Tag Archives: bailout

Germany, German Domination Instrument Has Little Disputes | Instant News


It’s no secret that Germany has have their differences with the European Central Bank which, meanwhile is not as sweet as it is Certain members of the Euro Zone and first certainly useful in bring Greece to the heels, maybe also a little more loose with a wallet under the citizens of one of the members than should be under the tightly closed Teuton. Long lasting frustration with German euro spending things that the Germans don’t want certainly felt by members of the German Constitutional Court, who voted this week to express these feelings basically declaring the ECB unconstitutional under German Basic Law.

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Embraer, a Brazilian airline employs advisors to discuss government support: sources | Instant News


SAO PAULO (Reuters) – At least two Brazilian airlines and aircraft makers Embraer SA (EMBR3.SA) has hired an investment bank to assist talks with the country’s development bank BNDES for government support, said a source familiar with the matter.

FILE PHOTOS: Brazilian aircraft maker logo Embraer SA is seen at the company’s headquarters in Sao Jose dos Campos, Brazil February 28, 2018. REUTERS / Roosevelt Cassio

Embraer has recruited Itau BBA, the investment banking unit at Itau Unibanco Holding SA (ITUB4.SA), said two sources.

Embraer seeks credit lines between $ 1 billion and $ 1.5 billion after an agreement with Boeing Co. (BANNED) fell through.

Brazilian newspaper O Estado de S. Paulo reported earlier on Wednesday that Embraer employed Itau BBA.

Embraer and BNDES did not immediately respond to requests for comment.

Itau BBA also advises the airline Azul SA (AZUL.N) about negotiations with BNDES, two people who were aware of the problem said. Azul confirmed the recruitment of Itau BBA, saying it was suggested by BNDES.

Azul previously hired a restructuring specialist to speak with his creditors, including banks, suppliers and lessors of his aircraft. All payments are deferred. Restructuring Boutique Galeazzi & Associados leads the restructuring work at Azul.

Latam Airlines Group SA based in Santiago (LTM.SN) has maintained investment bank Banco BTG Pactual SA (BPAC3.SA) as an advisor in talks with BNDES, two sources added, mainly focusing on discussions about the debt conversion equation.

Latam Airlines confirmed the recruitment of BTG Pactual.

BNDES is expected to complete negotiations with airlines and Embraer this month for a rescue package that may reach $ 2.5 billion.

Most will likely be provided by BNDES, because private lenders have refused to provide loans to airlines, an industry where their current exposure is small, said two sources.

BNDES initially considered providing loans to airlines equivalent to half of the amount they needed, which was around $ 2 billion, with the remainder provided by Brazil’s biggest lenders, such as Banco Bradesco SA (BBDC4.SA), Itau Unibanco Holding SA (ITUB4.SA) and Banco Santander Brasil SA (SANB3.SA). The bank, however, rejected the plan and all parties tried to reach an agreement.

BNDES support packages for airlines will mix credit lines with conversion instruments that can provide bank shares in the company.

Reporting by Tatiana Bautzer and Carolina Mandl in Sao Paulo; Editing by Lisa Shumaker and Matthew Lewis

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Should US Destinations from Memphis to Maine Get Bailout Dollars for Market Travel? | Instant News


Times Square New York City in the morning.

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Should US taxpayers help save destination marketers from the effects of the current coronavirus crisis? Considering how much financial needs for people and companies to get through the crisis, of course there is something that causes fatigue of funds.
Nonetheless, there appears to be bipartisan political support to provide funding to destination marketing organizations (DMOs) whose funding is heavily affected by the crisis.
More than 80 members of the US House of Representatives from both sides of the political aisle signed a letter sent this week to Pelosi Chair and Minority Leader Kevin McCarthy urging congressional leaders to provide assistance to destination marketing organizations.
The letter noted that “in 2018, domestic and international travelers contributed nearly $ 1.1 trillion to the US economy. Of that amount, 80 percent came from domestic tourists. These expenses … create job opportunities throughout the country. In 2017, travel and tourism directly supported around 5.29 million jobs. … Much of the power in the domestic travel and tourism sector can be attributed to DMOs across states and regions. ”

The duty of the DMO is to market states, cities or other entities. Destination marketers target potential visitors, meeting planners and travel professionals, as well as those who can reach them. This includes traditional travel press and social media influencers.
An example is organizations such as Memphis Tourism, which recently held the “Get Live! Memphis” Online Music Festival with Facebook to promote and support the city’s music community during this crisis. Obviously, another goal is to attract potential travelers to visit destinations when traveling again possible.

A guitar that lights up on Beale Street in Memphis

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The destination marketers for each community compete for conventions, gatherings, out-of-town sports fans, and visitors to attractions, events and festivals. Every traveler they bring helps employ people in restaurants, hotels, airports, bars and clubs, and in local transportation. This of course also helps direct hotel taxes and local sales.
So why doesn’t such an organization, whose entire purpose is to bring in visitor dollars to their communities, qualify for coronavirus funding under the Paycheck Protection Program (PPP)? The problem, according to the US Travel Association, is not only financial but bureaucratic. Many DMOs, according to USTA, are inadvertently left ineligible for coronavirus aid funds because of their non-profit or quasi-government status.
“The travel economy has been devastated by coronaviruses, with more than one third of job losses occurring in the travel and hospitality sector,” said President and CEO of the US Travel Association Roger Dow. “But the trip will not be adequately prepared to help lead the recovery without the job marketers aim, which is an important engine of economic development in their states, cities and territories.”
The US Travel Association has approved other recommendations for the CARES Act which may be more controversial, including allocating an additional $ 600 billion for the Paycheck Protection Program and extending it to December 2020.
On the other hand, destination marketing organizations create and manage initiatives that drive billions of dollars in tourism and visitor spending throughout the U.S.
Funding the DMO now, the theory goes, will stay on and workers pay until a difficult time when the US “opens” for business, even if it’s not “business as usual.”

Beale Street in Memphis

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The Art Angle Podcast: Why Germany’s COVID-19 Relief Plan Is Jealousy in the World of Art | Instant News


Welcome to Art Angle, a podcast from Artnet News that digs into places where the art world meets the real world, bringing the biggest stories every week to the world. Join host Andrew Goldstein every week to see in depth what is most important in museums, art markets and more with input from our own writers and editors as well as other top artists, curators and experts in this field.

Although the coronavirus pandemic was first and foremost a public health emergency, it quickly proved to be a deep financial emergency as well. With businesses and cultural institutions around the world forced to shut themselves down en masse in the face of socially distracting regulations, the big questions loom about how the global economy and labor will survive for long periods in which all but “essential” workers must work from home -or not at all. This proposition is particularly worrying in the art industry, where so many artists and small businesses face dangerous conditions even at the best of times, making them very vulnerable to financial ruin in our extraordinary moment at the moment.

But different Western countries respond to cultural crises in very different ways. United States issued a rude A $ 2.2 trillion rescue package which contains only $ 300 million specifically intended for arts and media purposes, and conservative politicians attack even this insignificant amount as a waste of money. Instead, Germany announced a federal aid package that featured defeat € 50 billion ($ 54 billion) to be distributed to freelancers and small businesses, including those in art, while the country’s culture minister praised artists as “not only indispensable, but also important, especially now.” Even more help came from the city-state of Berlin, which began to channel € 5,000 payment for individual freelancers almost instantly with the promise that “there will be enough for everyone.”

In this week’s episode, Artnet News European editor Kate Brown called from her home in Berlin to discuss all sides of the plan to rescue the amazing German culture. How can a country that is known for its sometimes frightening bureaucracy gather so cheap bailouts in such a short time? What kind of political climate allows it? And what does the package mean for the future of art in Berlin and Germany in general once the crisis finally ends?

Listen above and subscribe to Art Angle on Apple Podcast, Spotify, SoundCloud, or wherever you get the podcast. (Or catch up last episode here on Artnet News.)

Listen to Other Episodes:

The Art Angle Podcast: An Extraordinary True Story from Mystical Painter Agnes Pelton

Art Angle Podcast: Three Ways Coronavirus Will Change the Art World

The Art Angle Podcast: Why Art and Fashion need each other now

The Art Angle Podcast: What is the Scenery of Art Under Coronavirus?

The Art Angle Podcast: How Art-Dealing Prodigy Become the Market’s Most Wanted Villain

The Art Angle Podcast: Is the Ice Cream Museum the Future of Art, or Is Sugar Only the Hunt?

The Art Angle Podcast: What is Saudi Arabia Trying to Do with Contemporary Art?

The Art Angle Podcast: How Hollywood Finally Fell for the Art Market

The Art Angle Podcast: How Jeffrey Epstein Made the World of Art As His Hunting Spot

The Art Angle Podcast: How the World of Art Falls under the Spell of the Occult

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