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Lufthansa’s Swiss unit plans 1,000 job cuts over two years through attrition By Reuters

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© Reuters. FILE PHOTO: Swiss International Air Lines CEO Kluehr stands in front of the airlines new Bombardier CS100 aircraftat Zurich airport

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VIENNA (Reuters) – Lufthansa (DE:) unit Swiss International Air Lines plans to cut roughly 1,000 jobs over the next two years through voluntary measures rather than layoffs, its outgoing Chief Executive Thomas Kluehr said in remarks published on Saturday.

The Swiss government has granted the airline more than 1 billion euros ($1.17 billion) in loan guarantees to help it cope with the collapse in air travel due to the pandemic. Like many of its peers it decided to shrink its staff and fleet.

“We are initially relying on three socially acceptable measures: a hiring freeze, part-time models with salary reductions, and early retirement,” Kluehr told newspaper Schweiz am Wochenende, adding that based on staff fluctuations in recent years it should be possible to cut 1,000 jobs without layoffs.

Swiss and Edelweiss Air, a much smaller sister airline, have 10,475 employees, according to the Lufthansa Group’s second-quarter financial report https://investor-relations.lufthansagroup.com/fileadmin/downloads/en/financial-reports/interims-reports/LH-QR-2020-2-e.pdf. Swiss has roughly 9,500 staff, Schweiz am Wochenende said.

Kluehr, whose successor has yet to be announced, said the airline industry’s current crisis should last three to five years. In terms of job cuts much would depend on how quickly the market recovers, he added.

“If, in the medium to long term, we expect Swiss’s business to shrink by 20% – and that is what we expect at the moment – then the 1,000 jobs would suffice, yes,” said Kluehr.

“If we see in the first quarter, looking towards the summer, that the situation is not improving, particularly in long-haul, then the 1,000 jobs will not be enough.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Northrop Grumman Earnings, Revenue Beat in Q3 By Investing.com

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© Reuters. Northrop Grumman Earnings, Revenue Beat in Q3

Investing.com – Northrop Grumman (NYSE:) reported on Thursday third quarter that beat analysts’ forecasts and revenue that topped expectations.

Northrop Grumman announced earnings per share of $5.89 on revenue of $9.08B. Analysts polled by Investing.com anticipated EPS of $5.62 on revenue of $8.87B.

Northrop Grumman shares are down 10% from the beginning of the year, still down 19.90% from its 52 week high of $385.00 set on January 30. They are under-performing the which is up 6.34% from the start of the year.

Northrop Grumman follows other major Technology sector earnings this month

Northrop Grumman’s report follows an earnings matched by Taiwan Semiconductor on October 14, who reported EPS of $0.92 on revenue of $12.4B, compared to forecasts EPS of $0.92 on revenue of $12.4B.

Danaher had beat expectations on Thursday with third quarter EPS of $1.72 on revenue of $5.88B, compared to forecast for EPS of $1.36 on revenue of $5.51B.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Buyers of Thai distressed assets plan big purchases as debt payment holiday ends By Reuters

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© Reuters. FILE PHOTO: Coronavirus disease (COVID-19) outbreak, in Bangkok

By Orathai Sriring and Satawasin Staporncharnchai

BANGKOK (Reuters) – A pandemic-exacerbated surge in Thai bad loans to nine-year highs and the end of a debt payment holiday are prompting buyers of distressed debt to embark on a shopping spree in Southeast Asia’s second-biggest economy.

About 6.89 trillion baht ($221 billion) of outstanding Thai debt – or 42% of total lending – has been under relief programmes that include payment deferment and reduction, interest rate reduction and restructuring.

The most significant of these – a government-mandated six month debt payment holiday – ended on Thursday.

The Bank of Thailand has said it does not expect sudden and large defaults, but its former chief Veerathai Santiprabhob, whose term ended last month, warned in August bad debt could jump as the economy slumped.

The country’s biggest distressed debt manager, Bangkok Commercial Asset Management (BK:), told Reuters it will spend 12 billion baht to acquire sour loans with a face value of about 40 billion baht this year.

“We will focus on buying debt this year and next,” Bunyong Visatemongkolchai, the bank’s executive board chairman said, adding it planned to issue 25 billion baht of bonds to fund purchases.

Its shares are up 11% this year, versus a 23% drop for the main stock index ().

Easy credit for consumers and businesses for years have prompted many warnings about the dangers of the household debt malaise in Thailand. Those are now proving prescient as the pandemic batters businesses, leaving as many as three million people without work.

Thai household debt is among Asia’s highest, at 83.8% of GDP as of June, the highest level since 2003, while the central bank predicts the trade and tourism-dependent economy could shrink by a record 7.8% this year.

Months of protests against the government and the monarchy could further slow a recovery for the economy.

For a graphic on Thailand’s economy and tourism:

https://fingfx.thomsonreuters.com/gfx/mkt/xlbvgjmjepq/Pasted%20image%201601392642559.png

Thailand’s non-performing loans amounted to 509 billion baht as of June, a nine-year high of 3.09% of total lending, versus 2.98% at the end of 2019. Loans with a significant increase in credit risk hit 7.48% of lending, up from 2.79% at the end of last year.

Banks prefer keeping distressed assets in house to avoid expensive write-downs, but sometimes see no option but to sell.

For a graphic on Bad loans at Thai banks:

https://fingfx.thomsonreuters.com/gfx/mkt/xlbpgjmlevq/Pasted%20image%201601390972890.png

“We will sell debt of businesses that have no potential,” said Atipat Asawachinda, first senior vice president of Kasikornbank (BK:), which plans to offload 10 billion baht of bad debt this year.

JMT Network Services (BK:), the biggest buyer of distressed consumer loans, will spend a record 6 billion baht buying debt this year, CEO Sutthirak Traichira-aporn said.

“The amount of debt being sold in the market is so great that we don’t have time to choose,” he said, noting it had acquired debt with a face value of 12 billion baht at an average 84% discount in the first half.

JMT’s shares have surged 66% this year.

Sutthirak said relief measures had only delayed the souring of loans, likening them to holding water behind a dam, “If there is too much, it will break out”.





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European Stocks Fall; German Sentiment Weakens as Virus Cases Mount By Investing.com

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© Reuters.

By Peter Nurse 

Investing.com – European stock markets sold off Thursday, as investors fretted about the lack of progress in the talks over a new U.S. stimulus package, fell and the region’s earnings season continued apace.

At 3:40 AM ET (0740 GMT), the in Germany traded 1.1% lower, the in France fell 1%, while the U.K.’s index dropped 0.7%.

Optimism surrounding the potential for a new coronavirus relief package dissipated late Wednesday after President Donald Trump accused Democrats of being unwilling to come to an acceptable compromise over the size of the package. 

Meanwhile, the second wave of European Covid-19 cases is weighing on German consumer confidence, according to market-research group GfK, its forward-looking fell to minus 3.1 points in November from a revised minus 1.7 points in October.

Around three-quarters of consumers currently assume that Covid-19 poses a major or very major threat, and about half are concerned or very concerned about their personal future, GfK said.

Europe has seen Covid-19 cases climb to a record high, with Spain becoming the first Western European country to exceed one million infections and Italy and Germany setting a record increase in daily cases. Despite that, data from the U.K.. another country with sharply rising infections, suggest that improved hospital treatments have significantly reduced mortality rates in the current wave.

In corporate news, IAG (LON:) stock slumped 5% after the airline group, which owns British Airways, reported a 1.3 billion euro loss in the third quarter, adding that it no longer expects to break even in cash flow terms in the fourth quarter as it cut its capacity outlook for the rest of the year.

Unilever (NYSE:) stock fell 0.4% despite the retailer’s third-quarter underlying sales rising thanks to growth in hand and home hygiene products.

It wasn’t all bad news though. Pernod Ricard (PA:) stock rose 1.3% after the French drinks maker said it expects a return to growth in the second half even as sales fell by 6% during the first quarter of fiscal 2021. Luxury goods group Hermes (PA:) also returned to sales growth in the third quarter in constant exchange rates.

Oil prices rebounded slightly Thursday, after suffering heavy losses during the previous session as official gasoline inventories add to worries about the outlook for fuel demand given the surge in Covid-19 cases.

The U.S. Energy Information Administration reported a of 1.895 million barrels in gasoline supply, against the 1.829 million-barrel draw predicted, suggesting U.S. motorists are increasingly choosing to stay home.

futures traded 0.1% higher at $40.06 a barrel, after dropping 4% Wednesday, while the international benchmark contract rose 0.3% to $41.86, after falling more than 3% the previous session.

Elsewhere, fell 0.4% to $1,922.65/oz, while traded flat at 1.1862.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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