Industry Update

Adidas is one of the latest companies to send materials to the International Space Station in the name of science. Or, in this particular case, more comfortable footwear .Dozens of pellets made from the same plastic that Adidas (ADDDF) melds into the soles of sneakers will arrive at the International Space Station after SpaceX launched the experiment Friday at 11:50 pm ET from Florida's Cape Canaveral Air Force Station. The pellets were packed among 4,500 pounds of supplies. Over the past decade, NASA has worked with SpaceX to launch thousands of pounds of food, toiletries and other items that sustain the astronauts living aboard the International Space Station , but often packed among the cargo are some brand-name research experiments.

Source: https://edition.cnn.com/2020/03/06/tech/spacex-adidas-shoe-research-space-station-scn/index.html

Swiss-Belhotel International has announced the soft opening of Swiss-Belinn Muscat in Oman - its debut in the sultanate - as it continues to expand across the GCC. Swiss-Belinn Muscat is a contemporary 3-star hotel with 128 rooms, the company said in a statement. Gavin M. Faull, chairman and president of Swiss-Belhotel International, said: “Oman is an exceptional destination and we are thrilled to debut in the sultanate with a unique property like Swiss-Belinn Muscat.

Source: https://www.arabianbusiness.com/travel-hospitality/441714-swiss-belhotel-makes-debut-in-oman-with-muscat-soft-opening

The failure of Europe's biggest regional airline Flybe could be the start of more casualties, analysts predict. On Thursday, a global airline industry body warned the financial hit from coronavirus could reach $113bn (£87bn) this year. The bleak prediction came on the same day UK-based Flybe went into administration. Airline experts are forecasting more failures as passengers cancel flights. Flybe's collapse "will likely be the first of many in 2020," said James Goodall, transport analyst at Redburn.

Source: https://www.bbc.com/news/business-51748139

Bill Gates is stepping down from the boards of Microsoft and Berkshire Hathaway. In a press release Friday, Microsoft announced that its 64-year-old co-founder was leaving its board to "dedicate more time to his philanthropic priorities." "It's been a tremendous honor and privilege to have worked with and learned from Bill over the years," Microsoft CEO Satya Nadella said in a written statement. "Microsoft will continue to benefit from Bill's ongoing technical passion and advice to drive our products and services forward. I am grateful for Bill's friendship and look forward to continuing to work alongside him to realize our mission to empower every person and every organization on the planet to achieve more. “Gates will continue serving as technology adviser to Nadella and other Microsoft leaders, the company said.

Source: https://edition.cnn.com/2020/03/13/business/bill-gates-microsoft-berkshire-boards/index.html

The global coronavirus outbreak means millions of travel and tourism jobs are at risk, says a leading industry body. The World Travel and Tourism Council (WTTC) says up to 50 million jobs could be lost because of the pandemic. Its chief executive, Gloria Guevara, said the outbreak "presents a significant threat to the industry". The news comes after thousands of international flights were cancelled and some insurance firms suspended travel cover for new customers. New figures from the WTTC suggest that the travel sector could shrink by up to 25% in 2020.

Source: https://www.bbc.com/news/business-51852505

UAE's Targeted Economic Support Scheme includes a $13bn aid package for banks in the country through collateralised, zero-interest loans. Three of the biggest Arab economies pledged almost $47 billion in stimulus to limit the economic damage of the coronavirus outbreak, joining a global effort meant to soothe markets and salvage growth. Saudi Arabia’s central bank unveiled a 50-billion riyal ($13.3 billion) package to support private businesses, soon after its counterpart in the United Arab Emirates announced a $100-billion dirham ($27.2 billion) programme to assist its lenders. Egypt said it will allocate 100 billion pounds ($6.4 billion) to combat the coronavirus. Timed before the start of the work week in much of the Middle East on Sunday, policy makers are acting as many of the economies in the region are at risk of paralysis, with most countries shutting tourist attractions, closing schools and universities, and limiting public events. The UAE also stopped issuing visas and halted flights to Iraq, Lebanon, Syria and Turkey.

Source: https://www.arabianbusiness.com/banking-finance/442835-uae-saudi-arabia-unveil-40bn-stimulus-packages-to-fight-crisis

Saudi Aramco is slashing planned spending this year in the first sign that plunging demand and the oil-price war the kingdom unleashed are hitting home. Capital expenditure will be between $25 billion and $30 billion in 2020 and spending plans for next year and beyond are being reviewed, Aramco said. The oil giant is lowering that range from the planned $35 billion to $40 billion announced in its IPO prospectus, and compares with $32.8 billion in 2019. “That was the surprise,” Ahmed Hazem Maher, an analyst at EFG Hermes in Cairo, said of the spending cut. “They’re adding production in a low price environment so their cash flows could be impacted.”

Source: https://www.bloomberg.com/news/articles/2020-03-15/aramco-profit-falls-21-on-lower-oil-cuts-2020-capex-guidance?srnd=premium-middle-east

British Airways is to ground flights 'like never before' and lay off staff in response to the coronavirus. In a memo to staff titled "The Survival of British Airways", boss Alex Cruz warned that job cuts could be "short term, perhaps long term”. The airline industry was facing a "crisis of global proportions" that was worse than that caused by the SARS virus or 9/11. Meanwhile, Ryanair told staff they may be forced to take leave from Monday. An internal memo to Ryanair staff, seen by the BBC, said crew may be allocated to take unpaid leave due to cancelled flights and schedule changes. BA boss Mr. Cruz said: "We can no longer sustain our current level of employment and jobs would be lost - perhaps for a short term, perhaps longer term. “The airline is in talks with unions but gave no further details about the scale of the likely job losses in the video message transcript seen by the BBC.

Source: https://www.bbc.com/news/business-51875271

Mubadala Investment Company and OMV, the oil and gas company headquartered in Vienna, on Thursday signed an agreement that will give OMV a majority stake in Borealis, one of Europe’s leading petrochemical companies. OMV, which currently owns a 36 percent stake in Borealis, will acquire an additional 39 percent from Mubadala. The transaction value amounts to $4.68 billion and represents the biggest acquisition in OMV’s history and the largest transaction ever for Mubadala, state news agency WAM reported.

Source: https://www.arabianbusiness.com/energy/442762-uaes-mubadala-omv-ink-468bn-deal-for-borealis-stake

Wells Fargo, a major US bank, has agreed to pay $3bn (£2.3bn) to resolve a government investigation into its sales practices, including opening millions of fake customer accounts. The bank admitted it had wrongly collected millions of dollars in fees, misused customer information and harmed the credit rating of customers. The settlement comes about four years after the scandal first erupted. It has already forced out two chief executives and led to hefty fines. Since 2018, Wells Fargo has been operating under an order from the US Federal Reserve that limits its growth. Last month, former chief executive John Stumpf agreed to pay $17.5m to settle charges, in a rare example of a bank executive being personally punished for failing to stop misconduct.

Source: https://www.bbc.com/news/business-51594117