BWIB Finance Newsletter

Wednesday, March 24 to Tuesday, March 30, 2021

The giant container ship, Ever Given, was stuck in the Suez Canal for 6 days

  • The Suez Canal is the fastest route from Asia and the Middle East to Europe and the east coast of the US. Some ships had rerouted around the southern tip of Africa, which will cost more than $2,600 in fuel costs per extra day.
  • 12% of global trade passes through the canal and this blockage has stopped about $9.6B worth of ship traffic from going through each day.
  • The shortage of shipping containers needed to transport goods around the world had emerged during COVID, and this situation further strained global supply chains.

Remote work could bring permanent change to companies and office space

  • J.P. Morgan Chase & Co., Salesforce.com Inc., and PricewaterhouseCoopers are a few of the major firms that are unloading office space and encouraging remote work.
  • At the end of 2020, 137 million square feet of office space was available for sublease, which was a 40% increase from the previous year.
  • Many companies have been cutting costs and are planning to implement work from home at least part time, which has been hurting demand for the commercial real estate realm.

Volkswagen April Fool’s name change prank: ‘Voltswagen of America’.

  • Volkswagen will not be changing the name of U.S. operations to ‘Voltswagen of America’. It was an April Fool’s prank to market the company’s all-electric ID.4.
  • The company is planning to elaborate on the marketing strategy on Wednesday morning, March 31st.
  • Additionally, Volkswagen has committed to sell one million electric vehicles by 2025.

M&A Deals

  • Madison Square Garden Entertainment agreed to acquire media operator MSG Networks Inc. for over $900M in a deal to tap into the rise of sports gambling. (Source: WSJ)
  • Spotify acquired the sports-talk app Locker Room and its maker Betty Labs, valuing the company at around $50M. (Source: WSJ)

Technology Industry

  • Apple’s new iPhone software, which has been delayed in its rollout to give partners more time to prepare, will make it harder for companies to target certain iPhone users with ads. Facebook warns investors that this change poses a risk to its business. (Source: WSJ)

A Little Bit of Everything (retail, stocks, government)

  • Hedge fund Archegos Capital Management sold almost $30B worth of shares of ViacomCBS and Discovery, causing those 2 companies’ stock prices to plunge even with no significant company news. (Source: WSJ)
  • Biden has laid out his plan to revamp America’s infrastructure and will travel to Pittsburgh on Wednesday for a speech. (Source: CNBC)

Written By:

Director: Jacquline Ruan

Managers: Vaibhavi Bamane, Melissa Chen, Stacy Kim

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