Financial News

Monday, June 29th
June 26, 2020
AP-NC Newswatch
June 29, 2020
Financial News



World shares slip…Corporate bonds buy…Boeing testing


BANGKOK (AP) – World shares slipped today as rising virus cases caused some governments to backtrack on pandemic re-openings, or to warn they might have to. In early trading in Europe, Europe, Germany’s DAX edged 0.1% lower and the CAC 40 in Paris dropped 0.6%. Britain’s FTSE lost less than 0.1%. In Asia, Tokyo’s Nikkei closed 2.3% lower, while the Hang Seng in Hong Kong dropped 1.0%. The Kospi in Seoul fell 1.9%. The Shanghai Composite lost 0.6%. U.S. futures are barely changed.


WASHINGTON (AP) – The Federal Reserve has released a list of roughly 750 companies, including Apple, Walmart and ExxonMobil, whose corporate bonds it will buy in the coming months in an effort to keep borrowing costs low and smooth the flow of credit. The central bank also said Sunday that it has, so far, purchased nearly $429 million in corporate bonds from 86 of those companies, including AT&T, Walgreen’s, Microsoft, Pfizer and Marathon Petroleum. To avoid criticism that it might favor a specific industry, the Fed says it will seek to mimic a broad market index approach and purchase bonds from a wide range of companies.


UNDATED (AP) – Flight-certification testing for Boeing’s 737 Max, which has been grounded since March 2019 because of two deadly crashes, could begin as early as today. The company needs clearance from the FAA before the planes can fly again, and the test flights, with FAA test pilots, are a key step. Even if no new problems are discovered during the test flights, it’s likely to take at least a month to get pilots trained and get mothballed planes upgraded, inspected and serviced. The Max’s flight control system, triggered by faulty readings from sensors, had pushed the planes into nosedives that led to crashes in Indonesia and Ethiopia, killing 346 people.


AMSTERDAM (AP) – The Dutch government has started an auction of 5G frequencies with telecom companies bidding so they can provide customers with the faster mobile communication networks. The government says the online auction of three different frequencies that got underway today could last days or longer and will raise a minimum of 900 million euros ($1 billion). A fourth frequency will be auctioned off at a later date because its use for 5G networks could interfere with the work of a satellite communications interception facility in the Northern Netherlands used by Dutch intelligence agencies.


TOKYO (AP) – Nissan Chief Executive Makoto Uchida is giving up half his pay after the Japanese automaker sank into the red amid plunging sales and plant closures in Spain and Indonesia. Uchida apologized for the poor results at a shareholders’ meeting today. He promised a recovery driven by cost cuts and new models showcasing electric-car and automated-driving technology.



AP-WF-06-29-20 1048GMT