U.S. lawmakers nearing deal for $32 billion aviation sector bailout
By David Shepardson and Tracy Rucinski WASHINGTON/CHICAGO (Reuters) - U.S.
By David Shepardson and Tracy Rucinski
WASHINGTON/CHICAGO (Reuters) - U.S. lawmakers are nearing agreement on a package of grants for passenger and cargo airlines and contractors worth $32 billion as part of a massive U.S. stimulus and rescue package amid the massive travel demand falloff because of the coronavirus outbreak, three people briefed on the matter said.
The deal is expected to include $25 billion in grants for passenger airlines, $4 billion in grants for cargo carriers and $3 billion for contractors like caterers. All funds would be directed toward payroll costs. The final deal is also expected to include another $29 billion in loans for passenger and cargo airlines. Airlines have warned that without cash grants they could be forced to layoff hundreds of thousands of people as U.S. travel demand has collapsed.
After a Senate Republican version released on Sunday rejected grants and only approved $58 billion in loans, airlines and unions made a forceful push for grants arguing that it was essential to keep workers on the payroll and won the strong backing of House Democrats, which proposed $40 billion in cash grants on Monday.
In a last-ditch effort, airlines offered to keep all workers on board until at least Aug. 31 if they received $25 billion in grants.
Airlines previously agreed to forgo stock buybacks and dividends and limit executive compensation if they won cash grants. It is unclear if Treasury will be able to demand equity as a condition of the assistance.
U.S. airline stocks rose sharply on optimism a deal was near. American Airlines Group Inc
(Reporting by David Shepardson; Editing by Chizu Nomiyama and Sandra Maler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Wall Street Weekahead: Fed meeting looms for stocks as inflation worries collide with 'Goldilocks' markets
By Lewis Krauskopf NEW YORK (Reuters) - Investors will be zeroing in on the Federal Reserve’s monetary policy meeting next week as a "Goldilocks" market environment that has helped lift stocks to record highs and tamed a bond selloff is tested by rising inflation.
CARBIS BAY, England (Reuters) - European Union leaders will threaten British Prime Minister Boris Johnson with a trade war over Northern Ireland, The Times reported on Friday, without citing sources. German Chancellor Angela Merkel and French President Emmanuel Macron will use one-to-one meetings with Johnson on Saturday to demand that Britain honours the terms of the Brexit deal in relation to Northern Ireland, The Times reported
By Herbert Lash and Tom Wilson NEW YORK/LONDON (Reuters) -The dollar rose and key U.S., European and global stock indexes hovered near record highs on Friday as investors embraced the easy monetary policies of major central banks and their message that rising inflation will be transitory.