WORLDWIDE : HEADLINES
U.S. public more aware of racial inequality but still rejects reparations: Reuters/Ipsos polling
WASHINGTON – Americans are growing increasingly aware of racial inequality in the United States, but a large majority still oppose the use of one-time payments, known as reparations, to tackle the persistent wealth gap between Black and white citizens.
According to Reuters/Ipsos polls this month, only one in five respondents agreed the United States should use “taxpayer money to pay damages to descendants of enslaved people in the United States.”
Calls are growing from some politicians, academics and economists for such payments to be made to an estimated 40 million African Americans, amid an expanding discussion about race in America. Any federal reparations program could cost trillions of dollars, they estimate.
Supporters say such payments would act as acknowledgement of the value of the forced, unpaid labor that supported the economy of Southern U.S. states until the Civil War ended slavery in 1865, the broken promise of land grants after the war and the burden of the century and a half of legal and de facto segregation that followed.
Full Coverage : REUTERS
WORLDWIDE : BUSINESS
Bain Capital agrees with Virgin Australia administrator to buy struggling airline
SYDNEY – U.S. private equity group Bain Capital said on Friday it has agreed with the administrator of Virgin Australia Holdings Ltd (VAH.AX) to buy Australia’s second-biggest airline for an undisclosed sum.
Bain’s bid was chosen over a rival offer from Cyrus Capital Partners and a recaptalisation proposal put forward by Virgin Australia bondholders, administrator Deloitte said.
Deloitte said it was not yet possible to estimate the return to creditors and did not expect any return to shareholders. An update on the return will be provided ahead of a creditor’s meeting in August, it said.
The deal will need to be approved by 50% of creditors by value and 50% by number to be finalised.
Bain is using private equity as well as its distressed and special situation funds for the deal, according to Deloitte, which said the deal provided a “significant” injection of capital into the airline to help recapitalise and position it for the future.
Full Coverage : REUTERS
Oil prices creep up on demand recovery, tempered by virus outbreaks
MELBOURNE – Oil prices rose on Friday, extending gains from the previous day on optimism about recovering fuel demand worldwide, despite a surge in coronavirus infections in some U.S. states and indications of a revival in U.S. crude production.
U.S. West Texas Intermediate (WTI) crude CLc1 futures gained 42 cents, or 1.1%, to $39.14 at 0150 GMT but were on track for a slight drop for the week.
Brent crude LCOc1 futures similarly rose 1.1%, or 47 cents, to $41.52, but were also heading towards a small decline for the week.
Overall, commodities markets were taking a positive view on the global recovery on Friday despite worries about coronavirus flare-ups, said Michael McCarthy, chief market strategist at CMC Markets.
“It does appear the market is ignoring supply and demand fundamentals and moving on sentiment,” he said.
Full Coverage : REUTERS
BOJ’s Kuroda warns second-round effect of COVID-19 may dent economic growth
TOKYO – Bank of Japan (BOJ) Governor Haruhiko Kuroda said second-round effects of the coronavirus pandemic could hurt the Japanese economy “considerably”, signalling the bank’s readiness to ramp up stimulus measures again to cushion any blow from the crisis.
But in an online seminar on Friday Kuroda said the central bank saw no immediate need to cut interest rates, and instead will focus on easing corporate funding strains and stabilising markets with its lending facility and asset purchases.
“Japan’s economy has been in an extremely severe situation … In the second quarter, we’ll likely see considerable negative growth,” Kuroda said.
“At this moment, we didn’t see the need to further lower the entire yield curve. Of course, if necessary we will do that. But now, we don’t think it’s necessary,” he said.
The BOJ eased policy in March and April, mainly by boosting asset buying and creating lending schemes to channel funds to companies hit by the pandemic. It has kept its interest-rate targets unchanged.
Full Coverage : REUTERS
WORLDWIDE : TECHNOLOGY
U.S. lawmakers unveil bid to boost domestic chipmaking industry
WASHINGTON – A bipartisan group of lawmakers on Thursday introduced a measure aimed at strengthening chip manufacturing in the United States, adding to efforts to champion the sector and lure high tech supply chains back into the United States.
The measure, backed by top Senate Democrat Chuck Schumer and key Republican Tom Cotton, would offer $15 billion in federal grants to states to build, expand or modernize domestic semiconductor manufacturing and R&D facilities.
It would also authorize $5 billion in federal dollars towards public-private projects to build or modernize fabs that produce “measurably secure and specialized microelectronics” for use by the federal government as well as for critical infrastructure.
An additional $5 billion would be allocated as grants to federal agencies to foment research and development in the sector.
The measure was offered as an amendment to the National Defense Authorization Act, which authorizes U.S. military spending but is used as a vehicle for a broad range of policy matters as it has passed annually for more than 50 years.
Full Coverage : REUTERS
