Corona Capital: Champagne, Canada, College chaos 18 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: Champagne growers cut production; Canada’s finance minister quits over stimulus costs; and some American universities are collecting tuition fees before telling students that in-person classes can’t happen.
UK quarantine surprise spoils more than holidays 14 Aug 2020 The British decision to mandate quarantines for people entering from France will sadden vacationers and slow the recovery of French tourism, which makes up 9% of the country’s GDP. It could also depress broader sentiment and increase the UK’s political isolation from Europe.
TUI equity call is probably a matter of when 13 Aug 2020 Anti-Covid-19 restrictions led Europe’s largest holiday operator to a 1.5 bln euro quarterly loss. Expensive German state loans have given boss Friedrich Joussen enough cash to last until next year’s hoped-for rebound. Even if it arrives, high debts make a rights issue likely.
Corona Capital: “Halo”, Salesforce, Brooks Bros 12 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: Microsoft delays the next chapter of the “Halo” game franchise; Salesforce gets a lockdown bonus with sale of Zoom shares; and Simon Property suits up with a purchase of Brooks Brothers out of bankruptcy.
Corona Capital: Junked cans 11 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: An aluminum company with a junk rating issues debt with a ridiculously low interest rate.
IAG’s capital raise buys limited flying time 31 Jul 2020 The British Airways owner is tapping investors for 2.8 billion euros of equity. But the carrier is burning through 800 million euros of cash each month. Unless restrictions in its three biggest markets lift soon, a government bailout may be the only way to avoid a rough landing.
The depth of Boeing’s problems is still sinking in 29 Jul 2020 The $96 bln aviation giant reported another dismal quarter as struggling airlines ordered few planes. The recovery from the 737 MAX grounding and the pandemic are also edging further into the future. The outlook for the plane maker may still be catching up with the grim reality.
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.
Ctrip invites funds to buy out China’s travel dip 29 Jul 2020 The $16 bln booking giant is mulling going private, Reuters reports. Ctrip has a clean balance sheet, no controlling shareholder, and premiums for delisting Chinese companies in New York have nearly halved. It’s a good target as domestic tourism revives. Funding is the trick.
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: 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.
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.
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.
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.
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.
Virgin’s budget rescue buys a bit more flying time 14 Jul 2020 Richard Branson’s airline claims its rescue deal is worth 1.2 bln pounds. But the tycoon and other investors are only chipping in 370 mln pounds of new cash, with payment holidays and deferrals bringing in the rest. With few assets to borrow against, it’s the best deal on offer.
Corona Capital: Nursing homes, Airlines, Walgreens 9 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Nursing home investments will get a rethink; airline travelers get the upper hand; and Walgreens’ LBO heyday is in the past.
Corona Capital: Not so united 8 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: A potential round of cuts at United Airlines lays bare the pitfalls of the government being both savior and investor.