(Bloomberg) -- Indians may borrow more against their stash of gold as the world’s biggest lockdown raises financial stress in an economy that’s set for its first contraction in four decades.Indians are the biggest consumers of gold after China and hold the largest hoard of the precious metal. Gold is both an insurance policy and a retirement plan in a country that lacks robust social welfare systems or widespread access to formal credit. And with economic activity coming to a virtual standstill after Prime Minister Narendra Modi ordered a 40-day nationwide lockdown to combat the coronavirus, more Indians are likely to turn to gold loan companies to raise money against the precious metal.“Recycling and collateralized loans against gold may be expected to grow exponentially in the next few quarters,” P.R. Somasundaram, managing director for India at the World Gold Council, said in an interview. “There will definitely be a strong growth...
(Bloomberg) -- Royal Dutch Shell Plc cut its dividend for the first time since the Second World War as the oil slump triggered by the coronavirus pandemic reshapes the energy industry.The surprise move is the latest illustration of how the global spread of the deadly disease is causing the biggest upheaval for generations. Energy consumption is undergoing a historic plunge, as is GDP growth in many countries. The global economy that emerges from the other side of the crisis may look very different, with lasting changes to patterns of fuel demand.This is a big moment in the history of Shell and the oil industry. The company was by far the biggest payer in the FTSE-100, providing a reliable income to millions of pension fund investors. The two-thirds reduction in its dividend will shock investors, but also underscores the gloomy outlook for the year.Weak earnings in the first three months of the...
Boeing Co (BA) said it plans to cut 10% of its workforce and announced reductions in its plane production rates as it braces for years-long industry recovery from the aviation crisis induced by the coronavirus pandemic.The aerospace company said that the staff reductions will include voluntary layoffs (VLO), natural turnover and involuntary cuts as necessary.“We’ll have to make even deeper reductions in areas that are most exposed to the condition of our commercial customers - more than 15% across our commercial airplanes and services businesses, as well as our corporate functions,” Boeing President and CEO Dave Calhoun said in a letter to employees. “The aviation industry will take years to return to the levels of traffic we saw just a few months ago.”Calhoun added the demand for commercial airline travel has fallen off a cliff, with U.S. passenger volumes down more than 95% compared to last year. Globally, commercial airline revenue is...
(Bloomberg) -- The number of new coronavirus cases in Germany rose the most in four days, while measures to contain the coronavirus dragged the French economy into a sharp contraction in the first quarter, heralding what’s set to be Europe’s deepest recession of the postwar era.In an Oval Office interview with Reuters published Wednesday night, Trump said he thinks that China is determined to see him lose the November election based on Beijing’s response to the coronavirus and he was considering various ways to punish the Chinese government.U.S. economic data showed the country’s record-long expansion is over. The first official gauge for China’s economy in April indicated the recovery from a first-quarter slump will be prolonged. Japanese Prime Minister Shinzo Abe said the economy was facing unprecedented difficulties.Key DevelopmentsVirus Tracker: Global Cases 3.22 Million; Deaths 227,420Dueling data on Gilead treatment leaves many questionsFed’s Powell warns of ‘heartbreaking’ harm of virusJapan Output...
Royal Dutch Shell cut its dividend for the first time since World War Two on Thursday as the energy company retrenched in the face of an unprecedented drop in oil demand due to the coronavirus pandemic. Shell also suspended the next tranche of its share buyback programme and said it was reducing oil and gas output by nearly a quarter after its net profit almost halved in the first three months of 2020. Shell's shares in London dropped 6.7% in early trading on Thursday, underperforming rival BP ....
Royal Dutch Shell cut its dividend for the first time in 80 years and suspended the next tranche of its share buyback programme on Thursday following the collapse in global oil demand due to the coronavirus pandemic. "Given the continued deterioration in the macroeconomic outlook and the significant mid and long-term uncertainty, we are taking further prudent steps to bolster our resilience, underpin the strength of our balance sheet and support the long-term value creation of Shell," Chief Executive Ben van Beurden said in a statement. Starting in the first quarter, Shell will reduce its quarterly dividend to 16 cents per share from 47 cents in the previous quarter....
