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Olympics Delay Leaves Big Spending Plans Up in the Air: Live Updates Olympics Delay Leaves Big Spending Plans Up in the Air: Live Updates
(32 minutes later)
Companies with billions of dollars tied up in the Olympics are now rushing to implement backup plans after officials in Japan postponed the games.Companies with billions of dollars tied up in the Olympics are now rushing to implement backup plans after officials in Japan postponed the games.
More than $10 billion in advertising arrangements, sponsorship deals and promotional events were linked to the summer games, which had been scheduled for July, according to the market intelligence service Sportcal. Companies often create elaborate campaigns around the Olympics, the most-watched sporting event in the world, recruiting athletes to star in Olympics-themed commercials and scheduling products to debut in promotional tie-ins.More than $10 billion in advertising arrangements, sponsorship deals and promotional events were linked to the summer games, which had been scheduled for July, according to the market intelligence service Sportcal. Companies often create elaborate campaigns around the Olympics, the most-watched sporting event in the world, recruiting athletes to star in Olympics-themed commercials and scheduling products to debut in promotional tie-ins.
Companies such as Coca-Cola, Airbnb, General Electric, Procter & Gamble and Visa had signed on as sponsors for the 2020 games.Companies such as Coca-Cola, Airbnb, General Electric, Procter & Gamble and Visa had signed on as sponsors for the 2020 games.
But on Tuesday, the International Olympic Committee and Prime Minister Shinzo Abe of Japan said that the games would be delayed, possibly for a full year.But on Tuesday, the International Olympic Committee and Prime Minister Shinzo Abe of Japan said that the games would be delayed, possibly for a full year.
Now, “commercial plans four years in the making are being hastily rewritten around the world,” said Conrad Wiacek, head of analysis and consulting for Sportcal, in a statement.Now, “commercial plans four years in the making are being hastily rewritten around the world,” said Conrad Wiacek, head of analysis and consulting for Sportcal, in a statement.
NBCUniversal, the main American broadcaster of the Summer Games since 1988 and the Winter Games since 2002, had already sold more than $1.25 billion in advertising commitments for 7,000 hours of planned broadcast, streaming and social media content. The media giant was set to send more than 2,000 people to Japan for the games.NBCUniversal, the main American broadcaster of the Summer Games since 1988 and the Winter Games since 2002, had already sold more than $1.25 billion in advertising commitments for 7,000 hours of planned broadcast, streaming and social media content. The media giant was set to send more than 2,000 people to Japan for the games.
NBC Universal said in a statement on Tuesday that it is “actively working with our advertising partners to navigate this postponement.”
The Olympics shake-up is roiling the media industry as it tries to adjust to other sporting events canceled or rescheduled by the N.C.A.A., the N.B.A., M.L.B. and more.The Olympics shake-up is roiling the media industry as it tries to adjust to other sporting events canceled or rescheduled by the N.C.A.A., the N.B.A., M.L.B. and more.
The Olympics are attractive because “it helps you reach a lot of young people, like cord-cutters who ordinarily don’t watch a lot of TV,” said Ross Benes, an analyst with eMarketer.The Olympics are attractive because “it helps you reach a lot of young people, like cord-cutters who ordinarily don’t watch a lot of TV,” said Ross Benes, an analyst with eMarketer.
“I don’t think advertisers have had time to fully adjust,” he said. “There’s no precedent for what they should do, even if they have very thorough contracts written up.”“I don’t think advertisers have had time to fully adjust,” he said. “There’s no precedent for what they should do, even if they have very thorough contracts written up.”
A glimmer of hope that lawmakers in Washington would finally reach a deal to stabilize America’s stricken economy helped fuel a rebound in financial markets on Tuesday.A glimmer of hope that lawmakers in Washington would finally reach a deal to stabilize America’s stricken economy helped fuel a rebound in financial markets on Tuesday.
After Democrats in the Senate had blocked progress on a $1.8 trillion economic stimulus package, lawmakers signaled late Monday they were closing in on a deal to bail out companies and send checks of up to $1,200 to many Americans.After Democrats in the Senate had blocked progress on a $1.8 trillion economic stimulus package, lawmakers signaled late Monday they were closing in on a deal to bail out companies and send checks of up to $1,200 to many Americans.
The S&P 500 rose as much as 7 percent in early trading, and stocks in Europe and Asia also climbed.The S&P 500 rose as much as 7 percent in early trading, and stocks in Europe and Asia also climbed.
The gains came even as investors were faced with more evidence of the economic toll of the outbreak. Companies, from General Motors to the Boeing supplier Spirit AeroSystems, detailed the impact of production shutdowns on their business, and new survey of activity in Europe showed a plunge in business across the region. Also on Tuesday, Japan said the Summer Olympics in Tokyo will be postponed for a year — a blow to broadcasters and advertisers who bet big on the viewership of the games — and India said it would impose a three week lockdown.The gains came even as investors were faced with more evidence of the economic toll of the outbreak. Companies, from General Motors to the Boeing supplier Spirit AeroSystems, detailed the impact of production shutdowns on their business, and new survey of activity in Europe showed a plunge in business across the region. Also on Tuesday, Japan said the Summer Olympics in Tokyo will be postponed for a year — a blow to broadcasters and advertisers who bet big on the viewership of the games — and India said it would impose a three week lockdown.
But the rally on Tuesday was in part a rebound from a difficult stretch for stock investors. On Monday, the S&P 500 fell about 3 percent as Congress struggled to overcome differences on the aid bill and traders remained cautious about the Federal Reserve’s ability to cushion an economy in free-fall. Stocks are down almost 30 percent since their peak in February.But the rally on Tuesday was in part a rebound from a difficult stretch for stock investors. On Monday, the S&P 500 fell about 3 percent as Congress struggled to overcome differences on the aid bill and traders remained cautious about the Federal Reserve’s ability to cushion an economy in free-fall. Stocks are down almost 30 percent since their peak in February.
After a month of mind-bending turns in the market, investors are still fragile and could sour on stocks if the promised deal is snagged again, or as further evidence of the economic damage caused by containment efforts becomes evident. The U.S. government will report weekly jobless claims on Thursday and some analysts expect the data to show that millions of Americans became unemployed last week.After a month of mind-bending turns in the market, investors are still fragile and could sour on stocks if the promised deal is snagged again, or as further evidence of the economic damage caused by containment efforts becomes evident. The U.S. government will report weekly jobless claims on Thursday and some analysts expect the data to show that millions of Americans became unemployed last week.
“Yesterday was as ugly a day to watch the legislative process as I have ever seen,” Dan Clifton, a partner at Strategas Research Partners, a financial and economic consulting firm, wrote in an email. “Continued delays over the Senate vote or the House process will not be viewed kindly by investors, given the postponements in getting this packaged passed already.”“Yesterday was as ugly a day to watch the legislative process as I have ever seen,” Dan Clifton, a partner at Strategas Research Partners, a financial and economic consulting firm, wrote in an email. “Continued delays over the Senate vote or the House process will not be viewed kindly by investors, given the postponements in getting this packaged passed already.”
In Europe, markets were led on Tuesday by Germany, where stocks rose more than 7 percent. Those gains followed a similar performance in Asia, where major markets around the region posted increases that ranked among their biggest gains in weeks.In Europe, markets were led on Tuesday by Germany, where stocks rose more than 7 percent. Those gains followed a similar performance in Asia, where major markets around the region posted increases that ranked among their biggest gains in weeks.
The chairman of the National Economic Council, Larry Kudlow, told reporters on Tuesday that the White House was taking a “fresh look” at calls to reopen parts of the economy amid lockdowns that states and cities have imposed to slow the spread of coronavirus.
His comments followed similar words from President Trump, who on Monday said he expected the U.S. economy would reopen sooner rather than later.
“It’s going to be soon. It’s not going to be three or four months, as some people were saying and a lot of people thought originally,” Mr. Trump said.
Public health officials say lockdowns and stay-at-home orders — which now cover about 100,000 Americans — are critical to saving potentially hundreds of thousands of lives from the pandemic. Many economists say lifting them prematurely would actually hurt the economy, by driving up infection and death rates and undermining Americans’ confidence that they could safely buy even necessary items.
But Mr. Kudlow suggested it might be possible to “target zones where the virus is less prevalent” for lifting restrictions — despite a lack of widespread testing for the virus in the United States.
Global airline revenues are on track to be $252 billion lower this year than in 2019, representing the worst economic crisis in the history of aviation, the International Air Transport Association said on Tuesday.Global airline revenues are on track to be $252 billion lower this year than in 2019, representing the worst economic crisis in the history of aviation, the International Air Transport Association said on Tuesday.
That figure is more than double the worst-case scenario the industry group laid out earlier this month.That figure is more than double the worst-case scenario the industry group laid out earlier this month.
Without immediate aid from governments around the world, almost half of the airlines around the world could die “in the coming weeks,” Alexandre de Juniac, the group’s chief executive, said in a call with reporters on Tuesday.Without immediate aid from governments around the world, almost half of the airlines around the world could die “in the coming weeks,” Alexandre de Juniac, the group’s chief executive, said in a call with reporters on Tuesday.
“We clearly need massive action very quickly, urgently,” he said.“We clearly need massive action very quickly, urgently,” he said.
As the coronavirus pandemic brings the global economy to an astonishing halt, the world’s most vulnerable countries are suffering intensifying harm.As the coronavirus pandemic brings the global economy to an astonishing halt, the world’s most vulnerable countries are suffering intensifying harm.
Businesses faced with the disappearance of sales are laying off workers. Households short of income are skimping on food. International investment is fleeing so-called emerging markets at a pace not seen since the global financial crisis of 2008.Businesses faced with the disappearance of sales are laying off workers. Households short of income are skimping on food. International investment is fleeing so-called emerging markets at a pace not seen since the global financial crisis of 2008.
The pandemic is unfolding just as many poor countries are confronting debts that limit their ability to help those in need. Since 2007, total public and private debt in emerging markets has multiplied from about 70 percent of annual economic output to 165 percent, according to Oxford Economics.The pandemic is unfolding just as many poor countries are confronting debts that limit their ability to help those in need. Since 2007, total public and private debt in emerging markets has multiplied from about 70 percent of annual economic output to 165 percent, according to Oxford Economics.
The pandemic has triggered a sharp reversal of international investment away from emerging markets and toward the safety of United States government bonds. That shift has reignited fears that some countries could be sliding toward insolvency and default — especially Argentina, Turkey and South Africa.The pandemic has triggered a sharp reversal of international investment away from emerging markets and toward the safety of United States government bonds. That shift has reignited fears that some countries could be sliding toward insolvency and default — especially Argentina, Turkey and South Africa.
Business activity in the eurozone plunged in March at unprecedented rates, according to surveys by IHS Markit.Business activity in the eurozone plunged in March at unprecedented rates, according to surveys by IHS Markit.
“Business activity across the eurozone collapsed in March to an extent far exceeding that seen even at the height of the global financial crisis,” said Chris Williamson, the chief business economist at IHS Markit. He added that “there’s scope for the downturn to intensify further” if stricter lockdowns were to be put in place to deal with the virus.“Business activity across the eurozone collapsed in March to an extent far exceeding that seen even at the height of the global financial crisis,” said Chris Williamson, the chief business economist at IHS Markit. He added that “there’s scope for the downturn to intensify further” if stricter lockdowns were to be put in place to deal with the virus.
Business activity in Germany dived to 37.2 points in March from 50.7 points in February, the lowest level since February 2009.Business activity in Germany dived to 37.2 points in March from 50.7 points in February, the lowest level since February 2009.
The purchasing managers index in France plummeted to 30.2 in March from 51.9 in February, the lowest point in nearly 22 years.The purchasing managers index in France plummeted to 30.2 in March from 51.9 in February, the lowest point in nearly 22 years.
Britain’s index fell to 37.1 from 53 in February, the lowest point since comparable figures have been available.Britain’s index fell to 37.1 from 53 in February, the lowest point since comparable figures have been available.
SoftBank’s share price jumped by 19 percent in Tokyo on Tuesday after news that the company would sell up to $41 billion in assets to buy back $18 billion in stock and pay down debt. But as today’s DealBook newsletter asks, what’s next for the Japanese conglomerate?SoftBank’s share price jumped by 19 percent in Tokyo on Tuesday after news that the company would sell up to $41 billion in assets to buy back $18 billion in stock and pay down debt. But as today’s DealBook newsletter asks, what’s next for the Japanese conglomerate?
SoftBank is selling assets in a chaotic market, potentially fetching poor prices. But provided it can raise the money, depressed asset values also allow it to buy back its own shares at a significant discount to their sum-of-the-parts valuation. Investors are happy with the trade-off, DealBook hears. The move suggests, however, a more defensive posture for the company known for ambitious deal-making, albeit in companies like Uber, WeWork and Oyo that are now vulnerable to the coronavirus-driven economic downturn.SoftBank is selling assets in a chaotic market, potentially fetching poor prices. But provided it can raise the money, depressed asset values also allow it to buy back its own shares at a significant discount to their sum-of-the-parts valuation. Investors are happy with the trade-off, DealBook hears. The move suggests, however, a more defensive posture for the company known for ambitious deal-making, albeit in companies like Uber, WeWork and Oyo that are now vulnerable to the coronavirus-driven economic downturn.
In the first 10 days of March, some of the commentators on Fox News and Fox Business played down the threat of what would soon be recognized as a pandemic.
Many of the networks’ older, pro-Trump viewers responded to the coverage and the president’s public statements by taking the virus less seriously than others.
But one elderly Fox News viewer, a crucial supporter of President Trump, took the threat seriously: The channel’s chairman, Rupert Murdoch, who was to celebrate his 89th birthday on March 11.
On March 8, as the virus was spreading, the Murdoch family called off a planned party out of concern for the patriarch’s health, according to a person familiar with the cancellation. There were about 20 people on the guest list.
The canceled party is perhaps the most glaring instance of the gap between the elite, globally minded family owners of Fox — who took the crisis seriously as reports emerged in January in their native Australia — and many of their nominal stars, who treated the virus as a political assault on Mr. Trump, before zigzagging, along with the president, toward a focus on the enormity of the public health risk.
General Motors said it would draw down a $16 billion credit line as it “aggressively pursued austerity measures” to mitigate the business impact of the coronavirus.General Motors said it would draw down a $16 billion credit line as it “aggressively pursued austerity measures” to mitigate the business impact of the coronavirus.
Toyota plans to suspend production at five of its plants in Japan because of “the condition of overseas markets and demand,” the company said in a statement on Monday.Toyota plans to suspend production at five of its plants in Japan because of “the condition of overseas markets and demand,” the company said in a statement on Monday.
Reporting was contributed by Tiffany Hsu, Niraj Chokshi, Elaine Yu, Ben Dooley, Jason Karaian, Carlos Tejada and Daniel Victor. Reporting was contributed by Tiffany Hsu, Niraj Chokshi, Elaine Yu, Ben Dooley, Jason Karaian, Carlos Tejada, Jim Tankersley and Daniel Victor.