News headlines from around the web.
Global stocks sink into bear market
By MATT EGAN, CNN Money
Fear has taken over stock markets around the world.
A broad benchmark of global stocks officially slipped into a bear market this week by closing more than 20% below its recent high.
The steep decline for the MSCI All-Country World Index reflects the sense of dread that has crippled risky assets in recent weeks. Investors are nervous about cheap oil prices, the threat of a global recession and the ability of big banks to withstand those powerful forces.
This is How Much Boeing Thinks The South-East Asian Market is Worth
By CLAIRE ZILLMAN, Fortune
Looking for a growth market? How about this: south-east Asia is going to need 3,750 new planes worth $550 billion during the next two decades, according Boeing.
Dinesh Keskar, Boeing’s senior vice president for Asia Pacific and India sales, disclosed those figures on Sunday in the lead-up to the Singapore Airshow, an aviation trade expo that’s held in the commercial and transportation hub every two years. Keskar said that of the expected demand in south-east Asia, 76% will be for single-aisle aircraft like the Boeing 737 and the Airbus A320, according to Reuters.
Air travel within the Asia-Pacific hasn’t grown by less than 6% in any of the last six years, and is expected to grow by 8% this year, according to the International Air Tranport Association, generating a sustained boom for the likes of Boeing and its European rival Airbus NV EADSY 1.27% . In an effort to gain market share, low-cost carriers like Lion Air in Indonesia, AirAsia in Malaysia, and IndiGo in India have ordered hundreds of jets from Airbus and Boeing in the past decade and have taken to replacing them with newer models every three or four years, Keskar said. On Monday, there were reports that Philippines Airlines is close to placing an order for about half a dozen Airbus A350-900 jets worth some $1.8 billion.
Why the big banks really hate ‘Brexit’
By IVANA KOTTASOVA, CNN Money
By the day, analysts at the big banks are trying to out-do each other with scary warnings of Britain exiting the European Union — the so-called ‘Brexit.’
Goldman Sachs (GS) said leaving could cause the pound to crash by as much as 20%. The bank has already poured hundreds of thousands of pounds into the “stay” campaign.
Nomura (NMR) has warned Brexit could even push the U.K. into recession of about 2% from peak to trough.
UBS (UBS) estimated the loss to the British economy would be somewhere between 0.6% and 2.8% of GDP.
Banks are worried about Brexit, because they use Britain as a springboard for their business throughout Europe. Leaving the union could disrupt this link.
Oil extends rally on prospects OPEC could act to counter low prices
By KAROLIN SCHAPS, Reuters
Oil prices rose on Monday, extending a rally triggered last week by speculation that OPEC might agree to cut production to reduce a supply glut that has pushed prices to the lowest in over a decade.
Brent crude futures LCOc1, the global benchmark, were up 46 cents at $33.82 a barrel at 1232 GMT. U.S. futures CLc1 traded at $30.02 a barrel, up 58 cents on Friday’s close. Trade is likely to be thinner than usual on Monday due to the U.S. Presidents Day holiday.