FT News Briefing Amazon Covid-19 costs, Boeing taps bond market, UK recruits fruit pickers
May 1, 2020
Amazon has revealed that COVID-19 precautions could lead to a staggering $4 billion in costs, potentially erasing pandemic-related sales increases. Meanwhile, Boeing is securing $25 billion through the bond market to stabilize amidst financial turbulence. In the UK, fruit farming faces serious labor shortages exacerbated by travel restrictions and Brexit, making it increasingly difficult to recruit seasonal workers. The struggles highlight a critical reliance on overseas labor and the challenges of filling essential roles in agriculture.
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Amazon's COVID Costs
- Amazon's Q1 2020 net sales hit a record $75.5 billion, exceeding Wall Street's expectations.
- Despite projecting record Q2 revenues, Amazon anticipates COVID-related costs will offset gains.
Soaring COVID-Related Expenses
- Amazon's COVID-related expenses, projected to reach $4 billion in Q2 2020, will likely negate profit increases.
- These costs stem from safety measures, increased staffing, and logistical adjustments.
Boeing's Debt Soars
- Boeing secured a $25 billion bond offering to address a cash drain worsened by the pandemic.
- This raises their total debt to $64 billion and reflects increased borrowing costs.