|
TOGETHER WITH
|
|
|
Good morning. It's been a rough week for everyone, but hey, at least it isn't Friday the—oh wait.
In all seriousness, we found comfort in these words from Rabbi Yosef Kanefsky as we head into the weekend:
- "Every hand that we don't shake must become a phone call that we place."
- "Every embrace that we avoid must become a verbal expression of warmth and concern."
- "Every inch and
every foot that we physically place between ourselves and another, must
become a thought as to how we might be of help to that other, should the
need arise."
Have a great Friday—we'll see you back here tomorrow morning.
|
|
|
|
NASDAQ
|
7,201.80
|
- 9.43%
|
|
|
|
S&P
|
2,480.64
|
- 9.51%
|
|
|
|
DJIA
|
21,200.62
|
- 9.99%
|
|
|
|
GOLD
|
1,576.70
|
- 3.99%
|
|
|
|
10-YR
|
0.794%
|
- 2.90 bps
|
|
|
|
OIL
|
30.93
|
- 6.22%
|
|
|
*As of market close
|
-
European markets: Stocks had their worst one-day drop in history yesterday, despite an emergency stimulus package unveiled by the European Central Bank.
-
U.S. markets: You know things are bad when you kinda get used
to seeing the S&P down staggering amounts. The Dow suffered its
worst one-day drop since the crash in 1987, and Wall Street's circuit
breaker kicked in for the second time this week to give markets a
breather. The S&P joined the Dow in a bear market. This is a
historic wipeout.
|
|
|
|
KENA BETANCUR/AFP via Getty Images
|
As factories
around the world shutter, entire populations get quarantined, and
consumers lock their wallets tighter than their front doors, thousands
of companies are facing deep earnings cuts.
Which brings up a huge problem.
Last year, outstanding debt held by non-finance corporations hit a
record $13.5 trillion, according to an OECD report. A growing portion of
that is held in riskier bonds, and experts worry an economic crisis spurred by coronavirus could send corporations on cost-cutting sprees or to default.
How we got here
Corporations issue bonds to raise money. And high-quality corporate bonds are considered relatively safe investments.
- What counts as
high-quality? Rating agencies like S&P, Fitch, and Moody’s rank
bonds by a company’s creditworthiness, from investment-grade to junk.
In the years
after the financial crisis, corporations loaded up on debt. Today, an
estimated one-in-six U.S. companies don’t have the cash flow to cover
interest payments, a Morgan Stanley analyst told the FT.
And there’s more junk than ever: In the last decade, about one-fifth of new bonds issued were below investment-grade.
When junk hits the fan
Because of
the coronavirus, investors are shedding riskier assets like a Great
Pyrenees heading into spring. This week’s oil price war accelerated the
sell-off in the energy industry, which accounts for the largest share of
the U.S. junk bond market.
- Energy companies have about $88 billion in bonds due this year, and analysts expect defaults to surpass 2016 levels.
Rating
agencies are watching particularly vulnerable industries like auto,
airlines, and hospitality. S&P put Nashville's Ryman Hospitality
Properties on a credit rating watch after massive cancellations
threatened to whack revenue by $40 million.
Big picture:
Last year, the IMF warned a crisis half as severe as the 2008 recession
could put 40% of corporate debt at risk. If the pandemic makes it
harder for companies to make interest payments, they might need to lean
on cost-cutting measures like layoffs or pulling investments.
|
|
|---|
|
Giphy
|
You're going to have to find another excuse besides "I'm too busy." Delays/cancellations/suspensions of some of the biggest events and venues in the U.S. came fast and furious yesterday.
Sports
NCAA March Madness: Canceled
MLB: Opening of season delayed for at least two weeks
Major League Soccer: On hold for 30 days
NHL: Suspended
NBA: Suspended
PGA Tour: Suspended
Boston Marathon: Postponed to autumn
NASCAR: Holding races in Atlanta and Miami without fans
Culture
Broadway: Closed until April 13
E3 (huge videogame expo): Canceled
Disney theme parks: Closed
Many iconic NYC cultural institutions, including the Met and Carnegie Hall: Closed
Movies
Fast and Furious 9: Postponed to April 2021
A Quiet Place II: Delayed indefinitely
Bottom line: You already know what we're gonna say. The impact of these cancellations isn't just FOMO—the lost spending will be crushing.
|
|
|---|
|
Fed Chair
Jerome Powell’s had a big March trying to support the financial markets
in these times of crisis. Last Tuesday, he took the roadster out of the
garage by cutting interest rates. On Monday, he pulled out of the
driveway—raising limits on repurchasing operations—before turning onto
the highway Wednesday (jacking lending up to $500+ billion from under
$200 billion).
Yesterday, he gunned it up the on-ramp. The New York Fed will infuse $1.5 trillion into financial markets in an effort to calm the typhoon-esque waters.
- It’ll do that via three separate
$500 billion repo (repurchasing agreement) offerings. The first began
yesterday; the second will last for three months; and the third will
stay for just one. The injection could broaden the Fed’s portfolio by
over 35%.
Zoom out: The
markets barely noticed Powell’s rate cut last week. Now, the Fed is
using longer-term asset purchases to stabilize markets, a move it last
made to shoulder them through the 2008 financial crisis.
+ Want more markets? Yesterday, we released an emergency podcast episode of Business Casual with markets expert Downtown Josh Brown. You won't find a better breakdown of all the turmoil anywhere else. Give it a listen.
|
|
Actually, this is more of a ROFL situation. If you’re still rocking your pops’ chinos, it might be time to take a look at Revtown.
As a
well-regarded and Twitter-influential business newsletter, we are pretty
sewn up when it comes to work fashion trends. Even our friends at Big
Huge Bank Inc. are wearing jeans to work.
So why,
then, are you still waking up at 4:30 to press those stiff, baggy
khakis? Unless you work as head of sales at Khaki Korp LLC, you’re
messing up.
Relegate those khakis to jury duties and lunches with grandma. And once you do, here’s what you need to know about Revtown:
- Their jeans come in four colors to match your whole wardrobe.
- Their signature Decade Denim gives you mobility, comfort, and durability.
- They look dang good.
Stop making us laugh. Get yourself a pair or ten of Revtowns for about half the price of designer denim.
|
|
|
Princess Cruises
Yesterday, Princess Cruises suspended all operations for two months, sending owner Carnival Corp. shares into a sharp starboard tack—down 31.2%.
The details: The
suspension will affect the cruise line's 18 ships until May 10. Current
Princess trips slated to end before March 17 will complete their
journeys, but those planned to end later will be cut short.
- In January, its Diamond
Princess ship held what was then one of the largest clusters of
confirmed cases outside China, with over 700 people infected. Several
people died after disembarking.
- Then last week,
authorities confirmed at least 21 COVID-19 cases on its Grand Princess
vessel. The ship is now at the Port of Oakland, where passengers and
crew are being routed to quarantine facilities.
Bottom line: The industry is facing an existential threat. Both the State Dept. and the CDC advised Americans to avoid cruises.
|
|
|---|
|
Currently rewatching The Sopranos hard at work. It’s the Brew’s Weekly News Quiz, coming at you live from a couch in Brooklyn.
-
Bailout amount: $15 billion; $17 billion; $700 billion
-
Industry: Automakers following the '08 crisis; banks during the '08 crisis; airlines after 9/11
2. On Tuesday, NY Rep. Gregory Meeks said, "For the life of me, I don't know why you took this job." Who was he talking to?
3. Originally a marketing agency, MSCHF is home to 10 employees who "pretty much do whatever they want," per the NYT. Which of the following viral stunts have they not created?
- A desktop app that swipes right on Tinder every time you click your mouse
- "Times Newer Roman," a font that's slightly bigger than Times New Roman
- "All the Memes," a website that shows "stolen" memes from popular comedy influencers
- A mystery box that sold
for $100 but could contain up to $7,000 in value inside. The catch: If
you mailed the box back within 100 days, you’d automatically make
$1,000.
4. Complete the definition: Stock markets need to drop ___% from a recent peak to enter a bear market.
5. Where did Adidas test the foam particles that comprise its Boost shoes’ midsoles last weekend?
Answers: 1.
$15 billion to airlines after 9/11; $700 billion to banks during the
2008 financial crisis; $17 billion to automakers following the ‘08
crisis 2. Wells Fargo CEO Charles Scharf 3. MSCHF did not make a site
called “All the Memes” 4. 20% 5. Outer space
|
|
|
Giphy
|
Don’t forget to take a minute for yourself today. Now go wash your hands.
|
|
|---|
-
Airline stocks continued to take a beating following temporary restrictions President Trump placed on some travel from Europe.
-
Starbucks is prepared to limit seating and only keep drive thrus open to maintain social distancing, CEO Kevin Johnson said.
-
Auto sales in China fell 82% year-over-year in February.
-
Airbnb bookings are nosediving in major cities around the world, the WSJ reports. Meanwhile, Airbnb nearly doubled its losses in Q4.
-
JPMorgan CEO Jamie Dimon has been discharged from the hospital following heart surgery. “He’s doing very well,” per a company memo.
|
|
SPONSORED BY PANERA BREAD®
|
I’ve been drinking so much great coffee because I subscribed to Panera’s new $8.99 per month coffee program this coffee
is fantastic and I only spend $8.99 a month on it which is shocking for
such great coffee I’m drinking SO MUCH COFFEE and it only costs me
$8.99 and it’s PHENOMENAL COFFEE and YOU CAN GET IT FOR $8.99 A MONTH.
|
|
|
Dontcha know: Good things are still happening in the world. Here are a few…
- A second patient has been cured of HIV
- Chipotle is offering free delivery March 15–31
- A new Dr. Seuss book will be published, after being found in the late author’s home
|
|
|
Did we ask for our fifth birthday to fall on a week like this? No.
Are we still going to celebrate? Can't think of a better time.
How we’re celebrating: This week, we’re giving away Brew socks to every reader who refers 5 friends to the newsletter.
But—and
here’s where it really gets exciting—we sneakily put a golden ticket
into one package of socks. This golden ticket means one lucky reader
will win $5,000 in cash.
First things
first, though—you need 5 new referrals using your unique link. The
deadline is approaching fast, so get started now.*
Share to Win
|
|
|---|
|
Yesterday,
we asked you to share some funny WFH stories to help us all ride out
the coronavirus together. Many of them were unfortunate wardrobe
malfunctions ("I got out of the shower, jumped on the call, and forgot
to turn off my camera"). Here are some others:
- “Since working
from home, I found out my neighbor always walks his dog into my yard for
Spot's afternoon poo. Thanks Chuck.”—Ben from Fresno, CA
- “Day one of WFH
for two weeks with my boyfriend (we work together). At his 9am meeting
with 150 salespeople, one of the sales reps forgot to turn off his
camera while the VP was speaking and took a very big hit off his vape
pen that was very much not tobacco.”—Anonymous from who knows where
-
“Being on a 1:1 client consultation Zoom call and my 4-year-old
yelling from the bathroom ’Moooom I'm done pooping can you wipe my
buttttt?’
 "—Alaina from Wilmington, NC
We're keeping the lines open. If you have a wacky work from home story, share it here.
|
|
|
What do the following words have in common?
Assess
Banana
Dresser
Grammar
Potato
Revive
Uneven
Voodoo
|
|
- A brand new pair of Brew socks
- A chance that when you open that package of socks, there’s a golden ticket worth $5,000 in there.
You have until Sunday at midnight. You'll get an email on Monday if you qualify.*
Hit the button below to start sharing.
Share to Win
*See the terms and conditions of the giveaway here.
|
|
You can take the first letter, move it to the end of the word, and you'll get the same word when read backwards.
|
|
I AM A REPUBLICAN BORN AND BRED
IN AMERICA .I BELIEVE IN EQUALITY AND JUSTICE AND THE CONSTITUTION OF THE UNITED STATES.I SERVED IN THE UNITED STATES AIR FORCE
MAJORED IN GEOLOGY AND MUSIC AND WENT TO ANGELO STATE IN SAN ANGELO, TEXAS
No comments:
Post a Comment