World's largest shipping firm says demand will 'significantly decline' this year
- The company reported a 25% rise in second-quarter EBITDA (earnings before interest, tax, depreciation and amortization) to $1.7 billion, outstripping the $1.575 billion expected by analysts.
- Maersk, often seen as a bellwether for global trade, now projects 2020 EBITDA of between $6 billion and $7 billion, up from initial guidance of $5.5 billion.
Maersk, the world's largest shipping firm, beat second-quarter profit expectations on Wednesday and said it expects demand to pick up in the third quarter, but warned of a "significant decline" across the year.
Despite being negatively impacted by a "sharp drop in volumes" in the second quarter, with revenues falling 6.5% from the same period last year as the global economy was brought to a standstill by the coronavirus pandemic, Maersk upped its full-year guidance on Wednesday.
The company reported a 25% rise in second-quarter EBITDA (earnings before interest, tax, depreciation and amortization) to $1.7 billion, outstripping the $1.575 expected by analysts.
Maersk, often seen as a bellwether for global trade, now projects 2020 EBITDA of between $6 billion and $7 billion, up from initial guidance of $5.5 billion.
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Online Shopping Leads Recovery in U.K. Consumer Spending
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U.K. consumer spending jumped the most since 2016 last month, led by a surge in Internet purchases as bars and restaurants continued to suffer.
On-line demand surged 16.2% in July compared with a year earlier, according to a monthly index by Visa and IHS Markit. Total spending rose 2.4%, while hotels, bars and restaurants say an 18% drop.
Household goods, as well as food and beverages continued to see improvement. But the slump in face-to-face spending has already led to store closures and job losses. Retail chainMarks & Spencer Group Plc this week announced that it would reduce headcount by about 7,000, adding to a list of companies that are scaling back operations.
Visa said the spending figures are moving the right direction but it’s “cautious” about the outlook. Unemployment is rising, and the ending of the government’s wage-support program in October could lead to further job losses and weakness in consumer confidence.
“The path to economic recovery remains fragile,” said Annabel Fiddes, an economist at IHS Markit. “The winding down of the government’s furlough scheme is likely to push up unemployment and, combined with weaker pay trends, could hinder any future rises in household consumption.”
Billionaire Arnault's Agache arm to hold 27% of Lagardere holding group
PARIS, Aug 19 (Reuters) – Financiere Agache, a unit of luxury goods group billionaire Bernard Arnault, will buy up a 27% stake in Arnaud Lagardere’s personal holding company LCM, Arnault and Lagardere said in a joint statement on Wednesday.
The partnership between Arnault and Lagardere comes as Lagardere looks to shore up his position amid pressure from activist fund Amber Capital and Vivendi billionaire Vincent Bollore. (Reporting by Sudip Kar-Gupta; editing by Jason Neely)
Commuters face 1.6% increase in season ticket prices next year
Commuters face a 1.6% rise in rail fares next year – under a rule pegging the increase to the latest inflation figure.
The Retail Prices Index (RPI) measure for July is used to cap increases in regulated fares including season tickets on most commuter routes for the following January.
Record High for U.S. Stocks Leaves Rest of the World Far Behind
As the rest of the world woke up Wednesday toall-time highs for U.S. stocks, it would be only natural for a wave of jealousy to accompany theincredulity.
Many global markets, particularly those in Japan and China, remain a long way below their record peaks and for reasons little to do with the coronavirus. While the feeling of envy might be strongest in Shanghai, where stocks are still over 40% down from their 2007 peak, spare a thought for Japan’s beleaguered investors who last saw a record high back in 1989.
The S&P 500 Index climbed 0.2% to close at 3,389.78 on Tuesday, capping the fastest-ever return to a record after a drop of at least 20%, as investors looked past a collapse in the U.S. economy, bought technology shares and focused on the unprecedented fiscal and monetary stimulus from policy makers. Meanwhile, MSCI’s global gauge of stocks excluding those from the U.S. remains 20% off its high, which was reached in 2007.
“Many continue to wonder why stocks are at new highs with 10% unemployment and nearly a million people filing for initial unemployment claims,” said Ryan Detrick, chief investment strategist for LPL Financial LLC. “The truth is economic data is backward looking and stocks are looking ahead to a much brighter future.”
Elon Musk's SpaceX raises $1.9B in funding
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Billionaire Elon Musk's SpaceX has raised $1.9 billion in new funding, according to a regulatory filing on Tuesday.
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This would be the largest single fundraising round to date by SpaceX, according to PitchBook data.
Bloomberg, which reported about the funding round last week, said the private rocket company will have an equity value of $46 billion after the transaction, citing people familiar with the matter.
ELON MUSK BECOMES 4TH RICHEST PERSON IN THE WORLD AFTER HISTORIC STOCK SURGE
The funding comes as SpaceX races to build out its Starlink satellite constellation to offer broadband internet commercially by the end of 2020. The company launched its eleventh batch of satellites on Tuesday, and operates over 600 satellites in low-Earth orbit.
SpaceX's Crew Dragon capsule completed its first two-month mission carrying astronauts for NASA in early August, with plans to start routine crewed missions to the International Space Station in late October.
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(Reporting by Munsif Vengattil in Bengaluru; Additional reporting by Joey Roulette in Washington; Editing by Maju Samuel and Muralikumar Anantharaman)