Daily Archive: May 7, 2020

David Rosenberg: Sorry, but we won’t be spending our way out of this downturn

With the focus squarely on the “re-opening” of the economy, expectations remain high among pundits that activity will bounce back quickly. We are not so sure, especially when it comes to how consumers will begin spending again. Remember, this group is the main driver of economic growth in the country, so without their participation there is no sustainable recovery.

To be sure, there will be a natural bounce in certain items following the loosening of the “shelter-in-place” orders as many businesses go from zero activity to some activity. But what happens after? In previous reports we have advised investors to watch what the savings rate does amidst the current mayhem and, lo and behold, in March it ticked up to a 40-year high of 13 per cent.

Consumer confidence is one factor depressing consumption, but so too is the fact that a vast majority of businesses were shuttered during the

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At least 50 infected with coronavirus at Mexican retirement home By Reuters

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© Reuters. The spread of the coronavirus disease (COVID-19) in Guadalupe, outskirts of Monterrey

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MONTERREY, Mexico (Reuters) – At least 47 residents and three workers have been infected with coronavirus at a retirement home in the northern Mexican state of Nuevo Leon, authorities said on Wednesday, in one of the biggest outbreaks yet reported in the country.

Nuevo Leon’s health minister, Manuel de la O, said the infections were registered among the 98 residents and 48 workers at the Casa de Retiro Luis Elizondo in the municipality of Guadalupe, east of the state capital, Monterrey.

He told a news conference that the average age of residents at the home is 84, that 40% of them had diabetes and 45% suffered from hypertension, calling them a “high-risk group”.

De la O later said that all 50 who tested positive for coronavirus were “stable” and that three of the residents

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Endeavor, hit hard by the coronavirus, to sell part of stake in Fortnite maker Epic Games

Endeavor Group Holdings Inc., owner of a major Hollywood talent agency and the Ultimate Fighting Championship, will sell part of its stake in Epic Games Inc., the publisher of the popular title Fortnite, raising cash it can use to prop up a business hit hard by the coronavirus.

Endeavor is selling its stake as part of Epic’s next round of fundraising, in which the company is expected to net a valuation well north of the $15 billion it received in 2018, according to three people familiar with the matter. The company will still hold onto some of its piece in the soaring video-game publisher, said the people, who asked not to be identified because the deal hasn’t closed.

Endeavor built a sprawling empire of media, sports and entertainment assets predicated on the growing value of live events. It operates the mixed martial arts league UFC and stages hundreds of live … Read More