Critical workers hold keys to higher minimum pay 6 May 2020 U.S. ambulance drivers make under $15 per hour, EMTs under $20. And “essential” retail staff make about $13. These and others indispensable in a lockdown and at risk on the Covid-19 front line are under-rewarded. Any post-virus rethink of supply chains must also include wages.
Carmakers put V-shaped recovery hopes to the test 6 May 2020 GM, Fiat Chrysler and Ford hope to restart U.S. production soon. Analysts expect new-car sales to return quickly. But the poor financial health of customers and industries like construction and energy will sap demand. That could turn a V into a U.
Will casual sex get shafted by the pandemic? 6 May 2020 That’s what dating apps like Tinder, Match and Bumble are trying to answer. Diseases like AIDS changed intimacy patterns before. Covid-19 will make it harder for lovers to swipe right with peace of mind. But more engagement, if fewer hookups, may benefit the matchmaker model.
Corona Capital: Beyond Meat, Facebook, Natixis 6 May 2020 Concise views on the pandemic’s corporate and financial fallout: Beyond Meat’s stock burn, Facebook installs an oversight board, Natixis’s bad news-good news situation.
UniCredit gets little reward for virus caution 6 May 2020 Covid-19 provisions and restructuring costs risk erasing the $16 bln Italian bank’s profit this year. CEO Jean Pierre Mustier is being more prudent than his peers, but that is not reflected in a lowly stock price. At least investors stand to gain more when the recovery comes.
Oil car crash highlights Aramco investors’ airbag 6 May 2020 The Saudi crude giant’s shares have fallen less than those of western peers. Shareholders’ scope to avoid the dividend cuts now hitting oil majors is one reason why. It helps that Riyadh may be able to borrow its way out of the crisis rather than have to drain its cash cow.
Cloud IPO is fresh air for U.S. China listings 6 May 2020 Lei Jun is eyeing a healthy $3.6 bln valuation for his cloud venture. The Xiaomi founder makes for a tried and tested boss for Kingsoft, a strong rival to Alibaba and Tencent. In the wake of the Luckin scandal and Covid-19, it looks as good as any Chinese company in New York can.
Disney’s advantages over Netflix are now flaws 5 May 2020 The Magic Kingdom’s theme parks and movies once seemed safer bets than high-cost, high-growth video streaming. Lockdown and a possibly protracted period of social distancing have changed that. Netflix will be stronger by the time Disney regains its former glory.
Trucks inch towards electric-vehicle critical mass 5 May 2020 Automakers have invested heavily in electric cars. But selling enough to justify needed infrastructure remains a chicken-and-egg problem. Putting batteries into the haulage fleets of Amazon, UPS and others could vault to a solution. A new report shows how utilities can help, too.
Biotech M&A deal looks too rich for its blood 5 May 2020 Alexion agreed to pay $1.4 bln for smaller rival Portola and its potentially promising drug to reverse anticoagulants. The target has been on a downward slide for years – but is still bagging a 132% premium. That’s baking in success, but it’s more likely Alexion is overpaying.
Pandemic strengthens Intesa’s hand in M&A battle 5 May 2020 The Covid-19 crisis is clouding the $27 bln bank’s growth prospects. CEO Carlo Messina may struggle to pay dividends he promised in a hostile bid for peer UBI. Still, the worse outlook makes it harder for the target’s shareholders to reject the scale and savings from a merger.
Cox: Brace for America’s version of Saudi Aramco 5 May 2020 And that’s just a start. After the pandemic, governments will foster the creation of national champions. Bigger, supposedly safer and more diversified will be in. Conglomerates may even be fashionable again. In the hardest-hit sectors, like the oil patch, anything can happen.
Corona Capital: Apple bonds, DuPont’s priorities 5 May 2020 Concise views on the pandemic’s corporate and financial fallout: Cash-rich Apple capitalizes on the Fed’s largesse to raise $8.5 billion in cheap debt; DuPont looks past massive demand for PPE materials to a tough second quarter.
BNP CEO’s “trust me” routine is only half credible 5 May 2020 First-quarter earnings at the French bank fell 33%, driven by losses in equities trading. Boss Jean-Laurent Bonnafé argues that superior risk control means 2020 profit could fall by just one-fifth. Investors are rightly dubious that the lender’s bad debt charges will stay so low.
Deal squawkers spread their remorseful wings 5 May 2020 A flock of buyers is citing Covid-19 to wriggle out of acquisitions. Legal flaps may determine the fates for targets Moss Bros, Delphi, Metlifecare and a Bed Bath & Beyond business. Despite some questionable arguments, negotiating power favours the yellow-bellied birds of prey.
Tyson races to fix just one of two long-term woes 4 May 2020 The $20 bln meat processor is finally doing more for workers after Covid-19 infections shut down plants. It may mark the end of cheap labor as a crutch for U.S. food-industry titans. But their other big problem is the concentrated, environmentally unfriendly supply chain itself.
Lack of bailout guardrails creates vicious cycle 4 May 2020 U.S. politicians bashed big firms like Ruth’s Chris for getting aid in the previous small-business bailout. But they were just capitalizing on loopholes. The latest $310 bln is also susceptible to abuse. Until problems are fixed, more bailouts will be required.
Chancellor: Big is beautiful will also be ugly 4 May 2020 The clamour to save jobs and a prolonged shift to low interest rates will give big companies the upper hand in consolidating the small and the weak. This ever-greater concentration of industry and power will ultimately exacerbate the sorts of shortages now hurting big economies.
Warren Buffett may have met his match: the Fed 4 May 2020 For the unflappable billionaire, moving Berkshire Hathaway’s annual meeting online and suffering a $50 bln loss from stock swings are minor bumps. His bet-on-America philosophy faces a bigger challenge. Easy money does no favors for an insurance company with $130 bln of cash.
Pandemic stalls Ferrari’s Formula 1 turboboost 4 May 2020 Bans on mass events are disrupting this year’s racing season. That’s bad for the luxury carmaker, which in 2019 made 14% of its revenue from Grand Prix events and branding. While the core auto business should hold up, a lack of action on the tracks leaves growth in the slow lane.