Year: 2020

(Bloomberg) — Rolls-Royce Holdings Plc unveiled a long-awaited financing plan, targeting up to 5 billion pounds ($6.5 billion) of fresh capital to buttress the U.K. jet-engine-maker against an historic aerospace downturn that still has years to go.The London-based company will tap existing shareholders for 2 billion pounds in a rights issue, and is seeking to borrow a further 3 billion pounds in bonds and loans, it said in a statement Thursday. Rolls-Royce shares fell as much 11%, extending a months-long decline, while its euro bonds jumped by the most since they were issued.The funding is aimed at seeing Rolls-Royce through …read more […]

Delta Air Lines is among airlines Boeing Co has approached to buy dozens of 737 MAX jets built for clients that have since scrapped their orders or gone bust, two people familiar with the matter said. As the 737 MAX edges closer to commercial flight after an 18-month grounding, Boeing is scrambling to find buyers for the so-called “white tails” – jets painted white, awaiting an airline livery, or whose color schemes need to be swapped. The 737 MAX’s ban following two fatal crashes had already caused some carriers to walk and the number of unsold jets has …read more […]

(Bloomberg) — Manufacturing in the euro zone expanded at the fastest pace in more than two years thanks to a strong upturn in Germany, with a sharp pickup in trade helping to pull the economy out of the coronavirus recession.While Asia’s factories displayed fitful progress in September, the euro area saw output, new orders and confidence in business prospects all improve, according to an IHS Markit survey. At the same time, companies in the region continued to cut jobs — the latest sign that they remain skeptical that the current pace of recovery can be maintained.After a sharp initial rebound …read more […]

The Tesla Model 3’s Autopilot scored just 36 when assessed on its ability to maintain a driver’s focus on the road. In contrast, the Mercedes GLE’s system, which had the highest overall score of 174 and received the top rating of ‘very good’, received a score of 85 for driver engagement. The European New Car Assessment Program (NCAP), which worked with UK insurance group Thatcham Research, called the assessments the first consumer ratings specifically focused on driver assistance systems – technology that automates some tasks, including acceleration, braking and steering support. …read more […]

Shares in Bayer plunged 11% after it flagged that adjusted profit may slip next year and it may have to write down the value of agriculture assets by close to 10 billion euros ($11.7 billion). Bayer, which acquired seed maker Monsanto in 2018, said late on Wednesday that the impact of the coronavirus on the agriculture business will be more severe than originally expected because of competition in soy, lower biofuel demand and negative currency effects. The company now expects 2021 sales to come in at around the 2020 levels, with 2021 core earnings per share …read more […]

U.S. electric car maker Tesla cut the starting price of its Chinese-made Model 3 sedans on Thursday by about 8% to 249,900 yuan ($36,805), once Chinese subsidies for electric vehicles are taken into account, according to its China website. Previously, the starting price for Model 3 sedans made in Tesla’s Shanghai factory with a standard driving range was 271,550 yuan, after state purchase subsidies. …read more […]

(Bloomberg) — Bayer AG slumped after the agriculture and pharma giant said it would have to slash costs as the pandemic’s impact on farm commodities extends into next year, further undermining the rationale for its $63 billion purchase of Monsanto Co.The stock fell as much as 13% in German trading. Bayer, already reeling from a legal battle over its herbicide Roundup, late Wednesday said it would cut 1.5 billion euros ($1.8 billion) of annual costs and may also eliminate jobs and sell businesses.Chief Executive Officer Werner Baumann is confronting multiple challenges after getting his contract extended earlier this month. Besides …read more […]

After weeks of speculation, the plane engine maker will tap investors for money and issue new bonds. …read more […]

(Bloomberg Opinion) — Here’s one potential reason to add some bullion coins or bars to your investment portfolio: They’re not making any more of them.All the gold that’s ever been mined would fit into a cube with edges 22 meters long — small enough to fit into three Olympic-sized swimming pools. Each year, miners and pawnbrokers add another 4,000 to 5,000 metric tons to an existing 197,576 ton pile, but jewelry demand alone uses up about half of that.With the metal hitting a record $2,075 a troy ounce in August, the concern we’re heading toward peak gold has reared its …read more […]

U.S. electric car maker Tesla cut the starting price of its Chinese-made Model 3 sedans on Thursday by about 8% to 249,900 yuan ($36,805), once Chinese subsidies for electric vehicles are taken into account, according to its China website. Previously, the starting price for Model 3 sedans made in Tesla’s Shanghai factory with a standard driving range was 271,550 yuan, after state purchase subsidies. Tesla did not disclose what batteries the cheaper version uses. …read more […]

“This is the confirmation that end demand in automotive, microcontrollers and specific programs with Apple are strong enough to more than compensate for the Huawei headwind,” said Stephane Houri, head of equity sector research at Oddo BHF. The French-Italian chipmaker is set to report its final third-quarter earnings and fourth-quarter guidance on October 22. …read more […]

American Airlines Group Inc (NASDAQ: AAL) said in a letter to employees Wednesday that 19,000 will be furloughed starting Thursday after the federal Payroll Support Program expires.Airline Layoffs Underway As Stimulus Talks Continue: Talks on extending the relief program under the Coronovirus Aid, Relief and Economic Security — CARES — Act are ongoing between the White House and House Speaker Nancy Pelosi, American Airlines CEO Doug Parker said in the letter, citing a conversation with Treasury Secretary Steven Mnuchin. The Senate and the House of Representatives are also deliberating the extension of payroll support an alternative to the broader relief …read more […]

Stéphane Bancel told FT that he did not expect to have full approval to distribute the drug to all sections of the U.S. population until next spring. Moderna did not immediately respond to Reuters request for comment. Moderna will not be ready to seek emergency use authorization from the Food and Drug Administration before Nov. 25 at the earliest, the report said, citing Bancel. …read more […]

AstraZeneca Plc’s (NYSE: AZN) coronavirus vaccine development program could hit by further delays, as the Food and Drug Administration has widened the scope of its probe into the halted trial, Reuters reported Wednesday.What Happened: The federal agency is inquiring whether side effects similar to the one seen in the COVID-19 vaccine trial — transverse myelitis — also emerged in trials of other vaccines designed by Oxford University, AstraZeneca’s partner, Reuters said, citing people familiar with the matter. The vaccines reportedly under review use a modified adenovirus as a vector and target illnesses such as the Middle East Respiratory Syndrome and …read more […]

It is a busy day ahead. Economic data and geopolitics will keep the markets busy. …read more […]