S&P 500 companies have offered the fewest quarterly updates — positive or negative — since 2000, according to Bank of America. “Companies are starting to do what they do when there is rampant uncertainty, which is just stop issuing guidance,” Savita Subramanian, the head of U.S. equity strategy at the bank, told Matt Phillips of the NYT.
Companies may be feeling uncertain over a slowing economy, the trade war and presidential politics.
“The relative silence since their last reports means stock investors may be in for a lot of bad news all at once,” Mr. Phillips writes. (FactSet estimates that earnings for the S&P 500 are expected to decline 4.6 percent for the quarter.)
Does WeWork favor more debt over diluting investors?
Executives of the co-working company reportedly favor a financial bailout plan led by JPMorgan Chase to a proposal that would hand control over to its biggest investor, SoftBank, Bloomberg reports, citing unnamed sources. They’ll have to make a decision this week on which proposal to take.
JPMorgan is said to be sounding out potential buyers for a debt-financing plan that could add billions of dollars to the company, Bloomberg reports. The structure of the offering could change based on investor feedback, though the news service adds that it may include some bonds whose interest would be paid out in additional bonds.
Any financing would probably carry high interest rates. Bloomberg reports that the pay-in-kind notes could feature a punitive 15 percent coupon.
Others think the SoftBank plan is a bad idea — for SoftBank and its founder, Masa Son. A takeover of WeWork “goes beyond doubling-down on a flailing investment in a single company and would saddle Son’s team with a task the fund wasn’t set up to tackle,” Tim Culpan of Bloomberg Opinion writes.