Brazil planemaker Embraer SA said that after a $4.2 billion deal with Boeing Co fell apart over the weekend, it is working on adjusting production levels and capital expenditures, as well as working to preserve cash. The company added in a statement that it finished 2019 with a "solid cash position" and had no "significant debt in the next two years." Other measures include adjustments to inventory, extension of payment cycles, reduction of expenses and seeking financing, Embraer said....
The sharp rebound in equities has pushed widely used measures of valuing U.S. shares to their highest level in years. Strategists say price-to-earnings ratios could go higher still given monetary stimulus, but huge uncertainty around earnings this year because of the economic fallout from the coronavirus makes for challenges in valuing shares. Stock prices have risen even as earnings estimates have fallen, lifting multiples that were knocked down in the virus-driven market meltdown....
The U.S. federal government is looking at "a whole bunch of alternatives" to support oil and other energy companies, Treasury Secretary Steven Mnuchin said on Friday as the industry struggles with plummeting prices and demand as the coronavirus crushes economic activity. Taking equity stakes as part of a lending facility for the industry is among the alternatives, Mnuchin said at a White House event. President Donald Trump said: "The energy business is very important to me, and we're going to build it up."...
(Bloomberg) -- A two-track world is starting to establish itself in emerging markets.Not only are the stocks, bonds and currencies of the developing economies reacting to the Covid-19 pandemic in very different ways, but the fallout is quickly creating two distinct camps of winners and losers. Hence, the extra premium investors demand to hold riskier emerging-market debt has ballooned, with the the spread between high-yield bonds and their investment-grade counterparts now close to its widest since 2002, according to JPMorgan Chase & Co.’s indexes. Qatar, Abu Dhabi and Saudi Arabia -- which have single-A or double-A ratings -- accounted for more than a third of developing-nation Eurobond sales this month.“Emerging-market debt broadly reached its lows during March and will ever so slowly continue to recover from here,” said Paul Greer, a London-based money manager at Fidelity International, which manages about $380 billion. “In the near term, the best opportunity set --...
Apple Inc. (AAPL) is preparing to develop its own processors for Mac computers to be rolled out as early as next year, according to a Bloomberg report.Until now, Apple had been using Intel Corp.’s (INTC) processors. Apple is said to be working on three different processors that are based on the A14 chip that will power the next iPhone. The first of these new Apple-made chips is expected to be much faster than that of the iPhone's and will arrive in a new computer next year, according to the report. In taking this step, Apple is likely to be slowly moving towards ditching its dependence on Intel chips altogether, the report suggested.Apple’s partner for iPhone and iPad processors, Taiwan Semiconductor Manufacturing Co. (TSMC), will develop the new Mac chips. The components will be based on a 5-nanometer production technique, the same size Apple will use in the next iPhones and iPad...
Venezuelans reported paying above $2 per liter ($7.57 per gallon) for gasoline last week amid fuel shortages, one of the world's highest rates and a dramatic reversal for an OPEC nation that long boasted of having the world's cheapest fuel. Thanks to subsidies under socialist former President Hugo Chavez and his succesor and protege, Nicolas Maduro, gasoline sold by state oil company PDVSA - which has a legal monopoly on fuel sales - is essentially free in Venezuela. Octavio Salom, 53, said he and fellow kidney patients in the eastern city of Puerto Ordaz bought 20 liters of gasoline at $2 per liter for the nurses that provide their dialysis treatment to take a taxi to the clinic....
