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Money burn halved

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A Delta Air Lines plane lands at Los Angeles International Airport

Mario Tama | Getty Images

Delta Air Lines cut its cash burn in half in the fourth quarter and expects to be profitable this summer. This is a positive forecast after the coronavirus pandemic led the airline into its worst year ever.

Delta posted a net loss of nearly $ 12.39 billion in 2020 – a record and the Atlanta-based airline’s first annual loss since 2009.

Delta posted a net loss of $ 755 million for the fourth quarter compared to a profit of $ 1.1 billion a year earlier. Total revenue decreased 65% from $ 11.44 billion in the fourth quarter of 2019 to $ 3.97 billion. The company’s sales increased $ 441 million from the sale of third-party refineries. Adjusted, Delta posted a loss per share of $ 2.53, compared to analysts’ estimates of a loss of $ 2.50 per share.

However, the airline’s losses and cash consumption are on the decline, and the start of vaccine distribution has sparked optimism that travelers will return to heaven in the coming months.

The Delta share gained 3.5% in midday trading, outperforming the broader market.

The carrier’s cash burn averaged $ 12 million per day for the quarter ended December 31, halving the average cash burn of $ 24 million per day in the third quarter.

The airline will face tough months in the coming months, but is aiming for a recovery in 2021 as Covid vaccines are administered across the country, CEO Ed Bastian said.

“As our challenges continue into 2021, I am optimistic that this will be a year of recovery and a turning point that will result in an even stronger delta return to revenue growth, profitability and free cash generation,” said Bastian.

Delta expects sales for the first quarter of the year to drop 60% to 65% year over year, just as the pandemic began. That’s worse than analysts’ estimates for a 48% year-over-year decline.

The pandemic devastated demand for travel as concerns about the virus, quarantines, travel restrictions and breaks in business travel kept millions of potential customers home. The Transportation Security Administration examined only 324 million travelers last year, up from 824 million in 2019.

Most of the demand is still coming from vacation travel and is likely to remain so in the medium term, Delta executives said on a earnings call Thursday. This is a challenge for Delta as it relied heavily on business travelers prior to the pandemic. A recent survey found that 51% of Delta’s corporate customers believe their business travel will return to 2019 levels by 2023, and 40% said they will return by 2022, according to Bastian. The demand for business travel has increased, dominated by small and medium-sized businesses.

Here’s how Delta performed compared to Wall Street expectations for the quarter, based on average estimates made by Refinitiv:

  • Adjusted earnings per share: a loss of $ 2.53 versus an expected loss of $ 2.50
  • Total revenue: $ 3.97 billion versus expected $ 3.59 billion in revenue

Delta warned that the recovery will take time.

“The early part of the year will be marked by a troubled rebound in demand and a booking curve that remains compressed, followed by a tipping point and finally a sustained rebound in demand as customer confidence builds, vaccinations become widespread and offices reopen.” Delta President Glen Hauenstein said in the earnings release.

Delta announced it closed the fourth quarter with cash of $ 16.7 billion. Delta took on billions in debt last year, including a record $ 9 billion sale supported by the SkyMiles frequent flyer program.

The airline and its rivals are receiving additional federal funding to help weather the crisis. Congress approved additional $ 15 billion in state aid to airlines to pay workers late last year, on top of $ 25 billion in state salary support they received under the March CARES bill.

Subscribe to CNBC Pro to see the full interview with Delta CEO Ed Bastian.

UN warns of main financial harm with out additional motion

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Boat residents inspect flood waters from the Tittabawassee River into the lower part of downtown on May 20, 2020 in Midland, Michigan.

Gregory Shamus | Getty Images

According to the fifth edition of the Adaptation Gap Report of the United Nations Environment Program, governments around the world need to significantly step up climate adaptation policies to avoid significant economic damage from global warming.

In order to avoid the worst effects of climate change, nations must spend half of all global climate finance on adaptation over the next year, according to the report released Thursday. In 2020, the hottest year on record, the world saw record-breaking hurricanes and forest fires that worsen as temperatures rise.

Such engagement would include investing in nature-based solutions to mitigate climate change, e.g. B. Practices such as replanting trees on degraded land, sequestering more carbon in the soil through agricultural practices, and protecting forests through modified deforestation practices.

Almost 75% of nations have adopted some form of climate adaptation. However, according to the report, major funding gaps remain for developing countries, which are most vulnerable to rising temperatures, as well as for projects that have significantly reduced climate risk.

The United Nations estimated that the annual cost of climate adaptation could be anywhere from $ 140 billion to $ 300 billion by the end of the decade and between $ 280 billion and $ 500 billion by 2050, and concluded that global action would go far lag behind.

And while adaptation projects are on the rise, the continued rise in global carbon emissions is putting these projects at risk.

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As part of the Paris Climate Agreement, the global pact concluded five years ago among almost 200 nations, governments are trying to keep global warming well below 2 degrees Celsius or 3.6 degrees Fahrenheit compared to pre-industrial levels.

The world is still on the way for temperatures to rise above 3 degrees Celsius or 5.4 degrees Fahrenheit this century.

The report said that meeting the 2-degree Celsius target could limit economic loss to annual growth of up to 1.6%, compared to 2.2% with 3-degree warming, and the nations urged to update their Paris Agreement targets to include new net zero carbon targets.

“The hard truth is that climate change is ahead of us,” said Inger Andersen, executive director of UNEP, in a statement. “Their impact will be the most amplified and vulnerable countries and communities will be hit hardest – even if we achieve the goals of the Paris Agreement.”

The report also called for governments to prioritize climate change in their recovery plans for Covid-19, including moving away from fossil fuels to investing in green technologies and restoring ecosystems.

According to the International Monetary Fund, the world’s largest economies have allocated more than $ 12 trillion for economies to recover.

Tomorrow may very well be the final probability for some folks to keep away from main tax penalties

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Charday Penn | E + | Getty Images

Small business owners and side gig hustlers face a big tax deadline.

Applicants paying quarterly estimated taxes, including independent contractors and corporate partners, owe their final 2020 payment on January 15th.

Generally, the other deadlines for quarterly taxpayers are April 15th, June 15th, and September 15th.

Last year was exceptional from a tax perspective as the Treasury and IRS moved the due dates for the estimated payments in the first and second quarters to July 15.

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Usually, employees don’t have to worry about quarterly payments. This is because their employers usually withhold income tax from their salary during the year.

Meanwhile, sole proprietorships and other small businesses are responsible for paying their estimated self-employment and income taxes four times a year.

“If you have year-round income, the IRS calculates quarterly what taxes you should have owed,” said Dina Pyron, global tax chat leader at Ernst & Young.

If you miss your payments on time, you will incur underpayment penalties.

Make accurate payments, avoid penalties

Generally, to avoid an underpayment penalty, you must pay at least 90% of tax for the current year or 100% of tax on your tax return for the previous year.

If your adjusted gross income from last year’s return exceeded $ 150,000, you must pay 110% of the tax liability.

Year-end surprises, including commissions and bonuses that can add to your income, can negate these estimates.

Small business owners and many other quarterly taxpayers faced an uphill battle in 2020 as not only did they struggle with falling incomes, but they were still hooked for those quarterly payments.

Some entrepreneurs had to make tough decisions by 2020 to get through.

“If you have a company that has been severely affected by Covid-19, are a sole proprietorship and owe quarterly estimates, you may have to choose between paying the estimate or keeping the cash,” said Dan Herron, CPA and director of Elemental Wealth Advisors in San Luis Obispo, California.

“They are hooked for these quarterly payments but say your payment is $ 4,000,” he said. “What is the opportunity cost for the $ 4,000? Does that mean you’ll stay in business for another month? That’s the choice.”

The Princess Diaries Solid: The place Are the Stars Now?

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Mia Thermopolis will always be one of our favorite princesses.

It’s hard to believe that it’s been almost 20 years since The Princess Diaries first hit the big screen. The family-friendly Disney film sparked a sequel and a large part of the cast is still raving about the special project. Case in point: in May Anne Hathaway honored the director of the film Garry Marshall in an ABC special.

“One of the things I love about Garry is that he was never afraid of the spontaneous moment,” Anne shared during the Happy Days of Garry Marshall. “If it was good, it was in the movie. He didn’t care where it came from, he didn’t care what happened.”

In fact, Anne described a scene with Lilly Moscovitz (Heather Matarazzo) that didn’t exactly follow the script. The actress “never” thought about the scene until it appeared in the film’s trailer six months later. As she recalled, “he kept it because it was a charming moment.”

Patrick Dempsey teases the return to the enchanted sequel

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Patrick Dempsey is ready to become Prince Charming again.

On Thursday, January 14th, during a section on Good Morning America, the Grey’s Anatomy star announced that he was preparing for Disenchanted, the highly anticipated sequel to the 2007 popular film Enchanted.

“I just got this script for the second film,” said the actor, “and then I’ll start taking notes together.”

He also hinted, “There’s talk we’ll be shooting this in the spring,” so fans of all ages have time to re-watch the magical love story on Disney +.

As lovers of romantic comedies may remember, the children’s film is about a fairy tale character named Giselle, played by Amy Adamsto be sent to the magical land of New York City as punishment for an evil queen (Susan Sarandon). There she meets the divorced lawyer and single father (Dempsey) and creates a lot of chaos for him before falling in love and making him believe in love again.

Petco shares soar almost 70% after they return to the general public market

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Signage of Petco Health and Wellness Co. outside the Nasdaq MarketSite during the company’s initial public offering in New York, the United States, on Thursday, January 14, 2021.

Michael Nagle | Bloomberg | Getty Images

Petco Health and Wellness stocks rose more than 60% on their Nasdaq debut Thursday, reflecting Wall Street’s appetite to invest in the industry during the pet boom sparked by the Covid pandemic.

Petco opened at $ 26, 44% above its IPO price, but the shares recently traded at nearly $ 30.

On Wednesday night, the company valued its initial public offering at $ 18 to raise about $ 816.5 million, which was above its expected price target of $ 14-17. It trades under the ticker symbol WOOF.

The San Diego-based pet supplies retailer was founded in 1965. It went public in 1994 but was privatized when its owner changed hands. It has around 1,470 stores in the US and Puerto Rico, including more than 100 veterinary clinics.

Petco’s customer base has grown during the pandemic as more Americans adopt new dogs and cats, or get other animals like lizards and hamsters. The demand for pet supplies and accessories has also increased over the years as owners treat their pets as part of the family. That inspired them to spend more on toys and accessories and switch to fresh or organic food.

As families adopt and care for new pets, they buy supplies from dog beds and crates to leashes. Families who had dogs, cats, fish, or other creatures also tended to spend more as they bought toys or treats to keep their pets and themselves entertained.

But it is also exposed to tougher competition. Online rival Chewy’s stocks are up more than 250% over the past year. The company has a subscription-based model that automatically replenishes pet supplies for owners such as dog food or cat litter. Barkbox, a provider of subscription boxes for dog food, announced last month that it would go public through a merger with a SPAC.

In an interview with CNBC’s Squawk on the Street, CEO Ron Coughlin said the company had a competitive edge over its competitors. He said it is adding veterinary services to more of its stores, which tends to have pet owners buying supplies and groceries while they are there. He said it can use its stores to fulfill online orders. And he said the same day deliveries can beat the competition in terms of speed and price.

Correction: Petco shares are traded on the Nasdaq stock exchange. In a previous version, the replacement was incorrectly specified.

Trump’s $ 200 Medicare drug rebate playing cards will not occur

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FatCamera | E + | Getty Images

The promised $ 200 prescription drug cards for Medicare beneficiaries won’t come.

There is little time before President-elect Joe Biden’s inauguration on Jan. 20, and the Trump administration is withdrawing its plan to send the discount cards to some 39 million Medicare subscribers, an official with the Centers for Medicare & Medicaid Services who confirmed to CNBC. Agency head Seema Verma previously told Business Insider that she did not expect the cards to be sent.

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President Trump first pushed his plan during a campaign speech in Charlotte, North Carolina in late September. The cards have been criticized for their cost ($ 7.9 billion) and their questionable legality.

The White House had announced that it would pay for the cards as part of a Medicare program designed to test innovations in general to lower prices or improve health care.

In this case, the aim was to measure whether the extra money would improve a person’s ability to take medication as prescribed because they could more afford it. Medicare does not have a limit on the cost of prescription drugs under Part D.

However, lower-income beneficiaries are already receiving additional assistance and appear to be excluded from this proposal.

Shay Mitchell’s New 12 months Necessities will enable you to focus in your objectives

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We interviewed this celebrity because we believe you will like her choices. Some of the products shown are from the celebrity’s own line of products or a brand they are paid to support. E! has affiliate relationships, so we may receive a commission if you buy something through our links. Items are sold by the retailer, not E !.

It’s not too late to start healthy in 2021.

While Shay Mitchell ♥ The Pretty Little Liars star has a plate full of multiple companies and a growing 14 month old baby. He makes fitness a priority in the New Year by partnering with Openfit’s Four Weeks of Focus fitness program.

“Four weeks isn’t daunting – it is totally doable and I look forward to getting back into healthier shape with everyone else who has similar goals!” Shay shared exclusively with E! News. “Last year was challenging for me, as it was for most, and when Christmas time came I knew I wanted to set some goals to get back to my fitness routine in the New Year.”

In between, Shay only worked out 30 minutes a day and shared some of the products she loves this year. From cosmetic bags to help you stay organized to disinfectants to keep your devices sterile, the Hollywood star has items to help you focus on your resolutions.

“Start small with achievable goals that you know you can meet,” advised Shay. “Big, sweeping changes don’t always stand the test of time, but being able to make a small shift to hold on to will motivate you to do more.”

Small companies can apply for PPP loans beginning January 11th

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US Small Business Administration Administrator Jovita Carranza speaks as US Treasury Secretary Steven Mnuchin listens to a House Small Business Committee hearing in Washington, DC

Erin Scott | Getty Images

The Paycheck Protection Program will reopen on January 11th. It provides loans to small businesses to no avail and allows certain cash-strapped businesses to borrow a second time, according to the US Small Business Administration.

Congress approved up to $ 284 billion for the small business loan program under the comprehensive Covid Relief Act, which went into effect in late 2020.

That move also included additional small business aid in the form of tax deductibility for expenses covered by PPP, tax credits for businesses that kept their employees on payroll, and made it easier to get loans under $ 150,000.

This time the SBA and the finance department have staggered the reopening.

That means that initially only community financial institutions – including banks and credit unions that lend to low-income communities – will be able to submit PPP loan applications on Jan. 11.

They will offer second PPP loans to qualifying companies starting Jan. 13, the SBA said.

Companies receiving a second infusion of loan proceeds must meet certain qualifications, including no more than 300 employees and a reduction in gross revenue of at least 25% in any quarter between 2019 and 2020.

According to the agency, the program will be reopened to all participating lenders shortly thereafter.

“Today’s guidelines build on the success of the program and adapt to the changing needs of small business owners by providing targeted assistance and an easier forgiveness process to ensure their path to recovery,” said Jovita Carranza, administrator of the SBA.

OPEC is sustaining the demand forecast for 2021 amid fears of the Covid pandemic

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An oil pump jack, also known as a “nodding donkey”, in an oil field near Dyurtyuli in the Republic of Bashkortostan, Russia, on Thursday, November 19, 2020.

Andrey Rudakov | Bloomberg | Getty Images

LONDON – Oil producing group OPEC on Thursday maintained its forecast for global oil demand growth for 2021 unchanged, but warned of uncertainties surrounding the impact of the coronavirus pandemic.

The closely watched oil market report comes as coronavirus cases continue to rise globally and new lockdowns are imposed in Europe and parts of China.

In the past few weeks, optimism about the mass rollout of coronavirus vaccines appears to have been tempered by the resurgent rate of spread of the virus.

This has resulted in oil producers trying to strike a delicate balancing act between supply and demand as factors such as the pace of the pandemic response continue to cloud the outlook.

“Uncertainties remain high going forward. The main downside risks are issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior,” OPEC said Thursday.

“That includes how many countries adjust lockdown measures and for how long. At the same time, faster vaccination schedules and a recovery in consumer confidence are driving up optimism.”

The group of 13 expected that global oil demand in 2021 will increase by 5.9 million barrels per day year-on-year to an average of 95.9 million barrels per day. The forecast remained unchanged from last month’s assessment.

The group said global oil demand growth in 2020 declined by 9.8 million barrels per day year over year to an average of 90 million barrels per day. The group found that the decline in December was slightly less than expected.

OPEC forecasts for 2021 a “healthy recovery of economic activity including industrial production, an improving labor market and higher vehicle sales than in 2020”.

“Accordingly, oil demand is expected to grow steadily this year, largely aided by transportation and industrial fuels,” the group said.

Oil prices “driven by expectations”

OPEC and its non-OPEC allies, an alliance sometimes referred to as OPEC +, cut oil production by a record amount in 2020 to support prices as tough public health measures worldwide came with a shock fuel demand collapsed.

OPEC + initially agreed to cut production by 9.7 million bpd, before the cuts were lowered to 7.7 million and finally further reduced to 7.2 million from January. OPEC king Saudi Arabia has since announced that it will cut production by another 1 million barrels per day in February and March to prevent inventory build-up.

The international reference Brent crude oil futures were trading at $ 55.77 a barrel on Thursday, down 0.5% for the session, while the US West Texas Intermediate (WTI) futures were trading at $ 52.76 and were thus 0.3% lower. Oil prices are currently up for the third year in a row.

“Anyone who has their finger on the pulse of the oil market knows that expectations are currently driving prices rather than immediate realities,” said Tamas Varga, senior analyst at PVM Oil Associates, in a research note.

“Those who disagree are advised to take a quick look at forecasts of oil demand for the first half of 2021 over the past few months and compare those estimates with price developments,” he added.

Before the release of its oil market report on Thursday, OPEC had steadily lowered its forecast for demand growth for 2021.

Other major oil forecasters, including the International Energy Agency and the US Energy Information Administration, have also downgraded their estimates for oil demand growth for 2021 in recent weeks.

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