Coronavirus

Twitter user growth trumps ad slide in long term

23 Jul 2020

Lockdowns have encouraged people to try the $29 bln social network. Users were up 34% year-on-year in the second quarter. Advertisers have pulled back. But Twitter’s problem has always been attracting more devotees. After the pandemic, newcomers will remain – and ads will return.

Hadas: Globalisation is down but not out

23 Jul 2020

Covid-19 has infected world trade and rising nationalism threatens cross-border harmony. Still, the five-century-old trend towards one world economy has survived worse. Migration, the shared thirst for knowledge and the profit motive will likely bring a resurgence in a few years.

Corona Capital: LatAm pensions, Activism

23 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Pension reform in Mexico and Chile gets a coronavirus makeover; UK chief executives catch a break during lockdown as the number of activist campaigns collapses.

UK insolvency shakeup stops at Chapter 10.5

23 Jul 2020

A fast-tracked new bankruptcy code gives Covid-hit firms, like Virgin Atlantic, precious breathing space. As with the U.S. Chapter 11, directors can get protection from creditors as they try to restructure. It’s better than the systems used by EU peers, but can still be improved.

Microsoft’s cloud mostly floats above Covid-19

22 Jul 2020

The $1.6 trln software giant’s latest quarter showed the pandemic's effects, good and bad. A sharp fall in advertising showed the company can’t entirely escape the real economy. But cloud services, on-demand software, and video gaming grew rapidly, thanks to more work from home.

N.Y. Times’s next boss may not have Trump to thank

22 Jul 2020

The Gray Lady named Meredith Kopit Levien as its new CEO during an auspicious time: It’s enjoying a market value not seen in nearly 20 years. The upswing coincided with President Trump’s election and a surge of subscribers. The streak may be broken after the election.

Corona Capital: Thanksgiving shopping, Airlines

22 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Walmart gives thanks to employees; Airlines’ relative winners emerge.

Coronavirus vaccine hopes inflate bubble

21 Jul 2020

Multiple biotechs like Moderna are developing vaccines. The market capitalization of five of them is up over eightfold, adding more than $50 billion of value. That's excessive even if they capture the entire benefit – and there are over 150 competing efforts in all.

Coke’s slip raises stakes in battle of bubbles

21 Jul 2020

The sugary drinks maker’s revenue fell 28% in the second quarter, whereas selling snacks helped rival PepsiCo weather Covid-19 lockdowns. Coca-Cola has traditionally been the more highly valued of the two, but the gap is now the lowest in a decade.

Corona Capital: Movies, Basketball, Tech optimism

21 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Warner Bros’ indefinite delay of its blockbuster movie “Tenet” spells bad news for the industry; healthy players and good social-media stats give the NBA a boost; Silicon Valley shows a hint of pessimism.

EU deal offers model for future crises

21 Jul 2020

The bloc agreed to 750 bln euros of grants and loans backed by common funds to help pandemic-hit member states. Despite some concessions on size, the plan looks workable and creates incentives for reform. Europe has moved on from its messy handling of the euro zone debt crunch.

Rosetta Stone cracks code as autopay pusher

20 Jul 2020

Though the $500 mln online language tutor’s shares peaked 10 years ago, the stock has been on a tear since mid-March, helped by deal rumors. Like gyms, users ignore small monthly payments once they sign up for an improved or enlightened self. That is, until wallets get squeezed.

Corona Capital: Uber, Tokyo Olympics

20 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Uber’s contact-tracing program could help stem Covid-19’s spread and mend relationships with municipalities; and Japan PM Shinzo Abe faces discontent over his handling of both the virus and the postponed Olympics.

Wall Street pay heads towards danger zone

17 Jul 2020

Morgan Stanley, Goldman Sachs and JPMorgan socked away at least 33% more for investment-bank bonuses after bumper results last quarter. It looks reasonable given revenue gains. But huge paydays on the back of Fed largesse in an economic slump risk a return to public opprobrium.

Corona Capital: Newspapers, 747s

17 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Congress may dangle newspapers a lifeline; British Airways brings its fleet of jumbo jets in for a final landing.

EU has fairness vs. speed dilemma on pandemic cash

17 Jul 2020

Brussels wants to use backwards-facing metrics like past jobless rates to assign 310 bln euros of Covid-19 grants. Basing handouts on EU states’ actual hits to GDP would be fairer, and may win richer countries’ support. For needier peers, that risks slowing down the recovery.

Netflix is still the pointiest FAANG

16 Jul 2020

Subscriber growth is slowing and Reed Hastings has decided to share the CEO role. After a 60% share-price rise this year — well ahead of Facebook, Alphabet and Apple – that clashed with sky-high expectations. But Netflix remains well placed, even if TV-viewing is reaching a peak.

Wall Street gets $10 billion gift from Main Street

16 Jul 2020

The five big firms struck gold in the latest quarter as the Fed pumped up markets, even as rates fell. But the spoils pale next to crisis costs: JPMorgan, Citi, Goldman, Morgan Stanley and Bank of America collectively put aside twice that amount to pad against future bad debt.

Corona Capital: Good news is bad news

16 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. retail sales are rising and some banks say consumers are surprisingly resilient – but a recovery once glimpsed is even harder to give up.

Corona Capital: Expense accounts, Zoom’s new box

15 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs’ earnings give an insight into pandemic-era client schmoozing, and virtual meeting facilitator Zoom tiptoes into the high-priced hardware market.