World stocks mixed…No quick recovery for Lufthansa
UNDATED (AP) – Stocks were mixed in Europe and Asia today as investors watched to see if lawmakers will come ahead with fresh stimulus for a U.S. economy struggling with shutdowns as new coronavirus outbreaks flare. In early trading, Germany’s DAX gained 0.5% while the CAC 40 in Paris slipped 0.2%. Britain’s FTSE 100 fell 1.3%. In Asia, Tokyo’s Nikkei 225 index shed 0.4% while the Shanghai Composite index gained 0.3%. Hong Kong lost 0.7%. South Korea’s Kospi added 1.3%. Dow and S&P futures are higher.
LONDON (AP) – The Bank of England has left interest rates unchanged at a record low 0.1% amid caution about how rapidly the United Kingdom will recover from the COVID-19 pandemic. The bank also has left the size of its bond-buying stimulus program unchanged at 745 billion pounds, or $980 billion. The central bank forecast that the economy would shrink less than previously expected this year. But it says gross domestic product probably won’t return to pre-pandemic levels until the end of 2021 as spending by consumers and businesses remains weak. The unemployment rate is expected to almost double this year.
FRANKFURT, Germany (AP) – Lufthansa says flying won’t come back to pre-virus levels until at least 2024. CEO Carsten Spohr says there will be “no quick recovery” in the long haul traffic that usually fills airline’s coffers. Spohr made the statement as the company released its earnings report for the April to June period when most of its passenger traffic disappeared due to the pandemic. It is getting by on cargo revenue and a 9 billion euro government bailout. The net loss was 1.5 billion euros. The company expects a loss for the year as well.
BERLIN (AP) – The Economy Ministry says German factory orders surged in June, giving hope that Europe’s largest economy is on track for a recovery from declines suffered from the coronavirus pandemic lockdown earlier in the year. Industrial orders rose by 27.9% in June over the previous month, according to figures released today by the Economy Ministry adjusted for seasonal and calendar factors. That’s more than double the increase economists had expected, and followed an already strong 10.4% increase in May. Even with the increases, industrial orders are still down by more than 11% on the year.
TOKYO (AP) -Toyota’s profit plunged 74% in the April-June quarter as the coronavirus pandemic sank vehicle sales to about half of what the top Japanese automaker sold a year earlier. Toyota Motor Corp. reports a fiscal first quarter profit of 158.8 billion yen, or $1.5 billion. It says it sold nearly 1.2 million vehicles globally during the quarter, down from 2.3 million vehicles last year. The decline was almost entirely because of damage from the pandemic that resulted in lockdowns, production halts and sales disruptions. Sales suffered in nearly all global markets, but are starting to recover in China.