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The Covid-19 crisis is morphing into a payment crisis as companies tend to protect their working capital by paying their suppliers late. Defaults and insolvencies loom ahead. Companies need to understand structural payment patterns to help them triage bad payers from the good ones in finding their way back to growth.
The US equity market rally since 23 March has surprised and wrong-footed more than one professional investor. We see four valid explanations for the current decoupling between the U.S. equity market and economic fundamentals.
Covid-19 is sparking a profitability shock for SMEs in the construction sector. SMEs represent the lion’s share of companies in the construction sector, with about 80% of the sector’s turnover in Europe.