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The retail sector is bracing itself for a punishing stretch as coronavirus quarantines and lockdown orders continue with no end in sight. Amazon, Walmart, and a handful of other operators could come through the pandemic in a good position because of a surge in ecommerce, but the US$2.2 trillion stimulus bill will do little to help hard-hit brick-and-mortar retailers from sinking. Almost 630,000 retailers across the country have closed because of the pandemic, reports the Financial Times (30 March, Gray). That means US$430 billion in industry revenues could go up in smoke over the next three months. Desperate retailers are furloughing workers and postponing dividend payouts in an attempt to preserve cash, but that may not be enough to help struggling chains. Jan Rogers Kniffen, an industry consultant, predicted that 30 nationally-known US companies could file for bankruptcy protection this year because of the virus.

From "US Retailers Teeter on the Brink as 630,000 Outlets Close"
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The Nordic region is usually one of the richest and stablest corners of the globe, but it has not been immune to the damages inflicted by the novel coronavirus, reports Bloomberg (30 March, Pohjanpalo). Almost 630,000 of the region's 27 million people have been put on temporary leave in recent weeks, many without paychecks, while another 105,000 have been fired. Ole Erik Almlid, the chief of the Confederation of Norwegian Enterprise, said the damage from the COVID-19 pandemic is akin to a "tsunami" that is "getting worse" over time. Knut Hallberg, senior economist at Swedbank, characterized the situation in the Nordic region as "severe." The Nordic region has safety nets to help people who have dropped off payrolls, but even those generous social welfare programs, in addition to universal healthcare and free education, have not been able to stifle a sharp economic shock. Even the biggest Nordic companies are feeling the strain, with Volvo, Scandic Hotels, H&M, and the airlines SAS, Finnair, and Norwegian Air shuttering doors and putting employees on leave.

From "With 735,000 Jobs Lost, Rich Nordic Nations Are in Shock"
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Top in-house lawyers, along with other C-suite members, are seeing their compensation cut as the novel coronavirus continues to distress business, reports Bloomberg Law (30 March, Baxter). Accel Entertainment Inc. is going the whole nine yards by having its executive team forgo 100 percent of its pay until next month in the hopes that normal business will resume. Not every company is going all-in, but many are cutting salaries to preserve cash. Marriott International, Lands' End, and the Cheesecake Factory have all pledged to cut pay for their executives. According to Association of Corporate Counsel President Veta T. Richardson, it is an "unprecedented" move, as pay cuts have rarely been so extensive across the board. "GCs are among the corporate executives who are being personally impacted financially," Richardson reported. Lee Udelsman, the in-house counsel recruiting leader at Major Lindsey, said he hopes the executive compensation cuts are reflective of a temporary blip from certain segments of the economy.

From "Top Lawyers' Pay Cut as Coronavirus Brings C-suite Austerity"
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As many US companies in industries across the board fret about making it through the near future in a time of social distancing and lockdowns, one group in the financial services industry has seen an uptick in business. Restructuring and bankruptcy advisers and lawyers are doing booming business as they help strained companies negotiate new terms with lenders, vendors, employees, and more, reports the New York Times (30 March, Goldstein, Williams Walsh). Dion Hayes, a restructuring attorney at McGuireWoods based in Virginia, said he has already received a number of calls from "businesses that rely on foot traffic." Entertainment companies, meanwhile, have started seeking out advice, said Bryan Cave bankruptcy lawyer Sharon Weiss. Different pockets of business are being hit especially hard, with brick-and-mortar retailers, energy companies, and travel and hospitality businesses feeling the strain of the coronavirus. David M. Hillman, co-head of the private credit restructuring group at the law firm Proskauer Rose, predicted that the future will see "a massive amount of bankruptcies" and "an even greater amount of out-of-court restructurings." As a result, firms are shifting lawyers who normally focus on other matters to restructuring and bankruptcy-related projects.

From "Scary Times for US Companies Spell Boom for Restructuring Advisers"
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Goldman Sachs and Morgan Stanley on 27 March announced that they gained regulatory approval from the China Securities Regulatory Commission to assume control of their Chinese securities joint ventures, becoming the latest foreign banks to take advantage as China opens up its financial services sector. Goldman Sachs said it would raise its stake in its Gao Hua Securities Company effort from 33 percent to 51 percent, and started moving business units operating under Beijing Gao Hua Securities to one corporate entity. Politico Pro (27 March, Bray, Tudor-Ackroyd) notes Morgan Stanley separately announced that it would increase its ownership stake in Morgan Stanley Huaxin Securities from 49 percent to 51 percent.

From "Goldman Sachs, Morgan Stanley to Take Control of Mainland Joint Ventures as China Opens Up Financial Sector"
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Lawmakers and regulators are pressuring insurers to go beyond the legal language of policies to get cash to Americans amid the mounting cost of shutdowns from the coronavirus pandemic. Lawmakers in at least three states have introduced legislation that would force insurers to pay billions of dollars for business losses tied to government-ordered shutdowns, reports the Wall Street Journal (30 March, Scism). Elsewhere in the country, regulators are urging insurers to expand coverage under personal-car policies to also cover certain commercial activity, such as delivery of takeout meals by owners and employees of restaurants that are struggling to survive bans on dine-in eating. Still other regulators have imposed bans on policy cancellations and nonrenewals, while others are asking insurers to lower people's bills. But some insurers have threatened to challenge lawmakers and regulators in court, pointing out that there are specific contractual exclusions in most standard policies for claims stemming from viruses. Charles Chamness, president of trade group National Association of Mutual Insurance Companies, claimed the pressure from lawmakers and regulators could lead to "a second crisis: insurance insolvencies and impairments." But some lawmakers have said the depth of the pandemic makes bold legislative action necessary.

From "Pressure Mounts on Insurance Companies to Pay Out for Coronavirus"
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As companies shift to remote work in the midst of the COVID-19 pandemic, executives are turning to spy software to keep an eye on their workers even when employees are scattered to the winds, according to Bloomberg (27 March, Mosendz, Melin). The bank Axos Financial Inc., for example, informed its employees working from home that it would track their Internet activity and take a screenshot of their web browsers every 10 minutes or so. Workers at various companies have complained that the spy software is excessive and too intrusive, but executives have argued that the monitoring is necessary to improve productivity and prevent security incidents. Brad Miller, CEO of surveillance-software maker InterGuard, said firms "have been scrambling" to get the software, hoping that it will "maintain a level of security and productivity" even in the unprecedented work-from-home atmosphere. Software from InterGuard and other companies provide a combination of screen monitoring and productivity metrics, such as number of emails sent. Stacy Hawkins, a professor at Rutgers Law School, said employers should be careful not to use the spy software outside of working hours.

From "Bosses Buy Spy Software to Keep Tabs on Remote Workers"
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An Amazon spokesperson confirmed to CNBC (30 March, Palmer) that the company on Monday fired Chris Smalls, a management assistant at a Staten Island warehouse. Smalls organized a strike at the Staten Island facility on Monday to pressure Amazon into enhancing its coronavirus protections for warehouse workers. Smalls and other organizers said around 50 employees walked out on Monday to protest the lack of protections, but Amazon said the number was closer to 15. The Amazon spokesperson also said Smalls had been fired for ignoring "multiple warnings" that he was violating social distancing guidelines. According to the company, Smalls also refused to quarantine himself after coming into contact with an associate who tested positive for COVID-19. "This is unacceptable and we have terminated his employment as a result of these multiple safety issues," Amazon said. The company also disputed that workers were not protected. But New York Attorney General Letitia James blasted Amazon's firing of Smalls as "disgraceful" and urged the National Labor Relations Board (NLRB) to investigate. James also said the Office of the Attorney General will consider "all legal options."

From "Amazon Fires Warehouse Worker Who Led Staten Island Strike for More Coronavirus Protection"
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NeoPhotonics Corporation on Monday announced that Barbara Rogan will be its new senior vice president and general counsel, reports Yahoo Finance (30 March). Rogan has prior general counsel experience with Velodyne Lidar. She will report to NeoPhotonics Chairman and CEO Tim Jenks. Rogan obtained her JD from the University of California Hastings College of the Law. "Barbara’s breadth of legal experience and technology industry expertise in legal organizations and with deep intellectual property across global operations is an immediate asset to NeoPhotonics," Jenks said. Rogan said she "look[s] forward to helping to drive profitable growth at NeoPhotonics."

From "NeoPhotonics Appoints Barbara Rogan as Senior Vice President and General Counsel"
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German listed companies will be asked to suspend dividend payments to qualify for assistance designed to ease the impact of the coronavirus crisis, reports Bloomberg (30 March, Jennen). An Economy Ministry spokesman confirmed that Berlin will be able to set conditions on dividends as part of an aid program involving loans and guarantees from state bank KfW. The goal is to avoid credit being disbursed to shareholders, the spokesman said. Chancellor Angela Merkel’s government on Friday secured parliamentary approval for a stimulus package worth €750 billion. KfW, meanwhile, has €500 billion available to boost the liquidity of companies struggling to survive amid a collapse in demand.

From "Germany Wants Companies to Suspend Dividends for Virus Aid"
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Australia will spend AUS$130 billion to subsidize the wages of an estimated six million people, ushering in the third stage of a stimulus package designed to limit the fallout of the novel coronavirus on the country's economy. Prime Minister Scott Morrison said six months of funding is needed to ensure that businesses are able to retain staff and bounce back after the crisis, reports Reuters (29 March, Packham, Pandey). With the jobs funding, Australia's stimulus reached AUS$320 billion, accounting for 15 percent of the country's gross domestic product. Australia has one of the lowest numbers of coronavirus infections globally, but officials have warned against complacency. “This is not a time to take the foot off the brake,” Deputy Chief Medical Officer Paul Kelly said.

From "Australia Pledges AUS$80 Billion Wages Subsidy to Protect Jobs from Coronavirus"
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Bayer has agreed to pay US$39.6 million to settle a class-action suit in the United States over misleading marketing for its Roundup weedkiller. News of the settlement went public Monday when documents were revealed to a court in Kansas City, reports Deutsche Welle (31 March, Martin). The lawsuit centered on how Monsanto, which was acquired by Bayer in 2018 for more than US$60 billion, failed to list the pesticide's health risks on Roundup labeling. Roundup contains the controversial active ingredient glyphosate, which has been linked to cancer. In addition to the almost US$40 million sum, the terms of the settlement dictate that Bayer will improve Roundup's labeling. Bayer said in a statement that it welcomes the settlement agreement, which came after several years of litigation in multiple federal court districts. Bayer still faces more than 48,500 other lawsuits in the United States over the alleged cancer risks, and analysts have predicted that the company could shell out US$10 billion to settle all the cases.

From "Bayer Agrees US$39.6 Million Settlement Over Monsanto's Roundup Labeling"
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The retailer Hennes & Mauritz (H&M) is pressuring its UK landlords to allow early exits from leases if sales do not rebound in the aftermath of the COVID-19 pandemic, increasing the strain on shopping center landlords already reeling from the impact of the virus. H&M made its request in a letter seen by the Financial Times (27 March, Hammond, Eley), writing that it wanted to be able to break leases with one month's notice "subject to trading conditions not returned to pre-COVID-19 levels by 24 June 2020." Meanwhile, H&M is also pressing its landlords for second-quarter waivers on rent and service charges. The second-largest fashion retailer in the world has already warned that it may be forced to cut jobs because of the pandemic, which has shuttered more than two-thirds of its 5,000 shops worldwide. An H&M spokesperson called it "an extreme situation," and said it felt a "joint responsibility" along with its landlords to "ensure a financially stable and sustainable future for our businesses." But a retail property expert did not have a glowing review for H&M, calling it "habitually the most aggressive tenant in the world."

From "H&M Threatens to Exit UK Leases Early Without Sales Revival"
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In an effort to better protect the health of both employees and customers at its stores, Walmart is installing plexiglass barriers in the pharmacy lanes at Walmart and Sam's Club stores, reports Drug Store News (26 March, Berthiaume). The company also plans to install the sneeze guards at regular Walmart registers in the coming weeks. "Staying safe and healthy is more important than ever for our associates, our customers, and for us," said Dacona Smith, executive vice president and COO, Walmart US, at Walmart and Sam's Club stores, in a corporate blog post. "Installing these barriers is another way Walmart is helping bring peace of mind that we are doing everything we can to keep our people and our stores safe." The company also said it is using the Hart brand backpack sprayer kit to sanitize shopping carts more quickly and thoroughly, and it is installing floor decals at store entrances and checkout lanes to help customers judge the proper social distance from each other. "Washing hands and social distancing are two of the most important things people can do right now to stay safe — but sometimes it can be difficult to judge the six-foot distance,” said Smith.

From "Walmart, Sam's Club Adding Plexiglass Barriers to Pharmacy Lanes"
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Sources familiar with the matter have said that Virgin Atlantic will in the coming days ask the United Kingdom for a package of commercial loans and guarantees worth hundreds of millions of pounds. If Virgin Atlantic does so, it would become the first airline to request state aid after London said it should only be used as a "last resort," reports the Financial Times (27 March, Hollinger, Edgecliffe-Johnson, Pickard). Other carriers, including easyJet, Loganair, Eastern Airways, and Norwegian Air Shuttle are reportedly considering following Virgin Atlantic's lead. Rishi Sunak, the Chancellor of the Exchequer, earlier this month said the government expects the airline industry to exhaust other options in search of cash before turning to London. A government official said there could be political hurdles to helping easyJet and Virgin Atlantic.

From "Virgin Atlantic Set to Ask for UK Aid"
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Toyota Motor Corp.'s North American unit confirmed Friday it would produce face shields, ventilators, and respirators to aid in the fight against the COVID-19 coronavirus. The automaker said it would start production on the personal protective equipment this week, reports Reuters (27 March). Toyota is set to use 3D-printing to make the face shields, and is looking for a partners to produce COVID-19 mask filters. The first batch of Toyota face shields will be distributed to Houston, Dallas, Indiana, Kentucky, and Michigan, the company said. Toyota is also finalizing agreements with at least two medical device makers that produce ventilators and respirators to help boost their capacity.

From "Toyota to Make Face Masks in United States to Aid Coronavirus Battle"
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Canadian oil and gas companies have urged Ottawa to free up credit and cash as they struggle through two major threats, the COVID-19 coronavirus and a crude price war. The companies have made suggestions ranging from tax deferrals to backstopping bank loans and more, reports Reuters (25 March, Nickel, Ljunggren). An industry source confirmed that the Canadian government is considering ways to backstop banks to ensure they allow oil companies to access existing and new lines of credit, preventing massive job losses. The energy industry has also asked for cost relief, including postponement of royalty collection and waiving or deferring Canada Pension Plan and Employment Insurance premiums, as well as federal sales tax, according to the source, who spoke anonymously because negotiations and brainstorming are ongoing. A separate source claimed that Canadian oil and gas firms are mostly preoccupied with addressing liquidity.

From "Canadian Oil Companies Ask Government for Cash, Credit to Survive"
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Oil prices fell to the lowest in more than 17 years, CNBC News (30 March, Tan) reports, as demand plunged as a result of the pandemic and an unrelenting price war between Saudi Arabia and Russia showed no signs of easing. Brent crude prices dipped to US$23.03 a barrel on Monday morning during Asia hours, the lowest level since 2002. Meanwhile, US West Texas Intermediate crude futures briefly fell under US$20 per barrel to US$19.90. There remains no breakthrough in the oil price war between Saudi Arabia and Russia. On Friday, the two countries were still at a stalemate, with Saudi Arabia saying it was not in talks with Russia to stabilize oil markets despite Washington stepping in to pressure both sides.

From "Oil Prices Fall to 17-Year Low"
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The tech giant Apple Inc. has partnered with the White House and federal agencies to release an app and website that will direct users to guidance from the Centers for Disease Control and Prevention (CDC) on the disease caused by the coronavirus, reports Reuters (27 March). The app, which is called COVID-19 on the App Store, will ask users questions about symptoms, location, and risk factors and then provide the appropriate up-to-date guidance from the CDC, White House officials said. Apple is also making the service available for non-iPhone users by creating a website that is accessible to the users of Windows PCs, Android phones, and other non-Apple devices. Apple affirmed that it would not collect the data users give the app and website, and that the information would not be sent to any government body. This is not the first time Apple has assisted with COVID-19 treatment. The company's CEO, Tim Cook, earlier this month announced that Apple donated 10 million protective masks to US healthcare groups.

From "Apple Works with White House to Release COVID-19 App, Website"
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Joe Alter, the longtime top lawyer for AK Steel Holding Corp., has announced that he will step down as general counsel "in the next couple of weeks." Alter's departure comes after AK Steel's US$3 billion acquisition by Cleveland-Cliffs Inc., reports Law.com (27 March, Bantz). Alter has worked in the AK Steel legal department for 11 years, and has served as general counsel and corporate secretary for six years. Alter said he was "excited" about AK Steel's future with Cleveland-Cliffs, and expressed gratitude for his colleagues. Prior to becoming AK Steel's top lawyer, Alter was its corporate counsel, chief compliance officer, and assistant general counsel.

From "AK Steel's Longtime General Counsel to Depart After US$3 Billion Acquisition"
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