Industry Update

The global airline industry is facing huge financial losses and its first decline in more than a decade because of the novel coronavirus outbreak. The International Air Transport Authority (IATA) warned on Thursday that the virus' impact on demand could cost airlines more than $29 billion, with Asian carriers bearing the brunt of the losses. The outbreak will also likely reduce global traffic by 4.7%, wiping out IATA's earlier forecast for growth and marking the first overall decline in demand since the global financial crisis of 2008 - 2009.The coronavirus has killed more than 2,200 people worldwide, with all but 11 of those deaths in mainland China. The total number of infected worldwide stands at over 76,000.

Source: https://edition.cnn.com/2020/02/20/business/iata-airlines-coronavirus/index.html

The global airline industry is facing huge financial losses and its first decline in more than a decade because of the novel coronavirus outbreak. The International Air Transport Authority (IATA) warned on Thursday that the virus' impact on demand could cost airlines more than $29 billion, with Asian carriers bearing the brunt of the losses. The outbreak will also likely reduce global traffic by 4.7%, wiping out IATA's earlier forecast for growth and marking the first overall decline in demand since the global financial crisis of 2008 - 2009.The coronavirus has killed more than 2,200 people worldwide, with all but 11 of those deaths in mainland China. The total number of infected worldwide stands at over 76,000.

Source: https://edition.cnn.com/2020/02/20/business/iata-airlines-coronavirus/index.html

Emirates NBD, Dubai's biggest bank, has launched Autoswap, a first-of-its-kind auto loan buyout product that provides a hassle-free financing solution for individuals seeking to buy used cars. Launched in partnership with Dubizzle, the classifieds platform in the UAE, the Autoswap solution will enable car owners looking to sell their vehicles to complete the transaction without having to settle their existing loans. Sellers with outstanding loans can opt for this solution by using Seller Assist, a premium service offered by dubizzle pro which manages the entire selling process on behalf of the owner to help find the right buyer at the right price. While the second-hand market makes car ownership more accessible, many sellers have an outstanding loan on their current vehicle that has to be cleared before the transfer of ownership can take place.

Source:https://www.arabianbusiness.com/banking-finance/440560-dubai-banking-giant-dubizzle-aim-to-simplify-used-car-buying

Richard Branson unveiled the 'Scarlet Lady', a 60,000 tonne cruise liner complete with a tattoo studio and yoga deck aimed at drawing in a younger generation of holiday-makers. Despite the unfortunate timing, with passengers on one ship quarantined after hundreds caught the coronavirus and another turned away by five countries over fears someone on board may be ill, Branson sees cruises as a growth area. With the Virgin brand already offering everything from airlines to banking, TV, health clubs and travel, he has set his sights on a boutique hotel-style pitch.

Source: https://gulfnews.com/photos/business/richard-branson-unveils-his-luxury-adults-only-cruise-ship-1.1582380979689?slide=3

Petrofac Emirates has been awarded two contracts, together worth around $1.65 billion, from Abu Dhabi National Oil Company (ADNOC). The engineering, procurement, construction, transportation, offshore installation and commissioning contracts are for ADNOC’s Dalma Gas Development Project. The work scope encompasses offshore packages at Arzanah Island and surrounding offshore fields, located around 140km off the north-west coast of Abu Dhabi. The first package, valued at $1.065 billion, is for gas processing facilities at Arzanah Island. For the second package, valued at $591 million, Petrofac is leading a joint venture with SapuraKencana. Under the terms of the 30-month lump-sum contract, the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.

Source; https://www.arabianbusiness.com/energy/440501-petrofac-wins-165bn-deals-for-abu-dhabis-dalma-gas-project

Royal Bank of Scotland (RBS) Group has said it plans to change its name later this year, as it reported a near doubling of annual profits. The Edinburgh-based bank, which owns RBS, NatWest and Ulster Bank, said it would rename itself as NatWest Group. The bank reported profits of £3.1bn for 2019, nearly double the £1.6bn seen the year before. New RBS chief executive Alison Rose called the results the "start of a new era" for the bank. It is thought that Ms. Rose is hoping a rebrand will help shift the lender's image away from its association with the financial crisis. The bank was rescued by the government in 2008 in the aftermath of the financial crisis at a cost of £45bn and it is still 62% state-owned.

Source: https://www.bbc.com/news/business-51500062

Warren Buffett's Berkshire Hathaway disclosed a new stake in Kroger after the closing bell Friday. Shares of the nation's largest supermarket surged 6% on the news. Berkshire Hathaway (BRKB) bought nearly 19 million shares in Kroger (KR) during the fourth quarter, a purchase that makes Berkshire one of the 10 largest holders of the company's stock. The move is an interesting one given that Berkshire also owns a small position in Amazon (AMZN), the online retailing giant that has disrupted the grocery business through its purchase of Whole Foods and food delivery offerings for Amazon Prime customers. Buffett has long been a fan of the retail and food industries.

Source:https://edition.cnn.com/2020/02/14/investing/berkshire-hathaway-warren-buffett-kroger/index.html

Samsung’s new foldable flagship phone completely sold out in the UAE in the first day. The Samsung Galaxy Z Flip, with a starting price of AED 5,499, went on sale on Friday but flew off the shelves before the day was out. The smartphone flips open, like a case, opening into a 6.7-inch screen, and fits in a pocket when folded. Ultrathin glass used for the screen can be folded and unfolded more than 200,000 times and resists scratches, according to Samsung. According to the company, stocks will be renewed and made available by Tuesday across all major retailers, in Samsung brand stores and online at Samsung.com.

Source:https://www.arabianbusiness.com/gadgets/440198-new-samsung-galaxy-z-flip-sells-out-in-day-in-uae

A Saudi Arabia-led investor group is in talks to buy Newcastle United, the Premier League soccer team owned by British billionaire Mike Ashley, for about 340 million pounds ($445 million).Ashley has been struggling to offload the team in recent years and it was unclear whether he would accept the offer, the person said. Saudi Arabia’s Public Investment Fund, Crown Prince Mohammed bin Salman’s key investment vehicle, along with a group of investors led by British financier Amanda Staveley were making the offer, Dow Jones reported earlier

Source: https://www.bloomberg.com/news/articles/2020-01-25/saudi-wealth-fund-in-talks-to-buy-newcastle-united-dow-jones?srnd=premium-middle-east

Tesco is removing plastic wrapping from its multipack tins in an effort to cut down on waste. The supermarket giant says it will remove 350 tonnes of plastic a year from the environment. Britain's biggest supermarket is working with the likes of Heinz and Green Giant to replace plastic-wrapped multipacks with multi-buy deals. Tesco said the move was the first of its kind by a major UK retailer. And environmental group Greenpeace welcomed the decision to get rid of what it called "pointless plastic". The changes start on 2 March when Tesco will stop ordering more plastic-wrapped multipacks.

Source: https://www.bbc.com/news/business-51223214