Living with COVID V.2 - Earnings: SU, SJR, RCI, CNR, CHP, Preferred Shares
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In response to the COVID crisis, governments and central banks worldwide have boosted fiscal and monetary stimulus into the trillions. The US government is on the cusp of approving another $1T; the European Union has recently approved a similar amount. This approach has to date been successful, the V shaped recovery is enduring.
The strategy behind all the government support was initially to buy time while preventive measures and a natural burnout of the virus brought the situation to a close. The negative impact of the virus began to show in the last two weeks earnings for March, having had little actual impact on Q1-2020 earnings. It did cause many companies to stop issuing earnings guidance with Q1 earnings reports.
Learning from the Global Financial Crisis, governments have been quick to the rescue; markets rallied in expectation the messy situation would be short lived. Earnings for Q2 ending Jun-30-2020 now include the first full quarter of life with the virus. The earnings variances for Q2 confirm what markets expected from a sneak preview for the last two weeks of March.
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