(Bloomberg) -- U.S. equity futures dropped after the first three-day rally in American equities since mid-February, while Asian shares advanced as investors take stock of strengthening stimulus efforts across the globe.India’s bonds and stocks rose along with the rupee after the central bank slashed the benchmark rate by three quarters of a percentage point. S&P 500 futures dropped more than 1% after the index surged more than 6% Thursday. The dollar headed for its biggest weekly retreat since 2009, while Treasuries advanced. Australian stocks fell, while most other regional markets rallied.The U.S. has now overtaken China for the most coronavirus cases worldwide, as infections in New York surged. China will temporarily suspend the entry of foreigners holding valid visas and residence permits starting Saturday as the country where the outbreak began battles to prevent the disease being bought back inside its borders from overseas.The current rally “should struggle to keep on...
(Bloomberg) -- The global airline industry has never had it so bad. Not even after the 9/11 terrorist attacks.Airlines could lose a quarter of a trillion dollars in revenue this year, according to the International Air Transport Association, as travel comes to a standstill with countries locked down to fight the coronavirus. Most carriers will go bankrupt by the end of May if they can’t find support, Sydney-based CAPA Centre for Aviation said last week.“In this very difficult period, it will only be the survival of the fittest” - Qatar Airways CEO Akbar Al BakerWhich airlines are most at risk? Like the virus, the crisis is indiscriminate, affecting everyone from budget operators to national flag carriers. Aircraft manufacturers and their suppliers also are under immense pressure, with Boeing Co. calling for billions of dollars in state support and Airbus SE extending credit lines and canceling its dividend.Using the Z-score method developed...
(Bloomberg) -- Southwest Airlines Co. is losing “big money” on every flight, raising the risk of worker furloughs in the longer-term despite billions of dollars in immediate aid from the U.S. government.The biggest U.S. discounter is “appreciative” of the package of loans and cash assistance approved by the Senate and awaiting a vote in the House of Representatives, Chief Executive Officer Gary Kelly said Thursday. If approved and signed by President Donald Trump, the program would provide an option to secure cash “that’s at least accessible, and quickly and simply,” he said.Airlines have been battered as the spread of coronavirus and related government-imposed travel restrictions have caused demand for flights to collapse. The number of passengers flown by U.S. carriers has tumbled from about 2.5 million a day before the virus outbreak to just 239,000 screened by security officials Wednesday, according to Airlines for America, a trade group.“The load factors are...
(Bloomberg) -- American stock futures declined, cooling off after the first three-day rally since February, as the U.S. overtook China for the most coronavirus cases worldwide.Contracts on the S&P 500 were down 1.2% at 2,577.50 as of 12:23 p.m. in Tokyo. The underlying gauge surged almost 18% over Tuesday-Thursday in the biggest rally since 1933, while the Dow Jones Industrial Average climbed 20% above its recent low, meeting the technical definition of a bull market.U.S. virus cases topped 82,000, surpassing the total in China, amid at least 6,448 new cases in New York state. Still, the market’s recent gains show investors have grown confident that a $2 trillion stimulus package and fresh assurances from the Federal Reserve may be enough to rescue the economy from a deep recession. “If history holds true, the market crash playbook suggests that this week’s significant rally will eventually be faded,” Ed Moya, a market analyst...
(Bloomberg) -- Singapore Airlines Ltd. shares fell after the carrier unveiled a plan to raise about S$8.8 billion ($6.2 billion) to contend with the devastating impact of the coronavirus pandemic.The company will issue S$5.3 billion in new stock at S$3 apiece, 54% lower than the last closing price on Wednesday, as well as convertible bonds, according to a statement Friday. State investor Temasek Holdings Pte., the carrier’s biggest shareholder, said it would back the resolutions.“The board is confident that this package of new funding will ensure that SIA is equipped with the resources to overcome the current challenges,” Chairman Peter Seah said in a statement. “We are especially grateful for Temasek’s strong vote of confidence.”The coronavirus has plunged global aviation into an unprecedented crisis. Airlines could require as much as $200 billion in government aid and bailout measures this year to survive, according to the International Air Transport Association, while CAPA...
