JPost : Israeli scientists say vaccine to be tested on humans by June 1

JPost : Israeli scientists say vaccine to be tested on humans by June 1
MIGAL and IIBR are both testing potential COVID-19 vaccinations on mammals

A team of Israeli researchers says that they are days away from completing the production of the active component of a coronavirus vaccine that could be tested on humans as early as June 1.
“We are in the final stages and within a few days we will hold the proteins – the active component of the vaccine,” Dr. Chen Katz, group leader of MIGAL’s biotechnology group, told The Jerusalem Post.

In late February, MIGAL [The Galilee Research Institute] committed to completing production of its vaccine within three weeks and having it on the market in 90 days. Katz said they were slightly delayed because it took longer than expected to receive the genetic construct that they ordered from China due to the airways being closed and it having to be rerouted.
As a reminder, for the past four years, researchers at MIGAL scientists have been developing a vaccine against infectious bronchitis virus (IBV), which causes a bronchial disease affecting poultry. The effectiveness of the vaccine has been proven in preclinical trials carried out at the Veterinary Institute.
“Our basic concept was to develop the technology and not specifically a vaccine for this kind or that kind of virus,” said Katz. “The scientific framework for the vaccine is based on a new protein expression vector, which forms and secretes a chimeric soluble protein that delivers the viral antigen into mucosal tissues by self-activated endocytosis, causing the body to form antibodies against the virus.”
Endocytosis is a cellular process in which substances are brought into a cell by surrounding the material with cell membrane, forming a vesicle containing the ingested material.
In preclinical trials, the team demonstrated that the oral vaccination induces high levels of specific anti-IBV antibodies, Katz said.

“Let’s call it pure luck,” he said. “We decided to choose coronavirus as a model for our system just as a proof of concept for our technology.”
But after scientists sequenced the DNA of the novel coronavirus causing the current worldwide outbreak, the MIGAL researchers examined it and found that the poultry coronavirus has high genetic similarity to the human one, and that it uses the same infection mechanism, which increased the likelihood of achieving an effective human vaccine in a very short period of time, Katz said.
To ensure they come close to the deadline they set for themselves, MIGAL is concurrently working with the relevant regulators to ensure the product will be considered safe for human trials. He explained that because it will be an oral vaccine, “the quality of this kind of vaccine should be closer to food regulations than pharma regulations or somewhere in between. We hope that we will not need to go through the complete purification process like in the drug industry, because that could delay us.”
The group also started trials on mice to support their previous trials on chickens.
Katz said phase I human trials would be conducted on “young, healthy individuals” and then would likely expand to the general population. The group, which is funded in part by an NIS 30 million grant from the Science and Technology Ministry, is in touch with the Health Ministry, he said, and noted that “technology wise, people wise we have all we need in Israel.” He believes the vaccine will first be available in the Jewish state
In February, Science and Technology Minister Ofer Akunis said he had instructed his ministry’s director-general to fast-track all approval processes with the goal of bringing the human vaccine to market as quickly as possible. On Wednesday, a representative from his ministry said it would not be directly involved in the regulatory process.
According to Katz, close to 100 research teams around the world are currently focused on developing a vaccine or treatment for the novel virus, including several in Israel.
In fact, on Tuesday, another company, the Israel Institute for Biological Research (IIBR), told Reuters that it had begun testing a COVID-19 vaccine prototype on rodents at its biochemical defense laboratory.
Prime Minister Benjamin Netanyahu ordered the IIBR, in rural Ness Ziona, to join the fight against the coronavirus pandemic on February 1, prompting an easing of its secrecy as it cooperates with civilian scientists and private firms.
In a statement, Netanyahu's office said IIBR director Shmuel Shapira had informed him of "significant progress" in designing a vaccine prototype and that the institute "is now preparing a model for commencing an animal trial."
A source familiar with IIBR activities told Reuters that trials were already under way on rodents. The source declined to identify the kind of rodent.
In rare public comments, IIBR chief innovation officer Eran Zahavy said last week that the institute had shifted its entire focus to the new coronavirus, with three groups trying to develop a vaccine against the COVID-19 disease it causes, and others researching potential treatments.
"We are trying as much as we can to collaborate and have other ideas of other people," he said at last week's English-language online conference hosted by Jerusalem Venture Partners.
"But the facility of the lab is very crowded and very busy and very dangerous, so it has to be very slow and very cautious."
Zahavy described arranging an animal test subject as "a very big challenge" because "this disease is not affecting animals."
Shapiro added that many experiments that are successful in animals are not always successful when tested on human test subjects.
"It's not enough only to detect neutralizing antibodies in the animal. You really want to see them getting sick and getting better by this vaccine," he said.

>>> Europe : Brokers Upgrades & Downgrades - 2nd of April 2020

>>> Up
* Aena Raised to Buy at MainFirst; PT 120 euros
* Atrium Ljungberg Raised to Hold at Handelsbanken; PT 150 kronor
* Big Yellow Group Raised to Buy at Jefferies; PT 1,164 pence
* British Land Raised to Hold at Jefferies; PT 365 pence
* Capital & Counties Raised to Hold at Jefferies; PT 172 pence
* Castellum Raised to Hold at Handelsbanken; PT 165 kronor
* Derwent London Raised to Buy at Jefferies; PT 3,958 pence
* DS Smith Raised to Buy at Jefferies; PT 325 pence
* Empiric Student Raised to Buy at Jefferies; PT 79 pence
* Evonik Raised to Buy at Baader Helvea; PT 26.50 euros
* Gecina Raised to Buy at Jefferies; PT 140 euros
* Grainger Raised to Buy at Jefferies; PT 300 pence
* Great Portland Raised to Buy at Jefferies; PT 790 pence
* Hexagon Raised to Buy at DNB Markets; PT 490 kronor
* Hikma Raised to Overweight at JPMorgan; PT 2,400 pence
* InterContinental Hotels Raised to Buy at Deutsche Bank
* John Mattson Fastighetsforetagen Raised to Buy at Handelsbanken
* Land Sec. Raised to Buy at Jefferies; PT 640 pence
* LondonMetric Raised to Buy at Jefferies; PT 204 pence
* Primary Health Raised to Buy at Jefferies; PT 179 pence
* Proximus Raised to Equal-Weight at Barclays; PT 19 euros
* Safestore Raised to Buy at Jefferies; PT 750 pence
* Sbanken Raised to Buy at Pareto Securities; PT 65 kroner
* Segro Raised to Buy at Jefferies; PT 878 pence
* Shaftesbury Raised to Hold at Jefferies; PT 598 pence
* Unilever Raised to Equal-Weight at Barclays; PT 4,420 pence
* Unite Group Raised to Buy at Jefferies; PT 932 pence
* Workspace Raised to Hold at Jefferies; PT 745 pence
* XXL Raised to Buy at ABG; PT 15 kroner

>>> Down
* Adapteo Cut to Sell at Handelsbanken; PT 80 kronor
* Air France-KLM Cut to Sell at MainFirst; PT 2 euros
* Bravida Cut to Hold at SEB Equities; PT 70 kronor
* Edenred Cut to Equal-Weight at Barclays; PT 40 euros
* Equinor Cut to Hold at SEB Equities; PT 140 kroner
* Fraport Cut to Hold at MainFirst; PT 40 euros
* Intrum Cut to Sell at Handelsbanken; PT 120 kronor
* Klovern Raised to Hold at Handelsbanken; PT 14 kronor
* Lufthansa Cut to Sell at MainFirst; PT 6.50 euros
* Naturgy PT Cut to 13.50 euros from 16.80 euros at Citi
* NH Hotel Cut to Hold at Deutsche Bank; PT 4.04 euros
* Schoeller-Bleckmann Cut to Hold at Deutsche Bank; PT 30 euros
* Zurich Airport Cut to Sell at MainFirst; PT 90 Swiss francs

>>> PT Change


>>> Initiation
* Bechtle Rated New Hold at Jefferies; PT 122 euros
* Cancom Rated New Buy at Jefferies; PT 58 euros
* Ilika Reinstated Buy at Liberum; PT 50 pence
* Nestle Reinstated Overweight at Morgan Stanley
* S&T Rated New Buy at Jefferies; PT 26 euros

>>> Call
* European Insurance Sell-Off With Banks Is Unfair, RBC Says
* U.K. REIT Over-Valuations Purged, Jefferies Closes Sector Short
* Packaging Supports Essential Sectors, DS Smith to Buy: Jefferies

>>> What to look at today - 2nd of April 2020

Stocks in Asia pared losses and U.S. equity futures rose as investors showed tentative signs of edging back into riskier assets while continuing to assess the economic impact of efforts to contain the coronavirus.
Japan declined with more modest losses in Hong Kong, while equities rose in Korea and China. Australia underperformed. Futures on the S&P 500 advanced following another session of steep declines. In the latest virus developments, fatalities rose in France and Spain, while Italy and Germany moved to extend lockdown measures and Florida ordered people to stay home. New York Governor Andrew Cuomo said a model showed the Covid-19 outbreak may not peak in the state until the end of April.
US After Hours PVH +6.1% up on earnings; SHOP -5.5% suspends FY20 guidance

Nikkei -1.21% Hang Seng -0.03% CSI +0.47% Shanghai +0.54% Shenzen +0.72%

Eur$ 1.0945 CNH 7.1165 CNY 7.1026 JPY 107.29 GBP 1.2411 CHF 0.9672 RUB 77.6612 TRY 6.6681 WTI$ 21.74 +7.04%

S&P +1.47% Nasdaq +1.33% EuroQtoxx +0.53% FTSE +0.06% Dax +0.46% SMI -0.19%

Macro :
- Scholz Demands 200 Billion Euros for EU Fight Against Corona: HB
- Italy Joins Germany in Prolonging Lockdown to Quell Outbreak
- Almost 10% of S&P 500 Firms Withdrew Forecasts: Guidance Tracker
- Many New York Coronavirus Patients Are Young, Surprising Doctors

Keep an eye on :
- AALB NA : Aalberts to Reduce Capex, Start Additional Cost Reductions
- AF FP ; France Defers Some Airline Taxes, Fees to Boost Cash Positions
- BAKKA NO : Bakkafrost 1Q Harvest Faroe Islands 10,700 Tons HOG Equivalents
- BAC US : BofA CEO Sees Economy Bouncing Back After Health Crisis Resolved
- EN FP : Bouygues Withdraws Year Guidance for Construction, TF1 and Group
- IAG LN : British Airways Expected to Suspend Around 36,000 Staff: BBC
- BULTEN SS : Bulten AB CFO Helena Wennerstrom to Resign
- COFA FP : Coface to Propose Paying No Dividend for 2019
- COM GY : Comdirect Withdraws Proposed Dividend Amid Virus Crisis
- CBK GY : Commerzbank Seeks to Cut EU500m More in Costs: WirtschaftsWoche
- ACA FP : Credit Agricole Cancels Planned Dividend; May Make 2H Payment
- CRTO US : Criteo Prelim First Quarter Revenue Ex-TAC Misses Estimates
- CYDY US : CytoDyn Jumps on Approval to Treat Severe Covid-19 Cases
- DAI GY : Daimler Board Members Agree to Pay Cuts Amid Coronavirus
- AM FP : Dassault Aviation Withdraws 2020 Guidance, Scraps Planned Div.
- DSY FP : Dassault Systemes Cuts First Quarter Non-IFRS Rev Ex-fx View
- DSY FP : Dassault License, Services Sales to Decelerate Through 1H: React
- DTE GY : Deutsche Telekom Ponders European M&A After $26.5 Billion Deal
- DIE BB : Belgian March Car Registrations Plunge 48%; D’Ieteren Has 24.4%
- EBK GY : Germany’s EnBW Hires Former Sonatrach LNG Trader
- EDP PL : Portugal’s Erse Approves Reduction in Regulated Power Tariff
- EBS AV : Erste Group Suspends 2020 Financial Guidance on Corona
- ENGI FP : Engie Withdraws 2020 Guidance, Cancels Dividend for 2019
- FCT IM : Fincantieri Full Year Revenue Misses Lowest Estimate
- FDJ GY : FDJ Gets EU380M Syndicated Loan to Pay Lottery Rights
- FI-N SW : Georg Fischer to Shut Some Plants in Europe Due to Covid-19
- KBU GY : Galeria Karstadt Kaufhof Seeks Insolvency Proceedings: WiWo
- GLJ GY : Grenke 1Q Leasing New Business Volume EU681.3 Mln, +1.6% Y/y
- HLE GY : Hella Nine Month Sales EU4.85 Bln, -6.2% Y/y
- ICAD FP : Icade Lowers Proposed Div. on Coronavirus in Response to Govt
- IDIA SW : Idorsia Proposes Mathieu Simon as Chairman, Capital Increase
- LHA GY : Lufthansa Reaches German Wage Support Deal With Pilot Union
- MC FP : LVMH-Backed Fund L Catterton Invests in Japan Cosmetic Co. Etvos
- MELE BB : Melexis Sees 1Q Rev. at High End of Guidance Range; No Final Div
- MERY FP : Mercialys to Cut Proposed 2019 Div to €0.95 From €1.15/Shr
- MBTN SW : Meyer Burger Introduces State Wage Support for Swiss Sites
- ML FP : Michelin Cuts Proposed 2019 Div to €2 From €3.85
- MITRA BB : Mithra Says Recruitment in Donesta Phase 3 Studies Delayed
- COX FP ; Nicox’s Partner Fera Files FDA Application for Naproxcinod
- NMC LN : Abu Dhabi Commercial Bank Exposure to NMC Health at $981 Million
- NOVN SW : Novartis Says Sandoz US Generic Oral Solids Sale Terminated
- NOS PL : NOS Agrees to Sell International Carrier Services Unit to iBasis
- PSON LN : Pearson Has Headroom; Looking at Options to ‘Maximize Liquidity’
- RNO FP : Nissan Europe Unit Says Supplier Payments Were Delayed
- RKET GY : Rocket Internet Full Year Net EU280.0 Mln
- GLE FP : SocGen Won’t Use Short-Time Working, Defer Tax During Crisis
- SW FP : Sodexo Plans EU30m Program for Lay-Offs Due to Site Closures
- SMHN GY : Suess MicroTec Sees 2020 Ebit Margin 2.5% To 3.5%
- TFP FP : TechnipFMC Slashes Budget by a Third After Oil-Price Crash
- TOM NO : Tomra Systems to Resolve Dividends for 2019 at Later Stage
- UTDI GY : United Internet Launches Share Buyback Program for up to EU150m
- VIE FP : Veolia Suspends FY Targets, Halves Proposed Div. on Coronavirus
-VOW" GY : Merkel, Auto Executives Explore Ways to Restart Assembly Lines

>>> US After Hours Summary: PVH +6.1% up on earnings; SHOP -5.5% suspe

After Hours Summary: PVH +6.1% up on earnings; SHOP -5.5% suspends FY20 guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: PVH +6.1% (beats by $0.07, beats on revs, does not provide guidance, suspends dividend), NG +2.5%

Companies trading higher in after hours in reaction to news: CHS +19.8% (to place a majority of it employees on furlough), FTI +9.8% (announces actions to address current market conditions), EIGR +6.3% (provides update on clinical development operations during COVID-19 pandemic), RRTS +5.2% (sells its dry van business unit), ARNC +4.4% (to join S&P SmallCap 600), BUD +3.1% (gets regulatory approval to sell its Australian subsidiary), AAL +2% (discloses borrowings under revolving facilities), BKNG +1.1% (CEO Glenn Fogel tests positive for the COVID-19 ), SITE +0.5% (announces actions to increase financial flexibility), MUR +0.4% (cuts dividend in half; also reduces 2020 capital plan), AMZN +0.2% (Verge report that Prime Video now allows in-app rentals and purchases on iPhone, iPad, and Apple TV)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NVTA -11.2% (withdraws 2020 guidance), SHOP -5.5% (suspends FY20 guidance; sees Q1 "within or ahead of" previously issued guidance range), NVRO -4.7% (downside rev guidance for Q1, withdraws FY20 guidance, also announces stock offering), CXW -3.4% (withdraws FY20 financial guidance; confirms Q1 guidance), CSII -1.2% (withdraws 2020 guidance), ASND -1.1%

Companies trading lower in after hours in reaction to news: NVTA -11.2% ($125 mln stock offering), PCAR -1.4% (extends suspension of truck and engine production), ASTE -1.1% (provides COVID-19 update; continues to manufacture)

>>> US Close Dow -4.44% S&P -4.41% Nasdaq -4.41% Russell -7.03% VIX 57.18 +6.8%

Closing Stock Market Summary

The stock market retreated more than 4% to start the second quarter on Wednesday, as President Trump warned that the next two weeks will be "very painful" in terms of coronavirus fatalities. The S&P 500 (-4.4%), Dow Jones Industrial Average (-4.4%), and Nasdaq Composite (-4.4%) each fell 4.4%. The Russell 2000 underperformed with a 7.1% decline. 

The coronavirus task force on Tuesday estimated that deaths attributed to COVID-19 could total 100,000-240,000 in the U.S. with daily deaths projected to peak in two weeks. To help contain the outbreak, and hopefully bring these figures down, Florida, Nevada, and Pennsylvania joined the growing list of states to issue 'stay at home' orders for 30 days. 

Original assumptions made by the medical community were based on the data coming out of China, which the U.S. intelligence community said underrepresented the real number of cases and deaths in the country, according to Bloomberg. The White House's projections, based on new data being released every day, had the market worried about the social and psychological effects on the economy. 

In turn, no S&P 500 sector was spared in today's sell-off with ten sectors losing at least 3.0%, including 6.1% declines in the real estate and utilities sectors. The consumer staples sector performed relatively better with a 1.8% decline. 

Economic data for March showed the manufacturing sector contract and private-sector hiring decline, as expected, due to the coronavirus. Many market participants, however, expect the data to worsen with Boston Fed President Rosengren expecting unemployment to increase "dramatically."

In the oil market, The Wall Street Journal reported that President Trump will meet with the CEOs of some of the largest U.S. oil companies on Friday to discuss how the government can help the industry. WTI crude spiked on the news before settling down 1.0%, or $0.20, to $20.32/bbl. 

Separately, tucked behind the macro headlines was Xerox (XRX 17.60, -1.34, -7.1%) withdrawing its offer to acquire HP Inc (HPQ 14.84, -2.52, -14.5%), Marriott (MAR 69.15, -5.66, -7.6%) disclosing a data breach that affected 5.2 million customers, and Macy's (M 4.43, -0.48, -9.8%) being removed from the S&P 500.

U.S. Treasuries finished mixed with longer-dated Treasuries advancing in a safe-haven bid. The 2-yr yield increased two basis points to 0.22%, while the 10-yr yield declined six basis points to 0.64%. The U.S. Dollar Index rose 0.5% to 99.50. 

Reviewing Wednesday's economic data:

  • The ISM Manufacturing Index for March registered a reading of 49.1% (consensus 43.3%), down from 50.1% in February. The dividing line between expansion and contraction is 50.0%.
    • The key takeaway for some will be that the number wasn't as bad as feared, but lost in that takeaway is the fact that the overall index was supported by a sizable uptick in the supplier deliveries index (to 65.0% from 57.3%), which reflects slower delivery times that are a byproduct of the COVID-19 response that has disrupted supply networks. Translation: the March number is not as encouraging as it seems at first blush.
  • Total construction spending declined 1.3% m/m in February (consensus +0.5%) on the heels of an upwardly revised 2.8% increase (from +1.8%) in January. Residential spending was down 0.6% m/m while nonresidential spending declined 1.6% m/m.
    • The key takeaway from the report is that it is relatively meaningless for a market that is pre-occupied with the economic view ahead due to the shutdown measures that started to hit home in March to deal with containing the spread of COVID-19.
  • The ADP Employment Change report pointed to a net loss of 27,000 nonfarm payrolls in March (consensus -175,000) while the February reading was revised down to 179,000 from 183,000.
  • The weekly MBA Mortgage Applications Index increased 15.3% following a 29.4% drop in the prior week.

Looking ahead, investors will receive the weekly Initial Claims and Continuing Claims report, the Trade Balance report for February, and the Factory Orders report for February on Thursday.

  • Nasdaq Composite: -18.0%
  • S&P 500: -23.5%
  • Dow Jones Industrial Average: -26.6%
  • Russell 2000: -35.8

FT : Carnival increases size of rescue bond sale to $4bn

Carnival increases size of rescue bond sale to $4bn
Orders for debt package at world’s biggest cruise operator smash $10bn

Carnival Corporation is increasing the size of a rescue bond sale backed by its cruise ships to $4bn after drawing strong demand, even as the world’s largest cruise operator warned it might only have enough cash to stay afloat for eight months.

The Panama-incorporated company launched a $6bn fundraising package on Tuesday, tapping debt and equity investors for liquidity after coronavirus killed passengers on several of its cruise ships and had a severe impact on future bookings. 

Having initially sought to raise $3bn in three-year bonds secured on the majority of its ships, Carnival announced on Wednesday that it was raising this to $4bn. Two investors said that the deal had already received more than $10bn of orders. 

However the price Carnival is paying is steep. The group will offer investors an annual coupon of about 12 per cent, equating to nearly $500m in interest costs a year, and will issue the bonds at a slight discount to face value. 

While the debt carries an investment-grade rating and will be backed by cruise vessels and other assets that Carnival says are worth more than $28bn, this interest rate is more normally associated with companies in the lowest reaches of the junk bond market.

“This is a high investment-grade company that is now borrowing at usury rates,” said John McClain, a portfolio manager at Diamond Hill Capital Management. “Things have changed quickly. If you are borrowing at 12 per cent then you are fairly desperate.”

The cruise ship operator has also set out plans to raise $1.75bn of bonds that can convert into shares and $1.25bn in newly issued stock, although two investors said on Wednesday that they expected Carnival to cut back the size of the equity offering to $750m. Carnival did not immediately respond to a request for comment. 

In a memorandum to bond investors Carnival issued a series of stark warnings about its ability to withstand an unprecedented international shutdown of the cruise industry.

“We have never previously experienced a complete cessation of our cruising operations, and as a consequence, our ability to be predictive regarding the impact of such a cessation on our brands and future prospects is uncertain,” the document said. 

The original $6bn funding plan would have given Carnival about $9.5bn of cash on its balance sheet, although the size of the overall deal might now be higher. 

However, the bond document says that this is only sufficient to fund its “liquidity requirements over the next eight months” — until the end of November — as the company needs about $1bn of cash a month.

While investors have been drawn to the bond sale due to its collateral, which includes 86 of Carnival’s 105 cruise ships, the document warns that the market value of the fleet has been “adversely affected” by the shutdown in the cruise industry and that the market for used vessels is “small”.

Carnival is turning to investors for funding as it is unclear whether it will be able to benefit from the $2tn US stimulus deal signed last week. Even though the group has its headquarters in Florida and pays US tax, it is incorporated in Panama, which may impede government support.

Carnival said on Tuesday that although “on the surface” it appeared that the company would not be able to apply for it there were aspects of the package that “require further investigation”.

FT : Rolls-Royce and Airbus lobby UK over Virgin Atlantic bailout

Rolls-Royce and Airbus lobby UK over Virgin Atlantic bailout
Airline is seeking a £500m package of commercial loans and guarantees

Two of the world’s biggest aerospace manufacturers are lobbying the government on behalf of Virgin Atlantic as the airline seeks a £500m bailout package of commercial loans and guarantees to survive the fallout from the coronavirus pandemic. 

Rolls-Royce and Airbus have sent letters to Grant Shapps, the transport secretary, highlighting the importance of Virgin Atlantic to the UK’s manufacturing supply chain. Heathrow Airport is also understood to have sent a letter to the government on behalf of the airline. 

It comes as the airline on Tuesday made its submission to the government for a package of financial support of about £500m, according to a person familiar with the matter.

In the letters, seen by the Financial Times, Warren East, chief executive at Rolls-Royce, wrote on Wednesday that “Virgin’s business is of significant importance to Rolls-Royce, our extensive UK supply chain, and manufacturing operations.” 

Meanwhile, John Harrison, general counsel at Airbus and a board member, warned that Virgin’s collapse could have an “extremely negative impact” on the manufacturer’s A330 aircraft programme, which has its wings designed and manufactured in the UK. 

In a letter sent on Tuesday, Mr Harrison wrote: “I hope that the government will do all it can to support Virgin in these extremely difficult times so that it can continue to provide choice to its consumers and support the important work done in the regions by Airbus and its suppliers.”

The UK chancellor last week warned the cash-strapped aviation industry it would not offer an industry-wide bailout to airlines and airports. Instead the government expects the industry to explore options to bolster cash before asking for state aid, which would be considered on a case-by-case basis. 

Richard Branson, the billionaire founder of the carrier, has already pledged to inject $250m into the Virgin Group — a portion of which will go to the airline. 

Talks between the government and Virgin Atlantic are expected to start later this week. Virgin Atlantic is asking for about £500m, which will come from a split of commercial loans to cover fixed-costs over the coming months, such as ticket refunds and airport parking charges. The remainder will come in the form of a credit guarantee that would stop credit card companies from holding back passenger revenues for future bookings from the airline, which has hit its liquidity further. 

The sum will help the carrier get through the coming months, according to a person familiar with the matter. 

But ministers are acutely anxious about the political ramifications of giving targeted help to either Virgin or easyJet, even though they have not ruled out doing so. 

“There are obvious reasons why Virgin and easyJet aren't the first in our wishlist of companies to help,” said one government figure. “There are the perennial questions over Richard Branson's tax affairs and then there's the fact that Stelios (Haji-Ioannou) took that massive dividend. I'm not saying it's impossible but the optics aren't great.”

By contrast the Treasury is more relaxed about giving help to regional operators such as Loganair — which has also signalled that it will ask for state aid — that provide essential connections to remote areas of the country.

NY Post : Renaissance Technologies hedge fund takes 17 percent hit due to coron

Renaissance Technologies hedge fund takes 17 percent hit due to coronavirus



The hedge fund empire founded by billionaire Jim Simons has taken a bit of a beating as the coronavirus pandemic rattles stocks, The Post has learned.

As of Friday, two funds run by Simons’ Renaissance Technologies hedge fund firm posted double-digit losses for the year, sources said.

The Renaissance Institutional Equities Fund was down 17 percent as of Friday — compared to a 24 percent drop in the Dow Jones industrial average — while the Renaissance Institutional Diversified Alpha lost 13 percent in the same period, sources said.

Simons, 82, was a mathematician when he founded RenTech in 1982 and is still revered on Wall Street for the Medallion fund, which is open only to current and former employees and has reportedly boasted double-digit annual returns, net of fees, for decades.

He retired in 2010 but still profits from the funds and is worth an estimated $21.6 billion. It’s an arrangement that regularly places Simon on Institutional Investor’s list of richest hedge fund managers, including its 2019 list released last week.