What we’re reading (11/1)
“Companies Fret Over Coronavirus Despite Rebound” (Wall Street Journal). “Business for many companies rebounded faster than expected following the coronavirus-related economic shock this spring, but many corporate leaders are warning that the bounceback wasn’t uniform and may prove fleeting as infections surge again. Stronger demand buoyed companies ranging from auto makers to cereal producers during the quarter that ended in September as businesses and consumers adapted to the disruptions caused by the coronavirus. Yet executives described the path forward as tenuous, with caseloads hitting records in the U.S. and government officials in Europe and elsewhere imposing limits on some activities.”
“Boarded-Up Windows and Increased Security: Retailers Brace For The Election” (New York Times). “Nordstrom, the high-end department store chain, said it planned to board up some of its 350 stores and hire extra security for Election Day on Tuesday. Tiffany & Company, the luxury jeweler, said that ‘windows of select stores in key cities will be boarded in anticipation of potential election-related activity.’ Saks Fifth Avenue said it was ‘implementing additional security measures at certain locations in the event of civil unrest due to the current election.’ […] [t]he nation is on edge as the bitter presidential contest finally nears an end, the latest flashpoint in a bruising year that has included the pandemic and widespread protests over social justice. Anxiety has been mounting for months that the election’s outcome could lead to civil unrest, no matter who wins. In the retail industry, many companies are not simply concerned about possible mayhem — they are planning for it.”
“America’s Luxury Hotels On The Brink” (Washington Post). “Traditionally at this time of year, staff at America’s luxury hotels are beginning their work as modern-day elves, preparing lobby decorations, cocktail menus, toy giveaways and light displays as they ready themselves for a season full of holiday parties, winter weddings and New Year’s Eve festivities…[t]his year the season won’t carry the same cheer. Landmark hotels, which have long served as downtown gathering places and backdrops for the holiday season, are eerily, strangely vacant, having lost well over half their business and told most of their staff that they are not needed.”
“Wall Street Week Ahead: Big Tech Stocks May Face Post-Election Headwinds, No Matter Who Wins” (Reuters). “Some investors are betting the technology and communications stocks that drove a massive rebound in U.S. markets this year will face a tougher slog in coming months, no matter whether Republican President Donald Trump or Democratic challenger Joe Biden wins Tuesday’s election. [But] [b]etting against big technology has been a risky proposition over the last decade, as stocks like Amazon, Google and Netflix have shot higher at the expense of so-called value and cyclical stocks such as banks and energy companies.”
“Google Ad Costs, Not Its Alleged Monopoly, Irks Businesses” (U.S. News & World Report). “When asked about Google, Bryan Clayton voices a familiar lament among small business owners. ‘You keep getting squeezed further and further down the search results page,’ says Clayton, CEO of GreenPal, a company that operates an app to help homeowners find lawn care. ‘As a startup, you don’t have a million-dollar advertising budget.’ The Justice Department sued Google on Oct. 20 for anticompetitive behavior, saying the company’s dominance in online search and advertising harms rivals and consumers. Owners such as Clayton have a different beef. What’s unfair about Google, they say, is the way it gives the greatest prominence in search results to the companies that spend the most on advertising.”
