HOUSING

Coronavirus Turns Landlords Into Landserfs

Nearly one-third of U.S. apartment renters did not pay any April rent in the first week of the month, according to the National Multifamily Housing Council and a group of real estate data providers. 

• For comparison’s sake...19% of tenants did not pay any rent in the first week of March and 18% didn’t in April 2019. 

Zoom out: This is not a case of mass “I left the check on the kitchen table.” The statistic highlights the severe pressure the coronavirus crisis has put on personal finances. Nearly 10 million Americans filed for unemployment in the last two weeks of March alone. 

• A few notes about the data, to cover our bases: It does not count single-family homes and excludes public housing and subsidized affordable housing. 

What’s...going to happen? 

Local and state governments across the country have enacted eviction moratoriums to keep people in their homes—for example, in March NY Gov. Andrew Cuomo suspended evictions for 90 days. But this economic crisis will last longer than those moratoriums, so some officials predict a “tidal wave” of evictions in a few months unless they act.

There’s been some action:

• The $2.2 trillion rescue package from the federal government expands unemployment coverage and gives most Americans a one-time direct payment. That aid should help, though it’s not directly tied to the housing market.
• One NYC landlord became a folk hero when he waived April rent for his 200 tenants. 

But those stopgap measures aren’t enough on their own, especially because the real estate market has more moving parts than Westworld.

As Bloomberg’s Brian Chappatta writes, if tenants can’t afford to pay rent then property owners may default on mortgage payments. “That could bring the problem squarely onto the balance sheets of large U.S. banks.”

2020

Bernie Sanders Is Once Again Dropping Out

Sen. Bernie Sanders dropped out of the Democratic presidential nomination race yesterday. Pour one out, but only the 99%. 

• That leaves former VP Joe Biden as the presumptive nominee. 

Roll the tape: Sanders, a self-described “democratic socialist,” pitched heavy taxes on the wealthy, the middle class, and corporations to fund large government programs like making public colleges and universities free, eliminating student and medical debt, and reorienting the economy to combat climate change. 

• In late February, it looked like Sanders could take this thing home. But he stumbled hard in big state primaries like Florida and Michigan. 

Zoom out: He may be 0 for 2 in presidential primaries in the last four years, but Sanders has succeeded in pulling the Democratic Party left. Once pie-in-the-sky, initiatives he championed like Medicare for All and the Green New Deal now have the support of many Democrats. 

Looking ahead...Sanders will still be on the ballot as state primaries continue, enabling him to rack up delegates so he can exert more influence at the party convention in August.

BANKING

For Wells Fargo, Trust Is Given, Not Earned

Yesterday, the Federal Reserve temporarily lifted its cap on Wells Fargo’s growth, proving you can get out of any grounding by washing the dishes or committing to lend to struggling small businesses.

The Fed put a $1.95 trillion cap on Wells Fargo’s assets in 2018 as punishment for its fake account scandal. That meant Wells could only dole out $10 billion in loans to small businesses taking advantage of the government’s $349 billion Paycheck Protection Program (PPP).

Wells Fargo said it hit that $10 billion threshold in one weekend. As the U.S.’ No. 3 bank by assets, its participation in lending programs is as important as cold butter in your biscuit dough.

So the Fed loosened up. Now, Wells can exceed that asset cap c/o loans made through either 1) PPP or 2) the forthcoming Main Street lending program, a Fed/Treasury collab. Any money Wells Fargo makes on the loans goes to the Treasury or a small business-focused nonprofit.

Looking ahead...the bank gets a break “as long as the facilities are active.” So who knows how long.

SPONSORED BY CBS ALL ACCESS

We Are Not Jealous of This Show

Tooning Out The News features an animated cast of characters parodying top news stories while interviewing real-world guests and analysts. It’s a must-watch for any humor-loving newsie.

We want to make this clear: When we heard the minds behind The Late Show with Stephen Colbert and Showtime’s Our Cartoon President were launching a hysterical-yet-nuanced take on the news, we were happy for them. We watched it with our 30-day CBS All Access free trial, and we were not jealous. Not even a little.

We then put aside our non-jealousy and saw what else CBS All Access had to offer. They didn’t disappoint. We’re obsessed with The Good Fight, a scandalous drama from the creators of The Good Wife. And we regularly get lost in another world with the iconic Patrick Stewart in Star Trek: Picard.

From laugh out loud news to gut-punching dramas—and every episode of every Star Trek series—it’s on CBS All Access. Start watching with your 30-day free trial now.

DELIVERY

Social Distancing Is the Wind Beneath Wing

Lady Gaga’s benefit concert may be grabbing headlines, but Alphabet subsidiary Wing doesn’t need Lizzo or Paul McCartney to help people during the pandemic. 

What it does need: drones. Wing said yesterday its drone delivery service is adding vendors and new items as it experiences a "dramatic" uptick in customers. 

• Last April, Wing became the U.S.’ first drone operator to be FAA-certified as an air carrier, and in October it rolled out a test delivery program in the rural town of Christiansburg, VA. Deliveries have more than doubled in the area, Wing says. 
• The company partnered with FedEx and Walgreens, and now a local bakery, Mockingbird Cafe. 

Zoom out: Social distancing has fueled massive demand for delivery...but the work exposes human workers to contracting COVID-19, among other health risks. This is a moment for coronavirus-immune alternatives like autonomous vehicles and drones to prove they can save the day, Emerging Tech Brew writer Ryan Duffy reports.

SPORTS

Take Something Weird and Make It Weirder

With fans unable to attend the Chinese Professional Baseball League’s Opening Day on Saturday, the Rakuten Monkeys announced they’ll be putting robot mannequins in the seats. 

• “Since we are not allowed to have any fans in attendance, we might as well have some fun with it,” Monkeys general manager Justin Liu told the league’s website.

Hey Marlins, just...think about it. That's all. 

WHAT ELSE IS BREWING

• Broadway theaters will be closed for at least another two months.
• Disney+ has passed 50 million subscribers.
• McDonald’s global same-store sales fell 22% in March.
• Rocket Lab announced it successfully caught a falling Electron rocket stage in midair. That’s spacetalk for “we’re one step closer to reusing expensive rockets.”
• GM will manufacture 30,000 ventilators for the U.S. stockpile for $489 million.

FROM THE CREW

Brew's Bookshelf

Every other Thursday, we're bringing you a few of the Brew's favorite business-related reads.

• History: American Kingpin is Nick Bilton's unbelievable chronicle of how a young idealist who dubbed himself Dread Pirate Roberts built a billion-dollar dark web empire.
• Memoir: The Ride of a Lifetime chronicles Bob Iger's 15 years as Disney CEO. All we're saying is it takes something special at the top to run the world's most magical company.
• Management: Traction by Gino Wickman has been a guiding light for the Brew's leadership team. If you're looking for tools and strategies to lay out your business's goals and meet them, start here. 

Have a suggestion for us? Drop it here. We'll regularly feature some of our favorite reader recs.

BREW'S BETS

• Own your worth—and the future. UBS developed a financial participation website designed to help women take control of their finances. Find the tips and tools you’ll need for making the money moves that matter. Start with their money language quiz here.*
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• You’ve read about the couple stuck in the Maldives. You’ve obsessively stalked ticket prices for Amsterdam in the fall. Now, it’s time to understand how—and if—the global travel sector emerges from the pandemic that’s brought it to its knees. Listen to the latest episode of our Business Casual podcast to find out: Apple / Spotify / everywhere else

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