9-11 minutes - Source: NYT
Who is, and isn’t, on the
President Trump revealed yesterday who will advise him on reopening the economy. Sort of.
He read out the names of nearly 200 corporate chiefs and other notable figures during a news conference at the White House, implying they would act as consultants of sorts.
Who made the cut: Tim Cook of Apple, Mark Zuckerberg of Facebook, Jamie Dimon of JPMorgan Chase, Sheldon Adelson of Las Vegas Sands and Robert Kraft of the New England Patriots.
• Some companies nabbed multiple representatives. Blackstone got two, Steve Schwarzman and Jon Gray. Oracle has both Larry Ellison and Safra Catz. Home Depot has three: the C.E.O. Craig Menear and its co-founders Ken Langone and Bernie Marcus.
• Three representatives of cruise operators were tapped, but just one from an airline (Oscar Munoz of United).
Who’s missing: Randall Stephenson of AT&T — whose takeover of Time Warner was opposed by the Justice Department — isn’t on the list. Neither are Bob Iger of Disney, Dave Calhoun of Boeing or Peter Thiel, one of Mr. Trump’s biggest boosters in the tech world.
The Business Roundtable published principles for reopening the economy. Since there is a large overlap between its membership and those industry groups, consider this a sneak preview of their advice. “It is important to plan now for the gradual lifting of some restrictions on activity when
Today’s DealBook Briefing was written by Andrew Ross Sorkin in Connecticut and Michael J.
Fear, greed and small business loansMany businesses desperately need the loans, grants and other assistance provided by various stimulus bills and Fed rescue plans. Others might not, but still qualify. Should they take the money?
There will be “a tremendous amount of attention and scrutiny placed on people applying for these loans after the dust settles,” said Mr.
• “There is no easier target for a prosecutor and for a false claims act prosecution,” Mr.
• “We should assume that the loan applications will eventually be
“Some people who don’t need the money are grabbing it and sticking it in the stock market because they’re hoping to get some gains,” said Mr. Marks.
• Like Mr.
Airlines get $25 billion, with strings attachedThe Treasury Department struck an agreement with 10 major airlines over a taxpayer-financed bailout, after days of heated negotiations.
The airlines and Treasury compromised over a mix of grants and loans. Ultimately, 70 percent of the money will consist of grants and 30 percent as loans payable over 10 years.
• Delta, for instance, will get $5.4 billion, with $1.6 billion coming from a loan, and taxpayers will receive warrants worth a 1 percent stake in the company.
Industry executives offered praise, and criticism, of the result. JetBlue’s C.E.O., Robin Hayes, appreciated the bailout — but noted that “it adds to the significant debt we are taking on as we burn through our cash reserves.”
Airlines badly need the money. Global passenger revenue is expected to fall 55 percent from last year, according to an industry lobbying group.
Cover your eyes: Big banks open their booksJPMorgan Chase and Wells Fargo were the first big banks to report their latest earnings, and investors didn’t like what they saw: Shares in both banks were down while the market was up.
• Bank of America, Citigroup and Goldman Sachs report their results today.
• “Our top-down models of earnings based on
• An expected crash in earnings “should be discounted to some degree, as it tells us less than normal about firms’ earning potential over time,” wrote the number crunchers at Goldman Sachs. “However, treating the earnings collapse as a one-time disaster ‘tax’ also seems inappropriate.” (Emoji summary: 🤷.)
• But with the Fed “now buying everything bar your lunch,” analysts at Bank of America wrote, the markets’ so-called “animal spirits” are perkier than grim economic data might suggest.
The advertising market goes darkThe pandemic has devastated scores of industries, including advertising — and not even tech giants are immune.
Google and Facebook are likely to take a hit, as advertisers cut back to save cash while others fear placing ads next to grim news articles about death and disease. That said, analysts say smaller media platforms and publishers will fare far worse.
Speaking of which, the parent company of The Los Angeles Times announced furloughs and pay cuts. An internal memo told employees that because of the
Ad agencies like Omnicom and Dentsu have also announced job cuts and other cost-cutting measures.
Politics and policy
• The stimulus checks mailed to Americans starting next month will bear President Trump’s signature, a break from protocol.
• “OK. So I suggest that Trump’s name also be put on top of tax bills.” (@NickKristof)
• Shares in Amazon hit an all-time high yesterday, giving it a market value of $1.1 trillion.
• Separately, several Amazon warehouse workers said they were fired for