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LONDON — Growing optimism about a swift global economic recovery pushed equity markets higher on Wednesday, as investors took heart from further easing of lockdowns while looking past China-US tensions and civil unrest across America.

The upbeat mood  —  and hopes for an extension to a massive oil output cut agreement  —  resulted in Brent crude futures breaking the $40-mark for the first time in nearly three months, before profit-taking kicked in.

Governments in Europe and Asia have become confident enough to lift containment measures that have likely pushed the world economy into recession and destroyed tens of millions of jobs.

“The lifting of lockdown restrictions combined with enormous central bank support means investors are shrugging off little things like collapsing GDP and worsening US-China tension,” said Neil Wilson at trading site Markets.com. 

In Europe, the main London, Frankfurt and Paris indices were solidly higher in early afternoon trading.

On Wall Street, the DJIA added more than 200 points at the opening bell.

Earlier, Tokyo and Hong Kong stock markets closed up more than 1 per cent, while Sydney put on 1.8 per cent after data showed the Australian economy contracted at a slower rate than feared in the first quarter  —  though it remains on course for its first recession in nearly 30 years.

More fuel for oil rally 

“For now the good virus news... [is] more than outweighing the bad,” National Australia Bank said in a client note.

However, it warned that there remained a lot of risk that could spark a massive sell-off.

World Bank head David Malpass was also concerned about the outlook, saying estimates that anti-virus measures would wipe out $5 trillion are likely to fall far short of the actual damage.

Oil prices rose in Asian trading on hopes that major producers will meet to extend their output cuts by one month to August, while investors were also cheered by signs of a further drop in US stockpiles indicating demand is improving.

“The most bullish outcome for oil from the meeting is no sign of squabbling between Russia and Saudi Arabia,” whose price war earlier this year helped send prices crashing, said Stephen Innes of AxiCorp.

“Headlines suggest they are on the same page on supply, and that’s bullish for oil in the context of an improving demand backdrop.”

Crude futures cooled in later European deals.

PARIS — France on Tuesday denounced as “blackmail” an ultimatum from low-cost carrier Ryanair for its French employees to choose between a five-year pay cut or a number of redundancies in an escalating labour dispute.

The offer from the Dublin-based no-frills carrier, long accused by critics of abrasive labour tactics, comes as the aviation industry grapples with an unprecedented crisis after the collapse in global demand for air travel due to the coronavirus.

“Blackmail is never an option”, Finance Minister Bruno Le Maire told RTL radio. “Jobs will be protected by imaginative solutions, but definitely not through blackmail,” he said.

The aviation industry is facing drastic losses due to the coronavirus pandemic, which has closed borders across the world and paralysed air transport.

Ryanair has already announced plans to axe 3,000 pilot and cabin crew jobs, or 15 per cent of staff across its European network.

In France, Ryanair operates from hubs including the Marseille, Toulouse and Bordeaux airports.

The Irish company has told French unions to accept plans to cut wages by 20 per cent for pilots and 10 per cent for stewards and air hostesses from July 2020, or face the redundancy of 23 pilots and 27 cabin crew staff.

Under current plans, staffers who are earning minimum wage would see their work time cut by 20 per cent. Employees would progressively regain their salary up until 2025.

Labour Minister Muriel Penicaud said she was “shocked” by Ryanair’s proposal and said the company must go back to the drawing board and “really talk [with employees], but not blackmail”.

Since 2017 companies can open up talks with its employees on contract hours and salaries in exchange of a company’s commitment to suspend dismissals, Penicaud said on TV station BFM Business.

But the spirit of this possibility is “not at all the one being used by Ryanair”, she said.

Ryanair benefited from the state scheme to help companies through the two-month lockdown period by placing staffers on partial unemployment, Penicaud said.

“We helped them and they’re not playing the game,” she added.

The head of France’s biggest trade union CFDT, Laurent Berger, said Ryanair wasn’t showing respect to “its employees, nor workers, nor anyone.”

Berger called for a boycott of the airline. “Let’s stop taking Ryanair to travel,” he said, accusing the company of “pressuring its employees for years.”

DUBAI — It could take up to four years for Emirates airline’s operations to return “to some degree of normality”, its president said on Monday, a day after it announced job cuts over the coronavirus crisis.

The Middle East’s largest carrier, which has a 100,000-strong staff and a fleet of 270 wide-bodied aircraft, halted operations in late March as part of shutdowns to combat the spread of the pandemic.

Two weeks later, the airline resumed limited passenger operations but focused on repatriation flights as large numbers of the United Arab Emirates’ foreign residents returned to their home countries.

Dubai-based Emirates said on Sunday it was cutting its giant workforce but did not specify the extent of the layoffs.

“This is an action we have to take. We just can’t keep our employees doing nothing for so long. So, we have to let some go, unfortunately,” Emirates President Tim Clark told the Arabian Travel Market virtual conference.

“I think probably by the year 22-23, 23-24, we will see things coming back to some degree of normality and Emirates will be operating its network as it was,” he said.

Clark said that Emirates, which reported a bumper 21 per cent rise in annual profits in March, had hoped to resume operations in the second half of May, but conditions did not ease enough to allow it, making it difficult to meet costs.

The long-serving executive, whose retirement flagged for June has been delayed due to the crisis, said that some airlines may disappear in the chaos that has hit the aviation industry.

“I am not optimistic that some of the carriers that are here today, that already have been significantly bailed out, will get through the next few months,” he said, adding that the next six to nine months will be “tough”.

“We have never been in this horrendous situation ... It is a huge structural change to our industry.”

Last week, the International Air Transport Association estimated that global airlines will lose $314 billion in 2020 revenues, a 55 per cent dive from last year.

Clark said that contractual obligations mean that airlines cannot continue to keep their fleets grounded.

“We must get this business back on its feet as quickly as possible,” said the Emirates boss whose own fleet includes 115 Airbus A-380 superjumbos.

But he warned the airline industry is in “a very critical and fragile state”, and that the wearing of masks and gloves and sterilisation programs in the post-pandemic era will signal “a paradigm change”.

PARIS — New car sales in France plunged over 50 per cent in May due to the impact of the coronavirus lockdown, industry figures showed on Monday, but automakers noted the first signs of a recovery in the industry.

All non-essential businesses, including auto dealers, were closed from March 17 to May 11, in a bid to slow the spread of COVID-19.

The measure pushed down auto sales 72 per cent in March and almost 90 per cent in April, reflecting a worldwide trend.

Renault announced on Friday it would cut nearly 15,000 jobs, including 4,600 at its core French operations, to try to steer out of a cash crunch exacerbated by the crisis.

But despite the 50.3 per cent fall in May, the first signs of a recovery have emerged, the French Auto Manufacturers’ Association (CCFA) said.

“We saw a clear recovery at the end of the month, that is to say that the entire distribution and delivery system as well as the orders were unblocked,” said CCFA spokesman Francois Roudier.

“The figure at the start of the month was very low, very close to the previous month, but progressively with the reopening of auto dealers, the deliveries, the distribution and also the orders have recovered,” he told AFP.

But the outlook remains “very unclear for the first time in years”, he said.

For the whole of 2020, the industry sees a drop of between 20 and 30 per cent, but these figures “are to be taken cautiously as we still lack a lot of information”, particularly concerning the recovery, Roudier said.

NEW YORK — Wall Street finished mostly higher on Friday as US President Donald Trump stopped short of threatening tariffs on China, though European stocks tumbled on concerns that mounting tensions between the world's two largest economies could spiral further.

      Trading in US stocks was choppy throughout the session, with major indices sinking into negative territory as a mid-afternoon White House speech by President Donald Trump began.

      Trump harshly criticised China's handling of the coronavirus. He announced new actions including an end to US funding for the World Health Organisation.

       He also ordered probes of Chinese companies listed on American financial markets.

      But Trump made no mention of the "phase one" trade agreement with China that walked back earlier trade tariffs, nor did he threaten new levies on US imports from the country.

      "When (Trump) first started talking, he sounded pretty hawkish, there was an initial knee-jerk selloff," said Briefing.com analyst Patrick O'Hare. "When it became clear he wasn't saying anything about tariffs, there was a snapback rally."

      While the Dow finished narrowly lower, both the S&P 500 and Nasdaq ended solidly higher.

      Many analysts expect Trump to continue to rail against China in the months ahead as he faces a challenging path to re-election in light of COVID-19 and the resulting economic slowdown.

      Gorilla Trades strategist Ken Berman cautioned that "the possible collapse of the 'phase one' (trade deal) poses a risk to the global economic recovery, especially since the exact damage of the virus is still uncertain."

      Earlier, bourses in Paris, Frankfurt and London retreated in anticipation of Trump's speech, which was delivered after European markets closed.

       Renault hits skids 

      Renault was the biggest loser in Paris, with shares crashing by more than seven per cent after the company revealed a radical restructuring plan to save two billion euros ($2.2 billion) over three years.

      The French carmaker plans to axe almost 15,000 jobs, including 4,600 at core operations in France as it seeks to steer out of a cash crunch exacerbated by the coronavirus crisis.

      At the other extreme, Williams-Sonoma surged 14.0 per cent as it reported a surprise profit despite having all its stores shuttered for more than half the quarter, fueled by surging sales of cooking equipment while much of the US was stuck at home under quarantine orders.

      But Williams-Sonoma withdrew its full-year profit forecast, saying that while current trends in its businesses are still strong, there was still uncertainty about the lasting macro-economic drag from coronavirus shutdowns.

NEW YORK — Boeing has resumed production of the 737 MAX at a "low" rate following two deadly crashes that led to the aircraft's global grounding by regulators, the company said on Wednesday.

      The jet hasn't flown commercially since March 2019 and is still a number of key steps away from being cleared for service by the US Federal Aviation Administration and other regulators.

      Boeing said work on the MAX had resumed at the company's Renton, Washington factory as it implements initiatives to enhance workplace safety and product quality.

      "We've been on a continuous journey to evolve our production system and make it even stronger," said Walt Odisho, vice president and general manager of the 737 program.

      The aerospace giant had shut production in January amid uncertainty over when regulators would clear the jet to fly again. 

      Even before the hit from the coronavirus, the MAX crisis had cost Boeing billions of dollars in compensation for airlines and production expenses, including the cost to store more than 400 planes that could not be delivered to customers. 

      Since that time, Boeing's troubles have deepened as its airline customers have been thrust into a fight for survival due to plunging travel demand from coronavirus shutdowns. 

      Earlier Tuesday, Boeing released details on a downsizing plan to cut total headcount by 10 percent, or roughly 16,000 employees in all.

      The company said it approved 5,520 US employees for voluntary layoffs and was notifying another 6,770 staff members that they would be involuntarily let go.

LONDON — Stock markets mostly rose and the dollar advanced on Thursday, gaining traction from optimism over reopening economies and a huge EU coronavirus recovery package, dealers said.

      Asia bounded higher, but Hong Kong failed to maintain early gains as investors fretted over a US decision to revoke the city's special status that could see it lose key privileges, bringing into doubt its future as a global financial hub.

      Meanwhile, another 2.12 million people filed for unemployment in the United States last week, pushing total layoffs since the start of the coronavirus crisis to more than 40 million, a level not seen since the Great Depression, the Labour Department said.

      The new filings, however, showed that the pace of the layoffs was subsiding as the US economy slowly begins to reopen.

      Wall Street stocks inched higher at the opening of trade.

      In European afternoon trading, London stocks climbed 1.4 per cent, with Paris following with a 1.3 per cent gain and Frankfurt with a 0.9 per cent increase.

      Oil markets recovered after slumping on news on Wednesday of a surprising jump in US stockpiles, denting hopes of a pick-up in energy demand in the world's biggest economy.

       Bullish sentiment grows 

      "Stock markets in Europe are showing decent gains ... as the optimism in relation to economies being reopened is doing the rounds," said CMC Markets analyst David Madden.

      "Everybody is painfully aware of the lockdowns, but as they are being loosened, the bullish sentiment keeps growing.

      "The various steps taken to try and return to normal life are small, but they are significant as any progress is welcomed."

      Europe's bourses had vaulted higher on Wednesday after EU leaders unveiled a vast 750-billion-euro ($825-billion) proposal to the European Parliament and member states.

      Markets extended gains on Thursday as investors also looked past building China-US tensions, though worries remain about the uncertain global outlook.

      Hong Kong stocks shed 0.7 per cent after China's parliament endorsed plans to impose a security law on the city, which would punish secession, subversion of state power, terrorism and acts that endanger national security.

      "Beijing has made it very clear that it is not afraid of the US and it is going to do what it thinks is right," noted ThinkMarkets analyst Naeem Aslam.

      "The geopolitical tensions have seriously anchored up, but market players are still not paying much attention to this."

      The US decision over Hong Kong's status is the latest volley in an increasingly acrimonious row between the world's two economic superpowers, with Donald Trump's accusations over Beijing's part in the coronavirus outbreak, Huawei and trade also causing friction.

      Despite the threat of another trade war, investors are focusing on the easing of lockdowns around the world, with communities from Asia to Europe to the US slowly coming out of hibernation.

      Adding to the upbeat mood was news that Disney plans to reopen its Florida theme parks. Trillions of dollars in stimulus and central bank support have also provided dealers with much-needed confidence, including the latest EU stimulus package.

      "This is Europe's moment," EU Commission chief Ursula Von der Leyen said, adding: "We either all go it alone, leaving countries, regions and people behind... or we walk that road together."

SAN FRANCISCO — Google's popular map service on Wednesday added more ways for people to engage with local businesses struggling to survive the economic hit of the coronavirus pandemic.

      The Google Maps enhancements were touted as part of an effort to help small shops and restaurants.

      They come a week after Facebook unveiled free tools for retailers to create online storefronts on the social network and Instagram.

      Google searches for "how to help small businesses" rocketed to an all-time high in March, according to Google Maps senior vice president Jen Fitzpatrick.

      "People across the world are looking for ways to continue supporting corner bookstores; local watering holes; beloved dance studios and other businesses that give their neighborhoods character -- even if it's from a distance," Fitzpatrick said in a blog post.

      New features at Maps include being able to check by name whether local businesses have donation or gift card links at their online profiles.

      In the weeks ahead, Maps will make it possible to use its search tool to find all nearby restaurants asking for financial help to endure the crisis, according to Fitzpatrick.

      Google has protocols to check whether businesses reaching out for support are legitimate operations, the Maps team said.

      In response to financial disruptions caused by the pandemic, Maps recently began allowing merchants in a half-dozen countries to add links to make donations or buy gift cards.

      Google on Wednesday added another 18 countries including Italy, Spain and Japan.

      Maps is also ramping up tools for customers to tune in to online sessions or appointments.

      "Merchants who normally provided in-person services are now pivoting to connect with their customers virtually -- from yoga studios offering online classes to salons hosting virtual hair styling classes," Fitzpatrick said.

      "We're making it easier for customers to discover online classes and book virtual appointments."

      Maps is also expanding the roster of restaurant meal delivery services and working on making it easier for eateries to specify which service they prefer be used, according to Fitzpatrick.

      Other new attributes -- such as whether curbside or "no-contact" pickup, or dining in, are options -- appear in restaurant descriptions in the free navigation service.

      "Today people are deciding where to grab food not only based on the menu, but also on how easy it is to pick up safely," Fitzpatrick said.

      "Some restaurants are even ditching dining areas for good."

      Since March, more than 3 million restaurants have added or edited their dining attributes, according to Fitzpatrick.