Germany's benchmark 10-year Bund yield rose on Wednesday to its highest since mid-April, pushed up by optimism in world markets a day before a European Central Bank meeting. Italy's borrowing costs also edged higher as the country started the process of selling a new 10-year government bond via a syndicate of banks. Selling in bond markets was expected to be limited ahead of Thursday's ECB meeting, at which many economists expect the central bank to ramp up emergency bond purchases to bolster an economy ravaged by the coronavirus pandemic.
(Bloomberg) -- Deutsche Lufthansa AG signaled it would make sweeping job cuts and sell off non-core units in order to repay a 9 billion-euro ($10 billion) coronavirus bailout from the German government.Europe’s biggest airline will slash employee expenses and look at spinning off non-core units to reduce costs and bolster cash flow as the coronavirus crisis depresses revenue, it said in a statement Wednesday. The group had a 2.1 billion-euro net loss in the first quarter.“In view of the very slow recovery in demand, we must now take far-reaching restructuring measures to counteract this,” Chief Executive Officer Carsten Spohr said in the release.The pledge to slash costs is likely to lead to a struggle with Germany’s powerful labor unions which in the years prior to the pandemic thwarted efforts to trim expenses with pilot and cabin-crew strikes. While other European carriers are also cutting back, Lufthansa’s situation may be complicated by the state’s pending 20% holding in the airline, which will see government representatives involving themselves in its affairs.Lufthansa shares were up 1.6% as of 9:31 a.m. in Frankfurt. The stock has fallen 41% since the start of the year.Labor BattleLufthansa wouldn’t be the first German company to run up against labor resistance as it tries to pare costs. Industrial conglomerate Thyssenkrupp AG -- once a symbol for German engineering prowess -- is selling off or closing entire divisions after years of failed attempts to put the business on a sustainable footing. If Spohr’s cost-cutting drive falls short, he won’t be able to pay down debt and dislodge the state as a shareholder.“The scale of the restructuring is immense, and agreement with unions on drastic reductions in staff numbers, wages or both will be difficult to achieve,” said Daniel Roeska, an analyst with Sanford C Bernstein.Unit SalesSpohr’s bid to sell non-core units won’t be easy either, judging by Lufthansa’s past spin-off attempts. A push to divest its LSG Sky Chefs catering arm met with repeated delays before an agreement was reached to sell the European division to Gate Group Holding AG. Lufthansa earlier this year abandoned an auction process for the international unit.The airline group has looked at a partial listing of its Lufthansa Technik aircraft maintenance and refit business, people familiar with the matter said previously. While a listing of the unit would give Lufthansa funds to pay down debt, unshackling the division could take years and would deprive the airline group of a reliable income stream. Technik had a pre-crisis enterprise value of 7.5 billion euros, according to Bloomberg Intelligence analysts.Cuts ElsewhereThe company set out more precise cuts for its foreign airline units, where labor-protection laws are less stringent than in Germany. Austrian Airlines will see staff costs pared by 20%, with Brussels Airlines suffering a 25% reduction in the workforce and a 30% cut to its fleet.While Lufthansa has said its liquidity position is becoming “urgent,” the statement gave no details on cash levels. The deal will dilute the holdings of current investors, though they’re expected to back it in a June 25 vote rather than risk insolvency.Airlines worldwide are reeling as the Covid-19 pandemic brings decades of travel growth to a shuddering halt. Industry executives are cutting back the workforce given demand could take several years to return to previous levels.U.K. rival British Airways has said it plans to cut 12,000 jobs, while discounters Ryanair Holdings Plc, EasyJet Plc and Wizz Air have signaled a total of more than 8,000 positions will be lost. Gulf carrier Emirates has said it will lower headcount, with people familiar with the matter saying the toll could surpass 30,000 workers.Biggest BailoutLufthansa, previously regarded as among the most stable and successful airlines, is negotiating bailout that’s the biggest for the industry so far. Its predicament highlighs both the impact of the virus and Germany’s willingness to come to the aid of its leading businesses.Lufthansa posted a first-quarter loss of 1.22 billion euros, widening from 336 million euros a year earlier. The imposition of travel lockdowns from mid-February led to an 18% drop in sales, with fuel-hedging losses also hurting the numbers.The picture will be far worse in the current quarter, during which almost all of the carrier’s 760 planes have been grounded.Spohr said it’s impossible to provide full-year guidance, beyond saying the result will be significantly worse.(Adds share price, analyst comment from fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Andreas Bryn Bakkerud, Controller of Vistin Pharma ASA, and a primary insider, has on 03 June 2020 purchased 7 500 shares in Vistin Pharma ASA at an average price of NOK 11.35.
Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful. Danske Bank A/S (contact: Syndicate – Morten Grove; telephone: + 45 45 14 70 33) hereby gives notice, as Stabilisation Coordinator, that the Stabilisation Manager(s) named below may stabilise the offer of the following securities in accordance with Commission Delegated Regulation EU/1052/2016 under the Market Abuse Regulation (EU/596/2014).
Chinese social media and entertainment giant Tencent is understood to have paid $260 million for a majority stake in Bohemia Interactive, a Czech-based games designer behind the “ArmA” and “DayZ” games series. The news was reported Wednesday by The Information. Tencent declined to comment. The move comes barely a week after Tencent paid a reported […]
China's oil demand has recovered to more than 90% of the levels seen before the coronavirus pandemic struck early this year, a surprisingly robust rebound that could be mirrored elsewhere in the third quarter as more countries emerge from lockdowns. While China - the world's second-largest oil consumer - is the outlier for now, easing travel restrictions and stimulus packages aimed at resuscitating economies could accelerate global oil demand in the second half of 2020, industry executives said. "The brisk resumption of Chinese oil demand, 90% of pre-COVID levels by the end of April and moving higher, is a welcome signpost for the global economy," said Jim Burkhard, vice president and head of oil markets at IHS Markit.
Despite the coronavirus pandemic and increasingly heated tensions between the U.S. and China, Universal Studios Beijing is expected to open to the public on schedule in May of next year, its general manager said Wednesday. Chinese reporters were recently taken on a tour of the construction site, which is in Beijing’s Tongzhou district, on the […]
360 Finance, Inc. (NASDAQ: QFIN) ("360 Finance" or the "Company"), a leading digital consumer finance platform, today announced that its mobile application "360 Jietiao" was among the first batch of financial services apps from 33 companies to complete registration and file records with the National Internet Finance Association of China ("NIFA"), the national self-regulatory body for China's internet finance industry backed by People's Bank of China (PBOC).
(Bloomberg) -- Turkish policy makers are pumping money into the economy at the fastest pace in over a decade to contain the fallout of the coronavirus pandemic, a move that risks weakening the currency and stoking inflation.State lenders are unleashing credit through the economy as the central bank injects liquidity by scooping up government bonds. The money supply, as measured by the M1 gauge -- which includes currency in circulation and bank deposits -- is growing at an annual rate of almost 80%, according to the latest central bank data.With annual credit growth running at the fastest pace since at least 2007, and the size of the central bank’s bond holdings ballooning, the worry is that the looser financial conditions could leave Turkey’s currency weaker and unanchored, making imports more expensive.After nine straight interest-rate decreases, the lira already has one of the lowest yields in the world when adjusted for inflation. Meantime, the price outlook already started to show some signs of deterioration. Turkey’s consumer inflation unexpectedly quickened to an annual 11.4% in May, snapping two months of declines, as elevated food costs offset some of the impact from weaker demand.“By forcing the banks to increase lending at such a rapid rate, the authorities may be sowing the seeds of the Turkish economy’s downfall, through a combination of higher inflation, a weaker lira and lower GDP growth,” said Nigel Rendell, a senior analyst at Medley Global Advisors LLC in London. “Strong demand and inevitable bottlenecks in supply will lead to higher prices.”Money AppetiteIn a sign that demand for financing is still heating up, Turkish lenders borrowed a record 197.9 billion liras ($29.5 billion) from the monetary authority on Friday. That’s even after the central bank injected the equivalent of $35.5 billion -- or roughly 240 billion liras -- into the banking system through currency swaps this year through April.The policy maker also bought back 55.8 billion liras worth of government bonds from the secondary market since the beginning of the year, taking its securities portfolio to 71.9 billion liras as of June 1. The stockpile is now equivalent to about 10% of its total assets, the biggest share since 2010, according to Bloomberg calculations.Still, given the disruptions from the pandemic, a possible annual contraction of 17% in gross domestic product this quarter could slow inflation to single digits by the second half, allowing the central bank to continue easing, according to Carla Slim, a Dubai-based economist at Standard Chartered Plc.(Updates with inflation data in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Chinese social drama film “Damp Season” was this week named as the Grand Prize winner at the Jeonju International Film Festival. The well-established Korean festival has been held in largely virtual form this year in reaction to the coronavirus outbreak. At the end of April, festival organizers confirmed that JIFF would go ahead May 28 […]
Britons drove up an increase in the number of foreigners obtaining German citizenship last year, with more naturalised than in any year since Britain's 2016 referendum vote to leave the European Union, official data showed on Wednesday. Britain left the EU on Jan. 31. Talks aimed at setting out its future ties with the bloc have all but stalled and some Britons worry they will lose the right to live and work in Germany, Europe's biggest economy.
Pune, June 03, 2020 -- The global helicopter industry size is projected to reach USD 68.36 Billion by 2026, exhibiting a CAGR of 4.47% during the forecast period. However, the.
Buena Vista International has struck a content supply deal with Chinese streaming platform Bilibili. The agreement covers 85 titles, and nearly 400 hours, of National Geographic documentary series to Chinese audiences. Some 35 of them will be exclusive to Bilibili within China. In late May, the documentary supply kicked off with “Cosmos: Possible Worlds,” the follow-up […]
The global beverage carton packaging machinery market size is expected to reach USD 1.5 billion by 2027, expanding at a CAGR of 4.9%, according to a new report by Grand View Research, Inc. Rising awareness pertaining to the adverse environmental effects of plastic waste is expected to drive the demand for green packaging materials, in turn, benefitting market growth.
The euro topped $1.12 for the first time in 11 weeks, extending the shift in the currency market amid optimism over economic reopenings across the globe. The euro traded at $1.1226 vs. $1.1168 on Monday. The New Zealand dollar and Australian dollar also rose against the greenback, as did the British pound which flirted with the $1.26 level.
Elsewhere on Wednesday: – Trump’s violent rhetoric meets with scorn. – The age of magic money. – Is Covid-19 a blood vessel disease? – Tesla autopilot misses truck, crashes. – How can pubs reopen ? A nation ...
Davos will open itself up to allow people all around the world to share their views at a virtual summit, as part of what the event says is a "great reset" of capitalism.
The Global Electronic Musical Instruments Market will grow by $ 425.43 mn during 2020-2024
MyWave.AI announced today that its MyWave.AI Intelligent Personalization Platform is now an SAP endorsed app, available for online purchase on SAP® App Center. SAP Endorsed Apps are a new category of solutions from SAP’s partner ecosystem to help customers become best-run, intelligent enterprises. Endorsed apps are meant to deliver value with desired outcomes.
Pricefx’s Optimized Dynamic Pricing solution named a SAP Endorsed App, now available for digital discovery and purchase on SAP App Center
The "Satellite-based Earth Observation Market - Growth, Trends, Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.