Profits won't recover their pre-pandemic baseline until some time in 2022 if not 2023, which is terrible news for Wall Street strategists as it means they will now have to apply forward multiples from 2023
"What we’re really going to be looking for is, are companies giving us an idea of when they think they’ll return to profitability, or, are they talking about more layoffs?”
Ash Bennington hosts Real Vision’s Roger Hirst to talk markets and economics. In this episode, Bennington and Hirst discuss the dismal economic data coming out of the U.S. including industrial production, retail sales, and the Empire State Manufacturing index. The pair also consider oil prices, the crisis’s impact on the money market, and potential durable shifts to the structure of the American economy.
The coming winter will bring a "second wave" of infections in China said Zhang Wenhong, who heads Shanghai’s Covid-19 clinical expert team and directs the infectious disease department at one of the city’s top hospitals.
Welcome to our dystopian nightmare, brought to you by the corporate globalist fascist party of America... Even docile sheep will start to bite if they are starving and cornered...
The Treasury Department announced it had reached an agreement in principle with the country's airline to access billions of dollars in aid as the government attempts to shore up one of the industries hardest hit by the coronavirus pandemic,
"Actions to backstop high-yield eases the liquidity strain segment of high-yield spread widening, but it has less impact on the ‘insolvency risk segment’ of high-yield spread widening. It doesn’t necessarily improve the outlook for bankruptcies."
The difference between this and those previous hyperinflations is that the latter were isolated crises in a sound-money world. Today everyone is doing it...
"We support every employee’s right to criticize their employer’s working conditions, but that does not come with blanket immunity against any and all internal policies."
So, with the entire U.S. economy effectively shut down, 15-20% unemployment, and -20% GDP, earnings are only expected to take a 6% hit? ...and then fully recover in the subsequent 12-months?
