'Should There Be Deals During a Pandemic?' diff viewer (5/6)

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Should There Be Deals During a Pandemic?	Should There Be Deals During a Pandemic?
2020-06-13 06:26:34 UTC	2020-06-16 12:15:10 UTC (3 days later)
Paul Krugman, the Times Opinion columnist and Nobel Prize-winning economist, is the special guest on our next DealBook Debrief call, tomorrow at 11 a.m. Eastern. He will discuss deficit spending, the debate over bailouts and take your questions. R.S.V.P. here to join. (Want this in your inbox each morning? Sign up here.)	Paul Krugman, the Times Opinion columnist and Nobel Prize-winning economist, is the special guest on our next DealBook Debrief call, tomorrow at 11 a.m. Eastern. He will discuss deficit spending, the debate over bailouts and take your questions. R.S.V.P. here to join. (Want this in your inbox each morning? Sign up here.)
Senator Elizabeth Warren of Massachusetts and Representative Alexandria Ocasio-Cortez of New York escalated a Washington pushback against M.&A. during the pandemic.	Senator Elizabeth Warren of Massachusetts and Representative Alexandria Ocasio-Cortez of New York escalated a Washington pushback against M.&A. during the pandemic.
The two introduced the Pandemic Anti-Monopoly Act, which would temporarily block many corporate acquisitions, including those by companies with more than $100 million in revenue and those owned by private equity or hedge funds. It would also direct the Federal Trade Commission to block deals that “pose a risk to the government’s ability to respond to a national emergency.”	The two introduced the Pandemic Anti-Monopoly Act, which would temporarily block many corporate acquisitions, including those by companies with more than $100 million in revenue and those owned by private equity or hedge funds. It would also direct the Federal Trade Commission to block deals that “pose a risk to the government’s ability to respond to a national emergency.”
• It expands on an M.&A. moratorium proposed by Representative David Cicilline, the Rhode Island Democrat who leads the House antitrust panel.	• It expands on an M.&A. moratorium proposed by Representative David Cicilline, the Rhode Island Democrat who leads the House antitrust panel.
It’s the latest shot across the bow of the deal industry, particularly private equity. Investment firms have argued that they shouldn’t be singled out for punishment during the pandemic, and they have successfully lobbied on issues like expanded lending programs from the Fed. Blackstone’s president, Jon Gray, writes in The Financial Times that private equity — which has some $1.5 trillion waiting to be spent — should be allowed to operate freely, or “more companies will fail.”	It’s the latest shot across the bow of the deal industry, particularly private equity. Investment firms have argued that they shouldn’t be singled out for punishment during the pandemic, and they have successfully lobbied on issues like expanded lending programs from the Fed. Blackstone’s president, Jon Gray, writes in The Financial Times that private equity — which has some $1.5 trillion waiting to be spent — should be allowed to operate freely, or “more companies will fail.”
The proposal is unlikely to go anywhere in the Senate, which is controlled by Republicans. Noah Joshua Phillips, an F.T.C. commissioner, recently argued in DealBook that regulators were capable of carefully scrutinizing mergers during the crisis.	The proposal is unlikely to go anywhere in the Senate, which is controlled by Republicans. Noah Joshua Phillips, an F.T.C. commissioner, recently argued in DealBook that regulators were capable of carefully scrutinizing mergers during the crisis.
• The FT notes that Joe Biden, the presumptive Democratic presidential nominee, could face pressure to lean further left by embracing the ban. Mr. Biden has already publicly assailed Corporate America as acting “greedy as hell.”	• The FT notes that Joe Biden, the presumptive Democratic presidential nominee, could face pressure to lean further left by embracing the ban. Mr. Biden has already publicly assailed Corporate America as acting “greedy as hell.”
Treasury Secretary Steven Mnuchin vowed yesterday to punish companies, especially big ones, that needlessly tapped the federal small-business rescue fund, in an interview with Andrew on CNBC’s Squawk Box.	Treasury Secretary Steven Mnuchin vowed yesterday to punish companies, especially big ones, that needlessly tapped the federal small-business rescue fund, in an interview with Andrew on CNBC’s Squawk Box.
He said that big companies would be held criminally liable if they didn’t meet revised criteria for rescue loans, and that the administration would audit any borrower that received more than $2 million.	He said that big companies would be held criminally liable if they didn’t meet revised criteria for rescue loans, and that the administration would audit any borrower that received more than $2 million.
But the problem is of Mr. Mnuchin’s own making, The Times’s Alan Rappeport notes, since the bailout fund was designed to disburse money quickly, with few restrictions on who qualified.	But the problem is of Mr. Mnuchin’s own making, The Times’s Alan Rappeport notes, since the bailout fund was designed to disburse money quickly, with few restrictions on who qualified.
Punishing offenders could be tough. Legal experts say that it’s difficult to pursue claims against businesses that followed the vague eligibility rules. And the Small Business Administration, which is in charge of the program, could find it hard to audit millions of borrowers on its shoestring budget.	Punishing offenders could be tough. Legal experts say that it’s difficult to pursue claims against businesses that followed the vague eligibility rules. And the Small Business Administration, which is in charge of the program, could find it hard to audit millions of borrowers on its shoestring budget.
Data published this morning are expected to show that the U.S. economy shrank in the first quarter at its fastest rate in a decade. Economists expect G.D.P. to have contracted at a 4 percent annual rate.	Data published this morning are expected to show that the U.S. economy shrank in the first quarter at its fastest rate in a decade. Economists expect G.D.P. to have contracted at a 4 percent annual rate.
It will get much, much worse. Since the economy was relatively strong in January and February, the first quarter numbers won’t reflect the full impact of the coronavirus pandemic: “This is just the squall before the hurricane,” notes Ian Shepherdson of Pantheon Macroeconomics. In the second quarter, the economy is expected to shrink at an annual rate of 30 percent or more, the worst contraction since the Great Depression.	It will get much, much worse. Since the economy was relatively strong in January and February, the first quarter numbers won’t reflect the full impact of the coronavirus pandemic: “This is just the squall before the hurricane,” notes Ian Shepherdson of Pantheon Macroeconomics. In the second quarter, the economy is expected to shrink at an annual rate of 30 percent or more, the worst contraction since the Great Depression.
The Fed is expected announce its latest thinking this afternoon, after its policymakers meet. Following two months of nonstop action, the central bank may hint that interest rates will remain near zero for months or even years. It could also offer additional guidance about its bond-buying plans, which have swelled the central bank’s balance sheet to $6.6 trillion, from around $4 trillion at the start of the year.	The Fed is expected announce its latest thinking this afternoon, after its policymakers meet. Following two months of nonstop action, the central bank may hint that interest rates will remain near zero for months or even years. It could also offer additional guidance about its bond-buying plans, which have swelled the central bank’s balance sheet to $6.6 trillion, from around $4 trillion at the start of the year.
Steven Davidoff Solomon, a.k.a. the “Deal Professor,” is a professor at the U.C. Berkeley School of Law and the faculty co-director at the Berkeley Center for Law, Business and the Economy.	Steven Davidoff Solomon, a.k.a. the “Deal Professor,” is a professor at the U.C. Berkeley School of Law and the faculty co-director at the Berkeley Center for Law, Business and the Economy.
In his latest column, he says that the backlash against buybacks has gone too far. What do you think? Let us know at dealbook@nytimes.com, and your thoughts may be included in a future newsletter. (Be sure to tell us your name and location.)	In his latest column, he says that the backlash against buybacks has gone too far. What do you think? Let us know at dealbook@nytimes.com, and your thoughts may be included in a future newsletter. (Be sure to tell us your name and location.)
Financial crises follow a sequence. One of the steps is outrage. Then comes regulation — think Dodd-Frank, Sarbanes-Oxley and the like.	Financial crises follow a sequence. One of the steps is outrage. Then comes regulation — think Dodd-Frank, Sarbanes-Oxley and the like.
During the pandemic that is both a heath and a financial crisis, a lot of outrage is aimed at stock buybacks. Over the past three years, S&P 500 companies spent $2 trillion on buybacks. Pundits are quick to point out that U.S. airlines spent nearly all of their free cash flow on buybacks over the past decade.	During the pandemic that is both a heath and a financial crisis, a lot of outrage is aimed at stock buybacks. Over the past three years, S&P 500 companies spent $2 trillion on buybacks. Pundits are quick to point out that U.S. airlines spent nearly all of their free cash flow on buybacks over the past decade.
Many now argue that if these companies kept more cash on hand, they wouldn’t need bailouts now. This criticism joins longer-running arguments over whether buybacks encourage short-termism and limit investment in research and development.	Many now argue that if these companies kept more cash on hand, they wouldn’t need bailouts now. This criticism joins longer-running arguments over whether buybacks encourage short-termism and limit investment in research and development.
But there are good reasons to support buybacks. They allow capital to be deployed efficiently and stop managers from spending excess cash on vanity projects.	But there are good reasons to support buybacks. They allow capital to be deployed efficiently and stop managers from spending excess cash on vanity projects.
And contrary to conventional wisdom, buybacks don’t benefit shareholders alone. Jesse Fried of Harvard Law School has testified to Congress that, for every $100 in repurchases, companies issue $80 of equity, meaning public investors net just $20. Employees are probably the biggest beneficiaries: Companies, particularly tech firms, use stock buybacks to repurchase stock options.	And contrary to conventional wisdom, buybacks don’t benefit shareholders alone. Jesse Fried of Harvard Law School has testified to Congress that, for every $100 in repurchases, companies issue $80 of equity, meaning public investors net just $20. Employees are probably the biggest beneficiaries: Companies, particularly tech firms, use stock buybacks to repurchase stock options.
What’s more, R.&D. has continued to grow. And it’s not like companies are running short of funds, with Corporate America’s cash pile well over $1 trillion (concentrated, admittedly, in tech companies).	What’s more, R.&D. has continued to grow. And it’s not like companies are running short of funds, with Corporate America’s cash pile well over $1 trillion (concentrated, admittedly, in tech companies).
The current criticism seems to be that companies didn’t put enough cash into the cookie jar to survive a pandemic. I acknowledge that argument, but how much cash do we want companies — or, indeed, ourselves — to have on hand? If we required companies to set aside, say, 10 percent of their revenue, then that would be money that could not be spent elsewhere.	The current criticism seems to be that companies didn’t put enough cash into the cookie jar to survive a pandemic. I acknowledge that argument, but how much cash do we want companies — or, indeed, ourselves — to have on hand? If we required companies to set aside, say, 10 percent of their revenue, then that would be money that could not be spent elsewhere.
To be sure, there are issues with buybacks. Mr. Fried has ably documented how executives can time them to their personal benefit, something akin to insider trading. Companies do buy back shares when they’re too expensive or otherwise spend money that should be saved. And in other cases, stock buybacks have encouraged a short-term focus.	To be sure, there are issues with buybacks. Mr. Fried has ably documented how executives can time them to their personal benefit, something akin to insider trading. Companies do buy back shares when they’re too expensive or otherwise spend money that should be saved. And in other cases, stock buybacks have encouraged a short-term focus.
Updated June 12, 2020	Updated June 12, 2020
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.	Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.