'How Bad Could It Get? Companies Gauge the Coronavirus Impact' diff viewer (5/6)

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How Bad Could It Get? Companies Gauge the Coronavirus Impact	How Bad Could It Get? Companies Gauge the Coronavirus Impact
2020-06-17 15:25:06 UTC	2020-06-19 03:48:26 UTC (1 day later)
As the coronavirus outbreak spreads, the world’s biggest companies have begun painting a bleak picture of broken supply chains, disrupted manufacturing, empty stores and flagging demand for their wares.	As the coronavirus outbreak spreads, the world’s biggest companies have begun painting a bleak picture of broken supply chains, disrupted manufacturing, empty stores and flagging demand for their wares.
The announcements by businesses like Mastercard, Microsoft, Apple and United Airlines offer a reading on how the virus is affecting consumer behavior and business sentiment. These corporate bulletins — and what executives do in response — could determine how much economic damage the outbreak inflicts and whether a recession looms.	The announcements by businesses like Mastercard, Microsoft, Apple and United Airlines offer a reading on how the virus is affecting consumer behavior and business sentiment. These corporate bulletins — and what executives do in response — could determine how much economic damage the outbreak inflicts and whether a recession looms.
Some companies have expressed optimism that governments will curb new infections and that consumer spending in Europe and North America will be largely unscathed. But if executives see a threat beyond the first three months of the year, they may pare planned investments and even start laying off workers. That, in turn, would further dampen economic activity.	Some companies have expressed optimism that governments will curb new infections and that consumer spending in Europe and North America will be largely unscathed. But if executives see a threat beyond the first three months of the year, they may pare planned investments and even start laying off workers. That, in turn, would further dampen economic activity.
The stock-market plunge this week, the steepest since the financial crisis, suggests that investors are bracing for a lot more bad news.	The stock-market plunge this week, the steepest since the financial crisis, suggests that investors are bracing for a lot more bad news.
“Everything is slowing down even more — and that has not been fully appreciated,” said Michael O’Rourke, chief market strategist at JonesTrading.	“Everything is slowing down even more — and that has not been fully appreciated,” said Michael O’Rourke, chief market strategist at JonesTrading.
The correction in the S&P 500 stock index — a decline of 10 percent or more from a recent peak — was its fastest ever. In the midst of the sell-off, analysts at Goldman Sachs said they expected that the companies making up the S&P 500 would collectively show no profit growth this year. The bank had previously forecast a 6 percent increase in earnings.	The correction in the S&P 500 stock index — a decline of 10 percent or more from a recent peak — was its fastest ever. In the midst of the sell-off, analysts at Goldman Sachs said they expected that the companies making up the S&P 500 would collectively show no profit growth this year. The bank had previously forecast a 6 percent increase in earnings.
A major vulnerability for businesses in the United States and Europe is their increasing reliance on China as a supplier and customer over the last 10 or 20 years.	A major vulnerability for businesses in the United States and Europe is their increasing reliance on China as a supplier and customer over the last 10 or 20 years.
Since the Lunar New Year holiday in China a month ago, many workers have been homebound, disrupting factories that assemble electronics or make automotive parts. Microsoft said this week that the virus had hampered production of its laptop and tablet computers, and it cut its sales forecast for the division that makes those products, scrapping a projection it had issued just a few weeks earlier.	Since the Lunar New Year holiday in China a month ago, many workers have been homebound, disrupting factories that assemble electronics or make automotive parts. Microsoft said this week that the virus had hampered production of its laptop and tablet computers, and it cut its sales forecast for the division that makes those products, scrapping a projection it had issued just a few weeks earlier.
The supply-chain problems have started to affect American homebuilders as well. A senior executive at Toll Brothers said the virus appeared to have delayed the supply of lighting parts.	The supply-chain problems have started to affect American homebuilders as well. A senior executive at Toll Brothers said the virus appeared to have delayed the supply of lighting parts.
At the same time, Chinese consumers are buying less. Apple said the closing of stores in China would depress sales of iPhones and other devices.	At the same time, Chinese consumers are buying less. Apple said the closing of stores in China would depress sales of iPhones and other devices.
Mastercard cut its growth forecast in part because people are taking fewer international trips. Fear of the virus has prompted companies like Amazon and Nestlé to suspend international travel by some employees. That drop in demand, combined with their own concerns about the virus, has prompted United and other airlines in the United States and Europe to cancel flights to cities in China and elsewhere in Asia.	Mastercard cut its growth forecast in part because people are taking fewer international trips. Fear of the virus has prompted companies like Amazon and Nestlé to suspend international travel by some employees. That drop in demand, combined with their own concerns about the virus, has prompted United and other airlines in the United States and Europe to cancel flights to cities in China and elsewhere in Asia.
On Friday, United said an investor briefing scheduled next week would be postponed until September. Citing concern over the virus, the airline said it “does not believe it is practical to expect that it can have a productive conversation focused on its long-term strategy.”	On Friday, United said an investor briefing scheduled next week would be postponed until September. Citing concern over the virus, the airline said it “does not believe it is practical to expect that it can have a productive conversation focused on its long-term strategy.”
Companies may also struggle because investors are becoming more reluctant to lend them money. Appetite for new bonds, especially those issued by less-creditworthy businesses, has fallen off. Banks may also have to tighten lending standards. In a sign that investors believe the coronavirus concerns could hit banks hard, the stocks of the three largest U.S. banks — JPMorgan Chase, Citigroup and Bank of America — are all down by a lot more than the S&P 500 so far this year.	Companies may also struggle because investors are becoming more reluctant to lend them money. Appetite for new bonds, especially those issued by less-creditworthy businesses, has fallen off. Banks may also have to tighten lending standards. In a sign that investors believe the coronavirus concerns could hit banks hard, the stocks of the three largest U.S. banks — JPMorgan Chase, Citigroup and Bank of America — are all down by a lot more than the S&P 500 so far this year.
Of course, the coronavirus outbreak could end up resembling other brief shocks that have landed only glancing blows on companies and the stock market. These include the fiscal battles of the previous decade that consumed Washington and Wall Street for weeks at a time.	Of course, the coronavirus outbreak could end up resembling other brief shocks that have landed only glancing blows on companies and the stock market. These include the fiscal battles of the previous decade that consumed Washington and Wall Street for weeks at a time.
And as recently as Friday, some companies were predicting that their sales would hold up just fine. Volkswagen, the German auto giant, said it expected deliveries this year to be “in line” with 2019. And Apple said conditions were gradually returning to normal in China. “It feels to me that China is getting the coronavirus under control,” Tim Cook, Apple’s chief executive told Fox Business on Thursday. “When you look at the parts that are done in China, we have reopened factories.”	And as recently as Friday, some companies were predicting that their sales would hold up just fine. Volkswagen, the German auto giant, said it expected deliveries this year to be “in line” with 2019. And Apple said conditions were gradually returning to normal in China. “It feels to me that China is getting the coronavirus under control,” Tim Cook, Apple’s chief executive told Fox Business on Thursday. “When you look at the parts that are done in China, we have reopened factories.”
Some Wall Street analysts have expressed optimism that the Federal Reserve and other central banks will cut interest rates to help offset the economic stress caused by the virus. Such cuts would help lower borrowing costs, giving consumers a fresh incentive to spend and businesses to invest.	Some Wall Street analysts have expressed optimism that the Federal Reserve and other central banks will cut interest rates to help offset the economic stress caused by the virus. Such cuts would help lower borrowing costs, giving consumers a fresh incentive to spend and businesses to invest.
Those hopes were buoyed when the Fed chair, Jerome H. Powell, unexpectedly issued a statement on Friday saying the central bank would “act as appropriate to support the economy.” Economists at Bank of America wrote on Friday that they expected the Fed to cut rates by half a percentage point at its March meeting “as a way to stem panic.”	Those hopes were buoyed when the Fed chair, Jerome H. Powell, unexpectedly issued a statement on Friday saying the central bank would “act as appropriate to support the economy.” Economists at Bank of America wrote on Friday that they expected the Fed to cut rates by half a percentage point at its March meeting “as a way to stem panic.”
Updated June 16, 2020	Updated June 16, 2020
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.	The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Some companies are already talking about how much business will come their way when the outbreak begins to recede — including Las Vegas Sands, which has major interests in the Chinese gambling haven of Macau.	Some companies are already talking about how much business will come their way when the outbreak begins to recede — including Las Vegas Sands, which has major interests in the Chinese gambling haven of Macau.
“When it does resolve, Macau’s going to be very, very, very busy,” Robert G. Goldstein, the company’s chief operating officer, said in an earnings call last month.	“When it does resolve, Macau’s going to be very, very, very busy,” Robert G. Goldstein, the company’s chief operating officer, said in an earnings call last month.
Some analysts appear to be banking on warmer spring weather to curb the virus’s spread. “Fear will subside as the weather warms up, hopefully,” said Barry Bannister, head of equity strategy at Stifel.	Some analysts appear to be banking on warmer spring weather to curb the virus’s spread. “Fear will subside as the weather warms up, hopefully,” said Barry Bannister, head of equity strategy at Stifel.
For now, though, investors seem to be expecting things to get worse. After finishing down 0.8 percent on Friday, the S&P 500 lost about 11.5 percent of its value this week, its worst one-week performance since the financial crisis of 2008.	For now, though, investors seem to be expecting things to get worse. After finishing down 0.8 percent on Friday, the S&P 500 lost about 11.5 percent of its value this week, its worst one-week performance since the financial crisis of 2008.
Some investors sit on the sidelines when they feel unequipped to assess financial risks.	Some investors sit on the sidelines when they feel unequipped to assess financial risks.
A big concern is that the virus will spread quickly in Europe and the United States, forcing consumers to stay home from work, not to mention avoiding stores, restaurants or other businesses.	A big concern is that the virus will spread quickly in Europe and the United States, forcing consumers to stay home from work, not to mention avoiding stores, restaurants or other businesses.