U.S. President Donald Trump signaled a further deterioration of his relationship with China over the coronavirus outbreak, saying he has no interest in speaking to President Xi Jinping right now and going so far as to suggest he could even cut ties with the world’s second largest economy.
(Bloomberg) — Bearish bets have risen sharply on Singapore Airlines Ltd. shares, making it the most shorted stock in the city state as the carrier posted its biggest ever quarterly loss in the wake of the coronavirus pandemic.Investors have become increasingly pessimistic about holding the stock, with short interest as a percentage of carrier’s free-float shares more than quadrupling to 15.5% since mid-March, according to data from IHS Markit. The company’s stock price has dropped 40% this year, almost double the decline in the nation’s equity benchmark.The carrier recorded a net loss of S$732 million ($515 million) in the quarter …read more […]
(Bloomberg) — As it headed toward bankruptcy, Diamond Offshore Drilling Inc. took advantage of a little-noticed provision in the stimulus bill Congress passed in March to get a $9.7 million tax refund. Then, it asked a bankruptcy judge to authorize the same amount as bonuses to nine executives.The rig operator is one of dozens of oil companies and contractors now claiming hundreds of millions of dollars in tax rebates. They are employing a provision of the $2.2 trillion stimulus law, called the CARES act, that gives them more latitude to deduct recent losses.“This is a stealth bailout for the oil …read more […]
(Bloomberg) — European stocks jumped and U.S. equity futures eked out gains, trimming declines at the end of a week dogged by concern about a second wave of infections and simmering tension between America and China. Oil climbed and Treasuries edged higher.The Stoxx Europe 600 Index rallied led by mining and energy companies after missing a late rebound on Wall Street a day earlier. Futures contracts on the three main U.S. equity gauges pointed to more modest gains at the open, while Asian shares were mixed after data showed a rebound in Chinese industrial production but a deeper than expected …read more […]
(Bloomberg) — Hon Hai Precision Industry Co.’s profit plunged by the most on record after the coronavirus disrupted its China production and walloped global smartphone demand.Apple Inc.’s most important manufacturing partner recorded a 89% decline in net income to NT$2.1 billion ($70 million) in the first three months of 2020. Revenue slid almost 12% to NT$929.7 billion, according to Bloomberg News’ calculations based on previously reported monthly sales numbers.The earnings decline drove home to extent to which Covid-19 and the resultant global lockdown has chilled electronics demand and driven up costs for upstream producers like Hon Hai that had to …read more […]
Asian stocks edged up on Friday but were on course to end the week lower as deteriorating U.S.-China relations add to uncertainties over how fast economies can recover as they start to emerge from lockdowns.
Cathay Pacific Airways Ltd said on Friday it made an unaudited loss of HK$4.5 billion ($580.53 million) at its full-service airlines during January-April and flagged a “very bleak” outlook as the coronavirus crisis grounded planes globally.
Australia’s Westpac Banking Corp said in a defence filing in Federal Court on Friday it was admitting to a number of failures in a case where it has been accused of 23 million breaches of anti-money laundering and counter-terrorism laws.
Europe’s biggest bank, HSBC has cut already bleak global growth forecasts even further, as lockdown restrictions extended through April and tentative economic re-openings drag on a return to business, trade and spending.
(Bloomberg) — One of China’s best-performing stocks so far in 2020 is a little-known server maker that last year abruptly joined the same U.S. blacklist that threatens Huawei Technologies Co.’s survival. Investors are betting that Beijing’s rapidly emerging plan to invest trillions in technology will outweigh the Trump administration’s curbs.Dawning Information Industry Co. has soared 60% since the start of the year, making it the third-best performer year to date on the benchmark CSI 300 index of Shanghai and Shenzhen stocks. It’s now trading at about 56 times its projected 2020 earnings, above its average over the past three years …read more […]
Worker welfare is having a moment on Wall Street.
Chipmaker Taiwan Semiconductor Manufacturing Co’s $12 billion investment in the United States will increase U.S. economic independence from China, Secretary of State Mike Pompeo said in a statement early on Friday.
Taiwan Semiconductor Manufacturing Co Ltd , the biggest contract chipmaker, said it plans to build a $12 billion factory in Arizona in an apparent win for the Trump administration’s efforts to wrestle global tech supply chains back from China.
Cathay Pacific Airways Ltd said on Friday it made an unaudited loss of HK$4.5 billion ($580.53 million) at its full-service airlines in the first four months of the year and the financial outlook remained “very bleak” due to the pandemic.
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