Higher global shares…Nobel economics prize
TOKYO (AP) – Global shares are mostly higher today though worries about the pandemic are keeping optimism in check. France’s CAC 40 edged up 0.2% in early trading, while Germany’s DAX rose 0.1%. Britain’s FTSE 100 added 0.2%. Chinese shares led advances in Asia. Hong Kong’s Hang Seng jumped 2.2%, while the Shanghai Composite added 2.6%. U.S. shares are set for a steady outset to the week, with Dow futures rising 0.2% and S&P futures up nearly 0.5%.
STOCKHOLM (AP) – Americans Paul R. Milgrom and Robert B. Wilson have won the Nobel Prize in economics for “improvements to auction theory and inventions of new auction formats.” The Nobel Committee says their discoveries have benefited sellers, buyers and taxpayers. Today’s award comes as much of the world experiences the worst recession since World War II because of the impact of the coronavirus pandemic. The award caps a week of Nobel Prizes.
LONDON(AP) – British Airways CEO Alex Cruz has been replaced after 4 1/2 years on the job as the COVID-19 pandemic pummels airlines around the world. International Consolidated Airlines Group, BA’s parent company, says that Cruz had been replaced by Sean Doyle, previously the boss of Aer Lingus, another carrier in the group. BA has been criticized in recent months for its handling of 12,000 job cuts linked to the pandemic. The airline’s passenger traffic dropped 95% from a year earlier in the second quarter, leading to a first-half operating loss of 4.04 billion euros ($4.77 billion).
NEW YORK (AP) – The final three months of the year are usually a boom time for many small businesses thanks to holiday shopping and celebrations. But the fourth quarter of 2020 looks precarious as the coronavirus outbreak maintains its grip on the economy. Many restaurants, event planners and even companies like distillers and corporate gift manufacturers face weaker revenues although the holiday season is approaching. Owners contending with government restrictions or crumbling demand are trying to hold on – some are creating new products and services or desperately searching for new customers.
LONDON (AP) – The Bank of England has asked commercial banks whether they are ready for negative interest rates, signaling that the central bank is moving closer to cutting its key interest rate below zero. If the benchmark rate were cut to less than zero, from the current 0.1%, commercial banks would have to pay the Bank of England to hold deposits for them. A negative interest rate would encourage banks to lend money out rather than leave it at the Bank of England. Policy makers have previously indicated that they were willing to consider negative interest rates amid the economic pressures caused by the COVID-19 pandemic.