Quote:
Originally Posted by Skol
Cathay goes from profit to loss
http://newsimg.bbc.co.uk/media/image...y_afp_226b.jpg Cathay is not alone in having to deal with the impact of surging fuel prices
Hong Kong-based airline Cathay Pacific has reported a half-year loss as a result of higher fuel costs.
The carrier reported a net loss of 663m Hong Kong dollars ($84.95m; £43.4m) in the six months to June, compared with a profit of $HK2.58bn a year earlier.
"Global aviation is making a painful adjustment to the new reality of $100+ oil" said chairman Christopher Pratt.
Many carriers have been hit by rising fuel prices and have reacted by cutting routes and raising fares.
On Tuesday, Spanish airline Iberia reported a half-year loss and Air France-KLM said that second-quarter profits had fallen by 60%. Cathay Pacific said it was cutting costs where it could but that there was a limit to how much could be saved before quality and its brand were compromised. A report by the International Air Travel Association (IATA) issued on Monday said that the situation for the airline industry would get "a lot worse", and that the sector could see losses of $6.1bn (£3bn) this year.
Airlines r a great public service, endorsed by Skol.
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06-08-2008, 11:37 PMtricha
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07-08-2008, 07:39 AMSkol
Update on trichas get-poor-quick Texas Tea shares. Since 16/7.
AZA -18.4%
COE -7%
NZO -9%
OEL -12%
Airline shares.
AIR +15.5%
QAN +7%
VBA +26%
Oil fell overnight to $117.11 -
07-08-2008, 11:07 AMtrichaHey Skol have u got any shares or r u just a blow a... :confused:Quote:
Originally Posted by Skol
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07-08-2008, 11:11 AMtrichaA bit like Phaedrus likes to bag, but does not disclose, gutless really.Quote:
Originally Posted by tricha
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07-08-2008, 12:12 PMSkolYes I do.Quote:
Originally Posted by tricha
ALL, PDN, CRJ, PPX, CFU, NAM
I'm just bagging you because you started the thread and said I had seriously large rocks in my head for making the suggestion that in the case of a reversal in the oil price airlines might be a way of making a dollar.
Here's a contrarian bet-Japan. Will recover before DJIA does. I have some dosh in the BT Japan fund. -
08-08-2008, 09:42 PMtrichaCome on Skol, I asked u to start this thread, u r welcome to it.Quote:
Originally Posted by Skol
Unless oil goes down to $90 a barrell, my way of thinking is they are both basket cases.
If history has anything to do with things, China owe Japan a punch or two ;), so expect no favours. Its great to see u have come out of the closet Skol :)
Japan Economy Probably Shrank as Recession Looms (Update1)
By Jason Clenfield
http://www.bloomberg.com/apps/data?p...d=ivbNvi2u.GRM
http://images.bloomberg.com/r06/news...ge_details.gif
Aug. 8 (Bloomberg) -- Japan's economy probably contracted last quarter, bringing the country to the brink of its first recession in six years, as exports fell and consumers spent less.
Gross domestic product shrank an annualized 2.3 percent in the three months ended June 30, according to the median estimate of 25 economists surveyed by Bloomberg News. The Cabinet Office will release the report on Aug. 13 at 8:50 a.m. in Tokyo.
Prime Minister Yasuo Fukuda, who last week replaced his economic ministers in a bid to boost his popularity, is planning relief measures to help companies and consumers cope with record energy costs. Toyota Motor Corp. yesterday reported the biggest drop in earnings in five years as U.S. sales slumped.
``What you're going to see is a long, slow, modestly painful recession,'' said Robert Feldman, head of economic research at Morgan Stanley in Tokyo. ``It's going to fall heavily on both workers and stock holders who are suffering lower returns as profits come down.''
Exports probably fell 2.4 percent last quarter, robbing Japan of the engine that drove growth over the past six years, according to economists surveyed. Shipments abroad increased every quarter except one since the most recent recession in 2001.
The economy probably shrank 0.6 percent from the first quarter, when it grew 1 percent, about twice the average pace of the expansion that began in 2002. Net exports -- the difference between exports and imports -- subtracted 0.1 percentage point from growth, economists said.
Toyota Cuts Forecast
Toyota, Japan's biggest company, yesterday cut its sales forecast for the year ending March 2009 by 3.5 percent to 8.7 million vehicles. Since June, Toyota has fired 800 workers at a Kyushu-based subsidiary, where the company is cutting production of sport-utility vehicles and Lexus sedans bound for the U.S.
``The Toyota story is totally consistent with the macro data,'' said Kiichi Murashima, chief economist at Nikko Citigroup Ltd. in Tokyo. ``Companies have been quick to get rid of workers in response to slowdowns in some sectors.''
The unemployment rate jumped to 4.1 percent in June from 3.8 percent three months earlier. Wage growth is also slowing.
Summer bonuses at the country's biggest companies, which tend to pay more than their smaller counterparts, dropped this year for the first time since 2002, according to a survey by the Keidanren business lobby.
Bank of Japan
Domestic demand, which includes company and consumer spending, probably accounted for 0.5 percentage point of the economy's quarter-on-quarter contraction. The figures for household spending will probably exaggerate the decline from the first quarter, when the leap year gave consumers an extra shopping day in February, economists said.
The government yesterday said the economy is ``weakening'' for the first time since 2001. The worsening economy and the fastest inflation in a decade will compel the Bank of Japan to keep its benchmark interest rate at 0.5 percent for the rest of the year at least, according to economists surveyed last month.
Still, analysts say the current slowdown is unlikely to be as severe as past recessions because the corporate sector is better able to handle higher costs and weakening U.S. demand. Businesses have trimmed excess debt, workers and capacity, Economic and Fiscal Policy Minister Kaoru Yosano said yesterday.
``Most of the measures suggest that things aren't as good as they were 12 months ago, but it's nothing like 2001, 1998, or 1993,'' said Richard Jerram, chief Japan economist at Macquarie Securities Ltd. in Tokyo.
Capital Investment
Companies plan to increase capital investment by 4.1 percent in the year ending March, according to a survey released this week by the Tokyo-based Development Bank of Japan. While that's slower than last fiscal year's 7.7 percent, it's better than the 10 percent decline recorded during the 2001 recession.
The Bank of Japan's most recent business survey showed that labor demand is close to a 16-year high. The jobs-to-applicants ratio was at 0.91 in June, meaning almost every person who wants a job can get one. During the previous recession seven years ago, there were two applicants competing for every position.
``When you say recession, it triggers images of 1998 or 1993,'' Jerram said. ``You're having a period of sub-par growth, but it's not the sort of downturn we saw three times during the previous 15 years.''
To contact the reporter on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net
Last Updated: August 8, 2008 00:03 EDT -
09-08-2008, 03:38 PMSkol
tricha, let me quote you.
"Unless oil goes down to $90 a barrel they're both basket cases".
I think you're onto it, and here's me thinking you're a bit dim for hanging on to those death defying oil shares.
Japan's been in the doldrums for years and hasn't got anywhere near the problem the rest of the world's facing with massive personal debt, property slumps, bankruptcies, mortgage defaults, etc. It's not the beginning of the end of the recession in the West, its not even the end of the beginning.
Oil will continue it's nosedive because the demand destruction will be more or less permanent. Yen and Japanese market will recover first.
Japan still the world's second biggest economy. -
09-08-2008, 03:43 PMshastaI tend to agree Skol, Japan will recover before the US etc...Quote:
Originally Posted by Skol
So are you after Japanese airlines? :D -
09-08-2008, 04:22 PMSkolActually I don't own any airlines, probably should do with POO the way it is.Quote:
Originally Posted by shasta
I remember very vividly watching the TV in LA during the Congressional hearings into the Enron collapse. Jeffery Skilling and Ken Lay implored the staff to load up on shares even as those scumbags unloaded millions of dollars of theirs. ($60m in the case of Skilling I believe). So when Enron collapsed employees not only lost their jobs they lost their savings as well.
Since I work in the airline industry I don't own shares in the airlines. (Unless I come across some real good inside info)
www.youtube.com/watch?v=FOdWxf1tRmI -
09-08-2008, 04:34 PMshastaI was being a tad cheeky to be fair, am watching your airline competition v oilers with interest.Quote:
Originally Posted by Skol
I picked $105/bbl in the POO comp ;)