{"id":40657,"date":"2020-04-01T19:32:50","date_gmt":"2020-04-02T00:32:50","guid":{"rendered":"http:\/\/prefblog.com\/?p=40657"},"modified":"2020-04-01T19:32:50","modified_gmt":"2020-04-02T00:32:50","slug":"april-1-2020","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=40657","title":{"rendered":"April 1, 2020"},"content":{"rendered":"
\n\"mushroomcloud_200401\"<\/a><\/p>\n

\"coronavirus_200401\"<\/a>\n<\/div>\n

Well, now that the horrors of March are done with, I’m sure we’re all very happy to start off a bright and shiny new … well, never mind<\/a>:<\/p>\n

Faced with grim new projections of the potential scale and economic ramifications of the coronavirus pandemic, investors dumped stocks on Wednesday. The S&P 500 fell more than 4 percent, bringing its decline over two days to 6 percent.<\/p>\n

The drop, which followed a sell-off in Europe and Asia, came after President Trump said at a news conference on Tuesday that the United States would face a \u201cvery, very painful two weeks.\u201d U.S. government scientists projected that the outbreak could kill up to 240,000 people in the country. On Wednesday, the United Nations warned of \u201cenhanced instability, enhanced unrest and enhanced conflict.\u201d
…<\/b>
Airlines were the worst performing sector in the S&P 500 as government data showed a staggering drop in passenger traffic through airports. United Airlines fell 19 percent, and American Airlines dropped 12 percent.<\/p>\n

Cruise operator Carnival was the worst performing stock in the S&P 500, with a decline of 33 percent, while rival Royal Caribbean fell 20 percent.<\/p><\/blockquote>\n

And in Canada<\/a>:<\/p>\n

The S&P\/TSX Composite Index fell about 22 per cent in the first quarter, its biggest decline since 2008, but had showed some signs of steadying in recent days.<\/p>\n

On Wednesday, the index closed down 3.8 per cent at 12,876.37, in a broad-based selloff that left only the gold sector with gains, as investors fled to the perceived safety of assets such as bullion, bonds and the U.S. dollar. Canadian banks were down about 5 per cent, with shares of security software company BlackBerry Ltd falling nearly 18 per cent after dismal quarterly results.
…<\/b>
Automakers also reported sharp drops in U.S. sales for March, including a 43% plunge for Hyundai. Mortgage applications tumbled 24% from year-ago levels as open houses are all but shut down.
…<\/b>
On this side of the border, the IHS Markit Canada Manufacturing Purchasing Managers\u2019 index (PMI) fell to a seasonally adjusted 46.1 in March, the lowest in at least nine years. It indicated a contraction in factory activity.<\/p><\/blockquote>\n

The rugged free-marketers of Texas, well-known for their aversion to anything that smacks of socialism are clamouring for production quotas<\/a>:<\/p>\n

The U.S. shale industry is more worried about its future than ever. The unprecedented demand from the Texan companies to curtail production says as much. They have good reason to be fearful, because this downturn is not like the last one. Of course, prices will reverse course once economies reopen, but anyone betting on a quick leap to US$65 oil \u2013 the price before the COVID-19 crisis started \u2013 might be in for a rude shock.<\/p><\/blockquote>\n

There are very interesting real-estate negotiations going on<\/a>:<\/p>\n

Commercial property landlords are balking at requests for rent relief from big companies, saying they need to focus on helping vulnerable smaller tenants such as independent restaurants, clothing stores and barbershops that may not survive the huge losses from the coronavirus pandemic.
…<\/b>
But many commercial landlords object strongly to those sort of requests from large tenants. \u201cWhen a company that is well capitalized that has a legal obligation to pay rent, doesn\u2019t pay rent, I think it is bad behaviour,\u201d said Michael Cooper, chief executive with Dream Office REIT, which owns 32 office properties, mostly in Toronto.<\/p>\n

\u201cThey hurt landlords\u2019 ability to be able to help people that need it the most. If companies have the money, they have the legal obligation,” Mr. Cooper said. “If they don\u2019t pay the rent, they are taking advantage of people in a very dire situation and that really is unseemly.\u201d<\/p>\n

Canadian Tire and other big names are able to flex their muscle because they are considered top tenants that can withstand economic downturns. Their tenancy often makes it easier for property owners to get lower mortgage rates and they can make a shopping centre more desirable because they draw more traffic to the property.<\/p>\n

In return, landlords often ask for less rent and give into their demands, which they do not do with smaller businesses.<\/p><\/blockquote>\n

Speaking of Canadian Tire, they got downgraded by S&P yesterday<\/a>:<\/p>\n

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