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Regardless of what you may have heard from some people (the president, the vice president, the Secretary of Education, the broader markets), it seems this coronavirus thing is still a wee bit of a problem.

“The COVID event is not behind us yet,” Randal Quarles, the Fed’s vice chairman for financial regulation, said in prepared remarks. “We know that the financial system will face more challenges.”

Shares of hotels, airlines, restaurants and other companies that have been heavily affected by coronavirus-related lockdowns initially perked up when states began easing restrictions on business and travel. But as the number of coronavirus cases has risen across the U.S. and some states have halted their reopening plans, many of those stocks have fallen behind again… The S&P 500 is trading at roughly the level it was one month ago. In contrast, shares of American Airlines Group Inc., Norwegian Cruise Line Holdings Ltd., Carnival Corp. and Wynn Resorts Ltd. have each fallen at least 27% over the same period…. Another group of stocks that have suffered? Large event operators, which have been hit with cancellations of festivals, concerts and other mass gatherings. Live Nation Entertainment Inc. is down 21% over the past month.

Globally, 552 private-equity funds reached their final close in the first half of the year, 31% fewer than in the same period last year, according to data provider Preqin Ltd…. At the same time, the total amount of money raised for private-equity deals showed a smaller decline….

The U.K. government announced up to $38 billion in fresh stimulus measures intended to boost the country’s economy as it exits lockdown, a path that is also being considered by other rich nations as they seek to prevent the economic shock of the pandemic from snowballing into a multiyear slowdown that could leave deep scars on their societies, businesses and economies.

U.S. Stocks Edge Up While China Rally Powers Ahead [WSJ]
Covid Still Poses Challenges for Financial System, Fed’s Quarles Says [WSJ]
The Reopening Trade Is Stalling [WSJ]
Pandemic Slowed Private-Equity Fund Closings in First Half [WSJ]
U.K. Pumps Billions Into Its Ailing Economy to Keep Crisis at Bay [WSJ]
Here’s exactly how detached from reality Donald Trump is on the coronavirus [CNN]



Boaz Weinstein Didn’t Need A Global Pandemic To Make A Mint, But It Certainly Didn’t Hurt

He also didn’t need Institutional Investor to write a long feature on him, but he did help all the same.


COVID-19 Kills Beautiful Dream Of Having Heavily-Indebted Company Borrow More To Buy Company Three Times Its Size

The shotgun wedding of HP and Xerox has, like all weddings right now, been called off.

dumpster fire ornament

Worst Year In At Least A Century No Reason Not To Go Public

The SPAC-and-IPO party on Wall Street will have to stand in for the traditional holiday festivities this year.


COVID Vaccines Have Nasty Side Effect For Hedge Fund

Said Haidar was not expecting good news quite this quickly, which makes it very bad news for him.


Add ‘Trading While Making Monetary Policy’ To The List Of Things Trump Appointees Don’t See As A Conflict Of Interest

Eric Rosengren and Robert Kaplan may be gone, but Elizabeth Warren will have Richard Clarida to kick around. Until January, anyway.


Oh, Look: A Bond That Acts Just Like Stocks Or Worse At The Worst Possible Time

We trust Larry Kudlow is loading up on pandemic bonds right now.


Bizarro Elizabeth Warren To Bedevil Banks At Fed

The first head of the Consumer Protection Financial Bureau wasn’t doing anything anyway, so…


It’s Friday, Sell Everything Just In Case

That is, if you’re not already in voluntary quarantine in Westchester, in which case Rick Santelli thanks you.