Headlines

Fisker's Austrian unit filed for bankruptcy protection on Tuesday as the cash-strapped EV startup looks for strategic options after talks with a major automaker for a potential investment collapsed, Reuters reported. The unit, Fisker GmbH, said other divisions are not included in the restructuring process and will continue to operate normally. Fisker has been under pressure since it warned of going concern in February. It faces stiff competition and subdued customer spending in the wake of a tough economy.

Attorneys for Sung Kook “Bill” Hwang are expected to argue that prosecutors are pushing a novel and nonsensical market manipulation theory when the criminal trial of the former Archegos Capital Management boss kicks off in New York this month, Reuters reported. Archegos, a $36 billion family office which invested Hwang's personal wealth, collapsed spectacularly in March 2021 after its highly leveraged bets on a small number of stocks via complex derivatives quickly soured.

Australian budget airline Bonza has canceled all flights through May 14 as lessors seek to seize its planes, Bloomberg News reported. The embattled carrier grounded its fleet on April 29 after the lessors issued termination notices. Hall Chadwick, which has been appointed as administrators to the airline, said Tuesday it has been in discussions with the lessors to see whether the grounded planes could become operational in the short term, but to no avail.

The Bank of England postponed one of its weekly repo operations because its auction platform was experiencing technical difficulties, Bloomberg News reported. Tuesday’s Indexed Long-Term Repo Operation, which was scheduled for 10 a.m. in London, was deferred until the same time on Wednesday due to problems with the Btender auction platform, according to statements from the BOE. A spokesperson at the central bank declined to comment on the cause of the technical issues. The BOE facility allows banks to borrow cash for a six-month period in exchange for other, less liquid assets.

A fraudster in the U.K. who illegally secured a £50,000 Bounce Back Loan designed to support businesses during the Covid pandemic has been handed a suspended sentence, according to a U.K. Insolvency Service press release. Rian O’Keeffe was sentenced to 18 months in prison, suspended for two years, when he appeared at Southwark Crown Court on Tuesday 30 April. O’Keeffe, of Lisgar Terrace, Hammersmith, is also subject to a three-month curfew and must complete 30 days of rehabilitation activity.

Britain’s construction industry expanded at its fastest pace in 14 months in April, adding to confidence the economy is rebounding from a recession, Bloomberg News reported. The construction purchasing managers’ index jumped to 53 in April, up from 50.2 the previous month, S&P Global said Tuesday. It was well above economists’ expectations of 50.4, with any score above 50 signaling growth. It added to signs that the economy kept expanding in the second quarter after a shallow downturn in the final months of last year.

Chile's central bank said in a report on Tuesday that the economy is broadly recovering, though some sectors have lagged and financial market depth has not yet returned to levels seen before the coronavirus pandemic, Reuters reported. The bank pointed to the South American country's commercial, construction and real estate sectors as having fallen behind, which it said had elevated the possibility of defaults. "The external scenario continues to be the main source of risks for local financial stability," according to the bank.

German manufacturing orders fell unexpectedly in March, a reflection that an industrial rebound in Europe’s largest economy might have to wait, the Wall Street Journal reported. Orders were 0.4% lower than the prior month, German statistics office Destatis said Tuesday. It came after orders fell 0.8% in February, a significantly lower figure than the originally reported 0.2% uptick. Over a three-month period, new orders were down 4.3%. Lower orders of aircrafts, ships and trains, as well as of metal products drove down the overall performance.

Thailand’s new Finance Minister Pichai Chunhavajira urged the central bank to support government policies, signaling pressure may continue on the Bank of Thailand to cut interest rates, Bloomberg News reported. “It’s our duty and responsibility for me and BOT (Bank of Thailand) to work together to push both engines - monetary and fiscal policies in the same direction,” Pichai told reporters on Tuesday in his first remarks as finance chief.

Cerberus Capital Management LP plans to expand its private credit portfolio in India as local non-bank finance lenders shift their focus from corporate lending to consumer credit, Bloomberg News reported. There is a “significant opportunity set for private credit lenders, both local and international, to pick up a portion of this space,” Indranil Ghosh, managing director and head of pan-Asia special situations, said in an interview. India is fast emerging as a big market for private credit activity, as global firms deploy billions, lured by the fastest-growing major economy.