Coronavirus

Corona Capital: GM, Glaxo, Shopify, Movies, Pemex

29 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: General Motors pulls further ahead; GlaxoSmithKline’s vaccine-order boost; Shopify fills its revenue basket; AMC bows to online streaming’s growing power; Mexico’s oil giant puts on a brave face.

Santander looks back in anger and forward in hope

29 Jul 2020

Impairment charges produced a $12.5 bln first-half loss at the Spanish bank. It paid far too much for UK lender Abbey National back in 2004. The Latin American expansion looks smarter. With limited pandemic damage, boss Ana Botin might close the bank’s hefty 50% discount to book.

UK’s online tax plan risks killing retail patient

29 Jul 2020

Rishi Sunak is looking to raise 2 billion pounds through an internet sales levy. If the goal is to help traditional retailers, then the chancellor should look at punitive business rates. The government, like landlords, might have to make sacrifices to keep high streets healthy.

Drugs are the new bitcoin for stock hype

28 Jul 2020

Kodak shares tripled on news Uncle Sam lent it money to produce generic-medicine ingredients. The imaging firm enjoyed a similar bump after launching a cryptocurrency. That fell flat. This is closer to its roots and could be a good step. But the exuberance is likely to fade.

GM deserves more faith from shareholders than Ford

28 Jul 2020

The carmaker run by Mary Barra is holding up better in the pandemic than its Detroit rival. It’ll also zip back to profit more quickly and remains ahead on electric and autonomous cars. Yet Ford’s shares offer a smoother ride and better multiple. That doesn’t track.

Costs are the new profit this earnings season

28 Jul 2020

From 3M to McDonald’s, it’s a similar story: Sales are down but improving, profit is dismal and the future is anyone’s guess. Expense management may be more useful in seeing how companies are doing. It may be time to dust off some old financial jargon: the decremental margin.

The Exchange: Airbnb CEO Brian Chesky

28 Jul 2020

The co-founder of the home-sharing firm compared the effects of the pandemic to a torpedo hitting a ship. He discusses how Airbnb raised $2 billion amid the crisis and how Covid-19 has changed travel. It has affected the future of his company, including its options to go public.

Cox: History’s most plagued city can lead the way

28 Jul 2020

Venice has benefitted more than any other place over the centuries from global trade and the movement of people. “La Serenissima” has also withstood pandemics, devoting churches as testaments to each calamity. A plan to remake its business model has merits beyond the lagoon.

Corona Capital: Baseball, Gas cloud, Luxury goods

28 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Baseball’s Covid-19 cases put popular college sports competitions in jeopardy; a recovery in drilling for gas is bad news for the environment; Gucci and other luxury retailers finally embrace the digital revolution.

Europe bank investors can bear more dividend pain

28 Jul 2020

Hopes for payouts this year have been dashed by top supervisor Andrea Enria, who told lenders to wait until 2021. If profits hold up, investors will only suffer a delay, not a loss. Covid-19 is special, but investors can worry about creeping regulatory control of dividends.

Reckitt’s deep clean needs more elbow grease

28 Jul 2020

Frantic washing during lockdown helped the $70 bln maker of Dettol and Durex beat forecasts. The Covid-19 boost and CEO Laxman Narasimhan’s turnaround have sent the shares up 25% this year. The next part of his overhaul, including reviving the infant food unit, will be harder.

U.S. aid can give shot to women in the workforce

27 Jul 2020

Female employees have been hit hard in the pandemic, with a higher jobless rate and lower labor participation than men. Congress is mulling economic Band-Aids but the crisis is an opening for more ambitious plans like universal childcare. It’s a longer-term boost for growth.

China wallets will decide winners in bling rebound

27 Jul 2020

The pandemic may shrink global sales of fancy handbags and shoes by up to 35% this year. And it will make fashion houses even more dependent on rich Middle Kingdom buyers. Owners of brands with strong local appeal, like Richemont’s Cartier or LVMH’s Louis Vuitton, stand to gain.

Corona Capital: Precious metals, Share sales, Toys

27 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: The virus and central banks’ response to it is a rich seam for gold and silver prices; UK companies’ growing preference for bonds rather than stock is a warning sign; Hasbro and Mattel vie to see who loses less.

Ryanair pain will be milder than rivals’ misery

27 Jul 2020

CEO Michael O’Leary is focusing on preserving cash and cut staff costs by 77% in the first quarter. Competitors that have more unionised employees can’t tighten their belts as much. Another big wave of infections would be even worse for them than the 11 bln euro budget carrier.

Saks and Neiman Marcus deserve each other

24 Jul 2020

The prospects for floggers of high-end shoes and handbags are worsening daily. But the rival retailers that sell Chanel and other lux goods overlap significantly. With Neiman in bankruptcy and Saks holding together by a thread, the only outstanding question is who will buy whom.

Corona Capital: Movies, Sports

24 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Walt Disney is pushing back the highly anticipated movie “Mulan,” with a domino effect for “Avatar” and “Star Wars” sequels; and sport stars are still making it rain when it comes to pay.

E-bikes give the two-wheeled market a jolt

24 Jul 2020

Pandemic-induced fear of public transport and state subsidies have boosted the $65 bln bicycle business. Growing numbers are opting for battery-assisted pedalling. As with cars, the shift is disruptive. Leaders like Shimano and Giant will have to make space for new players.

How U.S. made Covid-19 tests a profitable disaster

23 Jul 2020

Week-long waits for results jar with soaring share prices of firms that test for the killer virus, like Quest Diagnostics and LabCorp. Detecting Covid-19 can be financially rewarding, yet supply remains woefully short. The debacle shows market forces need a firm guiding hand.

Traditional IPO is best-fit destination for Airbnb

23 Jul 2020

The home-sharing app is reviving plans to go public. Before the pandemic it favored a direct listing, but now it could use fresh capital. CEO Brian Chesky is exploring all options, including a SPAC investment. For a big name, though, a regular IPO looks the most logical route.