FEI Weekly

March 31, 2020

SpaceX rival OneWeb files for bankruptcy over COVID-19 and companies with this are better prepared for a crisis.

SpaceX Rival OneWeb Files for Bankruptcy Over COVID-19

ZD Net

A week after launching 34 satellites, space broadband contender OneWeb on Friday filed for Chapter 11 bankruptcy in a New York court after funding talks with its main investor Softbank collapsed due to coronavirus COVID-19 market turbulence. The company said it was "close to obtaining financing, but the process did not progress because of the financial impact and market turbulence related to the spread of COVID-19".

SEC Chair: 'We Shouldn’t Be Banning Short Selling'

CNBC

SEC Chairman Jay Clayton said Monday that the practice of short selling is needed to “facilitate ordinary market trading.” However, he said the SEC did replace the old uptick rule (which only allowed investors to short a stock or a security on an uptick) with a new measure to help mitigate the volatility that short selling can bring to an already agitated market like the one that investors have been dealing with for weeks now because of the coronavirus crisis.

New Benefits to Address COVID-19 Impact

Yahoo Finance

Earlier in March, the Families First Coronavirus Response Act (FFCRA) was signed into law, requiring certain employers to offer paid sick or family leave to workers affected by COVID-19. However, the law only applies to businesses that have between 50 and 499 employees, leaving many workers wanting paid leave legislation expanded. A survey of 500 human resources and benefits leaders from March 18 to 20 found that 93% of respondents said their organization was offering employees new family benefits in response to the crisis. More than 50% of respondents had added benefits to support working parents in particular, such as live coaches and expert guides.

The Agency CFO Is Going to Be This Year’s MVP

Digiday

Agency businesses — like so many other businesses — that come out the other side of this crisis will probably look very different to when they went in. But, ultimately, those with strong cash positions going into this crisis are more likely to emerge even stronger on the way out, which is why the CFO has quickly shifted to the driver’s seat at many agencies. “Agencies are famous for being run on creativity and growth, but in these uncertain times, they have to be run on a more mundane, practical basis,” said Greg Paull, principal at marketing consultancy R3. “The agency CFO is going to be this year’s MVP.”

Companies With High ESG Ratings are Better Prepared for a Crisis

Forbes

As we move through this coronavirus crisis we are increasing our appreciation for authenticity, communication, trust, relationships, verifiable facts and being prepared. It turns out these are the same criteria investing experts use for ESG ratings. Companies with high ESG ratings protect employees in the workplace, a vital factor in any crisis, especially an infectious disease like COVID-19.