(Bloomberg Opinion) -- You might not have thought it three months ago, when the spread of Covid-19 forced Qantas Airways Ltd. to halt international flights and drove its shares to their biggest percentage drop in eight years. But a global pandemic could wind up being good news for the company.Australia’s dominant airline is now something close to a monopoly player. Virgin Australia Holdings Ltd., its erstwhile local rival, went into administration in April. While limited flights are still operating, it’s unlikely to offer aggressive competition until a rescuer comes along, and possibly some time after that. That’s a fortunate position to be in. For carriers around the world, domestic operations tend to do better than international ones, since competition is usually weaker while shorter distances offer productivity benefits. This advantage is accentuated by the coronavirus, which has more or less shut down cross-border aviation on a global basis.Few carriers have as impressive a redoubt...
The J.D. Power 2020 Initial Quality Study (IQS) has found that buyers of Tesla Inc.'s (NASDAQ: TSLA) vehicles report more issues with their vehicles in the first 90 days of ownership compared with other new vehicle owners.What Happened The J.D. Power 2020 Initial Quality Study is a survey of issues encountered by new car owners of the latest model cars.Tesla was profiled for the first time in the IQS. The automaker scored 250 and ranked the lowest among all the manufacturers covered in the study. Tesla's ranking in the survey is not official, as it does not meet the criteria.Doug Betts, president of the automotive division at J.D. Power, said, "unlike other manufacturers, Tesla doesn't grant us permission to survey its owners in 15 states where it is required." Betts revealed how Tesla was ranked, saying, "we were able to collect a large enough sample of surveys from owners in the...
(Bloomberg) -- The Pentagon unveiled a list of companies it says are owned or controlled by China’s military, opening them to increased scrutiny in the latest spat between the world’s biggest economies.The 20 companies included Huawei Technologies Co. and Hangzhou Hikvision Digital Technology Co., as well as a number of state-run enterprises. In letters to lawmakers dated June 24, the Pentagon said it was providing a list of “Communist Chinese military companies operating in the United States,” which was first requested in the fiscal 1999 defense policy law.This list includes “entities owned by, controlled by, or affiliated with China’s government, military, or defense industry,” Pentagon spokesman Jonathan Hoffman said in a statement.“As the People’s Republic of China attempts to blur the lines between civil and military sectors, ‘knowing your supplier’ is critical,” Hoffman said. “We envision this list will be a useful tool for the U.S. government, companies, investors, academic institutions,...
(Bloomberg) -- Asian stocks dropped and U.S. equity futures retreated as worries about a surge in virus cases in multiple U.S. states and some other countries saps appetite for riskier assets. The dollar extended gains.Japanese, Australian and Korean shares were all down more than 1%. China and Hong Kong are closed for holidays. Futures on the S&P 500 dipped, while Treasuries edged up. The risk-off moves followed daily records for new cases in Florida and California, with Texas also suffering. New York, New Jersey and Connecticut are requiring visitors from virus hot spots to self-quarantine. Australia recorded its largest spike in cases since April. Crude oil prices fell below $38 a barrel in New York.Market sentiment is rapidly turning more negative on concern that the spreading coronavirus could force policy makers to slow the pace or reverse business re-openings. At the same time, there’s the potential for trade tensions to resurface...
(Bloomberg) -- Singapore’s biggest telecom operators chose Ericsson AB and Nokia Oyj as their main 5G network providers, leaving China’s Huawei Technologies Co. with less significant contracts in the city state.Singapore Telecommunications Ltd. chose Ericsson while a group that includes StarHub Ltd. opted for Nokia after the city-state gave final approval for the rollout of nationwide 5G coverage in the country Wednesday. Huawei, which has been a point of contention in the tensions between the U.S. and China, still has a foothold in the market as a provider for TPG Telecom Pte’s smaller, local network system.The final awards were issued to Singtel and a group formed by StarHub and M1 Ltd. after they completed regulatory processes, including selection of preferred frequency spectrum lots and vendor partners, the Infocomm Media Development Authority said Wednesday. Provisional awards were made in April.TPG Telecom Pte Ltd. is being allocated the remaining frequency spectrum in the...
Advanced Micro Devices’ (AMD) relentless march forward has resulted in outsized market gains for five consecutive years. No matter the macro climate and attendant headwinds, the stock just keeps performing. 2020 has been no different, although by AMD standards, relatively muted compared to recent years. Still, shares have appreciated by 19% year-to-date.But the upward movement must come to an end at some point, right? Maybe, but not anytime soon, according to RBC analyst Mitch Steves. In a recent report to clients, the 5-star analyst dissects why AMD’s gaming console segment is set to act as a catalyst over the next two-three years.With Sony and Microsoft both lining up holiday season launches for the PS5 and the Xbox, as the provider of much of the technology that powers the game consoles, AMD will benefit when both release their products.“Considering that build patterns for both the Xbox and PS5 are already set, we...
After a run of gains since June 12, markets are taking a turn down today. The slip, over 2.5% on both the S&P 500 and the Dow Jones, comes after Florida confirmed more than 5,500 new coronavirus cases. The sudden spike raised new fears that the still-fragile economic reopening may be derailed. The mood wasn’t helped by orders from the states of New York, New Jersey, and Connecticut – which had all been hard-hit by the virus – that all visitors from known hot spots must self-quarantine for 14 days.In times like this, it’s a comfort for investors to follow a reliable trading signal. Corporate officers, who are privy to the inside information on their companies, have an obligation to serve the best interests of their shareholders, and are held responsible for their actions, don’t jump lightly when it comes to trading. That duty and accountability, and the legal requirement to...
