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The Morning Ledger: CFOs Devise Strategies to Preserve Cash Amid Coronavirus Outbreak
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Boeing said 11 orders from Air Canada for the 737 MAX had been canceled. PHOTO: CHRIS HELGREN/REUTERS
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Good morning. Cash is king these days as finance chiefs look to all kinds of financial strategies to preserve liquidity amid the coronavirus outbreak.
Boeing, for example, said it would take steps to preserve cash, and a person familiar with the company’s plans said it would soon draw down the remainder of a $13.8 billion loan, as the coronavirus pandemic and delays in the recertification of its 737 MAX aircraft exact a mounting toll on the aerospace giant. The Chicago company also said it would freeze hiring and nonessential travel, and place new limits on overtime.
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Amtrak, meanwhile, is expected to announce a voluntary unpaid leave program for "non-mission critical employees" as the national passenger railroad faces the prospect of plunging ticket revenue, which is expected to fall by “several hundred million dollars,” Amtrak Chief Operating and Commercial Officer Stephen Gardner wrote in a memo to employees that was reviewed by The Wall Street Journal.
Businesses are also expected to pull back on information-technology spending amid growing uncertainties over the impact of the coronavirus pandemic on global markets. The anticipated declines will likely outweigh any short-term gains from a spending spree as businesses bulk up on software, mobile devices and other tools to deal with a sharp rise in remote work, industry analysts say.
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Adobe Inc., Broadcom Inc., Dollar General Corp. and Oracle Corp., are among the companies scheduled to report earnings today.
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The Latest on the Coronavirus Pandemic
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About 500 jobs will be eliminated as Neiman Marcus shuts Last Call locations. PHOTO: ALAN DIAZ/ASSOCIATED PRESS
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Uncertainties abound for the retail industry—absent the turbulence brought by the coronavirus pandemic. As a result, some retailers are changing up their strategies. Others are retreating.
Neiman Marcus said it will close more than half of its Last Call discount locations to focus on its luxury department stores, retreating from an area that has been one of the few bright spots in retailing.
Meanwhile, Modell’s Sporting Goods Inc. filed for bankruptcy and said it plans to shut all its stores, a stark outcome even considering the challenges facing today’s bricks-and-mortar retailers.
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Longtime Amazon executive Maria Renz is leaving the e-commerce giant after more than 20 years at the company to join online lender SoFi, according to people familiar with the matter.
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FedEx Chief Executive Fred Smith has cut ties with Amazon, is phasing out the U.S. Postal Service and is fully embracing online shopping, part of the most sweeping changes ever at the shipping giant he launched nearly 50 years ago. The reason: his faith in Raj Subramaniam, a marketing executive from India tapped as Mr. Smith’s likely successor.
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Best Buy Executive Chairman Hubert Joly won’t stand for re-election in June, a year after relinquishing the chief executive role, the company said.
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AT&T Chief Executive Randall Stephenson received $32 million in compensation last year after a headline-grabbing hedge-fund battle ended up boosting the telecom and media giant’s share price. Meanwhile, Brian Lesser, the chief executive of AT&T’s advertising technology unit Xandr, is leaving in a move that caught some within the company off-guard, according to people familiar with the matter.
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Walt Disney shareholders approved a referendum outlining former Chief Executive Robert Iger’s compensation for 2019, with less support than the previous year’s vote.
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The Swedbank probe that found the potential violations has been under way since February 2019. PHOTO: INTS KALNINS/REUTERS
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Swedbank AB said it has notified the U.S. Treasury Department’s Office of Foreign Assets Control of potential sanctions violations regarding $4.8 million of transactions following an internal probe.
Law firm Clifford Chance has been conducting an investigation at Swedbank since February 2019, which includes clients, transactions and activities from 2007 to 2019 and how the bank has handled internal and external disclosures. Clifford Chance is also examining how Swedbank has responded historically to identified anti-money-laundering and sanctions-controls shortcomings.
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Elon Musk’s SpaceX is seeking to qualify for federal subsidies to provide broadband service to rural areas, over the objections of competitors who say its satellite-based technology is unproven.
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A Canadian businessman is expected to plead guilty to fraud conspiracy after being accused of having someone else take the SAT on behalf of his two sons. David Sidoo stepped down as chief executive of East West Petroleum Corp. after charges were announced.
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The overall amount of Fed repos rose by $8.8 billion to $242.4 billion Wednesday. PHOTO: ANDREW HARNIK/ASSOCIATED PRESS
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For the second time this week, the Federal Reserve Bank of New York increased the amount of temporary liquidity it was willing to provide to Wall Street’s biggest banks, while also expanding how long banks can tap some of its funding.
On Wednesday, the New York Fed said it was bumping up the maximum size of its overnight repurchase agreements, or repos. The maximum amount banks can collectively access moves to $175 billion starting Thursday, from the upsized $150 billion limit set Monday. It also said starting on Thursday it would offer one of three new one-month repo operations with $50 billion caps, and it will continue with two term repos with $45 billion caps a week.
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The U.K. aims to raise more funds from selling government bonds this year than it has in eight years to fund its biggest spending plan since 1955 as the coronavirus epidemic weighs on growth.
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Knotel, a New York-based flexible-office provider, appointed John Jureller chief financial officer, effective immediately. Mr. Jureller, most recently managing director at financial consulting firm Accordion Partners LLC, succeeds Jenny Buchholz, who is now CFO of digital media company Captivate LLC.
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Norman Broadbent PLC, a London-based professional-services company, appointed Steve Smith chief financial officer and chief operating officer, effective March 30. Mr. Smith, who previously worked as an interim finance director in aviation and leisure companies, will succeed Will Gerrand, who is pursuing other business interests, the company said.
Amneal Pharmaceuticals Inc., a Bridgewater Township, N.J.-based pharmaceutical company, appointed Tasos Konidaris chief financial officer, effective March 12. Mr. Konidaris succeeds Todd Branning, the company said, adding that Mr. Branning will remain available to the company through March 31.
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