North America

Mexican airline Aeromexico on Tuesday posted a net loss of $130.38 million in the third quarter under the strain of the coronavirus pandemic, yet said passenger demand had begun to revive, Reuters reported. The drag on profits was considerably narrower than in the prior quarter, when Aeromexico posted a net loss of $1.19 billion.

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Canadians are experiencing the economic effects of COVID-19 very differently — and it largely depends on how vulnerable they were prior to the pandemic, a new poll suggests, Global News reported. The youngest people in the workforce — those in Generation Z  — appear to be struggling the most, according to the poll, which was commissioned by insolvency firm MNP. Nearly 70 per cent are $200 or less away from insolvency, which includes 39 per cent who are already insolvent, meaning their financial resources aren’t enough to cover their current obligations.

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It may be little surprise the pandemic has infected Canadians with more stress over debt, but a new survey offers the eye-openers that people fear the stigma of mental illness more than poverty and business failure, and young people are more afraid than their elders, the Financial Post reported. With Mental Illness Awareness Week being marked in Canada next week, almost three quarters of the 1,510 respondents polled Sept. 23-25 in the Angus Reid Forum by insolvency company Bromwich+Smith said mental illness carries the heaviest stigma.

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Mexico’s finance ministry and banking regulator extended tools to allow banks and financial intermediaries to restructure loans and other credits to clients, senior officials said Wednesday, in the government’s latest push to help an ailing economy, Reuters reported. The measures will extend until next year several temporary rules designed to avoid defaults and loss of collateral, in what Finance Minister Arturo said was a recognition that the economy will remain fragile for some time.

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In an attempt to help its battered economy recover from the impact of the coronavirus pandemic, Mexico’s central bank said on Tuesday that it has extended measures designed to strengthen credit channels and provide liquidity in the financial system, Reuters reported. Banxico said liquidity facilities first announced in April will be extended until the end of February 2021, while a government securities repurchase window is being increased by a further 50 billion pesos ($2.37 billion). So far, Banxico said, the measures have been successful.

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Bonds sold to finance a $13 billion airport in Mexico City that was ultimately scrapped are among the region’s worst performers as investors question the revenue stream that backs them, Bloomberg News reported. Notes due in 2047 from the Mexico City Airport Trust had a volatile first half and are now poised for their fourth straight weekly decline. Their drop to 86 cents on the dollar from above par at the beginning of the year is the seventh-worst performance in the Bloomberg Barclays Latin America Bond Index. The notes have a tumultuous history.

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Mexico’s finance ministry is considering extending relaxed banking credit rules to help its battered economy recover, a top official said on Wednesday, after it presented an austere 2021 budget that leaves little room to maneuver, Reuters reported. Deputy Finance Minister Gabriel Yorio said the ministry was in talks with the banking industry and the central bank about the possible extension until next year of the temporary measures designed to avoid defaults and loss of collateral.

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Factories across Europe, Asia and North America continued to shake off the coronavirus gloom in August as the global economy emerged from a downturn triggered by the health crisis, thanks in part to massive fiscal and monetary stimulus programmes, Reuters reported. Surveys showing an expansion in manufacturing activity may reduce pressure on policymakers to take bolder steps to avert a deeper recession. J.P. Morgan’s measure of global manufacturing activity rose to a 21-month high of 51.8 in August from 50.6 in July, the second straight month above the neutral reading of 50.

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Offshore drilling rig contractor Seadrill said on Monday it has proposed to creditors to turn over its stakes in oil services firms Archer and Seadrill Seabras to redeem its outstanding secured notes, Reuters reported. The company controlled by Norwegian-born billionaire John Fredriksen has been in talks with creditors since the end of last year over new debt restructuring. Seadrill said it was approached by a group of noteholders in May about a potential deal, and it responded on Aug.

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