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 (Bloomberg) -- China will impose unspecified sanctions on defense contractor Lockheed Martin Corp. after the U.S. approved a possible $620 million deal to supply missile parts to Taiwan, marking the latest in a volley of punitive actions by the superpowers as relations grow colder."China firmly opposes U.S. arms sales to Taiwan," Chinese Foreign Ministry spokesman Zhao Lijian said at a briefing in Beijing on Tuesday. "We will impose sanctions on the main contractor of this arms sale, Lockheed Martin," he said, without elaborating on what form the sanctions may take.The move comes as tensions grow between the U.S. and China on a number of fronts, from the trade war and territorial claims in the South China Sea to the coronavirus pandemic and new security law Beijing imposed on Hong Kong. Zhao, the Foreign Ministry spokesman, called on the U.S. to cut military ties with Taiwan -- which China considers part of its territory -- to avoid "further harm to bilateral relations.""It's tit-for-tat between the two countries," said Shukor Yusok, founder of aviation consultancy Endau Analytics in Malaysia. "The impact this time is going to be small, but it could be the start of more to come."U.S. arms manufacturers face strict limitations on what kind of business they can do with countries deemed by Washington to be strategic rivals, such as China. Lockheed generated 9.7% of its revenue in the Asia-Pacific region last year, according to data compiled by Bloomberg, though that's not broken down by individual
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JP Morgan Chase said it earned a profit of $4.69 billion, or $1.38 per share. That's down 51% from a year ago. The results offer a glimpse into how badly the pandemic is impacting the financial health of American consumers and businesses.
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Delta Air Lines Inc. stock fell nearly 1% in Tuesday premarket trading after the airline reported second-quarter losses that were wider than expected. Delta's net loss was $5.72 billion, or $9.01 per share, after net income of $1.44 billion, or $2.21 per share, last year. Adjusted losses were $4.43 per share. The FactSet consensus was for a loss of $4.16. Revenue totaled $1.47 billion, down from $12.54 billion last year but ahead of the FactSet consensus for $1.39 billion. Passenger revenue for the quarter fell 94% to $678 million, and cargo revenue was down 42% to $108 million. "Given the combined effects of the pandemic and associated financial impact on the global economy, we continue to believe that it will be more than two years before we see a sustainable recovery," said Delta Chief Executive Ed Bastian in a statement, emphasizing the "staggering impact of the COVID-19 pandemic on our business." Delta ended the quarter with $15.7 billion in liquidity, and reduced its daily cash burn in June by 70% compared to late March, down to an average of $27 million. And the company has gotten $5.4 billion in grant funds and unsecured loans through the CARES Act, which will be paid in installments through July 2020. Maturities on $1.3 billion in borrowings on revolving credit facilities have been extended to 2022 from 2021. Delta has taken additional sanitation steps in the face of the coronavirus pandemic, has limited load factor at 60% and is blocking off middle seats. The company has provided more than $2.2 billion in cash refunds in 2020. Delta is positioning itself to be a smaller airline over the next couple of years, retiring MD-88 and other planes, and reducing headcount through early retirement and other programs. The company is also accelerating airport construction projects in New York's LaGuardia Airport, in Los Angeles and other cities. At the end of the quarter, the company had total debt and finance lease obligations of $24.6 billion. Delta took a write
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 Citigroup Inc. shares rose 1.5% in premarket trade Tuesday, after the bank posted second-quarter earnings that tumbled from a year ago but better than analysts were expecting. The bank said it had net income of $1.3 billion, or 50 cents a share, in the quarter, down from $4.8 billion, or $1.95 a share, in the same period a year ago. Revenue rose to $19.8 billion from $18.8 billion. The FactSet consensus was for EPS of 35 cents and revenue of $19.1 billion. Revenue was boosted by a strong performance in fixed income markets and investment banking, which offset weakness in consumer banking as consumers eased spending during the coronavirus pandemic. Net income was hurt by a huge bump in loan loss reserves, reflecting Citi's deteriorating macro-economic outlook. "While credit costs weighed down our net income, our overall business performance was strong during the quarter, and we have been able to navigate the COVID-19 pandemic reasonably well," Chief Executive Michael Corbat said in a statement. Loan loss reserves rose to $26.4 billion from $12.5 billion a year ago, and cost of credit jumped to $7.9 billion from $2.1 billion. Shares have fallen 34.7% in the year to date, while the Dow Jones Industrial Average has fallen 8.6% and the S&P 500 has fallen 2.3%.
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