Month: March 2020

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Coronavirus Shock Tests the Airline Industry’s Cash ‘Fortress’

March 9, 2020 admin Comments Off on Coronavirus Shock Tests the Airline Industry’s Cash ‘Fortress’

(Bloomberg) — Back in September 2017, Doug Parker, the chief executive of American Airlines Group Inc., predicted clear financial skies ahead for the world’s largest carrier.“I don’t think we’re ever going to lose money again,” Parker said during an investor gathering at Dallas-Fort Worth International Airport. “We have an industry that’s going to be profitable in good and bad times.” His counterpart at Delta Air Lines Inc., Ed Bastian, expressed similar optimism. Airlines, like most major companies, game out extreme financial shocks so they can be prepared for the worst. A few years after Parker’s comment, the industry is beginning …read more […]

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Coronavirus impact on aviation

March 9, 2020 admin Comments Off on Coronavirus impact on aviation

The airline sector is feeling the heat of the coronavirus. Yahoo Finance’s Brian Sozzi and Alexis Christoforous break down what it could cost the industry with Alexandre de Juniac — Director General & CEO of the International Air Transport Association. …read more […]

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Shale Drillers Are Staring Down Barrel of Worst Oil Bust Yet

March 9, 2020 admin Comments Off on Shale Drillers Are Staring Down Barrel of Worst Oil Bust Yet

(Bloomberg) — America’s shale drillers have never faced an oil bust quite like this.The split between Russia and its one-time OPEC allies last week has ignited an all-out price war, leaving oil markets defenseless against the unprecedented demand shock brought on by the coronavirus. Crude plunged by the most since the 1990s on Monday, with West Texas Intermediate falling to less than $28 a barrel, a level at which vast swathes of the U.S. shale patch become unprofitable. Many U.S. producers were down more than 30% in pre-market trading Monday.It’s a disaster for U.S. frackers including Chesapeake Energy Corp. and …read more […]

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Historic Day in Markets Has Traders Rethinking What’s Possible

March 9, 2020 admin Comments Off on Historic Day in Markets Has Traders Rethinking What’s Possible

(Bloomberg) — What started with the biggest oil-price collapse since 1991 is shaping up to be one of the wildest days in years for global markets.Panic selling, margin calls, vanishing liquidity and coronavirus work-from-home arrangements were just some of the challenges traders faced as risk assets plunged, currency volatility soared and money flooded into government bonds. They also had to figure out how an oil-price war and rapidly spreading outbreak will affect the global economy, companies and geopolitics.“The day has been absolutely chaotic,” said Eugene Kang, whose team trades assets including Russian government bonds at NH Investment & Securities Co. …read more […]