Corona Capital: Disney/“Hamilton”, U.S. housing 6 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: “Hamilton” reinvigorates Walt Disney’s digital-download challenge, and America’s stay-at-home rules may mean there’s pent-up demand for real estate and home improvement.
Corona Capital: Quarantines, UK bailout, Drugs 3 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Britain relaxes its “bonkers” quarantine rules; a small UK bailout sets a troubling transparency precedent; and India’s drugmakers click into dealmaking mode.
Scandi airline rescue is formation-flying lesson 30 Jun 2020 Sweden and Denmark are taking an equal share of the knotty $1.5 bln rescue of regional carrier SAS. If equity and debt holders agree, it’s an exception to the rule that national priorities impede cross-border bailouts. Air France-KLM’s fractious state owners should take note.
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.
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.
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.
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.
Hertz shares may yet be roadworthy 18 Jun 2020 The bankrupt car-rental firm halted plans to sell stock after the SEC raised concerns. Equity is usually wiped out in Chapter 11. But if a re-emergent Hertz could rev its EBITDA up to, say, 60% of pre-pandemic levels, shareholders could stay along for the ride.
Corona Capital: J.C. Penney, Hockey 17 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Executives at bankrupt clothing chain J.C. Penney sell their shares for, well, pennies; and ice hockey gear supplier Bauer adapts for the Covid-19 era.
Hertz throws equity wrench in bankruptcy melee 12 Jun 2020 The car-hire firm wants to raise up to $1 bln by selling shares to replace debt that usually finances a restructuring. It may pay off, but equity usually crashes into a wall in Chapter 11. The stock market’s irrational exuberance is letting Hertz test-drive an unusual vehicle.
Viewsroom: Global takeaway and Cathay 11 Jun 2020 Nothing sums up pandemic dealmaking quite like this: As a merger of America’s top shopping mall operators crashed and burned, two of the world’s biggest food-delivery companies joined forces. Also, Cathay gets a bailout and so might the Mets. Breakingviews columnists discuss.
Corona Capital: Instacart stocks up 11 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Grocery-delivery firm and lockdown beneficiary Instacart tops up on capital while the getting is good.
Travel bubbles could encase global divisions 10 Jun 2020 Australia and Norway are among the countries aiming to open borders to neighbours in similarly good health. Welcoming visitors should help slumping economies, especially in Hong Kong and Macau. The risk of narrow deals is that they reinforce the world’s balkanisation trend.
Cox: Trans-ocean travel has zombie apocalypse vibe 5 Jun 2020 A flight this week from Zurich to JFK reveals empty airplanes, airports devoid of people, limited services and a glimpse into the emerging protocols that surely await when more normal travel flows resume. It’s unsettling in a plague-times way, but surprisingly hassle free.
Airline shares’ relief rally fails safety check 5 Jun 2020 Groups like IAG and easyJet are soaring on hopes that the worst of the crisis is over. Rising air passenger traffic is welcome given the sector’s near-death experience. But with empty seats and cut-price tickets, getting planes in the sky does not mean a return to profits.
Corona Capital: Bank fears, Payments M&A, Coal 2 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: A new U.S. regulator wants cities to reopen to prevent bank robberies. Western Union may bid for struggling rival MoneyGram. And the pandemic is hastening the decline of U.S. coal.
TUI’s summer cheer may be short-lived 2 Jun 2020 The $3.5 bln holiday operator’s shares have risen by around 60% since Spain said it would welcome tourists again. But fewer sales and high debt could eventually force CEO Friedrich Joussen to raise more equity. With the stock buoyant, it’s a good time to tap shareholders.
Irish eyes keep smiling despite a strict lockdown 29 May 2020 Village pubs are shut until August. The Emerald Isle’s restrictions may look extreme but have kept deaths low even if unemployment has soared to near 30%. Yet with ample supplies and a clear reopening plan, Matt Damon isn’t alone in finding Ireland an ideal pandemic bolthole.
Corona Capital: GE cash burn, Macy’s lifeline 28 May 2020 Concise views on the pandemic’s corporate and financial fallout: General Electric’s cash flow will be more negative than expected as Covid-19 damages its aviation and power businesses; and U.S. department-store chain Macy’s borrows more, buying time but not much else.