Global markets up…Virginia Atlantic bankruptcy
BEIJING (AP) – Global markets rose today amid investor concern about U.S. stimulus spending and a trade agreement with Beijing. In early trading, the FTSE 100 in London gained 1% and Frankfurt’s DAX advanced 0.8%. The CAC 40 in France added 0.8%. In Asia, the Shanghai Composite Index gained 0.2% while the Nikkei 225 in Tokyo lost 0.3%. The Hang Seng in Hong Kong rose 0.6% and Seoul’s Kospi gained 1.4%. On Wall Street, Dow and S&P futures are up.
WASHINGTON (AP) – The latest negotiating session on a coronavirus relief bill has wrapped with modest concessions being made by both sides. Top Democrats emerged from a 90-minute meeting with Trump administration officials Tuesday saying progress was made. The Trump team agreed with that assessment and highlighted their offer to extend a moratorium on evictions from federally subsidized housing through the end of the year. But a final agreement appears far off. Treasury Secretary Steven Mnuchin says the two sides set a goal of reaching an agreement by the end of the week to permit a vote next week.
NEW YORK (AP) – Richard Branson’s Virgin Atlantic airline is seeking protection from creditors as it tries to survive the pandemic that is slamming air travel. The U.K.-based airline filed for help Tuesday in U.S. federal bankruptcy court in New York. A spokeswoman for Virgin Atlantic cast the Chapter 15 bankruptcy filing as part of a court process to carry out a restructuring plan that the airline announced last month. The airline hopes to emerge from the restructuring in September. Virgin Atlantic is the latest airline to wind up in court because of the financial harm from the coronavirus outbreak.
TOKYO (AP) – Japanese automaker Honda says it sank into the red for the April-June as its sales plunged due to the coronavirus pandemic, especially in the U.S., Japan and India. Honda Motor Co. racked up an $765 million fiscal first quarter loss. But the company’s executive vice president (Seiji Kuraishi) told reporters he expects sales and profits to rebound. He says the crisis has reaffirmed the need for Honda to reshape its operations by beefing up online sales and growing leaner. Honda acknowledged the future is uncertain since the virus is spreading in some places and economic downturns may affect consumer spending.
FRANKFURT, Germany (AP) -German carmaker BMW says it lost 212 million euros in the second quarter as the coronavirus pandemic shut down factories and dealerships. But CEO Oliver Zipse says he’s cautiously optimistic about the rest of the year. He says the company is still expected to turn an operating profit making and selling cars under the BMW, Mini and Rolls-Royce brands. Sales and earnings will be lower as major car markets are still suffering from the virus outbreak. But the company saw a rebound in China, its biggest market.