Halliburton to 'significantly' cut 2020 capex below $1.2 billion budget

(Reuters) - Oilfield services firm Halliburton is accelerating its cost-cutting and will significantly reduce spending this year below its original $1.2 billion budget, its finance chief said on Tuesday. The Houston, Texas-based company did not disclose a new spending target, but is testing scenarios including a 60-65% reduction in some areas of the oilfield services sector, Chief Financial Officer Lance Loeffler told investors on a webcast. He pointed to a reduction to $800 million done during the last downturn that began in late 2014 as a potential target. Crude oil prices have more than halved since the start of the year as the spread of coronavirus slashes demand, and after Russia and Saudi Arabia launched an unanticipated price war. On Tuesday, U.S. crude futures CLc1 were trading at $23.72 a barrel. “The industry is facing an unprecedented dual impact on demand and supply side that none of us have witnessed over our professional lifetimes,” Loeffler told investors.

Halliburton had already been cutting cost by idling equipment and laying off workers. Last week, it said it would furlough 3,500 workers for two months. “All options are being considered,” Loeffler said. He emphasized that Halliburton would focus on returns and free cash flow, rather than slashing prices to gain or hold onto market share, as the company did in the last downturn. He said one reason Halliburton was taking a different strategy this time was because financing from Wall Street had dried up for the oil and gas industry. “There is no more lifeline,” he said. Shares of Halliburton were up 24.4% on Tuesday to $6.52. They are down 72% from the beginning of the year.

https://www.reuters.com/article/us-global-oil-halliburton/halliburton-to-significantly-cut-2020-capex-below-1-2-billion-budget-idUSKBN21B2E9?il=0

Britain in lockdown as virus death toll leaps

LONDON (Reuters) - The United Kingdom went into lockdown on Tuesday as the number of coronavirus deaths jumped and the government called for 250,000 volunteers for the health service, as it announced a temporary hospital would open in London with help from the military. In a TV message on Monday evening watched by more than 27 million people, Prime Minister Boris Johnson ordered people to stay at home, nearly all shops to close and banned social gatherings including weddings and baptisms. However, public transport in London was busy during the morning rush hour, and the streets were far from deserted amid confusion over the government’s advice to workers.

https://www.reuters.com/article/us-health-coronavirus-britain/britain-in-lockdown-as-virus-death-toll-leaps-idUSKBN21B12O?il=0

Boeing CEO does not want U.S. to take stake in company after coronavirus stimulus

Updated 17 minutes ago

(Reuters) - Boeing Co (BA.N) Chief Executive Dave Calhoun said on Tuesday he does not want the U.S. Treasury to take an equity stake in the planemaker as a condition of government loans as credit markets freeze amid the coronavirus pandemic. “I don’t have a need for an equity stake,” Calhoun told Fox Business. “If they force it, we just look at all the other options and we’ve got plenty of them.” Boeing has sought $60 billion in U.S. government loans for itself and the aerospace industry. Congress could reach agreement on a stimulus and rescue package worth up to $2 trillion to respond to the massive economic damage from the coronavirus pandemic as soon as today. “There are a lot of options for us in the private markets etcetera, but the credit markets have to be open,” Calhoun told CNBC, noting that Boeing “has $15 billion in the bank.”

U.S. lawmakers have said they could demand equity, warrants or options as a condition of government loans. “If they attach too many things to do it, of course you take a different course.” he told Fox Business. Calhoun said he wants the government to allow Boeing to borrow funds and the government would collect interest. “We want to pay everything back,” he said.

Boeing shares rose nearly 16% on Tuesday, but the stock is still down more than 60% in the last month. Last week, S&P downgraded Boeing’s credit and warned the coronavirus outbreak could hit Boeing’s cash flow further, as airline customers cancel flights and defer aircraft orders due to a plunge in travel demand. The ratings agency lowered the credit rating on the planemaker to ‘BBB’ from ‘A-‘ and now expects 2020 free cash flow in a range of negative $11 billion to $12 billion, down from a prior estimate of positive $2 billion.

Boeing said on Monday it will halt production for two weeks at its twin-aisle jetliner factory in Washington state due to the spread of coronavirus. It accounts for about 80% of Boeing’s production, Calhoun said. Calhoun said separately the 737 MAX is on track for a return to service for mid-year. “We’re very close to the finish line,” Calhoun told CNBC of the plane that has been grounded for a year after two fatal crashes in five months.

https://www.reuters.com/article/us-boeing-737max/boeing-ceo-does-not-want-u-s-to-take-stake-in-company-after-coronavirus-stimulus-idUSKBN21B1WN?il=0

USDA, USTR cite progress on farm provisions of U.S.-China trade deal

WASHINGTON (Reuters) - The United States and China have made progress in implementing the agriculture-related provisions of a Phase 1 trade deal that took effect on Feb. 14, the U.S. Department of Agriculture and U.S. Trade Representative said on Tuesday.

In a joint statement, they listed a number of steps taken that should help boost U.S. exports of beef, poultry and other farm products to China, and said U.S. food and agricultural products exports were benefiting from Chinese tariff relief.

“These steps show that China is moving in the right direction to implement the Phase One agreement,” said Agriculture Secretary Sonny Perdue. “We will continue to work with China to ensure full implementation of its commitments and look forward to seeing further improvement and progress as we continue our ongoing bilateral discussions.”

https://www.reuters.com/article/us-usa-trade-china/usda-ustr-cite-progress-on-farm-provisions-of-u-s-china-trade-deal-idUSKBN21B2PA?il=0