Meg W

There are many fashion markets out there. From the most expensive, luxury items to the cheaper more affordable items, there still may be one thing in common. Each of them is being effected by the pandemic as we speak and if the impact is negative or positive, well that’s what I’m here to talk about. 

The Main Ideas...

“Retailers have furloughed employees, slashed executive salaries and hoarded cash in a desperate attempt to survive until the shutdowns are lifted. And there is widespread acknowledgment that J. Crew is unlikely to be the only retailer to face the brink.” This is a big passage that should be addressed when readers are looking at this article. It shows that even before the pandemic J.Crew was struggling. Being a private retail company may be important when addressing those companies that will survive the pandemic and those that won’t. We see public stores such as Nike or Gucci not doing well of course but because they have gone public they typically won’t have debts to pay and if they do they will want to get them handled so their many investors will still be able to get their share of the profits promised. As well these public companies have built themselves up a little more with getting their brands out there being able to pay for good advertisements with good spokespeople. With private companies being more acceptable to debt and less attention we may see a good few of them go down with this pandemic. It shows what companies may go down and can actually help predict what people will have no work anymore. Connecting to other recent news, small sole proprietorship businesses can be seen shutting down as well and losing business.

But it seemed to be making strides in recent months toward a more viable future. The company named Ms. Singer its new chief executive in January and was planning an initial public offering of Madewell this spring in order to pay down some of the debt and rehabilitate the J. Crew brand...The coronavirus pandemic scuttled those plans and eventually toppled the company.” This passage is definitely crucial for those reading. So yes companies can redeem themselves when they get into debt like J.Crew. Seeing how much J.Crew was struggling  pre-pandemic even, knowing that they had a solution give a little hope for those companies struggling as well. But as soon as that hope was build up, Covid-19 came in and made sure that not only would these companies struggle more but they would completely fail. Understanding that J.Crew might have saved themselves this spring in the hope of going public shows just how much everyday small companies struggle. It also presents the idea of how much destruction this pandemic has caused leaving people without jobs and companies closing down whether it be lack of income or debt. 

Let’s Ask Ourselves...

One big question this article left readers to wonder is if similar companies will be sent packing? I think the answer to this question is yes defiantly some. As we saw earlier in the first passage, J.Crew was already struggling with debt. Other companies will have such problems; maybe not the same type but we could have seen them struggling even before the pandemic. It seems quite possible that we will see small business close down just because there is no way to get themselves out there. Most are just starting off and advertising is out of the question with the amount of money it takes just to keep the location updated and working. Not to mention there may be employees that need to be paid. In short conclusion the answer is yes. If your company has not been on the market yet, there is a big change that problems will arise with the new pandemic. 

Wrap Up...

So yes maybe some companies are getting hit harder by others such a J.Crew but it may just have to happen. No one can really control what is happening right now in our world, not even the most powerful people. That means we just have to deal with the situation at hand the best we know how. 

My School Year...

Traveling. This may seem as simple as buying a ticket and hopping on a plane. However it does get more complicated than that. Not including the delays or cancellations. There are companies behind those promises you hear when booking a flight on their website and they rely on you as the customer like any other company. But they also rely on those attractions you are going to see.

Looking deeper...

“Southwest (LUV) lost $77 million excluding special items, which was a bit better than Wall Street's expectations. But it was the carrier's first red ink since the first quarter of 2009. Revenue fell $915 billion, or 18%, from a year earlier.” Southwest was definitely a booming business before the pandemic started. It’s a well-known airline that flies almost everywhere it seems. However once the pandemic hit, there was a lot less travel. With stay at home orders in place all over the US and the rest of the world, customers had no yearning to travel, even if the orders weren’t in place. It is important for the readers to look closely at this passage because airlines aren’t usually a business we pay attention to. It states that $77 million was lost during this most recent quarter. With travel suspended and attractions closed Southwest has hit its lowest since the great recession. This shows how much many companies rely on those attractions and restaurants, even small businesses, to be open. The economy has been good the last couple of years and the younger generations are experiencing their first recession, if not depression. With such important companies, such as Southwest, it just goes on to show what this pandemic can do and how much of a chain/relation there is going on between businesses and companies. The economy is just a hidden gem underneath the visible effects that the virus has caused.

But additional steps would be needed to make passengers feel safe, he noted -- like masks and pre-boarding temperature screenings. And Kelly suggested that Southwest won’t book every seat on a flight even when demand returns. 

“ ‘We’ll have social distancing … on the airplanes. We won’t have airplanes that are booked full. It’s certainly not an issue right now. In the coming months, we’ll want customers to be comfortable that they’ll be spacing. You can assume all the middle seats will be open.’ ”  As far as the article stated, Southwest has been trying to find strategies for when travel opens again and people will want it. This is extremely important for the readers to know because with this people will know that it will be safe to travel again even. People may be skeptical but Southwest knew that if they put this in an interview people would feel a little bit more comfortable with traveling again. They also want to keep their reputation up with the idea that they will make every passenger comfortable while flying with them. It was a good idea to state this and have readers see it because it may help with profits and revenue going back up once travel has opened back up. 

Let’s ask ourselves...

A huge question that can be asked from this article is will Southwest actually hold up their promises and make sure that there is correct social distancing even when it is safe to travel again? They say they want to keep their passengers comfortable so they might follow through with their statement. Especially when they are doing this bad, they will want to look good and have good feedback so that people will want to start flying their airline again. If they are struggling as much as they say they are there will be no mistakes in making the airline popular again. 

Another big question, is Southwest correct in saying travel depends on the attractions? I think that really depends on the customer. Many people may also want to see relatives/family, as well as friends. People travel at many times of the year to make sure they stay in contact with their family. However we are approaching summer and people typically take vacation during summer. After quarantine people will be itching to be sitting on a beach in Maui and sipping out of a coconut. This is where Southwest may be getting at something if they are wanting travel they may have more success when those attractions do open. 

An Interview with a front line worker

What is the biggest change you’ve experienced working as a physician? 

“Learning how to navigate telehealth(online medicine) and figuring out visits with patients.”

As a front line worker how do you feel like the community has helped you? 

“Recognition that we are putting ourselves at risk as well as our families. Open community support as well.”

Looking at other essential workers whether it be nurses or delivery people, how do you think you can relate? 

“I think we can all relate because we are at higher risk of getting the virus and have a potential of bad sickness or even death.” 

Lastly, does it feel like you’re a hero or is it just another day on the job? 

“Just another day on the job. However it is a much scarier environment because of the risks. I do appreciate people recognizing our contributions.” 

--Physician at CU Health

Wrap up...

https://www.npr.org/2020/04/16/836126532/senator-burrs-pre-pandemic-stock-sell-offs-highly-unusual-analysis-shows?utm_campaign=First%20Up&utm_medium=email&utm_source=Revue%20newsletter

The idea of people knowing what was coming before it happened and not telling people seems risky and selfish. This may be one way to view North Carolina’s senator Burr. The government continues to look into it as we speak. 

Looking further...

“Since 2012, Burr picked stocks that performed poorly: On average, six months after he bought a stock, it was down .8% relative to stocks in the same industry; after a year, his stocks were down by 6% compared with that benchmark.” This shows that the senator could have definitely known that the virus was coming to the US before anyone else. There is some skepticism whether or not it was random or because he knew what was coming. After reading this article it is crucial that the readers read the passage because it shows that usually Burr is not very good at picking stocks, implying he is not great at selling them either. This was an unusual behavior for Burr and many people started to question why he did it. After reading this passage, readers may be able to better understand why everyone is questioning his moves. It also can be used to show that he is some higher power that has more access to information that wasn’t shared with others. 

“ "Well-timed trades and trades that are unusual in size or scale are certainly going to be relevant to the government," says Katherine Goldstein, who formerly headed up the investigations into securities fraud in the U.S. Attorney's Office for the Southern District of New York. "But this investigation will hinge on whether there is evidence that the information imparted to any member of Congress was material and nonpublic. That's where the rubber will meet the road." ” This somewhat connects back to the last passage however going more in depth in the reasons of how he might have known the corona virus was coming and that he would’ve sold his stocks at the exact right time. This raises a lot of suspicion that he knew what was coming and didn’t tell anyone else. The group he works with as well knew about this and if they could have told people it would have helped out a lot knowing what was coming so the United States could prepare as a whole instead of only few people knowing what to do and getting a good advantage. It is crucial for the reader to know this as well because it may show a different perspective on this person and whether or not he and his team can be trusted. This leads to a whole other issue where the government is involved which is what Goldstein said.

Let’s ask ourselves... 

How many other people were prepared for Covid-19 and sold stocks? I think that not a lot of people were aware of it as early as they could have sold their stocks. Everyone knew about it when it was a little cough in Wuhan, however no one really thought they would be at risk here in America. When it came to the US everyone started panicking and sold everything but by then it was too late. Unless they were one of the first people to know that it had the potential then to come to the US there was nothing anyone could do. 

Another question is, what shares should people sell and how do you know what you should keep. I think there’s definitely a lot of unknown in that territory because we never can really know what’s gonna happen. There are select companies doing well right now despite the pandemic and it probably would’ve taken much skill to know what stocks were right to sell. However like said in the article, Burr wasn’t skilled in stocks but still managed to get out of the right ones at the right time.

Wrap up

There are many business’s is out there in the economy, however not all of them will succeed during this hard time. There will be business’s that thrive during this time and some that won’t. There is not always the company though. There is inside the company. Who’s leading who and how are they handling the crisis that comes with Covid-19. Let’s look a little further.

Take Note 

“In fact, people close to Mr. Iger and the company said in interviews that the real question wasn’t whether he saw the crisis coming — but whether his focus on burnishing his own legacy and assuring a smooth succession left him distracted as the threats to the business grew. No big media company is more dependent on its customers’ social and physical proximity than Disney, with its theme parks and cruise lines. Few have been hit harder by the pandemic.” Disney is one of the most successful companies with handles over Marvel, Pixar, and others. This means that it has the most to loose. Not just because of the box offices shutting down but also because of the in-person attractions. Disney parks and cruise lines have created most of the money for Disney, but now all of it is out of service due to Covid. However this was not what the article focused primarly on. In this paragraph it states that the CEO of Disney, Mr. Iger, was aware of what was coming. It leaves readers interested in why the CEO even stepped down in the first place. He didn’t even step down and out of the company but rather waiting on the sidelines. It questions whether it was for is reputation or not. 

“The company employed 223,000 as of last summer, and won’t say how many workers are furloughed, but the numbers are huge. It includes more than 30,000 workers  in the California resort business alone, according to the president of Workers United Local 50 that represents some of those workers, Chris Duarte. Another 43,000 workers in Florida will be furloughed, the company confirmed on Sunday. All the workers will keep their benefits, but their last paychecks come April 19.” This is a big part of the article for readers because it not only shows how Disney is suffering but it shows a bit of what is happening with employees all over the country. It is said that the unemployment rates are above those of the Great Depression. With this is mind, the readers are able understand that because companies that are shutting down have to let go whether it be on furlough or not. People are paying a lot of attention to what is being shut down and not how it is effecting those within. It is even more impressive and devestating that unemployment rates are higher than the Great Depression. Especially if Disney is such a big company there will be a lot of workers without jobs, from parks to cruise lines. 

Let’s Ask Ourselves...

A big question to take away from this article is whether or not many businesses, such as Disney, will be able to stay afloat during this time when people aren't allowed to go outside and interact. Companies like Disney will probably struggle because they rely on those  that are able to get outside and watch movies or go on cruise lines or we are all social distancing it is impossible for people to go out and purchase items such as tickets to see movies or go to parks.  Other companies, such as Netflix however will thrive a lot better because they rely on people staying indoors and watching their content from their homes rather than going out and paying for movie tickets to see shows or movies.  Another question that could be taken away from this article is how will these businesses like Disney stay afloat during these times. I think it is somewhat self answerable whether or not these businesses will be able to succeed during this time however it's how they will succeed or not succeed.

Personal view

Personally I have been spending a lot of money on shopping online such as buying new household products, decor, or games. I have cut down on the amount that I have eaten out and even ordered food, so that is a big way that I have not been spending money. I have also been trying to learn new things and that will take some subscribing to different apps or websites so that is one way that my spending habits have changed. But I can never find any good deals so it is always hard to spend money that wat. I also cut down on the amount I have been shopping because usually my family and I like to go to the mall and browse around and see if we need anything however because we can't browse in person it's a lot harder to pick out the things we want. I feel as if we shop better in person rather than online. 

Wrap up

With the Corona Virus continuing to take over the country, people are starting to wonder how long will this last? When will I be able to go out and eat again or pick up groceries without a mask? These are the questions all economists are asking each other. While this may seem like a simple chore to people or a nice night out, it really relies on a bigger system, the economy. With this in mind there are many questions circling policymakers and the government on whether or not to open up stores and restaurants again. However, as luxurious as it sounds being able to go out again, what cost will it bring to us and the progress we’ve made so far.

Take note:

From the article in the New York Times, “Economists are calculating when the cost of continuing to shutter restaurants, shopping malls and other businesses — a move that has already pushed some 10 million Americans into unemployment, with millions more on the way — will outweigh the savings from further efforts to slow the virus once the infection curve has flattened out.” This is important for readers to see how much the economy being closed is effecting the US, more specifically the people inside. Creating a safer environment may help with opening the economy again and letting the 10 million people and more get their job back. It is important to see how people may be struggling not just from not being to go out but not having people go out. This shows how much we can help our fellow citizens.

From the article in the New York Times, “That includes widespread agreement that the United States desperately needs more testing for the virus in order to give policymakers the first key piece of evidence they need to determine how fast the virus is spreading and when it might be safe for people to return to work.” This relates heavily to what is happening outside of our homes right now and creates a crucial reason to be patient when opening the economy. If policymakers don’t know how fast the virus is spreading it could set of a “bomb” and just redo the past 2 months of incredible virus rate with uncertainty of what will come. This is important to include in this article in order to show the risks related in opening up the economy so consumers understand that it’s not all good coming with opening it up. This can help cause less persuasion to open it up rather than keep it closed.

Lets ask ourselves...

Other than looking at unemployment rates and what is failing, are we able to see what is going to happen if we open the economy again? The answer to that question can vary. If we open it up too soon like the article stated toward the end Covid-19 could start spreading again at faster rates rather than staying at it’s slow rate. This means that all the progress we have made is down the drain and we have to start all over again. However there are more questions that come with this one such as when do we know when it will be ok to open the economy again? How can we stop the spread while keeping the economy open? The answers of those questions will take time to answer. As of right now there is still debate on whether or not we should open it, so once that’s answered we will be able to move onto when and how.

Tie up