 01:46 • WAtoday • https://www.watoday.com.au/business/markets/billionaire-warren-buffett-dumps-airline-stocks-as-berkshire-hathaway-posts-us50b-loss-20200503-p54pcd.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
Billionaire Warren Buffett dumps airline stocks as Berkshire Hathaway posts $US50b loss
Billionaire US investor Warren Buffett said his company Berkshire Hathaway completely exited its stakes in the four major US airlines, as the coronavirus pandemic pushed the vaunted investment firm to $US49.7 billion ($77 billion) quarterly loss. The sales of shares of Delta Air Lines, Southwest Airlines, American Airlines and United Airlines made up most of the company's $US6.5 billion in equity sales in April. During his live-streamed annual meeting, Buffett said the business has fundamentally changed following the economic fallout from the coronavirus pandemic. He declined to blame the performance of the airline executives, saying they've done a good job of raising money to get through the crisis. "The world changed for airlines and I wish them well," Buffett said Saturday. He clarified that he made the decision and that he lost money on his investments. "That was my mistake." Buffett's had a complicated relationship with the airline industry over the years. After a troublesome investment in USAir, Buffett joked that he would call an 800 number to declare he was an "air-o-holic" if he ever got the urge to invest in airlines again. Then in 2016, Berkshire dove into the industry again, amassing stakes in the four largest US airlines. At the end of 2019, those stakes amounted to almost $US10 billion. Buffett's renewed faith in the industry prompted speculation that he might one day own one of the carriers. But now, he's cut those investments again. Berkshire disclosed in April that it had at least trimmed its Delta and Southwest stakes, both of which had previously been above a 10 per cent ownership level. "The airline business - and I may be wrong and I hope I'm wrong - but I think it's changed in a very major way," Buffett said. "The future is much less clear to me." The disclosure was among the most significant at the annual meeting, which was notable for its different feel this year as the event that usually draws tens of thousands was done was hosted virtually. Buffett, 89, shared the stage with a top deputy, Greg Abel, who runs Berkshire's non-insurance operating units. Vice Chairman Charlie Munger, 96, didn't join, though Buffett said his longtime business partner was in good health. Buffett said he didn't know how consumer travel habits will change after the pandemic subsides, but any reduction in travel could leave airlines with higher-than-necessary fixed costs. Any impact could filter down to suppliers like Boeing Co. "The real question is whether you need a lot of new planes or not," he said. Buffett said the efforts to slow the pandemic amounted to "quite an experiment," and while the range of public health and economic outcomes has narrowed, they remain "enormous." "I don't know the consequences" of shutting down large parts of the US economy, Buffett said, though Berkshire's operating earnings will be "considerably less" than if the virus hadn't hit. Buffett gave an extended history lesson to back up his assertion that "nothing basically can stop America." He said he's still bullish on the US economy because it has overcome many obstacles over the past two centuries, though "we haven't faced anything that quite resembles this." Bloomberg
3 May 01:46 • Brisbane Times • https://www.brisbanetimes.com.au/business/markets/billionaire-warren-buffett-dumps-airline-stocks-as-berkshire-hathaway-posts-us50b-loss-20200503-p54pcd.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
Warren Buffett: 'American magic' will spur US economic recovery
Billionaire investor Warren Buffet said Saturday he's confident the US economy will bounce back from its pummeling by the coronavirus pandemic because "American magic has always prevailed." The 89-year-old made the sanguine prediction about the world's largest economy as his holding company Berkshire Hathaway reported first-quarter net losses of nearly $50 billion. Buffett also announced Saturday that his company had sold all its stakes in four major US airlines last month, as the pandemic clobbered the travel industry. "It turns out I was wrong," he said of his acquisitions of 10 percent stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Berkshire Hathaway had paid $7 billion to $8 billion, and "we did not take out anything like that," he said. Between the purchases that took place over months, and the sale, "the airlines business I think changed in a very major way" and could no longer meet Berkshire criteria for profitability, he said. Buffett's announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for $25 billion in relief funds. - 'American miracles, American magic' - Berkshire Hathaway, based in Omaha, Nebraska, called its first-quarter setback "temporary" but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. "We've faced great problems in the past, haven't faced this exact problem -- in fact we haven't really faced anything that quite resembles this problem," Buffett said in a lengthy speech on the country's economic history. "But we faced tougher problems, and the American miracles, American magic has always prevailed and it will do so again." "We are now a better country, as well as an incredibly more wealthy country, than we were in 1789... We got a long ways to go but we moved in the right direction," he said, referencing the abolition of slavery and women's suffrage. "Never bet against America." Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company's annual gathering in Omaha is a high-point of the calendar for investors, a "Woodstock for capitalists." But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway's wide range of investments, and the need for social distancing forced it to hold the annual meeting online. Buffett addressed his shareholders in a livestream flanked only by Gregory Abel, who is in charge of Berkshire's non-insurance operations. His business partner for six decades, 96-year-old Charlie Munger, did not appear. - Growth by one measure - Buffett, in a statement, played down his company's bleak-looking net figure. He said a better measure of the company's performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier. The brutal drop in the net -- to a loss of $49.75 billion from a profit last year of $21.7 billion -- resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated "Oracle of Omaha." Buffett, famous for his relatively modest lifestyle, turns 90 on August 30. In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting "comparative revenue and earnings increases" over the same 2019 period. Many of its companies -- including in rail transport, energy production and some manufacturing and service businesses -- are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. Moves taken by those companies such as employee furloughs, salary cuts and reductions, and capital spending reductions are "necessary actions" and "temporary," it said.
3 May 01:20 • Digital Journal • http://www.digitaljournal.com/news/world/warren-buffett-american-magic-will-spur-us-economic-recovery/article/571114Rating: 0.78
Warren Buffett's Berkshire Hathaway ditched the 'big four' airline stocks in April, driving $6.1 billion in stock sales
Warren Buffett’s Berkshire Hathaway sold the “big four” airline stocks in April, the famed investor revealed at Berkshire Hathaway’s annual meeting on Saturday. “It turned out I was wrong,” Buffett said about his decision to invest in the airlines. The companies are well managed and the CEOs “did a lot of things right,” he continued, but “the airline business … changed in a very major way.” Berkshire’s first-quarter earnings revealed that it sold $6.1 billion in stock in April, without detailing what it sold. Buffett attributed that figure to Berkshire’s exit from the airlines. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode Buffett explained the move by highlighting the airlines’ bailout deals with the US government. Their agreements include billions of dollars in loans that they will have to repay, as well as warrants that the Treasury can exercise to acquire their shares at a discount in the future. The warrant part of the deal was inspired by Buffett’s bailouts of Goldman Sachs and other companies during the financial crisis. The investor also questioned whether people will fly as much in the next two or three years as they did last year. Even if passenger volumes bounce back to 70% or 80% of their pre-coronavirus levels, he said, the carriers will be left with “too many planes.” “The future is much less clear to me,” Buffett said about the airline business. Read more:Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them
3 May 01:01 • Business Insider Nederland • https://www.businessinsider.nl/warren-buffett-berkshire-hathaway-sold-airline-stocks-april-2020-5/Rating: 0.30
Warren Buffett's Berkshire Hathaway ditched the 'big four' airline stocks in April, driving $6.1 billion in stock sales
Warren Buffett's Berkshire Hathaway exited its positions in the "big four" airlines in April, the famed investor revealed at Berkshire Hathaway's annual meeting on Saturday. "It turned out I was wrong," Buffett said about his decision to invest in American, Delta, United, and Southwest. "Our airline position was a mistake." The companies are well-managed and the CEOs "did a lot of things right," he continued, but "the airline business ... changed in a very major way." Berkshire's first-quarter earnings revealed that it sold $6.1 billion in stock in April, without detailing what it sold. Buffett attributed that figure to Berkshire's sale of its airline stocks. Read more:'Brace for selling': A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now — opening the floodgates for a 'sell in May' episode Buffett explained the move by highlighting the airlines' bailout deals with the US government. Their agreements include billions of dollars in loans that they will have to repay, as well as warrants that the Treasury can exercise to acquire their shares at a discount in the future. The warrant part of the deal was inspired by Buffett's bailouts of Goldman Sachs and other companies during the financial crisis. The investor also questioned whether people will fly as much in the next two or three years as they did last year. Even if passenger volumes bounce back to 70% or 80% of their pre-coronavirus levels, he said, the carriers will be left with "too many planes." "The future is much less clear to me," Buffett said about the airline business. Read more: GOLDMAN SACHS: These are the top 11 companies to watch as we enter the best stock-picking environment in over a decade
3 May 01:00 • Business Insider • https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-sold-airline-stocks-april-2020-5-1029156875Rating: 0.30
Berkshire sells entire stakes in US airlines
NEW YORK, May 3 — Berkshire Hathaway Inc has sold its entire stakes in the four largest US airlines, Chairman Warren Buffett said Saturday at the company’s annual meeting. The conglomerate held sizeable positions in the airlines, including an 11 per cent stake in Delta Air Lines and about 9 per cent stakes in both United Airlines and Southwest Airlines Co at the end of 2019, according to its annual report. Airline stocks have been hard hit by the near collapse US travel demand amid the coronavirus pandemic. Buffett said Berkshire had invested around US$7 billion or US$8 billion (RM30 or RM34.3 billion) amassing stakes in the four airlines including American Airlines Group Inc. “We did not take out anything like US$7 or US$8 billion and that was my mistake,” Buffett said at the company’s annual meeting which was livestreamed. “I am the one who made the decision.” The airlines did not immediately respond to requests for comment on the sales. “It is a blow to have essentially your demand dry up.... It is basically that we shut off air travel in this country,” Buffett added. — Reuters
2 May 23:56 • Malaymail • https://www.malaymail.com/news/money/2020/05/03/berkshire-sells-entire-stakes-in-us-airlines/1862516Rating: 1.42
Debt, Overcapacity Are Why Warren Buffett Sells Airline Stocks During Coronavirus. Berkshire Hathaway Divests American, Delta, Southwest And United
Warren Buffett’s Berkshire Hathaway BRK.B has sold at a loss its entire portfolio of U.S. airline stocks comprising American Airlines AAL , Delta DAL Air Lines, Southwest LUV Airlines and United UAL Airlines. “We put, whatever it was, seven or eight billion into it and we did not take out anything like seven or eight billion,” Buffett said during Berkshire’s annual meeting on May 2. “That was my mistake.” “We have sold the entire positions,” he said. “When we change our mind we don’t take half measures or anything of the sort.” Berkshire had an 11% stake in Delta, 10% in each American and Southwest, and 9% in United. It sold some of the Delta and Southwest stakes in April. Berkshire started accumulating holdings in 2016, a reversal from Buffett’s long disdain for airlines. The Oracle of Omaha professes no insight to the long-term outlook of travel and the aviation business. But Buffett sees the immediate future negative for investors since airlines are accumulating debt, diluting shareholder value by issuing equity, and could have overcapacity. “It’s obviously changed in the fact that the four companies are each going to borrow perhaps an average of at least $10 or $12 billion each,” Buffett said. “You have to pay that back out of earnings over some period of time.” Buffett does not fault airline management. “We were not disappointed at all in how the businesses were being run,” he said. Current problems are “through absolutely no fault of the airlines themselves but something that was a low probability event.” Buffett expects further short-term aviation weakness from over-capacity. “The airline business has the problem that if the business comes back 70% or 80%, the aircraft don’t disappear,” he said. “You’ve got too many planes.” American and Delta are exiting around 100 aircraft and evaluating further retirements. United and others are also assessing their future sizes. MORE FROM FORBESGoodbye, Mad Dog. Delta Retires MD-88 In July, Plans MD-90 ExitBy Will Horton Buffett was displeased shareholder value in airlines could be diluted from new equity. “In some cases they’re having to sell stock or sell the right to buy stock,” Buffett said. “That takes away from the upside.” U.S. airlines agreed to give the government warrants in exchange for the $25 billion of loans authorized under the CARES Act. The warrants generally equate to around a 1% stake. United Airlines is raising $1.04 billion of new equity, so far the only U.S. airline to do so. Outside of the U.S., Singapore Airlines raised S$5.3 billion (US$3.74 billion) in new equity. But most governments are only giving loans. By accepting the U.S. government loans, airlines are prohibited from issuing dividends until one year after they repay the loan. The loans also went to smaller airlines like Alaska and JetBlue, but Buffett only invested in the big four: American, Delta, Southwest and United. “We would have bought other airlines,” Buffett disclosed. “But those were the four big ones and the ones we could put some money into.” U.S. airlines are further raising debt by tapping private markets, often in amounts that exceed the loans from the U.S. government. The CARES Act separately authorized $25 billion of direct grants to cover payroll expenses. Buffett did not disclose the size of losses by selling his airline portfolio, but said it was “relatively minor.” There is considerable attention on Buffet’s proclamation “the world changed for airlines.” But Buffett said he had no insights. “I don’t know how it’s changed,” he conceded. “I don’t know whether Americans will have now changed their habits or will change their habits,” Buffett said. “It’s been seven weeks since I’ve had a haircut,” he said. “I’ve been just a question of ‘Which sweatsuit I wear?’ so who knows. Who knows how we come out of this.”
3 May 00:00 • Forbes • https://www.forbes.com/sites/willhorton1/2020/05/03/warren-buffet-sells-stock-in-airlines-as-coronavirus-debt-grows-too-much-for-berkshire-hathaway/Rating: 4.41
Berkshire sells entire stakes in U.S airlines - Buffett
Berkshire Hathaway Inc has sold its entire stakes in the four largest U.S. airlines, Chairman Warren Buffett said Saturday at the company’s annual meeting. The conglomerate held sizeable positions in the airlines, including an 11% stake in Delta Air Lines and about 9% stakes in both United Airlines and Southwest Airlines Co at the end of 2019, according to its annual report. Airline stocks have been hard hit by the near collapse U.S. travel demand amid the coronavirus pandemic. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc. “We did not take out anything like $7 or $8 billion and that was my mistake,” Buffett said at the company’s annual meeting which was livestreamed. “I am the one who made the decision.” The airlines did not immediately respond to requests for comment on the sales. “It is a blow to have essentially your demand dry up…. It is basically that we shut off air travel in this country,” Buffett added. (Reporting by David Shepardson and Jonathan Stempel; Editing by Cynthia Osterman)
2 May 23:40 • Financial Post • https://business.financialpost.com/pmn/business-pmn/berkshire-sells-entire-stakes-in-u-s-airlines-buffett-2Rating: 0.94
Warren Buffett Says Berkshire Is Reversing Course on Airlines—Again
Warren Buffett is reversing course on his airlines bet -- again. The billionaire investor said Berkshire Hathaway Inc. completely exited its stakes in the four major U.S. airlines. The sales of shares of Delta Air Lines Inc., Southwest Airlines Co., American Airlines Group Inc. and United Airlines Holdings Inc. made up most of the company’s $6.5 billion in equity sales in April. During his live-streamed annual meeting, Buffett said the business has fundamentally changed following the economic fallout from the coronavirus pandemic. He declined to blame the performance of the airline executives, saying they’ve done a good job of raising money to get through the crisis. “The world changed for airlines and I wish them well,” Buffett said Saturday. He clarified that he made the decision and that he lost money on his investments. “That was my mistake.” Buffett’s had a complicated relationship with the airline industry over the years. After a troublesome investment in USAir, Buffett joked that he would call an 800 number to declare he was an “air-o-holic” if he ever got the urge to invest in airlines again. Then in 2016, Berkshire dove into the industry again, amassing stakes in the four largest U.S. airlines. At the end of 2019, those stakes amounted to almost $10 billion. Buffett’s renewed faith in the industry prompted speculation that he might one day own one of the carriers. But now, he’s cut those investments again. Berkshire disclosed in April that it had at least trimmed its Delta and Southwest stakes, both of which had previously been above a 10% ownership level. “The airline business -- and I may be wrong and I hope I’m wrong -- but I think it’s changed in a very major way,” Buffett said. “The future is much less clear to me.” The disclosure was among the most significant at the annual meeting, which was notable for its different feel this year as the event that usually draws tens of thousands was hosted virtually. Buffett, 89, shared the stage with a top deputy, Greg Abel, who runs Berkshire’s non-insurance operating units. Vice Chairman Charlie Munger, 96, didn’t join, though Buffett said his longtime business partner was in good health. Buffett said he didn’t know how consumer travel habits will change after the pandemic subsides, but any reduction in travel could leave airlines with higher-than-necessary fixed costs. Any impact could filter down to suppliers like Boeing Co. “The real question is whether you need a lot of new planes or not,” he said. Buffett said the efforts to slow the pandemic amounted to “quite an experiment,” and while the range of public health and economic outcomes has narrowed, they remain “enormous.” “I don’t know the consequences” of shutting down large parts of the U.S. economy, Buffett said, though Berkshire’s operating earnings will be “considerably less” than if the virus hadn’t hit. Buffett gave an extended history lesson to back up his assertion that “nothing basically can stop America.” He said he’s still bullish on the U.S. economy because it has overcome many obstacles over the past two centuries, though “we haven’t faced anything that quite resembles this.” (Updates with Buffett’s comments starting in third paragraph)
2 May 22:37 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-02/buffett-says-berkshire-reversing-course-on-airlines-againRating: 4.04
Warren Buffett's Berkshire Hathaway ditched the 'big four' airline stocks in April, driving $6.1 billion in stock sales
Warren Buffett’s Berkshire Hathaway sold the “big four” airline stocks in April, the famed investor revealed at Berkshire Hathaway’s annual meeting on Saturday. “It turned out I was wrong,” Buffett said about his decision to invest in the airlines. The companies are well managed and the CEOs “did a lot of things right,” he continued, but “the airline business … changed in a very major way.” Berkshire’s first-quarter earnings revealed that it sold $US6.1 billion in stock in April, without detailing what it sold. Buffett attributed that figure to Berkshire’s exit from the airlines. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode Buffett explained the move by highlighting the airlines’ bailout deals with the US government. Their agreements include billions of dollars in loans that they will have to repay, as well as warrants that the Treasury can exercise to acquire their shares at a discount in the future. The warrant part of the deal was inspired by Buffett’s bailouts of Goldman Sachs and other companies during the financial crisis. The investor also questioned whether people will fly as much in the next two or three years as they did last year. Even if passenger volumes bounce back to 70% or 80% of their pre-coronavirus levels, he said, the carriers will be left with “too many planes.” “The future is much less clear to me,” Buffett said about the airline business. Read more:Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them
2 May 22:58 • Business Insider Australia • https://www.businessinsider.com.au/warren-buffett-berkshire-hathaway-sold-airline-stocks-april-2020-5Rating: 0.30
Warren Buffett's Berkshire Hathaway ditched the 'big four' airline stocks in April, driving $6.1 billion in stock sales, Business Insider - Business Insider Singapore
Warren Buffett’s Berkshire Hathaway sold the “big four” airline stocks in April, the famed investor revealed at Berkshire Hathaway’s annual meeting on Saturday. “It turned out I was wrong,” Buffett said about his decision to invest in the airlines. The companies are well managed and the CEOs “did a lot of things right,” he continued, but “the airline business … changed in a very major way.” Berkshire’s first-quarter earnings revealed that it sold $6.1 billion in stock in April, without detailing what it sold. Buffett attributed that figure to Berkshire’s exit from the airlines. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode Buffett explained the move by highlighting the airlines’ bailout deals with the US government. Their agreements include billions of dollars in loans that they will have to repay, as well as warrants that the Treasury can exercise to acquire their shares at a discount in the future. The warrant part of the deal was inspired by Buffett’s bailouts of Goldman Sachs and other companies during the financial crisis. The investor also questioned whether people will fly as much in the next two or three years as they did last year. Even if passenger volumes bounce back to 70% or 80% of their pre-coronavirus levels, he said, the carriers will be left with “too many planes.” “The future is much less clear to me,” Buffett said about the airline business. Read more:Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them
2 May 22:58 • www.businessinsider.sg • https://www.businessinsider.sg/warren-buffett-berkshire-hathaway-sold-airline-stocks-april-2020-5Rating: 0.30
Warren Buffett’s Berkshire Hathaway ditched the ‘big four’ airline stocks in April, driving $6.1 billion in stock sales
Warren Buffett’s Berkshire Hathaway sold the “big four” airline stocks in April, the famed investor revealed at Berkshire Hathaway’s annual meeting on Saturday. “It turned out I was wrong,” Buffett said about his decision to invest in the airlines. The companies are well managed and the CEOs “did a lot of things right,” he continued, but “the airline business … changed in a very major way.” Berkshire’s first-quarter earnings revealed that it sold $6.1 billion in stock in April, without detailing what it sold. Buffett attributed that figure to Berkshire’s exit from the airlines. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode Buffett explained the move by highlighting the airlines’ bailout deals with the US government. Their agreements include billions of dollars in loans that they will have to repay, as well as warrants that the Treasury can exercise to acquire their shares at a discount in the future. The warrant part of the deal was inspired by Buffett’s bailouts of Goldman Sachs and other companies during the financial crisis. The investor also questioned whether people will fly as much in the next two or three years as they did last year. Even if passenger volumes bounce back to 70% or 80% of their pre-coronavirus levels, he said, the carriers will be left with “too many planes.” “The future is much less clear to me,” Buffett said about the airline business. Read more:Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them
2 May 22:58 • Business Insider Malaysia • https://www.businessinsider.my/warren-buffett-berkshire-hathaway-sold-airline-stocks-april-2020-5Rating: 0.30
Last chance saloon at SAA for labour and government, say BRPs
3 May 22:01
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3 articles
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Last chance saloon at SAA for labour and government, say BRPs
Public Enterprises Minister Pravin Gordhan has instructed the South African Airways (SAA) business rescue practitioners (BRPs) to extend the deadline for employees to accept retrenchment packages, while the state buys time to get funding or a buyer to enable the process of restructuring of the airline to resume. The final deadline for employees to accept severance packages is Monday, May 11, with BRPs Les Matuson and Siviwe Dongwana warning that the possibility of any further extensions is unlikely. New airline On Saturday the Department of Public Enterprises’s acting director-general, Kgathatso Tlhakudi, said government and labour at SAA had signed a compact to allow a smooth transition to a “new SAA” through sacrifice and collaboration on the new business model. Tlhakudi said the “bigger prize” of the compact would be saving the majority of the jobs in the SAA group and the 60 000 jobs in the industry as a whole. Tlhakudi explained that government is expecting that the dissolution of the old SAA and the emergence of a new airline will “unfold within the business rescue [window] despite challenges we’ve had to date in the production of the business rescue plan.” The department has employed the services of an international aviation consulting firm to assist in developing the framework of the new airline and expects this to be concluded in the “next few weeks,” said Tlhakudi. Capital The department has already indicated that the new airline would be funded through a number of options, including strategic equity partners, funders and the sale of non-core assets. Tlhakudi said “private capital” would be used to realise the business as well as provide managerial expertise. In order to give the government room to “properly explore” the funding options – either for immediate guaranteed funding that would allow the BRPs to “reconsider the perspective of a restructured SAA” or the sale of the business or assets to another party – Matuson and Dongwana extended the deadline again. Read: SAA: Government and labour agree to work towards new airline In a letter to unions and non-unionised employee representatives, the BRPs said they would offer labour an opportunity to accept the agreement by 10:00 on Friday, May 8. Should organised labour not accept the agreement the BRPs have reserved their right to extend the agreement to individual employees between May 8 and 11. Escape clause The revised severance package agreement effectively gives employees an additional but conditional week’s pay for every year of service. The BRPs have also added an “escape clause” which makes it clear that no employee will be prejudiced if they sign the agreement on or before May 11 and government subsequently unlocks funding to reinstate SAA’s solvency by June 30. These employees would be re-employed and their old contracts reinstated. The retrenchment process that was previously underway to cut half the airline’s staff would also continue. Read: SAA moves to cut almost half its workforce The agreement further states that the second weeks’ pay will only be payable should the BRPs be able to sell the company’s assets at a value that is sufficient to cover the packages, or if the shareholder, being the state, provides enough money to cover the packages without the sale of any SAA assets. It also hangs on the express approval by creditors in the business plan that will be published by the BRPs. Who is taking it? On Sunday Matuson and Dongwana said in a letter to workers that they would be opposing a legal bid brought by the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) asking the court to interdict the retrenchment process. Read: Unions seek court action over job cuts at SAA “If successful, it would further contribute to the financial and other challenges that SAA is facing and thereby prejudice all of SAA’s employees’ rights and benefits,” said Matuson and Dongwana. The matter will be heard on May 7, a day before the final deadline to accept the offer. The National Transport Movement (NTM), the Aviation Union of Southern Africa (Ausa), Solidarity and the South African Transport and Allied Workers Union (Satawu) had also requested the extension to May 8. NTM said it has accepted the agreement in principle, saying it believes that it protects workers. Non-unionised management representatives have also accepted the agreement in principle. Non-unionised representatives for other employees have rejected the agreement, stating that it “seeks to limit their rights, has no value and no definite date to repay retrenchment packages.” No money, no pay Read: SAA’s future: Messages from unions differ Matuson and Dongwana have warned that not paying salaries will not allow the company to “continue indefinitely” because it still has to pay medical aid, pension and other social benefits. For employees who do not accept the agreement through unions or other representatives by May 8, and who also miss the window to sign individually on May 11, the BRPs can terminate their employment for operational reasons. Further, they will only be entitled to one week’s pay for every year of service as their retrenchment package.
3 May 22:01 • Moneyweb • https://www.moneyweb.co.za/news/companies-and-deals/last-chance-saloon-at-saa-for-labour-and-government-say-brps/Rating: 1.42
Will ‘new’ SAA fly as unions fight retrenchments?
Government and a section of the workers’ unions at SAA are optimistic that a new national carrier could be raised from the ashes of SAA. But the courts may yet pronounce on the validity of the process to wind down or liquidate SAA in the absence of a business rescue plan, as the National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) approached the labour court to block the SAA business rescue practitioners from going ahead with the planned retrenchment of the national carrier’s nearly 5 000 workers in a process that could see the airline either wind down or be liquidated. On Friday, the public enterprises department said it was looking at “a business model that deals with what a new national carrier of the future will be, but also how this can be achieved to ensure a competitive edge in safety, quality and costs in the sectors within which SAA competes”. Public enterprises spokesperson Richard Mantu said that the agreed intention was to produce an airline that would be a catalyst for investment, job creation in key sectors and economic growth throughout all regions of the country, and would also be a mirror to the world, reflecting the splendour and beauty of our great nation. Airlines around the world are failing, but with the correct vision, leadership, business and operating model, as well as funding and implementation, the new national carrier will be well positioned to take to the skies again and contribute to the South African and African economyPublic enterprises spokesperson Richard Mantu “And to do so by designing an airline that will be funded through a variety of options such as strategic equity partners, funders and the sale of non-core assets, the parties are still of the view that the state must continue to play a role,” Mantu said. He said the creation of a new, dynamic airline with the correct corporate structure, led by skilled, competent and experienced management and staffed at competitive and benchmarked rates, would allow for the new SAA to compete in the post-Covid-19 coronavirus world. “Airlines around the world are failing, but with the correct vision, leadership, business and operating model, as well as funding and implementation, the new national carrier will be well positioned to take to the skies again and contribute to the South African and African economy,” he added. He said government and union leaders recognised that there were going to be serious challenges to overcome. Read: Has SAA reached the end of the runway? However, he said that “it is essential to build a leadership coalition which is robust and strong enough to find solutions, and establish the foundations of a new airline, with a growth path in this uncertain environment, that are in the best interest of our nation and all its citizens”. On Thursday, Numsa and Sacca said in court papers that the retrenchment plans were unlawful because the rescue practitioners, Les Matuson and Siviwe Dongwana, had not presented a business rescue plan as stipulated in the business rescue laws. Alternatively, said the union, the court should declare that it was unfair for the rescue practitioners to continue a consultative process on retrenchments without presenting a plan. Numsa and Sacca wanted the retrenchment notices withdrawn or the consultation process suspended until a business rescue plan was completed. In the meantime, workers should be allowed to continue until the rescue practitioners comply with the law. Any party that intended to oppose the application had until Tuesday to file an answering affidavit. The rescue plan had been expected as far back as February, but, according to the practitioners, it could be published at the end of this month It has been almost five months since the ailing national carrier was placed under business rescue, but the practitioners are yet to present a credible and financially viable plan to government, creditors and the public. The rescue plan had been expected as far back as February, but, according to the practitioners, it could be published at the end of this month. They had offered workers severance package options in the event that SAA was wound down or liquidated, but Numsa and Sacca refused to participate in the process. “What the rescue practitioners are offering employees as a so-called alternative to liquidation is no better financially than what they would get anyway in the liquidation of SAA, and might even be worse since their claims will be capped as of April 30 and payment of the package is subject to the adoption of a specific business rescue plan, which might not even be published, let alone adopted,” Numsa and Sacca said. Numsa general secretary Irvin Jim said “the implementation of retrenchments can’t be embarked on to inform and shape the content of a future business rescue plan. "This is putting the cart before the horse, and is an unlawful pruning of the business to achieve a future outcome.”
3 May 07:56 • CityPress • https://city-press.news24.com/Business/will-new-saa-fly-as-unions-fight-retrenchments-20200502Rating: 0.30
DPE: Some jobs at SAA will not be saved by the new national airline
JOHANNESBURG – The department of public enterprises said some jobs will be lost when it creates a new airline to replace state-owned South Africa Airways (SAA). Government has proposed starting a new airline with both public and private owners that will employ most of the almost 5,000 SAA employees. However, aviation experts are doubtful that a new airline will succeed where SAA has failed.Government said it's engaging with the private sector to raise capital and attract the best in the business to run the new venture. One of the biggest challenges is accommodating the 4,708 workers currently contracted to embattled SAA. The national carrier’s business rescue practitioners have proposed they be terminated and given severance packages from funding generated through the sale of assets. Public enterprises acting director general Kgothatso Tlhakudi said most of the workers will have jobs. Aviation expert Phuthego Mojapele said government will have to fund this.The department said work on the establishment of the new airline will be done soon.
3 May 00:00 • ewn.co.za • https://ewn.co.za/2020/05/03/dpe-some-jobs-at-saa-will-not-be-saved-by-the-new-national-airlineRating: 1.68
Missing Disney? Buy 1 of These Colorful Tie-Dye Spirit Jerseys For Your Next Visit
3 May 16:15
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Missing Disney? Buy 1 of These Colorful Tie-Dye Spirit Jerseys For Your Next Visit
As POPSUGAR editors, we independently select and write about stuff we love and think you'll like too. POPSUGAR has affiliate and advertising partnerships so we get revenue from sharing this content and from your purchase. If you're missing Disney right now because you can't go to the parks, the best thing to do is try to bring a little bit of the parks to you. In addition to making their famous churros and pineapple swirl at home, you can also sport one of their popular spirit jerseys. And while there are tons of cute ones to choose from, we're pretty obsessed with the tie-dye ones specifically. I mean, it's hard not to be happy with those bright colors and fun designs! There's a variety of tie-dye jerseys to choose from, including ones for both Walt Disney World and Disneyland (don't lie, you definitely think one is better than the other). Keep reading to shop these colorful spirt jerseys now, and get ready for that future visit (it will happen!). This one-of-a-kind Disneyland Dip Dye Spirit Jersey ($70) features a citrus "D" icon. Get in on all the neon fun with this Disneyland Splatter Spirit Jersey ($70) that's inspired by a "new wave" of 1980s nostalgia. Looking for something a little more retro? The Walt Disney Tie-Dye Briar Rose Gold Spirit Jersey ($70) lets you beam your Disneyland spirit in a pretty rose gold fashion. This Minnie Mouse Spirit Jersey ($70) is far too pretty to pass up. The pastel tie-dye top displays Minnie looking fashionable at the "World in Bloom" festival. The Walt Disney World Logo Tie-Dye Spirit Jersey ($70) embodies the magical spirit that is the Disney World theme park. This Walt Disney World Neon Splatter Spirit Jersey ($70) will have you smiling thinking about a future visit. Sport the "D" icon of the most magical place on Earth with this Walt Disney World Tie-Dye Briar Rose Gold Spirit Jersey ($70). Journey back to Fantasyland and Adventureland with this Disneyland Logo Tie-Dye Spirit Jersey ($70).
3 May 16:15 • POPSUGAR Smart Living • https://www.popsugar.com/smart-living/tie-dye-disney-spirit-jerseys-47373716Rating: 1.91
Missguided Sale: Take 50% Off Tiger King Collection and More
Shop the Missguided sale for 50% off everything on the Missguided site including super cute women's dresses, faux leather and more wardrobe favorites, no coupon code needed. You can also get an extra 10% off with the code XTRA10 through April 30. The social media-beloved online retailer, best known for its fashion-forward women's clothing and accessories inspired by the latest trends, is offering 50-70% off all shopping on the Missguided website. The sale includes items from Missguided's new Tiger King Collection, including t-shirts and hoodies. Missguided is already an affordable women's fashion brand, so imagine how much you'll save with these Missguided deals. A student discount is also offered for an extra 10% off on their stylish clothes to help you save even more money. Some of the standout Missguided fashion sale items perfect for your wardrobe include a distressed denim mini dress, bright coral bikini and more. Ahead, shop ET Style's favorite fashion products from the Missguided sale. Black Tiger King Graphic T ShirtMissguided MissguidedBlack Tiger King Graphic T ShirtMissguided This short sleeve t-shirt features a majestic tiger on the back. REGULARLY $28$14 at Missguided Notch Neck Ribbed BodysuitMissguided MissguidedNotch Neck Ribbed BodysuitMissguided An effortless Missguided bodysuit to slip into to pair with everything from jeans and skirts to joggers. REGULARLY $22$11 at Missguided Distressed Hem Extreme Oversized Denim Shirt DressMissguided MissguidedDistressed Hem Extreme Oversized Denim Shirt DressMissguided A casual button-down distressed denim dress from the trendy online fashion retailer that's every bit of cool. Style with combat boots or sneakers. REGULARLY $66$33 at Missguided Plus Size Coral Square Neck Bikini Top and High Waisted Bikini BottomsMissguided MissguidedPlus Size Coral Square Neck Bikini Top and High Waisted Bikini BottomsMissguided A bold high-waisted bikini for brighter, warmer days ahead. REGULARLY $22$11 at MissguidedREGULARLY $24$7 at Missguided Each product has been selected, and each product’s style has been reviewed by our editorial team; however, we may receive affiliate commissions from some links to products on this page. Prices listed are subject to change by the retailer. Promotions in this article are subject to availability, expiration and other terms as determined by partner.
3 May 05:44 • Entertainment Tonight • https://www.etonline.com/missguided-sale-take-50-off-tiger-king-collection-and-more-143514Rating: 0.71
Comfort dressing: women's loungewear
Chuck Taylor All Stars, £55, converse.comThis article contains affiliate links, which means we may earn a small commission if a reader clicks through and makes a purchase. All our journalism is independent and is in no way influenced by any advertiser or commercial initiative. By clicking on an affiliate link, you accept that third-party cookies will be set. More information. T-shirt, £35, WEEKEND by John Lewis at johnlewis.com Baby steps blue rainbow eyes, £24, motherdenim.com Sliders, £26, havaianas-store.com Tie dye t-shirt, £9.99, bershka.com Hoodie, £125, thepangaia.com Scrunchie, £4, uk.accessorize.com Cardigan, £79, arket.com Printed track pants, £150, essentiel-antwerp.com Organic cotton neon t-shirt, £12, weekday.com Jumpsuit, £89, cosstores.com
2 May 22:45 • the Guardian • https://www.theguardian.com/fashion/gallery/2020/may/02/comfort-dressing-womens-loungewearRating: 5.39
Kirstie Clements: Why I won’t be buying any new clothes this season
In the absence of any runway shows, award galas or red-carpet events, there hasn’t been much new fashion to sigh over in recent times, unless that 30 per cent off all leggings email has you excited. I don’t need any new clothes, and COVID-19 has made us realise that we could in fact wear jogging pants anywhere, for the rest of our lives, but that has not stopped me wanting a long, hot pink, silk evening slip dress worn with a paper-thin mango coloured cashmere bath robe coat and gold sandals. I have been spending significant amounts of time, maybe too much lately, with a cup of tea, browsing all the collections online, and filling up a cart just for fun, (this swimsuit would look darling if I was on going on holidays to Tunisia! ) but I won’t be buying any new clothes this season. I have decided that park walks, and slow-cooked lamb are my priorities for the foreseeable future, and from conversations I have had with many friends and colleagues, they are going to sit it out the season too. The news out there for the fashion industry is grim – a recent report from McKinsey on the drastic impact of the virus mentions a “quarantine of consumption” with predictions of a global revenue contraction in the luxury market, due to consumer pessimism in the area of 30 to 39 per cent in 2020. McKinsey Global Fashion Index analysis found that 56 percent of global fashion companies were not earning their cost of capital in 2018, and there is an expectation that a large number of global fashion companies will go bankrupt in the next 12 to 18 months. The closing of stores and interrupted supply chains have hit brands hard, and surprisingly, even online sales are down, according the report, with a decline of 15 to 25 percent in China, 5 to 20 percent across Europe, and 30 to 40 per cent in the US. Some of us are still shopping though. A trend report from upmarket retailer Moda Operandi helpfully shared that the current must-have of the moment are Persian etched glass tumblers, cashmere tracksuits, a $4000 Bottega Veneta clutch bag and a gold Lurex swimsuit, all good to know, because my latest must-haves are a new bread knife, fluffy slippers and a home manicure kit. But interestingly, Moda found that consumers were “more likely to shop for full-price luxury products when there is a charitable component involved“ and their Shop for a Cause initiative, in which a percentage of net profits from full-price sales were donated to organizations to help in the collective fight against COVID-19, resulted in an increase in daily average full-price sales. It also drew in new customers, “suggesting that full-price shoppers have a propensity to spend their luxury dollars when there is an opportunity to give back.” The fashion world has needed to address the issues of waste and excess for a long time, and hopefully this era of more thoughtful brands and buying less, but better, are trends that will stay.
2 May 21:57 • The New Daily • https://thenewdaily.com.au/entertainment/style/2020/05/02/kirstie-clements-coronavirus-fashion/Rating: 0.78
I Sifted Through 21,000 Sale Items at Revolve to Find You the 24 Best Deals For May
As POPSUGAR editors, we independently select and write about stuff we love and think you'll like too. POPSUGAR has affiliate and advertising partnerships so we get revenue from sharing this content and from your purchase. A post shared by REVOLVE (@revolve) on Apr 16, 2020 at 5:37pm PDT Revolve is our favorite place for fresh releases, but have you seen its huge sale this week? The retailer just dropped brand-new discounted items on the site for May, and we're so impressed with the massive selection. Our favorite brands like For Love & Lemons, BCBGeneration, Lovers + Friends, LPA, Song of Style, and more are offering major discounts. There are currently over 21,000 markdowns online, so we curated a selection of the very best options you should know about. Ahead, you'll find plenty of covetable offerings. Peruse these must haves and treat yourself to something new. LPA Sophia Sweater ($48, originally $150) 1. STATE Tie Front Striped Dress ($73, originally $129) AGOLDE Ren High Rise Wide-Leg Jeans ($116, originally $178) Tularosa Della Dress in Magnolia Floral ($108, originally $268) LPA Gaston Jumpsuit ($87, originally $248) Song of Style Audra Midi Dress ($175, originally $218) Tularosa Lucy Top ($64, originally $158) For Love & Lemons Madonna Faux Wrap Mini Dress ($208, originally $260) LPA Clara Hoodie in Cream ($78, originally $165) LEVI'S 501 Crop Jeans ($64, originally $98) LPA Carmen Dress ($92, originally $198) LPA Cilantro Cardigan ($59, originally $158) Lovers + Friends Orchid Dress in Sunset Floral ($151, originally $188) LPA Francis Top ($68, originally $168) Michael Costello x REVOLVE Andrea Dress ($156, originally $278) BB Dakota Feelin' Lashy Sweater ($36, originally $88) NBD Zarra Mini Dress in 90s Rose ($99, originally $228) Lovers + Friends Minka Top ($64, originally $158) AGOLDE Toni Mid Rise Skinny Jeans ($111, originally $158) Line & Dot Peyton Tie Back Jumpsuit ($69, originally $139) Line & Dot Ray Midi Dress in Lemon ($58, originally $136) ASTR the Label Sheresa Sweater ($48, originally $98) Cleobella Melody Jumpsuit in Citron ($29, originally $138) House of Harlow 1960 x REVOLVE Jurie Pants ($104, originally $188) A post shared by REVOLVE (@revolve) on Apr 16, 2020 at 5:37pm PDT
2 May 16:01 • POPSUGAR Fashion • https://www.popsugar.com/fashion/revolve-sale-may-47437066Rating: 1.91
H&M Sale: Up to 50% Off Spring Styles -- Dresses, Jeans and More
H&M is having a sale you don't want to miss! The affordable fashion brand is taking up to 50% off its trendy clothing and accessories with prices starting at $7.99 for the spring fling sale. Whether you're looking to add new warm-weather pieces to wear for later or comfy loungewear to rock at home now, H&M has an expansive lineup across every fashion category. Plus, there's a great range of basics to stock up on from skinny jeans and tees to sweatshirts. No promo code is needed and prices are already marked. Standard shipping is free on orders over $40. Ahead, check out ET Style's top picks from the H&M sale. Skinny Regular Ankle JeansH&M H&MSkinny Regular Ankle JeansH&M Classic skinny jeans for under $8? Yes, please! REGULARLY $9.99$7.99 at H&M Linen-Blend JumpsuitH&M H&MLinen-Blend JumpsuitH&M A breezy, woven linen utility-style jumpsuit to throw on whenever. REGULARLY $59.99$32.99 at H&M Selena Gomez Printed HoodieH&M H&MSelena Gomez Printed HoodieH&M Are you a Selena Gomez fan? Show your love for the star in this comfy printed hoodie. REGULARLY $24.99$11.99 at H&M Crêped Wrap-front DressH&M+ H&MCrêped Wrap-front DressH&M+ A sophisticated wrap dress to wear from day to night. REGULARLY $34.99$17.99 at H&M Shoulder BagH&M H&MShoulder BagH&M An elegant, versatile crossbody bag with chain strap. REGULARLY $24.99$16.99 at H&M Ankle BootsH&M H&MAnkle BootsH&M Edgy ankle boots featuring buckle details. REGULARLY $34.99$17.99 at H&M Each product has been selected and reviewed by our editorial team; however, we may receive affiliate commissions from some links to the products on this page. Prices listed are subject to change by the retailer. Promotions in this article are subject to availability, expiration and other terms as determined by partner.
2 May 00:16 • Entertainment Tonight • https://www.etonline.com/hm-sale-up-to-50-off-spring-styles-dresses-jeans-and-more-145845Rating: 0.71
Six-yard factor
Will the smaller weddings of the immediate future see the six-yard drape take a back seat? Ahalya S, founder of Chennai-based kanjeevaram sari boutique Kanakavalli, thinks not. “Whether the gathering is big or small, weddings will need to be Instagram-worthy. So the bride’s outfit will still carry a lot of importance,” she says. While she doesn’t anticipate a big change in spending patterns, she admits that at the moment, people are only ‘window shopping’. “I’ve seen a rise in the number of people browsing our website, but no purchases.” Meanwhile, large-format retailers — which are currently shut, and where social distancing norms may reduce footfalls — are rethinking their strategies. Purists may turn up their nose at buying a kanjeevaram sari online, but Chennai heavyweights like RMKV and Nalli have upped their e-commerce game. (We reached out to the brands, but are yet to receive a response.) The former has a bridal capsule collection launched five months ago and the latter is inviting people to shop via Instagram. With options for international shipping and returns, orders are open but deliveries will begin depending on government directives.
2 May 05:37 • The Hindu • https://www.thehindu.com/life-and-style/six-yard-factor/article31486750.eceRating: 0.30
The hotlist: what we want to see, do and buy online this weekend
Weddings might be off the cards at present but engagements certainly are not, with quarantine proposals on the rise. Brides-to-be have time to consider some of the finer details, such as what jewellery they'd like to don on their big day. Next Level Bridal from Irish jewellery studio One Dame Lane is a collection of handmade cascading earrings and statement pieces, which designer Lyndsey Cavanagh describes as being polished, mod and cool, and for the bride who wants to do things differently. Prices start from €75 for a single coin pearl on fine cable gold-fill chain. BUY: See onedamelane.com Word up Sometimes a video call just doesn't cut it, and this is where the joy of receiving written communication in the post comes in. Joy Redmond of quirky greeting-card range Trustwordie says she had mixed feelings about producing greeting cards for the times we're living in. But she received so many requests from friends and customers that she decided to give it a go and hopes that they bring a little joy during a difficult time. There are six cards in total, including a 'School's Out Colour In' postcard for children to colour in and send to the pals they're missing and 'Virtual Birthday and Celebrate Later' cards to let people know that their big occasions won't be forgotten. BUY: From €2.50; see trustword.ie Stay strong A new online gallery at the National Museum of Ireland aims to provide hope and inspiration during the pandemic. 'Reflections on Resilience' displays a wide range of objects from the museum's collection that demonstrate our collective fortitude, such as birds like the falcon, which survived near-extinction, and a knitted 'Repeal' banner. The museum is also inviting people to post photos on Twitter of items in their lives and homes that they consider to be a symbol of resilience, using the hashtag #ReflectionsonResilience. DETAILS: See museum.ie Art for all Cork's Crawford Art Gallery has a rich line-up of content and events to bring the gallery experience into people's homes. As well as exhibitions and a Work of the Week feature, the Learn and Explore programme (above) includes activities such as a step-by-step timelapse video of figure drawing. DETAILS: See crawfordartgallery.ie Tune in A new on-demand section is now available on RadioMoLI, the Museum of Literature Ireland's digital radio station. Listeners can access podcasts and readings, interviews and lectures with authors like Anne Enright, Marian Keyes (below) and Roddy Doyle, as well as literary academics and poetry readings, via the museum's website, with new content added every week. DETAILS: See moli.ie/radio Short stuff Fishamble theatre company is inviting all people of every age and from all around to world to express themselves through drama and write their own 600 word Tiny Play in response to the prompt 'Change'. The closing date is Friday, May 8 and Fishamble will publish a selection of the plays on its website, with the chosen writers receiving a prize of Fishamble playscripts. DETAILS: fishamble.com The green buy Are stress and being indoors giving you 'isolation skin'? Carlow company Jo Browne has an all-natural skincare treat in the form of its Facial Cleansing Balm containing organic camellia oil, which has been shown to reduce inflammation and stimulate collagen production. Handmade with fragrant essential oils, it comes in an eco-friendly bamboo container with a bamboo face cloth. BUY: €34, jobrowne.com Brighter days Over 250,000 people were expected to do Darkness Into Light on May 9, the annual walk to highlight the struggle against suicide and self-harm, and a major source of funding for Pieta House. Instead, Electric Ireland and Pieta have launched the 'Sunrise' appeal, asking people to donate to the charity and rise at 5.30am next Saturday to watch the sunrise together, but apart, and show solidarity for those affected by suicide. DETAILS: See darknessintolight.ie High note Opera lovers now have the opportunity to see the first-ever professional performance in English of The Veiled Prophet by Dublin-born composer Charles Villiers Standford. Presented last year at Wexford Opera Festival and available on the RTÉ Player, it's performed by a largely Irish cast including soprano Sinéad Campbell-Wallace and tenor Gavan Ring. DETAILS: See rte.ie/player and wexfordopera.com Baking battles It feels like you're not in the isolation game properly unless you have a sourdough starter on the go Meghan and Harry's tell-all book Of all the things to potentially look forward to in August, the publication of a Sussex biography is not one of them Sopping sleeves The annoying and ever-present by-product of so much hand-washing Mrs Hinch clothing range There are talks of the Instagram star launching her own fashion line but we'd rather she stuck to sharing her top cleaning tips Girls Aloud 20th anniversary reunion tour talks Some things are best left in the past... Mules The high-fashion and infinitely more glamorous alternative to house slippers. Make ours a pair of these Bottega Venetas Stanley Tucci's cocktails From Negronis to Quarantinis, The Devil Wears Prada actor is the new mixology god Backyard bird watching Spring and being housebound makes it an excellent time to start becoming a twitcher Yoga in the bath tub We're intrigued that this is what Bianca Jagger is doing in quarantine, even if we're not sure of the logistics Cameron Diaz's big screen return The actress is not ruling out coming out of retirement, and this can only be a good thing
2 May 02:30 • independent • https://www.independent.ie/weekend-magazine/the-hotlist-what-we-want-to-see-do-and-buy-online-this-weekend-39166790.htmlRating: 1.21
Make giants share revenue
3 May 06:10
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Make giants share revenue
Publishers that represent a majority of Canadian newspapers have penned an open letter to the federal government urging immediate action to make digital giants like Facebook and Google share their advertising revenues with Canadian media companies. The letter, which appeared in an ad published in newspapers across the country Saturday, says the situation is urgent, with media companies suffering huge declines in advertising revenue because of the COVID-19 pandemic. The publishers point to action taken recently in Australia, where the country's treasurer has announced mandatory measures to force digital companies like Facebook, Google and Twitter to pay news media for use of their content. The measures were to be completed by November, but are now being fast-tracked due to steep declines in advertising dollars caused by COVID-19 — declines that have forced many newspapers to stop printing. Bob Cox, publisher of the Winnipeg Free Press and one of the signatories of the letter, says newspaper ad revenues in Canada have fallen by at least 50 per cent, which has made the newspaper industry unviable. "Newspapers are fighting for their very survival right now," he said. The wage subsidy that forms part of the Liberals' multi-billion dollar pandemic emergency aid package will help, Cox said, calling the program a "life-saver." The Liberal government is also rolling out a $30-million COVID-19 awareness advertising campaign, which was also billed as support for the media industry, but Cox noted these measures are short-term fixes. "We expect that the impact of COVID-19 and the decrease in advertising will continue for some time, at least through 2020 and probably into 2021, so we're going to be facing this decrease in advertising for a long time," he said. "We need to look at the bigger picture, at the longer-term problems, and this is one of those longer-term problems." Heritage Minister Steven Guilbeault said last month the government is moving closer to implementing long-promised tax credits for newspapers to address ongoing revenue challenges in the sector. The most significant of these measures is a tax credit that will allow qualified newspapers to claim up to 25 per cent of the wages or salaries they pay to their journalists or other eligible employees. The credit, which is not available to broadcasters, will be retroactive to salaries that were paid starting on Jan. 1, 2019. A panel tasked with assessing whether media organizations qualify for these tax measures will begin informing the first news organizations of their qualification for this program this spring, with payments coming in the summer, said Guilbeault's press secretary Camille Gagne-Raynauld. "Additionally, we are accelerating the processing of applications to our Aid to Publishers program, and expect funds to flow to successful recipients in June," she added, referencing a program aimed at helping print magazines and non-daily newspapers. As for the actions taken by Australia and France to set deadlines of July for digital giants to start paying for copyrighted media content, Gagne-Raynauld said the federal government is "closely following what is being done abroad with regards to media support," but did not elaborate further.
3 May 06:10 • Castanet • https://www.castanet.net/news/Business/298964/Publishers-want-Facebook-Google-to-share-ad-revenuesRating: 1.34
Publishers want Facebook, Google to share ad revenues amid COVID-19 declines
OTTAWA -- Publishers that represent a majority of Canadian newspapers have penned an open letter to the federal government urging immediate action to make digital giants like Facebook and Google share their advertising revenues with Canadian media companies. The letter, which appeared in an ad published in newspapers across the country Saturday, says the situation is urgent, with media companies suffering huge declines in advertising revenue because of the COVID-19 pandemic. The publishers point to action taken recently in Australia, where the country's treasurer has announced mandatory measures to force digital companies like Facebook, Google and Twitter to pay news media for use of their content. The measures were to be completed by November, but are now being fast-tracked due to steep declines in advertising dollars caused by COVID-19 -- declines that have forced many newspapers to stop printing. Bob Cox, publisher of the Winnipeg Free Press and one of the signatories of the letter, says newspaper ad revenues in Canada have fallen by at least 50 per cent, which has made the newspaper industry unviable. "Newspapers are fighting for their very survival right now," he said. The wage subsidy that forms part of the Liberals' multi-billion dollar pandemic emergency aid package will help, Cox said, calling the program a "life-saver." The Liberal government is also rolling out a $30-million COVID-19 awareness advertising campaign, which was also billed as support for the media industry, but Cox noted these measures are short-term fixes. "We expect that the impact of COVID-19 and the decrease in advertising will continue for some time, at least through 2020 and probably into 2021, so we're going to be facing this decrease in advertising for a long time," he said. "We need to look at the bigger picture, at the longer-term problems, and this is one of those longer-term problems." Heritage Minister Steven Guilbeault said last month the government is moving closer to implementing long-promised tax credits for newspapers to address ongoing revenue challenges in the sector. The most significant of these measures is a tax credit that will allow qualified newspapers to claim up to 25 per cent of the wages or salaries they pay to their journalists or other eligible employees. The credit, which is not available to broadcasters, will be retroactive to salaries that were paid starting on Jan. 1, 2019. A panel tasked with assessing whether media organizations qualify for these tax measures will begin informing the first news organizations of their qualification for this program this spring, with payments coming in the summer, said Guilbeault's press secretary Camille Gagne-Raynauld. "Additionally, we are accelerating the processing of applications to our Aid to Publishers program, and expect funds to flow to successful recipients in June," she added, referencing a program aimed at helping print magazines and non-daily newspapers. As for the actions taken by Australia and France to set deadlines of July for digital giants to start paying for copyrighted media content, Gagne-Raynauld said the federal government is "closely following what is being done abroad with regards to media support," but did not elaborate further. Cox says he understands the federal government has been busy rolling out billions of dollars in aid for Canadian workers and employers hit by the pandemic while also dealing with a public health emergency. But implementing measures to make digital giants share the ad revenue they make from content created by Canadian journalists, which they have been featuring on their platforms, would level the playing field for the media industry in Canada, Cox said. It would also go a long way to help the media industry weather the long-term impacts the pandemic and resulting economic downturn is having and will continue to have on news companies. "Newspapers and news media in general have been very, very valuable during the COVID-19 pandemic, they have informed the public, they've fulfilled their role, the public has trusted them to deliver information about this very important issue to them," Cox said. "We feel it's time to establish a solider business model for them going forward. We want to be around for the next time we're needed." Facebook, Google and Twitter did not immediately respond for comment. Facebook announced in March it was spending US$100 million to support the news industry during the COVID-19 crisis, and Google also has a Google News Initiative, with an aim to "work with the news industry to help journalism thrive in the digital age." Torstar holds an investment in The Canadian Press as part of a joint agreement with subsidiaries of the Globe and Mail and Montreal's La Presse.
2 May 22:05 • BNN • https://www.bnnbloomberg.ca/publishers-want-facebook-google-to-share-ad-revenues-amid-covid-19-declines-1.1430416Rating: 1.34
Publishers want Facebook, Google to share ad revenues amid COVID-19 declines
OTTAWA — Publishers that represent a majority of Canadian newspapers have penned an open letter to the federal government urging immediate action to make digital giants like Facebook and Google share their advertising revenues with Canadian media companies. The letter, which appeared in an ad published in newspapers across the country Saturday, says the situation is urgent, with media companies suffering huge declines in advertising revenue because of the COVID-19 pandemic. The publishers point to action taken recently in Australia, where the country's treasurer has announced mandatory measures to force digital companies like Facebook, Google and Twitter to pay news media for use of their content. The measures were to be completed by November, but are now being fast-tracked due to steep declines in advertising dollars caused by COVID-19 — declines that have forced many newspapers to stop printing. Bob Cox, publisher of the Winnipeg Free Press and one of the signatories of the letter, says newspaper ad revenues in Canada have fallen by at least 50 per cent, which has made the newspaper industry unviable. "Newspapers are fighting for their very survival right now," he said. The wage subsidy that forms part of the Liberals' multi-billion dollar pandemic emergency aid package will help, Cox said, calling the program a "life-saver." The Liberal government is also rolling out a $30-million COVID-19 awareness advertising campaign, which was also billed as support for the media industry, but Cox noted these measures are short-term fixes. "We expect that the impact of COVID-19 and the decrease in advertising will continue for some time, at least through 2020 and probably into 2021, so we're going to be facing this decrease in advertising for a long time," he said. "We need to look at the bigger picture, at the longer-term problems, and this is one of those longer-term problems." Heritage Minister Steven Guilbeault said last month the government is moving closer to implementing long-promised tax credits for newspapers to address ongoing revenue challenges in the sector. The most significant of these measures is a tax credit that will allow qualified newspapers to claim up to 25 per cent of the wages or salaries they pay to their journalists or other eligible employees. The credit, which is not available to broadcasters, will be retroactive to salaries that were paid starting on Jan. 1, 2019. A panel tasked with assessing whether media organizations qualify for these tax measures will begin informing the first news organizations of their qualification for this program this spring, with payments coming in the summer, said Guilbeault's press secretary Camille Gagne-Raynauld. "Additionally, we are accelerating the processing of applications to our Aid to Publishers program, and expect funds to flow to successful recipients in June," she added, referencing a program aimed at helping print magazines and non-daily newspapers. As for the actions taken by Australia and France to set deadlines of July for digital giants to start paying for copyrighted media content, Gagne-Raynauld said the federal government is "closely following what is being done abroad with regards to media support," but did not elaborate further. Cox says he understands the federal government has been busy rolling out billions of dollars in aid for Canadian workers and employers hit by the pandemic while also dealing with a public health emergency. But implementing measures to make digital giants share the ad revenue they make from content created by Canadian journalists, which they have been featuring on their platforms, would level the playing field for the media industry in Canada, Cox said. It would also go a long way to help the media industry weather the long-term impacts the pandemic and resulting economic downturn is having and will continue to have on news companies. "Newspapers and news media in general have been very, very valuable during the COVID-19 pandemic, they have informed the public, they've fulfilled their role, the public has trusted them to deliver information about this very important issue to them," Cox said. "We feel it's time to establish a solider business model for them going forward. We want to be around for the next time we're needed." Facebook, Google and Twitter did not immediately respond for comment. Facebook announced in March it was spending US$100 million to support the news industry during the COVID-19 crisis, and Google also has a Google News Initiative, with an aim to "work with the news industry to help journalism thrive in the digital age." This report by The Canadian Press was first published May 2, 2020. ——— Torstar holds an investment in The Canadian Press as part of a joint agreement with subsidiaries of the Globe and Mail and Montreal's La Presse. Teresa Wright, The Canadian Press
2 May 21:57 • KitchenerToday.com • https://www.kitchenertoday.com/national-news/publishers-want-facebook-google-to-share-ad-revenues-amid-covid-19-declines-2319980Rating: 0.30
Publishers want Facebook, Google to share ad revenues amid COVID-19 declines
OTTAWA - Publishers that represent a majority of Canadian newspapers have penned an open letter to the federal government urging immediate action to make digital giants like Facebook and Google share their advertising revenues with Canadian media companies. The letter, which appeared in an ad published in newspapers across the country Saturday, says the situation is urgent, with media companies suffering huge declines in advertising revenue because of the COVID-19 pandemic. The publishers point to action taken recently in Australia, where the country's treasurer has announced mandatory measures to force digital companies like Facebook, Google and Twitter to pay news media for use of their content. The measures were to be completed by November, but are now being fast-tracked due to steep declines in advertising dollars caused by COVID-19 — declines that have forced many newspapers to stop printing. Bob Cox, publisher of the Winnipeg Free Press and one of the signatories of the letter, says newspaper ad revenues in Canada have fallen by at least 50 per cent, which has made the newspaper industry unviable. "Newspapers are fighting for their very survival right now," he said. The wage subsidy that forms part of the Liberals' multi-billion dollar pandemic emergency aid package will help, Cox said, calling the program a "life-saver." The Liberal government is also rolling out a $30-million COVID-19 awareness advertising campaign, which was also billed as support for the media industry, but Cox noted these measures are short-term fixes. "We expect that the impact of COVID-19 and the decrease in advertising will continue for some time, at least through 2020 and probably into 2021, so we're going to be facing this decrease in advertising for a long time," he said. "We need to look at the bigger picture, at the longer-term problems, and this is one of those longer-term problems." Heritage Minister Steven Guilbeault said last month the government is moving closer to implementing long-promised tax credits for newspapers to address ongoing revenue challenges in the sector. The most significant of these measures is a tax credit that will allow qualified newspapers to claim up to 25 per cent of the wages or salaries they pay to their journalists or other eligible employees. The credit, which is not available to broadcasters, will be retroactive to salaries that were paid starting on Jan. 1, 2019. A panel tasked with assessing whether media organizations qualify for these tax measures will begin informing the first news organizations of their qualification for this program this spring, with payments coming in the summer, said Guilbeault's press secretary Camille Gagne-Raynauld. "Additionally, we are accelerating the processing of applications to our Aid to Publishers program, and expect funds to flow to successful recipients in June," she added, referencing a program aimed at helping print magazines and non-daily newspapers. As for the actions taken by Australia and France to set deadlines of July for digital giants to start paying for copyrighted media content, Gagne-Raynauld said the federal government is "closely following what is being done abroad with regards to media support," but did not elaborate further. Cox says he understands the federal government has been busy rolling out billions of dollars in aid for Canadian workers and employers hit by the pandemic while also dealing with a public health emergency. But implementing measures to make digital giants share the ad revenue they make from content created by Canadian journalists, which they have been featuring on their platforms, would level the playing field for the media industry in Canada, Cox said. It would also go a long way to help the media industry weather the long-term impacts the pandemic and resulting economic downturn is having and will continue to have on news companies. "Newspapers and news media in general have been very, very valuable during the COVID-19 pandemic, they have informed the public, they've fulfilled their role, the public has trusted them to deliver information about this very important issue to them," Cox said. "We feel it's time to establish a solider business model for them going forward. We want to be around for the next time we're needed." Facebook, Google and Twitter did not immediately respond for comment. Facebook announced in March it was spending US$100 million to support the news industry during the COVID-19 crisis, and Google also has a Google News Initiative, with an aim to "work with the news industry to help journalism thrive in the digital age." This report by The Canadian Press was first published May 2, 2020. ——— Torstar holds an investment in The Canadian Press as part of a joint agreement with subsidiaries of the Globe and Mail and Montreal's La Presse.
2 May 21:57 • iNFOnews.ca • https://infotel.ca/newsitem/covid-newspapers/cp1037254413Rating: 0.30
Publishers want Facebook, Google to share ad revenues amid COVID-19 declines
OTTAWA — Publishers that represent a majority of Canadian newspapers have penned an open letter to the federal government urging immediate action to make digital giants like Facebook and Google share their advertising revenues with Canadian media companies. The letter, which appeared in an ad published in newspapers across the country today, says the situation is urgent, with media companies suffering huge declines in advertising revenue because of the COVID-19 pandemic. The publishers point to action taken recently in Australia where the country’s treasurer has announced mandatory measures to force digital companies like Facebook, Google and Twitter to pay news media for use of their content. The measures were to be completed by November, but are now being fast-tracked due to steep declines in advertising dollars caused by COVID-19 — declines that have forced many newspapers to stop printing. Bob Cox, publisher of the Winnipeg Free Press and one of the signatories of the letter, says newspaper ad revenues in Canada have fallen by at least 50 per cent, which has made the newspaper industry unviable. He says the wage subsidy that forms part of the Liberals’ multi-billion dollar pandemic emergency aid package will help, but he says Canada can and should follow Australia’s example and create a level playing field for the media industry by making digital giants share the ad revenue they make from content created by Canadian journalists shared on their platforms. This report by The Canadian Press was first published May 2, 2020. The Canadian Press
2 May 20:35 • 680News • https://www.680news.com/2020/05/02/publishers-want-facebook-google-to-share-ad-revenues-amid-covid-19-declines/Rating: 0.61
Publishers want Facebook, Google to share ad revenues amid COVID-19 declines
OTTAWA — Publishers that represent a majority of Canadian newspapers have penned an open letter to the federal government urging immediate action to make digital giants like Facebook and Google share their advertising revenues with Canadian media companies. The letter, which appeared in an ad published in newspapers across the country today, says the situation is urgent, with media companies suffering huge declines in advertising revenue because of the COVID-19 pandemic. The publishers point to action taken recently in Australia where the country’s treasurer has announced mandatory measures to force digital companies like Facebook, Google and Twitter to pay news media for use of their content. The measures were to be completed by November, but are now being fast-tracked due to steep declines in advertising dollars caused by COVID-19 — declines that have forced many newspapers to stop printing. Bob Cox, publisher of the Winnipeg Free Press and one of the signatories of the letter, says newspaper ad revenues in Canada have fallen by at least 50 per cent, which has made the newspaper industry unviable. He says the wage subsidy that forms part of the Liberals’ multi-billion dollar pandemic emergency aid package will help, but he says Canada can and should follow Australia’s example and create a level playing field for the media industry by making digital giants share the ad revenue they make from content created by Canadian journalists shared on their platforms. This report by The Canadian Press was first published May 2, 2020. The Canadian Press
2 May 09:35 • City NEWS 1130 • https://www.citynews1130.com/2020/05/02/publishers-want-facebook-google-to-share-ad-revenues-amid-covid-19-declines/Rating: 0.77
Tesla applies to become UK electricity provider
3 May 10:01
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Tesla applies to become UK electricity provider
US electric carmaker Tesla Inc has applied for a licence to supply electricity in the United Kingdom, The Telegraph reported on Saturday. The purpose of the licence from the energy regulator may be to introduce the company’s Autobidder platform, the report said, citing a company source. The application did not make clear why Tesla has applied for the licence, The Telegraph reported. Autobidder is a platform for automated energy trading and is currently being operated at Tesla’s Hornsdale Power Reserve in South Australia. Having built a significant battery business in recent years, the carmaker is now preparing to enter the British market with its technology, the paper said, citing industry sources. The company did not immediately respond to a request for a comment. In 2017, the carmaker built world’s largest lithium ion battery to help keep the lights on in South Australia. Shares of Tesla fell 9% on Friday after Chief Executive Officer Elon Musk tweeted that the electric carmaker’s high-flying stock was overly expensive. “Tesla stock price is too high,” Musk said on Twitter.
3 May 10:01 • The Express Tribune • https://tribune.com.pk/story/2213123/8-tesla-applies-become-uk-electricity-provider/Rating: 1.80
Tesla applies to become UK electricity provider: The Telegraph
(Reuters) - U.S. electric carmaker Tesla Inc has applied for a licence to supply electricity in the United Kingdom, The Telegraph reported on Saturday. The purpose of the licence from the energy regulator may be to introduce the company’s Autobidder platform, the report said, citing a company source. The application did not make clear why Tesla has applied for the licence, The Telegraph reported. Autobidder is a platform for automated energy trading and is currently being operated at Tesla’s Hornsdale Power Reserve in South Australia. Having built a significant battery business in recent years, the carmaker is now preparing to enter the British market with its technology, the paper said, citing industry sources. The company did not immediately respond to a request for a comment. In 2017, the carmaker built world’s largest lithium ion battery to help keep the lights on in South Australia. Shares of Tesla fell 9% on Friday after Chief Executive Officer Elon Musk tweeted that the electric carmaker’s high-flying stock was overly expensive. “Tesla stock price is too high,” Musk said on Twitter.
2 May 20:56 • Reuters • https://www.reuters.com/article/us-tesla-licence-idUSKBN22E0SLRating: 4.04
Tesla applies to become UK electricity provider - The Telegraph
U.S. electric carmaker Tesla Inc has applied for a license to supply electricity in the United Kingdom, The Telegraph reported on Saturday. The purpose of the license from the energy regulator may be to introduce the company’s Autobidder platform, the report said, citing a company source. The application did not make clear why Tesla has applied for the license, The Telegraph reported. Autobidder is a platform for automated energy trading and is currently being operated at Tesla’s Hornsdale Power Reserve in South Australia. Having built a significant battery business in recent years, the carmaker is now preparing to enter the British market with its technology, the paper said, citing industry sources. The company did not immediately respond to a request for a comment. In 2017, the carmaker built world’s largest lithium ion battery to help keep the lights on in South Australia. Shares of Tesla fell 9% on Friday after Chief Executive Officer Elon Musk tweeted that the electric carmaker’s high-flying stock was overly expensive. “Tesla stock price is too high,” Musk said on Twitter. (Reporting by Aishwarya Nair in Bengaluru; Editing by David Clarke and Cynthia Osterman)
2 May 20:55 • Financial Post • https://business.financialpost.com/pmn/business-pmn/tesla-applies-to-become-uk-electricity-provider-the-telegraph-2Rating: 0.94
Kickstarter may cut up to 45 percent of its workforce
2 May 20:16
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Kickstarter may cut up to 45 percent of its workforce
Kickstarter has discussed layoffs as the COVID-19 pandemic ravages its crowdfunding business, and it now looks like those job cuts may be particularly severe. In a message to Gizmodo, the company has confirmed plans to cut a large portion of its workforce after the OPEIU (the union representing Kickstarter employees) said it had ratified a layoff agreement on May 1st. The union said layoffs could affect up to 45 percent of the workforce, according to a notice sent to Engadget, although Kickstarter disputes that number when it doesn’t factor in voluntary buyouts. The terms could ensure a relatively soft landing for those who leave. The arrangement provides four months of severance pay and either six (for those earning $110,001 or less) or four (for those above $110,001) months of healthcare coverage. They’ll be free to work for competitors the moment they accept severance, and they’ll have “recall rights” to return to Kickstarter if a job similar to theirs opens up within the next year. As with other tech industry layoffs during the pandemic, this comes down to a matter of basic survival. It’s not clear when it’ll be safe for crowdfunding projects that depend on human-to-human interaction, and cuts like this may help Kickstarter endure that period of uncertainty.
2 May 20:16 • Engadget • https://www.engadget.com/kickstarter-to-cut-up-to-45-percent-of-staff-201621602.htmlRating: 2.92
How Kickstarter's New Union Negotiated Terms For Pandemic-Related Layoffs
"The COVID crisis has led to a 35% drop in live projects" says Kickstarter communications officer David Gallagher -- who points out that fees on those projects are the company's sole source of income. This led Kickstarter's CEO to announce "sweeping layoffs of up to 45 percent of employees," the union of Kickstarter employees tells Gizmodo. (Though Gallagher says the final numbers will first include some voluntary buyouts, followed by a re-assessment to "better understand the scale of any layoffs that may be required.")But Kickstarter is also the first major tech company to unionize. So what happened next? An anonymous reader shares this report from the two-months-old Kickstarter United (KSRU) union: The bargaining unit was faced with the prospect of involuntary layoffs with two to three weeks of severance per year of employment in the midst of a global pandemic... After two weeks of bargaining, we negotiated a severance package that we are incredibly proud of, which has been unanimously ratified by KSRU. The package prioritizes extended severance payments and health insurance coverage, and we were inspired to see dozens of our highest-paid colleagues volunteer to take layoffs in order to save jobs and increase payouts for lower-paid bargaining unit members. We also negotiated additional terms that are previously unheard-of in tech severance agreements, fulfilling another of our longstanding goals: moving our industry forward and demonstrating the necessity of organizing in tech.The terms we won for our 86-member bargaining unit include:- Four months of severance pay for all laid-off employees, both voluntary and involuntary.- Continuing healthcare coverage increased by salary: four months for our higher-paid colleagues, and six months for those who make less than the bargaining unit's median salary.- Recall rights for a full year, so that if an eliminated position becomes open again in the future, qualified laid-off workers will have priority consideration in filling it.- A release from the non-compete and a modification of the non-solicitation clauses included in our original hiring agreements — an allowance unprecedented in tech that will enable our members to pursue new avenues of employment unfettered...This experience has shown us how crucial it is for tech workers to unite, to leverage our collective strength, and to focus on lifting each other up and protecting one another. Kickstarter United is committed to standing alongside workers everywhere, helping to bring our collective visions for a fairer, more just world to life.
3 May 03:34 • it.slashdot.org • https://it.slashdot.org/story/20/05/03/0149201/how-kickstarters-new-union-negotiated-terms-for-pandemic-related-layoffsRating: 1.79
Kickstarter union reaches an agreement with the management to support laid-off workers
The Kickstarter union has reached an agreement with the management to support laid-off employees after the company fired over 45% of the staff due to the ongoing coronavirus pandemic. In an internal memo, Kickstarter CEO Aziz Hasan noted that the company has seen a 35% drop in new projects with “no clear sign of rebound.” Kickstarter union represents 60% of the company’s 140 employees and was working with the management to reach an agreement to support the laid-off workers. According to a press release sent out earlier today, the laid-off employees will get the following benefits: OPEIU President and Local 153 Business Manager Richard Lanigan noted that the agreement was "negotiated under difficult circumstances" and "is a testament to the power and protections of a union" Richard Lanigan further said: Kickstarter was the first tech company in US history to unionize after a successful vote in February. Kickstarter employees are represented by the Office and Professional Employees International Union (OPEIU).
2 May 19:54 • Neowin • https://www.neowin.net/news/kickstarter-union-reaches-an-agreement-with-the-management-to-support-laid-off-workers/Rating: 1.20
Kickstarter union reaches agreement with management for laid-off workers
The union for Kickstarter employees reached an agreement with management on Friday which provides protections for laid-off workers, the union said in a press release. The crowdfunding company announced in an internal memo April 20th it would likely seek layoffs, along with other cost-cutting measures. CEO Aziz Hasan wrote in the memo that Kickstarter had seen a 35 percent drop in new crowdfunding projects on the site in the past several weeks, with “no clear sign of rebound.” Kickstarter United, the union that represents 60 percent of the company’s 140 employees, said the agreement includes four months of severance pay for all laid-off employees, a release from any non-compete agreements for anyone who accepts severance, and recall rights for one year. The company will continue healthcare coverage for any laid-off employees for up to six months, depending on salary. Kickstarter spokesperson David Gallagher said in an email to The Verge on Saturday that the company was offering voluntary buyouts to union members, which includes the ability to opt out of health insurance coverage and receive partial payment instead. “We need to put Kickstarter in a stronger position to ride out this uncertainty so it can continue to support its mission, which is to help bring creative projects to life,” Gallagher said. He added that non-union employees were receiving a similar offer. Once the company knows who is interested in a buyout it will be able to determine how many layoffs may be required, Gallagher said. Kickstarter workers successfully voted to unionize in February. They’re represented by the Office and Professional Employees International Union (OPEIU). Hasan said in the April 20th memo that Kickstarter brought in $1.27 million in after-tax profit last year, which has been reinvested back into the business. He mentioned other cost-cutting measures besides layoffs, including a reduction in senior management salaries and not hiring for some vacant positions. “While we are disappointed with the layoffs announced by Kickstarter management, we are proud to stand shoulder-to-shoulder with our entire union family in this multifaceted fight for our families’ futures, and thankful for Kickstarter management’s willingness to negotiate a fair deal for their impacted employees,” OPEIU President and Local 153 Business Manager Richard Lanigan said in a statement. The union said layoffs may include up to 45 percent of Kickstarter employees, but Gallagher said the company “hasn’t made any statements about the potential scale of the layoffs.” UPDATE May 2nd 10:45AM ET: Added comment from Kickstarter and statement from OPEIU representative.
2 May 13:38 • The Verge • https://www.theverge.com/2020/5/2/21245092/kickstarter-union-agreement-laid-off-workersRating: 3.34
Coronavirus impact: Wipro starts benching employees as business takes a hit
Wipro Ltd has started benching employees in its Pune campus at the back of COVID-19 pandemic. These employees include those working in the travel and hospitality vertical of Wipro’s BPO arm. Following this, the Maharashtra-based IT union, National Information Technology Employees Senate (NITES) has written to the Pune labour commissioner. In the letter, NITES said, “On behalf of NITES, Maharashtra we would like to bring to your notice that we have received complaints from employees of Wipro BPO Pune Phase 2 Hinjewadi regarding putting employees on bench to maintain profitability of business under COVID-19 pandemic.” “The company has also notified the employees on April 23, 2020 that they are on bench with immediate effect. Because of this, pay and jobs of more than 300 employees are at risk,” the letter added. According to the letter, the move is a strict violation of Maharashtra government’s rule that employees should not be impacted because of COVID-19. Moneycontrol has seen the copy of the letter sent to the labour commissioner. Most of the IT/ITeS firms during their FY20 Q4 results commented that they expect June quarter to take the worst hit and suspended guidance due to lack of growth visibility. Firms also hinted they expect pricing pressures, project deferrals and demand drops due to the virus outbreak. In a bit to cut costs, the companies have put a freeze on hiring and suspended promotions and wage hikes. In an email response to Moneycontrol, Wipro said, “The speculation related to the workforce is unfounded and has no basis. Wipro categorically denies these malicious rumors. Wipro reiterates that there are no retrenchment plans. Also, we request you not to misrepresent or misinterpret intra-company surveys that are undertaken from time to time on various topics. The company has well defined policies and people practices in place to take care of its employees.” At the same time, a senior employee, who spoke to Moneycontrol and was benched recently, said that he and his colleagues have been put on bench late April. They continue to receive their salaries. What they fear, the senior employee said, is what is likely to follow if they are unable to find projects. "Once employees are on bench, they are given certain period of time to find projects. Unlike other times, number of projects are limited due to the virus outbreak and hence more challenging. It is unclear if they would be laid off in cases if they are not redeployed," said the employee Wipro during its results announcement said that it expects pressure on margins. Jatin Dalal, CFO, Wipro said that this is worse than the 2008 global financial crisis due to its unpredictability. It also suspended revenue guidance due to lack of clarity and deferred promotions and wage hikes. According to a CNBC-TV18 report after the company’s Q4 results, the company is considering all options including sending staffs on furloughs and leaves as the company prepares for revenue hits due to the virus outbreak. Saurabh Govil, Chief Human Resources Officer, Wipro said in the report that, "We will look at if people can go on furloughs and leaves. If sub-contractor costs can come down and if we can deploy people there. We will have to cut costs wherever possible. These are tough times and we may have to take tough decisions." Apart from Wipro, reports state that Capgemini has asked its non-billable employees to go on leaves and seek billable opportunities. Capgemini employees confirmed to Moneycontrol that some of their non-billable colleagues were asked to go on leave.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/business/companies/coronavirus-impact-wipro-starts-benching-employees-as-business-takes-a-hit-5214261.htmlRating: 0.30
Saudi to take 'strict, painful' measures to deal with coronavirus impact
2 May 17:55
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4 articles
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Saudi to take 'strict, painful' measures to deal with coronavirus impact
CAIRO — Saudi Arabia will take strict and painful measures to deal with the economic impact of the coronavirus pandemic, finance minister Mohammed al-Jadaan said in an interview with Al Arabiya TV, adding that “all options for dealing with the crisis are open.” “We must reduce budget expenditures sharply,” Jadaan said in comments published on Saturday ahead of the interview’s broadcast. No details of possible measures were given. The world’s largest oil exporter is suffering from historically low oil prices, while measures to fight the new coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman. Saudi Arabia’s central bank foreign exchange reserves fell in March at their fastest rate in at least 20 years, hitting their lowest since 2011, while the kingdom slipped to a $9 billion budget deficit in the first quarter as oil revenues collapsed. Jadaan noted the country had introduced stimulus measures aimed at preserving jobs in the private sector and safeguarding the provision of basic services. Earlier this week he said Riyadh could borrow around $26 billion more this year and would draw down up to $32 billion from its reserves to finance the deficit. On Saturday he said withdrawals from the kingdom’s cash reserves this year must not exceed a total of between 110 billion riyals ($29 billion) and 120 billion, as specified in the budget. (Additional reporting by Lisa Barrington Editing by Nick Macfie and David Holmes)
2 May 17:55 • Financial Post • https://business.financialpost.com/pmn/business-pmn/saudi-to-take-strict-painful-measures-to-deal-with-coronavirus-impact-2Rating: 0.94
Saudi Arabia to take 'strict, painful' measures to deal with coronavirus impact
CAIRO: Saudi Arabia will take strict and painful measures to deal with the economic impact of the coronavirus pandemic, finance minister Mohammed al-Jadaan said in an interview with Al Arabiya TV, adding that “all options for dealing with the crisis are open”. “We must reduce budget expenditures sharply”, Jadaan said in comments published on Saturday ahead of the interview’s broadcast. No details of possible measures were given. The world’s largest oil exporter is suffering from historically low oil prices, while measures to fight the new coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman. Saudi Arabia’s central bank foreign exchange reserves fell in March at their fastest rate in at least 20 years, hitting their lowest since 2011, while the kingdom slipped to a $9 billion budget deficit in the first quarter as oil revenues collapsed. Jadaan noted the country had introduced stimulus measures aimed at preserving jobs in the private sector and safeguarding the provision of basic services. Earlier this week he said Riyadh could borrow around $26 billion more this year and would draw down up to $32 billion from its reserves to finance the deficit. On Saturday he said withdrawals from the kingdom’s cash reserves this year must not exceed a total of between 110 billion riyals ($29 billion) and 120 billion, as specified in the budget.
2 May 18:20 • The Express Tribune • https://tribune.com.pk/story/2212632/3-saudi-arabia-take-strict-painful-measures-deal-coronavirus-impact/Rating: 1.80
Coronavirus | Saudi to take ‘strict, painful’ measures to deal economic with impact
Saudi Arabia will take strict and painful measures to deal with the economic impact of the coronavirus pandemic, Finance Minister Mohammed al-Jadaan said in an interview with Al Arabiya TV, adding that “all options for dealing with the crisis are open”. “We must reduce budget expenditures sharply”, Mr. Jadaan said in comments published on Saturday ahead of the interview’s broadcast. No details of possible measures were given. The world’s largest oil exporter is suffering from historically low oil prices, while measures to fight the new coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman. Saudi Arabia’s central bank foreign exchange reserves fell in March at their fastest rate in at least 20 years, hitting their lowest since 2011, while the kingdom slipped to a $9 billion budget deficit in the first quarter as oil revenues collapsed. Mr. Jadaan noted the country had introduced stimulus measures aimed at preserving jobs in the private sector and safeguarding the provision of basic services. Earlier this week he said Riyadh could borrow around $26 billion more this year and would draw down up to $32 billion from its reserves to finance the deficit. On Saturday he said withdrawals from the kingdom’s cash reserves this year must not exceed a total of between 110 billion riyals ($29 billion) and 120 billion, as specified in the budget.
2 May 19:20 • The Hindu • https://www.thehindu.com/news/international/coronavirus-saudi-to-take-strict-painful-measures-to-deal-with-impact/article31492307.eceRating: 0.30
Saudi Arabia to take 'strict, painful' measures to deal with coronavirus impact
Riyadh: Saudi Arabia will take strict and painful measures to deal with the economic impact of the coronavirus pandemic, finance minister Mohammed Al Jadaan said in an interview with Al Arabiya TV, adding that "all options for dealing with the crisis are open". "We must reduce budget expenditures sharply", Jadaan said in comments published on Saturday ahead of the interview's broadcast. No details of possible measures were given. The world's largest oil exporter is suffering from historically low oil prices, while measures to fight the new coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman. Saudi Arabia's central bank foreign exchange reserves fell in March at their fastest rate in at least 20 years, hitting their lowest since 2011, while the kingdom slipped to a $9 billion budget deficit in the first quarter as oil revenues collapsed. Jadaan noted the country had introduced stimulus measures aimed at preserving jobs in the private sector and safeguarding the provision of basic services. Earlier this week he said Riyadh could borrow around $26 billion more this year and would draw down up to $32 billion from its reserves to finance the deficit. On Saturday he said withdrawals from the kingdom's cash reserves this year must not exceed a total of between 110 billion riyals ($29 billion) and 120 billion, as specified in the budget.
2 May 18:59 • Gulf News • https://gulfnews.com/business/saudi-arabia-to-take-strict-painful-measures-to-deal-with-coronavirus-impact-1.1588446148193Rating: 3.21
Warren Buffett remains optimistic about future despite coronavirus
3 May 16:16
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7 articles
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Warren Buffett remains optimistic about future despite coronavirus
Investor Warren Buffett doesn't know how the economy will recover from the coronavirus outbreak shutdown, but he remains optimistic in the long-term future of the United States.Buffett said Saturday at Berkshire Hathaway's online annual meeting that there's no way to predict the economic future right now because the possibilities are still too varied.In the six weeks since the pandemic shut down much of the U.S. economy, more than 30 million American workers have filed for unemployment insurance. All types of businesses are cutting workers, with the hospitality, restaurant, retail and travel industries being some of the hardest hit.Buffett has even sold his holdings in U.S. airlines."Unfortunately, I think that the airline industry, among others, are really hurt by a forced shutdown by events beyond their control," he said.Yet long term, Buffett expects the economy to rebound."World War II, I was convinced of it. During the Cuban missile crisis, 9/11, the financial crisis -- nothing can basically stop America," he said.Berkshire's meeting was being held without any of the roughly 40,000 shareholders who typically attend. Instead of answering questions in a packed arena filled with shareholders, Buffett spoke in front of a camera for the online meeting. The normal shareholder celebration Berkshire holds each spring was canceled because of the coronavirus outbreak.ABC News contributed to this report.
3 May 16:16 • ABC7 Los Angeles • https://abc7.com/business/warren-buffett-remains-optimistic-about-future-despite-covid-19/6147172/Rating: 0.39
Buffett remains optimistic about future despite coronavirus | Honolulu Star-Advertiser
OMAHA, Neb. >> Billionaire investor Warren Buffett doesn’t know how or when the economy will recover from the coronavirus outbreak shutdown, but he remains optimistic in the long-term future of the United States. Buffett said today at Berkshire Hathaway’s online annual meeting that there’s no way to predict the economic future right now because the possibilities are still too varied. Berkshire’s meeting was held without any of the roughly 40,000 shareholders who typically attend. “We do not know exactly what happens when you voluntarily shut down a substantial portion of your society,” Buffett said because it has never been done. He said it may take several years to understand all the economic implications of the coronavirus outbreak, but it hasn’t changed his long-term view because the country has endured wars and depressions before. “I remain convinced … that nothing can basically stop America,” Buffett said. It’s not clear how long the virus will continue to weigh on the economy, Buffett said. “You’re dealing with a huge unknown,” Buffett said, so businesses can’t be certain of what will happen in the next several months. Buffett said he doesn’t expect major banks to have significant financial problems during the virus crisis because they are in much better shape than they were during the financial crisis of 2008. He said there could still be unpleasant surprises from the virus and the way people react to it. Buffett said government programs to help people and businesses who are struggling during the virus outbreak make sense. “I think it’s a very good idea to take care of people who are having trouble taking care of themselves during this period,” he said. All of the events surrounding the annual meeting, including a trade show where Berkshire companies sell their products, were cancelled this year because of the coronavirus pandemic, and Buffett had a different partner for the question session. Instead of sitting next to business partner Charlie Munger in an arena filled with shareholders, Buffett was joined this year by Berkshire Vice Chairman Greg Abel, who oversees all of the company’s non-insurance businesses, to answer questions in front of a Yahoo Finance camera. “It’s certainly a break with years and years of tradition with Buffett and Munger,” said Andy Kilpatrick, a retired stockbroker who wrote a Buffett biography and has attended every annual meeting since 1985. The fact that Abel appeared alongside Buffett will add to speculation that he could one day succeed the 89-year-old billionaire as CEO, but it likely also reflects the fact that Abel is based relatively close to Omaha, in Des Moines, Iowa. Abel and fellow longtime executive Ajit Jain, who oversees Berkshire’s insurance businesses, are seen as the two most likely successor candidates although Buffett has no plans to retire. Omaha will miss out on the profits that comes from all the out-of-town visitors attending the meeting. Local economic development officials estimate that Berkshire Hathaway’s annual meeting normally provides a $21.3 million boost to the area. Buffett and Abel discussed the nearly $50 billion loss that Berkshire reported this morning and the huge pile of cash the company is holding. Berkshire said it lost $49.7 billion, or $30,653 per Class A share, during the first quarter. That’s down from last year’s profit of $21.66 billion, or $13,209 per Class A share. The biggest factor in the loss was a $54.5 billion loss on the value of Berkshire’s investment portfolio as the stock market declined sharply after the coronavirus outbreak began. The year before, Berkshire’s investments added $15.5 billion to the company’s profits. Buffett has long said Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely. By that measure, Berkshire’s operating earnings improved to $5.87 billion, or $3,617.62 per Class A share, from $5.56 billion, or $3,387.56 per Class A share. Analysts surveyed by FactSet expected operating earnings per Class A share of $3,796.90 on average. Berkshire’s revenue grew 1 percent to $61.27 billion. The company said revenue slowed considerably in April as the virus outbreak negatively affected most of its businesses. Berkshire closed several of its retail businesses, such as See’s Candy and the Nebraska Furniture Mart, this spring while BNSF railroad and its insurance and utility businesses continued operating while adjusting to reduced demand. Berkshire is sitting on a pile of more than $137 billion cash because Buffett has struggled to find major acquisitions for the company recently and he wants to be prepared to endure any crisis. Edward Jones analyst Jim Shanahan said it was striking that Buffett didn’t find any bargains to invest in at the end of the first quarter. “The lack of investment activity really sticks out,” Shanahan said. Buffett said that Berkshire sold roughly $6.5 billion of stock in April, while also buying about $426 million in other stocks, by unloading his company’s roughly 10% stakes in the four largest airlines. Buffett said he decided that he made a mistake in how he valued airlines, so he sold all of Berkshire’s American, Delta, Southwest and United Continental airline stock. He didn’t name the stocks Berkshire purchased. Buffett said he hasn’t made any big deals during the coronavirus crisis because he hasn’t seen any on attractive terms. He said many companies have been able to borrow money in the market in the past two months because the Federal Reserve stepped in to keep markets moving, so they haven’t turned to Berkshire for help. Berkshire Hathaway Inc. owns more than 90 companies, including the railroad and insurance, utility, furniture and jewelry businesses. The company also has major investments in such companies as Apple, American Express, Coca-Cola and Bank of America.
3 May 01:55 • Star-Advertiser • https://www.staradvertiser.com/2020/05/02/breaking-news/buffett-remains-optimistic-about-future-despite-coronavirus/Rating: 0.30
Buffett remains optimistic about future despite coronavirus
OMAHA, Neb. (AP) — Billionaire investor Warren Buffett doesn't know how or when the economy will recover from the coronavirus outbreak shutdown, but he remains optimistic in the long-term future of the United States. Buffett said Saturday at Berkshire Hathaway's online annual meeting that there's no way to predict the economic future right now because the possibilities are still too varied. Berkshire's meeting was held without any of the roughly 40,000 shareholders who typically attend because of the virus. "We do not know exactly what happens when you voluntarily shut down a substantial portion of your society," Buffett said because it has never been done. He said it may take several years to understand all the economic implications of the coronavirus outbreak, but it hasn't changed his long-term view because the country has endured wars and depressions before. “In the end, the answer is never bet against America,” Buffett said. It's not clear how long the virus will continue to weigh on the economy, Buffett said. He said there could still be unpleasant surprises from the virus and the way people react to it. “You're dealing with a huge unknown,” Buffett said, so businesses and investors can't be certain of what will happen in the near future. Buffett said he doesn't expect major banks to have significant financial problems during the virus crisis because they are in much better shape than they were during the financial crisis of 2008. All of the events surrounding the annual meeting, including a trade show where Berkshire companies sell their products, were cancelled this year because of the coronavirus pandemic, and Buffett had a different partner for the question session. Instead of sitting next to business partner Charlie Munger in an arena filled with shareholders, Buffett was joined this year by Berkshire Vice Chairman Greg Abel, who oversees all of the company's non-insurance businesses, to answer questions in front of a Yahoo Finance camera. “It's certainly a break with years and years of tradition with Buffett and Munger,” said Andy Kilpatrick, a retired stockbroker who wrote a Buffett biography and has attended every annual meeting since 1985. The fact that Abel appeared alongside Buffett will add to speculation that he could one day succeed the 89-year-old billionaire as CEO, but it likely also reflects the fact that Abel is based relatively close to Omaha, in Des Moines, Iowa. Abel and fellow longtime executive Ajit Jain, who oversees Berkshire's insurance businesses, are seen as the two most likely successor candidates although Buffett has no plans to retire. Omaha missed out on the profits that comes from all the out-of-town visitors attending the meeting. Local economic development officials estimate that Berkshire Hathaway's annual meeting normally provides a $21.3 million boost to the area. Buffett and Abel discussed the nearly $50 billion loss that Berkshire reported Saturday morning and the huge pile of cash the company is holding. Berkshire said it lost $49.7 billion, or $30,653 per Class A share, during the first quarter. That's down from last year's profit of $21.66 billion, or $13,209 per Class A share. The biggest factor in the loss was a $54.5 billion loss on the value of Berkshire's investment portfolio as the stock market declined sharply after the coronavirus outbreak began. Berkshire’s revenue grew 1 percent to $61.27 billion. The company said revenue slowed considerably in April as the virus outbreak negatively affected most of its businesses. Berkshire closed several of its retail businesses, such as See’s Candy and the Nebraska Furniture Mart, this spring while BNSF railroad and its insurance and utility businesses continued operating while adjusting to reduced demand. Berkshire is sitting on a pile of more than $137 billion cash because Buffett has struggled to find major acquisitions for the company recently and he wants to be prepared to endure any crisis. Edward Jones analyst Jim Shanahan said it was striking that Buffett didn't find any bargains to invest in at the end of the first quarter. “The lack of investment activity really sticks out,” Shanahan said. Buffett said that Berkshire sold roughly $6.5 billion of stock in April when it unloaded his company's roughly 10% stakes in the four largest airlines. Buffett said he decided that he made a mistake in how he valued airlines, so he sold all of Berkshire's American, Delta, Southwest and United Continental airline stock. Buffett said he hasn't made any big deals during the coronavirus crisis because he hasn't seen any on attractive terms. He said many companies have been able to borrow money in the market in the past two months because the Federal Reserve stepped in to keep markets moving, so they haven't turned to Berkshire for help. Berkshire Hathaway Inc. owns more than 90 companies, including the railroad and insurance, utility, furniture and jewelry businesses. The company also has major investments in such companies as Apple, American Express, Coca-Cola and Bank of America.
3 May 01:48 • THE OKLAHOMAN • https://oklahoman.com/article/feed/10046462/buffetts-firm-reports-nearly-50b-loss-as-investments-dropRating: 0.30
Buffett Remains Optimistic About Future Despite Coronavirus
OMAHA, Neb. (AP) — Billionaire investor Warren Buffett doesn’t know how the economy will recover from the coronavirus outbreak shutdown, but he remains optimistic in the long-term future of the United States. Buffett said Saturday at Berkshire Hathaway’s online annual meeting that there’s no way to predict the economic future right now because the possibilities are still too varied. Berkshire’s meeting was held without any of the roughly 40,000 shareholders who typically attend. “We do not know exactly what happens when you voluntarily shut down a substantial portion of your society,” Buffett said because it has never been done. He said it may take several years to understand all the economic implications of the coronavirus outbreak, but it hasn’t changed his long-term view because the country has endured wars and depressions before. “I remain convinced … that nothing can basically stop America,” Buffett said. All of the events surrounding the annual meeting, including a trade show where Berkshire companies sell their products, were cancelled this year because of the coronavirus pandemic, and Buffett will have a different partner for the question session. Instead of sitting next to business partner Charlie Munger in an arena filled with shareholders, Buffett was joined this year by Berkshire Vice Chairman Greg Abel, who oversees all of the company’s non-insurance businesses, to answer questions in front of a Yahoo Finance camera. “It’s certainly a break with years and years of tradition with Buffett and Munger,” said Andy Kilpatrick, a retired stockbroker who wrote a Buffett biography and has attended every annual meeting since 1985. The fact that Abel is appearing alongside Buffett will add to speculation that he could one day succeed the 89-year-old billionaire as CEO, but it likely also reflects the fact that Abel is based relatively close to Omaha, in Des Moines, Iowa. Abel and fellow longtime executive Ajit Jain, who oversees Berkshire’s insurance businesses, are seen as the two most likely successor candidates although Buffett has no plans to retire. Omaha will miss out on the profits that comes from all the out-of-town visitors attending the meeting. Local economic development officials estimate that Berkshire Hathaway’s annual meeting normally provides a $21.3 million boost to the area. Buffett and Abel likely will be asked about the nearly $50 billion loss that Berkshire reported Saturday morning and the huge pile of cash the company is holding. Berkshire said it lost $49.7 billion, or $30,653 per Class A share, during the first quarter. That’s down from last year’s profit of $21.66 billion, or $13,209 per Class A share. The biggest factor in the loss was a $54.5 billion loss on the value of Berkshire’s investment portfolio as the stock market declined sharply after the coronavirus outbreak began. The year before, Berkshire’s investments added $15.5 billion to the company’s profits. Buffett has long said Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely. By that measure, Berkshire’s operating earnings improved to $5.87 billion, or $3,617.62 per Class A share, from $5.56 billion, or $3,387.56 per Class A share. Analysts surveyed by FactSet expected operating earnings per Class A share of $3,796.90 on average. Berkshire’s revenue grew 1 percent to $61.27 billion. The company said revenue slowed considerably in April as the virus outbreak negatively affected most of its businesses. Berkshire closed several of its retail businesses, such as See’s Candy and the Nebraska Furniture Mart, this spring while BNSF railroad and its insurance and utility businesses continued operating. Berkshire is sitting on a pile of more than $137 billion cash because Buffett has struggled to find major acquisitions for the company recently. Edward Jones analyst Jim Shanahan said it was striking that Buffett didn’t find any bargains to invest in at the end of the first quarter. “The lack of investment activity really sticks out,” Shanahan said. Buffett said that Berkshire sold roughly $6.5 billion of stock in April, while also buying about $426 million in other stocks, by unloading his company’s roughly 10% stakes in the four largest airlines. Buffett said he decided that he made a mistake in how he valued airlines. He didn’t name the stocks Berkshire purchased. Berkshire Hathaway Inc. owns more than 90 companies, including the railroad and insurance, utility, furniture and jewelry businesses. The company also has major investments in such companies as Apple, American Express, Coca-Cola and Bank of America. By JOSH FUNK
2 May 23:40 • Courthouse News Service • https://www.courthousenews.com/buffett-remains-optimistic-about-future-despite-coronavirus/Rating: 0.30
Buffett says coronavirus cannot stop America
NEW YORK, May 3 — Warren Buffett said on Saturday gave an upbeat assessment of the United States’ ability to withstand crises, even as he acknowledged that the coronavirus pandemic could have a wide range of impacts on the economy. The 89-year-old Buffett spoke at Berkshire Hathaway Inc’s annual meeting in Omaha, Nebraska, which was held virtually for the first time, without shareholders, because of the pandemic. The meeting was streamed by Yahoo Finance. Buffett said the potential impact of the pandemic, which has already battered the global economy, had a “extraordinarily wide” range. But he maintained his usual optimism that the United States would weather it successfully, citing its emergence from crises such as World War Two and the influenza pandemic a century ago. “This is quite an experiment,” Buffett said. “I remain convinced ... that nothing can basically stop America.” The annual meeting began several hours after Berkshire reported a record US$49.75 billion (RM213.5 billion) first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp and Apple Inc during the market meltdown. While quarterly operating profit rose 6 per cent, several larger businesses including the BNSF railroad posted declines, and Berkshire said some of its more than 90 businesses are facing “severe” negative effects from Covid-19, the illness caused by the novel coronavirus. Buffett also let Berkshire’s cash stake soar to $137.3 billion as of March 31, reflecting difficulty in finding good places to invest. The meeting is devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls “Woodstock for Capitalists.” Buffett is expected to answer shareholder questions at the meeting. He is being joined by Vice Chairman Greg Abel, 57, who has day-to-day oversight of Berkshire’s non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive officer. — Reuters
2 May 22:14 • Malaymail • https://www.malaymail.com/news/money/2020/05/03/buffett-says-coronavirus-cannot-stop-america/1862502Rating: 1.42
Buffett says coronavirus cannot stop America
Warren Buffett said on Saturday gave an upbeat assessment of the United States’ ability to withstand crises, even as he acknowledged that the coronavirus pandemic could have a wide range of impacts on the economy. The 89-year-old Buffett spoke at Berkshire Hathaway Inc’s annual meeting in Omaha, Nebraska, which was held virtually for the first time, without shareholders, because of the pandemic. The meeting was streamed by Yahoo Finance. Buffett said the potential impact of the pandemic, which has already battered the global economy, had a “extraordinarily wide” range. But he maintained his usual optimism that the United States would weather it successfully, citing its emergence from crises such as World War Two and the influenza pandemic a century ago. “This is quite an experiment,” Buffett said. “I remain convinced … that nothing can basically stop America.” The annual meeting began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp and Apple Inc during the market meltdown. While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, and Berkshire said some of its more than 90 businesses are facing “severe” negative effects from COVID-19, the illness caused by the novel coronavirus. Buffett also let Berkshire’s cash stake soar to $137.3 billion as of March 31, reflecting difficulty in finding good places to invest. The meeting is devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls “Woodstock for Capitalists.” Buffett is expected to answer shareholder questions at the meeting. He is being joined by Vice Chairman Greg Abel, 57, who has day-to-day oversight of Berkshire’s non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive officer. (Reporting by Jonathan Stempel in New York; editing by Megan Davies and Alistair Bell)
2 May 21:28 • Financial Post • https://business.financialpost.com/pmn/business-pmn/buffett-says-coronavirus-cannot-stop-americaRating: 0.94
Warren Buffett remains optimistic about future despite coronavirus
OMAHA, NEB. -- Billionaire investor Warren Buffett doesn't know how or when the economy will recover from the coronavirus outbreak shutdown, but he remains optimistic in the long-term future of the United States. Buffett said Saturday at Berkshire Hathaway's online annual meeting that there's no way to predict the economic future right now because the possibilities are still too varied. Berkshire's meeting was held without any of the roughly 40,000 shareholders who typically attend because of the virus. "We do not know exactly what happens when you voluntarily shut down a substantial portion of your society," Buffett said because it has never been done. He said it may take several years to understand all the economic implications of the coronavirus outbreak, but it hasn't changed his long-term view because the country has endured wars and depressions before. "In the end, the answer is never bet against America," Buffett said. It's not clear how long the virus will continue to weigh on the economy, Buffett said. He said there could still be unpleasant surprises from the virus and the way people react to it. "You're dealing with a huge unknown," Buffett said, so businesses and investors can't be certain of what will happen in the near future. Buffett said he doesn't expect major banks to have significant financial problems during the virus crisis because they are in much better shape than they were during the financial crisis of 2008. All of the events surrounding the annual meeting, including a trade show where Berkshire companies sell their products, were cancelled this year because of the coronavirus pandemic, and Buffett had a different partner for the question session. Instead of sitting next to business partner Charlie Munger in an arena filled with shareholders, Buffett was joined this year by Berkshire Vice Chairman Greg Abel, who oversees all of the company's non-insurance businesses, to answer questions in front of a Yahoo Finance camera. "It's certainly a break with years and years of tradition with Buffett and Munger," said Andy Kilpatrick, a retired stockbroker who wrote a Buffett biography and has attended every annual meeting since 1985. The fact that Abel appeared alongside Buffett will add to speculation that he could one day succeed the 89-year-old billionaire as CEO, but it likely also reflects the fact that Abel is based relatively close to Omaha, in Des Moines, Iowa. Abel and fellow longtime executive Ajit Jain, who oversees Berkshire's insurance businesses, are seen as the two most likely successor candidates although Buffett has no plans to retire. Omaha missed out on the profits that comes from all the out-of-town visitors attending the meeting. Local economic development officials estimate that Berkshire Hathaway's annual meeting normally provides a $21.3 million boost to the area. Buffett and Abel discussed the nearly $50 billion loss that Berkshire reported Saturday morning and the huge pile of cash the company is holding. Berkshire said it lost $49.7 billion, or $30,653 per Class A share, during the first quarter. That's down from last year's profit of $21.66 billion, or $13,209 per Class A share. The biggest factor in the loss was a $54.5 billion loss on the value of Berkshire's investment portfolio as the stock market declined sharply after the coronavirus outbreak began. Berkshire's revenue grew 1 per cent to $61.27 billion. The company said revenue slowed considerably in April as the virus outbreak negatively affected most of its businesses. Berkshire closed several of its retail businesses, such as See's Candy and the Nebraska Furniture Mart, this spring while BNSF railroad and its insurance and utility businesses continued operating while adjusting to reduced demand. Berkshire is sitting on a pile of more than $137 billion cash because Buffett has struggled to find major acquisitions for the company recently and he wants to be prepared to endure any crisis. Edward Jones analyst Jim Shanahan said it was striking that Buffett didn't find any bargains to invest in at the end of the first quarter. "The lack of investment activity really sticks out," Shanahan said. Buffett said that Berkshire sold roughly $6.5 billion of stock in April when it unloaded his company's roughly 10% stakes in the four largest airlines. Buffett said he decided that he made a mistake in how he valued airlines, so he sold all of Berkshire's American, Delta, Southwest and United Continental airline stock. Buffett said he hasn't made any big deals during the coronavirus crisis because he hasn't seen any on attractive terms. He said many companies have been able to borrow money in the market in the past two months because the Federal Reserve stepped in to keep markets moving, so they haven't turned to Berkshire for help. Berkshire Hathaway Inc. owns more than 90 companies, including the railroad and insurance, utility, furniture and jewelry businesses. The company also has major investments in such companies as Apple, American Express, Coca-Cola and Bank of America.
2 May 18:29 • CTVNews • https://www.ctvnews.ca/business/warren-buffett-remains-optimistic-about-future-despite-coronavirus-1.4922190Rating: 2.87
APC says Obasanjo's government was short-sighted, Nigerians react
3 May 14:32
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APC says Obasanjo's government was short-sighted, Nigerians react
- Nigerians have come to the defence of Olusegun Obasanjo after the APC described his administration as short-sighted - It alls started after Atiku Abubakar advised the Buhari-led government on diversification of the economy - In its response, the APC said it took Atiku 13 years after leaving office to realise that the Obasanjo government under which he served as the vice president was short-sighted - PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed! Atiku Abubakar, a former vice president, drew the ire of Nigeria's ruling party, the All Progressives Congress (APC) after he gave suggestions to the President Muhammadu Buhari-led government on how the economy can be diversified. The party gladly educated Atiku on the several policies Buhari's administration has introduced since 2015 to diversify Nigeria's economy. Atiku was reminded by the ruling party that he had eight years as a powerful vice president and chairman of the National Council on Privatisation with vantage opportunity to lead the country away from its dependence on oil. Osinbajo reveals how FG will address economic challenges caused by COVID-19 The APC did not only take a swipe at Atiku, but it also attacked the administration of Olusegun Obasanjo, under which he served as vice president. The party described the administration of Obasanjo as short-sighted. "While we appreciate that Atiku Abubakar is keying into this administration’s policy direction regarding diversification, we are only worried that it took him 13 years after leaving office to realise that the government under which he served as the vice president was short-sighted for its failure to faithfully diversify the Nigerian economy," the ruling party stated. It appears some Nigerians still prefer the government of Obasanjo to that of the current administration. Following APC's attack on Obasanjo, some Nigerians took to social media to express their displeasure. According to some, the ruling party is not qualified to call any government short-sighted. Legit.ng has gathered some of the reactions below: According to Barbara Anang Marok, Buhari should not be compared to Obasanjo. Eliminate Boko Haram totally - Buhari orders Nigerian military Rabbi says there is no need arguing with anyone who thinks Obasanjo did nothing for Nigeria. "APC calling Obasanjo's regime shortsighted is like Unilag calling Harvard University glorified secondary school. A combination of all brains in APC doesn't equal 5% of Obasanjo's brain," Stanley Bentley wrote on Twitter. According to Sodiq Tade, even if Buhari is given 10 more years to rule Nigeria, he can never beat Obasanjo's achievement. Dr. Dípò Awójídé applauded Obasanjo for laying a good foundation by picking the best brains from across Nigeria irrespective of tribe or religion. Some Nigerians are of the opinion that Buhari's ministers are no match for those appointed by Obasanjo during his tenure. Atiku, in a statement posted on his Twitter page on Thursday, April 30, had stressed that reliance on oil was failing all mono-product economy and crude oil exporters. PDP criticises Buhari’s broadcast on COVID-19, asks Nigerians to observe Senegal He added that the country needed to diversify the economy, saying that though it is easier said than done, it does not mean it is an impossible task. Oil price crash: What does this mean for Nigeria? | Legit TV
3 May 14:32 • Legit • https://www.legit.ng/1326365-apc-obasanjos-government-short-sighted-nigerians-react.htmlRating: 0.30
APC replies Atiku: You’re part of Obasanjo’s short-sighted govt
John Alechenu The All Progressives Congress has welcomed opinions expressed by former Vice-President, Alhaji Atiku Abubakar, suggesting measures to be adopted by the regime of the President, Major General Muhammadu (retd.) to diversify Nigeria’s economy. It, however, accused the President Olusegun Obasanjo-led administration in which Atiku served as vice-president for eight years, of failing to put into practice what Atiku was preaching. This was contained in a statement signed by the APC National Publicity Secretary, Mallam Lanre Issa-Onilu, in Abuja, on Saturday. The party said it appreciated Atiku’s decision to key into Buhari regime’s policy direction in terms of diversifying the economy. But it said it was a bit surprised that he failed to acknowledge the regime’s bold efforts in this direction over the past five years. Atiku had in a position paper titled, “How to pull Nigeria from the brink,” faulted some of the economic policies of the Buhari-led regime, describing the decision to close the nation’s borders with neighbouring African countries as “insane.” In response to it, the APC said, “Atiku Abubakar had eight years as a powerful vice-president and chairman of the National Council on Privatisation with vantage opportunity to lead the country away from its dependence on oil. “How Nigeria got worse even when international oil prices were stable and high are matters Atiku Abubakar may still need to address in the future.” According to the statement, it is worrisome that it took Atiku 13 years after leaving office to realise that the government under which he served as the vice-president was short-sighted for its failure to faithfully diversify the Nigerian economy. The APC said as far back as 2016, the Buhari regime took practical steps to diversify the nation’s economy, especially in its area of comparative advantage, which is agriculture. Towards this end, it said the regime launched the Anchor Borrowers Programme, an intervention policy primarily aimed at giving farmers access to finance. This, it explained, entails the provision of credit for financing the production of rice, wheat, ginger, maize and soybeans in many states of the federation, adding that the policy driven by the Central Bank of Nigeria had provided hundreds of billions of naira for rice farming, cultivation and milling in the last four years. It said few years down the line, Nigeria is now rated the highest producer of rice in Africa, producing over seven million tonnes per annum. The statement read in part, “Just late last year, the APC-led government, through the CBN, also made available huge funds to our cotton farmers, a move geared towards reviving our moribund textile factories, thereby creating millions of direct and indirect jobs. “Also, as part of the efforts of the President Buhari-led administration to boost agriculture is the massive successes recorded in the local production of fertiliser. This was one policy personally driven by the President and which has received applause from even his most virulent critics. “This policy, which is built on a partnership between Nigeria and the Kingdom of Morocco, has led to the resuscitation of 11 blending plants producing about 1.3million tonnes of fertiliser, creation of over 50,000 direct and 150,000 indirect jobs, in addition to farmers having timely access to the product at an affordable price. “The contribution of agriculture to the overall Gross Domestic Product has consistently been on the increase and it is being captured by the National Bureau of Statistics in the last four years. “Most heart-warming is the fact that the private sector is keying into the President Buhari’s agenda. An example is the Dangote Group’s ongoing test running of its $2bn fertiliser plant, which would make Nigeria meet all its domestic demand and also make our country a net exporter of fertiliser.” The APC further said the former Vice-President might wish to know that the policy he labelled “insane” had “led to a significant spike in rice production across the country, opening up of hundreds of rice mills, indigenous manufacturing firms are sourcing their raw materials locally, boom in poultry farming, with Nigerians now patronising locally made food items like never before and, in the process, boosting the income of farmers and local producers.” It further said, “It is heart-warming to know we are coping well as the coronavirus pandemic and the resultant lockdowns are testing our country’s capacity to feed itself. “We have been able to meet the pandemics induced surge in the demand for foods only because the APC administration has been implementing policies targeted at expanding the capacity of our farmers and the other players in the allied industries.” Copyright PUNCH.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH. Contact: theeditor@punchng.com
3 May 04:39 • Punch Newspapers • https://punchng.com/apc-replies-atiku-youre-part-of-obasanjos-short-sighted-govt/Rating: 0.30
APC hits Atiku, says Obasanjo’s Administration was shortsighted on Economic Diversification
Kindly Share This Story: The ruling All Progressives Congress APC said it welcomes the suggestions of a former vice president, Atiku Abubakar on economic diversification, but took a swipe at him for not implementing those suggestions when he was in office and held sway as chairman of the National Council on Privatisation for eight years. APC in a statement on Saturday by its National Publicity Secretary, Mallam Lanre Issa-Onilu also expressed shock that it took the former vice president 13 years after leaving office to know that the administration of President Olusegun Obasanjo under which he served as second in command was shortsighted for its inability to “faithfully diversify the economy”. The party said it was a bit surprised that the former Vice President failed to acknowledge the bold efforts the President Muhammadu Buhari administration has made in the last five years towards diversification of the economy and the many positive gains Nigeria has recorded. “Perhaps, it was an oversight. Or, could it be too inconvenient a truth to admit?”, The party queried. “While we appreciate that Atiku Abubakar is keying into this administration’s policy direction regarding diversification, we are only worried that it took him 13 years after leaving office to realise that the Government under which he served as the Vice President was short-sighted for its failure to faithfully diversify the Nigerian economy. “Not to be confused, Atiku Abubakar had eight years as a powerful Vice President and Chairman of the National Council on Privatisation with vantage opportunity to lead the country away from its dependence on oil. How Nigeria got worse even when international oil prices were stable and high are matters Atiku Abubakar may still need to address in future”, APC added. The party is reeling out what it described as the successes of the current administration, said as far back as 2016, President Buhari launched the Anchor Borrowers Programme ABP, an intervention policy primarily aimed at giving farmers access to finance, which entails the provision of credit for financing the production of rice, wheat, ginger, maize and soybeans in many states of the federation. The statement added that; “This policy driven by the Central Bank of Nigeria is an initiative that has, in the last four years, provided hundreds of billions of naira for rice farming, cultivation and milling. Few years down the line, Nigeria is now rated the highest producer of rice in Africa, producing over seven million tonnes per annum. “And just late last year, the APC-led government through the CBN has also made available huge funds to our cotton farmers, a move geared towards reviving our moribund textile factories thereby creating millions of direct and indirect jobs. “Also, as part of the efforts of the President Buhari-led administration to boost agriculture is the massive successes recorded in the local production of fertiliser. This was one policy personally driven by the President and which has received applause from even his most virulent critics. This policy, which is built on a partnership between Nigeria and the Kingdom of Morocco, has led to the resuscitation of 11 blending plants producing about 1.3million tonnes of fertiliser, creation of over 50,000 direct and 150,000 indirect jobs, in addition to farmers having timely access to the product at an affordable price. “The contributions of agriculture to the overall Gross Domestic Product (GDP) has consistently been on the increase and is being captured by the National Bureau of Statistics (NBS) in the last four years. “Most heart-warming is the fact that the private sector is keying into President Buhari’s agenda. An example is the Dangote Group’s ongoing test running of its $2billion fertiliser plant, which would make Nigeria meet all its domestic demand and also make our country a net exporter of fertiliser. “So, we ask Alhaji Atiku Abubakar: if all these major achievements are not commendable efforts towards diversification of the economy, what are they? “Atiku Abubakar said in his article that land border closure is an ‘insane’ policy. We believe that the former Vice President did not consider his position on this matter well enough as the facts leading to the closure of the border clearly justify the temporary closure. Perhaps, Atiku Abubakar is now at the pain that the trans-border security challenge our country was facing and from which he was making a huge political capital is now mostly curtailed. He should have realised the contradiction in his new propositions and the counterproductive business of smuggling of foreign goods into our country through our borders. How does the former Vice President expect Nigeria to be a productive economy if we continue to allow neighbouring countries to jeopardise our efforts to grow our own economy? “Alhaji Atiku Abubakar may wish to know that the policy he has unfortunately chosen to label as ‘insane’ has led to a significant spike in rice production across the country, opening up of hundreds of rice mills, indigenous manufacturing firms are sourcing their raw materials locally, the boom in poultry farming, with Nigerians, now patronising locally made food items like never before and, in the process, boosting the income of farmers and local producers. “It is heart-warming to know we are coping well as the Coronavirus pandemic and the resultant lockdowns are testing our country’s capacity to feed itself. We have been able to meet the pandemic induced surge in demand for foods only because the APC administration has been implementing policies targeted at expanding the capacity of our farmers and the other players in the allied industries. We ask Atiku Abubakar; where would we have gotten the farm produce for palliatives and feed our people during the lockdown if we had not taken the courageous route of looking inwards while curtailing sabotage from neighbouring economies? “In the areas of plugging revenue leakages, curbing waste, diversifying and growing the economy, budgeting, borrowings, ease of doing business, support of Small and Medium Scale Enterprises SMEs, the President Muhammadu Buhari government is matching electoral promises with actions. “Since the launch of the National Action Plan on Ease of Doing Business, being driven by the Presidential Enabling and Business Environment Council PEBEC, the APC government has aggressively implemented major reforms by reducing the challenges faced by the Minor, Small and Medium-sized Enterprises MSMEs in accessing credits, paying taxes, amongst others. “According to industry reports, Nigeria startups attracted $122million out of the $493million in funding for African startup sector in 2019. In the latest World Bank ranking, Nigeria jumped 15 places from her previous 2019 spot and was also named amongst the 10 most improved economies in the world. “In February this year, the Vice President, Prof. Yemi Osinbajo, held a meeting with all federal agencies that are playing one role or the other in the MSMEs sector. At the meeting, the Bank of Industry (BoI) approved a $20 million Technology Fund for young innovators, while the CBN is offering an N90billion soft loan facility for small scale agricultural enterprises. All these and more are part of this administration’s drive at changing the nation’s decades of mono-economy status. “In the fight against public sector corruption, the launch of the Open Treasury Portal (OTP) complements other initiatives such as the administration’s full implementation of the Treasury Single Account (TSA) which has increased the level of accountability, transparency in financial resources of government and plugged leakages. “Importantly, we no longer borrow money to pay salaries, but to build infrastructure, particularly roads, rails and airports. The era of phoney and abandoned contracts is in the past, contracts awarded are now strictly monitored to ensure full value for released contract sums. “For instance, in the road, railway and aviation sectors, President Muhammadu Buhari-led administration has recorded milestones that are visible to see and feel. While all the 36 states can boast of at least one major road project being undertaken by this government, there are also legacy projects, which include the Abuja to Kano expressway, Lagos to Ibadan expressway reconstruction, and the ongoing Second Niger Bridge. “On the railway, this administration’s record is unmatched. It is to this government’s credit that the Abuja to Kaduna Standard Gauge rail line was completed in 2017, while the Itakpe to Warri railway, which had been abandoned since 1987 by successive administration has been completed and is due for commissioning. Even more commendable is the near completion of the Lagos to Ibadan Standard Gauge rail, construction of which started about three years ago. “On aviation infrastructure, the APC government has, in the last two years, completed the upgrading of terminals at the Nnamdi Azikwe International Airport, Abuja and Port Harcourt International Airport, while work has reached advanced stages on many terminals across the country. “While we consolidate our rank as Africa’s biggest economy, aided by our re-emergent manufacturing sector, we continue to climb in the global ranking on the ease of doing business. Our investment and focus on agriculture where we have comparative advantage has been a huge success. We are beginning to look inward and grow our SMEs. We now have an army of entrepreneurs supported by the government and creating wealth and livelihoods. “Finally, the APC welcomes Alhaji Atiku Abubakar’s concerns and the fact that he is beginning to make a good attempt at sounding like a statesman. Going forward, this is the least we expect from him, even as we hope that he will be more forthcoming in future, in appreciating and commending the positive steps, while offering suggestions on what more can be done. “We, however, urge him to continue to do this without sounding overtly sanctimonious”, APC added. Vanguard Kindly Share This Story:
2 May 16:26 • Vanguard News • https://www.vanguardngr.com/2020/05/apc-hits-atiku-says-obasanjos-administration-was-shortsighted-on-economic-diversification/Rating: 2.43
A mind-boggling 30 million people have filed for unemployment in 6 weeks. There are likely more without jobs., Business Insider - Business Insider Singapore
2 May 14:28
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A mind-boggling 30 million people have filed for unemployment in 6 weeks. There are likely more without jobs., Business Insider - Business Insider Singapore
Job loss stemming from the coronavirus pandemic has been devastating. Economists think there are likely more without jobs that haven’t been captured by the data. What has been reported so far paints a gloomy picture. In just six weeks, 30 million Americans have filed for unemployment insurance. Each weekly report since mid-March has been in the millions – multiple times higher than the worst week of the Great Recession, when 665,000 filed for unemployment insurance. It took only four weeks of the coronavirus pandemic to erase all jobs created since the Great Recession. Now, there are millions more unemployed, signaling that the economic downturn from the coronavirus pandemic will be severe. As terrible as the job loss numbers are, they are only part of the picture. There could be more Americans unemployed, according to economists, as not everyone who lost work has been able to file for benefits. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode A survey conducted in mid-April by the Economic Policy Institute found that for every 10 people who successfully filed a claim for unemployment insurance, three to four tried to file but were unable to get through the system. In addition, two more didn’t try to apply for UI at all because it was too difficult. “These findings imply the official count of unemployment insurance claims likely drastically understates the extent of employment reductions and the need for economic relief during the coronavirus crisis,” wrote Ben Zipperer and Elise Gould of the EPI. Accounting for the workers who were unable to apply for unemployment, or tried but didn’t get through, the EPI survey found that only about half of potential UI applicants are actually receiving benefits. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond. Applying those findings to the five weeks of unemployment claims from March 15 to April 18, the EPI estimates an additional 8.9 million to 13.9 million could have filed for claims if the process had been easier. To be sure, unemployment benefits have been expanded to include more Americans than ever before. The CARES Act signed into law by President Donald Trump at the end of March extended unemployment benefits to millions of Americans who would’ve been otherwise ineligible, including gig workers, freelancers, and those who are self-employed. This is important, because these groups of non-traditional workers have expanded in the last decade. In 2019, 35% of the workforce freelanced, or 57 million people, up from 53 million in 2014, according to a survey by the Freelancers Union. The share of gig workers at US businesses has grown 15% since 2010, a study from the ADP Research Institute showed. But, there have been problems implementing the new program established by the CARES Act, called Pandemic Unemployment Assistance. At the end of April, only 21 states had started paying out benefits to self-employed and gig workers, according to the Labor Department. Read more:‘That’s where the really big upside is’: A CEO overseeing $36 billion pinpoints 7 areas of the market poised to rebound after plummeting as much as 60% this year And, states have been delayed in taking in claims filed for the program. Florida, for example, did not begin accepting applications under PUA until Tuesday, Politico reported. In mid-April, the new system Pennsylvania put in place for PUA crashed due to a flood of new applications, the Philadelphia Inquirer reported Thursday. New York’s system crashed as well following a huge surge in claims, Gov. Andrew Cuomo said in a briefing April 21. There are also quirks in the data calculation and collection that sometimes yield results that may not show the full picture. Next week, the April jobs report will be released, including nonfarm payroll information and an updated unemployment rate. As of April 18, economists estimated that the unemployment rate likely spiked to about 20.2% given the surge in UI claims. The next week, however, economists forecast an unemployment rate of 16%, even though claims rose by 3.8 million. This is not because the situation has gotten any better; it’s instead the way the data is calculated. To be included in the unemployment count, people have to say that they are actively looking for work. Under the expanded benefits from the CARES Act, people do not have to be actively looking for employment to receive a check, and because of the health crisis, many have put job searches on hold. That technically lowers the unemployment rate, meaning what will be reported for April could be an underrepresentation of how many people are actually out of work in the US. Read more:An investing strategy called ‘crisis alpha’ designed to thrive during meltdowns just whiffed on the fastest bear market in history. Here’s how that’s upended a $318 billion industry – and what it means for the future. There could also be further issues with the survey, which depends on the people filling it out to accurately answer questions about employment. Sometimes, as with any survey, respondents don’t interpret or answer the questions as intended. In March, the Bureau of Labor Statistics noted that the unemployment rate would’ve been one percentage point higher – 5.4% instead of 4.4% – if those who marked themselves temporarily absent from work due to “other reasons” had said they were unemployed on temporary layoff. The consequences of such widespread unemployment are dire. Current data shows about one in five American workers is without a job, and as UI claims continue to roll in in the millions, the share will increase. If the alarming rate of layoffs continues, it’s likely that about half of American workers will be without a paycheck in May, according to ING international economist James Knightley. It’s widely accepted that the US is in a recession, especially after first-quarter gross domestic product fell at a 4.8% annualized rate before the worst months of the coronavirus crisis. Now, economists are weighing what type of recovery may take place. The sweeping unemployment is foreboding, given that US consumption is roughly 70% of GDP. The longer that workers go without paychecks, the longer it will take for the economy to recover. Read more:A former software engineer quit a 6-figure job and started investing in real estate full-time. He shares the popular 5-part strategy he’s leveraging and exactly what he looks for in a deal.
2 May 14:28 • www.businessinsider.sg • https://www.businessinsider.sg/us-unemployment-likely-higher-than-jobless-claims-show-coronavirus-jobs-2020-5Rating: 0.30
A mind-boggling 30 million people have filed for unemployment in 6 weeks. There are likely more without jobs.
Job loss stemming from the coronavirus pandemic has been devastating. Economists think there are likely more without jobs that haven't been captured by the data. What has been reported so far paints a gloomy picture. In just six weeks, 30 million Americans have filed for unemployment insurance. Each weekly report since mid-March has been in the millions — multiple times higher than the worst week of the Great Recession, when 665,000 filed for unemployment insurance. It took only four weeks of the coronavirus pandemic to erase all jobs created since the Great Recession. Now, there are millions more unemployed, signaling that the economic downturn from the coronavirus pandemic will be severe. As terrible as the job loss numbers are, they are only part of the picture. There could be more Americans unemployed, according to economists, as not everyone who lost work has been able to file for benefits. Read more:'Brace for selling': A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now — opening the floodgates for a 'sell in May' episode A survey conducted in mid-April by the Economic Policy Institute found that for every 10 people who successfully filed a claim for unemployment insurance, three to four tried to file but were unable to get through the system. In addition, two more didn't try to apply for UI at all because it was too difficult. "These findings imply the official count of unemployment insurance claims likely drastically understates the extent of employment reductions and the need for economic relief during the coronavirus crisis," wrote Ben Zipperer and Elise Gould of the EPI. Accounting for the workers who were unable to apply for unemployment, or tried but didn't get through, the EPI survey found that only about half of potential UI applicants are actually receiving benefits. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won't end as quickly as it began and shares an investing strategy for the next 3 years and beyond. Applying those findings to the five weeks of unemployment claims from March 15 to April 18, the EPI estimates an additional 8.9 million to 13.9 million could have filed for claims if the process had been easier. To be sure, unemployment benefits have been expanded to include more Americans than ever before. The CARES Act signed into law by President Donald Trump at the end of March extended unemployment benefits to millions of Americans who would've been otherwise ineligible, including gig workers, freelancers, and those who are self-employed. This is important, because these groups of non-traditional workers have expanded in the last decade. In 2019, 35% of the workforce freelanced, or 57 million people, up from 53 million in 2014, according to a survey by the Freelancers Union. The share of gig workers at US businesses has grown 15% since 2010, a study from the ADP Research Institute showed. But, there have been problems implementing the new program established by the CARES Act, called Pandemic Unemployment Assistance. At the end of April, only 21 states had started paying out benefits to self-employed and gig workers, according to the Labor Department. Read more:'That's where the really big upside is': A CEO overseeing $36 billion pinpoints 7 areas of the market poised to rebound after plummeting as much as 60% this year And, states have been delayed in taking in claims filed for the program. Florida, for example, did not begin accepting applications under PUA until Tuesday, Politico reported. In mid-April, the new system Pennsylvania put in place for PUA crashed due to a flood of new applications, the Philadelphia Inquirer reported Thursday. New York's system crashed as well following a huge surge in claims, Gov. Andrew Cuomo said in a briefing April 21. There are also quirks in the data calculation and collection that sometimes yield results that may not show the full picture. Next week, the April jobs report will be released, including nonfarm payroll information and an updated unemployment rate. As of April 18, economists estimated that the unemployment rate likely spiked to about 20.2% given the surge in UI claims. The next week, however, economists forecast an unemployment rate of 16%, even though claims rose by 3.8 million. This is not because the situation has gotten any better; it's instead the way the data is calculated. To be included in the unemployment count, people have to say that they are actively looking for work. Under the expanded benefits from the CARES Act, people do not have to be actively looking for employment to receive a check, and because of the health crisis, many have put job searches on hold. That technically lowers the unemployment rate, meaning what will be reported for April could be an underrepresentation of how many people are actually out of work in the US. Read more: An investing strategy called 'crisis alpha' designed to thrive during meltdowns just whiffed on the fastest bear market in history. Here's how that's upended a $318 billion industry — and what it means for the future. There could also be further issues with the survey, which depends on the people filling it out to accurately answer questions about employment. Sometimes, as with any survey, respondents don't interpret or answer the questions as intended. In March, the Bureau of Labor Statistics noted that the unemployment rate would've been one percentage point higher — 5.4% instead of 4.4% — if those who marked themselves temporarily absent from work due to "other reasons" had said they were unemployed on temporary layoff. The consequences of such widespread unemployment are dire. Current data shows about one in five American workers is without a job, and as UI claims continue to roll in in the millions, the share will increase. If the alarming rate of layoffs continues, it's likely that about half of American workers will be without a paycheck in May, according to ING international economist James Knightley. It's widely accepted that the US is in a recession, especially after first-quarter gross domestic product fell at a 4.8% annualized rate before the worst months of the coronavirus crisis. Now, economists are weighing what type of recovery may take place. The sweeping unemployment is foreboding, given that US consumption is roughly 70% of GDP. The longer that workers go without paychecks, the longer it will take for the economy to recover. Read more:A former software engineer quit a 6-figure job and started investing in real estate full-time. He shares the popular 5-part strategy he's leveraging and exactly what he looks for in a deal. LoadingSomething is loading. Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story. Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.
2 May 14:28 • Business Insider • https://www.businessinsider.com/us-unemployment-likely-higher-than-jobless-claims-show-coronavirus-jobs-2020-5Rating: 4.40
A mind-boggling 30 million people have filed for unemployment in 6 weeks. There are likely more without jobs.
Job loss stemming from the coronavirus pandemic has been devastating. Economists think there are likely more without jobs that haven’t been captured by the data. What has been reported so far paints a gloomy picture. In just six weeks, 30 million Americans have filed for unemployment insurance. Each weekly report since mid-March has been in the millions – multiple times higher than the worst week of the Great Recession, when 665,000 filed for unemployment insurance. It took only four weeks of the coronavirus pandemic to erase all jobs created since the Great Recession. Now, there are millions more unemployed, signaling that the economic downturn from the coronavirus pandemic will be severe. As terrible as the job loss numbers are, they are only part of the picture. There could be more Americans unemployed, according to economists, as not everyone who lost work has been able to file for benefits. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond. A survey conducted in mid-April by the Economic Policy Institute found that for every 10 people who successfully filed a claim for unemployment insurance, three to four tried to file but were unable to get through the system. In addition, two more didn’t try to apply for UI at all because it was too difficult. “These findings imply the official count of unemployment insurance claims likely drastically understates the extent of employment reductions and the need for economic relief during the coronavirus crisis,” wrote Ben Zipperer and Elise Gould of the EPI. Accounting for the workers who were unable to apply for unemployment, or tried but didn’t get through, the EPI survey found that only about half of potential UI applicants are actually receiving benefits. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond. Applying those findings to the five weeks of unemployment claims from March 15 to April 18, the EPI estimates an additional 8.9 million to 13.9 million could have filed for claims if the process had been easier. To be sure, unemployment benefits have been expanded to include more Americans than ever before. The CARES Act signed into law by President Donald Trump at the end of March extended unemployment benefits to millions of Americans who would’ve been otherwise ineligible, including gig workers, freelancers, and those who are self-employed. This is important, because these groups of non-traditional workers have expanded in the last decade. In 2019, 35% of the workforce freelanced, or 57 million people, up from 53 million in 2014, according to a survey by the Freelancers Union. The share of gig workers at US businesses has grown 15% since 2010, a study from the ADP Research Institute showed. But, there have been problems implementing the new program established by the CARES Act, called Pandemic Unemployment Assistance. At the end of April, only 21 states had started paying out benefits to self-employed and gig workers, according to the Labor Department. Read more:‘That’s where the really big upside is’: A CEO overseeing $36 billion pinpoints 7 areas of the market poised to rebound after plummeting as much as 60% this year And, states have been delayed in taking in claims filed for the program. Florida, for example, did not begin accepting applications under PUA until Tuesday, Politico reported. In mid-April, the new system Pennsylvania put in place for PUA crashed due to a flood of new applications, the Philadelphia Inquirer reported Thursday. New York’s system crashed as well following a huge surge in claims, Gov. Andrew Cuomo said in a briefing April 21. There are also quirks in the data calculation and collection that sometimes yield results that may not show the full picture. Next week, the April jobs report will be released, including nonfarm payroll information and an updated unemployment rate. As of April 18, economists estimated that the unemployment rate likely spiked to about 20.2% given the surge in UI claims. The next week, however, economists forecast an unemployment rate of 16%, even though claims rose by 3.8 million. This is not because the situation has gotten any better; it’s instead the way the data is calculated. To be included in the unemployment count, people have to say that they are actively looking for work. Under the expanded benefits from the CARES Act, people do not have to be actively looking for employment to receive a check, and because of the health crisis, many have put job searches on hold. That technically lowers the unemployment rate, meaning what will be reported for April could be an underrepresentation of how many people are actually out of work in the US. Read more:An investing strategy called ‘crisis alpha’ designed to thrive during meltdowns just whiffed on the fastest bear market in history. Here’s how that’s upended a $318 billion industry – and what it means for the future. There could also be further issues with the survey, which depends on the people filling it out to accurately answer questions about employment. Sometimes, as with any survey, respondents don’t interpret or answer the questions as intended. In March, the Bureau of Labor Statistics noted that the unemployment rate would’ve been one percentage point higher – 5.4% instead of 4.4% – if those who marked themselves temporarily absent from work due to “other reasons” had said they were unemployed on temporary layoff. The consequences of such widespread unemployment are dire. Current data shows about one in five American workers is without a job, and as UI claims continue to roll in in the millions, the share will increase. If the alarming rate of layoffs continues, it’s likely that about half of American workers will be without a paycheck in May, according to ING international economist James Knightley. It’s widely accepted that the US is in a recession, especially after first-quarter gross domestic product fell at a 4.8% annualized rate before the worst months of the coronavirus crisis. Now, economists are weighing what type of recovery may take place. The sweeping unemployment is foreboding, given that US consumption is roughly 70% of GDP. The longer that workers go without paychecks, the longer it will take for the economy to recover. Read more:A former software engineer quit a 6-figure job and started investing in real estate full-time. He shares the popular 5-part strategy he’s leveraging and exactly what he looks for in a deal.
2 May 15:55 • Business Insider Nederland • https://www.businessinsider.nl/us-unemployment-likely-higher-than-jobless-claims-show-coronavirus-jobs-2020-5/Rating: 0.30
A mind-boggling 30 million people have filed for unemployment in 6 weeks. There are likely more without jobs.
Job loss stemming from the coronavirus pandemic has been devastating. Economists think there are likely more without jobs that haven’t been captured by the data. What has been reported so far paints a gloomy picture. In just six weeks, 30 million Americans have filed for unemployment insurance. Each weekly report since mid-March has been in the millions – multiple times higher than the worst week of the Great Recession, when 665,000 filed for unemployment insurance. It took only four weeks of the coronavirus pandemic to erase all jobs created since the Great Recession. Now, there are millions more unemployed, signaling that the economic downturn from the coronavirus pandemic will be severe. As terrible as the job loss numbers are, they are only part of the picture. There could be more Americans unemployed, according to economists, as not everyone who lost work has been able to file for benefits. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode A survey conducted in mid-April by the Economic Policy Institute found that for every 10 people who successfully filed a claim for unemployment insurance, three to four tried to file but were unable to get through the system. In addition, two more didn’t try to apply for UI at all because it was too difficult. “These findings imply the official count of unemployment insurance claims likely drastically understates the extent of employment reductions and the need for economic relief during the coronavirus crisis,” wrote Ben Zipperer and Elise Gould of the EPI. Accounting for the workers who were unable to apply for unemployment, or tried but didn’t get through, the EPI survey found that only about half of potential UI applicants are actually receiving benefits. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond. Applying those findings to the five weeks of unemployment claims from March 15 to April 18, the EPI estimates an additional 8.9 million to 13.9 million could have filed for claims if the process had been easier. To be sure, unemployment benefits have been expanded to include more Americans than ever before. The CARES Act signed into law by President Donald Trump at the end of March extended unemployment benefits to millions of Americans who would’ve been otherwise ineligible, including gig workers, freelancers, and those who are self-employed. This is important, because these groups of non-traditional workers have expanded in the last decade. In 2019, 35% of the workforce freelanced, or 57 million people, up from 53 million in 2014, according to a survey by the Freelancers Union. The share of gig workers at US businesses has grown 15% since 2010, a study from the ADP Research Institute showed. But, there have been problems implementing the new program established by the CARES Act, called Pandemic Unemployment Assistance. At the end of April, only 21 states had started paying out benefits to self-employed and gig workers, according to the Labor Department. Read more:‘That’s where the really big upside is’: A CEO overseeing $36 billion pinpoints 7 areas of the market poised to rebound after plummeting as much as 60% this year And, states have been delayed in taking in claims filed for the program. Florida, for example, did not begin accepting applications under PUA until Tuesday, Politico reported. In mid-April, the new system Pennsylvania put in place for PUA crashed due to a flood of new applications, the Philadelphia Inquirer reported Thursday. New York’s system crashed as well following a huge surge in claims, Gov. Andrew Cuomo said in a briefing April 21. There are also quirks in the data calculation and collection that sometimes yield results that may not show the full picture. Next week, the April jobs report will be released, including nonfarm payroll information and an updated unemployment rate. As of April 18, economists estimated that the unemployment rate likely spiked to about 20.2% given the surge in UI claims. The next week, however, economists forecast an unemployment rate of 16%, even though claims rose by 3.8 million. This is not because the situation has gotten any better; it’s instead the way the data is calculated. To be included in the unemployment count, people have to say that they are actively looking for work. Under the expanded benefits from the CARES Act, people do not have to be actively looking for employment to receive a check, and because of the health crisis, many have put job searches on hold. That technically lowers the unemployment rate, meaning what will be reported for April could be an underrepresentation of how many people are actually out of work in the US. Read more:An investing strategy called ‘crisis alpha’ designed to thrive during meltdowns just whiffed on the fastest bear market in history. Here’s how that’s upended a $318 billion industry – and what it means for the future. There could also be further issues with the survey, which depends on the people filling it out to accurately answer questions about employment. Sometimes, as with any survey, respondents don’t interpret or answer the questions as intended. In March, the Bureau of Labor Statistics noted that the unemployment rate would’ve been one percentage point higher – 5.4% instead of 4.4% – if those who marked themselves temporarily absent from work due to “other reasons” had said they were unemployed on temporary layoff. The consequences of such widespread unemployment are dire. Current data shows about one in five American workers is without a job, and as UI claims continue to roll in in the millions, the share will increase. If the alarming rate of layoffs continues, it’s likely that about half of American workers will be without a paycheck in May, according to ING international economist James Knightley. It’s widely accepted that the US is in a recession, especially after first-quarter gross domestic product fell at a 4.8% annualized rate before the worst months of the coronavirus crisis. Now, economists are weighing what type of recovery may take place. The sweeping unemployment is foreboding, given that US consumption is roughly 70% of GDP. The longer that workers go without paychecks, the longer it will take for the economy to recover. Read more:A former software engineer quit a 6-figure job and started investing in real estate full-time. He shares the popular 5-part strategy he’s leveraging and exactly what he looks for in a deal.
2 May 14:28 • Business Insider Malaysia • https://www.businessinsider.my/us-unemployment-likely-higher-than-jobless-claims-show-coronavirus-jobs-2020-5Rating: 0.30
Solar, wind energy struggle as coronavirus takes toll
2 May 22:28
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Solar, wind energy struggle as coronavirus takes toll
The U.S. renewable energy industry is reeling from the new coronavirus pandemic, which has delayed construction, put thousands of skilled laborers out of work and sowed doubts about solar and wind projects on the drawing board. In locked-down California, some local agencies that issue permits for new work closed temporarily, and some solar companies furloughed installers. In New York and New Jersey, SunPower CEO Thomas Werner halted installation of more than 400 residential solar systems, fearing for his workers' safety. As many as 120,000 jobs in solar and 35,000 in wind could be lost, trade groups say. "There are many smaller companies going out of business as we speak," said Abigail Ross Hopper, president of the Solar Energy Industries Association. "Up to half our jobs are at risk." Leaders are confident the future is bright. But the worldwide slowdown is delaying a transition to cleaner energy that scientists say is not happening quickly enough to curtail climate change. Even as some states move toward reopening, executives fear diminished incomes and work disrupted by layoffs and social distancing will do lasting damage. The wind industry is plagued by slowdowns in obtaining parts from overseas, getting them to job sites and constructing new turbines. "The industry was on a tremendous roll right up until the last month or two," said Tom Kiernan, CEO of the American Wind Energy Association. "That reversal is stunning and problematic." Residential solar business has been hit especially hard, Hopper said, with door-to-door sales no longer feasible and potential customers watching their wallets. Deals with commercial buyers also have slumped. New solar installations could be 17% lower worldwide than expected this year, and wind turbine manufacturing could fall up to 20%, according to consulting firm Wood Mackenzie. "Pre-pandemic, there were great dreams and aspirations for a record-setting year," said Paul Gaynor, CEO of Longroad Energy, a utility-scale wind and solar developer. "I'm sure we're not going to have that." Fossil fuels such as natural gas and coal remain the leading providers of the nation's electricity, with nuclear power another key contributor, according to the U.S. Energy Information Administration. But renewable sources—wind, solar, hydroelectric, biomass and geothermal—have jumped in the last decade as production costs have fallen and many states have ordered utilities to make greater use of renewable energy to reduce greenhouse gas emissions. Renewables produced nearly one-fifth of the country's energy last year. The EIA predicts renewable energy, despite recent setbacks, will grow 11% this year—an indication of the sector's strong surge before the economy tanked. Meanwhile, coal-fired power is expected to decline 20% and gas generation to grow just 1%. The setback for renewable energy still has been painful—even in California, where residential solar demand took off due to frequent blackouts and state laws requiring to new homes to produce as much energy as they consume. "A lot of companies are just trying everything they can to just limp along and keep their workforce," said Bernadette Del Chiaro, executive director of the California Solar and Storage Association. All 20 employees were temporarily furloughed at Cinnamon Energy Systems, which sells residential and commercial solar systems in Northern California. "I'm sure we'll bounce back, just smaller," CEO Barry Cinnamon said, adding that people might not spend as much as they once did, because their income will likely be down. "Whether that's months or years, nobody knows." Luminalt, a San Francisco solar company, furloughed most of its 40 employees. And when work resumes, CEO Jeanine Cotter expects that projects will take longer and cost more to keep installers safe. "Think about working on a roof with a mask," Cotter said. "And think about not being able to pass a power tool to somebody unless you disinfect it before you pass it on." Since his furlough in mid-March, Luminalt solar technician Tom Hicks has been collecting benefits but no salary—and he's worried about mortgage payments. "My 401k got crushed by 30% just like everyone else," said Hicks, 55. "How much time do I have to recover?" Still, there are hopeful signs. The Boston-based developer Longroad recently began a utility-scale solar project in California and secured new financing for another in Texas. Sunnova Energy International, a Houston-based residential solar and energy storage service provider, is doing more videoconferencing and fewer in-person dealings with customers. But CEO John Berger said, "Our installations are still moving ahead, service is still moving ahead, we still see customers paying us." In eastern Kansas, construction has continued at Southern Power's 200-megawatt Reading Wind Facility despite delayed parts shipments, company spokeswoman Helen Northcutt White said. Sixty-two turbines are planned for the facility, scheduled to go online in mid-May. The wind and solar industries have asked lawmakers and federal agencies for help, including an extension of their four-year deadlines for completing projects without losing tax benefits. Similar assistance was granted during the 2008-09 recession. The renewable energy industry's health is crucial to improving the climate and to a strong economic recovery, said Matthew Davis, legislative director for the League of Conservation Voters. "These businesses, these workers deserve immediate relief," Davis said. It's important to push for more responsible energy use as the economy reopens worldwide, said Andrew Pershing, chief scientific officer with Gulf of Maine Research Institute in Portland, Maine, which studies climate change and oceans. "My hope is that we would use this as an opportunity to build toward an economy that doesn't depend on burning coal and oil and that is more resilient to the climate impacts that are heading our way," Pershing said.
2 May 22:28 • Tech Xplore • https://techxplore.com/news/2020-05-solar-energy-struggle-coronavirus-toll.htmlRating: 0.31
Solar, wind energy struggle as coronavirus takes toll
NEW YORK (AP) — The US renewable energy industry is reeling from the new coronavirus pandemic, which has delayed construction, put thousands of skilled labourers out of work and sowed doubts about solar and wind projects on the drawing board. In locked-down California, some local agencies that issue permits for new work closed temporarily, and some solar companies furloughed installers. In New York and New Jersey, SunPower CEO Thomas Werner halted installation of more than 400 residential solar systems, fearing for his workers' safety. As many as 120,000 jobs in solar and 35,000 in wind could be lost, trade groups say. “There are many smaller companies going out of business as we speak,” said Abigail Ross Hopper, president of the Solar Energy Industries Association. “Up to half our jobs are at risk.” Leaders are confident the future is bright. But the worldwide slowdown is delaying a transition to cleaner energy that scientists say is not happening quickly enough to curtail climate change. Even as some states move toward reopening, executives fear diminished incomes and work disrupted by lay-offs and social distancing will do lasting damage. The wind industry is plagued by slowdowns in obtaining parts from overseas, getting them to job sites and constructing new turbines. “The industry was on a tremendous roll right up until the last month or two,” said Tom Kiernan, CEO of the American Wind Energy Association. “That reversal is stunning and problematic.” Residential solar business has been hit especially hard, Hopper said, with door-to-door sales no longer feasible and potential customers watching their wallets. Deals with commercial buyers also have slumped. New solar installations could be 17 per cent lower worldwide than expected this year, and wind turbine manufacturing could fall up to 20 per cent, according to consulting firm Wood Mackenzie. “Pre-pandemic, there were great dreams and aspirations for a record-setting year,” said Paul Gaynor, CEO of Longroad Energy, a utility-scale wind and solar developer. “I'm sure we're not going to have that.” Fossil fuels such as natural gas and coal remain the leading providers of the nation's electricity, with nuclear power another key contributor, according to the US Energy Information Administration (EIA). But renewable sources — wind, solar, hydroelectric, biomass and geothermal — have jumped in the last decade as production costs have fallen and many states have ordered utilities to make greater use of renewable energy to reduce greenhouse gas emissions. Renewables produced nearly one-fifth of the country's energy last year. The EIA predicts renewable energy, despite recent setbacks, will grow 11 per cent this year — an indication of the sector's strong surge before the economy tanked. Meanwhile, coal-fired power is expected to decline 20 per cent and gas generation to grow just one per cent. The setback for renewable energy still has been painful — even in California, where residential solar demand took off due to frequent blackouts and state laws requiring to new homes to produce as much energy as they consume. “A lot of companies are just trying everything they can to just limp along and keep their workforce,” said Bernadette Del Chiaro, executive director of the California Solar and Storage Association. All 20 employees were temporarily furloughed at Cinnamon Energy Systems, which sells residential and commercial solar systems in Northern California. “I'm sure we'll bounce back, just smaller,” CEO Barry Cinnamon said, adding that people might not spend as much as they once did, because their income will likely be down. “Whether that's months or years, nobody knows.” Luminalt, a San Francisco solar company, furloughed most of its 40 employees. And when work resumes, CEO Jeanine Cotter expects that projects will take longer and cost more to keep installers safe. “Think about working on a roof with a mask,” Cotter said. “And think about not being able to pass a power tool to somebody unless you disinfect it before you pass it on.” Since his furlough in mid-March, Luminalt solar technician Tom Hicks has been collecting benefits but no salary — and he's worried about mortgage payments. “My 401k got crushed by 30 per cent just like everyone else,” said Hicks, 55. “How much time do I have to recover?” Still, there are hopeful signs. The Boston-based developer Longroad recently began a utility-scale solar project in California and secured new financing for another in Texas. Sunnova Energy International, a Houston-based residential solar and energy storage service provider, is doing more videoconferencing and fewer in-person dealings with customers. But CEO John Berger said, “Our installations are still moving ahead, service is still moving ahead, we still see customers paying us.” In eastern Kansas, construction has continued at Southern Power's 200-megawatt Reading Wind Facility despite delayed parts shipments, company spokeswoman Helen Northcutt White said. Sixty-two turbines are planned for the facility, scheduled to go online in mid-May. The wind and solar industries have asked lawmakers and federal agencies for help, including an extension of their four-year deadlines for completing projects without losing tax benefits. Similar assistance was granted during the 2008-09 recession. The renewable energy industry's health is crucial to improving the climate and to a strong economic recovery, said Matthew Davis, legislative director for the League of Conservation Voters. “These businesses, these workers deserve immediate relief,” Davis said. It's important to push for more responsible energy use as the economy reopens worldwide, said Andrew Pershing, chief scientific officer with Gulf of Maine Research Institute in Portland, Maine, which studies climate change and oceans. “My hope is that we would use this as an opportunity to build toward an economy that doesn't depend on burning coal and oil and that is more resilient to the climate impacts that are heading our way,” Pershing said.
3 May 00:00 • Jamaica Observer • http://www.jamaicaobserver.com/news/solar-wind-energy-struggle-as-coronavirus-takes-toll_193370?profile=1470Rating: 0.46
Solar and wind energy struggle as coronavirus takes toll | Honolulu Star-Advertiser
NEW YORK >> The U.S. renewable energy industry is reeling from the new coronavirus pandemic, which has delayed construction, put thousands of skilled laborers out of work and sowed doubts about solar and wind projects on the drawing board. In locked-down California, some local agencies that issue permits for new work closed temporarily, and some solar companies furloughed installers. In New York and New Jersey, SunPower CEO Thomas Werner halted installation of more than 400 residential solar systems, fearing for his workers’ safety. As many as 120,000 jobs in solar and 35,000 in wind could be lost, trade groups say. “There are many smaller companies going out of business as we speak,” said Abigail Ross Hopper, president of the Solar Energy Industries Association. “Up to half our jobs are at risk.” Leaders are confident the future is bright. But the worldwide slowdown is delaying a transition to cleaner energy that scientists say is not happening quickly enough to curtail climate change. Even as some states move toward reopening, executives fear diminished incomes and work disrupted by layoffs and social distancing will do lasting damage. The wind industry is plagued by slowdowns in obtaining parts from overseas, getting them to job sites and constructing new turbines. “The industry was on a tremendous roll right up until the last month or two,” said Tom Kiernan, CEO of the American Wind Energy Association. “That reversal is stunning and problematic.” Residential solar business has been hit especially hard, Hopper said, with door-to-door sales no longer feasible and potential customers watching their wallets. Deals with commercial buyers also have slumped. New solar installations could be 17% lower worldwide than expected this year, and wind turbine manufacturing could fall up to 20%, according to consulting firm Wood Mackenzie. “Pre-pandemic, there were great dreams and aspirations for a record-setting year,” said Paul Gaynor, CEO of Longroad Energy, a utility-scale wind and solar developer. “I’m sure we’re not going to have that.” Fossil fuels such as natural gas and coal remain the leading providers of the nation’s electricity, with nuclear power another key contributor, according to the U.S. Energy Information Administration. But renewable sources — wind, solar, hydroelectric, biomass and geothermal — have jumped in the last decade as production costs have fallen and many states have ordered utilities to make greater use of renewable energy to reduce greenhouse gas emissions. Renewables produced nearly one-fifth of the country’s energy last year. The EIA predicts renewable energy, despite recent setbacks, will grow 11% this year — an indication of the sector’s strong surge before the economy tanked. Meanwhile, coal-fired power is expected to decline 20% and gas generation to grow just 1%. The setback for renewable energy still has been painful — even in California, where residential solar demand took off due to frequent blackouts and state laws requiring to new homes to produce as much energy as they consume. “A lot of companies are just trying everything they can to just limp along and keep their workforce,” said Bernadette Del Chiaro, executive director of the California Solar and Storage Association. All 20 employees were temporarily furloughed at Cinnamon Energy Systems, which sells residential and commercial solar systems in Northern California. “I’m sure we’ll bounce back, just smaller,” CEO Barry Cinnamon said, adding that people might not spend as much as they once did, because their income will likely be down. “Whether that’s months or years, nobody knows.” Luminalt, a San Francisco solar company, furloughed most of its 40 employees. And when work resumes, CEO Jeanine Cotter expects that projects will take longer and cost more to keep installers safe. “Think about working on a roof with a mask,” Cotter said. “And think about not being able to pass a power tool to somebody unless you disinfect it before you pass it on.” Since his furlough in mid-March, Luminalt solar technician Tom Hicks has been collecting benefits but no salary — and he’s worried about mortgage payments. “My 401k got crushed by 30% just like everyone else,” said Hicks, 55. “How much time do I have to recover?” Still, there are hopeful signs. The Boston-based developer Longroad recently began a utility-scale solar project in California and secured new financing for another in Texas. Sunnova Energy International, a Houston-based residential solar and energy storage service provider, is doing more videoconferencing and fewer in-person dealings with customers. But CEO John Berger said, “Our installations are still moving ahead, service is still moving ahead, we still see customers paying us.” In eastern Kansas, construction has continued at Southern Power’s 200-megawatt Reading Wind Facility despite delayed parts shipments, company spokeswoman Helen Northcutt White said. Sixty-two turbines are planned for the facility, scheduled to go online in mid-May. The wind and solar industries have asked lawmakers and federal agencies for help, including an extension of their four-year deadlines for completing projects without losing tax benefits. Similar assistance was granted during the 2008-09 recession. The renewable energy industry’s health is crucial to improving the climate and to a strong economic recovery, said Matthew Davis, legislative director for the League of Conservation Voters. “These businesses, these workers deserve immediate relief,” Davis said. It’s important to push for more responsible energy use as the economy reopens worldwide, said Andrew Pershing, chief scientific officer with Gulf of Maine Research Institute in Portland, Maine, which studies climate change and oceans. “My hope is that we would use this as an opportunity to build toward an economy that doesn’t depend on burning coal and oil and that is more resilient to the climate impacts that are heading our way,” Pershing said.
2 May 16:50 • Star-Advertiser • https://www.staradvertiser.com/2020/05/02/breaking-news/solar-and-wind-energy-struggle-as-coronavirus-takes-toll/Rating: 0.30
Solar, wind energy struggle as coronavirus takes toll
NEW YORK — The U.S. renewable energy industry is reeling from the new coronavirus pandemic, which has delayed construction, put thousands of skilled labourers out of work and sowed doubts about solar and wind projects on the drawing board. In locked-down California, some local agencies that issue permits for new work closed temporarily, and some solar companies furloughed installers. In New York and New Jersey, SunPower CEO Thomas Werner halted installation of more than 400 residential solar systems, fearing for his workers’ safety. As many as 120,000 jobs in solar and 35,000 in wind could be lost, trade groups say. “There are many smaller companies going out of business as we speak,” said Abigail Ross Hopper, president of the Solar Energy Industries Association. “Up to half our jobs are at risk.” Leaders are confident the future is bright. But the worldwide slowdown is delaying a transition to cleaner energy that scientists say is not happening quickly enough to curtail climate change. Even as some states move toward reopening, executives fear diminished incomes and work disrupted by layoffs and social distancing will do lasting damage. The wind industry is plagued by slowdowns in obtaining parts from overseas, getting them to job sites and constructing new turbines. “The industry was on a tremendous roll right up until the last month or two,” said Tom Kiernan, CEO of the American Wind Energy Association. ”That reversal is stunning and problematic.” Residential solar business has been hit especially hard, Hopper said, with door-to-door sales no longer feasible and potential customers watching their wallets. Deals with commercial buyers also have slumped. New solar installations could be 17% lower worldwide than expected this year, and wind turbine manufacturing could fall up to 20%, according to consulting firm Wood Mackenzie. “Pre-pandemic, there were great dreams and aspirations for a record-setting year,” said Paul Gaynor, CEO of Longroad Energy, a utility-scale wind and solar developer. “I’m sure we’re not going to have that.” Fossil fuels such as natural gas and coal remain the leading providers of the nation’s electricity, with nuclear power another key contributor, according to the U.S. Energy Information Administration. But renewable sources — wind, solar, hydroelectric, biomass and geothermal — have jumped in the last decade as production costs have fallen and many states have ordered utilities to make greater use of renewable energy to reduce greenhouse gas emissions. Renewables produced nearly one-fifth of the country’s energy last year. The EIA predicts renewable energy, despite recent setbacks, will grow 11% this year — an indication of the sector’s strong surge before the economy tanked. Meanwhile, coal-fired power is expected to decline 20% and gas generation to grow just 1%. The setback for renewable energy still has been painful — even in California, where residential solar demand took off due to frequent blackouts and state laws requiring to new homes to produce as much energy as they consume. “A lot of companies are just trying everything they can to just limp along and keep their workforce,” said Bernadette Del Chiaro, executive director of the California Solar and Storage Association. All 20 employees were temporarily furloughed at Cinnamon Energy Systems, which sells residential and commercial solar systems in Northern California. “I’m sure we’ll bounce back, just smaller,” CEO Barry Cinnamon said, adding that people might not spend as much as they once did, because their income will likely be down. “Whether that’s months or years, nobody knows.” Luminalt, a San Francisco solar company, furloughed most of its 40 employees. And when work resumes, CEO Jeanine Cotter expects that projects will take longer and cost more to keep installers safe. “Think about working on a roof with a mask,” Cotter said. “And think about not being able to pass a power tool to somebody unless you disinfect it before you pass it on.” Since his furlough in mid-March, Luminalt solar technician Tom Hicks has been collecting benefits but no salary — and he’s worried about mortgage payments. “My 401k got crushed by 30% just like everyone else,” said Hicks, 55. “How much time do I have to recover?” Still, there are hopeful signs. The Boston-based developer Longroad recently began a utility-scale solar project in California and secured new financing for another in Texas. Sunnova Energy International, a Houston-based residential solar and energy storage service provider, is doing more videoconferencing and fewer in-person dealings with customers. But CEO John Berger said, “Our installations are still moving ahead, service is still moving ahead, we still see customers paying us.” In eastern Kansas, construction has continued at Southern Power’s 200-megawatt Reading Wind Facility despite delayed parts shipments, company spokeswoman Helen Northcutt White said. Sixty-two turbines are planned for the facility, scheduled to go online in mid-May. The wind and solar industries have asked lawmakers and federal agencies for help, including an extension of their four-year deadlines for completing projects without losing tax benefits. Similar assistance was granted during the 2008-09 recession. The renewable energy industry’s health is crucial to improving the climate and to a strong economic recovery, said Matthew Davis, legislative director for the League of Conservation Voters. “These businesses, these workers deserve immediate relief,” Davis said. It’s important to push for more responsible energy use as the economy reopens worldwide, said Andrew Pershing, chief scientific officer with Gulf of Maine Research Institute in Portland, Maine, which studies climate change and oceans. “My hope is that we would use this as an opportunity to build toward an economy that doesn’t depend on burning coal and oil and that is more resilient to the climate impacts that are heading our way,” Pershing said. Flesher reported from Traverse City, Mich. and Whittle reported from Portland, Me. On Twitter follow @cbussewitz, @JohnFlesher and @pxwhittle. Cathy Bussewitz, John Flesher And Patrick Whittle, The Associated Press
2 May 15:39 • City NEWS 1130 • https://www.citynews1130.com/2020/05/02/solar-wind-energy-struggle-as-coronavirus-takes-toll/Rating: 0.77
Coronavirus pandemic could place hundreds of thousands of jobs in wind, solar energy at risk
Coronavirus lockdowns across the U.S. may be helping clear the air of pollution, but the pandemic has also led to a setback for the country's renewable energy industry, The Associated Press reports. The wind and solar sectors were on good footing before the pandemic struck but now trade groups are predicting as many as 120,000 jobs in solar and 35,000 in wind could be lost when all is said and done. "There are many smaller companies going out of business as we speak," said Abigail Ross Harper, president of the Solar Energy Industries Association. "Up to half our jobs are at risk." The wind industry is struggling to get parts from overseas, while residential solar businesses are taking the brunt of the hit in that industry since door-to-door sales aren't possible anymore, and individual customers are being cautious during the downturn. Subsequently, new solar installations could drop 17 percent this year, while wind manufacturing could fall up to 20 percent, consulting firm Wood McKenzie estimates. "The industry was on a tremendous roll right up until the last month or two," said Tom Kiernan, CEO of the American Wind Energy Association. "That reversal is stunning and problematic." But while the pandemic has caused the industry pain, there's a sense things will turn around again in the long run. Andrew Pershing, the chief scientific officer with Gulf of Maine Research Institute in Portland, Maine, for example, hopes the pandemic eventually results in an economy "that doesn't depend on burning coal and oil." Read more at The Associated Press.
2 May 17:14 • The Week • https://theweek.com/speedreads/912431/coronavirus-pandemic-could-place-hundreds-thousands-jobs-wind-solar-energy-riskRating: 0.58
Wine businesses and smaller restaurants are getting creative to stay afloat, according to a master sommelier — but even as alcohol purchases boom the industry needs our support
2 May 14:00
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Wine businesses and smaller restaurants are getting creative to stay afloat, according to a master sommelier — but even as alcohol purchases boom the industry needs our support
With a substantial amount of lockdown time under our belts, people around the world have found creative ways to remain social, active, and entertained. Virtual cocktail hours and dinner parties, live educational tastings, and all-around beverage discourse are filling social media airwaves. There is no way to replace genuine human interactions: a necessity for a healthy life. However, this crisis has reminded many of us that at the center of human contact often lies a great drink. And continuing to drink well, learn well, and do well by the wine industry in this time is not only possible, but imperative. Over the past decade, wine has seen a growth in consumer demand for information and validation. With the rise in popularity of the sommelier profession, access to expert advice has grown, such as on SommTV. Winemakers, retail buyers, trained sommeliers, wine journalists, and enthusiast influencers have all become more prominent, widening a previously narrow field of critics whose scores focused on retail shelves and an endless sea of Yelp-like reviews on wine apps like Vivino. Consumers seek greater interactivity and down-to-earth advice (try Crunchy Red Fruit or SommSelect). Restaurants remain the treasure trove, attracting enthusiasts of all levels looking to quench their thirst for wine experiences at restaurants. Enter COVID-19. Since the novel coronavirus took hold, alcohol sales in the US have actually boomed. So much so that the first 30 days of quarantine resembled the alcohol-fuelled holiday mania of December. But almost all that business is being funnelled through established retail supply chains; a small percentage of restaurants and bars are attempting to create in-home experiences to stay afloat. This all goes beyond the sudden deluge of social media hashtags like #quarantinecocktail — this is about supporting an industry that is at risk of faltering. For restaurants without an already-established retail arm, creativity and agility have been the only ways to survive. Robust social media marketing supported by rich online content is the key for these businesses to tap into the current retail boom. Master Sommelier Laura Fiorvanti — one of 35 women in the world with this prestigious title — leads Corkbuzz group. Based in New York and North Carolina, she is taking their offerings online. With streamed versions of her in-house tastings matched with wine packs that can be purchased and shipped from the Corkbuzz cellar, she's turning what was once thought of as an in-person-only event into something that's not only more affordable, but also can be done in your own home. National retailer and Vermont wine bar Dedalus has also curated a wide variety of online entertainment that traverses everything from one-on-one happy hours with notable sommeliers to foundational lessons on cheese and its best pairings to fun-loving wine and DJ sets. The New York branch of La Compagnie de Vins Surnaturels, with managing partner Caleb Ganzer, has taken to YouTube with their in-house "Wine Boot Camp," popular with the millennial drinker given that they have over 1,000 people log on at a time, and are able to deliver featured wines to the local area thanks to temporary retail licenses being made available to restaurants. (States have banned the on-premise sale and consumption of food and alcohol, they authorized take-away and delivery retail sales for all current liquor license holders.) For other restaurants looking for ways to thrive through the pandemic, focusing on the in-home experience is key. Whether it's a ready-to cook dinner paired with beverages, individually bottled cocktails, or working with sommeliers and winemakers to create video wine tastings, there needs to be an effort to engage with people in their homes. Though it may be too soon to tell what combination of virtual content will allow some to surge forward, what is clear is the need to help preserve the restaurant world. Stark numbers overshadow the hope that some restaurants have. According to the Independent Restaurant Coalition and the James Beard Foundation, over 500,000 restaurants have closed temporarily, causing the loss of over 11 million jobs. Only 20% of those closed restaurants believe they'll be able to afford to come back once the new normal sets in. While a few economic thinkers believe this will just result in a great re-shuffling, others fear that it will expedite the homogenization of American restaurants: a patchwork of individual small businesses that represents the largest private industry employer in the US. Large, online-only retailers have seen the largest spike in their revenue during the novel coronavirus era, jumping three-figure percentage points in just days. They represent big discounts on large-production wines and a low-risk comfort zone — purchasing that arrives at your door with zero human interaction. It's these inherent pillars that big businesses are built on, and it's working. If there was ever a moment to support small business, now is the time. All restaurants were deemed as essential businesses. If they haven't shuttered, takeout food and beverage is the only way they are surviving. If someone wants to buy a bottle of wine, check out what is available at a local restaurant first, then a local wine shop. Some restaurants have turned into grocers that support local farms and butchers. Anything bought here will be fresher and of better quality than what would be found at a supermarket. Lastly, if looking to donate, Frontline Foods and the Independent Restaurant Coalition are the most secure and effective avenues. If you can think of a restaurant or small retail shop where you thoroughly enjoyed their hospitality, then seek out that place and patronize them. Chances are, they're scrambling to pack wine and food to-go orders so they can one day reopen their doors and welcome you home. Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story. Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.
2 May 14:00 • Business Insider • https://www.businessinsider.com/how-wine-businesses-surviving-coronavirus-master-sommelier-support-local-2020-5Rating: 4.40
Wine businesses and smaller restaurants are getting creative to stay afloat, according to a master sommelier — but even as alcohol purchases boom the industry needs our support
With a substantial amount of lockdown time under our belts, people around the world have found creative ways to remain social, active, and entertained. Virtual cocktail hours and dinner parties, live educational tastings, and all-around beverage discourse are filling social media airwaves. There is no way to replace genuine human interactions: a necessity for a healthy life. However, this crisis has reminded many of us that at the center of human contact often lies a great drink. And continuing to drink well, learn well, and do well by the wine industry in this time is not only possible, but imperative. Over the past decade, wine has seen a growth in consumer demand for information and validation. With the rise in popularity of the sommelier profession, access to expert advice has grown, such as on SommTV. Winemakers, retail buyers, trained sommeliers, wine journalists, and enthusiast influencers have all become more prominent, widening a previously narrow field of critics whose scores focused on retail shelves and an endless sea of Yelp-like reviews on wine apps like Vivino. Consumers seek greater interactivity and down-to-earth advice (try Crunchy Red Fruit or SommSelect). Restaurants remain the treasure trove, attracting enthusiasts of all levels looking to quench their thirst for wine experiences at restaurants. Enter COVID-19. Since the novel coronavirus took hold, alcohol sales in the US have actually boomed. So much so that the first 30 days of quarantine resembled the alcohol-fuelled holiday mania of December. But almost all that business is being funnelled through established retail supply chains; a small percentage of restaurants and bars are attempting to create in-home experiences to stay afloat. This all goes beyond the sudden deluge of social media hashtags like #quarantinecocktail – this is about supporting an industry that is at risk of faltering. For restaurants without an already-established retail arm, creativity and agility have been the only ways to survive. Robust social media marketing supported by rich online content is the key for these businesses to tap into the current retail boom. Master Sommelier Laura Fiorvanti – one of 35 women in the world with this prestigious title – leads Corkbuzz group. Based in New York and North Carolina, she is taking their offerings online. With streamed versions of her in-house tastings matched with wine packs that can be purchased and shipped from the Corkbuzz cellar, she’s turning what was once thought of as an in-person-only event into something that’s not only more affordable, but also can be done in your own home. National retailer and Vermont wine bar Dedalus has also curated a wide variety of online entertainment that traverses everything from one-on-one happy hours with notable sommeliers to foundational lessons on cheese and its best pairings to fun-loving wine and DJ sets. The New York branch of La Compagnie de Vins Surnaturels, with managing partner Caleb Ganzer, has taken to YouTube with their in-house “Wine Boot Camp,” popular with the millennial drinker given that they have over 1,000 people log on at a time, and are able to deliver featured wines to the local area thanks to temporary retail licenses being made available to restaurants. (States have banned the on-premise sale and consumption of food and alcohol, they authorized take-away and delivery retail sales for all current liquor license holders.) For other restaurants looking for ways to thrive through the pandemic, focusing on the in-home experience is key. Whether it’s a ready-to cook dinner paired with beverages, individually bottled cocktails, or working with sommeliers and winemakers to create video wine tastings, there needs to be an effort to engage with people in their homes. Though it may be too soon to tell what combination of virtual content will allow some to surge forward, what is clear is the need to help preserve the restaurant world. Stark numbers overshadow the hope that some restaurants have. According to the Independent Restaurant Coalition and the James Beard Foundation, over 500,000 restaurants have closed temporarily, causing the loss of over 11 million jobs. Only 20% of those closed restaurants believe they’ll be able to afford to come back once the new normal sets in. While a few economic thinkers believe this will just result in a great re-shuffling, others fear that it will expedite the homogenization of American restaurants: a patchwork of individual small businesses that represents the largest private industry employer in the US. Large, online-only retailers have seen the largest spike in their revenue during the novel coronavirus era, jumping three-figure percentage points in just days. They represent big discounts on large-production wines and a low-risk comfort zone – purchasing that arrives at your door with zero human interaction. It’s these inherent pillars that big businesses are built on, and it’s working. If there was ever a moment to support small business, now is the time. All restaurants were deemed as essential businesses. If they haven’t shuttered, takeout food and beverage is the only way they are surviving. If someone wants to buy a bottle of wine, check out what is available at a local restaurant first, then a local wine shop. Some restaurants have turned into grocers that support local farms and butchers. Anything bought here will be fresher and of better quality than what would be found at a supermarket. Lastly, if looking to donate, Frontline Foods and the Independent Restaurant Coalition are the most secure and effective avenues. If you can think of a restaurant or small retail shop where you thoroughly enjoyed their hospitality, then seek out that place and patronize them. Chances are, they’re scrambling to pack wine and food to-go orders so they can one day reopen their doors and welcome you home.
2 May 16:05 • Business Insider Nederland • https://www.businessinsider.nl/how-wine-businesses-surviving-coronavirus-master-sommelier-support-local-2020-5/Rating: 0.30
Wine businesses and smaller restaurants are getting creative to stay afloat, according to a master sommelier — but even as alcohol purchases boom the industry needs our support
With a substantial amount of lockdown time under our belts, people around the world have found creative ways to remain social, active, and entertained. Virtual cocktail hours and dinner parties, live educational tastings, and all-around beverage discourse are filling social media airwaves. There is no way to replace genuine human interactions: a necessity for a healthy life. However, this crisis has reminded many of us that at the centre of human contact often lies a great drink. And continuing to drink well, learn well, and do well by the wine industry in this time is not only possible, but imperative. Over the past decade, wine has seen a growth in consumer demand for information and validation. With the rise in popularity of the sommelier profession, access to expert advice has grown, such as on SommTV. Winemakers, retail buyers, trained sommeliers, wine journalists, and enthusiast influencers have all become more prominent, widening a previously narrow field of critics whose scores focused on retail shelves and an endless sea of Yelp-like reviews on wine apps like Vivino. Consumers seek greater interactivity and down-to-earth advice (try Crunchy Red Fruit or SommSelect). Restaurants remain the treasure trove, attracting enthusiasts of all levels looking to quench their thirst for wine experiences at restaurants. Enter COVID-19. Since the novel coronavirus took hold, alcohol sales in the US have actually boomed. So much so that the first 30 days of quarantine resembled the alcohol-fuelled holiday mania of December. But almost all that business is being funnelled through established retail supply chains; a small percentage of restaurants and bars are attempting to create in-home experiences to stay afloat. This all goes beyond the sudden deluge of social media hashtags like #quarantinecocktail– this is about supporting an industry that is at risk of faltering. For restaurants without an already-established retail arm, creativity and agility have been the only ways to survive. Robust social media marketing supported by rich online content is the key for these businesses to tap into the current retail boom. Master Sommelier Laura Fiorvanti – one of 35 women in the world with this prestigious title – leads Corkbuzz group. Based in New York and North Carolina, she is taking their offerings online. With streamed versions of her in-house tastings matched with wine packs that can be purchased and shipped from the Corkbuzz cellar, she’s turning what was once thought of as an in-person-only event into something that’s not only more affordable, but also can be done in your own home. National retailer and Vermont wine bar Dedalus has also curated a wide variety of online entertainment that traverses everything from one-on-one happy hours with notable sommeliers to foundational lessons on cheese and its best pairings to fun-loving wine and DJ sets. The New York branch of La Compagnie de Vins Surnaturels, with managing partner Caleb Ganzer, has taken to YouTube with their in-house “Wine Boot Camp,” popular with the millennial drinker given that they have over 1,000 people log on at a time, and are able to deliver featured wines to the local area thanks to temporary retail licenses being made available to restaurants. (States have banned the on-premise sale and consumption of food and alcohol, they authorised take-away and delivery retail sales for all current liquor licence holders.) For other restaurants looking for ways to thrive through the pandemic, focusing on the in-home experience is key. Whether it’s a ready-to cook dinner paired with beverages, individually bottled cocktails, or working with sommeliers and winemakers to create video wine tastings, there needs to be an effort to engage with people in their homes. Though it may be too soon to tell what combination of virtual content will allow some to surge forward, what is clear is the need to help preserve the restaurant world. Stark numbers overshadow the hope that some restaurants have. According to the Independent Restaurant Coalition and the James Beard Foundation, over 500,000 restaurants have closed temporarily, causing the loss of over 11 million jobs. Only 20% of those closed restaurants believe they will be able to afford to come back once the new normal sets in. While a few economic thinkers believe this will just result in a great re-shuffling, others fear that it will expedite the homogenization of American restaurants: a patchwork of individual small businesses that represents the largest private industry employer in the US. Large, online-only retailers have seen the largest spike in their revenue during the novel coronavirus era, jumping three-figure percentage points in just days. They represent big discounts on large-production wines and a low-risk comfort zone – purchasing that arrives at your door with zero human interaction. It’s these inherent pillars that big businesses are built on, and it’s working. If there was ever a moment to support small business, now is the time. All restaurants were deemed as essential businesses. If they haven’t shuttered, takeout food and beverage is the only way they are surviving. If someone wants to buy a bottle of wine, check out what is available at a local restaurant first, then a local wine shop. Some restaurants have turned into grocers that support local farms and butchers. Anything bought here will be fresher and of better quality than what would be found at a supermarket. Lastly, if looking to donate, Frontline Foods and the Independent Restaurant Coalition are the most secure and effective avenues. If you can think of a restaurant or small retail shop where you thoroughly enjoyed their hospitality, then seek out that place and patronize them. Chances are, they’re scrambling to pack wine and food to-go orders so they can one day reopen their doors and welcome you home.
2 May 14:00 • Business Insider Australia • https://www.businessinsider.com.au/how-wine-businesses-surviving-coronavirus-master-sommelier-support-local-2020-5Rating: 0.30
Wine businesses and smaller restaurants are getting creative to stay afloat, according to a master sommelier — but even as alcohol purchases boom the industry needs our support
With a substantial amount of lockdown time under our belts, people around the world have found creative ways to remain social, active, and entertained. Virtual cocktail hours and dinner parties, live educational tastings, and all-around beverage discourse are filling social media airwaves. Jonathan Ross. Jonathan Ross There is no way to replace genuine human interactions: a necessity for a healthy life. However, this crisis has reminded many of us that at the center of human contact often lies a great drink. And continuing to drink well, learn well, and do well by the wine industry in this time is not only possible, but imperative. Over the past decade, wine has seen a growth in consumer demand for information and validation. With the rise in popularity of the sommelier profession, access to expert advice has grown, such as on SommTV. Winemakers, retail buyers, trained sommeliers, wine journalists, and enthusiast influencers have all become more prominent, widening a previously narrow field of critics whose scores focused on retail shelves and an endless sea of Yelp-like reviews on wine apps like Vivino. Consumers seek greater interactivity and down-to-earth advice (try Crunchy Red Fruit or SommSelect). Restaurants remain the treasure trove, attracting enthusiasts of all levels looking to quench their thirst for wine experiences at restaurants. Enter COVID-19. Since the novel coronavirus took hold, alcohol sales in the US have actually boomed. So much so that the first 30 days of quarantine resembled the alcohol-fuelled holiday mania of December. But almost all that business is being funnelled through established retail supply chains; a small percentage of restaurants and bars are attempting to create in-home experiences to stay afloat. This all goes beyond the sudden deluge of social media hashtags like #quarantinecocktail – this is about supporting an industry that is at risk of faltering. For restaurants without an already-established retail arm, creativity and agility have been the only ways to survive. Robust social media marketing supported by rich online content is the key for these businesses to tap into the current retail boom. Master Sommelier Laura Fiorvanti – one of 35 women in the world with this prestigious title – leads Corkbuzz group. Based in New York and North Carolina, she is taking their offerings online. With streamed versions of her in-house tastings matched with wine packs that can be purchased and shipped from the Corkbuzz cellar, she’s turning what was once thought of as an in-person-only event into something that’s not only more affordable, but also can be done in your own home. National retailer and Vermont wine bar Dedalus has also curated a wide variety of online entertainment that traverses everything from one-on-one happy hours with notable sommeliers to foundational lessons on cheese and its best pairings to fun-loving wine and DJ sets. The New York branch of La Compagnie de Vins Surnaturels, with managing partner Caleb Ganzer, has taken to YouTube with their in-house “Wine Boot Camp,” popular with the millennial drinker given that they have over 1,000 people log on at a time, and are able to deliver featured wines to the local area thanks to temporary retail licenses being made available to restaurants. (States have banned the on-premise sale and consumption of food and alcohol, they authorized take-away and delivery retail sales for all current liquor license holders.) For other restaurants looking for ways to thrive through the pandemic, focusing on the in-home experience is key. Whether it’s a ready-to cook dinner paired with beverages, individually bottled cocktails, or working with sommeliers and winemakers to create video wine tastings, there needs to be an effort to engage with people in their homes. Though it may be too soon to tell what combination of virtual content will allow some to surge forward, what is clear is the need to help preserve the restaurant world. Stark numbers overshadow the hope that some restaurants have. According to the Independent Restaurant Coalition and the James Beard Foundation, over 500,000 restaurants have closed temporarily, causing the loss of over 11 million jobs. Only 20% of those closed restaurants believe they’ll be able to afford to come back once the new normal sets in. While a few economic thinkers believe this will just result in a great re-shuffling, others fear that it will expedite the homogenization of American restaurants: a patchwork of individual small businesses that represents the largest private industry employer in the US. Large, online-only retailers have seen the largest spike in their revenue during the novel coronavirus era, jumping three-figure percentage points in just days. They represent big discounts on large-production wines and a low-risk comfort zone – purchasing that arrives at your door with zero human interaction. It’s these inherent pillars that big businesses are built on, and it’s working. If there was ever a moment to support small business, now is the time. All restaurants were deemed as essential businesses. If they haven’t shuttered, takeout food and beverage is the only way they are surviving. If someone wants to buy a bottle of wine, check out what is available at a local restaurant first, then a local wine shop. Some restaurants have turned into grocers that support local farms and butchers. Anything bought here will be fresher and of better quality than what would be found at a supermarket. Lastly, if looking to donate, Frontline Foods and the Independent Restaurant Coalition are the most secure and effective avenues. If you can think of a restaurant or small retail shop where you thoroughly enjoyed their hospitality, then seek out that place and patronize them. Chances are, they’re scrambling to pack wine and food to-go orders so they can one day reopen their doors and welcome you home.
2 May 14:00 • Business Insider Malaysia • https://www.businessinsider.my/how-wine-businesses-surviving-coronavirus-master-sommelier-support-local-2020-5-2Rating: 0.30
Wine businesses and smaller restaurants are getting creative to stay afloat, according to a master sommelier — but even as alcohol purchases boom the industry needs our support, Business Insider - Business Insider Singapore
With a substantial amount of lockdown time under our belts, people around the world have found creative ways to remain social, active, and entertained. Virtual cocktail hours and dinner parties, live educational tastings, and all-around beverage discourse are filling social media airwaves. There is no way to replace genuine human interactions: a necessity for a healthy life. However, this crisis has reminded many of us that at the center of human contact often lies a great drink. And continuing to drink well, learn well, and do well by the wine industry in this time is not only possible, but imperative. Over the past decade, wine has seen a growth in consumer demand for information and validation. With the rise in popularity of the sommelier profession, access to expert advice has grown, such as on SommTV. Winemakers, retail buyers, trained sommeliers, wine journalists, and enthusiast influencers have all become more prominent, widening a previously narrow field of critics whose scores focused on retail shelves and an endless sea of Yelp-like reviews on wine apps like Vivino. Consumers seek greater interactivity and down-to-earth advice (try Crunchy Red Fruit or SommSelect). Restaurants remain the treasure trove, attracting enthusiasts of all levels looking to quench their thirst for wine experiences at restaurants. Enter COVID-19. Since the novel coronavirus took hold, alcohol sales in the US have actually boomed. So much so that the first 30 days of quarantine resembled the alcohol-fuelled holiday mania of December. But almost all that business is being funnelled through established retail supply chains; a small percentage of restaurants and bars are attempting to create in-home experiences to stay afloat. This all goes beyond the sudden deluge of social media hashtags like #quarantinecocktail – this is about supporting an industry that is at risk of faltering. For restaurants without an already-established retail arm, creativity and agility have been the only ways to survive. Robust social media marketing supported by rich online content is the key for these businesses to tap into the current retail boom. Master Sommelier Laura Fiorvanti – one of 35 women in the world with this prestigious title – leads Corkbuzz group. Based in New York and North Carolina, she is taking their offerings online. With streamed versions of her in-house tastings matched with wine packs that can be purchased and shipped from the Corkbuzz cellar, she’s turning what was once thought of as an in-person-only event into something that’s not only more affordable, but also can be done in your own home. National retailer and Vermont wine bar Dedalus has also curated a wide variety of online entertainment that traverses everything from one-on-one happy hours with notable sommeliers to foundational lessons on cheese and its best pairings to fun-loving wine and DJ sets. The New York branch of La Compagnie de Vins Surnaturels, with managing partner Caleb Ganzer, has taken to YouTube with their in-house “Wine Boot Camp,” popular with the millennial drinker given that they have over 1,000 people log on at a time, and are able to deliver featured wines to the local area thanks to temporary retail licenses being made available to restaurants. (States have banned the on-premise sale and consumption of food and alcohol, they authorized take-away and delivery retail sales for all current liquor license holders.) For other restaurants looking for ways to thrive through the pandemic, focusing on the in-home experience is key. Whether it’s a ready-to cook dinner paired with beverages, individually bottled cocktails, or working with sommeliers and winemakers to create video wine tastings, there needs to be an effort to engage with people in their homes. Though it may be too soon to tell what combination of virtual content will allow some to surge forward, what is clear is the need to help preserve the restaurant world. Stark numbers overshadow the hope that some restaurants have. According to the Independent Restaurant Coalition and the James Beard Foundation, over 500,000 restaurants have closed temporarily, causing the loss of over 11 million jobs. Only 20% of those closed restaurants believe they’ll be able to afford to come back once the new normal sets in. While a few economic thinkers believe this will just result in a great re-shuffling, others fear that it will expedite the homogenization of American restaurants: a patchwork of individual small businesses that represents the largest private industry employer in the US. Large, online-only retailers have seen the largest spike in their revenue during the novel coronavirus era, jumping three-figure percentage points in just days. They represent big discounts on large-production wines and a low-risk comfort zone – purchasing that arrives at your door with zero human interaction. It’s these inherent pillars that big businesses are built on, and it’s working. If there was ever a moment to support small business, now is the time. All restaurants were deemed as essential businesses. If they haven’t shuttered, takeout food and beverage is the only way they are surviving. If someone wants to buy a bottle of wine, check out what is available at a local restaurant first, then a local wine shop. Some restaurants have turned into grocers that support local farms and butchers. Anything bought here will be fresher and of better quality than what would be found at a supermarket. Lastly, if looking to donate, Frontline Foods and the Independent Restaurant Coalition are the most secure and effective avenues. If you can think of a restaurant or small retail shop where you thoroughly enjoyed their hospitality, then seek out that place and patronize them. Chances are, they’re scrambling to pack wine and food to-go orders so they can one day reopen their doors and welcome you home.
2 May 14:00 • www.businessinsider.sg • https://www.businessinsider.sg/how-wine-businesses-surviving-coronavirus-master-sommelier-support-local-2020-5Rating: 0.30
A time for 'Team Australia': ME Bank panned for blindsiding customers
2 May 14:00
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A time for 'Team Australia': ME Bank panned for blindsiding customers
Members Equity Bank has been accused of "pulling the rug" from underneath its customers in a time of national and personal crises, as more cases emerge of the boutique lender shifting personal funds without permission. The Age and The Sydney Morning Heraldrevealed yesterday the bank, which is owned by 26 industry super funds and linked to big unions, had blindsided customers by removing access to money in redraw facilities and instead placing it to their loans. This meant large portions of customers' over-and-above loan repayments, supposed to be available for them to withdraw "at any time, for free", according the marketing, had been shifted out of reach within the bank's books. An irate small business owner contacted The Sunday Age and The Sun-Herald to say she had been using the draw down from her ME Bank home loan to pay her staff wages until Jobkeeper payments came through. "I had $80,000 in my draw down and now there is zero," she said. "I am also still awaiting a call from their management so I can voice my complaint (and) absolute outrage." Treasurer Josh Frydenberg said the banking and financial services royal commission reminded banks of the importance of complying with both the law and community expectations. "Now more than ever is a time to put customers first," he said. "Every bank needs to play their part in Team Australia.” Marcus Strom, who is the president of the Media, Entertainment and Arts Alliance union, checked his own account after reading the article and discovered funds had been moved on Monday last week from "money available, to money not available in a loan." Mr Strom, speaking in his personal capacity, said he had neither been given warning nor asked permission. "I just thought it was a bit tricky," he said. A letter received by customers on Friday, seen by The Sunday Age and The Sun-Herald, said the change was only to "the amount of funds available to redraw". "The current design of the (redraw facility) allows people to 'over-dip' to a point where they could fall behind their original repayment schedule. When this happens a customer's repayments may increase in the future ... (and) this could create financial stress for some customers." Mr Strom didn't believe the explanation was credible. "I'm not someone, I don't think, at risk of overdrawing," he said. "It looks like they've just done some accounting to me." One customer reported $24,000 had been removed from her redraw facility and transferred to her loan. Another household, whose hours of work have been dramatically reduced in the coronavirus crisis, found $10,000 had been moved. Liberal Senator Andrew Bragg, chair of Select Committee on Financial Technology and Regulatory Technology, said the coronavirus pandemic was a time for institutions to step up. "I'm surprised that any institution would pull the rug from underneath a customer in this environment," he said. "Not just because of the pandemic, but because we've just had a banking royal commission." The move by ME Bank to shift money away from customers prompted speculation that it wanted to shrink its loan book and reduce the risk of defaults. ME Bank said the changes were designed to halt "over-dipping" and therefore reduce financial hardship down the road. "No money has been removed from customer accounts. The adjustment made is to the amount available for redraw," a spokesman said. "We understand that the change has caused concern to some customers, particularly in the current environment. "We are reviewing the personal circumstances of each customer affected and are committed to working with them to determine how we can help with their individual financial needs." Mr Bragg said Parliament, once it returned, needed to "push through all Ken Hayne's changes that he's recommended [from the royal commission]."
2 May 14:00 • The Age • https://www.theage.com.au/national/victoria/a-time-for-team-australia-me-bank-panned-for-blindsiding-customers-20200502-p54p8i.html?ref=rss&utm_medium=rss&utm_source=rss_national_victoriaRating: 2.20
A time for 'Team Australia': ME Bank panned for blindsiding customers
Members Equity Bank has been accused of "pulling the rug" from underneath its customers in a time of national and personal crises, as more cases emerge of the boutique lender shifting personal funds without permission. The Age and The Sydney Morning Heraldrevealed yesterday the bank, which is owned by 26 industry super funds and linked to big unions, had blindsided customers by removing access to money in redraw facilities and instead placing it to their loans. This meant large portions of customers' over-and-above loan repayments, supposed to be available for them to withdraw "at any time, for free", according the marketing, had been shifted out of reach within the bank's books. An irate small business owner contacted The Sunday Age and The Sun-Herald to say she had been using the draw down from her ME Bank home loan to pay her staff wages until Jobkeeper payments came through. "I had $80,000 in my draw down and now there is zero," she said. "I am also still awaiting a call from their management so I can voice my complaint (and) absolute outrage." Treasurer Josh Frydenberg said the banking and financial services royal commission reminded banks of the importance of complying with both the law and community expectations. "Now more than ever is a time to put customers first," he said. "Every bank needs to play their part in Team Australia.” Marcus Strom, who is the president of the Media, Entertainment and Arts Alliance union, checked his own account after reading the article and discovered funds had been moved on Monday last week from "money available, to money not available in a loan." Mr Strom, speaking in his personal capacity, said he had neither been given warning nor asked permission. "I just thought it was a bit tricky," he said. A letter received by customers on Friday, seen by The Sunday Age and The Sun-Herald, said the change was only to "the amount of funds available to redraw". "The current design of the (redraw facility) allows people to 'over-dip' to a point where they could fall behind their original repayment schedule. When this happens a customer's repayments may increase in the future ... (and) this could create financial stress for some customers." Mr Strom didn't believe the explanation was credible. "I'm not someone, I don't think, at risk of overdrawing," he said. "It looks like they've just done some accounting to me." One customer reported $24,000 had been removed from her redraw facility and transferred to her loan. Another household, whose hours of work have been dramatically reduced in the coronavirus crisis, found $10,000 had been moved. Liberal Senator Andrew Bragg, chair of Select Committee on Financial Technology and Regulatory Technology, said the coronavirus pandemic was a time for institutions to step up. "I'm surprised that any institution would pull the rug from underneath a customer in this environment," he said. "Not just because of the pandemic, but because we've just had a banking royal commission." The move by ME Bank to shift money away from customers prompted speculation that it wanted to shrink its loan book and reduce the risk of defaults. ME Bank said the changes were designed to halt "over-dipping" and therefore reduce financial hardship down the road. "No money has been removed from customer accounts. The adjustment made is to the amount available for redraw," a spokesman said. "We understand that the change has caused concern to some customers, particularly in the current environment. "We are reviewing the personal circumstances of each customer affected and are committed to working with them to determine how we can help with their individual financial needs." Mr Bragg said Parliament, once it returned, needed to "push through all Ken Hayne's changes that he's recommended [from the royal commission]."
2 May 14:00 • Brisbane Times • https://www.brisbanetimes.com.au/national/victoria/a-time-for-team-australia-me-bank-panned-for-blindsiding-customers-20200502-p54p8i.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
A time for 'Team Australia': ME Bank panned for blindsiding customers
Members Equity Bank has been accused of "pulling the rug" from underneath its customers in a time of national and personal crises, as more cases emerge of the boutique lender shifting personal funds without permission. The Age and The Sydney Morning Heraldrevealed yesterday the bank, which is owned by 26 industry super funds and linked to big unions, had blindsided customers by removing access to money in redraw facilities and instead placing it to their loans. This meant large portions of customers' over-and-above loan repayments, supposed to be available for them to withdraw "at any time, for free", according the marketing, had been shifted out of reach within the bank's books. An irate small business owner contacted The Sunday Age and The Sun-Herald to say she had been using the draw down from her ME Bank home loan to pay her staff wages until Jobkeeper payments came through. "I had $80,000 in my draw down and now there is zero," she said. "I am also still awaiting a call from their management so I can voice my complaint (and) absolute outrage." Treasurer Josh Frydenberg said the banking and financial services royal commission reminded banks of the importance of complying with both the law and community expectations. "Now more than ever is a time to put customers first," he said. "Every bank needs to play their part in Team Australia.” Marcus Strom, who is the president of the Media, Entertainment and Arts Alliance union, checked his own account after reading the article and discovered funds had been moved on Monday last week from "money available, to money not available in a loan." Mr Strom, speaking in his personal capacity, said he had neither been given warning nor asked permission. "I just thought it was a bit tricky," he said. A letter received by customers on Friday, seen by The Sunday Age and The Sun-Herald, said the change was only to "the amount of funds available to redraw". "The current design of the (redraw facility) allows people to 'over-dip' to a point where they could fall behind their original repayment schedule. When this happens a customer's repayments may increase in the future ... (and) this could create financial stress for some customers." Mr Strom didn't believe the explanation was credible. "I'm not someone, I don't think, at risk of overdrawing," he said. "It looks like they've just done some accounting to me." One customer reported $24,000 had been removed from her redraw facility and transferred to her loan. Another household, whose hours of work have been dramatically reduced in the coronavirus crisis, found $10,000 had been moved. Liberal Senator Andrew Bragg, chair of Select Committee on Financial Technology and Regulatory Technology, said the coronavirus pandemic was a time for institutions to step up. "I'm surprised that any institution would pull the rug from underneath a customer in this environment," he said. "Not just because of the pandemic, but because we've just had a banking royal commission." The move by ME Bank to shift money away from customers prompted speculation that it wanted to shrink its loan book and reduce the risk of defaults. ME Bank said the changes were designed to halt "over-dipping" and therefore reduce financial hardship down the road. "No money has been removed from customer accounts. The adjustment made is to the amount available for redraw," a spokesman said. "We understand that the change has caused concern to some customers, particularly in the current environment. "We are reviewing the personal circumstances of each customer affected and are committed to working with them to determine how we can help with their individual financial needs." Mr Bragg said Parliament, once it returned, needed to "push through all Ken Hayne's changes that he's recommended [from the royal commission]."
2 May 14:00 • WAtoday • https://www.watoday.com.au/national/victoria/a-time-for-team-australia-me-bank-panned-for-blindsiding-customers-20200502-p54p8i.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
Berkshire Hathaway lost $49.7 billion in first quarter stung by coronavirus
3 May 19:02
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Berkshire Hathaway lost $49.7 billion in first quarter stung by coronavirus
Not even Warren Buffett was spared financially from the coronavirus, as his conglomerate, Berkshire Hathaway, reported a $49.7 billion loss in the first quarter Saturday, reflecting the outbreak’s toll on an investment portfolio that includes big stakes in major airlines and financial firms. The loss was Berkshire’s biggest ever and a sharp swing from a $21.7 billion profit in the same quarter a year earlier. The conglomerate’s vast array of investments exposed it — and Buffett, long considered one of the world’s top investors — to huge swaths of the battered US economy. Its total investment loss for the quarter, without accounting for operating earnings, was $54.5 billion. By comparison, its investment gain in all of 2019 was $56.3 billion. Berkshire said it continued to sell stock in April, totaling $6.5 billion, ploughing that money primarily into supersafe Treasury bills. Later Saturday, at his annual shareholders meeting, Buffett suggested that some of those sales involved Berkshire’s reversing its roughly 10% in the four largest US airlines. Berkshire’s investment loss tracked the overall slide in stock markets: The S&P 500 dropped 20% in the first quarter. (The company’s biggest holdings are also mainstays of the S&P 500: American Express, Apple, Bank of America, Coca-Cola and Wells Fargo, with those stakes amounting to nearly $125 billion.) The loss overshadowed a 6% rise in Berkshire’s operating earnings, which track the performance of the company’s owned-and-operated businesses like insurer Geico. Buffett regards that as a better measure of the company’s overall performance and has long argued that quarterly paper gains or losses on its investments “are often meaningless” in understanding its overall health. But it is hard to ignore the damage to a portfolio that includes stakes in financial firms like Bank of America and American Express, both of which reported steep drops in earnings for the first quarter, and four of the biggest US airlines. (Berkshire also disclosed that the value of its stake in Kraft Heinz on its books exceeds the market value of that holding by about 40%, and warned that it might have to take a write-down on the investment in the future.) Even some of the conglomerate’s wholly owned businesses, like the Burlington Northern Santa Fe railroad and retailers like See’s Candy, were hurt by the lockdowns that have shaken the US economy. Still, Geico reported a 28% gain for the quarter, to $984 million, while Berkshire’s overall insurance investment profits rose modestly because of increased dividend income for the company. The first-quarter results, in which Berkshire reported having $137.3 billion in cash, were released before its first online-only shareholder meeting. Sometimes described as a kind of Woodstock for capitalists, the meeting is usually a weekendlong Omaha, Nebraska, extravaganza celebrating all things Buffett and Berkshire. This year, it was a decidedly more subdued affair, reflecting the limits on mass gatherings and travel of the COVID-crisis era. Buffett’s longtime business partner, 96-year-old Charlie Munger, did not attend, staying at home in Los Angeles. “It just didn’t seem like a good idea to have him make the trip to Omaha,” Buffett said, adding, “Charlie is in fine shape, and he’ll be back next year.” Buffett was joined instead by Greg Abel, Berkshire’s vice chairman overseeing all of the company’s non-insurance companies, who sat at a separate desk some distance from Buffett. Instead of facing thousands of adoring and affluent shareholders, Buffett, noting that he hadn’t had a haircut in seven weeks, held forth in an almost completely vacant Omaha arena that seats more than 17,000, as his comments were livestreamed. Discussing the breakdown in the financial markets that prompted the Federal Reserve to drastically ramp up efforts to pump in fresh cash, he said, “We came very close to having a total freeze of credit.” When it came to Berkshire’s stake in the airlines, Buffett said, “I just decided that I’d made a mistake.” He added that because of the pandemic’s impact on travel, “the airline business — and I may be wrong, and I hope I’m wrong — but I think it, it changed in a very major way.” ©2020 The New York Times Company
3 May 19:02 • Bdnews24 • https://bdnews24.com/business/2020/05/03/berkshire-hathaway-lost-49.7-billion-in-first-quarter-stung-by-coronavirusRating: 2.85
Warren Buffett's co posts $50-billion loss
American business tycoon Warren Buffett’s company, Berkshire Hathaway Inc has reported a net loss of nearly $50 billion in the first quarter amid the Covid-19 pandemic, while it also sold off all its airline stocks Washington: American business tycoon Warren Buffett's company, Berkshire Hathaway Inc has reported a net loss of nearly $50 billion in the first quarter amid the Covid-19 pandemic, while it also sold off all its airline stocks. The net loss totalled to $49.75 billion in the first quarter, or $30,653 dollars, per Class A share and $20.44 per Class B share, compared with a net earnings of $21.66 billion a year ago, Xinhua news agency quoted Berkshire as saying in a statement on Saturday. The first-quarter operating earnings rose to $5.87 billion from $5.55 billion dollars, it added. "As efforts to contain the spread of the Covid-19 pandemic accelerated in the second half of March and continued through April, most of our businesses were negatively affected, with the effects to date ranging from relatively minor to severe. Berkshire has taken 'necessary' actions to mitigate the economic losses due to lower consumer demand for products and services," the statement said, adding that the company could not 'reliably predict' when its many businesses would return to normal or when consumers would resume their former buying habits. At a virtual shareholder meeting also on Saturday, Buffett announced that his conglomerate has sold all its airline stocks, sending an alarming signal to industry devastated by the global pandemic. "The world has changed for the airlines," he said. "And I don't know how it's changed and I hope it corrects itself in a reasonably prompt way. It turned out I was wrong about that business," The Berkshire Hathaway previously held shares of United Airlines, American Airlines, Southwest Airlines and Delta Airlines, worth over $4 billion last December, but stocks were down this year by 69.7 per cent, 62.9 per cent, 45.8 per cent, and 58.7 per cent, respectively, according to a report from CNBC. Berkshire, a US multinational conglomerate holding company, is based in Omaha, Nebraska. Email ArticlePrint Article Next Story
3 May 19:34 • The Hans India • https://www.thehansindia.com/business/hans-invest/warren-buffetts-co-posts-50-billion-loss-620593Rating: 1.10
Warren Buffett remains in bullish mood despite $50bn Covid-related losses
Warren Buffett’s Berkshire Hathaway is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $50bn (€45.5bn) at the weekend and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses are facing “relatively minor to severe” negative effects from Covid-19, with revenue slowing considerably in April even at businesses deemed “essential.” However, the billionaire investor has said the US’ capacity to withstand crises provides a silver lining as it combats the coronavirus, even as he acknowledged that the global pandemic could significantly damage the American economy and his investments. Over more than four and a half hours at the annual meeting of Berkshire Hathaway at the weekend, Mr Buffett said his conglomerate has taken many steps responding to the pandemic, including providing cash to struggling operating units, and throwing in the towel on a multi-billion-dollar bet on US. airlines. Mr Buffett also said he remains keen on making a big acquisition, which he has not done since 2016, but has not provided financial support to companies as he did during the 2008 financial crisis because he saw nothing attractive enough, even after the recent bear market. The 89-year-old opened the meeting in Omaha, Nebraska with one and three quarter hours of remarks to soothe anxious investors, urging them to stay committed to stocks despite this year’s bear market, even if the pandemic gets a second wind late this year. Illustrating his remarks with dozens of plain black-and-white slides, Mr Buffett called dealing with the pandemic “quite an experiment” that had an “extraordinarily wide” range of possible economic outcomes. “Nothing can stop America when you get right down to it,” Mr Buffett said. “I will bet on America the rest of my life.” The meeting began several hours after Berkshire reported a record $49.75bn first-quarter net loss, reflecting huge unrealised losses on common stock holdings such as Bank of America and Apple during the market meltdown. Mr Buffett said operating earnings will, through at least this year, be “considerably less” than they would have been had the pandemic not occurred. - Reuters Brian Keegan: Having confidence in Irish industry will speed up path to recovery
3 May 16:37 • Irishexaminer • https://www.irishexaminer.com/breakingnews/business/warren-buffett-remains-in-bullish-mood-despite-50bn-covid-related-losses-997444.htmlRating: 0.69
Warren Buffett’s Berkshire posts nearly $50 billion loss as coronavirus causes pain
Warren Buffett’s Berkshire Hathaway Inc is being hit hard by the coronaviruspandemic, posting a record quarterly net loss of nearly $50 billion on Saturday and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses are facing “relatively minor to severe” negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed “essential.” The BNSF railroad saw shipping volumes of consumer products and coal fall, while Geico set aside money for car insurance premiums it no longer expects to collect. Some businesses cut salaries and furloughed workers, and retailers such as See’s Candies and the Nebraska Furniture Mart closed stores. Buffett also allowed Berkshire’s cash stake to rise to a record $137.3 billion from $128 billion at the end of 2019. That reflected the 89-year-old billionaire’s inability to make large, “elephant” size acquisitions for his Omaha, Nebraska-based conglomerate, and caution in buying stocks. Berkshire said it bought only a net $1.8 billion of stocks in the first quarter. It also said it repurchased $1.7 billion of its own stock, but that was less than in the prior quarter. “Historically, Buffett has been so visible in times of crisis, and encouraged investors to take advantage of market selloffs, but if he doesn’t see opportunities even in his own stock, what are we to think?” said Jim Shanahan, an analyst at Edward Jones & Co in St. Louis. Still, Shanahan said Berkshire is “as well positioned as it can be,” reflecting its diverse businesses and substantial liquidity and access to capital. He rates Berkshire “buy.” Berkshire released results before its annual meeting, where Buffett said Berkshire in April sold its “entire positions” in the four largest U.S. airlines: American, Delta, Southwest and United.Buffett said Berkshire “made a mistake” investing approximately $7 billion to $8 billion in the sector, which was changed “in a very major way” as the pandemic shut down most air travel, through no fault of the airlines. The meeting was streamed on Yahoo Finance. It was held without the usual “Woodstock for Capitalists,” a weekend of festivities that normally draws tens of thousands of people to Omaha, and which Buffett canceled because of the pandemic. Berkshire’s first-quarter net loss was $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses on stock and other investments. Net earnings were $21.66 billion, or $13,209 per share, a year earlier.An accounting rule requires Berkshire to report unrealized stock losses and gains with net results, causing huge swings that Buffett considers meaningless. Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share, from $5.56 billion, or about $3,388 per share. But year-earlier results reflected a charge for investments linked to what prosecutors called a Ponzi scheme at a solar company, which Berkshire did not know about. Operating profit at Berkshire’s businesses fell 3%, with declines at BNSF, utilities and energy units, and manufacturing, service and retailing operations such as Precision Castparts, which Berkshire bought for $32.1 billion in 2016. Geico was able to post a 28% gain in pre-tax underwriting profit because people drove less, resulting in fewer claims for crashes. Still, the insurer, like others, is offering relief on premiums to policyholders.Vice Chairman Charlie Munger told The Wall Street Journal last month that Berkshire might close a few small businesses. Investors have been disappointed with Berkshire. Its stock price has fallen 19% in 2020, compared with a 12% drop in the Standard & Poor’s 500, despite Buffett’s prediction that Berkshire would outperform in down markets. The decline came after Berkshire’s stock lagged the index by more than 20 percentage points in 2019, including dividends. In the first quarter, many Berkshire stock investments fared worse than the S&P, including American Express, Bank of America, Wells Fargo and the four airlines. Falling stocks also caused a $1.39 billion pre-tax loss on derivatives contracts, where Berkshire is betting stock prices will rise over the long haul.
3 May 09:26 • The Indian Express • https://indianexpress.com/article/business/warren-buffett-berkshire-posts-nearly-50-billion-loss-as-coronavirus-causes-pain-6391727/Rating: 0.30
Buffett's Berkshire posts nearly $US50b loss
Warren Buffett's Berkshire Hathaway Inc is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $US50 billion on Saturday and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses are facing "relatively minor to severe" negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed "essential." The BNSF railroad saw shipping volumes of consumer products and coal fall, while Geico set aside money for car insurance premiums it no longer expects to collect. Some businesses cut salaries and furloughed workers, and retailers such as See's Candies and the Nebraska Furniture Mart closed stores. Buffett also allowed Berkshire's cash stake to rise to a record $137.3 billion from $128 billion at the end of 2019. That reflected the 89-year-old billionaire's inability to make large, "elephant" size acquisitions for his Omaha, Nebraska-based conglomerate, and caution in buying stocks. Berkshire said it bought only a net $1.8 billion of stocks in the first quarter. It also said it repurchased $1.7 billion of its own stock, but that was less than in the prior quarter. "Historically, Buffett has been so visible in times of crisis, and encouraged investors to take advantage of market selloffs, but if he doesn't see opportunities even in his own stock, what are we to think?" said Jim Shanahan, an analyst at Edward Jones & Co in St. Louis. Still, Shanahan said Berkshire is "as well positioned as it can be," reflecting its diverse businesses and substantial liquidity and access to capital. He rates Berkshire "buy." Berkshire released results before its annual meeting, where Buffett said Berkshire in April sold its "entire positions" in the four largest US airlines: American, Delta, Southwest and United. Buffett said Berkshire "made a mistake" investing approximately $7 billion to $8 billion in the sector, which was changed "in a very major way" as the pandemic shut down most air travel, through no fault of the airlines. The meeting was streamed on Yahoo Finance. It was held without the usual "Woodstock for Capitalists," a weekend of festivities that normally draws tens of thousands of people to Omaha, and which Buffett canceled because of the pandemic. Berkshire's first-quarter net loss was $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses on stock and other investments. Net earnings were $21.66 billion, or $13,209 per share, a year earlier. An accounting rule requires Berkshire to report unrealized stock losses and gains with net results, causing huge swings that Buffett considers meaningless. Quarterly operating profit, which Buffett considers a better performance measure, rose 6 per cent to $5.87 billion, or about $3,624 per Class A share, from $5.56 billion, or about $3,388 per share. But year-earlier results reflected a charge for investments linked to what prosecutors called a Ponzi scheme at a solar company, which Berkshire did not know about. Operating profit at Berkshire's businesses fell 3 per cent, with declines at BNSF, utilities and energy units, and manufacturing, service and retailing operations such as Precision Castparts, which Berkshire bought for $32.1 billion in 2016. Geico was able to post a 28 per cent gain in pre-tax underwriting profit because people drove less, resulting in fewer claims for crashes. Still, the insurer, like others, is offering relief on premiums to policyholders. Vice Chairman Charlie Munger told The Wall Street Journal last month that Berkshire might close a few small businesses. Investors have been disappointed with Berkshire. Its stock price has fallen 19 per cent in 2020, compared with a 12 per cent drop in the Standard & Poor's 500, despite Buffett's prediction that Berkshire would outperform in down markets. The decline came after Berkshire's stock lagged the index by more than 20 percentage points in 2019, including dividends. In the first quarter, many Berkshire stock investments fared worse than the S&P, including American Express, Bank of America, Wells Fargo and the four airlines. Falling stocks also caused a $1.39 billion pre-tax loss on derivatives contracts, where Berkshire is betting stock prices will rise over the long haul. Reuters
3 May 01:50 • Australian Financial Review • https://www.afr.com/markets/equity-markets/buffett-s-berkshire-posts-nearly-us50b-loss-20200503-p54pcfRating: 1.94
Buffett's Berkshire posts nearly $50 billion loss as coronavirus causes pain
(Reuters) - Warren Buffett’s Berkshire Hathaway Inc is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $50 billion on Saturday and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses are facing “relatively minor to severe” negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed “essential.” The BNSF railroad saw shipping volumes of consumer products and coal fall, while Geico set aside money for car insurance premiums it no longer expects to collect. Some businesses cut salaries and furloughed workers, and retailers such as See’s Candies and the Nebraska Furniture Mart closed stores. Buffett also allowed Berkshire’s cash stake to rise to a record $137.3 billion from $128 billion at the end of 2019. That reflected the 89-year-old billionaire’s inability to make large, “elephant” size acquisitions for his Omaha, Nebraska-based conglomerate, and caution in buying stocks. Berkshire said it bought only a net $1.8 billion of stocks in the first quarter. It also said it repurchased $1.7 billion of its own stock, but that was less than in the prior quarter. “Historically, Buffett has been so visible in times of crisis, and encouraged investors to take advantage of market selloffs, but if he doesn’t see opportunities even in his own stock, what are we to think?” said Jim Shanahan, an analyst at Edward Jones & Co in St. Louis. Still, Shanahan said Berkshire is “as well positioned as it can be,” reflecting its diverse businesses and substantial liquidity and access to capital. He rates Berkshire “buy.” Berkshire released results before its annual meeting, where Buffett said Berkshire in April sold its “entire positions” in the four largest U.S. airlines: American, Delta, Southwest and United. Buffett said Berkshire “made a mistake” investing approximately $7 billion to $8 billion in the sector, which was changed “in a very major way” as the pandemic shut down most air travel, through no fault of the airlines. The meeting was streamed on Yahoo Finance. It was held without the usual “Woodstock for Capitalists,” a weekend of festivities that normally draws tens of thousands of people to Omaha, and which Buffett canceled because of the pandemic. Berkshire’s first-quarter net loss was $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses on stock and other investments. Net earnings were $21.66 billion, or $13,209 per share, a year earlier. An accounting rule requires Berkshire to report unrealized stock losses and gains with net results, causing huge swings that Buffett considers meaningless. Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share, from $5.56 billion, or about $3,388 per share. But year-earlier results reflected a charge for investments linked to what prosecutors called a Ponzi scheme at a solar company, which Berkshire did not know about. Operating profit at Berkshire’s businesses fell 3%, with declines at BNSF, utilities and energy units, and manufacturing, service and retailing operations such as Precision Castparts, which Berkshire bought for $32.1 billion in 2016. Geico was able to post a 28% gain in pre-tax underwriting profit because people drove less, resulting in fewer claims for crashes. Still, the insurer, like others, is offering relief on premiums to policyholders. Vice Chairman Charlie Munger told The Wall Street Journal last month that Berkshire might close a few small businesses. Investors have been disappointed with Berkshire. Its stock price has fallen 19% in 2020, compared with a 12% drop in the Standard & Poor’s 500, despite Buffett’s prediction that Berkshire would outperform in down markets. The decline came after Berkshire’s stock lagged the index by more than 20 percentage points in 2019, including dividends. In the first quarter, many Berkshire stock investments fared worse than the S&P, including American Express, Bank of America, Wells Fargo and the four airlines. Falling stocks also caused a $1.39 billion pre-tax loss on derivatives contracts, where Berkshire is betting stock prices will rise over the long haul.
3 May 01:25 • Reuters • https://www.reuters.com/article/us-berkshire-results-idUSKBN22E0GDRating: 4.04
Buffett's Berkshire posts nearly $50 bln loss as coronavirus causes pain
Warren Buffett's Berkshire Hathaway Inc is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $50 billion on Saturday and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses are facing "relatively minor to severe" negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed "essential." The BNSF railroad saw shipping volumes of consumer products and coal fall, while Geico set aside money for car insurance premiums it no longer expects to collect. Some businesses cut salaries and furloughed workers, and retailers such as See's Candies and the Nebraska Furniture Mart closed stores. Buffett also allowed Berkshire's cash stake to rise to a record $137.3 billion from $128 billion at the end of 2019. That reflected the 89-year-old billionaire's inability to make large, "elephant" size acquisitions for his Omaha, Nebraska-based conglomerate, and caution in buying stocks. Berkshire said it bought only a net $1.8 billion of stocks in the first quarter, and sold a net $6.1 billion in April. It also said it repurchased $1.7 billion of its own stock in the first quarter, but that was less than the prior quarter. "Historically, Buffett has been so visible in times of crisis, and encouraged investors to take advantage of market selloffs, but if he doesn't see opportunities even in his own stock, what are we to think?" said Jim Shanahan, an analyst at Edward Jones & Co in St. Louis. Still, Shanahan said Berkshire is "as well positioned as it can be," reflecting its diverse businesses and substantial liquidity and access to capital. He rates Berkshire "buy." Buffett and Vice Chairman Greg Abel will likely discuss the pandemic at Berkshire's annual meeting on Saturday afternoon, which will be streamed on Yahoo Finance. The pandemic forced Buffett to cancel "Woodstock for Capitalists," a weekend of festivities that normally draws tens of thousands of people to Omaha. Berkshire Stock Underperforms Berkshire's first-quarter net loss was $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses on stock and other investments. Net earnings were $21.66 billion, or $13,209 per share, a year earlier. An accounting rule requires Berkshire to report unrealized stock losses and gains with net results, causing huge swings that Buffett considers meaningless. Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share, from $5.56 billion, or about $3,388 per share. But year-earlier results reflected a charge for investments linked to what prosecutors called a Ponzi scheme at a solar company, which Berkshire did not know about. Operating profit at Berkshire's businesses fell 3%, with declines at BNSF, utilities and energy units, and manufacturing, service and retailing operations such as Precision Castparts, which Berkshire bought for $32.1 billion in 2016. Geico was able to post a 28% gain in pre-tax underwriting profit because people drove less, resulting in fewer claims for crashes. Still, the insurer, like others, is offering relief on premiums to policyholders. Vice-Chairman Charlie Munger told The Wall Street Journal last month that Berkshire might close a few small businesses. Investors have been disappointed with Berkshire. Its stock price has fallen 19% in 2020, compared with a 12% drop in the Standard & Poor's 500, despite Buffett's prediction that Berkshire would outperform in down markets. The decline came after Berkshire's stock lagged the index by more than 20 percentage points in 2019, including dividends. In the first quarter, many Berkshire stock investments fared worse than the S&P, including American Express, Bank of America, Wells Fargo and four US airlines. Falling stocks also caused a $1.39 billion pre-tax loss on derivatives contracts, where Berkshire is betting stock prices will rise over the long haul.
2 May 22:00 • Deccan Herald • https://www.deccanherald.com/business/business-news/buffetts-berkshire-posts-nearly-50-bln-loss-as-coronavirus-causes-pain-832850.htmlRating: 2.25
Buffett's Berkshire posts record net loss on coronavirus, operating profit rises
REUTERS: Warren Buffett's Berkshire Hathaway posted a higher operating profit on Saturday (May 2), but the coronavirus pandemic pummeled its common stock investments and led to a record net loss. Berkshire's first-quarter net loss totalled US$49.75 billion, or US$30,653 per Class A share, reflecting US$54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totalled US$21.66 billion, or US$13,209 per share. Quarterly operating profit, which Buffett considers a better performance measure, rose 6per cent to US$5.87 billion from US$5.56 billion. An accounting rule requires Berkshire to report unrealised stock losses and gains with earnings. This causes huge swings in Berkshire's net results that Buffett considers meaningless.
2 May 20:15 • CNA • https://www.channelnewsasia.com/news/business/buffett-s-berkshire-posts-record-net-loss-on-coronavirus--operating-profit-rises-12696858Rating: 3.25
Warren Buffett's Berkshire Says Lost $50 Bln in Q1 Due to COVID-19 Pandemic
MOSCOW (Sputnik) - US business tycoon Warren Buffett's Berkshire Hathaway holding has reported a loss of $55 billion in Q1 amid COVID-19 pandemic, compared to $21 billion in profits over the same period last year, the company said in a press release on Saturday. The published financial statements say the conglomerate lost $49.7 billion in the first quarter. The holding's revenue in 2019 amounted to $254.6 billion. Meanwhile, the company's operating profits were 6 percent higher than those of 2019, amounting to $5.87 billion, or about $3,388 per share. Berkshire owns railroad Burlington Northern Santa Fe, insurer Geico and chocolate maker See's Candies. The businesses were rocked in mid-April due to numerous restrictive measures and lockdowns, which halted many industries across the world. According to the Johns Hopkins University count, the new coronavirus pandemic has infected more than 3,402,400 people and has claimed the lives of at least 242,000 worldwide. In the United Kingdom, the COVID-19 tally has surpassed 183,400, with over 28,200 fatalities, the university says.
2 May 20:14 • Sputniknews • https://sputniknews.com/business/202005021079175985-warren-buffetts-berkshire-says-lost-50-bln-in-q1-due-to-covid-19-pandemic/Rating: 3.96
Berkshire Hathaway Lost $50 Billion Last Quarter As Warren Buffett’s Investments Took A Hit From Coronavirus
Billionaire Warren Buffett’s famed investing conglomerate, Berkshire Hathaway, reported a massive net loss of nearly $50 billion in the first quarter, as the coronavirus-driven market sell-off took a significant toll on the company's stock holdings. Berkshire posted a record net loss of $49.75 billion in the first quarter—down from $21.7 billion in profit last year. That amounts to a loss of $30,653 per share, compared to profits of $13,209 per share in the first quarter of 2019. Even as the coronavirus hurt the company’s business, Berkshire’s operating profit rose 6% to $5.87 billion, up from $5.56 billion a year ago. Berkshire’s quarterly filing makes 31 references to coronavirus, showing the pandemic’s substantial impact on the company so far in 2020. The first quarter saw many of Buffett’s largest stock holdings—including big banks and airlines, plummet even further than the benchmark S&P 500, which fell 20% during that period. Buffett’s cash pile is up from $125 billion to $137.3 billion, as the Oracle of Omaha continues to look for an elephant-sized acquisition. Buffett emerged as a key player who helped restore confidence in the markets during the 2008 financial crisis, but he’s remained relatively quiet during the 2020 coronavirus downturn. Charlie Munger, vice chairman at Berkshire Hathaway BRK.B , told the Wall Street Journal recently that the Oracle of Omaha is being “fairly conservative” with his investments in the current market. He also admitted that a few of Berkshire’s smaller businesses might altogether. Companies are reportedly not calling Berkshire for capital like they were in 2008: “The phone is not ringing off the hook,” Munger confirmed, adding that airlines are “all negotiating with the government, but they’re not calling Warren.” Berkshire Hathaway’s stock is down 20% so far this year, compared to a 13% decline for the S&P 500. Warren Buffett is the world’s fourth-richest person, with a net worth of $72 billion, according to Forbes’ estimates. Berkshire’s first-ever online annual shareholders meeting will take place later today, at 4:45 p.m. ET. What Is Warren Buffett Up To? Berkshire Swooped In During 2008, But What’s Its Power Play For 2020?(Forbes) Here’s What Warren Buffett Says About The Coronavirus And His Outlook On Stocks(Forbes) Here’s Why One Of Warren Buffett’s Favorite Stocks Might Be Poised For A Rebound(Forbes) Full coverage and live updates on the Coronavirus
2 May 00:00 • Forbes • https://www.forbes.com/sites/sergeiklebnikov/2020/05/02/berkshire-hathaway-lost-50-billion-last-quarter-as-warren-buffetts-investments-took-a-hit-from-coronavirus/Rating: 4.41
Berkshire Hathaway Q1 results: Buffett's company posts record net loss on coronavirus, operating profit rises
Warren Buffett's Berkshire Hathaway Inc on Saturday posted a record net loss of nearly $50 billion as the coronavirus pandemic pummeled its common stock investments, but operating profit rose even as COVID-19 hurt its businesses. Berkshire's first-quarter net loss totaled $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totaled $21.66 billion, or $13,209 per share. Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share $5.56 billion, or about $3,388 per share. An accounting rule requires Berkshire to report unrealized stock losses and gains with earnings. This causes huge swings in Berkshire's net results that Buffett considers meaningless. Nonetheless, Berkshire has loaded up on stocks in part because of Buffett's inability to find large companies to buy outright, a drought that has lasted more than four years and left Berkshire with about $137.3 billion of cash. The Standard & Poor's 500 slid 20% in the first quarter but there were steeper falls in several large Berkshire holdings including American Express, Bank of America , Wells Fargo and four airlines -- American , Delta, Southwest and United. Berkshire's operating businesses, like much of corporate America, were not unscathed by COVID-19, which hurt volumes at the BNSF railroad and forced retail businesses such as See's Candies to temporarily close stores. Most of Berkshire's businesses have been hurt by the pandemic, with effects so far ranging from "relatively minor to severe," and revenues of businesses deemed "essential" have slowed "considerably" in April, the company said. Vice Chairman Charlie Munger told The Wall Street Journal last month that a few small Berkshire businesses might close altogether.
2 May 12:36 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/earnings/berkshire-hathaway-q1-results-buffetts-company-posts-record-net-loss-on-coronavirus-operating-profit-rises/articleshow/75506997.cmsRating: 0.30
Berkshire Hathaway reports record quarterly loss thanks to pandemic, but Warren Buffett likely isn't too worried
Berkshire Hathaway took a hit during the coronavirus pandemic, reporting a record net loss of $49.75 billion in the first quarter. But CEO Warren Buffett likely isn't too concerned, CNBC reports. That's because Buffett considers the company's operating profit, which actually rose 6 percent in the first quarter, to be a better performance measure. Berkshire's losses mainly reflect losses from investments in common stocks, which the company had loaded up on recently because Buffett hasn't been able to settle on any large companies to buy outright over the last four years. Some of those stocks include four major airlines — American, Delta, Southwest, and United — which have plummeted due to the decline in travel. While the net loss was record-setting for Berkshire, Buffett is never immune to swings like this since an accounting rule requires the company to report unrealized stock losses and gains with earnings. That leads to booms and busts that the CEO considers meaningless, per CNBC. Still, many of Berkshire's operating businesses were indeed hurt by the pandemic, and revenues deemed "essential" slowed "considerably" in April. Read more at CNBC.
2 May 16:50 • The Week • https://theweek.com/speedreads/912429/berkshire-hathaway-reports-record-quarterly-loss-thanks-pandemic-but-warren-buffett-likely-isnt-worriedRating: 0.58
Buffet's Berkshire Hathaway posts $50 bn loss in coronavirus impact
Warren Buffett's Berkshire Hathaway Inc is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $50 billion on Saturday and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses have faced "relatively minor to severe" negative effects from Covid-19, the illness caused by the novel coronavirus, with revenue slowing considerably in April even at businesses deemed "essential." The BNSF railroad saw shipping volumes fall, Geico set aside money for car insurance premiums it doesn't expect to collect, and some businesses cut wages and furloughed workers. Retailers such as See's Candies and the Nebraska Furniture Mart closed stores. Buffett also allowed Berkshire's cash stake to rise to a record $137.3 billion from $128 billion at the end of 2019. That reflected the 89-year-old billionaire's inability to make large, "elephant" size acquisitions, now in its fifth year, and caution in buying more stocks. Berkshire repurchased $1.7 billion of its own stock. Berkshire's first-quarter net loss totaled $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totaled $21.66 billion, or $13,209 per share. An accounting rule requires Berkshire to report unrealized stock losses and gains with earnings. This causes huge swings in Berkshire's net results that Buffett considers meaningless. ALSO READ: Global stocks drop after comments from Amazon, Apple on Covid-19 impact Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share, from $5.56 billion, or about $3,388 per share. Year-earlier results reflected a charge on investments linked to what prosecutors called a fraud at a solar company. Operating profit at Berkshire's business units fell 3%, with lower profit from BNSF, utilities and energy, and manufacturing, service and retailing businesses. Vice Chairman Charlie Munger told The Wall Street Journal last month that a few small Berkshire businesses might close altogether. The earnings come ahead of Berkshire's annual meeting presentation. Buffett and Berkshire Vice Chairman Greg Abel will address shareholders on Saturday afternoon. Berkshire stock underperforms Investors have been disappointed with Berkshire, whose stock price lagged the Standard & Poor's 500 by more than 20 percentage points in 2019, including dividends. While Buffett has said Berkshire's own stock would outperform in down markets, it hasn't this year. Through Friday, its shares were down 19% in 2020, compared with a 12% drop in the S&P 500. U.S. gross domestic product fell at a 4.8% annualized rate in the first quarter, the Department of Commerce said this week in its advance estimate of economic growth. ALSO READ: Apple Q1 earnings pinched by Covid-19 pandemic; iPhone hardest hit segment Many economists expect a large double-digit percentage drop in GDP the second quarter. Nationwide jobless claims have since March 21 totaled about 30.3 million, or 18% of the workforce, a level not seen since the Great Depression. The S&P 500 slid 20% in the first quarter, but many of Berkshire's common stock investments fared worse, including American Express, Bank of America, Wells Fargo and four airlines -- American, Delta, Southwest and United. Berkshire was not a large net buyer of equities in the quarter, purchasing $4 billion and selling $2.2 billion.
2 May 14:46 • Business-Standard • https://www.business-standard.com/article/companies/buffet-s-berkshire-hathaway-posts-50-bn-loss-in-coronavirus-impact-120050200989_1.htmlRating: 0.30
Buffett remains optimistic despite Berkshire’s huge loss as investments drop in first quarter
Warren Buffett’s Berkshire Hathaway Inc is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $50 billion (£39.99 billion) on Saturday and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses are facing “relatively minor to severe” negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed “essential.” The BNSF railroad saw shipping volumes of consumer products and coal fall, while Geico set aside money for car insurance premiums it no longer expects to collect. Some businesses cut salaries and furloughed workers, and retailers such as See’s Candies and the Nebraska Furniture Mart closed stores. Buffett also allowed Berkshire’s cash stake to rise to a record $137.3 billion from $128 billion at the end of 2019. That reflected the 89-year-old billionaire’s inability to make large, “elephant” size acquisitions for his Omaha, Nebraska-based conglomerate, and caution in buying stocks. Berkshire said it bought only a net $1.8 billion of stocks in the first quarter. It also said it repurchased $1.7 billion of its own stock, but that was less than in the prior quarter. “Historically, Buffett has been so visible in times of crisis, and encouraged investors to take advantage of market selloffs, but if he doesn’t see opportunities even in his own stock, what are we to think?” said Jim Shanahan, an analyst at Edward Jones & Co in St. Louis. Still, Shanahan said Berkshire is “as well positioned as it can be,” reflecting its diverse businesses and substantial liquidity and access to capital. He rates Berkshire “buy.” Berkshire released results before its annual meeting, where Buffett said Berkshire in April sold its “entire positions” in the four largest U.S. airlines: American , Delta , Southwest and United . Buffett said Berkshire “made a mistake” investing approximately $7 billion to $8 billion in the sector, which was changed “in a very major way” as the pandemic shut down most air travel, through no fault of the airlines. The meeting was streamed on Yahoo Finance. It was held without the usual “Woodstock for Capitalists,” a weekend of festivities that normally draws tens of thousands of people to Omaha, and which Buffett canceled because of the pandemic. BERKSHIRE STOCK UNDERPERFORMS Berkshire’s first-quarter net loss was $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses on stock and other investments. Net earnings were $21.66 billion, or $13,209 per share, a year earlier. An accounting rule requires Berkshire to report unrealized stock losses and gains with net results, causing huge swings that Buffett considers meaningless. Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share, from $5.56 billion, or about $3,388 per share. But year-earlier results reflected a charge for investments linked to what prosecutors called a Ponzi scheme at a solar company, which Berkshire did not know about. Operating profit at Berkshire’s businesses fell 3%, with declines at BNSF, utilities and energy units, and manufacturing, service and retailing operations such as Precision Castparts, which Berkshire bought for $32.1 billion in 2016. Geico was able to post a 28% gain in pre-tax underwriting profit because people drove less, resulting in fewer claims for crashes. Still, the insurer, like others, is offering relief on premiums to policyholders. Vice Chairman Charlie Munger told The Wall Street Journal last month that Berkshire might close a few small businesses. Investors have been disappointed with Berkshire. Its stock price has fallen 19% in 2020, compared with a 12% drop in the Standard & Poor’s 500 <.SPX>, despite Buffett’s prediction that Berkshire would outperform in down markets. The decline came after Berkshire’s stock lagged the index by more than 20 percentage points in 2019, including dividends. In the first quarter, many Berkshire stock investments fared worse than the S&P, including American Express , Bank of America , Wells Fargo and the four airlines. Falling stocks also caused a $1.39 billion pre-tax loss on derivatives contracts, where Berkshire is betting stock prices will rise over the long haul. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
2 May 13:11 • The Globe and Mail • https://www.theglobeandmail.com/investing/article-buffetts-berkshire-hathaway-reports-nearly-50b-loss-as-investments/Rating: 2.18
Buffett's Berkshire Hathaway posts record loss on coronavirus, but operating profit rises
Warren Buffett's Berkshire Hathaway Inc posted a higher operating profit on May 2, but the coronavirus pandemic pummeled its common stock investments and led to a record net loss. Berkshire's first-quarter net loss totaled $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totaled $21.66 billion, or $13,209 per share. Quarterly operating profit, which Buffett considers a better performance measure, rose 6 percent to $5.87 billion from $5.56 billion. An accounting rule requires Berkshire to report unrealized stock losses and gains with earnings. This causes huge swings in Berkshire's net results that Buffett considers meaningless.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/business/earnings/buffetts-berkshire-hathaway-posts-record-loss-on-coronavirus-but-operating-profit-rises-5215301.htmlRating: 0.30
Buffett's Berkshire posts nearly $50 billion loss as coronavirus causes pain
By Jonathan Stempel (Reuters) - Warren Buffett's Berkshire Hathaway Inc is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $50 billion on Saturday and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses are facing "relatively minor to severe" negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed "essential." The BNSF railroad saw shipping volumes of consumer products and coal fall, while Geico set aside money for car insurance premiums it no longer expects to collect. Some businesses cut salaries and furloughed workers, and retailers such as See's Candies and the Nebraska Furniture Mart closed stores. Buffett also allowed Berkshire's cash stake to rise to a record $137.3 billion from $128 billion at the end of 2019. That reflected the 89-year-old billionaire's inability to make large, "elephant" size acquisitions for his Omaha, Nebraska-based conglomerate, and caution in buying stocks. Berkshire said it bought only a net $1.8 billion of stocks in the first quarter. It also said it repurchased $1.7 billion of its own stock, but that was less than in the prior quarter. "Historically, Buffett has been so visible in times of crisis, and encouraged investors to take advantage of market selloffs, but if he doesn't see opportunities even in his own stock, what are we to think?" said Jim Shanahan, an analyst at Edward Jones & Co in St. Louis. Still, Shanahan said Berkshire is "as well positioned as it can be," reflecting its diverse businesses and substantial liquidity and access to capital. He rates Berkshire "buy." Berkshire released results before its annual meeting, where Buffett said Berkshire in April sold its "entire positions" in the four largest U.S. airlines: American, Delta, Southwest and United. Buffett said Berkshire "made a mistake" investing approximately $7 billion to $8 billion in the sector, which was changed "in a very major way" as the pandemic shut down most air travel, through no fault of the airlines. The meeting was streamed on Yahoo Finance. It was held without the usual "Woodstock for Capitalists," a weekend of festivities that normally draws tens of thousands of people to Omaha, and which Buffett canceled because of the pandemic. BERKSHIRE STOCK UNDERPERFORMS Berkshire's first-quarter net loss was $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses on stock and other investments. Net earnings were $21.66 billion, or $13,209 per share, a year earlier. An accounting rule requires Berkshire to report unrealized stock losses and gains with net results, causing huge swings that Buffett considers meaningless. Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share, from $5.56 billion, or about $3,388 per share. But year-earlier results reflected a charge for investments linked to what prosecutors called a Ponzi scheme at a solar company, which Berkshire did not know about. Operating profit at Berkshire's businesses fell 3%, with declines at BNSF, utilities and energy units, and manufacturing, service and retailing operations such as Precision Castparts, which Berkshire bought for $32.1 billion in 2016. Geico was able to post a 28% gain in pre-tax underwriting profit because people drove less, resulting in fewer claims for crashes. Still, the insurer, like others, is offering relief on premiums to policyholders. Vice Chairman Charlie Munger told The Wall Street Journal last month that Berkshire might close a few small businesses. Investors have been disappointed with Berkshire. Its stock price has fallen 19% in 2020, compared with a 12% drop in the Standard & Poor's 500, despite Buffett's prediction that Berkshire would outperform in down markets. The decline came after Berkshire's stock lagged the index by more than 20 percentage points in 2019, including dividends. In the first quarter, many Berkshire stock investments fared worse than the S&P, including American Express, Bank of America, Wells Fargo and the four airlines. Falling stocks also caused a $1.39 billion pre-tax loss on derivatives contracts, where Berkshire is betting stock prices will rise over the long haul. (Reporting by Jonathan Stempel in New York; Editing by Megan Davies, Edmund Blair, Diane Craft and Cynthia Osterman)
2 May 12:11 • Yahoo • https://news.yahoo.com/buffetts-berkshire-posts-record-net-121126063.htmlRating: 0.30
Buffett's Berkshire posts nearly $50 billion loss as coronavirus causes pain
By Jonathan Stempel (Reuters) - Warren Buffett's Berkshire Hathaway (NYSE:BRKa) Inc is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $50 billion on Saturday and saying performance is suffering in several major operating businesses. Berkshire said most of its more than 90 businesses are facing "relatively minor to severe" negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed "essential." The BNSF railroad saw shipping volumes of consumer products and coal fall, while Geico set aside money for car insurance premiums it no longer expects to collect. Some businesses cut salaries and furloughed workers, and retailers such as See's Candies and the Nebraska Furniture Mart closed stores. Buffett also allowed Berkshire's cash stake to rise to a record $137.3 billion from $128 billion at the end of 2019. That reflected the 89-year-old billionaire's inability to make large, "elephant" size acquisitions for his Omaha, Nebraska-based conglomerate, and caution in buying stocks. Berkshire said it bought only a net $1.8 billion of stocks in the first quarter. It also said it repurchased $1.7 billion of its own stock, but that was less than in the prior quarter. "Historically, Buffett has been so visible in times of crisis, and encouraged investors to take advantage of market selloffs, but if he doesn't see opportunities even in his own stock, what are we to think?" said Jim Shanahan, an analyst at Edward Jones & Co in St. Louis. Still, Shanahan said Berkshire is "as well positioned as it can be," reflecting its diverse businesses and substantial liquidity and access to capital. He rates Berkshire "buy." Berkshire released results before its annual meeting, where Buffett said Berkshire in April sold its "entire positions" in the four largest U.S. airlines: American, Delta, Southwest and United. Buffett said Berkshire "made a mistake" investing approximately $7 billion to $8 billion in the sector, which was changed "in a very major way" as the pandemic shut down most air travel, through no fault of the airlines. The meeting was streamed on Yahoo (NASDAQ:AABA) Finance. It was held without the usual "Woodstock for Capitalists," a weekend of festivities that normally draws tens of thousands of people to Omaha, and which Buffett canceled because of the pandemic. BERKSHIRE STOCK UNDERPERFORMS Berkshire's first-quarter net loss was $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses on stock and other investments. Net earnings were $21.66 billion, or $13,209 per share, a year earlier. An accounting rule requires Berkshire to report unrealized stock losses and gains with net results, causing huge swings that Buffett considers meaningless. Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share, from $5.56 billion, or about $3,388 per share. But year-earlier results reflected a charge for investments linked to what prosecutors called a Ponzi scheme at a solar company, which Berkshire did not know about. Operating profit at Berkshire's businesses fell 3%, with declines at BNSF, utilities and energy units, and manufacturing, service and retailing operations such as Precision Castparts, which Berkshire bought for $32.1 billion in 2016. Geico was able to post a 28% gain in pre-tax underwriting profit because people drove less, resulting in fewer claims for crashes. Still, the insurer, like others, is offering relief on premiums to policyholders. Vice Chairman Charlie Munger told The Wall Street Journal last month that Berkshire might close a few small businesses. Investors have been disappointed with Berkshire. Its stock price has fallen 19% in 2020, compared with a 12% drop in the Standard & Poor's 500, despite Buffett's prediction that Berkshire would outperform in down markets. The decline came after Berkshire's stock lagged the index by more than 20 percentage points in 2019, including dividends. In the first quarter, many Berkshire stock investments fared worse than the S&P, including American Express (NYSE:AXP), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and the four airlines. Falling stocks also caused a $1.39 billion pre-tax loss on derivatives contracts, where Berkshire is betting stock prices will rise over the long haul.
2 May 00:00 • Investing.com • https://www.investing.com/news/coronavirus/buffetts-berkshire-posts-record-net-loss-on-coronavirus-operating-profit-rises-2158659Rating: 0.30
Buffett's firm reports nearly $50B loss as investments drop
OMAHA, Neb. — Warren Buffett’s company reported a nearly $50 billion loss on Saturday because of a huge drop in the paper value of its investments, though the company is still sitting on a huge pile of cash. Berkshire Hathaway Inc. said it lost $49.7 billion, or $30,653 per Class A share, during the first quarter. That’s down from last year’s profit of $21.66 billion, or $13,209 per Class A share. The biggest factor in the loss was a $54.5 billion loss on the value of Berkshire’s investment portfolio as the stock market declined sharply after the coronavirus outbreak began. The year before, Berkshire’s investments added $15.5 billion to the company’s profits. Buffett has long said Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely. By that measure, Berkshire’s operating earnings improved to $5.87 billion, or $3,617.62 per Class A share, from $5.56 billion, or $3,387.56 per Class A share. Analysts surveyed by FactSet expected operating earnings per Class A share of $3,796.90 on average. Berkshire’s revenue grew 1 per cent to $61.27 billion. Berkshire is sitting on a pile of more than $137 billion cash because Buffett has struggled to find major acquisitions for the company recently On Saturday afternoon, Buffett plans to lead an abbreviated online version of Berkshire’s annual meeting without any of the roughly 40,000 shareholders who typically attend. The company shifted to an online meeting and cancelled all the events surrounding the event because of the coronavirus outbreak. Berkshire Hathaway Inc. owns more than 90 companies, including the BNSF railroad and insurance, utility, furniture and jewelry businesses. The company also has major investments in such companies as Apple, American Express, Coca-Cola and Bank of America. Josh Funk, The Associated Press
2 May 13:52 • City NEWS 1130 • https://www.citynews1130.com/2020/05/02/buffetts-firm-reports-nearly-50b-loss-as-investments-drop/Rating: 0.77
Buffett's firm reports nearly $50B loss as investments drop
OMAHA, Neb. (AP) - Warren Buffett’s company reported a nearly $50 billion loss on Saturday because of a huge drop in the paper value of its investments, though the company is still sitting on a huge pile of cash. Berkshire Hathaway Inc. said it lost $49.7 billion, or $30,653 per Class A share, during the first quarter. That’s down from last year’s profit of $21.66 billion, or $13,209 per Class A share. The biggest factor in the loss was a $54.5 billion loss on the value of Berkshire’s investment portfolio as the stock market declined sharply after the coronavirus outbreak began. The year before, Berkshire’s investments added $15.5 billion to the company’s profits. Buffett has long said Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely. By that measure, Berkshire’s operating earnings improved to $5.87 billion, or $3,617.62 per Class A share, from $5.56 billion, or $3,387.56 per Class A share. Analysts surveyed by FactSet expected operating earnings per Class A share of $3,796.90 on average. Berkshire’s revenue grew 1 percent to $61.27 billion. Berkshire is sitting on a pile of more than $137 billion cash because Buffett has struggled to find major acquisitions for the company recently On Saturday afternoon, Buffett plans to lead an abbreviated online version of Berkshire’s annual meeting without any of the roughly 40,000 shareholders who typically attend. The company shifted to an online meeting and cancelled all the events surrounding the event because of the coronavirus outbreak.
2 May 00:00 • The Washington Times • https://www.washingtontimes.com/news/2020/may/2/buffetts-firm-reports-nearly-50b-loss-as-investmen/Rating: 0.79
Buffett’s Berkshire Hathaway slumps to $50bn loss in first quarter
Warren Buffett’s Berkshire Hathaway swung to a $49.7 billion (€44.8 billion) loss in the first three months of the year, as the sharp sell-off in global stock markets hammered its investment portfolio. The sprawling industrial conglomerate disclosed on Saturday that its stock portfolio, which includes shares in blue-chip groups such as Apple and Bank of America, declined by $55.5 billion in value in the quarter alongside the 20 per cent drop in the S&P 500. That decline more than offset the improvement in underlying earnings at Berkshire, which owns railroad Burlington Northern Santa Fe, insurer Geico and chocolate maker See’s Candies. Operating profits rose 5.7 per cent from a year earlier to $5.9 billion, as investment gains from its insurance business climbed. “The amount of investment gains [AND]losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules,” the company said in a statement. Berkshire’s cash pile swelled to a record $137 billion and the group shifted a large portion of that into US Treasuries in the first quarter, a filing with US regulators showed. Mr Buffett has for more than four years struggled to invest that cash in one of the major acquisitions for which the company is known. The so-called Oracle of Omaha has blamed high equity valuations in previous letters to investors as one of the main reasons the company has remained on the sidelines, as other large publicly traded groups went on acquisition sprees in recent years. Shares of Berkshire have fallen 19 per cent this year to $273,975. - Copyright The Financial Times Limited 2020
2 May 13:26 • The Irish Times • https://www.irishtimes.com/business/buffett-s-berkshire-hathaway-slumps-to-50bn-loss-in-first-quarter-1.4243812Rating: 1.99
Buffett’s Berkshire posts record net loss on Covid-19, operating profit rises
NEW YORK, May 2 — Warren Buffett’s Berkshire Hathaway Inc posted a higher operating profit on Saturday, but the coronavirus pandemic pummelled its common stock investments and led to a record net loss. Berkshire’s first-quarter net loss totalled US$49.75 billion (RM214 billion), or US$30,653 per Class A share, reflecting US$54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totalled US$21.66 billion, or US$13,209 per share. Quarterly operating profit, which Buffett considers a better performance measure, rose 6 per cent to USUS $5.56 billion. An accounting rule requires Berkshire to report unrealized stock losses and gains with earnings. This causes huge swings in Berkshire’s net results that Buffett considers meaningless. — Reuters
2 May 12:14 • Malaymail • https://www.malaymail.com/news/money/2020/05/02/buffetts-berkshire-posts-record-net-loss-on-covid-19-operating-profit-rises/1862456Rating: 1.42
Buffett’s firm reports nearly $50B loss as investments drop
OMAHA, Neb. (AP) — Warren Buffett’s company, Berkshire Hathaway, has reported a nearly $50 billion loss because of a huge drop in the paper value of its investments. Berkshire said Saturday that it lost $49.7 billion, or $30,653 per Class A share, during the first quarter. That’s down from last year’s profit of $21.66 billion, or $13,209 per Class A share. The biggest factor in the loss was a $54.5 billion paper loss Berkshire’s investment portfolio as the stock market declined sharply after the coronavirus outbreak began. Berkshire is sitting on a pile of more than $137 billion cash because Buffett has struggled to find major acquisitions recently.
2 May 14:34 • WSVN 7News • https://wsvn.com/news/us-world/buffetts-firm-reports-nearly-50b-loss-as-investments-drop/Rating: 0.30
COVID-19 impact: Buffett’s Berkshire posts nearly $50b loss
New York: Warren Buffett’s Berkshire Hathaway Inc on Saturday posted a record net loss of nearly $50 billion as the coronavirus pandemic pummeled its common stock investments, but operating profit rose even as COVID-19 hurt its businesses. Berkshire’s first-quarter net loss totaled $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totaled $21.66 billion, or $13,209 per share. Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion, or about $3,624 per Class A share $5.56 billion, or about $3,388 per share. An accounting rule requires Berkshire to report unrealized stock losses and gains with earnings. This causes huge swings in Berkshire’s net results that Buffett considers meaningless. Nonetheless, Berkshire has loaded up on stocks in part because of Buffett’s inability to find large companies to buy outright, a drought that has lasted more than four years and left Berkshire with about $137.3 billion of cash. The Standard & Poor’s 500 slid 20% in the first quarter but there were steeper falls in several large Berkshire holdings including American Express, Bank of America , Wells Fargo and four airlines -- American , Delta, Southwest and United. Berkshire’s operating businesses, like much of corporate America, were not unscathed by COVID-19, which hurt volumes at the BNSF railroad and forced retail businesses such as See’s Candies to temporarily close stores. Most of Berkshire’s businesses have been hurt by the pandemic, with effects so far ranging from “relatively minor to severe,” and revenues of businesses deemed “essential” have slowed “considerably” in April, the company said. Vice Chairman Charlie Munger told The Wall Street Journal last month that a few small Berkshire businesses might close altogether.
2 May 12:52 • Gulf News • https://gulfnews.com/business/markets/covid-19-impact-buffetts-berkshire-posts-nearly-50b-loss-1.71294568Rating: 3.21
Coronavirus impact: Warren Buffett's Berkshire posts record net loss of $50 billion in March quarter
Berkshire's first-quarter net loss totaled $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses from investments, mainly common stocks Warren Buffett's Berkshire Hathaway Inc posted a higher operating profit on Saturday, but the coronavirus pandemic pummeled its common stock investments and led to a record net loss. Berkshire's first-quarter net loss totaled $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totaled $21.66 billion, or $13,209 per share. Also Read: Warren Buffett to address Berkshire Hathaway AGM on May 2; here's full schedule Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion from $5.56 billion. An accounting rule requires Berkshire to report unrealized stock losses and gains with earnings. This causes huge swings in Berkshire's net results that Buffett considers meaningless.
2 May 13:37 • Business Today • https://www.businesstoday.in/current/world/coronavirus-impact-warren-buffett-berkshire-posts-record-net-loss-of-50-billion-in-march-quarter/story/402698.htmlRating: 2.10
Stock market slide pushes Berkshire Hathaway to $50bn loss
Warren Buffett’s Berkshire Hathaway recorded a $49.7bn loss in the first three months of the year, as the sharp sell-off in global stock markets hammered its investment portfolio. The sprawling conglomerate disclosed on Saturday that the decline in value of its stock and derivative portfolio, which includes shares in blue-chip groups such as Apple and Bank of America, generated a $55.6bn loss in the quarter. Multibillion-dollar mark-to-market losses in the quarter accompanied a 20 per cent drop in the S&P 500. That decline more than offset the improvement in underlying earnings at Berkshire, which owns railroad Burlington Northern Santa Fe, insurer Geico and chocolate maker See’s Candies. Operating profits rose 5.7 per cent from a year earlier to $5.9bn, as investment gains from its insurance business climbed. “The amount of investment gains [and] losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules,” the company said in a statement. Berkshire’s cash pile swelled to a record $137bn and the group shifted a large portion of that into US Treasuries in the first quarter, a filing with US regulators showed. Mr Buffett has for more than four years struggled to invest that cash in one of the major acquisitions for which the company is known. The so-called Oracle of Omaha has blamed high equity valuations in previous letters to investors as one of the main reasons the company has remained on the sidelines, as other large publicly traded groups went on acquisition sprees in recent years. Berkshire instead purchased $1.7bn of its own common stock during the quarter, with much of that buying occurring in late-February and early-March as the price of its own shares were sliding alongside the broader market. But those purchases did not continue into the start of April, according to James Shanahan, an analyst who follows Berkshire at Edward Jones. “If Buffett is not seeing opportunities in his own stock should we conclude the recent market sell-off isn’t a buying opportunity,” Mr Shanahan asked. “I don’t know what if anything is more important to ask Buffett today.” The quarterly disclosure on Berkshire’s many subsidiaries showed only the early impact from the coronavirus outbreak, which is known to have killed more than 200,000 people and has sparked a severe economic downturn. “As efforts to contain the spread of the Covid-19 pandemic accelerated in the second half of March and continued through April, most of our businesses were negatively affected, with the effects to date ranging from relatively minor to severe,” Berkshire said. FT News Briefing podcast9 min listenBanks get ready for bad loans, losses at Berkshire Hathaway, BlackRock’s influence The group’s BNSF railroad reported a 6 per cent decline in revenues in the period, led by a drop-off in shipments of consumer products. Sales at aerospace-parts manufacturer Precision Castparts slid as Boeing suspended the manufacturing of its 737-Max jet and shipments to covid-affected businesses declined. NetJets suffered from lower demand while Clayton Homes, which makes and sells mobile homes, increased its provisions for loan losses related to the virus. Insurer Geico was one of the bright spots for the company, as shelter-in-place guidelines across the US led to a drop in auto-related claims. Berkshire said it was taking measures to cut costs and that some of its business lines had furloughed employees and reduced staff salaries. Shares of Berkshire have fallen 19 per cent this year to $273,975. Investors will get a fuller update from Mr Buffett later on Saturday through a live video-cast. The company, which remains among the most highly valued publicly traded groups in the world, cancelled the festivities that normally surround its annual meeting due to the health crisis. The tens of thousands of Berkshire shareholders who traditionally descend on downtown Omaha for the company’s annual meeting will instead hear his missives and those from Berkshire vice-chairman Greg Abel this year from their own homes.
2 May 15:24 • Ft • https://www.ft.com/content/b7184d64-4cda-4061-ac39-5ded1696fb84Rating: 2.96
Warren Buffett's Berkshire Hathaway sold more than $6 billion in stock in April, its first-quarter earnings show
Warren Buffett’s Berkshire Hathaway sold more than $US6 billion worth of stocks in April,according to first-quarter earnings released on Saturday ahead of its annual meeting. The famed investor’s conglomerate holds stakes in Apple, Amazon, Coca-Cola, and other companies. It was widely expected to capitalise on the coronavirus sell-off and buy stocks on the cheap, but instead netted about $US6.1 billion from stock sales last month. Berkshire’s cash pile swelled from $US128 billion on December 31 to $US137 billion at the end of March, despite it spending $US1.7 billion on share buybacks in the period. The group’s first-quarter figures fell short of the consensus estimates of Wall Street analysts polled by Bloomberg. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode Here are the key numbers: Berkshire posted a net loss of $US49.7 billion last quarter, a sharp swing from its net earnings of $US21.6 billion in the first quarter of 2019. The shift reflected $US54.5 billion in investment losses, compared to a $US15.5 billion gain in the same period last year. However, Berkshire warned investors against reading too much into its earnings. “The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules,” the company said in its earnings release. Berkshire’s operating earnings grew 6% to $US5.9 billion as insurance investment income and “other” earnings rose, offsetting lower insurance underwriting profits due to expected pandemic payouts and less income from its railroad, utilities and energy segment. The conglomerate had $US113 billion invested in equity securities at the end of March, a slight increase from $US110 billion at the end of December. It raked in $US965 million in after-tax gains from sales of investments last quarter, a sharp increase from $US392 million in the comparable period. Read more:Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them Like many other companies, Berkshire warned that the coronavirus outbreak has “negatively affected” most of its businesses, with the effects ranging from “relatively minor to severe.” Several of its businesses including railroads, utilities, and insurance have been deemed essential and allowed to continue operating, but their revenues “slowed considerably” in April. Other Berkshire companies including retailers, and some manufacturing and service businesses are being “severely impacted” by closures. Berkshire added that the fallout will likely continue in the current quarter. “The government and private sector responses to contain its spread began to significantly affect our operating businesses in March and will likely adversely affect nearly all of our operations in the second quarter, although such effects may vary significantly,” the company said. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond.
2 May 13:36 • Business Insider Australia • https://www.businessinsider.com.au/warren-buffett-berkshire-hathaway-sold-6-billion-stock-april-2020-5Rating: 0.30
Warren Buffett's Berkshire Hathaway sold more than $6 billion in stock in April, its first-quarter earnings show
Warren Buffett's Berkshire Hathaway sold more than $6 billion worth of stocks in April, according to first-quarter earnings released on Saturday ahead of its annual meeting. The famed investor's conglomerate holds stakes in Apple, Amazon, Coca-Cola, and other companies. It was widely expected to capitalize on the coronavirus sell-off and buy stocks on the cheap, but instead netted about $6.1 billion from stock sales last month. Berkshire's cash pile swelled from $128 billion on December 31 to $137 billion at the end of March, despite $1.8 billion in net stock purchases and $1.7 billion in share buybacks in the period. The group's first-quarter figures fell short of the consensus estimates of Wall Street analysts polled by Bloomberg. Read more:'Brace for selling': A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now - opening the floodgates for a 'sell in May' episode Here are the key numbers: Berkshire posted a net loss of $49.7 billion last quarter, its biggest-ever quarterly loss and a sharp swing from its net earnings of $21.6 billion in the first quarter of 2019. The shift reflected $54.5 billion in investment losses, compared to a $15.5 billion gain in the same period last year. However, Berkshire warned investors against reading too much into its earnings. "The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules," the company said in its earnings release. Berkshire's operating earnings grew 6% to $5.9 billion as insurance investment income and "other" earnings rose, offsetting lower insurance underwriting profits due to expected pandemic payouts and less income from its railroad, utilities and energy segment. The conglomerate had $113 billion invested in equity securities at the end of March, a slight increase from $110 billion at the end of December. It raked in $965 million in after-tax gains from sales of investments last quarter, a sharp increase from $392 million in the comparable period. Read more:Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes - and details a 3-part process for protecting against them Like many other companies, Berkshire warned that the coronavirus outbreak has "negatively affected" most of its businesses, with the effects ranging from "relatively minor to severe." Several of its businesses including railroads, utilities, and insurance have been deemed essential and allowed to continue operating, but their revenues "slowed considerably" in April, Berkshire said. Other companies including retailers and some manufacturing and service groups are being "severely impacted" by closures, it added. Berkshire added that the coronavirus fallout will likely continue in the current quarter. "The government and private sector responses to contain its spread began to significantly affect ouroperating businesses in March and will likely adversely affect nearly all of our operations in the second quarter, although such effects may vary significantly," the company said. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won't end as quickly as it began and shares an investing strategy for the next 3 years and beyond.
2 May 09:39 • Business Insider • https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-sold-6-billion-stock-april-2020-5-1029156743Rating: 0.30
Warren Buffett's Berkshire Hathaway sold more than $6 billion in stock in April, its first-quarter earnings show, Business Insider - Business Insider Singapore
Warren Buffett’s Berkshire Hathaway sold more than $6 billion worth of stocks in April, according to first-quarter earnings released on Saturday ahead of its annual meeting. The famed investor’s conglomerate holds stakes in Apple, Amazon, Coca-Cola, and other companies. It was widely expected to capitalize on the coronavirus sell-off and buy stocks on the cheap, but instead netted about $6.1 billion from stock sales last month. Berkshire’s cash pile swelled from $128 billion on December 31 to $137 billion at the end of March, despite it spending $1.7 billion on share buybacks in the period. The group’s first-quarter figures fell short of the consensus estimates of Wall Street analysts polled by Bloomberg. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode Here are the key numbers: Berkshire posted a net loss of $49.7 billion last quarter, a sharp swing from its net earnings of $21.6 billion in the first quarter of 2019. The shift reflected $54.5 billion in investment losses, compared to a $15.5 billion gain in the same period last year. However, Berkshire warned investors against reading too much into its earnings. “The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules,” the company said in its earnings release. Berkshire’s operating earnings grew 6% to $5.9 billion as insurance investment income and “other” earnings rose, offsetting lower insurance underwriting profits due to expected pandemic payouts and less income from its railroad, utilities and energy segment. The conglomerate had $113 billion invested in equity securities at the end of March, a slight increase from $110 billion at the end of December. It raked in $965 million in after-tax gains from sales of investments last quarter, a sharp increase from $392 million in the comparable period. Read more:Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them Like many other companies, Berkshire warned that the coronavirus outbreak has “negatively affected” most of its businesses, with the effects ranging from “relatively minor to severe.” Several of its businesses including railroads, utilities, and insurance have been deemed essential and allowed to continue operating, but their revenues “slowed considerably” in April. Other Berkshire companies including retailers, and some manufacturing and service businesses are being “severely impacted” by closures. Berkshire added that the fallout will likely continue in the current quarter. “The government and private sector responses to contain its spread began to significantly affect our operating businesses in March and will likely adversely affect nearly all of our operations in the second quarter, although such effects may vary significantly,” the company said. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond.
2 May 13:36 • www.businessinsider.sg • https://www.businessinsider.sg/warren-buffett-berkshire-hathaway-sold-6-billion-stock-april-2020-5Rating: 0.30
Warren Buffett’s Berkshire Hathaway sold more than $6 billion in stock in April, its first-quarter earnings show
Warren Buffett’s Berkshire Hathaway sold more than $6 billion worth of stocks in April, according to first-quarter earnings released on Saturday ahead of its annual meeting. The famed investor’s conglomerate holds stakes in Apple, Amazon, Coca-Cola, and other companies. It was widely expected to capitalize on the coronavirus sell-off and buy stocks on the cheap, but instead netted about $6.1 billion from stock sales last month. Berkshire’s cash pile swelled from $128 billion on December 31 to $137 billion at the end of March, despite it spending $1.7 billion on share buybacks in the period. The group’s first-quarter figures fell short of the consensus estimates of Wall Street analysts polled by Bloomberg. Read more:‘Brace for selling’: A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now – opening the floodgates for a ‘sell in May’ episode Here are the key numbers: Berkshire posted a net loss of $49.7 billion last quarter, a sharp swing from its net earnings of $21.6 billion in the first quarter of 2019. The shift reflected $54.5 billion in investment losses, compared to a $15.5 billion gain in the same period last year. However, Berkshire warned investors against reading too much into its earnings. “The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules,” the company said in its earnings release. Berkshire’s operating earnings grew 6% to $5.9 billion as insurance investment income and “other” earnings rose, offsetting lower insurance underwriting profits due to expected pandemic payouts and less income from its railroad, utilities and energy segment. The conglomerate had $113 billion invested in equity securities at the end of March, a slight increase from $110 billion at the end of December. It raked in $965 million in after-tax gains from sales of investments last quarter, a sharp increase from $392 million in the comparable period. Read more:Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them Like many other companies, Berkshire warned that the coronavirus outbreak has “negatively affected” most of its businesses, with the effects ranging from “relatively minor to severe.” Several of its businesses including railroads, utilities, and insurance have been deemed essential and allowed to continue operating, but their revenues “slowed considerably” in April. Other Berkshire companies including retailers, and some manufacturing and service businesses are being “severely impacted” by closures. Berkshire added that the fallout will likely continue in the current quarter. “The government and private sector responses to contain its spread began to significantly affect our operating businesses in March and will likely adversely affect nearly all of our operations in the second quarter, although such effects may vary significantly,” the company said. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond.
2 May 13:36 • Business Insider Malaysia • https://www.businessinsider.my/warren-buffett-berkshire-hathaway-sold-6-billion-stock-april-2020-5Rating: 0.30
Warren Buffett’s company reports Q1 loss of $50 billion
Kindly Share This Story: Hard-hit by the market rout surrounding the coronavirus pandemic, Berkshire Hathaway, the holding company of Warren Buffett, has reported first-quarter net losses of nearly $50 billion, it reported Saturday. The company, based in Omaha, Nebraska, called the setback “temporary” but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits. Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company’s annual gathering in Omaha is a high-point of the calendar for investors, a “Woodstock for capitalists.” But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway’s wide range of investments, and the need for social distancing forced it to hold the annual meeting online. The meeting is set to begin at 3:45 pm Central time (2045 GMT) and will be live-streamed. Buffett, in a statement, played down the bleak-looking net figure. He said a better measure of the company’s performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations. By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier. The brutal drop in the net — to a loss of $49.75 billion from a profit last year of $21.7 billion — resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology. The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated “Oracle of Omaha.” Buffett, famous for his relatively sedate lifestyle, turns 90 on August 30. In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting “comparative revenue and earnings increases” over the same 2019 period. Many of its companies — including in rail transport, energy production, and some manufacturing and service businesses — are deemed essential and are able to continue working amid the far-reaching confinement orders. But their turnover slowed considerably in April, the company statement said. [AFP] Vanguard News Nigeria. Kindly Share This Story:
2 May 15:38 • Vanguard News • https://www.vanguardngr.com/2020/05/warren-buffetts-company-reports-q1-loss-of-50-billion/Rating: 2.43
UK starts state-backed loans for smallest firms
3 May 23:09
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UK starts state-backed loans for smallest firms
LONDON, May 4 — A government-backed loan scheme to help Britain’s small businesses survive the coronavirus lockdown comes into effect today, allowing firms such as hairdressing salons, coffee shops and florists to receive emergency cash. Finance minister Rishi Sunak, who previously opposed 100 per cent state backing for commercial loans, announced the new facility on April 27, bowing to pressure to do more for the smallest companies after a previous scheme got off to a slow start. The new “Bounce Back Loans” allow businesses including sole traders to borrow between £2,000 and £50,000 (RM10,710.48-RM267,762) at a flat interest rate of 2.5 per cent. Banks handling the loans will not be required to run credit checks or assess the long-term viability of applicants. “Small businesses will play a key role creating jobs and securing economic growth as we recover from the coronavirus pandemic,” Sunak said in a statement to mark the first day when the Bounce Back scheme goes into operation. “The Bounce Back loan scheme will make sure they get the finance they need — helping them bounce back and protect jobs,” he said. Most British businesses have been shut to the public since March 23, when the government imposed social distancing measures to slow the spread of the virus. Government forecasters have said the economy could contract by 35 per cent in the second quarter. Britain last month announced an emergency 330 billion-pound credit scheme including loans of up to £5 million for small and medium-sized companies, with state guarantees of 80 per cent. But many companies said they struggled to secure bank approvals, putting pressure on Sunak to provide full state guarantees for commercial loans to the smallest businesses. From today, any firm that has already taken out a loan of £50,000 or less under the 80 per cent-state-backed scheme can apply to have it switched over to the Bounce Back scheme. — Reuters
3 May 23:09 • Malaymail • https://www.malaymail.com/news/money/2020/05/04/uk-starts-state-backed-loans-for-smallest-firms/1862724Rating: 1.42
Donohoe to ‘follow up’ on banks over mortgage loan issues
Finance Minister Paschal Donohoe has pledged to investigate if banks are withdrawing mortgage loan offers because workers are part paid by the state wage subsidy scheme. Mr Donohoe also said he will look at whether changes are necessary for this scheme and the welfare pandemic payment and if it is "affordable" for the Government to extend them or not. “So we are going to be looking at the future of both those programmes in the coming weeks. “"What we will be looking to do is to change them in line with what is happening in our economy and with public health. "You can appreciate that these are measures that are costing between €300m to €500m per week. "And because of that, we need to get the balance right between them being affordable for our country overall, while of course appreciating they're making a massive difference to people who've either lost a job or are still in a job because of the wage subsidy scheme". He will follow up on concerns that the main banks are withdrawing mortgage loan approvals if applicants have their pay in part subsidised by the wage subsidy scheme. “That is a matter I will follow up on.” Fine Gael TD Colm Burke has identified cases to the Irish Examiner where families have had loans for home building works or mortgages withdrawn by banks. Mr Donohoe said the idea of the wage subsidy was that companies would remain viable. The Government has rolled out a multi-billion euro package of assistance for employers and workers during the crisis. Around 450,000 workers are receiving state payments through a temporary wage subsidy scheme, while around another 600,000 have applied for a special Covid-19 unemployment benefit. Speaking to On the Record on Newstalk, he elaborated on €6.5bn in supports for businesses announced over the weekend, in response to the virus and lockdown. These include a write-off of commercial rates of up to €10,000, a three-month freeze to pay taxes as well as a €2bn state investment fund and a €2bn loan scheme. However, some of these supports are dependent on a government being formed so that legislation for the schemes successfully passes through the Dail and Seanad. Mr Donohoe said yesterday that a new government and agreement on one would be needed at the end of June or early July, so measures could be approved by parliament. "I know they are going to be needed soon. "And even though we are not in position to implement them fully, because some laws have to be passed first, it's going to take us a number of weeks in any event to get the schemes up and running." Separately, he ruled out the government intervening with commercial rent agreements. He said the government were not allowed do this, despite calls for intervention from SMEs. HSE preparing plan for private hospitals to do urgent non-Covid procedures
3 May 22:23 • Irishexaminer • https://www.irishexaminer.com/breakingnews/ireland/donohoe-to-follow-up-on-banks-over-mortgage-loan-issues-997497.htmlRating: 0.69
UK starts state-backed loans for smallest firms
LONDON — A government-backed loan scheme to help Britain’s small businesses survive the coronavirus lockdown comes into effect on Monday, allowing firms such as hairdressing salons, coffee shops and florists to receive emergency cash. Finance minister Rishi Sunak, who previously opposed 100% state backing for commercial loans, announced the new facility on April 27, bowing to pressure to do more for the smallest companies after a previous scheme got off to a slow start. The new “Bounce Back Loans” allow businesses including sole traders to borrow between 2,000 and 50,000 pounds ($2,500-$62,500) at a flat interest rate of 2.5%. Banks handling the loans will not be required to run credit checks or assess the long-term viability of applicants. “Small businesses will play a key role creating jobs and securing economic growth as we recover from the coronavirus pandemic,” Sunak said in a statement to mark the first day when the Bounce Back scheme goes into operation. “The Bounce Back loan scheme will make sure they get the finance they need – helping them bounce back and protect jobs,” he said. Most British businesses have been shut to the public since March 23, when the government imposed social distancing measures to slow the spread of the virus. Government forecasters have said the economy could contract by 35% in the second quarter. Britain last month announced an emergency 330 billion-pound credit scheme including loans of up to 5 million pounds for small and medium-sized companies, with state guarantees of 80%. But many companies said they struggled to secure bank approvals, putting pressure on Sunak to provide full state guarantees for commercial loans to the smallest businesses. From Monday, any firm that has already taken out a loan of 50,000 pounds or less under the 80%-state-backed scheme can apply to have it switched over to the Bounce Back scheme. ($1 = 0.7999 pounds) (Reporting by Estelle Shirbon; Editing by Edmund Blair)
3 May 23:02 • Financial Post • https://business.financialpost.com/pmn/business-pmn/uk-starts-state-backed-loans-for-smallest-firmsRating: 0.94
Americans out of work during coronavirus outbreak see new challenge: Rent due
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here. Over 30 million people around the U.S. have filed for unemployment benefits after losing work in the coronavirus pandemic -- but it's the start of the month of May, and for many of them, rent and mortgage payments are due. Federal data released this week showed the U.S. economy contracted at a 4.8 percent annual rate last quarter as the pandemic put the nation into a recession. Economists said they expected January-March to be just a taste of the widespread pain being recorded for April-June. And, while a record number of people applied for unemployment insurance payments, many others out of work haven’t qualified or couldn’t get through the states’ overwhelmed systems. More than three dozen cities and states, including San Francisco, Los Angeles and New York state, have put in place their own policies to halt evictions, foreclosures and utility shutoffs out of concern that the economic fallout from massive job losses will push many people to the brink of homelessness at a time when they’ve needed to stay in their houses and apartments. However, while deputies won’t be knocking at their doors, for now, the money is still due, and delaying the payments would put off the pain. CLICK HERE FOR FULL CORONAVIRUS COVERAGE Jason W. Still said he’s been waiting six weeks for his first unemployment check since he lost his job as a cook at an upscale restaurant in Spokane, Washington. Still said he’s filed for unemployment every week, with nothing yet to show for it, since he was first interviewed by The Associated Press a month ago, just before he paid April rent. His wife still had her job in the legal marijuana industry, and his $1,200 stimulus check helped pay an assortment of bills. “But, I’m about to hit my savings and I really don’t want to do that,” he said. Washington Gov. Jay Inslee this week announced a partial opening May 5 of some recreational offerings including state parks, fishing and golf courses, but restaurant dining rooms and most other businesses will remain closed for now. Many experts have been skeptical the U.S. economy will bounce back quickly later in the year, noting that the virus could flare up again -- or many Americans might be too worried to return to business as usual. The United States has continued to see tens of thousands of new infections each day, with over 1,400 new deaths reported Saturday. Health experts have warned a second wave of infections could hit unless testing is expanded dramatically once the lockdowns are relaxed. But, pressure to reopen has kept building after the shutdown of businesses worldwide plunged the global economy into its deepest slump since the 1930s and wiped out millions of jobs. The virus has infected an estimated 3.4 million people and killed over 244,000 worldwide, including over 66,000 dead in the United States, according to a count by Johns Hopkins University. All the numbers are considered to be undercounts, due in part to testing issues, the problems of counting deaths in a pandemic and deliberate concealment by some governments. Anything but an opening soon is unlikely to resolve the anxieties of people whose savings have been running out as the initial wave of service-industry layoffs swept up other hard-hit sectors, including energy. CORONAVIRUS: WHAT YOU NEED TO KNOW Eli Oderberg in Denver had his mortgage due after being swept up in a later wave of layoffs as the pandemic’s effects spread from restaurants to corners of the economy, including the oil company that had employed him to work on apps tracking spills and leaks. Oderberg lost his job in Denver on April 19, as global oil futures plunged into negative territory following the shutdowns of air travel, factories and commuting around the world. He said his wife got her first unemployment check after she lost her job in retail, but he’s still waiting for his. The Colorado website for benefits has confirmed he’s eligible, “but I haven’t been able to get through to talk to anyone after making about 100 calls each time,” he said. CLICK HERE TO GET THE FOX NEWS APP In the meantime, Oderberg has been lining up job interviews in information technology, including at least four this week, and hopes to land something quickly, before he has to scramble for their next mortgage payment for the house he’s shared with his pregnant wife and their 4-year-old daughter. “From my job, I’m accustomed to planning everything six months in advance,” Oderberg said. “So, we’re going to be OK, for now at least.” The Associated Press contributed to this report.
3 May 23:14 • Fox News • https://www.foxnews.com/us/coronavirus-americans-unemployed-jobless-rent-dueRating: 3.32
Donohoe: Supports for businesses can be maintained
Minister for Finance Paschal Donohoe has said that the latest interventions the government has announced to respond to Covid-19 can be maintained and "we can afford them". Speaking on RTÉ's This Week programme, Mr Donohoe said these commitments are aimed at restoring the economy. Mr Donohoe did not clarify how long the Covid-19 pandemic unemployment payment would remain in place. He said he will be having talks with the Taoiseach over the next few weeks and that they will be "having to make decisions about getting the balance right." He said they have to take into account that there would have been many people unemployed before Covid-19 hit, receiving jobseeker allowance and other forms of social welfare and income support. "What we need to ensure is that as we emerge from this disease, we don't end up with one group who are receiving a set of payments that they got before this disease hit, another group who are receiving the unemployment payment, and a third group who might become unemployed at some point in the future even if this disease has changed," he said. The minister said a week ago the Government put in place a set of changes to improve the scheme for those on low income and they are now moving to get the balance right again, and said he is confident they will be able to do that. He said one of the other issues that needs to be discussed and debated over the next while is state support for businesses. "The government is taking a cautious approach and the bedrock of economic confidence will be confidence of public health." He acknowledged that legislation will need to be enacted for some of the measures within the €6.5 billion support schemes, with as much as €4bn unable to be rolled out.
3 May 13:28 • RTE.ie • https://www.rte.ie/news/2020/0503/1136333-coronavirus-business-support/Rating: 2.47
Donohoe: Government to 'consider' COVID-19 wage schemes in next few weeks
The Finance Minister Paschal Donohoe has said the Government is to consider the future of COVID-19 wage subsidy schemes. He said they will look at both the COVID-19 Pandemic Unemployment Payment and Wage Subsidy Scheme in the next few weeks. It comes after the Cabinet approved supports worth over €6bn for firms to get back to business after the pandemic. It includes allowing companies to get a low-interest rate loan, a €10,000 restart grant for micro and small businesses and ‘warehousing’ of tax liabilities for a period of 12 months. Minister Donohoe told On The Record that they will be considering changes to the subsidy schemes - since some businesses may still not be able to trade as the country re-opens in phases. "What we will be looking to do is to change them in line with what is happening in our economy and with public health. "You can appreciate that these are measures that are costing between €300m to €500m per week. "And because of that, we need to get the balance right between them being affordable for our country overall, while of course appreciating they're making a massive difference to people who've either lost a job or are still in a job because of the Wage Subsidy Scheme". He also responded to comments that while new supports have been outlined for businesses, these may not be implemented as they would require legislative changes. Minister Donohoe said: "I know they are going to be needed soon. "And even though we are not in position to implement them fully, because some laws have to be passed first, it's going to take us a number of weeks in any event to get the schemes up and running. "And we can do all of that in advance then of the legislation passing". He also said he would follow up on reports that some mortgage customers who were approved have since been refused, as they are now on the Wage Subsidy Scheme. "The Wage Subsidy Scheme is being used by companies that, if we are successful is dealing with COVID - which I believe we will be - these are companies that we believe will be viable and will continue to be successful in the future", he explained. Donohoe: Government to 'consider' COVID-19 wage schemes in next few weeks
3 May 11:44 • Newstalk • https://www.newstalk.com/news/donohoe-government-consider-covid-19-wage-schemes-next-weeks-1009693Rating: 0.30
S. Korea to give cash payouts to 2.8m households this week amid pandemic
The government plans to start giving cash payouts to around 2.8 million virus-hit households starting this week, the interior ministry said Sunday.Under the measure, eligible households -- including those under the government's low-income support or disabled pension scheme -- will receive up to 1 million won ($817) in cash on Monday without going through a separate application process.In order to receive the payout in cash, all members of the household must be a recipient of the government's livelihood support, basic pension or disabled pension program.The exact amount will vary according to the number of family members -- ranging from 400,000 won for single-person households to 1 million won for households with four or more family members.The plan is part of the government's efforts to minimize the economic fallout from the coronavirus pandemic and boost consumption.The National Assembly recently approved a supplementary budget bill to fund relief payouts for all households, regardless of their income.For those who are not eligible for the cash payout, the government will distribute the amount in the form of credit or debit card points, gift cards and prepaid cards. Recipients can start applying for their chosen form of payout starting May 11, the ministry said. (Yonhap)
3 May 06:32 • Koreaherald • http://www.koreaherald.com/view.php?ud=20200503000173Rating: 1.56
How To Apply Insaf Imdad Package by Government of Punjab
LAHORE, Pakistan: Under the Chief Minister Punjab Insaf Imdad Package, 2.5 million poor and deserving families will receive the financial grant worth a cumulative Rs 10 billion. Each deserving family will receive Rs 4,000 per month at home through Mobile Companies. The needy families may apply for the financial grant from home through any of the following simple procedures; All the applications will be verified online through various data including of BISP, Ehsaas Program, and Power Companies. Once the verification process is completed by the provincial government, the financial aid will be transferred to the affected person. The Punjab government said that the cash will be transferred through Easypaisa after biometric verification so that it would benefit only real deserving people. Before Now While addressing a Press Conference in Lahore on Tuesday, the Punjab Chief Minister Sardar Usman Ahmad Khan Buzdar said that the Punjab government has earmarked Rs 10 billion for the financial assistance of 2.5 million needy families in the province. Usman Buzdar said that each deserving family will be paid Rs 4,000 monthly in a transparent and foolproof manner as part of the Insaf Imdad Package. The Chief Minister said that the financial assistance will be provided by the SMS Service and the beneficiary can make money by merely showing his/her Identity Cards. Separately, Chief Minister Punjab Usman Buzdar also ordered to transfer Rs 4,000 other than Zakat money to 170,000 already registered beneficiaries of Zakat. In addition to that, in order to provide daily wagers commodities, the Lahore Police has also stepped forward and prepared 6,000 ration bags for the needy people in Lahore. Every department of the Punjab government is concerned for the wellbeing of poor people and doing everything that’s possible in its capacity. So far, more than one million Imdad applications have been received and this project seems like a ray of hope for those who were living on daily wages and going through a tough financial crisis. Let’s see and hope this Coronavirus fades away as soon as possible because this will affect the economy of Pakistan badly.For More Information on Coronvirus Tiger Force, Play the video and Subscribe to our Youtube Channel Meanwhile, the process of distribution of financial aid to destitute under the Chief Minister Insaf Imdad Programme has been started. In a statement, the Chief Minister Punjab Usman Buzdar said that they will verify the received applications by April 7, and afterward, Rs 12,000 per family will be transferred on their mobile numbers and CNICs. Usman Buzdar said that those residents of Punjab enlisted in the Ehsaas Kafalat Program and NSER data will also transfer Rs 12,000 per family. Note: This story has been updated
3 May 03:00 • Dispatch News Desk • https://dnd.com.pk/insaf-imdad/185343Rating: 0.30
UK starts state-backed loans for smallest firms
LONDON (Reuters) - A government-backed loan scheme to help Britain's small businesses survive the coronavirus lockdown comes into effect on Monday, allowing firms such as hairdressing salons, coffee shops and florists to receive emergency cash. Finance minister Rishi Sunak, who previously opposed 100% state backing for commercial loans, announced the new facility on April 27, bowing to pressure to do more for the smallest companies after a previous scheme got off to a slow start. The new "Bounce Back Loans" allow businesses including sole traders to borrow between 2,000 and 50,000 pounds ($2,500-$62,500) at a flat interest rate of 2.5%. Banks handling the loans will not be required to run credit checks or assess the long-term viability of applicants. "Small businesses will play a key role creating jobs and securing economic growth as we recover from the coronavirus pandemic," Sunak said in a statement to mark the first day when the Bounce Back scheme goes into operation. "The Bounce Back loan scheme will make sure they get the finance they need - helping them bounce back and protect jobs," he said. Most British businesses have been shut to the public since March 23, when the government imposed social distancing measures to slow the spread of the virus. Government forecasters have said the economy could contract by 35% in the second quarter. Britain last month announced an emergency 330 billion-pound credit scheme including loans of up to 5 million pounds for small and medium-sized companies, with state guarantees of 80%. But many companies said they struggled to secure bank approvals, putting pressure on Sunak to provide full state guarantees for commercial loans to the smallest businesses. From Monday, any firm that has already taken out a loan of 50,000 pounds or less under the 80%-state-backed scheme can apply to have it switched over to the Bounce Back scheme.
3 May 00:00 • Investing.com • https://www.investing.com/news/economy/uk-starts-statebacked-loans-for-smallest-firms-2159180Rating: 0.30
'More urgency needed' to form government as two Covid-19 supports require legislation
INCREASED PRESSURE HAS now been placed on political parties to form a government, as it was revealed that some of the Covid-19 pandemic measures for businesses will require new legislation. Tax liability measures and credit guarantee scheme will both require legislation, Finance Minister Paschal Donohoe said at a briefing this afternoon – putting pressure on parties to form a government. The “warehousing” of tax liability for 1 year after that business begins trading again, means that no debt enforcement action will be taken by Revenue, and no interest will be charged on that ‘warehoused’ debt. The SME Credit Guarantee Scheme aims to encourage additional lending to small to medium businesses (from 10 to 100 employees) by offering a partial government guarantee to banks against losses on qualifying loans to small businesses. Fianna Fáil’s finance spokesperson Michael McGrath said that the new legislation meant “more urgency” was needed to form a government. Earlier, Taoiseach Leo Varadkar urged the Greens to enter formal coalition talks as he expressed a willingness to meet their carbon emissions target. Varadkar, who said he did not think a new government will be formed until June at the earliest, said Ireland’s economic recovery from Covid-19 could be “green not brown”. Following February’s inconclusive election, Fine Gael and Fianna Fáil are courting the Greens, Labour and the Social Democrats as potential junior partners in a three or four party coalition. The Greens’ pre-condition of only entering a government committed to a 7% reduction in carbon emissions has emerged as a potential deal breaker. On RTE’s Late Late Show, Varadkar said he hoped another election could be avoided. He said he was keen to meet the 7% target but said it had to be done with the buy-in of the farming and business communities. “I am someone who believes and accepts we need to be more ambitious when it comes to climate action,” he said. “We really want to sit down with them and work out how that can be done, but I think one of the things that has emerged that there are people, a lot of our farmers, people in rural Ireland, who are a little bit worried about what climate action might mean for them and their livelihoods and their business, a lot of people in the business community too who are worried about carbon tax and haulage and so on. “We need to see more ambitious climate action as an opportunity, as an opportunity to remake agriculture, to give much better and secure incomes to our farmers for diversifying; creating lots of jobs around retrofit for example; becoming a net exporter of energy – so instead of importing all that oil and gas, exporting our wind power to other parts of the word. “So climate action can actually be a big economy success story for Ireland. We can have a recovery that’s green not brown. That means bringing rural Ireland, bringing farmers, bringing the business community with us.” Varadkar said a Fine Gael, Fianna Fail and Green alliance would be the right political mix to achieve that consensus. He has repeatedly ruled out going into government with Sinn Féin, which earned the highest proportion of first preference votes and 37 seats in February’s general election. “We are the parties that can do that, whereas a left-wing government they would be fighting with business and fighting with employers, it wouldn’t work,” he said. Varadkar said it was unlikely a government could be formed in May, because even if a coalition deal was struck, all the parties would then have to seek the endorsement of their respective memberships. “I think we could have a new government in June,” he said. “I really hope we do by the way, because the country actually needs it. - with reporting from Gráinne Ní Aodha #Open journalism No news is bad news Support The Journal Your contributions will help us continue to deliver the stories that are important to you Support us now
2 May 13:15 • TheJournal.ie • https://www.thejournal.ie/varadkar-greens-5090138-May2020/Rating: 1.13
12 Reasons You Haven't Received a Stimulus Check
A little over five weeks ago, lawmakers passed and President Trump signed into law the largest economic stimulus package in U.S. history. The $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act was constructed out of necessity after the spread of the coronavirus disease 2019 (COVID-19) shut down nonessential businesses throughout much of the U.S. and put in excess of 26 million people out of work in a period of four weeks. As you might imagine, the CARES Act is primarily geared at helping businesses make it through a truly unprecedented time. Some $500 billion was set aside for distressed businesses, another $350 billion was directed toward small business loans, and $260 billion was used to expand the unemployment benefits program. But what Americans care about most is the roughly $300 billion allocated toward direct stimulus payouts. These payouts, officially known as Economic Impact Payments, recently began hitting workers' and seniors' bank accounts via direct deposit. People who qualify for the maximum amount of stimulus money will receive $1,200, with married couples filing jointly eligible for up to $2,400. Qualifying children aged 16 and under can also add $500 per child to what a household or parent receives. Yet the question likely on the minds of tens of millions of Americans at this very moment is, "Where is my stimulus check?" Though an estimated 175 million people are expected to receive an Economic Impact Payment, recent figures show that only 88 million have thus far received their payouts. The answer as to why tens of millions of Americans still haven't received a stimulus check likely boils down to one of the following 12 scenarios. One of the simplest reasons you haven't received an Economic Impact Payment might be because you made too much money. The Internal Revenue Service (IRS) is utilizing your most recent federal tax filing to determine your eligibility for a payout (either tax year 2018 or 2019). If you're a single, married, or head-of-household filer with a respective adjusted gross income (AGI) below $75,000, $150,000, and $112,500, you qualify for the maximum Economic Impact Payment. But if your AGI is above $99,000 as a single filer, $198,000 as a married couple, or $136,500 as head-of-household in your most recent filing, you won't receive a dime. Folks with AGIs that fall in between these figures will receive a reduced payout. Another reason you haven't received any stimulus money could be because you were claimed as a dependent by someone else, such as a parent or family member. While dependents aged 16 and under can add $500 per child to what a household or parent receives, dependents aged 17 and up, which includes senior dependents receiving Social Security, aren't eligible to receive a stimulus check. One of the biggest reasons your stimulus money is delayed might be because you used a tax-preparation service in a previous year. Tax-prep services often set up temporary accounts for their customers that act as a first landing spot for a federal refund or, in this case, an Economic Impact Payment. These temporary accounts allow tax-prep services to remove any fees and then forward the money to a client's bank account. When stimulus payouts were made in 2008, some 20 million taxpayers had this happen to them, eventually requiring the IRS to issue them paper checks. Though most Americans are perfectly happy with their bank or credit union, we inevitably witness millions of consumers changing banks every year. If you've changed your bank since you last received a direct deposit tax refund from the federal government, it's possible the IRS has your old bank account information on file. If there's any concern that this might be the case for you, head to the IRS' "Get my Payment" tool and update your direct deposit information. The Treasury Department would prefer to issue as many direct deposit payouts -- as opposed to paper checks -- as possible. In 2018, close to 89% of all federal tax returns were filed electronically with the IRS. But more than 17 million taxpayers and/or couples chose to mail in a paper return. The problem is that the IRS has stopped processing paper returns due to COVID-19, and there's no concrete time frame as to when they'll begin processing them again. This could potentially delay the determination of your eligibility for an Economic Impact Payment. Language in the CARES Act specifically disallows federal and state collectors from seizing your stimulus check, with one lone exception -- if you're in arrears on child support payments. The Treasury Department will be counting on individual states to report people who are late on child support payments, as it plans to withhold up to the entire amount of the stimulus check based on how much an individual owes. Although it's probably unlikely, it's still possible that your bank seized your Economic Impact Payment as soon as it hit your bank account. While federal and state collection agencies can't touch your coronavirus relief money, that's not the case with private collection agencies, such as a bank. If, for example, you have a negative account balance or a loan in arrears, your bank could use your payout to offset what you owe. For what it's worth, most big banks have said they won't seize their customers' stimulus checks, and some states have banned private creditors from taking taxpayers' stimulus money. However, you'll want to check with the applicable laws in your state to be certain. In addition to banks, credit collection agencies may go after your stimulus payment. Millions of Americans have financial judgments currently levied against them, and there may be nothing to stop collection agencies from freezing consumers' bank accounts to get their hands on a $1,200 or $2,400 payout. Again, some states have banned such activity, but you'll want to check with the laws in your state for added clarity. Another good reason you haven't received a stimulus check yet is because you don't typically receive a federal refund -- or if you do, you receive a paper check. If the IRS doesn't have your recent direct deposit information on file, it can't quickly get you your stimulus money. As a reminder, paper checks are going to be doled out by the IRS over a 20-week stretch, with some folks not receiving their Economic Impact Payments until mid-September. If you're a low-income worker, perhaps some finger-pointing at President Trump is in order. That's because his request to add his name in the memo section of paper stimulus checks has led to delays in the initial distribution of these payouts. Since paper checks are being paid out to the lowest-income workers first, these folks are likely to feel the direct impact of this formatting-change delay. While green-card holders with a legal pathway to citizenship in the U.S. are eligible for an Economic Impact Payment, undocumented immigrants with no legal pathway to citizenship are not. Even workers with a taxpayer identification number (i.e., who pay federal taxes) who have no guaranteed path to citizenship or have children born in the U.S. are ineligible to receive a dime. Lastly, you may not have received your stimulus money yet because you typically don't earn enough to file a federal tax return. For example, if you earned less than the standard deduction amount in 2019 of $12,200 for a single filer or $24,400 for a couple filing jointly, you may not have needed to file a tax return. But without this critical info, the IRS doesn't know to send you an Economic Impact Payment. For non-filers due to low income, you'll need to head to the IRS' website and enter some basic information to be eligible for a stimulus check.
2 May 09:51 • The Motley Fool • https://www.fool.com/taxes/2020/05/02/12-reasons-you-havent-received-a-stimulus-check.aspxRating: 0.30
Abe's signature cash handout program won't start soon in many cities
Just 29 of Japan’s 47 municipalities hosting prefectural government offices are planning to start emergency cash handouts within May, a Kyodo News tally has shown in a sign that the coronavirus pandemic has complicated administrative efforts to swiftly implement relief measures. Prime Minister Shinzo Abe has been aiming for the distribution of ¥100,000 ($936) per resident this month. But many municipalities are also busy implementing steps to contain the virus under the nationwide state of emergency, which is almost certain to be extended for another month through early June, the tally showed Friday. The Diet enacted Thursday a ¥25.69 trillion budget for fiscal 2020 to finance an emergency policy package, including the cash handouts. The municipal government of Wakayama is aiming to provide the money this month, saying officials there are working to that end without taking days off. Kobe is also one of the 29, saying it is planning to first send application forms to households with children to ensure that families in need will receive necessary documents quickly. The 29 municipalities include Aomori, Morioka, Sendai, Akita, Yamagata, Fukushima, Mito, Utsunomiya, Maebashi, Chiba, Kanazawa, Kofu, Nagano, Gifu, Tsu, Kobe, Nara, Wakayama, Matsue, Okayama, Yamaguchi, Takamatsu, Matsuyama, Kochi, Fukuoka, Shiga, Nagasaki, Kumamoto and Miyazaki. Among other municipalities, eight including Shizuoka, Osaka and Hiroshima said they are aiming to start distributing the handouts in June or later, while 10, including Sapporo, Nagoya, Yokohama and Tokyo’s Shinjuku Ward, said they were unable to clearly state when they would start. Many of the municipalities grappling with the coronavirus said it will take time to create and send necessary documentation to households.
2 May 01:00 • The Japan Times • https://www.japantimes.co.jp/news/2020/05/02/national/shinzo-abe-cash-handout-coronavirus/Rating: 2.31
Cash handout program won't start soon in many cities
TOKYO — Just 29 of Japan's 47 municipalities hosting prefectural government offices are planning to start emergency cash handouts within May, a Kyodo News tally showed Friday, in a sign that the novel coronavirus pandemic has complicated administrative efforts to swiftly implement relief measures. Prime Minister Shinzo Abe has been aiming for the distribution of 100,000 yen ($936) per resident this month. But many municipalities are also busy implementing steps to contain the virus under the nationwide state of emergency, which is almost certain to be extended for another month through early June. Parliament enacted Thursday a 25.69 trillion yen extra budget for fiscal 2020 to finance an emergency policy package, including the cash handouts. The municipal government of Wakayama in western Japan is aiming to provide the money this month, saying its officials are working to that end without taking days off. Kobe is also one of the 29, saying it is planning to send application forms to households with children first to ensure that families in need will receive necessary documents quickly. Among other municipalities, eight including Shizuoka, Osaka and Hiroshima said they are aiming to start distributing the handouts in June or later, while 10 including Sapporo, Nagoya, Yokohama and Tokyo's Shinjuku said they were unable to clearly state when they would start. Many of those struggling cities said it will take time to create and send necessary documentation to households. © KYODO
2 May 00:32 • Japan Today • https://japantoday.com/category/national/abe%27s-signature-cash-handout-program-won%27t-start-soon-in-many-citiesRating: 2.09
Commercial rates waiver and €10,000 restart grant - Government's financial plan to reboot economy
Government ministers announced more financial measures today costing up to €6.5bn over the coming years to help “re-boot” the Irish economy. Finance Minister Paschal Donohoe said €2bn will be made available for loan guarantee schemes for small and medium businesses, a waiving of commercial rates for three months, and a deferral of tax obligations for a period. The measures are: “Today’s package of measures aims to help our businesses to restart, reconnect and rehire staff who have been laid off or furloughed,” said Minister Donohoe. He said the Government has already brought forward a series of measures to support those impacted by this global pandemic. They have included emergency income support such as the Temporary Wage Subsidy Scheme and the Pandemic Unemployment Payment. It is now necessary to introduce a number of additional measures to aid the economy as the Covid-19 restrictions start to be lifted. Minister Donohoe said: “On top of the measures previously put in place by Government, this suite of measures being outlined today is designed to build confidence, further assist businesses in terms of the management of their companies, and allow them to begin looking to the future and start charting a path forward for weeks and months ahead. “We will continue to seek the best ways of supporting our people, and wider society, and rebuilding our economy so that we can get people back to work safely. We will do this by being cognisant of official public health advice and doing what is in the best interests of all our people.” Finance minister Paschal Donohoe said the measures are designed to "minimise the damage" of the pandemic. Minister for Business, Enterprise and Innovation Heather Humphreys said the economy had moved past the initial shock phase of the coronavirus crisis and was now in a stabilization phase. The new measures announced today were to fund the third phase – “the re-boot phase.” She said: “The roadmap announced by Government yesterday outlines a pathway to reopening our economy. This suite of supports represents the next phase in our ongoing response to support businesses through the pandemic and will assist them as they plan for the future’. “We now have a comprehensive suite of supports for firms of all sizes, which includes grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst our SMEs. “The new €250 million Restart Fund in particular will be a critically important tool to support small businesses in our towns and villages to reopen their doors and get back on their feet with supports of up to €10,000 available.”
2 May 13:09 • independent • https://www.independent.ie/irish-news/commercial-rates-waiver-and-10000-restart-grant-governments-financial-plan-to-reboot-economy-39175477.htmlRating: 1.21
Commercial rates waiver and €10k restart grants: Government outlines supports to try help businesses recover
THE GOVERNMENT HAS agreed a series of measures at a special Cabinet meeting today to support small, medium and large businesses recover after the impact of Covid-19. After the announcement of the phased reopening of the Irish economy, the government said today it “recognises that businesses require significant additional supports”. Businesses who were forced to cease trading and others affected adversely from Covid-19 had been calling on the government to provide supports to help them deal with the unprecedented crisis. The measures to support business announced today include: Speaking today, Minister for Finance Paschal Donohoe said that he appreciates “the massive economic and social challenges” for those out of work and said these measures today would help to rebuild “our jobs, our incomes and our economic health”. He added: “We believe these are significant measures that will make a difference to the retention of jobs, and the creation of new jobs.” On the specific call from pubs, restaurants and tourism sectors to reduce the VAT rate on the hospitality industry, Minister Donohoe said a decision had not been taken on that measure yet as – according to the roadmap - it’ll be some time before they reopen. The measures will cost around €6.5 billion in all. The government has also committed to local authorities to make up the shortfall on rates, so that these local authorities can still provide services to the public. Minister for Business Heather Humphreys said: “We now have a comprehensive suite of supports for firms of all sizes, which includes grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst our SMEs.” Humphreys said advice from Health and Safety Authority is available to those businesses looking to ensure they can enforce health guidelines when they go back to work. SME credit supports The credit guarantee scheme for SMEs will cost €2 billion. Under this scheme, it’ll provide an 80% guarantee on leding to SMEs until the end of this year, for terms between three months to six years. SMEs will be able to go directly to the banks in the Scheme, and the guarantee can be used for a wide range of lending products between €10,000 and €1 million. The loans will have interest rates below current market rates, and the government said this is a “major component” of its strategy to support SMEs. It will require legislation, and the drafting of this has already been approved. However, for legislation to pass, a new government must be formed as the Seanad cannot sit until the new Taoiseach nominates new members to the upper house. Minister Donohoe acknowledged this was the case, and said a number of decisions had been made and would be made that would have to be ratified by the Dáil and the Seanad. Reaction Business group IBEC said it welcomed the measures announced by government today. Its CEO Danny McCoy said: “The scale of business collapse in recent weeks has been spectacular and unprecedented and the significant low interest loan guarantee; other liquidity and investment measures; grants; and tax deferral and waiver supports; are an important further step in addressing the cashflow crisis which so many businesses are dealing with. Dublin Chamber and the Small Firms Association were among others who welcomed the measures. However, the Family Business Network however said the measures are a “missed opportunity to maximise jobs and accelerate re-employment”. Its executive director John McGrane said: “Neither more loans nor unworkable state equity investment are what businesses need to reopen and re-hire. What will get the recovery moving fastest is the extension of the Covid-19 Temporary Wage Supplement Scheme until a reasonable period after the State’s current restrictions on businesses are ended.” Fianna Fáil’s Business spokesperson said while the measures unveiled today will provide some relief for businesses, they do not tackle the very urgent need to address the high interest rate being charged on government loans, business interruption insurance and rent payments. “I have been listening to and working with business owners since these restrictions were implemented and three of the main issues that came up time and again was access to low interest loans, insurance and rent. And unfortunately, today’s government announcement does little to address any of these. “Today’s measures do not address the high interest rate that the government is charging on its microfinance and loan guarantee schemes. These offer rates of around 4%; despite the fact that government can borrow at rates of less than 0.25%. Small and medium businesses are paying the price at a time when they cannot afford to,” he said. When put to the Minster Humphreys that some government loans in the UK have interest rates as low as 2.5% she said the full suite of measures on offer must be viewed together before comparisons can be made. She said they would continue to monitor the supports put forward by other countries. With reporting from Christina Finn #Open journalism No news is bad news Support The Journal Your contributions will help us continue to deliver the stories that are important to you Support us now
2 May 11:45 • TheJournal.ie • https://www.thejournal.ie/governmnent-business-5090201-May2020/Rating: 1.13
Govt announces €6bn support package for businesses impacted by Covid-19
Commercial rates are to be waived for three months for business impacted by the Covid-19 pandemic. The shortfall of €260m on local authorities is to be funded by the Government. The Government had already brought forward a series of measures to support those impacted by the pandemic - including emergency income support such as the Temporary Wage Subsidy Scheme and the Pandemic Unemployment Payment. They have now introduced a number of additional measures to aid the economy as the Covid-19 restrictions start to be lifted. A €6bn support package for farmers, small, medium and larger businesses has been agreed by Cabinet. It includes allowing companies to get a low-interest rate loan to re-open their business. The measures are: Finance minister Paschal Donohoe said the measures are designed to “minimise the damage” of the pandemic. Minister Donohoe said: “Covid-19 has created a world that none of us could have imagined just a few short weeks ago. Our collective public health has been targeted; our businesses, and our economy, have been shouldered with an unimaginable burden; and our society is grappling with this new reality. . "But, by working together, we are minimising the damage. The hard work of the Irish people has ensured that we are getting to grips with this disease, our people are united in caring for one another under the most extreme of circumstances and our businesses are attempting to adapt to this new and most challenging environment. “On top of the measures previously put in place by Government, this suite of measures being outlined today is designed to build confidence, further assist businesses in terms of the management of their companies, and allow them to begin looking to the future and start charting a path forward for weeks and months ahead. Group calls on Govt to implement five measures to help retailers recover from pandemic "We will continue to seek the best ways of supporting our people, and wider society, and rebuilding our economy so that we can get people back to work safely. We will do this by being cognisant of official public health advice and doing what is in the best interests of all our people.”
2 May 12:02 • Irishexaminer • https://www.irishexaminer.com/breakingnews/business/govt-announces-6bn-support-package-for-businesses-impacted-by-covid-19-997338.htmlRating: 0.69
Govt to soon announce relief package for MSMEs, says Nitin Gadkari
Referring to the economic crisis across the world, Gadkari said that it is a golden opportunity for Indian industries and entrepreneurs to explore new businesses and attract investments from global businesses that look to exit China The central government is likely to announce a relief package for micro, small and medium enterprises (MSMEs) that have been affected due to the coronavirus lockdown, Union MSME Minister Nitin Gadkari said on Saturday. He said that the financial package is expected to be announced in due course. "We have sent recommendations for a relief package to the Finance Minister and Prime Minister, and I hope it will be announced soon," Gadkari said while addressing a webinar in New Delhi today. He urged Indian industries to have a positive attitude and asked them to adopt an integrated approach to overcome the crisis while ensuring the lives and livelihood of people. Referring to the economic crisis across the world, Gadkari said that it is a golden opportunity for Indian industries and entrepreneurs to explore new businesses. He suggested that Indian Inc must adopt technological innovation and import substitution to attract investments from global businesses that look to exit China. Interacting with members of the FICCI Ladies Organisation (FLO) in a webinar, the minister expressed confidence that 25 lakh MSMEs will be restructured by the end of the year. Also Read: Coronavirus impact: Nitin Gadkari announces Rs 1 lakh crore fund for MSMEs Last week, during an interaction with the representatives of Associated Chambers of Commerce of India (ASSOCHAM) on impact of COVID-19 on MSMEs, Gadkari had said that the government was working on a dedicated fund to address delayed payments of MSMEs. "We have prepared a fund of Rs 1 lakh crore and government will pay for the insurance. We will fix a formula on how to coordinate between all 3 stakeholders - the one who has to receive money, the one who has to pay money, and bank," Gadkari had said. The fund will provide some relief to the MSME sector to tide over the negative impact of novel coronavirus-related disruption in their businesses and revenue losses. The corpus will be a mobile fund that will help increase liquidity in the market, he said. Also Read: Coronavirus outbreak: Credit flow to MSMEs needs to grow 20% from 2% to address growing unemployment MSMEs contribute to 29 per cent of GDP in the country and employ over 11 crore people. On April 17, the Reserve Bank of India (RBI) did try to ease the liquidity crisis among MSMEs by announcing a targeted long-term repo operations (TLTRO) of Rs 50,000 crore to help small and medium-sized non-banking finance companies (NBFCs) and micro-finance institutions (MFIs). By Chitranjan Kumar Also Read: RBI cancels licence of CKP Co-operative Bank; depositors to get up to Rs 5 lakh
2 May 15:49 • Business Today • https://www.businesstoday.in/current/economy-politics/govt-to-soon-announce-relief-package-for-msmes-says-nitin-gadkari/story/402705.htmlRating: 2.10
Ireland unveils 6.5 billion euro coronavirus business package
DUBLIN — Ireland will allow firms impacted by the coronavirus crisis to warehouse tax liabilities for 12 months, offering a “lifeline” as part of an additional package of business supports that could reach 6.5 billion euros, the government announced on Saturday. Commercial rates will also be written off for three months, a 2 billion euro credit guarantee scheme will be introduced for small and medium sized businesses and Ireland’s sovereign wealth fund directed to make 2 billion euros of equity available for bigger companies, Finance Minister Paschal Donohoe said in a statement. Ireland concentrated its initial 8 billion euro fiscal response on increased jobless payments and wage subsidies for affected employees, with 1 billion euros of liquidity supports offered directly to reeling firms. (Reporting by Padraic Halpin Editing by Frances Kerry)
2 May 11:56 • Financial Post • https://business.financialpost.com/pmn/business-pmn/ireland-unveils-6-5-billion-euro-coronavirus-business-packageRating: 0.94
New €6bn package of measures to help firms post-COVID
Commercial rates are to be waived for three months for business impacted by the COVID-19 pandemic. A shortfall of €260m on local authorities is to be funded by the Government. It is part of a new package of supports worth over €6bn agreed by Cabinet. It includes allowing companies to get a low-interest rate loan to re-open their business. The measures were agreed at a special Saturday Cabinet meeting, following the publication on Friday of a roadmap for re-opening business. The Government has already brought forward a series of measures - such as the Temporary Wage Subsidy Scheme and the Pandemic Unemployment Payment - but says it is now necessary to introduce a number of additional measures. Those include a €10,000 restart grant for micro and small businesses based on a rates/waiver rebate from 2019. A €2bn Pandemic Stabilisation and Recovery Fund will also be available within the Ireland Strategic Investment Fund (ISIF). This will make capital available to medium and large enterprises on commercial terms. While a €2bn COVID-19 Credit Guarantee Scheme will also support lending to SMEs for terms ranging from three months to six years with below market interest rates. It will also see the ‘warehousing’ of tax liabilities for a period of 12 months after trading recommences. During this time, the Government says there will be no debt enforcement action taken by Revenue, and no interest charge accruing in respect of the warehoused debt. The Revenue Commissioners confirmed that COVID-19 related VAT and payroll tax debts - due March 1st to the date when sectoral restrictions are lifted - will be parked for a period of 12 months. It also said no interest will accrue on the tax debts during this 12 month period. And after that period, the related tax debts will carry a reduced interest rate of 3% - down from 10% - until the debt is paid. Revenue added: "The timeframe allowed to pay the ‘warehoused’ debt will be flexible and determined by the ability of the business to pay both COVID-19 related debts as well meeting its ongoing tax liabilities as they arise in the normal course". Finance Minister Paschal Donohoe said: "On top of the measures previously put in place by Government, this suite of measures being outlined today is designed to build confidence, further assist businesses in terms of the management of their companies, and allow them to begin looking to the future and start charting a path forward for weeks and months ahead. "We will do this by being cognisant of official public health advice and doing what is in the best interests of all our people." Business Minister Heather Humphreys said: "We now have a comprehensive suite of supports for firms of all sizes, which includes grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst our SMEs. “The new €250m Restart Fund in particular will be a critically important tool to support small businesses in our towns and villages to re-open their doors and get back on their feet with supports of up to €10,000 available." And Housing Minister Eoghan Murphy added: "The commercial rates waiver is an important response from Government. "This will provide relief to impacted businesses as well as certainty to local authorities as to their funding. "Rates alleviation will be complemented by the establishment of a Restart Fund for micro and small businesses which would provide a further €250m to support ratepayers."
2 May 13:24 • Newstalk • https://www.newstalk.com/news/new-e6bn-package-measures-help-firms-post-covid-1009496Rating: 0.30
Nitin Gadkari calls upon industry to upgrade, widen import sources to attract investment
Indian industry need to undertake technological upgradation and import substitution to attract investments from global businesses that look to exit China due to the COVID-19 outbreak, Union minister Nitin Gadkari said on Saturday. The minister has been exhorting the industry to capitalise on growing "hatred" against China amid coronavirus pandemic. Follow live updates on the coronavirus pandemic here Interacting with members of the Ficci Ladies Organization in a webinar, the minister for MSME and Road Transport and Highways said recommendations for "another big package" have been shared with the Prime Minister and the Finance Minister, and said he was "hopeful of a declaration soon". Gadkari also expressed confidence that 25 lakh MSMEs will be restructured by the end of the year. The Reserve Bank of India (RBI) extended the restructuring of debt schemes beyond the deadline of March 31, 2020, to December 31, 2020. Observing that big industries from nations including Japan, the US, Germany and other European nations do not want to deal with China anymore and want to shift their businesses out of the country, the minister termed it a "golden opportunity" for Indian industry and entrepreneurs.
2 May 17:50 • Deccan Herald • https://www.deccanherald.com/business/nitin-gadkari-calls-upon-industry-to-upgrade-widen-import-sources-to-attract-investment-832709.htmlRating: 2.25
Nitin Gadkari calls upon industry to upgrade, widen import sources to attract investment
Indian industry need to undertake technological upgradation and import substitution to attract investments from global businesses that look to exit China due to the COVID-19 outbreak, Union minister Nitin Gadkari said on Saturday. The minister has been exhorting the industry to capitalise on growing "hatred" against China amid coronavirus pandemic. Interacting with members of the FICCI Ladies Organisation in a webinar, the minister for MSME and Road Transport and Highways said recommendations for "another big package" have been shared with the Prime Minister and the Finance Minister, and said he was "hopeful of a declaration soon". Coronavirus India LIVE Updates Gadkari also expressed confidence that 25 lakh MSMEs will be restructured by the end of the year. The Reserve Bank of India (RBI) extended the restructuring of debt schemes beyond the deadline of March 31, 2020, to December 31, 2020. Observing that big industries from nations including Japan, the US, Germany and other European nations do not want to deal with China anymore and want to shift their businesses out of the country, the minister termed it a "golden opportunity" for Indian industry and entrepreneurs. Follow our full coverage of the coronavirus pandemic here.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/india/nitin-gadkari-calls-upon-industry-to-upgrade-widen-import-sources-to-attract-investment-5215131.htmlRating: 0.30
State goes big in effort to help businesses struggling through shutdown
Many businesses will have been taken aback by the long timetable for reopening set out by the Government on Friday. However, the programme of new supports announced on Saturday is significant and tries to address the needs of different types of businesses, many now facing a longer closure period than expected and an unprecedented cash squeeze. Some of this, including a new credit guarantee scheme and further Revenue forbearance on taxes, requires new legislation and will therefore not be finalised until a new Government is in place. The cost of Covid-19 in terms of additional Government spending is rising sharply. The latest package commits another €6.5 billion in supports to business. Add another €8 billion already committed through wage and income subsidies and higher health spending, and the total is now between €14 billion and €15 billion, or about 7 per cent of national income. An unprecedented crisis has required an unprecedented support programme. That said, the final exchequer cost of the latest measures will be much less in the long term; a lot of the warehoused taxes will be repaid, not all credit guarantees will be called in and some investments will generate a return. Still, it will push State borrowing higher and we will be reliant on the European Central Bank’s presence in the markets to help us raise funds at rock-bottom interest rates. This is a vital part of the economic calculation for Ireland in the months ahead. Inside Business with Ciarán Hancock · "We'll lose 10k houses this year" - Mark Fitzgerald on Covid-19's impact on housing supply and sales The financial supports for business announced on Saturday follow the significant wage subsidy scheme, which is helping cover payroll costs. With ongoing fixed costs, many firms are facing a cash crisis and, if not addressed, it will turn into a solvency crisis and threaten their future. The new schemes announced attempt to address this. A key part of the plan – a credit guarantee scheme committing more than €2 billion – requires new legislation, and it appears this is not possible until a new government is formed and a new taoiseach puts their nominees into the Seanad. With doubts over whether talk to form a government will succeed, this threatens to leave key parts of the plan hanging in mid-air for a prolonged period. It further ups the pressure to form a new government.Decisions on how to respond to demands for VAT cuts for restaurants and hospitality will also fall to a new government. The schemes fall into a few different headings. The credit guarantee scheme is a vital element, assisting companies to get access to bank loans. This adds to existing credit supports, which have had slow enough draw-downs. Some details remain to be outlined, including the cost – which we are told will be below market rates. This is an important part of the plan to help SMEs, and banks need to be prepared to lend on the basis of the 80 per cent guarantee. Some tweaks in the rules will help. The other big ticket item is a €2 billion fund to be run by the Irish Strategic Investment Fund to invest in medium and larger businesses, defined as those with more than €50 million in turnover or more than 250 employees. These are designed to be investments on commercial terms to help bigger firms through the crisis. The Government is conscious, according to Minister for Finance Paschal Donohoe, of controversy in other countries over big business taking state support and then paying out money to shareholders or management. Steps are promised to avoid this happening here. As we know from past history, this is a tricky area for Government and managing this will be challenging and potentially controversial. The other actions involve an extension of measures already in place, including a significant extension of Revenue forbearance (legislation will also be necessary here) and a sensible move to waive rates for three months for firms which have had to shut. A €250 million restart fund for micro and small businesses will be launched and designed to give them cash support to help restart, based on a refund and waiver of rates from 2019. This will be essential for many of the smallest firms, though the limit of €10,000 may need to be lifted a bit given the pressure many firms are under and the costs of restarting. In time, more cash may be needed here. Businesses generally welcomed the proposals, although they will look for quick clarification on detail. Given the extended nature of the reopening announced on Friday, the new measures were even more essential as many firms will remain shut for well beyond the 12 weeks initially envisaged. The Government also faces vital decisions on how to extend wage supports beyond this initial 12-week timeline . The business support programme may be amended or added to, but a significant amount of cash is now committed to try to save business and jobs. The next challenge is to get all this operational and get the restart going. Get the latest business news and commentarySIGN UP HERE
2 May 14:04 • The Irish Times • https://www.irishtimes.com/business/economy/state-goes-big-in-effort-to-help-businesses-struggling-through-shutdown-1.4243816Rating: 1.99
State’s own revenue dips by 95 % in April
Telangana government which has done well in delaying the doubling period for COVID-19 positive cases way above the national average to contain the spread of the disease is now exploring how to tide over the severe financial crisis due to steep fall in revenue. The State went into lockdown mode from March 22 in view of the pandemic. With all educational institutions, industries , institutions and commercial establishments shutdown to enforce social distancing and economic activity almost coming to a standstill barring essential goods and services, the State revenues were hugely impacted. The State’s own tax revenue which used to be around ₹400 crore a day dwindled to less than ₹10 crore and by the end of April, the State just earned a revenue of ₹500 crore — a 95 % fall in its tax revenue. There was zero revenue from excise and liquor (against ₹1,400 crore) stamps and registration (₹880 crore) and the motor vehicle tax (₹400 crore) while the VAT on petroleum resources was only about ₹50 crore as against normal revenue of ₹1,500 crore. The State GST was only about ₹350 crore to ₹400 crore against ₹3,000 crore. The State borrowed ₹4,000 crore from the market in April as against ₹2,500 crore it would borrow in a month in line with the Fiscal Responsibility and Budget Management (FRBM) norms. The lockdown was announced soon after the State presented its budget outlay of ₹1.82 lakh crore for 2020-21, with an increase of 28.7 % over the revised estimate of 2019-20. At that time itself, one thought it was an ambitious target given the economic slowdown the country was going through. But None expected the pandemic would play havoc with the State revenues. Against the income of ₹500 crore, State government had to spend close to ₹10,000 crore in April including ₹1,800 crore towards salaries and pensions at 50 % and75 % deferment, ₹2,400 crore towards debt servicing, ₹870 crore towards Aasara pensions, ₹830 crore towards power subsidies, ₹2,400 crore towards COVID relief assistance of ₹1,500 to every white ration cardholder and 12 kg of rice, releases to medical and health department. The 20 % cut in State share in the Central devolutions saw State receiving only ₹982 crore as against ₹1,200 crore in April. “We pulled through with some savings apart from borrowings and what trickled from Centre under Centrally Sponsored Schemes and about ₹200 crore donations to the CMRF,” sources said. Chief Minister had already written to the Centre requesting that the FRBM limit be increased from the present 3 % to 5 % to help it borrow more, declare moratorium on repayment of loans and interest for six months, special assistance under ‘quantitative easing’ from the RBI to help various sectors of economy specially MSME hit by the COVID crisis. “However there is no response so far to our request. The situation in May will be even difficult without help from the Centre,” sources said.
2 May 15:22 • The Hindu • https://www.thehindu.com/news/national/telangana/states-own-revenue-dips-by-95-in-april/article31490507.eceRating: 0.30
UK pledges extra funds for businesses that share office space
The government has pledged a further £617m in grants to small businesses, seeking to plug gaps in a scheme that has left thousands of companies unable to access much-needed finance. The additional funds will go to “businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates,” the government said. The funds add to a £12.33bn pot that has already been made available through the small business grants fund and the retail, hospitality and leisure grants fund. Many small businesses were excluded from the original scheme, which based eligibility on whether companies paid business rates. Before Saturday’s announcement, a payout of £10,000 was available to businesses operating out of premises that have a ratable value — a measure of the rental value of the property — of up to £15,000. Companies in the retail, leisure and hospitality sectors with a ratable value of between £15,000 and £51,000 can apply for a £25,000 grant. Many small businesses do not pay business rates. More than 10,000 companies based in shared offices originally missed out on the grant because their premises had not been assigned a ratable value by the Valuation Office Agency, according to research from property firm Colliers. In shared offices, such as those operated by WeWork and IWG, regular reconfigurations mean the VOA has not always assessed individual units. FT UK Politics podcast26 min listenBoris Johnson returns, lifting the lockdown with the R rate and Britain’s alarming death rate The original design of the scheme meant money could be delivered quickly, but it came at the expense of comprehensive cover for companies in need, according to John Webber, head of business rates at Colliers. “The easiest way to get to 95 per cent of businesses was using the criteria from the business rates system that was in place. But there are 5 per cent missing out,” he said. The additional funding should address those “anomalies” said Robert Hayton, head of UK business rates at the real estate adviser Altus Group. The additional £617m raises the total funds available by 5 per cent. The grants will be a lifeline for the million or so small businesses in the UK that have been forced to shut as a result of coronavirus, many of which are paying rent on office premises they cannot access. But they need to be delivered swiftly, said Adam Marshall, director-general of the British Chambers of Commerce. As of April 27, local authorities had allocated 61 per cent of the funds earmarked for small businesses which were eligible, leaving almost 345,000 businesses waiting for the grant. “Many of the companies that have been unable to use existing government support schemes are already on borrowed time — and will need these grants paid out swiftly if they are to survive,” said Mr Marshall. Additional reporting by Andy Bounds in Huddersfield
2 May 14:11 • Ft • https://www.ft.com/content/ebe3cd38-e6a4-4642-b31c-460533f3ce26Rating: 2.96
We surveyed the 'rainy day' funds of 6 states to see how prepared they were for a major emergency. The results paint a grim picture for the country's economic recovery.
The novel coronavirus has put a lot of stress on state economies. Because of stay-at-home orders and temporary closures of nonessential businesses, many workers have been laid off or furloughed and demand in some industries has declined, such as in travel and hospitality. The response to the coronavirus has already put a strain on state budgets as states have to find money to cover the unprecedented number of people filing for unemployment benefits after major layoffs across industries. Sales and income taxes, which make up a large percentage of a state's tax revenue, are also affected by more people facing layoffs, staying at home, and spending less. According to the Brookings Institution, states also have to spend more to meet the demand for Medicaid and other healthcare spending during the pandemic, and some states have enacted or have pending money transfers from their general funds to help with different needs in their state. "When expenses go up, policymakers have to either cut spending or find revenue from raising taxes or withdrawing from their rainy day funds," Justin Theal, research officer at Pew Charitable Trusts, told Business Insider. "That's why having robust savings is so important....Whether a state cuts spending or increases taxes to balance their budget — that ultimately takes money out of the economy and makes it harder for a nation as a whole to recover." During the last recession, Theal said states had to make cuts to their budgets in areas like higher education, infrastructure, or state aid to local governments. Some states have caught up in these areas since the recession, but others have not. "The areas of the budget that the policy makers would typically look to cut, to help balance their budgets during economic downturns, like higher education, in many states there's not that much flexibility in that area because they hadn't caught up on the cuts that they had made during the Great Recession," Theal said. States can also get aid from federal funding to help budget shortfalls and expenses. The recent CARES Act has provided some economic relief to help states, businesses, and individuals around the country during the pandemic, but some economists believe that state and local governments will still fall short in their budgets, even with up to $150 billion relief from the CARES Act. The latest approved federal aid will provide more assistance to small businesses but not state and local governments who need it to cover budget shortfalls. In fact, Senate Majority Leader Mitch McConnell recently said he would rather have states go bankrupt than give them federal funding. According to a recent blog post from the Economic Policy Institute, based on already existing predicted budget shortfalls and recent data projections, state and local governments will need another stimulus package of $500 billion. Amid closures, layoffs, and the need for more federal aid, one positive is that many states have money reserved in rainy day funds, or budget stabilization accounts, to help with economic downfalls. Rainy day funds help states cover budget shortfalls, as most states must balance their budgets each year, so that they can reduce the need for budget cuts or tax increases, according to Pew Charitable Trusts. Rainy day funds are so important because they could be used to help shortfalls during and after the coronavirus. According to the Associated Press, financial experts said without this financial "cushion" states would have been "in much worse shape" for handling the economic impacts from the pandemic. "The present crisis should just be another reminder of how important it is to fund these reserve accounts when times are good so that they can help states in difficult times in the future," Janelle Cammenga, policy analyst at Tax Foundation, told Business Insider. Although the current situation is an example of the perfect time to dip into reserves, rainy day funds are not unlimited. If a state uses all their money in this account "then they just can't take anymore money out of it and they have to find another way to balance their budget," Cammenga said. The total in rainy day funds across all 50 states was $74.9 billion for fiscal year 2019, using figures from Pew Charitable Trusts. The median number of days a state could run on rainy day funds was 27.9 days, which was 10.6 more days than the median during the Great Recession, according to Pew. However, the current conditions of those funds vary widely from state to state. According to Pew Charitable Trusts, 34 states have built up their rainy day funds to be better equipped for economic crises than they were going into the last recession. Four states — New Jersey, Pennsylvania, Kentucky, and Illinois — have less than a week's worth of rainy day funds. Kansas cannot operate at all on just rainy day funds because although it opened up its rainy day fund in 2016, the state hasn't put any money in the account yet. It was planning to start adding money in its account in fiscal year 2020, according to Tax Foundation. It is important to note that 12 states have limits on how much can be withdrawn in a year. For instance, North Carolina can only take out 7.5% of last year's general fund, which works out to around $1.25 billion, and Idaho can use 50% of its rainy day balance in a year, or about $373 million. Every state has legal limitations on how they can spend rainy day funds, except for six states that can use the money for any reason. There are also differences in who authorizes the withdrawals. The Tax Foundation wrote in a recent report on rainy day funds that it might be easier to use rainy day funds in states that require approval from executive agencies or governors than in those who need approval from legislators. This is because stay-at-home orders and other responses amid the pandemic might make it harder for legislators to come together. The Tax Foundation compiled a full list of how much of a rainy day fund a state can use, what purposes those funds can be used for, and who authorizes it. Some state governors have already planned on using money from their reserves amid the coronavirus, such as in Washington and Maryland. Theal said when looking at the rainy day funds, it is important to look at a state's sources of revenue and the diversity of its economy. According to an article from Vox, 70% of state tax revenue is from sales and income taxes, which have been collapsing as businesses shutter and workers are laid off or furloughed. Theal said because tax day was delayed this year to July 15, after most states' budget years finish at the end of June, "you're shifting this huge influx of personal income tax collections from the current fiscal year to the next one" which will create more stress on balancing budgets. "The pandemic and its fiscal impacts will linger for months if not years within states," Theal said. "And so a lot of states are convening emergency sessions to bring the legislators back and have to adjust their 2021 budgets based on the new forecast of how revenue will be impacted and the additional strains on spending and what they ultimately mean to each state's budget." To get a sense of where states and their rainy day funds stand, we looked at Pew's estimates for how many days they could pay their bills using those funds alone. The following six states represent examples of where places with different financial situations and impact from the coronavirus all sit today. New Jersey has been hit especially hard by the coronavirus, and its finances were already in dire condition before the crisis. New Jersey used up all of its funds during the last recession and had a hard time rebuilding this reserve, according to NJ Spotlight. According to Pew Trusts, New Jersey had 3.9 days to operate alone on its rainy day funds in fiscal year 2019. The state had $401 million, or 1.1% of its spending, in rainy day funds. Although the amount is small compared to other states, it is significant because 2019 was the first time in over a decade that money was added to the emergency fund account, according to Politico. According to the Center on Budget and Policy Priorities using Moody's analytics on budget stress tests, New Jersey is one of the states "least prepared" for an economic downturn. "While their economies are not so volatile, they have exceptionally small reserves, partly because they failed for many years to adequately fund their public employee pension systems and now are struggling to restore those systems' long-term health," the Center on Budget and Policy Priorities wrote. New York is the epicenter of the coronavirus in the US, with over 156,000 cases in New York City alone, as of April 27, and its major sources of revenue have taken a hit as the tourism industry and businesses temporarily close. According to data from Pew Trusts, New York had 10.3 days to operate just on its rainy day funds in fiscal year 2019. The state had $2 billion, or 2.8% of its spending, in rainy day funds. The state already had a budget gap of $6 billion before the pandemic. One reason for this was due to Medicaid costs and demand. Six million New Yorkers are enrolled in the program and spending for this healthcare program was about $75 billion in fiscal year 2018 in New York, according to The New York Times. In 2012, "the state froze Medicaid contributions paid by county governments" to help local New York governments, meaning the state then had to help with any Medicaid cost increases, according to Syracuse News. To help with the high costs of the healthcare program and to address the budget gap, Gov. Andrew Cuomo of New York recently proposed that counties control increases in the cost of Medicaid locally to no more than 3%, according to The New York Times article. Theal said with unemployment numbers rising, more people will be looking to "draw upon Medicaid health benefits." The state's unemployment rate in March 2020 was at 4.5%, which is most likely lower than the actual rate as this is a preliminary reported figure from the US Bureau of Labor Statistics that does not include the subsequent weeks of layoffs and furloughs. In contrast to New Jersey and New York, Wyoming is better prepared for an economic emergency. According to figures from Pew, Wyoming can operate for over a year on just their rainy day funds, with 397.7 days worth of funding. One reason their rainy day fund account of $1.7 billion, or 109.0% of its annual spending, was so high is because the state does a good job of saving money when times are good since its main revenue source of oil and fossil fuels fluctuates, Theal said. Although Wyoming has a robust rainy day fund, it is one of the states that requires repayment quickly and has to repay the full amount the following fiscal year, according to Tax Foundation. "I think that when given the choice between cutting more costs and dipping into rainy day funds, I think a lot of states are going to end up relying on their rainy day funds for some relief there," Cammenga said. "But I think it will be largely the states that don't have those really stringent requirements." According to the Center on Budget and Policy Priorities using Moody's analytics on budget stress tests, Wyoming is "best prepared" for an economic downturn. However, its reliance on one source of revenue could be an issue, especially during recent declines in oil prices. According to Rob Godby, an economist at the University of Wyoming, interviewed by Sierra Magazine, he said "Wyoming has to make fundamental changes to move beyond its dependence on falling energy revenues. That could mean hiking property or other taxes or introducing an income tax." Nevada has a large tourism industry that has been impacted by the state lockdown and is projected to have the most job losses by this summer among states and DC. According to Pew Trusts, Nevada can run for 27.3 days on just its rainy day fund, which is close to the median across the states in fiscal year 2019. The state had $332 million, or 7.5% of its spending, in rainy day funds. The amount in its account has gone up and down over the years, including during and after the Great Recession. The state had $268 million in fiscal year 2007, which decreased to $72.6 million in fiscal year 2008. In fiscal year 2009, the state only had $600,000, enough for less than a day. According to a Brookings Institution report in 2017, "Nevada policymakers, assuming that the gaming and tourism industry was less vulnerable to swings in the business cycle, did not build up reserves during the early 2000s when revenue was soaring." As a result, Nevada's revenue was negatively affected by the Great Recession as its main sources of revenue fell. But dipping into its reserves, "did not offset the deep spending cuts, tax increases, borrowing, and one-time federal stimulus money," according to Brookings. Although Michigan has enough in its rainy day funds to run for over a month, it might not be prepared for serve economic impacts from the pandemic. According to Pew, Michigan has enough money in its rainy day account to operate for 40.2 days based on its $1.1 billion in reserves, or 11.0% of its spending. Their budget stabilization fund has been rising since fiscal year 2014. However, these reserves might not be enough to cover expenses and shortfalls during and after the coronavirus. According to a report by, Citizen's Research Council of Michigan in 2017, Michigan is only prepared for a "mild economic downturn." The state holds a better financial cushion than it did during the Great Recession, when the state had no money saved in its rainy day funds after using them to cover budget shortfalls from Michigan's "single-state recession", a term used in Michigan after the state spent almost a decade in a recession even after other states started to recover from a national recession in 2001, according to Citizen's Research Council of Michigan. Pew notes that Michigan is one of the states that spends "considerable amounts" outside of their rainy day funds that also might add to aid the state in economic downfalls. Although California has been building up its rainy day funds since it depleted its account in the Great Recession, the state is already predicting budget shortfalls. According to Pew, California can run on rainy day funds for 52.8 days, more than double the median among states and among the top 10 states with the highest number of operating days. Since 2014, the state requires 1.5% of its General Fund be put into its rainy day funds, according to California Legislative Analyst Office. The state had $20.6 billion in fiscal year 2019, or 14.5% of its spending, in its budget stabilization account. But because of the nation's response to the pandemic, such as businesses temporarily closing and layoffs, that can affect the state's major sources of revenue. Experts covered by the LA Times believe their rainy day funds could be depleted to cover the state's economic shortfalls. The state heavily relies on personal income taxes for revenue, where 67% of the proposed budget for fiscal year 2021 comes from personal income taxes, according to The Sacramento Bee. A good portion of income taxes comes from upper-income Californians, which The Sacramento Bee points out their source of income can vary. This makes it an unreliable source of revenue. LoadingSomething is loading. 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2 May 12:40 • Business Insider • https://www.businessinsider.com/state-rainy-day-funds-if-they-run-out-of-money-2020-4Rating: 4.40
We surveyed the 'rainy day' funds of 6 states to see how prepared they were for a major emergency. The results paint a grim picture for the country's economic recovery., Business Insider - Business Insider Singapore
The novel coronavirus has put a lot of stress on state economies. Because of stay-at-home orders and temporary closures of nonessential businesses, many workers have been laid off or furloughed and demand in some industries has declined, such as in travel and hospitality. The response to the coronavirus has already put a strain on state budgets as states have to find money to cover the unprecedented number of people filing for unemployment benefits after major layoffs across industries. Sales and income taxes, which make up a large percentage of a state’s tax revenue, are also affected by more people facing layoffs, staying at home, and spending less. According to the Brookings Institution, states also have to spend more to meet the demand for Medicaid and other healthcare spending during the pandemic, and some states have enacted or have pending money transfers from their general funds to help with different needs in their state. “When expenses go up, policymakers have to either cut spending or find revenue from raising taxes or withdrawing from their rainy day funds,” Justin Theal, research officer at Pew Charitable Trusts, told Business Insider. “That’s why having robust savings is so important….Whether a state cuts spending or increases taxes to balance their budget – that ultimately takes money out of the economy and makes it harder for a nation as a whole to recover.” During the last recession, Theal said states had to make cuts to their budgets in areas like higher education, infrastructure, or state aid to local governments. Some states have caught up in these areas since the recession, but others have not. “The areas of the budget that the policy makers would typically look to cut, to help balance their budgets during economic downturns, like higher education, in many states there’s not that much flexibility in that area because they hadn’t caught up on the cuts that they had made during the Great Recession,” Theal said. States can also get aid from federal funding to help budget shortfalls and expenses. The recent CARES Act has provided some economic relief to help states, businesses, and individuals around the country during the pandemic, but some economists believe that state and local governments will still fall short in their budgets, even with up to $150 billion relief from the CARES Act. The latest approved federal aid will provide more assistance to small businesses but not state and local governments who need it to cover budget shortfalls. In fact, Senate Majority Leader Mitch McConnell recently said he would rather have states go bankrupt than give them federal funding. According to a recent blog post from the Economic Policy Institute, based on already existing predicted budget shortfalls and recent data projections, state and local governments will need another stimulus package of $500 billion. Amid closures, layoffs, and the need for more federal aid, one positive is that many states have money reserved in rainy day funds, or budget stabilization accounts, to help with economic downfalls. Rainy day funds help states cover budget shortfalls, as most states must balance their budgets each year, so that they can reduce the need for budget cuts or tax increases, according to Pew Charitable Trusts. Rainy day funds are so important because they could be used to help shortfalls during and after the coronavirus. According to the Associated Press, financial experts said without this financial “cushion” states would have been “in much worse shape” for handling the economic impacts from the pandemic. “The present crisis should just be another reminder of how important it is to fund these reserve accounts when times are good so that they can help states in difficult times in the future,” Janelle Cammenga, policy analyst at Tax Foundation, told Business Insider. Although the current situation is an example of the perfect time to dip into reserves, rainy day funds are not unlimited. If a state uses all their money in this account “then they just can’t take anymore money out of it and they have to find another way to balance their budget,” Cammenga said. The total in rainy day funds across all 50 states was $74.9 billion for fiscal year 2019, using figures from Pew Charitable Trusts. The median number of days a state could run on rainy day funds was 27.9 days, which was 10.6 more days than the median during the Great Recession, according to Pew. However, the current conditions of those funds vary widely from state to state. According to Pew Charitable Trusts, 34 states have built up their rainy day funds to be better equipped for economic crises than they were going into the last recession. Four states – New Jersey, Pennsylvania, Kentucky, and Illinois – have less than a week’s worth of rainy day funds. Kansas cannot operate at all on just rainy day funds because although it opened up its rainy day fund in 2016, the state hasn’t put any money in the account yet. It was planning to start adding money in its account in fiscal year 2020, according to Tax Foundation. It is important to note that 12 states have limits on how much can be withdrawn in a year. For instance, North Carolina can only take out 7.5% of last year’s general fund, which works out to around $1.25 billion, and Idaho can use 50% of its rainy day balance in a year, or about $373 million. Every state has legal limitations on how they can spend rainy day funds, except for six states that can use the money for any reason. There are also differences in who authorizes the withdrawals. The Tax Foundation wrote in a recent report on rainy day funds that it might be easier to use rainy day funds in states that require approval from executive agencies or governors than in those who need approval from legislators. This is because stay-at-home orders and other responses amid the pandemic might make it harder for legislators to come together. The Tax Foundation compiled a full list of how much of a rainy day fund a state can use, what purposes those funds can be used for, and who authorizes it. Some state governors have already planned on using money from their reserves amid the coronavirus, such as in Washington and Maryland. Theal said when looking at the rainy day funds, it is important to look at a state’s sources of revenue and the diversity of its economy. According to an article from Vox, 70% of state tax revenue is from sales and income taxes, which have been collapsing as businesses shutter and workers are laid off or furloughed. Theal said because tax day was delayed this year to July 15, after most states’ budget years finish at the end of June, “you’re shifting this huge influx of personal income tax collections from the current fiscal year to the next one” which will create more stress on balancing budgets. “The pandemic and its fiscal impacts will linger for months if not years within states,” Theal said. “And so a lot of states are convening emergency sessions to bring the legislators back and have to adjust their 2021 budgets based on the new forecast of how revenue will be impacted and the additional strains on spending and what they ultimately mean to each state’s budget.” To get a sense of where states and their rainy day funds stand, we looked at Pew’s estimates for how many days they could pay their bills using those funds alone. The following six states represent examples of where places with different financial situations and impact from the coronavirus all sit today. New Jersey has been hit especially hard by the coronavirus, and its finances were already in dire condition before the crisis. New Jersey used up all of its funds during the last recession and had a hard time rebuilding this reserve, according to NJ Spotlight. According to Pew Trusts, New Jersey had 3.9 days to operate alone on its rainy day funds in fiscal year 2019. The state had $401 million, or 1.1% of its spending, in rainy day funds. Although the amount is small compared to other states, it is significant because 2019 was the first time in over a decade that money was added to the emergency fund account, according to Politico. According to the Center on Budget and Policy Priorities using Moody’s analytics on budget stress tests, New Jersey is one of the states “least prepared” for an economic downturn. “While their economies are not so volatile, they have exceptionally small reserves, partly because they failed for many years to adequately fund their public employee pension systems and now are struggling to restore those systems’ long-term health,” the Center on Budget and Policy Priorities wrote. New York is the epicenter of the coronavirus in the US, with over 156,000 cases in New York City alone, as of April 27, and its major sources of revenue have taken a hit as the tourism industry and businesses temporarily close. According to data from Pew Trusts, New York had 10.3 days to operate just on its rainy day funds in fiscal year 2019. The state had $2 billion, or 2.8% of its spending, in rainy day funds. The state already had a budget gap of $6 billion before the pandemic. One reason for this was due to Medicaid costs and demand. Six million New Yorkers are enrolled in the program and spending for this healthcare program was about $75 billion in fiscal year 2018 in New York, according to The New York Times. In 2012, “the state froze Medicaid contributions paid by county governments” to help local New York governments, meaning the state then had to help with any Medicaid cost increases, according to Syracuse News. To help with the high costs of the healthcare program and to address the budget gap, Gov. Andrew Cuomo of New York recently proposed that counties control increases in the cost of Medicaid locally to no more than 3%, according to The New York Times article. Theal said with unemployment numbers rising, more people will be looking to “draw upon Medicaid health benefits.” The state’s unemployment rate in March 2020 was at 4.5%, which is most likely lower than the actual rate as this is a preliminary reported figure from the US Bureau of Labor Statistics that does not include the subsequent weeks of layoffs and furloughs. In contrast to New Jersey and New York, Wyoming is better prepared for an economic emergency. According to figures from Pew, Wyoming can operate for over a year on just their rainy day funds, with 397.7 days worth of funding. One reason their rainy day fund account of $1.7 billion, or 109.0% of its annual spending, was so high is because the state does a good job of saving money when times are good since its main revenue source of oil and fossil fuels fluctuates, Theal said. Although Wyoming has a robust rainy day fund, it is one of the states that requires repayment quickly and has to repay the full amount the following fiscal year, according to Tax Foundation. “I think that when given the choice between cutting more costs and dipping into rainy day funds, I think a lot of states are going to end up relying on their rainy day funds for some relief there,” Cammenga said. “But I think it will be largely the states that don’t have those really stringent requirements.” According to the Center on Budget and Policy Priorities using Moody’s analytics on budget stress tests, Wyoming is “best prepared” for an economic downturn. However, its reliance on one source of revenue could be an issue, especially during recent declines in oil prices. According to Rob Godby, an economist at the University of Wyoming, interviewed by Sierra Magazine, he said “Wyoming has to make fundamental changes to move beyond its dependence on falling energy revenues. That could mean hiking property or other taxes or introducing an income tax.” Nevada has a large tourism industry that has been impacted by the state lockdown and is projected to have the most job losses by this summer among states and DC. According to Pew Trusts, Nevada can run for 27.3 days on just its rainy day fund, which is close to the median across the states in fiscal year 2019. The state had $332 million, or 7.5% of its spending, in rainy day funds. The amount in its account has gone up and down over the years, including during and after the Great Recession. The state had $268 million in fiscal year 2007, which decreased to $72.6 million in fiscal year 2008. In fiscal year 2009, the state only had $600,000, enough for less than a day. According to a Brookings Institution report in 2017, “Nevada policymakers, assuming that the gaming and tourism industry was less vulnerable to swings in the business cycle, did not build up reserves during the early 2000s when revenue was soaring.” As a result, Nevada’s revenue was negatively affected by the Great Recession as its main sources of revenue fell. But dipping into its reserves, “did not offset the deep spending cuts, tax increases, borrowing, and one-time federal stimulus money,” according to Brookings. Although Michigan has enough in its rainy day funds to run for over a month, it might not be prepared for serve economic impacts from the pandemic. According to Pew, Michigan has enough money in its rainy day account to operate for 40.2 days based on its $1.1 billion in reserves, or 11.0% of its spending. Their budget stabilization fund has been rising since fiscal year 2014. However, these reserves might not be enough to cover expenses and shortfalls during and after the coronavirus. According to a report by, Citizen’s Research Council of Michigan in 2017, Michigan is only prepared for a “mild economic downturn.” The state holds a better financial cushion than it did during the Great Recession, when the state had no money saved in its rainy day funds after using them to cover budget shortfalls from Michigan’s “single-state recession”, a term used in Michigan after the state spent almost a decade in a recession even after other states started to recover from a national recession in 2001, according to Citizen’s Research Council of Michigan. Pew notes that Michigan is one of the states that spends “considerable amounts” outside of their rainy day funds that also might add to aid the state in economic downfalls. Although California has been building up its rainy day funds since it depleted its account in the Great Recession, the state is already predicting budget shortfalls. According to Pew, California can run on rainy day funds for 52.8 days, more than double the median among states and among the top 10 states with the highest number of operating days. Since 2014, the state requires 1.5% of its General Fund be put into its rainy day funds, according to California Legislative Analyst Office. The state had $20.6 billion in fiscal year 2019, or 14.5% of its spending, in its budget stabilization account. But because of the nation’s response to the pandemic, such as businesses temporarily closing and layoffs, that can affect the state’s major sources of revenue. Experts covered by the LA Times believe their rainy day funds could be depleted to cover the state’s economic shortfalls. The state heavily relies on personal income taxes for revenue, where 67% of the proposed budget for fiscal year 2021 comes from personal income taxes, according to The Sacramento Bee. A good portion of income taxes comes from upper-income Californians, which The Sacramento Bee points out their source of income can vary. This makes it an unreliable source of revenue.
2 May 12:40 • www.businessinsider.sg • https://www.businessinsider.sg/state-rainy-day-funds-if-they-run-out-of-money-2020-4Rating: 0.30
We surveyed the ‘rainy day’ funds of 6 states to see how prepared they were for a major emergency. The results paint a grim picture for the country’s economic recovery.
The novel coronavirus has put a lot of stress on state economies. Because of stay-at-home orders and temporary closures of nonessential businesses, many workers have been laid off or furloughed and demand in some industries has declined, such as in travel and hospitality. The response to the coronavirus has already put a strain on state budgets as states have to find money to cover the unprecedented number of people filing for unemployment benefits after major layoffs across industries. Sales and income taxes, which make up a large percentage of a state’s tax revenue, are also affected by more people facing layoffs, staying at home, and spending less. According to the Brookings Institution, states also have to spend more to meet the demand for Medicaid and other healthcare spending during the pandemic, and some states have enacted or have pending money transfers from their general funds to help with different needs in their state. “When expenses go up, policymakers have to either cut spending or find revenue from raising taxes or withdrawing from their rainy day funds,” Justin Theal, research officer at Pew Charitable Trusts, told Business Insider. “That’s why having robust savings is so important….Whether a state cuts spending or increases taxes to balance their budget – that ultimately takes money out of the economy and makes it harder for a nation as a whole to recover.” During the last recession, Theal said states had to make cuts to their budgets in areas like higher education, infrastructure, or state aid to local governments. Some states have caught up in these areas since the recession, but others have not. “The areas of the budget that the policy makers would typically look to cut, to help balance their budgets during economic downturns, like higher education, in many states there’s not that much flexibility in that area because they hadn’t caught up on the cuts that they had made during the Great Recession,” Theal said. States can also get aid from federal funding to help budget shortfalls and expenses. The recent CARES Act has provided some economic relief to help states, businesses, and individuals around the country during the pandemic, but some economists believe that state and local governments will still fall short in their budgets, even with up to $150 billion relief from the CARES Act. The latest approved federal aid will provide more assistance to small businesses but not state and local governments who need it to cover budget shortfalls. In fact, Senate Majority Leader Mitch McConnell recently said he would rather have states go bankrupt than give them federal funding. According to a recent blog post from the Economic Policy Institute, based on already existing predicted budget shortfalls and recent data projections, state and local governments will need another stimulus package of $500 billion. Amid closures, layoffs, and the need for more federal aid, one positive is that many states have money reserved in rainy day funds, or budget stabilization accounts, to help with economic downfalls. Rainy day funds help states cover budget shortfalls, as most states must balance their budgets each year, so that they can reduce the need for budget cuts or tax increases, according to Pew Charitable Trusts. Rainy day funds are so important because they could be used to help shortfalls during and after the coronavirus. According to the Associated Press, financial experts said without this financial “cushion” states would have been “in much worse shape” for handling the economic impacts from the pandemic. “The present crisis should just be another reminder of how important it is to fund these reserve accounts when times are good so that they can help states in difficult times in the future,” Janelle Cammenga, policy analyst at Tax Foundation, told Business Insider. Although the current situation is an example of the perfect time to dip into reserves, rainy day funds are not unlimited. If a state uses all their money in this account “then they just can’t take anymore money out of it and they have to find another way to balance their budget,” Cammenga said. The total in rainy day funds across all 50 states was $74.9 billion for fiscal year 2019, using figures from Pew Charitable Trusts. The median number of days a state could run on rainy day funds was 27.9 days, which was 10.6 more days than the median during the Great Recession, according to Pew. However, the current conditions of those funds vary widely from state to state. According to Pew Charitable Trusts, 34 states have built up their rainy day funds to be better equipped for economic crises than they were going into the last recession. Four states – New Jersey, Pennsylvania, Kentucky, and Illinois – have less than a week’s worth of rainy day funds. Kansas cannot operate at all on just rainy day funds because although it opened up its rainy day fund in 2016, the state hasn’t put any money in the account yet. It was planning to start adding money in its account in fiscal year 2020, according to Tax Foundation. It is important to note that 12 states have limits on how much can be withdrawn in a year. For instance, North Carolina can only take out 7.5% of last year’s general fund, which works out to around $1.25 billion, and Idaho can use 50% of its rainy day balance in a year, or about $373 million. Every state has legal limitations on how they can spend rainy day funds, except for six states that can use the money for any reason. There are also differences in who authorizes the withdrawals. The Tax Foundation wrote in a recent report on rainy day funds that it might be easier to use rainy day funds in states that require approval from executive agencies or governors than in those who need approval from legislators. This is because stay-at-home orders and other responses amid the pandemic might make it harder for legislators to come together. The Tax Foundation compiled a full list of how much of a rainy day fund a state can use, what purposes those funds can be used for, and who authorizes it. Some state governors have already planned on using money from their reserves amid the coronavirus, such as in Washington and Maryland. Theal said when looking at the rainy day funds, it is important to look at a state’s sources of revenue and the diversity of its economy. According to an article from Vox, 70% of state tax revenue is from sales and income taxes, which have been collapsing as businesses shutter and workers are laid off or furloughed. Theal said because tax day was delayed this year to July 15, after most states’ budget years finish at the end of June, “you’re shifting this huge influx of personal income tax collections from the current fiscal year to the next one” which will create more stress on balancing budgets. “The pandemic and its fiscal impacts will linger for months if not years within states,” Theal said. “And so a lot of states are convening emergency sessions to bring the legislators back and have to adjust their 2021 budgets based on the new forecast of how revenue will be impacted and the additional strains on spending and what they ultimately mean to each state’s budget.” To get a sense of where states and their rainy day funds stand, we looked at Pew’s estimates for how many days they could pay their bills using those funds alone. The following six states represent examples of where places with different financial situations and impact from the coronavirus all sit today. New Jersey has been hit especially hard by the coronavirus, and its finances were already in dire condition before the crisis. New Jersey used up all of its funds during the last recession and had a hard time rebuilding this reserve, according to NJ Spotlight. According to Pew Trusts, New Jersey had 3.9 days to operate alone on its rainy day funds in fiscal year 2019. The state had $401 million, or 1.1% of its spending, in rainy day funds. Although the amount is small compared to other states, it is significant because 2019 was the first time in over a decade that money was added to the emergency fund account, according to Politico. According to the Center on Budget and Policy Priorities using Moody’s analytics on budget stress tests, New Jersey is one of the states “least prepared” for an economic downturn. “While their economies are not so volatile, they have exceptionally small reserves, partly because they failed for many years to adequately fund their public employee pension systems and now are struggling to restore those systems’ long-term health,” the Center on Budget and Policy Priorities wrote. New York is the epicenter of the coronavirus in the US, with over 156,000 cases in New York City alone, as of April 27, and its major sources of revenue have taken a hit as the tourism industry and businesses temporarily close. According to data from Pew Trusts, New York had 10.3 days to operate just on its rainy day funds in fiscal year 2019. The state had $2 billion, or 2.8% of its spending, in rainy day funds. The state already had a budget gap of $6 billion before the pandemic. One reason for this was due to Medicaid costs and demand. Six million New Yorkers are enrolled in the program and spending for this healthcare program was about $75 billion in fiscal year 2018 in New York, according to The New York Times. In 2012, “the state froze Medicaid contributions paid by county governments” to help local New York governments, meaning the state then had to help with any Medicaid cost increases, according to Syracuse News. To help with the high costs of the healthcare program and to address the budget gap, Gov. Andrew Cuomo of New York recently proposed that counties control increases in the cost of Medicaid locally to no more than 3%, according to The New York Times article. Theal said with unemployment numbers rising, more people will be looking to “draw upon Medicaid health benefits.” The state’s unemployment rate in March 2020 was at 4.5%, which is most likely lower than the actual rate as this is a preliminary reported figure from the US Bureau of Labor Statistics that does not include the subsequent weeks of layoffs and furloughs. In contrast to New Jersey and New York, Wyoming is better prepared for an economic emergency. According to figures from Pew, Wyoming can operate for over a year on just their rainy day funds, with 397.7 days worth of funding. One reason their rainy day fund account of $1.7 billion, or 109.0% of its annual spending, was so high is because the state does a good job of saving money when times are good since its main revenue source of oil and fossil fuels fluctuates, Theal said. Although Wyoming has a robust rainy day fund, it is one of the states that requires repayment quickly and has to repay the full amount the following fiscal year, according to Tax Foundation. “I think that when given the choice between cutting more costs and dipping into rainy day funds, I think a lot of states are going to end up relying on their rainy day funds for some relief there,” Cammenga said. “But I think it will be largely the states that don’t have those really stringent requirements.” According to the Center on Budget and Policy Priorities using Moody’s analytics on budget stress tests, Wyoming is “best prepared” for an economic downturn. However, its reliance on one source of revenue could be an issue, especially during recent declines in oil prices. According to Rob Godby, an economist at the University of Wyoming, interviewed by Sierra Magazine, he said “Wyoming has to make fundamental changes to move beyond its dependence on falling energy revenues. That could mean hiking property or other taxes or introducing an income tax.” Nevada has a large tourism industry that has been impacted by the state lockdown and is projected to have the most job losses by this summer among states and DC. According to Pew Trusts, Nevada can run for 27.3 days on just its rainy day fund, which is close to the median across the states in fiscal year 2019. The state had $332 million, or 7.5% of its spending, in rainy day funds. The amount in its account has gone up and down over the years, including during and after the Great Recession. The state had $268 million in fiscal year 2007, which decreased to $72.6 million in fiscal year 2008. In fiscal year 2009, the state only had $600,000, enough for less than a day. According to a Brookings Institution report in 2017, “Nevada policymakers, assuming that the gaming and tourism industry was less vulnerable to swings in the business cycle, did not build up reserves during the early 2000s when revenue was soaring.” As a result, Nevada’s revenue was negatively affected by the Great Recession as its main sources of revenue fell. But dipping into its reserves, “did not offset the deep spending cuts, tax increases, borrowing, and one-time federal stimulus money,” according to Brookings. Although Michigan has enough in its rainy day funds to run for over a month, it might not be prepared for serve economic impacts from the pandemic. According to Pew, Michigan has enough money in its rainy day account to operate for 40.2 days based on its $1.1 billion in reserves, or 11.0% of its spending. Their budget stabilization fund has been rising since fiscal year 2014. However, these reserves might not be enough to cover expenses and shortfalls during and after the coronavirus. According to a report by, Citizen’s Research Council of Michigan in 2017, Michigan is only prepared for a “mild economic downturn.” The state holds a better financial cushion than it did during the Great Recession, when the state had no money saved in its rainy day funds after using them to cover budget shortfalls from Michigan’s “single-state recession”, a term used in Michigan after the state spent almost a decade in a recession even after other states started to recover from a national recession in 2001, according to Citizen’s Research Council of Michigan. Pew notes that Michigan is one of the states that spends “considerable amounts” outside of their rainy day funds that also might add to aid the state in economic downfalls. Although California has been building up its rainy day funds since it depleted its account in the Great Recession, the state is already predicting budget shortfalls. According to Pew, California can run on rainy day funds for 52.8 days, more than double the median among states and among the top 10 states with the highest number of operating days. Since 2014, the state requires 1.5% of its General Fund be put into its rainy day funds, according to California Legislative Analyst Office. The state had $20.6 billion in fiscal year 2019, or 14.5% of its spending, in its budget stabilization account. But because of the nation’s response to the pandemic, such as businesses temporarily closing and layoffs, that can affect the state’s major sources of revenue. Experts covered by the LA Times believe their rainy day funds could be depleted to cover the state’s economic shortfalls. The state heavily relies on personal income taxes for revenue, where 67% of the proposed budget for fiscal year 2021 comes from personal income taxes, according to The Sacramento Bee. A good portion of income taxes comes from upper-income Californians, which The Sacramento Bee points out their source of income can vary. This makes it an unreliable source of revenue.
2 May 12:40 • Business Insider Malaysia • https://www.businessinsider.my/state-rainy-day-funds-if-they-run-out-of-money-2020-4Rating: 0.30
You can claim 100% tax deduction on donation towards PM CARES Fund
The Covid-19 crisis has impacted not just India but the entire global economy. Amid this global economic downturn and with countries under lockdown, people are trying their best to handle work and other responsibilities from home. To offer them support in this scenario, the government has provided tax relief and extensions in deadlines for statutory compliances. Extension of due dates: The due date to file a belated return and a revised return for Financial Year (FY) 2018-19 has been extended from March 31, 2020 to June 30, 2020. Accordingly, an individual taxpayer who has not filed his income tax return for FY 2018-19, or who wishes to revise a tax return that has already been filed, can now file or revise the return on or before June 30, 2020. Further, the due dates for “furnishing returns and filing statements by employer” falling within the period March 20, 2020 and June 29, 2020, has now been extended to June 30, 2020. Hence, the due date for filing of ETDS returns for the fourth quarter, which fall within this period, also stands extended. One can therefore expect delays in issue of Form 16/12BA for FY2019-20. Due date for linking PAN-Aadhaar extended: It is mandatory to obtain Aadhaar number in India (subject to exceptions) and mention it in the tax return form at the time of filing the tax return. Also, according to income tax laws, it is mandatory to link the PAN number with Aadhaar number. The deadline for linking PAN with Aadhaar was March 31, 2020, failing which the PAN number would have become inoperative. Due to the Covid-19 situation, this deadline has been extended until June 30, 2020. ALSO READ: Women Jan Dhan account holders to receive 2nd installment from Mon: FinMin Tax-saving investments: An individual is required to make tax-saving investments in order to claim a tax deduction (for example, investment in Public Provident Fund, ELSS, etc.) on or before March 31 of the respective financial year. Quite often, individuals end up making these investments in the month of March itself. On account of the lockdown in most parts of India during March 2020, it was difficult for individuals to make investments. Hence, the government has extended this deadline of March 31 till June 30, 2020. Consequently, an individual can make an investment on or before June 30, 2020 and claim a tax deduction for FY 2019-20. Care should be taken to ensure that a deduction for this investment is not claimed in FY 2020-2021 as well.
2 May 18:16 • Business-Standard • https://www.business-standard.com/article/pf/you-can-claim-100-tax-deduction-on-donation-towards-pm-cares-fund-120050201248_1.htmlRating: 0.30
Meet the 33 people with the most power at YouTube, the world's biggest online video company
2 May 13:00
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Meet the 33 people with the most power at YouTube, the world's biggest online video company
Google acquired YouTube for $1.65 billion in 2006, and it's turned into the world's biggest and most powerful online video company and an advertising juggernaut. With original programming and user-generated content that reaches more than two billion people each month, YouTube rivals streaming giants including Netflix and Amazon. It pulled in $15 billion in advertising revenue in 2019, more than TV networks ABC, NBC, and Fox combined. Another $3 billion came from non-ad revenue in products like YouTube Music and YouTube TV, though YouTube pays a portion of that money back to networks and publishers in distribution rights. And YouTube is making a bigger push into TV and streaming as more people shift from watching linear TV. Business Insider identified the 33 executives there with the most power, from policy, engineering, content, and advertising, these insiders are leading all of YouTube's businesses. The platform has turned content creators, from MrBeast to Emma Chamberlain, into stars with multi-platform businesses and major brand partnerships. With the help of partner managers, top YouTube creators are establishing new business models for Hollywood. YouTube has also drawn regulators' antitrust and privacy questions. In September, YouTube got hit with a $170 million fee for reportedly violating the Child Online Privacy Protection Act. The company has struggled to keep out extremist content and ads that break its rules against misinformation. Business Insider identified the top people behind YouTube's growing ad business. They include Kevin Allocca, who leads the global culture and trends team focused on analyzing and tracking trending content at YouTube. It also includes leaders like Neal Mohan, who reports directly to CEO Susan Wojcicki and oversees all of the products on the viewer and creator side. Click to read the full list below: Get the latest Google stock price here.
2 May 13:00 • Business Insider • https://www.businessinsider.com/youtube-power-list-2020-33-insiders-leading-the-company-2020-4Rating: 4.40
Meet the 33 people with the most power at YouTube, the world’s biggest online video company
Google acquired YouTube for $1.65 billion in 2006, and it’s turned into the world’s biggest and most powerful online video company and an advertising juggernaut. With original programming and user-generated content that reaches more than two billion people each month, YouTube rivals streaming giants including Netflix and Amazon. It pulled in $15 billion in advertising revenue in 2019, more than TV networks ABC, NBC, and Fox combined. Another $3 billion came from non-ad revenue in products like YouTube Music and YouTube TV, though YouTube pays a portion of that money back to networks and publishers in distribution rights. And YouTube is making a bigger push into TV and streaming as more people shift from watching linear TV. Business Insider identified the 33 executives there with the most power, from policy, engineering, content, and advertising, these insiders are leading all of YouTube’s businesses. The platform has turned content creators, from MrBeast to Emma Chamberlain, into stars with multi-platform businesses and major brand partnerships. With the help of partner managers, top YouTube creators are establishing new business models for Hollywood. YouTube has also drawn regulators’ antitrust and privacy questions. In September, YouTube got hit with a $170 million fee for reportedly violating the Child Online Privacy Protection Act. The company has struggled to keep out extremist content and ads that break its rules against misinformation. Business Insider identified the top people behind YouTube’s growing ad business. They include Kevin Allocca, who leads the global culture and trends team focused on analyzing and tracking trending content at YouTube.It also includes leaders like Neal Mohan, who reports directly to CEO Susan Wojcicki and oversees all of the products on the viewer and creator side. Click to read the full list below:
2 May 13:00 • Business Insider Malaysia • https://www.businessinsider.my/youtube-power-list-2020-33-insiders-leading-the-company-2020-4-2Rating: 0.30
Meet the 33 people with the most power at YouTube, the world's biggest online video company
Google acquired YouTube for $US1.65 billion in 2006, and it’s turned into the world’s biggest and most powerful online video company and an advertising juggernaut. With original programming and user-generated content that reaches more than two billion people each month, YouTube rivals streaming giants including Netflix and Amazon. It pulled in $US15 billion in advertising revenue in 2019, more than TV networks ABC, NBC, and Fox combined. Another $US3 billion came from non-ad revenue in products like YouTube Music and YouTube TV, though YouTube pays a portion of that money back to networks and publishers in distribution rights. And YouTube is making a bigger push into TV and streaming as more people shift from watching linear TV. Business Insider identified the 33 executives there with the most power, from policy, engineering, content, and advertising, these insiders are leading all of YouTube’s businesses. The platform has turned content creators, from MrBeast to Emma Chamberlain, into stars with multi-platform businesses and major brand partnerships. With the help of partner managers, top YouTube creators are establishing new business models for Hollywood. YouTube has also drawn regulators’ antitrust and privacy questions. In September, YouTube got hit with a $US170 million fee for reportedly violating the Child Online Privacy Protection Act. The company has struggled to keep out extremist content and ads that break its rules against misinformation. Business Insider identified the top people behind YouTube’s growing ad business. They include Kevin Allocca, who leads the global culture and trends team focused on analysing and tracking trending content at YouTube.It also includes leaders like Neal Mohan, who reports directly to CEO Susan Wojcicki and oversees all of the products on the viewer and creator side. Click to read the full list below:
2 May 13:00 • Business Insider Australia • https://www.businessinsider.com.au/youtube-power-list-2020-33-insiders-leading-the-company-2020-4Rating: 0.30
Meet the 33 people with the most power at YouTube, the world's biggest online video company, Business Insider - Business Insider Singapore
Google acquired YouTube for $1.65 billion in 2006, and it’s turned into the world’s biggest and most powerful online video company and an advertising juggernaut. With original programming and user-generated content that reaches more than two billion people each month, YouTube rivals streaming giants including Netflix and Amazon. It pulled in $15 billion in advertising revenue in 2019, more than TV networks ABC, NBC, and Fox combined. Another $3 billion came from non-ad revenue in products like YouTube Music and YouTube TV, though YouTube pays a portion of that money back to networks and publishers in distribution rights. And YouTube is making a bigger push into TV and streaming as more people shift from watching linear TV. Business Insider identified the 33 executives there with the most power, from policy, engineering, content, and advertising, these insiders are leading all of YouTube’s businesses. The platform has turned content creators, from MrBeast to Emma Chamberlain, into stars with multi-platform businesses and major brand partnerships. With the help of partner managers, top YouTube creators are establishing new business models for Hollywood. YouTube has also drawn regulators’ antitrust and privacy questions. In September, YouTube got hit with a $170 million fee for reportedly violating the Child Online Privacy Protection Act. The company has struggled to keep out extremist content and ads that break its rules against misinformation. Business Insider identified the top people behind YouTube’s growing ad business. They include Kevin Allocca, who leads the global culture and trends team focused on analyzing and tracking trending content at YouTube.It also includes leaders like Neal Mohan, who reports directly to CEO Susan Wojcicki and oversees all of the products on the viewer and creator side. Click to read the full list below:
2 May 13:00 • www.businessinsider.sg • https://www.businessinsider.sg/youtube-power-list-2020-33-insiders-leading-the-company-2020-4Rating: 0.30
TVS Motor joins the list of auto firms with zero domestic sales in April
2 May 15:58
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TVS Motor joins the list of auto firms with zero domestic sales in April
Two-wheeler major TVS Motor has posted zero sales in the domestic market for the month of April, in a performance driven largely by the nationwide lockdown. However, the company was able to export 8,134 two-wheelers and 1,506 three-wheelers, following resumption of operations at Chennai Port. The vehicles had formed part of the company's March stocks. ALSO READ: Mystery continues around Prashant Kishor's travel to Kolkata amid lockdown "TVS Motor Company is gearing up to restart operations as per state guidelines and is undertaking strong measures to safeguard the health of the employees. We are optimistic about the potential demand for personal mobility once things normalise," the company said in an announcement today. Rhe Company’s plants have been closed since March 23, in compliance with the Government of India guidelines. Maruti Suzuki, Skoda Auto and MG Motor were some of the firms that had earlier reported zero domestic sales for the month of April.
2 May 15:58 • Business-Standard • https://www.business-standard.com/article/companies/tvs-motor-joins-the-list-of-auto-firms-with-zero-domestic-sales-in-april-120050201111_1.htmlRating: 0.30
Covid-19: Making no sales in April, TVS Motor ships bikes, three-wheelers
Two and three-wheeler manufacturer TVS Motor Company said it did not sell a single unit in April, as its plants were closed following the lockdown in the country. Following resumption of operations at Chennai Port, the company shipped 8,134 two-wheelers and 1,506 three-wheelers utilising the stocks from March 2020, it said in a statement. TVS Motor is gearing up to restart operations as per the State guidelines and is undertaking strong measures to safeguard the health of the employees, it added.
2 May 13:20 • BusinessLine • https://www.thehindubusinessline.com/companies/covid-19-making-no-sales-in-april-tvs-motor-ships-bikes-three-wheelers/article31489834.eceRating: 1.98
Hyundai Motor India Ltd records 1341 units of exports sales in April
Hyundai India has recorded an exports sales of 1341 units in the month of April and domestic sales stand nil because of the nationwide lockdown caused by Coronavirus pandemic. The export shipping process was conducted while taking all preventive measures and safety guidelines set by the government to ensure protection for everyone. Last month, the company recorded 26300 units in domestic sales and 5979 units in exports sales. That makes a combined total of 32279 units including the domestic and export output. If we compare the April figures with March, we can see a drastic decline in the output. And the courtesy goes to the nationwide lockdown initiated to curb the spread of COVID-19. Maruti Suzuki has also recorded zero sales in the month of April and many manufacturers will be experiencing a similar situation even after the lockdown is lifted. It will be a slow and gradual curve to normalcy. Manufactures like Ducati, Mercedes, and BMW have already launched their online portal to help customers browse and purchase vehicles by staying at home. These online services will further strengthen the social distancing initiative taken to minimize the risk of contracting the Coronavirus. However, the lockdown has been extended by two weeks with some relaxation in the orange and green zones. Manufacturers are also launching sanitation and disinfection services for their customers after the lockdown is lifted. This will keep the customers at ease regarding their safety and protection while travelling after the lockdown is over.
2 May 04:41 • OVERDRIVE • http://overdrive.in/news-cars-auto/hyundai-motor-india-ltd-records-1341-units-of-exports-sales-in-april/Rating: 0.44
A Total Of Zero New Cars Were Sold In India Last Month
The new coronavirus pandemic has been a menace to the world ever since the disease started to spread early this year. As of date, there are 3.34-million tallied cars worldwide, resulting in around 240,000 casualties. With strict lockdowns and preventive measures in place, mobility is absent and businesses have been hampered. One of the biggest industries that are getting pummeled is the automotive industry, of course. With a drastic drop in demand, as well as the complete closure of dealerships, auto sales have been taking a hard hit. That's the exact case that has been happening in India. India's Business Today reported that the country sold zero passenger cars for the month of April. Yes, that isn't a typo – India's $120 billion automotive industry registered zero sales last month amid lockdowns and astringent measures to curb the spread of coronavirus, which include factory shutdowns and the aforementioned dealership closures. This is hardly a surprise, though. India has been taking a hit since March, which had a 21-day lockdown. Maruti Suzuki, the country's largest automaker, only sold 76,240 units that month – a 47.4 percent dip in sales compared to its 145,031 units sold in March 2019. Within the period, however, Maruti Suzuki and Mahinda and Mahindra sold 1, 365 tractors, which are an essential part of agricultural activity and ultimately exempted from the effects of the lockdown. "At Mahindra, we are working hand in hand with all stakeholders, especially our dealer and supplier partners, to get our ecosystem started, once the lockdown is lifted. The safety of all our employees will be of paramount importance to us while resuming our operations," said Veejay Nakra, Chief Executive Officer, Automotive Division, Mahindra & Mahindra. India's lockdown may or may not be extended beyond May 3, so the future's unclear for the market, as is for the rest of the world. Source: Business Today India
2 May 03:10 • Motor1.com • https://www.motor1.com/news/419571/zero-cars-india-april-coronavirus/?utm_source=RSS&utm_medium=referral&utm_campaign=RSS-all-newsRating: 0.30
Coronavirus impact: Honda Motorcycle and Scooter India reports zero domestic sales in April
Honda Motorcycle and Scooter India (HMSI) on Saturday said it sold zero units in the domestic market last month as its production and sales network remained closed due to nationwide lockdown. The company's domestic sales last month stood at nil as all four production facilities suspended operations from March 22 till now following lockdown guidelines issued by the government, HMSI said in a statement. The two-wheeler major, however, exported 2,630 two-wheelers during the period, it added. Coronavirus India LIVE Updates "Since suspending operations in this unprecedented crisis, Honda is taking strong measures for business continuity, safeguarding health and well-being of staff, families & communities at large," HMSI Director – Sales & Marketing Yadvinder Singh Guleria said. During lockdown the company continues skilling-up workforce and dealer staff with various e-learning modules, he added. "Preparations are on to resume operations after receiving respective approvals from the government while re-aligning with supply-chain constraints and evolving market sentiments," Guleria said. Follow our full coverage of the coronavirus pandemic here.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/india/coronavirus-impact-honda-motorcycle-and-scooter-india-reports-zero-domestic-sales-in-april-5215121.htmlRating: 0.30
Coal India April shipments fall 25.5% as lockdown erodes demand
2 May 13:15
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Coal India April shipments fall 25.5% as lockdown erodes demand
Coal India’s shipments in April slumped 25.5 percent from a year earlier after more than a month-long nationwide lockdown halted economic activity, eroding demand for India’s most dominant energy source. Shipments dropped to 39.1 million tons in the month, the Kolkata-based miner said in a filing late Friday. Output declined 10.9 percent to 40.4 million tons. Global coal demand is heading for its biggest annual drop since World War II with burning the fuel to make electricity becoming unprofitable and socially untenable in several countries. The pandemic has only served to hasten its demise. The lockdown in India has shut factories and offices slashing electricity demand by about a quarter, affecting the use of coal and causing inventories to swell to record levels.z India extended the stay-at-home restrictions for most parts of the country for another two weeks starting May 4. “Coal India’s output is expected to remain muted until demand starts picking up,” Rupesh Sankhe, an analyst at Elara Capital India in Mumbai, said before the company reported the data. “It will probably look at new customers, especially those that depend on imported coal, to shore up shipments.” Despite the demand for the fuel crashing, the miner has set a higher output and shipments target for the fiscal year that began April 1 on expectations of a revival after the lockdown is lifted, coal minister Pralhad Joshi said last week. If you want to help in the fight against COVID-19, we have compiled an up-to-date list of community initiatives designed to aid medical workers and low-income people in this article. Link: [UPDATED] Anti-COVID-19 initiatives: Helping Indonesia fight the outbreak
2 May 13:15 • The Jakarta Post • https://www.thejakartapost.com/news/2020/05/02/coal-india-april-shipments-fall-255-as-lockdown-erodes-demand.htmlRating: 1.40
Coal India April shipments fall 25.5% as lockdown erodes demand
By Rajesh Kumar SinghCoal India Ltd.’s shipments in April slumped 25.5% from a year earlier after more than a month-long nationwide lockdown halted economic activity, eroding demand for India’s most dominant energy source. Shipments dropped to 39.1 million tons in the month, the Kolkata-based miner said in a filing late Friday. Output declined 10.9% to 40.4 million tons. Global coal demand is heading for its biggest annual drop since World War II with burning the fuel to make electricity becoming unprofitable and socially untenable in several countries. The pandemic has only served to hasten its demise. The lockdown in India has shut factories and offices slashing electricity demand by about a quarter, affecting the use of coal and causing inventories to swell to record levels.z India extended the stay-at-home restrictions for most parts of the country for another two weeks starting May 4. “Coal India’s output is expected to remain muted until demand starts picking up,” Rupesh Sankhe, an analyst at Elara Capital India Pvt. in Mumbai, said before the company reported the data. “It will probably look at new customers, especially those that depend on imported coal, to shore up shipments.” Despite the demand for the fuel crashing, the miner has set a higher output and shipments target for the fiscal year that began April 1 on expectations of a revival after the lockdown is lifted, coal minister Pralhad Joshi said last week.
2 May 07:49 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/news/coal-india-april-shipments-fall-25-5-as-lockdown-erodes-demand/articleshow/75503106.cmsRating: 0.30
Coal India April Shipments Fall 25.5% as Lockdown Erodes Demand
(Bloomberg) — Coal India Ltd.’s shipments in April slumped 25.5% from a year earlier after more than a month-long nationwide lockdown halted economic activity, eroding demand for India’s most dominant energy source. Shipments dropped to 39.1 million tons in the month, the Kolkata-based miner said in a filing late Friday. Output declined 10.9% to 40.4 million tons. Global coal demand is heading for its biggest annual drop since World War II with burning the fuel to make electricity becoming unprofitable and socially untenable in several countries. The pandemic has only served to hasten its demise. The lockdown in India has shut factories and offices slashing electricity demand by about a quarter, affecting the use of coal and causing inventories to swell to record levels.z India extended the stay-at-home restrictions for most parts of the country for another two weeks starting May 4. “Coal India’s output is expected to remain muted until demand starts picking up,” Rupesh Sankhe, an analyst at Elara Capital India Pvt. in Mumbai, said before the company reported the data. “It will probably look at new customers, especially those that depend on imported coal, to shore up shipments.” Despite the demand for the fuel crashing, the miner has set a higher output and shipments target for the fiscal year that began April 1 on expectations of a revival after the lockdown is lifted, coal minister Pralhad Joshi said last week. ©2020 Bloomberg L.P. Bloomberg.com
2 May 05:07 • Financial Post • https://business.financialpost.com/pmn/business-pmn/coal-india-april-shipments-fall-25-5-as-lockdown-erodes-demandRating: 0.94
Steel output slumps 13% in March due to Covid-19, steepest fall in 8 years
The country’s steel output tumbled 13 per cent in March, its steepest fall during the past eight years. In the same month of last year, steel production had grown by 6.3 per cent. A study by CARE Ratings attributed the fall in steel production to the nationwide lockdown imposed in March this year to curb the spread of the Covid-19 pandemic. The lockdown threw economic activity off kilter, leading to a production halt in most industries absorbing steel, primarily automobiles and construction. However, for the whole of FY20, steel output moved up by 4.2 per cent, registering the best performance among eight core sectors, the others being coal, crude oil, natural gas, refinery products, fertilisers, cement and electricity. However, there has been sustained decline in the steel production since FY17 as muted construction activities on account of delayed monsoons, high real estate inventories and slowdown in the automobile sector lowering demand for steel led to lower production in this segment. The lockdown had a profound impact on coal production, which contracted for the first time in eight years. In FY20, production of coal declined marginally by 0.5 per cent as against 7.4 per cent growth achieved in FY19. “Coal production remained low during the first eight months of FY20 due to the extended rainfall and labour strikes at one of the largest coal mining companies in the country. Post the withdrawal of monsoon, the production picked up having grown between 6-11 per cent during December 2019 to February 2020 before moderating in March 2020”, read the report from CARE Ratings. Quoting figures from the Office of the Economic Advisor, Government of India, the report said crude oil production tanked for the eighth successive year in 2019-20. However, the contraction of 5.9 per cent was the sharpest for the fuel commodity in the past eight years as loss of output in old and ageing fields weighed on overall production during the year. In addition, sustained decline in the crude oil prices and high inventories globally have weighed on the domestic production during the year. Natural gas output after witnessing two previous years of growth shrunk 5.7 per cent due to depreciating output in old and ageing fields. After registering a healthy double-digit growth of 13.3 per cent in FY19, cement production was down 0.8 per cent in FY20. Weakness in housing demand, prolonged rains in many parts of the country and decline in demand from the infrastructure segment due to lack of funding and halting/ temporary stoppage of state projects following change in government post state elections has affected the production of cement in the domestic markets. “The coronavirus-led lockdown which has brought industrial activities to a near standstill in whole April 2020. Despite some ease in industrial activities has been permitted by the government post April 20th, the production activities have remained muted with labour shortages and other issues. As result, in April 2020 as well, we may see a further contraction in eight core sectors and in the industrial output,” the report noted.
2 May 12:07 • Business-Standard • https://www.business-standard.com/article/companies/steel-output-slumps-13-in-march-due-to-covid-19-steepest-fall-in-8-years-120050200759_1.htmlRating: 0.30
Coal India reports 25.5% fall in April shipments as demand weakens during lockdown
Shipments declined to 39.1 million tonne in April, said the Kolkata-based firm on Friday. In April last year, shipments stood at 52.41 million tonne State-run PSU Coal India logged a 25.5% fall in shipments for April as a month-long nationwide lockdown hit economic activity, reducing demand for the country's most dominant energy source. Shipments declined to 39.1 million tonne in April, said the Kolkata-based firm on Friday. In April last year, shipments stood at 52.41 million tonne. Output fell 10.9% to 40.38 million tonne last month compared to 45.30 million tonne in April 2019. Annual demand for coal is seen falling the most since World War II with burning the fuel to make electricity becoming unprofitable and socially untenable in several countries. PM Modi discusses second economic stimulus package with FM Sitharaman, Home Minister Amit Shah In India, nationwide lockdown has led to closing of factories and offices leading to a fall in electricity demand by 25%. Modi government, on May 1, extended the lockdown by another two weeks in the wake of rising cases of novel coronavirus in the country. The third stage of lockdown will start on May 4 and end on May 17. In January this year, Coal India reported the first decline in annual shipments in at least six years on falling demand from power producers. Shipments declined 3.8 per cent in 2019 from a year ago to 580.8 million tonnes, according to Bloomberg data. Production fell 2.2 per cent to 582.8 million tonne, the data showed. Coal India produced 602.14 million tonnes (MT) of coal in FY 2019-20, missing the target of 660 MT for the year. Coronavirus lockdown 3.0: Women Jan Dhan account holders to get second Rs 500 instalment from May 4 "The company closed the fiscal 2019-20 with an annual coal production of 602.14 MT," the PSU said. Coal India recorded an all-time high production of 84.36 MT in March 2020, posting 6.5 per cent growth as compared to same month a year ago. By producing 3.85 MT of coal on March 30, CIL set up a new record for the highest ever production in a day since its inception. By Aseem Thapliyal
2 May 12:42 • Business Today • https://www.businesstoday.in/current/corporate/coal-india-april-shipments-fall-demand-weakens-lockdown/story/402695.htmlRating: 2.10
ICICI Lombard Q4 results: Net profit rises 23.8%, premium income drops
2 May 14:05
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ICICI Lombard Q4 results: Net profit rises 23.8%, premium income drops
Mumbai: ICICI Lombard has posted a 23.8 percent rise in its March quarter profits at Rs 281.93 crore due to a reduction in underwriting losses even as the private insurer’s premium income dropped both for the quarter and full financial year. The underwriting loss reduced to Rs 29.42 crore in Q4FY20 as compared to Rs 49.70 crore in the year-ago period. Gross premium income of the company for the quarter stood at Rs.3181 crore as against Rs.3485 crore in the same period last year mainly on account of loss of crop insurance business. Excluding crop insurance, GDPI rose by 2.9 percent YoY to Rs 3,244 crore. Reduction in underwriting losses was due to a conscious call to not write crop business and also due to pricing improvements in segments like fire insurance, said Bhargav Dasgupta, CEO, ICICI Lombard. The company’s MTM investment losses came at Rs.550 crore in the quarter mostly on account of financial market meltdown. The overall investment book at the end of the financial year 2019-20 stood at Rs.26300 crore, the company said. Lombard has subsequently made a provision of Rs.120 crore against diminution in the value of investments. The general insurer's solvency ratio was 217 percent at FY20 as against the minimum regulatory requirement of 150 percent, down from 224% at the end of FY19. The company is not planning on raising any capital in near term even as it had “sufficient headroom” to raise tier 2 capital when required, Dasgupta told reporters at the earnings call. “We are operating in unprecedented times with pandemic spreading across the world and impacting economies and lives,” said Dasgupta. “Over these weeks we have had to rearrange our processes – from claim settlement to channel operators,” adding that the pandemic would likely bring disruptions in the businesses of all general insurers in the ongoing quarter. However, he stopped short of giving an assessment on the extent of losses expected given the uncertain nature of the pandemic. “It will require a brave person to predict that (losses to industry), given how things are changing every second day,” Dasgupta said. The combined ratio – a measure of insurers’ profitability -- stood at 100.4% in FY2020 compared to 98.8% in FY2019 primarily on account of long-term motor policies, change in product-mix and “losses from catastrophic events.” For the reporting quarter it came at 100.1% as against 99% in the corresponding period last year. The Return on Average Equity (ROAE) was 20.8 percent in FY20 compared to 21.3 percent in FY19. ROAE was 18.8 percent in Q4 compared to 17.5 percent in last year period.
2 May 14:05 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/earnings/icici-lombard-q4-results-net-profit-rises-23-8-premium-income-drops/articleshow/75508218.cmsRating: 0.30
ICICI Lombard's pre-tax profit up 7% in Q4 on improved loss ratio
Private sector non-life insurer ICICI Lombard reported a 7.27 per cent growth in pre-tax profit for the quarter ending March 2020 (Q4FY20) at Rs 371 crore. This was largely on account of an improvement in loss ratio across corporate segments such as fire insurance, and the no-loss situation in the crop insurance business as it generally shied away from the segment. The insurer reported a net profit of Rs 282 crore in Q4FY20 compared to Rs 228 crore, registering a growth of 23.8 per cent on account of lower tax outgo for the quarter at Rs 88.7 crore (Rs 118 crore in Q4FY19). The company's underwriting losses narrowed down to Rs 29.42 crore in Q4FY20, from Rs 49.70 crore a year ago. ICICI Lombard also reported lower underwriting losses for the full year (FY20) at Rs 105.15 crore compared to Rs 169.65 crore in FY19. The combined ratio of the company, a measure of profitability of non-life insurers, stood at 100.1 per cent in Q4FY20, compared to 99 per cent in Q4FY19. A combined ratio of below 100 indicates that insurer is making underwriting profits. The gross premium earned by the company was down eight per cent, at Rs 3,181 crore in Q4FY20, mainly due to a decline in crop insurance business. The management said it will be cautious with crop insurance business in FY21 as well. In FY20, the premium earned by the company was down 8 per cent to Rs 13,313 crore from Rs 14, 488 crore in FY19. ALSO READ: Buffet's Berkshire Hathaway posts $50 bn loss in coronavirus impact ICICI Lombard made underwriting profits in segments like fire, marine, and group health, while it booked underwriting losses in the motor segment and retail health. Given that the third-party hikes for FY21 have been put on hold by the insurance regulator because of the covid-19 disruption, the loss ratios in the segment may shoot up in the future if insurers resort to heavy discounting in the own damage segment. Also, with social distancing being the new norm, the use of private vehicles may see rise and could result in a higher number of accidents and, therefore, more claims for insurers. In the light of the covid-19 disruption, the company has assessed and provided for impairment of Rs 119 crore for the quarter ended March 31, 2020 and Rs 120 crore for the year ended March 31, 2020 on investment assets as per its policy. The company has maintained a healthy solvency ratio at 2.17x as of March 31, 2020 as against 2.18x at December 31, 2019 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.24x at March 31, 2019. It did not declare any dividend at end of the March quarter as the insurance regulator had instructed the companies to take a conscious call on the dividend payment to conserve capital in light of the current situation.
2 May 14:30 • Business-Standard • https://www.business-standard.com/article/companies/icici-lombard-s-pre-tax-profit-up-7-in-q4-on-improved-loss-ratio-120050201017_1.htmlRating: 0.30
ICICI Lombard Q4 net rises 24%
Private sector general insurance company ICICI Lombard reported 23.8% growth in net profit to ₹282 crore for the quarter ended March 31, as compared to ₹228 crore reported during the same period of the previous year, mainly due to lower underwriting losses. The gross Direct Premium Income (GDPI) of the insurer was ₹3,181 crore in fourth quarter as compared to ₹3,485 crore in Q4 FY2019. Excluding crop segment, GDPI of the company increased to ₹3,244 crore in Q4 FY2020 compared to ₹3,153 crore in Q4 FY2019, registering a growth of 2.9%. The industry growth (excluding crop segment) for Q4 FY2020 was 4.3%, the insurer said. The underwriting loss reduced to ₹29.42 crore in Q4FY20 as compared to ₹49.70 crore in same period the previous year. The insurer said lower underwriting losses were due to the decision of not to write crop insurance business and also because of better pricing in fire insurance. “Combined ratio stood at 100.1% in Q4 FY2020 compared to 99.0% in Q4 FY2019,” the insurer said. Combined ratio below 100% indicates that an insurer is posting underwriting profits. “Combined ratio stood at 100.4% in FY2020 compared to 98.8% in FY2019 primarily on account of long-term motor policies, change in product-mix and losses from catastrophic events,” ICICI Lombard said. The solvency ratio of the insurer was 217% at March 31, 2020, as compared to the minimum regulatory requirement of 150%.
2 May 16:27 • The Hindu • https://www.thehindu.com/business/icici-lombard-q4-net-rises-24/article31490810.eceRating: 0.30
ICICI Lombard General Insurance Q4 net profit up 23.8%
Private general insurer ICICI Lombard General Insurance posted a 23.8 percent year-on-year (YoY) rise in its March quarter (Q4) net profit at Rs 281.93 crore due to a reduction in underwriting losses. The underwriting loss reduced to Rs 29.42 crore in Q4FY20 as compared to Rs 49.70 crore in the year-ago period. Bhargav Dasgupta, MD & CEO, ICICI Lombard General Insurance said that the reduction in underwriting losses was due to a conscious call to not write crop business and also due to pricing improvements in segments like fire insurance. He added that the company will continue to stay conscious as far as the crop insurance segment is concerned. As far as Coronavirus (COVID-19) is concerned, Dasgupta said that it is not a balance sheet risk right now since health insurance penetration is low. "Losses could rise in unoccupied properties since there is nobody looking after the premises. When businesses restart, claims may come up," he added. ICICI Lombard took an impairment hit of Rs 120 crore in Q4. The mark-to-market losses in the equity book is Rs 550 crore at end of March 31, 2020. However, the overall net investment income rose by 33.6 percent YoY to Rs 418.37 crore in Q4FY20. Gross direct premium income (GDPI) of the company stood at Rs 3,181 crore for Q4 compared to Rs 3,485 crore a year ago. Excluding crop insurance, GDPI rose by 2.9 percent YoY to Rs 3,244 crore. All business segments except retail health and motor insurance posted an underwriting profit for Q4. Dasgupta said that motor insurance segment losses were higher due to the pricing competition in the own-damage segment. Underwriting loss in the motor segment stood at Rs 95.45 crore for Q4FY20 compared to loss of Rs 155.48 crore in the year-ago period. The combined ratio stood at 100.1 percent in Q4FY20 compared to 99 percent in Q4. A combined ratio below 100 percent indicates that an insurer is posting underwriting profits. The Return on Average Equity (ROAE) was 20.8 percent in FY20 compared to 21.3 percent in FY19. ROAE was 18.8 percent in Q4FY20 compared to 17.5 percent in Q4FY19. ICICI Lombard's solvency ratio was 217 percent at March 31, 2020 as against the minimum regulatory requirement of 150 percent. For the full year (FY20), the insurer's GDPI saw an 8.1 percent YoY decline to Rs 13,313 crore. Excluding the crop segment, ICICI Lombard's GDPI rose by 10.5 percent YoY to Rs 13,302 crore.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/business/companies/icici-lombard-general-insurance-q4-net-profit-up-23-8-5214901.htmlRating: 0.30
RBI reviews measures to ease financial stress
3 May 07:09
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RBI reviews measures to ease financial stress
New Delhi: Reserve Bank of India Governor Shaktikanta Das on Saturday held a meeting with the heads of banks and reviewed the economic situation and implementation of various measures announced by it to reduce stress in the financial system amid the COVID-19 crisis. The meeting, which happened in two separate sessions through video conference, saw participation of managing directors and CEOs of major public and private sector banks, the RBI said in a statement after the meeting. In his opening remarks, the governor appreciated the efforts of banks in ensuring normal to near normal operations during the lockdown period. During the meeting, among other matters, review of the current economic situation and stability of the financial sector among other things were discussed. Credit flows to different sectors of the economy, including liquidity to non-banking financial companies, microfinance institutions, housing finance companies, mutual funds, etc and post lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs were also deliberated. Implementation of three months moratorium on repayment of loan instalments announced by the RBI was also reviewed during the meeting. The Supreme Court earlier this week directed the RBI to ensure that its March 27 guidelines directing lending institutions to allow a three-month moratorium to all borrowers is implemented in letter and spirit. Monitoring of overseas branches of banks in view of the slowdown in economies across the globe was discussed, it added. The Reserve Bank has announced several steps to ease the pressure being faced by borrowers, lenders and other entities including mutual funds and has promised to take more initiatives to deal with the developing situation. The RBI has injected funds within the system towards lending. The reverse repo rate cut will discourage banks from parking cash with the RBI and encourage them to lend to the economy. The Indian economy may be headed for a rare quarterly contraction during April-June as economic activities have come to a halt due to the coronavirus lockdown. The government had earlier unveiled a Rs 1.7 lakh crore package of free foodgrains and cash doles to the poor to deal with the challenges posed by the outbreak of COVID-19 pandemic.
3 May 07:09 • Deccan Chronicle • https://www.deccanchronicle.com/business/economy/030520/rbi-reviews-measures-to-ease-financial-stress.htmlRating: 1.64
RBI Governor stresses on need to step up credit flow
HYDERABAD: Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday reiterated the need to improve credit flow, particularly extending working capital to MSMEs besides implementing the 3-month moratorium in toto. Interacting with the chiefs of major public and private sector banks via a video conference on Saturday, Das acknowledged the banking officials’ contribution during the lockdown and discussed the current economic situation in the country. Reviewing the current situation, he underscored the need to step up credit flow to different sectors including non-banking financial companies (NBFCs), micro finance institutions, housing finance firms and mutual funds. Last week, the central bank even opened a Rs 50,000 crore special liquidity window to enable mutual fund houses to tide over the crisis. However, the response has been lacklustre with banks borrowing a mere Rs 2,000 crore, implying that the crisis among mutual funds isn’t as severe. Despite RBI reducing the reverse repo rate to 3.25 per cent discouraging banks from sitting on cash, they continued to park suplus funds with the central bank, and as much as Rs 7 lakh crore is parked under the reverse repo window. Some of the other topics discussed during the meeting included post lockdown credit flows including provision of working capital with special focus on credit flows to small businesses, implementation of three months moratorium on repayment of loan instalments announced by the RBI, monitoring of overseas branches of banks in view of the slowdown in economies across the globe and stability of the financial sector, the central bank said in a statement.
3 May 11:19 • The New Indian Express • https://www.newindianexpress.com/business/2020/may/03/rbi-governor-stresses-on-need-to-step-up-credit-flow--2138399.htmlRating: 2.04
RBI Governor takes up credit flow issue with public, private bank chiefs
The Reserve Bank of India (RBI) on Saturday took up the issue of improving credit flow to various sectors of the economy, including non-banking financial companies (NBFCs) and micro, small and medium enterprises (MSMEs) with the chiefs of major private and public sector banks. However, banks said they were looking for a credit guarantee support from the government, while extending loans to NBFCs and also proposed that a decision on extending the three-month moratorium on loan repayments can be taken at the end of May. The RBI review, called by Governor Shaktikanta Das, has come at a time when non-food credit has plummeted by Rs 33,872 crore to Rs 102.8 lakh crore during the fortnight ended April 10 and the government extended the lockdown by another two weeks to May 17. The meeting reviewed the current economic situation and credit flows to different sectors of the economy, including liquidity to NBFCs, micro finance institutions, housing finance companies and mutual funds, the RBI said. The meeting, conducted through video conference, also took up post-lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs and implementation of three months’ moratorium on repayment of loan instalments announced by the RBI. Explained With many sectors in the doldrums due to the lockdown, banks are expecting bad loans to rise after June when the moratorium period ends. The extension of moratorium and a government guarantee scheme will give more comfort to the banks which have turned risk averse now. While banks had extended the loan moratorium to their customers, they have not extended the same facility to NBFCs and MFIs, which borrow from banks. On extending government guarantees to loans to MSMEs and NBFCs, the CEO of a nationalised bank said, “In many countries, the government stepped in and they are giving guarantees particularly for the loans or the incremental credit even to the MSME sector.” This means the liability will be contingent in the books of the government and banks can leverage those guarantees. Banks say it can be a good model to help out borrowers, particularly MSMEs, it’s not clear whether the government is keen on such a proposal. On the poor credit flow to various sectors, a bank official said, “Unless the economic activity picks up, the demand for credit isn’t likely to pick up and the lack of credit growth is not in my view currently because of any risk aversion.” Though many PSU banks have come out with Covid-19 loan schemes for MSMEs, credit flow has not picked up to the desired levels. The RBI has conducted long-term repo operations (LTRO) for banks at the repo rate of 4.40 per cent, but banks are preferring better rated corporates while ignoring the claims of small units and NBFCs. On extending the moratorium beyond May 31, he said, “Let’s wait till May 31 and then see that what is the demand or what is the situation and depending upon the situation on the ground, I think these are the things which the RBI can take a view and take a calibrated approach. I think the next view probably will be taken after May 31.” As per the RBI, the Governor “appreciated the efforts of banks in ensuring normal to near normal” operations during the lockdown … Monitoring of overseas branches of banks in view of the slowdown in economies across the globe and stability of the financial sector were discussed. Bank deposits rise on outflows from debt mutual fund segment While banks witnessed a contraction in credit outstandings, deposits increased during the fortnight ended April 10. Deposits rose by Rs 1,47,435 crore to Rs 137.1 lakh crore, largely due to the outflows from the debt mutual fund segment. However demand deposits (savings accounts) saw an outflow of Rs 1.35 lakh crore, while time deposits (FDs) surged by Rs 2.82 lakh crore. ENS
3 May 02:11 • The Indian Express • https://indianexpress.com/article/business/economy/rbi-governor-takes-up-credit-flow-issue-with-public-private-bank-chiefs-6390978/Rating: 0.30
RBI Governor meets MD of banks; reviews implementation of various measures to reduce stress in financial system
Reserve Bank of India Governor Shaktikanta Das on Saturday held a meeting with the heads of banks and reviewed the economic situation and implementation of various measures announced by it to reduce stress in the financial system amid the COVID-19 crisis. The meeting, which happened in two separate sessions through video conference, saw participation of managing directors and CEOs of major public and private sector banks, the RBI said in a statement after the meeting. In his opening remarks, the governor appreciated the efforts of banks in ensuring normal to near normal operations during the lockdown period. Follow live updates on the coronavirus pandemic here During the meeting, among other matters, review of the current economic situation and stability of the financial sector among other things were discussed. Credit flows to different sectors of the economy, including liquidity to non-banking financial companies, microfinance institutions, housing finance companies, mutual funds, etc and post lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs were also deliberated. Implementation of three months moratorium on repayment of loan instalments announced by the RBI was also reviewed during the meeting. The Supreme Court earlier this week directed the RBI to ensure that its March 27 guidelines directing lending institutions to allow a three-month moratorium to all borrowers is implemented in letter and spirit. Monitoring of overseas branches of banks in view of the slowdown in economies across the globe was discussed, it added. The Reserve Bank has announced several steps to ease the pressure being faced by borrowers, lenders and other entities including mutual funds and has promised to take more initiatives to deal with the developing situation. The RBI has injected funds totalling 3.2 per cent of GDP into the economy since the February 2020 monetary policy meeting to tackle the liquidity situation. The RBI has been prompting banks to push lending by cutting its key policy rate by 75 basis points to an 11-year low of 4.4 per cent. Besides, it also slashed reverse repurchase rate, a tool to control the money supply, to 3.75 per cent to encourage banks to deploy surplus funds within the system towards lending. The reverse repo rate cut will discourage banks from parking cash with the RBI and encourage them to lend to the economy. The Indian economy may be headed for a rare quarterly contraction during April-June as economic activities have come to a halt due to the coronavirus lockdown. The government had earlier unveiled a Rs 1.7 lakh crore package of free foodgrains and cash doles to the poor to deal with the challenges posed by the outbreak of COVID-19 pandemic.
2 May 18:20 • Deccan Herald • https://www.deccanherald.com/business/business-news/rbi-governor-meets-md-of-banks-reviews-implementation-of-various-measures-to-reduce-stress-in-financial-system-832722.htmlRating: 2.25
RBI Guv Shaktikanta Das discusses credit flow to MFs, NBFCs, MFIs with bank CEOs, MDs
Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday held meetings with heads of domestic banks on the economic situation and credit flow to different sectors of the economy, among other issues, the central bank said in a release . “The governor held meetings with MDs/CEOs of major public and private sector banks today in two separate sessions through video conference. The meetings were attended by Deputy Governors and other senior officers of RBI,” it said. Das discussed credit flows to different sectors of the economy, including availability of liquidity to NBFCs, microfinance institutions (MFIs), housing finance companies (HFCs) and mutual funds. NBFCs and MFIs have been demanding a moratorium on their bank obligations as they have been forced to give similar leeways to their lenders. They have been dealing with lack of liquidity, as banks and mutual funds have become wary of lending to them for fear of defaults. Independent estimates peg the funding gap for NBFCs at Rs 60,000 crore despite RBI’s efforts to make funds available at cheaper rates. Das also reviewed the current economic situation, post-lockdown credit flow, including provisions for working capital, with special focus on credit flows to MSMEs and implementation of the three-month moratorium on repayment of loan installment announced by RBI. Medium and small enterprises (MSMEs) have been the worst hit as the extended lockdown has left them starved of cash. Industries have been waiting for a stimulus package from the government, which is yet to see the day of the light. The RBI Governor also deliberated on monitoring of overseas branches of banks in view of the slowdown in economies across the globe and stability of the financial sector during the meetings.
2 May 14:24 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/news/rbi-guv-shaktikanta-das-discusses-credit-flow-to-mfs-nbfcs-mfis-with-bank-ceos-mds/articleshow/75508620.cmsRating: 0.30
RBI Governor Meets Bank Chiefs; Reviews Implementation Of Various Measures
Bookmark Reserve Bank of India Governor Shaktikanta Das on Saturday held a meeting with the heads of banks and reviewed the economic situation and implementation of various measures announced by it to reduce stress in the financial system amid the Covid-19 crisis. The meeting, which happened in two separate sessions through video conference, saw participation of Managing Directors and CEOs of major public and private sector banks, the RBI said in a statement after the meeting. In his opening remarks, the governor appreciated the efforts of banks in ensuring normal to near normal operations during the lockdown period. During the meeting, among other matters, review of the current economic situation and stability of the financial sector among other things were discussed. Credit flows to different sectors of the economy, including liquidity to Non-Banking Financial Companies, Microfinance Institutions, Housing Finance Companies, Mutual Funds, etc. and post lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs were also deliberated. Implementation of three months moratorium on repayment of loan instalments announced by the RBI was also reviewed during the meeting. The Supreme Court earlier this week directed the RBI to ensure that its March 27 guidelines directing lending institutions to allow a three-month moratorium to all borrowers is implemented in letter and spirit. Monitoring of overseas branches of banks in view of the slowdown in economies across the globe was discussed, it added. The Reserve Bank has announced several steps to ease the pressure being faced by borrowers, lenders and other entities including mutual funds and has promised to take more initiatives to deal with the developing situation. The RBI has injected funds totalling 3.2 percent of GDP into the economy since the February 2020 monetary policy meeting to tackle the liquidity situation. The RBI has been prompting banks to push lending by cutting its key policy rate by 75 basis points to an 11-year low of 4.4 percent. Besides, it also slashed reverse repurchase rate, a tool to control the money supply, to 3.75 percent to encourage banks to deploy surplus funds within the system towards lending. The reverse repo rate cut will discourage banks from parking cash with the RBI and encourage them to lend to the economy. The Indian economy may be headed for a rare quarterly contraction during April-June as economic activities have come to a halt due to the coronavirus lockdown. The government had earlier unveiled a Rs 1.7 lakh crore package of free foodgrains and cash doles to the poor to deal with the challenges posed by the outbreak of Covid-19 pandemic. Missing BloombergQuint's WhatsApp service? Join our Telegram channel or activate Website Notifications.
2 May 13:26 • Bloomberg | Quint • https://www.bloombergquint.com/business/rbi-governor-meets-md-of-banks-reviews-implementation-of-various-measuresRating: 1.94
RBI Governor Shaktikanta Das meets heads of banks, reviews economic situation
Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday held a meeting with the heads of banks and reviewed the economic situation and implementation of various measures announced by it to reduce stress in the financial system amid the coronavirus (COVID-19) crisis. The meeting, which happened in two separate sessions through video-conference, saw participation of managing directors and CEOs of major public- and private-sector banks, the RBI said in a statement after the meeting. In his opening remarks, the governor appreciated the efforts of banks in ensuring normal to near normal operations during the lockdown period. State-wise tracker for COVID-19 cases, deaths and testing, and a map of confirmed cases in India During the meeting, among other matters, review of the current economic situation and stability of the financial sector among other things were discussed. Credit flows to various sectors of the economy, including liquidity to non-banking financial companies, micro-finance institutions, housing finance companies, mutual funds, etc., and post-lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs were also deliberated. Implementation of three months moratorium on repayment of loan instalments announced by the RBI was also reviewed during the meeting. The Supreme Court earlier this week directed the RBI to ensure that its March 27 guidelines directing lending institutions to allow a three-month moratorium to all borrowers is implemented in letter and spirit. Monitoring of overseas branches of banks in view of the slowdown in economies across the globe was discussed, it added. The Reserve Bank has announced several steps to ease the pressure being faced by borrowers, lenders and other entities including mutual funds and has promised to take more initiatives to deal with the developing situation. The economic fallout of COVID-19 The RBI has injected funds totalling 3.2% of GDP into the economy since the February 2020 monetary policy meeting to tackle the liquidity situation. The RBI has been prompting banks to push lending by cutting its key policy rate by 75 basis points to an 11-year low of 4.4%. Besides, it also slashed reverse repurchase rate, a tool to control the money supply, to 3.75% to encourage banks to deploy surplus funds within the system towards lending. The reverse repo rate cut will discourage banks from parking cash with the RBI and encourage them to lend to the economy. The Indian economy may be headed for a rare quarterly contraction during April-June as economic activities have come to a halt due to the coronavirus lockdown. The government had earlier unveiled a ₹1.7 lakh crore package of free foodgrains and cash doles to the poor to deal with the challenges posed by the outbreak of COVID-19 pandemic.
2 May 13:17 • The Hindu • https://www.thehindu.com/business/rbi-governor-shaktikanta-das-meets-heads-of-banks-reviews-economic-situation/article31489811.eceRating: 0.30
RBI governor Shashikanta Das speaks to heads of banks, discusses credit flow
Reserve Bank of India (RBI) Governor, Shaktikanta Das, talked to the heads of banks via video conferencing on Saturday, May 2 and discussed the current economic situation in the country. The discussion was held a day after the Home Ministry extended nationwide lockdown for 2 more weeks starting from May 4 to curb the spread of coronavirus. In the meeting, RBI governor praised bankers for countinously working during the lockdown and giving their best to control the deteriorating economy. Shashikant Das said banks have played a big role in ensuring normal to near normal operations during the coronavirus-induced lockdown. The RBI chief discussed credit flows with banks to different sectors of the economy, including non-banking financial companies (NBFCs), microfinance institutions, housing finance companies and mutual funds. What will be the estimated credit flows post-lockdown, what special provisions to focus on credit flows to micro, small and medium enterprises (MSMEs) were son main points discussion. The implementation of the three-month moratorium on repayment of loan instalments was also discussed so that a stability can be brought in the financial sector and Indian economy hit badly by the coronavirus lockdown. Meanwhile, the Ministry of Health and Family Welfare (MoHFW) reported over 37,000 cases in India, off which, over 1,200 people have lost their lives. A day ago, the Centre announced an extension in lockdown for 2 more weeks starting from May 4. The latest notification added that some ease in restrictions will be give for green zones, districts with no coronavirus case.
2 May 13:06 • newsx.com • https://www.newsx.com/national/rbi-governor-shashikanta-das-speaks-to-heads-of-banks-discusses-credit-flow.htmlRating: 0.74
RBI Governor holds meeting with bank chiefs, discusses credit flow, stability
New Delhi, May 02: Reserve Bank of India Governor Shaktikanta Das on Saturday held meeting with heads of major public and private sector lenders and reviewed the current economic situation in the country due to coronavirus outbreak. The crucial meet comes a day after the government extended a 40-day nationwide lockdown to curb the spread of the coronavirus (COVID-19) pandemic. The governor appreciated the efforts of banks in ensuring normal to near normal operations during the lockdown period. In the meet, the RBI chief also discussed the credit flows to different sectors of the economy, including non-banking financial companies (NBFCs), microfinance institutions, housing finance companies and mutual funds. Post-lockdown credit flows including provisions on working capital, implementation of three months moratorium on repayment of loan installments, monitoring of overseas branches of bank in view of the slowdown in economies across the globe, stability of the financial sector were also part of the discussion. The talks were held in two sessions via video conferencing, and were attended by the central bank's deputy governors and other senior officers. The government on Friday announced that India will now be under lockdown till May 17 with a complete ban on air travel, trains and inter-state road transport for the general public while educational institutions, theatres, malls, hotels and bars remain shut. The Centre has allowed two more activities in the orange zones. Taxis and cab aggregators are permitted, with one driver and two passengers only. Inter-district movement of individuals and vehicles is allowed, only for permitted activities, with maximum two passengers, besides the driver, in four wheeler vehicles. The Centre said that all other activities are allowed in the Orange Zones, without any restrictions. However, States/ UTs based on their assessment and priorities, may choose to permit a lesser number of activities, the Centre also said.
2 May 12:52 • Oneindia • https://www.oneindia.com/india/rbi-governor-holds-meeting-with-bank-chiefs-discusses-credit-flow-stability-3081792.htmlRating: 0.30
RBI governor discusses NBFC liquidity, moratorium with bank chiefs
Reserve Bank of India (RBI) governor Shaktikanta Das separately met on Saturday chiefs of public and private sector banks to review India's economy, liquidity of non-bank financial companies (NBFC) and a moratorium for lenders during the coronavirus pandemic. Deputy governors and other senior officers of the central bank attended the video meeting, too, said the RBI in a statement on its website. Das took stock of “credit flows to different sectors of the economy, including liquidity to Non-Banking Financial Companies, Micro Finance Institutions, Housing Finance Companies, Mutual Funds, etc.” He praised banks for their work during a national lockdown to contain the coronavirus, and stressed on ensuring credit “with special focus on credit flows to MSMEs (micro, small and medium enterprises),” the statement said. ALSO READ: Coronavirus LIVE: Confirmed cases inches close to 38000, death toll at 1223 Das enquired about the implementation of a three-month moratorium the central bank has announced for repayment of loan installments. The Supreme Court told the RBI on Friday to ensure that banks pass on the moratorium benefits to the customers properly. The central bank told banks to monitor their overseas branches because of the slowdown in economies across the globe. The meeting also saw discussions around the stability of the financial sector, the RBI statement said. Early this week, finance ministry reviewed support including emergency credit line extended by large public sector banks to units impacted by Covid-19 triggered lockdown. State Bank of India and Bank of Baroda have together sanctioned close to Rs 10,000 crore as an immediate credit assistance to affected units. Banks have built internal capacities for assisting companies including MSMEs. The feedback from interactions is expected to act as input for policies that are in works. However, it was not clear when the package would be finalized, officials said. Credit growth in almost every sector decelerated in March 2020 from a a year ago as the country went into a nationwide lockdown due to the coronavirus (Covid-19) crisis, data released from the RBI showed. ALSO READ: Covid-19: Low testing in India hints at lockdown extension beyond May 17 On a year-on-year basis, credit growth in the banking system decelerated to 7.6 per cent in March 2020 from 12.3 per cent in March 2019. Credit growth to agriculture and allied activities decelerated to 5.2 per cent from 7.9 per cent in March 2019, and credit growth in industry decelerated to 1.4 per cent in March 2020 from 6.9 per cent a year ago. Within industry, credit growth accelerated in beverage & tobacco, mining & quarrying, petroleum, coal product & nuclear fuels, cement & cement products and vehicles, vehicle parts & transport equipment. However, credit growth contracted in chemical & chemical products, all engineering, glass & glassware, gems & jewellery and infrastructure decelerated. The services sector contracted to 8.5 per cent in March 2020 from 17.8 per cent a year ago. Growth in personal loans decelerated marginally to 15.7 per cent in March 2020 vis-à-vis 16.4 per cent in the same period last year.
2 May 12:53 • Business-Standard • https://www.business-standard.com/article/finance/rbi-governor-discusses-nbfc-liquidity-moratorium-with-bank-chiefs-120050200821_1.htmlRating: 0.30
Coronavirus: RBI Governor praises banks for near normal operations in lockdown, reviews economic situation
The meetings were attended by deputy governors and other senior officers of RBI The Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday appreciated the banks for ensuring normal to near normal operations during coronavirus lockdown and also reviewed the current economic situation. The RBI Governor held meetings with the heads of the major public and private sector banks earlier today in two separate sessions through video conference, the central bank said in a statement. The meetings were attended by deputy governors and other senior officers of RBI. Apart from reviewing the economy, the meeting saw discussion on credit flows to different sectors of the economy, including liquidity to non-banking financial companies (NBFCs), micro finance institutions (MFIs), housing finance companies (HFCs), mutual funds, among others. The RBI Governor also discussed with bank chiefs the post lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs. The implementation of three months moratorium on repayment of loan instalments announced by the RBI and monitoring of overseas branches of banks amid slowdown in global economies were the other issues discussed in the meeting. Meanwhile, the RBI has taken several steps over the weeks to assuage the pressure faced by borrowers, lenders, and other entities such as mutual funds and assured to take more measures to deal with the developing situation. Since the February 2020 monetary policy meeting, the central bank has injected 3.2 per cent of GDP into the economy to tackle the liquidity crisis. Meanwhile, the central government announced the extension of lockdown by 2 more weeks beginning from May 4 but with several relaxations in the green zones. Also read: Coronavirus India Live Updates: Lockdown in red zones! Liquor sale in standalone shops allowed; cases-37,336 Also read: Coronavirus crisis: Donald Trump hints at imposing new tariff on China for mishandling virus outbreak
2 May 12:05 • Business Today • https://www.businesstoday.in/latest/trends/coronavirus-rbi-governor-praises-banks-for-near-normal-operations-in-lockdown-reviews-economic-situation/story/402692.htmlRating: 2.10
RBI Governor meets MD of banks; reviews implementation of various measures
Reserve Bank of India Governor Shaktikanta Das on Saturday held a meeting with the heads of banks and reviewed the economic situation and implementation of various measures announced by it to reduce stress in the financial system amid the COVID-19 crisis. The meeting, which happened in two separate sessions through video conference, saw participation of managing directors and CEOs of major public and private sector banks, the RBI said in a statement after the meeting. In his opening remarks, the governor appreciated the efforts of banks in ensuring normal to near normal operations during the lockdown period. During the meeting, among other matters, review of the current economic situation and stability of the financial sector among other things were discussed. Coronavirus India LIVE Updates Credit flows to different sectors of the economy, including liquidity to non-banking financial companies, microfinance institutions, housing finance companies, mutual funds, etc and post lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs were also deliberated. Implementation of three months moratorium on repayment of loan instalments announced by the RBI was also reviewed during the meeting. The Supreme Court earlier this week directed the RBI to ensure that its March 27 guidelines directing lending institutions to allow a three-month moratorium to all borrowers is implemented in letter and spirit. Monitoring of overseas branches of banks in view of the slowdown in economies across the globe was discussed, it added. The Reserve Bank has announced several steps to ease the pressure being faced by borrowers, lenders and other entities including mutual funds and has promised to take more initiatives to deal with the developing situation. The RBI has injected funds totalling 3.2 percent of GDP into the economy since the February 2020 monetary policy meeting to tackle the liquidity situation. The RBI has been prompting banks to push lending by cutting its key policy rate by 75 basis points to an 11-year low of 4.4 percent. Besides, it also slashed reverse repurchase rate, a tool to control the money supply, to 3.75 percent to encourage banks to deploy surplus funds within the system towards lending. The reverse repo rate cut will discourage banks from parking cash with the RBI and encourage them to lend to the economy. The Indian economy may be headed for a rare quarterly contraction during April-June as economic activities have come to a halt due to the coronavirus lockdown. The government had earlier unveiled a Rs 1.7 lakh crore package of free foodgrains and cash doles to the poor to deal with the challenges posed by the outbreak of COVID-19 pandemic. Follow our full coverage of the coronavirus pandemic here.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/india/rbi-governor-meets-md-of-banks-reviews-implementation-of-various-measures-5215221.htmlRating: 0.30
Americans without bank accounts must wait for federal checks
3 May 23:51
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Americans without bank accounts must wait for federal checks
NEW YORK — As the coronavirus crisis took hold, Akeil Smith’s employer slashed her work as a home health aide to 25 hours per week. Her $15-an-hour salary no longer provided enough to pay her $700 monthly rent, and she had to visit food pantries for groceries. While millions of U.S. workers have already received a quick relief payment from the federal treasury through direct deposit, Smith is among millions of others without traditional bank accounts who must wait weeks for paper checks. When the checks finally arrive, this disproportionately black and Hispanic population often has little choice but to use expensive check-cashing services to access the money. “I live check to check, and right now I need more groceries,” Smith, 35, told The Associated Press as she stood inside Payomatic, a small check-cashing store in a predominantly black Brooklyn neighborhood. In the six weeks since the pandemic shut down much of the U.S. economy, more than 30 million American workers have filed for unemployment insurance. Congress passed a $2.2 trillion economic rescue package. The government in April began sending $1,200 for each individual, $2,400 for each married couple and another $500 for each dependent child to poor and middle-class families across the United States. Wealthier families get either a reduced payout or nothing depending on their income. To help smooth the delivery of the payments, the government launched an online portal for people to provide their banking information for direct deposit. But that system offered nothing to people without savings or checking accounts. A House Ways and Means Committee memo obtained by AP estimated about 5 million paper checks will be issued each week, meaning those most in need could wait many weeks for their payments. In Houston, Ta’Mar Bethune, a 41-year-old mother of four grown children who is raising a grandchild, is likely to wait awhile. As a younger woman, she struggled for years with affording bank account fees until her account was closed. In the 1990s, she also was a victim of identity theft and never fully recovered. More than 20 years later, Bethune still cannot pass a standard background check to open a checking account because the banking system views her as too risky, she said. To get by, she transfers the money she makes as a professional hairdresser and babysitter onto a non-bank debit card. “They charge you an arm and a leg,” she said, citing a monthly fee and a charge for every swipe or withdrawal. “You never get your full money. It’s bad, but I have no other choice.” Bethune receives financial coaching from the Houston Area Urban League, a nonprofit organization helping low- to moderate-income families examine their behaviors around spending and saving. The organization says many families are reluctant to open bank accounts, especially if they have been burned by the system. “Nobody wants to be exploited,” said Carmela Walker, a financial coach for the group. Approximately 8.4 million U.S. households were considered “unbanked” in 2017, meaning that no one in the household had an account, according to the Federal Deposit Insurance Corp. Another 24.2 million households were “underbanked,” meaning they might have a bank account but members of the household also used an alternative financial service for money orders, check cashing, international remittances, payday loans and pawn shop loans, often at high costs. Some of those services have been criticized for being predatory and marketing to black and Hispanic communities, which are disproportionately unbanked. Roughly 17 percent of black households and 14 percent of Hispanic households were without a bank account in 2017, compared with just 3 percent of white households and 2.5 percent of Asian American households, the FDIC said. Banking is a social justice issue with the potential to widen America’s racial wealth gap, said Cy Richardson, vice president of the National Urban League. “Black America’s economic destiny exists on a razor’s edge right now,” Richardson said. Advocates say the federal government should use the pandemic payments as an opportunity to bring more people into the banking system via Bank On accounts, which are FDIC insured, cost $5 or less a month and do not allow overdrafts or charge insufficient-fund fees. The accounts can be used for direct deposit, purchases and paying bills. Otherwise, long lines at check-cashing stores could stretch into the fall and pose dangers to public health. “There’s now a health component to being unbanked — people are going to have to take literal risks with their health, in order to receive and then spend these dollars,” said Jonathan Mintz, CEO of the Cities for Financial Empowerment Fund, which aims to get underserved Americans set up with affordable bank accounts. The opportunity to attract customers with relief payments is not lost on check cashing and payday loan businesses, an $11.2 billion network of storefront locations in cities big and small. In Brooklyn, B&H Check Cashing, in the predominantly Hispanic neighborhood of Bushwick, posts its rates for cashing checks on a wall. A $1,200 check, for example, would cost $26.76 to cash. Essence Gandy, 26, stood in a line of two dozen people that snaked outside a PLS Check Cashers in Brooklyn to cash in loose change at a Coinstar kiosk. Her checking account was closed months ago because she had insufficient funds and was unable to get back in good standing. “I’ve got bills on top of bills,” said Gandy, who also has credit card debts and is behind on payments to a mattress store. She said she hopes to use the federal relief payment to catch up on bills and will likely cash the paper check at PLS. A representative of PLS, which has 300 locations in 12 states, said it has been informing regular customers that stimulus checks can be cashed at their lowest rates.
3 May 23:51 • Las Vegas Review-Journal • https://www.reviewjournal.com/news/nation-and-world/americans-without-bank-accounts-must-wait-for-federal-checks-2020424/Rating: 0.30
Americans without bank accounts must wait for federal checks
NEW YORK (AP) — As the coronavirus crisis took hold, Akeil Smith's employer slashed her work as a home health aide to 25 hours per week. Her $15-an-hour salary no longer provided enough to pay her $700 monthly rent, and she had to visit food pantries for groceries. While millions of U.S. workers have already received a quick relief payment from the federal treasury through direct deposit, Smith is among millions of others without traditional bank accounts who must wait weeks for paper checks. When the checks finally arrive, this disproportionately black and Hispanic population often has little choice but to use expensive check-cashing services to access the money. “I live check to check, and right now I need more groceries,” Smith, 35, told The Associated Press as she stood inside Payomatic, a small check-cashing store in a predominantly black Brooklyn neighborhood. In the six weeks since the pandemic shut down much of the U.S. economy, more than 30 million American workers have filed for unemployment insurance. Congress passed a $2.2 trillion economic rescue package. The government in April began sending $1,200 for each individual, $2,400 for each married couple and another $500 for each dependent child to poor and middle-class families across the United States. Wealthier families get either a reduced payout or nothing depending on their income. To help smooth the delivery of the payments, the government launched an online portal for people to provide their banking information for direct deposit. But that system offered nothing to people without savings or checking accounts. A House Ways and Means Committee memo obtained by the AP estimated about 5 million paper checks will be issued each week, meaning those most in need could wait many weeks for their payments. In Houston, Ta’Mar Bethune, a 41-year-old mother of four grown children who is raising a grandchild, is likely to wait a while. As a younger woman, she struggled for years with affording bank account fees until her account was closed. In the 1990s, she also was a victim of identity theft and never fully recovered. More than 20 years later, Bethune still cannot pass a standard background check to open a checking account because the banking system views her as too risky, she said. To get by, she transfers the money she makes as a professional hairdresser and babysitter onto a non-bank debit card. “They charge you an arm and a leg," she said, citing a monthly fee and a charge for every swipe or withdrawal. “You never get your full money. It’s bad, but I have no other choice.” Bethune receives financial coaching from the Houston Area Urban League, a nonprofit organization helping low- to moderate-income families examine their behaviors around spending and saving. The organization says many families are reluctant to open bank accounts, especially if they have been burned by the system. “Nobody wants to be exploited," said Carmela Walker, a financial coach for the group. Approximately 8.4 million U.S. households were considered “unbanked” in 2017, meaning that no one in the household had an account, according to the Federal Deposit Insurance Corp. Another 24.2 million households were “underbanked,” meaning they might have a bank account but members of the household also used an alternative financial service for money orders, check cashing, international remittances, payday loans and pawn shop loans, often at high costs. Some of those services have been criticized for being predatory and marketing to black and Hispanic communities, which are disproportionately unbanked. Roughly 17% of black households and 14% of Hispanic households were without a bank account in 2017, compared with just 3% of white households and 2.5% of Asian American households, the FDIC said. Banking is a social justice issue with the potential to widen America’s racial wealth gap, said Cy Richardson, vice president of the National Urban League. “Black America’s economic destiny exists on a razor’s edge right now,” Richardson said. Advocates say the federal government should use the pandemic payments as an opportunity to bring more people into the banking system via Bank On accounts, which are FDIC insured, cost $5 or less a month and do not allow overdrafts or charge insufficient-fund fees. The accounts can be used for direct deposit, purchases and paying bills. Otherwise, long lines at check-cashing stores could stretch into the fall and pose dangers to public health. “There’s now a health component to being unbanked — people are going to have to take literal risks with their health, in order to receive and then spend these dollars,” said Jonathan Mintz, CEO of the Cities for Financial Empowerment Fund, which aims to get underserved Americans set up with affordable bank accounts. The opportunity to attract customers with relief payments is not lost on check cashing and payday loan businesses, an $11.2 billion network of storefront locations in cities big and small. In Brooklyn, B&H Check Cashing, in the predominantly Hispanic neighborhood of Bushwick, posts its rates for cashing checks on a wall. A $1,200 check, for example, costs $26.76 to cash. Essence Gandy, 26, stood in a line of two dozen people that snaked outside a PLS Check Cashers in Brooklyn to cash in loose change at a Coinstar kiosk. Her checking account was closed months ago because she had insufficient funds and was unable to get back in good standing. “I’ve got bills on top of bills,” said Gandy, who also has credit card debts and is behind on payments to a mattress store. She said she hopes to use the federal relief payment to catch up on bills and will likely cash the paper check at PLS. A representative of PLS, which has 300 locations in 12 states, said it has been informing regular customers that stimulus checks can be cashed at their lowest rates. ___ Aaron Morrison is a member of The Associated Press’ Race and Ethnicity team. Follow him on Twitter at https://twitter.com/aaronlmorrison.
3 May 18:57 • WVLT • https://www.wvlt.tv/content/news/Americans-without-bank-accounts-must-wait-for-federal-checks-570159001.htmlRating: 0.30
Americans without bank accounts must wait for federal checks
NEW YORK (AP) — As the coronavirus crisis took hold, Akeil Smith’s employer slashed her work as a home health aide to 25 hours per week. Her $15-an-hour salary no longer provided enough to pay her $700 monthly rent, and she had to visit food pantries for groceries. While millions of U.S. workers have already received a quick relief payment from the federal treasury through direct deposit, Smith is among millions of others without traditional bank accounts who must wait weeks for paper checks. When the checks finally arrive, this disproportionately black and Hispanic population often has little choice but to use expensive check-cashing services to access the money. “I live check to check, and right now I need more groceries,” Smith, 35, told The Associated Press as she stood inside Payomatic, a small check-cashing store in a predominantly black Brooklyn neighborhood. In the six weeks since the pandemic shut down much of the U.S. economy, more than 30 million American workers have filed for unemployment insurance. Congress passed a $2.2 trillion economic rescue package. The government in April began sending $1,200 for each individual, $2,400 for each married couple and another $500 for each dependent child to poor and middle-class families across the United States. Wealthier families get either a reduced payout or nothing depending on their income. To help smooth the delivery of the payments, the government launched an online portal for people to provide their banking information for direct deposit. But that system offered nothing to people without savings or checking accounts. A House Ways and Means Committee memo obtained by the AP estimated about 5 million paper checks will be issued each week, meaning those most in need could wait many weeks for their payments. In Houston, Ta’Mar Bethune, a 41-year-old mother of four grown children who is raising a grandchild, is likely to wait a while. As a younger woman, she struggled for years with affording bank account fees until her account was closed. In the 1990s, she also was a victim of identity theft and never fully recovered. More than 20 years later, Bethune still cannot pass a standard background check to open a checking account because the banking system views her as too risky, she said. To get by, she transfers the money she makes as a professional hairdresser and babysitter onto a non-bank debit card. “They charge you an arm and a leg,” she said, citing a monthly fee and a charge for every swipe or withdrawal. “You never get your full money. It’s bad, but I have no other choice.” Bethune receives financial coaching from the Houston Area Urban League, a nonprofit organization helping low- to moderate-income families examine their behaviors around spending and saving. The organization says many families are reluctant to open bank accounts, especially if they have been burned by the system. “Nobody wants to be exploited,” said Carmela Walker, a financial coach for the group. Approximately 8.4 million U.S. households were considered “unbanked” in 2017, meaning that no one in the household had an account, according to the Federal Deposit Insurance Corp. Another 24.2 million households were “underbanked,” meaning they might have a bank account but members of the household also used an alternative financial service for money orders, check cashing, international remittances, payday loans and pawn shop loans, often at high costs. Some of those services have been criticized for being predatory and marketing to black and Hispanic communities, which are disproportionately unbanked. Roughly 17% of black households and 14% of Hispanic households were without a bank account in 2017, compared with just 3% of white households and 2.5% of Asian American households, the FDIC said. Banking is a social justice issue with the potential to widen America’s racial wealth gap, said Cy Richardson, vice president of the National Urban League. “Black America’s economic destiny exists on a razor’s edge right now,” Richardson said. Advocates say the federal government should use the pandemic payments as an opportunity to bring more people into the banking system via Bank On accounts, which are FDIC insured, cost $5 or less a month and do not allow overdrafts or charge insufficient-fund fees. The accounts can be used for direct deposit, purchases and paying bills. Otherwise, long lines at check-cashing stores could stretch into the fall and pose dangers to public health. “There’s now a health component to being unbanked — people are going to have to take literal risks with their health, in order to receive and then spend these dollars,” said Jonathan Mintz, CEO of the Cities for Financial Empowerment Fund, which aims to get underserved Americans set up with affordable bank accounts. The opportunity to attract customers with relief payments is not lost on check cashing and payday loan businesses, an $11.2 billion network of storefront locations in cities big and small. In Brooklyn, B&H Check Cashing, in the predominantly Hispanic neighborhood of Bushwick, posts its rates for cashing checks on a wall. A $1,200 check, for example, would cost $26.76 to cash. Essence Gandy, 26, stood in a line of two dozen people that snaked outside a PLS Check Cashers in Brooklyn to cash in loose change at a Coinstar kiosk. Her checking account was closed months ago because she had insufficient funds and was unable to get back in good standing. “I’ve got bills on top of bills,” said Gandy, who also has credit card debts and is behind on payments to a mattress store. She said she hopes to use the federal relief payment to catch up on bills and will likely cash the paper check at PLS. A representative of PLS, which has 300 locations in 12 states, said it has been informing regular customers that stimulus checks can be cashed at their lowest rates.
3 May 17:57 • WSVN 7News • https://wsvn.com/news/us-world/americans-without-bank-accounts-must-wait-for-federal-checks/Rating: 0.30
Stimulus checks: Americans without bank accounts must wait for federal relief
As the coronavirus crisis took hold, Akeil Smith's employer slashed her work as a home health aide to 25 hours per week. Her $15-an-hour salary no longer provided enough to pay her $700 monthly rent, and she had to visit food pantries for groceries. While millions of U.S. workers have already received a quick relief payment from the federal treasury through direct deposit, Smith is among millions of others without traditional bank accounts who must wait weeks for paper checks. When the checks finally arrive, this disproportionately black and Hispanic population often has little choice but to use expensive check-cashing services to access the money. "I live check to check, and right now I need more groceries," Smith, 35, told The Associated Press as she stood inside Payomatic, a small check-cashing store in a predominantly black Brooklyn neighborhood. In the six weeks since the pandemic shut down much of the U.S. economy, more than 30 million American workers have filed for unemployment insurance. Congress passed a $2.2 trillion economic rescue package. The government in April began sending $1,200 for each individual, $2,400 for each married couple and another $500 for each dependent child to poor and middle-class families across the United States. Wealthier families get either a reduced payout or nothing depending on their income. To help smooth the delivery of the payments, the government launched an online portal for people to provide their banking information for direct deposit. But that system offered nothing to people without savings or checking accounts. A House Ways and Means Committee memo obtained by the AP estimated about 5 million paper checks will be issued each week, meaning those most in need could wait many weeks for their payments. In Houston, Ta'Mar Bethune, a 41-year-old mother of four grown children who is raising a grandchild, is likely to wait a while. As a younger woman, she struggled for years with affording bank account fees until her account was closed. In the 1990s, she also was a victim of identity theft and never fully recovered. More than 20 years later, Bethune still cannot pass a standard background check to open a checking account because the banking system views her as too risky, she said. To get by, she transfers the money she makes as a professional hairdresser and babysitter onto a non-bank debit card. "They charge you an arm and a leg," she said, citing a monthly fee and a charge for every swipe or withdrawal. "You never get your full money. It's bad, but I have no other choice." Bethune receives financial coaching from the Houston Area Urban League, a nonprofit organization helping low- to moderate-income families examine their behaviors around spending and saving. The organization says many families are reluctant to open bank accounts, especially if they have been burned by the system. "Nobody wants to be exploited," said Carmela Walker, a financial coach for the group. Approximately 8.4 million U.S. households were considered "unbanked" in 2017, meaning that no one in the household had an account, according to the Federal Deposit Insurance Corp. Another 24.2 million households were "underbanked," meaning they might have a bank account but members of the household also used an alternative financial service for money orders, check cashing, international remittances, payday loans and pawn shop loans, often at high costs. Some of those services have been criticized for being predatory and marketing to black and Hispanic communities, which are disproportionately unbanked. Roughly 17% of black households and 14% of Hispanic households were without a bank account in 2017, compared with just 3% of white households and 2.5% of Asian American households, the FDIC said. Banking is a social justice issue with the potential to widen America's racial wealth gap, said Cy Richardson, vice president of the National Urban League. "Black America's economic destiny exists on a razor's edge right now," Richardson said. Advocates say the federal government should use the pandemic payments as an opportunity to bring more people into the banking system via Bank On accounts, which are FDIC insured, cost $5 or less a month and do not allow overdrafts or charge insufficient-fund fees. The accounts can be used for direct deposit, purchases and paying bills. Otherwise, long lines at check-cashing stores could stretch into the fall and pose dangers to public health. "There's now a health component to being unbanked - people are going to have to take literal risks with their health, in order to receive and then spend these dollars," said Jonathan Mintz, CEO of the Cities for Financial Empowerment Fund, which aims to get underserved Americans set up with affordable bank accounts. The opportunity to attract customers with relief payments is not lost on check cashing and payday loan businesses, an $11.2 billion network of storefront locations in cities big and small. In Brooklyn, B&H Check Cashing, in the predominantly Hispanic neighborhood of Bushwick, posts its rates for cashing checks on a wall. A $1,200 check, for example, would cost $26.76 to cash. Essence Gandy, 26, stood in a line of two dozen people that snaked outside a PLS Check Cashers in Brooklyn to cash in loose change at a Coinstar kiosk. Her checking account was closed months ago because she had insufficient funds and was unable to get back in good standing. "I've got bills on top of bills," said Gandy, who also has credit card debts and is behind on payments to a mattress store. She said she hopes to use the federal relief payment to catch up on bills and will likely cash the paper check at PLS. A representative of PLS, which has 300 locations in 12 states, said it has been informing regular customers that stimulus checks can be cashed at their lowest rates.
3 May 18:28 • ABC7 New York • https://abc7ny.com/finance/americans-without-bank-accounts-must-wait-for-stimulus-checks/6147240/Rating: 0.30
Stimulus checks: Americans without bank accounts must wait for federal relief
As the coronavirus crisis took hold, Akeil Smith's employer slashed her work as a home health aide to 25 hours per week. Her $15-an-hour salary no longer provided enough to pay her $700 monthly rent, and she had to visit food pantries for groceries.While millions of U.S. workers have already received a quick relief payment from the federal treasury through direct deposit, Smith is among millions of others without traditional bank accounts who must wait weeks for paper checks. When the checks finally arrive, this disproportionately black and Hispanic population often has little choice but to use expensive check-cashing services to access the money."I live check to check, and right now I need more groceries," Smith, 35, told The Associated Press as she stood inside Payomatic, a small check-cashing store in a predominantly black Brooklyn neighborhood.In the six weeks since the pandemic shut down much of the U.S. economy, more than 30 million American workers have filed for unemployment insurance. Congress passed a $2.2 trillion economic rescue package.The government in April began sending $1,200 for each individual, $2,400 for each married couple and another $500 for each dependent child to poor and middle-class families across the United States. Wealthier families get either a reduced payout or nothing depending on their income.To help smooth the delivery of the payments, the government launched an online portal for people to provide their banking information for direct deposit. But that system offered nothing to people without savings or checking accounts.A House Ways and Means Committee memo obtained by the AP estimated about 5 million paper checks will be issued each week, meaning those most in need could wait many weeks for their payments.In Houston, Ta'Mar Bethune, a 41-year-old mother of four grown children who is raising a grandchild, is likely to wait a while. As a younger woman, she struggled for years with affording bank account fees until her account was closed. In the 1990s, she also was a victim of identity theft and never fully recovered.More than 20 years later, Bethune still cannot pass a standard background check to open a checking account because the banking system views her as too risky, she said. To get by, she transfers the money she makes as a professional hairdresser and babysitter onto a non-bank debit card."They charge you an arm and a leg," she said, citing a monthly fee and a charge for every swipe or withdrawal. "You never get your full money. It's bad, but I have no other choice."Bethune receives financial coaching from the Houston Area Urban League, a nonprofit organization helping low- to moderate-income families examine their behaviors around spending and saving. The organization says many families are reluctant to open bank accounts, especially if they have been burned by the system."Nobody wants to be exploited," said Carmela Walker, a financial coach for the group.Approximately 8.4 million U.S. households were considered "unbanked" in 2017, meaning that no one in the household had an account, according to the Federal Deposit Insurance Corp. Another 24.2 million households were "underbanked," meaning they might have a bank account but members of the household also used an alternative financial service for money orders, check cashing, international remittances, payday loans and pawn shop loans, often at high costs.Some of those services have been criticized for being predatory and marketing to black and Hispanic communities, which are disproportionately unbanked. Roughly 17% of black households and 14% of Hispanic households were without a bank account in 2017, compared with just 3% of white households and 2.5% of Asian American households, the FDIC said.Banking is a social justice issue with the potential to widen America's racial wealth gap, said Cy Richardson, vice president of the National Urban League."Black America's economic destiny exists on a razor's edge right now," Richardson said.Advocates say the federal government should use the pandemic payments as an opportunity to bring more people into the banking system via Bank On accounts, which are FDIC insured, cost $5 or less a month and do not allow overdrafts or charge insufficient-fund fees. The accounts can be used for direct deposit, purchases and paying bills.Otherwise, long lines at check-cashing stores could stretch into the fall and pose dangers to public health."There's now a health component to being unbanked - people are going to have to take literal risks with their health, in order to receive and then spend these dollars," said Jonathan Mintz, CEO of the Cities for Financial Empowerment Fund, which aims to get underserved Americans set up with affordable bank accounts.The opportunity to attract customers with relief payments is not lost on check cashing and payday loan businesses, an $11.2 billion network of storefront locations in cities big and small.In Brooklyn, B&H Check Cashing, in the predominantly Hispanic neighborhood of Bushwick, posts its rates for cashing checks on a wall. A $1,200 check, for example, would cost $26.76 to cash.Essence Gandy, 26, stood in a line of two dozen people that snaked outside a PLS Check Cashers in Brooklyn to cash in loose change at a Coinstar kiosk. Her checking account was closed months ago because she had insufficient funds and was unable to get back in good standing."I've got bills on top of bills," said Gandy, who also has credit card debts and is behind on payments to a mattress store. She said she hopes to use the federal relief payment to catch up on bills and will likely cash the paper check at PLS.A representative of PLS, which has 300 locations in 12 states, said it has been informing regular customers that stimulus checks can be cashed at their lowest rates.
3 May 18:28 • ABC7 Los Angeles • https://abc7.com/finance/americans-without-bank-accounts-must-wait-for-stimulus-checks/6147240/Rating: 0.39
If you’re skipping your mortgage payments, watch out for this costly mistake
How will I pay my mortgage? That’s the question facing millions of Americans as stay-at-home orders have caused many people to lose their jobs or income. Lawmakers have stepped in to provide homeowners with a lifeline by requiring lenders to provide forbearance — a way to defer mortgage payments — to any mortgage borrower with a federally-backed home loan. So far, 3.5 million mortgage borrowers have requested forbearance, representing nearly 7% of all mortgages nationwide, according to the latest data released Monday by the Mortgage Bankers Association, an industry trade group. That means millions of homeowners can now skip or make reduced monthly payments on the home loan for up to one year. “While the pace of job losses have slowed from the astronomical heights of just a few weeks ago, millions of people continue to file for unemployment,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association. “We expect forbearance requests will pick up again as we approach May payment due dates.” Calling your lender and requesting forbearance is just the first step in the process. “Forbearance is not forgiveness,” said Karan Kaul, a research associate at the Urban Institute, a nonprofit policy group, told MarketWatch earlier this month. “You still owe the money that you were paying, it’s just that there’s a temporary pause on making your monthly payments.” Eventually, borrowers will need to work out a repayment plan with their lender. And borrowers need to be careful that they don’t agree to a repayment plan they cannot afford. Fannie Mae FNMA, -1.74% and Freddie Mac FMCC, -3.37% put out guidelines on Monday reminding homeowners that they don’t have to make a balloon payment the end of their forbearance period. “We want every homeowner who is struggling because of this pandemic to know they have mortgage options,” Fannie CEO Hugh Frater said in the statement Monday. “We do not require a homeowner to repay missed payments all at once at the end of the forbearance plan, unless they choose to do so.” Freddie Mac CEO David Brickman similarly encouraged “homeowners facing hardship to work with their servicer to identify the plan that’s appropriate for their unique situation.” “ ‘We do not require a homeowner to repay missed payments all at once at the end of the forbearance plan, unless they choose to do so.’ ” — Fannie Mae CEO Hugh Frater With a balloon payment, also known as reinstatement or a lump-sum payment, a borrower would repay the entire amount they owed from the forbearance period all at once. “It really isn’t helping somebody if they get a four-month deferral but have to make a lump sum payment, and they’ve been out of work for four months,” said Rick Sharga, a mortgage industry veteran and founder of CJ Patrick Company, a real-estate consulting firm. “That’s just deferring failure rather than helping somebody succeed.” As Americans have requested forbearance, some have complained that their mortgage servicer offered a balloon payment option as a repayment option. But this isn’t the only way to pay back the money you owe. “ ‘It really isn’t helping somebody if they get a four month deferral but have to make a lump sum payment, and they’ve been out of work for four months. That’s just deferring failure rather than helping somebody succeed.’ ” — Rick Sharga, a mortgage industry veteran and founder of CJ Patrick Company For starters, borrowers can request a payment deferral modification. With this, the balance they did not pay during the forbearance period would be tacked onto the end of the loan. The duration of the loan would be extended — so someone who received forbearance for six-months on a 30-year mortgage would now be debt-free after 30.5 years. Alternatively, a consumer can opt for a repayment plan where they would gradually pay off the money they owe in addition to their monthly mortgage payments. With this option, the duration of the loan would not be extended, but monthly payments would increase. For those who are still facing financial trouble at the end of forbearance, they can reach out to their mortgage lender to request a loan modification. This would reduce the monthly payment amount for the loan. “All those terms are negotiable,” Sharga said. “Be diligent, be steadfast and try and stand your ground.” In most cases, the servicer will try to contact homeowners 30 days before the forbearance plan is scheduled to end to determine which repayment option works best for them at that time. Borrowers can also proactively request this information from their servicer. Borrowers also can ask their servicer who owns their mortgage, because home loans are often sold to investors. “Knowing who the owner of the loan is will provide the borrower with information to research what options are available from that entity,” said Andrea Bopp Stark, an attorney with the National Consumer Law Center. Servicers must respond to these requests within 10 days, she said. “If the servicer does not respond, the borrower should send another letter and seek legal assistance,” Bopp Stark said. “The servicer could be held liable for actual damages and up to $2,000 in statutory damages for a failure to respond.”
3 May 18:09 • MarketWatch • https://www.marketwatch.com/story/the-no-1-mistake-to-avoid-if-youre-skipping-your-mortgage-payments-2020-04-28Rating: 0.30
Americans without bank accounts must wait for federal checks
NEW YORK (AP) — As the coronavirus crisis took hold, Akeil Smith’s employer slashed her work as a home health aide to 25 hours per week. Her $15-an-hour salary no longer provided enough to pay her $700 monthly rent, and she had to visit food pantries for groceries. While millions of U.S. workers have already received a quick relief payment from the federal treasury through direct deposit, Smith is among millions of others without traditional bank accounts who must wait weeks for paper checks. When the checks finally arrive, this disproportionately black and Hispanic population often has little choice but to use expensive check-cashing services to access the money. “I live check to check, and right now I need more groceries,” Smith, 35, told The Associated Press as she stood inside Payomatic, a small check-cashing store in a predominantly black Brooklyn neighborhood. In the six weeks since the pandemic shut down much of the U.S. economy, more than 30 million American workers have filed for unemployment insurance. Congress passed a $2.2 trillion economic rescue package. The government in April began sending $1,200 for each individual, $2,400 for each married couple and another $500 for each dependent child to poor and middle-class families across the United States. Wealthier families get either a reduced payout or nothing depending on their income. To help smooth the delivery of the payments, the government launched an online portal for people to provide their banking information for direct deposit. But that system offered nothing to people without savings or checking accounts. Advertising A House Ways and Means Committee memo obtained by AP estimated about 5 million paper checks will be issued each week, meaning those most in need could wait many weeks for their payments. In Houston, Ta’Mar Bethune, a 41-year-old mother of four grown children who is raising a grandchild, is likely to wait a while. As a younger woman, she struggled for years with affording bank account fees until her account was closed. In the 1990s, she also was a victim of identity theft and never fully recovered. More than 20 years later, Bethune still cannot pass a standard background check to open a checking account because the banking system views her as too risky, she said. To get by, she transfers the money she makes as a professional hairdresser and babysitter onto a non-bank debit card. “They charge you an arm and a leg,” she said, citing a monthly fee and a charge for every swipe or withdrawal. “You never get your full money. It’s bad, but I have no other choice.” Bethune receives financial coaching from the Houston Area Urban League, a nonprofit organization helping low- to moderate-income families examine their behaviors around spending and saving. The organization says many families are reluctant to open bank accounts, especially if they have been burned by the system. “Nobody wants to be exploited,” said Carmela Walker, a financial coach for the group. Advertising Approximately 8.4 million U.S. households were considered “unbanked” in 2017, meaning that no one in the household had an account, according to the Federal Deposit Insurance Corp. Another 24.2 million households were “underbanked,” meaning they might have a bank account but members of the household also used an alternative financial service for money orders, check cashing, international remittances, payday loans and pawn shop loans, often at high costs. Some of those services have been criticized for being predatory and marketing to black and Hispanic communities, which are disproportionately unbanked. Roughly 17% of black households and 14% of Hispanic households were without a bank account in 2017, compared with just 3% of white households and 2.5% of Asian American households, the FDIC said. Banking is a social justice issue with the potential to widen America’s racial wealth gap, said Cy Richardson, vice president of the National Urban League. “Black America’s economic destiny exists on a razor’s edge right now,” Richardson said. Advocates say the federal government should use the pandemic payments as an opportunity to bring more people into the banking system via Bank On accounts, which are FDIC insured, cost $5 or less a month and do not allow overdrafts or charge insufficient-fund fees. The accounts can be used for direct deposit, purchases and paying bills. Otherwise, long lines at check-cashing stores could stretch into the fall and pose dangers to public health. “There’s now a health component to being unbanked — people are going to have to take literal risks with their health, in order to receive and then spend these dollars,” said Jonathan Mintz, CEO of the Cities for Financial Empowerment Fund, which aims to get underserved Americans set up with affordable bank accounts. The opportunity to attract customers with relief payments is not lost on check cashing and payday loan businesses, an $11.2 billion network of storefront locations in cities big and small. In Brooklyn, B&H Check Cashing, in the predominantly Hispanic neighborhood of Bushwick, posts its rates for cashing checks on a wall. A $1,200 check, for example, would cost $26.76 to cash. Essence Gandy, 26, stood in a line of two dozen people that snaked outside a PLS Check Cashers in Brooklyn to cash in loose change at a Coinstar kiosk. Her checking account was closed months ago because she had insufficient funds and was unable to get back in good standing. “I’ve got bills on top of bills,” said Gandy, who also has credit card debts and is behind on payments to a mattress store. She said she hopes to use the federal relief payment to catch up on bills and will likely cash the paper check at PLS. A representative of PLS, which has 300 locations in 12 states, said it has been informing regular customers that stimulus checks can be cashed at their lowest rates. ___ Aaron Morrison is a member of The Associated Press’ Race and Ethnicity team. Follow him on Twitter at https://twitter.com/aaronlmorrison. AARON MORRISON
3 May 12:21 • The Seattle Times • https://www.seattletimes.com/business/americans-without-bank-accounts-must-wait-for-federal-checks-2/Rating: 0.74
Americans without bank accounts must wait for federal checks
NEW YORK (AP) - As the coronavirus crisis took hold, Akeil Smith’s employer slashed her work as a home health aide to 25 hours per week. Her $15-an-hour salary no longer provided enough to pay her $700 monthly rent, and she had to visit food pantries for groceries. While millions of U.S. workers have already received a quick relief payment from the federal treasury through direct deposit, Smith is among millions of others without traditional bank accounts who must wait weeks for paper checks. When the checks finally arrive, this disproportionately black and Hispanic population often has little choice but to use expensive check-cashing services to access the money. “I live check to check, and right now I need more groceries,” Smith, 35, told The Associated Press as she stood inside Payomatic, a small check-cashing store in a predominantly black Brooklyn neighborhood. In the six weeks since the pandemic shut down much of the U.S. economy, more than 30 million American workers have filed for unemployment insurance. Congress passed a $2.2 trillion economic rescue package. The government in April began sending $1,200 for each individual, $2,400 for each married couple and another $500 for each dependent child to poor and middle-class families across the United States. Wealthier families get either a reduced payout or nothing depending on their income. To help smooth the delivery of the payments, the government launched an online portal for people to provide their banking information for direct deposit. But that system offered nothing to people without savings or checking accounts. A House Ways and Means Committee memo obtained by the AP estimated about 5 million paper checks will be issued each week, meaning those most in need could wait many weeks for their payments. In Houston, Ta’Mar Bethune, a 41-year-old mother of four grown children who is raising a grandchild, is likely to wait a while. As a younger woman, she struggled for years with affording bank account fees until her account was closed. In the 1990s, she also was a victim of identity theft and never fully recovered. More than 20 years later, Bethune still cannot pass a standard background check to open a checking account because the banking system views her as too risky, she said. To get by, she transfers the money she makes as a professional hairdresser and babysitter onto a non-bank debit card.
3 May 00:00 • The Washington Times • https://www.washingtontimes.com/news/2020/may/3/americans-without-bank-accounts-must-wait-for-fede/Rating: 0.79
Not all student loans qualify for forbearance under the CARES Act. Here are the ones that do and don't.
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective. You may have heard that federal student loan payments are in forbearance until September 30 through the CARES Act. You don't have to contact your student loan servicer to pause payments — they're suspended automatically. Note that if you've defaulted on your federal student loans, the government may have been taking up to 15% of your paychecks to pay back your loans. The government is pausing wage garnishment for defaulted loans held by the Department of Education until September 30. This new rule may seem simple enough, but it can be tricky to figure out which loans qualify for forbearance and which do not qualify. You don't want to assume you're off the hook until September 30, only to find out your lender has reported a late payment to credit bureaus because your loan wasn't eligible for forbearance and you've been skipping payments. If you have a federal loan owned by the Department of Education, your loan is eligible for forbearance under the CARES Act. This includes Direct subsidized loans, Direct unsubsidized loans, Direct PLUS loans, and Direct consolidation loans. There are two basic types of student loans: federal loans and private loans. Private loans comes from private lenders, including banks, credit unions, colleges, and private companies. Private student loans do not qualify for forbearance under the CARES Act, but many lenders are offering payment assistance during the coronavirus pandemic. If you find out your lender is providing help, you need to contact an agent to enroll in an assistance program — your loans won't be automatically enrolled in forbearance as your federal student loans would. Maybe you originally took out federal student loans, but you later refinanced them into one new loan. Refinancing is done by private lenders, so when you refinance federal student loans, they become a private loan. This means you lose out on any benefits that come with federal loans, including the forbearance program under the CARES Act. You might have a Federal Family Education Loan (FFEL) or a Perkins loan. Some FFEL or Perkins loans are held by the Department of Education, and those are eligible for forbearance. However, some Perkins loans are funded through colleges, and some FFEL loans are funded through private companies. These do not qualify for forbearance under the CARES Act. David Klein, CEO of private student loan lender CommonBond, said there is a general rule of thumb for figuring out whether your FFEL loan is held by the Department of Education. "It generally works is that if you have a federal student loan from before July 1, 2010, then it's likely not held by the federal government," Klein said. "And if you have a federal student loan that was originated after July 1, 2010, it very likely is held by the federal government. The heuristic here is if you got a loan originated after July 1, 2010, then you get the federal relief that's the effective six-month moratorium through September 30." If you aren't sure whether your FFEL or Perkins loan is held by the Department of Education, contact your student loan servicer to find out. If you consolidated your federal loans into one Direct loan, the new consolidated loan does qualify for forbearance. Consolidation and refinancing differ in a few important ways. First of all, you can refinance federal and private loans together, but you can only consolidate federal loans. Second, when you refinance, you take out one new private loan; when you consolidate, you combine your loan into one federal loan. If you have FFEL or Perkins loans that don't qualify for forbearance right now, you may choose to consolidate them into a Direct loan so they could be eligible for forbearance. There are a few things to take into consideration before you consolidate, though. The process can take months, so you will still have to make regular payments for a while. If you've been making payments toward forgiveness with the Public Service Loan Forgiveness program, you would have to start your payment process from the beginning after you consolidated. LoadingSomething is loading. Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story. Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries. 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2 May 11:55 • Business Insider • https://www.businessinsider.com/personal-finance/which-student-loans-qualify-forbearance-cares-act-2020-5Rating: 4.40
NLC charges workers on post-COVID-19 work challenges
2 May 14:08
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3 articles
Weight: 0.00
Importance: 0.19
Age penalty: 0.00
Best date: 2 May 14:08
Average US: 4.8
Weighted average US: 4.730568052162025
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Average IN: 2.9333333333333336
Weighted average IN: 2.6787495245940915
NLC charges workers on post-COVID-19 work challenges
Share on FacebookShare on Twitter The Lagos State Chapter of the Nigeria Labour Congress has urged workers to reflect on the future of work to enhance the ability to confront the challenges ahead. The state Chairman, Agnes Sessi, made the call in a statement on Saturday in commemoration of Workers’ Day celebrated annually on May 1. Sessi said the challenges ahead were enormous, however, not insurmountable. She said: “Apart from high infection and mortality rate, the biggest impact of COVID-19 pandemic is the disruption of socio- economic order. “According to International Labour Organisation (ILO), 25 million people will likely lose their jobs as a result of the pandemic. “It also warns of severe job contraction in the informal sector as the opportunity for people to be engaged will be highly restricted, given the restriction of movement in many places.” The chairman also said the union was aware that some employers might exploit the current situation and engage in anti-labour practices in their organisations to further inflict pains on workers. She, however, warned that such act would be vehemently resisted by labour. Sessi added: “While labour will continue to show understanding at this trying time, we implore employers to be cautious in taking decisions on issues that borders on the livelihood of workers. “We appeal to the three arms of government, including the Executive, Legislative and Judiciary, to provide an unrivaled leadership and services not only to the workers but the entire citizens of Lagos State. “Also, agencies that are saddled with responsibilities of protecting the rights of the workers at work should be alive to their duties.” Sessi, while commending the government for its efforts in fighting the pandemic, called on the government not to renege on its responsibilities of providing the needed Personal Protective Equipment for healthcare workers. She said: “Applauding the health workers is not enough without the continuous provision of safety kits for them to prevent transmission of the virus. “We do not want health workers to become dead heroes and victims, because we need as many health workers as possible to be alive and healthy to keep up the good work they are doing.” The chairman commended the state government in distributing relief materials to cushion the effect of the lockdown. She said the efforts had not yielded the desired result and therefore called on the government to revisit the distribution of palliative items. Sessi said: “Despite the importance of workers at this critical time, a critical stakeholder like organised labour was not carried along by the government in the distribution of the palliatives. “We request the inclusion of the real vulnerable in the society including pensioners, widows, physically challenged, to mention a few, as beneficiaries in the palliative arrangement.” Your email address will not be published. Required fields are marked * Comment Name * Email * Website Yes, add me to your mailing list
2 May 14:08 • The Eagle Online • https://theeagleonline.com.ng/nlc-charges-workers-on-post-covid-19-work-challenges/Rating: 0.39
Nearly Half of Global Workforce at Risk of Losing Livelihoods: ILO
Geneva: Nearly 1.6 billion workers in the informal economy – that is nearly half of the global workforce – stand in immediate danger of having their livelihoods destroyed, the International Labour Organisation (ILO) has warned, adding that more than 436 million enterprises face high risks of serious disruption globally. Also Read - Rajkot School Flouts Lockdown, Asks Students to Attend Classes; Faces Action In its latest update on global job losses, the ILO said that the drop in working hours in the current (second) quarter of 2020 is expected to be significantly worse than previously estimated. Also Read - 44 People Residing in Same Building in Delhi's Kapashera Test Positive For COVID-19 Geneva, May 2 (IANS) Nearly 1.6 billion workers in the informal economy – that is nearly half of the global workforce – stand in immediate danger of having their livelihoods destroyed, the International Labour Organisation (ILO) has warned, adding that more than 436 million enterprises face high risks of serious disruption globally. Also Read - Karnataka IAS Officer Issued Show Cause Notice For His Tweet on Tablighi Jamaat Donors In its latest update on global job losses, the ILO said that the drop in working hours in the current (second) quarter of 2020 is expected to be significantly worse than previously estimated. Compared to pre-crisis levels (Q4 2019), a 10.5 per cent deterioration is now expected, equivalent to 305 million full-time jobs (assuming a 48-hour working week),” according to the “ILO Monitor third edition: COVID-19 and the world of work’. The previous estimate last month was for a 6.7 per cent drop, equivalent to 195 million full-time workers. “As a result of the economic crisis created by the pandemic, almost 1.6 billion informal economy workers (representing the most vulnerable in the labour market), out of a worldwide total of two billion and a global workforce of 3.3 billion, have suffered massive damage to their capacity to earn a living. This is due to lockdown measures and/or because they work in the hardest-hit sectors,” the findings showed. Worldwide, more than 436 million enterprises face high risks of serious disruption. These enterprises are operating in the hardest-hit economic sectors, including some 232 million in wholesale and retail, 111 million in manufacturing, 51 million in accommodation and food services, and 42 million in real estate and other business activities. Estimates suggest a 12.4 per cent loss of working hours in Q2 for the Americas (compared to pre-crisis levels) and 11.8 per cent for Europe and Central Asia. The estimates for the rest of the regional groups follow closely and are all above 9.5 per cent. The first month of the crisis is estimated to have resulted in a drop of 60 per cent in the income of informal workers globally. This translates into a drop of 81 per cent in Africa and the Americas, 21.6 per cent in Asia and the Pacific, and 70 per cent in Europe and Central Asia. The ILO called for urgent, targeted and flexible measures to support workers and businesses, particularly smaller enterprises, those in the informal economy and others who are vulnerable. “For millions of workers, no income means no food, no security and no future. As the pandemic and the jobs crisis evolve, the need to protect the most vulnerable becomes even more urgent,” said Guy Ryder, ILO Director-General. “Millions of businesses around the world are barely breathing. They have no savings or access to credit. These are the real faces of the world of work. If we don’t help them now, these enterprises will simply perish,” he added. Measures for economic reactivation should follow a job-rich approach, backed by stronger employment policies and institutions, better-resourced and comprehensive social protection systems. “International co-ordination on stimulus packages and debt relief measures will also be critical to making recovery effective and sustainable. International labour standards, which already enjoy tripartite consensus, can provide a framework,” said the report. For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Business Latest News on India.com. Comments - Join the Discussion
2 May 09:37 • India News, Breaking News, Entertainment News | India.com • https://www.india.com/business/nearly-half-of-global-workforce-at-risk-of-losing-livelihoods-ilo-4017541/Rating: 0.30
Our Opportunity To Rebuild Better
Today E tū is launching the Rebuild Better campaign, in response to the COVID-19 crisis and recovery. E tū National Secretary Bill Newson says it’s all about having workers at the heart of our recovery. “The COVID-19 crisis has affected every worker in New Zealand. Our country has been lucky in some respects, but big changes lie ahead and E tū is determined we will rebuild better,” Bill says. “We need a future that’s better for workers, better for the country, and better for the next generation.” The campaign is based on five key principles: “The campaign is focused not just on weathering the COVID-19 storm, but also creating a future for workers that’s better than the path we were on before,” Bill says. “Community health and wellbeing should always be a priority. This means keeping people safe from COVID-19 in the immediate term, but we also need a longer term focus on improving health and wellbeing beyond the crisis. “Workers’ wages need to lead the recovery. We don’t want any workers out of pocket because of COVID-19. We know that lower waged workers spend more of their hard-earned cash in the local economy than others do, so making sure workers are well paid is part of the necessary economic stimulus – as well as the morally right thing to do. “We need to keep and create decent jobs. High wage, secure, and safe jobs. Our country should be doing a lot more to advance our manufacturing industries, our high-tech economy, and our green energy sector. There’s no point in a COVID-19 recovery that isn’t both socially and environmentally sustainable. “Union members are worker experts, so they need to be involved in all decisions. That means representation at the top tables of industry and government. We need to be equal partners in decision making, both because of the expertise that working people have, and to ensure fair outcomes. “Finally, we remain focussed on ending inequality. Our lowest paid workers simply cannot bear the full brunt of the economic downturn. We’re fighting for things like Fair Pay Agreements, the Living Wage, and social procurement to address these historic injustices.” Please visit the new website www.rebuildbetter.nz to learn more. © Scoop Media
2 May 06:47 • SCOOP • https://www.scoop.co.nz/stories/AK2005/S00041/our-opportunity-to-rebuild-better.htmRating: 0.30
France's SocGen to provision between 3.5 and 5 billion euros this year: CEO
2 May 11:20
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France's SocGen to provision between 3.5 and 5 billion euros this year: CEO
PARIS (Reuters) - French bank Societe Generale expects to have to provision 3.5 billion euros to 5 billion euros ($3.84 bln-5.49 bln) this year because of losses due to the coronavirus crisis, its chief executive said in an interview on Saturday. Frederic Oudea also said he expected the bank’s equity ratio to drop to between 11% and 11.5% percent, which would remain 200 to 250 basis points above minimum legal requirements, he said. Shares in France’s third biggest listed bank fell sharply on Thursday after it surprised investors with a quarterly loss, hiking provisions for bad loans and suffering a revenue wipeout at its equity trading division. “It is by far the most serious crisis we have had to face,” Oudea told Les Echos. But Oudea added that, unlike during the 2008-2009 financial crisis, banks had enough provisions to cope. “During the previous crisis, banks were the problem. Today, they have a driving role to play and are taking part in the solution,” he said. ($1 = 0.9105 euros)
2 May 11:20 • Reuters • https://www.reuters.com/article/us-health-coronavirus-societe-generale-idUSKBN22E0FBRating: 4.04
France's SocGen to provision up to €5 billion this year: CEO
PARIS: French bank Societe Generale expects to have to provision €3.5 billion euros to 5 billion euros (US$3.84 billion-US$5.49 blillion this year because of losses due to the coronavirus crisis, its chief executive said in an interview on Saturday (May 2). Frederic Oudea also said he expected the bank's equity ratio to drop to between 11 per cent and 11.5 per cent percent, which would remain 200 to 250 basis points above minimum legal requirements, he said. Shares in France's third biggest listed bank fell sharply on Thursday after it surprised investors with a quarterly loss, hiking provisions for bad loans and suffering a revenue wipeout at its equity trading division. "It is by far the most serious crisis we have had to face," Oudea told Les Echos. But Oudea added that, unlike during the 2008-2009 financial crisis, banks had enough provisions to cope. "During the previous crisis, banks were the problem. Today, they have a driving role to play and are taking part in the solution," he said.
2 May 19:25 • CNA • https://www.channelnewsasia.com/news/business/france-s-socgen-to-provision-up-to-5-billion-this-year-ceo-12696806Rating: 3.25
France's SocGen to provision between 3.5 and 5 billion euros this year: CEO
PARIS (Reuters) - French bank Societe Generale (OTC:SCGLY) expects to have to provision 3.5 billion euros to 5 billion euros ($3.84 bln-5.49 bln) this year because of losses due to the coronavirus crisis, its chief executive said in an interview on Saturday. Frederic Oudea also said he expected the bank's equity ratio to drop to between 11% and 11.5% percent, which would remain 200 to 250 basis points above minimum legal requirements, he said. Shares in France's third biggest listed bank fell sharply on Thursday after it surprised investors with a quarterly loss, hiking provisions for bad loans and suffering a revenue wipeout at its equity trading division. "It is by far the most serious crisis we have had to face," Oudea told Les Echos. But Oudea added that, unlike during the 2008-2009 financial crisis, banks had enough provisions to cope. "During the previous crisis, banks were the problem. Today, they have a driving role to play and are taking part in the solution," he said. ($1 = 0.9105 euros)
2 May 00:00 • Investing.com • https://www.investing.com/news/economy/frances-socgen-to-provision-between-35-and-5-billion-euros-this-year-ceo-2158638Rating: 0.30
PM meets FM for 2nd economic stimulus package amid coronavirus lockdown
2 May 15:30
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10 articles
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Average IN: 36.12
Weighted average IN: 69.46617460902114
PM meets FM for 2nd economic stimulus package amid coronavirus lockdown
Prime Minister Narendra Modi on Saturday held a series of meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and officials of economic ministries to firm up the second stimulus package for sectors impacted by lockdown to curb spread of coronavirus, sources said. The prime minister held discussions with Shah and Sitharaman and would have follow up meetings with ministers of key economic ministries such as Micro, Small & Medium Enterprises (MSME), sources said. The finance ministry, which deferred release of monthly GST collection numbers on Friday, is also scheduled to make a detailed presentation to the prime minister later in the day on the state of economy and several initiatives that it plans to undertake to stimulate Indian economy. The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and MSME ministries among others on Thursday with focus on attracting both domestic and overseas investment and revival of small businesses in the country so that the recovery process is hastened. During these meetings both the home minister and the finance minister were present. For latest updates on coronavirus outbreak, click here To mitigate hardships faced by the bottom of the pyramid, the government in late March had announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly. Sources said the government is considering to announce a second dose of relief measures for the segment and a stimulus package for India Inc shortly. The government had first imposed a 21-day nationwide lockdown beginning March 25 and later extended it till May 3. The lockdown shut businesses, stopped air and rail travel and restricted movement of people and goods. Beginning May 4, the government has decided to ease certain restrictions including opening of industries for green and orange districts which either have nil or low number of cases. The easing of restriction in specified districts is till May 17 with strict vigil by local administration.
2 May 15:30 • Deccan Herald • https://www.deccanherald.com/national/pm-meets-fm-for-2nd-economic-stimulus-package-amid-coronavirus-lockdown-832658.htmlRating: 2.25
PM Modi Holds Meeting With Key Ministers; Next Economic Package Targeting Most Affected Sectors Soon
Prime Minister Narendra Modi has held a series of meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and top officials of the government to finalise the second economic package targeted at sectors most affected by the lockdown to check Covid-19 spread. The meetings involving Shah, Sitharaman and other officials of the key economic ministries are taking place for the last few days and the idea is to get inputs on the impact of the current lockdown on different segments of the economy and identify immediate measures that may be required as a relief and revival strategy, sources privy to the developments said. As part of this effort, Modi had met Shah, Commerce and Industry Minister Piyush Goyal and Civil Aviation Minister Hardeep Puri on Friday (1May). The meeting was also attended by Cabinet Secretary Rajeev Gauba and the Principal Secretary to the PM. Meetings were also held with commerce and MSME ministries on Thursday. On Saturday, the Prime Minister had a review meeting with the Agriculture Ministry to deliberate on the issues and reforms related to the farm sector. With the government permitting various economic activities to start from May 4 by dividing the country into red, orange and green zones, the immediate concern is to support specific sectors through a package, so that businesses regain lost ground and economic activities gradually return back to normal. The government is also looking at giving a boost to the investment climate through a series of reform initiatives. Sources said that the government may take a phased approach in this regard the next set of stimulus may have a clear focus on the concerns of the SME segments which have been hit hard due to the Covid-19 outbreak and resultant nationwide lockdown. Revival of small businesses is a key concern for the government. The Finance Ministry has suggested to the PMO to set up a dedicated fund for micro, small and medium enterprises that could be used to provide both interest free loans to identified industries as well as capital support required to bring enterprises back in business after the lockdown. The size of the fund would be large to extend help to a large number of entities. The MSME fund may also be used to provide interest subvention on loans taken by the sector to reduce their burden and allow some of these labour intensive segments to operate smoothly. "The contours of the package are being finalised, and the actual timing of the announcement is still to be worked out. But it would be done soon," said an official source. Though the next set of package from the government to fight the disruptions caused by the Covid-19 outbreak is expected to be much wider to cover the concerns of the India Inc., particularly the worst-hit travel and tourism, hospitality and aviation sectors, sources said that the government may adopt a phased approach to see that only such measures that immediately benefit a sector during the lockdown are announced first before looking at measures to bring the economy back on track after the lockdown. While talks with the stakeholders have taken place in different sectors and their needs have been analysed by the Finance Ministry, it is felt that the MSMEs have been hit hard at different levels and need support immediately. There is wide speculation that the next economic stimulus package could be bigger than the Rs 1,70,000 crore worth of schemes announced by Finance Minister Nirmala Sitharaman in late March, focusing on providing food security to the poor and giving money in their hands to fight the Covid-19 pandemic. There is also a suggestion to involve five to six big corporate houses in the production of key items of consumption for the masses so that the country doesn't face shortages once demand picks up. This could be done by providing direct linkages of farmers with corporate entities so that key food produce reaches the factories for processing and production. While announcing the last package, Sitharaman had indicated that concerns of the India Inc. and SME segments and other sectors of the economy impacted by the present lockdown may be looked at and the government would come up with a plan later. This news has been published via Syndicate. Only the headline is changed.
2 May 20:02 • Swarajya • https://swarajyamag.com/insta/pm-modi-holds-meeting-with-key-ministers-next-economic-package-targeting-most-affected-sectors-soonRating: 1.22
Prime Minister Narendra Modi meets Home Minister Amit Shah, Finance Minister Nirmala Sitharaman over 2nd economic stimulus package
At the time when nation is undergoing economic crisis due to the nationwide lockdown after the coronavirus outbreak, Prime Minister Narendra Modi along with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman are continuously making efforts to stable Indian economy. Today, PM Modi met Home Minister, Finance Minister and other financial experts to discuss the second stimulus economic package to provide some relief and boost deteriorating economy. Finance Minister also had a meeting with Micro, Small & Medium Enterprises (MSME) ministers to discuss economic measure. Reports said the Finance Ministry will also present a detailed report about the state of economy and measures that have planned to undertake to stimulate Indian economy. PTI reported that the government is likely to announce some relief measures shortly.This time that government may announce some relief for small scale businessmen. Last month, the government had announced a Rs 1.7 lakh crore stimulus package comprising free ration, cooking gas and cash in bank accounts of pension holders and poor. Nationwide lockdown which was imposed from March 25 after Prime Minister Narendra Modi’s announcement jaan hai toh jahan hai, all businesses came to halt and Indian economy was hit badly. So far, the novel coronavirus has infected more than 36,000 people in India, claiming 1,218 lives.
2 May 11:34 • newsx.com • https://www.newsx.com/national/prime-minister-narendra-modi-meets-home-minister-amit-shah-finance-minister-nirmala-sitharaman-over-2nd-economic-stimulus-package.htmlRating: 0.74
PM Modi holds meeting with Finance Minister on second economic stimulus package
Prime Minister Narendra Modi on Saturday held a series of meetings with key Ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and officials of economic ministries to firm up the second stimulus package for sectors impacted by lockdown to curb spread of coronavirus, sources said. The Prime Minister held discussions with Mr. Shah and Ms. Sitharaman and would have follow up meetings with ministers of key economic ministries such as Micro, Small & Medium Enterprises (MSME), sources said. Full coverage |The economic fallout of COVID-19 The Finance Ministry, which deferred release of monthly GST collection numbers on Friday, is also scheduled to make a detailed presentation to the Prime Minister later in the day on the state of economy and several initiatives that it plans to undertake to stimulate Indian economy. Mr. Modi already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and MSME ministries among others on Thursday with focus on attracting both domestic and overseas investment and revival of small businesses in the country so that the recovery process is hastened. Also read |Highlights of the coronavirus lockdown package During these meetings both the Home Minister and the Finance Minister were present. To mitigate hardships faced by the bottom of the pyramid, the government in late March had announced a ₹1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly. Sources said the government is considering to announce a second dose of relief measures for the segment and a stimulus package for India Inc shortly. The government had first imposed a 21-day nationwide lockdown beginning March 25 and later extended it till May 3. The lockdown shut businesses, stopped air and rail travel and restricted movement of people and goods. Beginning May 4, the government has decided to ease certain restrictions including opening of industries for green and orange districts which either have nil or low number of cases. The easing of restriction in specified districts is till May 17 with strict vigil by local administration.
2 May 11:18 • The Hindu • https://www.thehindu.com/business/Economy/pm-modi-holds-meeting-with-finance-minister-on-second-economic-stimulus-package/article31488932.eceRating: 0.30
PM Modi switches gear, steps up focus on reviving economy
Prime Minister Narendra Modi on Saturday held a series of meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman to take steps to revive the economy. The prime minister held discussions with Shah and Sitharaman and would have follow up meetings with ministers of key economic ministries such as Micro, Small & Medium Enterprises (MSME), sources said. The finance ministry, which deferred release of monthly GST collection numbers on Friday, is also scheduled to make a detailed presentation to the prime minister later in the day on the state of economy and several initiatives that it plans to undertake to stimulate Indian economy. The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and MSME ministries among others on Thursday with focus on attracting both domestic and overseas investment and revival of small businesses in the country so that the recovery process is hastened. During these meetings both the home minister and the finance minister were present. To mitigate hardships faced by the bottom of the pyramid, the government in late March had announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly. Sources said the government is considering to announce a second dose of relief measures for the segment and a stimulus package for India Inc shortly. The government had first imposed a 21-day nationwide lockdown beginning March 25 and later extended it till May 3. The lockdown shut businesses, stopped air and rail travel and restricted movement of people and goods. Beginning May 4, the government has decided to ease certain restrictions including opening of industries for green and orange districts which either have nil or low number of cases. The easing of restriction in specified districts is till May 17 with strict vigil by local administration.
2 May 11:13 • Hindustan Times • https://www.hindustantimes.com/india-news/pm-modi-meets-fm-nirmala-sitharaman-amit-shah-for-2nd-economic-stimulus-package-report/story-MHKG5YJOvqwFm7iH9oGaiM.htmlRating: 0.30
PM Modi discusses second economic stimulus package with FM Sitharaman, Home Minister Amit Shah
The finance ministry will make a detailed presentation to PM Modi later in the day on the state of economy and several measures it plans to take to ensure economic recovery Prime Minister Narendra Modi on Saturday held important meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and top government officials to discuss a second stimulus package for sectors hit by coronavirus lockdown. The finance ministry will make a detailed presentation to PM Modi later in the day on the state of economy and several measures it plans to take to ensure economic recovery. Coronavirus lockdown 3.0: Govt reconstitutes 11 empowered groups on COVID-19 The PM has already held meetings with different ministries including civil aviation, labour and power on Friday to discuss steps for economic recovery. On Thursday, PM Modi held detailed discussions with commerce and MSME ministries on ensuring both domestic and overseas investment and revival of small businesses in the country. Both home and finance ministers were present in these meetings. In March end, the government outlined a Rs 1.7-lakh crore ($22.6-billion) economic stimulus plan providing direct cash transfers and food security measures to give relief to millions of poor hit by the ongoing 21-day nationwide lockdown. Now, the government plans to announce a second dose of relief measures for the segment and a stimulus package for India Inc. The lockdown shut businesses, stopped air and rail travel and restricted movement of people and goods. The government, on Friday, extended the lockdown by another two weeks in the wake of rising cases of novel coronavirus in the country. The third stage of lockdown will start on May 4 and will end on May 17. Coronavirus lockdown 3.0: Women Jan Dhan account holders to get second Rs 500 instalment from May 4 However, this time some activities would be allowed after classifications of districts into 'Red', 'Orange' and 'Green' zones based on COVID-19 risk profiling. Prime Minister Narendra Modi first announced a 21-day nationwide lockdown on March 25, which was later extended by two more weeks to contain the virus spread. All major urban centres, including Delhi and Mumbai, have been identified as 'red zones' or areas with large numbers of cases. The Centre formulated 733 zones which included 130 red zones, 284 orange zones, and 319 green zones. By Aseem Thapliyal
2 May 11:17 • Business Today • https://www.businesstoday.in/current/economy-politics/pm-narendra-modi-coronavirus-crisis-modi-coronavirus-package-fm-sitharaman-amit-shah/story/402687.htmlRating: 2.10
Second Economic Stimulus Package Confirmed? PM Modi Meets Amit Shah, Nirmala Sitharaman to Finalise Details
New Delhi: A day after the nationwide lockdown has been extended for two more weeks starting from May 4, with several relaxations at comparatively lesser risk zones, Prime Minister Narendra Modi held a series of meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and officials of economic ministries to firm up the second stimulus package for sectors impacted by lockdown to curb the spread of coronavirus, sources said. Also Read - Coronavirus: As India Enters Lockdown 3.0, Ban on Flight Operations to Continue There will be more follow-up meetings with ministers of key economic ministries such as Micro, Small & Medium Enterprises (MSME), sources said. Also Read - 44 People Residing in Same Building in Delhi's Kapashera Test Positive For COVID-19 While the first package was aimed at mitigating the hardships of the poor, the second package might have something for small and medium enterprises and India Inc. The Centre had announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash to poor women and elderly. Also Read - 'Give up COVID-19 Data Cover up Operation', WB Governor Accuses Mamata of Hiding Actual Figures of Cases in State The finance ministry, which deferred the release of monthly GST collection numbers on Friday, is also scheduled to make a detailed presentation to the prime minister later in the day on the state of the economy and several initiatives that it plans to undertake to stimulate Indian economy. The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and MSME ministries among others on Thursday with focus on attracting both domestic and overseas investment and revival of small businesses in the country so that the recovery process is hastened. During these meetings both the home minister and the finance minister were present. The government had first imposed a 21-day nationwide lockdown beginning March 25 and later extended it till May 3. The lockdown shut businesses, stopped air and rail travel and restricted movement of people and goods. While agricultural and industrial works are limping back to normalcy, owing to the embargo on inter-state transport, economic activities will continue to receive a hit in the third phase. For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Business Latest News on India.com. Comments - Join the Discussion
2 May 10:02 • India News, Breaking News, Entertainment News | India.com • https://www.india.com/business/second-economic-stimulus-package-confirmed-pm-modi-meets-amit-shah-nirmala-sitharaman-to-finalise-details-4017558/Rating: 0.30
PM meets FM for second economic stimulus package
NEW DELHI: Prime Minister Narendra Modi on Saturday held a series of meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and officials of economic ministries to firm up the second stimulus package for sectors impacted by lockdown to curb spread of coronavirus, sources said. The prime minister held discussions with Shah and Sitharaman and would have follow up meetings with ministers of key economic ministries such as Micro, Small & Medium Enterprises (MSME), sources said. The finance ministry, which deferred release of monthly GST collection numbers on Friday, is also scheduled to make a detailed presentation to the prime minister later in the day on the state of economy and several initiatives that it plans to undertake to stimulate Indian economy. The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and MSME ministries among others on Thursday with focus on attracting both domestic and overseas investment and revival of small businesses in the country so that the recovery process is hastened. During these meetings both the home minister and the finance minister were present. To mitigate hardships faced by the bottom of the pyramid, the government in late March had announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly. Sources said the government is considering to announce a second dose of relief measures for the segment and a stimulus package for India Inc shortly. The government had first imposed a 21-day nationwide lockdown beginning March 25 and later extended it till May 3. The lockdown shut businesses, stopped air and rail travel and restricted movement of people and goods. Beginning May 4, the government has decided to ease certain restrictions including opening of industries for green and orange districts which either have nil or low number of cases. The easing of restriction in specified districts is till May 17 with strict vigil by local administration. In Video: PM Modi chairs key meeting on reforms in agriculture sector, discusses ways to increase farmers' income
2 May 09:39 • The Economic Times • https://economictimes.indiatimes.com/news/economy/policy/pm-meets-fm-for-second-economic-stimulus-package/articleshow/75504441.cmsRating: 0.30
PM meets Shah, Sitharaman for second stimulus package as lockdown continues
Prime Minister Narendra Modi on Saturday met two senior ministers and civil servants from the economic ministries to prepare a second stimulus package for the economy hit by a nationwide lockdown triggered by the coronavirus pandemic. Modi, after his meeting with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, will hold talks with key economic ministries such as Micro, Small & Medium Enterprises (MSME), PTI reported quoting unnamed sources. The finance ministry, which deferred on Friday releasing the monthly Goods and Services Tax (GST) collection numbers, will make a presentation to Modi later in the day on the state of economy and initiatives that it plans to undertake to help the economy. Modi met with aviation, labour and power ministries on Friday. He had detailed deliberation with commerce and MSME ministries among others on Thursday with focus on attracting both domestic and overseas investment and revival of small businesses in the country so that the recovery process is hastened. Shah and Sitharaman were present in these meetings, reported PTI. Small businesses, farmers, women, poor, migrant workers and other marginalised sections are likely to benefit from the second stimulus, Business Standard reported on April 28. Industries worst hit by the lockdown--aviation, hospitality, automobiles, real estate, and logistics to name a few—will have to wait. Any support for these sectors and big industry will only happen later down the line, once economic activity normalizes to some extent, officials said. ALSO READ: Govt's second stimulus likely this week, may keep industry waiting Sitharaman on March 25 announced a stimulus worth Rs 1.7 trillion or around 0.8 per cent of India’s GDP--much smaller compared to most other G-20 nations. The United States’ stimulus package was pegged at 11 per cent of GDP, that of Australia was at 9.7 per cent, Brazil was at 3.5 per cent, as per data portal Statista. The government said on Friday it would extend its nationwide lockdown for another two weeks after May 4, but would allow “considerable relaxations” in lower-risk districts marked as green and orange zones under a plan to fight the coronavirus outbreak. The home ministry issued new guidelines to regulate life and work in this period, based on districts divided into red ( coronavirus hotspot), green and orange zones. There will be considerable relaxations in the districts falling in the green and orange zones, the government said. A number of activities will remain prohibited throughout the country, irrespective of the zone. Travel by air, rail, metro and inter-state movement by road will remain banned.
2 May 09:42 • Business-Standard • https://www.business-standard.com/article/economy-policy/pm-meets-shah-sitharaman-for-second-stimulus-package-as-lockdown-continues-120050200534_1.htmlRating: 0.30
PM Modi meets Finance Minister Nirmala Sitharaman for 2nd economic stimulus package
Prime Minister Narendra Modi on Saturday held a series of meetings with key ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, and officials of economic ministries to firm up the second stimulus package for sectors impacted by lockdown to curb spread of coronavirus, sources said. The prime minister held discussions with Shah and Sitharaman and would have follow up meetings with ministers of key economic ministries such as Micro, Small & Medium Enterprises (MSME), sources said. The finance ministry, which deferred release of monthly GST collection numbers on Friday, is also scheduled to make a detailed presentation to the prime minister later in the day on the state of economy and several initiatives that it plans to undertake to stimulate Indian economy. The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and MSME ministries among others on Thursday with focus on attracting both domestic and overseas investment and revival of small businesses in the country so that the recovery process is hastened. During these meetings both the home minister and the finance minister were present. To mitigate hardships faced by the bottom of the pyramid, the government in late March had announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly. Sources said the government is considering to announce a second dose of relief measures for the segment and a stimulus package for India Inc shortly. The government had first imposed a 21-day nationwide lockdown beginning March 25 and later extended it till May 3. The lockdown shut businesses, stopped air and rail travel and restricted movement of people and goods. Beginning May 4, the government has decided to ease certain restrictions including opening of industries for green and orange districts which either have nil or low number of cases. The easing of restriction in specified districts is till May 17 with strict vigil by local administration.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/india/pm-modi-meets-finance-minister-nirmala-sitharaman-for-2nd-economic-stimulus-package-5214781.htmlRating: 0.30
Australia's dependence on immigration faces its biggest economic test
2 May 11:05
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3 articles
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Australia's dependence on immigration faces its biggest economic test
Australia's dependence on immigration to grow the economy is about to be sorely tested. One of the secret ingredients to Australia's unparalleled run of economic growth since the country's last recession has been strong population growth. While local mums have played their part in swelling the number of locals, the heavy lifting has been done by people from nations such as China, India, Britain, New Zealand and the Philippines who have decided to call Australia home. Over the past decade, the nation's permanent population has grown by 3.7 million to more than 25 million. Of that increase, 60 per cent was due to net migration. That extra 2.2 million people have been an economic powerhouse, requiring homes, cars, food and every day goods and services while also contributing fresh skills to the jobs market. But it has come at a price, particularly in Sydney and Melbourne. Be it via higher house prices or over-crowded schools, all levels of government have struggled to keep up with the demands of a growing population while reaping the economic benefits of that population. The Morrison government made much of its decision in last year's budget to cap permanent migration at 160,000 for four consecutive years as dealing with the congestion pressures on our big cities. That cap didn't include the hundreds of thousands of temporary migrants – be it students or workers – who help run the economy and add to demand. But with the borders shut, international students stuck in their home countries and immigration all-but impossible, the issues around migration and Australia's dependence on it cannot be ignored. The government is now expecting net overseas migration – which was forecast to reach 271,000 in 2019-20 – to be 30 per cent lower. Next year, the drop is tipped to be 85 per cent. Combined, that's close to 300,000 missing shoppers, students, family members and skilled workers from the economy. With temporary workers leaving the country and others unable to get in, population growth is likely to stall. Sydney could shrink while Melbourne's stellar growth of recent years will be muted, with serious economic repercussions. Australia will, post-virus, remain a desirable destination for permanent migrants, temporary ones and international students. The Morrison government's economic rebuilding plan will have to include a discussion around the nation's dependence of immigration.
2 May 11:05 • The Age • https://www.theage.com.au/politics/federal/australia-s-dependence-on-immigration-faces-its-biggest-economic-test-20200501-p54oxx.html?ref=rss&utm_medium=rss&utm_source=rss_politics_federalRating: 2.20
Australia's dependence on immigration faces its biggest economic test
Australia's dependence on immigration to grow the economy is about to be sorely tested. One of the secret ingredients to Australia's unparalleled run of economic growth since the country's last recession has been strong population growth. While local mums have played their part in swelling the number of locals, the heavy lifting has been done by people from nations such as China, India, Britain, New Zealand and the Philippines who have decided to call Australia home. Over the past decade, the nation's permanent population has grown by 3.7 million to more than 25 million. Of that increase, 60 per cent was due to net migration. That extra 2.2 million people have been an economic powerhouse, requiring homes, cars, food and every day goods and services while also contributing fresh skills to the jobs market. But it has come at a price, particularly in Sydney and Melbourne. Be it via higher house prices or over-crowded schools, all levels of government have struggled to keep up with the demands of a growing population while reaping the economic benefits of that population. The Morrison government made much of its decision in last year's budget to cap permanent migration at 160,000 for four consecutive years as dealing with the congestion pressures on our big cities. That cap didn't include the hundreds of thousands of temporary migrants – be it students or workers – who help run the economy and add to demand. But with the borders shut, international students stuck in their home countries and immigration all-but impossible, the issues around migration and Australia's dependence on it cannot be ignored. The government is now expecting net overseas migration – which was forecast to reach 271,000 in 2019-20 – to be 30 per cent lower. Next year, the drop is tipped to be 85 per cent. Combined, that's close to 300,000 missing shoppers, students, family members and skilled workers from the economy. With temporary workers leaving the country and others unable to get in, population growth is likely to stall. Sydney could shrink while Melbourne's stellar growth of recent years will be muted, with serious economic repercussions. Australia will, post-virus, remain a desirable destination for permanent migrants, temporary ones and international students. The Morrison government's economic rebuilding plan will have to include a discussion around the nation's dependence of immigration.
2 May 11:05 • Brisbane Times • https://www.brisbanetimes.com.au/politics/federal/australia-s-dependence-on-immigration-faces-its-biggest-economic-test-20200501-p54oxx.html?ref=rss&utm_medium=rss&utm_source=rss_politics_federalRating: 0.86
Australia's dependence on immigration faces its biggest economic test
Australia's dependence on immigration to grow the economy is about to be sorely tested. One of the secret ingredients to Australia's unparalleled run of economic growth since the country's last recession has been strong population growth. While local mums have played their part in swelling the number of locals, the heavy lifting has been done by people from nations such as China, India, Britain, New Zealand and the Philippines who have decided to call Australia home. Over the past decade, the nation's permanent population has grown by 3.7 million to more than 25 million. Of that increase, 60 per cent was due to net migration. That extra 2.2 million people have been an economic powerhouse, requiring homes, cars, food and every day goods and services while also contributing fresh skills to the jobs market. But it has come at a price, particularly in Sydney and Melbourne. Be it via higher house prices or over-crowded schools, all levels of government have struggled to keep up with the demands of a growing population while reaping the economic benefits of that population. The Morrison government made much of its decision in last year's budget to cap permanent migration at 160,000 for four consecutive years as dealing with the congestion pressures on our big cities. That cap didn't include the hundreds of thousands of temporary migrants – be it students or workers – who help run the economy and add to demand. But with the borders shut, international students stuck in their home countries and immigration all-but impossible, the issues around migration and Australia's dependence on it cannot be ignored. The government is now expecting net overseas migration – which was forecast to reach 271,000 in 2019-20 – to be 30 per cent lower. Next year, the drop is tipped to be 85 per cent. Combined, that's close to 300,000 missing shoppers, students, family members and skilled workers from the economy. With temporary workers leaving the country and others unable to get in, population growth is likely to stall. Sydney could shrink while Melbourne's stellar growth of recent years will be muted, with serious economic repercussions. Australia will, post-virus, remain a desirable destination for permanent migrants, temporary ones and international students. The Morrison government's economic rebuilding plan will have to include a discussion around the nation's dependence of immigration.
2 May 11:05 • WAtoday • https://www.watoday.com.au/politics/federal/australia-s-dependence-on-immigration-faces-its-biggest-economic-test-20200501-p54oxx.html?ref=rss&utm_medium=rss&utm_source=rss_politics_federalRating: 0.55
Flight Centre to stop charging cancellation fees amid criticism
2 May 10:03
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4 articles
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Flight Centre to stop charging cancellation fees amid criticism
Flight Centre has decided to stop charging cancellation fees to customers whose travel has been impacted by COVID-19. The travel agent had been charging a $300 per person cancellation fee for bookings from before the outbreak, with some law firms and customers considering a class action against the practice. But in a letter sent to customers on Saturday, Flight Centre backed down from that position. “The decision to waive [cancellation] fees will impact our business, nevertheless we have heard your feedback and we believe this step is the right one for the current economic conditions where stand downs and job losses are a daily occurrence for many Australians,” Flight Centre Travel Group executive general manager Allisa O’Connell wrote in the letter. “The waiver follows ongoing discussions with customers and regulators, including the ACCC, and will apply retrospectively to bookings cancelled as a result of COVID-19 on or after 13 March 2020 for which a Flight Centre Cancellation Fee was charged. Please note this waiver applies to our fees – we cannot waive fees or conditions that airlines and other third party suppliers impose.” Ms O’Connell also confirmed Flight Centre staff would continue to perform the “time consuming task” of processing refunds. The travel agent has come under fire for delays in getting money back to its customers. Flight Centre will also offer customers travel vouchers of up to $200 per person for those who do not request a refund and instead take credits for future travel. Ms O’Connor also reiterated that Flight Centre was “well placed financially to weather a prolonged downturn” in the travel industry. The company said those who accepted a credit voucher could get a refund, without having to pay fees, at the end of December 2021, if travel still isn't possible. Flight Centre had defended the $300 fee – which was included in its terms and conditions – saying it covers lost commissions, as well as the time and cost involved in managing the refund process. The embattled travel group is closing 428 Australian stores by the end of July in an attempt to radically slash costs while raising $900 million in fresh equity and debt to last it through the coronavirus pandemic.
2 May 10:03 • Brisbane Times • https://www.brisbanetimes.com.au/national/flight-centre-to-stop-charging-cancellation-fees-amid-criticism-20200502-p54p9z.html?ref=rss&utm_medium=rss&utm_source=rss_nationalRating: 0.86
Flight Centre to stop charging cancellation fees amid criticism
Flight Centre has decided to stop charging cancellation fees to customers whose travel has been impacted by COVID-19. The travel agent had been charging a $300 per person cancellation fee for bookings from before the outbreak, with some law firms and customers considering a class action against the practice. But in a letter sent to customers on Saturday, Flight Centre backed down from that position. “The decision to waive [cancellation] fees will impact our business, nevertheless we have heard your feedback and we believe this step is the right one for the current economic conditions where stand downs and job losses are a daily occurrence for many Australians,” Flight Centre Travel Group executive general manager Allisa O’Connell wrote in the letter. “The waiver follows ongoing discussions with customers and regulators, including the ACCC, and will apply retrospectively to bookings cancelled as a result of COVID-19 on or after 13 March 2020 for which a Flight Centre Cancellation Fee was charged. Please note this waiver applies to our fees – we cannot waive fees or conditions that airlines and other third party suppliers impose.” Ms O’Connell also confirmed Flight Centre staff would continue to perform the “time consuming task” of processing refunds. The travel agent has come under fire for delays in getting money back to its customers. Flight Centre will also offer customers travel vouchers of up to $200 per person for those who do not request a refund and instead take credits for future travel. Ms O’Connor also reiterated that Flight Centre was “well placed financially to weather a prolonged downturn” in the travel industry. The company said those who accepted a credit voucher could get a refund, without having to pay fees, at the end of December 2021, if travel still isn't possible. Flight Centre had defended the $300 fee – which was included in its terms and conditions – saying it covers lost commissions, as well as the time and cost involved in managing the refund process. The embattled travel group is closing 428 Australian stores by the end of July in an attempt to radically slash costs while raising $900 million in fresh equity and debt to last it through the coronavirus pandemic.
2 May 10:03 • WAtoday • https://www.watoday.com.au/national/flight-centre-to-stop-charging-cancellation-fees-amid-criticism-20200502-p54p9z.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
Flight Centre to stop charging cancellation fees amid criticism
Flight Centre has decided to stop charging cancellation fees to customers whose travel has been impacted by COVID-19. The travel agent had been charging a $300 per person cancellation fee for bookings from before the outbreak, with some law firms and customers considering a class action against the practice. But in a letter sent to customers on Saturday, Flight Centre backed down from that position. The new policy applies retrospectively to cancellation fees already paid. “The decision to waive [cancellation] fees will impact our business, nevertheless we have heard your feedback and we believe this step is the right one for the current economic conditions where stand downs and job losses are a daily occurrence for many Australians,” Flight Centre Travel Group executive general manager Allisa O’Connell wrote in the letter. “The waiver follows ongoing discussions with customers and regulators, including the ACCC [Australian Competition and Consumer Commission], and will apply retrospectively to bookings cancelled as a result of COVID-19 on or after 13 March 2020 for which a Flight Centre Cancellation Fee was charged. Please note this waiver applies to our fees – we cannot waive fees or conditions that airlines and other third party suppliers impose.” The ACCC welcomed Flight Centre's move and said it would have taken legal action if the travel group had not made the decision. “This is a very welcome move made by Flight Centre today for thousands of customers impacted by COVID-19 travel cancellations,” ACCC Chair Rod Sims said. “We are continuing to discuss issues in relation to refunds and cancellations with the travel sector, and encourage travel providers to treat consumers fairly in these exceptional circumstances.” Ms O’Connell also confirmed Flight Centre staff would continue to perform the “time consuming task” of processing refunds. The travel agent has come under fire for delays in getting money back to its customers. Flight Centre will also offer customers travel vouchers of up to $200 per person for those who do not request a refund and instead take credits for future travel. The ACCC said it had received 6000 complaints related to travel companies refund policies. “We ask consumers to remain patient and be mindful of the significant pressures on businesses at this time and, where possible, contact the business by email or website, rather than by phone,” Mr Sims said. “These are very complex issues and may take smaller businesses more time to respond.” Ms O’Connor also reiterated that Flight Centre was “well placed financially to weather a prolonged downturn” in the travel industry. The company said those who accepted a credit voucher could get a refund, without having to pay fees, at the end of December 2021, if travel still isn't possible. Flight Centre had defended the $300 fee – which was included in its terms and conditions – saying it covers lost commissions, as well as the time and cost involved in managing the refund process. The embattled travel group is closing 428 Australian stores by the end of July in an attempt to radically slash costs while raising $900 million in fresh equity and debt to last it through the coronavirus pandemic. The Agereported in April on Melbourne midwife Jacqueline Vella who lost thousands, including $1500 in fees, when she had to cancel a trip to Europe and the United States. Flight Centre then decided to cap its cancellation fees about a week later, and a day after The Age reported a class action law suit was being planned. This week, a mother suffering from muscular dystrophy pleaded with Flight Centre to refund the almost $20,000 she spent on a trip with her family.
2 May 10:03 • The Age • https://www.theage.com.au/national/flight-centre-to-stop-charging-cancellation-fees-amid-criticism-20200502-p54p9z.html?ref=rss&utm_medium=rss&utm_source=rss_nationalRating: 2.20
Flight Centre backs down on Covid-19 cancellation fees
After mounting public pressure Flight Centre has backed down on charging travellers for trips cancelled due to Covid-19, removing its fees altogether. The tourism booking company came under fire for charging customers to cancel bookings they were unable to use due to Covid-19 travel restrictions. One couple spoken to by the Herald were charged a $1436 cancellation fee on a $2328 holiday, booked in November last year through Flight Centre in Fielding. They were planning to take Flight Centre to the Disputes Tribunal and complained to the Commerce Commission. Similar cancellation fees had been the subject of hundreds of complaints on a Facebook page set up by aggrieved customers, with some claiming to have lost tens of thousands of dollars. A Change.Org petition set up to get Flight Centre to relax or waive the cancellation fees had attracted thousands of signatures. This week the company announced a $700 cap on cancellation fees for bookings, but today managing director David Coombes said they would be taking it a step further. "We have listened to feedback - both positive and negative - and made a further amendment to our refund policy to address one of the key ongoing concerns - our cancellation processing fee." He estimated they would be refunding about 15,000 bookings due to Covid-19 impacts, and waiving their cancellation fees would cost the company an estimated $7 million. The waiver would apply in situations where the third party supplier, usually the airline, has cancelled the service that was booked for the customer. The fee waiver would only apply to those from Flight Centre, and not from airlines nor third party suppliers. Coombes said they saw this as "an investment in the company's customers who are under considerable stress, caused by financial uncertainty as a result of the significant impact of Covid-19". The compay was also "well placed" financially to weather a prolonged downturn in demand resulting from unprecedented and unforeseen government restrictions on travel and trading, he said. The previous cancellation policy was in line with requirements set by the NZ Commerce Commission, and the move has not been made for fear of legal action, Coombes said. "While our decision to waive fees will cost our business significantly in lost revenue for work that has already, and will continue to be done by our people, we believe it's the right thing to do under current economic conditions where stand downs and job losses are a daily occurrence for many Kiwis, regrettably including our own people." Not all travel agencies would be in such a position to waive their fees, and Coombes said it was important Kiwis understood the "considerable costs" associated with servicing the travel industry's customers, with very little revenue coming in to cover those costs. "I urge the Commerce Commission and Consumer NZ to work with us to understand this situation. "A robust agency community will be in the best interests of Kiwi customers when we are travelling again." As Flight Centre had no control over the time taken by third party suppliers to process refunds, they could take between three and six months to process due to demands. "We are negotiating to secure funds sooner, and ensuring our internal processes are faster, however we do not have complete control over this part of theprocess," Coombes said. Where third party suppliers, usually airlines, have not yet cancelled their service, customers could still decide to cancel, however Flight Centre cancellation fees will apply.
2 May 00:00 • Otago Daily Times Online News • https://www.odt.co.nz/business/flight-centre-backs-down-covid-19-cancellation-feesRating: 0.40
NBCUniversal weighs layoffs at media, entertainment units
2 May 09:54
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4 articles
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NBCUniversal weighs layoffs at media, entertainment units
Comcast Corp-owned NBCUniversal is evaluating a significant reduction of staff across its portfolio of media and entertainment properties as part of a cost-cutting effort, the Wall Street Journal reported on Friday, citing people familiar with the matter. Discussions began this week regarding cost-cutting measures, including layoffs, according to the report. Along with its industry peers, NBCUniversal is taking a financial hit from the coronavirus outbreak which has shuttered movie theaters and theme parks. The company has temporarily closed its theme parks and suspended its sports productions and most of its film and TV production. Although all divisions are being looked at, some areas likely to be under a microscope at NBCUniversal are the theme-parks division and Universal Pictures, the WSJ reported. NBCUniversal declined to comment on the report. The company, which reported its results earlier this week, said its quarterly revenue at the filmed entertainment unit fell 22.5% this quarter from a year earlier, while revenue at theme parks fell 31.9%. Last month, Walt Disney Co said it will start furloughs of non-essential US employees across the company.
2 May 09:54 • The Express Tribune • https://tribune.com.pk/story/2212281/8-nbcuniversal-weighs-layoffs-media-entertainment-units/Rating: 1.80
NBCUniversal weighs significant layoffs at media, entertainment units: WSJ
Comcast Corp owned NBCUniversal is evaluating a significant reduction of staff across its portfolio of media and entertainment properties as part of a cost-cutting effort, the Wall Street Journal reported on Friday, citing people familiar with the matter. Discussions began this week regarding cost-cutting measures, including layoffs, according to the report on.wsj.com Along with its industry peers, NBCUniversal is taking a significant financial hit from the coronavirus outbreak which has shuttered movie theatres and theme parks. The company has temporarily closed its theme parks and suspended its sports productions and most of its film and TV production. Although all divisions are being looked at, some areas likely to be under a microscope at NBCUniversal are the theme-parks division and Universal Pictures, the WSJ reported.
2 May 06:44 • Bdnews24 • https://bdnews24.com/media-en/2020/05/02/nbcuniversal-weighs-significant-layoffs-at-media-entertainment-units-wsjRating: 2.85
NBCUniversal weighs layoffs at media, entertainment units: WSJ
Comcast Corp owned NBCUniversal is evaluating a significant reduction of staff across its portfolio of media and entertainment properties as part of a cost-cutting effort, the Wall Street Journal reported on Friday, citing people familiar with the matter. REUTERS: Comcast Corp owned NBCUniversal is evaluating a significant reduction of staff across its portfolio of media and entertainment properties as part of a cost-cutting effort, the Wall Street Journal reported on Friday, citing people familiar with the matter. Discussions began this week regarding cost-cutting measures, including layoffs, according to the report. Along with its industry peers, NBCUniversal is taking a financial hit from the coronavirus outbreak which has shuttered movie theaters and theme parks. The company has temporarily closed its theme parks and suspended its sports productions and most of its film and TV production. Although all divisions are being looked at, some areas likely to be under a microscope at NBCUniversal are the theme-parks division and Universal Pictures, the WSJ reported. NBCUniversal declined to comment on the report. The company, which reported its results earlier this week, said its quarterly revenue at the filmed entertainment unit fell 22.5per cent this quarter from a year earlier, while revenue at theme parks fell 31.9per cent. Last month, Walt Disney Co said it will start furloughs of non-essential U.S. employees across the company. (Reporting by Shanti S Nair, Maria Ponnezhath and Aakriti Bhalla in Bengaluru; Editing by Sandra Maler and Stephen Coates)
2 May 10:55 • CNA • https://www.channelnewsasia.com/news/business/nbcuniversal-weighs-layoffs-at-media--entertainment-units--wsj-12696414Rating: 3.25
NBCUniversal weighs layoffs at media, entertainment units - WSJ
Comcast Corp owned NBCUniversal is evaluating a significant reduction of staff across its portfolio of media and entertainment properties as part of a cost-cutting effort, the Wall Street Journal reported on Friday, citing people familiar with the matter. Discussions began this week regarding cost-cutting measures, including layoffs, according to the report. Along with its industry peers, NBCUniversal is taking a financial hit from the coronavirus outbreak which has shuttered movie theaters and theme parks. The company has temporarily closed its theme parks and suspended its sports productions and most of its film and TV production. Although all divisions are being looked at, some areas likely to be under a microscope at NBCUniversal are the theme-parks division and Universal Pictures, the WSJ reported. NBCUniversal declined to comment on the report. The company, which reported its results earlier this week, said its quarterly revenue at the filmed entertainment unit fell 22.5% this quarter from a year earlier, while revenue at theme parks fell 31.9%. Last month, Walt Disney Co said it will start furloughs of non-essential U.S. employees across the company. (Reporting by Shanti S Nair, Maria Ponnezhath and Aakriti Bhalla in Bengaluru; Editing by Sandra Maler and Stephen Coates)
2 May 02:40 • Financial Post • https://business.financialpost.com/pmn/business-pmn/nbcuniversal-weighs-layoffs-at-media-entertainment-units-wsjRating: 0.94
Banks advise customers against crowding at branches
3 May 17:47
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Banks advise customers against crowding at branches
The State Level Bankers’ Committee (SLBC), Telangana on Saturday said the Centre’s ₹500 ex gratia payment to women Jan Dhan account holders for this month will be released from May 4 onwards. It also announced a schedule of withdrawal for the women Jan Dhan account holders, drawn up as a measure to maintain social distancing, ensure orderly withdrawal and avoid crowding at bank branches. As per the schedule, beneficiaries whose account numbers end with 0 or 1 are required to visit the branch on May 4, account numbers with last digits 2 or 3 on May 5, last digits 4 or 5 on May 6, last digits 6 or 7 on May 8, and last digits 8 or 9 on May 11. The credit into their account would be advised through SMS by respective banks. After May 12, the beneficiaries may go to the CSP(BC)/ATM/branch on any day as per the normal banking hours. SLBC convenor and State Bank of India General Manager U.N.N. Maiya said customers can withdraw as per their requirement and convenient time. Once the amount is credited into the account it will not be taken back by the government. Withdrawal facility is also available at India Post Payment Banks if Aadhaar numbers are mapped to the account. As part of the COVID-19 relief package, the Centre had announced an ex gratia payment of ₹ 500 to each women Jan Dhan account holders for three months, beginning April. As regards Telangana government’s support of providing ₹1,500 each to Food Security Card (white ration card) holders, for this month, the SLBC said the amount will be credited into the accounts of beneficiaries from May 2 onwards. The credit will also be advised through SMS by the respective banks. The State government had announced ₹1,500 support each to the white ration card holders for April and May.
3 May 17:47 • The Hindu • https://www.thehindu.com/news/cities/Hyderabad/banks-advise-customers-against-crowding-at-branches/article31495979.eceRating: 0.30
PMGKY: IBA draws up withdrawal schedule for women Jan Dhan account-holders
In order to maintain social distancing and ensure orderly withdrawal of money, the Indian Banks’ Association (IBA) has drawn up a staggered schedule, from May 4-11, for women Jan Dhan Yojana account-holders to withdraw the second installment of ₹500 to be deposited by the government for the month of May. Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the government has decided to deposit ₹500 per month, during the April-June 2020 period, in the accounts of women Jan Dhan Yojana account-holders. The first installment was disbursed last month. The IBA’s schedule of disbursement for May is based on the last digit of the account number of the beneficiary — those with account number with last digit as ‘0’ or ‘1’ can withdraw the money on May 4; ‘2’ or ‘3’ on May 5; ‘4’ or ‘5’ on May 6; ‘6’ or ‘7’ on May 8; ‘8’ or ‘9’ on May 11. “This has been done to maintain social distancing. We request beneficiaries to use the neighbourhood ATMs, at bank branches, bank mitras/ customer service points for making withdrawals and for cash at POS up to ₹ 2,000 as far as possible, to avoid crowding at bank branches,” the Association said. The Association added that intimation of withdrawal schedule will be sent to the beneficiary account holders through SMS by the Banks. The Association, in a statement, said after May 11, 2020, the beneficiaries can withdraw money at any bank on any day at their convenience. It emphasised that at present, as per the Government’s directions, there are no charges for withdrawing money from any bank’s ATM till June 30, 2020.
3 May 04:53 • BusinessLine • https://www.thehindubusinessline.com/money-and-banking/pmgky-iba-draws-up-withdrawal-schedule-for-women-jan-dhan-account-holders/article31493472.eceRating: 1.98
COVID-19: Banks in competition to donate N1 billion into relief fund
COVID-19 charity donations to the Central Bank of Nigeria (CBN) may have turned into a stiff competition as banks struggle to donate billions of Naira to look stronger than the others, insider sources have told The ICIR. Recall that CBN has earlier informed the private companies and individuals wishing to make voluntary donations towards the fight against Coronavirus to do so via COVID-19 Relief Fund Account. According to a source at the First City Monument Bank (FCMB) that asked for anonymity, “The CBN intervened when banks turned COVID-19 into a competition and started out doing each other in donating billions.” “The apex bank met with the committee of banks and suggested that donations towards fighting COVID-19 be coordinated and done through CBN,” he added. CBN determined how much each bank would pay depending on how big they are, there are three tiers of banks which are categorised according to their financial weight, tier one, tier two and tier three. FCMB was to pay N250 million according to the CBN categorisation, whereas, the bank’s management previously had decided to donate more than that, the source said. The source added that there is a need for CBN to streamline the process because banks had turned it into a competition, putting unnecessary pressure on smaller banks. Though sources from other banks told The ICIR they were not aware of the pressure on them to make donations for COVID-19, they did not deny there was competition. Abdul Imoyo of Access Bank said, “I am not aware of the competition in the banking sector as regards donation to COVID-19, I am only aware of the donation of N1 billion my bank made.” Charles Amadi of Fidelity Bank did not respond to calls and text messages sent to him. According to Adewale Kunle of Sterling Bank, “He said donations were made according to the financial strength of various banks and Sterling bank was able to donate the sum of N250 million.” Also, another source at Union bank that asked to be anonymous said: ” I believe we can’t give what we can’t afford in times like this. We were only able to donate N250 million to help fight the pandemic .” Efforts to reach CBN spokesman, Isaac Okorafor for comment unsuccessful. As of April 17, 2020, nine banks had donated to CBN to fight the pandemic. They are Guaranty Trust Bank (N1 billion), United Bank for Africa (N1 billion), Zenith Bank (N1 billion), Access Bank (N1 billion), First Bank (N1 billion), Union Bank (N250 million), Sterling Bank (N250 million), Standard Chartered (N250 million) and Stanbic IBTC Bank (N250 million). Recently the management of Access Bank has resolved to lay off 75 per cent of its workers due to the impact of COVID-19 on the banks and to avert any coming challenges.
2 May 18:10 • The ICIR • https://www.icirnigeria.org/covid-19banks-in-n1b-donation-competition/Rating: 0.30
Over 200 million women Jan-Dhan account holders to get Rs 500 for May from Monday
The government has asked both private and public sector banks to keep their systems and processes ready to disburse Rs 500 to over 200 million women Jan-Dhan account holders each from Monday, which is part of the Rs 1.7 lakh crore Prime Minister Jan Kalyan Yojana package announced by finance minister Nirmala Sitharaman on March 26, officials said. In order to help the poor in this difficult time when livelihoods of most of them have been disrupted due to teh lockdown to check the spread of coronavirus, the government had decided to give an ex-gratia of Rs 500 per month for three months from April. The money will be released by the ministry of rural development (MoRD) directly in the bank accounts of over 200 million accounts, hence banks have been asked to provide for enough cash in their branches and ATMs so that the beneficiaries should not face any hassle and social distancing is maintained, the officials said requesting anonymity. In order to avoid rush it is suggested to disburse money on the basis of last digit of individual accounts in a particular day, they said. The first Monday is fixed for account numbers ending with 0 and 1. Likewise for account numbers ending with 2-3 on Tuesday, 4-5 on Wednesday, 6-7 on Friday and 8-9 on the next Monday. Based on the plan, banks are advised to inform account holders through SMS, they said.
2 May 17:11 • Hindustan Times • https://www.hindustantimes.com/india-news/over-200-million-women-jan-dhan-account-holders-to-get-rs-500-for-may-from-monday/story-IqMb310GEha01X9ZMsbaxK.htmlRating: 0.30
Bank transfer of 2nd installment of Rs. 500 to women Jan Dhan a/c holders from Monday: Fin Min
Women Jan Dhan bank account holders will start getting the second installment of Rs. 500 from Monday in line with the announcement made by Finance Minister Nirmala Sitharaman in March. To help the poor tide over the COVID-19 crisis, the government had on March 26 said ex-gratia payment of Rs. 500 would be credited to women Jan Dhan account holders for the next three months, starting from April. “Installment of Rs.500 for the month of May has been sent to the bank A/cs of PMJDY women beneficiaries under Pradhan Mantri Garib Kalyan Package. Beneficiaries are requested to follow the schedule shared below to visit banks & CSPs. Money can also be withdrawn via ATMs & BCs,” Financial Services Secretary Debasish Panda said in a tweet on Saturday. The transfer has been staggered over a period of five days to avoid rush at the bank branches. This will help in ensuring social distancing and avoid overcrowding in banks, he said. As per the schedule, women account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY) having account number with last digit as 0 and 1 will get the money in their account on May 4, while accounts ending with 2 or 3 can approach the bank on May 5. On May 6, beneficiaries with account numbers ending with 4 or 5 can collect their money, while accounts ending with 6 or 7 may withdraw on May 8. The last tranche would be remitted on May 11 for account numbers ending with 8 or 9, the tweet said. In case of emergency, one can withdraw the money immediately. However, for orderly disbursal, one must follow the banks’ payment plan, it said. Beneficiaries may withdraw any day at their convenience after May 11, it added. Beneficiaries are encouraged to use the neighbourhood ATMs with RuPay cards, Bank Mitras and customer service points (CSPs) as much as possible to avoid crowding at the branches, it said. “Please note that there will be no charges for withdrawing money from other bank ATMs, at present, as per the government directives,” it said. During April as many as 20.05 crore women Jan Dhan account holders received Rs. 500 each in their accounts as the first installment. The total disbursement under the head was Rs. 10,025 crore as on April 22. In a bid to mitigate hardship caused by the coronavirus crisis, the government in late March announced a Rs. 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly.
2 May 09:20 • The Indian Express • https://indianexpress.com/article/cities/delhi/bank-transfer-of-2nd-installment-of-rs-500-to-women-jan-dhan-a-c-holders-from-monday-fin-min-6390311/Rating: 0.30
Bank transfer of second installment of ₹500 to women Jan Dhan account holders from Monday: FinMin
The Finance Ministry has begun crediting the second (May) instalment of ₹500 to the women account holders of Pradhan Mantri Jan Dhan Yojana (PMJDY) as part of the Pradhan Mantri Garib Kalyana Package ( PMGKP), a top official said. “Instalment of ₹500 for the month of May has been sent to the bank A/Cs of PMJDY women beneficiaries under Pradhan Mantri Garib Kalyan Package. Beneficiaries are requested to follow the schedule shared below to visit banks and CSPs. Money can also be withdrawn via ATMs and Business Correspondents”, the Department of Financial Services Secretary Debasish Panda tweeted on Saturday. The money in the bank is safe, and there is no need to rush for withdrawal, the DFS has said. For bank accounts ending with 0 and 1, the date of disbursal will be May 4. It will be May 5 for those with bank accounts ending on 2 and 3; May 6 for those with bank accounts ending with 4 and 5. Those with bank accounts ending with 6 and 7 can get their monies on May 8, and the date of disbursal will be May 11 for those with bank accounts ending with 8 and 9. After May 11, beneficiaries may withdraw any day at their convenience. This will help in ensuring social distancing and avoiding overcrowding in banks. Also ReadDBT under PMGKY: Home Secretary directs strict compliance of DFS guidelines It may be recalled that the Centre had in April disbursed through direct benefit transfer (DBT) the first instalment of ₹500 to 20.05 crore PMJDY women beneficiaries involving an aggregate amount of ₹10,025 crore as part of PMGKY. In all, the Government intends to transfer ₹1,500 to each PMJDY woman beneficiary over three instalments under the PMGKP. More than 38 crore accounts have been opened under PMJDY as on April 1, 2020. Also ReadFinMin asks banks to stagger ex-gratia payment to women PMJDY beneficiaries Using the digital payment infrastructure, more than 33 crore poor people have been directly given financial assistance of ₹31,235 crore (as of April 22, 2020) under ₹1.7 lakh crore PMGKP announced by the Finance Minister Nirmala Sitharaman on March 26 to protect them from the impact of the lockdown due to Covid-19.
2 May 08:58 • BusinessLine • https://www.thehindubusinessline.com/economy/policy/dbt-under-pmgkp-second-instalment-of-500-being-credited-to-pmjdy-women-beneficiaries-says-finmin/article31488019.eceRating: 1.98
Coronavirus lockdown 3.0: Women Jan Dhan account holders to get second Rs 500 instalment from May 4
The fund transfer plan has been staggered over a period of five days to avoid rush at bank branches The women Jan Dhan bank account holders will start getting the second installment of Rs 500 from May 4. The banks will allow customers whose account number ends with 0 and 1 to withdraw the money on Monday, according to the staggered withdrawal plan laid down by the government for May. On March 26, the government announced an ex-gratia payment of Rs 500 to women Jan Dhan account holders for the next three months, beginning April. "Instalment of Rs.500 for the month of May has been sent to the bank accounts of PMJDY women beneficiaries under Pradhan Mantri Garib Kalyan Package," Financial Services Secretary Debasish Panda tweeted on Saturday. The fund transfer plan has been staggered over a period of five days to avoid rush at bank branches. The customers with account numbers ending with 0 and 1 can withdraw money on Monday. The ones with account numbers ending with 2 and 3 can withdraw on May 5. Similarly, the bank account holders with numbers 4 and 5 on May 6, numbers 6 and 7 can do so on May 8 and numbers 8 and 9 on May 11, respectively. The beneficiaries can withdraw money at any bank branch on any day at their convenience after May 11. In April, as many as 20.05 crore women Jan Dhan account holders received Rs 500 each in their accounts as the first installment. The total disbursement under the head was Rs 10,025 crore as on April 22. In March, the government announced a Rs 1.7 lakh crore relief package aimed at providing a safety net for those hit the hardest by coronavirus lockdown, along with insurance cover for frontline medical personnel. Also read: Coronavirus India Live Updates: 2,293 COVID-19 cases in 24 hours, biggest jump after lockdown extension Also read: Coronavirus crisis: Donald Trump hints at imposing new tariff on China for mishandling virus outbreak
2 May 10:22 • Business Today • https://www.businesstoday.in/current/economy-politics/coronavirus-lockdown-30-women-jan-dhan-account-holders-to-get-second-rs-500-instalment-from-may-4/story/402683.htmlRating: 2.10
Jan Dhan Yojana: Women Account Holders to Get Second Installment of Rs 500 From May 4
New Delhi: The Centre will start crediting the second installment of Rs 500 to over four crore Jan Dhan accounts of poor women from May 4, in line with the announcement made by Finance Minister Nirmala Sitharaman in March. As part of a relief package in view of the lockdown due to the coronavirus outbreak, the Narendra Modi-led government on March 26 had announced that an ex-gratia payment of Rs 500 would be credited to women Jan Dhan account holders for the next three months, starting from April. Also Read - ‘Highly Risky to Bring Back Indians From Abroad Without COVID-19 Tests,’ Kerala CM Writes to PM Modi “Instalment of Rs.500 for the month of May has been sent to the bank A/cs of PMJDY women beneficiaries under Pradhan Mantri Garib Kalyan Package. “Beneficiaries are requested to follow the schedule shared below to visit banks & CSPs. Money can also be withdrawn via ATMs & BCs,” Financial Services Secretary Debasish Panda said in a tweet today. Also Read - Ripples After 'Internal Report' Projects US Will Witness 3000 COVID-19 Deaths Per Day by June 1 Furthermore he said,”The transfer has been staggered over a period of five days to avoid rush at the bank branches. This will help in ensuring social distancing and avoid overcrowding in banks.” Also Read - Lockdown 3.0: To Avoid Crowding, Arunachal Pradesh Allows Shops to Open on Rotational Basis As per the schedule, women account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY) having account number with last digit as 0 and 1 will get the money in their account on May 4, while accounts ending with 2 or 3 can approach the bank on May 5. On May 6, beneficiaries with account numbers ending with 4 or 5 can collect their money, while accounts ending with 6 or 7 may withdraw on May 8. The last tranche would be remitted on May 11 for account numbers ending with 8 or 9, the tweet said. In case of emergency, one can withdraw the money immediately. However, for orderly disbursal, one must follow the banks’ payment plan, it said. Beneficiaries may withdraw any day at their convenience after May 11, it added. Beneficiaries are encouraged to use the neighbourhood ATMs with RuPay cards, Bank Mitras and customer service points (CSPs) as much as possible to avoid crowding at the branches, it said. “Please note that there will be no charges for withdrawing money from other bank ATMs, at present, as per the government directives,” it said. Last month in April, around 20.05 crore women Jan Dhan account holders received Rs 500 each in their accounts as the first installment. The total disbursement under the head was Rs 10,025 crore as on April 22. (With agency inputs) For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Business Latest News on India.com. Comments - Join the Discussion
2 May 08:30 • India News, Breaking News, Entertainment News | India.com • https://www.india.com/business/jan-dhan-yojana-women-account-holders-to-get-second-installment-of-rs-500-from-may-4-4017453/Rating: 0.30
Second installment of ₹500 to be credited to Jan Dhan accounts from May 4: Finance Ministry
Women Jan Dhan bank account holders will start getting the second installment of ₹500 from Monday in line with the announcement made by Finance Minister Nirmala Sitharaman in March. To help the poor tide over the COVID-19 crisis, the government had on March 26 said ex-gratia payment of ₹500 would be credited to women Jan Dhan account holders for the next three months, starting from April. “Installment of ₹500 for the month of May has been sent to the bank accounts of PMJDY women beneficiaries under Pradhan Mantri Garib Kalyan Package. “Beneficiaries are requested to follow the schedule shared below to visit banks & CSPs. Money can also be withdrawn via ATMs & BCs,” Financial Services Secretary Debasish Panda said in a tweet on Saturday. The transfer has been staggered over a period of five days to avoid rush at the bank branches. This will help in ensuring social distancing and avoid overcrowding in banks, he said. Also read | Centre credits ₹500 each to over 4.07 crore women Jan Dhan account holders As per the schedule, women account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY) having account number with last digit as 0 and 1 will get the money in their account on May 4, while accounts ending with 2 or 3 can approach the bank on May 5. On May 6, beneficiaries with account numbers ending with 4 or 5 can collect their money, while accounts ending with 6 or 7 may withdraw on May 8. The last tranche would be remitted on May 11 for account numbers ending with 8 or 9, the tweet said. In case of emergency, one can withdraw the money immediately. However, for orderly disbursal, one must follow the banks’ payment plan, it said. Beneficiaries may withdraw any day at their convenience after May 11, it added. Beneficiaries are encouraged to use the neighbourhood ATMs with RuPay cards, Bank Mitras and customer service points (CSPs) as much as possible to avoid crowding at the branches, it said. “Please note that there will be no charges for withdrawing money from other bank ATMs, at present, as per the government directives,” it said. During April as many as 20.05 crore women Jan Dhan account holders received ₹500 each in their accounts as the first installment. The total disbursement under the head was ₹10,025 crore as on April 22. In a bid to mitigate hardship caused by the coronavirus crisis, the government in late March announced a ₹1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly.
2 May 09:26 • The Hindu • https://www.thehindu.com/news/national/second-installment-of-500-to-be-credited-to-jan-dhan-accounts-from-monday-finance-ministry/article31488116.eceRating: 0.30
Women Jan Dhan account holders to receive 2nd installment from Mon: FinMin
Banks will start transferring the second instalment of Rs 500 to women Jan Dhan bank account holders from Monday onwards. The government had on March 26 said ex-gratia payment of Rs 500 would be credited to women Jan Dhan account holders for the next three months, starting from April, to help the poor tide over the Covid-19 crisis. "Instalment of Rs.500 for the month of May has been sent to the bank A/cs of PMJDY women beneficiaries under Pradhan Mantri Garib Kalyan Package." "Beneficiaries are requested to follow the schedule shared below to visit banks &CSPs. Money can also be withdrawn via ATMs & BCs," Financial Services Secretary Debasish Panda said in a tweet on Saturday. The transfer has been staggered over a period of five days to avoid rush at the bank branches. This will help in ensuring social distancing and avoid overcrowding in banks, he said. As per the schedule, women account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY) having account number with last digit as 0 and 1 will get the money in their account on May 4, while accounts ending with 2 or 3 can approach the bank on May 5. On May 6, beneficiaries with account numbers ending with 4 or 5 can collect their money, while accounts ending with 6 or 7 may withdraw on May 8. ALSO READ: Women Jan Dhan account holders to get cash benefits in a staggered manner The last tranche would be remitted on May 11 for account numbers ending with 8 or 9, the tweet said. In case of emergency, one can withdraw the money immediately. However, for orderly disbursal, one must follow the banks' payment plan, it said. Beneficiaries may withdraw any day at their convenience after May 11. "This will help in ensuring social distancing and overcrowding in banks.", it added. Beneficiaries are encouraged to use the neighbourhood ATMs with RuPay cards, Bank Mitras and customer service points (CSPs) as much as possible to avoid crowding at the branches, it said. "Please note that there will be no charges for withdrawing money from other bank ATMs, at present, as per the government directives," it said. During April as many as 20.05 crore women Jan Dhan account holders received Rs 500 each in their accounts as the first installment. The total disbursement under the head was Rs 10,025 crore as on April 22. In a bid to mitigate hardship caused by the coronavirus crisis, the government in late March announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly.
2 May 10:01 • Business-Standard • https://www.business-standard.com/article/current-affairs/women-jan-dhan-account-holders-to-receive-2nd-installment-from-mon-finmin-120050200548_1.htmlRating: 0.30
Three quarters of British truckers expect to go out of business within just 2 months due to the coronavirus outbreak
2 May 07:51
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Average US: 17.075
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Weighted average IN: 2.822784127396369
Three quarters of British truckers expect to go out of business within just 2 months due to the coronavirus outbreak
UK truckers are warning Boris Johnson's government that they could go out of business in weeks without more financial support for dealing with the impact of the coronavirus on their industry. The truckers are playing a vital role in transporting essentials like food and PPE around Britain during the coronavirus pandemic, but their futures still look bleak. Three-quarters say they don't expect their jobs to survive beyond two months, a stark new survey, conducted in the latter part of April and published this weekend, has found. The Road Haulage Association (RHA), the trade body representing the trucking industry in the UK, asked its members a series of questions about how the outbreak of the COVID-19 virus had affected their trade. When asked by the RHA how long they expect their livelihoods to survive at current volume, 75% said two months or less, while 52% said no more than a month. 13% said they expected to go out of business within two weeks. Richard Burnett, the RHA's Chief Executive, this week, wrote to the government asking for five emergency measures to help the truckers whose cashflow has been torpedoed by the outbreak of the virus and subsequent nationwide lockdown. They included a temporary suspension of business rates and fuel tax, plus a retention scheme to cover the cost of trucks not in action. Industry figures have warned the UK government that most haulage operations in the UK are small-to-medium sized companies that will struggle to survive for much longer if their cashflow problems continue. Many already have small profit margins and are reluctant to apply for government loans, as they don't want to take on more debt. The pain being inflicted on the industry is particularly acute for truckers moving loads, which aren't food and PPE. Demand for other goods like clothing has plummeted amid the COVID-19 outbreak, while the UK government's strict social distancing measures have forced shops, restaurants, and factories across the country to close. "If the economy is to recover from this, it is important that we can switch on the supply chain as individual sectors begin their recovery," Burnett said this week. "No-one knows for sure when that will be, but we must make sure that the industry is up and ready to go at very short notice. We recognize that we need to play the fullest role possible in the UK's recovery and these measures would ensure we can do just that." The RHA findings published this weekend illustrate the scale of the challenge facing the trucking sector. LoadingSomething is loading. 73% of respondents said their cash flow had significantly reduced or worsened, with 13% saying they have no cash flow whatsoever. 56% have applied to the UK government's furlough scheme to cover the wages of out-of-work staff. A figure in the logistics industry, who wished not to be named, told Business Insider: "The situation is dire. "Ports are suffering, hauliers in non-food or PPE segments are really struggling and facing collapse really struggling, and even those carrying food are facing increasingly tough competition." A UK government spokesperson told Business Insider:"Hauliers are vital to the nation's battle against Covid-19, and to help support the sector we have made changes to road transport operator licensing, vehicle testing, driver medical renewals, driver training and drivers hours. "We continue to work with the sector and encourage all firms to make use of the unprecedented package of measures announced by the Chancellor, including £330bn of government backed loans, cash grants and support with tax bills, to help businesses through this difficult time." However, opposition parties said ministers needed to give industry more support. Responding to the RHA findings, Labour's Shadow Transport Secretary Jim McMahon said: "Our lorry drivers are essential workers who are keeping the supermarket shelves stocked and delivering other vital supplies. "Much of this is imported but there are fewer goods going in the opposite direction, putting a big strain on the viability of road hauliers. "There are real concerns that the furlough scheme needs to have greater flexibility in sectors like road transport. The government should listen to industry and the trade unions and give them the support that employers and workers need to survive the crisis." Bill Esterson, Labour MP and shadow trade minister, said: "We have to keep this essential industry going to maintain our food supply and viable for us to restart international trade when we eventually emerge from the crisis." Sarah Olney, the Liberal Democrat Transport and International Trade spokesperson, told Business Insider "the Government must do whatever is necessary to support haulage companies. "This is about protecting vital supply lines for food and medicine as the coronavirus crisis continues." She added: "Liberal Democrats are also calling on Ministers to listen to business and find an urgent fix to the business loans scheme, so that small businesses can access the finance they need. Otherwise, people's livelihoods are at risk." Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story. Get the latest coronavirus business & economic impact analysis from Business Insider Intelligence on how COVID-19 is affecting industries.
2 May 07:51 • Business Insider • https://www.businessinsider.com/coronavirus-three-quarters-of-uk-hauliers-expect-to-collapse-in-two-months-2020-5Rating: 4.40
Three quarters of British truckers expect to go out of business within just 2 months due to the coronavirus outbreak
UK truckers are warning Boris Johnson’s government that they could go out of business in weeks without more financial support for dealing with the impact of the coronavirus on their industry. The truckers are playing a vital role in transporting essentials like food and PPE around Britain during the coronavirus pandemic, but their futures still look bleak. Three-quarters say they don’t expect their jobs to survive beyond two months, a stark new survey, conducted in the latter part of April and published this weekend, has found. The Road Haulage Association (RHA), the trade body representing the trucking industry in the UK, asked its members a series of questions about how the outbreak of the COVID-19 virus had affected their trade. When asked by the RHA how long they expect their livelihoods to survive at current volume, 75% said two months or less, while 52% said no more than a month. 13% said they expected to go out of business within two weeks. Richard Burnett, the RHA’s Chief Executive, this week, wrote to the government asking for five emergency measures to help the truckers whose cashflow has been torpedoed by the outbreak of the virus and subsequent nationwide lockdown. They included a temporary suspension of business rates and fuel tax, plus a retention scheme to cover the cost of trucks not in action. Industry figures have warned the UK government that most haulage operations in the UK are small-to-medium sized companies that will struggle to survive for much longer if their cashflow problems continue. Many already have small profit margins and are reluctant to apply for government loans, as they don’t want to take on more debt. The pain being inflicted on the industry is particularly acute for truckers moving loads, which aren’t food and PPE. Demand for other goods like clothing has plummeted amid the COVID-19 outbreak, while the UK government’s strict social distancing measures have forced shops, restaurants, and factories across the country to close. “If the economy is to recover from this, it is important that we can switch on the supply chain as individual sectors begin their recovery,” Burnett said this week. “No-one knows for sure when that will be, but we must make sure that the industry is up and ready to go at very short notice. We recognise that we need to play the fullest role possible in the UK’s recovery and these measures would ensure we can do just that.” The RHA findings published this weekend illustrate the scale of the challenge facing the trucking sector. 73% of respondents said their cash flow had significantly reduced or worsened, with 13% saying they have no cash flow whatsoever. 56% have applied to the UK government’s furlough scheme to cover the wages of out-of-work staff. A figure in the logistics industry, who wished not to be named, told Business Insider: “The situation is dire. “Ports are suffering, hauliers in non-food or PPE segments are really struggling and facing collapse really struggling, and even those carrying food are facing increasingly tough competition.” A UK government spokesperson told Business Insider:”Hauliers are vital to the nation’s battle against Covid-19, and to help support the sector we have made changes to road transport operator licensing, vehicle testing, driver medical renewals, driver training and drivers hours. “We continue to work with the sector and encourage all firms to make use of the unprecedented package of measures announced by the Chancellor, including £330bn of government backed loans, cash grants and support with tax bills, to help businesses through this difficult time.” However, opposition parties said ministers needed to give industry more support. Responding to the RHA findings, Labour’s Shadow Transport Secretary Jim McMahon said: “Our lorry drivers are essential workers who are keeping the supermarket shelves stocked and delivering other vital supplies. “Much of this is imported but there are fewer goods going in the opposite direction, putting a big strain on the viability of road hauliers. “There are real concerns that the furlough scheme needs to have greater flexibility in sectors like road transport. The government should listen to industry and the trade unions and give them the support that employers and workers need to survive the crisis.” Bill Esterson, Labour MP and shadow trade minister, said: “We have to keep this essential industry going to maintain our food supply and viable for us to restart international trade when we eventually emerge from the crisis.” Sarah Olney, the Liberal Democrat Transport and International Trade spokesperson, told Business Insider “the Government must do whatever is necessary to support haulage companies. “This is about protecting vital supply lines for food and medicine as the coronavirus crisis continues.” She added: “Liberal Democrats are also calling on Ministers to listen to business and find an urgent fix to the business loans scheme, so that small businesses can access the finance they need. Otherwise, people’s livelihoods are at risk.”
2 May 07:51 • Business Insider Australia • https://www.businessinsider.com.au/coronavirus-three-quarters-of-uk-hauliers-expect-to-collapse-in-two-months-2020-5Rating: 0.30
Three quarters of British truckers expect to go out of business within just 2 months due to the coronavirus outbreak
UK truckers are warning Boris Johnson’s government that they could go out of business in weeks without more financial support for dealing with the impact of the coronavirus on their industry. The truckers are playing a vital role in transporting essentials like food and PPE around Britain during the coronavirus pandemic, but their futures still look bleak. Three-quarters say they don’t expect their jobs to survive beyond two months, a stark new survey, conducted in the latter part of April and published this weekend, has found. The Road Haulage Association (RHA), the trade body representing the trucking industry in the UK, asked its members a series of questions about how the outbreak of the COVID-19 virus had affected their trade. When asked by the RHA how long they expect their livelihoods to survive at current volume, 75% said two months or less, while 52% said no more than a month. 13% said they expected to go out of business within two weeks. Richard Burnett, the RHA’s Chief Executive, this week, wrote to the government asking for five emergency measures to help the truckers whose cashflow has been torpedoed by the outbreak of the virus and subsequent nationwide lockdown. They included a temporary suspension of business rates and fuel tax, plus a retention scheme to cover the cost of trucks not in action. Industry figures have warned the UK government that most haulage operations in the UK are small-to-medium sized companies that will struggle to survive for much longer if their cashflow problems continue. Many already have small profit margins and are reluctant to apply for government loans, as they don’t want to take on more debt. The pain being inflicted on the industry is particularly acute for truckers moving loads, which aren’t food and PPE. Demand for other goods like clothing has plummeted amid the COVID-19 outbreak, while the UK government’s strict social distancing measures have forced shops, restaurants, and factories across the country to close. “If the economy is to recover from this, it is important that we can switch on the supply chain as individual sectors begin their recovery,” Burnett said this week. “No-one knows for sure when that will be, but we must make sure that the industry is up and ready to go at very short notice. We recognize that we need to play the fullest role possible in the UK’s recovery and these measures would ensure we can do just that.” The RHA findings published this weekend illustrate the scale of the challenge facing the trucking sector. 73% of respondents said their cash flow had significantly reduced or worsened, with 13% saying they have no cash flow whatsoever. 56% have applied to the UK government’s furlough scheme to cover the wages of out-of-work staff. A figure in the logistics industry, who wished not to be named, told Business Insider: “The situation is dire. “Ports are suffering, hauliers in non-food or PPE segments are really struggling and facing collapse really struggling, and even those carrying food are facing increasingly tough competition.” A UK government spokesperson told Business Insider:”Hauliers are vital to the nation’s battle against Covid-19, and to help support the sector we have made changes to road transport operator licensing, vehicle testing, driver medical renewals, driver training and drivers hours. “We continue to work with the sector and encourage all firms to make use of the unprecedented package of measures announced by the Chancellor, including £330bn of government backed loans, cash grants and support with tax bills, to help businesses through this difficult time.” However, opposition parties said ministers needed to give industry more support. Responding to the RHA findings, Labour’s Shadow Transport Secretary Jim McMahon said: “Our lorry drivers are essential workers who are keeping the supermarket shelves stocked and delivering other vital supplies. “Much of this is imported but there are fewer goods going in the opposite direction, putting a big strain on the viability of road hauliers. “There are real concerns that the furlough scheme needs to have greater flexibility in sectors like road transport. The government should listen to industry and the trade unions and give them the support that employers and workers need to survive the crisis.” Bill Esterson, Labour MP and shadow trade minister, said: “We have to keep this essential industry going to maintain our food supply and viable for us to restart international trade when we eventually emerge from the crisis.” Sarah Olney, the Liberal Democrat Transport and International Trade spokesperson, told Business Insider “the Government must do whatever is necessary to support haulage companies. “This is about protecting vital supply lines for food and medicine as the coronavirus crisis continues.” She added: “Liberal Democrats are also calling on Ministers to listen to business and find an urgent fix to the business loans scheme, so that small businesses can access the finance they need. Otherwise, people’s livelihoods are at risk.”
2 May 10:58 • Business Insider Nederland • https://www.businessinsider.nl/coronavirus-three-quarters-of-uk-hauliers-expect-to-collapse-in-two-months-2020-5/Rating: 0.30
Three quarters of British truckers expect to go out of business within just 2 months due to the coronavirus outbreak
UK truckers are warning Boris Johnson’s government that they could go out of business in weeks without more financial support for dealing with the impact of the coronavirus on their industry. The truckers are playing a vital role in transporting essentials like food and PPE around Britain during the coronavirus pandemic, but their futures still look bleak. Three-quarters say they don’t expect their jobs to survive beyond two months, a stark new survey, conducted in the latter part of April and published this weekend, has found. The Road Haulage Association (RHA), the trade body representing the trucking industry in the UK, asked its members a series of questions about how the outbreak of the COVID-19 virus had affected their trade. When asked by the RHA how long they expect their livelihoods to survive at current volume, 75% said two months or less, while 52% said no more than a month. 13% said they expected to go out of business within two weeks. Richard Burnett, the RHA’s Chief Executive, this week, wrote to the government asking for five emergency measures to help the truckers whose cashflow has been torpedoed by the outbreak of the virus and subsequent nationwide lockdown. They included a temporary suspension of business rates and fuel tax, plus a retention scheme to cover the cost of trucks not in action. Industry figures have warned the UK government that most haulage operations in the UK are small-to-medium sized companies that will struggle to survive for much longer if their cashflow problems continue. Many already have small profit margins and are reluctant to apply for government loans, as they don’t want to take on more debt. The pain being inflicted on the industry is particularly acute for truckers moving loads, which aren’t food and PPE. Demand for other goods like clothing has plummeted amid the COVID-19 outbreak, while the UK government’s strict social distancing measures have forced shops, restaurants, and factories across the country to close. “If the economy is to recover from this, it is important that we can switch on the supply chain as individual sectors begin their recovery,” Burnett said this week. “No-one knows for sure when that will be, but we must make sure that the industry is up and ready to go at very short notice. We recognize that we need to play the fullest role possible in the UK’s recovery and these measures would ensure we can do just that.” The RHA findings published this weekend illustrate the scale of the challenge facing the trucking sector. 73% of respondents said their cash flow had significantly reduced or worsened, with 13% saying they have no cash flow whatsoever. 56% have applied to the UK government’s furlough scheme to cover the wages of out-of-work staff. A figure in the logistics industry, who wished not to be named, told Business Insider: “The situation is dire. “Ports are suffering, hauliers in non-food or PPE segments are really struggling and facing collapse really struggling, and even those carrying food are facing increasingly tough competition.” A UK government spokesperson told Business Insider:”Hauliers are vital to the nation’s battle against Covid-19, and to help support the sector we have made changes to road transport operator licensing, vehicle testing, driver medical renewals, driver training and drivers hours. “We continue to work with the sector and encourage all firms to make use of the unprecedented package of measures announced by the Chancellor, including £330bn of government backed loans, cash grants and support with tax bills, to help businesses through this difficult time. However, opposition parties said ministers needed to give industry more support. Responding to the RHA findings, Labour’s Shadow Transport Secretary Jim McMahon said: “Our lorry drivers are essential workers who are keeping the supermarket shelves stocked and delivering other vital supplies. “Much of this is imported but there are fewer goods going in the opposite direction, putting a big strain on the viability of road hauliers. “There are real concerns that the furlough scheme needs to have greater flexibility in sectors like road transport. The government should listen to industry and the trade unions and give them the support that employers and workers need to survive the crisis.” Bill Esterson, Labour MP and shadow trade minister, said: “We have to keep this essential industry going to maintain our food supply and viable for us to restart international trade when we eventually emerge from the crisis.” Sarah Olney, the Liberal Democrat Transport and International Trade spokesperson, told Business Insider “the Government must do whatever is necessary to support haulage companies. “This is about protecting vital supply lines for food and medicine as the coronavirus crisis continues.” She added: “Liberal Democrats are also calling on Ministers to listen to business and find an urgent fix to the business loans scheme, so that small businesses can access the finance they need. Otherwise, people’s livelihoods are at risk.”
2 May 07:51 • Business Insider Malaysia • https://www.businessinsider.my/coronavirus-three-quarters-of-uk-hauliers-expect-to-collapse-in-two-months-2020-5Rating: 0.30
Air New Zealand Signs Government Deal To Take Cargo To The World
2 May 11:13
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Air New Zealand Signs Government Deal To Take Cargo To The World
Air New Zealand Cargo is entering a partnership with the Government to ensure critical cargo transport lines are maintained. The International Airfreight Capacity agreement with the Ministry of Transport will allow exporters and importers the ability to access key markets in a world where available air freight capacity is reduced due to the COVID-19 pandemic. Air New Zealand General Manager Cargo Rick Nelson says cargo customers will be able to access capacity across Air New Zealand’s traditional network, with a handful of exceptions. “The new agreement means Air New Zealand can publish scheduled cargo services into key markets which will allow freight forwarders, exporters and importers to plan and operate their logistics supply chains with certainty. “We are working to offer connectivity to and from the United Kingdom and Europe, as well as Houston and Chicago via Los Angeles and San Francisco, Hong Kong and Narita gateways. “This agreement will add significant value to New Zealand’s air cargo community, and we encourage the New Zealand forwarding, export and import communities to get behind these cargo options. Naturally, we hope the need to operate under an agreement of this nature will be a short-term business model and in time we’ll be able to revert to our traditional model as demand for passenger travel begins to pick up.” Ports the airline will not operate cargo flights to under the agreement are London and Buenos Aires. Singapore is also not included in the initial phase. © Scoop Media
2 May 11:13 • SCOOP • https://www.scoop.co.nz/stories/BU2005/S00034/air-new-zealand-signs-government-deal-to-take-cargo-to-the-world.htmRating: 0.30
International cargo flights ramp up - Twyford
Government support to help restore international air freight capacity has added 56 weekly cargo flights from New Zealand, with more to come, Transport Minister Phil Twyford announced today. The International Air Freight Capacity scheme adds capacity for high-value export cargo and maintains trade links with key global markets. It also ensures there are essential imports such as medical supplies. Phil Twyford says it is vital air freight capacity recovers as New Zealand responds to the COVID-19 global pandemic. "At the beginning of the pandemic, we moved quickly to support charter flights to ensure New Zealand had the crucial supplies it needs and to back our exporters. However, these flights only allowed businesses to export to a limited number of markets. "This scheme builds on that support, with a schedule of weekly flights to a greater number of global markets. This new schedule restores more export markets to more businesses and with greater frequency. "There is a huge demand for air freight, at a time when capacity is limited. This scheme helps provide certainty for business, while airlines and carriers respond to a changing world. "The $330 million scheme is short-term and market-led. Funding is provided to guarantee cargo on key routes under agreements with the carriers. Carriers then offer that capacity directly to freight customers on commercial terms. "We invited commercial proposals to deliver air freight capacity with key markets. The first successful applicants are Air New Zealand, China Airlines, Emirates, Freightways Express, Qantas and Tasman Cargo. We are working with other carriers, and expect to make further announcements shortly. "We are closely monitoring the international air freight market, and will respond based on how the COVID-19 situation evolves. As the market recovers, we will reassess the need for funding. "The Government set aside $600 million for the aviation sector as part of its $12.1 billion COVID-19 support package. Acknowledging the impacts of the pandemic on the domestic aviation sector, the Government has also provided immediate funding for local air freight and lifeline air services.
2 May 11:32 • www.voxy.co.nz • http://www.voxy.co.nz/politics/5/363921Rating: 0.30
Emirates SkyCargo set to connect New Zealand with key global markets
Dubai: Emirates SkyCargo has announced that that will be launching four weekly cargo services to New Zealand from May 3, 2020 to help connect businesses in the country to key trading partners across the globe. The air cargo carrier is working with the Government of New Zealand as part of its International Airfreight Capacity (IAFC) scheme to help facilitate the exports of key commodities from New Zealand to the rest of the world while ensuring that essential cargo continues to be transported into the country. Emirates SkyCargo will be operating 3 weekly Dubai-Auckland-Melbourne-Dubai flight rotations and a once a week Dubai-Sydney-Christchurch-Sydney-Dubai flight service operated by the carrier’s Boeing 777-300ER passenger freighters. Emirates SkyCargo will be providing a vital cargo lane for the exports of high quality exports from New Zealand including food items such as chilled meat, honey, dairy products, and seafood to various destinations in the Middle East and Europe. The flight service is also expected to help transport pharmaceuticals and medical appliances to markets in the Middle East, Europe and Africa. “Emirates SkyCargo is delighted to working with the Government of New Zealand to help connect fresh produce of the highest quality and other key exports from Auckland and Christchurch. We consider it our responsibility to ensure that we are able to facilitate adequate supply of food and other essential commodities to markets that we serve and also support exporters in New Zealand at the same time,” said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo. Emirates SkyCargo is operating dedicated cargo flights on its Boeing 777 freighters and Boeing 777-300ER passenger freighters to more than 60 destinations across six continents. Through a mix of scheduled flights and charter operations, the air cargo carrier has helped transport thousands of tonnes of vital protective equipment and food across the world during the Covid-19 pandemic.
2 May 07:44 • Gulf News • https://gulfnews.com/business/aviation/emirates-skycargo-set-to-connect-new-zealand-with-key-global-markets-1.1588405929155Rating: 3.21
New head of Alberta Energy Regulator wants to rebuild confidence in leadership
2 May 08:00
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4 articles
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New head of Alberta Energy Regulator wants to rebuild confidence in leadership
CALGARY — Like a sports coach coming off a disappointing season, the new head of the agency that regulates Alberta's heavily challenged energy industry knows he's got some work to do. "One (goal) is rebuilding confidence in the leadership internally," Laurie Pushor said in an interview. "Confidence in the public and government and the industry that we are a good team of people and that we're doing our best and that we're open to continuing to improve." Pushor, two weeks into the job, replaces Jim Ellis as boss of the Alberta Energy Regulator. Ellis left last November after investigators found serious mismanagement, misuse of about $2.3 million and a "culture of fear" among whistleblowers. "Improvement will include continuing to strengthen transparency and continuing to strengthen accountability for our performance," Pushor promised. That's not the only challenge he and the energy regulator face. There's an enormous backlog of abandoned and orphaned wells that will cost someone billions to clean up. There are difficult relationships between the regulator, First Nations and landowners. And there's the industry itself for which profits and reserves are declining. Don't count Alberta out yet, said Pushor. Notwithstanding the uncertainties of COVID-19 and international oil price wars, there's still money to be made, he said. "If you look at recovery rates and the innovation that industry is applying to known reserves, not only might we not be presiding over an industry in decline, but you might see a bit of a renaissance in conventional production." Rebuilding trust with First Nations is another priority for Pushor. In his previous job as Saskatchewan's deputy minister of energy and resources, he worked with a traditional knowledge-keeper, he said. "He is relentless in reminding me that it's about relationships," said Pushor, who promises plenty of face-to-face time with Indigenous leaders. "If you're not in a relationship, you're not going to be able to move things forward. We, as the regulator, need to be in a good relationship with First Nations." Pushor wants the same kind of contact with landowner groups, who have often been critical of how industry uses their land and treats them. "It'll start with three or four of the larger groups out there that have organized. I look forward to catching up and understanding their issues and seeing what can be done to move things ahead." When it comes to cleaning up wells, Pushor acknowledges he's got some work to do to grasp the legal ins and outs. Critics have long pushed for a legislated timeline for dealing with old infrastructure and say that the province's calculations on whether a well owner has the wherewithal for cleanup are antiquated. Pushor asks for a little time to dig into those issues. "The government's the policymaker," he said. "They're going to give us the framework they want us to operate in." There's an inevitable tension between business, environmental and public concerns, Pushor said. "That tension is real and it should be. What makes a regulator effective is ensuring that tension is balanced." He believes the public still has faith in the Alberta Energy Regulator, despite its internal and external problems. "Confidence in the industry and the regulator, while they may have eroded somewhat, remains relatively stable. But we can always do better and we should." This report by The Canadian Press was first published May 2, 2020 — By Bob Weber in Edmonton. Follow him on Twitter at @row1960 The Canadian Press
2 May 08:00 • KitchenerToday.com • https://www.kitchenertoday.com/national-news/new-head-of-alberta-energy-regulator-wants-to-rebuild-confidence-in-leadership-2318717Rating: 0.30
New head of Alberta Energy Regulator wants to rebuild confidence in leadership
CALGARY — Like a sports coach coming off a disappointing season, the new head of the agency that regulates Alberta’s heavily challenged energy industry knows he’s got some work to do. “One (goal) is rebuilding confidence in the leadership internally,” Laurie Pushor said in an interview. “Confidence in the public and government and the industry that we are a good team of people and that we’re doing our best and that we’re open to continuing to improve.” Pushor, two weeks into the job, replaces Jim Ellis as boss of the Alberta Energy Regulator. Ellis left last November after investigators found serious mismanagement, misuse of about $2.3 million and a “culture of fear” among whistleblowers. “Improvement will include continuing to strengthen transparency and continuing to strengthen accountability for our performance,” Pushor promised. That’s not the only challenge he and the energy regulator face. There’s an enormous backlog of abandoned and orphaned wells that will cost someone billions to clean up. There are difficult relationships between the regulator, First Nations and landowners. And there’s the industry itself for which profits and reserves are declining. Don’t count Alberta out yet, said Pushor. Notwithstanding the uncertainties of COVID-19 and international oil price wars, there’s still money to be made, he said. “If you look at recovery rates and the innovation that industry is applying to known reserves, not only might we not be presiding over an industry in decline, but you might see a bit of a renaissance in conventional production.” Rebuilding trust with First Nations is another priority for Pushor. In his previous job as Saskatchewan’s deputy minister of energy and resources, he worked with a traditional knowledge-keeper, he said. “He is relentless in reminding me that it’s about relationships,” said Pushor, who promises plenty of face-to-face time with Indigenous leaders. “If you’re not in a relationship, you’re not going to be able to move things forward. We, as the regulator, need to be in a good relationship with First Nations.” Pushor wants the same kind of contact with landowner groups, who have often been critical of how industry uses their land and treats them. “It’ll start with three or four of the larger groups out there that have organized. I look forward to catching up and understanding their issues and seeing what can be done to move things ahead.” When it comes to cleaning up wells, Pushor acknowledges he’s got some work to do to grasp the legal ins and outs. Critics have long pushed for a legislated timeline for dealing with old infrastructure and say that the province’s calculations on whether a well owner has the wherewithal for cleanup are antiquated. Pushor asks for a little time to dig into those issues. “The government’s the policymaker,” he said. “They’re going to give us the framework they want us to operate in.” There’s an inevitable tension between business, environmental and public concerns, Pushor said. “That tension is real and it should be. What makes a regulator effective is ensuring that tension is balanced.” He believes the public still has faith in the Alberta Energy Regulator, despite its internal and external problems. “Confidence in the industry and the regulator, while they may have eroded somewhat, remains relatively stable. But we can always do better and we should.” This report by The Canadian Press was first published May 2, 2020 — By Bob Weber in Edmonton. Follow him on Twitter at @row1960 The Canadian Press
2 May 09:00 • City NEWS 1130 • https://www.citynews1130.com/2020/05/02/new-head-of-alberta-energy-regulator-wants-to-rebuild-confidence-in-leadership/Rating: 0.77
New head of Alberta Energy Regulator wants to rebuild confidence in leadership
CALGARY — Like a sports coach coming off a disappointing season, the new head of the agency that regulates Alberta’s heavily challenged energy industry knows he’s got some work to do. “One (goal) is rebuilding confidence in the leadership internally,” Laurie Pushor said in an interview. “Confidence in the public and government and the industry that we are a good team of people and that we’re doing our best and that we’re open to continuing to improve.” Pushor, two weeks into the job, replaces Jim Ellis as boss of the Alberta Energy Regulator. Ellis left last November after investigators found serious mismanagement, misuse of about $2.3 million and a “culture of fear” among whistleblowers. “Improvement will include continuing to strengthen transparency and continuing to strengthen accountability for our performance,” Pushor promised. That’s not the only challenge he and the energy regulator face. There’s an enormous backlog of abandoned and orphaned wells that will cost someone billions to clean up. There are difficult relationships between the regulator, First Nations and landowners. And there’s the industry itself for which profits and reserves are declining. Don’t count Alberta out yet, said Pushor. Notwithstanding the uncertainties of COVID-19 and international oil price wars, there’s still money to be made, he said. “If you look at recovery rates and the innovation that industry is applying to known reserves, not only might we not be presiding over an industry in decline, but you might see a bit of a renaissance in conventional production.” Rebuilding trust with First Nations is another priority for Pushor. In his previous job as Saskatchewan’s deputy minister of energy and resources, he worked with a traditional knowledge-keeper, he said. “He is relentless in reminding me that it’s about relationships,” said Pushor, who promises plenty of face-to-face time with Indigenous leaders. “If you’re not in a relationship, you’re not going to be able to move things forward. We, as the regulator, need to be in a good relationship with First Nations.” Pushor wants the same kind of contact with landowner groups, who have often been critical of how industry uses their land and treats them. “It’ll start with three or four of the larger groups out there that have organized. I look forward to catching up and understanding their issues and seeing what can be done to move things ahead.” When it comes to cleaning up wells, Pushor acknowledges he’s got some work to do to grasp the legal ins and outs. Critics have long pushed for a legislated timeline for dealing with old infrastructure and say that the province’s calculations on whether a well owner has the wherewithal for cleanup are antiquated. Pushor asks for a little time to dig into those issues. “The government’s the policymaker,” he said. “They’re going to give us the framework they want us to operate in.” There’s an inevitable tension between business, environmental and public concerns, Pushor said. “That tension is real and it should be. What makes a regulator effective is ensuring that tension is balanced.” He believes the public still has faith in the Alberta Energy Regulator, despite its internal and external problems. “Confidence in the industry and the regulator, while they may have eroded somewhat, remains relatively stable. But we can always do better and we should.” This report by The Canadian Press was first published May 2, 2020 — By Bob Weber in Edmonton. Follow him on Twitter at @row1960 The Canadian Press
2 May 08:00 • 680News • https://www.680news.com/2020/05/02/new-head-of-alberta-energy-regulator-wants-to-rebuild-confidence-in-leadership/Rating: 0.61
New head of Alberta Energy Regulator wants to rebuild confidence in leadership
CALGARY - Like a sports coach coming off a disappointing season, the new head of the agency that regulates Alberta's heavily challenged energy industry knows he's got some work to do. "One (goal) is rebuilding confidence in the leadership internally," Laurie Pushor said in an interview. "Confidence in the public and government and the industry that we are a good team of people and that we're doing our best and that we're open to continuing to improve." Pushor, two weeks into the job, replaces Jim Ellis as boss of the Alberta Energy Regulator. Ellis left last November after investigators found serious mismanagement, misuse of about $2.3 million and a "culture of fear" among whistleblowers. "Improvement will include continuing to strengthen transparency and continuing to strengthen accountability for our performance," Pushor promised. That's not the only challenge he and the energy regulator face. There's an enormous backlog of abandoned and orphaned wells that will cost someone billions to clean up. There are difficult relationships between the regulator, First Nations and landowners. And there's the industry itself for which profits and reserves are declining. Don't count Alberta out yet, said Pushor. Notwithstanding the uncertainties of COVID-19 and international oil price wars, there's still money to be made, he said. "If you look at recovery rates and the innovation that industry is applying to known reserves, not only might we not be presiding over an industry in decline, but you might see a bit of a renaissance in conventional production." Rebuilding trust with First Nations is another priority for Pushor. In his previous job as Saskatchewan's deputy minister of energy and resources, he worked with a traditional knowledge-keeper, he said. "He is relentless in reminding me that it's about relationships," said Pushor, who promises plenty of face-to-face time with Indigenous leaders. "If you're not in a relationship, you're not going to be able to move things forward. We, as the regulator, need to be in a good relationship with First Nations." Pushor wants the same kind of contact with landowner groups, who have often been critical of how industry uses their land and treats them. "It'll start with three or four of the larger groups out there that have organized. I look forward to catching up and understanding their issues and seeing what can be done to move things ahead." When it comes to cleaning up wells, Pushor acknowledges he's got some work to do to grasp the legal ins and outs. Critics have long pushed for a legislated timeline for dealing with old infrastructure and say that the province's calculations on whether a well owner has the wherewithal for cleanup are antiquated. Pushor asks for a little time to dig into those issues. "The government's the policymaker," he said. "They're going to give us the framework they want us to operate in." There's an inevitable tension between business, environmental and public concerns, Pushor said. "That tension is real and it should be. What makes a regulator effective is ensuring that tension is balanced." He believes the public still has faith in the Alberta Energy Regulator, despite its internal and external problems. "Confidence in the industry and the regulator, while they may have eroded somewhat, remains relatively stable. But we can always do better and we should." This report by The Canadian Press was first published May 2, 2020 — By Bob Weber in Edmonton. Follow him on Twitter at @row1960
2 May 08:00 • iNFOnews.ca • https://infotel.ca/newsitem/alta-energy-regulator/cp332000952Rating: 0.30
Major change to Tesco delivery rules to help shoppers get a slot
2 May 08:00
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3 articles
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Best date: 2 May 08:00
Average US: 14.5
Weighted average US: 10.95868987148478
Average GB: 36.03333333333333
Weighted average GB: 33.40194316839494
Average IN: 8.966666666666665
Weighted average IN: 6.913198640756799
Major change to Tesco delivery rules to help shoppers get a slot
Supermarket giant Tesco has introduced a new rule affecting its home delivery service which it hopes will allow more customers to benefit. It comes after Tesco's CEO apologised to customers who had been left unable to get a slot and acknowledged online shopping is an area of "concern and frustration". Tesco has already limited customers to an 80 item shop to prevent food shortages and free up more space in delivery vans for more orders. It has also increased the number of online orders every week from 590,000 in the first week of the crisis to more than one million this week. This will be increased to 1.2 million slots in the next two weeks. However, the supermarket is now limited people's accounts, allowing them only one order per week in a step to help increase the number of delivery slots available, reports MirrorOnline. The new rule, which was confirmed by Tesco on Twitter, applies to all customers including those on the vulnerable list and with a Delivery Saver account. Replying to a customer, Tesco said: "Thanks for getting in touch. Your account will be limited to one order per week. "We've introduced a limit of one order per week, to help more customers secure a delivery slot. "One slot a week applies to all Tesco Customers, not just those with a Delivery Saver Plan."
2 May 08:00 • Liverpool Echo • https://www.liverpoolecho.co.uk/whats-on/shopping/tesco-online-delivery-slot-availability-18183780Rating: 0.83
Morrisons and Deliveroo are now delivering beer and wine to your doorstep in 30 minutes
SHOPPERS can now have alcohol delivered straight to their homes from their nearest Morrisons in just half an hour - thanks to its partnership with Deliveroo. From this weekend, red and white wine, beer and lager will be available to customers from Morrisons supermarkets on the Deliveroo app. The delivery service already gives its customers a chance to purchase alcohol from their nearest off licence shops, but it is thought that this is the first time a supermarket is selling alcohol through the app. Morrisons announced its partnership with the delivery service two weeks ago as a way to help people who are unable to leave their homes or find an online delivery slot. The items are picked at the local Morrisons store and dropped off by a Deliveroo rider. Ordering hours are also being extended to 9.30pm in the majority of stores. A spokesman for Morrisons said the prices on the app will remain the same as instore prices - but there is a £4.99 delivery fee for non Deliveroo Plus customers. The Morrisons-Deliveroo service is available from more than 130 Morrisons stores across the UK. To find your nearest branch, use Morrisons shop locator tool. Shoppers must have ID to receive the order from the rider and please remember to be Drinkaware. Last week Morrisons announced it was extending its opening hours to ease congestion with shoppers. Deliveroo has also been running its no-contact delivery service since March to help prevent the spread of the illness. And we reveal perfect wine pairings for your isolation diet. scoop@thesun.co.uk
2 May 09:49 • The Scottish Sun • https://www.thescottishsun.co.uk/money/5554176/morrisons-deliveroo-beer-wine-delivery/Rating: 0.30
The new system which makes it easier to secure supermarket home delivery slots
With hundreds of thousands of people across the UK ordering food online during the Covid-19 lockdown, securing a supermarket delivery slot has not been easy. Major chains are understandably giving priority to vulnerable and elderly customers, encouraging people who are able to visit stores to do so. Delivery slots were released weeks in advance before the lockdown was enforced, but to help manage demand many supermarkets such as Asda are now only releasing availability one week in advance. However, there is a website which acts as a 'delivery slot finder' which will search and notify you when a delivery slot at any of the big supermarkets becomes available, reports Liverpool Echo. Shopping Slot was founded by 22-year-old Jason Moore, who was later joined by 24-year-old Sabrina Stocker, who has previously appeared on BBC's The One Show and The Apprentice in 2018. Their website currently searches across all main supermarkets and will soon cover local companies too. Speaking about why he decided to design the website, Jason said: "I was spending hours online trying to reserve spaces, so I designed a website which automated the process. "Initially, this was for my family and friends, but I thought it would be nationally beneficial for those elderly, vulnerable and isolating." The searches are free for users and hopes to save them time continuously refreshing supermarket websites. Users need to enter their postcodes, press search and their results are instantly brought up. If there are no current slot available, which we predict it to be the case across most stores at the moment, users have the option to upgrade to be emailed as soon as one becomes available. Sabrina said: "My grandparents couldn’t leave the house and my family are isolating so we couldn’t deliver her food shop this week. "Using Shopping Slot, I was able to book her a next day delivery slot from Iceland and was so grateful. I want Shopping Slot to become a national brand to help others in need." Jason and Sabrina are hoping their website will help millions of vulnerable or elderly shoppers or anyone self isolating who is currently finding shopping online impossible. You can visit the website here.
2 May 05:00 • BristolLive • https://www.bristolpost.co.uk/whats-on/shopping/new-system-makes-easier-secure-4088716Rating: 0.30
Sebi directs mutual funds to share data on holdings in unlisted bonds
2 May 06:52
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Sebi directs mutual funds to share data on holdings in unlisted bonds
In order to meet redemption pressure, fund managers are struggling to either sell or pledge top-rated liquid papers to raise money Market regulator Securities & Exchange Board of India (Sebi) has directed mutual funds (MFs) to disclose data of all holdings in unlisted bonds - securities that cannot be traded in a frozen bond market. The move comes a week after one of the country's oldest asset management companies (AMC), Franklin Templeton Mutual Fund, voluntarily decided to close its six debt schemes effective from April 23, 2020. The AMC had cited redemption pressure and lack of liquidity in bond markets for the shutting of schemes. In order to meet redemption pressure, fund managers are struggling to either sell or pledge top-rated liquid papers to raise money. Sebi has asked the Association of Mutual Funds in India (AMFI) to furnish details - such as the assets under management of schemes holding unlisted non-convertible debentures (NCDs), unlisted bonds these have pumped in money and the share of such bonds in the scheme. Will RBI's Rs 50,000 crore boost for mutual funds allay investors' fears? The mutual fund body has also been asked to disclose investment break-up of portfolio of schemes holding unlisted NCDs, according to a report in The Economic Times. Funds have to give the details of residual maturities of all bonds (listed and unlisted) in each such scheme and whether an issuer holds other listed securities such as stocks, bonds, or CPs. In 2019, Sebi asked MFs to reduce their investment limit in unlisted NCDs to 15% by March 31, 2020, and 10% by June 30, 2020. However, considering a rise in bond yields, SEBI earlier this week eased the deadline by six months for MFs to comply with the cap on investments in unlisted NCDs. Unlisted NCDs have been facing a shortage of liquidity during the past few months as MFs were not allowed to invest in such securities (as well as unlisted commercial papers) since October 1, 2019. The worth of unlisted papers in six schemes that were closed by Franklin Templeton was 32% as of April 22, 2020. "Not all listed bonds are liquid, particularly in the current market. Probably SEBI is trying to assess the risk in the system and stress it could have if redemptions continue," said an industry person. "There are mid-sized companies, including NBFCs, which do not list their NCDs. In unlisted papers, the terms and conditions may not be readily available," said the person. Sebi had asked MFs to share details by Friday evening. "It's a bank holiday, exchanges are shut. We were not expecting any email from Sebi asking for data. The regulator has not said why it needs the information," a person with knowledge of the matter said. Amid coronavirus crisis, funds are facing redemption pressure which is denoted by a rise in bond yields. Many funds have sought a month-long loan line from banks - in place of the intra-day overdrafts they use in normal situations to meet the temporary cash-flow mismatch. BT Insight: Where 6 Franklin Templeton funds got stuck; recovery tougher On April 30, RBI decided to extend the regulatory benefits announced under the Standing Liquidity Facility-Mutual Fund (SLF-MF) scheme to all banks. To claim regulatory benefits, the banks would be required to submit a weekly statement on loans and advances extended to eligible entities. The decision came merely three days after the RBI on April 27 announced a Rs 50,000 crore special liquidity facility to ease pressure on mutual funds, which are facing liquidity crisis amid heightened volatility in capital markets in reaction to COVID-19 outbreak. This liquidity facility is available till May 11, 2020, or up to utilisation of the allocated amount, whichever is earlier. "When a scheme borrows, the interest cost to the extent of average portfolio yield is borne by the scheme. Most borrowings are at higher than portfolio yields and the spillover is borne by the AMC," a fund manager told ET. MF schemes are allowed to borrow up to 20% of the assets under management. By Aseem Thapliyal
2 May 06:52 • Business Today • https://www.businesstoday.in/current/corporate/sebi-mutual-funds-data-unlisted-bonds-amfis-rbi-franklin-templeton/story/402666.htmlRating: 2.10
Why has the Reserve Bank of India opened a liquidity window for mutual funds?
The story so far: In view of the possible redemption pressure that the mutual fund industry may face after the abrupt winding up of six debt schemes of Franklin Templeton Mutual Fund, the Reserve Bank of India (RBI) on Monday announced a special liquidity window of ₹50,000 crore for mutual funds. Under the scheme, the RBI will conduct repo (repurchase agreement) operations of 90-day tenor at a fixed repo rate of 4.40% for banks. According to the RBI, banks can avail funds under this facility exclusively for meeting the liquidity requirements of mutual fund houses by extending loans and undertaking outright purchase of and/or repos against the collateral of investment grade corporate bonds, commercial papers (CPs), debentures and certificates of deposit (CDs) held by the fund houses. The scheme will be open till May 11 or up to utilisation of the allocated amount, whichever is earlier. Also read | Why Franklin closed 6 funds The trigger for the liquidity window was Franklin Templeton Mutual Fund’s decision to wind up six debt funds that had a combined assets under management (AUM) of almost ₹26,000 crore. The fund house said that it decided to wind up the schemes to preserve the value at prevailing levels — their value had eroded because of redemption pressures and mark-to-market losses due to lack of liquidity on account of the COVID-19 pandemic. That led to fears that the debt funds of many other fund houses could face redemption pressure accentuated by the panic sparked by Franklin Templeton Mutual Fund’s sudden move. While the mutual fund industry clarified that what had happened at Franklin Templeton Mutual Fund was an isolated case, wider liquidity and other concerns persist. A couple of fund houses have already seen huge erosion in the net asset values of a few debt schemes post the Franklin Templeton episode due to mark-downs of their holdings. Incidentally, till date, banks have borrowed about ₹2,000 crore through the RBI liquidity window for mutual funds. Market observers say debt schemes are under pressure due to a combination of factors. Podcast | Franklin Templeton fiasco: What does it mean for investors in mutual funds? The AUM of debt schemes of the mutual fund industry is about ₹15-lakh crore, which is more than half of the total AUM of Indian fund houses. The worst affected sub-category of debt funds is Credit Risk funds that account for only 5% of the overall debt assets. Investors, however, are sceptical about the overall credit quality of the assets; hence debt schemes are likely to see a spike in redemptions. Mutual funds are allowed to borrow up to 20% of their assets to meet liquidity needs for redemption or dividend pay-out. As of April 23, four mutual funds — of a total of 42 fund houses — had a cumulative borrowing of ₹4,427.68 crore, according to the Association of Mutual Funds in India (AMFI). Fund managers say that while such borrowings are common in March — there are huge redemptions due to advance tax payment and other quarter-end obligations — a spillover of such borrowings to April is a cause for concern. Fund managers are of the view that more than half of the assets in debt schemes have a rating of AA or above. They say that while about 20% to 30% of total debt AUM would be AAA rated or in cash, another 30% to 50% would be in AA+ or AA rating. While the overall debt quality, based on current ratings, looks good on paper, the ongoing nationwide lockdown has impacted cash flows of most corporates, and investors are expecting defaults especially from the mid and small-sized corporate segment. Also read | Debt funds less exposed to risky issuers after IL&FS fiasco: Morgan Stanley The regulators are aware of the potential risk and are monitoring the situation closely. Market participants have already written to the Securities and Exchange Board of India (SEBI) to take action against Franklin Templeton Mutual Fund including appointing a high-powered committee to take over the management of the fund house while examining its investment decisions. The Association of National Exchanges Members of India (ANMI), an umbrella body representing about 900 brokers, has written to the Ministry of Finance and SEBI that as much as 64.73% of the total AUM of Franklin India Low Duration Fund was in securities rated A or below, while in Franklin India Short Term Income Plan, such securities accounted for almost 59% of total assets. The brokers’ association says Franklin Templeton Mutual Fund invested in long duration securities even though SEBI norms state that ultra short duration funds can only have bonds with a tenure between three and six months.
2 May 18:32 • The Hindu • https://www.thehindu.com/business/Industry/why-has-the-reserve-bank-of-india-opened-a-liquidity-window-for-mutual-funds/article31490886.eceRating: 0.30
Sebi asks funds to give info on holdings in all unlisted bonds
Mumbai: The Securities & Exchange Board of India (Sebi) has asked mutual funds (MFs) to share information of all holdings in unlisted bonds — securities which have become untradeable in a frozen bond market where fund managers, grappling with redemption pressure, are struggling to either sell or pledge top-rated liquid papers to raise money. The capital market regulator has asked the fund industry body to give details — such as the assets under management of schemes holding unlisted non-convertible debentures (NCDs), the various unlisted bonds these have invested in, and the share of such bonds in the scheme. Last year, MFs were told to lower their investment limit in unlisted NCDs to 15% by March 31, 2020 and 10% by June 30, 2020. However, faced with a risk-averse market and surging bond yields, Sebi, earlier this week, extended the deadline by six months for MFs to comply with the cap on investments in unlisted NCDs. The liquidity in unlisted NCDs have come down over the past few months as MFs were restricted from investing in such securities (as well as unlisted commercial papers) since October 1, 2019. The value of unlisted papers in the six schemes that were recently shut down by the top asset manager Franklin Templeton was 32% as on April 22, 2020. In its communication to the Association of Mutual Funds in India, Sebi has also asked for investment break-up of portfolio of schemes holding unlisted NCDs. For each such scheme, funds have to give the residual maturities of all bonds (listed and unlisted) and whether an issuer has other listed securities like stocks, bonds or CPs. “Not that all listed bonds are liquid, particularly in the current market. Probably, Sebi is trying to assess the risk in the system and stress it could have if redemptions continue,” said an industry person. “There are mid-sized companies, including NBFCs, which do not list their NCDs. In unlisted papers, the terms and conditions may not be readily available,” said the person. The fund houses were told to share the data by Friday evening. “It’s a bank holiday, exchanges are shut. We were not expecting any email from Sebi asking for data.The regulator has not said why it needs the information,” said a source. According to market circles, funds are dealing with redemption and this is reflected in the rise in bond yields. Many funds have approached banks for a month-long loan lines – instead of the intra-day overdrafts they typically draw in normal times to tide of temporary cash-flow mismatch. “When a scheme borrows, the interest cost to the extent of average portfolio yield is borne by the scheme. Most borrowings are at higher than portfolio yields and the spillover is borne by the AMC,” said a fund manager. Rules allow an MF scheme to borrow up to 20% of the assets under management.
2 May 04:17 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/news/sebi-asks-funds-to-give-info-on-holdings-in-all-unlisted-bonds/articleshow/75500636.cmsRating: 0.30
National Trust could lose up to £200m this year, says boss
2 May 07:25
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National Trust could lose up to £200m this year, says boss
The charity’s director general Hilary McGrady has said ‘a sharp drop in income’ is threatening the future of nature sites and staff. The National Trust is set to lose up to £200 million this year due to the coronavirus crisis, the charity says. The conservation organisation is now appealing to the Government for “urgent, practical” support after they had to halt a number of projects due to the ongoing Covid-19 pandemic. Director general Hilary McGrady has said “a sharp drop in income” is threatening the country’s environmental sector. Speaking to BBC Breakfast, the charity boss estimated the trust “lost about 50% of our annual income literally overnight” when they closed earlier this year. Writing in the Daily Telegraph, Ms McGrady urged ministers to step in and “address nature, wildlife and environmental organisations with an immediate offer of support,” given that they had thanked a number of manufacturing businesses. She also called on Government to be environmentally-minded in its economic recovery plan, and added: “Delivering green infrastructure will create new jobs and makes economic sense and there have been some encouraging signs from Government. “No doubt some will argue for high-tariff fixes […] in some cases cutting back on environmental checks and spending to deliver these. “Others will want the Government to dilute its proposed new nature-friendly farming legislation. They must not win.” The boss of the largest conservation charity in the UK believes “if we sacrifice the environmental progress we have made, everyone will suffer.”
2 May 07:25 • Shropshire Star • https://www.shropshirestar.com/news/uk-news/2020/05/02/national-trust-could-lose-up-to-200m-this-year-says-boss/Rating: 0.30
National Trust could lose up to £200m this year, says boss
The National Trust is set to lose up to £200 million this year due to the coronavirus crisis, the charity says. The conservation organisation is now appealing to the Government for “urgent, practical” support after they had to halt a number of projects due to the ongoing Covid-19 pandemic. Director general Hilary McGrady has said “a sharp drop in income” is threatening the country’s environmental sector. Speaking to BBC Breakfast, the charity boss estimated the trust “lost about 50% of our annual income literally overnight” when they closed earlier this year. Writing in the Daily Telegraph, Ms McGrady urged ministers to step in and “address nature, wildlife and environmental organisations with an immediate offer of support,” given that they had thanked a number of manufacturing businesses. She also called on Government to be environmentally-minded in its economic recovery plan, and added: “Delivering green infrastructure will create new jobs and makes economic sense and there have been some encouraging signs from Government. “No doubt some will argue for high-tariff fixes […] in some cases cutting back on environmental checks and spending to deliver these. “Others will want the Government to dilute its proposed new nature-friendly farming legislation. They must not win.” The boss of the largest conservation charity in the UK believes “if we sacrifice the environmental progress we have made, everyone will suffer.”
2 May 07:26 • Express & Star • https://www.expressandstar.com/news/uk-news/2020/05/02/national-trust-could-lose-up-to-200m-this-year-says-boss/Rating: 0.30
Perth and Kinross locals urged to donate to foodbanks due to demand during lockdown
Foodbanks across the country have remained open, having been identified as an essential service but more donations are now needed as people stay at home, according to the local authority. A Perth and Kinross Council statement read: “To ensure that foodbanks can continue to provide the support that will be needed, community food organisations, supported by Perth and Kinross Council, are asking people to donate food via local supermarkets when they are doing their essential weekly shop.” Marjorie Clark, of Perth Foodbank said there are people coming to them for help who have never needed to use a foodbank before. She said: “We expect over the next weeks and months, as people face more financial constraints, due to unemployment and such like, that the number of folk using the foodbank is going to increase significantly. “I would also want to take this opportunity thank all those who have sent so many financial donations to the foodbank. “Many have said that since they are at home, they are unable to make their usual contribution to the collection bin at the supermarkets. “The money we have received enables us to buy things that we are short of, and we are extremely grateful for this financial support.” Tina McRorie of Crieff Community Foodbank said: “All I can say is we are extremely grateful for all the donations and kind words we have received by so many people. “This has enabled us to ensure nobody goes hungry who is experiencing a financial crisis.” Foodbank donations can be made at the tills of most supermarkets.
2 May 08:26 • The Courier • https://www.thecourier.co.uk/fp/news/local/perth-kinross/1302505/perth-and-kinross-locals-urged-to-donate-to-foodbanks-due-to-demand-during-lockdown/Rating: 0.30
Indian Cricketers Association raises Rs 39 lakh; Kapil Dev, Sunil Gavaskar join initiative
2 May 03:30
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Indian Cricketers Association raises Rs 39 lakh; Kapil Dev, Sunil Gavaskar join initiative
NEW DELHI: Greats likes Sunil Gavaskar and Kapil Dev have pledged their support to Indian Cricketers Association's (ICA) initiative to financially help around 30 needy players amid the nationwide lockdown, said its president Ashok Malhotra. The ICA has so far raised Rs 39 lakh to help former cricketers who are in dire need of funds. "Big names like Sunil Gavaskar, Kapil Dev, Gautam Gambhir and Gundappa Viswanath have joined us and that is a major boost to our initiative. A corporate from Gujarat has also offered its support," Malhotra said. It has been learnt that the likes of Gavaskar, Dev and Gambhir have also made financial contributions to the cause. Mohammad Azharuddin had pledged his financial support earlier this week. Explore Briefs The ICA will continue to accept donations until May 15, following which it will shortlist 5-6 cricketers from each zone (north, east, west, south and central). "Cricketers who don't have jobs, who don't get pension from the BCCI or their respective state associations will be offered help," Malhotra had said earlier. The ICA has contributed Rs 10 lakh to the initiative. As many as 1750 former cricketers are registered with the ICA, India's first-ever players' association that came into being last year. The ICA had received an initial grant of Rs 2 crore from the BCCI in February to kick-start its operations.
2 May 03:30 • The Times of India • https://timesofindia.indiatimes.com/sports/cricket/news/icas-initiative-to-help-former-cricketers-going-in-right-direction-ashok-malhotra/articleshow/75500270.cmsRating: 0.30
Indian Cricketers Association raises Rs 39 lakh; Kapil Dev, Sunil Gavaskar join initiative
Greats likes Sunil Gavaskar and Kapil Dev have pledged their support to Indian Cricketers Association’s (ICA) initiative to financially help around 30 needy players amid the nationwide lockdown, said its president Ashok Malhotra. The ICA has so far raised Rs 39 lakh to help former cricketers who are in dire need of funds. “Big names like Sunil Gavaskar, Kapil Dev, Gautam Gambhir and Gundappa Viswanath have joined us and that is a major boost to our initiative. A corporate from Gujarat has also offered its support,” Malhotra told PTI. It has been learnt that likes of Gavaskar, Dev and Gambhir have also made financial contributions to the cause. Mohammad Azharuddin had pledged his financial support earlier this week. The ICA will continue to accept donations till May 15, following which it will shortlist 5-6 cricketers from each zone (north, east, west, south and central). “Cricketers who don’t have jobs, who don’t get pension from the BCCI or their respective state associations will be offered help,” Malhotra had said earlier. The ICA has contributed Rs 10 lakh to the initiative. As many as 1750 former cricketers are registered with the ICA, India’s first-ever players’ association which came into being last year. The ICA had received an initial grant of Rs 2 crore from the BCCI in February to kick-start its operations.
2 May 08:00 • The Indian Express • https://indianexpress.com/article/sports/cricket/indian-cricketers-association-raises-rs-39-lakh-kapil-dev-sunil-gavaskar-join-initiative-6390228/Rating: 0.30
Sunil Gavaskar, Kapil Dev Join Indian Cricket Association's Initiative To Help Players In Need Amid Lockdown
Greats like Sunil Gavaskar and Kapil Dev have pledged their support to Indian Cricketers Association's (ICA) initiative to financially help around 30 needy players amid the nationwide lockdown, said its president Ashok Malhotra. The ICA has so far raised Rs 39 lakh to help former cricketers who are in dire need of funds. "Big names like Sunil Gavaskar, Kapil Dev, Gautam Gambhir and Gundappa Viswanath have joined us and that is a major boost to our initiative. A corporate from Gujarat has also offered its support," Malhotra told PTI. It has been learnt that likes of Gavaskar, Dev and Gambhir have also made financial contributions to the cause. Mohammad Azharuddin had pledged his financial support earlier this week. The ICA will continue to accept donations till May 15, following which it will shortlist 5-6 cricketers from each zone (north, east, west, south and central). "Cricketers who don't have jobs, who don't get pension from the BCCI or their respective state associations will be offered help," Malhotra had said earlier. The ICA has contributed Rs 10 lakh to the initiative. As many as 1750 former cricketers are registered with the ICA, India's first-ever players' association which came into being last year. The ICA had received an initial grant of Rs 2 crore from the BCCI in February to kick-start its operations.
2 May 07:35 • NDTVSports.com • https://sports.ndtv.com/cricket/sunil-gavaskar-kapil-dev-join-indian-cricket-associations-initiative-to-help-players-in-need-amid-lockdown-2222063Rating: 0.30
Coronavirus: Gavaskar, Kapil, Gambhir, Viswanath raise funds to help former cricketers in need
Greats likes Sunil Gavaskar and Kapil Dev have pledged their support to the Indian Cricketers’ Association’s initiative to financially help around 30 players amid the nationwide lockdown due to the coronavirus pandemic, said ICA president Ashok Malhotra. The ICA has so far raised Rs 39 lakh to help former cricketers who are in need of financial help. “Big names like Sunil Gavaskar, Kapil Dev, Gautam Gambhir and Gundappa Viswanath have joined us and that is a major boost to our initiative. A corporate from Gujarat has also offered its support,” Malhotra told PTI. It has been learnt that likes of Gavaskar, Dev and Gambhir have also made financial contributions to the cause. Mohammad Azharuddin had pledged his financial support earlier this week. The ICA will continue to accept donations till May 15, following which it will shortlist 5-6 cricketers from each zone (north, east, west, south and central). “Cricketers who don’t have jobs, who don’t get pension from the BCCI or their respective state associations will be offered help,” Malhotra had said earlier. The ICA has contributed Rs 10 lakh to the initiative. As many as 1750 former cricketers are registered with the ICA, India’s first-ever players’ association which came into being last year. The ICA had received an initial grant of Rs 2 crore from the BCCI in February to kick-start its operations.
2 May 07:08 • Scroll.in • https://scroll.in/field/960849/coronavirus-gavaskar-kapil-gambhir-viswanath-raise-funds-to-help-former-cricketers-in-needRating: 0.30
Tesla falls after Elon Musk's 2018-style tweets
3 May 03:43
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Tesla falls after Elon Musk's 2018-style tweets
New York | Tesla shares plunged after Elon Musk said the electric-carmaker's stock is too high in a stream of tweets reminiscent of the posts that securities regulators sued him over in 2018. The chief executive posted more than a dozen times in a span of less than a 75 minutes on Friday, claiming he's selling "almost all" of his physical possessions and won't own a house. He also renewed his call for reopening the economy. Hours later, Tesla's head of human resources for North America told employees that furloughs would be extended at least another week. The carmaker's shares fell 10 per cent to close at $US701.32 ($1091.50). Mr Musk, 48, told the Wall Street Journal in an email that he wasn't joking and his tweets weren't vetted before he posted them. Tesla's stock is still up 68 per cent for the year, an advance that's put him in position to meet the final performance threshold he needs to receive stock options that would yield a windfall of about $US730 million. "We view these comments as tongue-in-cheek and it's Elon being Elon," Dan Ives, a Wedbush Securities analyst with a hold rating on Tesla, said in an email. "It's certainty a headache for investors for him to venture into this area as his tweeting remains a hot-button issue." Mr Musk's Twitter burst followed a profane rant during Tesla's first-quarter earnings call. He railed against shutdown orders aimed at containing the coronavirus, telling analysts he was worried about not being allowed to reopen the company's assembly plant in Fremont, California. He compared shelter-in-place measures with forcible imprisonment. "Musk is frustrated, and he has a pattern when he's under pressure to turn to Twitter," Gene Munster, a managing partner at Loup Ventures. "It's his form of therapy. But he also has an agenda, which is to get the Fremont factory back open." Tesla's environmental, health, and safety team has been working "non-stop" on procedures to facilitate the return to work, Valerie Capers Workman, the North American human resources chief, said in an email to staff. San Francisco Bay area counties have extended their stay-home orders through to the end of May. In December, Mr Musk joked about Tesla's stock being "so high" when it climbed above $US420. That's the price at which he said Tesla would go private in 2018, and the US Securities and Exchange Commission said he picked the number to make a marijuana-related joke that would impress his girlfriend. On Friday, Mr Musk said his girlfriend, the musician Grimes, is now mad at him. They have a baby due this week, he wrote. Mr Musk and Tesla each paid $US20 million to settle the securities fraud lawsuit the SEC brought in September 2018 over the CEO's tweets claiming that he had the funding to take Tesla private. But the dispute carried on into last year after Mr Musk posted that the company would make roughly 500,000 cars in 2019 without advance approval from a Tesla lawyer. The two sides amended their earlier agreement that aimed to set limits on his tweeting by adding specific topics that Mr Musk isn't supposed to post about without pre-approval. The subjects include the company's financial condition, potential mergers or acquisitions, production and sales numbers, new or proposed business lines, projections and forecasts that haven't been previously published, and Mr Musk's purchase or sale of Tesla securities. While Mr Musk's statements may have run afoul of the SEC agreement, the agency might not reopen the case against him, according to Harvey Pitt, a former SEC chairman who now leads the advisory firm Kalorama Partners. "The SEC has bigger fish to fry," Mr Pitt said in a Bloomberg Television interview. Mr Musk has made similar comments before about Tesla's stock being overvalued. In May 2017, when Tesla had a roughly $50 billion market capitalisation, the CEO said it was higher than the company deserved. "We can only guess at motivations behind his sequence of tweets," Ben Kallo, a Robert W. Baird analyst, said in a note to clients. He has a $700 price target for Tesla's stock but warns that there could be "significant uncertainty over the next 2-3 quarters" regarding the company's efforts to restart production. When asked if he was selling his possessions because he needed cash or was protesting, Mr Musk responded that the answer was neither. He's long sought to reach Mars with his rocket company, Space Exploration Technologies Corp, and is devoting himself to that effort, and to the Earth, he wrote. Bloomberg
3 May 03:43 • Australian Financial Review • https://www.afr.com/markets/equity-markets/tesla-falls-after-elon-musk-s-2018-style-tweets-20200503-p54pcvRating: 1.94
Elon Musk's 'Tesla stock price is too high' tweet shaves off $13 billion from firm value; $3 bn his own
The subsequent share drop erased around $13 billion from Tesla's market value and nearly $3 billion from the value of Musk's stake. Still, shares remain up almost 50% from the start of April Shares of Tesla Inc tumbled 9% on Friday after Chief Executive Officer Elon Musk tweeted that the electric carmaker's high-flying stock was overly expensive. "Tesla stock price is too high," Musk said on Twitter in one of several unusual messages, including ones quoting parts of the U.S. national anthem and that he would sell almost all his physical possessions. The subsequent share drop erased around $13 billion from Tesla's market value and nearly $3 billion from the value of Musk's stake. Still, shares remain up almost 50% from the start of April. More than two hours after the tweets began, Tesla had not responded to requests for comment. Twitter declined to comment. The Wall Street Journal reported that Musk had responded to an email asking whether he was joking or whether his tweet was vetted by saying, "No". Musk has a history of sending provocative tweets. In August 2018, he tweeted that he had secured funding to possibly take Tesla private at a big premium, which led a fraud case by the U.S. Securities and Exchange Commission. Musk settled by agreeing to pay $20 million and have a Tesla lawyer pre-screen tweets with important information about the company. Last month, a federal judge said Tesla and Musk must face a lawsuit by shareholders over the going-private tweet, including a claim that Musk intended to defraud them. In April 2019 Musk tweeted, "My Twitter is pretty much complete nonsense at this point." "We view these Musk comments as tongue in cheek and it's Elon being Elon. It's certainty a headache for investors for him to venture into this area as his tweeting remains a hot button issue and the Street clearly is frustrated," Wedbush Securities analyst Daniel Ives said by email. Tesla's stock has surged in recent weeks, but is down since Wednesday after the company reported an unexpected quarterly profit, despite manufacturing interruptions caused by the coronavirus pandemic. Musk's latest tweets follow others this week. On Tesla's quarterly conference call on Wednesday, he called sweeping U.S. stay-at-home restrictions to curtail the coronavirus outbreak "fascist". Those restrictions have forced Tesla to shutter its car plant in Fremont, California. "Musk has recently expressed some strong and, at times, controversial, views on COVID-19 and some elements of the response to the crisis and we believe is attempting to use his broad following and visibility to bring attention to some economic factors that he believes may be overlooked," Morgan Stanley analyst Adam Jonas wrote in a client note on Friday. Musk's iconoclastic stance has helped him attract over 33 million followers on Twitter and is seen as a marketing boon for Tesla. Tesla's recent rally has put Musk on the verge of a payday of over $700 million. The six-month average of Tesla's market capitalization is just short of $100 billion, a target that would trigger the vesting of a tranche of options granted to Musk to buy 1.69 million shares as part of his two-year-old pay package. Also read: ArogyaSetu app a 'sophisticated surveillance system', says Rahul Gandhi Also read: Coronavirus update: India receives 7 metric tonnes of medical supplies from UAE
2 May 17:57 • Business Today • https://www.businesstoday.in/current/corporate/elon-musk-tesla-stock-price-is-too-high-tweet-shaves-off-13-billion-from-firm-value-3-bn-his-own/story/402709.htmlRating: 2.10
Explained: Why Elon Musk’s tweet on Tesla stock price is problematic
Tesla lost $14 million in valuation hours after co-founder and CEO Elon Musk Friday tweeted, “Tesla stock price is too high imo”. Musk personal stake too went down by about $3 billion following the tweet. This is not the first time that Musk has given statements about his company through social media. In 2018, Musk tweeted he was thinking about taking the company private, which cost him his role as chairman. “Am considering taking Tesla private at $420. Funding secured,” he tweeted in August 2018. After his tweet, Tesla’s stock price increased by more than 6 per cent and closed up at 10.98 per cent from the previous day. Recently, a federal judge said Musk and Tesla must face a lawsuit filed by the shareholders regarding this tweet. How significant are such tweets? While they are just tweets, their consequences raise questions if it is legal for CEOs of companies to share such information through their social media accounts. In its 2018 complaint against Musk, the US Securities Exchange and Commission (SEC) referred to his comments as “false” and “misleading” and referred to him as “reckless”. As per an agreement between SEC and Musk, his tweets regarding the company’s finances and sales, etc. need to be vetted by a company lawyer. “Musk’s statements, disseminated via Twitter, falsely indicated that, should he so choose, it was virtually certain that he could take Tesla private at a purchase price that reflected a substantial premium over Tesla stock’s then-current share price, that funding for this multi-billion dollar transaction had been secured, and that the only contingency was a shareholder vote. In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source,” SEC noted in its complaint. In 2012, Netflix CEO Reed Hastings was investigated by the SEC after he announced on social media that Netflix subscribers had surpassed 1 billion hours of viewing time. “Congrats to Ted Sarandos, and his amazing content licensing team. Netflix monthly viewing exceeded 1 billion hours for the first time ever in June. When House of Cards and Arrested Development debut, we’ll blow these records away. Keep going, Ted, we need even more!” Hastings said in July 2012. 📢 Express Explained is now on Telegram. Click here to join our channel (@ieexplained) and stay updated with the latest So then, are CEOs allowed to make such announcements through social media? Following their investigation of Hastings’s comments, the SEC came to the conclusion that companies could use social media outlets such as Facebook and Twitter to announce key information as long as investors have been alerted about where to look for company-related updates and announcements. In a report prepared by SEC into the investigation, the body noted that prior to Hastings’s comment, he had not received information from the company’s chief financial officer (CFO), the legal department or investor relations department. “Netflix’s stock continued a rise that began when the market opened on July 3, increasing from $70.45 at the time of Hastings’s Facebook post to $81.72 at the close of the following trading day,” the report said. Essentially, the investigation into his post raised questions regarding the application of Regulation Fair Disclosure (FD) to his post and the applicability of the Commission’s August 2008 Guidance on the Use of Company Web Sites to emerging technologies including social media sites such as Facebook and Twitter. Regulation FD was adopted to check if issuers were selectively disclosing important non-public information to security analysts and selected institutional investors before making full disclosure of the same information. Regulation FD and the Exchange Act prohibit public companies or persons acting on their behalf “from selectively disclosing material, nonpublic information to certain securities professionals, or shareholders where it is reasonably foreseeable that they will trade on that information, before it is made available to the general public”. In conclusion, the SEC does not discourage the use of social media by companies or people who represent them to communicate information as long as investors know about these channels of communication.
2 May 13:04 • The Indian Express • https://indianexpress.com/article/explained/elon-musk-tesla-stock-price-tweet-6390608/Rating: 0.30
Tesla falls as Musk says stock too high in 2018-style tweets
Tesla Inc. shares plunged after Elon Musk said the electric-car maker’s stock is too high in a stream of tweets reminiscent of the posts that securities regulators sued him over in 2018. The chief executive officer posted more than a dozen times in a span of less than a 75 minutes Friday, claiming he’s selling “almost all” of his physical possessions and won’t own a house. He also renewed his call for reopening the economy. Hours later, Tesla’s head of human resources for North America told employees that furloughs will be extended at least another week. The carmaker’s shares fell 10% to close at $701.32. Musk, 48, told the Wall Street Journal in an email that he wasn’t joking and his tweets weren’t vetted before he posted them. Tesla’s stock is still up 68% for the year, an advance that’s put him in position to meet the final performance threshold he needs to receive stock options that would yield a windfall of about $730 million. Explained: Why Elon Musk’s tweet on Tesla stock price is problematic “We view these comments as tongue-in-cheek and it’s Elon being Elon,” Dan Ives, a Wedbush Securities analyst with a hold rating on Tesla, said in an email. “It’s certainty a headache for investors for him to venture into this area as his tweeting remains a hot-button issue.” Musk’s Twitter burst followed a profane rant during Tesla’s first-quarter earnings call on Wednesday. He railed against shutdown orders aimed at containing the coronavirus, telling analysts he was worried about not being allowed to reopen the company’s assembly plant in Fremont, California. He compared shelter-in-place measures with forcible imprisonment. “Musk is frustrated, and he has a pattern when he’s under pressure to turn to Twitter,” Gene Munster, a managing partner at Loup Ventures, said by phone. “It’s his form of therapy. But he also has an agenda, which is to get the Fremont factory back open.” Tesla’s environmental, health, and safety team has been working “non-stop” on procedures to facilitate the return to work, Valerie Capers Workman, the North American human-resources chief, said in an email to staff seen by Bloomberg News. San Francisco Bay area counties this week extended their stay-home orders through the end of May. In December, Musk joked about Tesla’s stock being “so high” when it climbed above $420. That’s the price at which he said Tesla would go private in 2018, and the U.S. Securities and Exchange Commission said he picked the number to make a marijuana-related joke that would impress his girlfriend. On Friday, Musk said his girlfriend, the musician Grimes, is now mad at him. They have a baby due on Monday, he wrote. Musk and Tesla each paid $20 million to settle the securities-fraud lawsuit the SEC brought in September 2018 over the CEO’s tweets claiming that he had the funding to take Tesla private. But the dispute carried on into last year after Musk posted that the company would make roughly 500,000 cars in 2019 without advance approval from a Tesla lawyer. The two sides amended their earlier agreement that aimed to set limits on his tweeting by adding specific topics that Musk isn’t supposed to post about without pre-approval. The subjects include the company’s financial condition, potential mergers or acquisitions, production and sales numbers, new or proposed business lines, projections and forecasts that haven’t been previously published, and Musk’s purchase or sale of Tesla securities. While Musk’s statements may have run afoul of the SEC agreement, the agency might not reopen the case against him, according to Harvey Pitt, a former SEC chairman who now leads the advisory firm Kalorama Partners. “The SEC has bigger fish to fry,” Pitt said in a Bloomberg Television interview. What Bloomberg Intelligence Says Musk’s opinion probably falls within the subject matter that must be preapproved by a securities lawyer. Yet there’s an argument that the opinion is based on past results. Musk has made similar comments before about Tesla’s stock being overvalued. In May 2017, when Tesla had a roughly $50 billion market capitalization, the CEO said it was higher than the company deserved. “We can only guess at motivations behind his sequence of tweets,” Ben Kallo, a Robert W. Baird analyst, said in a note to clients. He has a $700 price target for Tesla’s stock but warns there could be “significant uncertainty over the next 2-3 quarters” regarding the company’s efforts to restart production. When asked if he was selling his possessions because he needed cash or was protesting, Musk responded the answer was neither. He’s long sought to reach Mars with his rocket company, Space Exploration Technologies Corp., and is devoting himself to that effort, and to the Earth, he wrote.
2 May 13:05 • The Indian Express • https://indianexpress.com/article/technology/tech-news-technology/tesla-falls-as-musk-says-stock-too-high-in-2018-style-tweets-6389959/Rating: 0.30
Bizarre Elon Musk tweets wipe almost €12bn off Tesla's share price
About US$13bn (€11.7bn) was wiped off Tesla's shares after chief executive Elon Musk tweeted that the electric car company's "stock price is too high". In a series of other tweets, Mr Musk (48) also said he was "selling almost all physical possessions" and "will own no house". He added his girlfriend was "mad at me". The subsequent 9% drop in Tesla share prices erased about US$3bn (€2.7bn) from Mr Musk's own stake. Nevertheless, they remain almost 50% up from the start of April. The Wall Street Journal said Mr Musk responded to an e-mail asking whether he was joking, or whether his tweet was vetted, by saying: "No." It is not the first time Mr Musk has sent provocative tweets. In April 2019, he posted: "My Twitter is pretty much complete nonsense at this point." In August 2018, he tweeted that he had secured funding to possibly take Tesla private. It led to a fraud case by the US Securities and Exchange Commission (SEC), which Mr Musk settled by agreeing to pay US$20m (€18.1m) and have a Tesla lawyer pre-screen tweets with important information about the company. The latest posts on social media are not the only controversy Mr Musk has found himself in this week. He described coronavirus lockdowns as "forcibly imprisoning people in their homes" and "fascist". Mr Musk said he did not know when Tesla could resume production in California - and called the state's stay-at-home order a "serious risk" to the business. He added: "To say that they cannot leave their house and they will be arrested if they do, this is fascist. "This is not democratic, this is not freedom. Give people back their goddamn freedom!"
2 May 13:03 • Newstalk • https://www.newstalk.com/news/bizarre-elon-musk-tweets-wipe-almost-e12bn-off-teslas-share-price-1009479Rating: 0.30
Tesla's Stock Drops Billions After Elon Musk's Tweetstorm Friday
Friday Techcrunch reported Elon Musk tweeted to his 33.4 million followers that Tesla's stock price "was 'too high' in his opinion, immediately sending shares into a free fall and in possible violation of an agreement reached with the U.S. Securities and Exchange Commission last year." Tesla's shares plummetted nearly 12% over the next 30 minutes, which reduced Tesla's valuation by over $14 billion, the BBC reports, while reducing Musk's own stake by $3 billion, according to an article shared by long-time Slashdot reader UnresolvedExternal. "In other tweets, he said his girlfriend was mad at him, while another simply read: 'Rage, rage against the dying of the light of consciousness.'"Even at the end of the day Tesla's shares were still down 7.17%. But Techcrunch called Musk's stock-price tweet "just one of many sent out in rapid fire that covered everything from demands to 'give people back their freedom' and lines from the U.S. National Anthem to quotes from poet Dylan Thomas and a claim that he will sell all of his possessions."Rolling Stone has more on what they're calling Musk's "quarantine tantrum," noting that in a Wednesday earnings call, Musk had also complained about restrictions on non-essential businesses and ordinary people. "To say that they cannot leave their house, and they will be arrested if they do, this is fascist... give people back their goddamn freedom." The magazine notes this drew a scathing rebuttal on nationwide TV from The Daily Show's Trevor Noah: "Finally, someone has decided to call out this fascist American government that's asking people to please stay in their houses to try and save their own lives," Noah said sarcastically. "I mean, you're not even allowed to go to the grocery store anymore! Well, actually, you can go to the grocery store, but you can't even go for a walk! I mean, you can do that too, but what about the beach? You're not allowed to go to the beach, except for all the states where you're allowed to go to the beach. But you definitely can't go to H&M, and that is the definition of fascism."CNN Business writes that Musk, "heralded for years as a pioneer in space travel and transportation, has recently veered into disseminating coronavirus misinformation," adding that Musk's comments "also come in stark contrast to those made by some of his peers in Silicon Valley, who have urged caution on reopening." "I worry that reopening certain places too quickly, before infection rates have been reduced to very minimal levels, will almost guarantee future outbreaks and worsen longer-term health and economic outcomes," Facebook CEO Mark Zuckerberg said during an earnings call Wednesday.
2 May 10:34 • slashdot.org • https://slashdot.org/story/20/05/02/0223208/teslas-stock-drops-billions-after-elon-musks-tweetstorm-friday?utm_source=rss1.0mainlinkanon&utm_medium=feedRating: 1.79
Tesla shares tumble as Musk says stock is overvalued
Elon Musk, founder of Tesla and SpaceX, is seen at an appearance on March 9, 2020, in Washington DC. AFP/File/Brendan Smialowski Irascible, outspoken Tesla chief Elon Musk went on another Twitter rant Friday, including saying the company’s stock was overvalued, which sent the electric carmaker’s shares tumbling. “Tesla stock price is too high imo” (in my opinion), Musk said on Twitter. “Now give people back their FREEDOM,” he demanded shortly after and then cited lines from the US national anthem, an apparent repeat of his complaints about stay-at-home orders and business shutdowns due to the coronavirus pandemic. Musk, who delivered an expletive-laden rant Wednesday night in an earnings call in which he dubbed coronavirus restrictions “fascist,” also said, “I am selling almost all my physical possessions. Will own no house.” Shares of Tesla had risen about 85 percent this year as of Thursday’s close as production has risen and analysts praised the company as well positioned for an expected transition to electric cars. But the share price sank 10.3 percent Friday to close at $701.32 following the latest Twitter outburst. The tweets about stock valuation recall Musk’s controversial tweets in August 2018 when he said he had “funding secured” for a quickly-aborted campaign to take the electric car maker private. US securities regulators ultimately charged Musk with fraud and fined him $20 million, part of a running dispute with the Securities and Exchange Commission. Musk agreed under an April 2019 deal with the SEC on topics he should avoid on Twitter or other social media, including statements about acquisitions, mergers, new products and production numbers.
2 May 09:24 • The Citizen • https://citizen.co.za/business/business-news/2277888/tesla-shares-tumble-as-musk-says-stock-is-overvalued/Rating: 1.26
Elon Musk's bizarre tweet wipes $14 billion off Tesla market value in hours
Elon Musk may lose his job as Tesla chief execuive as the carmaker's board, as well as the US Securities and Exchange Commission (SEC), must have taken into account his bizarre tweet that brought Tesla's market value down by $14 billion in hours. The tweet saying that Tesla stock was "too high" also knocked $3 billion off Musk's own stake in the electric carmaker. His earlier notorious tweet in August 2018 — when he posted about Tesla "going private, funding secured" at $420 a share — cost him his role as chairman. ALSO READ: Covid-19: Zuckerberg endorses Silicon Valley lockdown, Musk sees 'fascism' The August 2018 tweet resulted in Musk and Tesla reaching a settlement of fraud charges with the SEC. The settlement included $40 million in penalties, split equally between the company and Musk, and the removal of Musk as chairman of the Tesla board. "As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla's board will adopt important reforms -- including an obligation to oversee Musk's communications with investors -- and both will pay financial penalties," Steven Peikin, Co-Director of the SEC's Enforcement Division, said in a statement. According to the SEC's complaint, Musk's misleading tweets caused Tesla's stock price to jump by over six percent on August 7, and led to significant market disruption. ALSO READ: Tesla posts third quarterly profit in a row, but Elon Musk is not happy On Friday, Musk again stirred the controversy by tweeting that "Tesla stock price is too high imo (in my opinion)". Tesla's market valuation was worth around $141 billion before the first tweet and it nosedived to nearly $127 billion. One user replied to Musk: "Are you doing it because you need the cash or is this to protest the world burning down?" Musk replied: "Don't need the cash. Devoting myself to Mars and Earth. Possession just weigh you down". Musk is supposed to seek pre-approval if his tweets include anything regarding the company's securities, including his acquisition or disposition of shares, nonpublic legal or regulatory findings or decisions.
2 May 06:14 • Business-Standard • https://www.business-standard.com/article/international/elon-musk-bizarre-tweet-wipes-14-billion-off-tesla-market-value-in-hours-120050200245_1.htmlRating: 0.30
Elon Musk May Lose Job as Tesla CEO Over Controversial Tweet
Elon Musk may lose his job as Tesla CEO as the car makers Board as well as the US Securities and Exchange Commission (SEC) must have taken into account his bizarre tweet that left Teslas market value go down by $14 billion in hours. Also Read - Trending News Today May 01, 2020: Famous Brazilian Writer-Lyricist Paulo Coelho Pays Tribute to Irrfan Khan With Bhagavad Gita Quote, Says 'Wrote Song Based on The Book' The tweet saying that Tesla stock was “too high” also knocked $3 billion off Musk’s own stake in the electric car-maker. Also Read - Elon Musk's SpaceX-Jeff Bezos's Blue Origin Selected by NASA to Land Humans on Moon by 2024 His earlier notorious tweet in August 2018 when he posted about Tesla “going private, funding secured” at $420 a share cost him his role as Chairman. Also Read - 'We Have to Win This Coronavirus War Together': Read Rishi Kapoor's Powerful Last Tweet The August 2018 tweet resulted in Musk and Tesla reaching a settlement of fraud charges with the SEC. The settlement included $40 million in penalties, split equally between the company and Musk, and the removal of Musk as chairman of the Tesla board. “As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms — including an obligation to oversee Musk’s communications with investors — and both will pay financial penalties,” Steven Peikin, Co-Director of the SEC’s Enforcement Division, said in a statement. According to the SEC’s complaint, Musk’s misleading tweets caused Tesla’s stock price to jump by over six percent on August 7, and led to significant market disruption. On Friday, Musk again stirred the controversy by tweeting that “Tesla stock price is too high imo (in my opinion)”. Tesla’s market valuation was worth around $141 billion before the first tweet and it nosedived to nearly $127 billion. One user replied to Musk: “Are you doing it because you need the cash or is this to protest the world burning down?” Musk replied: “Don’t need the cash. Devoting myself to Mars and Earth. Possession just weigh you down”. Musk is supposed to seek pre-approval if his tweets include anything regarding the company’s securities, including his acquisition or disposition of shares, nonpublic legal or regulatory findings or decisions. For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Viral Latest News on India.com. Comments - Join the Discussion
2 May 05:33 • India News, Breaking News, Entertainment News | India.com • https://www.india.com/viral/elon-musk-may-lose-job-as-tesla-ceo-over-controversial-tweet-4017333/Rating: 0.30
Elon Musk says Tesla’s stock price is too high, and now it has fallen
Tesla CEO Elon Musk tweeted Friday that Tesla’s stock price is “too high imo,” and the stock fell immediately after. Tesla’s stock is down more than 10 percent. Last year, Musk made an agreement with the Securities and Exchange Commission to have a company lawyer pre-approve tweets about Tesla’s finances, sales, or deliveries last April. The settlement exists because Musk tweeted he was thinking of taking Tesla private, “funding secured.” The SEC sued him for securities fraud as a result. Here is Musk’s entire tweet: On February 19th of last year, Musk tweeted that Tesla would make “around” 500,000 Tesla Model 3s in 2019, which was not in line with the company’s guidance at that time. The SEC then asked Musk if he was complying with the order to have his tweets reviewed. It turned out that he wasn’t, which led to a weeks-long legal battle for a stricter settlement agreed upon in April 2019. Tesla and Musk are still defending themselves from shareholder lawsuits stemming from the go private tweets. When asked by The Wall Street Journal if he was joking in today’s tweet about Tesla’s stock price or if the tweet had been vetted, Musk only replied “No” in an email. Musk followed today’s tweet about the stock price being too high by tweeting the lyrics to “The Star-Spangled Banner,” America’s national anthem. This also has echoes of his response to the SEC: he’s called the agency’s response to his February 19th tweets “an unconstitutional power grab.” Update May 1st, 1:57PM ET: Added comment from Musk obtained by The Wall Street Journal.
2 May 04:24 • The Verge • https://www.theverge.com/2020/5/1/21244136/elon-musk-tesla-stock-price-too-high-fall-tweetRating: 3.34
Elon Musk just declared that he's selling almost all his physical belongings and 'will own no house' and that he thinks Tesla's stock price is 'too high'
Elon Musk, the billionaire and prolific Twitter user, is rethinking his attachment to the material world – and said in a tweet on Friday that a first step would be “selling almost all physical possessions.” He also said he thought Tesla’s stock price was “too high” – a tweet that was followed by a sharp drop in the share price of the electric-car manufacturer. Tesla’s stock was down 9.3% late Friday morning. Musk also said he “will own no house.” He followed up with a tweet that his girlfriend, the songwriter and producer Grimes, was mad at him. Musk owns at least seven lavish houses worth over $100 million in total. He and Grimes are expecting a baby due Monday, he said in another tweet. His remarks came amid a broader tweetstorm on Friday morning. Musk, who’s known for his eccentric online presence, also continued his weeks-long rant against government-enforced shutdowns in response to COVID-19 outbreaks. Tesla’s factory in Fremont, California, has been forced to shut down because of a shelter-in-place order in the San Francisco Bay Area. He railed against the shutdowns and orders in a shareholder call earlier this week, calling them “fascist” in a rant that was abruptly cut off when the call was disconnected. It wasn’t clear why Musk would want to sell almost all his belongings or where he would live once he owns no house. A Tesla representative did not immediately respond to a request for comment. Musk has previously run afoul of the Securities and Exchange Commission for tweeting about Tesla shares. He settled a lawsuit last year after tweeting in 2018 that he was considering taking Tesla private at $420 per share. As part of the settlement, Musk agreed that all his public statements that could move Tesla’s stock price – including tweets – would be pre-approved by a company lawyer. An SEC representative did not immediately respond to a request for comment.
2 May 03:05 • Business Insider Nederland • https://www.businessinsider.nl/elon-musk-selling-belongings-house-tesla-stock-2020-5/Rating: 0.30
Tesla tumbles after tweet from Musk account saying stock too high
REUTERS: Shares of Tesla Inc tumbled 12 per cent on Friday (May 1) following a tweet from Chief Executive Elon Musk's Twitter account that the electric car maker's recently high-flying stock is overly expensive. The tweet was one of several unusual messages, including ones quoting parts of the US national anthem and that he would sell almost all his physical possessions, raising questions about whether Musk's account was compromised. "Tesla stock price is too high," Musk's Twitter account tweeted. Reuters could not immediately verify whether Musk sent the tweet. Tesla and Twitter did not immediately respond to requests for comment about whether Musk's account had been hacked. A year ago, Musk settled a dispute with the US Securities and Exchange Commission over his use of Twitter, agreeing to submit his public statements about Tesla's finances and other topics to vetting by the company's legal counsel. Tesla's stock has surged in recent weeks, but is down since Wednesday when the company reported an unexpected quarterly profit, despite manufacturing interruptions caused by the coronavirus pandemic. Including Friday's drop, the shares remain up over 40 per cent from May 1, 2019. Musk's latest tweets follow others by the billionaire this week, as well as comments on Tesla's quarterly conference call on Wednesday, criticizing the California government's stay-at-home orders, which have forced him to shut Tesla's plant in Fremont, California.
2 May 00:16 • CNA • https://www.channelnewsasia.com/news/business/tesla-tumbles-after-tweet-from-musk-account-saying-stock-too-high-12695412Rating: 3.25
Will US exchange trading floors still be relevant post-coronavirus?
2 May 04:28
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Will US exchange trading floors still be relevant post-coronavirus?
NEW YORK: The coronavirus pandemic has upended US equities trading with unprecedented market volatility and forced bourses like the New York Stock Exchange to close their trading floors, raising questions about the need for such spaces. The NYSE, which is owned by Intercontinental Exchange Inc , closed its stock and options trading floors in New York and San Francisco in Mar 23 after traders and an ICE employee tested positive for the virus. Rivals CME Group , Cboe Global Markets Inc and Nasdaq Inc also closed their options and futures pits in Chicago and Philadelphia. Despite the move to all-electronic trading, none of the exchange operators experienced any major technical glitches amid record volumes, and all of them reported first-quarter profits that beat analysts' expectations. Cboe aims to reopen its options trading floor on Jun 1 after acknowledging that some customers were frustrated by the exchange's electronic trading tools and were unable to get the most risky and complex types of orders completed, it said on Friday. At the same time, Chief Executive Ed Tilly said Cboe will soon roll out new electronic solutions that will replicate benefits of the floor for those more complex orders, prompting analysts to question the need to reopen the spaces at all. "Our position has always been that when our customers tell us that there's no utility in the trading crowd, when brokers provide no service to their customers, the electronic solution will close the trading floor, not Cboe and not its management team," Tilly said. The NYSE is the only US exchange that still operates stock trading floors alongside electronic trading. It released a study on Thursday showing that floor traders dampen volatility by providing tighter bid-offer spreads, especially at the market close, saving investors millions of dollars a day. While the floor distinguishes NYSE from its competitors, the closure has not led to a significant drop in market share, according to an analysis released Friday by industry trade group, the Securities Industry and Financial Markets Association. "Only time will tell if investors feel the difference in execution of their trades with or without the human interaction on the floor," the study said. The NYSE plans to reopen its San Francisco-based options floor on Monday. It has not given a date for the reopening of its iconic floors at 11 Wall Street. CME, which runs the world's largest futures exchange, said on Wednesday it was unclear when it would reopen its trading floors, where about 10 per cent of its business was done. "We will not do anything irrational either way until we know exactly where health officials and government officials are going to come down as far as multiple people getting together in a single location," CEO Terry Duffy told analysts on a call. The closure had little effect on trading activity, CME said. "Participants can trade any strategy today as easily as they could prior to the closure of the floor," said Sean Tully, a senior managing director at the exchange.
2 May 04:28 • CNA • https://www.channelnewsasia.com/news/business/will-us-exchange-trading-floors-still-be-relevant-post-coronavirus--12695974Rating: 3.25
Will US exchange trading floors still be relevant post-coronavirus?
NEW YORK: The coronavirus pandemic has upended US equities trading with unprecedented market volatility and forced bourses like the New York Stock Exchange to close their trading floors, raising questions about the need for such spaces. The NYSE, which is owned by Intercontinental Exchange Inc, closed its stock and options trading floors in New York and San Francisco in March 23 after traders and an ICE employee tested positive for the virus. Rivals CME Group, Cboe Global Markets Inc and Nasdaq Inc also closed their options and futures pits in Chicago and Philadelphia. Despite the move to all-electronic trading, none of the exchange operators experienced any major technical glitches amid record volumes, and all of them reported first-quarter profits that beat analysts' expectations. Cboe aims to reopen its options trading floor on June 1 after acknowledging that some customers were frustrated by the exchange's electronic trading tools and were unable to get the most risky and complex types of orders completed, it said on Friday. At the same time, Chief Executive Ed Tilly said Cboe will soon roll out new electronic solutions that will replicate benefits of the floor for those more complex orders, prompting analysts to question the need to reopen the spaces at all. "Our position has always been that when our customers tell us that there's no utility in the trading crowd, when brokers provide no service to their customers, the electronic solution will close the trading floor, not Cboe and not its management team," Tilly said. The NYSE is the only US exchange that still operates stock trading floors alongside electronic trading. It released a study on Thursday showing that floor traders dampen volatility by providing tighter bid-offer spreads, especially at the market close, saving investors millions of dollars a day. While the floor distinguishes NYSE from its competitors, the closure has not led to a significant drop in market share, according to an analysis released Friday by industry trade group, the Securities Industry and Financial Markets Association. "Only time will tell if investors feel the difference in execution of their trades with or without the human interaction on the floor," the study said. The NYSE plans to reopen its San Francisco-based options floor on Monday. It has not given a date for the reopening of its iconic floors at 11 Wall Street. CME, which runs the world's largest futures exchange, said on Wednesday it was unclear when it would reopen its trading floors, where about 10% of its business was done. "We will not do anything irrational either way until we know exactly where health officials and government officials are going to come down as far as multiple people getting together in a single location," CEO Terry Duffy told analysts on a call. The closure had little effect on trading activity, CME said. "Participants can trade any strategy today as easily as they could prior to the closure of the floor," said Sean Tully, a senior managing director at the exchange.
2 May 07:57 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/news/will-us-exchange-trading-floors-still-be-relevant-post-coronavirus/articleshow/75503226.cmsRating: 0.30
Will trading floors of US bourses still be relevant in post-Covid-19 world?
The coronavirus pandemic has upended US equity trading, with unprecedented market volatility and forced bourses like the New York Stock Exchange (NYSE) to close their trading floors, raising questions about the need for such spaces. The NYSE, owned by Intercontinental Exchange Inc, closed its stock and options trading floors in New York and San Francisco in March 23 after traders and an ICE employee tested positive for the virus. Rivals CME Group, Cboe Global Markets Inc and Nasdaq Inc also closed their options and futures pits in Chicago and Philadelphia. Despite the move to all-electronic trading, none of the exchange operators experienced any major technical glitches amid record volumes, and all of them reported first-quarter profits that beat analysts' expectations. ALSO READ: Markets at inflexion point; analysts bullish on consumer, telecom, pharma Cboe aims to reopen its options trading floor on June 1 after acknowledging that some customers were frustrated by the exchange's electronic trading tools and were unable to get the most risky and complex types of orders completed, it said on Friday. At the same time, Chief Executive Ed Tilly said Cboe will soon roll out new electronic solutions that will replicate benefits of the floor for those more complex orders, prompting analysts to question the need to reopen the spaces at all. ALSO READ: Stock market eyeing economy reopening, not virus-related data: Chris Wood "Our position has always been that when our customers tell us that there's no utility in the trading crowd, when brokers provide no service to their customers, the electronic solution will close the trading floor, not Cboe and not its management team," Tilly said. The NYSE is the only US exchange that still operates stock trading floors alongside electronic trading. It released a study on Thursday showing that floor traders dampen volatility by providing tighter bid-offer spreads, especially at the market close, saving investors millions of dollars a day. While the floor distinguishes NYSE from its competitors, the closure has not led to a significant drop in market share, according to an analysis released Friday by industry trade group, the Securities Industry and Financial Markets Association. "Only time will tell if investors feel the difference in execution of their trades with or without the human interaction on the floor," the study said. ALSO READ: Techies boning up on new techs to deal with future challenges in job market The NYSE plans to reopen its San Francisco-based options floor on Monday. It has not given a date for the reopening of its iconic floors at 11 Wall Street. CME, which runs the world's largest futures exchange, said on Wednesday it was unclear when it would reopen its trading floors, where about 10 per cent of its business was done. "We will not do anything irrational either way until we know exactly where health officials and government officials are going to come down as far as multiple people getting together in a single location," CEO Terry Duffy told analysts on a call. The closure had little effect on trading activity, CME said. "Participants can trade any strategy today as easily as they could prior to the closure of the floor," said Sean Tully, a senior managing director at the exchange.
2 May 08:12 • Business-Standard • https://www.business-standard.com/article/international/will-us-exchange-trading-floors-still-be-relevant-after-covid-19-recovery-120050200395_1.htmlRating: 0.30
Will US exchange trading floors still be relevant post-coronavirus?
The coronavirus pandemic has upended US equities trading with unprecedented market volatility and forced bourses like the New York Stock Exchange to close their trading floors, raising questions about the need for such spaces. The NYSE, which is owned by Intercontinental Exchange Inc, closed its stock and options trading floors in New York and San Francisco in March 23 after traders and an ICE employee tested positive for the virus. Rivals CME Group, Cboe Global Markets Inc and Nasdaq Inc also closed their options and futures pits in Chicago and Philadelphia. Despite the move to all-electronic trading, none of the exchange operators experienced any major technical glitches amid record volumes, and all of them reported first-quarter profits that beat analysts' expectations. Cboe aims to reopen its options trading floor on June 1 after acknowledging that some customers were frustrated by the exchange's electronic trading tools and were unable to get the most risky and complex types of orders completed, it said on Friday. At the same time, Chief Executive Ed Tilly said Cboe will soon roll out new electronic solutions that will replicate benefits of the floor for those more complex orders, prompting analysts to question the need to reopen the spaces at all. "Our position has always been that when our customers tell us that there's no utility in the trading crowd, when brokers provide no service to their customers, the electronic solution will close the trading floor, not Cboe and not its management team," Tilly said. The NYSE is the only US exchange that still operates stock trading floors alongside electronic trading. It released a study on Thursday showing that floor traders dampen volatility by providing tighter bid-offer spreads, especially at the market close, saving investors millions of dollars a day. While the floor distinguishes NYSE from its competitors, the closure has not led to a significant drop in market share, according to an analysis released Friday by industry trade group, the Securities Industry and Financial Markets Association. "Only time will tell if investors feel the difference in execution of their trades with or without the human interaction on the floor," the study said. The NYSE plans to reopen its San Francisco-based options floor on Monday. It has not given a date for the reopening of its iconic floors at 11 Wall Street. CME, which runs the world's largest futures exchange, said on Wednesday it was unclear when it would reopen its trading floors, where about 10 percent of its business was done. "We will not do anything irrational either way until we know exactly where health officials and government officials are going to come down as far as multiple people getting together in a single location," CEO Terry Duffy told analysts on a call. The closure had little effect on trading activity, CME said. "Participants can trade any strategy today as easily as they could prior to the closure of the floor," said Sean Tully, a senior managing director at the exchange.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/world/will-us-exchange-trading-floors-still-be-relevant-post-coronavirus-5214631.htmlRating: 0.30
ECB keeps key interest rates unchanged, boosts pandemic response
2 May 16:36
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ECB keeps key interest rates unchanged, boosts pandemic response
Frankfurt: The European Central Bank (ECB) decided to leave key interest rates for the euro area unchanged while introducing a series of new measures to boost its pandemic response.The ECB Governing Council said the eurozone base interest rate will remain at 0.00 per cent, with the marginal lending rate and deposit rate remaining at 0.25 per cent and minus 0.50 per cent, respectively."We have kept our key interest rates at historically low levels, so borrowing costs remain low," the central bank said in a separate statement detailing its coronavirus response.Boosted response To support liquidity in the euro area, the ECB decided to further ease conditions on the targeted longer-term refinancing operations (TLTRO III) and introduced a new series of non-targeted pandemic emergency longer-term refinancing operations, namely PELTROs, which will be commencing in May 2020 and maturing in a staggered sequence between July and September 2021.The newly announced measures added to the central bank's comprehensive response to the coronavirus crisis, including a 750-billion-euro ($816 billion) pandemic emergency purchase programme (PEPP) announced on March 18.Together with its regular asset purchase program at a monthly pace of 20 billion euros, and an additional 120-billion-euro temporary envelope until the end of the year, the ECB's planned bond-buying scheme this year has exceeded 1.1 trillion euros."The Governing Council is fully prepared to increase the size of the PEPP and adjust its composition, by as much as necessary and for as long as needed," the central bank said.Gloomy outlookData released by the European Union's (EU) statistic office on Thursday morning showed that economic output contracted by 3.8 per cent quarter-on-quarter in the euro area and by 3.5 per cent in the EU, marking the sharpest decline since records began in 1995."The euro area is facing an economic contraction of magnitude and speed that are unprecedented in peacetime," ECB President Christine Lagarde said in a video press conference following the monetary policy meeting.Measures to contain the spread of the COVID-19 have "largely halted economic activity in all the countries of the euro area and across the globe" and caused a profound deterioration in labour market conditions, Lagarde said.She pointed out that the first quarter is only partially affected by the coronavirus and the impact will be more severe in the second quarter given the sharp downturn seen in April.Lagarde said the ECB staff suggests that euro area GDP could fall by between 5 per cent and 12 per cent this year, "depending crucially on the duration of the containment measures and the success of policies to mitigate the economic consequences for businesses and workers."Moreover, headline inflation is likely to decline considerably further over the coming months given the tumbling of oil prices, Lagarde said, adding that market-based indicators of longer-term inflation expectations have remained at "depressed levels".Effective responseSince the last ECB policy meeting on March 12, the central bank has rolled out a number of measures to counter the risks posed by the coronavirus pandemic.Besides the PEPP, which Lagarde on Thursday called "the best tool we have in our toolbox," the central bank also enlarged the pool of collateral for banks, eased conditions for the targeted lending facility TLTRO III, and provided temporary capital relief for banks.According to Thursday's decision, for those banks meeting the lending performance threshold, the interest rate applied from June 24, 2020, to June 23, 2021, on all TLTRO III operations can be as low as minus 1 per cent, 50 basis points below the current deposit facility rate of minus 0.5 per cent.Lagarde said the combination of measures that the ECB is taking has been effective, which could be shown in the results of the latest bank lending survey. She emphasised that the ECB is closely monitoring the impact of its measures and will "make full use of the flexibility" embedded in the PEPP and other policy tools.Lagarde also noted that the central bank welcomed the EU's 540-billion-euro aid package to support workers, businesses and sovereigns, and welcomed the European Council's agreement to work towards establishing a recovery fund to deal with the pandemic crisis.Marcel Fratzscher, president of the Berlin-based DIW research institute, said the ECB has been "very successful" in preventing panic in the financial markets and stabilising the banks over the past six weeks.However, the success of the ECB somehow relieved the pressure on politicians to act quickly and implement the necessary European solutions, Fratzscher noted, calling for more efforts towards a convincing EU recovery fund.
2 May 16:36 • Times of Oman • https://timesofoman.com/article/3014443/business/ecb-keeps-key-interest-rates-unchanged-boosts-pandemic-responseRating: 1.06
Coronavirus crisis: RBI Governor Shaktikanta Das to meet bank chiefs today: What's on the agenda?
India coronavirus news: Since the February 2020 monetary policy meeting, the central bank has injected 3.2 per cent of GDP into the economy to tackle the liquidity crisis Reserve Bank of India (RBI) governor Shaktikanta Das will hold a meeting with bank chiefs on Saturday to review the financial sector and discuss measures needed to be taken to strengthen the industry amid novel coronavirus crisis. The apex bank will discuss several steps taken by it to revive the economy such as moderation in interest rates, their transmission to end-consumers, and liquidity infusion measures taken to support the industry. Apart from reviewing the steps to revive the economy and industry, facilities provided to the MSME industry and rural sector shall also be evaluated in Saturday's meeting. Bank chiefs shall also be asked for their suggestions on the steps that need to be taken to revive the economy, PTI reported. The RBI has taken several steps to assuage the pressure faced by borrowers, lenders, and other entities such as mutual funds and assured to take more measures to deal with the developing situation. Since the February 2020 monetary policy meeting, the central bank has injected 3.2 per cent of GDP into the economy to tackle the liquidity crisis. Saturday's meeting is important because it comes days after the Supreme Court (SC) had directed the RBI to ensure that its March 27 guidelines directing lending institutions to grant a three-month moratorium to all borrowers were followed in letter and spirit. Meanwhile, the central government announced the extension of lockdown by 2 more weeks beginning from May 4, 2020, on Friday but with several relaxations in the green zones or the areas that have nil COVID-19 cases. The Ministry of Home Affairs also issued guidelines to regulate select activities based on the risk profiling of districts into red, orange, and green zones. Also read: Coronavirus India Live Updates: Lockdown 3.0 extended till May 17; total COVID-19 cases rise to 35,365 Also read: Govt holds back April GST numbers; announcement likely by May 5
2 May 03:47 • Business Today • https://www.businesstoday.in/current/economy-politics/coronavirus-crisis-rbi-governor-shaktikanta-das-to-meet-bank-chiefs-today-what-on-the-agenda/story/402655.htmlRating: 2.10
Rwanda drops lending rate to 4.5pc
The National Bank of Rwanda has slashed its lending rate to 4.5 per cent from five per cent, to stimulate economic growth amid the coronavirus pandemic that has halted economic activity. This decision, along with other implemented policy measures taken in March, will support commercial banks to continue financing the economy, a statement from the central bank reads. "The Monetary Policy Committee assessed recent negative economic developments, the unfolding impact of previous policy measures and the outlook of the economy. Considering that inflation is projected to decelerate in the second half of 2020, owing to a drop in aggregate demand, the committee decided to cut the central bank rate," the bank said on Thursday. "The central bank also eased prudential requirements to exceptionally allow banks to restructure outstanding loans of borrowers facing temporary cash flow challenges arising from the Covid-19 pandemic. By April 10, commercial banks had restructured loans worth Rwf255 billion ($272 million). A reduction in the reserve requirement in March released Rwf23.4 billion ($25 million) at the start of April, the central bank said, while a credit cushion of up to Rwf50 billion ($53 million) is available for lenders during the coronavirus lockdown. Advertisement The government projects economic growth to fall to 3.5 per cent this year, down from the 10 per cent that the IMF had predicted Rwanda to grow by. President Paul Kagame on Monday said that the government was engaged in talks with international lenders to postpone debt repayment for two years in order for the country to reinvest and stir economic growth. Rwanda is also among 11 countries that will receive debt relief of $11 million from the IMF.
2 May 00:00 • The East African • https://www.theeastafrican.co.ke/business/Rwanda-drops-lending-rate/2560-5540334-ft9kr0/index.htmlRating: 0.41
Climate activists claim win as JPMorgan sets timetable for new lead director
2 May 02:21
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3 articles
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Climate activists claim win as JPMorgan sets timetable for new lead director
(Reuters) - New York City’s pension fund leader claimed a win on Friday after JPMorgan Chase & Co set a timetable to replace its lead independent director, a former Exxon Mobil Corp CEO who had become the focus of criticism of the bank’s climate record. The director, Lee Raymond, who is up for re-election at the bank’s annual meeting on May 19, had earlier asked the board to start a formal process to find a successor for the lead independent director role, JPMorgan said previously. But in a securities filing on Thursday JPMorgan said it plans to name a new lead independent director “by end of summer 2020.” A JPMorgan spokesman declined to comment beyond the language in the filings. New York City Comptroller Scott Stringer, who oversees the city’s pension fund and whose office last month began a campaign to vote out Raymond, in a statement sent by a spokeswoman called the change “a tremendous victory for shareholders and for the planet.” Stringer’s office in its campaign against Raymond had cited JPMorgan’s lending to fossil fuel companies and Raymond’s long tenure on JPMorgan’s board. Raymond has been on the board of JPMorgan and a predecessor since 1987. Institutional Shareholder Services on Thursday had recommended investors back all JPMorgan directors, but called its support for Raymond “cautionary” in order “to convey that additional, new independent oversight is necessary as the process to find his successor unfolds.”[nL1N2CJ03L]
2 May 02:21 • Reuters • https://www.reuters.com/article/us-jpmorgan-climate-idUSKBN22E00PRating: 4.04
Climate activists claim win as JPMorgan sets timetable for new lead director
New York City’s pension fund leader claimed a win on Friday after JPMorgan Chase & Co set a timetable to replace its lead independent director, a former Exxon Mobil Corp CEO who had become the focus of criticism of the bank’s climate record. The director, Lee Raymond, who is up for re-election at the bank’s annual meeting on May 19, had earlier asked the board to start a formal process to find a successor for the lead independent director role, JPMorgan said previously. But in a securities filing on Thursday JPMorgan said it plans to name a new lead independent director “by end of summer 2020.” A JPMorgan spokesman declined to comment beyond the language in the filings. New York City Comptroller Scott Stringer, who oversees the city’s pension fund and whose office last month began a campaign to vote out Raymond, in a statement sent by a spokeswoman called the change “a tremendous victory for shareholders and for the planet.” Stringer’s office in its campaign against Raymond had cited JPMorgan’s lending to fossil fuel companies and Raymond’s long tenure on JPMorgan’s board. Raymond has been on the board of JPMorgan and a predecessor since 1987. Institutional Shareholder Services on Thursday had recommended investors back all JPMorgan directors, but called its support for Raymond “cautionary” in order “to convey that additional, new independent oversight is necessary as the process to find his successor unfolds.” (Reporting by Ross Kerber; Editing by Leslie Adler)
2 May 00:41 • Financial Post • https://business.financialpost.com/pmn/business-pmn/climate-activists-claim-win-as-jpmorgan-sets-timetable-for-new-lead-directorRating: 0.94
Climate activists claim win as JPMorgan sets timetable for new lead director
By Ross Kerber (Reuters) - New York City's pension fund leader claimed a win on Friday after JPMorgan Chase (NYSE:JPM) & Co set a timetable to replace its lead independent director, a former Exxon Mobil Corp (NYSE:XOM) CEO who had become the focus of criticism of the bank's climate record. The director, Lee Raymond, who is up for re-election at the bank's annual meeting on May 19, had earlier asked the board to start a formal process to find a successor for the lead independent director role, JPMorgan said previously. But in a securities filing on Thursday JPMorgan said it plans to name a new lead independent director "by end of summer 2020." A JPMorgan spokesman declined to comment beyond the language in the filings. New York City Comptroller Scott Stringer, who oversees the city's pension fund and whose office last month began a campaign to vote out Raymond, in a statement sent by a spokeswoman called the change "a tremendous victory for shareholders and for the planet." Stringer's office in its campaign against Raymond had cited JPMorgan's lending to fossil fuel companies and Raymond's long tenure on JPMorgan's board. Raymond has been on the board of JPMorgan and a predecessor since 1987. Institutional Shareholder Services on Thursday had recommended investors back all JPMorgan directors, but called its support for Raymond "cautionary" in order "to convey that additional, new independent oversight is necessary as the process to find his successor unfolds."[nL1N2CJ03L]
2 May 00:00 • Investing.com • https://www.investing.com/news/economy/climate-activists-claim-win-as-jpmorgan-sets-timetable-for-new-lead-director-2158494Rating: 0.30
IMF approves emergency loan for Ecuador
2 May 06:50
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IMF approves emergency loan for Ecuador
The International Monetary Fund has approved a $643 million emergency loan for Ecuador, as the coronavirus pandemic and low oil prices hit the South American nation. The Ecuadorian Ministry of Economy and Finance said Friday the five-year loan came with "favorable conditions" at 1.05 percent interest. The country faces a double crisis in the form of the virus and a fall in oil prices, with the IMF forecasting a drop of 6.3 percent in the country's GDP in 2020. Ecuador has so far reported more than 25,000 COVID-19 infections and 1,000 deaths linked to the disease. "This financing will provide the necessary liquidity to support the reactivation of production and the protection of jobs," the ministry said in a statement. The credit offering joins a three-year economic assistance program signed by Lenin Moreno's government with the international body in 2019. That $4.2 billion loan involved a raft of cuts and fiscal adjustments that led to a wave of protests in October 2019 when the government raised fuel prices.
2 May 06:50 • Digital Journal • http://www.digitaljournal.com/news/world/imf-approves-emergency-loan-for-ecuador/article/571086Rating: 0.78
IMF approves emergency loan for Ecuador
The International Monetary Fund has approved a $643 million emergency loan for Ecuador, as the coronavirus pandemic and low oil prices hit the South American nation. The Ecuadorian Ministry of Economy and Finance said Friday the five-year loan came with "favorable conditions" at 1.05 percent interest. The country faces a double crisis in the form of the virus and a fall in oil prices, with the IMF forecasting a drop of 6.3 percent in the country's GDP in 2020. Ecuador has so far reported more than 25,000 COVID-19 infections and 1,000 deaths linked to the disease. "This financing will provide the necessary liquidity to support the reactivation of production and the protection of jobs," the ministry said in a statement. The credit offering joins a three-year economic assistance program signed by Lenin Moreno's government with the international body in 2019. That $4.2 billion loan involved a raft of cuts and fiscal adjustments that led to a wave of protests in October 2019 when the government raised fuel prices. an/lp/rbu/axn https://www.facebook.com/policies
2 May 06:53 • Pulse Live • https://www.pulselive.co.ke/news/world/imf-approves-emergency-loan-for-ecuador/qjrwnrsRating: 0.51
IMF approves $643 million in pandemic aid for Ecuador: ministry
QUITO (Reuters) - The International Monetary Fund has approved a request from Ecuador for emergency financing to fight the coronavirus pandemic, granting a $643 million loan, the Andean country’s economy ministry said on Friday. Ecuador has been among the hardest-hit countries in Latin America by the coronavirus, with 24,675 confirmed cases and 883 deaths, plus a further 1,357 deaths that were likely caused by the virus. “This financing will allow us to have the necessary liquidity to support the reactivation of the economy, and protect jobs,” the ministry said in a statement. The outbreak there is boosting pressure on President Lenin Moreno to default on $17 billion in debt and devote more resources toward fighting a pandemic that has left bodies in the streets of the country’s largest city, Guayaquil. Moreno is scrambling to cover expenses with $3 billion from multilateral agencies and China, but is still securing firm commitments from those creditors. The 5-year IMF loan has an interest rate of 1.05%, the ministry said.
2 May 01:56 • Reuters • https://www.reuters.com/article/us-ecuador-economy-idUSKBN22E031Rating: 4.04
IMF approves emergency loan for Ecuador
WASHINGTON, USA – The International Monetary Fund (IMF) has approved a $643-million emergency loan for Ecuador, as the coronavirus pandemic and low oil prices hit the South American nation. The Ecuadorian Ministry of Economy and Finance said on Friday, May 1, the 5-year loan came with "favorable conditions" at 1.05% interest. The country faces a double crisis in the form of the virus and a fall in oil prices, with the IMF forecasting a drop of 6.3% in the country's gross domestic product in 2020. Ecuador has so far reported more than 25,000 COVID-19 infections and 1,000 deaths linked to the disease. "This financing will provide the necessary liquidity to support the reactivation of production and the protection of jobs," the ministry said in a statement. The credit offering joins a 3-year economic assistance program signed by Lenin Moreno's government with the international body in 2019. That $4.2-billion loan involved a raft of cuts and fiscal adjustments that led to a wave of protests in October 2019 when the government raised fuel prices. – Rappler.com
2 May 07:00 • Rappler • https://www.rappler.com/business/259795-imf-approves-emergency-loan-ecuador-may-1-2020-coronavirus-oil-pricesRating: 1.64
IMF Approves $643 Million Disbursement to Ecuador to Fight COVID-19 Pandemic
The International Monetary Fund will provide Ecuador with a $643 million loan to combat the novel coronavirus outbreak, the nation's Ministry of Economy and Finance said on Friday. According to the Ministry, the IMF loan has been granted for 5 years and has an interest rate of 1.05%. On 1 May, the International Monetary Fund approved a two-year $10.8 billion credit line for Colombia under the Flexible Credit Line. In April, it approved $389 million in emergency funding for El-Salvador to help cushion the nation’s economy from the impact of nationwide restrictions on transportation and quarantine for citizens exposed to the coronavirus. Previously, the IMF said it was providing some $100 billion as a short-term liquidity line to more than 100 countries requiring emergency financing due to hardship caused by the COVID-19 pandemic.
2 May 03:24 • Sputniknews • https://sputniknews.com/latam/202005021079168323-imf-approves-643-million-disbursement-to-ecuador-to-fight-covid-19-pandemic/Rating: 3.96
IMF approves $91 mln loan to Malawi for COVID-19 trade balance woes
BLANTYRE — The International Monetary Fund (IMF) has approved a $91 million loan for Malawi to help fund a balance of payments deficit exacerbated by the COVID-19 pandemic, the Fund said in a statement. “The COVID-19 pandemic is having a severe impact on Malawi, creating an urgent balance of payments need,” Tao Zhang, deputy manager of the IMF, said in the statement. “The authorities have been proactive in mitigating the impact of the pandemic, including through increased spending on health care and social assistance … and ensuring food security through purchase and storage of agricultural harvests,” he added. The low-income southeast African country, which so far has reported 37 coronavirus cases and three deaths, was already suffering from economic stagnation linked to drought, leading to increasing unrest over falling living standards. Malawi’s main export is tobacco, which makes up about half of export earnings, alongside other crops such as tea and sugar. The World Bank said last month it had approved a $37 million funding package to help Malawi respond to the coronavirus. (Reporting by Frank Phiri Writing by Tim Cocks Editing by Helen Popper)
2 May 09:25 • Financial Post • https://business.financialpost.com/pmn/business-pmn/imf-approves-91-mln-loan-to-malawi-for-covid-19-trade-balance-woesRating: 0.94
IMF confirms $643 million in aid for Ecuador, says more support needed
WASHINGTON (Reuters) - The International Monetary Fund on Saturday confirmed it had approved $643 million in emergency assistance for Ecuador, but said the Andean country would need additional support from other external partners to respond to the coronavirus pandemic. IMF Managing Director Kristalina Georgieva said the pandemic, plummeting oil prices and a sharp drop in global demand were having a devastating effect on Ecuador, one of the largest oil exporters in Latin America. The IMF said the emergency aid would help Ecuador finance much-needed health and social assistance spending, while helping to catalyze additional resources from other multilateral financial institutions such as the World Bank.
2 May 00:00 • Investing.com • https://www.investing.com/news/economy/imf-confirms-643-million-in-aid-for-ecuador-says-more-support-needed-2158739Rating: 0.30
This is how you can apply for Unemployment relief in South Africa during lockdown
Apply for unemployment relief in South Africa As the coronavirus (Covid-19) induced lockdown takes its toll, most families have lost a substantial amount of their income and are in desperate need of relief. Many South African households breathed a sigh of relief last week after President Cyril Ramaphosa revealed that the government would provide special relief aid for those worst affected by the pandemic and have lost the ability to sustain their livelihoods. According to the announcement, individuals will receive Social Relief of Distress Grant of R350. The aid will be provided every month for the next six months. However, you might be wondering how you actually can go about it. Who qualifies? Anyone who has lost a significant amount of their income due to the coronavirus pandemic can apply. Applicants must be above 18, unemployed, and must not qualify to receive any other benefit scheme such as an employment benefit aid. Those seeking aid should also not be residents of government-funded or subsidized institutions. How to applyUnemployed South Africans are spoiled for ways in which they can apply for aid. Applications can be done on email to SRD@sassa.gov.za. or on instant messenger application, WhatsApp- which is the easiest way. In order to apply on WhatsApp, you need to read the article: How you to apply for aid using WhatsApp. What do you need? Applicants will need to provide accurate identity documents. To apply for the R350 per month Sassa Grant you must do the following: Articles You May Want To Read: How To Never Miss IHarare Latest News On Your News Feed Following Facebook’s New Algorithm IMPORTANT NOTICE: Dear invaluable iHarare Reader. It is our sheer delight to introduce our intelligent Whatsapp service which allows you to access the latest News, Jobs and Exchange rates on WhatsApp. Send a WhatsApp message with the word HIE to +263718636522 or just CLICK HERE to try it out. iHarare has morphed into an integrated information one-stop-shop. Please click on the links highlighted in Red to access News, Events, Jobs, Pricecheck, Classifieds, Dating and Education services by iHarare.For any queries contact us by CLICKING HERE .
2 May 06:20 • iHarare News • https://iharare.com/apply-for-unemployment-relief-in-south-africa/Rating: 0.59
A decade after debt crisis, Greece on verge of virus recession
2 May 04:04
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A decade after debt crisis, Greece on verge of virus recession
ATHENS, May 2 — Ten years after sinking into its worst economic crisis in living memory, Greece once again faces the spectre of a grave recession in the midst of a global coronavirus lockdown. Though the country has so far been spared the death toll of other European nations at fewer than 150 fatalities from Covid-19, it will not escape the resulting economic downturn, Prime Minister Kyriakos Mitsotakis warned this week. “The consequences of this coronavirus attack will undoubtedly be dramatic,” he told parliament on Thursday. “We know with certainty that (the recession) will be deep... we don’t know how long the health crisis will last, we don’t yet know if we’ll have tourism.” Tourism is one of Greece’s most important sources of revenue, along with shipping. The Greek state alone could lose €8-10 billion (RM38.1-47.6 billion) in income this year, the prime minister said. Where’s the money? Greece has already adopted measures worth €17.5 billion, or 10 per cent of national output, to support businesses and employees, Mitsotakis said. Including EU funds, the package will reach €24 billion, he said. But the opposition has questioned whether the money has actually reached the intended recipients. “Where is this money? It’s good for announcements but actual businesses and (employees) have not received a single euro,” former leftist prime minister Alexis Tsipras said Thursday, predicting that layoffs will soon be “out of control”. Greece this year had been counting on a growth spurt of 2.4 per cent. After exiting the final debt crisis bailout in 2018, its borrowing rates were at historic lows — in October Athens even sold treasury bills at a negative rate — and it has cash reserves of more than €36 billion at hand. But with most of its economy in virus quarantine since March and global lockdowns expected to wreak havoc on tourism, Greece is expected to sink into a 10 per cent recession this year, according to the International Monetary Fund. ‘Irreparable’ damage Panagiotis Petrakis, professor of finance at the University of Athens, argued that the economic blow will be less severe. “The most likely scenario is a six per cent contraction, provided there is no deterioration in the pandemic,” he told AFP. Petrakis also believes that the economic impact of this crisis will be less protracted. The IMF itself estimates a 5.5 per cent Greek recovery in 2021. The Greek finance ministry says the downturn could be limited to 4.7 per cent through support measures, followed by a 5.1 per cent rebound. The jobless rate will approach 20 per cent, it said yesterday. The government will begin easing lockdown restrictions this month, with most shops opening by May 11 and restaurants and year-round hotels following on June 1. But few expect any foreign visitors before July. Many Greek businesses fear the damage will be irreparable, especially with minimum two-metre social distancing requirements squeezing out customers. “Last summer I had 10 tables outside and 10 inside. Now, I will just have three tables outside and I’m supposed to make do,” says Costas Gogos, owner of a tavern in the port of Rafina near Athens. “Many will not even reopen, they won’t manage with so few tables,” added a neighbouring restaurant owner. Memories of 2010 It was on May 2, 2010, when the socialist government of George Papandreou signed the first of three eventual bailouts with the European Commission, the European Central Bank and the IMF that would total 350 billion euros. A week earlier, Papandreou had stunned the nation by announcing the call for international assistance. His televised address from the tiny island of Kastelorizo is indelibly etched in the nation’s collective memory. In the years that followed, a quarter of Greek national output would be wiped out in wave upon wave of wage and pension cuts and tax hikes demanded by the so-called troika of creditors. Unemployment soared to a high of 27 per cent before eventually falling to 16 per cent in March, still the highest in the eurozone. Dozens of general strikes and hundreds of street protests would follow, many of them violent. In one of the worst incidents on May 5, 2010, three people died in a bank set on fire during an anti-austerity protest, one of them a pregnant woman. The culprits were never caught. The crisis was sparked by reckless state spending and misreporting of fiscal data to the EU. When revealed by Papandreou’s government, it caused Greece’s borrowing rates to spike beyond reach. — AFP
2 May 04:04 • Malaymail • https://www.malaymail.com/news/money/2020/05/02/a-decade-after-debt-crisis-greece-on-verge-of-virus-recession/1862320Rating: 1.42
A decade after debt crisis, Greece on verge of virus recession
Ten years after sinking into its worst economic crisis in living memory, Greece once again faces the spectre of a grave recession in the midst of a global coronavirus lockdown. Though the country has so far been spared the death toll of other European nations at fewer than 150 fatalities from COVID-19, it will not escape the resulting economic downturn, Prime Minister Kyriakos Mitsotakis warned this week. "The consequences of this coronavirus attack will undoubtedly be dramatic," he told parliament on Thursday. "We know with certainty that (the recession) will be deep... we don't know how long the health crisis will last, we don't yet know if we'll have tourism." Tourism is one of Greece's most important sources of revenue, along with shipping. The Greek state alone could lose 8-10 billion euros ($8.8-11 billion) in income this year, the prime minister said. - Where's the money? - Greece has already adopted measures worth 17.5 billion euros, or 10 percent of national output, to support businesses and employees, Mitsotakis said. Including EU funds, the package will reach 24 billion euros, he said. But the opposition has questioned whether the money has actually reached the intended recipients. "Where is this money? It's good for announcements but actual businesses and (employees) have not received a single euro," former leftist prime minister Alexis Tsipras said Thursday, predicting that layoffs will soon be "out of control". Greece this year had been counting on a growth spurt of 2.4 percent. After exiting the final debt crisis bailout in 2018, its borrowing rates were at historic lows -- in October Athens even sold treasury bills at a negative rate -- and it has cash reserves of more than 36 billion euros at hand. But with most of its economy in virus quarantine since March and global lockdowns expected to wreak havoc on tourism, Greece is expected to sink into a 10 percent recession this year, according to the International Monetary Fund. - 'Irreparable' damage - Panagiotis Petrakis, professor of finance at the University of Athens, argued that the economic blow will be less severe. "The most likely scenario is a six percent contraction, provided there is no deterioration in the pandemic," he told AFP. Petrakis also believes that the economic impact of this crisis will be less protracted. The IMF itself estimates a 5.5 percent Greek recovery in 2021. The Greek finance ministry says the downturn could be limited to 4.7 percent through support measures, followed by a 5.1 percent rebound. The jobless rate will approach 20 percent, it said Friday. The government will begin easing lockdown restrictions this month, with most shops opening by May 11 and restaurants and year-round hotels following on June 1. But few expect any foreign visitors before July. Many Greek businesses fear the damage will be irreparable, especially with minimum two-metre (6.5-feet) social distancing requirements squeezing out customers. "Last summer I had 10 tables outside and 10 inside. Now, I will just have three tables outside and I'm supposed to make do," says Costas Gogos, owner of a tavern in the port of Rafina near Athens. "Many will not even reopen, they won't manage with so few tables," added a neighbouring restaurant owner. - Memories of 2010 - It was on May 2, 2010, when the socialist government of George Papandreou signed the first of three eventual bailouts with the European Commission, the European Central Bank and the IMF that would total 350 billion euros. A week earlier, Papandreou had stunned the nation by announcing the call for international assistance. His televised address from the tiny island of Kastelorizo is indelibly etched in the nation's collective memory. In the years that followed, a quarter of Greek national output would be wiped out in wave upon wave of wage and pension cuts and tax hikes demanded by the so-called troika of creditors. Unemployment soared to a high of 27 percent before eventually falling to 16 percent in March, still the highest in the eurozone. Dozens of general strikes and hundreds of street protests would follow, many of them violent. In one of the worst incidents on May 5, 2010, three people died in a bank set on fire during an anti-austerity protest, one of them a pregnant woman. The culprits were never caught. The crisis was sparked by reckless state spending and misreporting of fiscal data to the EU. When revealed by Papandreou's government, it caused Greece's borrowing rates to spike beyond reach.
2 May 02:00 • Digital Journal • http://www.digitaljournal.com/news/world/a-decade-after-debt-crisis-greece-on-verge-of-virus-recession/article/571081Rating: 0.78
A decade after debt crisis, Greece on verge of virus recession
ATHENS, Greece – Ten years after sinking into its worst economic crisis in living memory, Greece once again faces the specter of a grave recession in the midst of a global coronavirus lockdown. Though the country has so far been spared the death toll of other European nations at fewer than 150 fatalities from COVID-19, it will not escape the resulting economic downturn, Prime Minister Kyriakos Mitsotakis warned this week. "The consequences of this coronavirus attack will undoubtedly be dramatic," he told parliament on Thursday, April 30. "We know with certainty that [the recession] will be deep.... We don't know how long the health crisis will last, we don't yet know if we'll have tourism." Tourism is one of Greece's most important sources of revenue, along with shipping. The Greek state alone could lose 8 billion to 10 billion euros ($8.8 billion to $11 billion) in income this year, the prime minister said. Where's the money? Greece has already adopted measures worth 17.5 billion euros, or 10% of national output, to support businesses and employees, Mitsotakis said. Including European Union (EU) funds, the package will reach 24 billion euros, he said. But the opposition has questioned whether the money has actually reached the intended recipients. "Where is this money? It's good for announcements but actual businesses and [employees] have not received a single euro," former leftist prime minister Alexis Tsipras said on Thursday, predicting that layoffs will soon be "out of control." Greece this year had been counting on a growth spurt of 2.4%. After exiting the final debt crisis bailout in 2018, its borrowing rates were at historic lows – in October Athens even sold treasury bills at a negative rate – and it has cash reserves of more than 36 billion euros at hand. But with most of its economy in virus quarantine since March and global lockdowns expected to wreak havoc on tourism, Greece is expected to sink into a 10% recession this year, according to the International Monetary Fund (IMF). 'Irreparable' damage Panagiotis Petrakis, professor of finance at the University of Athens, argued that the economic blow will be less severe. "The most likely scenario is a 6% contraction, provided there is no deterioration in the pandemic," he told Agence France-Presse. Petrakis also believes that the economic impact of this crisis will be less protracted. The IMF itself estimates a 5.5% Greek recovery in 2021. The Greek finance ministry said the downturn could be limited to 4.7% through support measures, followed by a 5.1% rebound. The jobless rate will approach 20%, it said on Friday, May 1. The government will begin easing lockdown restrictions this month, with most shops opening by May 11 and restaurants and year-round hotels following on June 1. But few expect any foreign visitors before July. Many Greek businesses fear the damage will be irreparable, especially with minimum 2-meter (6.5-feet) social distancing requirements squeezing out customers. "Last summer, I had 10 tables outside and 10 inside. Now, I will just have 3 tables outside and I'm supposed to make do," said Costas Gogos, owner of a tavern in the port of Rafina near Athens. "Many will not even reopen, they won't manage with so few tables," added a neighboring restaurant owner. Memories of 2010 It was on May 2, 2010, when the socialist government of George Papandreou signed the first of 3 eventual bailouts with the European Commission, the European Central Bank, and the IMF that would total 350 billion euros. A week earlier, Papandreou had stunned the nation by announcing the call for international assistance. His televised address from the tiny island of Kastelorizo is indelibly etched in the nation's collective memory. In the years that followed, a quarter of Greek national output would be wiped out in wave upon wave of wage and pension cuts and tax hikes demanded by the so-called troika of creditors. Unemployment soared to a high of 27% before eventually falling to 16% in March, still the highest in the eurozone. Dozens of general strikes and hundreds of street protests would follow, many of them violent. In one of the worst incidents on May 5, 2010, 3 people died in a bank set on fire during an anti-austerity protest, one of them a pregnant woman. The culprits were never caught. The crisis was sparked by reckless state spending and misreporting of fiscal data to the EU. When revealed by Papandreou's government, it caused Greece's borrowing rates to spike beyond reach. – Rappler.com
2 May 02:45 • Rappler • https://www.rappler.com/business/259783-decade-after-debt-crisis-greece-verge-coronavirus-recession?utm_medium=Social&utm_source=TwitterRating: 1.64
A decade after debt crisis, Greece on verge of virus recession
Ten years after sinking into its worst economic crisis in living memory, Greece once again faces the spectre of a grave recession in the midst of a global coronavirus lockdown. Though the country has so far been spared the death toll of other European nations at fewer than 150 fatalities from COVID-19, it will not escape the resulting economic downturn, Prime Minister Kyriakos Mitsotakis warned this week. "The consequences of this coronavirus attack will undoubtedly be dramatic," he told parliament on Thursday. "We know with certainty that (the recession) will be deep... we don't know how long the health crisis will last, we don't yet know if we'll have tourism." Tourism is one of Greece's most important sources of revenue, along with shipping. The Greek state alone could lose 8-10 billion euros ($8.8-11 billion) in income this year, the prime minister said. Greece has already adopted measures worth 17.5 billion euros, or 10 percent of national output, to support businesses and employees, Mitsotakis said. Including EU funds, the package will reach 24 billion euros, he said. But the opposition has questioned whether the money has actually reached the intended recipients. "Where is this money? It's good for announcements but actual businesses and (employees) have not received a single euro," former leftist prime minister Alexis Tsipras said Thursday, predicting that layoffs will soon be "out of control". Greece this year had been counting on a growth spurt of 2.4 percent. After exiting the final debt crisis bailout in 2018, its borrowing rates were at historic lows -- in October Athens even sold treasury bills at a negative rate -- and it has cash reserves of more than 36 billion euros at hand. But with most of its economy in virus quarantine since March and global lockdowns expected to wreak havoc on tourism, Greece is expected to sink into a 10 percent recession this year, according to the International Monetary Fund. Panagiotis Petrakis, professor of finance at the University of Athens, argued that the economic blow will be less severe. "The most likely scenario is a six percent contraction, provided there is no deterioration in the pandemic," he told AFP. Petrakis also believes that the economic impact of this crisis will be less protracted. The IMF itself estimates a 5.5 percent Greek recovery in 2021. The Greek finance ministry says the downturn could be limited to 4.7 percent through support measures, followed by a 5.1 percent rebound. The jobless rate will approach 20 percent, it said Friday. The government will begin easing lockdown restrictions this month, with most shops opening by May 11 and restaurants and year-round hotels following on June 1. But few expect any foreign visitors before July. Many Greek businesses fear the damage will be irreparable, especially with minimum two-metre (6.5-feet) social distancing requirements squeezing out customers. "Last summer I had 10 tables outside and 10 inside. Now, I will just have three tables outside and I'm supposed to make do," says Costas Gogos, owner of a tavern in the port of Rafina near Athens. "Many will not even reopen, they won't manage with so few tables," added a neighbouring restaurant owner. It was on May 2, 2010, when the socialist government of George Papandreou signed the first of three eventual bailouts with the European Commission, the European Central Bank and the IMF that would total 350 billion euros. A week earlier, Papandreou had stunned the nation by announcing the call for international assistance. His televised address from the tiny island of Kastelorizo is indelibly etched in the nation's collective memory. In the years that followed, a quarter of Greek national output would be wiped out in wave upon wave of wage and pension cuts and tax hikes demanded by the so-called troika of creditors. Unemployment soared to a high of 27 percent before eventually falling to 16 percent in March, still the highest in the eurozone. Dozens of general strikes and hundreds of street protests would follow, many of them violent. In one of the worst incidents on May 5, 2010, three people died in a bank set on fire during an anti-austerity protest, one of them a pregnant woman. The culprits were never caught. The crisis was sparked by reckless state spending and misreporting of fiscal data to the EU. When revealed by Papandreou's government, it caused Greece's borrowing rates to spike beyond reach. hec/jph/jh/amj https://www.facebook.com/policies
2 May 02:03 • Pulse Live • https://www.pulselive.co.ke/news/world/a-decade-after-debt-crisis-greece-on-verge-of-virus-recession/z7nztseRating: 0.51
A decade after debt crisis, Greece on verge of virus recession
Athens, Greece | AFP | Ten years after sinking into its worst economic crisis in living memory, Greece once again faces the spectre of a grave recession in the midst of a global coronavirus lockdown. Though the country has so far been spared the death toll of other European nations at fewer than 150 fatalities from COVID-19, it will not escape the resulting economic downturn, Prime Minister Kyriakos Mitsotakis warned this week. “The consequences of this coronavirus attack will undoubtedly be dramatic,” he told parliament on Thursday. “We know with certainty that (the recession) will be deep… we don’t know how long the health crisis will last, we don’t yet know if we’ll have tourism.” Tourism is one of Greece’s most important sources of revenue, along with shipping. The Greek state alone could lose 8-10 billion euros ($8.8-11 billion) in income this year, the prime minister said. – Where’s the money? – Greece has already adopted measures worth 17.5 billion euros, or 10 percent of national output, to support businesses and employees, Mitsotakis said. Including EU funds, the package will reach 24 billion euros, he said. But the opposition has questioned whether the money has actually reached the intended recipients. “Where is this money? It’s good for announcements but actual businesses and (employees) have not received a single euro,” former leftist prime minister Alexis Tsipras said Thursday, predicting that layoffs will soon be “out of control”. Greece this year had been counting on a growth spurt of 2.4 percent. After exiting the final debt crisis bailout in 2018, its borrowing rates were at historic lows — in October Athens even sold treasury bills at a negative rate — and it has cash reserves of more than 36 billion euros at hand. But with most of its economy in virus quarantine since March and global lockdowns expected to wreak havoc on tourism, Greece is expected to sink into a 10 percent recession this year, according to the International Monetary Fund. – ‘Irreparable’ damage – Panagiotis Petrakis, professor of finance at the University of Athens, argued that the economic blow will be less severe. “The most likely scenario is a six percent contraction, provided there is no deterioration in the pandemic,” he told AFP. Petrakis also believes that the economic impact of this crisis will be less protracted. The IMF itself estimates a 5.5 percent Greek recovery in 2021. The Greek finance ministry says the downturn could be limited to 4.7 percent through support measures, followed by a 5.1 percent rebound. The jobless rate will approach 20 percent, it said Friday. The government will begin easing lockdown restrictions this month, with most shops opening by May 11 and restaurants and year-round hotels following on June 1. But few expect any foreign visitors before July. Many Greek businesses fear the damage will be irreparable, especially with minimum two-metre (6.5-feet) social distancing requirements squeezing out customers. “Last summer I had 10 tables outside and 10 inside. Now, I will just have three tables outside and I’m supposed to make do,” says Costas Gogos, owner of a tavern in the port of Rafina near Athens. “Many will not even reopen, they won’t manage with so few tables,” added a neighbouring restaurant owner. – Memories of 2010 – It was on May 2, 2010, when the socialist government of George Papandreou signed the first of three eventual bailouts with the European Commission, the European Central Bank and the IMF that would total 350 billion euros. A week earlier, Papandreou had stunned the nation by announcing the call for international assistance. His televised address from the tiny island of Kastelorizo is indelibly etched in the nation’s collective memory. In the years that followed, a quarter of Greek national output would be wiped out in wave upon wave of wage and pension cuts and tax hikes demanded by the so-called troika of creditors. Unemployment soared to a high of 27 percent before eventually falling to 16 percent in March, still the highest in the eurozone. Dozens of general strikes and hundreds of street protests would follow, many of them violent. In one of the worst incidents on May 5, 2010, three people died in a bank set on fire during an anti-austerity protest, one of them a pregnant woman. The culprits were never caught. The crisis was sparked by reckless state spending and misreporting of fiscal data to the EU. When revealed by Papandreou’s government, it caused Greece’s borrowing rates to spike beyond reach. Share on: WhatsApp
2 May 08:00 • The Independent Uganda: • https://www.independent.co.ug/a-decade-after-debt-crisis-greece-on-verge-of-virus-recession/Rating: 0.30
How Boeing went from appealing for government aid to snubbing it
2 May 01:53
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How Boeing went from appealing for government aid to snubbing it
NEW YORK/WASHINGTON (Reuters) - In just six weeks, Boeing Co (BA.N) went from seeking government aid to announcing it no longer needed it. The company’s $25 billion bond issue this week made all the difference. The upsized deal, this year’s largest investment-grade bond issue and the sixth largest on record, surpassed Boeing’s expectations. It underscores how the Chicago-based company capitalized on U.S. government support, even without having to accept taxpayer money as aid. On March 24, Boeing’s Chief Financial Officer Greg Smith told Reuters in an interview that the credit markets were “essentially closed” to the largest U.S. plane maker, and that the entire U.S. aerospace industry urgently needed capital to cope with the fallout from the coronavirus outbreak. A $2.3 trillion U.S. stimulus package, enacted into law at the end of March to provide relief to the U.S. economy which was hit hard by the pandemic, subsequently carved out $17 billion in aid for Boeing and other companies critical to national security. Boeing itself had lobbied extensively for aid and had called for at least $60 billion in government loans for the entire aerospace manufacturing sector. “We can’t let anything happen to Boeing,” U.S. President Donald Trump said last month, in one of the many instances he expressed support for the company. Several bond investors in interviews with Reuters cited the U.S. government’s backstopping of Boeing, as well as the Federal Reserve’s support of the credit markets in the aftermath of the pandemic, as reasons for the success of the capital raise. “Boeing is pretty vital to, not just the U.S. economy, but to national security interests. Also, you can’t argue (with the fact that) the Fed support is what has been the primary driver of what is allowing risk assets to boom,” said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. Already saddled with $39 billion in debt as of the end of March, Boeing started the week searching for cash, to cope not just with impact of the coronavirus outbreak on air travel, but with the long grounding of its flagship 737 Max aircraft as well, following a string of accidents. Smith and Boeing Chief Executive David Calhoun had taken what they called a “balanced” approach, reiterating on Wednesday that they were exploring a mix of government aid and commercial funding. One potential source of government aid, the $17 billion national security-related fund administered by the U.S. Treasury Department, came with significant strings, including the possibility of the U.S. government getting a stake in Boeing. That could have led to Boeing’s shareholders getting diluted. Then Boeing had a breakthrough. Its plan was to gauge investor interest for a bond issue of between $10 billion and $15 billion, according to people familiar with the deliberations. Yet demand for the bonds on Thursday peaked at more than $70 billion from over 600 investor accounts, according to the sources. Credit rating agencies told Boeing it could borrow as much as $25 billion through a bond issue and just about retain its investment-grade rating, according to the sources. This was important for Boeing, to reign in its borrowing costs and attract more investors to the bond offering, the sources said. Investors that traditionally invest in junk-rated debt, such as hedge funds, also flocked to Boeing’s bond issue, because it was priced at premium to investment-grade deals, according to the sources. Boeing priced different bond tranches spanning several maturities at between 450 basis points and 593 basis points, whereas the average spread for bonds of Boeing’s credit rating is 306 basis points, according to ICE BofA Data. “Let’s face it, Boeing is not an investment-grade company by any stretch of the imagination,” said Nick Maroutsos, co-head of global bonds at Janus Henderson Investors. Boeing declined to comment on its internal planning for the capital raise. But Boeing announced on Thursday that as a result of the strong response to its bond offering, it did “not plan to seek additional funding through the capital markets or the U.S. government options at this time.” Boeing had to make concessions to cajole the credit rating agencies and bond investors. It agreed to increase interest payments by 25 basis points each time the two biggest credit rating agencies lowered its rating by one level into junk, according to the bond issue’s prospectus. It capped these concessions at 100 basis points per credit-rating agency and 200 basis points in total. Boeing expects the money from the bond issue to cover its funding needs for the year, barring any unexpected event. Before announcing it would no longer seek government aid, it stress-tested its financial assumptions and considered numerous scenarios to ensure it has liquidity for the remainder of the year, according to the sources. Boeing has also had to take several cost-cutting measures, including announcing plans to shed about 16,000 jobs this year, about 10% of its workforce, through early retirements and likely layoffs. On Friday, Smith told Boeing employees in a message he wanted “to thank the administration for the actions they have taken to support our economy and the credit markets.”
2 May 01:53 • Reuters • https://www.reuters.com/article/us-boeing-debt-investors-analysis-idUSKBN22E025Rating: 4.04
How Boeing went from appealing for government aid to snubbing it
In just six weeks, Boeing Co went from seeking government aid to announcing it no longer needed it. NEW YORK/WASHINGTON: In just six weeks, Boeing Co went from seeking government aid to announcing it no longer needed it. The company's US$25 billion bond issue this week made all the difference. The upsized deal, this year's largest investment-grade bond issue and the sixth largest on record, surpassed Boeing's expectations. It underscores how the Chicago-based company capitalized on U.S. government support, even without having to accept taxpayer money as aid. On March 24, Boeing's Chief Financial Officer Greg Smith told Reuters in an interview that the credit markets were "essentially closed" to the largest U.S. plane maker, and that the entire U.S. aerospace industry urgently needed capital to cope with the fallout from the coronavirus outbreak. A US$2.3 trillion U.S. stimulus package, enacted into law at the end of March to provide relief to the U.S. economy which was hit hard by the pandemic, subsequently carved out US$17 billion in aid for Boeing and other companies critical to national security. Boeing itself had lobbied extensively for aid and had called for at least US$60 billion in government loans for the entire aerospace manufacturing sector. "We can't let anything happen to Boeing," U.S. President Donald Trump said last month, in one of the many instances he expressed support for the company. Several bond investors in interviews with Reuters cited the U.S. government's backstopping of Boeing, as well as the Federal Reserve's support of the credit markets in the aftermath of the pandemic, as reasons for the success of the capital raise. "Boeing is pretty vital to, not just the U.S. economy, but to national security interests. Also, you can't argue (with the fact that) the Fed support is what has been the primary driver of what is allowing risk assets to boom," said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. Already saddled with US$39 billion in debt as of the end of March, Boeing started the week searching for cash, to cope not just with impact of the coronavirus outbreak on air travel, but with the long grounding of its flagship 737 Max aircraft as well, following a string of accidents. Smith and Boeing Chief Executive David Calhoun had taken what they called a "balanced" approach, reiterating on Wednesday that they were exploring a mix of government aid and commercial funding. One potential source of government aid, the US$17 billion national security-related fund administered by the U.S. Treasury Department, came with significant strings, including the possibility of the U.S. government getting a stake in Boeing. That could have led to Boeing's shareholders getting diluted. Then Boeing had a breakthrough. Its plan was to gauge investor interest for a bond issue of between US$10 billion and US$15 billion, according to people familiar with the deliberations. Yet demand for the bonds on Thursday peaked at more than US$70 billion from over 600 investor accounts, according to the sources. Credit rating agencies told Boeing it could borrow as much as US$25 billion through a bond issue and just about retain its investment-grade rating, according to the sources. This was important for Boeing, to reign in its borrowing costs and attract more investors to the bond offering, the sources said. Investors that traditionally invest in junk-rated debt, such as hedge funds, also flocked to Boeing's bond issue, because it was priced at premium to investment-grade deals, according to the sources. Boeing priced different bond tranches spanning several maturities at between 450 basis points and 593 basis points, whereas the average spread for bonds of Boeing's credit rating is 306 basis points, according to ICE BofA Data. "Let's face it, Boeing is not an investment-grade company by any stretch of the imagination," said Nick Maroutsos, co-head of global bonds at Janus Henderson Investors. Boeing declined to comment on its internal planning for the capital raise. But Boeing announced on Thursday that as a result of the strong response to its bond offering, it did "not plan to seek additional funding through the capital markets or the U.S. government options at this time." CONCESSIONS Boeing had to make concessions to cajole the credit rating agencies and bond investors. It agreed to increase interest payments by 25 basis points each time the two biggest credit rating agencies lowered its rating by one level into junk, according to the bond issue's prospectus. It capped these concessions at 100 basis points per credit-rating agency and 200 basis points in total. Boeing expects the money from the bond issue to cover its funding needs for the year, barring any unexpected event. Before announcing it would no longer seek government aid, it stress-tested its financial assumptions and considered numerous scenarios to ensure it has liquidity for the remainder of the year, according to the sources. Boeing has also had to take several cost-cutting measures, including announcing plans to shed about 16,000 jobs this year, about 10per cent of its workforce, through early retirements and likely layoffs. On Friday, Smith told Boeing employees in a message he wanted "to thank the administration for the actions they have taken to support our economy and the credit markets." (Reporting by Kate Duguid and Joshua Franklin in New York and David Shepardson in Washington, D.C.; Additional reporting by Rebecca Spalding in New York; Editing by Greg Roumeliotis and Cynthia Osterman)
2 May 09:30 • CNA • https://www.channelnewsasia.com/news/business/how-boeing-went-from-appealing-for-government-aid-to-snubbing-it-12696252Rating: 3.25
How Boeing went from appealing for government aid to snubbing it
NEW YORK/WASHINGTON — In just six weeks, Boeing Co went from seeking government aid to announcing it no longer needed it. The company’s $25 billion bond issue this week made all the difference. The upsized deal, this year’s largest investment-grade bond issue and the sixth largest on record, surpassed Boeing’s expectations. It underscores how the Chicago-based company capitalized on U.S. government support, even without having to accept taxpayer money as aid. On March 24, Boeing’s Chief Financial Officer Greg Smith told Reuters in an interview that the credit markets were “essentially closed” to the largest U.S. plane maker, and that the entire U.S. aerospace industry urgently needed capital to cope with the fallout from the coronavirus outbreak. A $2.3 trillion U.S. stimulus package, enacted into law at the end of March to provide relief to the U.S. economy which was hit hard by the pandemic, subsequently carved out $17 billion in aid for Boeing and other companies critical to national security. Boeing itself had lobbied extensively for aid and had called for at least $60 billion in government loans for the entire aerospace manufacturing sector. “We can’t let anything happen to Boeing,” U.S. President Donald Trump said last month, in one of the many instances he expressed support for the company. Several bond investors in interviews with Reuters cited the U.S. government’s backstopping of Boeing, as well as the Federal Reserve’s support of the credit markets in the aftermath of the pandemic, as reasons for the success of the capital raise. “Boeing is pretty vital to, not just the U.S. economy, but to national security interests. Also, you can’t argue (with the fact that) the Fed support is what has been the primary driver of what is allowing risk assets to boom,” said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. Already saddled with $39 billion in debt as of the end of March, Boeing started the week searching for cash, to cope not just with impact of the coronavirus outbreak on air travel, but with the long grounding of its flagship 737 Max aircraft as well, following a string of accidents. Smith and Boeing Chief Executive David Calhoun had taken what they called a “balanced” approach, reiterating on Wednesday that they were exploring a mix of government aid and commercial funding. One potential source of government aid, the $17 billion national security-related fund administered by the U.S. Treasury Department, came with significant strings, including the possibility of the U.S. government getting a stake in Boeing. That could have led to Boeing’s shareholders getting diluted. Then Boeing had a breakthrough. Its plan was to gauge investor interest for a bond issue of between $10 billion and $15 billion, according to people familiar with the deliberations. Yet demand for the bonds on Thursday peaked at more than $70 billion from over 600 investor accounts, according to the sources. Credit rating agencies told Boeing it could borrow as much as $25 billion through a bond issue and just about retain its investment-grade rating, according to the sources. This was important for Boeing, to reign in its borrowing costs and attract more investors to the bond offering, the sources said. Investors that traditionally invest in junk-rated debt, such as hedge funds, also flocked to Boeing’s bond issue, because it was priced at premium to investment-grade deals, according to the sources. Boeing priced different bond tranches spanning several maturities at between 450 basis points and 593 basis points, whereas the average spread for bonds of Boeing’s credit rating is 306 basis points, according to ICE BofA Data. “Let’s face it, Boeing is not an investment-grade company by any stretch of the imagination,” said Nick Maroutsos, co-head of global bonds at Janus Henderson Investors. Boeing declined to comment on its internal planning for the capital raise. But Boeing announced on Thursday that as a result of the strong response to its bond offering, it did “not plan to seek additional funding through the capital markets or the U.S. government options at this time.” CONCESSIONS Boeing had to make concessions to cajole the credit rating agencies and bond investors. It agreed to increase interest payments by 25 basis points each time the two biggest credit rating agencies lowered its rating by one level into junk, according to the bond issue’s prospectus. It capped these concessions at 100 basis points per credit-rating agency and 200 basis points in total. Boeing expects the money from the bond issue to cover its funding needs for the year, barring any unexpected event. Before announcing it would no longer seek government aid, it stress-tested its financial assumptions and considered numerous scenarios to ensure it has liquidity for the remainder of the year, according to the sources. Boeing has also had to take several cost-cutting measures, including announcing plans to shed about 16,000 jobs this year, about 10% of its workforce, through early retirements and likely layoffs. On Friday, Smith told Boeing employees in a message he wanted “to thank the administration for the actions they have taken to support our economy and the credit markets.” (Reporting by Kate Duguid and Joshua Franklin in New York and David Shepardson in Washington, D.C. Additional reporting by Rebecca Spalding in New York Editing by Greg Roumeliotis and Cynthia Osterman)
2 May 01:26 • Financial Post • https://business.financialpost.com/pmn/business-pmn/how-boeing-went-from-appealing-for-government-aid-to-snubbing-itRating: 0.94
How Boeing went from appealing for government aid to snubbing it
In just six weeks, Boeing Co went from seeking government aid to announcing it no longer needed it. The company's $25 billion bond issue this week made all the difference. The upsized deal, this year's largest investment-grade bond issue and the sixth largest on record, surpassed Boeing's expectations. It underscores how the Chicago-based company capitalised on US government support, even without having to accept taxpayer money as aid. On March 24, Boeing's Chief Financial Officer Greg Smith told Reuters in an interview that the credit markets were "essentially closed" to the largest US plane maker, and that the entire US aerospace industry urgently needed capital to cope with the fallout from the coronavirus outbreak. A $2.3 trillion US stimulus package, enacted into law at the end of March to provide relief to the US economy which was hit hard by the pandemic, subsequently carved out $17 billion in aid for Boeing and other companies critical to national security. Boeing itself had lobbied extensively for aid and had called for at least $60 billion in government loans for the entire aerospace manufacturing sector. "We can't let 'anything happen to' Boeing," US President Donald Trump said last month, in one of the many instances he expressed support for the company. Several bond investors in interviews with Reuters cited the US government's backstopping of Boeing, as well as the Federal Reserve's support of the credit markets in the aftermath of the pandemic, as reasons for the success of the capital raise. "Boeing is pretty vital to, not just the US economy, but to national security interests. Also, you can't argue (with the fact that) the Fed support is what has been the primary driver of what is allowing risk assets to boom," said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. Already saddled with $39 billion in debt as of the end of March, Boeing started the week searching for cash, to cope not just with impact of the coronavirus outbreak on air travel, but with the long grounding of its flagship 737 Max aircraft as well, following a string of accidents. Smith and Boeing Chief Executive David Calhoun had taken what they called a "balanced" approach, reiterating on Wednesday that they were exploring a mix of government aid and commercial funding. One potential source of government aid, the $17 billion national security-related fund administered by the US Treasury Department, came with significant strings, including the possibility of the US government getting a stake in Boeing. That could have led to Boeing's shareholders getting diluted. Then Boeing had a breakthrough. Its plan was to gauge investor interest for a bond issue of between $10 billion and $15 billion, according to people familiar with the deliberations. Yet demand for the bonds on Thursday peaked at more than $70 billion from over 600 investor accounts, according to the sources. Credit rating agencies told Boeing it could borrow as much as $25 billion through a bond issue and just about retain its investment-grade rating, according to the sources. This was important for Boeing, to reign in its borrowing costs and attract more investors to the bond offering, the sources said. Investors that traditionally invest in junk-rated debt, such as hedge funds, also flocked to Boeing's bond issue, because it was priced at premium to investment-grade deals, according to the sources. Boeing priced different bond tranches spanning several maturities at between 450 basis points and 593 basis points, whereas the average spread for bonds of Boeing's credit rating is 306 basis points, according to ICE BofA Data. "Let's face it, Boeing is not an investment-grade company by any stretch of the imagination," said Nick Maroutsos, co-head of global bonds at Janus Henderson Investors. Boeing declined to comment on its internal planning for the capital raise. But Boeing announced on Thursday that as a result of the strong response to its bond offering, it did "not plan to seek additional funding through the capital markets or the US government options at this time." CONCESSIONS Boeing had to make concessions to cajole the credit rating agencies and bond investors. It agreed to increase interest payments by 25 basis points each time the two biggest credit rating agencies lowered its rating by one level into junk, according to the bond issue's prospectus. It capped these concessions at 100 basis points per credit-rating agency and 200 basis points in total. Boeing expects the money from the bond issue to cover its funding needs for the year, barring any unexpected event. Before announcing it would no longer seek government aid, it stress-tested its financial assumptions and considered numerous scenarios to ensure it has liquidity for the remainder of the year, according to the sources. Boeing has also had to take several cost-cutting measures, including announcing plans to shed about 16,000 jobs this year, about 10 percent of its workforce, through early retirements and likely layoffs. On Friday, Smith told Boeing employees in a message he wanted "to thank the administration for the actions they have taken to support our economy and the credit markets."Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/world/how-boeing-went-from-appealing-for-government-aid-to-snubbing-it-5215291.htmlRating: 0.30
How Boeing went from appealing for government aid to snubbing it
By Kate Duguid, Joshua Franklin and David Shepardson NEW YORK/WASHINGTON (Reuters) - In just six weeks, Boeing Co (N:BA) went from seeking government aid to announcing it no longer needed it. The company's $25 billion bond issue this week made all the difference. The upsized deal, this year's largest investment-grade bond issue and the sixth largest on record, surpassed Boeing's expectations. It underscores how the Chicago-based company capitalized on U.S. government support, even without having to accept taxpayer money as aid. On March 24, Boeing's Chief Financial Officer Greg Smith told Reuters in an interview that the credit markets were "essentially closed" to the largest U.S. plane maker, and that the entire U.S. aerospace industry urgently needed capital to cope with the fallout from the coronavirus outbreak. A $2.3 trillion U.S. stimulus package, enacted into law at the end of March to provide relief to the U.S. economy which was hit hard by the pandemic, subsequently carved out $17 billion in aid for Boeing and other companies critical to national security. Boeing itself had lobbied extensively for aid and had called for at least $60 billion in government loans for the entire aerospace manufacturing sector. "We can't let anything happen to Boeing," U.S. President Donald Trump said last month, in one of the many instances he expressed support for the company. Several bond investors in interviews with Reuters cited the U.S. government's backstopping of Boeing, as well as the Federal Reserve's support of the credit markets in the aftermath of the pandemic, as reasons for the success of the capital raise. "Boeing is pretty vital to, not just the U.S. economy, but to national security interests. Also, you can't argue (with the fact that) the Fed support is what has been the primary driver of what is allowing risk assets to boom," said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. Already saddled with $39 billion in debt as of the end of March, Boeing started the week searching for cash, to cope not just with impact of the coronavirus outbreak on air travel, but with the long grounding of its flagship 737 Max aircraft as well, following a string of accidents. Smith and Boeing Chief Executive David Calhoun had taken what they called a "balanced" approach, reiterating on Wednesday that they were exploring a mix of government aid and commercial funding. One potential source of government aid, the $17 billion national security-related fund administered by the U.S. Treasury Department, came with significant strings, including the possibility of the U.S. government getting a stake in Boeing. That could have led to Boeing's shareholders getting diluted. Then Boeing had a breakthrough. Its plan was to gauge investor interest for a bond issue of between $10 billion and $15 billion, according to people familiar with the deliberations. Yet demand for the bonds on Thursday peaked at more than $70 billion from over 600 investor accounts, according to the sources. Credit rating agencies told Boeing it could borrow as much as $25 billion through a bond issue and just about retain its investment-grade rating, according to the sources. This was important for Boeing, to reign in its borrowing costs and attract more investors to the bond offering, the sources said. Investors that traditionally invest in junk-rated debt, such as hedge funds, also flocked to Boeing's bond issue, because it was priced at premium to investment-grade deals, according to the sources. Boeing priced different bond tranches spanning several maturities at between 450 basis points and 593 basis points, whereas the average spread for bonds of Boeing's credit rating is 306 basis points, according to ICE (NYSE:ICE) BofA Data. "Let's face it, Boeing is not an investment-grade company by any stretch of the imagination," said Nick Maroutsos, co-head of global bonds at Janus Henderson Investors. Boeing declined to comment on its internal planning for the capital raise. But Boeing announced on Thursday that as a result of the strong response to its bond offering, it did "not plan to seek additional funding through the capital markets or the U.S. government options at this time." CONCESSIONS Boeing had to make concessions to cajole the credit rating agencies and bond investors. It agreed to increase interest payments by 25 basis points each time the two biggest credit rating agencies lowered its rating by one level into junk, according to the bond issue's prospectus. It capped these concessions at 100 basis points per credit-rating agency and 200 basis points in total. Boeing expects the money from the bond issue to cover its funding needs for the year, barring any unexpected event. Before announcing it would no longer seek government aid, it stress-tested its financial assumptions and considered numerous scenarios to ensure it has liquidity for the remainder of the year, according to the sources. Boeing has also had to take several cost-cutting measures, including announcing plans to shed about 16,000 jobs this year, about 10% of its workforce, through early retirements and likely layoffs. On Friday, Smith told Boeing employees in a message he wanted "to thank the administration for the actions they have taken to support our economy and the credit markets."
2 May 00:00 • Investing.com • https://www.investing.com/news/stock-market-news/how-boeing-went-from-appealing-for-government-aid-to-snubbing-it-2158521Rating: 0.30
From seeking govt aid to snubbing it, what changed for Boeing in 6 weeks?
In just six weeks, Boeing Co went from seeking government aid to announcing it no longer needed it. The company's $25-billion bond issue this week made all the difference. The upsized deal, this year's largest investment-grade bond issue and the sixth-largest on record, surpassed Boeing's expectations. It underscores how the Chicago-based company capitalised on US government support, even without having to accept taxpayer money as aid. On March 24, Boeing's Chief Financial Officer Greg Smith told Reuters in an interview that the credit markets were "essentially closed" to the largest US plane maker, and that the entire US aerospace industry urgently needed capital to cope with the fallout from the coronavirus outbreak. A $2.3 trillion US stimulus package, enacted into law at the end of March to provide relief to the US economy which was hit hard by the pandemic, subsequently carved out $17 billion in aid for Boeing and other companies critical to national security. Boeing itself had lobbied extensively for aid and had called for at least $60 billion in government loans for the entire aerospace manufacturing sector. "We can't let anything happen to Boeing," US President Donald Trump said last month, in one of the many instances he expressed support for the company. ALSO READ: Boeing to cut staff, boost liquidity with recovery not coming anytime soon Several bond investors in interviews with Reuters cited the US government's backstopping of Boeing, as well as the Federal Reserve's support of the credit markets in the aftermath of the pandemic, as reasons for the success of the capital raise. "Boeing is pretty vital to, not just the US economy, but to national security interests. Also, you can't argue (with the fact that) the Fed support is what has been the primary driver of what is allowing risk assets to boom," said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management. Already saddled with $39 billion in debt as of the end of March, Boeing started the week searching for cash, to cope not just with impact of the coronavirus outbreak on air travel, but with the long grounding of its flagship 737 Max aircraft as well, following a string of accidents. Smith and Boeing Chief Executive David Calhoun had taken what they called a "balanced" approach, reiterating on Wednesday that they were exploring a mix of government aid and commercial funding. One potential source of government aid, the $17 billion national security-related fund administered by the US Treasury Department, came with significant strings, including the possibility of the US government getting a stake in Boeing. That could have led to Boeing's shareholders getting diluted. Then Boeing had a breakthrough. Its plan was to gauge investor interest for a bond issue of between $10 billion and $15 billion, according to people familiar with the deliberations. Yet demand for the bonds on Thursday peaked at more than $70 billion from over 600 investor accounts, according to the sources. Credit rating agencies told Boeing it could borrow as much as $25 billion through a bond issue and just about retain its investment-grade rating, according to the sources. This was important for Boeing, to reign in its borrowing costs and attract more investors to the bond offering, the sources said. Investors that traditionally invest in junk-rated debt, such as hedge funds, also flocked to Boeing's bond issue, because it was priced at premium to investment-grade deals, according to the sources. Boeing priced different bond tranches spanning several maturities at between 450 basis points and 593 basis points, whereas the average spread for bonds of Boeing's credit rating is 306 basis points, according to ICE BofA Data. "Let's face it, Boeing is not an investment-grade company by any stretch of the imagination," said Nick Maroutsos, co-head of global bonds at Janus Henderson Investors. ALSO READ: Covid-19: Boeing CEO sees slow air travel rebound, no dividend for 'years' Boeing declined to comment on its internal planning for the capital raise. But Boeing announced on Thursday that as a result of the strong response to its bond offering, it did "not plan to seek additional funding through the capital markets or the US government options at this time." CONCESSIONS Boeing had to make concessions to cajole the credit rating agencies and bond investors. It agreed to increase interest payments by 25 basis points each time the two biggest credit rating agencies lowered its rating by one level into junk, according to the bond issue's prospectus. It capped these concessions at 100 basis points per credit-rating agency and 200 basis points in total. Boeing expects the money from the bond issue to cover its funding needs for the year, barring any unexpected event. Before announcing it would no longer seek government aid, it stress-tested its financial assumptions and considered numerous scenarios to ensure it has liquidity for the remainder of the year, according to the sources. Boeing has also had to take several cost-cutting measures, including announcing plans to shed about 16,000 jobs this year, about 10% of its workforce, through early retirements and likely layoffs. On Friday, Smith told Boeing employees in a message he wanted "to thank the administration for the actions they have taken to support our economy and the credit markets."
2 May 04:10 • Business-Standard • https://www.business-standard.com/article/international/appealing-govt-aid-to-snubbing-it-what-changed-boeing-s-mind-in-6-weeks-120050200166_1.htmlRating: 0.30
Moratorium: Finance Minister asks banks to consider abolishing accrued interest on HP loans
2 May 04:43
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Moratorium: Finance Minister asks banks to consider abolishing accrued interest on HP loans
KUALA LUMPUR, May 2 — Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz today requested that financial institutions consider abolishing the accrued interest on hire purchase (HP) loans, as well as profit from their fixed-rate Islamic financing, during the six-month moratorium period on loan repayments. Taking to his Facebook page today, Zafrul said that though there are many banks that offer loan deferment without imposing the accrued or compounded interest, the leeway does not cover all loan products. “Each bank, meanwhile, sets its own approach on matters related to interest imposition, during the moratorium. “Taking into cognisance that there is a possibility that it can be implemented, and taking the people’s request into account, I would like to suggest that all financial institutions, especially those involved in this moratorium, to consider abolishing the accrued interest for hire purchase loans or profits for fixed-rate Islamic financing, for this six-month moratorium period,” Zafrul said. He added that although the final say in the matter lies with Bank Negara Malaysia (BNM), the Ministry of Finance (MOF), however, has begun taking proactive steps to seek a solution to the issue, via discussions with BNM and banks, in the interests of the people. “Given the challenging economic conditions caused by the Covid-19 outbreak, I sincerely hope that this view can be given due consideration by BNM and other financial institutions in the country. I believe this move will have a positive impact on our people,” he added. BNM yesterday said that it regrets the “confusion and anxiety” stemming from its announcement on changes to the six-month moratorium for HP loans and fixed-rate Islamic financing, on March 30. In a newly released frequently asked questions (FAQs) list yesterday, the central bank denied that it had also backpedalled on its initial announcement. In its explainer, BNM stressed that the payment deferment is still automatic for HP and fixed rate Islamic financing, adding that what is required now is an additional step to comply with procedural requirements under the Hire-Purchase Act 1967 (HP Act) and Shariah. “This additional step is unavoidable, and is required to incorporate the changes to the payment schedule and/or amounts as a result of the six-month payment deferment in loan/financing agreements. “We sincerely regret any confusion and anxiety that this announcement may have caused. The deferment of loan repayments is meant to ease cash flows for borrowers/customers affected by the Covid-19 pandemic. This intent remains the same. The confusion arises because of the misperception that the repayment amounts for a HP loan cannot be changed,” it said. BNM added that the misperception arose, due to an illustration provided in an initial version of the FAQs, “where certain assumptions and caveats were made.” It said that it had later removed the example when banks provided their own illustrations. BNM then provided an example of a RM50,000 HP loan with a remaining tenure of five years and a fixed interest of 2.71 per cent (or an effective rate of 5.36 per cent) per annum: Before the deferment, the monthly instalment was RM712. But should the deferment option be accepted, based on this example, the monthly instalment is now RM731, or an increase by 2 per cent or RM19. Consequently, the total interest increase incurred is RM1,130. Several reports emerged on the evening of April 30, citing a BNM press release, on a purported reversal from what was initially announced with regards to deferment of HP loans and fixed-rate Islamic financing. Financial website, Ringgit Plus, reported that the press release had “hinted of a big change that will affect millions of Malaysians currently servicing car loans or Islamic financing.” The report, which was one of those widely shared by those angered by the announcement, reported that BNM had also implied that from May 1, 2020, the six-month moratorium will also no longer be an automatic opt-in for all customers. Ringgit Plus reported that the press release further stated that BNM required that all borrowers “are provided with clear information on the process and changes to the terms of their agreements”, and that the banking institutions provide borrowers with “necessary steps that they need to take to complete the process of deferring their loan/financing payments”. This was seen as a departure from what was announced initially, where customers are only asked to opt-out of the deferment, should they want to continue servicing their loans with their banks, as otherwise, banks would grant an automatic deferment. BNM later said that any additional interest that some banks may charge on the deferred payment cannot be higher than the original hire-purchase contract signed. The central bank reiterated that, as a regulator, it has from the very beginning, already indicated that there will be accrued interest or profit with regard to the six-month moratorium. The announcement also saw social media users targeting Zafrul with criticisms coupled with the hashtag #bankerjagabanker. The confusion further escalated and caused widespread anger; which even led to the start of an online petition denouncing the move by BNM and demanding for zero per cent interest on the deferred instalment payments. Last month, Prime Minister Tan Sri Muhyiddin Yassin announced the government’s move to freeze loan repayments for six months due to the coronavirus disease, which he said will provide relief worth RM100 billion to Malaysians. The prime minister said the unprecedented move BNM announced on March 24, was the government’s response to public concern about hardships they are enduring due to the movement control order (MCO). — Malay Mail [ IMAGE SOURCE ]
2 May 04:43 • SoyaCincau.com • https://www.soyacincau.com/2020/05/02/finance-minister-asks-banks-abolish-accrued-interest-hire-purchase-loans-moratorium/?utm_term=Autofeed&utm_medium=Social&utm_source=TwitterRating: 0.59
Finance minister asks banks to consider abolishing accrued interest on hire purchase loans, profits on fixed-rate Islamic financing during moratorium
KUALA LUMPUR, May 2 — Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz today requested that financial institutions consider abolishing the accrued interest on hire purchase (HP) loans, as well as profit from their fixed-rate Islamic financing, during the six-month moratorium period on loan repayments. Taking to his Facebook page today, Zafrul said that though there are many banks that offer loan deferment without imposing the accrued or compounded interest, the leeway does not cover all loan products. “Each bank, meanwhile, sets its own approach on matters related to interest imposition, during the moratorium. “Taking into cognisance that there is a possibility that it can be implemented, and taking the people’s request into account, I would like to suggest that all financial institutions, especially those involved in this moratorium, to consider abolishing the accrued interest for hire purchase loans or profits for fixed-rate Islamic financing, for this six-month moratorium period,” Zafrul said. He added that although the final say in the matter lies with Bank Negara Malaysia (BNM), the Ministry of Finance (MOF), however, has begun taking proactive steps to seek a solution to the issue, via discussions with BNM and banks, in the interests of the people. “Given the challenging economic conditions caused by the Covid-19 outbreak, I sincerely hope that this view can be given due consideration by BNM and other financial institutions in the country. I believe this move will have a positive impact on our people,” he added. BNM yesterday said that it regrets the “confusion and anxiety” stemming from its announcement on changes to the six-month moratorium for HP loans and fixed-rate Islamic financing, on March 30. In a newly released frequently asked questions (FAQs) list yesterday, the central bank denied that it had also backpedalled on its initial announcement. In its explainer, BNM stressed that the payment deferment is still automatic for HP and fixed rate Islamic financing, adding that what is required now is an additional step to comply with procedural requirements under the Hire-Purchase Act 1967 (HP Act) and Shariah. “This additional step is unavoidable, and is required to incorporate the changes to the payment schedule and/or amounts as a result of the six-month payment deferment in loan/financing agreements. “We sincerely regret any confusion and anxiety that this announcement may have caused. The deferment of loan repayments is meant to ease cash flows for borrowers/customers affected by the Covid-19 pandemic. This intent remains the same. The confusion arises because of the misperception that the repayment amounts for a HP loan cannot be changed,” it said. BNM added that the misperception arose, due to an illustration provided in an initial version of the FAQs, “where certain assumptions and caveats were made.” It said that it had later removed the example when banks provided their own illustrations. BNM then provided an example of a RM50,000 HP loan with a remaining tenure of five years and a fixed interest of 2.71 per cent (or an effective rate of 5.36 per cent) per annum: Before the deferment, the monthly instalment was RM712. But should the deferment option be accepted, based on this example, the monthly instalment is now RM731, or an increase by 2 per cent or RM19. Consequently, the total interest increase incurred is RM1,130. Several reports emerged on the evening of April 30, citing a BNM press release, on a purported reversal from what was initially announced with regards to the interest payable on the deferred HP loans and profit on fixed-rate Islamic financing. Financial website, Ringgit Plus, reported that the press release had “hinted of a big change that will affect millions of Malaysians currently servicing car loans or Islamic financing.” The report, which was one of those widely shared by those angered by the announcement, reported that BNM had also implied that from May 1, 2020, the six-month moratorium will also no longer be an automatic opt-in for all customers. Ringgit Plus reported that the press release further stated that BNM required that all borrowers “are provided with clear information on the process and changes to the terms of their agreements”, and that the banking institutions provide borrowers with “necessary steps that they need to take to complete the process of deferring their loan/financing payments”. This was seen as a departure from what was announced initially, where customers are only asked to opt-out of the deferment, should they want to continue servicing their loans with their banks, as otherwise, banks would grant an automatic deferment. BNM later said that any additional interest that some banks may charge on the deferred payment cannot be higher than the original hire-purchase contract signed. The central bank reiterated that, as a regulator, it has from the very beginning, already indicated that there will be accrued interest or profit with regard to the six-month moratorium. The announcement also saw social media users targeting Zafrul with criticisms coupled with the hashtag #bankerjagabanker. The confusion further escalated and caused widespread anger; which even led to the start of an online petition denouncing the move by BNM and demanding for zero per cent interest on the deferred instalment payments. Last month, Prime Minister Tan Sri Muhyiddin Yassin announced the government’s move to freeze loan repayments for six months due to the coronavirus disease, which he said will provide relief worth RM100 billion to Malaysians. The prime minister said the unprecedented move BNM announced on March 24, was the government’s response to public concern about hardships they are enduring due to the movement control order (MCO).
2 May 02:15 • Malaymail • https://www.malaymail.com/news/malaysia/2020/05/02/finance-minister-asks-banks-to-consider-abolishing-accrued-interest-on-hire/1862269Rating: 1.42
Finance minister asks BNM and banks to reconsider charging interest on HP loans in 6-month moratorium
Finance minister Tengku Datuk Seri Zafrul Abdul Aziz has waded into the issue regarding banks charging interest on paused hire purchase (HP) loan payments (or profit from fixed-rate Islamic financing) in the government announced six-month moratorium to ease financial burden and improve cashflow in these difficult times. Before we go into what the former top banker turned cabinet member said on his Facebook page, here’s a recap on the issue. This week, it was announced that HP loans (we’ll use the term to cover fixed-rate Islamic financing as well) will come with additional interest charges after the six-month moratorium effective from April 1 to September 30. Basically, if you choose to take up the half-year payment pause, it won’t be interest free, and you’ll have to pay back the interest later. The confusion, and anger for some, is that many expected the six-month payment moratorium to incur no interest, just a pause and nothing else. A Bank Negara Malaysia (BNM) FAQ released on March 27 indicated that there would be no additional interest charged on HP loans. This mention regarding HP loans was subsequently dropped in an amended FAQ dated April 21, and mention of interest being charged emerged. Refer to the screenshots to compare. Basically, there will no free lunch now, so to speak, but Tengku Zafrul is requesting the banks to consider abolishing the accrued interest for HP loans for the six months. “Lately, there has been confusion regarding the interest or profit rate charged during the six-month moratorium scheme offered by banks. Among the causes of this confusion are various sources that delivered inaccurate information. With that, BNM on May 1 published an FAQ document that has been updated. BNM has also conducted a press conference to clarify the confusion faced by borrowers,” he said today on his Facebook page, translated into English here. “For your information, there are indeed banks that offered loan moratoriums without charging accrued interest or compounded interest. However, it does not cover all loan products. Also, every bank has its own approach regarding charging interest in the moratorium period. “Taking into account that there’s a possibility for it to be implemented, and after considering the rakyat’s request, I would like to suggest that all financial institutions, especially those involved in the moratorium, consider abolishing the accrued interest (for HP loans) or profit (for fixed-rate Islamic financing) for the six-month moratorium period,” he added. The minister acknowledged that this matter is under the purview of BNM, but said that the finance ministry has started proactive steps to find a solution for the issue via discussions with BNM and the banks, to find the best solution for the people. “We at the finance ministry are ready to work together with BNM and the banking sector to ensure the implementation of this call. The government is always sensitive towards the needs of the rakyat, especially those from the B40 and M40, and is taking this matter seriously. In such a challenging economic situation caused by the Covid-19 pandemic, I hope that this view will be given fair consideration by BNM and the financial institutions. “I am confident that this move will bring positive impact to the rakyat,” he ended. Yesterday, BNM released a statement acknowledging the public’s confusion. “We sincerely regret any confusion and anxiety that this announcement may have caused. The deferment of loan repayments is meant to ease cash flows for borrowers/customers affected by the Covid-19 pandemic. This intent remains the same. The confusion arises because of the misperception that the repayment amounts for a HP loan cannot be changed,” BNM said. The central bank added that the misperception came about due to an illustration provided in an initial version of its FAQ, “where certain assumptions and caveats were made.” BNM said that it had later removed the illustration when the banks provided their own. Earlier, we’ve also seen a few banks confirm these “assumptions” of monthly instalments staying the same after the moratorium period, in both their own FAQs and official responses to customer queries. We were among those who reported this original scenario, based directly on the information available, which – at the time – was accurate. Yesterday, BNM also released an example of a RM50,000 HP loan with a remaining tenure of five years, on a fixed interest of 2.71% per annum. The original monthly instalment was RM712. Should the borrower opt for the payment pause, the monthly instalment will be RM731 in October once the moratorium ends. This is an increase of 2%, or RM19 a month. Read what BNM said and the latest official status on the issue here. Tags:COVID-19
2 May 08:29 • Paul Tan's Automotive News • https://paultan.org/2020/05/02/finance-minister-asks-bnm-and-banks-to-reconsider-charging-interest-on-hp-loans-in-6-month-moratorium/Rating: 0.91
The non-bailout: How the Fed saved Boeing without paying a dime
2 May 20:23
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The non-bailout: How the Fed saved Boeing without paying a dime
Less than two months ago Boeing Co. went to Washington, hat in hand, asking for a $60 billion bailout for itself and its suppliers. The company, which had spent heavily on stock buybacks and was still reeling from the 737 Max disaster, was an unlikely candidate for government support. Yet by urging the Federal Reserve to take unprecedented steps to bolster credit markets, the Trump administration ended up helping the plane maker more than any government handout could. The Fed’s decision to use its near limitless balance sheet to purchase corporate bonds improved liquidity so much that it was a game changer for the company, according to people with knowledge of the matter who asked not to be identified because they weren’t authorized to speak publicly. Ultimately, it allowed Boeing to raise $25 billion from private investors and withdraw its request for a government rescue, avoiding the restrictions that would have certainly been imposed. Boeing’s decision underscores the extent the Fed’s policies rebuilt confidence in credit markets even though the central bank has yet to spend a single dollar on its corporate debt program. “Many companies that would’ve had to come to the Fed have now been able to finance themselves privately since we announced the initial term sheet on these facilities,” Fed Chairman Jerome Powell said during a press conference on April 29, before Boeing’s bond sale. “There’s a tremendous amount of financing going on, and that’s a good thing.” Two optionsJust weeks earlier, Boeing’s hunt for rescue financing had gotten off to an inauspicious start. Nikki Haley, President Donald Trump’s former ambassador to the United Nations, resigned from the company’s board in protest. Other critics were quick to argue the government could better spend its funds. Company executives were undeterred. They considered two main avenues to raise the billions of dollars of cash they would need to weather the crushing loss of business stemming from the coronavirus pandemic. The company would turn to the capital markets to start building a cash stockpile, and then either tap financing available from the Fed or obtain a loan from the Treasury Department through the CARES Act, the people said. The main turning point came as Congress and the Trump administration set more than $2 trillion of stimulus into place in late March. That funding calmed markets by enabling the Fed to inject even more liquidity into the economy through several lending facilities that the Treasury backstopped. Also crucial was a deal to shore up U.S. airlines, key Boeing customers. Governments around the globe have committed about $100 billion to keeping airlines afloat, providing assurance that there will be buyers for Boeing airplanes when the outbreak abates. A further rally in credit markets since then convinced the company and its bankers that they could move quickly after the release of quarterly earnings on April 29. Boeing entered Thursday hoping to raise between $10 billion and $15 billion by selling bonds with maturities stretching as far out as 40 years, the people said. As demand for the offering peaked at over $70 billion, company officials realized they didn’t need to look any further for funds, and set the final size of the deal at $25 billion, turning it into the largest U.S. corporate bond sale of the year and the sixth largest on record. Most of the buyers were asset managers and insurance companies that typically dominate the market for high-grade bonds, though some hedge funds and other speculative-grade investors were lured by the relatively high yields offered, one of the people said. For the first time, the company included provisions that will increase the interest rate paid if the credit ratings on the notes are lowered to junk. Boeing is currently rated BBB- by S&P Global Ratings — the lowest investment-grade ranking. Constant contactA representative from Boeing referred Bloomberg to comments from Chief Financial Officer Greg Smith to employees this week in which he called the bond sale “a testament to the confidence the market has in our business, our people, and our future.” The company declined to comment further. Boeing was never in imminent danger, and had $15.5 billion in cash at the end of March after it fully drew down a new term loan, a move that marked the beginning of a global dash for cash from companies affected by the virus. But executives and Treasury Secretary Steven Mnuchin were deeply worried about the long-term damage to the company and airlines when the markets started to seize up in mid-March. Mnuchin and his staff have been in almost constant contact over the past month with Boeing officials, particularly Smith, as they collectively sought to find a way through the crisis, one of the people familiar said. The talks are ongoing and Boeing is now concerned about shoring up critical suppliers who are under severe financial distress. A Treasury Department spokesman did not immediately reply to a request for comment. The bond market signaled its confidence in the long-term prospects of the aviation industry on Thursday. But while Boeing now has a nearly $50 billion war chest to survive the next few years, the company will still need to take painful measures. That includes paring 16,000 jobs to adjust to a smaller commercial airplane market, one of the people said. Boeing hasn’t closed the door to seeking federal aid in the future, especially given the risk the pandemic may again cripple travel and economies later this year. In fact the company artfully worded its statement to leave that option open, saying it had raised the funds it needs “at this time.” © 2020 Bloomberg L.P.
2 May 20:23 • Moneyweb • https://www.moneyweb.co.za/news/international/the-non-bailout-how-the-fed-saved-boeing-without-paying-a-dime/Rating: 1.42
The non-bailout: How the Fed saved Boeing without paying a dime
By Davide Scigliuzzo and Julie JohnssonLess than two months ago Boeing Co. went to Washington, hat in hand, asking for a $60 billion bailout for itself and its suppliers. The company, which had spent heavily on stock buybacks and was still reeling from the 737 Max disaster, was an unlikely candidate for government support. Yet by urging the Federal Reserve to take unprecedented steps to bolster credit markets, the Trump administration ended up helping the plane maker more than any government handout could. The Fed’s decision to use its near limitless balance sheet to purchase corporate bonds eased liquidity so much that it was a game changer for the company, according to people with knowledge of the matter who asked not to be identified because they weren’t authorized to speak publicly. Ultimately, it allowed Boeing to raise $25 billion from private investors and withdraw its request for a government rescue, avoiding the restrictions that would have certainly been imposed. Boeing’s decision underscores the extent the Fed’s policies rebuilt confidence in credit markets even though the central bank has yet to spend a single dollar on its corporate debt program. “Many companies that would’ve had to come to the Fed have now been able to finance themselves privately since we announced the initial term sheet on these facilities,” Fed Chairman Jerome Powell said during a press conference on April 29, before Boeing’s bond sale. “There’s a tremendous amount of financing going on, and that’s a good thing.” Two OptionsJust weeks earlier, Boeing’s hunt for rescue financing had gotten off to an inauspicious start. Nikki Haley, President Donald Trump’s former ambassador to the United Nations, resigned from the company’s board in protest. Other critics were quick to argue the government could better spend its funds. Company executives were undeterred. They considered two main avenues to raise the billions of dollars of cash they would need to weather the crushing loss of business stemming from the coronavirus pandemic. The company would turn to the capital markets to start building a cash stockpile, and then either tap financing available from the Fed or obtain a loan from the Treasury Department through the CARES Act, the people said. The main turning point came as Congress and the Trump administration set more than $2 trillion of stimulus into place in late March. That funding calmed markets by enabling the Fed to inject even more liquidity into the economy through several lending facilities that the Treasury backstopped. Also crucial was a deal to shore up U.S. airlines, key Boeing customers. Governments around the globe have committed about $100 billion to keeping airlines afloat, providing assurance that there will be buyers for Boeing airplanes when the outbreak abates. A further rally in credit markets since then convinced the company and its bankers that they could move quickly after the release of quarterly earnings on April 29. Boeing entered Thursday hoping to raise between $10 billion and $15 billion by selling bonds with maturities stretching as far out as 40 years, the people said. As demand for the offering peaked at over $70 billion, company officials realized they didn’t need to look any further for funds, and set the final size of the offering at $25 billion, turning it into the largest U.S. corporate bond sale of the year. Constant Contact A representative from Boeing referred Bloomberg to comments from Chief Financial Officer Greg Smith to employees this week in which he called the bond sale “a testament to the confidence the market has in our business, our people, and our future.” The company declined to comment further. Boeing was never in imminent danger, and had $15.5 billion in cash at the end of March after it fully drew down a new term loan, a move that marked the beginning of a global dash for cash from companies affected by the virus. But executives and Treasury Secretary Steven Mnuchin were deeply worried about the long-term damage to the company and airlines when the markets started to seize up in mid-March. Mnuchin and his staff have been in almost constant contact over the past month with Boeing officials, particularly Smith, as they collectively sought to find a way through the crisis, one of the people familiar said. The talks are ongoing and Boeing is now concerned about shoring up critical suppliers who are under severe financial distress. A Treasury Department spokesman did not immediately reply to a request for comment. The bond market signaled its confidence in the long-term prospects of the aviation industry on Thursday. But while Boeing now has a nearly $50 billion war chest to survive the next few years, the company will still need to take painful measures. That includes paring 16,000 jobs to adjust to a smaller commercial airplane market, one of the people said. Boeing hasn’t closed the door to seeking federal aid in the future, especially given the risk the pandemic may again cripple travel and economies later this year. In fact the company artfully worded its statement to leave that option open, saying it had raised the funds it needs “at this time.” With assistance from Paula Seligson, Craig Torres, Matthew Boesler and Saleha Mohsin.
2 May 06:48 • The Economic Times • https://economictimes.indiatimes.com/news/international/business/the-non-bailout-how-the-fed-saved-boeing-without-paying-a-dime/articleshow/75502307.cmsRating: 0.30
How the Fed saved Boeing without paying a dime
Washington: Less than two months ago Boeing Co. went to Washington, hat in hand, asking for a $60 billion bailout for itself and its suppliers. The company, which had spent heavily on stock buybacks and was still reeling from the 737 Max disaster, was an unlikely candidate for government support. Yet by urging the Federal Reserve to take unprecedented steps to bolster credit markets, the Trump administration ended up helping the plane maker more than any government handout could. The Fed’s decision to use its near limitless balance sheet to purchase corporate bonds eased liquidity so much that it was a game changer for the company, according to people with knowledge of the matter who asked not to be identified because they weren’t authorized to speak publicly. Ultimately, it allowed Boeing to raise $25 billion from private investors and withdraw its request for a government rescue, avoiding the restrictions that would have certainly been imposed. Boeing’s decision underscores the extent the Fed’s policies rebuilt confidence in credit markets even though the central bank has yet to spend a single dollar on its corporate debt program. “Many companies that would’ve had to come to the Fed have now been able to finance themselves privately since we announced the initial term sheet on these facilities,” Fed Chairman Jerome Powell said during a press conference on April 29, before Boeing’s bond sale. “There’s a tremendous amount of financing going on, and that’s a good thing.” Just weeks earlier, Boeing’s hunt for rescue financing had gotten off to an inauspicious start. Nikki Haley, President Donald Trump’s former ambassador to the United Nations, resigned from the company’s board in protest. Other critics were quick to argue the government could better spend its funds. Company executives were undeterred. They considered two main avenues to raise the billions of dollars of cash they would need to weather the crushing loss of business stemming from the coronavirus pandemic. The company would turn to the capital markets to start building a cash stockpile, and then either tap financing available from the Fed or obtain a loan from the Treasury Department through the CARES Act, the people said. The main turning point came as Congress and the Trump administration set more than $2 trillion of stimulus into place in late March. That funding calmed markets by enabling the Fed to inject even more liquidity into the economy through several lending facilities that the Treasury backstopped. Also crucial was a deal to shore up U.S. airlines, key Boeing customers. Governments around the globe have committed about $100 billion to keeping airlines afloat, providing assurance that there will be buyers for Boeing airplanes when the outbreak abates. A further rally in credit markets since then convinced the company and its bankers that they could move quickly after the release of quarterly earnings on April 29. Boeing entered Thursday hoping to raise between $10 billion and $15 billion by selling bonds with maturities stretching as far out as 40 years, the people said. As demand for the offering peaked at over $70 billion, company officials realized they didn’t need to look any further for funds, and set the final size of the offering at $25 billion, turning it into the largest U.S. corporate bond sale of the year. A representative from Boeing referred Bloomberg to comments from Chief Financial Officer Greg Smith to employees this week in which he called the bond sale “a testament to the confidence the market has in our business, our people, and our future.” The company declined to comment further. Boeing was never in imminent danger, and had $15.5 billion in cash at the end of March after it fully drew down a new term loan, a move that marked the beginning of a global dash for cash from companies affected by the virus. But executives and Treasury Secretary Steven Mnuchin were deeply worried about the long-term damage to the company and airlines when the markets started to seize up in mid-March. Mnuchin and his staff have been in almost constant contact over the past month with Boeing officials, particularly Smith, as they collectively sought to find a way through the crisis, one of the people familiar said. The talks are ongoing and Boeing is now concerned about shoring up critical suppliers who are under severe financial distress. A Treasury Department spokesman did not immediately reply to a request for comment. The bond market signaled its confidence in the long-term prospects of the aviation industry on Thursday. But while Boeing now has a nearly $50 billion war chest to survive the next few years, the company will still need to take painful measures. That includes paring 16,000 jobs to adjust to a smaller commercial airplane market, one of the people said. Boeing hasn’t closed the door to seeking federal aid in the future, especially given the risk the pandemic may again cripple travel and economies later this year. In fact the company artfully worded its statement to leave that option open, saying it had raised the funds it needs “at this time.”
2 May 05:42 • Gulf News • https://gulfnews.com/business/aviation/how-the-fed-saved-boeing-without-paying-a-dime-1.71290051Rating: 3.21
The Non-Bailout: How the Fed Saved Boeing Without Paying a Dime
Less than two months ago Boeing Co. went to Washington, hat in hand, asking for a $60 billion bailout for itself and its suppliers. The company, which had spent heavily on stock buybacks and was still reeling from the 737 Max disaster, was an unlikely candidate for government support. Yet by urging the Federal Reserve to take unprecedented steps to bolster credit markets, the Trump administration ended up helping the plane maker more than any government handout could. The Fed’s decision to use its near limitless balance sheet to purchase corporate bonds improved liquidity so much that it was a game changer for the company, according to people with knowledge of the matter who asked not to be identified because they weren’t authorized to speak publicly. Ultimately, it allowed Boeing to raise $25 billion from private investors and withdraw its request for a government rescue, avoiding the restrictions that would have certainly been imposed. Boeing’s decision underscores the extent the Fed’s policies rebuilt confidence in credit markets even though the central bank has yet to spend a single dollar on its corporate debt program. “Many companies that would’ve had to come to the Fed have now been able to finance themselves privately since we announced the initial term sheet on these facilities,” Fed Chairman Jerome Powell said during a press conference on April 29, before Boeing’s bond sale. “There’s a tremendous amount of financing going on, and that’s a good thing.” Just weeks earlier, Boeing’s hunt for rescue financing had gotten off to an inauspicious start. Nikki Haley, President Donald Trump’s former ambassador to the United Nations, resigned from the company’s board in protest. Other critics were quick to argue the government could better spend its funds. Company executives were undeterred. They considered two main avenues to raise the billions of dollars of cash they would need to weather the crushing loss of business stemming from the coronavirus pandemic. The company would turn to the capital markets to start building a cash stockpile, and then either tap financing available from the Fed or obtain a loan from the Treasury Department through the CARES Act, the people said. The main turning point came as Congress and the Trump administration set more than $2 trillion of stimulus into place in late March. That funding calmed markets by enabling the Fed to inject even more liquidity into the economy through several lending facilities that the Treasury backstopped. Also crucial was a deal to shore up U.S. airlines, key Boeing customers. Governments around the globe have committed about $100 billion to keeping airlines afloat, providing assurance that there will be buyers for Boeing airplanes when the outbreak abates. A further rally in credit markets since then convinced the company and its bankers that they could move quickly after the release of quarterly earnings on April 29. Boeing entered Thursday hoping to raise between $10 billion and $15 billion by selling bonds with maturities stretching as far out as 40 years, the people said. As demand for the offering peaked at over $70 billion, company officials realized they didn’t need to look any further for funds, and set the final size of the deal at $25 billion, turning it into the largest U.S. corporate bond sale of the year and the sixth largest on record. Most of the buyers were asset managers and insurance companies that typically dominate the market for high-grade bonds, though some hedge funds and other speculative-grade investors were lured by the relatively high yields offered, one of the people said. For the first time, the company included provisions that will increase the interest rate paid if the credit ratings on the notes are lowered to junk. Boeing is currently rated BBB- by S&P Global Ratings -- the lowest investment-grade ranking. A representative from Boeing referred Bloomberg to comments from Chief Financial Officer Greg Smith to employees this week in which he called the bond sale “a testament to the confidence the market has in our business, our people, and our future.” The company declined to comment further. Boeing was never in imminent danger, and had $15.5 billion in cash at the end of March after it fully drew down a new term loan, a move that marked the beginning of a global dash for cash from companies affected by the virus. But executives and Treasury Secretary Steven Mnuchin were deeply worried about the long-term damage to the company and airlines when the markets started to seize up in mid-March. Mnuchin and his staff have been in almost constant contact over the past month with Boeing officials, particularly Smith, as they collectively sought to find a way through the crisis, one of the people familiar said. The talks are ongoing and Boeing is now concerned about shoring up critical suppliers who are under severe financial distress. A Treasury Department spokesman did not immediately reply to a request for comment. The bond market signaled its confidence in the long-term prospects of the aviation industry on Thursday. But while Boeing now has a nearly $50 billion war chest to survive the next few years, the company will still need to take painful measures. That includes paring 16,000 jobs to adjust to a smaller commercial airplane market, one of the people said. Boeing hasn’t closed the door to seeking federal aid in the future, especially given the risk the pandemic may again cripple travel and economies later this year. In fact the company artfully worded its statement to leave that option open, saying it had raised the funds it needs “at this time.” — With assistance by Paula Seligson, Craig Torres, Matthew Boesler, and Saleha Mohsin (Updates with details of the bond offering in 15th and 16th paragraphs.)
2 May 00:57 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-02/the-non-bailout-how-the-fed-saved-boeing-without-paying-a-dimeRating: 4.04
The Leeroy Jenkins Of Tech Sends Tweet, Wipes $14 Billion Off Tesla's Market Value
2 May 07:01
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3 articles
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The Leeroy Jenkins Of Tech Sends Tweet, Wipes $14 Billion Off Tesla's Market Value
Tesla stocks are too damn high, or something like that. At least that’s what Elon Musk said on Twitter earlier today, “Tesla stock price is too high imo.” It appears that, once again, the stock market was listening. As Ars Technica points out, before Musk sent that tweet, Tesla stock was around $US760 ($1,184) a share, but 20 minutes later it dropped to $US722 ($1,124), or five per cent lower. As of the writing of this article, Tesla stock sits at $US702 ($1,093) a share, or $US80 ($125) less than yesterday’s closing price. At the moment, about $US14 ($22) billion has been wiped from the market value of Tesla. This isn’t the first time Musk has tweeted something that got him in trouble. In August 2018, he claimed that Tesla had secured funding to take Tesla private at $US420 ($654) per share. But the Securities and Exchange Commission (SEC) filed a lawsuit against him for that tweet (and others), saying that he violated market-manipulation laws. In the lawsuit, the SEC sought to remove Musk as Tesla’s CEO as well as one of its board members. The SEC won the case, resulting in Musk and Tesla being ordered to pay $US40 ($62) million in penalties to harmed investors. The settlement included provisions that required him to have Tesla approve any and all of his communications (including Tweets) that could affect stock price before he made them public. However, the SEC made a second filling against Musk in March 2019 for not having any of his tweets officially approved. It seems like Musk would be in the wrong again here, given that Tesla stock prices fell soon after his ‘Tesla stock is too high’ tweet. (Hey, maybe he got that boneheaded tweet approved!) Tesla did not immediately return Gizmodo’s request for comment, we’ll update this post when we receive a reply. The original filing did not specify a time frame on that provision, only that Musk would be ineligible to be re-elected Chairman for three years, so not until 2021. It’s conceivable that he’ll still need a Twitter babysitter regardless. Or maybe just a babysitter in general. Today, The Wall Street Journal reached out to Musk to ask if he was joking or if he had his tweet vetted. He responded with a short, “No.” It’s been a crazy week for Musk, to say the least. He went on an earnings call rant, claiming that covid-19 lockdown policies were akin to fascism, tweeted “FREE AMERICA NOW,” and pulled NASA into the mess by dismissing a reporter for asking a covid-19 related question. Oh, and he claims he’s selling almost all of his physical possessions, including his house, to devote himself to Mars and Earth. His GF is mad at him for saying that, but at least Musk made the stipulation that whoever buys his home can’t tear it down since it was once Gene Wilder’s home, and its soul must remain intact.
2 May 07:01 • Gizmodo AU • https://www.gizmodo.com.au/2020/05/the-leeroy-jenkins-of-tech-sends-tweet-wipes-14-billion-off-teslas-market-value/Rating: 0.49
The Leeroy Jenkins of Tech Sends Tweet, Wipes £11 Billion Off Tesla's Market Value
Tesla stocks are too damn high, or something like that. At least that’s what Elon Musk said on Twitter earlier today, “Tesla stock price is too high imo.” It appears that, once again, the stock market was listening. As Ars Technica points out, before Musk sent that tweet, Tesla stock was around $760 (£607) a share, but 20 minutes later it dropped to $722 (£577), or five per cent lower. As of the writing of this article, Tesla stock sits at $702 (£561) a share, or $80 less than yesterday’s closing price. At the moment, about $14 billion (£11.1 billion) has been wiped from the market value of Tesla. This isn’t the first time Musk has tweeted something that got him in trouble. In August 2018, he claimed that Tesla had secured funding to take Tesla private at $420 per share. But the Securities and Exchange Commission (SEC) filed a lawsuit against him for that tweet (and others), saying that he violated market-manipulation laws. In the lawsuit, the SEC sought to remove Musk as Tesla’s CEO as well as one of its board members. The SEC won the case, resulting in Musk and Tesla being ordered to pay $40 million (£32 million) in penalties to harmed investors. The settlement included provisions that required him to have Tesla approve any and all of his communications (including Tweets) that could affect stock price before he made them public. However, the SEC made a second filling against Musk in March 2019 for not having any of his tweets officially approved. It seems like Musk would be in the wrong again here, given that Tesla stock prices fell soon after his ‘Tesla stock is too high’ tweet. (Hey, maybe he got that boneheaded tweet approved!) Tesla did not immediately return Gizmodo’s request for comment, we’ll update this post when we receive a reply. The original filing did not specify a time frame on that provision, only that Musk would be ineligible to be re-elected Chairman for three years, so not until 2021. It’s conceivable that he’ll still need a Twitter babysitter regardless. Or maybe just a babysitter in general. Today, The Wall Street Journal reached out to Musk to ask if he was joking or if he had his tweet vetted. He responded with a short, “No.” It’s been a crazy week for Musk, to say the least. While he anticipates a $750 million (£600 million) payday based on Tesla’s stock performance (whoops), he’s been charging around making enemies and being the richest kind of internet troll. He went on an earnings call rant, claiming that covid-19 lockdown policies were akin to fascism, tweeted “FREE AMERICA NOW,” and pulled NASA into the mess by dismissing a reporter for asking a covid-19 related question. Oh, and he claims he’s selling almost all of his physical possessions, including his house, to devote himself to Mars and Earth. His GF is mad at him for saying that, but at least Musk made the stipulation that whoever buys his home can’t tear it down since it was once Gene Wilder’s home, and its soul must remain intact. Featured photo: Win McNamee (Getty Images)
2 May 09:00 • Gizmodo UK • https://www.gizmodo.co.uk/2020/05/the-leeroy-jenkins-of-tech-sends-tweet-wipes-14-billion-off-teslas-market-value/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+uk%2Fgizmodo+%28Gizmodo+UK%29&hl=enRating: 0.30
Tesla tumbles after Musk tweets that stock is too high
(Reuters) — Shares of Tesla tumbled 9% on Friday after CEO Elon Musk tweeted that the electric carmaker’s high-flying stock was overly expensive. “Tesla stock price is too high,” Musk said on Twitter in one of several unusual messages, including ones quoting parts of the U.S. national anthem and saying that he would sell almost all his physical possessions. The subsequent share drop erased around $13 billion from Tesla’s market value and nearly $3 billion from the value of Musk’s stake. Still, shares remain up almost 50% from the start of April. More than two hours after the tweets began, Tesla had not responded to requests for comment. Twitter declined to comment. The Wall Street Journal reported that Musk had responded to an email asking whether he was joking or whether his tweet was vetted by saying, “No.” Musk has a history of sending provocative tweets. In August 2018, he tweeted that he had secured funding to possibly take Tesla private at a big premium, which led to a fraud case by the U.S. Securities and Exchange Commission. Musk settled by agreeing to pay $20 million and have a Tesla lawyer prescreen tweets with important information about the company. Last month, a federal judge said Tesla and Musk must face a lawsuit by shareholders over the going-private tweet, including a claim that Musk intended to defraud them. In April 2019, Musk tweeted, “My Twitter is pretty much complete nonsense at this point.” “We view these Musk comments as tongue in cheek, and it’s Elon being Elon. It’s [certainly] a headache for investors for him to venture into this area as his tweeting remains a hot button issue and the Street clearly is frustrated,” Wedbush Securities analyst Daniel Ives said by email. Tesla’s stock has surged in recent weeks but is down since Wednesday after the company reported an unexpected quarterly profit, despite manufacturing interruptions caused by the coronavirus pandemic. Musk’s latest tweets follow others this week. On Tesla’s quarterly conference call on Wednesday, he called sweeping U.S. stay-at-home restrictions to curtail the coronavirus outbreak “fascist.” Those restrictions have forced Tesla to shutter its car plant in Fremont, California. “Musk has recently expressed some strong and, at times, controversial, views on COVID-19 and some elements of the response to the crisis and we believe is attempting to use his broad following and visibility to bring attention to some economic factors that he believes may be overlooked,” Morgan Stanley analyst Adam Jonas wrote in a client note on Friday. Musk’s iconoclastic stance has helped him attract over 33 million followers on Twitter and is seen as a marketing boon for Tesla. Tesla’s recent rally has put Musk on the verge of a payday of over $700 million. The six-month average of Tesla’s market capitalization is just short of $100 billion, a target that would trigger the vesting of a tranche of options granted to Musk to buy 1.69 million shares as part of his two-year-old pay package.
2 May 01:38 • VentureBeat • https://venturebeat.com/2020/05/01/tesla-tumbles-after-musk-tweets-that-stock-is-too-high/Rating: 1.42
Rolls-Royce 'to cut up to 8,000 jobs' as coronavirus crisis hits airline industry
2 May 16:25
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Rolls-Royce 'to cut up to 8,000 jobs' as coronavirus crisis hits airline industry
Rolls-Royce is set to cut up to 8,000 jobs as the coronavirus pandemic hits the aviation industry, reports say. A source at the company, which has a base in Filton, said the major aerospace manufacturer will not make an official announcement until early June. And it's also unclear how many job losses will be in UK, as the manufacturer employs a global workforce. It comes after the company announced it was cutting all but essential activity at its UK aerospace sites, including its Bristol plant. Plunging demand from the likes of Airbus and Boeing has led the giant to warn it plans to make its single biggest workforce reduction in 30 years, according to the Financial Times. The British aero-engineering firm has begun work on a restructuring plan that would take a scythe to its workforce of some 52,000, insiders told the newspaper. Rolls-Royce has plants around the UK (Image: Getty Images Europe) It comes after both British Airways and Ryanair announced plans to make major staff cut. The government has offered support packages to UK businesses in hopes of saving jobs. However Rolls-Royce has had to deal with an immediate collapse in demand in the civil aerospace arm of its business, according to the FT's insider. Rolls-Royce building engines for Navy ships (Image: Handout) That part of the business employs around 23,000 globally and is said to be worth half the company's £15.4billion revenue. The newspaper reports that an announcement on a final figure for the job cuts is not expected before the end of May, when Rolls-Royce has said it will update staff on the plans. Sources told the FT discussions have just begun with unions, and it is feared the cutbacks could be larger than job losses after 9/11, when the Rolls-Royce group cut 5,000 jobs. “The impact of the Covid-19 pandemic is unprecedented,” the company said in a statement to the FT. “We have taken swift action to increase our liquidity, dramatically reduce our spending in 2020, and strengthen our resilience in these exceptionally challenging times. But we will need to take further action.”
2 May 16:25 • BristolLive • https://www.bristolpost.co.uk/news/uk-world-news/rolls-royce-to-cut-up-4099957Rating: 0.30
Rolls-Royce has this to say on its workforce after 'job losses' report
Rolls-Royce has released a statement about its workforce following claims that it is set to make thousands of job cuts. According to the Financial Times, the engineering giant is set to make up to 8,000 job cuts after aircraft makers Airbus and Boeing slashed production to cope with a fall in global air travel, due to the Covid-19 pandemic. Rolls-Royce employs a global workforce in its civil aerospace engineering business, which is headquartered in Sinfin. The major manufacturer has now released a statement saying it will provide "further details" on the impact of coronavirus on the size of its workforce before the end of this month. A spokeswoman for Rolls-Royce said: "The impact of the Covid-19 pandemic is unprecedented. "We have taken swift action to increase our liquidity, dramatically reduce our spending in 2020, and strengthen our resilience in these exceptionally challenging times. But we will need to take further action. "We have to do this right, which means we are working closely with our employee and trade union representatives and then we will consult with everyone affected. "We have promised to give our people further details of the impact of the current situation on the size of our workforce before the end of this month." Derbyshire Live's sister site Business Live previously reported how Rolls-Royce was introducing a raft of cost-cutting measures to help the firm save £750 million due to the coronavirus crisis. In a trading update released to the markets on April 6, the company said that it would be reducing the salary of its global workforce by at least 10%. The salary of its senior managers and executive team were to take a cut of 20% for the rest of 2020, comprising a 10% reduction and a 10% referral in pay. Rolls-Royce said it was also reducing discretionary costs, such as non-critical capital expenditure projects, consulting, professional fees and sub-contractor costs, ceasing all non-essential travel and postponing external recruitment.
2 May 11:08 • Derbyshire Live • https://www.derbytelegraph.co.uk/news/derby-news/rolls-royce-say-workforce-after-4099164Rating: 0.30
Rolls-Royce to cut up to 8,000 jobs as aviation crisis bites - FT
British aero-engine maker Rolls-Royce Holdings Plc is planning to slash up to 8,000 jobs, the Financial Times reported https://www.ft.com/content/027ce53d-8770-48a6-ba7b-000d979033b0 on Friday. REUTERS: British aero-engine maker Rolls-Royce Holdings Plc is planning to slash up to 8,000 jobs, the Financial Times reported https://www.ft.com/content/027ce53d-8770-48a6-ba7b-000d979033b0 on Friday. Senior executives at Rolls-Royce have started work on a restructuring plan, which would shrink the company's workforce of 52,000 by up to 15per cent, according to several people inside the company, the report said. Rolls-Royce did not immediately respond to a Reuters request for comment. (Reporting by Maria Ponnezhath in Bengaluru; Editing by Vinay Dwivedi)
2 May 05:30 • CNA • https://www.channelnewsasia.com/news/business/rolls-royce-to-cut-up-to-8-000-jobs-as-aviation-crisis-bites---ft-12696070Rating: 3.25
Rolls-Royce considering cutting up to 15% of its workforce - source
(Reuters) - British aero-engine maker Rolls-Royce Holdings (RR.L) is considering cutting up to 15% of its workforce, a source close to the company told Reuters, as customers cut production and airlines park planes due to the coronavirus pandemic. The size of layoffs has been mentioned internally by senior management, but is by no means finalised and there is a lot of negotiation still to be done, the source added. The company’s engines power Airbus SE (AIR.PA) and Boeing Co’s (BA.N) widebody jets and Rolls-Royce is paid by airlines based on how many hours its engines fly. The Financial Times earlier reported Rolls-Royce was preparing to lay off up to 8,000 of its 52,000-strong workforce. An announcement on the final figure is not expected before the end of May, when the company will update employees, according to the FT report. (on.ft.com/2VSaQfD) Last month, Rolls-Royce scrapped its targets and final dividend to shore up its finances to cope with the virus outbreak. The company’s Chief Executive Officer Warren East said in April Rolls-Royce would be looking at cutting cash expenditure, including salary costs across its global workforce by at least 10% this year. Discussions with unions about the job cuts have just begun, the newspaper reported, citing sources. The scale of job cuts is still likely to be larger than after 9/11 when the group cut 5,000 jobs and the vast majority of it is expected to hit the civil aerospace unit, the FT said. While job losses are also expected in the unit’s operations in Singapore and Germany, Britain’s civil aerospace workforce is expected to bear the majority of the cuts, according to the report. Unite, Britain’s largest trade union, did not comment in response to a query from Reuters.
2 May 00:01 • Reuters • https://www.reuters.com/article/us-rolls-royce-hldg-layoffs-idUSKBN22D6DBRating: 4.04
Rolls-Royce considering cutting up to 15% of its workforce - source
British aero-engine maker Rolls-Royce Holdings is considering cutting up to 15% of its workforce, a source close to the company told Reuters, as customers cut production and airlines park planes due to the coronavirus pandemic. The size of layoffs has been mentioned internally by senior management, but is by no means finalized and there is a lot of negotiation still to be done, the source added. The company’s engines power Airbus SE and Boeing Co’s widebody jets and Rolls-Royce is paid by airlines based on how many hours its engines fly. The Financial Times earlier reported Rolls-Royce was preparing to lay off up to 8,000 of its 52,000-strong workforce. An announcement on the final figure is not expected before the end of May, when the company will update employees, according to the FT report. (https://on.ft.com/2VSaQfD) Last month, Rolls-Royce scrapped its targets and final dividend to shore up its finances to cope with the virus outbreak. The company’s Chief Executive Officer Warren East said in April Rolls-Royce would be looking at cutting cash expenditure, including salary costs across its global workforce by at least 10% this year. Discussions with unions about the job cuts have just begun, the newspaper reported, citing sources. The scale of job cuts is still likely to be larger than after 9/11 when the group cut 5,000 jobs and the vast majority of it is expected to hit the civil aerospace unit, the FT said. While job losses are also expected in the unit’s operations in Singapore and Germany, Britain’s civil aerospace workforce is expected to bear the majority of the cuts, according to the report. Unite, Britain’s largest trade union, did not comment in response to a query from Reuters. (Reporting by Maria Ponnezhath and Shubham Kalia in Bengaluru; Editing by Vinay Dwivedi and Shounak Dasgupta)
2 May 00:01 • Financial Post • https://business.financialpost.com/pmn/business-pmn/rolls-royce-considering-cutting-up-to-15-of-its-workforce-source-2Rating: 0.94
South African Airways could shed staff from May 12 -rescue specialists
3 May 19:12
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South African Airways could shed staff from May 12 -rescue specialists
JOHANNESBURG — South African Airways could start shedding its 5,000 staff from May 12 if unions and workers do not accept a proposed severance deal, administrators trying to rescue the airline said on Sunday. SAA entered a local form of bankruptcy protection in December in a last ditch effort to either save or liquidate the national carrier, which has not turned a profit since 2011. The airline has been on state life support that has cost the South African Treasury more than 20 billion rand ($1.06 billion) over the past three years. Rescue specialists Les Matuson and Siviwe Dongwana last month proposed severance packages for all staff, after the government said SAA would receive no more cash. But the National Union of Metalworkers of South Africa and the South African Cabin Crew Association, went to a labor court to try to block the cuts. “In the event that labor do not accept the agreement, the BRPs (business rescue practitioners) reserve their rights to offer (it) … to all employees, regardless whether they belong to a union or not, for individual acceptance,” between May 8 and May 11, the letter to staff reviewed by Reuters said. “Where agreements have not been reached, … those employees’ employment may be terminated for operational reasons on or after 12 May,” it added. South Africa’s public enterprises ministry still wants to salvage a rump of SAA in some form or other, although since the coronavirus pandemic ravaged the global airline industry, it is not clear what that would amount to. The rescue specialists added that they would oppose the application by the two unions in court because “if successful, it would further contribute to the financial and other challenges that SAA is facing.” ($1 = 18.8378 rand) (Reporting by Alexander Winning; Writing by Tim Cocks; Editing by Alexander Smith)
3 May 19:12 • Financial Post • https://business.financialpost.com/pmn/business-pmn/south-african-airways-could-shed-staff-from-may-12-rescue-specialistsRating: 0.94
South African Airways to be replaced by new carrier
Kindly Share This Story: South Africa is seeking to create a new thriving national airline out of the ashes of its current state-owned carrier, which is technically insolvent and on the brink of being placed in liquidation by administrators. South African Airways (SAA) has recorded no profit since 2011 and has survived through government bailouts. An ideal replacement for South African Airways would have both public and private owners, maintain the country’s trade connections and make a profit, the department of public enterprises said in a statement on Friday. The embattled national carrier has been involuntary business rescue since December last year. The rescue practitioners late last month said the airline cannot survive beyond month-end, and the choices left are either a forced liquidation or a winding down process. All its flights have been grounded since South Africa closed its borders and went into a five-week nationwide Covid-19 lockdown in March which has made the survival of SAA, which employs 5,200 employees, even more uncertain. The airline’s troubles were further worsened last month when the government refused to pay yet another 10 billion rand (531 million dollars) in emergency aid to the company, claiming resources had been stretched by the coronavirus pandemic. “Stakeholders (…) have agreed on a long-term vision and strategy” with a view to “the creation of a new dynamic airline,” public enterprises minister Pravin Gordhan said. The minister said it will not be the old SAA but the beginning of a new journey towards the constitution of a newly restructured company which will be the new standard of South Africa. The new carrier is set to compete in the post-COVID-19 world. According to the statement, SAA employees will be transitioned and new leadership and equity partners will be sought. The demise of SAA would mark an end of era for the 86-year old airline which had gone through years of financial troubles associated and high debt associated with poor management. Africa News Vanguard Kindly Share This Story:
2 May 21:14 • Vanguard News • https://www.vanguardngr.com/2020/05/south-african-airways-to-be-replaced-by-new-carrier/Rating: 2.43
Government wants to create a new national airline to take over from SAA
South Africa is seeking to create a new thriving national airline out of the ashes of its current state-owned carrier, which is technically insolvent and on the brink of being placed in liquidation by administrators. An ideal replacement for South African Airways would have both public and private owners, maintain the country’s trade connections and make a profit, the Department of Public Enterprises said in a statement on Friday. The plan has the backing of SAA’s near 5,000-strong workforce, the ministry said, without mentioning the business-rescue team that has been running the airline since December. “The old SAA is dead, there is no doubt about that,” Public Enterprises Minister Pravin Gordhan said by phone from Pretoria, the capital. “But what will take its place may be some or all of the old SAA and maybe some other airlines too.” SAA’s administrators, led by Les Matuson and Siviwe Dongwana, were working on a recovery plan for the perennially loss-making carrier before the Covid-19 crisis forced the grounding of all aircraft. They began the process of liquidating the airline last month after the government refused to provide a bailout package, and have asked all employees to agree to severance packages. That offer remains on the table, a spokeswoman for the administrators said when asked to comment on the DPE’s statement. Labour groups have yet to sign up to any deal. South Africa’s whole aviation industry has been plunged into crisis by the coronavirus pandemic. SA Express, part of the wider SAA group, has been placed in provisional liquidation, while Comair Ltd. said on Thursday it’s selling assets and in talks with lenders to shore up a precarious financial position. Gordhan didn’t give details on how a new SAA could be created, calling it a “complex issue.” He praised the current version’s efforts transporting medical supplies and repatriating citizens stranded by the coronavirus, saying South Africa needs “a national flag carrier that is a source of pride.”
2 May 00:00 • BusinessTech • https://businesstech.co.za/news/government/394614/government-wants-to-create-a-new-national-airline-to-takeover-from-saa/Rating: 1.45
New airline may be created from SAA
South Africa is seeking to create a new thriving national airline out of the ashes of its current state-owned carrier, which is technically insolvent and on the brink of being placed in liquidation by administrators. An ideal replacement for South African Airways would have both public and private owners, maintain the country’s trade connections and make a profit, the Department of Public Enterprises said in a statement on Friday. The plan has the backing of SAA’s near 5,000-strong workforce, the ministry said, without mentioning the business-rescue team that has been running the airline since December. “The old SAA is dead, there is no doubt about that,” Public Enterprises Minister Pravin Gordhan said by phone from Pretoria, the capital. “But what will take its place may be some or all of the old SAA and maybe some other airlines too.” SAA’s administrators, led by Les Matuson and Siviwe Dongwana, were working on a recovery plan for the perennially loss-making carrier before the Covid-19 crisis forced the grounding of all aircraft. They began the process of liquidating the airline last month after the government refused to provide a bailout package, and have asked all employees to agree to severance packages. That offer remains on the table, a spokeswoman for the administrators said when asked to comment on the DPE’s statement. Labor groups have yet to sign up to any deal. South Africa’s whole aviation industry has been plunged into crisis by the coronavirus pandemic. SA Express, part of the wider SAA group, has been placed in provisional liquidation, while Comair Ltd. said on Thursday it’s selling assets and in talks with lenders to shore up a precarious financial position. Gordhan didn’t give details on how a new SAA could be created, calling it a “complex issue.” He praised the current version’s efforts transporting medical supplies and repatriating citizens stranded by the coronavirus, saying South Africa needs “a national flag carrier that is a source of pride.”
2 May 00:00 • MyBroadband • https://mybroadband.co.za/news/motoring/350330-new-airline-may-be-created-from-saa.htmlRating: 1.91
South Africa to create a new national carrier to replace embattled South African Airways
South Africa is seeking to create a new thriving national airline out of the ashes of its current state-owned carrier, which is technically insolvent and on the brink of being placed in liquidation by administrators. South African Airways (SAA) has recorded no profit since 2011 and has survived through government bailouts. An ideal replacement for South African Airways would have both public and private owners, maintain the country’s trade connections and make a profit, the department of public enterprises said in a statement on Friday. The embattled national carrier has been in voluntary business rescue since December last year. The rescue practitioners late last month said the of airline cannot survive beyond month end, and the choices left are either a forced liquidation or a winding down process. All its flights have been grounded since South Africa closed its borders and went into a five-week nationwide Covid-19 lockdown in March which has made the survival of SAA, which employs 5,200 employees, even more uncertain. The airline’s troubles were further worsened last month when the government refused to pay yet another 10 billion rand (531 million dollars) in emergency aid to the company, claiming resources had been stretched by the coronavirus pandemic. “Stakeholders (…) have agreed on a long-term vision and strategy” with a view to “the creation of a new dynamic airline,” public enterprises minister Pravin Gordhan said. The minister said it will not be the old SAA but the beginning of a new journey towards the constitution of a new restructured company which will be the new standard of South Africa. The new carrier is set to compete in the post Covid-19 world. According to the statement, SAA employees will be transitioned and new leadership and equity partners will be sought. The demise of SAA would mark an end of era for the 86-year old airline which had gone through years of financial troubles associated and high debt associated with poor management.
2 May 11:05 • Africanews • https://www.africanews.com/2020/05/02/south-africa-to-create-a-new-national-carrier-to-replace-embattled-south/Rating: 1.14
‘Hamba kahle, totsiens’ to SAA as govt promises new national airline
JOHANNESBURG – Government said it will be starting up a new airline to replace South African Airways (SAA). The department of public enterprises said the new airline will not be the old SAA, but a restructured airline that South Africans can be proud of. The move comes as the SAA business rescue practitioners moved to axe the entire workforce of SAA because the airline is broke. It’s an end of an era for SAA, which has been in the air for 86 years. The airline has been depending on government bailouts until it was placed under administration last year because of financial problems. Last month, the business rescue practitioners asked for more money from government but were denied this. Leading to them saying they have no choice but to terminate all employees of SAA and sell off its assets to pay its debt. But it seems government and the unions have reached an agreement for a new airline with a business rescue plan that has not yet been agreed on. The department of public enterprises said SAA employees will be transitioned and new leadership and equity partners will be sought. Government said this new airline is set to compete in a world post-COVID-19.
2 May 00:00 • ewn.co.za • https://ewn.co.za/2020/05/02/hamba-kahle-totsiens-to-saa-as-govt-promises-new-national-airlineRating: 1.68
Buffett Dumps Airlines and His Aerospace Pain Only Worsens
3 May 22:58
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Buffett Dumps Airlines and His Aerospace Pain Only Worsens
Warren Buffett’s Berkshire Hathaway Inc. dumped its stakes in the four largest U.S. airlines but the billionaire investor remains deeply exposed to the collapse in air travel. Berkshire still owns all of Precision Castparts Corp., a supplier of aerospace parts that’s bracing for lean times as Boeing Co. and Airbus SE cut jetliner production. Berkshire bought Precision Castparts in 2016 in a transaction valued at $37.2 billion, making it one of Buffett’s biggest deals.Now the maker of jet-engine blades and aircraft structural components is facing a double whammy as the coronavirus pandemic all but erases demand for flights, prompting airlines to park jets and slash schedules. That means less need for replacement parts and a big drop in aircraft purchasing. With carriers predicting that flying won’t return to 2019 levels for as long as three years, aerospace suppliers are hunkering down for a protracted slump. “The current downturn is quite different from regular economic cycles,” said Nick Cunningham, an analyst at Agency Partners in London. “Normally, there’s an exaggerated short-term impact with a fairly quick return. This time around, the impact seems to be significant as you’re looking at a collapse in air travel around the world.” In the U.S. alone, passenger totals are down about 95% from a year ago. An index of major U.S. carriers has lost more than half its value this year, paced by a 70% drop for United Airlines Holdings Inc. Buffett said he lost money on his investments in the industry, which also included stakes in American Airlines Group Inc., Delta Air Lines Inc. and Southwest Airlines Co.“The airline business -- and I may be wrong and I hope I’m wrong -- but I think it’s changed in a very major way,” Buffett said. “The future is much less clear to me.” Airline shares sank sharply in pre-market U.S. trading Monday, with big players like American and United falling more than 10%. Boeing slid 4% while General Electric Co. was down 1.8%. Greg Abel, Berkshire’s vice chairman for non-insurance operations, acknowledged at Berkshire’s annual meeting Saturday that Precision Castparts was getting hit, although its defense business remained strong. The parts maker is working to adjust the business to meet current demand, he said, and Buffett pointed out that the pain is rippling throughout the supply chain. “We’re going to have aircraft in this country, we’re going to be flying. But the real question is whether you need a lot of new planes or not and when you’re likely to need them and it affects a lot of people,” Buffett said. “And it certainly affects Precision Castparts, it affects General Electric. It obviously affects Boeing.” Boeing and Airbus have also tumbled by more than half, with steeper declines at suppliers such as Spirit AeroSystems Holdings Inc. and Triumph Group Inc.“It’s good for Precision Castparts that they’re not a standalone public company right now, because if they were, they’d certainly have a very low stock price,” said James Armstrong, who oversees investments including Berkshire shares as president of Henry H. Armstrong Associates. “It’s not great news for them, but I don’t think that business goes away. I think it slows down.” Precision Castparts has been hit by two massive and unpredictable blows that weren’t in any way its fault. Even before the Covid-19 outbreak pushed airlines into the worst crisis in industry history, Boeing’s 737 Max was grounded in March 2019 after two deadly crashes. The Chicago-based planemaker halted production of the Max, its best-selling jet, earlier this year as the flying ban dragged on. The fortunes of Precision Castparts are largely tied to those of Boeing, said Scott Hamilton, a consultant at Leeham Co. who publishes a popular aviation news website. As goes the aerospace giant, so goes its suppliers, he said.“Nobody could have foreseen the airline industry collapse in which 95% of the traffic evaporated virtually overnight,” Hamilton said. “Nobody could foresee the grounding of the Max lasting what may be 18 months. And just as Precision is tied to Boeing, Boeing is tied to the airlines.” Precision Castparts watched its sales slip in the first quarter across all of its major markets, Berkshire said Saturday in its earnings report. That was partly due to the effects of Boeing’s Max problems as well as reduced shipments to customers hurt by the pandemic. That contributed to a 7.3% decline in pretax earnings in the period. The parts maker ended up temporarily halting work at a plant in Portland, Oregon, and later said it would “significantly” cut its workforce, according to a report in The Oregonian. Berkshire said that the business faced higher production costs because of “manufacturing inefficiencies primarily attributable to Covid-19.” Boeing also briefly paused production of multiple aircraft programs. The company has said it will reduce employment by 10%, or about 16,000 jobs, and lower production of jetliners including the 787 Dreamliner. Precision Castparts, with its advanced technologies for casting and forging metals, will remain a key cog in the aerospace supply chain. In addition to the robust defense business in aircraft parts, the company serves customers in the power and energy industries.But with commercial air travel facing a long and uncertain recovery, Buffett’s bet on Precision Castparts will remain a drag on Berkshire for the foreseeable future.“That’s a big-time dud,” said Bill Smead, chief investment officer of Smead Capital Management, which owns Berkshire shares. “He obviously in retrospect made a real bad whole-company purchase.” (Update with early U.S. trading in seventh paragraph)
3 May 22:58 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/buffett-dumps-airlines-but-his-aerospace-pain-will-only-worsenRating: 4.04
Buffett Dumps Airlines But His Aerospace Pain Will Only Worsen
(Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc. dumped its stakes in the four largest U.S. airlines but the billionaire investor remains deeply exposed to the collapse in air travel. Berkshire still owns all of Precision Castparts Corp., a supplier of aerospace parts that’s bracing for lean times as Boeing Co. and Airbus SE cut jetliner production. Berkshire bought Precision Castparts in 2016 in a transaction valued at $37.2 billion, making it one of Buffett’s biggest deals.Now the maker of jet-engine blades and aircraft structural components is facing a double whammy as the coronavirus pandemic all but erases demand for flights, prompting airlines to park jets and slash schedules. That means less need for replacement parts and a big drop in aircraft purchasing. With carriers predicting that flying won’t return to 2019 levels for as long as three years, aerospace suppliers are hunkering down for a protracted slump. “The current downturn is quite different from regular economic cycles,” said Nick Cunningham, an analyst at Agency Partners in London. “Normally, there’s an exaggerated short-term impact with a fairly quick return. This time around, the impact seems to be significant as you’re looking at a collapse in air travel around the world.” Airline Exit In the U.S. alone, passenger totals are down about 95% from a year ago. An index of major U.S. carriers has lost more than half its value this year, paced by a 70% drop for United Airlines Holdings Inc. Buffett said he lost money on his investments in the industry, which also included stakes in American Airlines Group Inc., Delta Air Lines Inc. and Southwest Airlines Co.”The airline business — and I may be wrong and I hope I’m wrong — but I think it’s changed in a very major way,” Buffett said. “The future is much less clear to me.” Greg Abel, Berkshire’s vice chairman for non-insurance operations, acknowledged at Berkshire’s annual meeting Saturday that Precision Castparts was getting hit, although its defense business remained strong. The parts maker is working to adjust the business to meet current demand, he said, and Buffett pointed out that the pain is rippling throughout the supply chain. “We’re going to have aircraft in this country, we’re going to be flying. But the real question is whether you need a lot of new planes or not and when you’re likely to need them and it affects a lot of people,” Buffett said. “And it certainly affects Precision Castparts, it affects General Electric. It obviously affects Boeing.” Aerospace Weakness Boeing and Airbus have also tumbled by more than half, with steeper declines at suppliers such as Spirit AeroSystems Holdings Inc. and Triumph Group Inc.”It’s good for Precision Castparts that they’re not a standalone public company right now, because if they were, they’d certainly have a very low stock price,” said James Armstrong, who oversees investments including Berkshire shares as president of Henry H. Armstrong Associates. “It’s not great news for them, but I don’t think that business goes away. I think it slows down.” Precision Castparts has been hit by two massive and unpredictable blows that weren’t in any way its fault. Even before the Covid-19 outbreak pushed airlines into the worst crisis in industry history, Boeing’s 737 Max was grounded in March 2019 after two deadly crashes. The Chicago-based planemaker halted production of the Max, its best-selling jet, earlier this year as the flying ban dragged on. Boeing Drag The fortunes of Precision Castparts are largely tied to those of Boeing, said Scott Hamilton, a consultant at Leeham Co. who publishes a popular aviation news website. As goes the aerospace giant, so goes its suppliers, he said.”Nobody could have foreseen the airline industry collapse in which 95% of the traffic evaporated virtually overnight,” Hamilton said. “Nobody could foresee the grounding of the Max lasting what may be 18 months. And just as Precision is tied to Boeing, Boeing is tied to the airlines.” Precision Castparts watched its sales slip in the first quarter across all of its major markets, Berkshire said Saturday in its earnings report. That was partly due to the effects of Boeing’s Max problems as well as reduced shipments to customers hurt by the pandemic. That contributed to a 7.3% decline in pretax earnings in the period. The parts maker ended up temporarily halting work at a plant in Portland, Oregon, and later said it would “significantly” cut its workforce, according to a report in The Oregonian. Berkshire said that the business faced higher production costs because of “manufacturing inefficiencies primarily attributable to Covid-19.” ‘Big-Time Dud’ Boeing also briefly paused production of multiple aircraft programs. The company has said it will reduce employment by 10%, or about 16,000 jobs, and lower production of jetliners including the 787 Dreamliner. Precision Castparts, with its advanced technologies for casting and forging metals, will remain a key cog in the aerospace supply chain. In addition to the robust defense business in aircraft parts, the company serves customers in the power and energy industries.But with commercial air travel facing a long and uncertain recovery, Buffett’s bet on Precision Castparts will remain a drag on Berkshire for the foreseeable future.”That’s a big-time dud,” said Bill Smead, chief investment officer of Smead Capital Management, which owns Berkshire shares. “He obviously in retrospect made a real bad whole-company purchase.” ©2020 Bloomberg L.P. Bloomberg.com
3 May 23:14 • Financial Post • https://business.financialpost.com/pmn/business-pmn/buffett-dumps-airlines-but-his-aerospace-pain-will-only-worsenRating: 0.94
Global Oil Demand Starts a Long, Painful and Uncertain Recovery
3 May 11:00
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Global Oil Demand Starts a Long, Painful and Uncertain Recovery
Few have a better watchtower over oil demand than Joe Gorder, chief executive officer of major U.S. refiner Valero Energy Corp. But this week Gorder didn’t even need his business insight to know that fuel consumption was starting to recover in America. He only needed to look at the streets of San Antonio, the Texas city where he’s based, to see traffic emerging after weeks of lockdown. “People are starting to get out more,” Gorder said. “I think there probably is a pent-up demand for folks to get out of their houses and get mobile.” From the streets of San Antonio to Barcelona and Beijing, traffic data, sales at fuel stations, and pipeline flows all suggest that the slump in oil demand probably bottomed out around the middle of April, and has now started a modest -- and very tentative -- recovery. The signs matter beyond the petroleum industry as they provide a glimmer of hope after a torrent of negative economic data. “I believe we have seen the bottom,” said Marco Dunand, co-founder of Mercuria Energy Group Ltd., one of the world’s top-5 oil trading houses. But the recovery is extremely slow. Oil traders believe it’s likely to take more than a year, and perhaps much longer, before global demand reaches the pre-pandemic levels of roughly 100 million barrels a day. A growing minority even speculate it may never get there again. The likely shape of the revival has been a hotly contested topic. A V-shape was discarded a while ago. It’s possible it could be U-shaped, with a relatively long period along bottom, or L-shaped, with demand never returning to where it once was. Perhaps the Latin alphabet doesn’t have a letter for the right shape. The square-root mathematical symbol may offer, to a point, an alternative: first a V-recovery as lockdowns are relaxed, followed by a long, flat tail as lifestyle changes, such as more work-from-home, become more normal. Certainly, airlines don’t expect a return to the 2019 level of demand for years to come. It’s what Ed Morse, a veteran oil watcher at Citigroup Inc., calls “the winding, bumpy road to an oil recovery.” The sheer scale of the demand destruction -- about 30 million barrels a day in April -- means the comeback is going to be a painful process. The International Energy Agency estimates that consumption will be down 25.8 million barrels a day in May, and 14.6 million in June. In December, it would still be 2.7 million a day below 2019 levels. “We’re seeing improvements really across all three markets, we’ve seen in May volumes trending up in Europe, we see that happening in the U.S., and we see that also in Asia,” Darren Woods, CEO of Exxon Mobil Corp., told investors on Friday. “There are some, I’d say, encouraging early signs.” The very gradual improvement comes just as producers, from the OPEC+ alliance to drillers in Texas, accelerate their output cuts. Together they could progressively push supply and demand into balance over time. In the past week, more companies, including big American firms such as ConocoPhillips, have announced fresh production closures. “Globally, we are at the inflection point where we are past the worst for oil demand destruction but not for supply destruction,” Olivier Jakob, managing director at consultant Petromatrix GmbH. “This should help price stabilization.” The process will take time, with unsold crude and oil products likely to accumulate well into June and perhaps even July. Storage tanks are nearly full, and brings with it the risk of New York crude gyrating wildly again when the June futures near expiry in the middle of this month, mirroring what happened when the May contract ended and sent prices below zero. Even so, the physical oil market, where actual barrels change hands, is showing tentative signs of recovery, particularly in Europe. Urals, Russia’s flagship export grade, has risen to a premium over Brent after Moscow cut exports to a 10-year low. The epicentre of the oil recovery is the same as where the public health crisis started in January: Wuhan. Weekday traffic in the Chinese city has almost returned to pre-crisis levels, although it remains depressed on weekends. It’s completely back to normal during rush hour in other major cities including Beijing, Guangzhou and Shanghai, according to data from navigation company TomTom International BV. “There are a few green shoots in some places like China,” said Jessica Uhl, finance head at Royal Dutch Shell Plc. “We have some of our retail stations where demand and volume is up above pre-Covid levels.” Some of these shoots are also visible in one of the most battered industries -- aviation. Commercial operations worldwide are recovering slightly, with Flightradar24 data showing 33,500 flights taking off on April 30, the most in a month. However, that’s still two-thirds lower than from before the pandemic. Most airlines do not plan to fly again until July at the earliest. In the oil industry itself, the recovery is patchy, and many worry that it could quickly reverse if a second wave of infections hit after lockdowns are relaxed. Diesel, which fuels trucks and industries, is holding up better than gasoline, which is doing a lot better than jet-fuel. Even when demand strengthens, crude consumption may remain low because refiners will have first to get rid of the millions of gallons of oil products that have piled up over the past weeks. As with many economic indicators, oil demand data comes with a significant lag. So traders rely on proxy estimates for a near real-time view. One is highway traffic. Another is the amount of gasoline and diesel that’s trucked out from pipeline terminals into fuel stations. In the U.S., the amount of gasoline supplied to the market increased last week to nearly 5.9 million barrels a day, up from 5.1 million in the first week of April but well below the typically more than 9 million before the virus, according to the official data. Early last month, refiners saw gasoline demand at 55% of normal level, which improved to 64% in the latest seven-day average. Valero confirmed on Thursday that it’s seeing some pick-up. “I do think we’re going to see more activity,” Valero’s Gorder said. Spain, which had one of the strictest lockdowns in Europe, offers a rare window into real-time demand as the nation’s biggest pipeline operator is disclosing weekly information. CLH Group said gasoline demand in the week to April 26 was down 75% from a year ago, a slight improvement from 81% in mid-April and 83% in late March. In the U.K., demand for road fuels is currently down between 55% and 60% from levels before the crisis, compared with 65%-70% two weeks ago, according to the Petrol Retailers Association. The data show that the recovery is only marginal. But it also indicates that consumption has, at the very least, bottomed out. Where demand goes, prices follow, and Torbjorn Tornqvist, head of commodity trading giant Gunvor Group Ltd, thinks the worst of oil’s slide is over. Echoing a widely held view in the market, Tornqvist warns, however, that these subdued prices and demand may remain for a while. Prices aren’t likely to go much above $40 a barrel before the end of 2021, Tornqvist said. Only four months ago, at the start of this year, benchmark Brent crude was near $70. It was at about $26 a barrel on Monday. “It’s going to take a long time to balance the market,” he said. — With assistance by Andy Hoffman, Laura Hurst, and Barbara J Powell (Updates with oil price in penultimate paragraph)
3 May 11:00 • Bloomberg.com • https://www.bloomberg.com/news/articles/2020-05-03/global-oil-demand-starts-a-long-painful-and-uncertain-recoveryRating: 4.04
Global Oil Demand Starts a Long, Painful and Uncertain Recovery
(Bloomberg) — Few have a better watchtower over oil demand than Joe Gorder, chief executive officer of major U.S. refiner Valero Energy Corp. But this week Gorder didn’t even need his business insight to know that fuel consumption was starting to recover in America. He only needed to look at the streets of San Antonio, the Texas city where he’s based, to see traffic emerging after weeks of lockdown. “People are starting to get out more,” Gorder said. “I think there probably is a pent-up demand for folks to get out of their houses and get mobile.” From the streets of San Antonio to Barcelona and Beijing, traffic data, sales at fuel stations, and pipeline flows all suggest that the slump in oil demand probably bottomed out around the middle of April, and has now started a modest — and very tentative — recovery. The signs matter beyond the petroleum industry as they provide a glimmer of hope after a torrent of negative economic data. “I believe we have seen the bottom,” said Marco Dunand, co-founder of Mercuria Energy Group Ltd., one of the world’s top-5 oil trading houses. But the recovery is extremely slow. Oil traders believe it’s likely to take more than a year, and perhaps much longer, before global demand reaches the pre-pandemic levels of roughly 100 million barrels a day. A growing minority even speculate it may never get there again. The likely shape of the revival has been a hotly contested topic. A V-shape was discarded a while ago. It’s possible it could be U-shaped, with a relatively long period along bottom, or L-shaped, with demand never returning to where it once was. Perhaps the Latin alphabet doesn’t have a letter for the right shape. The square-root mathematical symbol may offer, to a point, an alternative: first a V-recovery as lockdowns are relaxed, followed by a long, flat tail as lifestyle changes, such as more work-from-home, become more normal. ‘Bumpy Road’ Certainly, airlines don’t expect a return to the 2019 level of demand for years to come. It’s what Ed Morse, a veteran oil watcher at Citigroup Inc., calls “the winding, bumpy road to an oil recovery.” The sheer scale of the demand destruction — about 30 million barrels a day in April — means the comeback is going to be a painful process. The International Energy Agency estimates that consumption will be down 25.8 million barrels a day in May, and 14.6 million in June. In December, it would still be 2.7 million a day below 2019 levels. “We’re seeing improvements really across all three markets, we’ve seen in May volumes trending up in Europe, we see that happening in the U.S., and we see that also in Asia,” Darren Woods, CEO of Exxon Mobil Corp., told investors on Friday. “There are some, I’d say, encouraging early signs.” The very gradual improvement comes just as producers, from the OPEC+ alliance to drillers in Texas, accelerate their output cuts. Together they could progressively push supply and demand into balance over time. In the past week, more companies, including big American firms such as ConocoPhillips, have announced fresh production closures. “Globally, we are at the inflection point where we are past the worst for oil demand destruction but not for supply destruction,” Olivier Jakob, managing director at consultant Petromatrix GmbH. “This should help price stabilization.” The process will take time, with unsold crude and oil products likely to accumulate well into June and perhaps even July. Storage tanks are nearly full, and brings with it the risk of New York crude gyrating wildly again when the June futures near expiry in the middle of this month, mirroring what happened when the May contract ended and sent prices below zero. Even so, the physical oil market, where actual barrels change hands, is showing tentative signs of recovery, particularly in Europe. Urals, Russia’s flagship export grade, has risen to a premium over Brent after Moscow cut exports to a 10-year low. Recovery Epicenter The epicentre of the oil recovery is the same as where the public health crisis started in January: Wuhan. Weekday traffic in the Chinese city has almost returned to pre-crisis levels, although it remains depressed on weekends. It’s completely back to normal during rush hour in other major cities including Beijing, Guangzhou and Shanghai, according to data from navigation company TomTom International BV. “There are a few green shoots in some places like China,” said Jessica Uhl, finance head at Royal Dutch Shell Plc. “We have some of our retail stations where demand and volume is up above pre-Covid levels.” Some of these shoots are also visible in one of the most battered industries — aviation. Commercial operations worldwide are recovering slightly, with Flightradar24 data showing 33,500 flights taking off on April 30, the most in a month. However, that’s still two-thirds lower than from before the pandemic. Most airlines do not plan to fly again until July at the earliest. In the oil industry itself, the recovery is patchy, and many worry that it could quickly reverse if a second wave of infections hit after lockdowns are relaxed. Diesel, which fuels trucks and industries, is holding up better than gasoline, which is doing a lot better than jet-fuel. Even when demand strengthens, crude consumption may remain low because refiners will have first to get rid of the millions of gallons of oil products that have piled up over the past weeks. Murky Details As with many economic indicators, oil demand data comes with a significant lag. So traders rely on proxy estimates for a near real-time view. One is highway traffic. Another is the amount of gasoline and diesel that’s trucked out from pipeline terminals into fuel stations. In the U.S., the amount of gasoline supplied to the market increased last week to nearly 5.9 million barrels a day, up from 5.1 million in the first week of April but well below the typically more than 9 million before the virus, according to the official data. Early last month, refiners saw gasoline demand at 55% of normal level, which improved to 64% in the latest seven-day average. Valero confirmed on Thursday that it’s seeing some pick-up. “I do think we’re going to see more activity,” Valero’s Gorder said. Spain, which had one of the strictest lockdowns in Europe, offers a rare window into real-time demand as the nation’s biggest pipeline operator is disclosing weekly information. CLH Group said gasoline demand in the week to April 26 was down 75% from a year ago, a slight improvement from 81% in mid-April and 83% in late March. In the U.K., demand for road fuels is currently down between 55% and 60% from levels before the crisis, compared with 65%-70% two weeks ago, according to the Petrol Retailers Association. The data show that the recovery is only marginal. But it also indicates that consumption has, at the very least, bottomed out. Where demand goes, prices follow, and Torbjorn Tornqvist, head of commodity trading giant Gunvor Group Ltd, thinks the worst of oil’s slide is over. Echoing a widely held view in the market, Tornqvist warns, however, that these subdued prices and demand may remain for a while. Prices aren’t likely to go much above $40 a barrel before the end of 2021, Tornqvist said. Only four months ago, at the start of this year, benchmark Brent crude was near $70. “It’s going to take a long time to balance the market,” he said. ©2020 Bloomberg L.P. Bloomberg.com
3 May 12:00 • Financial Post • https://business.financialpost.com/pmn/business-pmn/global-oil-demand-starts-a-long-painful-and-uncertain-recoveryRating: 0.94
Elon Musk retweets Louis Armstrong's 'What a Wonderful World' amid questions over whether his Twitter meltdown which sent Tesla stock down by more than 10 per cent and wiped off $14billion from company's value was illegal
3 May 15:08
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2 articles
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Elon Musk retweets Louis Armstrong's 'What a Wonderful World' amid questions over whether his Twitter meltdown which sent Tesla stock down by more than 10 per cent and wiped off $14billion from company's value was illegal
Elon Musk doesn’t appear to be worried about potential legal problems for tweeting that his company’s stock price was too high earlier this week after the Tesla CEO posted Louis Armstrong’s ‘What a Wonderful World’ on his Twitter feed on Saturday. ‘One of the all-time best songs,’ Musk gushed on Twitter after posting the YouTube clip of the 1967 hit song. Shares of Tesla Inc tumbled more than 10 per cent on Friday after Musk tweeted that the electric carmaker’s high-flying stock was overly expensive. 'Tesla stock price is too high,' Musk said on Twitter in one of several unusual messages, including ones quoting parts of the US national anthem and that he would sell almost all his physical possessions. The subsequent share drop erased around $13billion from Tesla’s market value and nearly $3billion from the value of Musk’s stake. Still, shares remain up almost 50 per cent from the start of April. More than two hours after the tweets began, Tesla had not responded to requests for comment. Twitter declined to comment. The Wall Street Journal reported that Musk had responded to an email asking whether he was joking or whether his tweet was vetted by saying, 'No.' Musk has a history of sending provocative tweets. In August 2018, he tweeted that he had secured funding to possibly take Tesla private at a big premium, which led a fraud case by the Securities and Exchange Commission. Musk settled by agreeing to pay $20million and have a Tesla lawyer pre-screen tweets with important information about the company. Legal experts admit to being baffled as to whether Musk's latest tweet violates securities law, saying they can think of no other circumstances where a CEO has tried to drive down the price of his company's stock with casual statements. 'I don't see anything actionable here,' attorney Evelyn Cruz Sroufe, a partner at Perkins Coie who specializes in corporate governance, told The Verge. For the tweets to qualify as securities fraud, the SEC or a plaintiff would have to show that Musk would have profited from a drop in the stock price, for instance by holding a short position. 'This looks instead to be just Musk sounding off,' Sroufe said. 'His use of 'imo' also puts his statement into the realm of personal opinion, for which there is latitude,' she added, referring to the abbreviation for 'in my opinion.' Others say that in order for an action to qualify as market manipulation, the government only needs to show intent, not person gain. 'He doesn't need to benefit, though benefit is often how the government proves intent,' Alma Angotti, a partner and co-head of the global investigations and compliance practice at Guidehouse, told the outlet. Last month, a federal judge said Tesla and Musk must face a lawsuit by shareholders over the going-private tweet, including a claim that Musk intended to defraud them. In April 2019 Musk tweeted, 'My Twitter is pretty much complete nonsense at this point.' Tesla's stock has surged in recent weeks, but is down since Wednesday after the company reported an unexpected quarterly profit, despite manufacturing interruptions caused by the coronavirus pandemic. Musk’s latest tweets follow others last week. On Tesla’s quarterly conference call on Wednesday, he called sweeping US stay-at-home restrictions to curtail the coronavirus outbreak 'fascist.' Those restrictions have forced Tesla to shutter its car plant in Fremont, California. Musk’s iconoclastic stance has helped him attract over 33 million followers on Twitter and is seen as a marketing boon for Tesla. Tesla’s recent rally has put Musk on the verge of a payday of over $700million. The six-month average of Tesla’s market capitalization is just short of $100billion, a target that would trigger the vesting of a tranche of options granted to Musk to buy 1.69 million shares as part of his two-year-old pay package. On Saturday, Musk was asked on Twitter about his favorite romantic song, to which he replied: 'I don't want to set the world on fire by the Ink Spots.' The eccentric billionaire was busy on Twitter early Sunday morning as well. Musk, who also runs the rocket-building company SpaceX, reposted a tweet from 2017 in which he called for humanity to build a ‘moon base’ as well as to send astronauts to Mars. ‘That was 2.5 years ago & still not even on the moon. Progress must accelerate!’ Musk tweeted in the early morning hours on Sunday. Shortly after posting the tweet, he then commented on Minecraft, the popular sandbox video game. 'Minecraft has amazing legs,’ Musk tweeted on Sunday. He then wondered about whether it was possible to enable Tesla drivers to play the game while inside the vehicle. ‘Anyone think they can get a good multiplayer Minecraft working on Teslas?’ Musk wondered. ‘Or maybe create a game that interacts virtually with reality like Pokémon Go while driving safely? ‘Like a complex version of Pac-man or Mario Kart?’ Musk was asked by another Twitter user about progress being made by his other company, SpaceX, on the Raptor Vacuum engine project. He said SpaceX was ‘about a month away from testing Raptor Vacuum.’ Raptor Vacuum is an upgraded engine that SpaceX is working on for its fleet of Starship spacecraft. Starship, which is still under development, is designed to serve as a reusable launch vehicle that Musk hopes will one day transport humans to Mars. Musk was also asked on Twitter about the progress being made on the Super Heavy, the booster rocket that is attached to Starship. ‘A little,’ Musk said when asked if SpaceX is designing the booster. ‘Will have 31 engines, not 37, no big fins and legs similar to ship,’ he tweeted. ‘That thrust dome is the super hard part. ‘Raptor SL thrust starts at 200 ton, but upgrades in the works for 250 ton.’ SpaceX is one of three private companies that has entered into contract with NASA to build lunar landers for astronauts. NASA Administrator Jim Bridenstine announced on Thursday that the three companies – SpaceX, Jeff Bezos’ firm Blue Origin, and the Alabama-based Dynetics - will develop, build and fly lunar landers, with the goal of returning astronauts to the moon in 2024 and ultimately on to Mars. Altogether, the contracts for the initial 10-month period total $967million. ‘This is the last piece that we need in order to get to the moon’ by 2024, Bridenstine said. He noted it will be the first lunar lander since the last Apollo moon mission in 1972. Over the next 10 months, each company will refine its concept and NASA will decide which lander to test first. Bridenstine said NASA will go with the company that has the highest probability of success by 2024. NASA will rely on its own Orion capsules and Space Launch System megarockets — still under development — to launch astronauts to the moon. The two other companies, Boeing and Vivace, put in bids but were eliminated early on, leaving the three awarded contracts. Blue Origin got more than half the total amount - $579million - more than four times more than SpaceX’s $135million. Dynetics was in between, with $253million. SpaceX’s proposed Starship lander is so tall that astronauts will use an elevator to get to and from the lunar surface. Blue Origin’s version comes with a big ladder, according to artistic renderings. The Dynetics lander is so low to the ground that only a few steps are needed, like a front porch, a feature that NASA gave high marks for safety and efficiency. SpaceX is using its own Starship spacecraft - still under development in Texas - and its own rockets. Blue Origin and Dynetics are partnering with numerous subcontractors, including commercial launch companies. Space X completed its final parachute test as the aerospace company and NASA prepare to launch two astronauts to the International Space Station on May 27. Space X, founded by Musk, shared news of the successful test run Friday on Twitter as they gear up for the historic lift off of Demo-2, the first crewed test flight of the Crew Dragon spacecraft. '27th and final test of Crew Dragon’s upgraded Mark 3 parachutes complete,' Space X wrote. 'One step closer to flying NASA astronauts Robert Behnken and Doug Hurley to the International Space Station and safely returning them back home to Earth.' A photo of the test showed the Crew Dragon's parachutes fully functional as it safely floated to the ground. Space enthusiasts are anticipating the launch as it is latest step is helping push the US back to the front of human spaceflight. It will be America's first manned spaceflight in nearly nine years. NASA has been unable to fly astronauts since the Space Shuttle fleet was retired 2011, and have been forced to rely on Russian Soyuz rockets for rides to the International Space Station at $84million a seat. Space officials also complete an investigation into an engine failure on the first stage of the Space X Falcon 9 rocket during a previous launch in March. During that test, 60 of Space X's Starlink internet satellites were aboard, Space.com reports. The misstep didn't interfere with the overall mission since the satellites reached orbit, but NASA and Space X conducted an investigation since the upcoming launch would also use a Falcon 9 rocket. 'We have reviewed the anomaly resolution of the Starlink launch and actually have cleared the engines on our vehicle for that failure,' said Kathy Lueders, manager of NASA's Commercial Crew Program. Space X has developed Crew Dragon in contact with the Commercial Crew Program. In 2014, NASA awarded contracts to Boeing and SpaceX to create a spacecraft capable of flying humans to the space station. The following years were bogged down by funding issues and technical problems that halted progress. However, Space X's deal includes finishing the capsule and flying six operational crew missions to and from ISS. Meanwhile, Boeing has had difficulty with its Starliner spacecraft, including arriving in the wrong orbit during a test flight and problems with deploying parachutes. It’s unclear when Boeing will need to send another Starliner to the space station without launching astronauts later this year An investigation team is still looking into why the Starliner's automated timer was off by 11 hours during the December test flight. Artemis was the twin sister of Apollo and goddess of the Moon in Greek mythology. NASA has chosen her to personify its path back to the Moon, which will see astronauts return to the lunar surface by 2024 - including the first woman and the next man. Artemis 1, formerly Exploration Mission-1, is the first in a series of increasingly complex missions that will enable human exploration to the Moon and Mars. Artemis 1 will be the first integrated flight test of NASA’s deep space exploration system: the Orion spacecraft, Space Launch System (SLS) rocket and the ground systems at Kennedy Space Center in Cape Canaveral, Florida. Artemis 1 will be an uncrewed flight that will provide a foundation for human deep space exploration, and demonstrate our commitment and capability to extend human existence to the Moon and beyond. During this flight, the spacecraft will launch on the most powerful rocket in the world and fly farther than any spacecraft built for humans has ever flown. It will travel 280,000 miles (450,600 km) from Earth, thousands of miles beyond the Moon over the course of about a three-week mission. Orion will stay in space longer than any ship for astronauts has done without docking to a space station and return home faster and hotter than ever before. With this first exploration mission, NASA is leading the next steps of human exploration into deep space where astronauts will build and begin testing the systems near the Moon needed for lunar surface missions and exploration to other destinations farther from Earth, including Mars. The will take crew on a different trajectory and test Orion’s critical systems with humans aboard. The SLS rocket will from an initial configuration capable of sending more than 26 metric tons to the Moon, to a final configuration that can send at least 45 metric tons. Together, Orion, SLS and the ground systems at Kennedy will be able to meet the most challenging crew and cargo mission needs in deep space. Eventually NASA seeks to establish a sustainable human presence on the Moon by 2028 as a result of the Artemis mission. The space agency hopes this colony will uncover new scientific discoveries, demonstrate new technological advancements and lay the foundation for private companies to build a lunar economy.
3 May 15:08 • Mail Online • https://www.dailymail.co.uk/news/article-8282239/Elon-Musk-retweets-Louis-Armstrongs-Wonderful-World-amid-questions-Twitter-meltdown.html?ns_mchannel=rss&ns_campaign=1490&ito=1490Rating: 4.11
Tesla Stocks Plummet $14B After Elon Musk’s Recent Twitter Shit-Posting Marathon
Boy-genius and quite possibly the closest thing we’ll ever get to a real-life Jimmy Neutron, Elon Musk is back on his Twitter bullshit and hoo boy, this one’s gonna cost him. He kicked it off on Saturday morning by announcing that the Tesla stock price is too high, in his personal opinion. Yes, Tesla. The company he owns. Is the stock price too high? Or was Elon too high? Who knows. Naturally, when the founder of a high-profile company like Tesla tweets that their stock price is too high, investors are going to GTFO of there quick smart. By the time Yahoo Finance covered the debacle, the Tesla share price had dropped by a staggering $14 billion USD (roughly $21.8 billion AUD), making this a wildly expensive mistake. But this isn’t even the first time Elon has landed himself in hot water for tweeting about Tesla. Back in 2018, he tweeted that he was in talks to remove Tesla from the stock market, which naturally led to thousands of people selling their shares. After this ordeal, the Securities and Exchange Commission forced Tesla to put steps in place to make sure Elon wouldn’t tweet this type of tomfoolery again. Clearly, the checks didn’t work. But the Twitter rampage didn’t end there. In just over an hour, Musk published numerous tweets ranging from “Now give people back their FREEDOM” to “I am selling almost all of physical possessions. Will own no house.” Interestingly, Elon Musk actually owns Gene Wilder’s old house as part of his estimated $100b USD real estate portfolio. After announcing that he planned to sell all of his worldly possessions, it’s hardly surprising that he also had to admit that his girlfriend Grimes was mad at him. I mean, can you blame her? He then followed up by announcing that their baby is “due on Monday.” Yes. Elon Musk is out here shit-posting on Twitter and losing his company billions of dollars mere days before the birth of his sixth child. Please send your thoughts and prayers to Grimes during what must be So there you have it, no amount of money or success can save you from the inevitable spiral into isolation-fuelled Twitter shit-posting.
3 May 09:53 • Pedestrian TV • https://www.pedestrian.tv/tech-gaming/elon-musk-tweet/Rating: 0.62
GM and SAIC's China sales rebound in April as market recovers
3 May 15:39
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GM and SAIC's China sales rebound in April as market recovers
BEIJING (Reuters) - General Motors’ sales in China saw double-digit year-on-year growth in April, its two local ventures said on Sunday, as the world’s biggest auto market recovers from the coronavirus. GM’s (GM.N) joint venture with SAIC Motor Corp (600104.SS), which manufactures Buick, Chevrolet and Cadillac vehicles, said its sales in China grew 13.6% compared to a year earlier. It said it had sold 111,155 units in April, including exported cars. Meanwhile, SGMW, a separate GM venture with SAIC and Guangxi Automobile Group which produces no-frills minivans and has started to make higher-end cars, said its sales jumped 13.5% to over 127,000 units last month. U.S. automaker GM, which is China’s second biggest foreign car company after Volkswagen (VOWG_p.DE), said its sales in China fell 43.3% in the first three months of 2020 compared with the same period last year. To attract customers, GM and SAIC have hired social media celebrities to promote its new models and are offering free medical masks to customers. China’s biggest automaker SAIC, which sold more than 6 million cars last year, said its sales rose 0.5% compared to the same period last year. As well as the GM venture, it also builds its own brand cars and operates a venture with Volkswagen.
3 May 15:39 • Reuters • https://www.reuters.com/article/us-gm-china-sales-idUSKBN22F0NDRating: 4.04
GM and SAIC's China sales rebound in April as market recovers
BEIJING (Reuters) - General Motors' sales in China saw double-digit year-on-year growth in April, its two local ventures said on Sunday, as the world's biggest auto market recovers from the coronavirus. GM's (N:GM) joint venture with SAIC Motor Corp (SS:600104), which manufactures Buick, Chevrolet and Cadillac vehicles, said its sales in China grew 13.6% compared to a year earlier. It said it had sold 111,155 units in April, including exported cars. Meanwhile, SGMW, a separate GM venture with SAIC and Guangxi Automobile Group which produces no-frills minivans and has started to make higher-end cars, said its sales jumped 13.5% to over 127,000 units last month. U.S. automaker GM, which is China's second biggest foreign car company after Volkswagen (DE:VOWG_p), said its sales in China fell 43.3% in the first three months of 2020 compared with the same period last year. To attract customers, GM and SAIC have hired social media celebrities to promote its new models and are offering free medical masks to customers. China's biggest automaker SAIC, which sold more than 6 million cars last year, said its sales rose 0.5% compared to the same period last year. As well as the GM venture, it also builds its own brand cars and operates a venture with Volkswagen.
3 May 00:00 • Investing.com • https://www.investing.com/news/economy/gm-and-saics-china-sales-rebound-in-april-as-market-recovers-2159025Rating: 0.30
Thyssenkrupp sees coronavirus cash squeeze despite elevator sale: letter
3 May 12:30
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2 articles
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Thyssenkrupp sees coronavirus cash squeeze despite elevator sale: letter
DUESSELDORF, Germany (Reuters) - Germany’s Thyssenkrupp (TKAG.DE) expects the coronavirus crisis to cause a new financial squeeze, scuppering hopes that selling its elevator business would deliver a swift cash respite for the embattled firm, its management board told staff in a letter. The elevator division was sold in February to ease financial pressure on the conglomerate which has struggled for years after ill-fated investments. But the coronavirus crisis has dealt a blow before cash from that sale arrives in June. Sources said last week that Thyssenkrupp had secured about 1 billion euros ($1.10 billion) in state aid to tide it over until sale proceeds arrive. “In the medium term, the cash outflows caused by the corona (crisis) will in all likelihood result in the financial leeway created by the sale of the elevator business becoming much lower than what was originally anticipated,” the board wrote to staff. “We are preparing solutions for this,” according to the April 30 letter signed by Chief Executive Martina Merz that was seen by Reuters and first reported by German daily Handelsblatt. Thyssenkrupp agreed to sell its elevators division to a consortium of Advent, Cinven and Germany’s RAG foundation for 17.2 billion euros in February, with proceeds expected to be received in June. A source said the loan from state development bank KfW would assist the conglomerate, which has suffered from slow demand for auto parts after carmakers shut down production because of the pandemic. The loan expires at the end of September Car makers and suppliers have scrambled to shore up their liquidity as sales in Europe tumbled by more than 50% in March. Thyssenkrupp has been pummelled in recent years by a downturn in the car market, multiple leadership changes and an overly complex group structure. Its shares hit historic lows around 3.20 euros in mid-March. As well as selling its elevator business, Thyssenkrupp’s restructuring involves seeking buyers for its Plant Technology division, which builds cement, chemicals and fertiliser plants. ($1 = 0.9105 euros)
3 May 12:30 • Reuters • https://www.reuters.com/article/us-health-coronavirus-thyssenkrupp-idUSKBN22F0IKRating: 4.04
Thyssenkrupp sees COVID-19 cash squeeze despite elevator sale
DUESSELDORF: Germany's Thyssenkrupp expects the coronavirus crisis to cause a new financial squeeze, scuppering hopes that selling its elevator business would deliver a swift cash respite for the embattled firm, its management board told staff in a letter. The elevator division was sold in February to ease financial pressure on the conglomerate which has struggled for years after ill-fated investments. But the coronavirus crisis has dealt a blow before cash from that sale arrives in June. Sources said last week that Thyssenkrupp had secured about 1 billion euros (US$1.10 billion) in state aid to tide it over until sale proceeds arrive. "In the medium term, the cash outflows caused by the corona (crisis) will in all likelihood result in the financial leeway created by the sale of the elevator business becoming much lower than what was originally anticipated," the board wrote to staff. "We are preparing solutions for this," according to the Apr 30 letter signed by Chief Executive Martina Merz that was seen by Reuters and first reported by German daily Handelsblatt. Thyssenkrupp agreed to sell its elevators division to a consortium of Advent, Cinven and Germany's RAG foundation for 17.2 billion euros in February, with proceeds expected to be received in June. A source said the loan from state development bank KfW would assist the conglomerate, which has suffered from slow demand for auto parts after carmakers shut down production because of the pandemic. The loan expires at the end of September Car makers and suppliers have scrambled to shore up their liquidity as sales in Europe tumbled by more than 50 per cent in March. Thyssenkrupp has been pummelled in recent years by a downturn in the car market, multiple leadership changes and an overly complex group structure. Its shares hit historic lows around 3.20 euros in mid-March. As well as selling its elevator business, Thyssenkrupp's restructuring involves seeking buyers for its Plant Technology division, which builds cement, chemicals and fertiliser plants.
3 May 20:35 • CNA • https://www.channelnewsasia.com/news/business/thyssenkrupp-covid-19-coronavirus-cash-squeeze-elevator-sale-12698244Rating: 3.25
Intel in talks to buy Israel's Moovit public transit app for $1 billion: media
3 May 11:42
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2 articles
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Intel in talks to buy Israel's Moovit public transit app for $1 billion: media
TEL AVIV (Reuters) - Chipmaker Intel Corp is in advanced talks to acquire Israeli public transit app developer Moovit for $1 billion, financial news website Calcalist reported on Sunday. Moovit has raised $133 million from investors including Intel, BMW iVentures and Sequoia Capital. Officials at Intel Israel and Moovit declined to comment on the report. Calcalist reported that people with knowledge of the talks, who spoke on condition of anonymity, said the deal is very close to being signed. Moovit’s free mobile navigation app provides transit information to more than 750 million users in 100 countries. Last month it launched an emergency mobilization service, which was created for transit agencies and enterprises during the COVID-19 pandemic. The technology transforms vehicle fleets into an on-demand service to get essential employees safely to work and has been implemented in a number of cities by large corporations. Intel has made significant investments already in Israel, having acquired autonomous vehicle technology provider Mobileye for $15.3 billion in 2017. In December it bought Israeli artificial intelligence firm Habana Labs for $2 billion.
3 May 11:42 • Reuters • https://www.reuters.com/article/us-moovit-m-a-intel-idUSKBN22F0GSRating: 4.04
Intel in talks to buy Israel's Moovit public transit app for US$1 billion
TEL AVIV: Chipmaker Intel Corp is in advanced talks to acquire Israeli public transit app developer Moovit for US$1 billion, financial news website Calcalist reported on Sunday (May 3). Moovit has raised US$133 million from investors including Intel, BMW iVentures and Sequoia Capital. Officials at Intel Israel and Moovit declined to comment on the report. Calcalist reported that people with knowledge of the talks, who spoke on condition of anonymity, said the deal is very close to being signed. Moovit’s free mobile navigation app provides transit information to more than 750 million users in 100 countries. Last month it launched an emergency mobilisation service, which was created for transit agencies and enterprises during the COVID-19 pandemic. The technology transforms vehicle fleets into an on-demand service to get essential employees safely to work and has been implemented in a number of cities by large corporations. Intel has made significant investments already in Israel, having acquired autonomous vehicle technology provider Mobileye for US$15.3 billion in 2017. In December it bought Israeli artificial intelligence firm Habana Labs for US$2 billion.
3 May 20:01 • CNA • https://www.channelnewsasia.com/news/business/intel-buy-israel-moovit-public-transit-app-covid-19-coronavirus-12698200Rating: 3.25
Wizz Air’s Abu Dhabi joint venture to start flights this year
3 May 12:27
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Wizz Air’s Abu Dhabi joint venture to start flights this year
Dubai: Wizz Air’s planned Abu Dhabi-based joint venture carrier is expected to start flying this year, the European budget airline said in a statement on Sunday. The joint venture with Abu Dhabi state holding company ADQ, announced in December, aims to start flights to Europe, the Indian subcontinent, Middle East and Africa, Wizz Air said. Wizz Air will also start flights from European cities to Abu Dhabi from June, which it said would supplement the launch of the joint venture.
3 May 12:27 • Gulf News • https://gulfnews.com/business/aviation/wizz-airs-abu-dhabi-joint-venture-to-start-flights-this-year-1.71303875Rating: 3.21
Wizz Air's Abu Dhabi joint venture to start flights this year
DUBAI (Reuters) - Wizz Air’s planned Abu Dhabi-based joint venture carrier is expected to start flying this year, the European budget airline said in a statement on Sunday. The joint venture with Abu Dhabi state holding company ADQ, announced in December, aims to start flights to Europe, the Indian subcontinent, Middle East and Africa, Wizz Air said. Wizz Air will also start flights from European cities to Abu Dhabi from June, which it said would supplement the launch of the joint venture.
3 May 00:00 • Egypt Today • http://egypttoday.com/Article/9/85362/Wizz-Air-s-Abu-Dhabi-joint-venture-to-start-flightsRating: 0.67
Bad loans key to Westpac dividend as payout suspended
3 May 22:08
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2 articles
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Bad loans key to Westpac dividend as payout suspended
Westpac chief executive Peter King says the severity of the COVID-19 economic shock and how much damage it inflicts on the bank's loan book will be the key factors influencing dividend policy, after a historic suspension of payments. The lending giant on Monday said cash profit plunged 70 per cent to $993 million because of heavy charges for bad debts and last year's money laundering scandal, and it would not pay a dividend in June due to the uncertain outlook. With the bank setting aside $1.6 billion to cover for bad loans for the crisis, Mr King maintained its "base case" was for a V-shaped recovery that would still result in unemployment of 9 per cent this quarter. While some analysts said they did not expect a dividend this half, Mr King said the bank would be closely watching how tens of thousands of customers given loan deferrals fared in the months ahead. "We will monitor the situation, we will look at our book and the performance of the credit book is really the key piece to look at,” he said. “If the economy comes back on a quicker path, then maybe a decision could be earlier, if it comes back on a slower path then the last time, we would look at it as part of the full-year results.” In an attempt to minimise the economic carnage caused by the pandemic, banks have deployed loan repayment deferrals and emergency loans to hundreds of thousands of customers in recent months. Westpac said 105,000 mortgage accounts worth $39 billion had been put on hold, alongside 31,000 business loans with a value of $8.2 billion. Mr King, who was appointed CEO last month after acting in the role since last year, also flagged potential asset sales as he seeks to narrow the lender's focus to banking. The bank has had re-hired Westpac executive Jason Yetton to oversee a review of businesses including wealth platforms, superannuation and retirement products, investments, general and life insurance, and auto loans. The businesses would be put into a new division and could be sold off, the bank said. Westpac's results were dominated by the impact of COVID-19, which has lenders bracing for a wave of bad loans, which directly eat into profits. The bank's closely watched common equity tier 1 (CET1) capital, an important gauge of strength, was 10.8 per cent of risk-weighted assets, above the level of 10.5 per cent targeted by regulators. But, as previously disclosed by the bank, profits in the half were hit by a $1.6 billion charge for COVID-19 and a $900 million provision for the penalty over the AUSTRAC scandal. As the provisions for bad debts were announced in the weeks leading up to the result, some analysts said the underlying results from Westpac were not as weak as feared. Its stock price closed 2.8 per cent higher, at $15.77. The dividend suspension is the latest move by an Australian bank to defer its dividend decision, following ANZ Bank last week and Bank of Queensland last month. Plato Asset Management managing director Don Hamson said he did not expect Westpac or ANZ to pay dividends in the current half. “That’s going to be a six month hole in investors’ incomes,” he said. Macquarie analyst Victor German also forecast there would most likely not be a dividend paid this half. "Like ANZ, WBC’s CET1 position of 10.8 per cent is at the lower end of peers, and we expect WBC will not pay the dividend unless conditions improve materially," Mr German said. Mr King painted a bleak picture on the outlook, saying the economy would contract sharply this quarter and not bounce back until late in the December quarter. The bank's base case assumed a 15 per cent decline in house prices and a further 5 per cent next year.
3 May 22:08 • The Age • https://www.theage.com.au/business/banking-and-finance/westpac-suspends-dividend-as-profits-plunge-70-per-cent-20200504-p54ph2.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
Bad loans key to Westpac dividend as payout suspended
Westpac chief executive Peter King says the severity of the COVID-19 economic shock and how much damage it inflicts on the bank's loan book will be the key factors influencing dividend policy, after a historic suspension of payments. The lending giant on Monday said cash profit plunged 70 per cent to $993 million because of heavy charges for bad debts and last year's money laundering scandal, and it would not pay a dividend in June due to the uncertain outlook. With the bank setting aside $1.6 billion to cover for bad loans for the crisis, Mr King maintained its "base case" was for a V-shaped recovery that would still result in unemployment of 9 per cent this quarter. While some analysts said they did not expect a dividend this half, Mr King said the bank would be closely watching how tens of thousands of customers given loan deferrals fared in the months ahead. "We will monitor the situation, we will look at our book and the performance of the credit book is really the key piece to look at,” he said. “If the economy comes back on a quicker path, then maybe a decision could be earlier, if it comes back on a slower path then the last time, we would look at it as part of the full-year results.” In an attempt to minimise the economic carnage caused by the pandemic, banks have deployed loan repayment deferrals and emergency loans to hundreds of thousands of customers in recent months. Westpac said 105,000 mortgage accounts worth $39 billion had been put on hold, alongside 31,000 business loans with a value of $8.2 billion. Mr King, who was appointed CEO last month after acting in the role since last year, also flagged potential asset sales as he seeks to narrow the lender's focus to banking. The bank has had re-hired Westpac executive Jason Yetton to oversee a review of businesses including wealth platforms, superannuation and retirement products, investments, general and life insurance, and auto loans. The businesses would be put into a new division and could be sold off, the bank said. Westpac's results were dominated by the impact of COVID-19, which has lenders bracing for a wave of bad loans, which directly eat into profits. The bank's closely watched common equity tier 1 (CET1) capital, an important gauge of strength, was 10.8 per cent of risk-weighted assets, above the level of 10.5 per cent targeted by regulators. But, as previously disclosed by the bank, profits in the half were hit by a $1.6 billion charge for COVID-19 and a $900 million provision for the penalty over the AUSTRAC scandal. As the provisions for bad debts were announced in the weeks leading up to the result, some analysts said the underlying results from Westpac were not as weak as feared. Its stock price closed 2.8 per cent higher, at $15.77. The dividend suspension is the latest move by an Australian bank to defer its dividend decision, following ANZ Bank last week and Bank of Queensland last month. Plato Asset Management managing director Don Hamson said he did not expect Westpac or ANZ to pay dividends in the current half. “That’s going to be a six month hole in investors’ incomes,” he said. Macquarie analyst Victor German also forecast there would most likely not be a dividend paid this half. "Like ANZ, WBC’s CET1 position of 10.8 per cent is at the lower end of peers, and we expect WBC will not pay the dividend unless conditions improve materially," Mr German said. Mr King painted a bleak picture on the outlook, saying the economy would contract sharply this quarter and not bounce back until late in the December quarter. The bank's base case assumed a 15 per cent decline in house prices and a further 5 per cent next year.
3 May 22:08 • Brisbane Times • https://www.brisbanetimes.com.au/business/banking-and-finance/westpac-suspends-dividend-as-profits-plunge-70-per-cent-20200504-p54ph2.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
Wizz Air to launch Dhs245 flights from Abu Dhabi to Europe in June
3 May 15:24
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2 articles
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Wizz Air to launch Dhs245 flights from Abu Dhabi to Europe in June
Wizz Air has announced today (Sunday May 3) that it will launch low-budget flights from Abu Dhabi to multiple European destinations, starting next month.The airline, which is the largest low-cost option in central and Eastern Europe, has introduced five new routes from Abu Dhabi International Airport (AUH) – two of which the airline has said will start operating in June.Travellers in the UAE capital will be able to fly directly to Budapest and Bucharest from June onward, with prices to Budapest starting from around Dhs245 (EUR59.99). Additional routes to Cluj-Napoca, Katowice and Sofia will then be operating directly from Abu Dhabi from September 2020, though this is subject to aviation activities being resumed (following travel restrictions due to COVID-19) in the respective countries.Back in March, Wizz Air Abu Dhabi was established as a local airline in the city and acts as Wizz Air’s first airline established outside of Europe.Commenting on the new routes, Shareef Al Hashmi, Chief Executive Officer of Abu Dhabi Airports said: “Wizz Air’s new routes to Budapest, Bucharest, Cluj-Napoca, Katowice and Sofia highlights our commitment to connecting Abu Dhabi with the most sought after global destinations. These new routes positively reflect the industry’s resilience and its capability to continue pushing forward with bold plans that will stimulate consumer demand and the sustained recovery of the aviation market.”He continued: “As our newest landing partner, we welcome Wizz Air and its first routes with open arms as we get set to facilitate the carrier’s exciting Abu Dhabi expansion plans. Visitors from Hungary, Romania, Poland and Bulgaria can look forward to enjoying our modern terminal facilities with a unique brand of Arabian hospitality before seamlessly heading out to experience the UAE’s thriving capital city, Abu Dhabi.”The first flight to Budapest is scheduled for June 3 with prices starting at around Dhs245 (EUR 59.99). Be the first to get all the latest Dubai news, reviews and deals into your inbox by signing up to our free newsletter, click here to sign up.
3 May 15:24 • Time Out Dubai • https://www.timeoutdubai.com/travel/440217-wizz-air-to-launch-dhs245-flights-from-abu-dhabi-to-europe-in-juneRating: 0.37
Wizz Air to launch first European low cost flights to Abu Dhabi
Abu Dhabi: Wizz Air, the largest low-cost airline in central and eastern Europe, announced on Sunday five new lost cost routes from Abu Dhabi International Airport (AUH). The routes will connect Abu Dhabi with Budapest and Bucharest from June 2020 and with Cluj-Napoca, Katowice and Sofia from September 2020, subject to aviation activities being resumed in the respective countries. It is intended that Wizz Air will focus on establishing routes to markets in which Wizz Air has existing, high growth operations, namely central and eastern and western Europe, as well as the Indian subcontinent, Middle East and Africa, over the long run. “These new routes positively reflect the industry’s resilience and its capability to continue pushing forward with bold plans that will stimulate consumer demand and the sustained recovery of the aviation market,” said Shareef Al Hashmi, chief executive officer of Abu Dhabi Airports. These services will be the first direct routes between Abu Dhabi and Budapest, Bucharest, Cluj-Napoca, Katowice and Sofia adding an almost 220 thousand seat capacity to the airline’s Abu Dhabi network per year. Flights are already on sale and can be booked at wizzair.com from as low as 59.99 Euros. In the case of travel bans, imposed due to the COVID-19 outbreak, impacting the start date of the flights, the passengers with bookings for the affected flights will have a chance to rebook for a later date, get full cash refund or 120% of the value of the booking in WIZZ Credit that can be used for purchase of WIZZ flights and services. “Today’s announcement underpins our long term dedication to bringing low fares combined with a high quality onboard experience to ever more customers in Abu Dhabi,” said Jozsef Varadi, CEO of Wizz Air Holdings. “Wizz Air’s mission feeds into Abu Dhabi’s diversified economic strategy as we continue to stimulate traffic by creating demand to the benefit of growing Abu Dhabi’s touristic and economic diversity,” he added. The announcement supplements the agreement in March formalising the establishment of Wizz Air Abu Dhabi as a local airline based in Abu Dhabi in partnership between ADQ and Wizz Air. The new airline – Abu Dhabi’s second low cost carrier – will start its own operations in the fourth quarter of this year, as the airline moves ahead with its plans without delay. “Wizz Air Abu Dhabi aims to launch operations in the fourth quarter of this calendar year as well as working on scaling up the launch plan, while being in progress of obtaining regulatory approval from the UAE General Civil Aviation Authority,” Wizz Air Holdings said in a statement to Gulf News. “We firmly believe that lowest cost always wins. Our ultra low cost model allows for ultra low fares to stimulate consumer demand,” it added, stating the airline was confident in demand for low cost options once travel restrictions loosen up.
3 May 09:54 • Gulf News • https://gulfnews.com/uae/wizz-air-to-launch-first-european-low-cost-flights-to-abu-dhabi-1.71303660Rating: 3.21
Berkshire Hathaway AGM is still the Warren Buffett show
3 May 17:00
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2 articles
Weight: 1.48
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Berkshire Hathaway AGM is still the Warren Buffett show
Berkshire Hathaway eased Greg Abel, the man widely seen as the likely successor to the so-called Oracle of Omaha, into the spotlight on Saturday. But in the end, it was still the Warren Buffett show. While Mr Abel, a 27-year veteran of the sprawling industrial conglomerate, showed deep operational understanding of its more than 90 businesses, he remained a supporting actor in an annual meeting dominated by Mr Buffett. This year, the coronavirus pandemic meant that Berkshire Hathaway shareholders watched the meeting on Yahoo — instead of making the annual pilgrimage that traditionally attracts more than 40,000 people to Omaha, Nebraska each May. A proper showing of Mr Abel, 57, has been long awaited by investors and analysts seeking insights into how the most visible candidate to replace Mr Buffett may one day lead Berkshire. On Saturday, they were left wanting. The two men sat on stage at an empty arena in downtown Omaha in a familiar set-up, with cans of Coca-Cola and sweets from See's Candies within their reach. But Messrs Buffett and Abel were seated apart, in line with social-distancing guidance, and the man normally at the Oracle of Omaha’s side was missing: vice-chairman Charlie Munger stayed at home this year. Mr Abel ventured only somewhat further afield from the areas he oversees at the company, allowing Mr Buffett to dole out the investment advice that draws loyal devotees to the annual jamboree. And where Mr Buffett was prone to offer anecdotes from his investment career or digress mid-thought, Mr Abel kept his responses brief. When asked about his views on the airline industry, which Mr Buffett had earlier in the evening conceded was a mistake to invest in, Mr Abel said he had “really nothing to add”. It was his first comment of the day and came more than two hours into the meeting. Later, he detailed the adjustments Berkshire’s subsidiaries were making in light of the coronavirus outbreak, including staff reductions. Mr Abel noted that aircraft components manufacturer Precision Castparts, which has been hit by the suspension of 737-Max production by Boeing, would need to tweak its production as demand for aircraft declines. And he confirmed that none of the businesses owned by Berkshire had taken part in any bailout programmes the US government has offered to help stimulate the economy. “Greg spoke to what Greg is good at: business operations,” said Cole Smead, president of Smead Capital Management, which manages $1.6bn. “It’s just not the centralised capital allocation that Warren and Charlie are known for”. The scrutiny of Mr Abel comes after Berkshire suffered its worst year against the benchmark S&P 500 in a decade and recorded a $49.7bn loss in the first quarter after its stock and derivatives portfolio was hammered alongside a broad market sell-off. FT News Briefing podcast9 min listenBanks get ready for bad loans, losses at Berkshire Hathaway, BlackRock’s influence The company has only slowly shifted its investment strategy; last year it disclosed it had purchased shares of Amazon for the first time. Mr Abel stuck closely to the message that Mr Buffett has preached: the financial result of investing in Berkshire or the S&P 500 will be close to the same. On Saturday, Mr Abel offered only a twinge more optimism, saying “we can’t guarantee it, but we can give a best effort to outperform it.” While Mr Buffett has not publicly named his successor, the promotions of Mr Abel and Ajit Jain to be vice-chairmen of Berkshire in 2018 cemented the market view that one of the two men would eventually be named chief executive. Mr Abel is a University of Alberta graduate, who ran Berkshire’s energy business — one of the company’s most important units — from 2008 to 2018 before being promoted. Investors had glimpsed Messers Abel and Jain last year, when they were passed the microphone to answer questions directly from the floor. Mr Abel fielded questions on the group’s energy business and Mr Jain addressed underwriting in the insurance business. Neither gave their views on capitalism, the global economy or Berkshire’s future, which Messrs Buffett and Munger are apt to do. Michael SkapinkerAre all new bosses doomed by Buffett’s ‘organisational inertia’? “Fundamentally, without Warren and Charlie at the helm, I don’t see the culture of Berkshire changing,” Mr Abel said at the meeting on Saturday. “A large part of that is having the business acumen to understand the transaction, the economic prospects, and the ability to act quickly. I really don’t see that changing. There is no one better than Warren and Charlie, but equally we’ve got a talented team in Berkshire.” The company had planned to seat all four men on stage at the CHI Health Center in downtown Omaha when it had sketched out Saturday’s proceedings earlier in the year. But the coronavirus outbreak prompted Berkshire to conduct its annual meeting by video and Messrs Jain and Munger decided against travelling to Nebraska for the event. Mr Abel’s position by Mr Buffett’s side during the videoconference was seen by analysts as an endorsement of his candidacy. And while Mr Buffett said the reason had to do with logistics, his decision not to name Mr Jain when he spoke about the company’s “extraordinarily good minds in terms of allocating capital” further fanned the speculation over Mr Abel’s ascent. “Ajit is one of a kind,” Mr Buffett said. “But his job is not capital allocation. It’s evaluating insurance risk.”
3 May 17:00 • Ft • https://www.ft.com/content/940dedb2-61e5-4039-8551-2246dd8f3105Rating: 2.96
The 3 Best Warren Buffett Stocks to Buy Right Now
Warren Buffett is considered by many to be the best investor of all time. For more than five decades, Buffett has generated incredible returns for shareholders of Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B), the company he helped build into a $440 billion masterpiece of American capitalism and one of the most admired businesses in the world. Berkshire owns a massive portfolio of publicly traded stocks, most of which were selected by Buffett himself. Berkshire's portfolio is closely watched by investors who wisely seek to tag along with the Oracle of Omaha's investment moves. If you'd like to invest alongside this legendary investor, here are three of Berkshire Hathaway's stocks that look particularly appealing today. Buffett and his partner, Berkshire vice chairman Charlie Munger, have long been fans of Costco Wholesale (NASDAQ:COST). Berkshire bought stock in the warehouse chain back in 2000. The shares it held on to are now worth more than $1.3 billion. Costco has been a highly profitable investment for Berkshire -- and it's likely to continue to reward investors in the years ahead. The discount retailer has enjoyed strong sales during the COVID-19 pandemic. Many shoppers have turned to Costco to stock up on food, cleaning supplies, and other household essentials. They're likely to continue to do so for the remainder of the pandemic and thereafter. Costco's membership model gives it a powerful advantage over other retailers. Once people pay a membership fee, they have an economic incentive to maximize their investment by conducting as much of their shopping at Costco as they can. Costco makes it easy to do so, by pricing its goods only slightly above cost, and choosing to make the majority of its profits from membership fees. Low prices entice more people to become members, which leads to higher profits -- it's a powerful formula that has propelled Costco's growth for decades, and that should continue to fuel its expansion for many years to come. Berkshire has also built a sizable stake in e-commerce colossus Amazon.com (NASDAQ:AMZN). Berkshire's initial investment in Amazon was made by either Todd Combs or Ted Weschler, Buffett's hand-picked lieutenants, who oversee sizable portions of the mega-conglomerate's investment portfolio. Buffett has clearly signed off on holding Amazon since then, and he has lamented on several occasions his failure to invest in the market-crushing stock sooner. Nevertheless, Berkshire's stake in Amazon has grown to a value of more than $1.2 billion -- and plenty more gains lie ahead. Amazon has three primary growth drivers -- all of which should help to fuel the company's impressive expansion well into the next decade. The first is its dominant e-commerce business, which is enjoying particularly impressive growth during the coronavirus crisis as more purchases shift online and away from traditional retail channels. The second is Amazon Web Services, the rapidly growing cloud computing platform. And the third is Amazon's booming digital advertising business, which is being driven by its swelling army of third-party merchants eager to get their wares in front of more online shoppers. Together, these powerful growth drivers give Amazon -- and its investors -- many ways to profit in the years ahead. Apple (NASDAQ:AAPL) is Berkshire's largest holding and a favorite of Buffett's. In fact, Buffett once referred to Apple as "probably the best business I know in the world." His affection for it has led Berkshire to amass an enormous $72 billion stake in the technology titan. Buffett appreciates Apple's strong consumer appeal and the loyalty its customers show to its devices, including, of course, the iPhone. He understands the value of Apple's growing services business, which generates a steadily expanding -- and increasingly, recurring -- stream of high margin revenue. Buffett also loves Apple's fortress-like balance sheet, awesome cash-generating abilities, and propensity to gobble up its own shares. If you agree with Buffett and likewise value these aspects of Apple's business, you might want to consider buying some of its stock today. Buffett will likely buy more shares of his favorite holding at some point, as he once said he'd "love to own 100%" of Apple. That might prove to be too large a bite to swallow, even for a behemoth like Berkshire. But buying now gives you a chance to claim your slice of Apple -- before Buffett scoops up even more shares.
3 May 10:00 • The Motley Fool • https://www.fool.com/investing/2020/05/03/the-3-best-warren-buffett-stocks-to-buy-right-now.aspxRating: 0.30
Five things to watch for in the Canadian business world in the coming week
3 May 14:19
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Five things to watch for in the Canadian business world in the coming week
TORONTO -- Five things to watch for in the Canadian business world in the coming week: AIR CANADA EARNINGS Air Canada will hold a conference call to discuss its first-quarter results on Monday. The airline announced on April 8 that it planned to rehire 16,500 laid-off workers via Ottawa's emergency wage subsidy, though the vast majority would remain at home amid the collapse of global travel triggered by the COVID-19 pandemic. LATEST FROM THE OILPATCH Thursday is a big earnings day in the oilpatch, with results expected from Enbridge, Canadian Natural Resources, Inter Pipeline, Pembina Pipeline and more. Results last week from Husky Energy, Cenovus, Imperial Oil and Precision Drilling portrayed an industry in crisis amid plummeting demand and sinking oil prices. SHOPIFY UPDATE Shopify Inc. will release its first-quarter results and hold a conference call with financial analysts on Wednesday. The Ottawa-based technology company recently began offering interest-free cash advances to help companies that use its e-commerce products cope with the impacts of COVID-19. The initiative is meant to provide fast relief to cash-strapped businesses without having to take on debt. BCE EARNINGS BCE Inc. will release its results Thursday. Rival Rogers Communications recently revealed that it felt the first financial bite from the COVID-19 pandemic during the tail end of its first quarter and senior executives said they expect conditions will get worse in months to come. APRIL JOB NUMBERS Statistics Canada will release the findings of its labour force survey for April on Friday. More than one million Canadians lost their jobs at the onset of the COVID-19 crisis in March, pushing the national unemployment rate up 2.2 percentage points to 7.8 per cent, the highest it has been since October 2010. Economists are expecting the April numbers to be even worse, with up to three million jobs lost. This report by The Canadian Press was first published May 3, 2020.
3 May 14:19 • CTVNews • https://www.ctvnews.ca/business/five-things-to-watch-for-in-the-canadian-business-world-in-the-coming-week-1.4922731Rating: 2.87
Five things to watch for in the Canadian business world in the coming week
TORONTO — Five things to watch for in the Canadian business world in the coming week: Air Canada earnings Air Canada will hold a conference call to discuss its first-quarter results on Monday. The airline announced on April 8 that it planned to rehire 16,500 laid-off workers via Ottawa's emergency wage subsidy, though the vast majority would remain at home amid the collapse of global travel triggered by the COVID-19 pandemic. Latest from the oilpatch Thursday is a big earnings day in the oilpatch, with results expected from Enbridge, Canadian Natural Resources, Inter Pipeline, Pembina Pipeline and more. Results last week from Husky Energy, Cenovus, Imperial Oil and Precision Drilling portrayed an industry in crisis amid plummeting demand and sinking oil prices. Shopify update Shopify Inc. will release its first-quarter results and hold a conference call with financial analysts on Wednesday. The Ottawa-based technology company recently began offering interest-free cash advances to help companies that use its e-commerce products cope with the impacts of COVID-19. The initiative is meant to provide fast relief to cash-strapped businesses without having to take on debt. BCE earnings BCE Inc. will release its results Thursday. Rival Rogers Communications recently revealed that it felt the first financial bite from the COVID-19 pandemic during the tail end of its first quarter and senior executives said they expect conditions will get worse in months to come. April jobs numbers Statistics Canada will release the findings of its labour force survey for April on Friday. More than one million Canadians lost their jobs at the onset of the COVID-19 crisis in March, pushing the national unemployment rate up 2.2 percentage points to 7.8 per cent, the highest it has been since October 2010. Economists are expecting the April numbers to be even worse, with up to three million jobs lost. This report by The Canadian Press was first published May 3, 2020. The Canadian Press
3 May 14:00 • KitchenerToday.com • https://www.kitchenertoday.com/national-business/five-things-to-watch-for-in-the-canadian-business-world-in-the-coming-week-2320484Rating: 0.30
What happens if a coronavirus vaccine is never developed? It has happened before
3 May 12:30
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What happens if a coronavirus vaccine is never developed? It has happened before
As countries lie frozen in lockdown and billions of people lose their livelihoods, public figures are teasing a breakthrough that would mark the end of the crippling coronavirus pandemic: a vaccine. But there is another, worst-case possibility: that no vaccine is ever developed. In this outcome, the public's hopes are repeatedly raised and then dashed, as various proposed solutions fall before the final hurdle. Instead of wiping out COVID-19, societies may instead learn to live with it. Cities would slowly open and some freedoms will be returned, but on a short leash, if experts' recommendations are followed.Testing and physical tracing will become part of our lives in the short term, but in many countries, an abrupt instruction to self-isolate could come at any time. Treatments may be developed -- but outbreaks of the disease could still occur each year, and the global death toll would continue to tick upwards. It's a path rarely publicly countenanced by politicians, who are speaking optimistically about human trials already underway to find a vaccine. But the possibility is taken very seriously by many experts -- because it's happened before. Several times. "There are some viruses that we still do not have vaccines against," says Dr. David Nabarro, a professor of global health at Imperial College London, who also serves as a special envoy to the World Health Organization on COVID-19. "We can't make an absolute assumption that a vaccine will appear at all, or if it does appear, whether it will pass all the tests of efficacy and safety. "It's absolutely essential that all societies everywhere get themselves into a position where they are able to defend against the coronavirus as a constant threat, and to be able to go about social life and economic activity with the virus in our midst," Nabarro tells CNN. Most experts remain confident that a COVID-19 vaccine will eventually be developed; in part because, unlike previous diseases like HIV and malaria, the coronavirus does not mutate rapidly. Many, including National Institute of Allergy and Infectious Diseases director Dr. Anthony Fauci, suggest it could happen in a year to 18 months. Other figures, like England's Chief Medical Officer Chris Whitty, have veered towards the more distant end of the spectrum, suggesting that a year may be too soon. But even if a vaccine is developed, bringing it to fruition in any of those timeframes would be a feat never achieved before. "We've never accelerated a vaccine in a year to 18 months," Dr. Peter Hotez, dean of the National School of Tropical Medicine at Baylor College of Medicine in Houston, tells CNN. "It doesn't mean it's impossible, but it will be quite a heroic achievement. "We need plan A, and a plan B," he says. In 1984, the US Secretary of Health and Human Services Margaret Heckler announced at a press conference in Washington, DC, that scientists had successfully identified the virus that later became known as HIV -- and predicted that a preventative vaccine would be ready for testing in two years. Nearly four decades and 32 million deaths later, the world is still waiting for an HIV vaccine. Instead of a breakthrough, Heckler's claim was followed by the loss of much of a generation of gay men and the painful shunning of their community in Western countries. For many years, a positive diagnosis was not only a death sentence; it ensured a person would spend their final months abandoned by their communities, while doctors debated in medical journals whether HIV patients were even worth saving. The search didn't end in the 1980s. In 1997, President Bill Clinton challenged the US to come up with a vaccine within a decade. Fourteen years ago, scientists said we were still about 10 years away. The difficulties in finding a vaccine began with the very nature of HIV/AIDS itself. "Influenza is able to change itself from one year to the next so the natural infection or immunization the previous year doesn't infect you the following year. HIV does that during a single infection," explains Paul Offit, a pediatrician and infectious disease specialist who co-invented the rotavirus vaccine. "It continues to mutate in you, so it's like you're infected with a thousand different HIV strands," Offit tells CNN. "(And) while it is mutating, it's also crippling your immune system." HIV poses very unique difficulties and Covid-19 does not possess its level of elusiveness, making experts generally more optimistic about finding a vaccine. But there have been other diseases that have confounded both scientists and the human body. An effective vaccine for dengue fever, which infects as many as 400,000 people a year according to the WHO, has eluded doctors for decades. In 2017, a large-scale effort to find one was suspended after it was found to worsen the symptoms of the disease. Similarly, it's been very difficult to develop vaccines for the common rhinoviruses and adenoviruses -- which, like coronaviruses, can cause cold symptoms. There's just one vaccine to prevent two strains of adenovirus, and it's not commercially available. "You have high hopes, and then your hopes are dashed," says Nabarro, describing the slow and painful process of developing a vaccine. "We're dealing with biological systems, we're not dealing with mechanical systems. It really depends so much on how the body reacts." Human trials are already underway at Oxford University in England for a coronavirus vaccine made from a chimpanzee virus, and in the US for a different vaccine, produced by Moderna. However, it is the testing process -- not the development -- that holds up and often scuppers the production of vaccines, adds Hotez, who worked on a vaccine to protect against SARS. "The hard part is showing you can prove that it works and it's safe." If the same fate befalls a COVID-19 vaccine, the virus could remain with us for many years. But the medical response to HIV-AIDS still provides a framework for living with a disease we can't stamp out. "In HIV, we've been able to make that a chronic disease with antivirals. We've done what we've always hoped to do with cancer," Offit says. "It's not the death sentence it was in the 1980s." The groundbreaking development of a daily preventative pill -- pre-exposure prophylaxis, or PrEP -- has since led to hundreds of thousands of people at risk of contracting HIV being protected from the disease. A number of treatments are likewise being tested for Covid-19, as scientists hunt for a Plan B in parallel to the ongoing vaccine trials, but all of those trials are in very early stages. Scientists are looking at experimental anti-Ebola drug remdesivir, while blood plasma treatments are also being explored. Hydroxychloroquine, touted as a potential "game changer" by U.S. President Donald Trump, has so found been found not to work on very sick patients. "The drugs they've chosen are the best candidates," says Keith Neal, Emeritus Professor in the Epidemiology of Infectious Diseases at the University of Nottingham. The problem, he says, has been the "piecemeal approach" to testing them. "We have to do randomized controlled trials. It's ridiculous that only recently have we managed to get that off the ground," Neal, who reviews such tests for inclusion in medical journals, tells CNN. "The papers that I'm getting to look at -- I'm just rejecting them on the grounds that they're not properly done." Now those fuller trials are off the ground, and if one of those drugs works for COVID-19 the signs should emerge "within weeks," says Neal. The first may already have arrived; the U.S. Food and Drug Administration told CNN it is in talks to make remdesivir available to patients after positive signs it could speed up recovery from the coronavirus. The knock-on effects of a successful treatment would be felt widely; if a drug can decrease a patient's average time spent in ICU even by by a few days, it would free up hospital capacity and could therefore greatly increase the willingness of governments to open up society. But how effective a treatment is would depend on which one works -- remdesivir is not in high supply internationally and scaling up its production would cause problems. And crucially, any treatment won't prevent infections occurring in society -- meaning the coronavirus would be easier to manage and the pandemic would subside, but the disease could be with us many years into the future. If a vaccine can't be produced, life will not remain as it is now. It just might not go back to normal quickly. "The lockdown is not sustainable economically, and possibly not politically," says Neal. "So we need other things to control it." That means that, as countries start to creep out of their paralyses, experts would push governments to implement an awkward new way of living and interacting to buy the world time in the months, years or decades until Covid-19 can be eliminated by a vaccine. "It is absolutely essential to work on being COVID-ready," Nabarro says. He calls for a new "social contract" in which citizens in every country, while starting to go about their normal lives, take personal responsibility to self-isolate if they show symptoms or come into contact with a potential COVID-19 case. It means the culture of shrugging off a cough or light cold symptoms and trudging into work shouldbe over. Experts also predict a permanent change in attitudes towards remote working, with working from home, at least on some days, becoming a standard way of life for white collar employees. Companies would be expected to shift their rotas so that offices are never full unnecessarily. "It (must) become a way of behaving that we all ascribe to personal responsibility ... treating those who are isolated as heroes rather than pariahs," says Nabarro. "A collective pact for survival and well-being in the face of the threat of the virus. "It's going to be difficult to do in poorer nations," he adds, so finding ways to support developing countries will become "particularly politically tricky, but also very important." He cites tightly packed refugee and migrant settlements as areas of especially high concern. In the short term, Nabarro says a vast program of testing and contact tracing would need to be implemented to allow life to function alongside COVID-19 -- one which dwarfs any such program ever established to fight an outbreak, and which remains some time away in major countries like the U.S. and the U.K. "Absolutely critical is going to be having a public health system in place that includes contact tracing, diagnosis in the workplace, monitoring for syndromic surveillance, early communication on whether we have to re-implement social distancing," adds Hotez. "It's doable, but it's complicated and we really haven't done it before." Those systems could allow for some social interactions to return. "If there's minimal transmission, it may indeed be possible to open things up for sporting events" and other large gatherings, says Hotez -- but such a move would not be permanent and would continually be assessed by governments and public health bodies. That means the the Premier League, NFL and other mass events could go ahead with their schedules as long as athletes are getting regularly tested, and welcome in fans for weeks at a time -- perhaps separated within the stands -- before quickly shutting stadiums if the threat rises. "Bars and pubs are probably last on the list as well, because they are overcrowded," suggests Neal. "They could reopen as restaurants, with social distancing." Some European countries have signaled they will start allowing restaurants to serve customers at vastly reduced capacity. Restrictions are most likely to come back over the winter, with Hotez suggesting that COVID-19 peaks could occur every winter until a vaccine is introduced. And lockdowns, many of which are in the process of gradually being lifted, could return at any moment. "From time to time there will be outbreaks, movement will be restricted -- and that may apply to parts of a country, or it may even apply to a whole country," Nabarro says. The more time passes, the more imposing becomes the hotly debated prospectof herd immunity -- reached when the majority of a given population, around 70% to 90%, becomes immune to an infectious disease. "That does to some extent limit spread," Offit says -- "although population immunity caused by natural infection is not the best way to provide population immunity. The best way is with a vaccine." Measles is the "perfect example," says Offit -- before vaccines became widespread, "every year 2 to 3 million people would get measles, and that would be true here too." In other words, the amount of death and suffering from COVID-19 would be vast even if a large portion of the population is not susceptible. All of these predictions are tempered by a general belief that a vaccine will, eventually, be developed. "I do think there'll be vaccine -- there's plenty of money, there's plenty of interest and the target is clear," Offit says. But if previous outbreaks have proven anything, it's that hunts for vaccines are unpredictable. "I don't think any vaccine has been developed quickly," Offit cautions. "I'd be really amazed if we had something in 18 months."
3 May 12:30 • CTVNews • https://www.ctvnews.ca/health/what-happens-if-a-coronavirus-vaccine-is-never-developed-it-has-happened-before-1.4922689Rating: 2.87
Time to come out from padmavyuha
Prolonged lockdown without adequate stimulus package will simply push economy into ICU; The poor will suffer the most The novel coronavirus shows us how fragile our world is financially or otherwise. Going by the experience in the past few months, it is no exaggeration to say that the world will simply collapse and stare at a doomsday scenario if the working population takes a break for a few months. You may have understood what I am saying. The deadly coronavirus that triggered Covid-19 pandemic originated in China and is spreading across the world faster. With lack of a proper vaccine and treatment against the virus, the lockdown has proved to be only effective way to checkmate the contagion. But strangely, a month of lockdown seems to be more than enough for most of the countries to fall prey to another age-old contagion: 'economic virus'. It's pathetic to know that this 'virus' is now causing more damage to the world than the Chinese-born corona. The ongoing massive lay-offs and salary cuts around the world go on to prove this. Mega global companies and most powerful countries are not in a position to pay their staff salaries even for a month of lockdown! That shows how fragile our economic system is. So, it's no strange that people in US are taking to streets to protest against the lockdown, knowing very well that it's not safe to work outside at a time when Covid-19 deaths and cases are skyrocketing by the day in their country. The citizens of the world's biggest economy may have realised fast that they can't survive financially if they stay at home for long. Therefore, there is an open disobedience against the lockdown. This is despite the fact that the US government has announced a massive economic stimulus package of over $2 trillion, which is a bit less than India's total economy. Compare that with India and its citizens. Indians largely obeyed orders of the governments at the Centre and in the respective States and stayed put at homes. Of course, there have been violations. More so in the initial days. But it's not easy to keep 1.3 billion people indoors round the clock. But over 80 per cent of people remained indoors at any given point of time. As this is a health emergency, 100 per cent lockdown is desirable. But that's not practically possible as people need essential goods to survive and other emergencies also crop up. That way, Indian people did their duty commendably. But have the governments done their duty? They did reasonably well in treating the infected people. To some extent, the country's healthcare system has also been geared up to tackle the Covid-19 pandemic. But India lags behind in a key parameter. That's the abysmally-low testing. As of now, India ranks 16th place in the number of known Covid cases. That's a good sign for the world's second largest populated country. But when it comes to testing, India is at 143rd place among 212 countries and territories that worldometor.info is tracking for coronavirus infections. So far, it has tested just 708 people for every one million population. The ratio stands at 20,241 - 31 times of India - in the US, the world's most-affected country. Even Pakistan fares better with 878 tests per million. As per estimates, India is losing close to Rs 40,000 crore daily due to the lockdown which began on March 25 and now extended up to May 17. Though lockdown norms were eased in some parts of the country from April 20 and more easing will come in from Monday (May 4), the economy will not fire at full throttle if public transport is not allowed with proper safety steps - at least within the States. The country's economy lost close to Rs 16 lakh crore during the 40-days of lockdown till date. This bill will balloon by the time the lockdown 3.0 ends on May 17. The governments should have used this economically-expensive lockdown period to go for extensive testing and reach the bottom of the pandemic impact. With that not happening, the country may face its biggest challenge by far from corona when it fully opens its economy. It may have to go for another round of lockdown if Covid-19 explodes post the easing. That will be a double whammy for the economy. However, testing is not the only key parameter in which India lags behind. The Indian government had not announced any major economic revival package thus far. RBI came out with two rounds of monetary easing measures. But these measures mostly act like a balm that provides some relief, but not any cure to the battered economy. Finance Minister Nirmala Sitharaman announced a relief package of Rs 1.75 lakh crore in March. However, that package which accounts for just 0.9 per cent of GDP mostly targeted at the disadvantaged sections. Further, nearly Rs 1 lakh crore of that amount had already been budgeted for. So, that stimulus is simply not enough. The Indian economy which may lose nearly Rs 20 lakh crore or more by the time the country scores its victory over the invisible enemy will definitely need much bigger cure - at least five per cent of GDP as additional stimulus package. That's also far less than what other countries are spending on economic revival. Further, it should allocate lion share of the stimulus to MSME sector which employs more. As the central government is keen on spending more than $1 trillion on infrastructure over next five years, it should accelerate these plans and spend more on infrastructure over next one year to kick-start the economy. It can also dip into enormous wealth lying idle with India's richest temples and use the funds to build the country's modern temples of infrastructure. The government could repay the amount on annuity basis or the ownership of these projects can be given to the temples if there is any chance of toll collection. Further, governments should repay all the pending staff salaries at one go post the lockdown. They should also see to it that private sector also pays salaries. More liquidity in the hands of people will lead to revival in consumption cycle which will in turn accelerate the economic revival. The State governments should also be asked to chip in with their own steps to revive the industrial sector. Interestingly, the Andhra Pradesh government seems to be proactive when it comes battling Covid-19. Despite being haunted by a deficit budget, the Jagan Mohan Reddy-led government there expanded testing. Currently, AP stands first among all States in the number of Covid-19 tests per million. It also announced an encouraging revival package for MSMEs including the release of pending industrial incentives totaling Rs 904 crore. The State will also create a Rs 200-crore fund for providing working capital support to MSMEs. Such proactive steps are need of the hour. With the imposition of national lockdown to contain Covid-19, the Centre pushed the country into a 'padmavyuha', which has yielded good results so far. But the real test lies in exiting the padmavyuha with minimum collateral damage to the country, its economy and its people. Otherwise, prolonged lockdown without adequate stimulus package will simply push economy into intensive care unit (ICU). If that happens, the poor will suffer the most. So, it's time to come out of padmavyuha if the country can't afford a massive stimulus package. Email ArticlePrint Article Next Story
2 May 19:21 • The Hans India • https://www.thehansindia.com/business/time-to-come-out-from-padmavyuha-620431Rating: 1.10
Pick n Pay extends shopping times for pensioners and Sassa grant beneficiaries
3 May 17:53
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Average US: 2.2
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Average GB: 0.0
Weighted average GB: 0.0
Average IN: 0.6
Weighted average IN: 0.6386003473316665
Pick n Pay extends shopping times for pensioners and Sassa grant beneficiaries
An hour of shopping dedicated to pensioners will be moved this week to accommodate Sassa payouts, retailer Pick n Pay has announced. The pensioners' shopping hour – a dedicated time for elderly customers to have exclusive use of the store to shop for their groceries and essentials – will move from Wednesdays, and will now take place on Mondays and Tuesdays. Stores will open an hour earlier - between 07:00 and 08:00 - exclusively for customers over the age of 65 years, and for pension and Sassa disabled grant beneficiaries, before opening to all customers at 08:00. From Wednesday to Friday, all stores will open early at 07:00 to help accommodate Sassa social grants. The weekly pensioners' shopping hour will resume on Wednesdays from 13 May. The move comes as "many shoppers prepare to do their grocery shopping", and would ensure safe shopping and that shelves remain stocked, explained the retailer's marketing executive, John Bradshaw. "We are opening early to help our customers get their grants in a less crowded environment. All stores will be well stocked and prepared for the week so that customers can get the groceries they want during one shop," he said. Staff will assist customers to collect their grants and customers are reminded that they can use their Sassa card to pay for grocery items directly. All stores have safety measures in place, including physical distancing measures, limiting the number of customers in store, hand sanitiser, perspex screens at till points, and staff wearing cloth face masks.
3 May 17:53 • News24 • https://www.news24.com/SouthAfrica/News/pick-n-pay-extends-shopping-times-for-pensioners-and-sassa-grant-beneficiaries-20200503Rating: 2.83
Pick n Pay extends shopping times for pensioners and Sassa grant beneficiaries
Pick n Pay. File photo. An hour of shopping dedicated to pensioners will be moved this week to accommodate Sassa payouts, retailer Pick n Pay has announced. The pensioners’ shopping hour – a dedicated time for elderly customers to have exclusive use of the store to shop for their groceries and essentials – will move from Wednesdays, and will now take place on Mondays and Tuesdays. Stores will open an hour earlier – between 07:00 and 08:00 – exclusively for customers over the age of 65 years, and for pension and Sassa disabled grant beneficiaries, before opening to all customers at 08:00. From Wednesday to Friday, all stores will open early at 07:00 to help accommodate Sassa social grants. The weekly pensioners’ shopping hour will resume on Wednesdays from 13 May. The move comes as “many shoppers prepare to do their grocery shopping”, and would ensure safe shopping and that shelves remain stocked, explained the retailer’s marketing executive, John Bradshaw. “We are opening early to help our customers get their grants in a less crowded environment. All stores will be well stocked and prepared for the week so that customers can get the groceries they want during one shop,” he said. Staff will assist customers to collect their grants and customers are reminded that they can use their Sassa card to pay for grocery items directly. All stores have safety measures in place, including physical distancing measures, limiting the number of customers in-store, hand sanitiser, perspex screens at till points, and staff wearing cloth face masks.
3 May 16:05 • The Citizen • https://citizen.co.za/news/south-africa/2278172/pick-n-pay-extends-shopping-times-for-pensioners-and-sassa-grant-beneficiaries/Rating: 1.26
Every day ke payday for Daily Lotto players
3 May 21:29
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2 articles
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Every day ke payday for Daily Lotto players
There were no jackpot winners in Sunday's Daily Lotto draw. The next jackpot is estimated at R55 000 Here are the results for the draw: Here are the results fro Friday's draw: In case you missed it, here are the winning Lotto and Lotto Plus numbers from the Saturday, 2 May draw: Lotto: 1, 11, 14, 19, 31, 43 Bonus Ball: 7 Lotto Plus 1: 15, 24, 27, 34, 45, 51 Bonus Ball: 17 Lotto Plus 2: 7, 10, 30, 36, 41, 43 Bonus Ball: 52 Download the News24 app via the Play or iTunes App stores and get a free alert moments after each Lotto draw with the winning numbers.
3 May 21:29 • News24 • https://www.news24.com/Lottery/every-day-ke-payday-for-daily-lotto-players-20200503-10Rating: 2.83
Lotto and Lotto Plus results, Saturday, 2 May, 2020
Lotto balls. Picture: Stock The winning numbers from the live Lotto draw on Saturday, 2 May, can be found below. Draw 2018. Lotto winning numbers: 1, 11, 14, 19, 31, 43. Bonus: 7. Lotto Plus 1 winning numbers: 15, 24, 27, 34, 45, 51. Bonus: 17. Lotto Plus 2 winning numbers: 7, 10, 30, 36, 41, 43. Bonus: 52. The Lotto jackpot was estimated at 11.6 million. The Lotto Plus 1 jackpot was estimated at R4.2 million. The Lotto Plus 2 jackpot was estimated at R18 million. For more details, please visit the National Lottery’s website. While great care has been taken to ensure accuracy, The Citizen can take no responsibility for any error in the results.
2 May 19:00 • The Citizen • https://citizen.co.za/news/south-africa/lotto/2277983/lotto-and-lotto-plus-results-saturday-2-may-2020/Rating: 1.26
Mahindra Holidays to first reopen resorts near metro cities post lockdown
3 May 10:31
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2 articles
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Weighted average IN: 91.40721715002927
Mahindra Holidays to first reopen resorts near metro cities post lockdown
Mahindra Holidays & Resorts India Ltd (MHRIL) on Sunday said it plans to first reopen resorts that are at drivable distance from the metro cities once the coronavirus lockdown is lifted. The Mahindra Group firm has currently suspended operations at its resorts in compliance with government directives. “At Club Mahindra we have over 2,55,000 member families and once travel restrictions are relaxed and state borders open up, and people feel comfortable enough to travel again, we expect our members and their families to start travelling to our resorts in their own vehicles, since we are at drivable distances from major cities,” MHRIL MD and CEO Kavinder Singh told PTI. The company is gearing up for this by putting in place all the necessary safety related standard operating procedures (SOPs). It will ensure the highest levels of hygiene standards (hospital grade) to achieve a quick return to normalcy, he added. “We will first open resorts that are at a drivable distance from the major metro cities,” Singh said. He, however, did not share the number of resorts that would be opened in the first phase. The company has over 100 resorts in India and abroad. Asked about the steps the company is taking to ensure the health and safety of guests and employees at the resorts, Singh said: “In view of the current situation we are implementing various SOPs, which will cover hygiene and disinfection norms at all the touch-points in our resorts.” The company will ensure social distancing norms for members at its resorts. The resorts are much bigger than traditional hotels, have open spaces and are spread out and this helps in facilitating social distancing norms, he added. “The entire guest experience right from check-in to resort experiences, including F&B, will be contactless. Our best-in-class experiences will help keep our members and their families engaged, while maintaining the highest safety and hygiene standards,” Singh said. Club Mahindra is partnering with experts in the healthcare and technology spaces to implement these enhanced safety procedures and contactless services, he added. Asked about the impact of the pandemic and subsequent lockdown on the hospitality industry, Singh said: “COVID-19 is a true Black Swan event that presents an unprecedented challenge to the hospitality and aviation industries in India and globally. It has deeply impacted the hospitality industry with occupancies declining sharply, as India went into lockdown from March 25.” According to recent estimates, the overall revenue of the Indian hotel industry will decline by about Rs 90,000 crore in 2020, an erosion of 57 per cent compared to last year. More importantly, it is estimated that there will be around 38 million job losses, he said. On the way forward for the industry, Singh said the sector expects a slow recovery as there will be many strict travel restrictions, even as the lockdown is lifted. Domestic travel will begin much faster than international travel, but both will take some time to fully recover. He further said the industry is expecting support from the government for its survival. “Most of the hospitality players have debt on their books and the industry is hoping for a debt recast and for the moratorium to be extended to 12 months. This would certainly provide much-needed relief,” Singh said. The industry is also hoping for waiver or deferment of statutory payments and minimum electricity demand charges as this will help it with the working capital situation, he added. “The industry also employs millions of people, so it would be helpful if there is some level of support for them, such as a direct benefit package for the staff who keep the industry running,” Singh said. As a step to revive the industry, the annual leave travel allowance (LTA) should be made tax-free, every year, so that people have more money to spend on travel once things get better, he added.
3 May 10:31 • BusinessLine • https://www.thehindubusinessline.com/companies/mahindra-holidays-to-first-reopen-resorts-near-metro-cities-post-lockdown/article31494229.eceRating: 1.98
After lockdown, Mahindra Holidays plans to first reopen resorts near metro cities
The company is gearing up for this by putting in place all the necessary safety related standard operating procedures (SOPs). It will ensure the highest levels of hygiene standards (hospital grade) to achieve a quick return to normalcy Mahindra Holidays & Resorts India Ltd (MHRIL) on Sunday said it plans to first reopen resorts that are at drivable distance from the metro cities once the coronavirus lockdown is lifted. The Mahindra Group firm has currently suspended operations at its resorts in compliance with the government directives. "At Club Mahindra we have over 255,000 member families and once travel restrictions are relaxed and state borders open up, and people feel comfortable enough to travel again, we expect our members and their families to start travelling to our resorts in their own vehicles, since we are at drivable distances from major cities," MHRIL MD and CEO Kavinder Singh told PTI. The company is gearing up for this by putting in place all the necessary safety related standard operating procedures (SOPs). It will ensure the highest levels of hygiene standards (hospital grade) to achieve a quick return to normalcy, he added. "We will first open resorts that are at a drivable distance from the major metro cities," Singh said. He, however did not share the number of resorts that would be opened in the first phase. The company has over 100 resorts in India and abroad. Asked about the steps the company is taking to ensure the health and safety of guests and employees at the resorts, Singh said: "In view of the current situation we are implementing various SOPs which will cover hygiene and disinfection norms at all the touch points in our resorts." The company will ensure social distancing norms for members at its resorts. The resorts are much bigger than traditional hotels, have open spaces and are spread out and this helps in facilitating social distancing norms, he added. "The entire guest experience right from check in to resort experiences including F&B will be contactless. Our best-in-class experiences will help keep our members and their families engaged, while maintaining the highest safety and hygiene standards," Singh said. Club Mahindra is partnering with experts in the healthcare and technology spaces for implementing these enhanced safety procedures and contactless services, he added. Asked about the impact of the pandemic and subsequent lockdown on the hospitality industry, Singh said: "COVID-19 is a true Black Swan event that presents an unprecedented challenge to the hospitality and aviation industries in India and globally. It has deeply impacted the hospitality industry with occupancies declining sharply, as India went into lockdown from March 25." According to recent estimates, the overall revenue of the Indian hotel industry will decline by about Rs 90,000 crore in 2020, an erosion of 57 per cent compared to last year. More importantly, it is estimated that there will be around 38 million job losses, he said. On the way forward for the industry, Singh said the sector expects a slow recovery as there will be many strict travel restrictions even as the lockdown begins to get lifted. Domestic travel will begin much faster than international travel, but both will take some time to fully recover. He further said the industry is expecting support from the government for its survival. "Most of the hospitality players have debt on their books and industry is hoping for a debt recast and for the moratorium to be extended to 12 months. This would certainly provide much-needed relief," Singh said. The industry is also hoping for waiver or deferment of statutory payments and minimum electricity demand charges as this will help it with the working capital situation, he added. "The industry also employs millions of people, so it would be helpful if there is some level of support for them, such as a direct benefit package for the staff who keep the industry running," Singh said. For the revival of the industry, the annual leave travel allowance (LTA) should be made tax-free, every year, so that people have more money to spend on travel once things get better, he added. Also read: Coronavirus India Live Updates: Lockdown 3.0! CRPF Delhi HQ sealed after staff tests positive; cases-39,980 Also read: Coronavirus lockdown: 78% people want ecommerce sites to sell non-essential items too, shows survey
3 May 09:24 • Business Today • https://www.businesstoday.in/current/corporate/after-lockdown-mahindra-holidays-plans-to-first-reopen-resorts-near-metro-cities/story/402738.htmlRating: 2.10
Afterpay dismisses security fears after WeChat owner builds $300m stake
3 May 13:45
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2 articles
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Best date: 3 May 13:45
Average US: 3.1999999999999997
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Weighted average GB: 0.0
Average IN: 1.6
Weighted average IN: 1.5399208083380023
Afterpay dismisses security fears after WeChat owner builds $300m stake
Afterpay chief executive Anthony Eisen has dismissed suggestions the emergence of the $800 billion owner of Chinese messaging app WeChat on its shareholder register could expose the buy now pay later platform to security risks. The Australian payments juggernaut disclosed late on Friday that one of China's biggest companies, Tencent, had picked up a 5 per cent stake in the company for $300 million. Tencent owns the popular Chinese messaging app WeChat which has reportedly been banned by the Australian Defence Department due to security concerns. But Mr Eisen said Afterpay was not concerned about security risks and more excited about the collaboration opportunities its new shareholder might bring to the table. "There’s no board representation. It’s purely a financial investment," said Mr Eisen in an interview. "So we’re not contemplating that relationship to be of a different form to that. And in terms of opportunities, as they arise, we’ll approach it in what you would typically expect to be the right governance formats of any publicly listed company," he said. Tencent's investment into Afterpay comes after it last month launched a buy now, pay later platform of its own on WeChat, which has more than 1 billion monthly active users. But Mr Eisen said Afterpay would maintain its focus as a consumer finance provider. “We’re maintaining our consumer and retail focus it’s not about deviating from that for us,” he said. Afterpay co-founder Nick Molnar said Afterpay could learn from Tencent's global scale. “I think there's a combination of, 'how do we learn from people who have scaled globally and understand deeply the payments infrastructure at a global level'. And then just also what potential collaboration opportunities to give the most value to our retail partners,” said Mr Molnar. Tencent spoke of developing a long term partnership with Afterpay. "Afterpay's approach stands out to us not just for its attractive business model characteristics, but also because its service aligns so well with consumer trends we see developing globally in terms of Afterpay's customer centric, interest free approach as well as its integrated retail presence and ability to add significant value for its merchant base," Tencent's chief strategy officer James Mitchell said in a statement to the ASX released on Friday. "We look forward to a deep and long-term business partnership between Tencent and Afterpay," he added. Tencent's substantial shareholder notice revealed that it started acquiring Afterpay shares in late March. This was just after Afterpay shares hit a multi year low of $8.90 as market concerns grew about the company's ability to deal with its first ever economic downturn and potential bad debts if its customers were not able to pay their bills. The fintech told investors last month that it could insulate its business model from high-risk clients and avoid any uptick in bad debts from cash-strapped customers. Tencent paid just over $300 million for a five per cent stake in the buy now pay later provider. The stake is now worth $390 million. Afterpay shares closed at $29.16 on Friday. The stock is flat so far in 2020, compared to a 22 per cent fall for the benchmark S&P/ASX 200 Index.
3 May 13:45 • The Age • https://www.theage.com.au/business/companies/afterpay-dismisses-security-fears-after-wechat-owner-builds-300m-stake-20200501-p54p6a.htmlRating: 2.20
Afterpay dismisses security fears after WeChat owner builds $300m stake
Afterpay chief executive Anthony Eisen has dismissed suggestions the emergence of the $800 billion owner of Chinese messaging app WeChat on its shareholder register could expose the buy now pay later platform to security risks. The Australian payments juggernaut disclosed late on Friday that one of China's biggest companies, Tencent, had picked up a 5 per cent stake in the company for $300 million. Tencent owns the popular Chinese messaging app WeChat which has reportedly been banned by the Australian Defence Department due to security concerns. But Mr Eisen said Afterpay was not concerned about security risks and more excited about the collaboration opportunities its new shareholder might bring to the table. "There’s no inside position, if I can put it that way, that we’ve established with Tencent,” Mr Eisen said in an interview. "There’s no board representation. It’s purely a financial investment. So we’re not contemplating that relationship to be of a different form to that. And in terms of opportunities, as they arise, we’ll approach it in what you would typically expect to be the right governance formats of any publicly listed company," he said. Tecent's investment into Afterpay comes after it last month launched a buy now, pay later platform of its own on WeChat, which has more than 1 billion monthly active users. But Mr Eisen said Afterpay would maintain its focus as a consumer finance provider. “We’re maintaining our consumer and retail focus it’s not about deviating from that for us,” he said. Afterpay co-founder Nick Molnar said Afterpay could learn from Tencent's global scale. “I think there's a combination of, 'how do we learn from people who have scaled globally and understand deeply the payments infrastructure at a global level'. And then just also what potential collaboration opportunities to give the most value to our retail partners,” said Mr Molnar. Tencent spoke of developing a long term partnership with Afterpay. "Afterpay's approach stands out to us not just for its attractive business model characteristics, but also because its service aligns so well with consumer trends we see developing globally in terms of Afterpay's customer centric, interest free approach as well as its integrated retail presence and ability to add significant value for its merchant base," Tencent's chief strategy officer James Mitchell said in a statement to the ASX released on Friday. "We look forward to a deep and long-term business partnership between Tencent and Afterpay," he added. Tencent's substantial shareholder notice revealed that it started acquiring Afterpay shares in late March. This was just after Afterpay shares hit a multi year low of $8.90 as market concerns grew about the company's ability to deal with its first ever economic downturn and potential bad debts if its customers were not able to pay their bills. The fintech told investors last month that it could insulate its business model from high-risk clients and avoid any uptick in bad debts from cash-strapped customers. Tencent paid just over $300 million for a five per cent stake in the buy now pay later provider. The stake is now worth $390 million. Afterpay shares closed at $29.16 on Friday. The stock is flat so far in 2020, compared to a 22 per cent fall for the benchmark S&P/ASX 200 Index.
3 May 13:45 • WAtoday • https://www.watoday.com.au/business/companies/afterpay-dismisses-security-fears-after-wechat-owner-builds-300m-stake-20200501-p54p6a.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
Private donors match crisis cash for artists
3 May 13:45
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2 articles
Weight: 1.37
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Age penalty: 1.00
Best date: 3 May 13:45
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Weighted average GB: 0.0
Average IN: 1.6
Weighted average IN: 1.5399208083380023
Private donors match crisis cash for artists
A crisis fund for artists has been set up with the aim of gifting $1000 to 1000 unemployed creatives across the nation. Creative Partnerships Australia, a Commonwealth corporation that encourages a culture of private sector support for the arts, will provide seed money for the campaign, offering to match donations up until $110,000, potentially doubling the impact of donations. CPA will also extend its offer to the National Association of the Visual Arts’ Artists’ Benevolent Fund that offers eligible artists a one-off payment of $2000 for immediate assistance following a disaster or catastrophic event such as COVID-19. Arts Minister Paul Fletcher said the funding initiative from Creative Partnerships Australia would complement the federal government's existing 0support measures. CPA provides Australian government funding as co-matched contributions with private sector contributions to fund activities in the arts sector. But artists continue to report loopholes in the JobSeeker and JobKeeper wage subsidy program. Casuals and contractors working for state entities such as the Art Gallery of NSW, the Sydney Opera House, National Gallery of Victoria, and Melbourne Arts Centre are ineligible for the JobKeeper scheme due to a long-standing convention between state and federal governments, according to the Members Entertainment and Arts Alliance. The 1000 X 1000 Crisis Cash for Artists aims to provide stop-gap support for those arts workers slipping through the JobKeeper or JobSeeker safety nets. It is to be promoted through more than 40 arts organisations affiliated with Theatre Network Australia including Sydney Theatre Company, Belvoir, Force Majeure, Circus Oz, and Circa with the campaign to raise $1 million to provide grants of $1000 to 1000 independent artists in the performing arts who can demonstrate loss of income as a result of COVID-19. Theatre Network Australia chair Jill Smith said CPA's matched funding would act as an incentive for more donors to come on board, knowing that a donation of $1000 would support two artists instead of one. "The independent sector has been devastated by the shutdown of the arts due to COVID-19, and a small grant can pay for urgent materials, technology, or just pay a gas bill." Creative Partnerships Australia chief executive officer Fiona Menzies said the offer to match funds acknowledged the adversity and isolation that artists felt and the impact of the temporary closure of venues and postponement of events were having on livelihoods. Matched funding was a proven way to attract additional funds from the private sector to the arts, she said. "It is our hope that this funding will assist to immediately respond to the critical situation facing Australia’s artists, and to help sustain our vibrant creative sector." Casuals at the Sydney Opera House have been without shifts since the closure of its public spaces in mid-March. These workers were provided with six weeks of income maintenance support up until April 26 when wage-subsidy schemes came into full effect. "We are calling on the federal government to work with the states on a solution so these hundreds of thousands of workers, also local government, are not left in the cold and forced to go onto social security," a Media and Entertainment Alliance Australia spokesperson said. "The federal government could fix this by amending the eligibility criteria for JobKeeper, or the states could step into the breach to subsidise the income of public sector employees stood down because of coronavirus." Art Gallery of NSW confirmed it was not eligible to apply for the JobKeeper payments. "Our permanent, full-time and temporary staff continue to work behind the scenes while our doors are closed to the public," a gallery spokesperson said. "During this period we have also sought to retain and redeploy a number of our regular casuals within the gallery." The Opera House's chief executive officer, Louise Herron, said the venue was committed to supporting staff as much as possible. No full-time, part-time or casual staff had been stood down as a result of the pandemic. "All casual employees remain important members of the Opera House’s workforce and will be offered shifts when activity resumes," she said.
3 May 13:45 • The Age • https://www.theage.com.au/culture/art-and-design/private-donors-match-crisis-cash-for-artists-20200501-p54p4o.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
Private donors match crisis cash for artists
A crisis fund for artists has been set up with the aim of gifting $1000 to 1000 unemployed creatives across the nation. Creative Partnerships Australia, a Commonwealth corporation that encourages a culture of private sector support for the arts, will provide seed money for the campaign, offering to match donations up until $110,000, potentially doubling the impact of donations. CPA will also extend its offer to the National Association of the Visual Arts’ Artists’ Benevolent Fund that offers eligible artists a one-off payment of $2000 for immediate assistance following a disaster or catastrophic event such as COVID-19. Arts Minister Paul Fletcher said the funding initiative from Creative Partnerships Australia would complement the federal government's existing 0support measures. CPA provides Australian government funding as co-matched contributions with private sector contributions to fund activities in the arts sector. But artists continue to report loopholes in the JobSeeker and JobKeeper wage subsidy program. Casuals and contractors working for state entities such as the Art Gallery of NSW, the Sydney Opera House, National Gallery of Victoria, and Melbourne Arts Centre are ineligible for the JobKeeper scheme due to a long-standing convention between state and federal governments, according to the Members Entertainment and Arts Alliance. The 1000 X 1000 Crisis Cash for Artists aims to provide stop-gap support for those arts workers slipping through the JobKeeper or JobSeeker safety nets. It is to be promoted through more than 40 arts organisations affiliated with Theatre Network Australia including Sydney Theatre Company, Belvoir, Force Majeure, Circus Oz, and Circa with the campaign to raise $1 million to provide grants of $1000 to 1000 independent artists in the performing arts who can demonstrate loss of income as a result of COVID-19. Theatre Network Australia chair Jill Smith said CPA's matched funding would act as an incentive for more donors to come on board, knowing that a donation of $1000 would support two artists instead of one. "The independent sector has been devastated by the shutdown of the arts due to COVID-19, and a small grant can pay for urgent materials, technology, or just pay a gas bill." Creative Partnerships Australia chief executive officer Fiona Menzies said the offer to match funds acknowledged the adversity and isolation that artists felt and the impact of the temporary closure of venues and postponement of events were having on livelihoods. Matched funding was a proven way to attract additional funds from the private sector to the arts, she said. "It is our hope that this funding will assist to immediately respond to the critical situation facing Australia’s artists, and to help sustain our vibrant creative sector." Casuals at the Sydney Opera House have been without shifts since the closure of its public spaces in mid-March. These workers were provided with six weeks of income maintenance support up until April 26 when wage-subsidy schemes came into full effect. "We are calling on the federal government to work with the states on a solution so these hundreds of thousands of workers, also local government, are not left in the cold and forced to go onto social security," a Media and Entertainment Alliance Australia spokesperson said. "The federal government could fix this by amending the eligibility criteria for JobKeeper, or the states could step into the breach to subsidise the income of public sector employees stood down because of coronavirus." Art Gallery of NSW confirmed it was not eligible to apply for the JobKeeper payments. "Our permanent, full-time and temporary staff continue to work behind the scenes while our doors are closed to the public," a gallery spokesperson said. "During this period we have also sought to retain and redeploy a number of our regular casuals within the gallery." The Opera House's chief executive officer, Louise Herron, said the venue was committed to supporting staff as much as possible. No full-time, part-time or casual staff had been stood down as a result of the pandemic. "All casual employees remain important members of the Opera House’s workforce and will be offered shifts when activity resumes," she said.
3 May 13:45 • WAtoday • https://www.watoday.com.au/culture/art-and-design/private-donors-match-crisis-cash-for-artists-20200501-p54p4o.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.55
Classplus raises $9M to grow its Shopify-like platform for teachers and coaching centers in India
3 May 19:30
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2 articles
Weight: 1.18
Importance: 1.18
Age penalty: 1.00
Best date: 3 May 19:30
Average US: 22.03
Weighted average US: 29.14093459964141
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Weighted average GB: 0.16234346842572503
Average IN: 54.105000000000004
Weighted average IN: 40.47722267963458
Classplus raises $9M to grow its Shopify-like platform for teachers and coaching centers in India
An India-based startup that has built a Shopify -like platform for coaching centers to accept fees digitally from students, and deliver classes and study material online has received the nod — and capital — from a number of high-profile investors. The business-to-business startup, called Classplus, said on Monday that it has raised $9 million in its Series A financing round led by RTP Global, a prolific investor in early stage startups. Existing investors Blume Ventures, Sequoia Capital India’s Surge, Spiral Ventures, and Strive also participated in the round, said the two-and-a-half-year-old startup. As dozens of firms bet on hundreds of millions of students — and their parents — to embrace digital learning apps, Classplus, also backed by Times Internet, believes that hundreds of thousands of teachers and coaching centers that have gained reputation in their neighborhoods are here to stay. “We are serving these hyperlocal tutoring centers that are present in nearly every nook and cranny in India. Anyone who was born in a middle-class family here has likely attended these tution classes,” said Mukul Rustagi, co-founder and chief executive of Classplus, in an interview with TechCrunch. “These are typically small and medium setups that are run by teachers themselves. These teachers and coaching centers are very popular in their locality. They rarely do any marketing and students learn about them through word-of-mouth buzz,” he said. Rustagi described Classplus as “Shopify for coaching centers.” Like Shopify, the service does not serve as a marketplace that offers discoverability to these teachers or coaching centers. Instead, it offers a way for these teachers to leverage its tech platform to engage with customers (in this case, students). Classplus has on-boarded more than 3,500 coaching centers on its platform, said Rustagi, more than 500 of which started using the service in the month of April after Prime Minister Narendra Modi’s government ordered to shut down schools and other public gatherings in a bid to curb the spread of the coronavirus disease. Coaching centers use Classplus to digitally communicate with students, deliver video classes and other study material, and accept payments. These coaching centers can engage with their students through Classplus’ mobile app and the website. “Joining the platform is as easy as signing up for a team collaboration app. The whole process takes less than 30 minutes,” said Rustagi. “According to the Global Teacher Status Index by the Varkey foundation in 2018, India was among the top-10 in the world in respecting teachers, though was in the last-10 in paying them. Classplus is liquidating this imbalance by empowering tutors with full-stack mobile solutions, while maintaining and further improving the high reputation of tutors. We are happy to back the company with this important mission, and have Classplus as our first edutech bet in India,” said Kirill Kozhevnikov, a partner at RTP Global, in a statement. The startup, which employs about 200 people, aims to have 10,000 coaching centers join its platform by the end of the year. It has a sales team and other members in about 70 cities in India currently. Classplus also plans to introduce additional features for coaching centers on its platform.
3 May 19:30 • TechCrunch • https://techcrunch.com/2020/05/03/classplus-coaching-centers-teachers-online/Rating: 2.36
E-Learning Giant Byju's To Raise USD 10 Billion Valuation…
This lockdown period has become a boon for all the e-learning applications. Be it Byju's, Toppr or Khan academy, all these e-learning institutions are ... This lockdown period has become a boon for all the e-learning applications. Be it Byju's, Toppr or Khan academy, all these e-learning institutions are bagging thousands of students. Now it's the time of Byju's… This company is expected to raise USD 10 billion valuations. The Tiger and General Atlantic company will invest USD 300 million in this nine-year-old start-up. The additional capital of USD 400 million would be a part of Bengaluru based startup's. With this investment, Byju's becomes the second most valuable start-up in India. This ed-tech platform is bagging billions in this lockdown period as parents and students are seen paying attention towards the e-learning platforms in this Corona lockdown period. Email ArticlePrint Article Next Story
2 May 16:56 • The Hans India • https://www.thehansindia.com/tech/e-learning-giant-byjus-to-raise-usd-10-billion-valuation-620387Rating: 1.10
GST audit guidelines need to be reviewed to include video conferencing, says Experts
3 May 17:52
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GST audit guidelines need to be reviewed to include video conferencing, says Experts
GST officers would have to audit and assess taxpayers via video-conferencing instead of undertaking physical visits amid the coronavirus pandemic, and the current guidelines need to be reviewed for this, according to experts. As per the current goods and services tax (GST) audit guidelines, taxpayers have been broadly categorised into three groups based on their annual turnover -- large, medium and small. While large and medium units are compulsorily under premises-based audits; for small units, desk-based audit has been suggested. However, in the case of non-cooperative taxpayers or any inherent weakness of the internal control system, officers could shift back to the premises-based audit. Last month, the Central Board of Indirect Taxes and Customs (CBIC) issued instructions requiring officers to hold a personal hearing in respect of customs law, central excise and service tax laws through the video-conferencing facility. Experts said that with the audit for the financial year 2017-18, the first year in the GST regime, yet to begin, the tax officers would need to review the audit guidelines and include video conference facility along with strengthening the risk management system to flag risky cases. PwC India Partner National Leader (Indirect Tax) Pratik Jain said GST audit and assessment for 2017-18 will start soon and the department will have to review the audit guidelines. "The current guidelines talk about physical visits to premises of large business for say 7-8 days and conducting audit. With social distancing being a 'new normal' now, GST officials might have to explore more virtual verifications," Jain said. The government will have to take a re-look at its risk management system and devise better ways of assessing taxpayers, he added. AMRG & Associates Senior Partner Rajat Mohan said one segment of the CBIC, which is Customs, has already embraced the use of technology, and now it is expected that GST having more than 1.2 crore taxpayers would also introduce such facility in all the departmental functions including assessments, adjudications, appeals, and audit. "Introducing a video-conferencing facility in all the tax laws is imperative to the business continuity plan of the economy, otherwise, this pandemic will result in inordinate delay in the delivery of justice," Mohan added.
3 May 17:52 • Deccan Herald • https://www.deccanherald.com/business/business-news/gst-audit-guidelines-need-to-be-reviewed-to-include-video-conferencing-says-experts-833061.htmlRating: 2.25
GST audit guidelines need to be reviewed to include video conferencing: Experts
GST officers would have to audit and assess taxpayers via video-conferencing instead of undertaking physical visits amid the coronavirus pandemic, and the current guidelines need to be reviewed for this, according to experts. As per the current goods and services tax (GST) audit guidelines, taxpayers have been broadly categorised into three groups based on their annual turnover -- large, medium and small. While large and medium units are compulsorily under premises-based audits; for small units, desk-based audit has been suggested. However, in the case of non-cooperative taxpayers or any inherent weakness of the internal control system, officers could shift back to the premises-based audit. Last month, the Central Board of Indirect Taxes and Customs (CBIC) issued instructions requiring officers to hold a personal hearing in respect of customs law, central excise and service tax laws through the video-conferencing facility. Experts said that with the audit for the financial year 2017-18, the first year in the GST regime, yet to begin, the tax officers would need to review the audit guidelines and include video conference facility along with strengthening the risk management system to flag risky cases. PwC India Partner National Leader (Indirect Tax) Pratik Jain said GST audit and assessment for 2017-18 will start soon and the department will have to review the audit guidelines. "The current guidelines talk about physical visits to premises of large business for say 7-8 days and conducting audit. With social distancing being a 'new normal' now, GST officials might have to explore more virtual verifications," Jain said. The government will have to take a re-look at its risk management system and devise better ways of assessing taxpayers, he added. AMRG & Associates Senior Partner Rajat Mohan said one segment of the CBIC, which is Customs, has already embraced the use of technology, and now it is expected that GST having more than 1.2 crore taxpayers would also introduce such facility in all the departmental functions including assessments, adjudications, appeals, and audit. "Introducing a video-conferencing facility in all the tax laws is imperative to the business continuity plan of the economy, otherwise, this pandemic will result in inordinate delay in the delivery of justice," Mohan added.
3 May 12:00 • The Economic Times • https://economictimes.indiatimes.com/news/economy/policy/gst-audit-guidelines-need-to-be-reviewed-to-include-video-conferencing-experts/articleshow/75518541.cmsRating: 0.30
Westpac has deferred its dividend after revealing a massive 70% slump in profit
3 May 23:24
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Westpac has deferred its dividend after revealing a massive 70% slump in profit
Westpac Banking Corporation has revealed a massive 70 per cent slump in first half cash profit of $993 million and elected to defer the dividend until greater clarity is known about the economic impact of COVID-19 on bad debts. Westpac chief executive Peter King sheeted the hit to profits back to the likely cost of settling the AUSTRAC matter, its ongoing response to recommendations from the Hayne royal commission and growing projections of the cost of the virus crisis. “This is the most difficult result Westpac has seen in many years. It is significantly impacted by higher impairment charges due to COVID-19, as well as notable items including the AUSTRAC provision,” Mr King said in a statement. The bank stressed that its capital position remained sound following its decision to raise $2.8 billion in December last year but said it felt it was prudent not to make a distribution at this time. “The board has deferred the decision on determining an interim dividend and no dividend will be paid in June 2020. This was a difficult decision given many retail shareholders rely on The bank said it had been in constant dialogue with the regulator over stress testing scenarios and it had not expressed any concern about its position. The bank said it would revisit the dividend decision at some point over the year. “Westpac remains well provisioned and capitalised. Nevertheless, the board recognises the uncertain economic and operating conditions and how these may develop over the next six months. Westpac has also flagged the sale of several wealth assets including its superannuation and insurance operations and wealth platforms. It has created a new “specialist businesses division”, which will be led by Jason Yetton, a former head of retail banking at Westpac who returns from Commonwealth Bank. Mr Yetton will lead a strategic review of Westpac’s sub-scale operations across superannuation, wealth platforms, investments, insurance, auto finance and the Pacific. Mr King said “over the coming months we will conduct a detailed strategic review on the best options for these businesses. This will include considering whether they would ultimately be more successful under different ownership. Expectations of shareholders had been softened up in recent weeks with the bank announcing $1.4 billion in provisions including setting aside $900 million for the AUSTRAC matter and a further $2.2 billion for bad and doubtful debts with $1.6 billion set aside for COVID-19. Before the resumption of trade on Monday morning, Westpac shares were down 49 per cent to $15.34 from their 52 week high of $30.05 reached in September last year. Shares in the bank have been sold off heavily in the wake of the AUSTRAC money laundering scandal that saw CEO Brian Hartzer step down and brought forward the retirement of chairman Lindsay Maxsted. The decision to pay no dividend follows a directive from the prudential regulator for banks to materially reduce or defer a decision on making distributions until the impact of the COVID-19 outbreak is better known. Last week NAB slashed its dividend to 30¢ from 83¢ while ANZ said it would defer the decision entirely. This story originally appeared in the Australian Financial Review. Read the original story here.
3 May 23:24 • Business Insider Australia • https://www.businessinsider.com.au/westpac-dividend-slump-profit-2020-5Rating: 0.30
Westpac profit slumps 70pc, defers dividend
Westpac Banking Corp has revealed a massive 70 per cent slump in first half cash profit to $993 million and elected to defer the dividend until there's greater clarity on the impact that COVID-19 will have on bad debts. The bank has also chosen to bring forward a decision about the bank's involvement in the beleaguered wealth management sector by putting its remaining assets in a separate division as it considers exiting the sector entirely. Westpac shares fell a modest 1 per cent at the open before recovering by midday to trade 1.6 per cent higher. Westpac chief executive Peter King sheeted the hit to profits back to the likely cost of settling the AUSTRAC matter, its ongoing response to recommendations from the Hayne royal commission and growing projections of the cost of the virus crisis. “This is the most difficult result Westpac has seen in many years," Mr King said in a statement. "It is significantly impacted by higher impairment charges due to COVID-19, as well as notable items including the AUSTRAC provision." The sharp downturn in the business was reflected in the banks return on equity down to 2.9 per cent from 10.4 per cent in the first half of 2019. The bank said its capital position remained sound following its decision to raise $2.8 billion in December 2019 but said it felt it was prudent not to make a distribution in June after paying investors 93c a share this time last year. "This was a difficult decision given many retail shareholders rely on Westpac dividends," the bank said. The board had "accepted APRA’s consistent guidance on dividends and being prudent at this point in time". UBS analyst Jonathan Mott said the result was better than expected with much of the bad news including the multibillion-dollar provisioning already known and applauded the bank for flagging its intention to exit remaining wealth assets. "Establishment of the specialist business division (wealth management, life, auto finance, general insurance and Pacific) with strategic review to assess "appropriate ownership" is a positive, in our view, given these businesses utilised $4 billion of regulatory capital," Mr Mott said in a flash note for clients. Good news however was in short supply in the result in which the bank’s four main divisions revealed falls in cash earnings of between 18 per cent and 63 per cent. Consumer banking fell 18 per cent compared with the previous half on the impact of the bushfires, severe weather events and higher impairment charges. Cash earnings at the business bank fell 46 per cent as it took an early hit from the likely fallout of the COVID-19 virus crisis. Earnings at the institutional bank were off a whopping 63 per cent on the previous corresponding half for similar reasons while earnings in New Zealand were off 39 per cent. The net interest margin at the bank – a key metric which shows the gap between its cost of funds and the price it charges its customers – was a rare bright spot up 1 basis point to 2.13 per cent however CFO Gary Thursby cautioned investors from seeing much improvement in the margin over the next half. The bank said it had been in constant dialogue with the regulator over stress testing scenarios and it had not expressed any concern about its position. It will revisit the dividend decision at some point over the year; this time last year, Westpac paid an interim dividend of 94 cents per share before cutting it to 80c a share in the second half. The decision to defer the dividend was an historic one; even during the depths of the recession in 1992, when Westpac almost collapsed, it still paid a small dividend to shareholders. Westpac's common equity tier 1 (CET1) remained at 10.8 per cent following last year's capital raising. "Westpac remains well provisioned and capitalised. Nevertheless, the board recognises the uncertain economic and operating conditions and how these may develop over the next six months." Westpac has also flagged the sale of its remaining wealth assets including its superannuation and insurance operations and wealth platforms. It has created a new “specialist businesses division”, which will be led by Jason Yetton, a former head of retail banking at Westpac who returns from Commonwealth Bank after CBA abandoned plans for a wealth spin-off. Mr Yetton will lead a strategic review of Westpac’s sub-scale operations across superannuation, wealth platforms, investments, insurance, auto finance and the Pacific. Mr King said “over the coming months we will conduct a detailed strategic review on the best options for these businesses". "This will include considering whether they would ultimately be more successful under different ownership," he added. Westpac has already made an effort to reduce its exposure to businesses adjacent to its core banking operations after selling the majority of its financial advice network to Viridian in March 2019 for a song. The bank pointed to “early signs of stress” in its lending books. While loans put into deferral are not treated as being impaired under after an APRA directive, Westpac said the number of mortgages more than 90 days overdue were up 5 basis points over the half while those more than 30 days overdue were 23 basis points higher. Other consumer 90+ day delinquencies were also higher, up 25 basis points over the half. "The full impact of COVID-19 is expected to emerge in future periods," the bank said. Shareholders had been softened up in recent weeks with the bank announcing $1.4 billion in provisions including setting aside $900 million for the AUSTRAC matter and a further $2.2 billion for bad and doubtful debts with $1.6 billion set aside for COVID-19. Overall provisions for expected credit losses now sit at $5.8 billion. Like ANZ and National Australia Bank last week, Westpac flagged considerable interest among its customers for deferring loans due to COVID-19. It said 105,000 Australian mortgage accounts had been put on hold, with a loan value of $39 billion, and in addition loan repayments had been deferred across 31,000 Australian business loans with a value of $8.2 billion. On the macro-economy, it said as a base case, it expects the unemployment rate to peak at 9 per cent in June and drop to around 7 per cent by the end of the year. House prices could fall by 15 per cent in 2020 and a further 5 per cent in 2021. The bank is expecting a 5 per cent contraction in GDP in 2020 and credit growth in 2020 to be just 0.3 per cent. But in 2021, GDP is forecast to rise by 4 per cent. Shares in the bank were been sold off heavily in the wake of the AUSTRAC money laundering scandal that saw CEO Brian Hartzer step down and brought forward the retirement of chairman Lindsay Maxsted. The decision to pay no dividend follows a directive from the prudential regulator for banks to materially reduce or defer a decision on making distributions until the impact of the COVID-19 outbreak is better known. Last week NAB slashed its dividend to 30¢ from 83¢ while ANZ said it would defer the decision entirely and would make a decision possibly as late as August.
3 May 22:16 • Australian Financial Review • https://www.afr.com/companies/financial-services/westpac-profit-slumps-70pc-defers-dividend-20200503-p54pf1Rating: 1.94
Almost 23 million US jobs wiped out in a single month
3 May 15:42
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Almost 23 million US jobs wiped out in a single month
Almost 23 million US jobs were created in the last decade. In a single month, they were all but wiped out. The US labour department’s April employment report will further detail the swift and extensive toll of government efforts to mitigate the coronavirus pandemic. The median forecast in a Bloomberg survey of economists calls for an eye-popping 21 million plunge in payrolls, the most in records back to 1939. That’s about 10 times the previous record decline in September 1945, when the nation demobilized with the end of World War II. The US unemployment rate is projected to surge to more than 16 per cent, the highest in monthly data back to 1948. The April jobs report will provide a fuller picture of the labour market impact after nationwide shutdowns aimed at limited the spread of the coronavirus. In March, employment slumped by 701,000 and the jobless rate climbed to 4.4 per cent, the highest since August 2017. It was just in February that the unemployment rate matched the lowest level since 1969. Meanwhile, weekly jobless claims data have been abysmal. In the six weeks ended April 25, more than 30 million Americans have applied for unemployment benefits. Europe, Middle East and Africa In the UK, with the government trying to figure out how to ease the lockdown, the Bank of England will decide whether the emergency measures it has taken so far are enough for the time being to sustain the economy. In a rare move reflecting the magnitude of the crisis, officials will release their monetary policy and financial stability reports on the same day, giving insight into their outlook for the economic and assessments of the state of the banking system. The European Central Bank faces a legal hurdle on Tuesday when Germany’s constitutional court publishes its verdict on whether the ECB’s QE program is compatible with the country’s law. An adverse ruling, or one which imposes strict limits on purchases, could spark turmoil in markets, potentially undermining the institution’s fight to help the economy weather the coronavirus pandemic. The European Commission will be the latest institution to give its official view of the virus impact on the bloc’s economy. The forecasts for individual countries matter because they will form part of the basis on which aid will be granted to different EU states to support their recovery. Hungary’s central bank will make its first government purchases as part of its QE program on Tuesday, while two days later, Czech policy makers are expected to lower interest rates again. Policy makers in Norway also set rates on Thursday, while Russia’s central bank governor gives a briefing on Friday, amid one of the world’s fastest-growing virus outbreaks and surveys suggesting that the The Reserve Bank of Australia meets on Tuesday, finding itself in the eye of the storm as a relative lull grips the economy with markets becalmed by its yield curve control. Malaysia’s central bank meets that same day and is likely to cut interest rates, according to early economist survey results. First quarter GDP reports from Hong Kong, Indonesia and the Philippines will be released throughout the week, while China trade data for April on Thursday will show how the global virus shutdowns dented shipments even as the world’s second-largest economy shows signs of recovery. Just one of Latin America’s three central banks meeting this week still has policy room available for monetary stimulus. On Wednesday, Brazil’s central bank will probably cut its key rate for a seventh straight time to at least 3.25 per cent. Further easing is expected given 2020 forecasts for below-target inflation and the deepest recession in decades. By contrast, Chile’s central bank, also meeting Wednesday, has said its key rate, now at 0.5 per cent, has reached its “technical minimum,” or effective lower bound, after two reductions in March. Peru’s policy makers on Thursday are in a similar bind: Their 100 basis-point cut at an unscheduled April 9th meeting left their key rate at a record-low 0.25 per cent. – Bloomberg
3 May 15:42 • The Irish Times • https://www.irishtimes.com/business/economy/almost-23-million-us-jobs-wiped-out-in-a-single-month-1.4244061Rating: 1.99
Unimaginable U.S. Jobs Report Takes Center Stage: Eco Week Ahead
(Bloomberg) — Almost 23 million U.S. jobs were created in the last decade. In a single month, they were all but wiped out. The Labor Department’s April employment report will further detail the swift and extensive toll of government efforts to mitigate the coronavirus pandemic. The median forecast in a Bloomberg survey of economists calls for an eye-popping 21 million plunge in payrolls, the most in records back to 1939. That’s about 10 times the previous record decline in September 1945, when the nation demobilized with the end of World War II. The U.S. unemployment rate is projected to surge to more than 16%, the highest in monthly data back to 1948. What Bloomberg’s Economists Say… “The unlocking of the economy has started to varying degrees in different parts of the country, but the hemorrhaging of jobs will persist for at least a few more months, pushing unemployment toward 20% and in turn stifling prospects of a vigorous recovery.” –Bloomberg Economics. Click here for full PREVIEW Data out of Europe will focus on industrial production, and Canada will also issue figures on the damage done to its labor market. Meanwhile, the Reserve Bank of Australia, Norway’s Norges Bank and the Bank of England will set policy, with the latter releasing both its latest economic forecasts and financial stability assessment. Click here for what happened last week and below is our wrap of what’s coming up in the world economy. U.S. and Canada The April jobs report will provide a fuller picture of the labor-market impact after nationwide shutdowns aimed at limited the spread of the coronavirus. In March, employment slumped by 701,000 and the jobless rate climbed to 4.4%, the highest since August 2017. It was just in February that the unemployment rate matched the lowest level since 1969. Meanwhile, weekly jobless claims data have been abysmal. In the six weeks ended April 25, more than 30 million Americans have applied for unemployment benefits. A handful of Federal Reserve speakers including Chicago Fed President Charles Evans and St. Louis Fed President James Bullard are scheduled to comment on the economy. Also on Friday, Statistics Canada will issue its April jobs report. In March, employment fell a record 1.01 million and the unemployment rate rose to 7.8%. For more, read Bloomberg Economics’ full Week Ahead for the U.S. Europe, Middle East and Africa In the U.K., with the government trying to figure out how to ease the lockdown, the BOE will decide whether the emergency measures it has taken so far are enough for the time being to sustain the economy. In a rare move reflecting the magnitude of the crisis, officials will release their monetary policy and financial stability reports on the same day, giving insight into their outlook for the economic and assessments of the state of the banking system. Bloomberg Economics BOE Dashboard The European Central Bank faces a legal hurdle on Tuesday when Germany’s constitutional court publishes its verdict on whether the ECB’s QE program is compatible with the country’s law. An adverse ruling, or one which imposes strict limits on purchases, could spark turmoil in markets, potentially undermining the institution’s fight to help the economy weather the coronavirus pandemic. The European Commission will be the latest institution to give its official view of the virus impact on the bloc’s economy. The forecasts for individual countries matter because they will form part of the basis on which aid will be granted to different EU states to support their recovery. Hungary’s central bank will make its first government purchases as part of its QE program on Tuesday, while two days later, Czech policy makers are expected to lower interest rates again. Policy makers in Norway also set rates on Thursday, while Russia’s central bank governor gives a briefing on Friday, amid one of the world’s fastest-growing virus outbreaks and surveys suggesting that the economy may contract by almost 10% in the second quarter. Turkey may report on Monday that inflation slowed to 10.7% in April after Central Bank Governor Murat Uysal lowered his year-end forecast to 7.4% — a move that may hint at further interest-rate cuts. Countries across Africa and the Middle East will also release purchasing managers index data throughout the week, giving an indication of the extent of the deterioration in market conditions due to coronavirus lockdowns. For more, read Bloomberg Economics’ full Week Ahead for EMEA Asia The Reserve Bank of Australia meets on Tuesday, finding itself in the eye of the storm as a relative lull grips the economy with markets becalmed by its yield curve control. Malaysia’s central bank meets that same day and is likely to cut interest rates, according to early economist survey results. Hong Kong GDP by Sector First quarter GDP reports from Hong Kong, Indonesia and the Philippines will be released throughout the week, while China trade data for April on Thursday will show how the global virus shutdowns dented shipments even as the world’s second-largest economy shows signs of recovery. For more, read Bloomberg Economics’ full Week Ahead for Asia Latin America Just one of Latin America’s three central banks meeting this week still has policy room available for monetary stimulus. On Wednesday, Brazil’s central bank will probably cut its key rate for a seventh straight time to at least 3.25%. Further easing is expected given 2020 forecasts for below-target inflation and the deepest recession in decades. By contrast, Chile’s central bank, also meeting Wednesday, has said its key rate, now at 0.5%, has reached its “technical minimum,” or effective lower bound, after two reductions in March. Peru’s policy makers on Thursday are in a similar bind: Their 100 basis-point cut at April 9’s unscheduled meeting left their key rate at a record-low 0.25%. For more, read Bloomberg Economics’ full Week Ahead for Latin America ©2020 Bloomberg L.P. Bloomberg.com
3 May 03:01 • Financial Post • https://business.financialpost.com/pmn/business-pmn/unimaginable-u-s-jobs-report-takes-center-stage-eco-week-aheadRating: 0.94
Bigger reduction in Aer Lingus flights now expected for this summer
3 May 12:01
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Bigger reduction in Aer Lingus flights now expected for this summer
Aer Lingus expects to see a far bigger reduction in flights this summer than it had previously predicted, according to a report in the Sunday Independent. Forecasts for June and July were revealed to union leaders by airline management at one of a number of crisis briefings. The airline had prepared a schedule for June that would see it fly 15 per cent of its normal flights, but the “realistic view is now closer to 5 per cent ”. The “best case” for July had been a less than 20 per cent schedule, but it would now be “significantly lower” than that. Banks will not offer a third blanket mortgage and business loan payment break for customers who are struggling to meet repayments, the Business Post reports. The paper cited banking industry and Central Bank sources saying that lenders would assess customers who are struggling to make payments in the coming months, with a view to putting them through normal mortgage restructuring processes over the summer. The main banks and vulture funds last week agreed to a second three-month payment holiday that will last until the end of September. The pay of Eamonn Rothwell, the boss of ferry operator Irish Continental Group, surged by one-third last year as the company’s profits rebounded after a difficult 2018, the Business Post writes. Mr Rothwell was paid just over €3 million in 2019, according to the company’s annual report, well above the €2.1 million he earned in the previous year. His basic salary was €556,000, and he was awarded restricted share options of €1.5 million. Under the company’s performance share plan, Mr Rothwell was paid a further €898,000. Leslie Buckley, the former chairman of Independent News & Media (INM), has told the High Court his life has been “ruined” by the “extensive adverse publicity” arising from allegations made by Robert Pitt, the newspaper group’s former chief executive, according to The Sunday Times. Mr Pitt made a series of claims against Mr Buckley in protected disclosures that now form the basis of a High Court investigation into affairs at INM. Last week, Mr Buckley applied to have inspectors Seán Gillane SC and Richard Fleck stood down on the grounds of bias. The inspectors have rejected the complaint of bias. Mr Buckley said “the relentless repetition and amplification of damaging allegations” against him had been devastating to his reputation and had a “huge effect” on his family. CarTrawler, one of Ireland’s largest ecommerce companies, is in advanced talks to raise €100m in equity to stabilise the business, which has been severely hit by the collapse in travel due to the coronavirus pandemic, the Sunday Times reports. The global aggregator of car hire deals is in talks with a number of potential investors and is confident it will conclude a deal by the end of this month. The report said the company’s current private equity owners BC Partners and Insight Venture Partners, who together purchased CarTrawler for €450 million in 2014, would exit the business as part of the planned restructuring. Plans by the quoted builder Glenveagh Properties to forward-sell a €250 million Dublin apartment development have been put on hold as uncertainty caused by the coronavirus pandemic continues, according to the Sunday Times. Glenveagh has been in exclusive talks with Round Hill Capital, an international property group, about a so-called pre-fund deal for almost 450 apartments that will be built on East Road in Dublin. The talks have been paused, however, amid the shutdown of construction sites and the complications of an effective ban on international travel for London-based Round Hill. ESB has lodged plans for a 75 megawatt so-called “peaker plant” in Dublin that will help the electrical grid in the city cope with an increasing amount of renewable energy, the Sunday Independent reports. The new plant at Corduff is being developed as a peaking power plant to service the “greater Dublin evening peak demand for power”.
3 May 12:01 • The Irish Times • https://www.irishtimes.com/business/media-and-marketing/bigger-reduction-in-aer-lingus-flights-now-expected-for-this-summer-1.4243910Rating: 1.99
Air fares could be back at 1980 levels due to COVID-19, expert warns
Flight prices could be back to 1980 levels if the airline industry struggles to recover after the coronavirus pandemic. That is according to travel expert Eoghan Corry. It comes amid job cuts across the industry, withRyanair announcing plansto cut up to 3,000 jobs. Aer Lingus is also planning to axe up to 900 positions. Its parent company, International Airlines Group (IAG), has warned that it will take "several years" to get passenger numbers back to 2019 levels. And it also plans to cut up to 12,000 jobs at British Airways. The Health Minister Simon Harris has said the prospect of anyone going on a summer holiday this year is "highly unlikely". Mr Corry told Newstalk Breakfast that when the crisis is over, airlines might have to charge more. "What the medical experts and politicians have been saying is that we didn't have a coordinated response to the travel lockdown at the start - we need a coordinated response to its recovery. "That was the clear message from the transport ministers meeting on Wednesday." "What Simon Harris said yesterday is that he's not trying to stop the airlines from flying - he said that two weeks quarantine on your return turns a two week holiday into a four week holiday". On flight prices, he said: "If the number of routes out of Dublin and the number of frequencies, let's say the Malaga's go down to two flights day from 14 a day, we're back to the 1980s. But he said domestic tourism will see a big increase, once there is certainty. "What will be happening is we'll have the mother and father of all sales, once we have a clear run. "Hotels are going to be scrambling for whatever cash they can." "It'll be a great year for bargains if household finances - which are also under siege - can sustain them, but it'll be a terrible year for business".
3 May 10:36 • Newstalk • https://www.newstalk.com/news/air-fares-back-1980-levels-due-covid-19-expert-warns-1009682Rating: 0.30
Indonesia's Tokopedia probes alleged data leak of 91 million users
3 May 06:43
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Indonesia's Tokopedia probes alleged data leak of 91 million users
SINGAPORE (Reuters) - Tokopedia, Indonesia’s largest e-commerce platform, said it was investigating an attempted hack and claims that the details of millions of its users had been leaked online. “We found that there had been an attempt to steal data from Tokopedia users,” a spokesman for the company said in a statement late Saturday. “However, Tokopedia ensures that crucial information such as passwords remains successfully protected behind encryption.” “At this moment, we continue to investigate further into this matter and there is no additional information that we can share,” the statement added. Data breach monitoring firm Under the Breach published a Twitter post on Saturday showing screenshots from an unnamed individual who claimed he had acquired the personal details of 15 million Tokopedia users during a March 2020 hack on the e-commerce site. According to the screenshots, which show names, emails and birthdays, the hacker alleges he or she is in possession of a much bigger user database and asks for assistance to “crack” users’ passwords. Under the Breach, which monitors cyber crime, said on Sunday the hacker had updated the post to offer the details of 91 million users for “$5,000 on the Darknet”. The firm shared a screenshot of the hacker’s proposed offer posted online. Backed by $2 billion in funding from investors including SoftBank Group Corp’s Vision Fund and Alibaba, Tokopedia, whose founder and CEO William Tanuwijaya is one of the country’s most prominent tech entrepreneurs, claims more than 90 million monthly active users. A Tokopedia spokesman declined to comment directly on the hacker’s claims, but told Reuters on Sunday that “all transactions with all payments methods at Tokopedia ... remain secure.”
3 May 06:43 • Reuters • https://www.reuters.com/article/us-tokopedia-cyber-idUSKBN22E0Q2Rating: 4.04
Indonesia's Tokopedia probes alleged data leak of 91 mln users
SINGAPORE — Tokopedia, Indonesia’s largest e-commerce platform, said it was investigating an attempted hack and claims that the details of millions of its users had been leaked online. “We found that there had been an attempt to steal data from Tokopedia users,” a spokesman for the company said in a statement late Saturday. “However, Tokopedia ensures that crucial information such as passwords remains successfully protected behind encryption.” “At this moment, we continue to investigate further into this matter and there is no additional information that we can share,” the statement added. Data breach monitoring firm Under the Breach published a Twitter post on Saturday showing screenshots from an unnamed individual who claimed he had acquired the personal details of 15 million Tokopedia users during a March 2020 hack on the e-commerce site. According to the screenshots, which show names, emails and birthdays, the hacker alleges he or she is in possession of a much bigger user database and asks for assistance to “crack” users’ passwords. Under the Breach, which monitors cyber crime, said on Sunday the hacker had updated the post to offer the details of 91 million users for “$5,000 on the Darknet.” The firm shared a screenshot of the hacker’s proposed offer posted online. Backed by $2 billion in funding from investors including SoftBank Group Corp’s Vision Fund and Alibaba, Tokopedia, whose founder and CEO William Tanuwijaya is one of the country’s most prominent tech entrepreneurs, claims more than 90 million monthly active users. A Tokopedia spokesman declined to comment directly on the hacker’s claims, but told Reuters on Sunday that “all transactions with all payments methods at Tokopedia … remain secure.” (Reporting by Fanny Potkin; Editing by Michael Perry and Himani Sarkar)
3 May 06:42 • Financial Post • https://business.financialpost.com/pmn/business-pmn/indonesias-tokopedia-probes-alleged-data-leak-of-91-mln-users-2Rating: 0.94
Five investment steps to a profitable crisis
3 May 23:37
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Five investment steps to a profitable crisis
The seeds of long-term portfolio underperformance are sown when investors step away from disciplined asset allocation. Amid today’s pandemic-driven crisis – and almost certain global and Australian recessions – this might look like a decision to liquidate a portfolio to cash, with the vain hope of trying to time re-entry. Or maybe it looks like keeping 100 per cent of the cash on the sidelines when some assets and selected investments are much cheaper than just a couple of months ago. The challenge is that equity markets, after falling 35 per cent from their pre-coronavirus highs, have rallied more than 20 per cent, taking most valuation metrics back to where they were before the crisis. Surely the economic and earnings outlook is vastly more volatile and uncertain than in mid-February? And surely the damage to the economic outlook is contrary to the current level of equity prices, just 20 per cent below prior record highs? Still, the market has found a trough for now and moved higher as many of the risk signals we have shared with our clients have been crossed off the list. These include signs of panic from monetary and fiscal policymakers that have fostered aggressive easing, a stabilisation in credit markets and increased confidence that we are approaching "peak disease". A renewed deal between the Organisation of the Petroleum Exporting Countries (OPEC) and Russia from May 1 and growing certainty for markets about the timing of the phased end to lockdowns around the world and in Australia also supports the market's desire to gaze across the valley to a 2021 recovery. Equity markets, historically, have shown a penchant to "whistle past the grave" for as long as possible, which is, typically, until they don’t. Our anticipated U-shaped recovery should cause global growth to rebound this year, before a sharp stimulus-induced pick-up in 2021 (potentially twice the pace of historical trend growth). This should raise equity markets higher than today, though below prior peaks. The path to that point, however, remains uncertain. We are modestly overweight equities absolutely and relative to fixed income and alternative assets on a 12-month horizon, a decision we made mid-March, at about 6 per cent below the current level of equity prices. But the recent rally has cautioned us about moving more overweight equities, given stretched valuations, the inherently messy process of restarting economies and before the second quarter’s economic weakness is better understood. While we are not convinced markets will retest their prior lows – and are inclined to buy into weakness – the recent rally has not been corroborated by other assets, such as the price of key commodities copper and oil, suggesting a vulnerability to a near-term correction. However, despite the equity markets' lack of near-term attractiveness, this doesn’t mean there is nothing to do. There are a number of active decisions investors need to consider today. This crisis, particularly given its unique human element, is likely to accelerate structural themes than can be profitable to expose a portfolio to, even during the crisis. Some sectors will clearly have their strong thematics accelerated, such as online purchasing, home delivery, health care and home-based technology and entertainment. Others could find their structural headwinds intensified, such as cruiseliner travel, bricks and mortar retailing and CBD office space. Still others could be facing new unanticipated demand headwinds, such as short-haul business travel and accommodation. Scott Haslem is chief investment officer at Crestone Wealth Management.
3 May 23:37 • Australian Financial Review • https://www.afr.com/wealth/personal-finance/five-investment-steps-to-a-profitable-crisis-20200501-p54p0lRating: 1.94
Think before making your investments, not later
We are going through challenging times. There is correction in the equity market, defaults in debt funds and even issues with certain banks. Many investors are wondering what is ‘safe.’ Nothing has changed fundamentally in our economy or the financial markets. Due to COVID-19, economic growth has been impacted, but we will come back over a period of time. There is no reason to suspect something is going wrong with investments in general. To put the current situation in perspective: the equity market, in particular, the global markets, pre-COVID-19, had a significant run up. Also read:COVID-19 | Coronavirus infects global markets, investors exit equities There was a lot of surplus liquidity floating around (there still is) and that pushed up prices in equity markets in advanced economies. In India, the equity market had moved up but more at the index level (Nifty, Sensex) and in large cap stocks. The broad market, taking all listed stocks into consideration, had not moved up as much. After the pandemic, the sharp correction has been inevitable as advanced economies are staring at a recession. With markets being interlinked, the correction had to happen in India as well. The defaults in debt funds happened due to multiple reasons, the major one being the cleaning up of the system. Earlier, the practice of ever-greening was rampant i.e. granting one more loan so that an existing loan does not go bad. With stricter regulations, including the IBC, some companies were taken to the NCLT. The risk in debt in still there as the economy has slowed down but it is not so alarming as to make one exit all one’s debt investments. For now, due to the challenging situation, the government is supportive and going slow on entrepreneurs. Issues in banks are specific to a few lenders. The macro issue due to higher NPAs and consequent losses have been addressed by the infusion of capital by the government. Certain banks had supressed NPA information earlier, which is coming to light now, leading to issues. Also read | COVID-19 outbreak to hit global growth but will have limited impact on India: RBI Governor Concerns due to the reasons mentioned above and their impact on your investments are natural. It is in human nature to make an investment without caring about risk factors. Afterwards, when something breaks out, people tend to over-react to the risks by moving out of the investment at the wrong time (when prices are low) or trying to pin the blame on somebody. First, decide which asset categories you want to invest in. The investment avenues are equity stocks, debt i.e. bonds and, to a limited extent, other investments such as gold and real estate. You may invest either directly i.e. purchase shares or bonds, or, do it through a vehicle such as mutual funds. Every investment avenue has its own worth, return potential and risk factors. You should understand these before you make the investment so that you know what you are getting into and will not be taken by surprise later on. If you are investing through an adviser, ask questions and understand the downside, i.e. potential correction such as the one happening in the equity market now. If you are managing investments yourself, you have to do the research and convince yourself about what you are getting into. [About] 30% correction in the equity market is not unheard of in history; the question is whether you are aware of it and mentally prepared for it. Defaults in bonds is a potential risk; what is happening over the last one-and-half years is on the higher side and unnerving investors. Once you decide which asset you want to invest in, decide how much to invest and into which category. Certain investments have a higher potential for uneven returns such as equity. If you have a longer period to stay invested in, you can cross over the volatile phases and reap the returns. It would be a wrong decision to exit from equity at this juncture, just because prices have come down. Rather, lower prices are a reason to buy more. The growth potential of the Indian economy remains the same, only that there is a dull phase till we come back from the lockdown. In assets such as equity, you should keep as much as you can for a long period of time, without worrying about day-to-day returns. For debt investments, which is preferably done through the mutual fund route, there are risks of volatility and default. You have to choose the fund category accordingly, so that you understand the risk-return profile of that fund. Your allocation to debt funds should be as much as you can keep for the appropriate period, which is less than equities. Gold, as an asset, does not produce anything; its value increases in times of uncertainty like war or a pandemic. Hence, the allocation of your funds to gold should be of a lower proportion. Your investments should be productive, not just depending on uncertainties to prolong. If you raise the concerns before making the investments, you can save yourself the hassles of agony on negative returns in a particular phase or defaults in debt, and sleep peacefully. The other aspect you have to take care of is the communication gap between you and your services provider. You are investing your hard-earned money and you have to be clear about what you are getting into. For this, you have to ask the relevant questions and convince yourself: why it is suitable for you; how long you have to stay invested; and what the potential for negative surprises is. The only reason to exit an investment prematurely is if the nature of the investment itself is changing, which is not the case now. (The author is founder, wiseinvestor.in )
3 May 16:47 • The Hindu • https://www.thehindu.com/business/think-before-making-your-investments-not-later/article31490973.eceRating: 0.30
ADNOC restarts operations at Ruwais oil refinery
3 May 15:42
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ADNOC restarts operations at Ruwais oil refinery
UAE – Mubasher: The spokesperson of Abu Dhabi National Oil Company (ADNOC) announced that the company has gradually relaunched operations at the Ruwais oil refinery complex, according to Reuters. The UAE's largest refinery with a capacity of 835,000 barrels per day was shut down at the beginning of 2020 due to maintenance works. "We are gradually restarting our refining operations in Ruwais following our planned maintenance programme," the spokesman told Reuters. Noteworthy to highlight, in February 2018, ADNOC announced that the company has been investing around $3.1 billion to upgrade its Ruwais oil refinery to enhance the flexibility of Murban grade’s production. Source: Mubasher Source: {{details.article.source}}
3 May 15:42 • english.mubasher.info • https://english.mubasher.info/news/3635835/ADNOC-restarts-operations-at-Ruwais-oil-refinery?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+en%2FTDWL%2Fnews+%28TDWL+News+English%29Rating: 1.94
UAE's ADNOC restarts Ruwais oil refinery after maintenance
DUBAI (Reuters) - Abu Dhabi National Oil Company (ADNOC) has begun a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown, a company spokesman said on Sunday. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said. "We are gradually restarting our refining operations in Ruwais following our planned maintenance programme," the spokesman told Reuters.
3 May 00:00 • Investing.com • https://www.investing.com/news/commodities-news/uaes-adnoc-restarts-ruwais-oil-refinery-after-maintenance-2158926Rating: 0.30
Jolly Plastic Industries case: Sebi imposes Rs 1.05 crore fine on 21 entities for fraudulent trading
3 May 09:38
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Jolly Plastic Industries case: Sebi imposes Rs 1.05 crore fine on 21 entities for fraudulent trading
During the probe, it was found that these entities were connected and indulged in manipulating the price of the scrip downwards through a complex web of accumulating and distributing shares in the off-market Sebi has imposed a total penalty of Rs 1.05 crore on 21 entities for executing fraudulent trading in the scrip of Jolly Plastic Industries Ltd. The regulator had conducted an investigation in the scrip of Jolly Plastic Industries Ltd between February 2012 and November 2014. During the probe, it was found that these entities were connected and indulged in manipulating the price of the scrip downwards through a complex web of accumulating and distributing shares in the off-market. Thereafter, executing market transactions among themselves at lower circuit filters price to bring down the price to facilitate certain entities to acquire shares at a lower price for various manipulative purposes. Besides, they contributed to negative LTP (last trading price) by executing trades at lower circuit price every day. The entities by trading amongst themselves below the LTP in the scrip manipulated and created a misleading appearance of trading in the scrip by such trade, the regulator noted. Hence, the entities by indulging in fraudulent trade practices have violated the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations. The regulator has levied a fine of Rs 5 lakh each on 21 entities -- Aavia Buildtech, Aavia Softech, Accurate Buildwell, Aglow Financial Services, Anchal Goel, Ashok Kumar Jain HUF, Ashvin Verma, Bluechip Fincap Serve, Capital Securities, Century Buildmart, Lalit Mohan Gupta, Laxmikant Gaggar, Kanchan Bastimal Jain, Mould Trading, Ocean Share Brokers, Poonam Mittal, Ram Kumar Goyal, Steady Capital Advisory Services, Sure Portfolio Services, Surya Medi Tech, and Usha Jaiswal. In a separate order, Sebi has imposed a fine of Rs 5 lakh on Sapna Dilip Bombaywala for fraudulent trading in the matter of Jolly Plastic Industries Ltd (JPIL). Separately, the regulator has imposed a penalty totalling Rs 15 lakh on auditor M V Damania & Co (currently known as DNV & Co) and its partner Bharat Jain for wrongly certifying that Paramount Printpackaging utilised the IPO proceeds as per the objects of the issue. They indulged in fraudulent trade practice by publishing such information that is not true and indulged in misleading advertisement as well as planted misleading news. By doing so, they have violated the provisions of PFUTP norms. Also, in another separate order, the regulator has levied a fine of Rs 5 lakh on Shashikant Keshavlal Shah for fraudulent trading in the matter of Well Pack Papers & Containers Ltd. Also Read: Coronavirus lockdown: 78% people want ecommerce sites to sell non-essential items too, shows survey Also Read: China mocks US' response to coronavirus in short animation 'Once Upon a Virus' Also Read: Major milestone! India conducts 1 million coronavirus tests
3 May 09:38 • Business Today • https://www.businesstoday.in/current/corporate/jolly-plastic-industries-case-sebi-imposes-rs-105-crore-fine-on-21-entities-for-fraudulent-trading/story/402739.htmlRating: 2.10
Sebi imposes total Rs 1.05 crore fine on 21 entities in Jolly Plastic Industries case
New Delhi: Sebi has imposed a total penalty of Rs 1.05 crore on 21 entities for executing fraudulent trading in the scrip of Jolly Plastic Industries Ltd. The regulator had conducted an investigation in the scrip of Jolly Plastic Industries Ltd between February 2012 and November 2014. During the probe, it was found that these entities were connected to each other and indulged in manipulating the price of the scrip downwards through a complex web of accumulating and distributing shares in the off-market. Thereafter, executing market transactions among themselves at lower circuit filters price in order to bring down the price to facilitate certain entities to acquire shares at lower price for various manipulative purposes. Besides, they contributed to negative LTP (last trading price) by executing trades at lower circuit price every day. The entities by trading amongst themselves below the LTP in the scrip manipulated and created a misleading appearance of trading in the scrip by such trade, the regulator noted. Hence, the entities by indulging in fraudulent trade practices have violated the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations. The regulator has levied a fine of Rs 5 lakh each on 21 entities -- Aavia Buildtech, Aavia Softech, Accurate Buildwell, Aglow Financial Services, Anchal Goel , Ashok Kumar Jain HUF, Ashvin Verma, Bluechip Fincap Serve, Capital Securities, Century Buildmart, Lalit Mohan Gupta , Laxmikant Gaggar, Kanchan Bastimal Jain, Mould Trading, Ocean Share Brokers, Poonam Mittal, Ram Kumar Goyal, Steady Capital Advisory Services, Sure Portfolio Services, Surya Medi Tech, and Usha Jaiswal. In a separate order, Sebi has imposed a fine of Rs 5 lakh on Sapna Dilip Bombaywala for fraudulent trading in the matter of Jolly Plastic Industries Ltd (JPIL). Separately, the regulator has imposed a penalty totalling Rs 15 lakh on auditor M V Damania & Co (currently known as DNV & Co) and its partner Bharat Jain for wrongly certifying that Paramount Printpackaging utilised the IPO proceeds as per the objects of the issue. They indulged in fraudulent trade practice by publishing such information that is not true and indulged in misleading advertisement as well as planted misleading news. By doing so, they have violated the provisions of PFUTP norms. Also, in another separate order, the regulator has levied a fine of Rs 5 lakh on Shashikant Keshavlal Shah for fraudulent trading in the matter of Well Pack Papers & Containers Ltd.
3 May 07:47 • The Economic Times • https://economictimes.indiatimes.com/markets/stocks/news/sebi-imposes-total-rs-1-05-crore-fine-on-21-entities-in-jolly-plastic-industries-case/articleshow/75515563.cmsRating: 0.30
BoB NPAs surge six-fold, Indian Bank sees four-times rise in 6 years: RTI
3 May 08:24
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BoB NPAs surge six-fold, Indian Bank sees four-times rise in 6 years: RTI
Non-performing assets of Bank of Baroda soared more than six-fold to Rs 73,140 crore, while those of Indian Bank surged four-times to Rs 32,561.26 crore in six years, according to a Right to Information reply. The NPAs of Bank of Baroda (BoB) rose from Rs 11,876 crore at March-end 2014 to Rs 73,140 crore at December-end 2019, the RTI reply showed. The number of NPA accounts rose from 2,08,035 as of March 31, 2014, to 6,17,306 as of December 2019. The NPAs of Indian Bank surged from Rs 8,068.05 crore as on March 31, 2014, to Rs 32,561.26 crore as on March 31, 2020. The NPA accounts rose to 5,64,816 as on March 31, 2020, from 2,48,921 as on March 31, 2014, according to reply to Right to Information (RTI) queries on a number of NPA accounts and the total amount filed by Kota-based activist Sujeet Swami. ALSO READ: Reliance to produce new gas from D6 by June end; to cost $2.2 per unit The RTI data also showed the state-run lenders earned a huge amount from SMS alert service fees, minimum balance charges, locker charges, debit-credit cards service charges, outward, inward, ledger follows charges, among others. According to the reply, Bank of Baroda collected Rs 107.7 crore through SMS alert fee during April 1, 2018 to February 29, 2020. Indian Bank collected around Rs 21 crore through the SMS service fee during the same period. Swami said, "My motive to file RTI was to unearth NPA amounts of two national banks between 2014 to 2020." He said he has sought same information from State Bank of India and Punjab National Bank but they are yet to provide the data.
3 May 08:24 • Business-Standard • https://www.business-standard.com/article/finance/npas-of-bob-surge-six-fold-indian-bank-sees-four-times-rise-in-6-yrs-rti-120050300393_1.htmlRating: 0.30
NPAs of BoB, Indian Bank surge multi-fold in 6 years: RTI data
Non-performing assets of Bank of Baroda soared more than six-fold to Rs 73,140 crore while those of Indian Bank surged four-times to Rs 32,561.26 crore in six years, according to a Right to Information reply. The NPA of Bank of Baroda (BoB) rose from Rs 11,876 crore at March-end 2014 to Rs 73,140 crore at December-end 2019, the RTI reply showed. The number of NPA accounts rose from 2,08,035 as on March 31, 2014, to 6,17,306 as of December 2019. The NPAs of Indian Bank surged from Rs 8,068.05 crore as on March 31, 2014, to Rs 32,561.26 crore as on March 31, 2020. The NPA accounts rose to 5,64,816 as on March 31, 2020, from 2,48,921 as on March 31, 2014, according to reply to Right to Information (RTI) queries on number of NPA accounts and the total amount filed by Kota-based activist Sujeet Swami. The RTI data also showed the state-run lenders earned huge amount from SMS alert service fees, minimum balance charges, locker charges, debit-credit cards service charges, outward, inward, ledger follow charges, among others. According to the reply, Bank of Baroda collected Rs 107.7 crore through SMS alert fee during April 1, 2018 to February 29, 2020. Indian Bank collected around Rs 21 crore through SMS service fee during the same period. Swami said, “My motive to file RTI was to unearth NPA amounts of two national banks between 2014 to 2020.” He said he has sought same information from State Bank of India and Punjab National Bank but they are yet to provide the data.
3 May 07:47 • The Financial Express • https://www.financialexpress.com/industry/banking-finance/npas-of-bob-indian-bank-surge-multi-fold-in-6-years-rti-data/1946632/Rating: 2.37
Indonesia's Tokopedia probes alleged data leak of 91 million users
3 May 06:43
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2 articles
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Indonesia's Tokopedia probes alleged data leak of 91 million users
SINGAPORE (Reuters) - Tokopedia, Indonesia’s largest e-commerce platform, said it was investigating an attempted hack and claims that the details of millions of its users had been leaked online. “We found that there had been an attempt to steal data from Tokopedia users,” a spokesman for the company said in a statement late Saturday. “However, Tokopedia ensures that crucial information such as passwords remains successfully protected behind encryption.” “At this moment, we continue to investigate further into this matter and there is no additional information that we can share,” the statement added. Data breach monitoring firm Under the Breach published a Twitter post on Saturday showing screenshots from an unnamed individual who claimed he had acquired the personal details of 15 million Tokopedia users during a March 2020 hack on the e-commerce site. According to the screenshots, which show names, emails and birthdays, the hacker alleges he or she is in possession of a much bigger user database and asks for assistance to “crack” users’ passwords. Under the Breach, which monitors cyber crime, said on Sunday the hacker had updated the post to offer the details of 91 million users for “$5,000 on the Darknet”. The firm shared a screenshot of the hacker’s proposed offer posted online. Backed by $2 billion in funding from investors including SoftBank Group Corp’s Vision Fund and Alibaba, Tokopedia, whose founder and CEO William Tanuwijaya is one of the country’s most prominent tech entrepreneurs, claims more than 90 million monthly active users. A Tokopedia spokesman declined to comment directly on the hacker’s claims, but told Reuters on Sunday that “all transactions with all payments methods at Tokopedia ... remain secure.”
3 May 06:43 • Reuters • https://www.reuters.com/article/us-tokopedia-cyber-idUSKBN22E0Q2Rating: 4.04
Indonesia's Tokopedia probes alleged data leak of 91 mln users
SINGAPORE — Tokopedia, Indonesia’s largest e-commerce platform, said it was investigating an attempted hack and claims that the details of millions of its users had been leaked online. “We found that there had been an attempt to steal data from Tokopedia users,” a spokesman for the company said in a statement late Saturday. “However, Tokopedia ensures that crucial information such as passwords remains successfully protected behind encryption.” “At this moment, we continue to investigate further into this matter and there is no additional information that we can share,” the statement added. Data breach monitoring firm Under the Breach published a Twitter post on Saturday showing screenshots from an unnamed individual who claimed he had acquired the personal details of 15 million Tokopedia users during a March 2020 hack on the e-commerce site. According to the screenshots, which show names, emails and birthdays, the hacker alleges he or she is in possession of a much bigger user database and asks for assistance to “crack” users’ passwords. Under the Breach, which monitors cyber crime, said on Sunday the hacker had updated the post to offer the details of 91 million users for “$5,000 on the Darknet.” The firm shared a screenshot of the hacker’s proposed offer posted online. Backed by $2 billion in funding from investors including SoftBank Group Corp’s Vision Fund and Alibaba, Tokopedia, whose founder and CEO William Tanuwijaya is one of the country’s most prominent tech entrepreneurs, claims more than 90 million monthly active users. Tokopedia did not immediately respond to requests for comment on the hacker’s new claims. A spokesman for the firm declined to comment on Saturday on the original screenshots. (Reporting by Fanny Potkin Editing by David Holmes and Michael Perry)
3 May 04:26 • Financial Post • https://business.financialpost.com/pmn/business-pmn/indonesias-tokopedia-probes-alleged-data-leak-of-91-mln-usersRating: 0.94
Why the European stock market’s losing to the US in this rally
3 May 11:38
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Why the European stock market’s losing to the US in this rally
Once again, when stocks rally, it’s Europe that’s left behind. With the S&P 500 about 30% above its March lows, the Stoxx 600 index has lagged behind with a 21% bounce, despite having fallen more than the U.S. in the global selloff sparked by the coronavirus pandemic. The reason? For starters, there’s the market’s makeup: Europe has a large presence of cyclical sectors, such as banks and energy, which have underperformed during this crisis. On top of that, the region has led the recent wave of dividend cuts by major companies. Investors have also been disappointed by the scale of fiscal and monetary support measures as Europe faces its deepest recession in living memory. The rebound in stocks around the world has been driven by companies with reliable earnings growth and solid balance sheets as investors seek safe havens amid slowdown fears. The U.S. technology sector has emerged as one of the biggest beneficiaries of this trend, with the five biggest names such as Facebook Inc. and Amazon.com Inc. constituting 18% of the S&P 500’s market capitalization, more than double the value of the U.K. FTSE 100 Index and five times larger than Germany’s DAX, according to Sanford C. Bernstein data. “In order for Europe to take the lead regionally, we really need a rotation into more cyclical and value areas of the market,” Nathan Thooft, Manulife Investment Management’s head of global asset allocation, said by email. “I am not convinced we have the necessary level of economic clarity for that to happen.” And although Thooft, who is overweight U.S. equities, sees “decent value” in European stocks in the longer term, he says the market lacks a catalyst. Earnings in the Stoxx 600 companies are projected to slump 23% in 2020, compared with a 19% contraction in the S&P 500, Bloomberg data show. The euro-area economy could shrink as much as 12% this year and fail to return to its pre-coronavirus size until the end of 2022, the European Central Bank says. While the ECB and major European economies, including Germany, the U.K. and Italy, have been stepping up support measures to help consumers and companies weather the slump, investors feel that the U.S. has acted swifter and pumped more money into the system. “The fiscal response in the U.S. has been so big relative to everybody, that’s a big piece of how the recovery is going to look in terms of who comes out stronger on the back of this,” Jack Janasiewicz, portfolio strategist and manager at Natixis Investment Managers, said by phone. “And that’s why you’ll continue to see the U.S. outperform.” Peter Oppenheimer, chief global equity strategist at Goldman Sachs Group Inc., agrees with this sentiment, but at the same time said on Bloomberg TV that once market players get more confident about “a genuinely strong” recovery in activity, European stocks can outperform. GRANOLASThe Goldman team this week released a list of European companies, dubbed GRANOLAS and which include GlaxoSmithKline Plc, Roche Holding AG and ASML Holding NV, that can beat the market during the next cycle thanks to their strong balance sheets, stable growth and good dividend yields. The strategists, including Guillaume Jaisson, point out that while 20 years ago Europe’s ten biggest companies were telecoms and oil firms, these along with banks are now absent from the top stocks by market value and the tech sector has grown to exceed energy, rising closer in size to the banking subgroup. Still, the European stock market has been held back by last month’s historic slump in the oil price, which also weighed on mining shares. And the region’s banks continue to be hurt by low interest rates and increased concerns about corporate defaults. European firms have been much swifter in slashing or suspending dividends than their U.S. counterparts, with at least 189 companies in Europe’s Stoxx 600 benchmark having canceled or postponed payouts. Part of the reason is that the ECB has recommended that lenders delay dividends in response to unprecedented support measures while certain governments, like France, have made it a clause in receiving state aid. “Most investors entering Europe are chasing dividends,” Roland Kaloyan, head of European equity strategy at Societe Generale SA, said by phone. “And now, Europe is losing its key appeal because of all the dividend cuts over the last several weeks. Yes, it’s great news for the bond holders, but not for the shareholders.” SocGen is overweight credit and underweight stocks in the region. Investor flows also show little love toward European stocks, even though the Stoxx 600 gauge just had its biggest monthly bounce since 2015. The region’s stock funds had their largest outflows in six weeks of $2.7 billion in the week through April 29, according to Bank of America Corp. data, adding to a year-to-date toll of about $24 billion. “The U.S. will likely lead the rest of the world until we start to see expectations and signs that global growth differentials begin to narrow in favor of the rest of the world,” Manulife’s Thooft said. © 2020 Bloomberg L.P.
3 May 11:38 • Moneyweb • https://www.moneyweb.co.za/news/markets/why-the-european-stock-markets-losing-to-the-us-in-this-rally/Rating: 1.42
Here's Why European Stock Market Is Losing to U.S. in This Rally
(Bloomberg) — Once again, when stocks rally, it’s Europe that’s left behind. With the S&P 500 about 30% above its March lows, the Stoxx 600 index has lagged behind with a 21% bounce, despite having fallen more than the U.S. in the global selloff sparked by the coronavirus pandemic. The reason? For starters, there’s the market’s makeup: Europe has a large presence of cyclical sectors, such as banks and energy, which have underperformed during this crisis. On top of that, the region has led the recent wave of dividend cuts by major companies. Investors have also been disappointed by the scale of fiscal and monetary support measures as Europe faces its deepest recession in living memory. The rebound in stocks around the world has been driven by companies with reliable earnings growth and solid balance sheets as investors seek safe havens amid slowdown fears. The U.S. technology sector has emerged as one of the biggest beneficiaries of this trend, with the five biggest names such as Facebook Inc. and Amazon.com Inc. constituting 18% of the S&P 500’s market capitalization, more than double the value of the U.K. FTSE 100 Index and five times larger than Germany’s DAX, according to Sanford C. Bernstein data. “In order for Europe to take the lead regionally, we really need a rotation into more cyclical and value areas of the market,” Nathan Thooft, Manulife Investment Management’s head of global asset allocation, said by email. “I am not convinced we have the necessary level of economic clarity for that to happen.” And although Thooft, who is overweight U.S. equities, sees “decent value” in European stocks in the longer term, he says the market lacks a catalyst. Earnings in the Stoxx 600 companies are projected to slump 23% in 2020, compared with a 19% contraction in the S&P 500, Bloomberg data show. The euro-area economy could shrink as much as 12% this year and fail to return to its pre-coronavirus size until the end of 2022, the European Central Bank says. While the ECB and major European economies, including Germany, the U.K. and Italy, have been stepping up support measures to help consumers and companies weather the slump, investors feel that the U.S. has acted swifter and pumped more money into the system. “The fiscal response in the U.S. has been so big relative to everybody, that’s a big piece of how the recovery is going to look in terms of who comes out stronger on the back of this,” Jack Janasiewicz, portfolio strategist and manager at Natixis Investment Managers, said by phone. “And that’s why you’ll continue to see the U.S. outperform.” Peter Oppenheimer, chief global equity strategist at Goldman Sachs Group Inc., agrees with this sentiment, but at the same time said on Bloomberg TV that once market players get more confident about “a genuinely strong” recovery in activity, European stocks can outperform. GRANOLAS The Goldman team this week released a list of European companies, dubbed GRANOLAS and which include GlaxoSmithKline Plc, Roche Holding AG and ASML Holding NV, that can beat the market during the next cycle thanks to their strong balance sheets, stable growth and good dividend yields. The strategists, including Guillaume Jaisson, point out that while 20 years ago Europe’s ten biggest companies were telecoms and oil firms, these along with banks are now absent from the top stocks by market value and the tech sector has grown to exceed energy, rising closer in size to the banking subgroup. Still, the European stock market has been held back by last month’s historic slump in the oil price, which also weighed on mining shares. And the region’s banks continue to be hurt by low interest rates and increased concerns about corporate defaults. European firms have been much swifter in slashing or suspending dividends than their U.S. counterparts, with at least 189 companies in Europe’s Stoxx 600 benchmark having canceled or postponed payouts. Part of the reason is that the ECB has recommended that lenders delay dividends in response to unprecedented support measures while certain governments, like France, have made it a clause in receiving state aid. “Most investors entering Europe are chasing dividends,” Roland Kaloyan, head of European equity strategy at Societe Generale SA, said by phone. “And now, Europe is losing its key appeal because of all the dividend cuts over the last several weeks. Yes, it’s great news for the bond holders, but not for the shareholders.” SocGen is overweight credit and underweight stocks in the region. Investor flows also show little love toward European stocks, even though the Stoxx 600 gauge just had its biggest monthly bounce since 2015. The region’s stock funds had their largest outflows in six weeks of $2.7 billion in the week through April 29, according to Bank of America Corp. data, adding to a year-to-date toll of about $24 billion. “The U.S. will likely lead the rest of the world until we start to see expectations and signs that global growth differentials begin to narrow in favor of the rest of the world,” Manulife’s Thooft said. ©2020 Bloomberg L.P. Bloomberg.com
3 May 05:00 • Financial Post • https://business.financialpost.com/pmn/business-pmn/heres-why-european-stock-market-is-losing-to-u-s-in-this-rallyRating: 0.94
Growth in craft beer sector slows, study suggests
3 May 23:03
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Growth in craft beer sector slows, study suggests
The number of breweries has stalled for the second year in a row as growth in the craft beer sector slows after a period of explosive growth, a new study suggests. Accountancy group UHY Hacker Young said the total had fallen by one over the last year to 2,273 amid increased competition from multinational brewers, and a trend away from drinking beer among younger generations. Multinationals have increased their market share by launching their own craft beer varieties, as well as acquiring many of the emerging independent craft breweries, said the report. UHY Hacker Young predicted the craft beer market may be reaching “saturation point” among its existing core customer market. James Simmonds of UHY Hacker Young, said: “Stalling growth in the number of UK breweries is not the whole story, with the UK remaining one of the world leaders in craft beer. “In order to help the sector bounce back as quickly as possible from coronavirus, the Government should consider expanding the Small Brewer Relief to include a wider group of breweries. “An increase in the level of business rate relief for brewers and pubs would also be welcome. “Brewers should make use of this support available to them to scale up their online platforms, in order to increase their online sales directly to customers. “Consumer habits are likely to change even after the lockdown has ended, and brewers need to be able to capitalise on where consumers are now looking to buy their goods.”
3 May 23:03 • ITV News • https://www.itv.com/news/2020-05-04/growth-in-craft-beer-sector-slows-study-suggests/Rating: 0.88
Growth in craft beer sector slows, study suggests
Increased competition from multinational brewers and a trend away from drinking beer among younger generations to blame, says report. The number of breweries has stalled for the second year in a row as growth in the craft beer sector slows after a period of explosive growth, a new study suggests. Accountancy group UHY Hacker Young said the total had fallen by one over the last year to 2,273 amid increased competition from multinational brewers, and a trend away from drinking beer among younger generations. Multinationals have increased their market share by launching their own craft beer varieties, as well as acquiring many of the emerging independent craft breweries, said the report. UHY Hacker Young predicted the craft beer market may be reaching “saturation point” among its existing core customer market. James Simmonds of UHY Hacker Young, said: “Stalling growth in the number of UK breweries is not the whole story, with the UK remaining one of the world leaders in craft beer. “In order to help the sector bounce back as quickly as possible from coronavirus, the Government should consider expanding the Small Brewer Relief to include a wider group of breweries. “An increase in the level of business rate relief for brewers and pubs would also be welcome. “Brewers should make use of this support available to them to scale up their online platforms, in order to increase their online sales directly to customers. “Consumer habits are likely to change even after the lockdown has ended, and brewers need to be able to capitalise on where consumers are now looking to buy their goods.”
3 May 23:03 • Shropshire Star • https://www.shropshirestar.com/news/uk-news/2020/05/03/growth-in-craft-beer-sector-slows-study-suggests/Rating: 0.30
Terminus' Technologies Going Overseas, Bringing the Light of Intelligence to Cities
3 May 07:57
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Terminus' Technologies Going Overseas, Bringing the Light of Intelligence to Cities
BEIJING, May 3, 2020 /PRNewswire/ -- The current wave of globalization is fuelled by new ICT technologies such as 5G, AI, Internet of things and big data. The development of cutting-edge technologies is not only a reflection of the concrete strength of a country and a region, but also an increasingly critical production factor for promoting social and economic development. In particular, given the current COVID-19 pandemic across the globe, technologies have been playing a vital role in preventing and controlling its spread. Terminus is an epitome of China's new tech companies that exports its technologies to battle against the pandemic. As the leading company of the "new technology" sector of China Everbright Group and the core strategic technology platform of China Everbright Ltd (CEL), Terminus has been fully applying its AI and Internet of Things technologies in China, and receiving positive feedback from the market. Meanwhile, more acknowledgment from abroad are saying high of Terminus' corporate responsibility as an international company. Blueprint for AI CITY What Terminus has been doing is to build AI CITY one after another around the world, and gather numerous "points of aggregation" of AI CITY into a complete AI CITY "plane" through the iteration of AIOT technologies. From point to plane, Terminus will be able to deploy its global network of AI CITY. In the Middle East, by cooperating on projects and inviting investment, the United Arab Emirates is bringing the world's leading tech enterprises into the country, hoping to go smart and be powerful in the future with the help of the imported advanced productivity. Terminus is one of the leading tech companies on top of its list. By far, Terminus has reached an agreement with Injazat Data System on the smart city project. The cooperation will focus on smart city, energy, intelligent security among other fields, enabling the two sides to jointly explore the blue ocean market in the UAE and the Middle East. Look deeper, you will find this business partner of Terminus is supported by Mubadala Development Company, the world's largest sovereign investment fund. Such a cooperation is the best illustration of a company's tech strength and its ability to go global. ▲ Terminus and Injazat Data System reaching a consensus on smart city cooperation and signing the project agreement However, this is only a glance at Terminus' market reach and its AI CITY deployment in the UAE. Last year, Terminus signed a cooperation agreement with District 2020 Dubai Expo Special Zone, under which Terminus will provide AIOT solutions in intelligent security, energy, smart city, etc. In addition, Terminus will set up an AIOT industrial R&D center, as well as its incubators and accelerators, in District 2020 Dubai Expo Special Zone to fully utilise local AIOT industrial resources and expand its industrial layout. ▲ Terminus signing a cooperation agreement with District 2020 Dubai Expo Special Zone In April this year, China Everbright Group AI Industrial Base officially started its construction in Chongqing, a metropolis in southwest China. It is the first world-class AI CITY created by Terminus and China Everbright. It can be said that Terminus has sketched its grand vision for global AI CITY in Chongqing, and undoubtedly, the multiple AI CITY projects in the UAE are the early stage deployment of the company's global network. Fighting the pandemic with technologies has expanded the company's global reach. At the critical stage of the global fight against coronavirus, Terminus' Huolei Initiative has entered its 100th day. It has been upgraded from a simple aid initiative to a two-way communication and assistance platform for the international community to prevent and control the pandemic. Terminus' successful experience in fighting the pandemic with technologies has become a "hard currency" in the overseas market. Not only has it received thumb-up from the Minister of State and formed an alliance with Qatar Airways, but also implied a close tie with Qatar to promote high-quality development. This also brings Terminus an increasing attention from the international community. As early as the beginning of April, pandemic control supplies were offered by Terminus to the Qatar authorities. By collaborating with Qatar Airways, Terminus was able to send tech products for pandemic control to the country, including back-end control system for pandemic control, all-in-one portrait recognition and thermometer, early warning instrument with thermal imaging temperature screening, thermal imaging thermometer, etc. They were immediately sent to government bodies and ports of Qatar upon arrival, bringing great convenience to the frontline battle for fighting with the coronavirus. His Excellency Akbar Al Baker, Minister of State of Qatar, Secretary General of the Qatar National Tourism Board, and CEO of Qatar Airways Group, wrote a special letter to Victor Ai, CEO of Terminus. Not only did he delivered the sincere gratitude, but also expressed his commitment to fight against the coronavirus together with Terminus, which as he described, was a precious ally. On 20th last month, His Excellency Ahmad Mohammed A Y Al-Sayed, Minister of State of Qatar and Chairman of the Qatar Free Zone, also sent a letter to Victor Ai, showing Qatar's deep solicitude for the Chinese people in fighting the pandemic, and strongly affirming the heroic performance of Terminus in its Huolei Initiative. As the world's leading provider of intelligent scene solutions, Terminus has made substantial achievements in AI, data service, smart city construction and other fields. As early as last November, on his trip to China for the 2nd China International Import Expo, Ahmad Sayed, Minister of State of Qatar, also visited Terminus' office in Shanghai with the company of Mohamed Al-Dehaimi, Ambassador of Qatar to China. Back then in the office, the Minister of State said that he had not thought that China's tech companies were far ahead of other countries in intelligent technologies, and that Qatar was willing to conduct in-depth cooperation with Terminus in the related industries. At this special moment, Terminus has taken concrete actions to expand the tech cooperation between China and other countries to minimize the impact of the pandemic and seek new opportunities. The flourishing project launches at home and abroad have shown the world the great resilience of China's economy. Behind Terminus' AI CITY, it lies the truth that China is bringing new opportunities to and other countries in the form of "new infrastructure", and adding confidence to the stable development of global economy. View original content to download multimedia:http://www.prnewswire.com/news-releases/terminus-technologies-going-overseas-bringing-the-light-of-intelligence-to-cities-301051492.html SOURCE Terminus Technologies
3 May 07:57 • finanzen.at • https://www.finanzen.at/nachrichten/aktien/terminus-technologies-going-overseas-bringing-the-light-of-intelligence-to-cities-1029157209Rating: 0.61
Terminus' Technologies Going Overseas, Bringing the Light of Intelligence to Cities
BEIJING, May 3, 2020 /PRNewswire/ -- The current wave of globalization is fuelled by new ICT technologies such as 5G, AI, Internet of things and big data. The development of cutting-edge technologies is not only a reflection of the concrete strength of a country and a region, but also an increasingly critical production factor for promoting social and economic development. In particular, given the current COVID-19 pandemic across the globe, technologies have been playing a vital role in preventing and controlling its spread. Terminus is an epitome of China's new tech companies that exports its technologies to battle against the pandemic. As the leading company of the "new technology" sector of China Everbright Group and the core strategic technology platform of China Everbright Ltd (CEL), Terminus has been fully applying its AI and Internet of Things technologies in China, and receiving positive feedback from the market. Meanwhile, more acknowledgment from abroad are saying high of Terminus' corporate responsibility as an international company. Blueprint for AI CITY What Terminus has been doing is to build AI CITY one after another around the world, and gather numerous "points of aggregation" of AI CITY into a complete AI CITY "plane" through the iteration of AIOT technologies. From point to plane, Terminus will be able to deploy its global network of AI CITY. In the Middle East, by cooperating on projects and inviting investment, the United Arab Emirates is bringing the world's leading tech enterprises into the country, hoping to go smart and be powerful in the future with the help of the imported advanced productivity. Terminus is one of the leading tech companies on top of its list. By far, Terminus has reached an agreement with Injazat Data System on the smart city project. The cooperation will focus on smart city, energy, intelligent security among other fields, enabling the two sides to jointly explore the blue ocean market in the UAE and the Middle East. Look deeper, you will find this business partner of Terminus is supported by Mubadala Development Company, the world's largest sovereign investment fund. Such a cooperation is the best illustration of a company's tech strength and its ability to go global. ▲ Terminus and Injazat Data System reaching a consensus on smart city cooperation and signing the project agreement However, this is only a glance at Terminus' market reach and its AI CITY deployment in the UAE. Last year, Terminus signed a cooperation agreement with District 2020 Dubai Expo Special Zone, under which Terminus will provide AIOT solutions in intelligent security, energy, smart city, etc. In addition, Terminus will set up an AIOT industrial R&D center, as well as its incubators and accelerators, in District 2020 Dubai Expo Special Zone to fully utilise local AIOT industrial resources and expand its industrial layout. ▲ Terminus signing a cooperation agreement with District 2020 Dubai Expo Special Zone In April this year, China Everbright Group AI Industrial Base officially started its construction in Chongqing, a metropolis in southwest China. It is the first world-class AI CITY created by Terminus and China Everbright. It can be said that Terminus has sketched its grand vision for global AI CITY in Chongqing, and undoubtedly, the multiple AI CITY projects in the UAE are the early stage deployment of the company's global network. Fighting the pandemic with technologies has expanded the company's global reach. At the critical stage of the global fight against coronavirus, Terminus' Huolei Initiative has entered its 100th day. It has been upgraded from a simple aid initiative to a two-way communication and assistance platform for the international community to prevent and control the pandemic. Terminus' successful experience in fighting the pandemic with technologies has become a "hard currency" in the overseas market. Not only has it received thumb-up from the Minister of State and formed an alliance with Qatar Airways, but also implied a close tie with Qatar to promote high-quality development. This also brings Terminus an increasing attention from the international community. As early as the beginning of April, pandemic control supplies were offered by Terminus to the Qatar authorities. By collaborating with Qatar Airways, Terminus was able to send tech products for pandemic control to the country, including back-end control system for pandemic control, all-in-one portrait recognition and thermometer, early warning instrument with thermal imaging temperature screening, thermal imaging thermometer, etc. They were immediately sent to government bodies and ports of Qatar upon arrival, bringing great convenience to the frontline battle for fighting with the coronavirus. His Excellency Akbar Al Baker, Minister of State of Qatar, Secretary General of the Qatar National Tourism Board, and CEO of Qatar Airways Group, wrote a special letter to Victor Ai, CEO of Terminus. Not only did he delivered the sincere gratitude, but also expressed his commitment to fight against the coronavirus together with Terminus, which as he described, was a precious ally. On 20th last month, His Excellency Ahmad Mohammed A Y Al-Sayed, Minister of State of Qatar and Chairman of the Qatar Free Zone, also sent a letter to Victor Ai, showing Qatar's deep solicitude for the Chinese people in fighting the pandemic, and strongly affirming the heroic performance of Terminus in its Huolei Initiative. As the world's leading provider of intelligent scene solutions, Terminus has made substantial achievements in AI, data service, smart city construction and other fields. As early as last November, on his trip to China for the 2nd China International Import Expo, Ahmad Sayed, Minister of State of Qatar, also visited Terminus' office in Shanghai with the company of Mohamed Al-Dehaimi, Ambassador of Qatar to China. Back then in the office, the Minister of State said that he had not thought that China's tech companies were far ahead of other countries in intelligent technologies, and that Qatar was willing to conduct in-depth cooperation with Terminus in the related industries. At this special moment, Terminus has taken concrete actions to expand the tech cooperation between China and other countries to minimize the impact of the pandemic and seek new opportunities. The flourishing project launches at home and abroad have shown the world the great resilience of China's economy. Behind Terminus' AI CITY, it lies the truth that China is bringing new opportunities to and other countries in the form of "new infrastructure", and adding confidence to the stable development of global economy. View original content to download multimedia:http://www.prnewswire.com/news-releases/terminus-technologies-going-overseas-bringing-the-light-of-intelligence-to-cities-301051492.html SOURCE Terminus Technologies
3 May 07:57 • finanzen.ch • https://www.finanzen.ch/nachrichten/aktien/terminus-technologies-going-overseas-bringing-the-light-of-intelligence-to-cities-1029157209Rating: 0.95
US manufacturing activity falls to 11-year low amid COVID-19 fallout
3 May 17:30
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2 articles
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US manufacturing activity falls to 11-year low amid COVID-19 fallout
Washington: Economic activity in the US manufacturing sector plunged to an 11-year low in April amid mounting COVID-19 fallout and weak global energy markets, the Institute for Supply Management (ISM) reported.The Purchasing Managers' Index (PMI) fell by 7.6 percentage points to 41.5 per cent in April, the lowest since April 2009. Any reading below 50 per cent indicates the manufacturing sector is generally contracting.Of the 18 manufacturing industries, only paper products and food, beverage and tobacco products reported growth, according to the ISM."The PMI indicates a level of manufacturing-sector contraction not seen since April 2009, with a strongly negative trajectory," Timothy Fiore, chair of the ISM's manufacturing business survey committee, said in a statement. "The coronavirus pandemic and global energy market weakness continue to impact all manufacturing sectors for the second straight month," Fiore said."Our refinery is losing money making gasoline due to the falling demand," said an executive from the industry of petroleum & coal products, according to the ISM.The manufacturing contraction came after the Commerce Department reported Wednesday that US real gross domestic product in the first quarter contracted at an annual rate of 4.8 per cent amid COVID-19 fallout, the biggest quarterly decline since the 2008 financial crisis.
3 May 17:30 • Times of Oman • https://timesofoman.com/article/3014491/business/us-manufacturing-activity-falls-to-11-year-low-amid-covid-19-falloutRating: 1.06
Manufacturing Sector Plummets In April
Summary By Robert Hughes The Institute for Supply Management's Manufacturing Purchasing Managers' Index fell to a 41.5 percent reading in April, down from 49.1 percent in March. The April result is the second month in a row below the neutral 50 threshold (see top chart). Overall, the report notes, "Comments from the panel were strongly negative (three negative comments for every one positive comment) regarding the near-term outlook, with sentiment clearly impacted by the coronavirus (COVID-19) pandemic and continuing energy market recession. The PMI indicates a level of manufacturing-sector contraction not seen since April 2009, with a strongly negative trajectory." Many of the key components of the Purchasing Managers' Index have already fallen to levels not seen since the lows of the Great Recession in 2008-09. The New Orders Index came in at 27.1 percent, down from 42.2 percent in March and the lowest since December 2008 (see top chart). The results suggest production as measured by the Federal Reserve's industrial production for manufacturing index may show steep declines in the coming months. The New Export Orders Index came in at 35.3 percent in April, down 11.3 percentage points from a 46.6 percent result in March. The production index was at 27.5 percent in April, down from 47.7 percent in March and a new record low since the survey began in 1948 (see bottom chart). The backlog-of-orders index came in at 37.8 percent in April, down from 45.9 percent in March and suggesting a second month of decline in backlogs. The employment index fell 16.3 percentage points to 27.5 percent in April versus 43.8 percent in March, and the lowest reading since June 1949 (see bottom chart). The move farther below neutral suggests employment in manufacturing likely fell sharply in April. The Bureau of Labor Statistics' Employment Situation report for April is due out on Friday, May 8. Consensus expectations are for a shockingly large loss of more than 22 million nonfarm-payroll jobs including a drop of 1.6 million jobs in manufacturing. The unemployment rate is expected to jump to 16.1 percent from 4.4 percent in March. Supplier deliveries, a measure of delivery times from suppliers to manufacturers, jumped for the third consecutive month, reaching 76.0 percent, up from 65.0 percent in March. April was the highest reading since April 1974. Slower supplier deliveries are usually consistent with stronger manufacturing activity. However, the slower deliveries in April were more a result of supply chain and logistical constraints. According to the report, "Suppliers continue to struggle to deliver, at a much stronger rate compared to March. The COVID-19 pandemic was the primary cause of global and domestic supply chain disruptions, with suppliers impacted by plant shutdowns, transportation challenges and the continuing difficulty in importing parts and components." The prices index fell 2.1 percentage points to 35.3 percent in April from 37.4 percent in March, and the lowest since January 2016. Weaker prices were reported for scrap steel, other steels, aluminum, copper, corn, distillates and other energy sources. Customer inventories in April are still considered too low, with the index remaining below 50 at 48.8 percent versus 43.4 percent in the prior month (index results below 50 indicate customers' inventories are too low). The index has been below 50 for 43 consecutive months. Original post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
2 May 15:05 • Seeking Alpha • https://seekingalpha.com/article/4342319-manufacturing-sector-plummets-in-april?source=feed_all_articlesRating: 0.30
Bitcoin May be Topping Out After Buyers Lost a Key Level
3 May 16:00
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2 articles
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Bitcoin May be Topping Out After Buyers Lost a Key Level
Bitcoin has entered what appears to be another bout of sideways trading within the upper-$8,000 region. This has come about after the crypto’s bulls made another attempt to propel it past the resistance that has been established throughout the lower-to-mid $9,000 region. The benchmark crypto’s recent price action has led analysts to note that it could be topping out, as the consecutive rejections it has posted throughout the past few days is a dire sign that greatly favors sellers. If the crypto confirms this possibility and begins declining lower, its first major support zone exists around $8,250. At the time of writing, Bitcoin is trading up marginally at its current price of $8,935, marking a notable decline from daily highs of $9,200 that were set yesterday afternoon. The crypto was able to post what appeared to be a sustained break above $9,000 yesterday afternoon, as buyers held BTC above this level for several hours before moving to test the resistance at $9,200. The visit to this level, however, sparked a sharp selloff that led it down to its strong support at $8,800, which has since been defended. One popular crypto trader spoke about this latest rejection in a recent tweet, explaining that it is now imperative that buyers continue defending the crypto’s point-of-control at $8,800. Image Courtesy of Bagsy Another popular pseudonymous trader recently explained that he believes BTC could be forming a local top as it fails to surmount its overhead resistance. Image Courtesy of Crypto Michael Because Bitcoin has broken below $9,000 in the time since this analysis was offered, it is a growing possibility that the crypto declines lower in the hours and days ahead.
3 May 16:00 • Bitcoinist.com • https://bitcoinist.com/bitcoin-may-be-topping-out-after-buyers-lost-a-key-level/Rating: 0.98
Bitcoin Falls Back Into The Upper-$8,000 Region
Bitcoin has entered what has all the earmarks of being another episode of sideways trading inside the upper-$8,000 area. This has come to to fruition after the cryptocurrency’s bulls made another attempt endeavor to drive it past the resistance that has been built up all through the lower-to-mid $9,000 region. The benchmark cryptocurrency’s recent value activity has driven experts to take note of that it could be topping out, as the consecutive dismissals it has posted all through the previous few days is a desperate sign that extraordinarily favors sellers. In case the cryptocurrency confirms this chance and starts declining lower, its first significant support zone exists around $8,250. At the hour of writing this post, Bitcoin is trading up hardly at its present price of $8,846, denoting an notable decay from daily highs of $9,200 that were set yesterday evening. The cryptocurrency had the option to present what showed up on be a continued break above $9,000 yesterday evening, as purchasers held Bitcoin (BTC) over this level for a few hours before moving to test the resistance at $9,200. The visit to this level, nonetheless, started a sharp selloff that drove it down to its solid support at $8,800, which has since been guarded. One well-known cryptocurrency trader talked about this most recent dismissal in a recent tweet, clarifying that it is presently imperative that buyers keep shielding the cryptocurrency’s point-of-control at $8,800. He said – Another mainstream pseudonymous trader recently clarified that he trusts that Bitcoin could be shaping a local top as it neglects to conquer its overhead resistance. He said – Since Bitcoin has broken underneath $9,000 in the time since this analysis was offered, it is developing chance that the cryptocurrency decreases lower in the hours and days ahead. Next Post
3 May 00:00 • BTC Wires • https://www.btcwires.com/c-buzz/bitcoin-falls-back-into-the-upper-8000-region/Rating: 0.30
Glencore's Zambia subsidiary to resume mining operations temporarily
3 May 14:08
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Glencore's Zambia subsidiary to resume mining operations temporarily
LUSAKA — Glencore’s Zambian subsidiary Mopani Copper Mines (MCM) will resume mining operations for 90 days but still expects to go ahead with its initial plan to place its mining operations on care and maintenance, the local firm said on Sunday. Glencore’s original announcement that it planned to put MCM under “care and maintenance” sparked a backlash from Zambia’s government, which threatened to revoke the firm’s mining licenses saying it had not given enough notice. Mopani said in a statement that constructive discussions had taken place with the Zambian government. “During the 90-day period, Mopani will continue to engage with the government on potential solutions to its current challenges,” the statement said. It said the health and safety of the workforce and surrounding communities was a top priority and Mopani would engage with its employees, relevant contractors and local communities regarding the restart of operations. Mines ministry permanent secretary Barnaby Mulenga said Glencore had told the government last month that it wanted to keep operating its Zambian copper mining subsidiary Mopani Copper Mines (MCM) rather than shutter operations. (Reporting by Chris Mfula; Editing by Edmund Blair)
3 May 14:08 • Financial Post • https://business.financialpost.com/pmn/business-pmn/glencores-zambia-subsidiary-to-resume-mining-operations-temporarily-2Rating: 0.94
Glencore's Zambia subsidiary to resume mining operations temporarily
LUSAKA (Reuters) - Glencore (OTC:GLNCY)'s Zambian subsidiary Mopani Copper Mines (MCM) will resume mining operations for 90 days but still expects to go ahead with its initial plan to place its mining operations on care and maintenance, the local firm said on Sunday. Glencore's original announcement that it planned to put MCM under "care and maintenance" sparked a backlash from Zambia's government, which threatened to revoke the firm's mining licences saying it had not given enough notice. Mopani said in a statement that constructive discussions had taken place with the Zambian government. "During the 90-day period, Mopani will continue to engage with the government on potential solutions to its current challenges," the statement said. It said the health and safety of the workforce and surrounding communities was a top priority and Mopani would engage with its employees, relevant contractors and local communities regarding the restart of operations. Mines ministry permanent secretary Barnaby Mulenga said Glencore had told the government last month that it wanted to keep operating its Zambian copper mining subsidiary Mopani Copper Mines (MCM) rather than shutter operations.
3 May 00:00 • Investing.com • https://www.investing.com/news/commodities-news/glencores-zambia-subsidiary-to-resume-mining-operations-temporarily-2159010Rating: 0.30
Belgians urged to eat French fries to help potato farmers, show national pride during coronavirus pandemic
3 May 20:46
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Belgians urged to eat French fries to help potato farmers, show national pride during coronavirus pandemic
BRUSSELS -- In a country that claims to be the real birthplace of the finger food that Americans have the temerity to call French fries, rescuing the potato industry might easily be a matter of Belgian national pride.So while a coronavirus lockdown keeps restaurants, bars and many of Belgium's 5,000 frites stands closed, the trade association for the national potato industry is calling on the population at large to do its part by keeping deep fryers fired up on the home front."Traditionally, Belgians eat fries once a week, and it's always a festive moment," Romain Cools, the Belgapom secretary general, said in a phone interview on Tuesday. "Now, we are asking them to eat frozen fries twice a week at home."The demand for frozen potatoes has nosedived in recent weeks, and the Belgian industry faces a possible loss of 125 million euros ($135.5 million) if hundreds of tons of surplus potatoes don't move this year, Cools said."This is the first time in my 30-year career that I need to call on authorities for help," he said. "The potato sector is so important. It should be helped because it's a flagship for our whole industry."As the immediate future remains gloomy, the industry wants to find new ways to move its surplus stock and avoid aste. In partnership with the Dutch-speaking Flemish region of Belgium, Belgapom has set up a program to deliver 25 tons of potatoes a week to food banks. Businesses are working to export some of their supplies to Central Europe and Africa, where the demand remains high.The industry is also looking at ways to work with starch factories to find other uses for excess potato stocks, such as feeding livestock or producing green electricity.Both France and Belgium claim to have invented fried string potatoes as a side dish. But the 'pomme frites" culture is stronger in Belgium, where people share a taste for beer with the chip-eaters in Britain.Belgians eat 38 kilograms (about 84 pounds) of fresh potatoes and 6-7 kilograms (13-15 pounds) of processed potatoes at home every year, according to Belgium's National Union of Fry-makers. But even if consumers unite in upping per capita consumption of fries, the potato sector won't emerge from the pandemic unscathed.Before the coronavirus reached Europe, the 2020 prospects looked bright for Belgium's potato industry, the world's largest exporter, following a 7.5% rise last year in the production of frozen fries. But the virus outbreak halted exports to China, then triggered a slowdown of potato sales across Europe as lockdown measures were implemented.After supermarkets saw shoppers grab all the potatoes they could hoard, demand quickly plummeted and kept falling with the closure of fast-food chains, according to Belgapom.The outside shacks known as "fritkoten" where Belgians queue up day in and day out in normal times to buy their beloved fries, were allowed to remain open for takeaway orders during the national lockdown, but an estimated 80% stayed closed anyway after local authorities offered compensation for shuttered businesses.Pascal Vandersteegen, the manager at Chez Clementine, a popular fritkot in the south of Brussels, says he has witnessed a 30% loss in revenue because of restrictions imposed to address the virus."Now, we have to close at 10 p.m. every day," he said. "We used to finish work at 1.30 a.m., and 6 a.m. on Fridays. But we are an institution. It's been 30 years that we are here. If everybody closes, there won't be anything left."
3 May 20:46 • ABC7 Los Angeles • https://abc7.com/food/belgians-urged-to-eat-fries-to-show-national-pride/6147546/Rating: 0.39
Belgians urged to eat French fries to help potato farmers, show national pride during coronavirus pandemic
BRUSSELS -- In a country that claims to be the real birthplace of the finger food that Americans have the temerity to call French fries, rescuing the potato industry might easily be a matter of Belgian national pride. So while a coronavirus lockdown keeps restaurants, bars and many of Belgium's 5,000 frites stands closed, the trade association for the national potato industry is calling on the population at large to do its part by keeping deep fryers fired up on the home front. "Traditionally, Belgians eat fries once a week, and it's always a festive moment," Romain Cools, the Belgapom secretary general, said in a phone interview on Tuesday. "Now, we are asking them to eat frozen fries twice a week at home." The demand for frozen potatoes has nosedived in recent weeks, and the Belgian industry faces a possible loss of 125 million euros ($135.5 million) if hundreds of tons of surplus potatoes don't move this year, Cools said. "This is the first time in my 30-year career that I need to call on authorities for help," he said. "The potato sector is so important. It should be helped because it's a flagship for our whole industry." As the immediate future remains gloomy, the industry wants to find new ways to move its surplus stock and avoid aste. In partnership with the Dutch-speaking Flemish region of Belgium, Belgapom has set up a program to deliver 25 tons of potatoes a week to food banks. Businesses are working to export some of their supplies to Central Europe and Africa, where the demand remains high. The industry is also looking at ways to work with starch factories to find other uses for excess potato stocks, such as feeding livestock or producing green electricity. Both France and Belgium claim to have invented fried string potatoes as a side dish. But the 'pomme frites" culture is stronger in Belgium, where people share a taste for beer with the chip-eaters in Britain. Belgians eat 38 kilograms (about 84 pounds) of fresh potatoes and 6-7 kilograms (13-15 pounds) of processed potatoes at home every year, according to Belgium's National Union of Fry-makers. But even if consumers unite in upping per capita consumption of fries, the potato sector won't emerge from the pandemic unscathed. Before the coronavirus reached Europe, the 2020 prospects looked bright for Belgium's potato industry, the world's largest exporter, following a 7.5% rise last year in the production of frozen fries. But the virus outbreak halted exports to China, then triggered a slowdown of potato sales across Europe as lockdown measures were implemented. After supermarkets saw shoppers grab all the potatoes they could hoard, demand quickly plummeted and kept falling with the closure of fast-food chains, according to Belgapom. The outside shacks known as "fritkoten" where Belgians queue up day in and day out in normal times to buy their beloved fries, were allowed to remain open for takeaway orders during the national lockdown, but an estimated 80% stayed closed anyway after local authorities offered compensation for shuttered businesses. Pascal Vandersteegen, the manager at Chez Clementine, a popular fritkot in the south of Brussels, says he has witnessed a 30% loss in revenue because of restrictions imposed to address the virus. "Now, we have to close at 10 p.m. every day," he said. "We used to finish work at 1.30 a.m., and 6 a.m. on Fridays. But we are an institution. It's been 30 years that we are here. If everybody closes, there won't be anything left."
3 May 20:46 • ABC7 New York • https://abc7ny.com/food/belgians-urged-to-eat-fries-to-show-national-pride/6147546/Rating: 0.30
I bought a Nintendo Switch just before my state went on coronavirus lockdown, and it's helped me separate my work and home life when I'm reporting on the pandemic, Business Insider - Business Insider Singapore
3 May 14:40
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I bought a Nintendo Switch just before my state went on coronavirus lockdown, and it's helped me separate my work and home life when I'm reporting on the pandemic, Business Insider - Business Insider Singapore
Source: Business Insider Source: Business Insider, The Verge Source: Business Insider Source: Business Insider Source: Business Insider captionHanging out with my friends on my island in “Animal Crossing.” Source: Business Insider Source: Insider caption“Legend of Zelda: Breath of the Wild” on the Nintendo Switch. Source: Business Insider Source: IMDB caption“Pokemon Sword” came out in 2019. Source: Business Insider
3 May 14:40 • www.businessinsider.sg • https://www.businessinsider.sg/nintendo-switch-helps-me-relieve-stress-amid-covid-19-crisis-2020-4Rating: 0.30
I bought a Nintendo Switch just before my state went on coronavirus lockdown, and it’s helped me separate my work and home life when I’m reporting on the pandemic
Source: Business Insider Source: Business Insider, The Verge Source: Business Insider Source: Business Insider Source: Business Insider Source: Business Insider Source: Insider Source: Business Insider Source: IMDB Source: Business Insider
3 May 14:40 • Business Insider Malaysia • https://www.businessinsider.my/nintendo-switch-helps-me-relieve-stress-amid-covid-19-crisis-2020-4Rating: 0.30
'A buying spree of epic proportions': How the Federal Reserve bucked precedent and forever changed its role in the US economy, Business Insider - Business Insider Singapore
3 May 12:15
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'A buying spree of epic proportions': How the Federal Reserve bucked precedent and forever changed its role in the US economy, Business Insider - Business Insider Singapore
The Federal Reserve is no longer the central bank it used to be. In a matter of weeks, the steadily expanding US economy slipped into its worst recession in nearly a century. Tens of millions of Americans lost their jobs, spending froze, and credit health tanked. While the Fed’s response began with its traditional financial-crisis playbook – pushing interest rates to the floor and buying Treasurys and mortgage-backed securities – a shift was brewing. Then, on March 20, the monetary authority’s role changed. The Fed announced it would begin buying corporate bonds for the first time in its 107-year history, offering aid for cash-strapped businesses large and small. That facility marked a paradigm shift to the central bank’s code and separated the Fed from its originally intended role in the US economy. “The big concern is that the line between the function of the Fed and the Treasury is getting blurred,” Bruce Mizrach, professor of economics at Rutgers University, said, adding past bailouts, commercial or municipal, were handled by the latter and not the former. He added: “That’s a larger function than what was envisioned for the Fed, and once you assume those responsibilities, it then becomes harder to back away.” Until the financial crisis, the Fed’s primary tool was its benchmark interest rate. When the 2008 meltdown hit and rates were pushed to zero, the Fed turned to the purchase of mortgage-backed securities and other unconventional assets. To combat the coronavirus downturn the central bank expanded its toolbox once more. The Fed’s corporate bond purchases were initially exclusive to investment-grade debt before an expansion incorporated so-called fallen angels, companies that recently slipped from high-quality ratings to junk status. “The use of high-yield purchases is designed explicitly to say, ‘look, if you were an investment-grade company before March 223 and you got downgraded because of COVID, that shouldn’t have happened,'” Lauren Goodwin, economist at New York Life Investments, said in an interview. The Fed’s own leaders have acknowledged the shift, with Dallas branch president Robert Kaplan telling Fox Business on Friday that the bank’s role includes serving as “a lender of last resort.” Read more:An investing strategy called ‘crisis alpha’ designed to thrive during meltdowns just whiffed on the fastest bear market in history. Here’s how that’s upended a $318 billion industry – and what it means for the future. Still, experts worry that the move into risky debt purchases will make an eventual recovery more turbulent than usual. The Fed doesn’t want to be seen as impeding market dynamics, but its move from stable Treasury bonds to corporate credit has already changed valuations across the board. In the days following the Fed’s March 23 announcement, corporate bonds retraced sharp declines. The stock market enjoyed an indirect boost, as investors viewed the policy as a strong backstop for risk assets. “The problem with official intervention in markets is you’re no longer letting the market determine prices. So what is the right valuation?” Vincent Reinhart, chief economist at BNY Mellon, said, adding “the possibility that the Fed will broaden the scope of its interventions” is even affecting prices in sectors ineligible for Fed lending. Even if market valuations normalize and account for the Fed’s policy, closing its facilities in the wake of the economic downturn will drive violent price swings all over again, Goodwin warned. “The rollback of these programs and the timing of that rollback is going to be an enormous focus for investors and it will absolutely prompt market volatility,” she said. Where some are worried about the scope of the Fed’s latest measures, others point to their size as a serious long-term risk. Through quantitative easing programs from 2010 to 2015, the Fed’s balance sheet roughly doubled to $4.5 trillion. It took until September 2019 to unwind about $800 billion from its balance sheet, yet the subsequent repo crisis and coronavirus pandemic undid four years of progress in a matter of weeks. From February 24 to April 27, the Fed added another $2.5 trillion to its balance sheet. The race to pad markets resulted in “a buying spree of epic proportions,” JPMorgan economists wrote in a Tuesday note. The central bank’s purchases show no signs of stopping, with five of its nine lending facilities yet to begin operations. Experts expect the Fed’s holdings to land between $7 trillion $10 trillion by the end of the year, dwarfing the expansion seen during the financial crisis. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond. Reversing the balance sheet explosion poses its own threat. Shrinking it before the economy has stabilized could drive price volatility and impede the Fed’s efforts to avoid market influence, Reinhart said. He also noted that acting too late puts the environment at risk of deflation, where prices stop increasing at a healthy rate. The central bank must also gain approval from the Treasury to close its lending facilities, and the department’s leaders may decide against pulling back on corporate aid. “Facilities are going to be tough to unwind and they will linger. They are going to wait until it’s absolutely the case that the economy is on solid footing and the expansion is underway,” Reinhart said. There’s still hope among experts that the Fed can return to its independent, market-independent state. Much of the Fed’s emergency measures were made at the behest of Congress and the Treasury. Placing the onus on elected officials leaves the Fed and its appointed leaders from venturing too far out of its historic jurisdiction, Goodwin said. “If you think this is a huge overstep and you’re worried about free markets, it’s really important to know this isn’t just the Fed acting on its own,” Goodwin said. He concluded: “The next crisis will probably look different. What policymakers have shown is not only that they can be creative in addressing an acute market functioning issue … but that they’re willing to adapt and adjust the policies as necessary.” Now read more markets coverage from Markets Insider and Business Insider: Goldman Sachs traders made more than $100 million on 14 separate days amid the first quarter’s fierce volatility The Fed expands its $600 billion lending program for struggling businesses but leaves start date unannounced Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them
3 May 12:15 • www.businessinsider.sg • https://www.businessinsider.sg/federal-reserve-corporate-bond-buying-balance-sheet-expansion-historic-role-2020-5Rating: 0.30
‘A buying spree of epic proportions’: How the Federal Reserve bucked precedent and forever changed its role in the US economy
The Federal Reserve is no longer the central bank it used to be. In a matter of weeks, the steadily expanding US economy slipped into its worst recession in nearly a century. Tens of millions of Americans lost their jobs, spending froze, and credit health tanked. While the Fed’s response began with its traditional financial-crisis playbook – pushing interest rates to the floor and buying Treasurys and mortgage-backed securities – a shift was brewing. Then, on March 20, the monetary authority’s role changed. The Fed announced it would begin buying corporate bonds for the first time in its 107-year history, offering aid for cash-strapped businesses large and small. That facility marked a paradigm shift to the central bank’s code and separated the Fed from its originally intended role in the US economy. “The big concern is that the line between the function of the Fed and the Treasury is getting blurred,” Bruce Mizrach, professor of economics at Rutgers University, said, adding past bailouts, commercial or municipal, were handled by the latter and not the former. He added: “That’s a larger function than what was envisioned for the Fed, and once you assume those responsibilities, it then becomes harder to back away.” Until the financial crisis, the Fed’s primary tool was its benchmark interest rate. When the 2008 meltdown hit and rates were pushed to zero, the Fed turned to the purchase of mortgage-backed securities and other unconventional assets. To combat the coronavirus downturn the central bank expanded its toolbox once more. The Fed’s corporate bond purchases were initially exclusive to investment-grade debt before an expansion incorporated so-called fallen angels, companies that recently slipped from high-quality ratings to junk status. “The use of high-yield purchases is designed explicitly to say, ‘look, if you were an investment-grade company before March 223 and you got downgraded because of COVID, that shouldn’t have happened,'” Lauren Goodwin, economist at New York Life Investments, said in an interview. The Fed’s own leaders have acknowledged the shift, with Dallas branch president Robert Kaplan telling Fox Business on Friday that the bank’s role includes serving as “a lender of last resort.” Read more:An investing strategy called ‘crisis alpha’ designed to thrive during meltdowns just whiffed on the fastest bear market in history. Here’s how that’s upended a $318 billion industry – and what it means for the future. Still, experts worry that the move into risky debt purchases will make an eventual recovery more turbulent than usual. The Fed doesn’t want to be seen as impeding market dynamics, but its move from stable Treasury bonds to corporate credit has already changed valuations across the board. In the days following the Fed’s March 23 announcement, corporate bonds retraced sharp declines. The stock market enjoyed an indirect boost, as investors viewed the policy as a strong backstop for risk assets. “The problem with official intervention in markets is you’re no longer letting the market determine prices. So what is the right valuation?” Vincent Reinhart, chief economist at BNY Mellon, said, adding “the possibility that the Fed will broaden the scope of its interventions” is even affecting prices in sectors ineligible for Fed lending. Even if market valuations normalize and account for the Fed’s policy, closing its facilities in the wake of the economic downturn will drive violent price swings all over again, Goodwin warned. “The rollback of these programs and the timing of that rollback is going to be an enormous focus for investors and it will absolutely prompt market volatility,” she said. Where some are worried about the scope of the Fed’s latest measures, others point to their size as a serious long-term risk. Through quantitative easing programs from 2010 to 2015, the Fed’s balance sheet roughly doubled to $4.5 trillion. It took until September 2019 to unwind about $800 billion from its balance sheet, yet the subsequent repo crisis and coronavirus pandemic undid four years of progress in a matter of weeks. From February 24 to April 27, the Fed added another $2.5 trillion to its balance sheet. The race to pad markets resulted in “a buying spree of epic proportions,” JPMorgan economists wrote in a Tuesday note. The central bank’s purchases show no signs of stopping, with five of its nine lending facilities yet to begin operations. Experts expect the Fed’s holdings to land between $7 trillion $10 trillion by the end of the year, dwarfing the expansion seen during the financial crisis. Read more:Famed economist David Rosenberg nailed the housing crash. Now he says this crisis won’t end as quickly as it began and shares an investing strategy for the next 3 years and beyond. Reversing the balance sheet explosion poses its own threat. Shrinking it before the economy has stabilized could drive price volatility and impede the Fed’s efforts to avoid market influence, Reinhart said. He also noted that acting too late puts the environment at risk of deflation, where prices stop increasing at a healthy rate. The central bank must also gain approval from the Treasury to close its lending facilities, and the department’s leaders may decide against pulling back on corporate aid. “Facilities are going to be tough to unwind and they will linger. They are going to wait until it’s absolutely the case that the economy is on solid footing and the expansion is underway,” Reinhart said. There’s still hope among experts that the Fed can return to its independent, market-independent state. Much of the Fed’s emergency measures were made at the behest of Congress and the Treasury. Placing the onus on elected officials leaves the Fed and its appointed leaders from venturing too far out of its historic jurisdiction, Goodwin said. “If you think this is a huge overstep and you’re worried about free markets, it’s really important to know this isn’t just the Fed acting on its own,” Goodwin said. He concluded: “The next crisis will probably look different. What policymakers have shown is not only that they can be creative in addressing an acute market functioning issue … but that they’re willing to adapt and adjust the policies as necessary.” Now read more markets coverage from Markets Insider and Business Insider: Goldman Sachs traders made more than $100 million on 14 separate days amid the first quarter’s fierce volatility The Fed expands its $600 billion lending program for struggling businesses but leaves start date unannounced Quant megafund AQR explains why investors should be more worried about prolonged slumps than virus-style crashes – and details a 3-part process for protecting against them
3 May 12:15 • Business Insider Malaysia • https://www.businessinsider.my/federal-reserve-corporate-bond-buying-balance-sheet-expansion-historic-role-2020-5Rating: 0.30
Buffett says coronavirus cannot stop America
3 May 05:35
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Buffett says coronavirus cannot stop America
REUTERS: Warren Buffett on Saturday (May 2) gave an upbeat assessment of the United States' ability to withstand crises, even as he acknowledged that the coronavirus pandemic could have a wide range of impacts on the economy and his investments.Buffett opened the annual meeting of Berkshire Hathaway in Omaha, Nebraska with 1-3/4 hour of remarks in which he tried to soothe shareholders as the pandemic batters the global economy and hurts even his own conglomerate.Illustrating his remarks with dozens of plain black-and-white slides, the 89-year-old billionaire called dealing with the pandemic "quite an experiment" that had an "extraordinarily wide" range of possible economic outcomes.But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression, and the "American tailwind" would help them do it again."Nothing can stop America when you get right down to it," Buffett said. "I will bet on America the rest of my life."The meeting was held virtually for the first time without shareholders because of the pandemic and streamed by Yahoo Finance.It began several hours after Berkshire reported a record US$49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp and Apple Inc during the market meltdown.While quarterly operating profit rose 6 per cent, several larger businesses including the BNSF railroad posted declines, and Berkshire said some of its more than 90 businesses are facing "severe" negative effects from COVID-19, the illness caused by the novel coronavirus.Buffett said operating earnings will, through at least this year, be "considerably less" than they would have been had the pandemic not occurred.Berkshire's cash stake ended the quarter at US$137.3 billion, reflecting difficulty in finding good places to invest.He also said he decided that he "made a mistake" investing in US airlines, and that this accounted for some of the net US$6.1 billion of stocks that Berkshire sold in April.Berkshire has been among the biggest shareholders in the four largest US airlines -- American, Delta, Southwest and United - but Buffett said the pandemic has changed that business "in a very major way."The meeting is devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls "Woodstock for Capitalists."Buffett, after the initial presentation, started to answer shareholder questions at the meeting.He was joined by Vice Chairman Greg Abel, 57, who has day-to-day oversight of Berkshire's non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive officer.Abel is standing in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions.Buffett said Munger is in "fine shape" and looking forward to attending Berkshire's 2021 annual meeting.Vice Chairman Ajit Jain, 68, who oversees Berkshire's insurance businesses and is also a possible CEO candidate, did not attend either. Abel lives closer to Omaha than Munger and Jain.Shareholders elected former American Express Co Chief Executive Kenneth Chenault to Berkshire's board, making him the company's first African American director.
3 May 05:35 • CNA • https://www.channelnewsasia.com/news/business/buffett-says-coronavirus-cannot-stop-america-12697404Rating: 3.25
Warren Buffett says coronavirus cannot stop America, despite huge Berkshire loss
Warren Buffett on Saturday gave an upbeat assessment of the United States’ ability to withstand crises, even as he acknowledged that the coronavirus pandemic could have a wide range of impacts on the economy and his investments. Buffett opened the annual meeting of his Berkshire Hathaway Inc in Omaha, Nebraska with 1-3/4 hour of remarks in which he tried to soothe shareholders as the pandemic batters the global economy and hurts even his own conglomerate. Illustrating his remarks with dozens of plain black-and-white slides, the 89-year-old billionaire called dealing with the pandemic “quite an experiment” that had an “extraordinarily wide” range of possible economic outcomes. But he said Americans have persevered and prospered through such crises as the Civil War in the 1860s, the influenza pandemic a century ago and the Great Depression, and the “American tailwind” would help them do it again. “Nothing can stop America when you get right down to it,” Buffett said. “I will bet on America the rest of my life.” The meeting was held virtually for the first time without shareholders because of the pandemic and streamed by Yahoo Finance. It began several hours after Berkshire reported a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp and Apple Inc during the market meltdown. While quarterly operating profit rose 6%, several larger businesses including the BNSF railroad posted declines, and Berkshire said some of its more than 90 businesses are facing “severe” negative effects from COVID-19, the illness caused by the novel coronavirus. Buffett said operating earnings will, through at least this year, be “considerably less” than they would have been had the pandemic not occurred. Berkshire’s cash stake ended the quarter at $137.3 billion, reflecting difficulty in finding good places to invest. He also said he decided that he “made a mistake” investing in U.S. airlines, and that this accounted for some of the net $6.1 billion of stocks that Berkshire sold in April. Berkshire Hathaway Inc sold its entire stakes in the four largest U.S. airlines, Chairman Warren Buffett said Saturday at the company’s annual meeting. The conglomerate held sizeable positions in the airlines, including an 11% stake in Delta Air Lines and about 9% stakes in both United Airlines and Southwest Airlines Co at the end of 2019, according to its annual report. Airline stocks have been hard hit by the near collapse U.S. travel demand amid the coronavirus pandemic. Buffett said Berkshire had invested around $7 billion or $8 billion amassing stakes in the four airlines including American Airlines Group Inc. “We did not take out anything like $7 or $8 billion and that was my mistake,” Buffett said. “I am the one who made the decision.” The airlines did not immediately respond to requests for comment on the sales. “It is a blow to have essentially your demand dry up…. It is basically that we shut off air travel in this country,” Buffett added. The meeting is devoid of the surrounding three-day weekend of dining, shopping and other celebratory events that annually draw tens of thousands of people to Omaha for what Buffett calls “Woodstock for Capitalists.” Buffett, after the initial presentation, started to answer shareholder questions at the meeting. He was joined by Vice Chairman Greg Abel, 57, who has day-to-day oversight of Berkshire’s non-insurance businesses, and is considered by many analysts and investors a top candidate to eventually succeed Buffett as chief executive officer. Abel is standing in for longtime Vice Chairman Charlie Munger, 96, who normally joins Buffett to answer shareholder questions. Buffett said Munger is in “fine shape” and looking forward to attending Berkshire’s 2021 annual meeting. Vice Chairman Ajit Jain, 68, who oversees Berkshire’s insurance businesses and is also a possible CEO candidate, did not attend either. Abel lives closer to Omaha than Munger and Jain. Shareholders elected former American Express Co Chief Executive Kenneth Chenault to Berkshire’s board, making him the company’s first African American director.
2 May 23:48 • Financial Post • https://business.financialpost.com/news/economy/warren-buffett-says-coronavirus-cannot-stop-america-despite-huge-berkshire-lossRating: 0.94
Hoteliers call for permanent reduction in VAT for tourism sector
3 May 09:51
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2 articles
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Hoteliers call for permanent reduction in VAT for tourism sector
A group representing Irish hoteliers is calling for a permanent reduction in VAT for the tourism and hospitality industry. The Irish Hotels Federation (IHF) says it welcomes additional measures, announced on Saturday, to help businesses after the coronavirus pandemic. The €6bn package of measures includes commercial rates being waived for three months, low-interest rate loans and the ‘warehousing’ of tax liabilities for a period of 12 months. But the IHF claims they fall short, given the challenges facing Irish tourism. IHF President Elaina Fitzgerald Kane says: "Specific sectoral supports are required for the tourism sector, particularly in relation to Government controlled costs, to mitigate the devastation that the COVID-19 crisis has caused the industry. "We are calling for a permanent reduction in the tourism VAT rate, a waiver on local authority rates and charges until the impact of COVID-19 restrictions has abated and for a minimum of 12 months, as well as targeted liquidity measures to provide working capital for tourism businesses to survive and restart." The group is also asking for a continuation of the job subsidy scheme. It says about 85% of hotels across the country are closed, with many people laid off or on short-time. "The priority must be to safeguard the 260,000 livelihoods supported by tourism businesses", Ms Kane adds. It echoes comments from the Restaurants Association of Ireland (RAI), which last week called for a 0% VAT rate for tourism and hospitality for the period of the crisis - and for 12 months thereafter.
3 May 09:51 • Newstalk • https://www.newstalk.com/news/hoteliers-call-permanent-reduction-vat-tourism-sector-1009671Rating: 0.30
Hoteliers call for scrapping of Tourism Vat for 12 months during pandemic
The Irish Hotels Federation is calling for a permanent reduction in the Tourism Vat rate. Reacting to the Government's €6bn fund to support businesses after Covid-19, it says while welcome, the measures fall short. At the moment about 85 per cent of hotels across the country are closed, with many people laid off or on short-time. Irish Hotels Federation President, Elaina Fitzgerald-Kane said a number of steps are needed to help the hotels' sector: Ms Fitzgerald-Kane said: "A big, big part for us is continuation of the wage subsidy scheme into recovery and equally VAT to be reduced, and what we are suggesting is 0% for 12 months and returning then to an increased rate thereafter. "In some countries it has been 7%, it has previously been 9% in Ireland." ICTU has said it will only support the Government's package to help businesses during Covid-19 if it is used to protect and create jobs. While it says the supports announced yesterday are positive, it says it is important State aid applicants do not forget their responsibilities to workers. More than 427,000 are having their wages subsidised by the State and 43,000 employers have already received subsidy payments. Fergal O'Brien from business group IBEC has indicated that some firms will need yet more support to pay wages. Mr O'Brien said: "For some companies particularly that are going to be facing a much higher cost base and lower revenue as a result of social distancing measures, Government will probably need to support those companies in very significant ways, possibly through a wage subsidy-type model."
3 May 07:22 • Irishexaminer • https://www.irishexaminer.com/breakingnews/business/hoteliers-call-for-scrapping-of-tourism-vat-for-12-months-during-pandemic-997397.htmlRating: 0.69
Who's Ready for a 24% Cut to Social Security Benefits?
3 May 10:06
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Who's Ready for a 24% Cut to Social Security Benefits?
Every month, more than 64 million people receives a Social Security benefit check, of which roughly 70% are retired workers. For these retirees, 62% lean on their payout to account for at least half of their income, with 34% reliant on Social Security for a whopping 90% to 100% of their incoming funds. It's been estimated by the Center on Budget and Policy Priorities that, without Social Security, elderly poverty rates would more than quadruple in the United States. In other words, Social Security is not only the most successful social program in existence, but it's indispensable. It also happens to be a program that's in pretty serious trouble -- and the hole lawmakers have dug for it keeps deepening. A little more than a week ago, the Social Security Board of Trustees released its annual report on the financial health of the program. It examines both the short-tem (10-year) and long-term (75-year) outlook for Social Security, as well as tackles what variables could help or hinder the program, such as changes in economic growth, interest rates, fiscal policy, birth rates, death rates, and net immigration. As has been the case for years, the latest report shows that things are getting worse for our most-storied social program. In the latest report, perhaps the one "positive" was the view of the Trustees that 2021, not 2020, would represent the first year of net cash outflows from the program since 1982. Then again, I'd bet the house that this forecast is wrong given that the Trustees haven't taken into account the impact of the coronavirus disease 2019 (COVID-19) in their short-range forecast. With over 26 million people losing their jobs, and unemployment benefits exempt from the payroll tax, there's no chance, in my opinion, that the program generates a cash surplus in 2020. Then there are the negatives. The Trustees are still counting on the program to burn through its nearly $2.9 trillion in asset reserves (i.e., its net cash surpluses built up since inception) by 2035. This is the same expectation published in last year's report. However, the cash shortfall beyond 2035 grew substantially due to a number of modeling adjustments implemented by the Trustees. While expenditures tied to the Disability Income Trust should actually come in lower than prior expectations over the long-term, new modeling lowered the real interest rate by 20 basis points to 2.3%, reduced consumer price inflation by 20 basis points to 2.4%, and lowered the total fertility rate to 1.95 births per women from 2.0. All told, this pushed the projected cash shortfall to $16.8 trillion between 2035 and 2094, up $2.9 trillion from last year's projection of $13.9 trillion. If lawmakers fail to act to strengthen Social Security, the Old-Age and Survivors Insurance Trust will only be able to pay 76% of benefits after 2035. Put in another context, retired workers and survivors, which respectively make up 45.5 million and 5.9 million of the 64.5 million current beneficiaries, as well as future retirees, would see their payouts reduced by 24%. You might be asking yourself how a social program that's been paying out benefits without a hitch for more than 80 years could dig itself a $16.8 trillion hole? The answer can't be pinned on just one factor. Rather, it's a confluence of factors that've built up over time. For example, baby boomers often get pinned for this mess given that they're retiring from the workforce in greater numbers and driving down the worker-to-beneficiary ratio. But boomers being born is far from the only reason Social Security will soon be outlaying way more than it collects every year. For one, we're living significantly longer now than we were when the program first began paying benefits in 1940. But while the average life expectancy at birth has risen more than 16 years for the average American over the last eight decades, Social Security's full retirement age -- the age where you become eligible to receive your full monthly payout, as determined by your birth year -- will have risen only two years, as of 2022. In other words, increased longevity is allowing the average 65-year-old to receive a benefit check for 20 years, and it's clearly straining the program. Another problem is declining birth rates, which the Trustees somewhat adjusted in their newest model. Births per women in the U.S. have plunged to an all-time low, with millennials waiting longer to get married, gaining easier access to contraceptives, and having fewer unplanned pregnancies. If this lower birth trend continues, the worker-to-beneficiary ratio will fall even more. Immigration rates are another culprit. The fact is that Social Security relies on a healthy annual net immigration rate into the United States. Immigrants tend to be younger, which means they're likely to contribute in the labor force via the payroll tax for decades to come. But over the past 20 years, net immigration into the U.S. has been on a pretty steady decline. Also, don't overlook growing income inequality as a fault. Since the rich often have few if any financial constraints when it comes to paying for preventative care, medical care, and prescription medicines, they're living substantially longer than low-income individuals who may not have this same access to medical care and prescriptions. Thus, even though Social Security is designed to protect low-income Americans during retirement, it's really putting cash into the pockets of well-to-do Americans for a longer period of time. However, the biggest of the more than half-dozen issues plaguing Social Security just might be the inaction of lawmakers on Capitol Hill. You see, Congress has known since 1985 that Social Security wasn't going to generate enough cash over the following 75 years to maintain its payout schedule. For 35 years, Congress has known that some form of intervention, be it outlay reductions or additional revenue, would be needed to help strengthen the program. And yet, they've mostly twiddled their thumbs in Washington, D.C., over that time frame. Mind you, ideas on how to fix Social Security aren't the issue. Each political party has a core solution that would, in some way, make Social Security a stronger program. Democrats prefer raising additional revenue by increasing or removing the payroll tax earnings cap, thereby requiring the well-to-do to pay more into the system. Meanwhile, Republicans prefer gradually increasing the full retirement age to reduce lifetime outlays to future retired workers. The problem is that, since both solutions work, neither party feels the need to cede an inch to find common ground with their opposition. But the longer lawmakers wait to fix the problem, the more burdensome the eventual cost will be on working Americans. In just a few years, the long-term cash shortfall has ballooned from $11.4 trillion to $16.8 trillion -- and it's liable to continue climbing the longer Congress waits to act. History shows that lawmakers do act in a bipartisan manner at the 11th hour when it comes to Social Security, but that's not going to do much to allay retirees' fears about the possibility of a 24% cut to benefits in just 15 years.
3 May 10:06 • The Motley Fool • https://www.fool.com/retirement/2020/05/03/whos-ready-for-a-24-cut-to-social-security-benefit.aspxRating: 0.30
Who's Ready for a 24% Cut to Social Security Benefits?
Every month, more than 64 million people receives a Social Security benefit check, of which roughly 70% are retired workers. For these retirees, 62% lean on their payout to account for at least half of their income, with 34% reliant on Social Security for a whopping 90% to 100% of their incoming funds. It's been estimated by the Center on Budget and Policy Priorities that, without Social Security, elderly poverty rates would more than quadruple in the United States. In other words, Social Security is not only the most successful social program in existence, but it's indispensable. It also happens to be a program that's in pretty serious trouble -- and the hole lawmakers have dug for it keeps deepening. A little more than a week ago, the Social Security Board of Trustees released its annual report on the financial health of the program. It examines both the short-tem (10-year) and long-term (75-year) outlook for Social Security, as well as tackles what variables could help or hinder the program, such as changes in economic growth, interest rates, fiscal policy, birth rates, death rates, and net immigration. As has been the case for years, the latest report shows that things are getting worse for our most-storied social program. In the latest report, perhaps the one "positive" was the view of the Trustees that 2021, not 2020, would represent the first year of net cash outflows from the program since 1982. Then again, I'd bet the house that this forecast is wrong given that the Trustees haven't taken into account the impact of the coronavirus disease 2019 (COVID-19) in their short-range forecast. With over 26 million people losing their jobs, and unemployment benefits exempt from the payroll tax, there's no chance, in my opinion, that the program generates a cash surplus in 2020. Then there are the negatives. The Trustees are still counting on the program to burn through its nearly $2.9 trillion in asset reserves (i.e., its net cash surpluses built up since inception) by 2035. This is the same expectation published in last year's report. However, the cash shortfall beyond 2035 grew substantially due to a number of modeling adjustments implemented by the Trustees. While expenditures tied to the Disability Income Trust should actually come in lower than prior expectations over the long-term, new modeling lowered the real interest rate by 20 basis points to 2.3%, reduced consumer price inflation by 20 basis points to 2.4%, and lowered the total fertility rate to 1.95 births per women from 2.0. All told, this pushed the projected cash shortfall to $16.8 trillion between 2035 and 2094, up $2.9 trillion from last year's projection of $13.9 trillion. If lawmakers fail to act to strengthen Social Security, the Old-Age and Survivors Insurance Trust will only be able to pay 76% of benefits after 2035. Put in another context, retired workers and survivors, which respectively make up 45.5 million and 5.9 million of the 64.5 million current beneficiaries, as well as future retirees, would see their payouts reduced by 24%. You might be asking yourself how a social program that's been paying out benefits without a hitch for more than 80 years could dig itself a $16.8 trillion hole? The answer can't be pinned on just one factor. Rather, it's a confluence of factors that've built up over time. For example, baby boomers often get pinned for this mess given that they're retiring from the workforce in greater numbers and driving down the worker-to-beneficiary ratio. But boomers being born is far from the only reason Social Security will soon be outlaying way more than it collects every year. For one, we're living significantly longer now than we were when the program first began paying benefits in 1940. But while the average life expectancy at birth has risen more than 16 years for the average American over the last eight decades, Social Security's full retirement age -- the age where you become eligible to receive your full monthly payout, as determined by your birth year -- will have risen only two years, as of 2022. In other words, increased longevity is allowing the average 65-year-old to receive a benefit check for 20 years, and it's clearly straining the program. Another problem is declining birth rates, which the Trustees somewhat adjusted in their newest model. Births per women in the U.S. have plunged to an all-time low, with millennials waiting longer to get married, gaining easier access to contraceptives, and having fewer unplanned pregnancies. If this lower birth trend continues, the worker-to-beneficiary ratio will fall even more. Immigration rates are another culprit. The fact is that Social Security relies on a healthy annual net immigration rate into the United States. Immigrants tend to be younger, which means they're likely to contribute in the labor force via the payroll tax for decades to come. But over the past 20 years, net immigration into the U.S. has been on a pretty steady decline. Also, don't overlook growing income inequality as a fault. Since the rich often have few if any financial constraints when it comes to paying for preventative care, medical care, and prescription medicines, they're living substantially longer than low-income individuals who may not have this same access to medical care and prescriptions. Thus, even though Social Security is designed to protect low-income Americans during retirement, it's really putting cash into the pockets of well-to-do Americans for a longer period of time. However, the biggest of the more than half-dozen issues plaguing Social Security just might be the inaction of lawmakers on Capitol Hill. You see, Congress has known since 1985 that Social Security wasn't going to generate enough cash over the following 75 years to maintain its payout schedule. For 35 years, Congress has known that some form of intervention, be it outlay reductions or additional revenue, would be needed to help strengthen the program. And yet, they've mostly twiddled their thumbs in Washington, D.C., over that time frame. Mind you, ideas on how to fix Social Security aren't the issue. Each political party has a core solution that would, in some way, make Social Security a stronger program. Democrats prefer raising additional revenue by increasing or removing the payroll tax earnings cap, thereby requiring the well-to-do to pay more into the system. Meanwhile, Republicans prefer gradually increasing the full retirement age to reduce lifetime outlays to future retired workers. The problem is that, since both solutions work, neither party feels the need to cede an inch to find common ground with their opposition. But the longer lawmakers wait to fix the problem, the more burdensome the eventual cost will be on working Americans. In just a few years, the long-term cash shortfall has ballooned from $11.4 trillion to $16.8 trillion -- and it's liable to continue climbing the longer Congress waits to act. History shows that lawmakers do act in a bipartisan manner at the 11th hour when it comes to Social Security, but that's not going to do much to allay retirees' fears about the possibility of a 24% cut to benefits in just 15 years. The Motley Fool has a disclosure policy. SPONSORED: The $16,728 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
3 May 12:49 • Msn • https://www.msn.com/en-us/money/retirement/whos-ready-for-a-24percent-cut-to-social-security-benefits/ar-BB13wLdB?li=BBnbfcNRating: 0.30
Singapore minister says RCEP trade deal on track for year-end signing
3 May 05:03
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2 articles
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Singapore minister says RCEP trade deal on track for year-end signing
SINGAPORE — The Regional Comprehensive Economic Partnership (RCEP) trade deal is still on track to be signed by the end of 2020, Singapore’s Minister of Trade and Industry Chan Chun Sing said on Sunday. RCEP brings together the 10-member Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, Australia and New Zealand. The countries have made an offer to India, which pulled out of talks last November, to see if it is prepared to rejoin discussions. “If India is unable to rejoin the discussions in the coming month, then plans will continue to proceed with the legal scrubbing for the preparation for the siging at the end of the year,” Chan told reporters. “At this point in time we are still on track for the signing by the RCEP countries at the end of the year,” he added. Chan was speaking to reporters on Sunday to outline plans to restart Singapore’e economic activity after curbs put in place to stop the spread of the coronavirus. Separately he said troubles at Hin Leong Trading Pte Ltd, one of Asia’s top oil traders, were not a reflection of the wider situation in the Singapore oil trading market. However, he said the wider oil trading market will be hurt by global oversupply issues. (Reporting by Aradhana Aravindan in Singapore; Editing by Michael Perry)
3 May 05:03 • Financial Post • https://business.financialpost.com/pmn/business-pmn/singapore-minister-says-rcep-trade-deal-on-track-for-year-end-signingRating: 0.94
Singapore minister says RCEP trade deal on track for year-end signing
SINGAPORE (Reuters) - The Regional Comprehensive Economic Partnership (RCEP) trade deal is still on track to be signed by the end of 2020, Singapore's Minister of Trade and Industry Chan Chun Sing said on Sunday. RCEP brings together the 10-member Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, Australia and New Zealand. The countries have made an offer to India, which pulled out of talks last November, to see if it is prepared to rejoin discussions. "If India is unable to rejoin the discussions in the coming month, then plans will continue to proceed with the legal scrubbing for the preparation for the siging at the end of the year," Chan told reporters. "At this point in time we are still on track for the signing by the RCEP countries at the end of the year," he added. Chan was speaking to reporters on Sunday to outline plans to restart Singapore'e economic activity after curbs put in place to stop the spread of the coronavirus. Separately he said troubles at Hin Leong Trading Pte Ltd, one of Asia's top oil traders, were not a reflection of the wider situation in the Singapore oil trading market. However, he said the wider oil trading market will be hurt by global oversupply issues.
3 May 00:00 • Investing.com • https://www.investing.com/news/commodities-news/singapore-minister-says-rcep-trade-deal-on-track-for-yearend-signing-2158871Rating: 0.30
India’s coronavirus lockdown curbs buffalo meat exports, hitting Ramadan supplies
3 May 04:00
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2 articles
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India’s coronavirus lockdown curbs buffalo meat exports, hitting Ramadan supplies
For more than a decade Kuala Lumpur street vendor Abu Zahrim Ismail has seen brisk sales of daging dendeng, a spicy buffalo meat jerky, during the Muslim holy month of Ramadan. But this year, the spread of coronavirus pandemic has slashed shipments of Indian buffalo meat, driving prices higher and hitting sales. Most meat processing plants in India, the world’s second largest beef exporter and Malaysia’s top supplier, have been shut as the South Asian nation fights to contain the pandemic. “The virus has really turned everything upside down,” Abu said. India typically sells more than 100,000 tonnes of buffalo meat every month, but in March exports dropped to around 40,000 tonnes, according to two exporters. Sales are likely to have been even lower in April as widespread lockdowns took effect, and even in May are expected to remain well below normal despite some parts of the Indian economy re-opening, they added. “Right now things are not going in favour of our industry. Even though it is food, it is not considered essential as it is for exports,” said one of the exporters who is based in northern state of Uttar Pradesh. “As of now all the exporters are trying to move their current stocks that they are holding.” Wholesale prices of frozen buffalo meat in Malaysia have climbed 15%-20% from a year ago this month during the Ramadan festival, which usually accounts for up to 20% of the country’s annual consumption as families gather to break fast. “Typically, Malaysians would consume about 350 containers of buffalo meat a month from India, now it has fallen to half,” said one importer based in Kuala Lumpur. Diminished retail demand during Malaysia’s own lockdown has also hit overall meat import demand. “We are only open for takeaway during the movement control order. Sales have dropped about 80%,” said Indian Muslim Restaurant Operators Association (Presma) president Ayub Khan. GLOBAL MEAT MESS In 2019, India shipped close to 1.5 million tonnes of beef, which is sourced largely from dairy buffalos, compared with 2.3 million tonnes sold by top supplier Brazil, according to the U.S. Department of Agriculture. The absence of those supplies is being acutely felt in Malaysia, which relies on India for 70% of beef imports, as well as in Indonesia where a quarter of imports come from India and buffalo is popular among lower income groups due to its low cost. Indonesian buyers - which were expected to buy 170,000 tonnes of Indian beef this year before virus-led delays kicked in - are trying to switch to other origins like Brazil and Argentina, industry sources in Jakarta said. But the global Covid 19 pandemic has made replacing those lost supplies difficult, especially after the world’s biggest meat companies, including Smithfield Foods Inc, Cargill Inc, JBS USA and Tyson, halted operations at about 20 slaughterhouses and processing plants in North America after workers fell ill. Number one beef exporter Brazil has also been hit, with meat processor BRF registering 18 COVID-19 cases in late April at an industrial hub that employs about 3,100 people. RESTRAINED REBOOT Indian meat processors are keen to restart plants once restrictions are eased, but enduring social distancing measures mean it will not be easy to source animals in the usual way. Dairy cattle in India are sent for slaughter after they have passed their productive prime, with agents from meat plants typically going house-to-house to buy up animals that are then trucked to abattoirs. Animal markets - banned or greatly restricted in scale under lockdown - are also a key source. “Questions remain over how quickly raw material can be procured and processed following all rules of social distancing,” an official at All India Meat & Livestock Exporters Association, told Reuters. Exporters, importers and association officials were not willing to be named because of the sensitivity over food supplies. The net effect of disrupted supplies from India will mean lower overall meat imports into cost-sensitive markets around Asia, said J.Y. Chow, food and agriculture expert at Mizuho Bank in Singapore. “The supply is getting disrupted, so any substitute will need to be sourced from an upgrade, and it will thus erode volume demand. No other country sells buffalo meat in the volumes that India does.”
3 May 04:00 • The Globe and Mail • https://www.theglobeandmail.com/world/article-indias-coronavirus-lockdown-curbs-buffalo-meat-exports-hitting-4/Rating: 2.18
India's coronavirus lockdown curbs buffalo meat exports, hitting Ramadan supplies
By Mei Mei Chu and Rajendra Jadhav KUALA LUMPUR/MUMBAI, May 3 (Reuters) - For more than a decade Kuala Lumpur street vendor Abu Zahrim Ismail has seen brisk sales of daging dendeng, a spicy buffalo meat jerky, during the Muslim holy month of Ramadan. But this year, the spread of coronavirus pandemic has slashed shipments of Indian buffalo meat, driving prices higher and hitting sales. Most meat processing plants in India, the world's second largest beef exporter and Malaysia's top supplier, have been shut as the South Asian nation fights to contain the pandemic. “The virus has really turned everything upside down,” Abu said. India typically sells more than 100,000 tonnes of buffalo meat every month, but in March exports dropped to around 40,000 tonnes, according to two exporters. Sales are likely to have been even lower in April as widespread lockdowns took effect, and even in May are expected to remain well below normal despite some parts of the Indian economy re-opening, they added. "Right now things are not going in favour of our industry. Even though it is food, it is not considered essential as it is for exports," said one of the exporters who is based in northern state of Uttar Pradesh. "As of now all the exporters are trying to move their current stocks that they are holding." Wholesale prices of frozen buffalo meat in Malaysia have climbed 15%-20% from a year ago this month during the Ramadan festival, which usually accounts for up to 20% of the country's annual consumption as families gather to break fast. "Typically, Malaysians would consume about 350 containers of buffalo meat a month from India, now it has fallen to half," said one importer based in Kuala Lumpur. Diminished retail demand during Malaysia's own lockdown has also hit overall meat import demand. “We are only open for takeaway during the movement control order. Sales have dropped about 80%,” said Indian Muslim Restaurant Operators Association (Presma) president Ayub Khan. GLOBAL MEAT MESS In 2019, India shipped close to 1.5 million tonnes of beef, which is sourced largely from dairy buffalos, compared with 2.3 million tonnes sold by top supplier Brazil, according to the U.S. Department of Agriculture. The absence of those supplies is being acutely felt in Malaysia, which relies on India for 70% of beef imports, as well as in Indonesia where a quarter of imports come from India and buffalo is popular among lower income groups due to its low cost. Indonesian buyers - which were expected to buy 170,000 tonnes of Indian beef this year before virus-led delays kicked in - are trying to switch to other origins like Brazil and Argentina, industry sources in Jakarta said. But the global Covid 19 pandemic has made replacing those lost supplies difficult, especially after the world's biggest meat companies, including Smithfield Foods Inc, Cargill Inc, JBS USA and Tyson, halted operations at about 20 slaughterhouses and processing plants in North America after workers fell ill. Number one beef exporter Brazil has also been hit, with meat processor BRF registering 18 COVID-19 cases in late April at an industrial hub that employs about 3,100 people. RESTRAINED REBOOT Indian meat processors are keen to restart plants once restrictions are eased, but enduring social distancing measures mean it will not be easy to source animals in the usual way. Dairy cattle in India are sent for slaughter after they have passed their productive prime, with agents from meat plants typically going house-to-house to buy up animals that are then trucked to abattoirs. Animal markets - banned or greatly restricted in scale under lockdown - are also a key source. "Questions remain over how quickly raw material can be procured and processed following all rules of social distancing," an official at All India Meat & Livestock Exporters Association, told Reuters. Exporters, importers and association officials were not willing to be named because of the sensitivity over food supplies. The net effect of disrupted supplies from India will mean lower overall meat imports into cost-sensitive markets around Asia, said J.Y. Chow, food and agriculture expert at Mizuho Bank in Singapore. "The supply is getting disrupted, so any substitute will need to be sourced from an upgrade, and it will thus erode volume demand. No other country sells buffalo meat in the volumes that India does." (Writing and additional reporting by Naveen Thukral; additional reporting by Fransiska Nangoy in Jakarta; Editing by Michael Perry) © Copyright Thomson Reuters 2020. Click For Restrictions - http://about.reuters.com/fulllegal.asp
3 May 00:01 • Successful Farming • https://www.agriculture.com/markets/newswire/indias-coronavirus-lockdown-curbs-buffalo-meat-exports-hitting-ramadan-suppliesRating: 0.30
Live From Omaha, It’s Warren Buffett on Saturday Night
3 May 02:32
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Live From Omaha, It’s Warren Buffett on Saturday Night
It’s what we all needed to hear: “Nothing can stop America” — Warren Buffett’s way of saying, “We will get through this.” Saturday evenings aren’t normally the ideal time for tuning into a multi-hour investor conference, especially after being cooped up all week working from home due to the Covid-19 pandemic. But mere minutes into the live-streamed Berkshire Hathaway Inc. annual shareholder meeting, it was clear that something much more meaningful was unfolding. Buffett, sitting on a stage in an empty Omaha arena, began with a history lesson like no other — a vivid walk through the other moments in America’s past that tested its resiliency, but never broke it. At 89 years old, he’s lived through many of them. The current crisis “is creating a huge amount of anxiety and changing people's psyche and causing them to somewhat lose their bearings, understandably,” the chairman and CEO of Berkshire told his virtual listeners, while peering out where some 40,000 of them would normally be sitting. “The American magic has always prevailed and it will do so again.” While his unwavering confidence in the U.S. economy is hardly a new theme in Buffett’s lectures, they’re not normally so moving. Like many of those watching, he was in need of a haircut and acknowledged it, adding that he had grown used to wearing sweat suits — as opposed to the real suit and tie he donned on Saturday. It was a humanizing moment. Watching Buffett was like watching Dr. Anthony Fauci or New York Governor Andrew Cuomo, the two government leaders whose comforting words and realism have probably stuck with Americans most during the pandemic and helped to create a sense of hope and community. Even so, going into the event, it wasn’t quite so clear that Buffett still believed in his mantra, “America’s best days lie ahead.” He had been notably quiet in recent weeks, and Berkshire was selling stock and shunning acquisitions, a bearish signal for a company where the ethos is to buy when others are panicking. After all, Buffett once wrote: Berkshire has done neither, even with $137 billion of cash just sitting there. As such, some say his optimistic outlook doesn’t align with his actions of late. But Buffett explained that the panic hasn’t hit the stock and credit markets to the extent it did during the 2008 financial crisis — or not for as long, thanks to the extraordinary measures taken by the Federal Reserve. His investing during that time “was not designed to make a statement, it was designed to take advantage of what we thought were very attractive terms,” he said. He’s not finding as many enticing investments now, partly because of those Fed actions, which removed the need for many companies to seek a lifeline from a deep-pocketed savior like Buffett. The complicated public-health aspect of this downturn also makes it impossible to predict how long it will carry on or how much worse it will get before it gets better. “The cash position isn’t that huge when I look at worst-case possibilities,” Buffett said Saturday. There are also some industries that may be permanently altered by the coronavirus, such as airlines, Buffett said. Berkshire was a top-three shareholder in American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co. and United Airlines Holdings Inc. as recently as early April. Buffett has since decided to completely exit those positions: “The world changed for airlines and we wish them well.” Even though Buffett is still a believer in the long-term prospects of the U.S. economy as a whole, his 180-degree turn on the airline industry shows that he sees the virus changing at least some consumer behavior for good. That will affect future dealmaking. One of Buffett’s biggest takeovers was Precision Castparts, a supplier of airplane engine parts, which he bought for $37 billion in 2016. It was also his last major transaction. As fascinating as Buffett’s commentary was, the Q&A wasn’t the same without his usual sidekick, Charlie Munger, who is known for his quips and comically curt responses compared to Buffett’s monologues. Munger, Berkshire’s longtime vice chairman, is 96 years old and lives in California. Though he is in good health, Buffett said, it didn’t make sense to have him travel to Omaha — a reminder of both their ages, even if they are as sharp as ever. Instead of Munger, Buffett was joined by Greg Abel, who oversees all non-insurance operations under the Berkshire umbrella and is Buffett’s likely successor. "When I talk to Greg, sometimes I wonder, am I talking to Warren?” Lawrence Cunningham, a professor at George Washington University Law School and author of books on Berkshire, said during the meeting pre-show. It may be a while before others see him that way. While Abel answered some questions Saturday, he mostly deferred to Buffett and stuck to high-level corporate-speak. Buffett, who recently joked that his age puts him “in the urgent zone,” did have a message for whoever does replace him: “I will bet on America the rest of my life, and I hope my successors at Berkshire do.” He closed the evening with a smile and a laugh: “We’ll see you next year and we’ll fill this place!” Let’s hope. But if it turns out that this virtual event was the Oracle’s last time as the master of ceremonies, it will stand as a fascinating and beautiful sermon that will be remembered. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. To contact the author of this story:Tara Lachapelle at tlachapelle@bloomberg.net To contact the editor responsible for this story:Beth Williams at bewilliams@bloomberg.net
3 May 02:32 • Bloomberg.com • https://www.bloomberg.com/opinion/articles/2020-05-03/warren-buffett-tackles-coronavirus-in-berkshire-hathaway-q-aRating: 4.04
American magic will prevail – Warren Buffett
It’s what we all needed to hear: “Nothing can stop America” — Warren Buffett’s way of saying, “We will get through this.” Saturday evenings aren’t normally the ideal time for tuning into a multi-hour investor conference, especially after being cooped up all week working from home due to the Covid-19 pandemic. But mere minutes into the live-streamed Berkshire Hathaway Inc. annual shareholder meeting, it was clear that something much more meaningful was unfolding. Buffett, sitting on a stage in an empty Omaha arena, began with a history lesson like no other — a vivid walk through the other moments in America’s past that tested its resiliency, but never broke it. At 89 years old, he’s lived through many of them. The current crisis “is creating a huge amount of anxiety and changing people’s psyche and causing them to somewhat lose their bearings, understandably,” the chairman and CEO of Berkshire told his virtual listeners, while peering out where some 40,000 of them would normally be sitting. “The American magic has always prevailed and it will do so again.” While his unwavering confidence in the U.S. economy is hardly a new theme in Buffett’s lectures, they’re not normally so moving. Like many of those watching, he was in need of a haircut and acknowledged it, adding that he had grown used to wearing sweat suits — as opposed to the real suit and tie he donned on Saturday. It was a humanizing moment. Watching Buffett was like watching Dr. Anthony Fauci or New York Governor Andrew Cuomo, the two government leaders whose comforting words and realism have probably stuck with Americans most during the pandemic and helped to create a sense of hope and community. Even so, going into the event, it wasn’t quite so clear that Buffett still believed in his mantra, “America’s best days lie ahead.” He had been notably quiet in recent weeks, and Berkshire was selling stock and shunning acquisitions, a bearish signal for a company where the ethos is to buy when others are panicking. After all, Buffett once wrote: Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do.Berkshire has done neither, even with $137 billion of cash just sitting there. As such, some say his optimistic outlook doesn’t align with his actions of late. But Buffett explained that the panic hasn’t hit the stock and credit markets to the extent it did during the 2008 financial crisis — or not for as long, thanks to the extraordinary measures taken by the Federal Reserve. His investing during that time “was not designed to make a statement, it was designed to take advantage of what we thought were very attractive terms,” he said. He’s not finding as many enticing investments now, partly because of those Fed actions, which removed the need for many companies to seek a lifeline from a deep-pocketed savior like Buffett. The complicated public-health aspect of this downturn also makes it impossible to predict how long it will carry on or how much worse it will get before it gets better. “The cash position isn’t that huge when I look at worst-case possibilities,” Buffett said Saturday. There are also some industries that may be permanently altered by the coronavirus, such as airlines, Buffett said. Berkshire was a top-three shareholder in American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co. and United Airlines Holdings Inc. as recently as early April. Buffett has since decided to completely exit those positions: “The world changed for airlines and we wish them well.” Even though Buffett is still a believer in the long-term prospects of the U.S. economy as a whole, his 180-degree turn on the airline industry shows that he sees the virus changing at least some consumer behavior for good. That will affect future dealmaking. One of Buffett’s biggest takeovers was Precision Castparts, a supplier of airplane engine parts, which he bought for $37 billion in 2016. It was also his last major transaction. As fascinating as Buffett’s commentary was, the Q&A wasn’t the same without his usual sidekick, Charlie Munger, who is known for his quips and comically curt responses compared to Buffett’s monologues. Munger, Berkshire’s longtime vice chairman, is 96 years old and lives in California. Though he is in good health, Buffett said, it didn’t make sense to have him travel to Omaha — a reminder of both their ages, even if they are as sharp as ever. Instead of Munger, Buffett was joined by Greg Abel, who oversees all non-insurance operations under the Berkshire umbrella and is Buffett’s likely successor. “When I talk to Greg, sometimes I wonder, am I talking to Warren?” Lawrence Cunningham, a professor at George Washington University Law School and author of books on Berkshire, said during the meeting pre-show. It may be a while before others see him that way. While Abel answered some questions Saturday, he mostly deferred to Buffett and stuck to high-level corporate-speak. Buffett, who recently joked that his age puts him “in the urgent zone,” did have a message for whoever does replace him: “I will bet on America the rest of my life, and I hope my successors at Berkshire do.” He closed the evening with a smile and a laugh: “We’ll see you next year and we’ll fill this place!” Let’s hope. But if it turns out that this virtual event was the Oracle’s last time as the master of ceremonies, it will stand as a fascinating and beautiful sermon that will be remembered. © 2020 Bloomberg L.P.
3 May 11:00 • Moneyweb • https://www.moneyweb.co.za/news/international/american-magic-will-prevail-warren-buffett/Rating: 1.42
3 Insights From Warren Buffett At Berkshire Hathaway’s 2020 Annual Meeting
3 May 00:00
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3 Insights From Warren Buffett At Berkshire Hathaway’s 2020 Annual Meeting
Note: If you want to dive in deeper and discuss insights from Warren Buffett’s Berkshire Hathaway 2020 Annual Meeting, please reserve one of the few remaining spots at the free live webinar on Monday. Warren Buffett is idolized by many as the world’s greatest investor of all time. This is well-deserved based on the amazing amount of wealth that he has created for himself and others over decades. Unfortunately, if you were expecting that Buffett’s wisdom at Berkshire Hathaway’s 2020 annual meeting was going to yield easy answers about the current investment landscape, you are likely to be disappointed. There were 3 clear themes that struck me as I listened to the livestream of the meeting on Saturday. They left me with an impression of a man who is cautious and appropriately uncertain about the future developments of the world from here. It was also quite clear that Buffett did not think there were any opportunities of size attractive enough to invest in, either now or earlier this year. This is in stark contrast with the carefree stock-market rebound that has been occurring since the March lows, and should leave you quite a bit worried if you bought in to the narrative that there will be a quick economic and stock market rebound that is sustainable longer-term. 1. Warren Buffett Does Not Know, And Neither Do You! Warren Buffett: “The range of possibilities has narrowed now vs. when this started. It is not as bad as it could have been nor is it as good as it could have been.” Warren Buffett: “The range of possibilities is still extremely wide on the economic side. I don't really know of any parallels of the most productive country in the world sidelining its economy and workforce.” If you think that you know how this is going to play out, you are kidding yourself. You should always be thinking in ranges, and this time is no different. One thing that is clear is that there are still many surprises that can occur. The question isn’t even so much about the virus itself. The stock market is reacting, incorrectly, to the evidence that we have gotten that the health impact of this disease is not as bad as initially feared. That is likely to be true. What nobody knows is the second and third order consequences of our approach to the cure. Will people spend freely once the restrictions on life are relaxed? Will businesses hire workers back? Will there be social unrest as the losers in our society impoverished by the way things have played out through no fault of their own protest this outcome? Will the government’s unprecedented printing of money cause huge unintended consequences? Nobody knows, but the range of possibilities is wider than most of us can imagine. 2. The Investment Opportunities In Large Securities Were Unattractive At March Lows, Which Means They Are Even Less Attractive Today. Warren Buffett: “We have not bought anything because there was not anything attractive to do.” Warren Buffett: “We did not see anything attractive. A lot of companies got the chance to refinance because of the actions of the Federal Reserve.” Berkshire Hathaway was a net seller of equities this year, through the end of April. That should surprise you. It is certainly a very different take than the market’s which has rallied sharply off the March lows. Many stock market participants are now wistfully talking about the March lows as some kind of once in a generation investment opportunity. It was not, at least not on a wide scale in securities of large companies. At least not according to the man who has been most successful at investing across generations. That is not to say that there were not or are not good opportunities. There were and there are. However, these are not ones that Buffett can deploy billions of dollars in. Rather, they are only available to those who have much smaller pools of capital to deploy, and even in those circumstances the current opportunity set is far from amazing. Buffett has shined the light on the carefree complacency of many stock market participants who have not yet fully grasped the severity of our current situation. Those who think that what has happened is only a small bump in the investment road might be in for a rude shock to that perception and the value of their investment portfolios. Think about it, given the magnitude of the economic shock that we are experiencing, does it make sense that the U.S. stock market is down only 12% year to date? After having started at a very expensive level following a long bull market? I am no market expert – I am a value investor whose expertise is investing in individual securities, not market analysis. However, this picture makes little sense to me and smacks more of wishful thinking than of a sober assessment of all the possibilities. 3. Berkshire Hathaway’s Intrinsic Value Has Decreased Warren Buffett: “I don't think that Berkshire shares are a much more compelling value now than they were 3 months or 6 months ago.” Warren Buffett: “The amount of litigation that is going to be generated out of what has already happened, much less what is still to happen, is going to be huge.” That Warren Buffett thinks that Berkshire’s value has declined by a roughly similar amount as its stock price (which has declined roughly 19% year to date) is surprising. After all, part of the premise of the company’s construction is its rock-solid balance sheet, its ability to invest for the long-term in times of distress, and its managerial prowess which should allow many of its subsidiaries to increase their competitive advantage while their competitors are retrenching. Buffett talked about almost none of that, at least not in as far as suggesting that there hasn’t been a major hit to Berkshire Hathaway’s value. The question that you should be thinking about is that if one of the strongest companies in the world has seen such a large value impairment, what does that imply for many other companies that are less resilient? If there is one punchline from all of this for investors groping for a sense of what the future may hold, it is this: Be careful. The worst is unlikely to be behind us and caution will serve you well in preserving and growing your wealth.
3 May 00:00 • Forbes • https://www.forbes.com/sites/garymishuris/2020/05/03/3-insights-from-warren-buffett-at-berkshire-hathaways-2020-annual-meeting/Rating: 4.41
Warren Buffett discusses coronavirus pandemic, strength of America, airlines at Berkshire annual meeting
Berkshire hathaway chairman warren buffett, vice chairman greg abel take the stage at company’s annual meeting Buffett says vice chairman charlie munger is in ‘fine shape,’ and will return for 2021 annual meeting; says it did not seem worthwhile for vice chairman ajit jain to travel from new york for the meeting Buffett and abel are sitting several feet apart; buffett sat next to munger at previous annual meetings Buffett sees an ‘extraordinarily wide’ range of economic possibilities resulting from the coronavirus pandemic Buffett says he remains convinced that ‘nothing can basically stop america’ Buffett cites historical examples as the u.s. Civil war and the great depression to illustrate america’s ability to withstand adversity Buffett says dow jones average, which plunged soon after his birth during the great depression, took 20 years to return to its level when he was born, but americans ‘persevered, endured, prospered’ Buffett says: ‘nothing can stop america when you get right down to it…. Never bet against america.’ Buffett says ‘we are now a better country as well as an incredibly more wealthy country than we were in 1789’ Buffett says there is no reason to use borrowed money to participate in the ‘american tailwind’ Buffett says investors should not get in a position when market disruptions will affect them because they are leveraged, or are psychologically unable to absorb bad news Buffett says the best thing many investors can do is own the standard & poor’s 500 Buffett says he will bet on america for the rest of his life, and hopes his successors will too Buffett says he is not bothered in the least when berkshire invests in companies by purchasing its stocks, when it is not buying whole businesses Buffett says berkshire’s operating earnings will be ‘considerably less’ than if the coronavirus had not come along, at least through 2020 Buffett says he doesn’t know the consequences of shutting down the american economy, but says ‘it will work, whatever we do’ Buffett says federal reserve chairman jerome powell belongs on the ‘same pedestal’ as former fed chair paul volcker, for his response to the pandemic Buffett says he does not know the consequences of fed balance sheet expansion, but knows the ‘consequences of doing nothing’ Buffett says berkshire did not sell net $6.1 bln of stocks in april because of concern about markets Buffett says he decided he ‘made a mistake’ investing in airlines, saying the business has ‘changed in a very major way’ Buffett says ‘the world changed’ for airlines, taking away from their upside Buffett spoke about berkshire’s airline holdings — which have included american, delta, southwest and united — in context of explaining berkshire’s net stock sales in april
2 May 22:47 • Financial Post • https://business.financialpost.com/pmn/business-pmn/warren-buffett-discusses-coronavirus-pandemic-strength-of-america-airlines-at-berkshire-annual-meetingRating: 0.94
Tackling Corona: Industry Body Launches ‘Rise For Restaurants’ Initiative To Support Employees
3 May 12:57
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2 articles
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Tackling Corona: Industry Body Launches ‘Rise For Restaurants’ Initiative To Support Employees
In an effort to help the restaurant industry fight the bitter battle of survival due to the outbreak of COVID-19, the National Restaurant Association of India (NRAI) has launched 'Rise For Restaurants, a platform to support its 6 lakh members and their employees. Through the initiative, diners can support restaurants by buying virtual cash worth Rs 1,000 at a flat 25 per cent discount from the restaurants across India that are registered on NRAI. The coupons can be redeemed in the future against dining bills at the respective restaurants. At the time of purchase, customers only have to pay Rs 250. This amount will contribute towards paying the wages and salaries of restaurant employees. The remaining Rs 500 is to be paid by the customer only when they dine at the restaurant. The virtual cash can be used within six months from the purchase date, with limitless purchases and no minimum expenditure amount, blackout dates or redemption conditions. Gauri Devidayal, NRAI Managing Committee Member and Partner, Food Matters India said: "This is the first of its kind programme created by the industry, for the industry. The NRAI has developed this entirely keeping in mind the current plight of its members and their employees. Yet, unlike any other platform offering gift vouchers etc, this is the only program which recognises the concern that customers may have regarding the future recovery of restaurants and therefore, only requests 25% of the virtual cash value upfront. We have no doubt that customers will come out to support their local favourites." Some of the restaurants that are already live on R4R program are - Barbeque Nation, Caf? Delhi Heights, Carl's Jr, Desi Vibes, Farzi Cafe, Indigo Deli, Mahabelly, Mamagoto, Monkey Bar, Olive Bar & Kitchen, Punjab Grill, Redmango, Social, The Beer Cafe, The Big Chill Cafe, The Sassy Spoon, The Table, Zen, amongst many others. This news has been published via Syndicate feed. Only the headline has been changed.
3 May 12:57 • Swarajya • https://swarajyamag.com/insta/tackling-corona-industry-body-launches-rise-for-restaurants-initiative-to-support-employeesRating: 1.22
COVID-19 – The biggest winners and losers
Many businesses which were struggling before the coronavirus pandemic hit the world will not make it, while others will do very well during this period. This is the view of former FNB CEO and venture capitalist Michael Jordaan, who was speaking to The Nielsen Network’s Bronwyn Nielsen. Jordaan said businesses which will suffer include printed newspapers whose ad revenues will disappear and airlines which cannot operate. The extended lockdown will also hit cinemas, bars, restaurants and entertainment venues which are forced to remain closed. Jordaan added that commercial office space is under pressure as people work from home, and wine farms will suffer because of alcohol bans. There is, however, many businesses which will show growth because of the restrictions on physical movement and brick-and-mortar retail. “There is a big shift to online. We probably accelerated more in a few weeks than the prior decade,” Jordaan said. Businesses which are doing well are online shopping, online education, and things which support working from home. When looking at the share price performance of companies which are operating in the industries which Jordaan mentioned, he is right on the money. Amazon – a global leader in online shopping, online entertainment, and cloud services – hit an all-time high share price in April 2020. Zoom, which offers video communications to support remote working, has nearly doubled its share price since the pandemic hit. Netflix, Facebook, and Microsoft have also shown strong share-price recoveries in recent weeks. The table below provides an overview of the share price performance of prominent companies between 1 January 2020 (before the COVID-19 pandemic) and now. It clearly illustrates the varying impact on different industries, with some doing well while others are in deep financial trouble.
3 May 00:00 • MyBroadband • https://mybroadband.co.za/news/business/350270-covid-19-the-biggest-winners-and-losers.htmlRating: 1.91
Coronavirus: Experts optimistic on oil price rise - Premium Times Nigeria
3 May 21:38
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Coronavirus: Experts optimistic on oil price rise - Premium Times Nigeria
Despite the current crisis in the petroleum sector occasioned by a slide in crude oil prices, industry experts and policy analysts foresee that there will be stabilisation of crude oil price. They however warn stridently that Nigeria must seize the opportunity of the crisis to undertake long-awaited reforms of the sector and a diversification of the economy. These points, among others, were the resolutions from the maiden webinar series on Post COVID-19 Petroleum Agenda for Nigeria (PoCoPAN) hosted by OrderPaper Nigeria on April 27. The event tagged ‘COVID-19 Opportunity for Petroleum Reforms in Nigeria’ was conveyed to aggregate thoughts on the petroleum sector crisis and how Nigeria can benefit from the misfortune of COVID-19. It featured two highly rated guest speakers – Joe Nwakwue (petroleum industry expert and former government energy advisor) and Tope Fasua (economist and public policy analyst) – and was organised in collaboration with Publish What You Pay Nigeria and DotCivics. In an outcome document signed by Oke Epia, Executive Director, OrderPaper Nigeria, and Convener, PoCoPAN, the experts noted that the crude oil price stabilisation will occur once the global economy picks up. Participants of the event were from the petroleum industry, the legislature, the academia, civil society organisations, and the media, among others. Resolutions from the event read: “Crude oil price would eventually stabilize as global economy gradually picks up (this is due to the fact that price volatility is an inherent characteristic of the Oil and Gas industry). “There is however, a pervasive concern that the nation may not learn from this present experience based on patterns deduced from previous oil price crash scenarios. “The present pandemic-induced economic crisis occasioned by the fall in crude oil price is as a result of obsolete and inappropriate policies that regulate the petroleum industry; lack of will by government to use resources from Oil and Gas to facilitate development of industry value chain & other sectors of the economy; over-dependence on foreign technology; and exportation of raw materials rather than refined products. “Funding of the 2020 national budget in the current crisis is a huge challenge attributed to the fact that Nigeria runs a petro-dollar economy (53% revenue of 2019 budget was provided by foreign exchange from Oil and Gas industry). “The country’s Oil and Gas industry has not witnessed new exploration in the last decade as critical stakeholders such as investors, host communities and the government remain unsatisfied with the current path the industry threads. “Diversification and re-invention of the economy from a sole petro-dollar source is highly imperative to insulate the country from the effects of future price volatilities.” The document further reads: “Critical decisions have to be made to determine models that are most suited for efficient running of the nation’s Oil Gas industry: Joint Ventures (JVs) and Production Sharing Contracts (PSCs) need to be re-evaluated so as to determine if the current arrangements are providing maximum benefits for the country. (A potential capacity of Oil and Gas business to generate between 12 and 15 trillion naira per annum was highlighted). “Revenue from Oil and Gas operations is needed to facilitate the country’s emergence from the Dutch disease hence, it was recommended that Reserve to Production (R/P) ratio should be increased, gas assets developed and the midstream sector enhanced in a string of industry diversification that will impact the economy in general. “The petrol subsidy regime strongly impedes development of the industry and cobbles the participation of private investors and should therefore be abrogated to allow for deregulation of the downstream sector. “The economic crisis presented by COVID-19 era is an opportunity to rethink and re-evaluate the modus operandi of the Oil and Gas sector and the nation’s economy at large. Opportunities presented in the development of local technology (artisanal refining for instance), deep focus on gas exploration, development of indigenous human capital in critical sectors of the economy, and enactment of the Petroleum Industry Bill (PIB) should not be lost.” The thought leaders urged that the COVID-19 pandemic should present “a strong need for increased citizen engagements on transparency and accountability – holding government’s feet to fire – both on the management of the petroleum sector specifically and the nation’s public finance generally.”
3 May 21:38 • Premium Times Nigeria • https://www.premiumtimesng.com/news/more-news/391240-coronavirus-experts-optimistic-on-oil-price-rise.htmlRating: 0.30
‘End jumbo pay for NASS’ - The Nation Nigeria
Professor Jonathan Aremu is a Professor of International Economic Relations at the Covenant University (CU), Ota, Nigeria and a consultant at the Economic Community of West African States (ECOWAS) on Common Investment Market, Abuja, among other multilateral agencies. In this interview with Ibrahim Apekhade Yusuf he speaks on the implications of the falling oil prices on Nigeria and offers suggestions on the way forward. Excerpts: What is the implication of the falling oil prices on the economy? With the drastic tumbling price and unpredictable demand contraction facing the oil sector, coupled with COVID-19, there is urgent need to look into Nigerian economy and make urgent necessary adjustments that cut across the entire national public and private governance structure. Both the falling prices of crude oil, which is the main income earner for Nigerian economy, and the coronavirus pandemic is already having negative effects on the country’s main macroeconomic variables such as the exchange rate, price level, employment and growth. Thankfully, to achieve a return to the previous tradition of running the budget from January to December for better implementation and performance, the National Assembly worked on the appropriation bill presented it to the President before the end of 2019. But the speedy passage of the 2020 budget by the government appears meaningless with the global threat of coronavirus as well as the drastic collapse in the crude oil prices. The unpredictable time of exit of these twin problems suggest that there may not be any quick-fix solutions in sight; suggesting the need for fundamental structural changes in the economic governance. While the 2020 budget was benchmarked on an oil price assumption of $57 per barrel and oil production of 2.18m barrel per day; with the outbreak of coronavirus, the price has gone down to ridiculous level today showing that the economy may earn nothing in the next few months from the product. With the global COVID-19 disaster, the time for the Organisation of the Petroleum Exporting Countries (OPEC) to discuss cutting production to raise price appears to be irrelevant now. Since the money from oil accounts for about 60 per cent of our revenue and 90 per cent of our foreign exchange, the running and sustenance of Nigerian economy is determined by crude oil price. Furthermore, without the knowledge of the emergence of COVID-19 and falling prices of crude oil, budget 2020 is already a deficit one. Clearly, there is no way the federal government can mitigate the effects of these issues on the economy without drastic decisions; and the need to borrow more than what we envisaged in the budget may not even be a good option as well, unless the conditions for such borrowing will guarantee sustainable development of the economy. Unfortunately, we don’t know how long the coronavirus will stay, but from what the World Health Organisation (WHO) is saying, it is not disappearing now. Currently, the pandemic has resulted to lockdown of productive activities; and government can only try its best to contain it, but before everybody gets back to life, it will take some time. Even then, since the pandemic affects all sectors of the global economy, a lot of resources to fight it are required even in Nigeria. In other words, substantial budgetary provisions that would have been used to develop Nigeria economy are being deployed to contain the virus at a time when the sector that contributes substantially to the national revenue is in distress. How soon do you think the economy can recover from the shock of the global oil price crash? Clearly, the pace of Nigerian economic recovery from the ills of coronavirus and declining oil price remains abysmally slow, as declining real incomes and weak investment continue to weigh on economic activity, while external vulnerabilities remain on the increase, reflecting a higher account deficit and declining reserves that remain highly vulnerable to capital flow reversal; all of these would have negative implications on the national growth, price and exchange rate stability as well as employment. In other words, worsening oil prices and a falling exchange rate will create a further fiscal crisis, imports will become more expensive and inflation pressures will rise, productive sector wobble, unemployment and poverty will worsen and our external reserves further depleted. What would you suggest as a way forward? There is urgent need to re-organise our priorities, at both the executive and parliamentary arms of governance. The wastages in the executive arm in terms of overlapping of jurisdictions of activities in governance must be urgently restructured and remunerations for unnecessary activities removed forthwith such as reduction in the numbers of the Ministries, Departments and Agencies (MDAs). On the parliamentary side, the costs of maintaining this arm of governance is out of tune with the current realities. The question is: Does it means that even if we earn nothing from the oil, the National Assembly as still qualified for their jumbo remunerations; while the productive sectors of our national economy is on recess? We must be bold enough re-prioritise in the context of increasing dwindling of national resources. Coupled with the restructuring at the governance levels are other actions to such as: selective fiscal and monetary stimulus in areas that will have an immediate positive impact on our national productivities in all sectors. In addition, there is an urgent need to abandon the current protectionist trade and so as to improve the business climate. The current national debt profile is definitely not sustainable to growth; thus, outright cancellation as well as rescheduling should be embarked upon with the assistance of support from the global economic governance institutions.
3 May 01:40 • Latest Nigeria News, Nigerian Newspapers, Politics • https://thenationonlineng.net/end-jumbo-pay-for-nass/Rating: 0.30
Bangladesh 9th strongest economy
3 May 18:00
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Bangladesh 9th strongest economy
Bangladesh ranks ninth in a global league table of 66 emerging economies measured according to their financial strengths to cope under the strain of Covid-19 outbreak. The Economist, a globally acclaimed magazine for economic and political analyses, placed Bangladesh even before China, which has been ranked 10th, for Bangladesh has fared relatively better in all indicators. Botswana topped the list and it was followed by Taiwan, South Korea, Peru, Russia, the Philippines, Thailand and Saudi Arabia. South Asian giant India ranked 18th, Vietnam 12th, Indonesia 16th, Malaysia 25th, Pakistan 43rd and Sri Lanka 61st. The ranking examines the economies across four potential sources of peril -- public debt as percentage of GDP, foreign debt (both public and private), cost of borrowing and reserve cover. It also calculates their foreign payments owed by the countries this year (their current-account deficit plus their foreign-debt payments) and compares them with their stock of foreign-exchange reserves. A country's rank on each of these indicators is then averaged to determine its overall standing. Bangladesh is not weak in terms of any of the four criteria. The strongest countries, such as South Korea and Taiwan, are overqualified for the role of emerging markets, said the report titled "Which emerging markets are in most financial peril?" Many bigger economies, including Russia and China, also appear robust. Most of the countries that score badly across all the indicators tend to be small. The bottom 30 account for only 11 percent of the group's GDP, and less than a quarter of both its foreign and its public debt, the Economist report said. Over the course of 2020, the 66 economies will have to find over $4trn to service their foreign debt and cover any current-account deficits. Excluding China, the figure is $2.9trn. But this leaves out the buffers that emerging economies have accumulated. The governments hold over $8trn in foreign-exchange reserves. Half have enough reserves to cover all of their foreign-debt payments due this year and any current-account deficits, the report added.
3 May 18:00 • The Daily Star • https://www.thedailystar.net/frontpage/news/bangladesh-9th-strongest-economy-1899241Rating: 2.11
The Economist sees Bangladesh as 9th strongest among emerging economies in coronavirus peril
The Economist has placed Bangladesh on the ninth position in terms of different indicators of financial strength among 66 emerging markets in peril over the coronavirus crisis. China is just behind Bangladesh while Botswana has been placed first, according to the rankings published by the magazine on Saturday. The others ahead of Bangladesh are Taiwan, South Korea, Peru, Russia, Philippines and Thailand. The Economist has ranked the countries using four potential sources of peril. These include public debt, foreign debt, and borrowing costs. It has also calculated their likely foreign payments this year and compare this with their foreign exchange reserves. “The damage to exports will be acute. Thanks to low oil prices, Gulf oil exporters will suffer a current-account deficit of over 3% of GDP this year, the IMF reckons, compared with a 5.6% surplus last year,” the magazine said of the economic impacts of the pandemic. When exports fall short of imports, countries typically bridge the gap by borrowing from abroad, it said. To weather the crisis, emerging economies may need at least $2.5 trillion, the IMF reckons, from foreign sources or their own reserves. One way to ensure countries have more hard currency is to stop taking it from them, The Economist said.
2 May 22:01 • Bdnews24 • https://bdnews24.com/economy/2020/05/03/the-economist-sees-bangladesh-9th-strongest-among-emerging-economies-in-coronavirus-perilRating: 2.85
GSTN Helpdesk handles over 56,000 taxpayer issues in one month of lockdown
3 May 10:00
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GSTN Helpdesk handles over 56,000 taxpayer issues in one month of lockdown
GST Network Helpdesk on Sunday said it has handled over 56,000 taxpayer issues in one month since the nationwide lockdown was imposed on March 25. According to data from GSTN, over 19,552 tickets raised by taxpayers were resolved between March 25 and April 24. The highest number of tickets handled in a day was 2,766 and the highest number of calls handled was 1,776. "However, due to the lockdown, there is a steep dip experienced in the call and ticket volume trend at GST helpdesk. The total received transactions (inflow of calls and GRP tickets) are approximately 20 per cent of the usual volume trend," GSTN said. Before the lockdown, on an average, GST helpdesk would receive around 8,000 to 10,000 calls every day, while around 2,000 tickets were raised on the GRP portal on a daily basis. The GST Helpdesk, whose 65 per cent of staff worked from home, was fully operational through its toll-free number from 9 am to 9 pm serving in 12 languages, it added. GSTN CEO Prakash Kumar said help desk agents had to work from home, calls had to be routed to them at their phone and this was done in a secured manner. "This was not a small job, but necessity made GSTN and its tech partner Tech Mahindra to do this. Today, a good number of associates are providing helpdesk support to GST stakeholders. We would continue to work ensuring 360-degree safety of people and process to combat the situation," Kumar added. Out of the 12 languages, the Hindi Helpdesk services received the highest number of calls comprising 61.66 per cent of the total call volume, followed by English language with 14.80 per cent volume. Marathi at 4.75 per cent received the third-highest number of calls, closely followed by Gujarati 3.65 per cent, Telugu 3 per cent, Bengali 2.93 per cent and Tamil 2.86 per cent. The other languages are Kannada, Punjabi, Oriya, Malayalam and Assamese which registered lesser call volume respectively.
3 May 10:00 • The Economic Times • https://economictimes.indiatimes.com/news/economy/finance/gstn-helpdesk-handles-over-56000-taxpayer-issues-in-one-month-of-lockdown/articleshow/75517202.cmsRating: 0.30
GSTN Helpdesk handles over 56,000 taxpayer issues in one month of lockdown
GST Network Helpdesk on Sunday said it has handled over 56,000 taxpayer issues in one month since the nationwide lockdown was imposed on March 25. According to data from GSTN, over 19,552 tickets raised by taxpayers were resolved between March 25 and April 24. The highest number of tickets handled in a day was 2,766 and the highest number of calls handled was 1,776. "However, due to the lockdown, there is a steep dip experienced in the call and ticket volume trend at GST helpdesk. The total received transactions (inflow of calls and GRP tickets) are approximately 20 per cent of the usual volume trend," GSTN said. Before the lockdown, on an average, GST helpdesk would receive around 8,000 to 10,000 calls every day, while around 2,000 tickets were raised on the GRP portal on a daily basis. The GST Helpdesk, whose 65 per cent of staff worked from home, was fully operational through its toll-free number from 9 am to 9 pm serving in 12 languages, it added. GSTN CEO Prakash Kumar said help desk agents had to work from home, calls had to be routed to them at their phone and this was done in a secured manner. "This was not a small job, but necessity made GSTN and its tech partner Tech Mahindra to do this. Today, a good number of associates are providing helpdesk support to GST stakeholders. We would continue to work ensuring 360-degree safety of people and process to combat the situation," Kumar added. Out of the 12 languages, the Hindi Helpdesk services received the highest number of calls comprising 61.66 per cent of the total call volume, followed by English language with 14.80 per cent volume. Marathi at 4.75 per cent received the third-highest number of calls, closely followed by Gujarati 3.65 per cent, Telugu 3 per cent, Bengali 2.93 per cent and Tamil 2.86 per cent. The other languages are Kannada, Punjabi, Oriya, Malayalam and Assamese which registered lesser call volume respectively.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
3 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/india/gstn-helpdesk-handles-over-56000-taxpayer-issues-in-one-month-of-lockdown-5216501.htmlRating: 0.30
International Economic Week In Review 4/27-5/1
3 May 21:35
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International Economic Week In Review 4/27-5/1
Summary Investment thesis: Most of the markets are still far too speculative to make any kind of investment. We're starting to get the economic reports about the severity of the damage and its severe. However, the China and Brazil trades from last week are still attractive for now. The latest Markit PMI for Chinashows a modest contraction in manufacturing (emphasis added): Here's a chart of the data: Notice how quickly the data bounced back to near the 50 level that separates expansion and contraction. New orders were at their lowest level in three months while employment dropped and backlogs increased. The primary problem is the drop in new export orders, which is shown in this chart: China was the first country hit by the pandemic; it shut down its economy about a month to a month and a half before other regions. The drop in export orders is caused by that four-to-eight-week delay. I would expect it to bounce back within the next few months. The Bank of Japan released its latest summary of economic projections and economic outlook, which contained the following observation about the long-term risks to the economy (emphasis added): While the first concern has been implied in the financial press, it hasn't been explained this well. The current thinking about the pandemic appears to be that it is largely a March-June period of aberrant economic activity that will naturally resolve itself by mid-3Q20. Assuming that to be the case, the consensus forecast is for a 2H20 economic rebound. But the longer this goes on, the more pronounced the negative impact of sentiment, which will have a negative impact on consumer and business spending. This is the first time I've seen the second observation and it's a very interesting point to make. The BOJ is arguing that should the outbreak continue for an extended time, the global economy would be forced to completely rethink itself using "information and communications technology" as central components of that transformation. It doesn't say what this will look like, only that technology would enable it to happen. In other news, Japanese retail sales were down 4.6% Y/Y in March while industrial production declined 5.2%. South Korea continues to be the best performing COVID economy: industrial production only decreased .3% M/M in March while retail sales increased 1%. Russia released two coincidental economic data points. 1Q GDP rose 2.1% Y/Y in 1Q20 while retail sales increased 5.6% Y/Y in March. Neither data set includes lockdown information, so the only thing they really show is that the Russian economy was in fair shape before the lockdown. EU GDP contracted 3.5% Y/Y in the first quarter: There is also new information from the largest EU economies: Today, not only did the ECB add a number of new programs to support liquidity, they also issued a new "whatever it takes" statement (emphasis added): Don't be surprised to see additional facilities in the future. Statistics Canada released a flash estimate for March GDP: Let's look at this week's performance table: Last week was a stellar week for Latin America: the ETF that tracks the region was the best performer, gaining 7.31%. Brazil rebounded from its sell-off, taking on a gain of 6.41%. A majority of the indexes were up or down modestly. China was the worst-performing sector; it was down 2.28%. Last week, I noted that traders with a high risk appetite might want to consider going long China or short Brazil. Both markets did the exact opposite.China was breaking out very nicely - until there was new talk of trade sanctions and heightened tensions between it and the US. There was also an uptick in hostilities between the mainland and Australia, as that country argued there should be an international investigation of the virus outbreak.Brazil rallied during the first part of the week but sold off on Thursday and Friday. I'd hold on to both for at least another week with a sell-stop on the China position just in case there's a sudden uptick in the war of words. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
3 May 21:35 • Seeking Alpha • https://seekingalpha.com/article/4342545-international-economic-week-in-review-4-27minus-5-1?source=feed_all_articlesRating: 0.30
Risk To Escalate When U.S. Monthly Employment Data Released Next Week
With the release of the US and EU GDP figures, Q1 is behind us. Amidst the great uncertainty, there is at least one thing that is clear. The current quarter is going to be worse, even if not for China. The good news is that with lockdowns gradually easing, the US and European Union, and parts of Asia are probably near the peak of the economic contraction. The March data suggested China was likely past its low point, and the April PMI, if one accepts it as face value, shows the domestic economy is gaining traction. The non-manufacturing PMI rose to 53.2 in April, which is above the six-month, 12-month, and 24-month averages (49.5, 51.6, and 53.0, respectively). Fears that China will take advantage of the situation to buy depressed assets are prompting many countries to look to tighten up rules about foreign direct investment, especially by state-owned companies. There also appears to be greater sensitivity to sectors, such as medicine and medical equipment, in which officials want to discourage foreign investment. In the week ahead, the April PMIs may pose some headline risk, but the preliminary reports steal most of the thunder. The May reports will be more interesting as the economies may begin showing signs of stabilizing, before turning up in June or July. The week will start slowly as China and Japan are on holiday through Tuesday and Wednesday, respectively. The most interesting, if not important, data point next week the US national employment data at the end of the week. In the four-week period up to the week the establishment survey was conducted, weekly initial jobless claims rose by an astounding 22 mln. Given high levels of uncertainty and unknowns, this gives a rough sense of the magnitude of the impact and, by chance, is also the median forecast for the loss of jobs last month. This in on top of the 701k jobs lost in March. From the household survey, the unemployment rate is derived. The rise in weekly jobless claims suggests something on the magnitude of 16.0%-16.5%. Here too, the impact has been so profound that the normal confidence intervals around forecasts are not helpful. Under usual circumstances, the difference of a couple tenths of a percent in the unemployment rate (or 100k in the nonfarm payrolls) is significant. Still, now the more considerable variability has been granted. It is also understood that the data lags the developments on the ground, and that thing will get worse in the months ahead. The US economy contracted by 4.8% (annualized pace) in the first quarter. It held up better than China (-9.8% quarter-over-quarter) and the eurozone (-3.8% quarter-over-quarter). The second quarter will likely tell a different story. China may return to growth. Local government infrastructure spending will provide the necessary fillip. The downturn in Europe and the US will accelerate sharply. A 10%-15% contraction in Q2 in the eurozone looks reasonable. In the US, the annualized decline in output of between 20% and 30% would not be surprising. The idea that the US economy will be "rocking" by July, as some officials have suggested, seems like one of those aspirational truths rather than a thoughtful economic projection. First, without a cure or vaccine, it appears that new flare-ups of the virus are nearly inevitable as social distancing is relaxed. Second, in aggregate terms, almost an eighth of the US workforce depends on mass transportation. Of course, it is not evenly distributed, with several large urban centers accounting for the bulk, and only about half of workers have access to public transportation. Until people feel safe, the re-opening can only go so far. Canada also reports April jobs data at the end of the week. Remember the proportions: As a rough and ready estimate, Canada's GDP is a little less than 1/10 of the US, and its population is a little more than 1/10 of America's. It lost more than a million jobs in March (divided almost 50/50 between full and part-time positions. As of May 1, there were three contributors to the Bloomberg survey for Canada's April jobs data. Two of them were looking for jobs losses of 5 mln or more. The third was the outlier at a still staggering 1.2 mln. The unemployment rate could rise toward 20%. Canada entered the crisis with fiscal capacity. Consider that the federal government's deficit was a little more than 0.5% of GDP in 2019. The ratio is a function of how large the contraction in the denominator (GDP) and how much the numerator (deficit) will rise. Canada's fiscal response is estimated to be almost C$100 bln or a little more than 4% of (2019) GDP. The IMF's new World Economic Outlook projects the Canadian economy to contract by 6.2% this year. Canada could wind up with a budget deficit of something around 5%. In contrast, the US budget deficit in 2019 was about 4.7% of GDP. The Congressional Budget Office projects this year's shortfall to be near $3.7 trillion or 18% of GDP. A common refrain is that US yields are low because the Federal Reserve is buying Treasuries. It is obscuring the price discovery process. Perhaps, but not in the way that one might suspect. If the Fed stood back completely and pulled back from the alphabet soup of facilities, the capital markets would seize up like a cardiac arrest. The demand for Treasuries would surge. Interest rates would plummet. This is not a projection or forecast. It is what happened for a few days in March when the markets were unhinged, and the 10-year Treasury yield fell to almost 30 bp. The stabilization of the capital markets saw the 10-year yield rise. Last month, it traded between about 54 bp and 78 bp. As the markets stabilized, foreign central banks also stopped selling Treasuries. For six consecutive weeks beginning in early March, foreign central banks sold nearly $110 bln of US bonds from their custody accounts the Federal Reserve holds for them. In percentage terms of their holdings, it is rather minor. When their holdings bottomed in early April, they were worth about $2.85 trillion. Still, it helped spark the Fed to offer repo facilities so foreign central banks would not have to sell their Treasuries. We were skeptical of its merits as 1) banks were already providing this kind of facility, and 2) that foreign central banks were not the disruptive element. Subsequent research at the Bank for International Settlements suggests it was large pools of leveraged capital playing for small incremental movements played a significant role, for example. The repo facility does not appear to have been utilized. However, as the capital markets stabilized, foreign central banks have begun buying back their Treasuries. In the last three reporting weeks, foreign central banks have bought about $24 bln of US Treasuries for their accounts at the Fed. One thing that could scare foreign investors and especially central banks is anyone who gave the recent press report that the possibility of that the US would default on debt owned by China a shred of credibility. Even if the US wanted to get China to "pay for Covid-19" by not servicing its debt, it is more complicated then merely not sending Beijing a check on the interest of the nearly $1.1 trillion of US Treasuries it held at the end of February (according to US estimates). It was quickly denied by Trump's chief economic spokesperson Kudlow. One cannot help but wonder why it was leaked in the first place. It is clear that such a topic is sacrosanct. Even broaching it is dangerous. The amount of money saved by not servicing debt that is owed to China would be lost many times over as a consequence. Was it planted intentionally to allow for the denial, and making the other retaliatory measures more palatable? Other actions, like removal of its sovereign immunity, which would make China subject to lawsuits in the US, is a dangerous road to embark upon as the US also benefits from it. The US could deny government pension funds from investing in Chinese stocks, but it would likely impact the returns more than China. While some US officials appear to have already reached a conclusion, many other countries in Europe and Asia have called for a thorough investigation. It is disheartening and troublesome that China is attacking those seeking an inquiry and not cooperating with the World Health Organization that is looking into the origins of the virus. China's markets are closed for the extended May Day holiday, which will carry into the first couple of days in the week ahead. The offshore yuan sold off on May 1, and the roughly 0.75% decline was the most since mid-March. The dollar was at its best level in nearly a month, reaching almost CNH7.14. Some suspect it could be China firing a warning shot. It might be, but it does not seem like the most likely explanation. The offshore yuan's decline began during US trading on April 30 and took another leg up in the NorthAmerican session on May 1. There was no need for Chinese officials to do anything because the market was doing it for them if a softer yuan was desired. Asset managers with onshore yuan or offshore yuan exposure (e.g., Dim Sum bonds) might want to hedge the currency risk using the offshore market. Speculators can express their views easier in CNH than CNY. We note that ahead of the weekend, US yields were slightly softer, as the equity losses, disappointing earnings, and weak data sapped risk appetites.
3 May 00:00 • Investing.com • https://www.investing.com/analysis/look-out-200523363Rating: 0.30
Kickstarter Prepares To Shed 'Up To 45-Per Cent' Of Staff
2 May 23:25
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Kickstarter Prepares To Shed 'Up To 45-Per Cent' Of Staff
Kickstarter has been transparent that, as a result of the pandemic, the number of fundraising projects on the platform is nowhere near normal. Today, the company confirmed to Gizmodo that shrinking revenues have forced it to drastically reduce staff. The economic impacts of coronavirus have been dramatic and difficult to predict: massive unemployment is an expectation when whole swaths of the economy shut down overnight, while farmers destroying their food and the collapse of the online ad market were far less obvious. With no physical footprint, Kickstarter would appear to be well positioned to weather this crisis, but that hasn’t been the case. “While people are continuing to support live projects on Kickstarter as normal, the COVID crisis has led to a 35% drop in live projects from a year ago,” David Gallagher, Kickstarter’s senior communications officer, told Gizmodo in an email. (Less than a month ago, the company stated that “the number of live projects on Kickstarter is down about 25% from this time last year,” suggesting the financial situation is continuing to worsen.) “Fees on funded projects are our only source of income. Our margins were already thin before the crisis, and we don’t know when this situation will turn around,” Gallagher stated. The news of staff reductions was first made public by OPEIU, the union which Kickstarter employees successfully joined in February, becoming the first major tech company to organise. According to the union, members “voted tonight to ratify a lay-off agreement with the crowdfunding company after CEO Aziz Hasan announced sweeping layoffs of up to 45 per cent of employees.” Gallagher contests the 45-per cent figure, and while the union solely refers to these reductions as layoffs, Gallagher indicated the staff reductions include some amount of voluntary buyouts. “When we know which employees are interested in leaving voluntarily, we will be able to look at those roles and the company’s strategic needs, and better understand the scale of any layoffs that may be required,” he wrote. Both Kickstarter and the union agree on the terms which were negotiated for departing employees, however, which include four months’ reverence, up to six months’ health insurance, and the ability to return to their current roles within a year if the company is in a position to hire for them. “It’s devastating that so many of our brilliant, passionate colleagues are being let go. But I’m incredibly proud that we were able to leverage our collective power to assure that the terms of our severance are generous, uplifting and well-tailored to the specific needs of our unique workforce,” Oriana Leckert, a Kickstarter employee and member of the union bargaining committee wrote in a statement. “We all wish we could have avoided this situation, but the outcome of these negotiations is better because of the open and collaborative process we undertook with the union,” Gallagher wrote. “We will have to say goodbye to colleagues and that is never easy. But we believe this agreement offers security to those we are letting go, and ensures Kickstarter can weather this crisis and serve its mission.”
2 May 23:25 • Gizmodo AU • https://www.gizmodo.com.au/2020/05/kickstarter-prepares-to-shed-up-to-45-percent-of-staff/Rating: 0.49
Kickstarter Prepares to Shed 'Up to 45 Per Cent' Of Staff
Kickstarter has been transparent that, as a result of the pandemic, the number of fundraising projects on the platform is nowhere near normal. Today, the company confirmed to Gizmodo that shrinking revenues have forced it to drastically reduce staff. The economic impacts of coronavirus have been dramatic and difficult to predict: massive unemployment is an expectation when whole swaths of the economy shut down overnight, while farmers destroying their food and the collapse of the online ad market were far less obvious. With no physical footprint, Kickstarter would appear to be well positioned to weather this crisis, but that hasn’t been the case. “While people are continuing to support live projects on Kickstarter as normal, the COVID crisis has led to a 35% drop in live projects from a year ago,” David Gallagher, Kickstarter’s senior communications officer, told Gizmodo in an email. (Less than a month ago, the company stated that “the number of live projects on Kickstarter is down about 25% from this time last year,” suggesting the financial situation is continuing to worsen.) “Fees on funded projects are our only source of income. Our margins were already thin before the crisis, and we don’t know when this situation will turn around,” Gallagher stated. The news of staff reductions was first made public by OPEIU, the union which Kickstarter employees successfully joined in February, becoming the first major tech company to organise. According to the union, members “voted tonight to ratify a lay-off agreement with the crowdfunding company after CEO Aziz Hasan announced sweeping layoffs of up to 45 per cent of employees.” Gallagher contests the 45-per cent figure, and while the union solely refers to these reductions as layoffs, Gallagher indicated the staff reductions include some amount of voluntary buyouts. “When we know which employees are interested in leaving voluntarily, we will be able to look at those roles and the company’s strategic needs, and better understand the scale of any layoffs that may be required,” he wrote. Both Kickstarter and the union agree on the terms which were negotiated for departing employees, however, which include four months’ reverence, up to six months’ health insurance, and the ability to return to their current roles within a year if the company is in a position to hire for them. “It’s devastating that so many of our brilliant, passionate colleagues are being let go. But I’m incredibly proud that we were able to leverage our collective power to assure that the terms of our severance are generous, uplifting and well-tailored to the specific needs of our unique workforce,” Oriana Leckert, a Kickstarter employee and member of the union bargaining committee wrote in a statement. “We all wish we could have avoided this situation, but the outcome of these negotiations is better because of the open and collaborative process we undertook with the union,” Gallagher wrote. “We will have to say goodbye to colleagues and that is never easy. But we believe this agreement offers security to those we are letting go, and ensures Kickstarter can weather this crisis and serve its mission.” Featured image: Kickstarter
2 May 14:00 • Gizmodo UK • https://www.gizmodo.co.uk/2020/05/kickstarter-prepares-to-shed-up-to-45-per-cent-of-staff/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+uk%2Fgizmodo+%28Gizmodo+UK%29&hl=enRating: 0.30
Pretty Little thing founder furloughs staff despite lavish lifestyle and £1bn fortune
3 May 16:56
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2 articles
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Pretty Little thing founder furloughs staff despite lavish lifestyle and £1bn fortune
The founder of fashion retailer Pretty Little Thing has placed his staff into furlough - despite being worth £1bn. Tycoon Umar Kamani, 32, has put 86 members of staff at his Manchester-based company into furlough, while he enjoys a lavish lifestyle in Dubai. Umar is one of many businesses who have decided to use the government's scheme which uses taxpayers money to pay 80 per cent of their wages. But Mr Kamani doesn't appear to be phased by the lockdown or the decision to furlough his staff when he posted a photo on Instagram of his Dubai home, along with his girlfriend Nada Adelle, 26, on April 18, with the caption 'isolationship'. Pretty Little Thing reported a turnover of £374m in 2018, six years after Umar launched the company. His father Mahmud founded internet fashion company Boohoo, which led Umar to launching his own company in 2012. Umar lives a luxurious lifestyle - he owns two Rolls-Royce cars, a Lamborghini worth £300,000 and other expensive cars. He is friends with some of the world's most famous celebrities, such as Denzel Washington, Jennifer Lopez and Kylie Jenner, and others. Umar also made £5m from an investment company that is developing a news coronavirus antigen test, according to reports. He spent £1m in shares in Avacta Group. which is working with US-based Adeptrix to develop a Covid-19 test. Mr Kamani paid 18p a share for stock in the company but shares continue to spike as the company continues to work on a test. Commenting on the decision to place its staff into furlough, a Pretty Little Thing spokesperson told the Mail Online : "We are entering an unprecedented period and while it is too early to quantify the future impact of Covid-19, we are taking measures to position the business to protect jobs going forward and keep the business on a strong financial footing in what we expect to be a temporary environment. "It is important to note that Pretty Little Thing staff are still being paid their full salary as a result of the Government furlough initiative and the company's decision to 'top up' salaries so they receive 100 per cent of what they would usually be entitled to each month." The spokesman added that some staff would be returning to work on Monday.
3 May 16:56 • mirror • https://www.mirror.co.uk/news/world-news/pretty-little-thing-founder-furloughs-21967380Rating: 2.39
Pretty Little Thing founder Umar Kamani worth £1billion took taxpayers' cash to furlough 86 staff... as the playboy tycoon lounges in a pool with his beautiful girlfriend
Lounging in a pool with his beautiful girlfriend, fashion tycoon Umar Kamani seems not to have a care in the world. But while the Pretty Little Thing founder enjoys a spa in Dubai, ordinary taxpayers are covering the cost of his employees' wages. The Mail on Sunday can reveal that the 32- year-old, whose personal wealth is estimated at £1billion, has furloughed 86 members of staff at his Manchester-based company. He took the decision shortly after the lockdown in order to use the Government's scheme, which uses taxpayers' money to pay workers 80 per cent of their usual income up to a maximum of £2,500 per month. Pretty Little Thing had a turnover of £374million in 2018, yet saddling the taxpayer with the cost of paying his workers didn't appear to trouble Mr Kamani when he posted a photograph at his Dubai home with girlfriend Nada Adelle, 26, on Instagram on April 18, with the caption: 'Isolationship.' On the same day, one of his employees wrote on Twitter about how missing work had left her feeling 'depressed' and 'bipolar'. Mr Kamani, whose father Mahmud founded the internet fashion firm Boohoo, launched his own company in 2012. His wealth has allowed him to buy a fleet of cars, including two Rolls-Royce Phantoms, a £300,000 Lamborghini Aventador, a £92,000 customised G-Class Mercedes and a high-end Range Rover. He leads a playboy lifestyle, regularly travelling by private jet to socialise with the likes of P Diddy, Jennifer Lopez and Denzel Washington. Other pictures on his Instagram account show him with US reality star Kylie Jenner, dining at the plush Nobu restaurant in Malibu and posing at the wheel of a yacht on Italy's Amalfi Coast. As well as deferring the cost of his staff to the taxpayer, Mr Kamani has made £5million from an investment in a company that is developing a new Covid-19 antigen test. Last month, he spent £1million on shares in Avacta Group. Mr Kamani paid 18p a share for stock in the company but the price has risen sharply throughout April on hopes the firm will successfully develop the antigen test. Shares closed on Friday at 109p each, giving the company a market capitalisation of £226.7million. That means Mr Kamani's investment is now worth almost £5 million. Last night, a spokesman for Umar Kamani, who lives in Alderley Edge, the Cheshire village popular with Premier League footballers, said: 'We are entering an unprecedented period and while it is too early to quantify the future impact of Covid-19, we are taking measures to position the business to protect jobs going forward and keep the business on a strong financial footing in what we expect to be a temporary environment. 'It is important to note that Pretty Little Thing staff are still being paid their full salary as a result of the Government furlough initiative and the company's decision to 'top up' salaries so they receive 100 per cent of what they would usually be entitled to each month.' The spokesman also said a number of Pretty Little Thing employees would be returning to work tomorrow. James Corden is taking a £45,000-a-week salary cut to cover the wages of 60 furloughed staff who work on his US chat show. The 41-year-old presenter of The Late Late Show took the decision after the CBS TV network said it would only cover the salaries of production workers until tomorrow. The show was shut down on March 15 due to coronavirus but relaunched with a skeleton crew from the garage of Corden's £8million Los Angeles home on April 14. Pledging to continue broadcasting, the comedian said: 'Socially, we can be as connected as ever. Physically, we can't be together, but socially and mentally we can be together. The world has never been more equipped for us to stay connected to each other.'
2 May 21:00 • Mail Online • https://www.dailymail.co.uk/news/article-8280965/Pretty-Little-Thing-founder-Umar-Kamani-worth-1billion-took-taxpayers-cash-furlough-86-staff.html?ns_mchannel=rss&ns_campaign=1490&ito=1490Rating: 4.11
Mexico says U.S. to maintain trade terms over sugar
2 May 22:04
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Mexico says U.S. to maintain trade terms over sugar
MEXICO CITY — Mexico’s government on Saturday said the U.S. Commerce Department had published a notification of its intention to keep an agreement regulating Mexican sugar exports into the United States active for another five years. The United States in 2014 imposed hefty duties on imports of Mexican sugar after determining the country’s sugar firms were dumping cheap, subsidized sugar into the U.S. market. The two governments then reached a deal to remove duties, which established quotas and minimum prices for imports of raw and refined sugars from Mexico. “The announcement…is a good sign for Mexican sugar exports, given that it provides certainty and maintains access to the U.S. market under preferential conditions,” Mexico’s economy ministry said in a statement. In the current sugar cycle, Mexico will be able to export up to 1,421,901 metric tons to the United States, the highest amount since the 2014 agreement, the ministry added. (Reporting by Miguel Angel Gutierrez Editing by Alistair Bell)
2 May 22:04 • Financial Post • https://business.financialpost.com/pmn/business-pmn/mexico-says-u-s-to-maintain-trade-terms-over-sugarRating: 0.94
Mexico says U.S. to maintain trade terms over sugar
MEXICO CITY (Reuters) - Mexico's government on Saturday said the U.S. Commerce Department had published a notification of its intention to keep an agreement regulating Mexican sugar exports into the United States active for another five years. The United States in 2014 imposed hefty duties on imports of Mexican sugar after determining the country's sugar firms were dumping cheap, subsidized sugar into the U.S. market. The two governments then reached a deal to remove duties, which established quotas and minimum prices for imports of raw and refined sugars from Mexico. "The announcement...is a good sign for Mexican sugar exports, given that it provides certainty and maintains access to the U.S. market under preferential conditions," Mexico's economy ministry said in a statement. In the current sugar cycle, Mexico will be able to export up to 1,421,901 metric tons to the United States, the highest amount since the 2014 agreement, the ministry added.
2 May 00:00 • Investing.com • https://www.investing.com/news/economy/mexico-says-us-to-maintain-trade-terms-over-sugar-2158804Rating: 0.30
Venture capitalists reveal the startups that changed everything in the past decade
2 May 20:10
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2 articles
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Venture capitalists reveal the startups that changed everything in the past decade
The 2010s were a wild ride for startups and the investors who pumped money into them. As the decade kicked off, smartphones were becoming ubiquitous, connecting billions of people to the internet — many for the first time — and paving the way for a wave of innovative business models. Online marketplaces and sharing economy platforms — Amazon, Facebook, Uber, Airbnb, and many more — demonstrated the power of network effects, and in doing so, completely changed how people and businesses interact with each other. Companies seized on the stream of constant, real-time, location-based, and personalized data that consumers volunteered via a growing list of smart devices to provide them with faster and more convenient services. Entrepreneurs had the wind at their backs, thanks to a flood of venture money and access to technical infrastructure — Amazon Web Services — meaning they could spin up and scale up their startups like never before. Unicorns seemed to appear everywhere, and tech IPOs had investors excited. But the tides began to turn in the second half of the decade as a flood of scandals chipped away at the idea that tech companies — and tech founders — are inherently good. Public investors became skeptical of the premium price attached to some tech companies, and the batch that went public in 2019 had a rough go of things. Four months into 2020, the unprecedented coronavirus pandemic has rocked the global economy and startup world, leading to at least 30,000 layoffs at venture-backed companies and even impacting unicorn tech darlings like Uber, Lyft, Airbnb, and Peloton as funding and sales have dried up. After speaking with five venture capitalists about how things have evolved since 2010, some clear lessons emerged — as well as some clear examples of those lessons. While it would be impossible to include every important startup, below are the companies that investors said have had the most impact on their industry in the past 10 years. Uber's Travis Kalanick, Theranos' Elizabeth Holmes, and WeWork's Adam Neumann: All were considered charismatic and visionary founders who sought to change the world, but each was eventually forced out of their respective companies amid scandal. When Holmes resigned in 2018 in the face of criminal charges and reports of fraud at Theranos, "everyone in venture really questioned their own diligence," Kristin Gunther, a principal at Revolution, told Business Insider. Gunther added that it made her reflect on how she engages as a board member. "Against a background where, for a couple years here, hot deals moved really fast and people could get funded based on two PowerPoint slides, it became even more important to say, 'Hey, fine, this is a hot deal, but I'm going to miss it because it's not worth it to cut the corners,'" Gunther said. Kalanick was also forced out for cutting corners. In 2017, investors orchestrated his resignation at a time when Uber's public image had plummeted. Once a company that every investor wanted in on, critics had started alleging that Uber enabled workplace harassment, skirted local regulations, and that Kalanick's own behavior had put the company on a crash course. Neumann, WeWork's eccentric founder, stepped down earlier this year after the company's failed attempt to go public led to reports of his extensive conflicts of interest, mismanagement, and bizarre behavior. All three companies epitomized Silicon Valley's obsessive focus on growth and a celebration of ambitious founders, which often ignored problematic behavior and business practices. "I just think we abandoned values in terms of, not just how we invested, but managed companies," Elliott Robinson, a partner at Bessemer Venture Partners, told Business Insider. The pervasiveness of social media and digital ads has given companies powerful new ways to connect with their target audience and helped enable the rise of direct-to-consumer brands. Anu Duggal, founding partner at Female Founders Fund, told Business Insider that social media has "enabled brands to have a direct conversation with those consumers and have that impact their actual product design." Duggal highlighted brands like Warby Parker and Glossier as companies that have effectively leveraged conversations with those consumers to inform product development. Jenny Lefcourt, general partner at Freestyle and founding member of All Raise, said another reason these brands have been so successful is that they've created "authentic community" among their consumers. "Maybe you go to Glossier because you love makeup and you start connecting with the community about that and before you know it, you start becoming friends and you're sharing travel tips," Lefcourt told Business Insider. These companies didn't initially seem like sure bets, however. Gunther pointed to online retailer Jet.com and its acquisition by Walmart as an important proof of concept, and said it "showed the exit path for some of these direct-to-consumer companies where that was really a question." It's no secret that venture capital firms — and, as a result, the entrepreneurs they fund — suffer from a lack of diversity. A recent survey by RateMyInvestor found that the typical founding team was a "two person, 'all male,' 'all white,' U.S. university-educated team residing in Silicon Valley." Over the past decade, however, with several women-led ventures reaching multi-billion-dollar valuations and Stitch Fix founder Katrina Lake becoming the youngest female founder to take a company public, investors are finally taking notice. "Venture capitalists are pattern matchers," Lefcourt said. "Seeing these women take these companies from start to IPO and be incredibly successful enables other venture capitalists — whether they're men or women — to change their view on what successful looks like." Venture capital firms still have a long way to go both in terms of who they invest in and who is doing the investing, especially when it comes to racial and educational diversity. But, at least when it comes to women-led ventures, Duggal said investors are "recognizing the fact that there are real returns to be made." RateMyInvestor's survey also found that venture funds have a strong geographical bias, with nearly half of all investments in the past five years going to startups based in Silicon Valley. But in recent years, several companies have revealed the untapped potential of other markets, particularly outside of the US. "There were always great companies and great innovation outside of the US," Victoria Treyger, general partner and managing director at Felicis Ventures, told Business Insider. But prior to Shopify, she said, "there was a belief that VC-backed companies outside of the US exited earlier." Shopify, which is based in Ottawa, Canada, is notable for its outsize role in empowering small and medium businesses. Robinson, who invested in Shopify, said that by building ecommerce tools and "multiple revenue streams off of a really large user base, that just really changed the way people thought about [software as a service]." Atlassian, an enterprise software company out of Sydney, similarly put Australia on the map. "I just see the number of [Atlassian] alums that are in that ecosystem," Treyger said, noting how employees of pioneering companies like Shopify and Atlassian often go on to start their own ventures. Israel has also become a hotbed of entrepreneurial activity. It has produced household names like Waze (which was acquired by Google) and, in 2018, 61 companies exited at an average deal size of $81 million. Within the US, cities like Chicago, Seattle, Denver, Portland, Atlanta, and Washington, D.C., have also seen massive increases in both investment and startups. Fintech was another sector this decade that saw major disruption and a flurry of new companies achieving massive valuations. Startups took advantage of the rise of smartphones, digital banking, and machine learning to bring more consumers into the financial system and upend how people spend, make, borrow, and exchange money. "When you look underneath, there is true technological innovation," Treyger said. "It's really exciting to see that the dollars went into companies that have truly transformed the financial service sector." As just a few examples, Stripe and Square helped change the way businesses get paid, Lending Club and SoFi took on incumbents in the personal loan space, and Robinhood reinvented how everyday consumers invest. Axel Springer, Insider Inc.'s parent company, is an investor in Uber.
2 May 20:10 • Business Insider • https://www.businessinsider.com/startups-that-changed-2010s-uber-shopify-stripe-2019-12Rating: 4.40
Venture capitalists reveal the startups that changed everything in the past decade
The 2010s were a wild ride for startups and the investors who pumped money into them. As the decade kicked off, smartphones were becoming ubiquitous, connecting billions of people to the internet – many for the first time – and paving the way for a wave of innovative business models. Online marketplaces and sharing economy platforms – Amazon, Facebook, Uber, Airbnb, and many more – demonstrated the power of network effects, and in doing so, completely changed how people and businesses interact with each other. Companies seized on the stream of constant, real-time, location-based, and personalized data that consumers volunteered via a growing list of smart devices to provide them with faster and more convenient services. Entrepreneurs had the wind at their backs, thanks to a flood of venture money and access to technical infrastructure – Amazon Web Services – meaning they could spin up and scale up their startups like never before. Unicorns seemed to appear everywhere, and tech IPOs had investors excited. But the tides began to turn in the second half of the decade as a flood of scandals chipped away at the idea that tech companies – and tech founders – are inherently good. Public investors became skeptical of the premium price attached to some tech companies, and the batch that went public in 2019 had a rough go of things. Four months into 2020, the unprecedented coronavirus pandemic has rocked the global economy and startup world, leading to at least 30,000 layoffs at venture-backed companies and even impacting unicorn tech darlings like Uber, Lyft, Airbnb, and Peloton as funding and sales have dried up. After speaking with five venture capitalists about how things have evolved since 2010, some clear lessons emerged – as well as some clear examples of those lessons. While it would be impossible to include every important startup, below are the companies that investors said have had the most impact on their industry in the past 10 years. Uber’s Travis Kalanick, Theranos’ Elizabeth Holmes, and WeWork’s Adam Neumann: All were considered charismatic and visionary founders who sought to change the world, but each was eventually forced out of their respective companies amid scandal. When Holmes resigned in 2018 in the face of criminal charges and reports of fraud at Theranos, “everyone in venture really questioned their own diligence,” Kristin Gunther, a principal at Revolution, told Business Insider. Gunther added that it made her reflect on how she engages as a board member. “Against a background where, for a couple years here, hot deals moved really fast and people could get funded based on two PowerPoint slides, it became even more important to say, ‘Hey, fine, this is a hot deal, but I’m going to miss it because it’s not worth it to cut the corners,'” Gunther said. Kalanick was also forced out for cutting corners. In 2017, investors orchestrated his resignation at a time when Uber’s public image had plummeted. Once a company that every investor wanted in on, critics had started alleging that Uber enabled workplace harassment, skirted local regulations, and that Kalanick’s own behavior had put the company on a crash course. Neumann, WeWork’s eccentric founder, stepped down earlier this year after the company’s failed attempt to go public led to reports of his extensive conflicts of interest, mismanagement, and bizarre behavior. All three companies epitomized Silicon Valley’s obsessive focus on growth and a celebration of ambitious founders, which often ignored problematic behavior and business practices. “I just think we abandoned values in terms of, not just how we invested, but managed companies,” Elliott Robinson, a partner at Bessemer Venture Partners, told Business Insider. The pervasiveness of social media and digital ads has given companies powerful new ways to connect with their target audience and helped enable the rise of direct-to-consumer brands. Anu Duggal, founding partner at Female Founders Fund, told Business Insider that social media has “enabled brands to have a direct conversation with those consumers and have that impact their actual product design.” Duggal highlighted brands like Warby Parker and Glossier as companies that have effectively leveraged conversations with those consumers to inform product development. Jenny Lefcourt, general partner at Freestyle and founding member of All Raise, said another reason these brands have been so successful is that they’ve created “authentic community” among their consumers. “Maybe you go to Glossier because you love makeup and you start connecting with the community about that and before you know it, you start becoming friends and you’re sharing travel tips,” Lefcourt told Business Insider. These companies didn’t initially seem like sure bets, however. Gunther pointed to online retailer Jet.com and its acquisition by Walmart as an important proof of concept, and said it “showed the exit path for some of these direct-to-consumer companies where that was really a question.” It’s no secret that venture capital firms – and, as a result, the entrepreneurs they fund – suffer from a lack of diversity. A recent survey by RateMyInvestor found that the typical founding team was a “two person, ‘all male,’ ‘all white,’ U.S. university-educated team residing in Silicon Valley.” Over the past decade, however, with several women-led ventures reaching multi-billion-dollar valuations and Stitch Fix founder Katrina Lake becoming the youngest female founder to take a company public, investors are finally taking notice. “Venture capitalists are pattern matchers,” Lefcourt said. “Seeing these women take these companies from start to IPO and be incredibly successful enables other venture capitalists – whether they’re men or women – to change their view on what successful looks like.” Venture capital firms still have a long way to go both in terms of who they invest in and who is doing the investing, especially when it comes to racial and educational diversity. But, at least when it comes to women-led ventures, Duggal said investors are “recognizing the fact that there are real returns to be made.” RateMyInvestor’s survey also found that venture funds have a strong geographical bias, with nearly half of all investments in the past five years going to startups based in Silicon Valley. But in recent years, several companies have revealed the untapped potential of other markets, particularly outside of the US. “There were always great companies and great innovation outside of the US,” Victoria Treyger, general partner and managing director at Felicis Ventures, told Business Insider. But prior to Shopify, she said, “there was a belief that VC-backed companies outside of the US exited earlier.” Shopify, which is based in Ottawa, Canada, is notable for its outsize role in empowering small and medium businesses. Robinson, who invested in Shopify, said that by building ecommerce tools and “multiple revenue streams off of a really large user base, that just really changed the way people thought about [software as a service].” Atlassian, an enterprise software company out of Sydney, similarly put Australia on the map. “I just see the number of [Atlassian] alums that are in that ecosystem,” Treyger said, noting how employees of pioneering companies like Shopify and Atlassian often go on to start their own ventures. Israel has also become a hotbed of entrepreneurial activity. It has produced household names like Waze (which was acquired by Google) and, in 2018, 61 companies exited at an average deal size of $81 million. Within the US, cities like Chicago, Seattle, Denver, Portland, Atlanta, and Washington, D.C., have also seen massive increases in both investment and startups. Fintech was another sector this decade that saw major disruption and a flurry of new companies achieving massive valuations. Startups took advantage of the rise of smartphones, digital banking, and machine learning to bring more consumers into the financial system and upend how people spend, make, borrow, and exchange money. “When you look underneath, there is true technological innovation,” Treyger said. “It’s really exciting to see that the dollars went into companies that have truly transformed the financial service sector.” As just a few examples, Stripe and Square helped change the way businesses get paid, Lending Club and SoFi took on incumbents in the personal loan space, and Robinhood reinvented how everyday consumers invest.
2 May 22:17 • Business Insider Nederland • https://www.businessinsider.nl/startups-that-changed-2010s-uber-shopify-stripe-2019-12/Rating: 0.30
RUTH SUNDERLAND: Furlough scheme needs to be extended and made more flexible, but it is not a long-term answer
3 May 20:52
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RUTH SUNDERLAND: Furlough scheme needs to be extended and made more flexible, but it is not a long-term answer
The clamour is growing for the Government to extend and improve its furlough scheme, which is subsidising the wages of around four million people. Quite right. Rishi Sunak, the Chancellor, has shown himself ready to listen over business loans and will no doubt do the same for job protection. He needs to roll out the scheme for longer in order to avoid a 'cliff edge' resulting in a huge wave of redundancies. It makes no sense to spend vast sums of taxpayers' money – the Office for Budget Responsibility estimates the gross cost of furlough at £49 billion – only for many of those people to lose their jobs later on. Coming out of lockdown will be a process. Business will not be anything like 'normal' for some time and the furlough must reflect that. There is certainly no chance of companies being back to the status quo ante by the end of June, when furlough is scheduled to finish. If that date is not pushed out, some companies will start announcing redundancy plans in the middle of this month to comply with the 45-day consultation period for laying off more than 100 employees. Furlough also needs to be made more flexible, to accommodate short-time working, as is the case of places like Germany. Many firms will want staff to come back on shorter hours at first and build up gradually. Social distancing and safety measures are likely to be in place until the health threat recedes. For many businesses, this means dramatically different practices, as we are already experiencing in the supermarkets. Fashion retailers, which will have a mountain of unsold stock, will have to limit the use of changing rooms and control the numbers in shops. They will have to consider what clothes people will buy in a post-corona world. Airlines face the disappearance of packed planes and cheap and easy mass travel. Instead there will be long waits to board, health checks, much more cleaning, quarantining and fewer passengers on planes. How much of the pub and restaurant trade remains viable with far fewer patrons is an obvious but uncomfortable question. The jobs market, which was strong before the virus, is likely to emerge looking dramatically different. Much of the informal gig economy will be hard hit. Security will be a bigger priority for a lot of people: jobs in the public sector are likely to be perceived as safer and will therefore become more popular. The rapid growth in people working beyond retirement age may well go into reverse: several employers I have spoken to have raised the issue of older workers who may have to self-isolate for long periods. At the other end of the generational scale, young people are having to delay their entry into the world of work. Even when the economy starts to re-awaken, they will face an incredibly difficult start to their careers. Realisation of just how catastrophic the pandemic is for the economy has been slow to seep in. Sadly, large parts of the economy will not be quick to bounce back. Furlough is a great idea but it was only ever meant to be a bridge to tide employers over a short-term loss of trade. Yes, it needs to be extended and made more flexible, but it is not a long-term answer. Realistically, however much we might hope not, a wave of redundancies seems inevitable. The consolation is that new jobs are being created in supermarkets, logistics, health care and call centres. Over time, adversity unleashes creativity and new sources of employment will emerge. But the 'jobs miracle' of the past few years is another casualty of this destructive virus.
3 May 20:52 • Mail Online • https://www.dailymail.co.uk/money/comment/article-8282663/RUTH-SUNDERLAND-Furlough-scheme-extended.html?ns_mchannel=rss&ns_campaign=1490&ito=1490Rating: 4.11
Business leaders: extend furlough to avoid millions of job losses
The chancellor Rishi Sunak is under intense pressure this weekend to offer a massive “second wave” of financial support to businesses within weeks amid growing fears of a catastrophic early summer of spiralling unemployment and company bankruptcies. With the government’s £40bn job-retention scheme running until the end of June, business groups and the Labour party are demanding that Sunak extend the scheme as a matter of urgency to give an essential lifeline to the UK economy. Under the scheme – known as furloughing – the government covers 80% of the wages of workers who are staying at home and not working at all, up to a cap of £2,500 a month. So far an estimated 140,000 UK companies have opted to furlough a total of around 4 million staff. But large and small employers have warned the Treasury that they will need to notify the government of widescale redundancies over the next fortnight if it fails to give details soon of subsidies it will offer beyond June. Last night The Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) said that pulling the plug on the furlough subsidy too early, before the lockdown had been lifted substantially, risked a return to unemployment rates not seen since the 1930s. Alan Lockey, head of the RSA’s Future of Work Centre, said: “There is an estimated 27% of the entire workforce on furlough, with more than 80% of workers in the hospitality sector affected. If those people were made redundant the level of unemployment would rocket to levels not seen since the Great Depression”. Tej Parikh, chief economist at The Institute of Directors, said that the government should try to avoid a cliff-edge moment where support ended suddenly: “Getting the economy running again won’t be like flicking a switch. Even if lockdown measures were completely lifted, many firms wouldn’t expect demand to lift to normal levels immediately. “A sharp removal of the furlough scheme at the end of June could cause significant problems for some businesses, so the government should explore how it could taper off the system in a flexible way.” Writing in today’s Observer, the shadow business secretary, Ed Miliband, calls on Sunak to do more. “Thousands of businesses face an existential threat, with risks to hundreds of thousands of their workers and the very fabric of our high streets and communities,” he writes. “Essential public health measures must be accompanied by economic help. The government must act urgently with a second wave of support, including, where necessary, an extension of the furlough scheme – with greater flexibility to enable part-time working – and it must look again at the gaps in current schemes.” Miliband also says that companies that pay dividends to shareholders should not be eligible for state support. “If you’re a large multinational and plan to pay dividends to your shareholders while claiming government resources, you clearly don’t need them. Every pound that goes to them is a pound denied to an SME [small or medium-sized enterprise] for whom it can make the difference between survival or going to the wall.” EasyJet paid £171m in dividends to shareholders last month while negotiating a £600m loan from the Treasury and the Bank of England’s emergency coronavirus fund. The airline’s founder and biggest shareholder, Sir Stelios Haji-Ioannou, received £60m of the dividend payout. Meanwhile Tesco paid a £635m dividend while accepting a similar-sized tax break from the government’s emergency coronavirus support package. Companies in the hard-hit hospitality sector have put more than 80% of their employees on the furlough scheme, while the average for the private sector is 27%. Treasury sources said last night that the issue of extending the furlough scheme beyond June was under review. It is in talks with business groups to allow companies to claim support for staff returning to work part-time to prevent a “cliff-edge decision” that would otherwise force companies to make a choice between reinstating employees or make them redundant. Make UK, the manufacturers’ trade body, has warned that firms would struggle to bring factories back to full capacity without a more flexible scheme that allowed for part-time working to be subsidised. Government officials are, however, cautious about extending subsidies beyond June following calculations by the Office for Budget Responsibility showing that the cost will exceed £100bn this year. The National Institute of Economic and Social Research said that the Treasury rescue schemes and extra spending by other departments were likely to send borrowing this year to in excess of £200bn, pushing the annual spending deficit above 10%. In an open letter to the prime minister, Boris Johnson, the president of the British Chambers of Commerce, Ruby McGregor-Smith said: “Beginning with the chancellor’s budget in March, Her Majesty’s government has acted at speed and scale to deliver cash to firms on the ground through loans, grants and the job retention scheme. Government must ensure these schemes continue to evolve to support a phased restart of the economy, enabling businesses to survive through this crisis and thrive in the future.” Johnson is expected to announce an outline strategy for lifting the lockdown late this weekend. Downing Street sources said that the priority would be getting as many businesses back to work safely, but only when the number of new Covid-19 cases had fallen substantially from its present level. They denied reports that the two-metre physical distancing rule could soon be relaxed. However, new measures to force people entering Britain to go into quarantine for two weeks are likely to be announced soon.
2 May 19:30 • the Guardian • https://www.theguardian.com/business/2020/may/02/business-leaders-extend-furlough-to-avoid-millions-of-job-lossesRating: 5.39
Protests see sale of .org suffix to investment firm shelved
3 May 12:31
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Protests see sale of .org suffix to investment firm shelved
The proposed 1.1 billion dollar (£880 million) sale of the dot-org online registry to an investment firm has been shelved following widespread opposition. The Internet Corporation for Assigned Names and Numbers (ICANN) board voted not to allow the sale to Ethos Capital of the website suffix that is widely used by non-profits and community groups. Activists, politicians and hundreds of organisations had protested that costs for non-profits would rise and freedom of expression would be at risk if a for-profit company were in charge of dot-org, one of the original domains created in the 1980s. Vetoing the sale is “reasonable, and the right thing to do,” said ICANN’s chairman Maarten Botterman in a blog post. Mr Botterman noted the “fundamental public interest nature” of the organisation that currently oversees dot-org which wold have been transferred to one “bound to serve the interests of its corporate stakeholders” had the sale gone through. He also expressed concern over what the debt involved in the transaction would mean for those dot-org users, which include public radio broadcaster NPR, the Metropolitan Museum of Art and medical humanitarian group Doctors without Borders. Ethos Capital and the Internet Society, the nonprofit founded by many of the internet’s early engineers and scientists that currently runs the registry, had said concerns were misplaced. The investment firm said in a statement that the decision “will suffocate innovation and deter future investment in the domain industry” and that it is evaluating its options. The Internet Society said it is disappointed “that ICANN has acted as a regulatory body it was never meant to be”. The Electronic Frontier Foundation, which had campaigned against the sale, said ICANN’s decision was a “stunning victory for nonprofits and NGOs around the world working in the public interest”.
3 May 12:31 • Jersey Evening Post • https://jerseyeveningpost.com/news/world-news/2020/05/02/protests-see-sale-of-org-suffix-to-investment-firm-shelved/Rating: 0.38
Sale of internet's dot-org suffix nixed after protests
NEW YORK — After widespread opposition, the organization overseeing internet domain names has voted against the $1.1 billion sale of the dot-org online registry to an investment firm. The board of the Los Angeles-based Internet Corporation for Assigned Names and Numbers voted not to allow the sale to Ethos Capital of the website suffix that is widely used by non-profits and community groups. Activists, politicians and hundreds of organizations had protested that costs for non-profits would rise and freedom of expression would be at risk if a for-profit company were in charge of dot-org, one of the original domains created in the mid-1980s. Vetoing the sale is “reasonable, and the right thing to do,” said ICANN's chair, Maarten Botterman, in a blog post . Botterman noted the “fundamental public interest nature” of the organization that currently oversees dot-org. That would have been transferred to one “bound to serve the interests of its corporate stakeholders” had the sale gone through, he said. He also expressed concern over what the debt involved in the transaction would mean for those dot-org users, which include public radio broadcaster NPR, the Metropolitan Museum of Art and medical humanitarian group Doctors without Borders. Ethos Capital and the Internet Society, the nonprofit founded by many of the internet’s early engineers and scientists that currently runs the registry, had said concerns were misplaced. Ethos had offered concessions including capping price hikes. The investment firm said in a statement that the decision “will suffocate innovation and deter future investment in the domain industry” and that it is evaluating its options. The Internet Society said it is disappointed “that ICANN has acted as a regulatory body it was never meant to be.” The Electronic Frontier Foundation, which had campaigned against the sale, said ICANN's decision was a “stunning victory for nonprofits and NGOs around the world working in the public interest.” © Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
2 May 20:25 • Japan Today • https://japantoday.com/category/tech/sale-of-internet%27s-dot-org-suffix-nixed-after-protestsRating: 2.09
7 jobs that can earn you a 6-figure salary in the $4 trillion auto industry
2 May 19:18
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7 jobs that can earn you a 6-figure salary in the $4 trillion auto industry
The global auto industry is, to be quite blunt, huge. It generates trillions in annual revenue and keeps millions employed. The pay can also be pretty good. A unionized hourly worker at vehicle assembly plant in the US can bring home a mid-five-figure yearly total, and with seniority and overtime, get close to $100,000. If you survey the entire industry, which supports everything from engineering to banking to insurance, you could easily find numerous six-figure salaries. At the moment, with automakers enduring massive manufacturing shutdowns and undertaking layoffs to deal with the coronavirus pandemic, employment in the industry is in limbo. But demand for cars isn't likely to vanish, so these careers remain good bets. Here's a sampling: "F&I" is auto-industry shorthand for "finance and insurance." If you've ever bought or leased a vehicle from an auto dealer, you've most likely interacted with an F&I professional. They're the last stage in the purchasing process, where you're walked through the details of your lease or loan, warranty, given the opportunity to buy into extras that are dealership-exclusive, deal with local DMV regulations and paperwork, and can have insurance coverage arranged. Sometimes, your dealer will introduce you to an F&I staffer during the buying process to review lease and loan options. The dealership, if it's franchised to sell major brands (Toyota, Ford, Cadillac, Mercedes, and so on), should have access to an automaker's captive-finance arm, as well as a bunch of banks that can make loans to buyers of varying creditworthiness. Almost nobody walks into a dealership with bag of cash, so an F&I manager has a very big job: he or she needs to figure how people from all walks of life can get across the car-buying/leasing finish line. Dealers make money from selling cars, but they make their real profits acting as loan brokers, insurance brokers, and by selling things like extended warranties to customers. That's why the F&I manager is well compensated — NADA reckons on average almost $133,000 a year — and often has received special training or a certification. The range is what one might expect here: designers at the beginning of their careers make less than six figures, but the pay is still good, in the mid-fives. Once you get some seniority, six figures is in sight. And if you become a major name in the field or oversee all design operations for a large automaker, you can rack up a lot more than $100,000. An experienced designer at a top auto brand should spend his or her days dealing with a team of fellow designers, meeting with the engineers who are determining how a vehicle is going to get built, and spending a lot of time sketching ideas, refining those ideas using computers drafting programs, and in some cases creating physical clay models and even making full-size "tape" drawings on walls. And not all designers work on exteriors — everything from seats to sun visors also have to be developed. Most car designers have graduated from a transportation-design program, such as the one at California's Art Center College of Design, whose alumni include Tesla's Franz von Holzhausen, Acura's Michelle Christensen, and the controversial Chris Bangle, formerly of BMW. Becoming an engineer has always been a great path to a good starting salary. But if you stick with the gig and labor in, say, the Detroit area for General Motors, Ford, and Fiat Chrysler Automobiles, you could expect to hit $120,000 if you achieve some seniority. (The BLS reports that the top 10% can earn almost $137,000.) By that point, you won't be tinkering with turbochargers any longer, but rather overseeing a group of tinkerers. Keep at it and satisfy the boss' demands and you could become the boss yourself. Then you become a manager and might be assigned an entire vehicle to launch. At a company such as Ford, high-pressure engineering roles involve new Mustangs and pickup trucks. Engineers typically have four-year degrees from colleges that are known for feeding into the car business, but grad-school isn't a requirement. Often, however, those with their sights on becoming executives will get MBAs. The median salary for an electrical engineer is about $95,000, so more senior folks could easily top $100,000. Demand for electrical engineers should dramatically increase in the coming decade as automakers shift from internal-combustion powerplants to EVs. The industry already employs electrical engineers, but going forward, battery designs and electric propulsion are going to require additional talent. The relative simplicity of EVs compared to gas vehicles doesn't mean they aren't complicated in other ways. Tesla, for example, has battery packs that require thousands of lithium-ion cells, all wired together and managed with software. Becoming a professional gearhead is actually not a bad career move, as skilled mechanics can make $40-50,000 annually. But as with other jobs in the rundown, the more experience and expertise you amass, the more you get paid. Master mechanics who have some years under their tool belts and have been trained and certified for complicated service and repair procedures are in demand and can command $100,000-and-up wages. College degrees aren't requires, and shortage of mechanics has some vocational schools stressing the potentially big-time paydays for trained mechanics. The Bureau of Labor Statistics reports that the median yearly salary for a software developer is $110,000. And while you might think that the auto industry needs mechanical engineers more than folks who can wrangle code, you'd be mistaken. In fact, as cars become more and more like rolling computers, and as companies such as Cruise, Waymo, and Tesla strive to crack the challenge of autonomous vehicles, a massive talent hunt is on in the world's auto capitals to hire software engineers. Some professionals could be trying to teach cars to drive themselves, but others could spend their days developing testing programs, supporting manufacturing teams and robotics efforts, or figuring out new ways to provide wireless connectivity to vehicles. In the good old days, trains loaded with iron ore would roll up to one side of Ford's famous River Rouge factory and finished cars would roll out the other side. But ever since the 1980s, such highly vertical manufacturing has been supplanted by so-called "lean" or "just in time" systems, with parts arriving as they're needed rather than being stockpiled in inventory. To make this process work for companies that do business around the world, the supply chain manager has entered the picture and taken on a critically important role. So important that various salary-tracking websites rank this job as one of the industry's best-paying. A degree in lots of fields can get you started, but areas such as business administration, math, economics, engineering, or science should expose you to the level of detail and organization you'd need to thrive in supply chain management.
2 May 19:18 • Business Insider • https://www.businessinsider.com/six-figure-jobs-in-the-auto-industry-2020-2Rating: 4.40
7 jobs that can earn you a 6-figure salary in the $4 trillion auto industry
The global auto industry is, to be quite blunt, huge. It generates trillions in annual revenue and keeps millions employed. The pay can also be pretty good. A unionized hourly worker at vehicle assembly plant in the US can bring home a mid-five-figure yearly total, and with seniority and overtime, get close to $100,000. If you survey the entire industry, which supports everything from engineering to banking to insurance, you could easily find numerous six-figure salaries. At the moment, with automakers enduring massive manufacturing shutdowns and undertaking layoffs to deal with the coronavirus pandemic, employment in the industry is in limbo. But demand for cars isn’t likely to vanish, so these careers remain good bets. Here’s a sampling: “F&I” is auto-industry shorthand for “finance and insurance.” If you’ve ever bought or leased a vehicle from an auto dealer, you’ve most likely interacted with an F&I professional. They’re the last stage in the purchasing process, where you’re walked through the details of your lease or loan, warranty, given the opportunity to buy into extras that are dealership-exclusive, deal with local DMV regulations and paperwork, and can have insurance coverage arranged. Sometimes, your dealer will introduce you to an F&I staffer during the buying process to review lease and loan options. The dealership, if it’s franchised to sell major brands (Toyota, Ford, Cadillac, Mercedes, and so on), should have access to an automaker’s captive-finance arm, as well as a bunch of banks that can make loans to buyers of varying creditworthiness. Almost nobody walks into a dealership with bag of cash, so an F&I manager has a very big job: he or she needs to figure how people from all walks of life can get across the car-buying/leasing finish line. Dealers make money from selling cars, but they make their real profits acting as loan brokers, insurance brokers, and by selling things like extended warranties to customers. That’s why the F&I manager is well compensated – NADA reckons on average almost $133,000 a year – and often has received special training or a certification. The range is what one might expect here: designers at the beginning of their careers make less than six figures, but the pay is still good, in the mid-fives. Once you get some seniority, six figures is in sight. And if you become a major name in the field or oversee all design operations for a large automaker, you can rack up a lot more than $100,000. An experienced designer at a top auto brand should spend his or her days dealing with a team of fellow designers, meeting with the engineers who are determining how a vehicle is going to get built, and spending a lot of time sketching ideas, refining those ideas using computers drafting programs, and in some cases creating physical clay models and even making full-size “tape” drawings on walls. And not all designers work on exteriors – everything from seats to sun visors also have to be developed. Most car designers have graduated from a transportation-design program, such as the one at California’s Art Center College of Design, whose alumni include Tesla’s Franz von Holzhausen, Acura’s Michelle Christensen, and the controversial Chris Bangle, formerly of BMW. Becoming an engineer has always been a great path to a good starting salary. But if you stick with the gig and labor in, say, the Detroit area for General Motors, Ford, and Fiat Chrysler Automobiles, you could expect to hit $120,000 if you achieve some seniority. (The BLS reports that the top 10% can earn almost $137,000.) By that point, you won’t be tinkering with turbochargers any longer, but rather overseeing a group of tinkerers. Keep at it and satisfy the boss’ demands and you could become the boss yourself. Then you become a manager and might be assigned an entire vehicle to launch. At a company such as Ford, high-pressure engineering roles involve new Mustangs and pickup trucks. Engineers typically have four-year degrees from colleges that are known for feeding into the car business, but grad-school isn’t a requirement. Often, however, those with their sights on becoming executives will get MBAs. The median salary for an electrical engineer is about $95,000, so more senior folks could easily top $100,000. Demand for electrical engineers should dramatically increase in the coming decade as automakers shift from internal-combustion powerplants to EVs. The industry already employs electrical engineers, but going forward, battery designs and electric propulsion are going to require additional talent. The relative simplicity of EVs compared to gas vehicles doesn’t mean they aren’t complicated in other ways. Tesla, for example, has battery packs that require thousands of lithium-ion cells, all wired together and managed with software. Becoming a professional gearhead is actually not a bad career move, as skilled mechanics can make $40-50,000 annually. But as with other jobs in the rundown, the more experience and expertise you amass, the more you get paid. Master mechanics who have some years under their tool belts and have been trained and certified for complicated service and repair procedures are in demand and can command $100,000-and-up wages. College degrees aren’t requires, and shortage of mechanics has some vocational schools stressing the potentially big-time paydays for trained mechanics. The Bureau of Labor Statistics reports that the median yearly salary for a software developer is $110,000. And while you might think that the auto industry needs mechanical engineers more than folks who can wrangle code, you’d be mistaken. In fact, as cars become more and more like rolling computers, and as companies such as Cruise, Waymo, and Tesla strive to crack the challenge of autonomous vehicles, a massive talent hunt is on in the world’s auto capitals to hire software engineers. Some professionals could be trying to teach cars to drive themselves, but others could spend their days developing testing programs, supporting manufacturing teams and robotics efforts, or figuring out new ways to provide wireless connectivity to vehicles. In the good old days, trains loaded with iron ore would roll up to one side of Ford’s famous River Rouge factory and finished cars would roll out the other side. But ever since the 1980s, such highly vertical manufacturing has been supplanted by so-called “lean” or “just in time” systems, with parts arriving as they’re needed rather than being stockpiled in inventory. To make this process work for companies that do business around the world, the supply chain manager has entered the picture and taken on a critically important role. So important that various salary-tracking websites rank this job as one of the industry’s best-paying. A degree in lots of fields can get you started, but areas such as business administration, math, economics, engineering, or science should expose you to the level of detail and organization you’d need to thrive in supply chain management.
2 May 19:18 • Business Insider Malaysia • https://www.businessinsider.my/six-figure-jobs-in-the-auto-industry-2020-2Rating: 0.30
Tesla applies to become UK electricity provider - The Telegraph
2 May 20:04
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Tesla applies to become UK electricity provider - The Telegraph
U.S. electric carmaker Tesla Inc has applied for a license to supply electricity in the United Kingdom, The Telegraph reported on Saturday. The purpose of the license may be to introduce the company’s “Autobidder” platform, the report https://bit.ly/2z18diE said, citing a company source. The application does not make clear why Tesla has applied for the license, The Telegraph reported. Having built a significant battery business in recent years, the carmaker is now preparing to enter the British market with its technology, the paper said, citing industry sources. (Reporting by Aishwarya Nair in Bengaluru; Editing by David Clarke)
2 May 20:04 • Financial Post • https://business.financialpost.com/pmn/business-pmn/tesla-applies-to-become-uk-electricity-provider-the-telegraphRating: 0.94
Tesla applies to become UK electricity provider: The Telegraph
(Reuters) - U.S. electric carmaker Tesla (NASDAQ:TSLA) Inc has applied for a licence to supply electricity in the United Kingdom, The Telegraph reported on Saturday. The purpose of the licence may be to introduce the company's "Autobidder" platform, the report https:// said, citing a company source. The application does not make clear why Tesla has applied for the licence, The Telegraph reported. Having built a significant battery business in recent years, the carmaker is now preparing to enter the British market with its technology, the paper said, citing industry sources.
2 May 00:00 • Investing.com • https://www.investing.com/news/technology-news/tesla-applies-to-become-uk-electricity-provider-the-telegraph-2158780Rating: 0.30
Buffett's firm plans online event after reporting US$50B loss
2 May 18:29
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Buffett's firm plans online event after reporting US$50B loss
OMAHA, NEB. -- Warren Buffett is planning to lead an unusual annual meeting Saturday afternoon without any of the roughly 40,000 shareholders who typically attend, but the investor will offer some of the commentary that draws the huge crowds. Berkshire Hathaway's annual meeting will be livestreamed and will include an abbreviated version of the question-and-answer session Buffett normally leads. All of the surrounding events, including a trade show where Berkshire companies sell their products, were cancelled this year because of the coronavirus pandemic, and Buffett will have a different partner for the question session. "It's going to be a strange annual meeting," said Andy Kilpatrick, a retired stockbroker who wrote a Buffett biography and has attended every annual meeting since 1985. Instead of sitting next to business partner Charlie Munger in an arena filled with shareholders, Buffett will be joined this year by Berkshire Vice Chairman Greg Abel, who oversees all of the company's non-insurance businesses, to answer questions in front of a camera. The two men likely will be asked about the nearly US$50 billion loss that Berkshire reported Saturday morning and the huge pile of cash the company is holding. Berkshire said it lost $49.7 billion, or $30,653 per Class A share, during the first quarter. That's down from last year's profit of $21.66 billion, or $13,209 per Class A share. The biggest factor in the loss was a $54.5 billion loss on the value of Berkshire's investment portfolio as the stock market declined sharply after the coronavirus outbreak began. The year before, Berkshire's investments added $15.5 billion to the company's profits. Buffett has long said Berkshire's operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely. By that measure, Berkshire's operating earnings improved to $5.87 billion, or $3,617.62 per Class A share, from $5.56 billion, or $3,387.56 per Class A share. Analysts surveyed by FactSet expected operating earnings per Class A share of $3,796.90 on average. Berkshire's revenue grew 1 per cent to $61.27 billion. The company said revenue slowed considerably in April as the virus outbreak negatively affected most of its businesses. Berkshire closed several of its retail businesses, such as See's Candy and the Nebraska Furniture Mart, this spring while BNSF railroad and its insurance and utility businesses continued operating. Berkshire is sitting on a pile of more than $137 billion cash because Buffett has struggled to find major acquisitions for the company recently. Edward Jones analyst Jim Shanahan said it was striking that Buffett didn't find any bargains to invest in at the end of the first quarter. "The lack of investment activity really sticks out," Shanahan said. Berkshire Hathaway Inc. owns more than 90 companies, including the railroad and insurance, utility, furniture and jewelry businesses. The company also has major investments in such companies as Apple, American Express, Coca-Cola and Bank of America.
2 May 18:29 • CTVNews • https://www.ctvnews.ca/business/buffett-s-firm-plans-online-event-after-reporting-us-50b-loss-1.4922190Rating: 2.87
What Warren Buffett Said at Berkshire Hathaway's 2020 Shareholder Meeting
Warren Buffett is the most closely followed investor in the world, and every year, shareholders of Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) look forward to hearing what the Oracle of Omaha has to say. Because of the coronavirus pandemic, however, the tens of thousands of people who would ordinarily descend on Nebraska's largest city to see Berkshire's annual shareholder meeting have instead had to settle for a live-streamed remote event. Despite not being able to invite shareholders to join him in person, Buffett nevertheless wanted to be sure to keep the lines of communication with investors open. Berkshire's chairman and CEO had plenty to say, answering questions compiled by well-known financial journalists and addressing some of the most important issues that Buffett's followers have had on their minds lately. Here are some of the most interesting things Buffett had to say at the May 2 shareholder meeting. Buffett has always believed in America, and nothing about the coronavirus pandemic has changed his views on that. He gave an extended history lesson about the nation, pointing to the challenges it's faced in the past and the way in which it has overcome them. Buffett has no illusions that he can predict where stocks will be tomorrow, next week, next month, or even next year. But he thinks America in 2020 is in better shape than it's been at any other time in its history, and he believes that investors who put money in stocks for the long run now will be amply rewarded. Buffett has famously said that he suggests that a perfectly good way for investors to participate in the gradual rise of the stock market over time is to invest in an S&P 500 index fund. With low expenses, index funds can give investors exposure to a wide swath of the businesses that have been responsible for America's economic success over the decades. Indeed, investing in an index fund isn't just a bet on the success of America. With so many multinational companies in the S&P 500, index funds give you ownership in the companies that are finding success around the globe. On a related topic, one reason Buffett advises index funds is that they're inexpensive. Too many people pay large amounts of money for financial advice, and Buffett is critical of the performance that most financial advisors are able to achieve. Buffett believes that most salespeople in the financial industry aren't able to deliver superior results, despite the fact that those salespeople generally "believe their own baloney," in his words. Another reason Buffett likes stocks right now is that the alternatives aren't very good. U.S. Treasury bonds with 30-year maturities yield just 1.25%. Berkshire itself has taken advantage of low interest rates by borrowing money at zero interest rates. Buffett thinks America's economic tailwinds will persist. But when all it takes to beat 30-year Treasuries is to match the rate of inflation, it's even more of a no-brainer in the Berkshire chief's views to invest in stocks instead. There's been a lot of speculation about the moves that Berkshire Hathaway has recently made with its airline stock holdings. In early April, Berkshire sold substantial amounts of its holdings in Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV), with disclosures necessary because of Berkshire's having held more than 10% of the two airlines' outstanding shares. At the time, it seemed as though Buffett might simply be reducing its positions below 10% to avoid future complications. However, Buffett reported selling a total of $6.5 billion in stock during April, far more than the Delta and Southwest sales that had been reported and also including shares of United Airlines Holdings (NASDAQ:UAL) and American Airlines Group (NASDAQ:AAL) as well. Questioned later, the Berkshire CEO said that the company sold off its entire positions in the four airlines. As he explained it, he "just decided I made a mistake." He had initially figured that investing $7 billion to $8 billion to buy 10% stakes in the four biggest U.S. airlines would give him about $1 billion in underlying earnings, which seemed like a reasonable value. However, Buffett said, "It turned out I was wrong about the business." Buffett didn't blame airline CEOs, who managed their companies well and did a lot of things right. However, the Berkshire leader no longer feels comfortable that airlines will ever recover to their pre-coronavirus levels, and even two to three years from now, it's possible that not nearly as many people will be flying. Unfortunately, even if airlines recover 70% to 80% of their pre-crisis passenger loads, they'll still have far too many planes. With airlines selling stock to raise capital, upside is limited. Buffett concluded, "The world changed for airlines, and we wish them well." Buffett has an optimistic attitude that investors around the globe find compelling. Even with all the uncertainty related to the coronavirus pandemic, the Oracle of Omaha's general demeanor was positive. For those who have been near panic as a result of the bear market in February and March, listening to Buffett can restore confidence in the stock market as a creator of long-term wealth. No matter what happens to the stock market in the months to come -- or to Berkshire's share price on Monday -- Buffett's words will provide reassurance and remind us how we've always managed to overcome difficult challenges in the past -- and will again this time.
2 May 23:15 • The Motley Fool • https://www.fool.com/investing/2020/05/02/what-warren-buffett-said-at-berkshires-2020-shareh.aspxRating: 0.30
Amazon sold sweets and drinks containing banned 'choking' ingredients
2 May 18:01
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Amazon sold sweets and drinks containing banned 'choking' ingredients
Banned ingredients have been found in sweets and drinks sold by Amazon. Which? discovered jellies made with the thickening agent konjac – banned by the EU because it can cause choking. And the consumer group said two soft drinks, Fresca Original Citrus and Mountain Dew, were listed by the online giant that contain brominated vegetable oil which is outlawed. The oil is used to stop ingredients separating in the bottle but can cause headaches, memory loss, and impaired balance. The items were on Amazon Marketplace which offers goods from so-called secondary sellers, not Amazon itself – and all have since been removed. Which? has previously found banned and recalled toys for sale via Amazon. Amazon said: “If customers have concerns about an item, we encourage them to contact our customer service so we can take action.” Consumer watchdogs who found the products for sale claim Amazon is failing to protect customer safety. They have already criticised the Amazon Marketplace site for selling toys deemed unsafe under EU safety rules. Marketplace sales offer goods supplied by so-called secondary sellers - rather than Amazon itself. The world’s biggest retail site hosts their listings. Sue Davies, head of consumer protection at Which?, said: “The Government must make their responsibility clear and ensure that unsafe products, including foods, are prevented from going on sale and swiftly removed if they are found.” The Food Standards Agency said: “Everyone involved in online marketplace selling - from the host platforms to the seller - must ensure food is safe. We want these companies to take more responsibility for the products sold on their sites.” All products have since been removed from the site. Amazon said: “Safety is important to us and we want customers to shop with confidence in our stores. We have proactive measures in place to prevent suspicious or non-compliant products from being listed and we monitor the products sold in our stores for product safety concerns. “When appropriate, we remove a product from the store, reach out to sellers, manufacturers and government agencies for additional information, or take other actions. I f customers have concerns about an item they have purchased, we encourage them to contact our customer service directly so we can investigate and take appropriate action.”
2 May 18:01 • mirror • https://www.mirror.co.uk/news/uk-news/amazon-used-sell-sweets-drinks-21963809Rating: 2.39
From sandwiches to saving lives: Donegal-based firm turns to making PPE
A packaging supply company is extending its business model to make face shields. Rapid Action Packaging (RAP) Ireland, based in Co Donegal, usually produces packaging for the food-to-go market. The company makes hygiene food packaging for sandwiches, hot products, chilled meats and ready meals. Its customers include coffee shops, convenience stores and retailer multiples - such as Tesco and Marks & Spencer. But it has turned over its production line to manufacture disposable personal protective equipment (PPE) in the form of face shields. The company has already begun operations by producing one million shields, of which the first 65,000 have been earmarked for free distribution to care homes across Ireland and the UK. RAP says it is able to reach full-scale production immediately to deliver between seven and 10 million face shields a week. The shield is lightweight and disposable for use among health support workers, cleaners, teaching staff, retail operatives and any other public facing role. The material used in the shield’s construction is a high barrier protective film, commonly used in the packaging industry to protect food against bacteria, virus and other harmful pathogens. The visor is laminated to a carton board frame, to provide a rigid head frame with an adjustable strap. It can be produced at a cost of around 14c per unit. James Neville is sales manager for RAP Ireland. He told Down to Business how it all started. "We actually got a phone call from a local HSE office in Donegal to our operations director John McDermott, asking what PPE products we could or potentially produce." "We would have normally got tooling from the USA, but we brought in tooling from the UK - and we were probably in production within four or five days". He said prototypes were ready within 48 hours, with the support of management. And there was not much change involved to what they do already. "It's a reel-fed machine, the reels being fed through are wide enough to produce a product like this. "And it's something we actually do for a lot of producers quite easily when they ask for a change or a different pack size". He said the business saw a massive downturn with the closure of food retailers, but that gap is now being filled. "The maths of it is we would have lost maybe 70% of our business during COVID-19 - and at the moment, in one day last week, we would have produced a million units. "And our distribution partner, Paramount Packaging, would have got that to every corner of Ireland within 24 hours. "If we can repeat that five to seven times a week, we're back in business". From sandwiches to saving lives: Donegal-based firm turns to making PPE
2 May 11:12 • Newstalk • https://www.newstalk.com/news/sandwiches-saving-lives-donegal-based-firm-turns-making-ppe-1009408Rating: 0.30
Disruption of global supply chains during pandemic creates tremendous opportunities to reindustrialise India
3 May 02:33
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Disruption of global supply chains during pandemic creates tremendous opportunities to reindustrialise India
As and when it is over and we are out of the lockdown, the first desire everywhere will be to return to what we had, the Old Normal, regardless of its many problems. Everyone will need to feel that the dreaded epidemic has been eliminated and they can live again as they used to. This is Repair. It involves helping many groups of people whose lives have been severely disrupted. All the people laid off due to the economy being shut down will need help with resuming their old life. Governments at the state level cannot help as they have been hit by loss of revenue due to the shutting down of alcohol shops and the drop in petrol sales, two sturdy sources of revenue. Only the Centre can help here. The Old Normal was a phase of growth recession. The Budget had already acknowledged the need for a fiscal stimulus. Now, as all other economies are doing, a massive reflation will be necessary to accomplish the tasks of repair, restoration and renewal. Restoration will be the urgent step which will take the economy back to a growth path. Opinion | What will we even tell ? How long before they can take Metro or hug a friend The most needy group is the urban workers in the informal sector, especially the migrants. These migrants have returned to their native areas lately with help from their ‘original’ states. Now to bring them back should be the Centre’s task as far as financing is concerned. Ideally, the Centre should compensate the states which have paid to bring ‘their’ migrants back home. The next task is to build a welfare state suitable to Indian conditions. Modi 1.0 began the task of providing health care, financial inclusion, digital access. MUDRA provided financial help for businesses run by women, Dalits, tribals. The need now is to address the biggest gap left by 70 years of economic policy — the large pool of the unemployed. The need is for a temporary unemployment benefit scheme for up to 100 days a year similar to the MNREGS so that urban workers do not suffer during short periods of unemployment. This will establish parity between rural and urban poor. Opinion | When all this is over, it really is important that big bosses of Indian journalism urge season of introspection Modi 1.0 also provided for rural housing on a large scale. The plight of migrant workers points to the need for urban housing. A massive programme of urban housing at affordable rents for eligible working families is needed across the large and small cities. Dharavi has been much romanticised in books and films. It should be a blot on Mumbai and India. The advantage of housing as a public infrastructure investment is its capacity for job creation as well as tackling homelessness. Given the large unfulfilled demand, this will have to be a multi-year investment project. This housing programme will help resume growth and sustain it over a long period. But there is a need to renew industrial growth. Over the last 70-plus years, India has frittered chances to become a centre of manufacturing on the scale of other Asian countries. This was due to labour laws which protected the small formal sector. This has led to the overhang of unemployment. The disruption of global supply chains during the pandemic creates tremendous opportunities to reindustrialise India. No previous government has been equal to this challenge. Modi 1.0 launched Make in India. Now is the chance for renewal. This article appeared in the print edition of May 3, 2020, under the name Need to renew industrial growth’ Opinion | State attacks Dalits via anti-Left rhetoric, as directly attacking them would cost it heavily
3 May 02:33 • The Indian Express • https://indianexpress.com/article/opinion/columns/india-industrial-growth-coronavirus-meghnad-desai-6390935/Rating: 0.30
Need to renew industrial growth: Modi 1.0 launched Make in India, now is the chance for renewal
As and when it is over and we are out of the lockdown, the first desire everywhere will be to return to what we had, the Old Normal, regardless of its many problems. Everyone will need to feel that the dreaded epidemic has been eliminated and they can live again as they used to. This is Repair. It involves helping many groups of people whose lives have been severely disrupted. All the people laid off due to the economy being shut down will need help with resuming their old life. Governments at the state level cannot help as they have been hit by loss of revenue due to the shutting down of alcohol shops and the drop in petrol sales, two sturdy sources of revenue. Only the Centre can help here. The Old Normal was a phase of growth recession. The Budget had already acknowledged the need for a fiscal stimulus. Now, as all other economies are doing, a massive reflation will be necessary to accomplish the tasks of repair, restoration and renewal. Restoration will be the urgent step which will take the economy back to a growth path. The most needy group is the urban workers in the informal sector, especially the migrants. These migrants have returned to their native areas lately with help from their ‘original’ states. Now to bring them back should be the Centre’s task as far as financing is concerned. Ideally, the Centre should compensate the states which have paid to bring ‘their’ migrants back home. The next task is to build a welfare state suitable to Indian conditions. Modi 1.0 began the task of providing health care, financial inclusion, digital access. MUDRA provided financial help for businesses run by women, Dalits, tribals. The need now is to address the biggest gap left by 70 years of economic policy — the large pool of the unemployed. The need is for a temporary unemployment benefit scheme for up to 100 days a year similar to the MNREGS so that urban workers do not suffer during short periods of unemployment. This will establish parity between rural and urban poor. Modi 1.0 also provided for rural housing on a large scale. The plight of migrant workers points to the need for urban housing. A massive programme of urban housing at affordable rents for eligible working families is needed across the large and small cities. Dharavi has been much romanticised in books and films. It should be a blot on Mumbai and India. The advantage of housing as a public infrastructure investment is its capacity for job creation as well as tackling homelessness. Given the large unfulfilled demand, this will have to be a multi-year investment project. This housing programme will help resume growth and sustain it over a long period. But there is a need to renew industrial growth. Over the last 70-plus years, India has frittered chances to become a centre of manufacturing on the scale of other Asian countries. This was due to labour laws which protected the small formal sector. This has led to the overhang of unemployment. The disruption of global supply chains during the pandemic creates tremendous opportunities to reindustrialise India. No previous government has been equal to this challenge. Modi 1.0 launched Make in India. Now is the chance for renewal.
2 May 17:43 • The Financial Express • https://www.financialexpress.com/opinion/need-to-renew-industrial-growth-modi-1-0-launched-make-in-india-now-is-the-chance-for-renewal/1946420/Rating: 2.37
IBA sets dates on when you can withdraw money
3 May 03:03
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IBA sets dates on when you can withdraw money
New Delhi, May 03: The Indian Banks Association introduced new rules to withdraw cash during the nation wide lockdown that was extended by another two weeks by the Centre. To ensure that there are no crowds, the association has specified dates so that there is no crowding outside the branches. The new rules say that those customers having 0 and 1 as the last digit number of their account number will be allowed to withdrawn cash on May 4. Similarly those with 2 and 3 can withdraw cash on May 5, while those with numbers 4 and 5 can take out cash on May 6. Customers with numbers 6 and 6 can withdrawn money on May 8 while those with 8 and 9 can withdrawn cash on May 11, the IBA also said. These restrictions would remain in force until May 11, following which these restrictions would be lifted. Customers can withdraw money from any ATM and there would not be any charge on that, the IBA also said.
3 May 03:03 • Oneindia • https://www.oneindia.com/india/iba-sets-dates-on-when-you-can-withdraw-money-3081999.htmlRating: 0.30
Indian Banks' Association brings new rules to withdraw money during lockdown
In a bid to reduce people's bank visits, the Indian Banks' Association (IBA) on Saturday introduced new rules to withdraw cash during the nationwide lockdown. The move will help in decreasing crowds do more work through electronic transactions. IBA has assigned specific dates to withdraw money so that there are no crowds outside the branches. Withdrawals will now be made on specific days bases on the last digit of a customer's bank account number. The new rules say that those having 0 and 1 as the last digit of their account numbers will be allowed to withdraw money on May 4. Similarly, those with 2 and 3 can take out money from their accounts on May 5. Those with 4 and 5 as last digits can withdraw on May 6. This way, customers having 6 and 7 as the last digits of their account numbers can withdraw on May 8 while those with 8 and 9 can withdraw the amount on May 11. This arrangement is only applicable till May 11. Post that, these restrictions will get lifted and anyone can withdraw money on any day. The step was taken by the IBA as in April, a large number of people formed a queue in front of the banks to withdraw money and social distancing could not be followed. Customers can also withdraw money from any ATM as there will be no charge for it, IBA has said. On the other hand, the government is depositing Rs 500 in the accounts of women under the Pradhan Mantri Garib Kalyan Yojana. Banks have advised them not to rush to withdraw the amount and it is safe in the accounts. The installment for April has been added to the women's accounts while the installment for May is under process.
2 May 18:08 • DNA India • https://www.dnaindia.com/india/report-indian-banks-association-brings-new-rules-to-withdraw-money-during-lockdown-2823424Rating: 1.31
Auto industry may cut R&D spending, exit unprofitable segments due to coronavirus: Deloitte
3 May 10:41
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Auto industry may cut R&D spending, exit unprofitable segments due to coronavirus: Deloitte
NEW DELHI: The domestic automobile industry might resort to cuts in spending on research and development (R&D) and also exit unprofitable businesses and segments with the coronavirus pandemic taking a toll on companies' revenues and cash flows, according to a report by Deloitte. The reduction in R&D activities may impact progress made in the alternative fuel technologies till now, the report noted. "The COVID-19 lockdown has had a multiplier effect -- the industry has been at a complete standstill since March 24. A prolonged truncation of consumer demand due to the lockdown is significantly affecting auto sector revenues and cash flows," Deloitte India Partner and Automotive Sector Lead Rajeev Singh said. In response, companies may resort to starving their R&D funding in order to sustain core operations, and potentially set back the progress made on alternative fuel and mobility technologies by 2-4 quarters, he added. "Eventually, some companies may even choose to take a strategic call to exit unprofitable markets and vehicle segments," Singh said. The auto industry in India has already undergone considerable slowdown over the past 12-18 months due to structural changes beginning with goods and services tax (GST), shift to shared mobility, axle-load reforms, the BS-IV to BS-VI transition and liquidity crunch, he noted. The domestic automotive industry is likely to witness a prolonged U-shape recovery, with a best-case recovery to 2018-19 sales volumes expected by 2021-22, the report said. Elaborating further, the report said the automotive dealers will have to resort to heavy discounting after the lockdown in order to clear inventory build-up. "Dealers face significant burden to liquidate unsold BS-IV inventory, estimated to be worth Rs 6,300 crore," it added. In this scenario, original equipment manufactures (OEMs) will need to support dealer groups, both financially and otherwise, further stressing their own balance sheet, the report said. Despite several difficulties, the report also outlines few positives for the industry. "The industry has responded in a very matured manner taking care of employees, customers and other stakeholders," Singh said. Some of the leaders in the industry are gearing up to the new normal -- working on digitising sales and marketing processes, setting up mechanism for contactless sales of new cars, automating backend processes to get more efficient and setting up new systems to start operations across the value chain, he added.
3 May 10:41 • The Economic Times • https://economictimes.indiatimes.com/industry/auto/auto-news/auto-industry-may-cut-rd-spending-exit-unprofitable-segments-due-to-coronavirus-deloitte/articleshow/75517713.cmsRating: 0.30
Review those policy papers
The effect of COVID-19 on the construction industry remains in the early stages. So far, construction in British Columbia has fared surprisingly well. We have avoided a government shutdown and for the most part we have avoided site and plant exposures, supply chain interruptions, significant labour shortages due to sick and quarantined employees, bankruptcies and project shutdowns. However, we are far from through this and a suite of risks still confronts the industry. As risks materialize, construction participants will want to know how to deal with their contractual commitments and whether losses arising from the contract will be recoverable. Some are turning to their insurers for coverage for losses with limited success. Prior to COVID-19, many would likely have assumed that most all-risk property policies do not provide cover for pandemic losses on the theory that these policies are typically meant to only cover “direct physical loss or damage” to insured property. That interpretation is however, being challenged — most notably with a class action lawsuit in Saskatchewan allegedly filed on behalf of businesses impacted by COVID-19. Companies should review their insurance policies carefully to determine whether their policy wording provides coverage for pandemic-caused business loss. If they have any questions about whether the policy provides coverage for specific losses, they should speak to their broker or lawyer. Shutdowns and many performance-related issues caused by the pandemic may constitute frustration of the construction contract. Frustration of a contract can occur when a party is prevented from performing its contractual obligations by an event outside its control. For the doctrine of frustration to apply, performance of the contract must have become substantially impossible. The event that occurred to prevent performance must have been unforeseen by the parties and neither party can have created the event. If this is found to have happened, the parties may be relieved from further performance of the contract as the court will imply a term into the contract that had the parties known of the frustrating event prior to entering the contract, they would have agreed to the termination of the contract in that eventuality. Shutdowns caused by government edicts relating to COVID-19 will almost certainly meet this definition, as will an inability to perform the contract due to entirely pandemic-caused events. Many contracts contain force majeure clauses that give specific relief from performance in the event of events outside of a contractor’s control. For instance, the CCDC2 contract form provides that contract time shall be extended for causes beyond the contractor’s control although it provides no cost relief in such circumstances. As always, it is important to read the entirety of the contract to see what specific force majeure relief the contract may provide. Finally, note that maintaining reasonable standards of COVID-19 safety has now become an industry standard. Failing to adhere to applicable standards can put a company at risk contractually and under the law of negligence. Norm Streu is president and chief operating officer of the LMS Reinforcing Steel Group. Christopher Hirst is managing partner and leader of the construction and engineering group, Alexander Holburn Beaudin + Lang LLP.
2 May 17:00 • Castanet • https://www.castanet.net/news/BC/298944/Construction-companies-should-check-contracts-insuranceRating: 1.34
App icons promoting wearing facemask amid COVID-19
2 May 16:09
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App icons promoting wearing facemask amid COVID-19
Internet companies like Urban Company, MakeMyTrip, Dunzo, HealthifyMe and Zomato are changing their social media handles and app icons to promote wearing face masks as a hygiene practice amid the COVID-19 pandemic. Apna Mask initiative -- an effort by StartUpVsCOVID (a startup community with over 1,000 members) -- is promoting homemade masks and aims to drive behavioural change to ensure that people wear masks and stay protected as they step out of their homes. The #ApnaDeshApnaMask campaign was kicked off by startup industry stalwarts like Rajan Anandan of Sequoia India, Paytm's Vijay Shekhar Sharma, Alok Mittal (Indifi), Vishal Gondal (GoQii) and others. They were later joined by celebrities like Vidya Balan, Dia Mirza, Juhi Chawla, Divya Khosla Kumar, Juhi Parmar, Deepshika Deshmukh, Sonu Sood, Shama Sikander, Preetika Rao and others. Within a span of two weeks, the initiative has garnered 100 million outreach across digital platforms, including WhatsApp, Twitter, Facebook and Instagram. The team working on the campaign also reached out to various organisations to support the initiative, especially as parts of the country get ready to come out of the lockdown which has been extended till May 17. "Urban Company, MakemyTrip, Dunzo, HealthifyMe, Zomato, Redbus, Ixigo, MoneyTap, MyUpchaar, Bounce, RazorPay, Medanta, WittyFeed, LBB, Porter, Meesho, Daily Hunt, 1mg, Paytm Games have changed their social media handles while some are changing the app icons as well," a statement said. These brands are also inviting more companies to join the initiative. "Given the immense response we have received, we will have more brands join #ApnaMask in this critical initiative. We believe some of these steps will be helpful in building habit changing behaviour towards wearing homemade masks," Poonam Kaul, co-founder of ApnaMask, said. In a separate statement, Crowdera -- an online fundraising platform -- said it is offering its premium syndicated fundraising technology solutions for free to companies and NGOs working to help the COVID-19 affected individuals, families and health workers. "Crowdera will be extending its support through offering its products and services worth almost USD 150,000 (Rs 1 crore) free to organisations aiding the affected...The solution will help corporations and NGOs to quickly syndicate with their own employees, influencers, other foundations, or charity partners to raise funds 10X more than through a regular crowdfunding campaign," it said. Under this pledge, Crowdera has already extended its support to companies like Rapido, Repos, BYJU'S, SirfTaxi, and Tartl to engage their employees and partners in fundraising for the COVID-affected workforce.
2 May 16:09 • Deccan Herald • https://www.deccanherald.com/business/business-news/app-icons-promoting-wearing-facemask-amid-covid-19-832668.htmlRating: 2.25
Apps don face masks to promote healthy practices amid COVID-19
Internet companies like Urban Company, MakeMyTrip, Dunzo, HealthifyMe and Zomato are changing their social media handles and app icons to promote wearing face masks as a hygiene practice amid the COVID-19 pandemic. Apna Mask initiative -- an effort by StartUpVsCOVID (a startup community with over 1,000 members) -- is promoting homemade masks and aims to drive behavioural change to ensure that people wear masks and stay protected as they step out of their homes. The #ApnaDeshApnaMask campaign was kicked off by startup industry stalwarts like Rajan Anandan of Sequoia India, Paytm's Vijay Shekhar Sharma, Alok Mittal (Indifi), Vishal Gondal (GoQii) and others. They were later joined by celebrities like Vidya Balan, Dia Mirza, Juhi Chawla, Divya Khosla Kumar, Juhi Parmar, Deepshika Deshmukh, Sonu Sood, Shama Sikander, Preetika Rao and others. Coronavirus India LIVE Updates Within a span of two weeks, the initiative has garnered 100 million outreach across digital platforms, including WhatsApp, Twitter, Facebook and Instagram. The team working on the campaign also reached out to various organisations to support the initiative, especially as parts of the country get ready to come out of the lockdown which has been extended till May 17. "Urban Company, MakemyTrip, Dunzo, HealthifyMe, Zomato, Redbus, Ixigo, MoneyTap, MyUpchaar, Bounce, RazorPay, Medanta, WittyFeed, LBB, Porter, Meesho, Daily Hunt, 1mg, Paytm Games have changed their social media handles while some are changing the app icons as well," a statement said. These brands are also inviting more companies to join the initiative. "Given the immense response we have received, we will have more brands join #ApnaMask in this critical initiative. We believe some of these steps will be helpful in building habit changing behaviour towards wearing homemade masks," Poonam Kaul, co-founder of ApnaMask, said. In a separate statement, Crowdera -- an online fundraising platform -- said it is offering its premium syndicated fundraising technology solutions for free to companies and NGOs working to help the COVID-19 affected individuals, families and health workers. "Crowdera will be extending its support through offering its products and services worth almost $150,000 (Rs 1 crore) free to organisations aiding the affected...The solution will help corporations and NGOs to quickly syndicate with their own employees, influencers, other foundations, or charity partners to raise funds 10X more than through a regular crowdfunding campaign," it said. Under this pledge, Crowdera has already extended its support to companies like Rapido, Repos, BYJU'S, SirfTaxi, and Tartl to engage their employees and partners in fundraising for the COVID-affected workforce. Follow our full coverage of the coronavirus pandemic here. Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/india/apps-don-face-masks-to-promote-healthy-practices-amid-covid-19-5214871.htmlRating: 0.30
Fiat Chrysler launches online 'touch-free' retailing for Jeep
2 May 15:14
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Fiat Chrysler launches online 'touch-free' retailing for Jeep
Customers need to submit details such as their contact information, geographical location, choice of vehicle variant, colour, powertrain and transmission. After reconfirmation, they can proceed to paying the booking amount via online payment options Fiat Chrysler Automobiles (FCA) India on Saturday announced the launch of its online 'touch-free' Jeep retail experience in response to continued movement restrictions and social distancing due to the coronavirus pandemic. Prospective customers can book and own a Jeep online without having to physically visit a showroom, and will enjoy the convenience of a test drive and sanitized vehicle delivery at their doorstep, the company said in a statement. FCA India President and Managing Director Partha Datta said, "Our commitment is to ensure customers can still continue to access Jeep at their fingertips. To ensure health, safety and convenience, we are making the Jeep retail experience as touch-free as possible." The online booking is being dovetailed into a 360-degree digital retail architecture that will deliver easy-to-use experience for customers and prospective customers can book and own a Jeep without leaving the safety of their homes, he added. Customers need to submit details such as their contact information, geographical location, choice of vehicle variant, colour, powertrain and transmission. After reconfirmation, they can proceed to paying the booking amount via online payment options. Afterwards, FCA's automated retail architecture will automatically create a unique ID and link the customer's information to its authorized dealer in that city and a sales executive will assist the customer for test drive, booking and final payment, the company added. "The touch-free retail experience is designed to enhance convenience for customers. Physical distancing has become the new normal and keeping this in mind, our approach is to ensure customers as well as our dealer showroom staff are well protected," Datta said. Also read:Lockdown 3.0: Flipkart, Amazon, other e-tailers get nod to sell non-essentials in green, orange zones Also read: Coronavirus impact: Warren Buffett's Berkshire posts record net loss of $50 billion in March quarter
2 May 15:14 • Business Today • https://www.businesstoday.in/sectors/auto/fiat-chrysler-launches-online-touch-free-retailing-for-jeep/story/402701.htmlRating: 2.10
Coronavirus impact: FCA India launches online retailing for Jeep
Fiat Chrysler Automobiles (FCA) India on Saturday announced the launch of its online 'touch-free' Jeep retail experience in response to continued movement restrictions and social distancing due to the coronavirus pandemic. Prospective customers can book and own a Jeep online without having to physically visit a showroom, and will enjoy the convenience of a test drive and sanitised vehicle delivery at their doorstep, the company said in a statement. FCA India President and Managing Director Partha Datta said, "Our commitment is to ensure customers can still continue to access Jeep at their fingertips. To ensure health, safety and convenience, we are making the Jeep retail experience as touch-free as possible." Coronavirus India LIVE Updates The online booking is being dovetailed into a 360-degree digital retail architecture that will deliver easy-to-use experience for customers and prospective customers can book and own a Jeep without leaving the safety of their homes, he added. Customers need to submit details such as their contact information, geographical location, choice of vehicle variant, colour, powertrain and transmission. After reconfirmation, they can proceed to paying the booking amount via online payment options. Afterwards, FCA's automated retail architecture will automatically create a unique ID and link the customer's information to its authorized dealer in that city and a sales executive will assist the customer for test drive, booking and final payment, the company added. "The touch-free retail experience is designed to enhance convenience for customers. Physical distancing has become the new normal and keeping this in mind, our approach is to ensure customers as well as our dealer showroom staff are well protected," Datta said. Follow our full coverage of the coronavirus pandemic here.Moneycontrol Ready ReckonerNow that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.Download a copy
2 May 00:00 • Moneycontrol • https://www.moneycontrol.com/news/india/coronavirus-impact-fca-india-launches-online-retailing-for-jeep-5214481.htmlRating: 0.30
Das reviews credit flow, loan moratorium with bank chiefs
2 May 16:32
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Das reviews credit flow, loan moratorium with bank chiefs
Top officials of the Reserve Bank of India, including its Governor Shaktikanta Das, and Deputy Governors, met the chief executives of public and private sector banks on Saturday to review the current economic situation and took feedback on the credit flow and liquidity situation. Also read:School trustees’ body seeks monetary package from RBI The central bank also discussed the issue of loan moratorium in the meeting. The issue assumed significance in the light of the recent Supreme Court ruling that banks need to follow the RBI guidelines on moratorium in letter and spirit. There was a lot of customer complaints that banks and other lending institutions were not extending the loan moratorium benefit, particularly to non-banking finance companies. Credit flows to different sectors of the economy, including liquidity to NBFCs, micro finance institutions, housing finance companies and mutual funds, were discussed in the meeting, the RBI said. Some of the mutual funds also faced redemption pressure due to which RBI had opened a window specifically for these entities which can be accessed by banks to tap liquidity to lend to mutual funds. However, there was not much appetite from banks to tap the liquidity window. In his opening remarks, Mr. Das appreciated the efforts of banks in ensuring normal to near normal operations during the lockdown period, the RBI said. The interaction was held in two separate sessions through video conferencing. Post-lockdown credit flows, including provision of working capital, with special focus on credit flows to MSMEs, were also discussed. The government has provided significant relaxation for starting economic activities in the third phase of the lockdown that starts from Monday. Some other issues that came up during the interaction was monitoring of overseas branches of banks in view of the slowdown in economies across the globe, and stability of the financial sector.
2 May 16:32 • The Hindu • https://www.thehindu.com/business/das-reviews-credit-flow-loan-moratorium-with-bank-chiefs/article31490867.eceRating: 0.30
RBI guv Das chastises banks not doing enough on lending, NBFC liquidity
The Reserve Bank of India (RBI) has indicated giving relaxations to banks on audit of branches for 2019-20, as they face challenges in managing branch networks owing to the coronavirus lockdown. RBI Governor Shaktikanta Das on Saturday met heads of major banks, both from the public and private sectors, in two separate sessions through videoconferencing to review the current economic situation, liquidity to non-banking financial companies (NBFCs), and the issue of moratorium on loan repayments, among other things. Das reportedly chastised the banks for not doing enough on lending and NBFC liquidity. He was also upset about the failure of the Targeted Long Term Repo Operations 2.0 (TLTRO 2.0), but there was no warning or instruction. “The RBI can only urge,” said a person who was present in the meeting. The RBI also dwelled on preparations for conducting business after the lockdown. ALSO READ: Refunds save the day for April direct tax collection; mop-up down 5% The meetings were also attended by Deputy Governors M D Patra and M K Jain, besides other senior officers of the central bank, the RBI said in a statement. According to the statement, the RBI governor took stock of “credit flows to different sectors of the economy, including liquidity to NBFCs, micro finance institutions (MFIs), housing finance companies (HFCs), and mutual funds”. ALSO READ: RBI governor discusses NBFC liquidity, moratorium with bank chiefs Senior bank executives aware of deliberations said banks, including State Bank of India, were examining proposals for providing liquidity to NBFCs, HFCs and MFIs. Some of the assistance will be without using RBI’s liquidity windows (TLTRO) as banks are sitting on huge surplus money, they said. Preparations for results for the fourth quarter and FY20 by banks also came up for discussion. ALSO READ: Work relaxation amid lockdown fails to convince migrants to stay put Everything can’t be done remotely and physical movement of auditors to branches is necessary, banking sources said, adding that the emphasis was on doing this under due care to minimise health risks. There are some relaxations in terms of the number of branches to be covered under the audit plan. The Indian Banks’ Association (IBA) has made some suggestions to the banking regulator on audit activity. However, the RBI did not specify steps in this regard, bankers said. The governor appreciated efforts of banks in ensuring normal to near-normal operations during the lockdown, and stressed on post-lockdown credit flows, including for working capital, “with special focus on credit flows to MSMEs”, the statement said. Banks have conveyed they will adopt a segmented approach to scale up operations in the post-lockdown phase, and will first focus on green zones.
2 May 19:04 • Business-Standard • https://www.business-standard.com/article/finance/rbi-guv-das-chastises-banks-not-doing-enough-on-lending-nbfc-liquidity-120050300034_1.htmlRating: 0.30
Patterson-UTI Energy Will Use Its Financial Resources To Slip Out Of The Trouble
3 May 20:00
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Patterson-UTI Energy Will Use Its Financial Resources To Slip Out Of The Trouble
Summary PTEN Sees Rig Activity Dropping In Q2 In Q1, Patterson-UTI Energy (PTEN) stacked more than half of its rig fleet following the energy demand destruction, while it plans to retire more rigs in Q2. It already lowered its frac spreads earlier, and as such, will continue to take a hit on its top-line. However, for the rest of the year, it is likely to maintain its current frac fleet. It has undertaken various cost reduction initiatives, which can help produce positive adjusted EBITDA by the end of this year. As traditional services dry up, the company banks on data analytics-driven technological offerings to keep the top-line relatively steady. Despite reduced costs, I do not think the pressure on the company's margin will ease in the short-term. In the face of the crude oil price crash and the completions activity deceleration, PTEN has recently slashed dividends by 50%. The company does not have any near-term debt repayment risks. Although its free cash flow declined in Q1, with sufficient liquidity, I do not see any significant financial risks. Investors can expect subdued returns from the stock in the short-term. Crude oil price and energy activity revival hold the key for a medium-term recovery. Explaining The Current Strategies Amidst the energy market crisis, most of the oilfield services companies, including the majors like Halliburton (HAL) and Schlumberger (SLB), took to restructuring business and cleaning the balance sheets. For PTEN, too, cost reduction, preserving cash, and providing technologically upgraded products and services have become the short-term primary objective when the obstacles are stacked heavily against it. It plans to reduce indirect support costs, which can save it ~$100 million annually. However, these measures will draw one-time charges of $50 million in 2020. The company will also reduce capex by 47%, deploying most of its FY2020 capex in contract drilling. Also, it has already spent more than 50% of the budget in Q1. So, expect lower expenses for the rest of the year. On top of this, the company has slashed dividends by 50% and temporarily halted further repurchases. Investors need to remember that while much of the deceleration in pressure pumping activity took place even before the pandemic-led downturn started, the rapid reduction in E&P operators' activity begun reflecting on the company's rig activity during Q1. In my opinion, the pressure will continue in Q2 and Q3 as well. Providing cost-efficient technology-driven products, therefore, has become necessary when upstream capex is falling. It is currently focusing on data analytics, control systems, machine learning techniques. In that, it has introduced the PTEN+ data system to improve drilling performance, conducts remote directional MWD (measurement while drilling) activities, and plans to introduce remote blender operations in pressure pumping services. What Do PTEN's Key Metrics Suggest? By the end of Q1 2020, PTEN's average rig count was 123, or a 17% decline compared to 2019. Given the energy price recession, the company's management expects a steep fall in Q2. It expects to field 71 rigs operating under term contracts in Q2, while for the full year, the average can drop to 50 rigs. A majority of the company's rigs are super-spec, fit-for-purpose, pad-drilling APEX rigs, which are typically more productive and earn a higher margin. Many more rigs can become a standby. Since operators pay a reduced standby rate, this means PTEN's top-line will subside further in Q2. However, operating in the standby mode is also less costly, thus, protecting the operating margin to a large extent. So, the management expects average margin per operating day to decrease by a modest 5% in Q2 compared to Q1. Read more on PTEN's business and its strengths and weaknesses in my previous article here. How Are The Industry Indicators Doing? A continued decline in the upstream capex budget, led by the crude oil's price crash in the past couple of months, has not allowed the drilling activity to break the shackle. The crude oil price plummeted in Q1 (64% down from Q4), and continued to decline in Q2 2020 so far. The U.S. rig count was down by 36% in Q1. The number of drilled wells and drilled-but-uncompleted (or DUC) wells were relatively resilient in March compared to the beginning of the year in the key unconventional resource shales. In 2020, PTEN's management expects the industry activity to fall by 60% more, although it also acknowledges the lack of visibility due to the current volatility in the market. Many of PTEN's customers are slowing their activity, while many have already downsized their capex and production targets. Contract Drilling Segment: Analyzing Current Performance In Q1 2020, PTEN's average revenue per operating day remained steady compared to a quarter ago. However, the resilience was more than offset by significantly lower rigs operating (17% lower). During Q1, the company's Contract Drilling segment revenues declined by 1% quarter-over-quarter. The segment accounted for 63% of the Q1 revenues. Despite lower revenues, the segment witnessed a higher average rig margin per operating day (9% up) during Q1 compared to a quarter ago because the company kept its operating costs per operating day lower. As of March 31, the company's contract drilling backlog was ~$440 million, which was 27% lower compared to its backlog on December 31, 2019. The lower backlog indicates diminished revenue visibility in the future and can affect the company's top line adversely in the short-term. Pressure Pumping Segment: Performance And Outlook PTEN's Pressure Pumping segment revenues decreased by 23% quarter-over-quarter in Q1 2020. The company's active frac spread declined to five by the end of Q1 compared to 11 in Q4 2019. The decline reflects a reduction in completion activity. Pressure pumping margin as a percentage of revenues weakened to 8.1% in Q1 from 18% in Q4. The pressure pumping cost structure has been quite high for some time. So, the company initiated various structural cost-cutting measures, which are expected to result in $65 million (annualized) support cost savings. The company's spreads were earlier located in the Permian, South Texas, Mid-Continent, and Northeast. However, to streamline operations, it closed down the Mid-Con facility and consolidated its operations in the South and the Northeast. In the South, it closed three maintenance facilities in Q1, while in the North, it closed two support facilities. It also expects the number of frac spread to decline to four in Q2 versus five in Q1. The company concedes that some of its customers completed frac operations in the middle of the pad, but they are unwilling to bring those wells online at the current price level. Based on the current completions activity slowdown, while revenues in this segment can fall further by 50%, the management expects to generate a positive adjusted EBITDA in 2H 2020. Dividend In March, PTEN halved its quarterly dividend per share to $0.02, which amounts to a 2.2% forward dividend yield. Helmerich & Payne's (HP) dividend yield (13.4%) is higher compared to PTEN. Total shareholder returns (dividend plus repurchase) declined by 67% in Q1 2020 compared to a year ago. As of March 31, ~$130 million remained due for further purchase. Capex And Debt In Q1 2020, the company spent $72 million in capex, which was 39% lower than a year ago. Despite lower capex, a sharp fall in cash flow from operations led to a significant decline in free cash flow in Q1 2020. In FY2020, the company expects capex to reduce by 44% compared to FY2018. Approximately 90% of the company's debt repayment lies in 2028 and 2029. With $752 million in liquidity (cash & equivalents plus revolving credit facility available), the company has very low near-term financial risks. Over the medium- to long-term, it might need to improve cash flows to lower leverage while making adequate shareholder returns. As I discussed above, it has recently lowered dividends to strike a balance between managing liquidity cash distribution to the shareholders. What Does The Relative Valuation Imply? Patterson-UTI is currently trading at an EV-to-adjusted EBITDA multiple of ~2.9x. Based on sell-side analysts' EBITDA estimates, the forward EV/EBITDA multiple is 8.2x. Between FY2015 and now, the stock's average EV/EBITDA multiple was 7.5x. So, it is currently trading at a steep discount to its past average. PTEN's forward EV-to-EBITDA multiple expansion versus the adjusted trailing 12-month EV/EBITDA is in line with its peers because sell-side analysts expect the company's EBITDA to decline nearly as much as the fall in EBITDA for peers in the next four quarters. This would typically result in a similar EV/EBITDA multiple compared to peers. The stock's EV/EBITDA multiple is lower than its peers' (NBR, HP, and LBRT) average of 3.2x. I have used estimates provided by Seeking Alpha in this analysis. Analyst Rating Source According to data provided by Seeking Alpha, three sell-side analysts rated PTEN a "buy" in April (including "Very bullish"), while 16 of the analysts rated it a "hold." Six of the analysts rated it a "sell" or "very bearish." The consensus target price is $2.98, which at the current price, yields ~17% negative returns. What's The Take On PTEN? In Q1, PTEN's contract drilling underperformed its expectations. While rig activity was looking to gain at the start of this year, the pandemic routed any semblance of a recovery. The company had to rapidly lower its rigs. More importantly, lower utilization will force it to stack more rigs in the coming quarters. The demand for hydraulic fracturing activity and pressure pumping operations was weak even before the ongoing demand-level crisis began, and so, the cutting of frac spreads came as no surprise. Rather, the management sounds comfortable in maintaining its current spreads and even plans to generate positive adjusted EBITDA by the end of this year. The completions activity deceleration has taken its toll on the company's outlook as PTEN slashed dividends by 50%. It has undertaken cost reduction initiatives and froze share repurchase activities in Q1. In 2019, its strategy to extend the debt maturity profile became an important exercise given the rapid slowdown in the economy and its possible effect on the credit market. Although there are limited short-term financial risks, the company will do well to improve its free cash flow. I see enough pressure on the company's margin to not let the stock off the hook in the short-term. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
3 May 20:00 • Seeking Alpha • https://seekingalpha.com/article/4342533-patterson-uti-energy-will-use-financial-resources-to-slip-out-of-trouble?source=feed_all_articlesRating: 0.30
This Oil Stock Plans to Maintain Its 10%-Yielding Dividend
Magellan Midstream Partners (NYSE:MMP) hasn't been immune to the oil market downturn. The master limited partnership lost more than 30% of its value this year because of the impact the COVID-19 outbreak is having on volumes flowing through its pipelines. Because of that sell-off, Magellan's dividend yield has risen near 10% on concerns it might need to cut its payout as it navigates through these challenging market conditions. The company, however, believes it can generate more than enough cash to cover its current distribution while also continuing to expand its operations. That was one of the clear takeaways from its first-quarter earnings. Data source: Magellan Midstream Partners. The challenging conditions in the oil market started affecting Magellan's results during the first quarter as both its earnings and cash flow slipped a bit year over year. The company's refined products segment, however, delivered solid results overall. Revenue increased by $4.7 million because of higher transportation volumes and rates, fueled in part by the recent completion of the East Houston-to-Hearne pipeline segment. These positives offset lower demand caused by the travel and economic restrictions related to the COVID-19 outbreak as well as reduced drilling activities as a result of lower oil prices. Revenue in the company's crude oil segment, on the other hand, declined by $6.5 million. That was primarily due to fewer shipments on the Longhorn pipeline as a result of the recent completion of competing pipelines. The company also sold a 10% interest in the Saddlehorn pipeline in February, which affected earnings. Magellan Midstream is adjusting its outlook for this year because of the impact the COVID-19 outbreak is having on demand for refined products, as well as the affect lower oil prices are having on production volumes. The company currently estimates that it will generate between $1 billion and $1.075 billion of distributable cash flow this year. While that's below its initial guidance of $1.2 billion, it will provide the company with enough cash to cover its current distribution rate by 1.1 to 1.15 times. Magellan will maintain that level this year, instead of its initial plan to increase it by 3%. The company's forecast suggests it will be able to retain between $75 million and $150 million of excess cash, which will go toward financing its planned $400 million in expansion-related spending. It already funded $155 million of projects during the first quarter and had $139 million of cash on its balance sheet thanks to recent asset sales. Magellan also has one of the lowest leverage ratios and highest credit ratings among MLPs, which provides it with the flexibility to maintain its distribution and fund expansion projects. While 2020 will be a tighter year for Magellan, it believes its distribution coverage ratio will improve back above its 1.2 targeted level in the future as refined product demand returns to historical levels and commodity prices stabilize. Meanwhile, the company continues to evaluate more than $500 million of additional expansion projects that could drive future growth once market conditions improve. Despite all the challenges in the oil market, Magellan Midstream believes it has the balance sheet strength and cash flow stability to withstand this storm. That's giving the company the confidence to maintain its lucrative distribution this year. Meanwhile, it could resume growth in the future as conditions improve, and it sanctions additional expansion projects that boost cash flow.
2 May 15:21 • The Motley Fool • https://www.fool.com/investing/2020/05/02/this-oil-stock-plans-to-maintain-its-10-yielding-d.aspxRating: 0.30
Spain to launch 16 bln euro reconstruction fund - PM
2 May 12:56
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Spain to launch 16 bln euro reconstruction fund - PM
MADRID — Spain’s Prime Minister Pedro Sanchez said on Saturday his government would approve a 16 billion euros ($17.57 billion) reconstruction fund to help regional authorities deal with the social and economic damage from the coronavirus. Speaking at a press conference, Sanchez also announced that the use of masks on public transport would be compulsory from Monday. ($1 = 0.9105 euros) (Reporting by Nathan Allen and Graham Keeley; Editing by Andrew Cawthorne)
2 May 12:56 • National Post • https://nationalpost.com/pmn/health-pmn/spain-to-launch-16-bln-euro-reconstruction-fund-pmRating: 1.59
Spain to launch 16 billion euro reconstruction fund: PM
MADRID (Reuters) - Spain's Prime Minister Pedro Sanchez said on Saturday his government would approve a 16 billion euros ($17.57 billion) reconstruction fund to help regional authorities deal with the social and economic damage from the coronavirus. Speaking at a press conference, Sanchez also announced that the use of masks on public transport would be compulsory from Monday. ($1 = 0.9105 euros)
2 May 00:00 • Investing.com • https://www.investing.com/news/economy/spain-to-launch-16-billion-euro-reconstruction-fund-pm-2158671Rating: 0.30
CGT implications in transfer of income producing property
2 May 12:00
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2 articles
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CGT implications in transfer of income producing property
You recently wrote that I can change our family home to joint ownership by doing this "personally". Could you tell me how to do this? Our house in Melbourne is in my name because my husband was in business and requested that I be the nominal owner. He conducted this business in a home office on the ground floor of the residence. If we sell the house, which has appreciated somewhat since we occupied it, the office part will attract a sizeable Capital Gains Tax (CGT) amount, as it is about one third of the "footprint" of the property. My thinking is that if the house was in both our names we could spread the CGT between our two incomes, a small part of which is from the aged pension. J.T. In NSW, the State Revenue website is informative, telling us that if a family home is also used for other purposes, the duty exemption for transfers between spouses will only apply to the residential part of the home, unless only one room was being used for the business. In Victoria, the State Revenue Office is less helpful and its 21 page "Guide to Spouse/Domestic Partner Property Transfers in Duties Online", which you can download from the SRO website, says nothing about using part of a home for business purposes. The SRO’s client adviser (on 13 21 61) didn’t know the answer and its technical branch believed that as long as you meet all other requirements and the house is now wholly used as a principal residence, nothing in the law would reduce the exemption. Assuming you obtain an exemption, go to the website, propertyandlandtitles.vic.gov.au and look for "Transfer of Land Forms" to download the "Guide: Transferring property between spouses or domestic partners". It will give you the option for a non-monetary transfer under the quaint title "Natural love and affection". Having gone through all that, it is a grey area whether you will save on CGT when you sell. If you bought your home after 1985 and started using part of it to produce income for the first time after August 20, 1996, you are assumed to have bought the dwelling at its market value at the time. However, CGT will not apply if the business was run through a company or trust. Also, you may be able to apply one or more of the small business CGT concessions to reduce your capital gain. It's best to talk to a tax accountant, or seek a private ruling. Regarding your recent comments on the Australian Taxation Office's treatment of foreign pensions, our tax accountant in WA was apparently not aware of the deductible amount you mentioned in your answer. My wife and I have both been receiving defined-benefit pensions for a number of years from our Canadian employers and also from the Canadian Pension Plan. We are citizens of both Australia and Canada, are non-tax residents in Australia and spend more than half the year in Canada. We may follow our children back to Australia in future. Would the deductible amount from the Canadian defined-benefit pensions be tax exempt? P.C. As long as you are a non-tax resident, your Canadian pension is not taxable here. Once you live here for 183-days of a financial year, whether continuously or with breaks, you would be considered a tax resident and your foreign pensions would be taxable. Where tax is withheld in Canada, you can claim a foreign income tax offset, unless you are entitled to seek a refund there. Your personal after-tax contributions to the pension fund form the Undeducted Purchase Price (UPP). That part of your annual pension, which represents a return to you of your UPP, known as the deductible amount, is untaxed and is calculated by dividing the UPP by your life expectancy factor at the start of the pension. Should you move back to the much warmer Land of Oz, and want to claim a deductible amount, Google "ATO Request for a determination of the deductible amount of UPP of a foreign pension or annuity". If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Help lines: Australian Financial Complaints Authority, 1800 931 678; Centrelink pensions 13 23 00. All letters answered.
2 May 12:00 • The Age • https://www.theage.com.au/money/investing/cgt-implications-in-transfer-of-income-producing-property-20200501-p54oz5.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 2.20
CGT implications in transfer of income producing property
You recently wrote that I can change our family home to joint ownership by doing this "personally". Could you tell me how to do this? Our house in Melbourne is in my name because my husband was in business and requested that I be the nominal owner. He conducted this business in a home office on the ground floor of the residence. If we sell the house, which has appreciated somewhat since we occupied it, the office part will attract a sizeable Capital Gains Tax (CGT) amount, as it is about one third of the "footprint" of the property. My thinking is that if the house was in both our names we could spread the CGT between our two incomes, a small part of which is from the aged pension. J.T. In NSW, the State Revenue website is informative, telling us that if a family home is also used for other purposes, the duty exemption for transfers between spouses will only apply to the residential part of the home, unless only one room was being used for the business. In Victoria, the State Revenue Office is less helpful and its 21 page "Guide to Spouse/Domestic Partner Property Transfers in Duties Online", which you can download from the SRO website, says nothing about using part of a home for business purposes. The SRO’s client adviser (on 13 21 61) didn’t know the answer and its technical branch believed that as long as you meet all other requirements and the house is now wholly used as a principal residence, nothing in the law would reduce the exemption. Assuming you obtain an exemption, go to the website, propertyandlandtitles.vic.gov.au and look for "Transfer of Land Forms" to download the "Guide: Transferring property between spouses or domestic partners". It will give you the option for a non-monetary transfer under the quaint title "Natural love and affection". Having gone through all that, it is a grey area whether you will save on CGT when you sell. If you bought your home after 1985 and started using part of it to produce income for the first time after August 20, 1996, you are assumed to have bought the dwelling at its market value at the time. However, CGT will not apply if the business was run through a company or trust. Also, you may be able to apply one or more of the small business CGT concessions to reduce your capital gain. It's best to talk to a tax accountant, or seek a private ruling. Regarding your recent comments on the Australian Taxation Office's treatment of foreign pensions, our tax accountant in WA was apparently not aware of the deductible amount you mentioned in your answer. My wife and I have both been receiving defined-benefit pensions for a number of years from our Canadian employers and also from the Canadian Pension Plan. We are citizens of both Australia and Canada, are non-tax residents in Australia and spend more than half the year in Canada. We may follow our children back to Australia in future. Would the deductible amount from the Canadian defined-benefit pensions be tax exempt? P.C. As long as you are a non-tax resident, your Canadian pension is not taxable here. Once you live here for 183-days of a financial year, whether continuously or with breaks, you would be considered a tax resident and your foreign pensions would be taxable. Where tax is withheld in Canada, you can claim a foreign income tax offset, unless you are entitled to seek a refund there. Your personal after-tax contributions to the pension fund form the Undeducted Purchase Price (UPP). That part of your annual pension, which represents a return to you of your UPP, known as the deductible amount, is untaxed and is calculated by dividing the UPP by your life expectancy factor at the start of the pension. Should you move back to the much warmer Land of Oz, and want to claim a deductible amount, Google "ATO Request for a determination of the deductible amount of UPP of a foreign pension or annuity". If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Help lines: Australian Financial Complaints Authority, 1800 931 678; Centrelink pensions 13 23 00. All letters answered.
2 May 12:00 • Brisbane Times • https://www.brisbanetimes.com.au/money/investing/cgt-implications-in-transfer-of-income-producing-property-20200501-p54oz5.html?ref=rss&utm_medium=rss&utm_source=rss_feedRating: 0.86
ICICI Lombard Q4 net rises 24% to ₹282 cr
2 May 13:14
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ICICI Lombard Q4 net rises 24% to ₹282 cr
ICICI Lombard General Insurance Company on Saturday reported a 23.8% rise in net profit at Rs 282 crore for the March quarter. The non-life insurer had posted a net profit of ₹228 crore in the corresponding period of 2018-19. The gross direct premium income (GDPI) of the company stood at ₹3,181 crore in Q4 FY20, compared to ₹3,485 crore in Q4 FY19, ICICI Lombard said in a regulatory filing. For the full year 2019-20, the profit after tax or net profit increased 13.8 per cent to ₹1,194 crore from Rs 1,049 crore in the preceding fiscal. GDPI of the company stood at ₹13,313 crore in FY20 compared to ₹14,488 crore in FY19, a de-growth of 8.1 per cent, it said. Excluding crop segment, GDPI increased to ₹13,302 crore during the year compared to ₹12,036 crore in FY19, up 10.5 per cent. This was in line with the industry growth (excluding crop segment), ICICI Lombard added. Also read:Consumer court sets aside order against insurance firm Combined ratio — a measure of profitability — stood at 100.4 per cent in 2019-20 compared to 98.8 per cent a year ago, primarily on account of long-term motor policies, change in product-mix and losses from catastrophic events, the company said. For the March quarter, the combined ratio stood at 100.1 per cent compared to 99 per cent in the same period last year. The ratio denotes the money flowing out via in dividends, expenses, and losses. Whereas a ratio below 100 indicates underwriting profit, above 100 means paying out more money in claims than receiving through premium.
2 May 13:14 • The Hindu • https://www.thehindu.com/business/Industry/icici-lombard-q4-net-rises-24-to-282-cr/article31489797.eceRating: 0.30
ICICI Lombard General Insurance posts 23.8% increase in Q4 net
ICICI Lombard General Insurance posted a 23.8 per cent increase in its net profit during the fourth quarter of 2019-20 at ₹281.91 crore. Its net profit stood at ₹227.73 crore in the same period a year ago. Gross premium written fell by eight per cent to ₹3,231.58 crore in the quarter ended March 31, 2020 as against ₹3,527.89 crore in the same period a year ago. Net premium written however increased by 6.7 per cent to ₹2,345.55 crore in the fourth quarter of the fiscal versus ₹2,197.47 crore a year ago. For the full financial year 2019-20, net profit grew by 13.8 per cent to ₹1,194 crore as compared to ₹1,049 crore in 2018-19. “Gross direct premium income (GDPI) stood at ₹3,181 crore in the fourth quarter compared to ₹3,485 crore a year ago,” ICICI Lombard said in a statement on Saturday. Excluding crop segment, GDPI of the company increased to ₹3,244 crore in the fourth quarter compared to ₹3,153 crore a year ago, a registering a growth of 2.9 per cent, it further said. “The industry growth (excluding crop segment) for the fourth quarter of the fiscal was 4.3 per cent,” noted Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard. The insurer’s solvency ratio was 2.17x at March 31, 2020 as against 2.18x at December 31, 2019 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.24x as on March 31, 2019.
2 May 12:08 • BusinessLine • https://www.thehindubusinessline.com/money-and-banking/icici-lombard-general-insurance-posts-238-increase-in-q4-net/article31489423.eceRating: 1.98
How to brand cultural products in overseas markets
2 May 12:18
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How to brand cultural products in overseas markets
Researchers from Shanghai University of Finance and Economics and the University of Arizona published a new paper in the Journal of Marketing that examines brand name strategies when cultural products are marketed in foreign countries. The study forthcoming in the Journal of Marketing titled "Branding Cultural Products in International Markets: A Study of Hollywood Movies in China" is authored by Weihe Gao, Li Ji, Yong Liu, and Qi Sun. Cultural products such as movies and novels often have immediate brand name recognition in their home countries. But in foreign markets, consumers are accustomed to titles translated into the local language. In an era of globalization, the trend is to stay as much as possible to the original brand name, particularly for well-branded products (e.g., Batman and Superman movies). However, there is often a need to reframe brand names of cultural products that may be culturally distant to foreign consumers. For example, the animated comedy movie Cloudy with a Chance of Meatballs was translated to It's Raining Falafel in Israel because meatballs are not something Israelis relate to, whereas falafel is a better equivalent to a local food staple. By incorporating the unique characteristics of these cultural products, the research team develops a theoretical framework that integrates similarity, which focuses on how the translated brand name relates to the original brand name, and informativeness, which focuses on how the translated brand name reveals product content, to study the impact of brand name translations. The movie market is the research context, specifically Hollywood movies shown in China from 2011 to 2018. The researchers show that higher similarity leads to higher Chinese box office revenue and this effect is stronger for movies that perform better in the home market. When the translated title is more informative about the movie, the Chinese box office revenue increases. The informativeness effect is stronger for Hollywood movies that have a greater cultural gap in the Chinese market. Moreover, both similarity and informativeness effects are strongest at the time the movie is released and reduce over time. The study provides several valuable managerial implications for cultural product industries. First, the results point out that brand name translation is not a trivial task. How the brand name is translated can have important consequences on product sales. Two different strategies are described: 1) Make translated brand names resemble the original brand names; or 2) Make translated brand names informative of product content. While each can be managed to influence the sales in international markets, there is also a synergy between them—one strategy becomes more effective if the other strategy is also implemented. However, there are situations where achieving both goals in one brand name is difficult because it may require different brand name features and translation techniques. Therefore, companies need to make trade-offs between similarity and informativeness. This trade-off leads to the second managerial implication. If the product has high home market performance but a small cultural gap, the translation should focus on brand name similarity. If the product has low home market performance but a large cultural gap, the translation should focus on informativeness. If the product has both high home market performance and large cultural gap, both similarity and informativeness will be highly effective in generating sales. Thus, the company should pay attention to both similarity and informativeness, with the relative emphasis between the two decided based on the effect size and the feasibility of each strategy. Finally, if the product has low home market performance and small cultural gap, both strategies will still be helpful, but will not be highly effective. Third, results indicate that these branding strategies are most effective for product sales in the early period after introduction. This is particularly important for managers given the short life cycle of cultural products. It is critical for companies to be sensitive to brand name translation early and to make sure either similarity or informativeness, or both, are in place before introduction to help increase sales quickly. Finally, related to the trade-off between similarity and informativeness, companies can follow this analysis to estimate the effect size of the moderating factors. Managers can then more precisely evaluate to what extent product sales will benefit from either strategy so that a sensible trade-off can be made. More information: Weihe Gao et al, Branding Cultural Products in International Markets: A Study of Hollywood Movies in China, Journal of Marketing (2020). DOI: 10.1177/0022242920912704 Journal information:Journal of Marketing Provided by American Marketing Association
2 May 12:18 • phys.org • https://phys.org/news/2020-05-brand-cultural-products-overseas.htmlRating: 1.30
How to brand cultural products in overseas markets
Researchers from Shanghai University of Finance and Economics and the University of Arizona published a new paper in the Journal of Marketing that examines brand name strategies when cultural products are marketed in foreign countries. The study forthcoming in the Journal of Marketing titled "Branding Cultural Products in International Markets: A Study of Hollywood Movies in China" is authored by Weihe Gao, Li Ji, Yong Liu, and Qi Sun. Cultural products such as movies and novels often have immediate brand name recognition in their home countries. But in foreign markets, consumers are accustomed to titles translated into the local language. In an era of globalization, the trend is to stay as much as possible to the original brand name, particularly for well-branded products (e.g., Batman and Superman movies). However, there is often a need to reframe brand names of cultural products that may be culturally distant to foreign consumers. For example, the animated comedy movie Cloudy with a Chance of Meatballs was translated to It's Raining Falafel in Israel because meatballs are not something Israelis relate to, whereas falafel is a better equivalent to a local food staple. By incorporating the unique characteristics of these cultural products, the research team develops a theoretical framework that integrates similarity, which focuses on how the translated brand name relates to the original brand name, and informativeness, which focuses on how the translated brand name reveals product content, to study the impact of brand name translations. The movie market is the research context, specifically Hollywood movies shown in China from 2011 to 2018. The researchers show that higher similarity leads to higher Chinese box office revenue and this effect is stronger for movies that perform better in the home market. When the translated title is more informative about the movie, the Chinese box office revenue increases. The informativeness effect is stronger for Hollywood movies that have a greater cultural gap in the Chinese market. Moreover, both similarity and informativeness effects are strongest at the time the movie is released and reduce over time. The study provides several valuable managerial implications for cultural product industries. First, the results point out that brand name translation is not a trivial task. How the brand name is translated can have important consequences on product sales. Two different strategies are described: 1) Make translated brand names resemble the original brand names; or 2) Make translated brand names informative of product content. While each can be managed to influence the sales in international markets, there is also a synergy between them--one strategy becomes more effective if the other strategy is also implemented. However, there are situations where achieving both goals in one brand name is difficult because it may require different brand name features and translation techniques. Therefore, companies need to make trade-offs between similarity and informativeness. This trade-off leads to the second managerial implication. If the product has high home market performance but a small cultural gap, the translation should focus on brand name similarity. If the product has low home market performance but a large cultural gap, the translation should focus on informativeness. If the product has both high home market performance and large cultural gap, both similarity and informativeness will be highly effective in generating sales. Thus, the company should pay attention to both similarity and informativeness, with the relative emphasis between the two decided based on the effect size and the feasibility of each strategy. Finally, if the product has low home market performance and small cultural gap, both strategies will still be helpful, but will not be highly effective. Third, results indicate that these branding strategies are most effective for product sales in the early period after introduction. This is particularly important for managers given the short life cycle of cultural products. It is critical for companies to be sensitive to brand name translation early and to make sure either similarity or informativeness, or both, are in place before introduction to help increase sales quickly. Finally, related to the trade-off between similarity and informativeness, companies can follow this analysis to estimate the effect size of the moderating factors. Managers can then more precisely evaluate to what extent product sales will benefit from either strategy so that a sensible trade-off can be made. Full article and author contact information available at: https://doi.org/10.1177/0022242920912704 About the Journal of Marketing The Journal of Marketing develops and disseminates knowledge about real-world marketing questions useful to scholars, educators, managers, policy makers, consumers, and other societal stakeholders around the world. Published by the American Marketing Association since its founding in 1936, JM has played a significant role in shaping the content and boundaries of the marketing discipline. Christine Moorman (T. Austin Finch, Sr. Professor of Business Administration at the Fuqua School of Business, Duke University) serves as the current Editor in Chief. https://www.ama.org/jm About the American Marketing Association (AMA) As the largest chapter-based marketing association in the world, the AMA is trusted by marketing and sales professionals to help them discover what's coming next in the industry. The AMA has a community of local chapters in more than 70 cities and 350 college campuses throughout North America. The AMA is home to award-winning content, PCM® professional certification, premiere academic journals, and industry-leading training events and conferences. https://www.ama.org
2 May 04:00 • EurekAlert! • https://www.eurekalert.org/pub_releases/2020-05/ama-htb042920.phpRating: 1.03
World must act now to save 1.6 billion people from perishing
2 May 10:42
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World must act now to save 1.6 billion people from perishing
More than 1.6 billion people around the world are in immediate danger of having their livelihoods destroyed by the economic impact of COVID-19, according to the International Labour Organisation (ILO). That number makes up nearly half of the global workforce of 3.3 billion people. Of the total workforce, about 2 billion work in what’s called the “informal economy” — often on short-term contracts, in unorganised sectors of developing economies or self-employment. This critical section of the global workforce suffered a 60 per cent collapse in their wages in the first month of the coronavirus pandemic, the ILO warned last week. The sector-wise numbers are even more staggering: the deepening economic crisis around world has left more than 500 million businesses facing high risks of serious disruption. Most of these enterprises operate in the hardest-hit economic sectors, including 232 million in the wholesale and retail sectors and 111 million in manufacturing industries. As the ILO Director-General Guy Ryder put it: “For millions of workers, no income means no food, no security and no future.” With medical infrastructure stretched beyond capacity in almost every country, the unemployment crisis among the most vulnerable sections of society will invariably be compounded by a massive hunger crisis and lead to a debilitating health care nightmare unless the world acts now. The World Food Programme (WFP) has warned of a catastrophic famine in which more than 300,000 people are likely to starve to death around the world every day. Amid these dire predictions, what could the international community and governments do to help? Perhaps one silver lining of the COVID-19 pandemic is the shared realisation among countries and communities everywhere that we are all in this together — the virus doesn’t distinguish between borders, race, religion or economic status. Therefore, it is not enough to simply tackle unemployment or hunger on a war footing only in developed economies — governments and institutions must actively support less-resourced countries whose medical systems struggle to cope and where people are already weak from hunger. The UAE has already taken a global lead in this, dispatching food aid, COVID-19 kits and essential supplies to dozens of countries from Yemen, Pakistan and the Philippines to Mauritania and Bangladesh. That sets a template for other countries to pitch in and help the hungry, the jobless and the sick around the world. Governments in the worst-affected countries should follow a job-rich approach, backed by strong short-term employment policies and social protection. For many countries, international coordination on stimulus packages and debt relief measures will also be crucial to their recovery. A combination of compassion and carefully calibrated economic reactivation can help win the war against COVID-19 and its devastating aftermath, not only for the 1.6 billion workers facing a grim future but also for the rest of the world.
2 May 10:42 • Gulf News • https://gulfnews.com/opinion/editorials/world-must-act-now-to-save-16-billion-people-from-perishing-1.71292770Rating: 3.21
Coronavirus: Impact on economy has been dire - President
Click to read all about coronavirus → President Nana Addo Dankwa Akufo-Addo, lauding Ghanaian workers for their contribution towards national socio-economic advancement over the years, Friday said the impact of COVID-19 on the national economy has been severe. He has, therefore, directed the Ministry of Finance and Bank of Ghana to work together to design innovative policies to revive the economy. The International Labour Organization (ILO) estimates that 2.7 billion workers would lose their jobs globally due to the lockdowns associated with the COVID-19 pandemic. The growth of Ghana's Gross Domestic Product (GDP) is also expected to tumble from seven per cent averagely to 2.5 per cent in the worst case scenario. President Akufo-Addo, who was speaking at a virtual May Day celebration, organized by the Organised Labour and Ghana Broadcasting Corporation (GBC), nonetheless, expressed, gratitude to workers for their contributions and sacrifices towards the development of the country's economy. "The relationship between Government and Organized Labour has been cordial and of mutual respect since I became President," President Akufo-Addo stated. May Day, usually celebrated nationwide through parades by worker unions, was held virtually from the studios of the GBC in accordance with the social distancing and safety protocols to prevent the spread of the new Coronavirus. It is on the theme, "The Impact of COVID-19 on the Economy and Working Conditions". President Akufo-Addo mentioned some interventions rolled out by his government to provide relief to Ghanaians following the COVID-19 outbreak. These include the 1.2 billion Ghana cedi Alleviation Programme, a -600- million Ghana cedi soft loans to small and medium scale enterprises (SMEs), with one-year moratorium and two - year repayment, tax rebates for health workers and 50 per cent top-up of basic salary, for frontline health workers. Others are free water supply to all Ghanaians, free electricity supply to lifeline consumers and a 50 per cent subsidy for the other residential, commercial and enterprise consumers, for three months from April. Dr Anthony Yaw Baah, Secretary-General of Trades Union Congress (TUC), in his welcome address, urged the government to implore commercial banks to allow businesses to access loans under flexible terms of payment. Send your news stories to and via WhatsApp on +233 55 2699 625.
2 May 00:00 • GhanaWeb • https://www.ghanaweb.com/GhanaHomePage/NewsArchive/Coronavirus-Impact-on-economy-has-been-dire-President-939925Rating: 1.81
Refunds save the day for April direct tax collection; mop-up down 5%
2 May 18:43
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Refunds save the day for April direct tax collection; mop-up down 5%
Direct tax collection surged 36.5 per cent to Rs 34,784 crore in the first month of fiscal year 2020-21, despite a nationwide lockdown, thanks to a 63 per cent year-on-year (YoY) fall in tax refunds in April. Without accounting for refunds, the collection contracted 5.4 per cent, indicating muted economic activity as the Covid-19 pandemic and subsequent curbs paralysed most sectors. Gross direct tax collection stood at Rs 41,556 crore in April, as against Rs 43,950 crore in the corresponding period last year. Refunds of Rs 6,772 crore were about a third of the amount disbursed in the same month last year, at Rs 18,474 crore, which boosted net collection. Incidentally, the government last month announced expediting refunds up to Rs 5 lakh to improve cash flows for individuals and small and medium enterprises amid coronavirus-related disruptions in the economy. “A sharp fall in refund disbursement can be credited for the high double-digit net direct tax collection growth seen in April. The gross figure, on the other hand, paints the real picture, where collection has fallen,” said a government official. ALSO READ: Work relaxation amid lockdown fails to convince migrants to stay put Coming months will see net collections under pressure as the base effect will wean off, and economic growth is at a standstill. A tax official said the lower refunds in April were due to avoidance of ad hoc adjustment, where large corporates paid extra tax in March on the request of tax officers to meet tax targets.These are later adjusted in April by way of refunds or deducted as TDS payments. “This time, due to economic uncertainty and lockdown, there wasn’t much extra tax paid by corporates in March. Therefore, refunds are low,” said another official. Refunds in the Mumbai zone were 84 per cent lower at Rs 1,600 crore, compared with the Rs 10,000 crore refunds issued in April last year. Direct tax collection missed the downward revised target for 2019-20 by Rs 1.42 trillion, settling at Rs 10.27 trillion, a 9.5 per cent fall over the previous year. A growth rate of 28.2 per cent will be needed as against the assumed rate of 12 per cent in the Budget to meet the collection target of Rs 13.19 trillion. ALSO READ: No tourists, dog show cancelled: How the Nilgiris is conquering Covid-19 With earnings of a majority of companies hit due to the Covid-19 lockdown, the February revenue collection target announced in the Budget no longer holds. Hence, income tax officers have urged for a revision in the Budget estimates. FY21 revenue projections were based on an assumed nominal GDP growth of 10 per cent, which means a tax buoyancy of 1.2. The Economic Survey had pegged FY21 real GDP growth at 6-6.5 per cent, which is far from realistic now. The International Monetary Fund (IMF) has cut India’s growth forecast for FY21 in its World Economic Outlook (WEO) report to 1.9 per cent from 5.8 per cent projected in January.
2 May 18:43 • Business-Standard • https://www.business-standard.com/article/economy-policy/refunds-save-the-day-for-april-direct-tax-collection-mop-up-down-5-120050300014_1.htmlRating: 0.30
Centre’s net direct tax collection up 36% in April
Bucking the lockdown trend, the Centre’s net direct tax collections soared to ₹34,783 crore in April this year. This is a 36.5 per cent jump from the net direct tax mop-up, which stood at ₹25,477 crore. While gross direct tax collections fell marginally in April, a reason for this spurt in net collections is lower refunds. According to sources, about ₹6,772 crore of income tax refunds were issued in April this year as against ₹18,473 crore in April 2019. Meanwhile, gross direct tax collections declined by 5.4 per cent in April 2020 to ₹41,555 crore as compared to ₹43,950 crore in April last year. The direct tax mop-up could give some reprieve to the Exchequer, which is already faced with slowing goods and services tax collection amid the national lockdown to prevent the rapid spread of Covid-19. The Centre has deferred the release of revenue data from GST for April.
2 May 09:45 • BusinessLine • https://www.thehindubusinessline.com/economy/centres-net-direct-tax-collection-up-in-april/article31488199.eceRating: 1.98
Why Top Wall Street Analysts See Bitcoin Hitting $15,000 in Next 12 Months
2 May 22:00
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Why Top Wall Street Analysts See Bitcoin Hitting $15,000 in Next 12 Months
The price action over the past few days has undoubtedly been positive for Bitcoin. Case in point: the cryptocurrency ripped over 20% higher from the mid-$7,000s to a price as high as $9,500 over the course of 48 hours. Prices have since consolidated at $8,800, with BTC finding itself stuck between support around $8,500 and resistance at the ever-important level of $9,000. While some have said that this price action is indicative of Bitcoin forming a topping pattern, a leading analysis firm on Wall Street has suggested that the recent surge is just the beginning of a bigger crypto market rally. In a research note on cryptocurrency published Thursday, David Grider — the lead digital strategist at Wall Street analysis firm Fundstrat Global Advisors — said that his firm is bullish on Bitcoin moving forward, specifically citing the halving as a positive catalyst: Marketwatch, which covered the note, suggested that Fundstrat sees the cryptocurrency nearly doubling in the coming 12 months to $14,350. Fundstrat co-founder Thomas Lee shared the positive sentiment on Twitter, explaining that Bitcoin’s year-to-date performance proves that it is not only benefiting from the halving, but is also acting as a “solid risk-on asset and as a hedge against calamity.” Adding to the fundamental confluence that Fundstrat’s analysts laid out, there are other signs, technical analysis signals, that Bitcoin is preparing to enter a bull phase. Per previous reports from Bitcoinist, a trader noted that BTC’s strong rebound from the start to the end of April allowed the cryptocurrency’s monthly candle to close above a key level of the Ichimoku Cloud on the one-month chart. This is relevant for BTC because the last time Bitcoin claimed this technical level was near the start of 2016, when the cryptocurrency was trading around $500. What followed was a nearly 4,000% rally that brought the cryptocurrency to $20,000 just 20 months later. Chart from @TraderSmokey (Twitter) Adding to this, the cryptocurrency recently accomplished a strong technical feat: it managed to surmount $6,400 without much resistance, then claim the level as support by bouncing off it. This is important because $6,400 has been key to BTC for the past 18 months, acting as a turning point for this market on many occasions. Bitcoin recapturing this level gives credence to the idea that the cryptocurrency is entering into a medium-term bull trend.
2 May 22:00 • Bitcoinist.com • https://bitcoinist.com/why-top-wall-street-analysts-see-bitcoin-hitting-15000-in-next-12-months/Rating: 0.98
There’s a $8 Million Bitcoin Sell Wall That Will Haunt Any Near-Term Uptrend
The price action over the past few days has undoubtedly been positive for Bitcoin. Case in point: the cryptocurrency ripped over 20% higher from the mid-$7,000s to a price as high as $9,500 over the course of 48 hours. Prices have since consolidated at $8,800, with BTC finding itself stuck between support around $8,500 and resistance at the ever-important level of $9,000. The consolidation, unfortunately, could result in a further sell-off as an analyst has noted that a large Bitcoin sell wall has formed on Binance. Although Bitcoin has been making attempts at rallying higher over the past few hours as of this article’s writing, a top analyst observed that a sell wall consisting of 1,000 Bitcoin — worth over $8 million — has just recently appeared on Binance. Should BTC fail to catch a bid during any attempt at rallying in the coming hours, it could be strongly rejected by the Binance sell wall, which will act as resistance for the cryptocurrency market as long as it is on the order book. Adding to the threat the sell wall poses to Bitcoin in the near term, Bloomberg also recently observed that the cryptocurrency recently became technically overbought “based on the GTI Global Strength Indicator,” with the momentum oscillator recently crossing above 70. This confluence corroborates an analysis by a top crypto trader, who identified that Bitcoin is likely to correct towards the low-$8,000s due to the rejection at a key Fibonacci Retracement level. He wrote: Despite the risk of a short-term correction, there is a growing number of prominent investors and traders that believe the crypto market’s medium-term trajectory remains bullish. Kelvin Koh — a former Goldman Sachs partner and current partner at The Spartan Group — recently wrote in an analysis that the ongoing COVID-19 outbreak is decisively bullish for Bitcoin and other digital assets. Central banks injecting trillions of dollars worth of stimulus into all facets of the economy while BTC will see its block reward halving, Koh explained, are trends with “uncanny timing[s]” that “dramatically increase the odds that we get another exponential price spike for Bitcoin with spillover effects to other crypto assets.” In terms of on-chain metrics, data companies in the industry like Glassnode and Coin Metrics have observed that the number of individuals using Bitcoin and other cryptocurrencies is on the rise, only corroborating the idea that a bull rally is brewing.
2 May 10:00 • NewsBTC • https://www.newsbtc.com/2020/05/02/theres-a-8-million-bitcoin-sell-wall-that-will-haunt-any-near-term-uptrend/Rating: 1.04
Why using all your credit cards now will protect your finances
2 May 06:01
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Why using all your credit cards now will protect your finances
Unusual times call for unusual advice, which is why I’m now saying something I never expected to while doing my job: Go out and use all of your credit cards. Before you start thinking I’ve lost my mind after weeks of social distancing alone in my work cave, let me explain that the advice has nothing to do with racking up debt and everything to do with protecting your available credit and credit score. Credit advice right now is anything but standard; here are four protective steps that every consumer — but especially those fearing and/or facing potential financial hardships — should be taking now. 1. Use all of your credit cards, especially the ones you normally don’t. When times get tough, lenders go turtle. Banks and credit-card issuers aren’t taking all new credit offers off the table, but they are cleaning up their books. “Historically, the first cards banks cut are the ones that are rarely if ever used, just because they’re not making any money off of them,” explains Matt Schulz, chief industry analyst at CompareCards.com. “So if you keep a card for traveling, for emergencies, as a back-up and you haven’t used those cards in a while, using those dormant cards now is a good idea. Advertising “Don’t spend more money, just shift some purchases around over a couple of cards instead of focusing on one,” he adds. “You can put the expense on and then pay it off right away, but showing that you still use the card is a good idea.” In the standard credit-card agreement, issuers must give a six-week notice before changing interest rates, but typically they can reduce your credit limit or shut down a card that hasn’t been used without prior warning. If your credit limits are cut or eliminated and total available credit is reduced, that changes your “credit utilization,” the second biggest factor in calculating credit scores. It’s the percentage of credit you have access to that you are actually using, and lenders generally want to see it below 30 percent. Comparecards.com research shows that the average American household had roughly $6,800 in credit-card debt entering the coronavirus pandemic, with about $26,500 in available credit, making for a credit-utilization rate of roughly 25 percent. Squeeze that average consumer’s available credit by eliminating just $5,000 from limits or in unused cards and the utilization rate goes past the 30 percent threshold, gouging the consumer’s credit score and reducing credit options. Since active card use makes you a more-attractive customer, get the cards you use for emergencies, travel, back-up and such out of the mothballs. Advertising “If you might need the credit, make sure you still have access to it,” says Ted Rossman of CreditCards.com. “Spread your purchases around on your cards right now; issuers want to see that you’re using them, it’s important right now.” 2. Check your credit report. The Big Three credit bureaus – Equifax, Experian and TransUnion – are offering consumers free weekly credit reports through April 2021 as a protection from financial hardship created by the coronavirus. Access the free reports at annualcreditreport.com. There’s no reason to check weekly, but monthly – especially if you’re asking card issuers and lenders for forbearance – makes sense. “If you need financial help and call lenders to ask for payment relief or to ask if they will stop the interest clock, be sure to ask if their assistance will show up on your credit report,” says Gerri Detweiler, education director for Nav.com “Don’t assume they’re giving you both payment and credit relief – even though most are — because if they let you skip payments but report anything to the credit bureaus, it could hurt your credit score. “Even if they tell you they’re doing the right thing, check your credit report to make sure,” she adds. Review your credit report looking for inaccuracy, mistakes and areas you can improve. Make sure your name and all addresses are correct; a wrong address – where you never lived – or misspelled name could be a sign of fraud. Be sure you recognize all accounts; if you don’t know why a lender is listed on your credit report, that’s a warning sign. Examine payment history, especially with any lenders who give you forbearance or deferred-payment plans. Pursue corrections for anything you even think is wrong; when in doubt, challenge the item and let the lender prove to the credit bureau that the problem is real. If they fail to step up to show that the details are right, they red mark will be removed from your report. 3. Boost your credit score in a matter of minutes. Credit reports are the basis for credit scores; it is more important to know the information that’s used to calculate the score is right than to know your score itself, but most consumers want to know where they stand. Many card issuers and banks offer customers their credit scores for free. It’s never a bad idea to check; any significant, unexpected change should send you back to the credit report to figure out what happened. Experian Boost is a free service that looks at a consumer’s payment history on bills that are not part of the credit report. It considers your payment history with utilities, cell-phone companies and the alike; good histories earn extra points. It’s available at Experian.com/boost. Says Rossman: “It won’t hurt you and if you can take an easy win that’ll boost your credit, now is a good time for it.” 4. Check on card rewards before you lose them. While most loyalty programs are extending expiration dates, consumers facing financial distress could lose their rewards by missing a payment or entering a deferment program. “If you see that falling behind in payments is even possible on a rewards card, use the rewards before that happens,” says Detweiler. “Know if you lose the rewards if your payments are missed or you default; if you don’t know, get something of value for your points before they become one more thing you lose getting through this pandemic.” Chuck Jaffe: itschuckjaffe@gmail.com; on Twitter: @MoneyLifeShow. Chuck Jaffe is a nationally syndicated financial columnist and the host of “Money Life with Chuck Jaffe.” Tune in at moneylifeshow.com.
2 May 06:01 • The Seattle Times • https://www.seattletimes.com/business/why-using-all-your-credit-cards-now-will-protect-your-finances/Rating: 0.74
PERSONAL FINANCE: Managing your Sacco loan amidst current crisis
My Sacco has sent me an email about the loans we are currently servicing. It is a thoughtful email. They have given us options about what we can do to lighten the monthly burden of repaying these loans. Because, you know, coronavirus, uncertain times etcetera etcetera. They have put these four options on the table. I have broken each down to understand how it applies to you as a borrower, and what you should be aware of as you consider exercising it. Remember, all these options are temporary measures in response to the current pandemic. We don’t know how long it will last or how much longer it will take before our financial circumstances settle. For whichever option you exercise, ask your Sacco if you can still revert to normal loan terms – repayment period of 48 months, 12 per cent interest rate – once the cat has been belled. Also ask how it affects your monthly contributions and annual dividends. Option #1: Repurchase your loan What the Sacco is saying here is that, on top of your current loan, you can borrow more money on new terms. That is, a similar interest rate but for a longer repayment period – you will have a bigger loan, more money at your disposal but you will repay less per month. You will also service this bigger loan for a much longer period and you will end up paying much more on the interest. Say you had been regularly servicing your loan prior to the pandemic, and now had Sh500,000 left. You exercise this option and borrow more money, say Sh300,000. Your new loan balance is now Sh800,000. You now have extra money to sort out any other financial emergencies that may have – or will – come up. Say rent, car or medical insurance, illness, employee salaries and whatnot. Option #2: Consolidate all your loans Here, the Sacco is offering to buy all the loans you have with other financial institutions and consolidate them into one huge Sacco loan. That is your bank loan, your loan with another Sacco, your mobile-lending app loan and, if you try your luck, your shylock loan. Again, we will assume you had a loan balance of Sh500,000. Your other loans are totalling to Sh100,000, this is the extra you borrow from your Sacco. They will use this money to buy off your all these other loans. They will also extend your repayment period to 60 months. You now only have the Sacco to deal with. Another plus is that Saccos offer the lowest rate of interest in the market – exercising this option means you will have more money from your income going back into your pocket at every payday. The catch, again, is the interest you will you will end up paying. Option #3: Restructure your loan Restructuring your loan means that the balance you have on your current loan can become a new loan on a new repayment period with a new interest rate. My Sacco gave this new repayment period as 84 months, and an interest rate of 13 per cent. Exercising this option gives you some breathing room. Watch out for the ballooning interest though. Option #4: Repayment proposal from you My Sacco says it is open to engaging with borrowers so they can customise a repayment plan. I believe this is the best option because we are all swimming against these rough seas with different strokes. Employees in the tourism industry felt the sting from as early as February and by March were either on compulsory unpaid leave or already had pay cut. Industries such as media will begin to feel the pinch in May. Those in the telecomm industry may not feel the pinch at all. You can flex your interest rate (to 12, 13 or 14 per cent) and your repayment period (to a maximum of 84 months) as a mash up of the better features from the other options. Bett Kinyatti is a certified accountant with ACCA and a former financial auditor
2 May 07:30 • Daily Nation • https://www.nation.co.ke/lifestyle/saturday/Managing-your-Sacco-loan-amidst-current-crisis/1216-5539868-12yg3diz/index.htmlRating: 1.96
Russia's Oil Output Rose Slightly in April Ahead of OPEC+ Cuts
2 May 07:56
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2 articles
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Russia's Oil Output Rose Slightly in April Ahead of OPEC+ Cuts
(Bloomberg) — Russia slightly increased its crude oil and condensate production in April ahead of the biggest-ever output cuts under the new OPEC+ deal. The country’s producers pumped 46.45 million tons of oil last month, Interfax reported, citing preliminary data for April from the Energy Ministry’s CDU-TEK unit. The figure, which may be rounded, equates to about 11.349 million barrels a day on average, based on the standard 7.33 barrels-per-ton conversion ratio. Russia produced 11.298 million barrels a day in March. That means, that like Saudi Arabia, Russia took the option of pumping more crude last month after the collapse of the previous pact between the Organization of Petroleum Exporting Countries and its allies, but the increase in output was much smaller. Saudi Arabia’s move to hike production, to an unprecedented 12 million barrels a day in early April, coincided with nationwide lockdowns amid the coronavirus outbreak and exacerbated a global oil glut. Last month, OPEC+, spearheaded by de facto leader Saudi Arabia, agreed to joint output cuts across the group of 9.7 million barrels a day in May. Saudi Aramco has already begun reducing oil production, ahead of the May 1 start, to achieve the agreed level of 8.5 million barrels a day, according to a Saudi industry official familiar with the matter. Russia’s share of the cuts, which is equal to Saudi Arabia’s, is set to reach 2.5 million barrels a day of crude — condensate is excluded — in May and June. Constraints in output will be divided between all Russian producers, including small oil companies and operators of product-sharing agreements, proportionally to their share in nation’s total output, Energy Minister Alexander Novak said in an interview with Interfax news agency earlier this week. ©2020 Bloomberg L.P. Bloomberg.com
2 May 07:56 • Financial Post • https://business.financialpost.com/pmn/business-pmn/russias-oil-output-rose-slightly-in-april-ahead-of-opec-cutsRating: 0.94
Russian oil output jumped to 11.35 million bpd in April, ahead of cuts
By Vladimir Soldatkin MOSCOW (Reuters) - Russia raised oil and gas condensate output in April to 46.45 million tonnes, or 11.35 million barrels per day (bpd), from 11.29 million bpd in March, Interfax reported on Saturday, before it makes cuts this month under a global supply pact. The report, which cited Energy Ministry data, showed April's figure was the highest monthly average output since January 2019, when it was 11.38 million bpd. Reuters uses the barrels/tonnes ratio of 7.33. The Organization of the Petroleum Exporting Countries, Russia and other allied producers, a group known as OPEC+, agreed last month to cut their combined oil output by about almost 10 million bpd, or 10% of global supply in May and June to tackle the economic fallout from the new coronavirus. The United States, Norway, Canada and Brazil may add cuts that would bring the total reduction to 20 million bpd, or 20% of global supply, although the coronavirus crisis has driven down demand by as much as 30%, driving down prices. Russia is expected to cut its oil production by 2.5 million bpd from a baseline of 11 million bpd in May and June. This number exempts production of gas condensate, or light oil. Russian energy ministry does not disclose gas condensate production separately. TATNEFT'S REDUCTION Russia's mid-sized oil producer Tatneft (MM:TATN) said on Saturday it produced 1.994 million tonnes of oil in April, down from 2.442 million tonnes in March. The reduction amounted to around 90,000 bpd, or 16% from March. It did not say why it reduced output last month. Tatneft cut output because storage capacity is full and European demand is weak, according to sources and data seen by Reuters last week. The company operates in Tatarstan in central Russia which became the country's main oil province in the 1970s with output of 2 million bpd, helping the Soviet Union fund its arms race with the United States. Russia has pledged to meet its commitments in full with output projected to fall to between 480 million and 500 million tonnes, or 9.6 million to 10 million bpd, this year, its first annual decline since 2008. Natural gas production in April reached 55.14 billion cubic metres, a decline of 14.3% from the same month a year earlier, the Interfax news agency also reported. It also said Russian oil exports increased 2.2% year on year to 83.79 million tonnes in the January-April period.
2 May 00:00 • Investing.com • https://www.investing.com/news/commodities-news/russian-oil-output-jumped-to-1135-million-bpd-in-april-ahead-of-cuts-2158660Rating: 0.30
Leading Indian carmakers had zero sales in April
2 May 06:02
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2 articles
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Leading Indian carmakers had zero sales in April
Mumbai: India’s top carmakers couldn’t ship a single vehicle to dealers in April as they shut production after Prime Minister Narendra Modi announced the world’s biggest stay-at-home restrictions to stop the coronavirus from spreading. Maruti Suzuki India Ltd., which produces about half the cars on India’s roads, and Mahindra & Mahindra Ltd., the nation’s biggest SUV maker, recorded no sales in the domestic market last month. Hyundai Motors India Ltd. too couldn’t sell a single unit last month. Maruti sold more than 120,000 cars a month in the year ended March 31. “There’s always a first time for everything,” said Maruti’s Chairman R.C. Bhargava in a phone interview. “I can’t say what will happen in May. Whether we will start production or not is not possible to forecast.” The total lockdown is hurting local vehicle makers, who sold more than 2.8 million cars, SUVs and vans each month in the year ended March, more than peers in other countries. In China, while sales plunged in February, the peak of the pandemic in that nation, companies managed to sell 224,000 cars. Indian carmakers were struggling even before the lockdown. The pandemic and the ensuing stay-at-home orders on March 25 have since disrupted supply chains. With the economy set for a rare contraction, the outlook for the car manufacturers remains bleak. They are losing 23 billion rupees ($306 million) each day factories remain closed, according to the Society of Indian Automobile Manufacturers. The lobby group has written to the government seeking help. “Considering the fragile health of the automotive industry, as also its economic contribution, we are writing to request you to kindly allow the entire automotive value chain for opening up and re-commencing operations,” car and auto part makers said in a joint letter to the Ministry of Home Affairs on Friday. The ministry extended the stay-at-home restrictions for most parts of the country for two weeks starting May 4. Bhargava in a recent interview to Bloomberg had said he expects a car-sales boom after the lockdown is lifted as customers appear more motivated to buy than before the pandemic because they see personal vehicles as safer than public transport. Although there were no sales in the local market last month, Maruti exported 632 units after a port in the western state of Gujarat resumed operations, while Mahindra sold 733 vehicles in international markets. Hyundai shipped 1341 units in April. These are wholesale numbers as Indian carmakers do not announce retail figures.
2 May 06:02 • Gulf News • https://gulfnews.com/business/leading-indian-carmakers-had-zero-sales-in-april-1.71290009Rating: 3.21
Zero sales: Indian carmakers have a month like never before
Mumbai/New Delhi: India’s top carmakers couldn’t ship a single vehicle to dealers in April as they shut production after Prime Minister Narendra Modi announced the world’s biggest stay-at-home restrictions to stop the coronavirus from spreading. Maruti Suzuki India Ltd., which produces about half the cars on India’s roads, and Mahindra & Mahindra Ltd., the nation’s biggest SUV maker, recorded no sales in the domestic market last month. Hyundai Motors India Ltd. too couldn’t sell a single unit last month. Maruti sold more than 120,000 cars a month in the year ended March 31. “There’s always a first time for everything,” said Maruti’s Chairman R.C. Bhargava in a phone interview. “I can’t say what will happen in May. Whether we will start production or not is not possible to forecast.” The total lockdown is hurting local vehicle makers, who sold more than 2.8 million cars, SUVs and vans each month in the year ended March, more than peers in other countries. In China, while sales plunged in February, the peak of the pandemic in that nation, companies managed to sell 224,000 cars. Indian carmakers were struggling even before the lockdown. The pandemic and the ensuing stay-at-home orders on March 25 have since disrupted supply chains. With the economy set for a rare contraction, the outlook for the car manufacturers remains bleak. They are losing 23 billion rupees ($306 million) each day factories remain closed, according to the Society of Indian Automobile Manufacturers. The lobby group has written to the government seeking help. “Considering the fragile health of the automotive industry, as also its economic contribution, we are writing to request you to kindly allow the entire automotive value chain for opening up and re-commencing operations,” car and auto part makers said in a joint letter to the Ministry of Home Affairs on Friday. The ministry extended the stay-at-home restrictions for most parts of the country for two weeks starting May 4. Bhargava in a recent interview to Bloomberg had said he expects a car-sales boom after the lockdown is lifted as customers appear more motivated to buy than before the pandemic because they see personal vehicles as safer than public transport. Although there were no sales in the local market last month, Maruti exported 632 units after a port in the western state of Gujarat resumed operations, while Mahindra sold 733 vehicles in international markets. Hyundai shipped 1341 units in April. These are wholesale numbers as Indian carmakers do not announce retail figures. –Bloomberg ThePrint is now on Telegram. For the best reports & opinion on politics, governance and more, subscribe to ThePrint on Telegram. Subscribe to our YouTube channel.
2 May 05:51 • ThePrint • https://theprint.in/india/zero-sales-indian-carmakers-have-a-month-like-never-before/413090/Rating: 1.95
For Fed Chair Powell, March was pure madness as coronavirus response intensified
2 May 04:56
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2 articles
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For Fed Chair Powell, March was pure madness as coronavirus response intensified
SAN FRANCISCO/WASHINGTON: A half-hour staff meeting in a secure location. A 40-minute consultation with an infectious disease specialist. Multiple days of "unscheduled telephone calls from home with staff and other government officials," including Saturdays and Sundays. These are just a few of the items on Fed Chair Jerome Powell's March calendar, released on Friday, that chronicle a dramatic shift from warily watching the coronavirus to an all-out effort to bring policymakers, government officials and lawmakers on board for an economic support effort of unprecedented size and scope. Though the calendar gives no details on what was discussed, it suggests an explosion of activity at the US central bank unseen since the darkest days of the 2007-2008 financial crisis. Powell's sudden ramp-up in activity began on Feb 28, with a flurry of calls to his central banker counterparts at the European Central Bank, among others. Those calls - including a 17-minute one with the head of the central bank in China, where the coronavirus outbreak had begun - continued for another two days as the Fed prepared its first concrete response to the coronavirus crisis: an emergency interest rate cut on Mar 3. But that was only the beginning of a month packed with an exceptional number of meetings, some of which were quite unusual by the standards of Fed chair calendars, published monthly with a lag of four to six weeks. Take, for instance, a Friday, March 6, late-afternoon phone call with someone identified only as an "outside expert." A Fed spokeswoman later said it was a telephone briefing with University of Texas Southwestern Medical Center's infectious disease chief, Trish Perl. Two days later, Powell held an hourlong Sunday morning meeting with fellow central bankers, and a second hourlong call that evening with staff. The next day he and the staff met for a half hour in a "sensitive compartmented information facility," a secure room usually reserved for classified information. Fed policymakers met the following Sunday, conferencing by video their far-flung colleagues who participated from Fed regional banks across the country. They slashed interest rates to zero and launched the first of nearly a dozen lending and other programs designed to keep financial markets from imploding. They also aimed to cushion the economy from the oncoming shock of mass layoffs and business closures as the country began to shut down to slow the spread of the virus, the extent of which has only lately become clear as states report 30 million people sought unemployment insurance over the past six weeks. Over the course of March, as cases of the coronavirus mounted and policymakers began to express more public concern, Powell spoke with Treasury Secretary Steven Mnuchin at least 11 times, the calendar shows. That is surely an undercount as the two worked out a range of corporate lending programs, some of which had never before been tried, to keep previously healthy businesses afloat. Mnuchin told CNBC on March 26 that he had been speaking with Powell 30 times a day. Powell met with two titans of markets: Larry Fink, chief executive of Blackrock and Ron O'Hanley, CEO of State Street. Both firms later were assigned roles helping to administer emergency Fed programs to help financial markets. And he spoke with several lawmakers, including House Speaker Nancy Pelosi, who later said he had told her to "think big fiscally." Congress passed a US$2.3 trillion rescue package in late March that included grants to small business and loans to firms in critical industries, as well as cash payments to American households and for the newly unemployed. Powell also spoke once with President Donald Trump on March 23, during which it was reported that Trump, usually a vociferous Powell critic, gave him rare praise. Powell's calendar also shows how he personally adapted to stay-at-home orders that by the end of the month covered most of the U.S. population. Powell's last engagement that took place at the Fed's Washington headquarters was the Mar 15 policy-setting meeting. After that he worked from home every day that month, his calendar shows, including weekends.
2 May 04:56 • CNA • https://www.channelnewsasia.com/news/business/for-fed-chair-powell--march-was-pure-madness-as-coronavirus-response-intensified-12696038Rating: 3.25
For Fed Chair Powell, March was intense as response to Covid-19 intensified
A half-hour staff meeting in a secure location. A 40-minute consultation with an infectious disease specialist. Multiple days of "unscheduled telephone calls from home with staff and other government officials," including Saturdays and Sundays. These are just a few of the items on Fed Chair Jerome Powell's March calendar, released on Friday, that chronicle a dramatic shift from warily watching the coronavirus to an all-out effort to bring policymakers, government officials and lawmakers on board for an economic support effort of unprecedented size and scope. Though the calendar gives no details on what was discussed, it suggests an explosion of activity at the US central bank unseen since the darkest days of the 2007-2008 financial crisis. Powell's sudden ramp-up in activity began on February 28, with a flurry of calls to his central banker counterparts at the European Central Bank, among others. Those calls - including a 17-minute one with the head of the central bank in China, where the coronavirus outbreak had begun - continued for another two days as the Fed prepared its first concrete response to the coronavirus crisis: an emergency interest rate cut on March 3. ALSO READ: Equities find their feet after March rampage on reassurance from Fed But that was only the beginning of a month packed with an exceptional number of meetings, some of which were quite unusual by the standards of Fed chair calendars, published monthly with a lag of four to six weeks. Take, for instance, a Friday, March 6, late-afternoon phone call with someone identified only as an "outside expert." A Fed spokeswoman later said it was a telephone briefing with University of Texas Southwestern Medical Center's infectious disease chief, Trish Perl. Two days later, Powell held an hourlong Sunday morning meeting with fellow central bankers, and a second hourlong call that evening with staff. The next day he and the staff met for a half hour in a "sensitive compartmented information facility," a secure room usually reserved for classified information. Fed policymakers met the following Sunday, conferencing by video their far-flung colleagues who participated from Fed regional banks across the country. They slashed interest rates to zero and launched the first of nearly a dozen lending and other programs designed to keep financial markets from imploding. They also aimed to cushion the economy from the oncoming shock of mass layoffs and business closures as the country began to shut down to slow the spread of the virus, the extent of which has only lately become clear as states report 30 million people sought unemployment insurance over the past six weeks. Over the course of March, as cases of the coronavirus mounted and policymakers began to express more public concern, Powell spoke with Treasury Secretary Steven Mnuchin at least 11 times, the calendar shows. That is surely an undercount as the two worked out a range of corporate lending programs, some of which had never before been tried, to keep previously healthy businesses afloat. Mnuchin told CNBC on March 26 that he had been speaking with Powell 30 times a day. ALSO READ: Federal Reserve leaves rates near zero, sees coronavirus risks lingering Powell met with two titans of markets: Larry Fink, chief executive of Blackrock and Ron O'Hanley, CEO of State Street. Both firms later were assigned roles helping to administer emergency Fed programs to help financial markets. And he spoke with several lawmakers, including House Speaker Nancy Pelosi, who later said he had told her to "think big fiscally." Congress passed a $2.3 trillion rescue package in late March that included grants to small business and loans to firms in critical industries, as well as cash payments to American households and for the newly unemployed. Powell also spoke once with President Donald Trump on March 23, during which it was reported that Trump, usually a vociferous Powell critic, gave him rare praise. Powell's calendar also shows how he personally adapted to stay-at-home orders that by the end of the month covered most of the US population. Powell's last engagement that took place at the Fed's Washington headquarters was the March 15 policy-setting meeting. After that he worked from home every day that month, his calendar shows, including weekends.
2 May 07:40 • Business-Standard • https://www.business-standard.com/article/international/covid-19-for-fed-chair-powell-march-was-intense-over-supporting-economy-120050200351_1.htmlRating: 0.30
Job Opportunities Grow As Primary Sector Exports Show Resilience Through COVID-19
2 May 06:26
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2 articles
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Job Opportunities Grow As Primary Sector Exports Show Resilience Through COVID-19
MEDIA STATEMENT Strong international demand for New Zealand’s food, despite the global effects of COVID-19, could help provide a springboard to get more Kiwis into primary sector jobs, Agriculture Minister Damien O’Connor said. “The latest provisional trade statistics show our apples and kiwifruit continue to be star performers, with $890 million of fruit exported between 1 February and 22 April 2020,” Damien O’Connor said. “Our dairy and meat sectors are also holding their own into April and they shipped products to overseas customers worth $6.18 billion over the same period. “Overall primary sector export revenue remains higher into April than for the same period in 2018, despite the forestry sector essentially being shut down over the past month. Now we’ve moved into Alert Level 3, industries affected by the lockdown such as forestry and wool are back into action and that will help. “The strength of New Zealand’s primary sector coupled with the success of our health response to COVID-19 gives us a head-start on the world as we get our economy moving again. “Our primary sector contributes over $46 billion dollars a year in exports to our economy and provides jobs for hundreds of thousands of people in our rural communities. These latest stats show the sector is in a strong position to help us reboot our economy. Mr O’Connor said the primary sector will need about 50,000 more people in a post-COVID-19 world. “There are jobs going all over the country ranging from hands on work in orchards, on farms, in forests and fishing boats, to professional roles in engineering, science and management. “The Government is working alongside the primary sector to help ensure workers get to the places they are needed. We’re currently investigating further ways we can boost the primary sector workforce through the Government’s $100m redeployment scheme. “I’ve been impressed by the way the primary sector, government agencies and others have come together to support each other, further reinforcing that our team of 5 million is just as important now as during the lockdown,” Damien O’Connor said. © Scoop Media
2 May 06:26 • SCOOP • https://www.scoop.co.nz/stories/PA2005/S00011/job-opportunities-grow-as-primary-sector-exports-show-resilience-through-covid-19.htmRating: 0.30
Job opportunities grow in primary sector - Damien O'Connor
Strong international demand for New Zealand’s food, despite the global effects of COVID-19, could help provide a springboard to get more Kiwis into primary sector jobs, Agriculture Minister Damien O’Connor said. "The latest provisional trade statistics show our apples and kiwifruit continue to be star performers, with $890 million of fruit exported between 1 February and 22 April 2020," Damien O’Connor said. "Our dairy and meat sectors are also holding their own into April and they shipped products to overseas customers worth $6.18 billion over the same period. "Overall primary sector export revenue remains higher into April than for the same period in 2018, despite the forestry sector essentially being shut down over the past month. Now we’ve moved into Alert Level 3, industries affected by the lockdown such as forestry and wool are back into action and that will help. "The strength of New Zealand’s primary sector coupled with the success of our health response to COVID-19 gives us a head-start on the world as we get our economy moving again. "Our primary sector contributes over $46 billion dollars a year in exports to our economy and provides jobs for hundreds of thousands of people in our rural communities. These latest stats show the sector is in a strong position to help us reboot our economy. "There is no shortage of demand. The world wants our high quality product. We now need a skilled workforce to help us seize the opportunities that are currently before us." Mr O’Connor said the primary sector will need about 50,000 more people in a post-COVID-19 world. "There are jobs going all over the country ranging from hands on work in orchards, on farms, in forests and fishing boats, to professional roles in engineering, science and management. "The Government is working alongside the primary sector to help ensure workers get to the places they are needed. We’re currently investigating further ways we can boost the primary sector workforce through the Government’s $100m redeployment scheme. "I’ve been impressed by the way the primary sector, government agencies and others have come together to support each other, further reinforcing that our team of 5 million is just as important now as during the lockdown," Damien O’Connor said.
2 May 06:00 • www.voxy.co.nz • http://www.voxy.co.nz/politics/5/363915Rating: 0.30
Exxon, Chevron slam brakes on shale as oil demand tumbles
2 May 05:55
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Exxon, Chevron slam brakes on shale as oil demand tumbles
Exxon Mobil Corp and Chevron Corp are slamming the brakes on oil output, as the top two U.S. producers plan for combined global shut-ins of 800,000 barrels per day in response to plunging crude prices and fuel demand. HOUSTON: Exxon Mobil Corp and Chevron Corp are slamming the brakes on oil output, as the top two U.S. producers plan for combined global shut-ins of 800,000 barrels per day in response to plunging crude prices and fuel demand. Both companies on Friday outlined deep cuts in investments in the Permian shale basin, the top U.S. oilfield where growth in recent years made America the world's top oil producer and a net exporter for the first time in decades. They each announced global shut-ins of up to 400,000 barrels per day (bpd) this quarter due to lockdowns to fight the coronavirus pandemic. Exxon and Chevron have been sidelining Permian drilling equipment since the market started crashing in March. U.S. crude prices have plunged nearly 70per cent this year to under US$20 a barrel, and traded in negative territory on April 20 for the first time ever. Oil and gas output at both U.S. producers rose in the first quarter with the companies racing to produce 1 million barrels per day in the Permian. Then fuel demand sank nearly a third due to travel and business lockdowns, while a flood of Russian and Saudi oil hit the market when they abandoned production cuts. "We would intend to bring activity back to the Permian when we see prices recover," Chevron Chief Financial Officer Pierre Breber said in an interview. The two oil majors spent heavily in the last two years to expand in the Permian. Shale production can be brought on faster than deepwater and other oil exploration projects but requires near-constant drilling to maintain output. Exxon's biggest cuts will come in the Permian, "where the short-cycle investments are more readily adjusted," said Exxon Chief Executive Officer Darren Woods. He added that because shale wells produce big volumes at first and then decline rapidly, it is "beneficial in long term" to ensure "we're bringing those high production rates into a market that's more conducive." Exxon will sideline 75per cent of its Permian drilling rigs, keeping 15 working. The company posted a US$610 million first-quarter loss, its first quarterly loss in three decades, on a nearly US$3 billion inventory writedown reflecting lower margins and prices. Chevron posted a US$3.6 billion profit on asset sales and improved refining results, and also said it would further reduce spending this year. (For a graphic on Exxon's earnings, click here: https://fingfx.thomsonreuters.com/gfx/editorcharts/ygdpzydkyvw/index.html) Both companies will slash spending budgets by 30per cent this year. Chevron cut its capital spending budget to US$14 billion and Exxon has set 2020 spending at US$23 billion, the lowest in four years. Even though their results topped Wall Street's reduced estimates, Exxon shares fell 7per cent to US$43.14 while Chevron dropped 2.8per cent to US$89.44. Chevron’s additional spending cuts will help it pay for its dividend and make it "a defensive energy holding and a relative safe haven in very stormy seas," said Jennifer Rowland, an analyst with Edward Jones. Exxon’s balance sheet "is strong enough to withstand the current environment," but it needs oil prices around US$75 per barrel this year to break even versus around US$50 on average for its peers, said Biraj Borkhataria of RBC Europe Limited. U.S. crude futures have recovered a bit since settling in negative territory on April 20, but the current price of around US$19 per barrel remains below the cost of production for many. International oil prices are around US$26 per barrel. Both Chevron and Exxon maintained their quarterly dividends. Other oil majors are also slashing investments and seeking ways to conserve cash. Royal Dutch Shell cut its dividend for the first time since World War Two and reported first-quarter profits down nearly half compared to a year-ago. BP Plc's first-quarter profit tumbled by two-thirds and its debt climbed to its highest on record. (Reporting by Jennifer Hiller; Editing by David Gregorio and Tom Brown)
2 May 05:55 • CNA • https://www.channelnewsasia.com/news/business/exxon--chevron-slam-brakes-on-shale-as-oil-demand-tumbles-12696090Rating: 3.25
Exxon Mobil and Chevron to cut shale output
Houston: Exxon Mobil Corp and Chevron Corp are slamming the brakes on oil output, as the top two U.S.producers plan for combined global shut-ins of 800,000 barrels per day in response to plunging crude prices and fuel demand. Both companies on Friday outlined deep cuts in investments in the Permian shale basin, the top U.S. oilfield where growth in recent years made America the world’s top oil producer and a net exporter for the first time in decades. They each announced global shut-ins of up to 400,000 barrels per day (bpd) this quarter due to lockdowns to fight the coronavirus pandemic. Exxon and Chevron have been sidelining Permian drilling equipment since the market started crashing in March. U.S. crude prices have plunged nearly 70% this year to under $20 a barrel, and traded in negative territory on April 20 for the first time ever. Oil and gas output at both U.S. producers rose in the first quarter with the companies racing to produce 1 million barrels per day in the Permian. Then fuel demand sank nearly a third due to travel and business lockdowns, while a flood of Russian and Saudi oil hit the market when they abandoned production cuts. “We would intend to bring activity back to the Permian when we see prices recover,” Chevron Chief Financial Officer Pierre Breber said in an interview. The two oil majors spent heavily in the last two years to expand in the Permian. Shale production can be brought on faster than deepwater and other oil exploration projects but requires near-constant drilling to maintain output. Exxon’s biggest cuts will come in the Permian, “where the short-cycle investments are more readily adjusted,” said Exxon Chief Executive Officer Darren Woods. He added that because shale wells produce big volumes at first and then decline rapidly, it is “beneficial in long term” to ensure “we’re bringing those high production rates into a market that’s more conducive.” Exxon will sideline 75% of its Permian drilling rigs, keeping 15 working. The company posted a $610 million first-quarter loss, its first quarterly loss in three decades, on a nearly $3 billion inventory writedown reflecting lower margins and prices. Chevron posted a $3.6 billion profit on asset sales and improved refining results, and also said it would further reduce spending this year.
2 May 03:50 • Gulf News • https://gulfnews.com/business/energy/exxon-mobil-and-chevron-to-cut-shale-output-1.71290043Rating: 3.21
Recovery of airline industry is vital for the health of the economy
2 May 04:07
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Recovery of airline industry is vital for the health of the economy
Ireland’s aviation industry has been devasted by the impact of Covid-19 on the economy. Stobart Air looks set to be rescued by the Stobart Group in the UK while CityJet is in examinership. Yesterday, Ryanair announced plans to lay off 3,000 staff while Aer Lingus is to consult its employees on a plan to reduce its headcount by up to 20 per cent. Lockdown restrictions mean Aer Lingus flights are more about transporting cargo than passengers. Willie Walsh, chief executive of IAG, the parent group of Aer Lingus, British Airways and other airlines, said it would be “several years” before air travel would get back to the level of 2019. Ryanair said the recovery in passenger demand and pricing will take at least two years, until summer 2022. As an island nation, air travel is hugely important to the health of the Irish economy. The large network of flights to north America that has been built up over recent years has helped to underpin multinational investment from the United States. And the tourists who come here usually disperse to the four corners of the State, helping to support rural communities throughout the country. With EU state aid restrictions loosened, Aer France-KLM, Lufthansa and Swiss are just some of the big European airlines that have sought supports from their national governments. American carriers are being supported by Donald Trump’s administration. Socialist TD Paul Murphy wants Aer Lingus renationalised, which would be a recipe for disaster. Ryanair and Aer Lingus are both well capitalised businesses so they might not need access to direct financial support or credit at this point. But they will need support from the Government and state agencies to help rebuild their flight schedules over time, and market the country as open for business. Getting back in the air is not just an imperative for the airlines, it is also vital for the health of the economy. There is huge aviation expertise here capable of devising a rescue plan for the sector. Forming a new Government and appointing a Minister for Transport to lead from the front would be a good start.
2 May 04:07 • The Irish Times • https://www.irishtimes.com/business/transport-and-tourism/recovery-of-airline-industry-is-vital-for-the-health-of-the-economy-1.4243072Rating: 1.99
Boeing raises $25bn in blowout debt sale
LONDON: Irish low-cost carrier Ryanair said on Friday that it planned to axe 3,000 pilot and cabin crew jobs, or 15 percent of staff, with air transport paralyzed by coronavirus. Dublin-based Ryanair added that most of its flights would remain grounded until at least July and predicted it would take until summer 2022 at the earliest before passenger demand recovers. The airline now expects to operate less than one percent of its scheduled flights in April, May and June. “The Ryanair Airlines will shortly notify their trade unions about its restructuring and job loss program, which will commence from July 2020,” the group said in a statement. “These plans will be subject to consultation but will affect all Ryanair Airlines, and may result in the loss of up to 3,000 mainly pilot and cabin crew jobs, unpaid leave, and pay cuts of up to 20 percent, and the closure of a number of aircraft bases across Europe until traffic recovers.” The cost-cutting measures at the airline, which employs 18,000 staff worldwide, will be implemented “as a direct result of the unprecedented COVID-19 crisis,” it added. Chief Executive Michael O’Leary has meanwhile agreed to extend his 50-percent pay cut for the remainder of the financial year to March 2021. “Today we are announcing cuts of just over 15 percent, of which we have to lose regrettably about 3,000 mainly pilots and cabin crew over the next three to four months,” O’Leary told Bloomberg TV. “That’s because this year we are now facing carrying less than a 100 million passengers against an original budget of 154 million passengers ... The situation is grim.” “We expect to be allowed by the European governments to go back in July or from July onwards. What we are facing now is a historic decline in air traffic in Europe for the next 12-18 months.”
2 May 00:10 • Arab News • https://www.arabnews.com/node/1668351/business-economyRating: 1.72
Moody’s affirms Saudi Arabia’s rating at A1, modifies outlook
2 May 04:55
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Moody’s affirms Saudi Arabia’s rating at A1, modifies outlook
Saudi Gazette reportRIYADH — Moody’s Investors Service, one of the world's leading rating agencies, affirmed Saudi Arabia’s sovereign credit rating at “A1”, however, it modified Kingdom’s outlook to “negative” from “stable”, Saudi Press Agency reported on Friday.The change in future outlook was the result of the outbreak of the coronavirus coupled with the crash of oil prices in the international market, according to Moody’s.“The negative outlook reflects increased downside risks to Saudi Arabia's fiscal strength stemming from the severe shock to global oil demand and prices triggered by the coronavirus pandemic, and from the uncertainty regarding the degree to which the government will be able to offset its oil revenue losses and stabilize its debt burden and assets in the medium term,” Moody’s said in a statement.Moody's noted that Saudi Arabia is the second largest oil producer in the world, and has significant oil reserves and low extraction costs, providing the Kingdom with a high degree of competitive advantage over other oil producers.In its report, Moody's stressed that the Saudi Arabia's “stable” rating reflects its effective monetary policy, credibility of the exchange rate, overall financial and economic stability, and signs of improvement in fiscal policy resulting from structural financial reforms with plans to diversify the economy away from oil.Moody's raised its estimate for the 2020 fiscal deficit from 8.7 percent to 12 percent of GDP.This will cause government debt to increase to around 38 percent of GDP by the end of 2021 from less than 23 percent of GDP in 2019, according to the statement.It is noteworthy that Fitch Ratings announced its rating for the Kingdom last week, which confirmed the long-term credit rating of Saudi Arabia at “A” with a stable future outlook.These positive estimations by the global rating agencies confirm the great confidence enjoyed by the Saudi economy, as well as the strength of its financial position in facing challenges, especially in light of crises in general and the current exceptional circumstances the world is currently experiencing.
2 May 04:55 • Saudi Gazette • https://saudigazette.com.sa/article/592589/SAUDI-ARABIA/Moodys-affirms-Saudi-Arabias-rating-at-A1-modifies-outlookRating: 0.30
Saudi Arabia’s outlook cut to negative by Moody’s
Dubai: Saudi Arabia’s outlook was cut to negative from stable by Moody’s Investors Service after the crash in oil prices exposed the vulnerability of the kingdom’s finances amid the global pandemic and its reserves plunged to the lowest level in almost a decade. The rating company kept the sovereign at A1, its fifth-highest grade, according to a statement on Friday. Moody’s last downgraded Saudi Arabia in 2016, and now has its assessment above those of Fitch Ratings and S&P Global Ratings. “The negative outlook reflects increased downside risks to Saudi Arabia’s fiscal strength stemming from the severe shock to global oil demand and prices triggered by the coronavirus pandemic, and from the uncertainty regarding the degree to which the government will be able to offset its oil revenue losses and stabilize its debt burden and assets in the medium term,” Moody’s said. Under strain from the coronavirus and collapsing oil prices, Saudi Arabia is headed for an economic contraction this year while increasingly drawing down its savings. In March alone, the central bank’s net foreign assets fell by more than 5%, or more than 100 billion riyals ($27 billion). The government is looking to its largest-ever debt program to keep the depletion of reserves at up to 120 billion riyals, as originally planned in the budget. Finance Minister Mohammed Al-Jadaan has also laid out plans to scale back spending after already cutting 50 billion riyals in expenditure. Moody’s projects that Saudi’s fiscal deficit will widen to more than 12% of GDP in 2020 and more than 8% in GDP in 2021 from 4.5% of GDP in 2019. This will cause government debt to increase to around 38% of GDP by the end of 2021 from less than 23% of GDP in 2019, according to the statement. The price of Brent crude crashed by more than 50% in March and has fallen further since then. It’s now trading around $25 a barrel - far short of the $76.1 the International Monetary Fund estimates Saudi Arabia needs to balance its budget. Assuming a base case scenario of Brent averaging $35 and Saudi Arabia implementing further spending cuts this year, its fiscal deficit could widen to just under 15% of gross domestic product, according to Bilal Khan, senior economist at Standard Chartered Plc in Dubai. “Limiting the drawdown in net foreign assets to pre-announced levels is certainly possible but would likely require additional borrowing, deeper spending cuts or further divestment of state assets,” he said.
2 May 03:26 • Gulf News • https://gulfnews.com/business/saudi-arabias-outlook-cut-to-negative-by-moodys-1.71289719Rating: 3.21
Fed officials worry about lasting economic scars from crisis
2 May 03:15
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Fed officials worry about lasting economic scars from crisis
After rolling out trillions of dollars in support for the U.S. economy during the coronavirus pandemic, Federal Reserve officials have begun warning of potentially lasting scars to the workforce and productivity if the recovery is not handled well. WASHINGTON: After rolling out trillions of dollars in support for the U.S. economy during the coronavirus pandemic, Federal Reserve officials have begun warning of potentially lasting scars to the workforce and productivity if the recovery is not handled well. In separate comments on Friday, the heads of three Fed regional banks said the aggressive efforts already taken to keep companies and firms afloat are only the start of what will be required to get the economy back to normal, with worker retraining, retooled social safety nets, and other steps needed once the health crisis eases. "We need to be working on the economy's recovery rate" after the crisis, said Richmond Fed President Thomas Barkin, noting that companies may be operating less efficiently under social distancing rules, business investment may be hampered by eroded confidence, and workers may pull back from the labor market as they rethink how to care for children and aging parents in an era when day care facilities and nursing homes pose higher risks. Barkin spoke amid a patchwork end to the coronavirus-spurred lockdowns that has seen some states throw open their economies already and others maintain restrictions, while companies and their employees struggle to find the right balance. Workers that remain on the job face risks - meat processing plants have been forced offline due to outbreaks among workers - while companies that do reopen likely face higher costs and fewer customers. "We will return to somewhat normal operations - at a gradual pace," Barkin told the Maryland Chamber of Commerce in a webcast. But "I worry about the landing spot - how strong the economy will be at the end of this." St. Louis Fed President James Bullard and Dallas Fed President Robert Kaplan expressed similar concerns that the path out of the crisis may be both slow and complex. Not only will the unemployment rate spike to catastrophic levels as high as 20per cent in the coming months, for example, but it will likely remain high until the end of the year or longer, Kaplan said in an interview on Fox Business Network. "We’re going to end the year probably with an unemployment rate as high as 8 to 10per cent," Kaplan said, a figure that would mean perhaps 10 million more unemployed over the next several months compared to the start of the year. "We’re going to need stimulus going into the rest of the year and into next year so we grow faster, so we work down this unemployment rate." That stands in contrast to initial hopes for an economic rebound as swift and historic as the decline of recent weeks. 'DEPRESSION RISK' The Fed this week restated a pledge to keep interest rates low and continue offering trillions of dollars in credit across the economy as long as is needed to keep it stable during the fight against a pandemic that has killed more than 62,000 people across the country. But that may just be the beginning of a struggle that will require critical policy choices about how and what to reopen, what health protections are needed to keep the virus contained, and how to offset whatever financial or other wounds emerge. Bullard, in a Wall Street Journal interview, said he worried about the prospect of an economic depression if both the shutdown goes on too long and the reopening is not handled well. "I think we are taking depression risk here if we are not careful and if we don't execute this properly over the next couple of months," Bullard said, suggesting a "far more granular, far more risk-based" approach to the timing of states or industries coming back online. "You can hit the pause button on the U.S. economy, but if you try to keep it on pause for too long, too many other problems will start to accrue and you'll start to get lots of bankruptcies and lots of business failures," Bullard said. (Reporting by Howard Schneider; Editing by Paul Simao)
2 May 03:15 • CNA • https://www.channelnewsasia.com/news/business/fed-officials-worry-about-lasting-economic-scars-from-crisis-12695924Rating: 3.25
7 million jobs could be lost in South Africa – Government
South Africa’s National Treasury expects job losses, tax losses and a contracting economy due to the coronavirus pandemic and the lockdown to halt its spread. The finance minister will only present an adjustment budget, which accounts for the impact of the pandemic and economic relief measures, in June or July, according to Treasury and tax officials who briefed lawmakers on the potential impact of the virus on Thursday. South Africa’s economy could contract by as much as 16.1% this year, depending on how long it takes to contain the coronavirus pandemic and for the economy to recover to the end of 2020, Treasury estimates showed. “We have to move quickly to get the economy back to normal, but also take into account that we have to contain the impact of the virus,” Dondo Mogajane, the National Treasury’s director-general, said. Treasury’s scenarios showed that more than 7 million jobs could be shed as a result of the virus and lockdown that has brought almost all economic activity to a standstill. Manufacturing, construction, trade, catering and accommodation, as well as financial and business services will be the worst-affected sectors. The Treasury expected a “substantial” shortfall in revenue from the 1.43 trillion tax-collection estimate in the Feb. 26 budget. That’s due to weakness in the economy and virus-related tax relief measures, the Treasury said. While the forecasts still need to be updated, the tax take could fall by 32% or more, according to Finance Minister Tito Mboweni. A ban on the sale of alcohol and tobacco products during the lockdown has already led to an under-recovery of more than 1.5 billion rand last month alone, said Edward Kieswetter, the commissioner of the South African Revenue Service. The country is counting on accessing $5.07 billion from multilateral lenders and development banks including the International Monetary Fund, World Bank and New Development Bank to help finance the government’s stimulus package. The tenor for some of these loans would be as long as 35 years, which includes a grace period and no conditionality post-disbursement, according to the Treasury. The cost of funding the loans is favorable relative to market pricing because they are not based on country-risk premium, the Treasury said. The Treasury’s presentation followed a credit rating downgrade by S&P Global Ratings, which took South Africa’s debt assessments to lowest levels yet. The downgrade is “big blow to the country” and underlined the need for structural reforms, Mboweni said.
2 May 00:00 • MyBroadband • https://mybroadband.co.za/news/government/350404-7-million-jobs-could-be-lost-in-south-africa-government.htmlRating: 1.91
NBCUniversal weighs layoffs at media, entertainment units: WSJ
2 May 02:51
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NBCUniversal weighs layoffs at media, entertainment units: WSJ
(Reuters) - Comcast Corp (CMCSA.O) owned NBCUniversal is evaluating a significant reduction of staff across its portfolio of media and entertainment properties as part of a cost-cutting effort, the Wall Street Journal reported on Friday, citing people familiar with the matter. Discussions began this week regarding cost-cutting measures, including layoffs, according to the report. Along with its industry peers, NBCUniversal is taking a financial hit from the coronavirus outbreak which has shuttered movie theaters and theme parks. The company has temporarily closed its theme parks and suspended its sports productions and most of its film and TV production. Although all divisions are being looked at, some areas likely to be under a microscope at NBCUniversal are the theme-parks division and Universal Pictures, the WSJ reported. NBCUniversal declined to comment on the report. The company, which reported its results earlier this week, said its quarterly revenue at the filmed entertainment unit fell 22.5% this quarter from a year earlier, while revenue at theme parks fell 31.9%. Last month, Walt Disney Co (DIS.N) said it will start furloughs of non-essential U.S. employees across the company.
2 May 02:51 • Reuters • https://www.reuters.com/article/us-comcast-nbcuniversal-layoffs-idUSKBN22E01DRating: 4.04
NBCUniversal weighs significant layoffs at media, entertainment units - WSJ
Comcast Corp owned NBCUniversal is evaluating a significant reduction of staff across its portfolio of media and entertainment properties as part of a cost-cutting effort, the Wall Street Journal reported on Friday, citing people familiar with the matter. Discussions began this week regarding cost-cutting measures, including layoffs, according to the report https://on.wsj.com/2L49Izz. Along with its industry peers, NBCUniversal is taking a significant financial hit from the coronavirus outbreak which has shuttered movie theaters and theme parks. The company has temporarily closed its theme parks and suspended its sports productions and most of its film and TV production. Although all divisions are being looked at, some areas likely to be under a microscope at NBCUniversal are the theme-parks division and Universal Pictures, the WSJ reported. NBCUniversal did not immediately respond to a Reuters request for comment (Reporting by Shanti S Nair in Bengaluru; Editing by Sandra Maler)
2 May 00:59 • Financial Post • https://business.financialpost.com/pmn/business-pmn/nbcuniversal-weighs-significant-layoffs-at-media-entertainment-units-wsjRating: 0.94
Uber must face lawsuit claiming it stifled competition, drove out rival Sidecar
2 May 02:11
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Uber must face lawsuit claiming it stifled competition, drove out rival Sidecar
(Reuters) - Uber Technologies Inc was ordered by a U.S. judge on Friday to face a lawsuit claiming its illegal predatory pricing and other anticompetitive practices stifled competition, and drove rival Sidecar Technologies Inc out of business. Chief Magistrate Judge Joseph Spero of the federal court in San Francisco said SC Innovations, the successor to Sidecar, could try to prove that Uber tried to monopolize the ride-sharing business, by crowding out smaller rivals including Lyft Inc or making it harder for them to compete. A spokeswoman for San Francisco-based Uber declined to comment. Spero had dismissed an earlier version of the lawsuit on Jan. 21. Sidecar launched a ride-hailing service in 2012, and offered the first app to show passengers prices before booking rides, and to match passengers for car pooling. The company, which was also based in San Francisco, shut down in December 2015, and sold its assets to General Motors Co the following year. According to the complaint, Uber initially offered above-market incentives to drivers and low fares to passengers to amass market share, and then cut driver payments and raised fares, including through “surge” and “dynamic” pricing, to recoup its losses after cementing its dominance. Uber was also accused of having secretly booked and then canceled rides on competitors’ apps, under programs known as “Project Hell” and “SLOG,” to induce frustrated drivers and passengers to work with the company. “At this stage, the court finds Sidecar’s allegations of market power to be sufficiently plausible to avoid dismissal,” Spero wrote. The case is SC Innovations Inc v Uber Technologies Inc et al, U.S. District Court, Northern District of California, No. 18-07440.
2 May 02:11 • Reuters • https://www.reuters.com/article/us-uber-sidecar-idUSKBN22D6ATRating: 4.04
Uber must face lawsuit claiming it stifled competition, drove out rival Sidecar
Uber Technologies Inc was ordered by a U.S. judge on Friday to face a lawsuit claiming its illegal predatory pricing and other anticompetitive practices stifled competition, and drove rival Sidecar Technologies Inc out of business. REUTERS: Uber Technologies Inc was ordered by a U.S. judge on Friday to face a lawsuit claiming its illegal predatory pricing and other anticompetitive practices stifled competition, and drove rival Sidecar Technologies Inc out of business. Chief Magistrate Judge Joseph Spero of the federal court in San Francisco said SC Innovations, the successor to Sidecar, could try to prove that Uber tried to monopolize the ride-sharing business, by crowding out smaller rivals including Lyft Inc or making it harder for them to compete. A spokeswoman for San Francisco-based Uber declined to comment. Spero had dismissed an earlier version of the lawsuit on Jan. 21. Sidecar launched a ride-hailing service in 2012, and offered the first app to show passengers prices before booking rides, and to match passengers for car pooling. The company, which was also based in San Francisco, shut down in December 2015, and sold its assets to General Motors Co the following year. According to the complaint, Uber initially offered above-market incentives to drivers and low fares to passengers to amass market share, and then cut driver payments and raised fares, including through "surge" and "dynamic" pricing, to recoup its losses after cementing its dominance. Uber was also accused of having secretly booked and then canceled rides on competitors' apps, under programs known as "Project Hell" and "SLOG," to induce frustrated drivers and passengers to work with the company. "At this stage, the court finds Sidecar's allegations of market power to be sufficiently plausible to avoid dismissal," Spero wrote. The case is SC Innovations Inc v Uber Technologies Inc et al, U.S. District Court, Northern District of California, No. 18-07440. (Reporting by Jonathan Stempel in New York; Editing by Marguerita Choy)
2 May 04:42 • CNA • https://www.channelnewsasia.com/news/business/uber-must-face-lawsuit-claiming-it-stifled-competition--drove-out-rival-sidecar-12696006Rating: 3.25
JPMorgan Chase approved to process $15 billion in new PPP loans
2 May 02:10
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JPMorgan Chase approved to process $15 billion in new PPP loans
NEW YORK (Reuters) - JPMorgan Chase & Co said on Friday that the U.S. Small Business Administration gave it the green light to make $15 billion in new loans to some 211,000 business customers hurt by the outbreak of the novel coronavirus. The largest U.S. bank said it expects to process a total of $29 billion in loans for around 239,000 customers as part of the government’s Paycheck Protection Program (PPP). The average of these loans is for $123,000, according to a press release. Congress gave the Small Business Administration (SBA) nearly $660 billion over the past two months for government-guaranteed, forgivable loans that businesses hurt by the epidemic could apply for at participating banks. Faced with high demand from many of the country’s roughly 30 million small businesses, the program’s success was hindered by technology failures, a lack of clarity on the rules and paperwork required, and by banks’ struggles to quickly launch platforms to process the high volume of loan requests. “Thousands of dedicated (staff) worked tirelessly over the past 30+ days to support the federal government in one of the largest and most ambitious emergency lending facilities in history,” JPMorgan Chairman and Chief Executive Jamie Dimon said in a statement. Big banks have faced criticism from policymakers for approving loans to businesses considered to be at the larger end of the small businesses range. This fueled concerns that the program’s funds would be exhausted before smaller, needier companies could apply. Congress attempted to address this concern this week by ring-fencing $30 billion for banks with less than $10 billion in assets. But pent-up demand meant those funds were exhausted by Tuesday. For its part, JPMorgan said on Friday that half of the PPP loans it processed went to companies with fewer than 5 employees, and 75% of the loans were for less than $100,000. “We’ve followed (the government’s) direction to deploy this relief as quickly as possible and agree with their tightening of eligibility requirements so that funding goes to those that need it most,” Chief Executive of Chase Business Banking Jennifer Roberts said in a statement.
2 May 02:10 • Reuters • https://www.reuters.com/article/us-health-coronavirus-jp-morgan-loans-idUSKBN22D5X2Rating: 4.04
JPMorgan Chase approved to process US$15 billion in new PPP loans
NEW YORK: JPMorgan Chase & Co said on Friday that it received government approval to process roughly US$15 billion in loans through the Small Business Administration's Paycheck Protection Program, bringing its total number of funded loans through the program to about US$29 billion. The latest batch of loans approved by the SBA will go to 211,000 business customers, the bank said. In total, the bank expects to issue PPP loans to 239,000 business customers, with the average loan amount being US$123,000. Created as part of a US$2.3 trillion congressional economic relief package, the SBA's program allows small businesses hurt by the outbreak of the novel coronavirus to apply for government-guaranteed, forgivable loans with participating banks. (Reporting By Elizabeth Dilts Marshall)
2 May 00:45 • CNA • https://www.channelnewsasia.com/news/business/jpmorgan-chase-approved-to-process-us-15-billion-in-new-ppp-loans-12695454Rating: 3.25
Reitmans Seeks New Money, Warns on its Future as Losses Grow
2 May 15:31
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2 articles
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Reitmans Seeks New Money, Warns on its Future as Losses Grow
By Esteban Duarte (Bloomberg) — Apparel retailer Reitmans (Canada) Ltd. said it is urgently seeking fresh money after existing bank facilities were terminated or reduced and the Covid-19 pandemic hurt business. “The company is actively seeking additional financing and is also exploring various alternatives,” the Montreal-based clothier said in a May 1 statement. “If the company is unable to obtain such financing in the limited time period required, it may be unable to continue as a going concern.” The outbreak of the coronavirus is having “significant impacts” as it closed all of its stores March 17, the company said. Reitmans was already in a weakened state before the virus. The company’s net loss for the quarter ending February 1 was C$51.7 million compared with a net loss of C$8.9 million in the same quarter a year earlier. Sales rose 1% and gross profit declined. The shares have lost 72% this year and 92% since the beginning of last year. The results “have not met the company’s expectations. This is primarily due to the disappointing financial performance of the company’s plus-size banners,” the firm said in the statement. “Strategic brand changes implemented at the beginning of the fiscal year failed to resonate with the banners’ customer base.” ©2020 Bloomberg L.P. Bloomberg.com
2 May 15:31 • Financial Post • https://business.financialpost.com/pmn/business-pmn/reitmans-seeks-new-money-warns-on-its-future-as-losses-growRating: 0.94
Reitmans Canada warns business could fail if it can’t secure financing
The uncertainty caused by COVID-19 has pushed retailer Reitmans Canada Ltd. to the brink, with the company warning on Friday that unless it is able to secure financing to meet its financial obligations, the business could fail. “The company’s ability to continue as a going concern is dependent on its ability to resume normal operations, generate future revenues and profitable operations, and obtain financing,” Reitmans said in a statement on Friday evening, adding it is “also exploring various alternatives.” Reitmans is “actively seeking additional financing” and may be unable to continue if it “is unable to obtain such financing in the limited time period required,” the statement said. The Montreal-based company owns store banners including Reitmans, RW&Co., Penningtons and Addition Elle. Like many apparel retailers during the COVID-19 pandemic, Reitmans is considered a non-essential business. It was required to close all of its 582 stores across Canada in mid-March. Even before the outbreak of the coronavirus that causes COVID-19, the company had been cutting costs and its financial performance had been lagging expectations, largely because of declines at its plus-size banners, it said in the release. Reitmans had been attempting to refresh those brands over the past year and had stepped up promotions, but did not win back customers. The company had already suspended its quarterly dividend to shareholders, and at a meeting on Friday the Reitmans board of directors decided to continue to do so in order to conserve cash, the statement said. For nearly seven weeks, Reitmans has relied on e-commerce sales for all of its revenue, but economic uncertainty owing to wide-scale shutdowns of many industries could affect shopping behaviours, the company said, and it is still unclear when it will be able to reopen stores. “Based on the company’s liquidity position as of the date of this press announcement, including the termination and reduction in availabilities under the company’s credit facilities … and in light of the uncertainty surrounding the outbreak, [Reitmans] estimates that it will need financing to meet its current and future financial obligations,” Friday’s statement said. Reitmans reported results for its fiscal year ended Feb. 1 on Friday. The retailer reported sales of $869.5-million for the year, a 5.8-per-cent decline compared with the prior year. Comparable sales – an important metric that excludes the impact of store openings or closings – declined 1.3 per cent, including e-commerce sales. While Reitmans’ e-commerce sales are growing, store traffic was down 2.2 per cent last year. The company said the decline was due mostly to disappointing sales at its plus-size stores, the closing of 18 stores and unseasonable weather in early 2019. Reitmans reported a net loss of $87.4-million or $1.56 a share, down from net earnings of nearly $6.8-million or 11 cents a share the year before. The decline includes an $11.8-million impairment charge. Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.
2 May 01:16 • The Globe and Mail • https://www.theglobeandmail.com/business/article-reitmans-canada-warns-business-could-fail-if-it-cant-secure-financing/Rating: 2.18
Crypto Tidbits: Bitcoin Hits $9ks, a16z Raises $500M Crypto Fund, Ethereum 2.0 Nears
2 May 04:00
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2 articles
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Crypto Tidbits: Bitcoin Hits $9ks, a16z Raises $500M Crypto Fund, Ethereum 2.0 Nears
Another week, another round of Crypto Tidbits. Bitcoin has been one of the best-performing assets in financial markets over the past week, managing to rally as high as $9,500 — over 25% higher where it started this week. Altcoins, interestingly, have underperformed the market leader, with Ethereum and XRP both gaining around 10% over the past seven days. Crypto’s strength this week comes as the stock market has started to stagnate in the 2,800-2,900 point range, seemingly playing with the idea of a reversal as the economic outlook remains dismal, with a total of 30 million Americans filing for unemployment over the past month. Jerome Powell, Chairman of the Federal Reserve, went as far as to say that the U.S. economy is currently in its worst rut in history due to the outbreak of COVID-19. The recovery will not be V-shaped, Powell added, asserting that it may take a while for life to return to pre-virus levels due to the long-lasting effects of the shutdown of the world’s biggest economic powerhouse. Whatever the case, analysts are still bullish on Bitcoin. Roch Rosenblum, the co-head of trading at GSR, remarked to Bloomberg that the ongoing BTC rally is predicated on the macroeconomic environment: This optimism was echoed by Zac Prince, a co-founder of crypto startup BlockFi, who said that the “current market dynamics are driving a bolstered interest [for] digital currency.” These dynamics he was referencing was the Federal Reserve’s commitment to money printing and the growth in stablecoins.
2 May 04:00 • NewsBTC • https://www.newsbtc.com/2020/05/02/crypto-tidbits-bitcoin-hits-9ks-a16z-raises-500m-crypto-fund-ethereum-2-0-nears/Rating: 1.04
Forget The Halving—Is This The Real Reason Bitcoin Suddenly Soared Toward $10,000?
Bitcoin and cryptocurrency investors are gearing up for the long-awaited bitcoin halving this month—which will see the number of new bitcoin entering the market cut by half. The bitcoin price has soared this week and is now a strong contender for 2020's best performing asset, climbing to over $9,000 per bitcoin for the first time since late February. However, while many traders are betting the bitcoin price will climb as a result of this month's cut to supply, the latest bitcoin bounce may have happened for entirely different reasons. MORE FROM FORBESThis Bitcoin Rival Is Suddenly Rocketing-Up 75% So Far This YearBy Billy Bambrough Shortly before bitcoin's 20% rally this week, a large transfer of the stablecoin tether was made to bitcoin and cryptocurrency exchange Binance. Tether is a stablecoin pegged to the U.S. dollar on a one-to-one basis with its creators claiming they keep one U.S. dollar in reserve for every tether token issued. Tether tokens worth a little over $50 million were transferred to Malta-based Binance early on Wednesday, just hours before bitcoin began its $30 billion pump. A Twitter bot that records major bitcoin and cryptocurrency trades, called Whale Alert, picked up the transaction. Over the past month Tether Ltd, which controls the stablecoin tether and shares owners and senior staff with the British Virgin Islands-based bitcoin and cryptocurrency exchange Bitfinex, has ramped up the number of tether it's creating—minting over $1 billion worth of the stablecoin. "[On Wednesday we] witnessed extensive buying activity and the high level of scalability and liquidity evident on our platform made us able to seamlessly service all these requests," boasted Bitfinex chief technology officer, Paolo Ardoino—who also serves as the chief technology officer of Tether—in a statement that pointed to major U.S. bitcoin and cryptocurrency exchange Coinbase's unfortunate outage during the sudden bitcoin rally. MORE FROM FORBESBitcoin Price 'Likely' To Pass $10,000 Before HalvingBy Billy Bambrough There is currently some 6.3 billion tether tokens in circulation, compared to just 18 million bitcoin. Last year, it was suggested around half of bitcoin's value between March 2017 and March 2018 was created by trades between bitcoin and tether—casting doubt over whether bitcoin's epic 2017 bull run happened organically. Many have called for Tether's dollar reserves to be externally audited amid claims tether's dollar peg is "no longer credible."
2 May 00:00 • Forbes • https://www.forbes.com/sites/billybambrough/2020/05/02/forget-the-halving-is-this-the-real-reason-bitcoin-suddenly-soared-toward-10000/Rating: 4.41
Global smartphone shipments down 13% in Q1 2020
2 May 11:00
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2 articles
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Global smartphone shipments down 13% in Q1 2020
In what is pretty much expected news, the global smartphone market has met with a pretty steep decline this year and will continue to experience low numbers the next few months. Given the state of most countries during the COVID-19 pandemic, both shipping and production of devices are affected. The latest numbers from a research firm show that the first quarter of 2020 had a 13% decline on smartphone shipments year on year and it’s the first time it fell below 300 million units since 2014. According to Counterpoint Research’s Market Monitor Service, the 13% decline of the smartphone market is the fastest decline ever for the 1st quarter of the year. The shipments fell below 300 million units from January to March 2020 and it’s actually the first time this has happened since the first quarter of 2014. This is in part due to the 27% decline in China, which is due to both lower consumer demand and disruption in production and shipment. Xiaomi and Realme are the only exceptions in terms of the decline in shipments with the former increasing 7% and the latter getting an amazing 157% but these are year on year numbers of course. The main reason for this increase is that India went on lockdown pretty late and both companies have a pretty huge market in that country. But the other main brands suffered losses like Samsung (18%), Huawei (17%), and Apple (5%). The slight good news for the industry is that the share of 5G smartphones actually increased to 8% for Q1 of 2020 as compared to 1% in Q4 2019. Hopefully, the good numbers for 5G-capable devices will help the numbers for the second half of 2020, although the pace of these rollouts per country is of course affected by all the quarantines and lockdowns. Some countries like Spain and India have postponed 5G implementation. Trendforce has predicted that global smartphone shipments will experience further decline in the second quarter of 2020. Most industries are expecting this anyway, but the electronic device market will probably be one of the hardest-hit even after nation-wide quarantines are lifted.
2 May 11:00 • Android Community • https://androidcommunity.com/global-smartphone-shipments-down-13-in-q1-2020-20200502/Rating: 0.30
Research finds that the global smartphone market shrank by the "fastest ever" rate in 1Q2020
The market for mobile devices contracted by 13% in the first quarter of 2020 (1Q2020), compared to 1Q2019. All of its top brands, with the exception of Realme and Xiaomi, also saw declines in terms of shipments and share. However, they may all see even more adversity in 2Q2020. Counterpoint Research has released its global smartphone market report for 1Q2020. It shows that shipments in this sector of the tech economy have dipped below 300 million, something that has not, apparently, happened for quite some time. This worrying indication is, unsurprisingly, attributed to the Covid-19 pandemic situation. It has driven the market down by 13% year-on-year (YoY). The majority of the top10OEMs in this space also saw declines in their shipments; however, thanks to their reduced pverall volume, individual companies' share of this market mostly declined by single-figure percentages or stayed flat. The only brands to see gains in this quarter were Xiaomi and Realme. The latter maintained its excellent record for growth as of late with increased shipments of 157%, whereas the former improved in these terms by 7%. However, neither OEM is likely to replicate this success in 2Q2020, thanks (again) to the knock-on effect of the global public health crisis in prominent markets such as India. Counterpoint Research
2 May 00:00 • Notebookcheck • https://www.notebookcheck.net/Research-finds-that-the-global-smartphone-market-shrank-by-the-fastest-ever-rate-in-1Q2020.463580.0.htmlRating: 1.95