Coronavirus

Corona Capital: Nike, Microsoft and retail pain

26 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Bad news for landlords. Nike’s online sales surged during the lockdown even as stores were mostly closed. Meanwhile, Microsoft is shutting most of its retail outlets — for good.

Bank stress tests give the Fed a pass grade too

25 Jun 2020

The biggest lenders would have a minimum capital ratio of 7.7% in a W-shaped virus recovery, the U.S. regulator reckons. The Fed is capping dividends as some banks approach the danger zone. Still, it reassures that after a decade of reforms, they can weather an unforeseen crisis.

Real-time economic data show Covid-19 wariness

25 Jun 2020

The pandemic has placed a premium on figures that give rapid hints about how the economy is doing. TomTom’s traffic flows and OpenTable’s restaurant data reveal the positive impact of U.S. states easing restrictions – but also how worsening outbreaks send people back home.

Vaccine victory would be half cure for economy

25 Jun 2020

Governments have ploughed over $5 bln into efforts to create a barrier against Covid-19. Promising trials raise hopes the virus can be made less lethal. But as even effective vaccines would still allow the disease to spread, they will only allow a partial return to normality.

Chancellor: Inflation as the post-pandemic cure

25 Jun 2020

The massive fiscal deficits engendered by the virus should see off deflation. The spectre of rising prices now beckons. While its potential horrors shouldn’t be downplayed, inflation can resolve great imbalances and festering social discontents besetting the global economy.

Viewsroom: Reparations math, the coming WFH battle

25 Jun 2020

As America continues to grapple with the legacy of slavery, Breakingviews columnists debate the financial question of whether the government, and some corporations, have a debt to repay. And Pete Sweeney dives deep into the post-pandemic future of working from home – or not.

Corona Capital: U.S.-China fight, Canada downgrade

25 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Washington deploys sanctions over Hong Kong, adding to trade and Covid-19 tensions; and a double whammy of the coronavirus and low oil prices costs Canada one of its AAA ratings.

EasyJet sees glimpse of blue sky above virus cloud

25 Jun 2020

The UK budget airline raised 419 mln pounds from investors. With European economies reopening and the few planes back in the sky full of passengers, CEO Johan Lundgren’s route out of the gloom is clearer. Shares up 50% from their virus low make this a good time to refuel.

Chaotic U.S. virus tactics augur sickly economy

24 Jun 2020

Covid-19 cases are rising across roughly half the country, but only 30% of states require wearing masks in public. The lack of White House leadership exacerbates local differences in handling the outbreak. A return to lockdowns is likely, putting commerce back in the sick bed.

Winnebago’s spring surge may run out of gas

24 Jun 2020

The recreational-vehicle maker’s stock price has more than tripled from March lows as social distancing pushes stir-crazy Americans outdoors. But the company’s valuation is stuffed with expectations of hitting Mount Rainier-type heights. Investors might want to put on the brakes.

VW’s Europcar takeover would be a rough round trip

24 Jun 2020

The German carmaker is considering buying the $500 mln French car-rental firm, which it sold in 2006. Beleaguered boss Herbert Diess could use its airport and city locations to launch ride-sharing services. Plummeting rentals and high debt will make bumpy economic returns ahead.

Corona Capital: A tax on martinis

24 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Uncle Sam has bad news for those enjoying the libation during lockdown as it’s putting up import duties on gin, vodka and olives.

The looming war over working from home

24 Jun 2020

After decades of false starts in telecommuting, the pandemic has ushered in a real revolution. It’s great for collaborative technology developers, less so for office landlords. The next big clash between labour and capital over the fruits of productivity is also set to kick off.

Bill Ackman bests Goldman Sachs in SPAC race

23 Jun 2020

Both are launching blank-check companies designed to buy private firms. Goldman’s is smaller, and rides on its contacts and cachet. Ackman’s could reach $6 bln, and adds some governance-friendly tweaks. Short-term investors will probably prefer Goldman’s; Ackman may hope they do.

Lufthansa bailout rebel has jobs trump card

23 Jun 2020

Billionaire Heinz Hermann Thiele may nix the airline’s $10 bln rescue if Berlin doesn’t sweeten its terms. It looks rash: blocking the deal would crash the 79-year-old’s 16% stake. Yet insolvency could cost jobs and dent Germany’s reputation. The government may be first to fold.

Corona Capital: SpongeBob, Cirque du Soleil

23 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Cinema chains raring to reopen may find that movie studios have already made other plans. Meanwhile, Cirque du Soleil may get new financing, but with strings.

UK stimulus exit talk may do more harm than good

23 Jun 2020

Central bank boss Andrew Bailey is talking about how monetary easing will be unwound, while finance minister Rishi Sunak may later this year unveil deferred tax rises. Payback is inevitable. But when flagged so clearly, it undermines recovery efforts.

Corona Capital: Payments systems, Shale

22 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Payments systems get some good news, shale oil drilling’s double whammy.

Corona Capital: UK debt, Oaktree, KKR, Chanel

19 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: UK government borrowing surges past GDP; Howard Marks is sceptical about the stock market revival; KKR bets on cheap and local European holidays; Chanel takes a gloomier view than rivals on the luxury rebound.

Goldman uses virus to become a preferred tenant

19 Jun 2020

The Wall Street giant and hedge fund backers of hotel chain Travelodge are trying to slash their rent bill by over a third. Normally, landlords would only play ball if the tenant was at death’s door. Covid-19 is inverting that pecking order – to real estate owners’ detriment.