World shares mixed…Scandinavian Airlines aid pkg
TOKYO (AP) – World shares were mixed today, with European benchmarks falling after a day of gains in Asia that carried over from a rally on Wall Street. In early trading, France’s CAC 40 lost 0.3%, while Germany’s DAX shed 0.2%. Britain’s FTSE 100 lost 0.7%. U.S. shares are set to drift lower with Dow futures down 0.6% and S&P futures down 0.4%.
STOCKHOLM (AP) – Scandinavian Airlines says it is getting an aid package worth 14.25 billion kronor ($1.5 billion) after an agreement with its main shareholders. The deal secures the carrier’s survival amid the COVID-19 crisis. The governments of Sweden and Denmark, which own shares in the airline, are partly financing the recapitalization plan, which includes 12 billion kronor in new funding. Scandinavian Airlines says it is cutting costs and does not expect demand in global travel to return to pre-pandemic levels before 2022. Environmental activists spoke out against rescuing an industry that emits high levels of climate-warming gases like CO2.
Norwegian-Air-Boeing (AP) – Low-cost carrier Norwegian Air Shuttle says it has canceled its 97 outstanding orders for planes from U.S. manufacturer Boeing. Norwegian says in a statement it has terminated the purchase agreements of five 787 Dreamliners and 92 737 MAX aircraft. The Oslo-based company also says it’s filed a legal claim seeking the return of payments made for the aircraft. It is also asking for compensation for losses it claims it incurred from the global grounding of the 737 Max planes as well as engine issues on the 787.
TOKYO (AP) – The merger between online services Yahoo Japan and Line Corp. is getting pushed back to later than the scheduled October date because of the fallout from the coronavirus pandemic. Z Holdings Corp., which operates Yahoo Japan, and Naver Corp. of South Korea, which owns a majority stake in Line, announced last year the merger as equal partners to form a joint venture through a tender offer. Both sides now say that procedures required under law are delayed and a new schedule will be announced.
WELLINGTON, New Zealand (AP) – New Zealand on Tuesday canceled its plans to host a major meeting of U.S. and Asian leaders next year because of the coronavirus, opting instead to lead a virtual summit. New Zealand was scheduled to host the Asia-Pacific Economic Cooperation forum in Auckland. The event would have brought thousands of people to the country throughout the year, culminating in a leader’s week in November 2021. Its 21 members include the U.S., China, Japan, South Korea, Mexico, Indonesia and Hong Kong.