Neiman Marcus Takes ‘Stunning Fall’ to Chapter 11

Neiman Marcus filed for bankruptcy protection on Thursday with its plans for a turnaround having been derailed by the coronavirus pandemic.CNBC said the Chapter 11 filing was a “stunning fall” for the luxury department store chain, which “had been struggling with competition from online rivals an...

By Matthew Heller • May 7, 2020

U.S. Treasury Shifts to Longer-Duration Debt

The U.S. Treasury Department will offer a 20-year bond for the first time since 1986 to fund its increased borrowing due to the government’s coronavirus relief spending.The 20-year bond is part of Treasury’s shift from bills to longer-duration securities as it seeks to borrow a record $3 trillion...

By Matthew Heller • May 7, 2020

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Tax policy shifts: What CFOs need to know to stay ahead

Discover how evolving tax policies are creating new opportunities and challenges for CFOs.

By CFO.com staff

U.S. Consumer Spending Plunges Record 7.5%

U.S. consumer spending fell by a record amount in March, reflecting the seismic shock to demand from coronavirus-related lockdowns.The Commerce Department reported Thursday that personal consumption expenditures declined by 7.5%, or $1.13 trillion, last month — the sharpest monthly drop on record...

By Matthew Heller • April 30, 2020

U.S. GDP Sinks 4.8% As Virus Ends Expansion

The longest economic expansion in U.S. history came to a shuddering halt in the first quarter as the coronavirus pandemic sent GDP tumbling into negative territory — with economists expecting far worse to come.The Commerce Department reported Wednesday that gross domestic product contracted 4.8% ...

By Matthew Heller • April 29, 2020

CMX Files Chapter 11 Amid Theater Shutdowns

CMX Cinemas, the eighth-largest U.S. movie theater operator, has filed Chapter 11 bankruptcy only a month after it called off its proposed acquisition of Texas chain Star Cinema Grill.CMX cited the economic crisis precipitated by the coronavirus pandemic that has shuttered theaters throughout the...

By Matthew Heller • April 28, 2020

Embraer, Boeing Clash Over $4B Deal Collapse

Brazil’s Embraer said Monday it has initiated an arbitration proceeding to recover damages against Boeing for scuttling a $4.2 billion deal between the two companies.After two years of negotiations, Boeing on Saturday cited an inability to agree on final terms in terminating its proposed acquisit...

By Matthew Heller • April 27, 2020

SBA Clarifies PPP Loan Guidelines Amid Uproar

The U.S. Small Business Administration has issued new guidance for the federal government’s small business relief program amid an outcry over publicly-traded companies receiving loans.To obtain funds from the Paycheck Protection Program, applicants must certify that “current economic uncertainty ...

By Matthew Heller • April 23, 2020

SunPower Idles Production as Virus Hits Demand

Shares in SunPower Corp. tumbled after the solar panel maker said it was temporarily shutting down production at all five of its factories due to the coronavirus crisis.In a regulatory filing, SunPower announced it was idling the factories in France, Malaysia, Mexico, the Philippines, and the U.S...

By Matthew Heller • April 21, 2020

Over 1.6M Small Firms Get Corona Crisis Loans

Around 1.66 million U.S. small businesses have secured $342 billion in loans under a federal coronavirus relief program, with construction companies taking the largest share.The Paycheck Protection Program is the centerpiece of the $2 trillion CARES Act that Congress passed last month, offering p...

By Matthew Heller • April 20, 2020

Jobless Claims Hit Record 22M Over Four Weeks

U.S. weekly jobless claims soared for a third straight week as the coronavirus pandemic effectively wiped out all the jobs added to the economy since the Great Recession.The Labor Department reported Thursday that 5.2 million Americans filed first-time claims for unemployment insurance in the wee...

By Matthew Heller • April 16, 2020

U.S. Retail Sales Plunge Record 8.7% in March

U.S. retail sales plunged by a record amount in March as coronavirus lockdowns kept consumers out of stores in almost all sectors, leaving only grocers, pharmacies and home centers posting gains.The Commerce Department reported Wednesday that retail sales fell 8.7% last month, the biggest decline...

By Matthew Heller • April 15, 2020

IMF Predicts Worst Slump Since Great Depression

The global economy will likely suffer its worst contraction this year since the Great Depression due to the coronavirus pandemic, with prospects for a recovery in 2021 shrouded in “extreme uncertainty,” the International Monetary Fund warned Tuesday.In its latest World Economic Outlook report, th...

By Matthew Heller • April 14, 2020

U.S. Consumer Prices Tumble 0.4% in March

U.S. consumer prices fell by the most in more than five years in March as the coronavirus pandemic pummeled demand, fueling concerns that the economy is heading toward deflation.The Labor Department reported Friday that the consumer price index dropped 0.4% last month amid a sharp decline in the ...

By Matthew Heller • April 10, 2020

Fed Offers More Support for Loans, Corporate Debt

The U.S. Federal Reserve on Wednesday announced a new $2.3 trillion package of measures to support the coronavirus-battered economy, including a $600 billion loan program for small and mid-size businesses.In addition to launching the Main Street Lending Program, the Fed is expanding its backstops...

By Matthew Heller • April 9, 2020

Saudi Investment Fuels Rally in Carnival Shares

Carnival Corp. shares continued to rally on Wednesday as news of Saudi Arabia’s investment in the world’s largest cruise operator raised investor hopes that it can stay afloat through the coronavirus crisis.The Saudi kingdom’s sovereign wealth fund disclosed on Monday that it had built an 8.2% st...

By Matthew Heller • April 8, 2020

SoFi Buys Payments Processor Galileo for $1.2B

SoFi has made a major move to add payments functionality to its personal finance platform by agreeing to acquire software company Galileo for $1.2 billion.Galileo specializes in application programming interfaces (APIs) that power functionalities including account set-up, direct deposit, ACH tran...

By Matthew Heller • April 8, 2020

Exxon Cuts Spending by 30% Amid Demand Crash

ExxonMobil said Tuesday it will slash capital spending this year by 30% — the largest cut any oil major has made in response to the coronavirus-driven crash in demand.More than 50 oil and gas companies so far have announced plans to reduce spending by more than $37 billion, with majors’ BP, Chevr...

By Matthew Heller • April 7, 2020

Moody’s Sees Potential Recovery in 2nd Half of 2020

The U.S. government’s economic policy response to the coronavirus could pave the way for a recovery in the second half of 2020 though downside risks to growth remain high, according to Moody’s Investor Service.In a report released on Monday, Moody’s said the fiscal and monetary response of the fe...

By Matthew Heller • April 6, 2020

Banks Brace for Crisis Loan Program Rollout

U.S. banks were bracing for the rollout Friday of a $350 billion loan program for struggling small businesses amid tensions over balancing due diligence with the need for timely approvals.The Paycheck Protection Program, a major component of the $2 trillion coronavirus emergency relief package pa...

By Matthew Heller • April 3, 2020

Weekly Jobless Claims Soar to Record 6.64M

First-time claims for unemployment benefits soared to a second straight record last week, reflecting what one economist called the “tectonic shift” in the labor market caused by the coronavirus crisis.The Labor Department reported Thursday that 6.64 million Americans filed for benefits in the wee...

By Matthew Heller • April 2, 2020

FTC Sues to Reverse Altria’s Investment in Juul

The Federal Trade Commission is seeking to unwind Altria’s $12 billion investment in Juul Labs, saying the deal was aimed at eliminating competition in the e-cigarette market.In an administrative complaint filed on Wednesday, the FTC said the December 2018 deal, which gave Marlboro maker Altria a...

By Matthew Heller • April 2, 2020

Global Manufacturing Dives Amid Virus Lockdowns

The coronavirus pandemic dealt a severe blow to manufacturing activity around the world in March, with even export powerhouses such as Germany and Japan experiencing sharp slowdowns.Germany’s manufacturing sector saw the steepest decrease in output in almost 11 years as IHS Markit’s Purchasing Ma...

By Matthew Heller • April 1, 2020

Xerox Bows to Virus, Drops HP Takeover Fight

After a five-month offensive, Xerox is dropping its hostile takeover bid for HP due to the turmoil in the financial markets caused by the coronavirus.Xerox had sweetened its cash-and-stock offer for HP to $24 per share in February, representing an equity value at the time of roughly $34 billion. ...

By Matthew Heller • April 1, 2020

Moody’s Cuts Corporate Debt Outlook to Negative

Moody’s Investors Service cut its outlook on corporate debt to negative from stable despite the Federal Reserve’s unusual move to keep the market functioning during the coronavirus crisis.The rating agency is expecting default rates to rise, with those sectors that are “most sensitive to consumer...

By Matthew Heller • March 31, 2020

Fitch Lowers Outlook for Consumer Finance Sector

Fitch Ratings on Monday lowered its credit outlook for the consumer finance sector, including credit card lenders, to negative from stable, warning that lenders’ credit performance could “deteriorate rapidly” as a result of the coronavirus crisis.The credit rating agency said it expects most cons...

By Matthew Heller • March 30, 2020