04 May ADVERTISING: MEDIA COMPANIES SAY NOW IS THE TIME TO SPEND
Welcome to today’s business and media intelligence, with insights collected over the past 24-hours as the global coronavirus case tally passes 3.5 million.
- SHOCK LOSS: BUFFETT’S BERKSHIRE HATHAWAY POSTS BIGGEST LOSS EVER
- Berkshire Hathaway announced a nearly $50 billion net loss in the first quarter, with most of the losses attributable to the drop in value of Berkshire’s investment portfolio rather than the declines in sales and profits at its own subsidiaries. The man known as the Sage of Omaha livestreamed a shareholder meeting on Yahoo over the weekend. Read the CNN article here.
- US AND EURO BANKS BOOKING $50BN AGAINST BAD LOANS
- Souring loans at US and European are predicted to reach $50 billion in the first quarter, forcing banks to book the biggest provisions since the 2008/9 crisis. Read the Financial Times article here. (Subscriber access)
- Is unprecedented the latest corporate and political buzzword? It looks that way according to Hootsuite. (See image below)
Australian company news
- WESTPAC LATEST BIG FOUR TO SUSPEND DIVIDEND AS PROFITS PLUNGE 70%
- Last year’s money laundering scandal and heavy charge for bad debts are the drivers of a 70 per cent plunge in Westpac’s profit, with the bank also announcing first half dividends will be deferred. Read the SMH article here.
- FLIGHT CENTRE SCRAPS $300 CANCELLATION FEE
- Flight Centre has bowed to customer and media pressure, scrapping its $300 cancellation fee. The fees had become a major PR issue for the travel group and highlight the reputational problems faced by companies that are seen to do the “wrong thing” by customers during the pandemic. Read the ABC article.
- ADVERTISING: MEDIA COMPANIES SAY NOW IS THE TIME TO SPEND
- Australia’s largest publishing, news and entertainment companies have joined forces to urge companies not to cut back on advertising. A media campaign, led by newly created industry group Premium Content Alliance, launched today, outlining the benefits of advertising during a crisis based on data from previous economic crises. Read an interview with the chief executive of the alliance here in The Australian. (Subscriber access)
- AUDITING STANDARDS IN THE SPOTLIGHT FOLLOWING DAMNING ASX REPORT
- There is renewed concern regarding auditing standards following a damning report by the ASX on suspended fintech iSignthis. Its books were signed off by Grant Thornton . Read the AFR article. (Subscriber access)
- WOOLIES PREDICTS DIGITAL BOOM
- As Woolworths accelerates its digital strategy, it is urging suppliers to come on board, providing guidelines on how their products should be featured online, highlighting the importance of branding in an online world. Read The Australian (Subscriber access)
- CUT SALARIES DEEPER, FUNDS TELL CEOs
- Superannuation funds are urging for deeper pay cuts for CEO, senior executives and Boards. This despite an EY analysis showing CEO pay cuts have averaged 41 per cent across listed companies. Read the AFR article here. (Subscriber access)
- ASX WARNS COMPANIES ON CAPITAL RAISINGS
- The ASX has said it will withhold the benefit of class waivers for raisings that put existing shareholders at a disadvantage in its latest update to listing rules announcement on Friday.
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.