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Airlines suspend China flights, cut services on virus fears – 680 News

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British Airways said Wednesday it is halting all flights to China, joining several Asian carriers that are either suspending or significantly cutting back service there as fears spread about a new virus that has killed more than 130 people.

Air India and South Korean budget carrier Seoul Air are also halting all flights to the country, and Indonesia’s Lion Air plans to do the same. Other carriers including Finnair, Hong Kong-based Cathay Pacific, Air India and Singapore-based Jetstar Asia are slashing service.

BA took some of the most decisive action so far, immediately suspending all flights to and from mainland China after the U.K. government warned against unnecessary travel to the country amid a virus outbreak.

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The airline operates daily flights from London’s Heathrow Airport to Shanghai and Beijing. It took the measure a day after Britain’s Foreign Office updated its travel advice on China, warning against “all but essential travel” to the mainland, not including Hong Kong and Macao.

China has cut off access to the central city of Wuhan, epicenter of the outbreak, and 16 other cities to prevent people from leaving and spreading the virus further. That has trapped more than 50 million people in the most far-reaching disease control measures ever imposed. The outbreak has infected more than 6,000 on the mainland and abroad.

Online flight notice boards for the Beijing and Shanghai airports showed numerous cancellations for both domestic and foreign airlines on Wednesday:

—Air Canada said it is cancelling select routes due to a fall in demand. “In response to the coronavirus situation, we are cancelling select flights to China to better match capacity with expected demand,” the airline said in a statement.

—Air Seoul, a budget airline, became the first South Korean airline to suspend its fights to mainland Chinese destinations apart from Wuhan, stopping its flights to the cities of Zhangjiajie and Linyi.

—Indonesia’s Lion Air said it has cancelled more than 50 flights to China well into February. The flights are from five international airports in Manado, Surabaya, Jakarta, Batam and from Denpasar, in Bali, to 15 airports in China. The suspension will be phased in gradually and continue until further notice.

—Hong Kong airlines are cutting the number of their flights to the mainland by about half through the end of March in response to government virus-control efforts.

—Cathay Pacific Group said flights to 24 mainland destinations would be reduced to 240 weekly. The company owns Cathay Pacific Airways , cargo carrier Air Hong Kong, Cathay Dragon and Hong Kong Express.

—Air India is suspending Delhi-Shanghai flights, which operate six times a week, from Friday until Feb. 14.

—Finland’s Finnair, which has actively promoted its position linking Asian and Western destinations, said it was cancelling three weekly flights to Beijing Daxing International Airport through late March, as well as its twice-weekly flights to Nanjing.

—Jetstar Asia will temporarily suspend flights to the Chinese cities of Hefei, Guiyang and Xuzhou starting Thursday through the end of March due to a drop in demand.

—South Korea’s second-largest carrier, Asiana Airlines, will temporarily suspend flights to the Chinese cities of Guilin, Changsha and Haikou starting next month.

—Korean Air, South Korea’s biggest airline, said it is also considering grounding some of its flights to mainland China as passenger demand drops. Korean Air had operated four flights a week to the Chinese city of Wuhan, the epicenter of the outbreak, before suspending them on Jan. 23.

—Taiwan’s Eva Air announced a partial cancellation of flights to and from mainland China for two weeks starting Feb. 2. In addition, the airline also has stopped providing towels, magazines, table clothes, and is limiting use of blankets and pillows on its flights.

—Kazakhstan, which shares a long border with far western China, announced Wednesday that it plans to suspend all flights, train and bus traffic and to halt issuing visas to Chinese nationals. Before the Wednesday’s suspension, there were 24 flights a week from Kazakhstan to China, including a daily flight to Urumqi, the capital of Xinjiang.

—Japan’s JAL said it had not changed its flight plans, while German carrier Lufthansa said it was monitoring the situation “very closely” and would if necessary make changes in consultation with the authorities.

Niniek Karmini and Edna Tarigan in Jakarta, Jan Olsen in Copenhagen, Daria Litvinova in Moscow, Mari Yamaguchi in Tokyo, Tong-hyung Kim in Seoul, Penny Wang in Bangkok and Joe McDonald in Beijing contributed to this report.

British Airways and Asian budget carriers Lion Air and Seoul Air are suspending flights to China as fears spread about the outbreak of a new virus that has killed more than 130 people.

Several other airlines including Finnair, Hong Kong-based Cathay Pacific and Singapore-based Jetstar Asia are reducing the number of flights to the country as demand for travel drops because of the outbreak.

Air Canada said it is cancelling select routes due to a fall in demand.

“In response to the coronavirus situation, we are cancelling select flights to China to better match capacity with expected demand,” the airlines said in a statement.

“Air Canada currently operates 33 flights a week to China and the resulting capacity reduction is relatively small. Those customers who are affected will be notified and provided with alternate travel options.”

British Airways said Wednesday it is immediately suspending all flights to and from mainland China after the U.K. government warned against unnecessary travel to the country amid a virus outbreak.

The airline operates daily flights from London’s Heathrow Airport to Shanghai and Beijing. It took the measure a day after Britain’s Foreign Office updated its travel advice on China, warning against “all but essential travel” to the mainland, not including Hong Kong and Macao.

Air Seoul, a budget airline, became the first South Korean airline to suspend its fights to mainland Chinese destinations that wasn’t Wuhan, stopping its flights to the cities of Zhangjiajie and Linyi.

Lion Air said it has cancelled more than 50 flights to China well into February. The flights are from five international airports in Denpasar, Manado, Surabaya, Jakarta and Batam to 15 airports in China.

Lion Group spokesman Danang Mandala Prihantor said the suspension would be phased in gradually and would continue until further notice.

China has cut off access to Wuhan and 16 other cities to prevent people from leaving and spreading the virus further. The outbreak has infected more than 6,000 on the mainland and abroad.

Hong Kong airlines are cutting the number of their flights to the mainland by about half through the end of March in response to government virus-control efforts.

Cathay Pacific Group said flights to 24 mainland destinations would be reduced to 240 weekly. The company owns Cathay Pacific Airways, Hong Kong Airlines, Cathay Dragon and Hong Kong Express.

Helsinki, Finland-based Finnair, which has actively promoted its position linking Asian and Western destinations, said it was cancelling three weekly flights to Beijing Daxing International Airport through late March, as well as its twice-weekly flights to Nanjing. It will continue operating flights to four other mainland Chinese destinations, including Beijing Capital Airport.

Jetstar Asia said it will temporarily suspend flights to the Chinese cities of Hefei, Guiyang and Xuzhou starting Thursday through the end of March due to a drop in demand.

South Korea’s second-largest carrier, Asiana Airlines, said it will temporarily suspend flights to the Chinese cities of Guilin, Changsha and Haikou starting next month.

Korean Air, South Korea’s biggest airline, said it is also considering grounding some of its flights to mainland China as passenger demand drops. Korean Air had operated four flights a week to the Chinese city of Wuhan, the epicenter of the outbreak, before suspending them on Jan. 23.

Taiwan’s Eva Air announced a partial cancellation of flights to and from mainland China for two weeks starting Feb. 2. In addition, the airline also has stopped providing towels, magazines, table clothes, and is limiting blanket and pillow in flight.

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CIBC profit falls 18% on higher costs, loan-loss provisions; hikes dividend – The Globe and Mail

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Canadian Imperial Bank of Commerce CM-T reported an 18-per-cent drop in fiscal fourth-quarter profit and raised its dividend as the bank was hit by higher expenses and loan loss provisions.

The Toronto-based bank is the fourth major lender to report earnings for the quarter that ended Oct. 31, and the second to fall short of analysts’ profits estimate, along with National Bank of Canada. Royal Bank of Canada and Bank of Nova Scotia both reported earnings that were ahead of expectations.

CIBC earned $1.19-billion, or $1.26 per share, in the fourth quarter. That compared with $1.44-billion, or $1.54 per share, a year earlier.

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The bank’s results included several special charges, including a $91-million increase in legal provisions, a $37-million charge from consolidating its real estate portfolio, and $12-million of costs related to the bank’s acquisition of the credit card portfolio of retailer Costco in Canada.

Adjusted to exclude those items, CIBC said it earned $1.39 per share. That was far shy of analysts’ estimate of $1.72 per share, according to Refinitiv.

CIBC raised its quarterly dividend by two cents to 85 cents per share.

For the full fiscal year, CIBC’s profit fell 3 per cent to $6.2-billion.

In the fourth quarter, CIBC took $436-million of provisions for credit losses – the money banks set aside in case loans go bad. That was a significant increase from a year earlier, with $305-million of that total attributed to the bank’s personal and small business banking operations in Canada.

Some of the increase in provisions came from changes to the bank’s economic forecasts, which are more pessimistic. But CIBC also said it had higher write-offs and impaired balances in its retail portfolio.

Profit from Canadian personal and small business banking fell 21 per cent year over year to $471-million. Higher costs were a major factor, including expenses related to the Costco card portfolio acquisition, as well as higher employee compensation. Loan and deposit balances were up 10 per cent, but profit margins on loans fell five basis points from the previous quarter. (100 basis points equal one percentage point).

“CIBC had a big miss in the quarter and, while some of it related to higher provisions on performing loans, the bank’s domestic net interest margin contraction was disappointing,” said John Aiken, an analyst at Barclays Capital Inc., in a note to clients.

In the bank’s U.S. commercial banking and wealth management division, profit fell 37 per cent from a year ago, mainly driven by higher provisions for loan losses. Impaired loan balances were higher in the real estate and construction sector, as well as in oil and gas.

Profit from Canadian commercial banking and wealth was up modestly to $469-million, and capital markets profit was relatively unchanged year over year at $378-million.

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DoorDash laying off 1,250 people, about 6% of its workforce – CBC News

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DoorDash Inc. said on Wednesday it was cutting about 1,250 jobs, or six per cent of its total workforce, as the food-delivery company looks to keep a lid on costs to cope with a slowdown in demand.

DoorDash went on a hiring spree to cater to a flood of orders from people stuck at home during the height of the pandemic, but a sudden drop in demand from inflation-wary customers has left the company grappling with ballooning costs.

“We were not as rigorous as we should have been in managing our team growth … That’s on me. As a result, operating expenses grew quickly,” chief executive Tony Xu said in a memo to employees that was posted on the company’s website.

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“Given how quickly we hired, our operating expenses — if left unabated — would continue to outgrow our revenue.”

DoorDash has about 20,000 employees worldwide, and “some of the affected employees are based in Canada,” the company told CBC News in a statement, without elaborating.

The company joins a growing list of technology firms, including Amazon, Facebook-owner Meta, Twitter, Shopify and others that have laid off thousands of employees in recent weeks as they brace for a potential economic downturn.

British food delivery company Deliveroo said in late October that sales growth would be at the lower end of its previous forecast. In September, Winnipeg-based food delivery app SkipTheDishes laid off 350 workers.

Earlier this month, DoorDash reported a bigger-than-expected quarterly net loss of $295 million US, raising questions about the growth prospect of delivery firms as economies reopen. The company’s shares have lost two thirds of their value this year.

“Greater emphasis on its cost structure is a welcoming sign, especially given the potential for consumer spending to deteriorate faster than expected,” said Angelo Zino, analyst at CFRA Research.

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'I didn't ever try to commit fraud on anyone,' FTX founder Sam Bankman-Fried says – CBC News

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The man at the centre of collapsed cryptocurrency exchange FTX made his first public appearance since the saga began, telling a New York audience on Wednesday that it was never his intention to commit fraud.

Sam Bankman-Fried, the 30-year-old founder of FTX, appeared at the New York Times’ Dealbook Summit on Wednesday, for an interview with journalist Andrew Ross Sorkin about what happened to cause his cryptocurrency firm to collapse into bankruptcy earlier this month.

The firm, once worth more than $32 billion US, entered bankruptcy protection on Nov. 11 after a whirlwind series of days that saw it go from trying to solve a liquidity crunch by merging with a rival, to having that deal fall apart and succumbing to a run on the bank as traders pulled out $6 billion in funds within three days.

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Filings show the company owes almost $10 billion to various creditors, and at least $1 billion worth of customer deposits are missing. 

Among numerous allegations, customer deposits at FTX appear to have been used as capital and collateral for loans for an investment firm called Alameda affiliated with him — an allegation that amounts to fraud, and one that he pushed back against strongly.

‘Deeply sorry’ 

“I didn’t ever try to commit fraud on anyone,” he told Sorkin, “I didn’t knowingly co-mingle funds.”

While he acknowledged mistakes were made, Bankman-Fried rejected repeated attempts to characterize what happened at his cryptocurrency firm as being in any way malicious or illegal.

“I am deeply sorry about what happened,” he said. “I was excited about the prospects of FTX a month ago, I saw it as a thriving, growing business.”

Bankman-Fried has seen his personal net worth evaporate in the debacle, from more than $26 billion a year ago to “close to nothing” today — and he insisted that he doesn’t have any of the money that has vanished.

“I don’t have any hidden funds here. Everything I have, I am disclosing,” he said. 

“I’m down to one working credit card … [and] hundreds of dollars or something like that, in a bank account.”

WATCH | Former regulator weighs in on FTX debacle: 

Former regulatory executive weighs in on FTX collapse

19 days ago

Duration 4:04

Charley Cooper, a former executive at commodities regulator the CFTC, says the collapse of FTX is a good lesson of the inherent dangers of the cryptocurrency space.

He says, to his knowledge, there are enough funds at FTX to give users their money. But his hands are tied since he no longer has a formal role at the company since it entered bankruptcy proceedings.

“I believe that withdrawals could be opened up today and everyone could be made whole,” he said.

John Jay Ray III, the restructuring expert who has been handling FTX’s bankruptcy proceedings has said in legal filings that Bankman-Fried appears to have treated the company as his “personal fiefdom” and has called the fiasco a “complete failure of corporate controls.”

Bankman-Fried has been active on Twitter since the debacle first started, but his appearance on Wednesday marks his first public appearance since the saga began.

There was speculation he was going to appear in person, but ultimately he appeared via video link from the Bahamas, where he lives.

Legal problems

Sorkin asked Bankman-Fried if he did not appear in person because he is worried about being within the reach of U.S. agencies including the Department of Justice and the Securities and Exchange Commission, both of which are probing what happened at FTX.

Bankman-Fried appeared to side-step that question, remarking instead that, to his knowledge, he can still legally enter the U.S. 

“I’ve seen a lot of the hearings that have been happening [and] would not be surprised if some time I am out there talking about what happened,” he said, adding that he “does not personally think” he has any criminal liability to worry about.

That being said, he said his legal team is “very much not” supportive of his decision to appear at the summit and speak publicly about what happened at FTX. His lawyers advice was “to recede into a hole,” he joked.

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