16 Apr HOW AUSTRALIAN CEOS ARE MANAGING COVID RESPONSES; WINNERS AND LOSERS FROM CAPITAL RAISINGS
Welcome to today’s business and media intelligence update, with insights collected over the past 24 hours as we enter the third week of Australia’s strict social distancing rules.
- The US Federal Reserve has confirmed economic activity “contracted sharply and abruptly” in its periodic report of anecdotes from business around the country, known as the Beige Book. Businesses also reported strong credit demand and instances of households refinancing. Read the WSJ article here. (Subscriber access)
- How individual countries roll back restrictions will reveal differences in approach – and culture. While the UK is set to extend its lockdown, other European nations, including Germany, Spain, Austria and Belgium, are looking to lift some restrictions. Read The AFR article here. (Subscriber access)
Australian company news
- Strong supplier relationship allowed BHP’s order from China could be prioritised
- BHP has said the pandemic has deepened relationships with suppliers and customers as they deployed problem-solving and creativity to work through how to continue doing business given the current restrictions. Read the AFR article here. (Subscriber access)
- Princess Cruises ‘expresses sadness’
- In a full page advertisement today in The Australian, Princess Cruises has “expressed again its deep sadness over the terrible impact the coronavirus has had cross the globe” and maintains the “Commission of Inquiry [regarding the Ruby Princess] is an opportunity for all to learn from this tragic event”. (See advertisement below)
- Tech competitors collaborating could solve problems
- According to the AFR, Google and Apple “ordinarily wouldn’t be seen at the same conference together,” so, the announcement on co-operating to develop a contract tracing platform transcends competitive tensions and gives tech companies a “chance to be part of the solution, and, for once, not part of the problem.” Read more in The AFR here. (Subscriber access)
- How Australian CEOs are managing COVID-19 responses
- The AFR columnist Chanticleer writes on Telstra and CBA CEOs, noting their actions “are the actions of leaders who have genuinely accepted that community expectations have changed and are determined to respond in the right way”. Meanwhile, Boss Magazine profiles CEOs’ techniques for managing their teams remotely.
- Winners and losers from capital raisings
- Chanticleer this morning writes that investment banks facilitating deals and big institutional investors getting in on raisings are the winners while those unable to participate, namely retail shareholders, are the losers from the spate of recent raisings. Ownership Matters recent report says of the 17 raisings it analysed, the median capital raising was done at a 16.7% discount to the last traded price prior to the deal.
Our daily briefing is not meant to be a summary of media coverage but rather, insights that may be helpful in understanding how organisations are communicating with stakeholders in a time of crisis – and what comes next. Sign up via email.