☑️ You gotta spend money to make money. The US Treasury will set a new record *bells and whistles go off* as it is estimated to borrow $3T this quarter. That's a lot of $1,200 checks. Thanks to 'rona boi, the Treasury has spent Brinks-trucks full of funds to keep the economy going as social distancing and stay at home orders brought the economy to a standstill.
There's an additional stimulus package in the, excuse my phrasing, works, to help assist the 30M+ Americans on the unemployment line thanks to furloughs and layoffs. In fact, California just became the first state to ask the federal government for money to pay its unemployed.
The current year's budget deficit is at $744B, but it's expected that Q3 will see an additional loss of $677B. The US national debt clock is now nearing $25T, while US GDP stands at $21.38T.
☑️ Re-Failure. J Crew has become the first major retailer to file for bankruptcy thanks to COVID-19. The preppy clothing brand reached a deal with shareholders to convert $1.65B of its debt to equity and secured $400M in financing from existing lenders... presumably in exchange for salmon-colored shorts with little anchors on them.
It was already struggling in the sales and debt departments, as the retailer received criticism that it lost touch with its audience way before its audience wasn't allowed to touch each other. Apparently a nautical themed sweater for $90 doesn't slap the way it used to.
The good news? J Crew isn't alone. Other struggling retailers, such as Neiman Marcus and J.C. Penney, may be next, as Neiman is supposedly looking for financing and JCP missed an interest payment. Whoops!
☑️ Take a seat. How much does safety matter to you? Frontier is betting $39.
Frontier Airlines is allowing customers to purchase the middle seat next to them, ensuring that it stays unoccupied to help out with social distancing… all for the low, low price (range) of $39 to $89.
Umm, wouldn't I still need to straddle the person in the aisle seat to get to the bathroom? I digress.
The budget airline is also implementing other COVID related policies, such as mandatory face coverings, temperature checks, and not letting anyone on the flight that has coronavirus. Ok, the last one checks out.
Other airlines, such as American and Delta, are blocking middle seats for booking, but would book them if passengers need them... which defeats the purpose entirely.
☑️ Packing meat. Tyson Foods fell 10% yesterday, as it missed big on earnings thanks to the negative impact of the coronavirus pandemic. EPS came in at 77 cents, a far cry from Wall Street's estimates of $1.04, while revenue fell $50M short of the projected $10.96B.
And the company expects volume to decline in Q2 as people continue to social distance and eat at home.
Hundreds of Tyson employees have contracted the virus, forcing numerous slaughterhouses and plants to slow production or shut down. Tyson's chickens, on the other hand, have been very pleased by this recent development.
In an effort to keep the business afloat, the meat maker has secured a $1.5B term loan facility.
Post a Comment
Post a Comment