Fed Fiscal Flag, Euro-Zone Incentives, U.K. Crisis Plan: Eco Day

AA Plc To Progress Talks With TowerBrook Capital, Warburg Regarding Possible Offer

AA plc (AA.L) confirmed that it has consented to a request from TowerBrook Capital Partners (U.K.) LLP and Warburg Pincus International LLC to explore the possibility of a consortium offer for the entire issued and to be issued share capital of the company. AA plc also confirmed that, by mutual agreement, discussions with Centerbridge Partners Europe, LLP and Platinum Equity Advisors LLC in relation to a possible offer for the company have now been terminated.

The company confirmed its intention to publish its interim results in respect of the six months ended 31 July 2020 on 29 September 2020.

Cineworld issues warning over future after £1.3bn loss

Cineworld raised doubts over its ability to survive a second lockdown as it reported a £1.3bn loss for the first half of the year because of the Covid-19 crisis.

The cinema chain’s pre-tax loss for the six months to June compares with profits of £110m a year earlier and follows the forced closure of its 778 cinemas worldwide earlier this year on the back of the pandemic.

It said admissions have been growing since it reopened sites in the UK and the US in recent weeks, thanks in part to local films and the release of the blockbuster movie Tenet. Cineworld also reported “steady performance” across sites in the rest of the world. It has reopened 561 of its cinemas.

However, the firm said its financial future may be in doubt if authorities introduce further restrictions to combat the next wave of the virus.

“There can be no certainty as to the future impact of Covid-19 on the group,” Cineworld said in a statement. “If governments were to strengthen restrictions on social gathering, which may therefore oblige us to close our estate again or further push back movie releases, it would have a negative impact on our financial performance and likely require the need to raise additional liquidity.”

Cineworld said the pandemic posed challenges for the industry’s recovery that “represent uncertainties with respect to the group’s ability to continue as a going concern”.

Oil Little Changed As Demand Worries Linger

Oil prices were little changed on Thursday, with a firmer dollar and concerns about slowing U.S. economic recovery denting sentiment.

Benchmark Brent crude held steady at $41.81 barrel, while U.S. crude futures were marginally lower at $39.92 a barrel.

Both benchmarks rose modestly on Wednesday after data showed a drop in U.S. crude inventories last week.

Data released by U.S. Energy Information Administration showed crude inventories in the country fell by 1.6 million barrels last week. The drop, however, was less than what markets had expected.

Gasoline stockpiles fell by about 4 million barrels last week, while distillate stockpiles showed a drawdown of 3.4 million barrels.

Growth worries resurfaced after several Fed officials said more stimulus from Congress is needed to keep the U.S. economic recovery on track.

The U.S. economy is recovering very robustly, but we’re still in a deep hole, said Fed Vice Chairman Richard Clarida in an interview Wednesday.

Federal Reserve Bank of Cleveland President Loretta Mester said the recovery remains narrow and isn’t sustainable.

Federal Reserve Chair Jerome Powell noted that despite progress in rebounding from the coronavirus economic downturn, “there is a long way to go.”

Speculation is rife that the U.S. Congress would not agree extra fiscal stimulus to counter the ongoing Covid-19 crisis in the run up to the November election.

Greek says no date yet on when exploratory talks with Turkey will start

ATHENS (Reuters) – Greece’s government spokesman said on Tursday no date had yet been set for exploratory talks with Turkey to begin.

“Right now we do not have a date,” Stelios Petsas told reporters. “The content will be the demarcation of matitime zones, EEZ (exclusive economic zone) and the continental shelf.”

Greece and Turkey have agreed to resume exploratory talks over their contested maritime claims in the eastern Mediterranean after a four year hiatus following weeks of tensions.

Accenture plc Q4 adjusted earnings Miss Estimates

Accenture plc (ACN) revealed earnings for its fourth quarter that climbed from last year.

The company’s earnings totaled $1.29 billion, or $1.99 per share. This compares with $1.13 billion, or $1.74 per share, in last year’s fourth quarter.

Excluding items, Accenture plc reported adjusted earnings of $1.12 billion or $1.70 per share for the period.

Analysts had expected the company to earn $1.73 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 2.0% to $10.84 billion from $11.06 billion last year.

Accenture plc earnings at a glance:

-Analysts Estimate: $1.73
-Revenue (Q4): $10.84 Bln vs. $11.06 Bln last year.

-Guidance:
Next quarter revenue guidance: $11.15 – $11.55 Bln

Fed Fiscal Flag, Euro-Zone Incentives, U.K. Crisis Plan: Eco Day

Welcome to Thursday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • Federal Reserve Chairman Jerome Powell is testifying in the Senate today. Yesterday, he continued towave the fiscal flag carefully at a congressional hearing, saying that more support was likely to be necessary
    • U.S. state and local governments needadditional help from Washington to cope with the fallout from the coronavirus crisis, but not nearly as much as the roughly $900-billion sought by Democrats in the House of Representatives
    • The Fed’s run-hot inflation approach ismaking waves in some corners