ALAFCO Aviation Lease and Finance, Kuwaiti-based leading firm, sued Boeing Co. (NYSE: BA) on Wednesday for $336 million over a called off Boeing 737 Max order, according to a Reuters report.What Happened The Kuwaiti firm has filed a complaint in Chicago federal court stating that Boeing is in denial of returning an advance payment that the former had made for 40 Boeing 737 Max Jetliners order, CNBC reported. The order stood cancelled on March 6 after a delivery failure of nine aircrafts.The aircraft manufacturer has not provided any details.Other Canceled Airline Orders Avolon, an aircraft leasing company, has also terminated its 737 Max aircraft order of 75 planes while China Development Bank applied for withdrawing its 29 aircraft order, according to a CNA report. Norwegian Air's 92 Max planes and five 787 plane order also stands in ambiguity.Boeing To Slash Workforce, Seeks Executive Personnel Changes Boeing Wednesday is seeking to shrink...
(Bloomberg) -- The collapse in oil prices is set to worsen China’s factory deflation in the coming months, building pressure on the central bank to loosen monetary policy more decisively.The most recent energy slump is another hit to companies already grappling with higher costs, broken supply chains, canceled orders and unwilling consumers. China’s factory-gate prices, which are a key inflation metric for the world economy, fell 1.5% in March, and could drop as much as 5% this quarter according to Shanghai brokerage Huabao Trust Co.Crude oil is not part of China’s inflation baskets but it affects the prices of goods such as fuel, petrochemicals and packaging as well as transport costs. A previous spike in food prices and above-target consumer price gains has been a factor in the People’s Bank of China’s wariness about large-scale stimulus amid the downturn.“Monetary policy will need to collaborate with fiscal policy to cushion the downward...
(Bloomberg) -- President Donald Trump signed an order Wednesday temporarily curbing immigration to limit competition for jobs as the U.S. moves toward reopening the economy.China reported no deaths from the coronavirus for an eighth straight day. South Korea said it will prepare for a second wave of virus infections. The country’s economy suffered its worst contraction since the global financial crisis.Singapore said it’s bracing for a sharper economic contraction this year.New York reported the fewest daily fatalities since early April. Governor Andrew Cuomo said he plans to work with Connecticut and New Jersey to build a “tracing army” to track the virus’s spread, with California announcing a similar effort as a step to reopen economies.Key DevelopmentsVirus Tracker: Cases top 2.6 million; deaths exceed 183,000Trump signs executive order to curb immigrationChina reported no deaths for eight straight daysAlmost 9 in 10 patients on ventilators died in study$8 trillion in global fiscal stimulus...
(Bloomberg Opinion) -- The best argument for taking a sanguine approach to oil prices collapsing into negative territory this week is that it’s strictly a local problem.As my colleague Matt Levine has written, once you unpack what “oil prices” means, the bizarro-world implications of negative pricing aren’t so mysterious. It’s common to talk about West Texas Intermediate crude oil priced at Cushing, Oklahoma as if it’s a proxy for the oil market as a whole, but that’s never been the case. The world’s twin oil supply and demand shocks have made the shortage of storage and pipeline capacity at that specific location so acute that producers are prepared to pay to get their place in the queue. That need not have wider implications. While WTI has always been a less important measure of the oil market than it might seem, the current turmoil poses deeper problems. Dated Brent, which forms the pricing benchmark for more...
As stay-at-home orders in response to the COVID-19 pandemic took hold across much of the country in the latter part of March, the level of freight available – and the rates to haul it – plummeted. This means many of the smallest companies that make up the vast majority of motor carriers are seriously hurting. ...
(Bloomberg) -- A Dallas hotel executive whose empire includes luxury resorts has emerged as the biggest winner from the coronavirus bailout for small businesses.A combined total of $59 million from the small business lending package went to three lodging companies chaired by Monty Bennett, according to regulatory filings. The money went to Braemar Hotels & Resorts, which owns luxury properties including the Ritz-Carlton in St. Thomas in the U.S. Virgin Islands, Ashford Hospitality Trust Inc., which owns more than 100 hotels around the country, and the firm that manages both.The PPP has come under fire after big restaurant chains like Potbelly Corp. and Ruth’s Chris Steak House got loans, while many mom-and-pop firms were left stranded when the initial $349 billion in funding for the program ran out of money last week. The House is expected to vote Thursday on a bill approving an additional $320 billion for the initiative.The loans...
