Asian shares up after Wall St closes best quarter since 1998
UNDATED (AP) — Asian shares were mostly higher today after Wall Street capped its best quarter since 1998, shrugging off continued signs of global economic damage from the coronavirus pandemic.
Japan’s benchmark Nikkei 225 slipped 1.0% and South Korea’s Kospi inched up 0.1%. Australia’s S&P ASX 200 gained 0.3%. The Shanghai Composite rose 0.6%, while trading was closed in Hong Kong for a holiday. Shares rose in Taiwan and were mixed in Southeast Asia.
Yesterday on Wall Street, the S&P 500 climbed 1.5%, bringing its gain for the quarter to nearly 20%. It gained 47.05 points to 3,100.29. The Dow Jones Industrial Average rose 0.9% to 25,812.88. The Nasdaq composite climbed 1.9%, to 10,058.77.
Report: Boeing fell short in disclosing key changes to Max
A government watchdog says Boeing didn’t give regulators documents about changes it made in a key system blamed in two crashes of its 737 Max jet.
The Transportation Department’s inspector general says government experts responsible for approving the plane didn’t know how powerful the flight-control system was. In both crashes, the system, called MCAS, pushed the nose of the plane down and pilots couldn’t regain control.
The crashes killed 346 people and led regulators around the world to ground every Boeing 737 Max — nearly 400 of them. This week, Boeing and the FAA are testing changes Boeing has made in the plane.
Bank of Japan shows sentiments lowest in more than a decade
TOKYO (AP) — Japanese manufacturers’ sentiments have plunged to the lowest level in more than a decade. That’s according to a quarterly Bank of Japan survey released Wednesday. The coronavirus pandemic is crushing exports and tourism, the mainstays of the nation’s economy.
The headline measure for the “tankan,” tracking sentiment among large manufacturers, fell to minus 34 for April-June, the lowest since 2009, from minus 8 the previous quarter.
The tankan measures corporate sentiment by subtracting the number of companies saying business conditions are negative from those responding they are positive. That measure has declined for six quarters straight.
China reopens but businesses struggle to lure back consumers
BEIJING (AP) — China’s economy has reopened but retailers, restaurants and other businesses that employ millions of people are struggling to lure back consumers who worry about the virus and possible job losses. That raises questions about how fast the economy can generate new jobs for people who have lost theirs.
China was the first economy to reopen after the pandemic. But it faces a bumpy road to recovery.
Demand for exports is weak. Relations with Washington have soured further over a security law imposed on Hong Kong. China’s constrained recovery is sobering for countries that are struggling to manage their own viral outbreaks.
Fauci, CDC chief raise concerns about full airline flights
WASHINGTON (AP) — The government’s top experts in infectious diseases on Tuesday criticized American Airlines’ decision to pack flights full while the coronavirus outbreak continues to grow across much of the United States.
Dr. Anthony Fauci told a Senate panel he’s not sure what went into that decision. He said full capacity in the confines of an airplane “becomes even more problematic.”
Several U.S. airlines say they are limiting capacity on planes to between 60% and 67% of all seats. However, United Airlines never promised to leave seats empty, and American said last week that starting Wednesday it would drop its effort to keep half of all middle seats empty.
An American Airlines spokesman says the airline has “multiple layers of protection,” including required face coverings and a pre-flight COVID-19 symptom checklist.
Mexico’s legacy airline Aeromexico files for bankruptcy
MEXICO CITY (AP) — Mexico’s oldest legacy airline, Aeromexico, says it has filed for Chapter 11 restructuring, a form of bankruptcy in which the carrier can keep operating while its debts and obligations are sorted out.
The airline says “this legal process will not interrupt the airline’s operations”and that all tickets, reservations and bonus points would continue to be honored.
Like many airlines, Aeromexico has been squeezed by a decline in travel due to the coronavirus pandemic.
Aeromexico General Director Andrés Conesa said “the COVID-19 pandemic has had an unprecedented impact on the global economy and travel industry.”
Adidas HR head resigns as company addresses diversity issues
NEW YORK (AP) — The head of global human resources at sports apparel and shoe company Adidas resigned Tuesday following criticism from employees of what they see as the company’s failure to diversify its workforce.
Karen Parkin’s resignation comes after a group of Black employees called on Adidas’ supervisory board to investigate her and her strategy for addressing racial issues in the workplace. The employees are also pressing the company based in Germany, to create an anonymous public channel to submit any problems about racism.
The demands from Black employees were reported by The Wall Street Journal in mid- June.
Court: Permit for oil refinery planned near national park OK
BISMARCK, N.D. (AP) — The North Dakota Supreme Court has sided with state regulators in a challenge to an air quality permit for a proposed oil refinery near Theodore Roosevelt National Park in the western part of the state.
In a unanimous opinion, the high court upheld a lower court ruling that affirmed permitting decisions by the Department of Environmental Quality. The department issued an air quality permit to build the facility in June 2018.
CEO William Prentice of Meridian Energy Group, the project developer, called the ruling “very welcome.” Meridian wants to build the Davis Refinery just 3 miles (5 kilometers) from the park that’s the state’s top tourist attraction.
The National Parks Conservation Alliance sued the Department of Environmental Quality and Meridian in July 2018, asking the court to revoke the project’s permit and require the department to revisit the issue.
Regulators deny quick approval of new Great Lakes pipeline
TRAVERSE CITY, Mich. (AP) — A Michigan regulatory panel on Tuesday refused to grant quick permission to run a new oil pipeline beneath a channel that connects two of the Great Lakes, deciding instead to conduct a full review.
The state Public Service Commission’s decision involved a proposed replacement for a segment of Enbridge’s Line 5 that extends beneath the Straits of Mackinac, which links Lakes Huron and Michigan.
The Canadian energy transport company wants to replace dual pipelines that rest on the lake floor with a new pipe that would be placed in a 4-mile-long tunnel to be drilled in bedrock beneath the waterway.
Enbridge said halting its flow even temporarily threatens fuel supplies in those areas, while the state of Michigan and environmental groups contend a major spill would do considerably worse economic damage.
UAW, prosecutor consider a monitor for avoiding corruption
DETROIT (AP) — A federal prosecutor and the United Auto Workers president are looking at using an independent monitor to make sure that a wide-ranging union corruption scandal never happens again.
The monitor was one option discussed during a two-hour meeting Tuesday between UAW President Rory Gamble and Matthew Schneider, the U.S. Attorney in Detroit. The meeting was held as the union tries to reform itself and hold off a possible federal takeover. Ten union officials have pleaded guilty in the scandal, with some spending thousands in union money for golf, lodging and fancy meals.
DOVER, Del. (AP) — Attorneys representing former executives for the only financial institution to be criminally charged in connection with the federal bank bailout program have asked a federal appeals court panel to overturn their convictions.
Defense attorneys argued Tuesday that prosecutors had failed to prove that the former Wilmington Trust executives deliberately lied to federal regulators about the extent of the bank’s past-due commercial real estate loans before Wilmington Trust imploded and was hastily sold in 2011.