FT News Briefing Aviation industry under pressure, Argentina’s debt deadline, why Silicon Valley is surviving the ad crash
May 5, 2020
The aviation sector faces more turmoil as GE announces a significant job cut of 10,000 in aerospace. Argentina's mounting debt crisis raises eyebrows with investor concerns and potential defaults looming. Meanwhile, Silicon Valley navigates through the ad spending downturn by adapting strategies, revealing the resilience of tech giants. Discover how advertising budgets are shifting in response to the pandemic, with a strong pivot towards online platforms like Facebook and Google.
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Aviation Industry Woes
- GE announced 10,000 aerospace job cuts, adding to the 2,600 U.S. cuts last month.
- Warren Buffett sold over $6 billion in airline stocks, stating the industry has fundamentally changed.
Argentina's Debt Crisis
- Argentina, facing its ninth potential sovereign debt default, proposed restructuring $65 billion in foreign debt.
- Bondholders reject the offer, demanding better terms and raising concerns about the country's economic outlook.
Silicon Valley Surviving the Ad Crash
- Silicon Valley's online advertising model benefits from increased online activity during the pandemic.
- Direct response ads, focusing on immediate actions like purchases, are gaining traction, especially on platforms like Facebook.