Tag Archives: Forecast / Warning Results

Major airline groups push for an end to coronavirus quarantines, travel bans | Instant News


WASHINGTON (Reuters) – The United States, state governments and several foreign countries must replace quarantine and travel bans on airline passengers with COVID-19 testing of travelers before departure and after arrival, airlines and business groups said on Thursday.

FILE PHOTOS: Passengers walk past artwork between terminals at IAH George Bush Intercontinental Airport amidst the coronavirus disease (COVID-19) outbreak in Houston, Texas, USA, July 21, 2020. REUTERS / Adrees Latif / File photo

They said the move would boost US international air travel, which was down 78% year-on-year for the past seven-day period, according to airline industry data.

The group, which includes the International Air Transport Association, Airlines for America, the US Chamber of Commerce, the airline union, and the US Travel Association, called on the Trump administration, state governors, and international partners “to pursue a risk-based and data-driven approach to testing for COVID-19 which will eliminate the need for quarantines and travel bans so that the travel network can be safely reopened. “

The group added that “travel quarantines are destroying our industry”.

Currently, 18 US states have some type of quarantine for arriving travelers, the group said. Hawaii last week began allowing airline passengers who tested negative for COVID-19 to avoid the mandatory two-week quarantine upon arrival.

The United States still imposes entry bans on almost all non-US citizens currently in China, Great Britain, Ireland, Brazil, Iran and countries in the so-called Schengen border-free area of ​​Europe.

Nearly all of Europe still bans most US travelers, while the UK allows Americans to visit but requires a two week quarantine on arrival.

“Continued restrictions on international travel and different state and international quarantine policies are hindering the recovery of the US economy,” the letter added.

The Trump administration has held high-level discussions with countries including the UK, Germany, Japan, Canada and Italy about the possibility of forming a “flight bubble” that would allow travel or reduce quarantine if passengers agree to a COVID-19 test prior to departure and on arrival.

On discussion is whether quarantine is still needed, with some health experts in the Trump administration calling for a one-week quarantine, and what tests to use. The rise of coronavirus infections in some countries, such as the United States, is an obstacle to lifting restrictions.

Reporting by David Shepardson; Edited by Cynthia Osterman

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Qantas said Australia’s viral travel restrictions cost $ 71 million in quarterly profits | Instant News


SYDNEY (Reuters) – Qantas Airways Ltd said on Friday that the closure of Australian state borders due to the coronavirus pandemic had cost A $ 100 million ($ 71 million) in revenue in the first quarter and would negatively impact the second quarter as well.

FILE PHOTO: Qantas aircraft seen on tarmac at Melbourne International Airport in Melbourne, Australia, 6 November 2018.Image taken 6 November 2018. REUTERS / Phil Noble / File Photo

The airline is running less than 30% of its normal domestic capacity due to border closures, which were previously expected to operate at around 60% currently, Qantas Chief Executive Alan Joyce said in a speech at the airline’s annual shareholder meeting.

“The point is, it’s a matter of time,” he said. “We know improvements will materialize – later than planned.”

Joyce said if Queensland opened its borders with the country’s most populous state, New South Wales, domestic capacity could reach up to 50% by Christmas.

Airlines could report positive net free cash flow in the second half if all state borders are opened with the possible exception of Western Australia, he said.

In New Zealand, where there are no domestic restrictions, Air New Zealand Ltd operates nearly 85% of pre-pandemic capacity.

Qantas has suspended nearly all of its international flights and said on Friday some 18,000 permanent employees had left receiving government benefits rather than their usual wages.

Chairman Richard Goyder said there were some positive signs surrounding a “travel bubble”, starting with New Zealand, that could result in it flying to destinations that were not serviced before COVID-19, such as South Korea, Taiwan and various Pacific islands.

The airline is on track to meet its target of sustainable annual cost savings of A $ 1 billion from financial year 2023, said Joyce, with A $ 600 million of which will open this financial year, ending June 30, 2021.

He added Qantas would seek to match any concessions agreed by the union to rival Virgin Australia under its new owner Bain Capital.

Qantas has previously announced plans to cut 8,500 jobs, or nearly 30% of the workforce before the pandemic.

($ 1 = 1.4033 Australian dollars)

Reporting by Jamie Freed; Edited by Jacqueline Wong and Kenneth Maxwell

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H2 National Australia Bank cash proceeds took $ 188 million | Instant News


FILE PHOTO: National Australia Bank logo seen at a branch in central Sydney, Australia, 8 February 2018. REUTERS / Daniel Munoz

(Reuters) – The National Australia Bank said on Friday that second-half cash revenues would hit A $ 264 million ($ 188 million) in provision for customers and remediation of payroll and impairment of property assets.

The allegations would reduce net profit by A $ 450 million, with NAB’s decision to divest MLC Wealth, a unit of wealth it sold to IOOF Holdings, cutting back on any cash generated.

NAB said about 65% of the A $ 266 million after-tax was set aside for customer remediation related to MLC Wealth. Another A $ 90 million has been set aside for payroll, including overpayment issues and long-term underpayments. The A $ 94 million impairment charge for real estate assets accounts for the changes associated with more employees working remotely.

Cash income is a closely watched measure of a bank’s performance as it removes unusual items.

Australia’s No. 3 lender said the terms and impairment charges would reduce a bank’s Tier 1 equity ratio (CET1) by 15 basis points.

The bank will report its full year results on November 5.

($ 1 = 1.4033 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Muralikumar Anantharaman and Jane Wardell

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Analysis: Europe’s income optimism is waning with a resurgent virus | Instant News


MILAN / LONDON (Reuters) – The sudden tightening of social restrictions to contain the resurgent coronavirus pandemic across Europe is threatening to damage any stock market that could boost third-quarter earnings.

DAX chart of the German stock price index depicted on the stock exchange in Frankfurt, Germany, 12 October 2020. REUTERS / Staff

European powers Germany, France and Britain have announced a range of new measures, including curfews and limits on private gatherings, which have sparked concerns about the sustainability of the recovery.

Optimism about the burst of activity that followed the lifting of the national lockdown over the summer has raised hopes that the forthcoming European financial season will help the region’s stock markets emerge from the sideways moves they have been on for months.

European stocks are still down 11 percent in 2020 after COVID-19 sent the pan-European STOXX 600 index down about 40% in March.

“In the grand scheme of things, this quarter is one of recovery overall,” said chief equity strategist Sylvain Goyon at Oddo BHF in Paris.

“There are increasing expectations and there is a good chance the economic outlook will continue to be revised upwards”.

According to Refinitiv I / B / E / S / data, analysts expect companies on the STOXX 600 to report an average 36.7% decline in year-on-year third quarter revenue.

“It was better than we had last quarter but it’s still quite brutal,” said Philipp Lisibach, Head of Global Equity Strategy at Credit Suisse in Zurich, highlighting a 51% drop in European profits in the second quarter.

While corporate earnings in the third quarter of 2020 are expected to show evidence of recovery, investors will be interested in seeing forecasts for the next quarter and 2021, if any are to come.

They will scrutinize the outlook statement to see how businesses fared in the weeks following the reporting period and what the impact of the potential EU and UK failure to reach a free trade agreement.

Investors will also analyze how companies control costs and face barriers such as the stronger euro.

The predictive-beat yield of European blue chips could provide “a catalyst for equity prices to move higher”, said Kevin Thozet, member of the investment committee at asset manager Carmignac.

FROM HEADWINDS TO TAILWINDS

Despite the bouts of volatility, early results from companies such as Publicis, the No. 3rd world, or German chemical maker Covestro seems to bring better evidence of a trend.

Restoring sales of Louis Vuitton bags helped France’s LVMH withstand the impact of the coronavirus crisis in the third quarter, as the world’s largest luxury goods group reported a smaller-than-expected drop in revenue.

Also encouraging are Daimler’s results

The winner lives at the Logitech house and Reckitt Benckiser reports the results on Tuesday. Luxury goods makers Moncler and L’Oreal are reporting this weekend.

Due to relatively greater exposure to cyclical sectors, earnings trends and price performance for European equities are more associated with economic changes than for other markets such as the United States loaded with tech giants such as Apple and Amazon.

Energy and financial stocks, for example, which tend to follow economic growth closely, are expected to see their profits fall by 81.6% and 38.6% this quarter, respectively.

While this imbalance has weighed on Europe compared to the US market which has seen the S&P 500 gain 7% year-to-date, it could turn into a drag once a credible vaccine is used or a large US stimulus is approved. the economy.

“In a period where the economy continues to be under immense pressure, the lack of a growth sector is only hurting Europe, but at the same time you can make the argument that if the recovery continues there will be pretty decent catch-up potential. , “Said Lisibach Credit Suisse.

Earnings in Europe appear to be lagging behind that of the United States, where a decline in third-quarter profit is expected to be limited to 18.9% thanks to massive efforts for big technology, which got a boost from household economies during the pandemic.

Reporting by Danilo Masoni in Milan and Julien Ponthus in London; additional reporting by Sujata Rao in London; Editing by Elaine Hardcastle

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Sales at Pizza Domino UK jumped on online demand, lower tax rates | Instant News


FILE PHOTO: A Domino pizza delivery person rides a scooter on a residential street as the spread of the coronavirus disease (COVID-19) continues, in west London, England, March 24, 2020. REUTERS / Toby Melville

(Reuters) – Domino’s Pizza Group DOM.L said on Thursday that it expects to meet market expectations for 2020 profits as lower value-added tax rates and higher online orders helped it post a 19% jump in third-quarter sales.

The company, a franchise of Domino’s Pizza Inc. based in the US DPZ.N, also benefited from the reopening of the contact-free collection and the return of sporting events.

Domino’s predicts annual pretax profit will range between £ 93 million and £ 98 million, compared to £ 98.8 million for 2019.

A drop in the UK’s value-added tax rate to 5% from 20% in July helped Domino control costs, which have weighed on the company’s first-half profit by spending more money on cooking and delivering its pizza safely during the pandemic.

Online sales now account for about 95% of UK delivery sales, says the UK’s largest pizza delivery chain.

The company’s system of sales in the UK and Ireland rose to 342.1 million pounds ($ 444.90 million) in the quarter ended Sept. 27, from 288.2 million a year earlier.

“At the heart of our future plans is realigning with our franchisee partners and we are having detailed discussions to agree on a sustainable way forward,” said Chief Executive Officer Dominic Paul, referring to the revenue-sharing line with franchisees.

Reporting by Yadarisa Shabong and Shanima A in Bengaluru; Edited by Aditya Soni

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