OCEANSIDE, Calif. — The Oceanside company that makes the COVID-19 drug Remdesivir announced Monday the price for the drug moving forward.
Gilead Sciences said a single dose of Remdesivir will cost $…
U.K. Bans Huawei From 5G Network, Raising Tensions With China – The New York Times
Banning the use of the Chinese tech giant’s equipment in high-speed wireless infrastructure is a major reversal by Prime Minister Boris Johnson — and a big victory for the Trump administration.
American sanctions left the U.K. with little choice, said Priya Guha, a former British diplomat who represented the countrys interests in Silicon Valley. There was a bit of checkmate by the U.S.
Huawei spent the past several weeks lobbying against a ban, emphasizing its investments in Britain. Members of Huaweis U.K. advisory board, made up of British business leaders including former BP chief executive John Browne, urged Mr. Johnsons aides to take a more moderate approach. (A few hours before the governments announcement on Tuesday, Huawei said Mr. Browne was leaving the board.)
Many see the Huawei dispute as foreshadowing future conflicts, with other high-profile companies becoming entangled. Secretary of State Mike Pompeo said the United States was considering actions against Chinese apps, including the hugely popular social media service TikTok, which is owned by a Chinese internet company.
Last week, the American tech giants Facebook, Twitter and Google, all already blocked from the censored internet of mainland China, suspended the processing of Hong Kong government requests for user data because of a new national security law that mandates police censorship and digital surveillance. The new law could result in fines, equipment seizures or even arrests of company employees if the requests are denied.
Britains decision to ban Huawei will put pressure on other European countries. In Germany, Chancellor Angela Merkel is being urged to keep the company out of a new 5G network, but is weighing the economic fallout for German automakers, for whom China is a critical market. Australia has issued a ban, and Canada is considering one as well.
If Huawei is stopped in its tracks, that does represent a very important inflection point for Chinas ability to achieve its objectives, said Nigel Inkster, a senior adviser at the International Institute for Strategic Studies in London who has written a book on the technology battle between the United States and China. That would be very consequential.
Mr. Inkster, a former member of the British intelligence service, warned that the West risks provoking China if it feels more economically isolated. There is a serious need to think hard and deeply about whether it is realistic to disengage from China totally in these areas, he said.
Citigroup shares rise after bank reports better-than-expected earnings on strong trading results – CNBC
Citigroup reported second-quarter results that surpassed analyst expectations thanks in part to a massive surge in trading revenue.
Citigroup reported on Tuesday second-quarter results that surpassed analyst expectations thanks in part to a massive surge in trading revenue that helped offset a slowdown in the company’s consumer banking business.
Here’s how the company’s results compared to analyst estimates:
- Earnings: 50 cents per share vs 28 cents per share expected by Refinitiv
- Revenue: $19.77 billion vs $19.12 billion forecast
- Fixed income, currency and commodities trading revenue: $5.6 billion vs $4.86 billion forecast by FactSet
The bank’s stock rose more than 1% in the premarket.
Citigroup’s fixed income trading revenue represents a 68% year over-year surge and accounted for most of the company’s Markets and Securities Services revenues, which rose 48% to $6.9 billion.
Those elevated trading numbers come amid heightened market volatility during the coronavirus pandemic. They also come on the heels of massive monetary stimulus from the Federal Reserve. Equity trading revenue dipped 3% to $770 million, however.
Citigroup’s global consumer banking division struggled during the second quarter, with revenues falling 10% to $7.34 billion on a year-over-year basis. Net credit losses, meanwhile, jumped 12% year over year to $2.2 billion. Ultimately, the company posted net income of $1.32 billion, which represents a 73% drop from the second quarter of 2019.
“While credit costs weighed down our net income, our overall business performance was strong during the quarter, and we have been able to navigate the COVID-19 pandemic reasonably well. The Institutional Clients Group had an exceptional quarter, marked by an increase in Fixed Income of 68%,” CEO Michael Corbat said in a statement.
“With a sharp emphasis on risk management, we are prepared for a variety of scenarios and will continue to operate our institution prudently given this unprecedented situation,” Corbat added.
Citigroup shares are up nearly 12% the last three months through Monday’s close, outperforming peers such as JPMorgan Chase, Wells Fargo and Bank of America. JPMorgan and Bank of America were roughly flat in that time and Wells lost 19.2%.
The bank announced in late June it would maintain its quarterly dividend after passing the Federal Reserve’s annual stress test.
Citigroup’s results Tuesday come in what is expected to be the one of the worst earnings season on Wall Street. Analysts polled by Refinitiv expect S&P 500 earnings to have fallen by 44% on a year-over-year basis.
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Delta Air stock slips after wider-than-expected loss – MarketWatch
Delta Air Lines Inc.
stock fell nearly 1% in Tuesday premarket trading after the airline reported second-quarter losses that were wider than expected. Delta’s net loss was $5.72 billion, or $9.01 per share, after net income of $1.44 billion, or $2.21 per share, last year. Adjusted losses were $4.43 per share. The FactSet consensus was for a loss of $4.16. Revenue totaled $1.47 billion, down from $12.54 billion last year but ahead of the FactSet consensus for $1.39 billion. Passenger revenue for the quarter fell 94% to $678 million, and cargo revenue was down 42% to $108 million. “Given the combined effects of the pandemic and associated financial impact on the global economy, we continue to believe that it will be more than two years before we see a sustainable recovery,” said Delta Chief Executive Ed Bastian in a statement, emphasizing the “staggering impact of the COVID-19 pandemic on our business.” Delta ended the quarter with $15.7 billion in liquidity, and reduced its daily cash burn in June by 70% compared to late March, down to an average of $27 million. And the company has gotten $5.4 billion in grant funds and unsecured loans through the CARES Act, which will be paid in installments through July 2020. Maturities on $1.3 billion in borrowings on revolving credit facilities have been extended to 2022 from 2021. Delta has taken additional sanitation steps in the face of the coronavirus pandemic, has limited load factor at 60% and is blocking off middle seats. The company has provided more than $2.2 billion in cash refunds in 2020. Delta is positioning itself to be a smaller airline over the next couple of years, retiring MD-88 and other planes, and reducing headcount through early retirement and other programs. The company is also accelerating airport construction projects in New York’s LaGuardia Airport, in Los Angeles and other cities. At the end of the quarter, the company had total debt and finance lease obligations of $24.6 billion. Delta took a write down of $1.1 billion on its investment in LATAM Airlines and a write down of $770 million on its investment in AeroMexico after those companies’ losses and bankruptcy filings. The company took a $200 million write down in its investment in Virgin Atlantic, a $200 million charge. Delta stock has fallen 54.1% for the year to date while the Dow Jones Industrial Average is down 8.6% for the period.
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