• Second U.S. Virus Wave Emerges With Texas Hitting Record

    Second U.S. Virus Wave Emerges With Texas Hitting Record(Bloomberg) — Texas on Wednesday reported 2,504 new coronavirus cases, the highest one-day total since the pandemic emerged.A month into its reopening, Florida this week reported 8,553 new cases — the most of any seven-day period.California’s hospitalizations are at their highest since May 13 and have risen in nine of the past 10 days.A fresh onslaught of the novel coronavirus is bringing challenges for residents and the economy in pockets across the U.S. The localized surges have raised alarms among experts even as they’re masked by the nation’s overall case count, which early this week rose just under 1%, the smallest increase since March.“There is a new wave coming in parts of the country,” said Eric Toner, a senior scholar at the Johns Hopkins Center for Health Security. “It’s small and it’s distant so far, but it’s coming.”Though the outbreaks come weeks into state reopenings, it’s not clear that they’re linked to increased economic activity. And health experts say it’s still too soon to tell whether the massive protests against police brutality that have erupted in the past two weeks have led to more infections.In Georgia, where hair salons, tattoo parlors and gyms have been operating for a month and a half, case numbers have plateaued, flummoxing experts.Puzzling differences show up even within states. In California, which imposed a stay-at-home order in late March, San Francisco saw zero cases for three consecutive days this week, while Los Angeles County reported well over half of the state’s new cases. The White House Coronavirus Task Force has yet to see any relationship between reopening and increased cases of Covid-19, Food and Drug Administration Commissioner Stephen Hahn said on a podcast.But in some states, rising numbers outpace increases in testing, raising concerns about whether the virus can be controlled. It will take a couple of weeks to know, Toner said, but by then “it’s going to be pretty late” to respond.QuickTake: Where Are We in Quest for Coronavirus Drugs, Vaccine?Since the pandemic initially swept the U.S. starting early this year, almost 2 million people have been infected and more than 110,000 have died.After a national shutdown that arrested the spread, rising illness had been expected as restrictions loosened. The trend has been observed across 22 states in recent weeks, though many increases are steady but slow.In New York, the state hardest hit by Covid-19, Governor Andrew Cuomo only recently started reopening by region. New York City, the epicenter, began the first of four phases Monday.“We know as a fact that reopening other states, we’re seeing significant problems,” Cuomo said Tuesday. “Just because you reopen does not mean you will have a spike, but if you are not smart, you can have a spike.”Experts see evidence of a second wave building in Arizona, Texas, Florida and California. Arizona “sticks out like a sore thumb in terms of a major problem,” said Jeffrey Morris, director of the division of biostatistics at University of Pennsylvania’s Perelman School of Medicine.Arizona SpikeArizona’s daily tally of new cases has abruptly spiked in the last two weeks, hitting an all-time high of 1,187 on June 2.This week, its Department of Health Services urged hospitals to activate emergency plans. Director Cara Christ, told a Phoenix television station that she was concerned about the rising case count and percentage of people tested who are found to be positive.Valleywise Health, the public hospital system in Phoenix, has seen an increase in Covid-19 cases during the past two weeks. It’s expanded its intensive-care capacity and those beds are 87% full, about half with Covid patients, according to Michael White, the chief medical officer.White said Valleywise has adequate protective gear for staff, but hospitals aren’t getting their entire orders. A surge in Covid cases could put that supply under stress, he said.The increase in transmission follows steps to resume business and public life.“Within Phoenix, we’ve been more relaxed than I’ve seen in some of the other parts of the country,” White said, with some people disregarding advice to wear masks and maintain six feet of distance from others. “People are coming together in environments where social distancing is challenging.”Texas on Wednesday reported a 4.7% jump in hospitalizations to 2,153, the fourth consecutive daily increase. The latest figures showing an escalation came as Governor Greg Abbott tweeted a public service announcement featuring baseball legend Nolan Ryan urging Texans to wash their hands and to not be “a knucklehead.”Abbott was criticized for an aggressive reopening last month. Mobile-phone data show activity by residents is rebounding toward pre-Covid levels, according to the Children’s Hospital of Philadelphia’s PolicyLab.That could reflect a perception that the virus wasn’t “ever a big threat,” said Morris, who recently moved to Philadelphia after 20 years in Houston.Florida’s health department said in a statement that it attributes the increase in cases to “greatly expanded efforts in testing,” and noted that overall positivity rates remain low, at about 5.5%.Bucking the trend is Georgia, which was the first U.S. state to reopen. Covid cases there have plateaued. Despite local outbreaks in the state, “their sea levels did not rise,” said David Rubin, director of the PolicyLab, which has been modeling the virus’ spread. “They’ve kind of held this fragile equilibrium.”Creeping InCalifornia was the earliest state to shut down its economy over the coronavirus, after one of the nation’s first outbreaks in the San Francisco Bay Area. It has been slower than most to reopen.Even so, the state has also seen the number of people hospitalized with Covid-19 rebound in the past two weeks, as commerce accelerates. Case counts are climbing too, although officials attribute that to increased testing and say it’s a sign of preparation.In part, rising numbers represent the virus spreading into places that largely avoided the first round of infections, including rural Imperial County in California’s southeastern desert. Yet the contagion remains present in places that bore the brunt of the first wave, including Los Angeles County. Hospitalizations there are lower than at the start of May, but deaths remain stubbornly high, with 500 in the past week alone.Barbara Ferrer, Los Angeles County public health director, said the region has likely not seen the end of the first wave. And despite concerns about infections coming out of mass demonstrations in the sprawling city, she thinks the reopening of the economy will have a bigger impact.“We’re not at the tail end of anything,” Ferrer said. “We never had a huge peak. We’ve kind of been within this band. We’re not in decline, we’re kind of holding our own in ways that protect the health-care system.” But, she added, “go to Venice and see the crowds, and you’ll understand why I have concerns.”Another OnslaughtThe U.S. has long been bracing for another wave, but future outbreaks are likely to take a different shape. Social distancing and mask-wearing, as well as careful behavior by individuals, are likely to have staying power even as economies reopen.Experts are steeling for autumn, when changes in weather and back-to-school plans could have damaging repercussions.“The second wave isn’t going to mirror the first wave exactly,” said Lance Waller, a professor at Emory University’s Rollins School of Public Health in Atlanta. “It’s not snapping back to exactly the same thing as before, because we’re not exactly the way we were before.”Daniel Lucey, a fellow at the Infectious Diseases Society of America, compared the virus’ new paradigm with a day at the beach: The U.S. has been bracing for another “high tide” like the one that engulfed New York City. Today is a low tide, but “the waves are always coming in.”(Adds new Texas figures in first paragraph, Cuomo comments in 12th.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • JB Hi-Fi share price higher after upgrading profit guidance for FY 2020

    JB Hi-Fi share price

    The JB Hi-Fi Limited (ASX: JBH) share price is pushing higher on Thursday morning after the release of an announcement.

    At the time of writing the retailer’s shares are up almost 1% to $42.30. This compares to a sharp decline by the S&P/ASX 200 Index (ASX: XJO).

    What did JB Hi-Fi announce?

    Hot on the heels of a sales update by rival Harvey Norman Holdings Limited (ASX: HVN) yesterday, this morning JB Hi-Fi released one of its own.

    According to the release, the JB Hi-Fi Australia business has been performing very strongly during the pandemic.

    Second half sales are up 20% over the prior corresponding period both in total and on a comparable store sales basis. This compares to first half sales growth of 5.1% and brings its year to date growth to 11%.

    It doesn’t stop there. The company’s The Good Guys business has been performing even better. Its sales are up 23.5% so far in the second half. This has been a significant improvement on its performance during the first half, which saw the business deliver only a 1.5% increase in total sales. As a result of this impressive performance, The Good Guys sales are now up 10.7% year to date.

    Unfortunately, things weren’t anywhere near as positive for its JB Hi-Fi New Zealand business. It was forced to close its doors at the height of the pandemic, which has inevitably had a big impact on its second half sales. The business has recorded a 19.3% drop in sales so far this half, which means its year to date sales are now down 7.3%.

    Though, given how small this business is in comparison to the other two, I don’t think investors will be overly concerned with this news. Incidentally, management revealed that it is reviewing the carrying value of the New Zealand business and expects to make a non-cash impairment of $25 million in FY 2020.

    What has been the driver of JB Hi-Fi’s strong sales growth?

    Management advised that its strong sales growth in the second half has been driven by customers spending more time working, learning, and enjoying entertainment at home.

    Pleasingly, although the company has invested in additional operating costs associated with ensuring team members and customers remain safe during the pandemic, it has still experienced strong operating leverage from this elevated sales growth.

    As a result, management notes that both JB HI-FI Australia and The Good Guys have seen strong earnings growth during the second half.

    FY 2020 guidance.

    When the company released its half year results in February, it provided guidance for the full year. At the time, it expected total sales to be ~$7.33 billion with net profit after tax in the range of $265 million to $270 million. The latter represents an increase of 6.1% to 8.1% on the prior corresponding period.

    The following month the company understandably withdrew its guidance due to the uncertainty caused by the pandemic.

    This morning JB Hi-Fi has not just reinstated its guidance, but upgraded it materially.

    Barring any significant changes to its trading performance, management expects total sales of $7.86 billion and net profit after tax (after the aforementioned impairment) in the range of $300 million to $305 million. This will be a 20% to 22% increase on FY 2019’s profits.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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