washingtonpost--2020-05-14--U.S. Jobless Claims in Millions Again, Connecticut Corrects Data

With the latest numbers , a total of about 36.5 million applications for unemployment insurance have been filed since the virus began shutting down businesses in mid-March .
That ’ s close to the level of all claims filed during the last recession , which ran for 18 months .
Continuing claims -- the total number of Americans already receiving unemployment benefits -- increased to a record 22.8 million in the week ended May 2 .
That sent the insured unemployment rate , measuring this figure as a share of the total eligible labor market , to 15.7 % for @ @ @ @ @ @ @ continuing claims was the smallest in seven weeks .
California ’ s continuing claims for the week ended May 2 plummeted to 2.87 million , cutting almost in half the number of people on benefits in the most populous state in just one week .
That decline was well beyond other places for the period , with most states reporting increases .
The drop appeared to at least partly reflect the state ’ s biweekly filing schedule for aid recipients .
The worse-than-expected data underscore the ongoing devastating impact of the coronavirus as @ @ @ @ @ @ @ and concerned Americans stay inside rather than spend .
Federal Reserve Chairman Jerome Powell on Wednesday outlined a more-troubling economic scenario posed by the possibility of mass bankruptcies and unemployment .
“ Long stretches of unemployment can damage or end workers ’ careers as their skills lose value and professional networks dry up , and leave families in greater debt , ” Powell said in remarks to a virtual event hosted by the Peterson Institute for International Economics .
On a non-seasonally adjusted basis , Connecticut reported the most claims .
Georgia , @ @ @ @ @ @ @ each had more than 200,000 in filings , though the change from the prior week wasn ’ t as large .
Claims under the federal Pandemic Unemployment Assistance program -- which expands benefits to individuals not typically eligible , like gig workers -- totaled about 842,000 last week , compared with 1 million the prior week .
Those numbers are also non-seasonally adjusted .
Continuing claims under the program were 3.4 million as of April 25 .
While the claims indicate Americans are able to at least file for benefits as they lose @ @ @ @ @ @ @ ’ s less clear how many are actually seeing the funds .
Some states have reported delays in approvals and payments , while many people -- after glitches and delays -- haven ’ t received further information or benefits .
Some states , including Georgia , Pennsylvania , Florida , and Arizona , began to let businesses reopen and have generally eased restrictions in recent weeks .
It ’ s likely still too early to gauge the impact on the local economy and labor markets , though , as many people are still @ @ @ @ @ @ @ still at unprecedented levels , weekly claims have been decelerating after hitting 6.9 million at the end of March .
Powell also said Wednesday that the unemployment rate is likely to peak in a month or two , but will take time to decline as businesses reopen slowly and there ’ s permanent scarring in the economy .
“ A drop in continuing claims would provide an even more compelling signal of inflection , with those unemployed starting to be rehired , ” Bloomberg chief U.S. economist Carl Riccadonna wrote in a note @ @ @ @ @ @ @ not occur for at least a few more weeks , particularly with initial claims still well north of 1 million .
”


washingtonpost--2020-05-14--Analysis | The Pandemic’s Gender Bias Needs Urgent Fixing

As the coronavirus pandemic continues , Bloomberg Opinion will be running a series of features by our columnists that consider the long-term consequences of the crisis .
This column is part of a package envisioning the future of work .
For more , see Sarah Green Carmichael on the resilience of open offices , Justin Fox on what jobs will and won ’ t change and Stephen Mihm on worker protests.It is well established by now that the deadly coronavirus is anything but a “ great equalizer.
” Instead , large swaths of the population are confronting threats — both @ @ @ @ @ @ @ — that if left unchecked could deepen existing divides.Take the gender gap .
Before the pandemic struck , women already faced a century-long wait to reach parity with men , a daunting prospect that now risks becoming further out of reach if the economic disparities unleashed by the crisis are ignored .
As the health emergency abates , governments , big business and investors have the opportunity to refocus their attention on previous goals , such as aiming to reach gender equality.Women are particularly exposed to this crisis .
They are on the @ @ @ @ @ @ @ itself , making up 70 % of global healthcare workers and as much as 95 % of long-term care workers , according to the Organization for Economic Cooperation and Development ( OECD ) .
But not only are women putting their lives at risk to save others — they also make up the majority of employees in parts of the economy that have been hardest hit by lockdowns .
From leisure to hospitality to retail , entire industries in which women make up a greater share of the workforce have been brought to @ @ @ @ @ @ @ likely to hold temporary and part-time positions , the types of jobs employers are most likely to cut first in a downturn .
Across the U.S. , the cost to female jobs is already visible .
The latest unemployment figures show that women held 55 % of the 20.5 million jobs lost last month .
Women ’ s share of all unemployment claims filed between March and April 11 ranged from 53 % in Wyoming to as high as 67 % in Alabama , according to nonprofit journalism organization The Fuller Project .
@ @ @ @ @ @ @ made up the bulk of the layoffs.If recent history is any guide , the deepest recession of our lifetimes could hurt women ’ s economic prospects for many years to come .
In the aftermath of the global financial crisis , men bore the brunt of the job losses in Europe and the U.S. , leading some to dub the economic contraction the “ man-cession.
” Male-dominated manufacturing and construction industries suffered the biggest blows.But as Aliya Hamid Rao , a sociology professor at Singapore Management University , has found , women took @ @ @ @ @ @ @ last downturn .
That ’ s partly because crises tend to reinforce the idea that men are responsible for putting bread on the table whereas women take care of the family , she has said .
So women typically take on a greater share of the unpaid housework , further hampering their return to , and progress in , paid employment .
Rao ’ s study of professionals showed that even when men were unemployed and their female partners were the ones working full time , men still would not shoulder a greater @ @ @ @ @ @ @ divisions of household labor in the pandemic era show not much is changing .
According to a survey of 2,200 Americans , carried out during the April lockdown for the New York Times , 70 % percent of women said they are now either solely or mostly responsible for housework , and 66 % said they are handling childcare , in line with analysis from before the pandemic .
Though men in the recent survey disagreed — only 20 % said their partners are mostly responsible for the unpaid household labor — research @ @ @ @ @ @ @ more accurately.Governments so far have been rightly preoccupied by tending to the immediate health needs of their populations and their financial survival .
From household checks to loans and grants to companies , the scale of the fiscal responses we ’ re seeing around the world are without precedent .
Companies too have mostly sought to shield their employees from unnecessary exposure to the virus , with the majority of office jobs relocating to homes and some firms also pledging not to cut staff.But as countries begin planning their exits from lockdown , @ @ @ @ @ @ @ acknowledge and address the economic struggles women face.To begin with , there should be a simple but effective re-evaluation of how we value female-dominated healthcare work , beyond calls to show our appreciation with rounds of hand-clapping .
The financial conditions of health and social workers in some countries are in need of improvement .
In Portugal and Spain , pay for nurses fell after the sovereign debt crises of the early 2000s and have only slowly recovered , according to the latest OECD data .
The same study shows that pay for @ @ @ @ @ @ @ % between 2010 and 2017 , while inflation rose about 15 % .
The industry needs higher pay .
For instance , the Institute for Public Policy Research , a think tank , argues U.K. health employees should receive Covid-19 bonuses , as well as better statutory sick pay and a higher real living wage .
As governments shift from handing out financial lifelines to restarting and rethinking their economies , they could tie aid to goals of sustainability , such as improving the balance of women in companies ’ leadership.Notwithstanding the clear @ @ @ @ @ @ @ in the U.S. and the U.K. still make up fewer than 30 % of board members and 10 % of CEOs among the biggest companies .
At a time in which inequity threatens to undermine societies , closing the leadership gender gap is more important than ever .
And gender-diverse boards are more likely to steer their firms to look after stakeholders , not just shareholders .

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washingtonpost--2020-05-14--Reality TV Figure Bought Rolex With PPP Funds, U.S. Alleges

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washingtonpost--2020-05-14--Analysis | The Covid-19 Vaccine Fight Is Getting Ugly

Already , the French government is hauling its national drug-making champion Sanofi over hot coals after the company suggested that the U.S. — and not Europe — would be first in line to get access to its proposed vaccine if it works out .
The reason , according to Chief Executive Officer Paul Hudson , is that the U.S. was first to contribute funding to the project .
“ Unacceptable , ” came the reply from French Junior Economy Minister Agnes Pannier-Runacher .
The head of Sanofi ’ s French business quickly sought to defuse the tension by promising that @ @ @ @ @ @ @ to all.
” But this debate isn ’ t going away .
French President Emmanuel Macron plans to meet with Sanofi officials next week to discuss the issue .
Elsewhere , AstraZeneca Plc is prioritizing the U.K. in its own vaccine project .
On the surface , Sanofi ’ s stance seems logical enough .
The cost of researching a vaccine is between $ 500 million and $ 1 billion , according to a 2015 paper by physician and consultant Stanley Plotkin .
If the U.S. taxpayer is willing to foot the bill @ @ @ @ @ @ @ of the reward ?
Drugmakers know this is a vaccine that will have to be sold in bulk , and not at an eye-wateringly expensive price — Johnson & Johnson , for example , says its own plan is to produce the one it ’ s working on at cost , or about 10 euros ( $ 10.81 ) .
Given some kind of prioritization is going to be necessary as production ramps up to millions of doses , it may as well start with those that funded the project , according to @ @ @ @ @ @ @ Bloomberg Intelligence .
But Paris has a point , too .
Sanofi ’ s vaccine is not produced in a vacuum .
The company benefits from European shareholders , employees , factories — and tax credits .
It ’ s worth noting that research and development funding in France is the second-most generous as a share of GDP among countries tracked by the Organization for Economic Cooperation and Development , at 0.4 % .
( The U.S. comes in tenth . )
That ’ s largely thanks to tax-incentive schemes awarded to companies @ @ @ @ @ @ @ million euros every year .
French taxpayers might wonder why that shouldn ’ t be taken into account .
Simply rapping Sanofi on the knuckles isn ’ t going to be a durable solution , though .
The risk is that , if countries take turns in shoving their way to the front of the line , the result will be a kind of vaccine trade war along national lines .
That would make a mockery of the World Health Organization ’ s plea to view vaccines as a common public good , @ @ @ @ @ @ @ for masks and medical equipment that set European countries against each other .
If France were to get hold of a vaccine first , would Italy or Greece get the same access ?
It would be more productive if European countries backed up their indignation by working together more to take on the financial risk of vaccines .
Then they could divide the spoils more equally .
There is no reason why the European Union ’ s 27 countries couldn ’ t come up with their own version of the U.S. ’ s @ @ @ @ @ @ @ match the Trump administration ’ s deep pockets .
The EU ’ s recent $ 8 billion vaccine fundraising is one good example , and its joint procurement vehicle for medical equipment and vaccines another .
The broader the cooperation , the more chance countries have to level the playing field with big pharmaceutical companies .
Drugmakers have for decades focused on lucrative new treatments protected by patents , often putting them out of reach of people in developing countries .
New organizations are fighting this : The United Nations-backed Medicine Patent Pool @ @ @ @ @ @ @ HIV drugs for manufacture by generics companies at lower cost .
The Coalition for Epidemic Preparedness Innovations has also brought together countries to fund vaccine research .
The pandemic has revealed a lot of problems in the pharmaceutical supply chain , from a dependence on emerging markets for vital drug supplies to a lack of interest in potentially unprofitable vaccine research .
If the opportunity here is to ensure life-saving drugs get the funding they need , taxpayers around the world — not just in France or the U.S. — should also get @ @ @ @ @


washingtonpost--2020-05-14--Analysis | Is It Smart to Spend Billions on the Future?

Toyota is doing what it hasn ’ t during previous crises that damaged supply chains and businesses around the world .
In a speech during this week ’ s earnings call , President Akio Toyoda recalled the four difficult years after the financial crisis , made worse in 2011 by a devastating earthquake and tsunami in Japan and flooding in Thailand .
The company cut costs and investments and grew substantially leaner , but “ lost necessary muscle.
” Toyoda said that “ because we stopped everything to stop the bleeding , including investing in the future , we ended @ @ @ @ @ @ @ company composition.
” In the past couple of years , Toyota has splashed out billions on the future of cars .
The investments range from $ 1 billion in Southeast Asia ’ s largest ride-hailing service , Grab Holdings Inc. , the largest by an automaker , to $ 500 million in Uber Technologies Inc .
It also has set up a joint venture with Softbank Corp .
Meanwhile , the Toyota Research Institute and its Advanced Development offshoot have tried to go big into fields like artificial intelligence .
So far , @ @ @ @ @ @ @ the exact returns have been , and it will stay that way while Covid-19 has people locked down and driving less .
As long as the pandemic and its economic devastation mean lost jobs and tighter purse strings , will consumers really be ready to spend on electric cars or fancy gadgets ?
It seems more likely that they ’ ll push off upgrades for later .
No one is in the mood to spend , except , well , Toyota .
Sure , outlays now , in theory , set the company @ @ @ @ @ @ @ .
But Toyota hasn ’ t necessarily shown technology prowess in the past , so it ’ s hard to say whether it will be able to going forward .
The automaker could very well catch the future wave just right , or mistime it terribly.Corporate liquidity has become a prized commodity globally .
To bolster its already-strong balance sheet , Toyota said it has signed up for a 1.25 trillion yen loan , a prudent move .
But how does that square off against the planned spending , which is almost as @ @ @ @ @ @ @ before the pandemic , pressure to keep up with increased connectivity and autonomy was weighing on carmakers ’ balance sheets .
Moody ’ s Investors Service noted after downgrading Toyota in April that accommodating new investments means companies “ are required to save costs elsewhere.
” There seem to be two Toyotas , as I have noted previously .
One is focused on cost-cutting and operating within the confines of a struggling world market , and the other is trying to spend into the future .
The first enables the second .
Two @ @ @ @ @ @ @ company would hone the power of cost reduction “ to strengthen earning power and expand our investments in new technology and new fields.
” Slimming down , especially now , is difficult .
It ’ s unclear how Toyota classifies all of these investments , and whether they fall under R & D outlays , but costs as a portion of net sales have been edging up on a quarterly basis , despite tight control .
Meanwhile , the Covid-19 production line challenges – when to stop , when to open – remain @ @ @ @ @ @ @ the core business undergoing deep change , it ’ s hard to justify large expenditures for unknown returns .
Investors may have the same problem .


washingtonpost--2020-05-14--Analysis | India Needs to Fire More Bullets Now, Aim Later

All told , Modi ’ s coronavirus package adds up to 10 % of India ’ s gross domestic product .
Roughly half of it is already in the rear-view mirror , while victory over the pandemic and a full reopening of the economy remain elusive .
Of the remaining amount , about $ 40 billion would be government-guaranteed credit to small firms .
Another $ 10 billion is earmarked to backstop shadow banks , according to measures Finance Minister Nirmala Sitharaman rolled out Wednesday .
Add the $ 12 billion she promised for power utilities to clear their bills @ @ @ @ @ @ @ India is trying to reflate a shrinking $ 2.7 trillion economy with only $ 62 billion in freshly committed resources.This could yet double , as roughly a quarter of Modi ’ s package is still to be unveiled .
More steps are on their way , the finance minister said .
Among other measures announced Wednesday some , such as relaxing the classification of micro , small and medium-sized enterprises , were overdue .
However , scrapping global tenders for government contracts worth $ 25 million could further tarnish India ’ s checkered @ @ @ @ @ @ @ ’ t included in my stimulus tally .
A $ 6.5 billion fund to provide equity funding to smaller businesses seems both too complicated to set up in the short run and too prone to cronyism when it finally gets going .
A separate $ 2.5 billion plan to give businessmen debt they can plow as equity into stressed companies may be easier to execute , though private-sector lenders may not have the risk appetite to push the product .
As I have said before , a government guarantee for subsidized advances to @ @ @ @ @ @ @ Allowing even struggling non-bank financiers to make these loans should help the plan reach through to smaller cities and towns .
However , for the stalled credit engine to restart , firms need both new orders and the assurance of timely payments .
New Delhi is promising to clear its own payments fast , but that won ’ t be enough as long as India ’ s 28 states , at the forefront of battling the pandemic , are strapped for cash while struggling with a migrant worker crisis on top of a @ @ @ @ @ @ @ credit guarantee for shadow banks , overly centralized decision-making could get in the way .
Even before the crisis , funding was drying up for these lenders .
Now , forced to offer repayment moratoriums to their borrowers , they ’ re in dire straits , lacking the staying power that banks get from deposits.State support for their fundraising supplies a crucial missing ingredient in India ’ s financial system : trust .
However , if every guarantee proposal has to wait for the Finance Ministry ’ s approval , then the lifeline @ @ @ @ @ @ @ credit contagion .
Losing time to bureaucratic foot-shuffling is not a risk that India can afford when most activity is still shut and 27 million young people lost their jobs in April alone .
The $ 62 billion of spending won ’ t be enough .
In all probability , the economy will still shrink .
But even if fired first and aimed later , the fiscal bullets might still influence the depth and duration of the recession .
After all , sovereign guarantees will be invoked only when small businesses or shadow @ @ @ @ @ @ @ money .
The faster India can get lenders to push money out the door , the lower that risk will be .
Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services .
He previously was a columnist for Reuters Breakingviews .
He has also worked for the Straits Times , ET NOW and Bloomberg News .


washingtonpost--2020-05-13--Analysis | Wanted: An Exchange Chief With Conflict Management Skills

Li ’ s successor will have to carry forward his work of deepening ties with the Shanghai and Shenzhen exchanges , while keeping foreign investors happy by improving corporate governance .
It ’ s a delicate task .
The mainland Chinese markets are competitors as well as partners .
Hong Kong is trying to position itself as the venue of choice for Chinese technology companies seeking to go public , especially as the U.S. market becomes less hospitable .
Shanghai and Shenzhen are undertaking their own initiatives to persuade companies to list at home .
Shanghai has been particularly aggressive @ @ @ @ @ @ @ destination for initial public offerings in 2020 ( albeit without a single overseas listing ) , a title that Hong Kong has held for years .
While its Star market aimed at tech companies has yet to attract any big names , competition is heating up .
Shenzhen , the southern city that borders Hong Kong , is preparing to emulate Shanghai by moving to a registration-based IPO system and scrapping limits on price movements on its Nasdaq-like ChiNext board .
That will put a premium on finding a CEO who can match @ @ @ @ @ @ @ prowess .
With international expansion seemingly blocked off after the LSE rebuff and the coronavirus outbreak , HKEX ’ s growth will continue to rely heavily on cooperation with Chinese exchanges and regulators .
Expanding the stock-trading pipes that Li established with Shanghai and Shenzhen is one route .
HKEX scored a coup when New York-traded Alibaba Group Holding Ltd. , China ’ s biggest company by market value , raised $ 13 billion in a Hong Kong secondary offering last November .
Some of the sheen came off the celebrations when it @ @ @ @ @ @ @ included in the so-called Stock Connect programs , blocking mainland-based investors from trading the shares .
Getting secondary listings on the Connect should be a priority — especially given Hong Kong is looking to woo other U.S.-listed Chinese companies such as JD.com Inc .
There are further opportunities for expanding the cross-border trading links , including letting mainland investors buy overseas bonds .
Currently , the three-year-old Bond Connect is a one-way system , allowing Hong Kong investors to buy mainland securities but not vice-versa .
The next HKEX chief may also push @ @ @ @ @ @ @ to be admitted to the connect programs .
At the same time , Hong Kong needs to keep its international flavor if it ’ s to appeal to Chinese punters who want access to global investments .
HKEX slowed efforts to attract foreign listings in recent years , as volumes dimmed , having drawn some notable names including Italian luxury house Prada SpA .
It should restart these .
Hong Kong ’ s role as an international market depends critically on sustaining confidence among global investors that it is relatively clean and well @ @ @ @ @ @ @ Kong exchange bowed to the commercial imperative by opening the door to dual-class share structures and presided over a market where bad behavior among small-caps was endemic .
His replacement will need to change Hong Kong ’ s reputation as a playground for short sellers such as Carson Block ’ s Muddy Waters and Gillem Tulloch ’ s GMT Research Ltd .
Managing these push-pull conflicts — moving closer to China while becoming more international , building up business while improving governance — will take some dexterity .
Li has said he may @ @ @ @ @ @ @ if a successor is found .
An early exit is far from assured .


washingtonpost--2020-04-22--Analysis | A New Org Chart Won’t Stop the Next Pandemic

Our definition of national security will broaden , certainly over the pinched confines of the Trump administration , and probably even over the more expansive definitions of the Clinton and Obama administrations .
What had been metronomically intoned as the first priority of keeping Americans safe will no longer mean an expeditionary military , or even one deployed at our borders ; it is likelier to mean funding posts for health-care professionals abroad , developing better forecasting tools to map disease spread or fielding intelligence agents who are trained in medicine and can infiltrate foreign laboratories as researchers .
The @ @ @ @ @ @ @ reorganize the federal government and create vast new bureaucracies to oversee the mission of pandemic preparedness .
Expect a resurgence of earnest appeals for “ whole-of-government operations ” that we have proven incapable of in 20 years of warfare .
Yet the inability of the U.S. government to anticipate and prepare for the Covid-19 pandemic is not a failure of governmental design , or even of intelligence , but of imagination and management by its current stewards .
Protecting Americans against future , even unexpected , threats doesn ’ t require a sweeping @ @ @ @ @ @ @ does require committing to , investing in and making effective use of the capabilities we already have .
The administration did none of those things .
As with so many other elements of the National Security Strategy , the president doesn ’ t appear to have read it , and certainly isn ’ t carrying out policies advancing those objectives .
To the contrary : The administration ’ s budgets have consistently proposed cutting funding for science research , the National Institutes of Health , and international organizations essential to detecting and containing @ @ @ @ @ @ @ , the administration published a biodefense strategy in 2018 .
As with the National Security Strategy , it is reasonable enough on paper , but little evidence suggests that it guides policy .
The key to effective government action is routine information exchange and interaction among agencies that will need to cooperate in crisis , and establishing decision processes so someone is in charge .
A February 2020 Government Accountability Office evaluation , however , concluded that the biodefense strategy had “ no clear processes , roles , or responsibilities for joint decision-making.
@ @ @ @ @ @ @ have utilized the biodefense strategy in crafting its Covid-19 response : Instead of relying on the institutional bases for organization , President Trump created multiple ad hoc task forces that have led to a shambolic policy process and the dissemination of dangerously inaccurate information .
As James V. Lawler , an infectious diseases specialist and public health expert at the University of Nebraska , put it in an email to fellow scientists tracking the pandemic and the government ’ s response , “ We have thrown 15 years of institutional learning out the @ @ @ @ @ @ @ intuition.
” Adequate authorities exist in the federal government to protect Americans from global pandemics : They reside in the Department of Homeland Security and the Department of Health and Human Services – either one of which was well-positioned to lead a government-wide effort ( indeed , the biodefense strategy gives HHS the lead role ) .
The Department of Veterans Affairs can also make a major contribution with its medical professionals and facilities .
The Department of Defense can complement civilian efforts : National Guard personnel under the authority of governors can @ @ @ @ @ @ @ can efficiently distribute federal supplies ( logistics is the true brilliance of the American military ) , and provide medics and medical facilities like hospital ships .
Putting the military in charge , though , risks marginalizing the civilian agencies best suited and responsible for managing these challenges , and diverting our military from its principal responsibilities in ways that could tempt our foreign adversaries .
And as our definition of national security expands and our resources for the Defense Department are constricted , America will still need to shape the world in @ @ @ @ @ @ @ on a wider array of tools .
President Trump ’ s efforts to cut 30 % of the State Department budget and his cancellation of USAID funding for pandemic early warning programs are particularly egregious , but prioritizing the military over other elements of national power has been a decades-long trend .
We have seen a huge migration of inherently civilian tasks into the military , not because we are at war , but because we shortchanged those government functions that give us strategic depth — the ability to see what ’ s @ @ @ @ @ @ @ with resources larger than just our own .
We have also expressed toward our civilian national security agencies what President George W. Bush ( in a different context ) described as “ the soft bigotry of low expectations.
” We don ’ t demand they prove as capable as our military , nor do we set them up to be successful .
American diplomats are often excellent because they can be thrown in the deep end of the pool and they won ’ t drown .
But we never teach them to swim @ @ @ @ @ @ @ training resources on foreign-language skills , relying on mentoring to teach management and other essential professional development skills .
Our diplomats are generalists ; the nature of our current challenge shows we need them to have specialized education and training .
We need a G.I .
Bill for America ’ s diplomats , and probably also for civil service professionals in HHS and other agencies .
The most consequential improvement to U.S. national security would be to take more seriously the professionalism of our civilians in the departments of Health and Human Services @ @ @ @ @ @ @ Federal Emergency Management Agency .
We should require of them the kind of career-long education and training we provide to our military .
In the State Department , for example , there is next to no required additional training after the initial orientation and before becoming an ambassador .
If you ’ re going to serve in a country or region known for incubating pathogens , for instance , you should be given the knowledge , the inter-agency contacts and the tools to respond effectively before you arrive at post , rather than @ @ @ @ @ @ @ define the skills civilian agencies need , recruit for them , refine them by training and test for proficiency .
And we should adjust the balance of our investment to give them as broad a range of tools as we provide our military forces .
From Germany to South Korea and Taiwan , the markedly better pandemic outcomes that other governments have achieved should be cause for humility and national reflection .
Strengthening our civil service — its competence , integrity , skills and scope for action — is one of the best @ @ @ @ @ @ @ .
Rebuilding this source of national vitality could also reset America ’ s trajectory , revivify its merits .
As Teddy Roosevelt wrote when he was head of the U.S. Civil Service Commission , civil service reform is “ the most powerful implement with which to work for the moral regeneration of our public life.
” Given the sorry and now disastrous events of the last three years , that ’ s no less true today .
The best thing that could happen in post-coronavirus America is that competence and even expertise come @ @ @ @


washingtonpost--2020-04-22--Analysis | Thinking Big About Covid-19 and Monetizing Public Debt

But as overseas capital and international trade became more important than foreign aid , the yearning for permanent low inflation won out .
In 1997 , the Indian government gave up its power to get any number of its treasury bills bought by the central bank , restricting itself to a temporary overdraft .
For financing , it had to go to the bond market .
In 2015 , the bank moved to inflation targeting , raising hopes that the rupee would one day be used and held internationally , giving India a durably lower cost of capital .
That @ @ @ @ @ @ @ stranded without jobs or pay .
Firms are failing , lenders are piling up bad credit , and state governments are running out of funds .
It ’ s crucial to secure financing for at least 13 % of gross domestic product in federal and state deficits .
That ’ s a $ 342 billion shortfall .
The government is unlikely to lean on the Reserve Bank of India for funding until at least September , the Business Standard reported Tuesday .
Yet with foreign investors fleeing emerging markets , pretending that funds @ @ @ @ @ @ @ delusional .
C. Rangarajan , the RBI governor who signed the 1997 agreement to end back-door monetization of public debt , believes its return may be inevitable.The right way to bring it back is by the front entrance .
Stealth operations , like the RBI propping up a sovereign bond auction by asking dealers to buy on its behalf , according to a news report by Cogencis , are pointless subterfuge .
It ’ s time the authority openly bought notes from the government by printing new money .
More than a grand @ @ @ @ @ @ @ , which the middle managers in the Finance Ministry and the RBI need to fill in .
For a start , Prime Minister Narendra Modi ’ s government should sell stakes in every company that ’ s on the block for privatization — as well as some that aren ’ t — to a special purpose vehicle run by , say , the National Investment and Infrastructure Fund Ltd. , which has demonstrated fund-raising clout with global investors .
The SPV will finance the purchase by issuing sovereign-backed debt .
When market conditions @ @ @ @ @ @ @ and redeem the bonds .
Whatever is raised should be deployed in an infrastructure plan that has health at its centerpiece .
This will boost construction and create jobs .
Subsidized loans should be made available , but only to businesses that keep at least as many people on their payrolls as they had in February and make suppliers ’ invoices available on a bill-discounting platform so vendors can get paid .
It ’ s the workers and small and mid-size enterprises that are getting hammered by large companies passing on the pain @ @ @ @ @ @ @ , such as airlines , the government will have to infuse equity .
It ’ s time to establish credibility with action , and not by observing institutional niceties .
Excessive virtue-signaling by Japan serves as a cautionary tale .
After its 1980s asset bubble burst , the monetary authority got tangled up in unconventional policies .
Yet , the Bank of Japan bound itself to a “ bank note rule , ” vowing not to own more government bonds than could be repurchased by the private sector with the currency in circulation @ @ @ @ @ @ @ s April 2013 bazooka to demolish the illusion that the BOJ was providing a temporary shelter for public debt — not swapping it with money forever .
India ’ s central bank also needs to think beyond cutting interest rates and flooding banks with liquidity .
In McKinsey & Co. ’ s estimates , gross domestic product this year is on track to shrink by 2 % to 3 % .
Deeper declines aren ’ t ruled out .
The jobless rate is estimated to be near 23 % .
With no risk @ @ @ @ @ @ @ items , there ’ s no need to be coy about monetizing deficits .
Being smart will do .
Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services .
He previously was a columnist for Reuters Breakingviews .
He has also worked for the Straits Times , ET NOW and Bloomberg News .


washingtonpost--2020-04-22--Analysis | How a Deluge of Downgrades Could Sink the CLO Market

As CLO managers make their required disclosures over the next several months , the scale of the problem is expected to unfold .
By mid April , some analysts were expecting as many as 1-in-3 CLOs may have to limit payouts to holders of the riskiest and highest-returning parts of their structures .
Others say the pain could quickly spread to less risky tranches , too .
There were warning signs : Key parts of CLOs were conspicuously absent from the rally that lifted U.S. stocks in April .
Lower-rated bonds in the almost $ 700 billion market remained deeply @ @ @ @ @ @ @ cents on the dollar .
CLOs fared well in the 2008 crisis , with none of the highest-rated tranches defaulting .
But they ’ re a perpetual worry because they ’ re forged from the debt of companies with less-than-stellar credit scores .
These are companies with a lot of debt relative to income and cash flow , and are thus among the most vulnerable to the economy ’ s collapse .
A CLO is a package of some 150 to 300 so-called leveraged loans , so an individual downgrade likely wouldn ’ @ @ @ @ @ @ @ to pay investors .
But a deluge of them around the same time -- as is happening now -- certainly could , especially when loans are slashed to the lowest rating tier of CCC or Caa .
Most CLO structures limit the worst-rated loans to a maximum of 7.5 % of the portfolio , the so-called CCC bucket .
The limit is designed to protect investors from managers who may otherwise be tempted to take outsized bets to juice returns by loading the portfolio with higher-yielding , lower-rated loans .
Any CCC loans @ @ @ @ @ @ @ to mark-to-market rules , which means they ’ ll be counted at the current trading value rather than at par , reducing the value of the entire portfolio .
That puts the CLO at risk of failing a critical test that measures asset-coverage , also known as the over-collateralization , or OC test .
Failing that test cuts off cash-flow streams to certain investors -- a mechanism designed to protect those who purchase less-risky segments of the CLO bonds .
Maybe .
Ratings companies were roundly criticized during the last financial crisis in @ @ @ @ @ @ @ the alarm over deteriorating credit .
This go-around they are being far more proactive and have embarked on an unprecedented downgrade spree .
As the pandemic throttled the global economy , S & P Global Ratings and Moody ’ s Investors Service have cut ratings on some 20 % of the loans that are housed in CLOs .
The loan downgrades have come so fast , one after another , that Stephen Ketchum of Sound Point Capital Management likened it to a spill “ at the Daytona 500 , where the cars are @ @ @ @ @ @ @ of loan downgrades has been so frenetic that it threatens to overwhelm safeguards on CLOs that are put in place to ensure the financial strength of the securities .
Already the vast majority of CLOs have blown past the CCC cap , up from a mere 8 % that were breaching buckets earlier this year , according to research by Bank of America analysts .
In addition , some 20 % of CLOs that submitted their monthly reports indicated that they are failing tests and will be turning off some cash flow to @ @ @ @ @ @ @ that a few were even failing tests that measure asset coverage of the highest rated AAA/AA tranches , according to an April 20 report from the bank .
Portfolio managers can be left with two unpleasant options : Dump lower-rated loans at fire-sale prices or cut cash payments to some of their investors .
In the first case , selling loans can cause a CLO to crystallize losses -- a likely event because lower-rated loan prices are lagging .
The other path of turning the cash spigot off and shifting to payment-in-kind , @ @ @ @ @ @ @ with more debt , can ravage equity returns , depress lower-rated CLO bonds and cut off a substantial portion of the CLO manager ’ s fees .
The barrage of loan downgrades will prompt ratings companies to also downgrade the securities sold by the CLOs themselves , which are separate from the ratings on the underlying loans .
On April 17 , Moody ’ s surprised the market by putting $ 22 billion of U.S. CLO bonds -- nearly a fifth of all such bonds it grades -- on a watchlist for a @ @ @ @ @ @ @ on CLOs have increased materially .
Some 40 % of those securities had investment-grade ratings .
Among the buyers of CLOs are so-called rating- constrained investors , such as banks and insurance companies .
If CLO bonds are downgraded -- particularly if they go from investment-grade to a junk tier -- investors may be forced to sell them or risk higher capital charges .
The turmoil has so far produced at least one winner .
Citigroup Inc. made more than $ 100 million in April trading a huge swath of the highest-rated CLOs @ @ @ @ @ @ @ need of liquidity to unload securities at steep discounts .
Some investors including Napier Park Global Capital and Neuberger Berman are prepping new credit funds specifically designed to take advantage of the dislocation in lower-rated CLO bonds .
If history is a prelude to the future , there will be opportunities to buy beaten-up loans and produce equity returns to rival those seen following the financial crisis .
So far , they aren ’ t fleeing en masse .
CLOs lock in capital for years , and aren ’ t subject to withdrawal @ @ @ @ @ @ @ secondary market , where investors can swap positions and leave the CLO intact .
But the onslaught of downgrades and fears of impending defaults have quashed new deals .
Deutsche Bank cut its forecast for new U.S. CLO sales in 2020 by 40 % to $ 55 billion .
The cascade of downgrades signaled that a wave of defaults is coming .
Analysts have hiked their expectations for how many of the underlying loans will sour , and lowered their forecasts for how much might be recovered from each bad loan .
U.S. @ @ @ @ @ @ @ , perhaps surpassing heights of about 15 % in the last financial crisis .
Loan recovery rates could be slashed to 60 cents or less , far lower than past norms .
But history provides only a limited guide : The market for leveraged loans has exploded in recent years , with U.S. total issuance ballooning to $ 1.2 trillion as the market became the go-to place for private equity firms to finance debt-fueled buyouts .


washingtonpost--2020-04-22--Analysis | China’s Nips and Tucks Won’t Stop Leverage Buildup

What the cuts are doing , however , is creating a differential between the near-term and long-term cost of money .
That incentivizes behavior that clogged up China ’ s financial plumbing in the first place .
Think of the peak of the shadow banking boom in 2016 , when lesser rates in the overnight and short-term markets prompted institutions and companies to borrow and then invest the proceeds in corporate bonds and other assets over a longer period for leveraged returns .
That ’ s started happening .
In the last two months , one such investment — structured @ @ @ @ @ @ @ are borrowing in the short-term markets and redepositing the money in banks .
About a fifth of corporate lending , around 1 trillion yuan to 1.5 trillion yuan ( $ 141 billion to $ 212 billion ) , is in such financial arbitrage investments , according to the Rhodium Group .
These products , typically priced as a spread over the underlying deposit rate , increased by 851 billion yuan last month , indicating a rise in speculation .
Let ’ s turn to the institutions .
Banks facilitate this activity to offer @ @ @ @ @ @ @ deposits .
They ’ re the main beneficiaries of the looser monetary policy : Short-term rates , in theory , allow banks that fund most of China ’ s financial system to reduce costs .
But some are more dependent than others on these rate cuts .
Big lenders are typically flush with liquidity from deposits .
Their smaller and more regional counterparts are not .
They rely on larger institutions to lend to them in the interbank market , or wholesale funding .
With all the jitters over the past year around @ @ @ @ @ @ @ , China ’ s Big Four ( 1 ) aren ’ t willing to lend to their lesser peers for long periods .
The surge in trading volumes in the overnight interbank market suggests that short-term borrowing to fund leveraged asset growth is gathering pace .
In the first quarter , small banks were the biggest issuers of structured deposits , and most of them were held by companies .
So what now ?
For one , bad behavior typically ends up more widespread and twisted in China ’ s financial system than @ @ @ @ @ @ @ fall and the economics on these trades work less well , banks will have to depend on third parties to help leverage returns .
That means non-bank financial institutions get involved , creating another layer of complexity .
Banks ’ claims on such institutions have started rising .
In the past , they acted as warehouses of bad risk and assets .
All too familiar : This is precisely how China ’ s shadow banking adventure became a labyrinthine mess .
Small banks face a deluge of bad loans as the Covid-19 impact @ @ @ @ @ @ @ ’ re now going to end up with more expensive and flighty funding .
Lending out more will be hard .
Meanwhile , the picture for real credit demand is muddied .
Companies may be borrowing short-term , but the cash isn ’ t all going to restart businesses .
Some of it is sitting in banks .
Credit isn ’ t ending up where it ’ s needed to revive China Inc. , and every yuan pumped in by the central bank becomes less effective .
One way out of the arbitrage @ @ @ @ @ @ @ , a long-discussed reform .
But doing that in the current environment would surely lead to instability , because no one wants to lose out on returns .


washingtonpost--2020-04-22--Analysis | The ECB Prepares the Way for Buying Junk Bonds

The biggest immediate question , as revealed by my Bloomberg News colleagues , is whether the central bank should relax its eligibility criteria to accept sub-investment grade debt as collateral in its funding facilities .
The ECB might also follow the U.S. Federal Reserve ’ s example and start buying junk bonds in its pandemic Quantitative Easing programs too .
As I ’ ve argued before , it makes sense to show a little love to some of the higher-quality junk-rated companies .
They employ plenty of people too .
This is the time for the ECB to get out @ @ @ @ @ @ @ the coming wave of credit-rating downgrades for European government and corporate debt to blunt its stimulus response .
Should Christine Lagarde ’ s institution really be barred from buying the bonds of companies and nations that have only fallen slightly below investment grade because of the pandemic ?
This might also be the right moment to increase the pandemic QE package .
Analysts at ABN Amro Bank NV reckon it could be raised without much difficulty by 500 billion euros ( $ 544 billion ) to 1.25 trillion euros .
While the European @ @ @ @ @ @ @ their fiscal package at a meeting on Thursday , the real heavy lifting will have to be done by the ECB , as usual .
The central bank signaled on April 7 that a loosening on junk-rated debt might be coming when it said it would “ assess further measures to temporarily mitigate the effect on counterparties ’ collateral availability from rating downgrades.
” Bloomberg News reported that this may be discussed in detail in a policy makers ’ call on Wednesday .
This would allow for a comprehensive plan to be unveiled @ @ @ @ @ @ @ meeting next week .
The situation is urgent .
S & P Global Ratings is set to review Italy ’ s BBB ( negative outlook ) rating on Friday .
The expected one-notch downgrade would still leave Rome on just the right side of the investment grade boundary , but it would push the debt of many other Italian issuers — effectively tied to their country ’ s rating — into junk .
That would create liquidity constraints in the Italian banking system if a raft of bank and corporate debt became ineligible @ @ @ @ @ @ @ .
This is far from being an Italian-only problem .
Bloomberg Intelligence points out there is more than 200 billion euros of European corporate debt that ’ s close to entering the “ fallen angel ” category .
There ’ s little the ECB can do to prevent the downgrades but it can soften the impact .
As the ECB already accepts as collateral Greek government debt , which is several notches below investment grade , surely the Rubicon has already been crossed .
The central bank is also buying Greek sovereign bonds @ @ @ @ @ @ @ s response by acquiring corporate bonds recently downgraded to junk ?
The Fed ’ s move tightened U.S. spreads on BB-rated debt by more than 300 basis points .
It would help lower corporate borrowing costs across Europe too .
That ’ s a noble aim .
As with the Fed , it ’ s a worrying thing for the ECB to be holding ever more risky credit .
But these are truly dangerous times for the economy .
We ’ ll just have to fall back on the hope that these are @ @ @ @ @ @ @


washingtonpost--2020-04-17--Giant U.S. Lenders Outpaced by Rivals in Small-Business Rescue

Such figures , just starting to trickle out of U.S. lenders , are bound to fuel more anger over the chaotic Paycheck Protection Program administered by the Small Business Administration .
They show the nation ’ s top bank , JPMorgan Chase & Co. , arranged more loans than any other , as one would expect .
But it was only several billion dollars ahead of some firms a fraction of its size .
The surprising success rates of regional and community lenders suggest businesses across the country got money based on which bank they happened to pick , rather @ @ @ @ @ @ @ line .
Many entrepreneurs were desperate to get assistance from the first-come , first-served program and were devastated this week to learn they won ’ t get help unless Congress allocates more funding .
“ Invitations to apply have been sent to more than 450,000 customers with a total notional loan amount of around $ 50 billion , which we stand ready to submit to the Small Business Administration for its acceptance , ” the San Francisco-based bank said .
That ’ s “ an amount comparable to our peers.
” Democrats and @ @ @ @ @ @ @ reach an agreement on expanding the program .
Mnuchin has signaled he wants to add $ 251 billion , while key Democrats have insisted on changes as well as another $ 250 billion to aid hospitals and state and local governments .
A report released by the SBA and Treasury on Friday showed that the most financing arranged by any bank on behalf of clients was about $ 14 billion -- roughly 4 % of the total available under the program so far .
The regulator didn ’ t name any banks , @ @ @ @ @ @ @ lender behind that figure .
PNC Financial Services Group , based in Pittsburgh , arranged roughly $ 9 billion in loans , according to a person with knowledge of the matter .
KeyCorp , Ohio ’ s second-largest bank , said it arranged about $ 7.8 billion .
Combined , they have less than three-quarters the number of branches as JPMorgan and only a fifth of its assets .
Executives at some of the country ’ s largest banks , speaking on the condition they not be named , have been expressing deep @ @ @ @ @ @ @ President Donald Trump ’ s administration on how to comply with the hastily prepared rescue program .
The SBA posted initial rules the night before the program went live early this month .
Big banks that paid billions of dollars in sanctions after the 2008 financial crisis for flaws or omissions in loan applications -- in that case , mortgages -- assumed paperwork submitted to the SBA would need to meet high standards , or they would risk getting in trouble again .
Wells Fargo has been under particular pressure to show that @ @ @ @ @ @ @ , executives at major banks told their employees to make sure that they had validated financial information from small businesses before submitting packets to the government .
Some were floored when the SBA posted a notice on its website on Tuesday , confirming that ’ s necessary but saying that “ lenders who did not understand that these steps are required ” didn ’ t need to withdraw applications already submitted .
That essentially gave an edge to lenders that had skipped that time-intensive step to get their customers ’ applications in first @ @ @ @ @ @ @ weight because they were more willing to act while awaiting additional information , said Paul Merski , an official at the Independent Community Bankers of America who oversees its work with Congress.
“ A lot of independent community banks did jump on the program very quickly -- just took on the risk without having all the guidance , ” he said .
“ Banks have to judge their own risk tolerance for these loans and the liability of getting stuck with bad loans if they didn ’ t do the paperwork properly.
” @ @ @ @ @ @ @ lender in 2019 , spent two weeks gathering payroll information from customers before the program even launched .
That may have helped it get applications approved .
The company declined to comment Friday on how many it processed or the total financing it arranged .
The firm initially ran up against a sanction imposed by the Federal Reserve in 2018 , capping the bank ’ s assets .
But even after the restriction was eased , the firm struggled to get application packets completed and submitted .
After years of getting faulted by @ @ @ @ @ @ @ managers were intent on building a system that complied with government rules .
“ Given the magnitude of the crisis the country is facing , we are hopeful that Congress will approve additional funds for the PPP and we will continue accepting new applications so we will be ready to proceed if and when that happens , ” the company said in a statement Thursday .
Cullen/Frost , less than a 50th the size of Wells Fargo , had trouble getting its computers to work seamlessly with the SBA ’ s systems , @ @ @ @ @ @ @ to handle forms .
Most volunteered and worked from home , where they hopped online in the early morning and worked until after dark , contacting clients directly with questions .


washingtonpost--2020-04-22--U.S. State Bankruptcy Was a Farce Then and Now

Apparently , helping out U.S. states is a bridge too far for the Kentucky Republican .
In a response to a question on the syndicated Hugh Hewitt radio program , McConnell declared , “ I would certainly be in favor of allowing states to use the bankruptcy route.
” He added that “ it ’ s saved some cities , and there ’ s no good reason for it not to be available.
” Hewitt singled out California , Illinois and Connecticut , three states that just so happen to reliably vote Democratic ( no mention of New Jersey , @ @ @ @ @ @ @ ’ s eight years ) .
“ My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them now so they don ’ t have to do that , ” he said .
“ That ’ s not something I ’ m going to be in favor of.
” “ You raised yourself the important issue of what states have done , many of them have done to themselves with their pension programs , ” he said .
“ There @ @ @ @ @ @ @ desire on the Republican side to bail out state pensions by borrowing money from future generations.
” Again , never mind that an article from the latest Bloomberg Businessweek magazine is about how seven years after bankruptcy , Detroit is once again staring down a huge budget shortfall that puts it on the brink of a state takeover .
Far from a panacea to get out from under onerous obligations , municipal bankruptcies have proved to be so messy , costly and time-consuming that they ’ re often not enough to solve the @ @ @ @ @ @ @ Puerto Rico .
McConnell ’ s idea isn ’ t a novel one by any means .
The idea of state bankruptcy was raised after the last recession , too , including by David Skeel , who now sits on the Financial Oversight & Management Board for Puerto Rico .
He wrote an article for The Weekly Standard in November 2010 titled “ Give States a Way to Go Bankrupt.
” When I asked him about it in December 2011 , after muni bonds posted a 10.7 % return and a meltdown never @ @ @ @ @ @ @ enthusiasm for the state bankruptcy idea has temporarily dimmed.
” That ’ s one way of putting it .
Here ’ s another from Bloomberg News ’ s William Selway and Danielle Moran : It was dropped after a single hearing in the House of Representatives .
The concept of state bankruptcy as a solution to get through this unprecedented period is little more than a farce .
Even President Donald Trump appears to realize that .
After meeting with Governor Andrew Cuomo of New York on Tuesday , he said that states @ @ @ @ @ @ @ I think most Republicans agree , too , and Democrats.
” Governors have asked for some $ 500 billion .
As much as McConnell tries , this is not about profligate Democratic governors and their underfunded public pension funds .
At a basic , fundamental level , many states will have to impose draconian austerity measures without federal support because governors need to balance their budgets .
That means either more state employees joining the ranks of the unemployed , higher tax rates ( and therefore less money changing hands in local economies @ @ @ @ @ @ @ infrastructure improvements , or once again shortchanging the pension promises of tomorrow to make the numbers add up today .
Potentially all of the above .
Withholding state support , in other words , would directly counteract the measures that McConnell and his fellow senators have already set in motion to bolster the American economy .
What good is a $ 1,200 check if states are backed into raising taxes that take most of it away ?
Will small businesses bounce back if their neighbors are unemployed , or local roads and bridges @ @ @ @ @ @ @ and Republican senators have a “ fulsome ” discussion on whether and how to send more aid to state and local governments , the Federal Reserve has taken the unprecedented step I advocated for a year ago and will buy up to $ 500 billion in muni bonds .
It was almost too predictable how this would play out : The easy answer would be directing more cash from the federal government to the states .
But the 2009 stimulus program already transferred an unprecedented amount of money into state coffers and the @ @ @ @ @ @ @ the current political climate , and with U.S. deficits already running close to $ 1 trillion , it ’ s anyone ’ s guess whether a similar package could come together .
For now , the muni market can take some solace in knowing the Fed has its back .
That should prevent any sort of wild swings like last month .
And it buys some time for House Speaker Nancy Pelosi , who said on Bloomberg TV on Wednesday that a “ major package ” of aid for state and local government @ @ @ @ @ @ @ considered by Congress , putting her clearly at odds with McConnell .
For all the posturing , no politician truly wants to impose austerity .
Just before the 2018 midterm elections , McConnell brought up the idea of slashing spending on Social Security , Medicare and Medicaid , and that ’ s gone nowhere .
Expect the same for state bankruptcy .


washingtonpost--2020-04-22--Analysis | One Hedge Fund Takes on the French Establishment

Lagardere has evolved from a conglomerate into a group with a twin focus on media and travel retail .
The business mix may make sense now but the dealmaking needed to get there generated painful writedowns .
Lagardere has underperformed the European media and retail sectors on a total shareholder return basis over the five years to Dec. 31 , and the broader market over the last decade .
Amber convincingly blames the company ’ s so-called “ commandite ” partnership structure .
This preserves de facto control for scion Arnaud Lagardere as general partner and managing partner , even @ @ @ @ @ @ @ the stock .
And it has sustained generous remuneration at Lagardere despite poor shareholder returns .
Because of the unusual corporate structure , the company ’ s supervisory board has limited sway .
Amber , an investor since 2016 , thinks directors could nevertheless have done more , in particular when reviewing the business ’ s high central costs and payments to Arnaud Lagardere ’ s personal company , which provides the executive team .
Ordinary shareholders can ’ t do much about all of this in a hurry .
But they can @ @ @ @ @ @ @ .
Amber is proposing a near-full slate to replace all but a couple of recent appointments , including former French President Nicolas Sarkozy .
What difference would that make ?
A refreshed board still couldn ’ t force a change in the management team .
True , it would have the power to put Lagardere ’ s next managing partner nomination to a shareholder vote in 2021 .
But vetoing the nominee requires two-thirds backing from shareholders , according to proxy adviser ISS .
A few investors friendly to the current management could @ @ @ @ @ @ @ decent sized holdings .
With Lagardere capitalized at just 2.3 billion euros ( $ 2.5 billion ) , such blocking stakes are inexpensive for the French establishment .
Vivendi , in which billionaire Vincent Bollore controls a 29 % stake , declared an 11 % interest on Tuesday .
Ladreit de Lacharriere has up to 3.5 % of Lagardere , Le Figaro reported .
They appear to be positioning as kingmakers .
The risk for other shareholders is that their influence determines a strategy that goes against the interests of everyone else .
@ @ @ @ @ @ @ abolition of the commandite .
Only Arnaud Lagardere himself can make that happen .
But directors could try to persuade him to give up legal control and convert the company to the standard French corporate structure , the societe anonyme ( SA ) .
The obvious attraction for him would be if he ’ s offered an enlarged stake in the group in exchange .
Lagardere , as general partner , would lose some income provided by the old structure .
But his shares would probably command a higher valuation , inflating both @ @ @ @ @ @ @ .
Other investors might be better off despite the modest dilution .
With the company having suspended its dividend and cut pay in response to the Covid-19 pandemic , selling the commandite status may now be more attractive .
There ’ s a deal to be done .
Amber ’ s resolutions provide the chance for ordinary shareholders to reform a structure that simply isn ’ t working for them .
The commandite ’ s implicit trade-off is limited investor influence for higher performance .
Yet returns have been terrible .
Seeing Bollore @ @ @ @ @ @ @ register with unclear intentions reinforces the value of transforming Lagardere into a company where all shareholders have real power .


washingtonpost--2020-04-22--Harvard Says It Didn’t Get Small Business Aid After Trump Threat

Treasury Secretary Steven Mnuchin said Tuesday that the program wasn ’ t intended for publicly traded companies that had other ways to access funding , and that his department would be issuing guidelines soon in an effort to get those corporations to give back the forgivable loans to the federal government .
The Shake Shack Inc. burger chain said earlier this week it planned to return a $ 10 million loan it received through the program amid public outrage that the package benefited chain restaurants and hotels rather than local businesses .
As Mnuchin was discussing the effort , Trump @ @ @ @ @ @ @ pay back the money.
” “ They shouldn ’ t be taking it , ” Trump said .
“ When I saw Harvard -- one of the largest endowments anywhere in the country , maybe the world , and they are going to pay back that money.
” The university -- which had an endowment valued at $ 40.9 billion as of June -- said it had received funding under a separate $ 14 billion program targeted at higher education institutions in the $ 2.2 trillion relief package passed by Congress late last @ @ @ @ @ @ @ based on a formula that looks at overall enrollment and the number of students receiving federal financial aid , and at least half the funding must be provided directly to students affected by the coronavirus .
“ Like most colleges and universities , Harvard has been allocated funds as part of the CARES Act Higher Education Emergency Relief Fund , ” Harvard said in a statement .
“ Harvard has committed that 100 % of these emergency higher education funds will be used to provide direct assistance to students facing urgent financial needs @ @ @ @ @ @ @ says it would give the all the $ 8.6 million it received directly to students , despite being eligible to spend half that on its institutional costs related to the virus .
Other top-tier and highly-endowed universities also received funding under the program .
Yale University was allocated $ 6.8 million , the University of Chicago got $ 6.2 million , and Stanford University took nearly $ 7.4 million in federal assistance .
Late Tuesday evening , Trump posted on Twitter that Harvard should “ give back the money now.
” He did @ @ @ @ @ @ @ 8.6 million .
The White House earlier Tuesday declined to comment on whether the administration would still seek to claw back Harvard ’ s grant under the legislation .
For more articles like this , please visit us at bloomberg.com


washingtonpost--2020-04-21--When Small Businesses Get Loans They... Buy Property?

But much to Beijing ’ s dismay , instead of paying salaries or shoring up working capital , these enterprises seem to be using the proceeds to buy real estate .
The People ’ s Bank of China on Monday asked commercial banks in Shenzhen to look into whether their borrowers used property-backed business loans for this purpose during the outbreak .
In March , existing home prices in the tech hub rose 9.7 % from a year earlier , the fastest pace in three years .
This sudden frenzy makes little sense considering the local economy had ground to @ @ @ @ @ @ @ dried out and tech workers lost their jobs .
In the past month , anyone in Shenzhen with an entrepreneurial streak has gone apartment hunting , because rates are simply too low to resist .
This set of borrowers only needs to pay up to 4.5 % , according to Caixin , a financial news outlet .
In addition , the Shenzhen government is offering to reimburse up to 70 % of interest payments , as long as you ’ re a first-time borrower who runs a technology startup .
All told , @ @ @ @ @ @ @ of her existing property ’ s market value at as little as 1.35 % , well below the average mortgage rate of 3.25 % .
Meanwhile , knowing that small enterprises have become Beijing ’ s top policy directive , commercial banks and the Shenzhen municipal government are eager to oblige .
The Big Four lenders are being asked to grow their small and medium business loan books by another 20 % this year , after a 55 % jump in 2019 , so they are approving whatever that comes to their desks @ @ @ @ @ @ @ by property .
As for the Shenzhen government ’ s parameters , almost every company could be eligible for the generous subsidy so long as its research and development expenses exceed 4 % of sales , and over 60 % of revenue comes from the broad industry category of “ high-tech innovative industries and services.
” It ’ s worth asking why entrepreneurs are using the proceeds this way .
An alternative could be to plow into the Shenzhen stock market , which is offering positive returns this year .
Some business owners @ @ @ @ @ @ @ real estate always has a special space in China Inc. ’ s heart .
Of over 3,800 listed non-financial companies in mainland China , more than 40 % hold property as investments , even though their business operations have nothing to do with the sector , data compiled by Bloomberg show .
This certainly isn ’ t the case in the U.S .
In China , owning these assets is essential to survival .
Even by the central bank ’ s own admission , its big lenders have become “ pawn shops , @ @ @ @ @ @ @ private businesses with sufficient physical collateral .
So if you ’ re a technology startup facing a slowdown , but the bank is offering you some cheap cash , the best course of action may be to buy another apartment .
This way , when the economic outlook brightens down the road , you can use that property to take out bank loans .
As for the big banks , you can ’ t necessarily blame them for behaving this way .
They don ’ t make any money at the rates they @ @ @ @ @ @ @ CLSA Ltd. has crunched the numbers : By the end of 2019 , the average loan rate for small and medium-size enterprises was lowered to 4.75 % , but once we account for banks ’ own funding costs ( 1.77 % ) , the money set aside to cover soured loans ( 2.3 % ) and operating expenses ( 0.8 % ) , these financial institutions are barely breaking even .
If they want to lend at all , they naturally prefer to have solid physical assets as collateral .
Offering subsidized small @ @ @ @ @ @ @ directive is a tiresome job for commercial banks everywhere .
In the U.S. , the largest will prioritize their bigger corporate clients .
In China , lenders just want to rubber stamp their decisions and make the tedious task disappear , without checking whether proceeds are being used for their intended purposes .
A lot of heavy plumbing will have to be done on both sides of the Pacific for these programs to work .


washingtonpost--2020-04-22--California Gets Largest Share of Disaster Loans That Ran Dry

On Tuesday , the SBA reported on roughly $ 5.6 billion in coronavirus-related disaster loans and $ 3.3 billion in grants approved under the program so far .
That partial tally showed that small businesses in California have gotten the most in loans at $ 1.5 billion , or about $ 38 per state resident , twice the national average .
California and a handful of other states benefited because their governors were quicker to make their states eligible by declaring disasters in mid-March .
Those states ’ advantage persisted into April , the data show .
California firms also @ @ @ @ @ @ @ so far at $ 484.6 million , followed by Texas at $ 287.7 million and Florida at $ 272.7 million , according to the data .
In all , Congress had appropriated $ 10 billion for the grant fund and $ 7 billion for the loans ; the SBA announced last week that it stopped accepting applications when those funds were tapped out .
The White House and congressional leaders struck a deal for a new $ 484 billion relief plan that the Senate approved on Tuesday .
The measure , which could @ @ @ @ @ @ @ includes $ 60 billion for additional EIDL loans and grants .
It would also provide more funding for the separate and much larger Paycheck Protection Program relief initiative for small businesses , which also ran out of money last week .
The SBA reported approving 26,919 EIDL loans for almost $ 5.6 billion and 755,476 grants processed for $ 3.3 billion .
The agency has not disclosed how many applications it has received for loans and grants , but Senator Ben Cardin , the top Democrat on the Committee on Small Business & @ @ @ @ @ @ @ speech there had been millions of requests .
Business owners have complained about not getting answers or money from the EIDL program .
While firms are starting to report that they ’ re receiving funds , initial loan amounts have been limited to $ 15,000 because of demand .
Also , some owners expected $ 10,000 grants only to be told they ’ d receive $ 1,000 per employee .
And while the law said the advances would be processed within three days , it ’ s taken much longer in many cases @ @ @ @ @ @ @ of Independent Business members surveyed reported applying for an EIDL loan , but only 1 % had received proceeds as of April 17 .
Of those who applied for EIDL loans , 77 % also requested an emergency grant , but only 10 % had received money , NFIB said .
Ben Koren , who sought an EIDL grant for Go Big , his wellness-energy shot company , heard nothing for weeks , he said .
Then he received an April 14 email from the SBA : Instead of a $ 10,000 grant @ @ @ @ @ @ @ per employee -- $ 4,000 in his case .
“ I used to be an investment banker and I have an MBA from Columbia , and I find the whole thing extremely confusing , ” Koren said .
“ I can ’ t imagine how this process must be for the average person who relies on an accountant to do their books .
”


washingtonpost--2020-05-20--Analysis | Did Angela Merkel Just Make a U-Turn in Her European Policy?

Whether German Chancellor Angela Merkel and French President Emmanuel Macron can convince all the other 25 national leaders to go along with their idea remains to be seen .
But for Germany in particular , even this first step already amounts to a dramatic change .
A country that has consistently rejected any notion of a European “ transfer union ” or “ mutualized borrowing ” is now pushing for a soft and temporary form of both .
How did this change come about ?
And how different is the direction really ?
Merkel , in her fifteenth year in @ @ @ @ @ @ @ the polls at home for managing the Covid-19 outbreak relatively well .
But she ’ s come under a lot of pressure in the EU of late .
Especially in Italy and Spain , politicians and voters feel “ the north ” hasn ’ t been forthcoming in helping the south , where the medical and economic devastation is greatest .
Merkel and the whole German establishment have been genuinely shaken by polls showing the Italians turning into Euroskeptics , and by the specter of the EU as such becoming irrelevant or even @ @ @ @ @ @ @ foreign policy is premised on both transatlantic and European integration .
With the U.S.-German relationship already threatening to unravel , the prospect of a dissolving EU strikes almost existential fears in Berlin .
Nonetheless , Merkel personally and her compatriots generally remain as reluctant as ever to assume the mantle of European leader , or “ hegemon.
” But she has clearly decided that Germany must at least be seen to assume its traditional position again as co-rider of the Franco-German “ tandem ” that ’ s pulled Europe forward in fits and @ @ @ @ @ @ @ time SARS-CoV-2 was spreading to Europe , this Franco-German relationship had in effect broken down .
Macron had too many times proposed bold new measures to reform the euro area , only for Merkel to feign support , then stand by idly as fiscally hawkish member states such as Austria and the Netherlands gave Macron the cold shoulder .
He no longer even bothered to hide his frustration with Merkel .
But in this hour of crisis , the pair have decided to give their relationship another go .
He ’ ll of @ @ @ @ @ @ @ does next , and Merkel knows it .
Macron expects her to spend her considerable political capital leaning on the remaining member states to accept the proposed recovery fund .
First , there ’ s countries such as Hungary and Poland that used to be behind the Iron Curtain and are today the largest beneficiaries of the existing EU budget , and therefore not keen on seeing more of the pot go to southern countries .
These eastern members basically have to be bought in , with promises that the new fund won @ @ @ @ @ @ @ there are the usual suspects in the north , including Austria , Denmark , Sweden and the Netherlands .
Like the Germans , they are fiscally conservative and philosophically opposed to mutual debt and transfers within Europe .
They ’ re especially aghast at the idea that the new fund should give out grants rather than loans .
A counter-proposal from this group is on its way .
What could tilt the European balance one way or the other is therefore how the debate develops in the largest country , Germany .
After @ @ @ @ @ @ @ agree with the northern skeptics .
Thus conservative factions within Merkel ’ s Christian Democratic Union have already signaled their opposition .
“ They ’ re our Dutch , ” as Christian Odendahl , a German think-tanker , puts it .
But the overall German debate is tilting in favor of Merkel and Macron .
Senior Christian Democrats in parliament have come out in support .
So have Armin Laschet and Friedrich Merz , the two leading candidates to become the CDU ’ s next party boss and thus possibly chancellor .
The @ @ @ @ @ @ @ hawk , is especially surprising , and thus telling .
One factor that nudged the change in consensus is a shock ruling by Germany ’ s constitutional court this month .
It sharply circumscribed Germany ’ s ability to participate in the European Central Bank ’ s bond-buying programs to stimulate the euro area ’ s economy .
In effect , the court has called a halt to the ECB ’ s creeping mission drift , or what I ’ ve called “ treaty change on the down low.
” The politicos in @ @ @ @ @ @ @ they must now do their part to save Europe with proper democratic legislation .
This recovery fund could be the first step in such a reform .
As is her wont , however , Merkel has skillfully disguised it as anything but that , to make it easier for opponents to get behind the plan .
To the extent that the fund involves joint EU debt , for example , it ’ s being sold as a less radical move than the “ coronabonds ” that southern Europeans have been clamoring for , @ @ @ @ @ @ @ the Franco-German plan , it ’ s the European Commission that would do the borrowing , and member states would be liable only up to their share in the EU budget — in Germany ’ s case , about one-fifth , or 100 billion euros ( $ 109 billion ) of the total .
And funds wouldn ’ t just be handed over to countries at their discretion .
They ’ d be disbursed according to the EU ’ s budget rules , with earmarks for specific projects .
Above all , as @ @ @ @ @ @ @ is meant to be a one-time exception in extraordinary times .
All this suggests that Germany ’ s shift isn ’ t a “ U-turn ” and certainly not the “ Hamiltonian moment ” that would turn the EU from a bloc of sovereign states into a United States of Europe .
Merkel is still Merkel , which means she will inch forward in the smallest possible increments .
But she and Germany are now inching in a different , more European , direction .
For a country so large , this is @ @


washingtonpost--2020-05-20--Analysis | Germany and France Move Closer to a Euro Bond

The details are yet to be thrashed out , and there ’ s still plenty of scope for opposition from fellow euro area members , but this does look like a genuine attempt to share the financial pain from the pandemic between Europe ’ s weaker and stronger nations .
The spread between Italian and German 10-year bond yields fell by 30 basis points in response .
One can debate the merits of whether northern European states should be making fiscal transfers to their southern neighbors by contributing to this fund — and you can be sure that the Austrians @ @ @ @ @ @ @ just that — but investors would have no qualms about snapping up the new debt .
The new securities will be issued on behalf of the EU member states ( their relative GDP would decide their share ) by the European Commission , which is an established borrower with 52 billion euros ( $ 57 billion ) of bonds in 44 different issues and an average weighted maturity of nearly eight years .
That ’ s a small amount when compared with the borrowings of governments , and investors will be eager that @ @ @ @ @ @ @ from Moody ’ s Investors Service and its AA from S & P Global Ratings even if it starts issuing a lot more debt .
The Franco-German plan will only work if these securities are regarded as being of the highest quality .
If the proposal is agreed , the new debt issued will be the closest thing yet to a true “ euro bond , ” with the implicit backing of all EU countries .
One would expect sales of between 150 billion euros and 200 billion euros of these securities over @ @ @ @ @ @ @ Existing Commission debt at 10- to 15-year maturities yields 40 to 50 basis points more than German bunds , meaning there might be a slight positive return for investors — a rare thing for the safest European debt .
Importantly , this new debt could also be used as gold-standard collateral , effectively as good as German Bunds , for any of the ECB ’ s funding facilities , so it would be attractive for banks to hold .
For once , the euro area ’ s two dominant countries aren ’ t @ @ @ @ @ @ @ the dirty work ( although the ECB could help buy these bonds if needed ) .
Instead , they appear to be trying to find a truly European solution to a crisis rather than watching as weaker nations sink under a new debt mountain .
Italy might , for example , receive as much as 30 % of the grants but it would be liable for only 15 % of the funding .
Raising the debt isn ’ t going to be the problem here , the politics might yet be .


washingtonpost--2020-05-20--House to Vote on Changes to Small Business Program Next Week

Senate Republicans have voiced support for changes to PPP this week .
Senate Small Business Chairman Marco Rubio said there is a strong consensus that the changes need to be made .
“ Businesses are starting to reopen their doors , and if they had a few more weeks they could rehire everybody , ” Rubio said during an American Enterprise Institute event Tuesday .
The Senate may be able to get unanimous consent to make the changes this week and send legislation to the House , according to a Senate aide .
The Paycheck Protection Flexibility Act , H.R.6886 @ @ @ @ @ @ @ and Texas Republican Chip Roy , would allow businesses receiving forgivable loans to be able to use the funds on payrolls for more than the eight weeks under the original program and relax a requirement that 75 % of the loans be used for payroll expenses .
It would also give them more than two years to pay back the loans and allow businesses that receive PPP loans to receive a payroll tax deferment .
Phillips , who represents a swing district , said last week he would vote for the $ 3 @ @ @ @ @ @ @ a vote on his PPP bill from congressional leaders .
“ We must redesign the Paycheck Protection Program to make it accessible to everyone , from food trucks , to four-star restaurants , to your favorite music venue .
While the PPP has helped millions of small businesses keep their lights on , millions more remain on the outside looking in , ” said Phillips , who has run a distillery business .
Pelosi said Wednesday she was not worried that passing a Republican priority as a stand-alone bill would give away negotiating @ @ @ @ @ @ @ pressure was mounting on the GOP to act on wider stimulus .
“ I think public opinion will very much be our friend in this , ” she said .
For more articles like this , please visit us at bloomberg.com


washingtonpost--2020-05-20--A $150 Billion Pile of Frozen Loans Starts to Worry U.S. Banks

Forbearance programs from March are nearing expiration dates , when many banks are set to decide whether to continue letting people put off roughly $ 150 billion of debt including credit cards balances , personal loans and car payments .
In interviews , executives said they ’ re concerned that at least some borrowers sought relief unnecessarily and that they should be coaxed into paying .
A number of firms aim to whittle out such participants , or charge interest to continue .
“ I would imagine we may have to go beyond 90 days ” of forbearance , Southern @ @ @ @ @ @ @ said in an interview , referring to the expiration date for many programs .
“ I feel pretty strongly that many of the folks who took advantage of the consumer payment holiday we provided probably didn ’ t have to .
But if it ’ s offered , why not , right ?
” The rapid rollout of forbearance programs in March averted financial ruin for millions of households , giving Congress time to bolster unemployment benefits and offer emergency aid to businesses .
The goal was to avoid a tidal wave of @ @ @ @ @ @ @ when states locked down commerce to slow infections .
More than 30 million people have since filed jobless claims .
But many lenders offered to postpone bills with no proof of hardship , and many borrowers kept working .
Some signed up for the programs as a precaution , taking a break from payments to shore up their savings .
That ’ s made it impossible for banks to gauge the degree to which their loan portfolios are at risk of going bad .
Some mid-sized banks placed more than 15 % of @ @ @ @ @ @ @ end of March , Janney Montgomery Scott analysts wrote in a report last week .
In regions like the U.S. Southeast , relatively high rates of borrower relief contrasted with low infection rates at the time .
Many programs have remained open since then , continuing to take on borrowers who have fallen on hard times .
On average , banks had about 5 % of their consumer loan portfolios on ice as of mid- to late-April , analysts at Keefe , Bruyette & Woods wrote in a report this month that compiled @ @ @ @ @ @ @ and community banks .
Based on Federal Reserve data , that would equate to roughly $ 150 billion in loans -- though the amount may have climbed since then .
The consumer-loan deferrals have left banks , shareholders and even regulators in the dark on how many people are truly in distress and what the ultimate cost to lenders may be .
Some executives expect to get a clearer view of the situation in the second half of the year .
For now , regulators are letting banks put off that reckoning .
@ @ @ @ @ @ @ made it easier for lenders to modify terms , such as by lowering interest rates or letting borrowers skip payments .
The moves wouldn ’ t necessarily require banks to label those situations as “ troubled debt restructurings , ” which require more capital .
“ My belief is losses aren ’ t coming until third quarter for banks , ” Ira Robbins , CEO of Valley National Bancorp , said in an interview .
Because banks granted deferrals to pretty much everyone who asked for it , “ we have no idea @ @ @ @ @ @ @ what ’ s going to happen from a credit perspective.
” In a more innovative approach , some lenders are hoping to reverse the flow of information that ’ s flooded from banks to financial technology ventures in recent years .
Aggregators such as Plaid and Envestnet Inc. ’ s Yodlee have been collecting account data and providing it to apps that offer help with personal finances or investments .
Now , banks are hoping to tap into that information to glean a more complete view of their own customers ’ finances , @ @ @ @ @ @ @ .
“ We ’ ve heard from some banks about their interest in using Plaid products for forbearance relief and are working with them to see if it can be used , ” said John Pitts , head of policy at Plaid , which recently created a platform that makes it easier for banks to share their data with outside apps .
“ The banks want to genuinely help , ” said Scott Barton , managing partner at 2nd Order Solutions , which advises lenders on collections and forbearance processes .
But they @ @ @ @ @ @ @ and not give away money to people that don ’ t really need it right now.
” Generally , the nation ’ s largest banks -- also including JPMorgan Chase & Co. , Bank of America Corp. and Wells Fargo & Co. -- have said they will at least check in with borrowers in coming weeks as they assess how to continue programs and whether to encourage people to use other options .
Those can include modifying loans or restarting some payments for credit cards or car loans .
So far , the @ @ @ @ @ @ @ during the pandemic .
Fewer households were late on their cards , car loans , personal loans and mortgages in April than in March , according to TransUnion data released Wednesday .
That upended expectations that consumers would fall behind on their debts as a result of widespread joblessness and the forced shutdown of the U.S. economy .
Matt Komos , TransUnion ’ s vice president of research and consulting , said households may be postponing payments to keep an extra cash cushion just in case the economy worsens .
Indeed , many @ @ @ @ @ @ @ , sometimes far more than the monthly minimums to reduce their overall debt loads , TransUnion data show .
At Bank of America , about a third of people who asked to delay credit-card bills ended up paying , CEO Brian Moynihan said Tuesday on Bloomberg Television .


washingtonpost--2020-05-20--Analysis | The Biggest Thing in Online Shopping? A Store.

Walmart Inc. and Home Depot Inc. , which both reported results on Tuesday , observed the same trends .
“ It ’ s time we stop referring to our Supercenter pickup and delivery capability as online grocery because it ’ s becoming much more , ” Walmart CEO Doug McMillon said on the company ’ s earnings call .
There are a couple of takeaways from this .
First , it seems that for all the hand-wringing over the lasting impact to physical retail real estate from the pandemic , stores still have a role to play , when used @ @ @ @ @ @ @ networks and caused huge delays in deliveries , customers were willing to be flexible to get the items they needed .
Practically speaking , there ’ s not a huge difference risk-wise between retrieving a box from your front porch and picking one up from the curb of a store .
Having that option may have helped the likes of Target , Walmart , Home Depot and Lowe ’ s capture sales from customers who were stumped by sold-out notices at online-only retailers or who previously did most of their shopping at a @ @ @ @ @ @ @ customers aged 50 years and older as a demographic that saw significant growth .
Meanwhile , Women ’ s Wear Daily has reported that Amazon.com Inc. is exploring a potential deal with bankrupt retailer J.C. Penney Co.
It ’ s not exactly clear what the Internet giant ’ s intention would be , but one possibility is that it could be a bid to add more options for online-order distribution such as curbside pickup .
The nature of square footage may have to evolve ; Target talked about the need to add more @ @ @ @ @ @ @ this model isn ’ t going to work for all retailers ; those that didn ’ t have an effective digital strategy beforehand may be caught irreversibly flat-footed .
Lowe ’ s Cos. CEO Marvin Ellison sounded audibly relieved that his company had invested in improving its e-commerce capabilities when it did .
“ What we ’ re seeing is that the customers simply want to shop the way that they choose to , and in the past , we couldn ’ t accommodate that , ” Ellison said on Lowe ’ s @ @ @ @ @ @ @ we started to get requests from customers for curbside , we put that up and going in three days .
This time last year , it would have been impossible to do that because we didn ’ t have the infrastructure.
” There ’ s reason to believe customer buy-in for curbside or in-store pickup will hold : 40 % of drive-up customers at Target have made a repeat purchase .
This puts the margin pressure that retailers faced in the pandemic quarter in perspective .
Profitability at Target and Walmart was squeezed @ @ @ @ @ @ @ were ordering — food and essentials are less lucrative than more discretionary items like clothing — and by the shift toward digital .
But having the customers pick up their own orders is much more profitable than delivering the products to their homes .
Online ordering may account for more than 17 % of retail sales in the U.S. this year , up from 13.9 % in 2019 , according to GlobalData .
If retailers can continue to convert a meaningful portion of that demand into pickup versus delivery , it will provide @ @ @ @ @ @ @ operating costs of a digital model .
Target customers that use its drive-up option for the first time also tend to spend more at the company overall than they did previously , the company said .
Asked what kind of permanent changes he envisions in the post-pandemic world , Target CEO Brian Cornell said his “ highlight and takeaway is stores are vitally important and stores will continue to play a really important role to America as we go forward.
” Who would have thought that a virus outbreak that ’ s relegated @ @ @ @ @ @ @ homes would put such a premium on brick-and-mortar ?


washingtonpost--2020-05-20--Mark Cuban Says Americans Shouldn’t Expect Regular Relief Checks

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washingtonpost--2020-05-20--Private Equity, Hedge Funds Get Unlikely Foe in GOP Think Tank

“ The buying and selling of companies , the mergers and divestments , the hedging and leveraging , are not themselves valuable activity , ” the group warned in a bluntly worded primer laying out its Coin-Flip project .
“ They invent , create , build and provide nothing.
” Along with its primer , American Compass is releasing a “ Return Counter ” that will measure the performance of private equity , hedge funds and venture capital against industry benchmarks .
“ Hedge funds and venture capital have long underperformed public markets , ” the group noted , while @ @ @ @ @ @ @ S & P 500 over the past 10 years .
The critique of investment firms sounds straight out of the Elizabeth Warren playbook : They move money around without benefiting workers , their returns are subpar , and the lavish salaries of their executives are effectively paid through exorbitant fees charged to pension funds and university endowments .
But Cass is no ally of the Massachusetts progressive senator .
He ’ s a Harvard Law School graduate and former management consultant at Bain & Company , who served as domestic policy director for @ @ @ @ @ @ @ He is pro-business and pro-finance , he says .
American Compass , which isn ’ t identifying its donors , has close ties to a handful of GOP senators , including Romney , Tom Cotton , Marco Rubio and Josh Hawley .
It ’ s an open question how much impact the report will have since its private equity and hedge fund targets have long been among the top contributors to the Republican party .
That point is underscored by the strong access to the White House that leading finance executives such as @ @ @ @ @ @ @ and Elliott Management ’ s Paul Singer have enjoyed in recent years , despite President Donald Trump ’ s populist leanings .
Yet the U.S ’ s growing wealth chasm and public scrutiny of how buyout firms have run companies that are failing amid the coronavirus crisis is exposing private equity to fresh attacks in Washington .
The sluggish economy -- combined with contentious presidential and congressional elections -- will likely have both political parties hunting for scapegoats in the months leading up to November , a threat that private equity isn ’ @ @ @ @ @ @ @ conservatives to re-think some of their bedrock economic principles , including the belief that the free market is always the right way to make decisions .
There is a role for the government in shaping the market , he noted , especially in areas like finance .
“ It ’ s this kind of huge gravitational force within the economy , ” Cass said in an interview .
“ It ’ s not clear what is going on besides a bunch of money being moved around in circles , and the people moving @ @ @ @ @ @ @ he hasn ’ t run his project past the senators American Compass is friendly with , a group who have all touted the think tank .
Those lawmakers include Arkansas ’ Cotton , Florida ’ s Rubio , Missouri ’ s Hawley and Utah ’ s Romney , who notably made millions of dollars as a co-founder of private equity firm Bain Capital before entering politics .
While American Compass just opened its doors this month , its existence and policy objectives could herald something Wall Street has long feared : a common @ @ @ @ @ @ @ to challenge the party ’ s established economic views .
That kind of broad voter coalition helped Trump win the White House in 2016 .
Private equity firms in particular have been worrying about their reputations on Capitol Hill during the coronavirus pandemic .
Just this month , iconic retailers J .
Crew and Neiman Marcus , both private equity owned , collapsed under staggering debt loads and were forced to file for bankruptcy .
The industry was also dealt a blow when Congress and federal agencies largely left it out of massive @ @ @ @ @ @ @ firms ’ portfolio companies from accessing the Small Business Administration ’ s $ 670 billion Paycheck Protection Program and the Federal Reserve ’ s Main Street Lending Program .
Private equity ’ s main lobbying group , the American Investment Council , said it is no longer pushing to obtain federal stimulus money and noted that the industry not only supports millions of workers at portfolio companies , but its investment funds benefit pensioners and endowments .
“ Our industry directly employs over 8 million people , supports thousands of businesses , and @ @ @ @ @ @ @ spokesperson for the council said in a statement .
“ We are committed to working together to restart the economy , now is not the time to advance a narrow political agenda that hurts workers and retirees .
”