Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.Around half the S&P 500 Index constituents have reported first-quarter earnings, including the start of the sharp downturn triggered by the coronavirus. Profit for the group in the period is set to drop nearly 15%, according to Refinitiv data.
Big companies are probably spooked from the last dash for cash, and eager to fill up their coffers while the demand is so hot. But it’s pretty obvious this demand exists because the Federal Reserve, merely by saying it could buy corporate debt, has basically put a floor under the market. For as long as the central bank remains as good as its word, frontrunning the Fed should continue to be a very crowded trade.
AstraZeneca shares rose as much as 5% in early afternoon trading. That looks excessive. But the fact that a large drug group sees value in a Covid-19 treatment is encouraging in itself. to its board. Only 71% of them supported the company’s executive pay package, which included a $27.5 million target payout for Chief Executive David Solomon, according to a preliminary tally from Thursday’s annual meeting.