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Ford Joins Effort to Make Ventilators: Live Business Updates Ford Joins Effort to Make Ventilators: Live Business Updates
(32 minutes later)
Ford Motor and General Electric’s health care division said on Monday that they together planned to produce 50,000 ventilators over the next 100 days to help meet the needs of hospitals during the coronavirus pandemic.Ford Motor and General Electric’s health care division said on Monday that they together planned to produce 50,000 ventilators over the next 100 days to help meet the needs of hospitals during the coronavirus pandemic.
Ford plans to continue making about 30,000 ventilators a month once the initial batch has been made. Ford will use a plant in Rawsonville, Mich., and about 500 workers to make the medical devices.Ford plans to continue making about 30,000 ventilators a month once the initial batch has been made. Ford will use a plant in Rawsonville, Mich., and about 500 workers to make the medical devices.
Ford’s effort is the second-such initiative by a major automaker. General Motors has said it plans to make ventilators at one of its factories in Kokomo, Ind., with Ventec Life Systems, a ventilator manufacturer. Tesla, the electric car company, has also said that it intends to make ventilators with Medtronic at a factory in Buffalo.Ford’s effort is the second-such initiative by a major automaker. General Motors has said it plans to make ventilators at one of its factories in Kokomo, Ind., with Ventec Life Systems, a ventilator manufacturer. Tesla, the electric car company, has also said that it intends to make ventilators with Medtronic at a factory in Buffalo.
G.E. has licensed the design of the ventilator from Airon Corporation of Melbourne, Fla. The device works on air pressure and does not need electricity, and the companies said it could be useful for most coronavirus patients who need help breathing.G.E. has licensed the design of the ventilator from Airon Corporation of Melbourne, Fla. The device works on air pressure and does not need electricity, and the companies said it could be useful for most coronavirus patients who need help breathing.
Ford and G.E. said last week that Ford would help increase production of another ventilator based on a design from G.E. Healthcare.Ford and G.E. said last week that Ford would help increase production of another ventilator based on a design from G.E. Healthcare.
Stocks on Wall Street rose on Monday as investors bid up shares of health care companies as they reported progress on products that could help with the coronavirus outbreak.Stocks on Wall Street rose on Monday as investors bid up shares of health care companies as they reported progress on products that could help with the coronavirus outbreak.
The S&P 500 climbed more than 3 percent, adding to a strong showing last week. The S&P 500 had risen 10 percent last week after a three-day run that was its best since 1933, amid relief over Washington’s $2 trillion spending plan.The S&P 500 climbed more than 3 percent, adding to a strong showing last week. The S&P 500 had risen 10 percent last week after a three-day run that was its best since 1933, amid relief over Washington’s $2 trillion spending plan.
Gainers on Monday included Johnson & Johnson, which said it had identified a lead candidate for a vaccine for the virus and planned to ramp up both production and clinical testing. Abbott Laboratories rose on reports that it had said a new test that could detect the virus in five minutes had been cleared for use by the Food and Drug Administration.Gainers on Monday included Johnson & Johnson, which said it had identified a lead candidate for a vaccine for the virus and planned to ramp up both production and clinical testing. Abbott Laboratories rose on reports that it had said a new test that could detect the virus in five minutes had been cleared for use by the Food and Drug Administration.
But there were lingering signs of caution in the financial markets. Most notably, oil prices tumbled to their lowest levels since 2002.But there were lingering signs of caution in the financial markets. Most notably, oil prices tumbled to their lowest levels since 2002.
And in the stock market, Monday’s rally came on relatively light volume, said Matt Maley, chief market strategist at Miller Tabak, a trading and asset management firm. That suggests a lack of conviction among investors, he said.And in the stock market, Monday’s rally came on relatively light volume, said Matt Maley, chief market strategist at Miller Tabak, a trading and asset management firm. That suggests a lack of conviction among investors, he said.
“It’s a little bit of lack of confidence,” said Mr. Maley, “And you can’t blame them after what’s happened.”“It’s a little bit of lack of confidence,” said Mr. Maley, “And you can’t blame them after what’s happened.”
Some industries continued to be battered by the long shadow of the virus. Cruise lines Royal Caribbean, Norwegian and Carnival were all down 10 percent, making them some of the worst performers in the S&P 500 on Monday. United Airlines, American Airlines and Boeing, all of which had rallied last week on expectations that they would benefit from government assistance, also fell sharply.Some industries continued to be battered by the long shadow of the virus. Cruise lines Royal Caribbean, Norwegian and Carnival were all down 10 percent, making them some of the worst performers in the S&P 500 on Monday. United Airlines, American Airlines and Boeing, all of which had rallied last week on expectations that they would benefit from government assistance, also fell sharply.
The dizzying moves that characterized trading in financial markets for most of March seem to have ended as policymakers around the world moved to bolster their economies with spending and other means of support. But investors were weighing those efforts against the rising number of coronavirus cases and the redoubled efforts to contain the pandemic.The dizzying moves that characterized trading in financial markets for most of March seem to have ended as policymakers around the world moved to bolster their economies with spending and other means of support. But investors were weighing those efforts against the rising number of coronavirus cases and the redoubled efforts to contain the pandemic.
President Trump on Sunday extended guidelines on social distancing and nonessential travel in the United States, an admission that there is no certainty around when the spreading coronavirus epidemic will end.President Trump on Sunday extended guidelines on social distancing and nonessential travel in the United States, an admission that there is no certainty around when the spreading coronavirus epidemic will end.
In the oil market, brent crude, the international benchmark, fell more than 6 percent to roughly $26 a barrel on Monday. West Texas Intermediate, the U.S. benchmark, was down more than 5 percent with prices hovering around $20.25 in early afternoon trading. Earlier in the morning the price had briefly dropped below $20 a barrel, a level not seen in almost 20 years.In the oil market, brent crude, the international benchmark, fell more than 6 percent to roughly $26 a barrel on Monday. West Texas Intermediate, the U.S. benchmark, was down more than 5 percent with prices hovering around $20.25 in early afternoon trading. Earlier in the morning the price had briefly dropped below $20 a barrel, a level not seen in almost 20 years.
Oil has also been hammered by a price war between Saudi Arabia and Russia, two of the largest oil producers, but analysts say that it is far outweighed by the collapse in demand caused by the pandemic.Oil has also been hammered by a price war between Saudi Arabia and Russia, two of the largest oil producers, but analysts say that it is far outweighed by the collapse in demand caused by the pandemic.
FGE, a consulting firm, recently estimated that demand for April would fall by 17 million barrels a day — to about 17 percent lower than usual — as airplanes are grounded, road traffic falls sharply and factories are shuttered.FGE, a consulting firm, recently estimated that demand for April would fall by 17 million barrels a day — to about 17 percent lower than usual — as airplanes are grounded, road traffic falls sharply and factories are shuttered.
Macy’s, which also owns Bloomingdale’s and Bluemercury, said on Monday that it had lost “the majority” of its sales because of store closures, which started March 18 and would persist until the retailer had a “clear line of sight on when it is safe to reopen.”Macy’s, which also owns Bloomingdale’s and Bluemercury, said on Monday that it had lost “the majority” of its sales because of store closures, which started March 18 and would persist until the retailer had a “clear line of sight on when it is safe to reopen.”
The company said it will furlough the majority of its employees this week and would maintain the “absolute minimum work force needed to maintain basic operations,” according to a statement. There will be fewer furloughs of employees supporting the digital business at call centers and distribution centers. Macy’s had 125,000 part-time and full-time employees at the end of last year.The company said it will furlough the majority of its employees this week and would maintain the “absolute minimum work force needed to maintain basic operations,” according to a statement. There will be fewer furloughs of employees supporting the digital business at call centers and distribution centers. Macy’s had 125,000 part-time and full-time employees at the end of last year.
The move shows the strain that the pandemic is placing on retailers selling goods that are considered nonessential. Many department stores and mall chains had already been weakened in recent years by the rise of e-commerce and a drop in foot traffic at malls. A complete closure of stores is dealing a new blow.The move shows the strain that the pandemic is placing on retailers selling goods that are considered nonessential. Many department stores and mall chains had already been weakened in recent years by the rise of e-commerce and a drop in foot traffic at malls. A complete closure of stores is dealing a new blow.
Macy’s said that it had already stopped capital spending and paying a dividend. It has also drawn down its line of credit and canceled some orders.Macy’s said that it had already stopped capital spending and paying a dividend. It has also drawn down its line of credit and canceled some orders.
Retail workers have been affected across the board. L Brands, which owns Victoria’s Secret and Bath & Body Works, said it would furlough most store staff and “those who are not currently working to support the online businesses or who cannot work from home” starting April 5.Retail workers have been affected across the board. L Brands, which owns Victoria’s Secret and Bath & Body Works, said it would furlough most store staff and “those who are not currently working to support the online businesses or who cannot work from home” starting April 5.
Gap, which also owns Old Navy and Banana Republic, said on Monday it would furlough nearly 80,000 store employees in the United States and Canada.Gap, which also owns Old Navy and Banana Republic, said on Monday it would furlough nearly 80,000 store employees in the United States and Canada.
Gannett, the largest newspaper publisher in the United States, The Los Angeles Times and Vice Media are the latest media companies to acknowledge that reader interest in the coronavirus pandemic has not made up for a sharp downturn in advertising revenue.Gannett, the largest newspaper publisher in the United States, The Los Angeles Times and Vice Media are the latest media companies to acknowledge that reader interest in the coronavirus pandemic has not made up for a sharp downturn in advertising revenue.
Gannett employees learned of the company’s austerity plan through a memo sent by Paul Bascobert, the chief executive of Gannett’s operating company.Gannett employees learned of the company’s austerity plan through a memo sent by Paul Bascobert, the chief executive of Gannett’s operating company.
Mr. Bascobert said in the memo, which was obtained by The New York Times, that advertising had fallen off, despite increases in web traffic and subscriptions. He said that company executives had agreed to 25 percent pay cuts and that he would not take a salary until the measures were reversed.Mr. Bascobert said in the memo, which was obtained by The New York Times, that advertising had fallen off, despite increases in web traffic and subscriptions. He said that company executives had agreed to 25 percent pay cuts and that he would not take a salary until the measures were reversed.
In a separate memo shared with the staff, Gannett said the moves would affect “the majority” of company employees, and that some would be furloughed one week each month in the months to come.In a separate memo shared with the staff, Gannett said the moves would affect “the majority” of company employees, and that some would be furloughed one week each month in the months to come.
Jon Schleuss, president of the NewsGuild, which represents journalists at some Gannett newspapers, said, “Our nation simply cannot afford to furlough or lay off journalists and other news industry employees in this time of crisis.”
At Vice Media, staff members making more than $100,000 annually will be moved to four-day work weeks and their salaries will be cut by 10 or 20 percent for 90 days beginning early next month, Jesse Angelo, the company’s president of global news and entertainment, said on a staff call, a recording of which was obtained by The New York Times.At Vice Media, staff members making more than $100,000 annually will be moved to four-day work weeks and their salaries will be cut by 10 or 20 percent for 90 days beginning early next month, Jesse Angelo, the company’s president of global news and entertainment, said on a staff call, a recording of which was obtained by The New York Times.
He also said merit raises and promotions, scheduled for next month, would be delayed three months and that the company would cease matching 401(k) contributions for two months.He also said merit raises and promotions, scheduled for next month, would be delayed three months and that the company would cease matching 401(k) contributions for two months.
Executives have agreed to cut their salaries by 25 percent for a time, Mr. Angelo said, while the salary of Nancy Dubuc, the chief executive of Vice Media, will be halved.Executives have agreed to cut their salaries by 25 percent for a time, Mr. Angelo said, while the salary of Nancy Dubuc, the chief executive of Vice Media, will be halved.
Los Angeles Times executives said Monday that they would temporarily combine several sections of the print newspaper as “most of our advertisers are unable to continue advertising.”Los Angeles Times executives said Monday that they would temporarily combine several sections of the print newspaper as “most of our advertisers are unable to continue advertising.”
On Wednesday, April 1, many monthly bills will come due, and households and businesses across the nation will struggle to make their payments.On Wednesday, April 1, many monthly bills will come due, and households and businesses across the nation will struggle to make their payments.
Residents won’t make rent, and small businesses will have to forgo lease payments. Even the multibillion-dollar Cheesecake Factory has told landlords not to expect an April check.Residents won’t make rent, and small businesses will have to forgo lease payments. Even the multibillion-dollar Cheesecake Factory has told landlords not to expect an April check.
The trajectory of the U.S. economy largely depends on how many bills go unpaid. The money from the $2 trillion relief package that President Trump recently signed into law will be distributed too late to help many.The trajectory of the U.S. economy largely depends on how many bills go unpaid. The money from the $2 trillion relief package that President Trump recently signed into law will be distributed too late to help many.
Homeowners will have to choose between rent or electricity. Businesses could start laying off workers.Homeowners will have to choose between rent or electricity. Businesses could start laying off workers.
“These are cascades that, once they get going, are very hard to stop,” said Claudia Sahm, head of macroeconomic policy for the Washington Center for Equitable Growth. “You’re already seeing it.”“These are cascades that, once they get going, are very hard to stop,” said Claudia Sahm, head of macroeconomic policy for the Washington Center for Equitable Growth. “You’re already seeing it.”
Carnival, the hard-hit cruise company, has already tapped a $3 billion credit line and said in regulatory filings that it was looking for new financing. The cruise company is working with Wall Street banks to line up investors for a high-interest debt offering, said one person briefed on the matter but not authorized to speak publicly. Zoom, the popular videoconferencing app whose traffic has surged amid the coronavirus pandemic, is under scrutiny by the office of New York’s attorney general, Letitia James, for its data privacy and security practices.
It’s one of just many corporations across a wide swath of industries and in vastly different financial straits that are being forced to stretch their cash, cut costs, avoid loan defaults and prepare to potentially reorganize their businesses. The attorney general’s office sent a letter to Zoom on Monday asking what, if any, new security measures the company had put in place to handle increased traffic on its network and to detect hackers, according to a copy reviewed by The New York Times.
For one group in the financial services industry — advisers and lawyers who specialize in restructuring and bankruptcy — the emerging signs of pain for companies, both big and small, spell booming business. The letter referred to Zoom as “an essential and valuable communications platform,” but it outlined several concerns, noting that the company had been slow to address security flaws such as vulnerabilities that have allowed malicious users to invade videoconferences held on the service, a practice known as Zoombombing.
In a sign of workers’ growing anxiety as the coronavirus pandemic rages, thousands of drivers and shoppers for the grocery delivery service Instacart walked off the job on Monday, demanding greater pay and better access to paid leave and cleaning material.In a sign of workers’ growing anxiety as the coronavirus pandemic rages, thousands of drivers and shoppers for the grocery delivery service Instacart walked off the job on Monday, demanding greater pay and better access to paid leave and cleaning material.
Though the size of the walkout was unclear, organizers said they believed that thousands of the company’s 200,000 shoppers, who work as independent contractors, were refusing to work. Their hope is to pressure the company by adding to the backlogs the service was already experiencing, as locked-down Americans have opted to get their daily staples delivered rather than venture out to stores.Though the size of the walkout was unclear, organizers said they believed that thousands of the company’s 200,000 shoppers, who work as independent contractors, were refusing to work. Their hope is to pressure the company by adding to the backlogs the service was already experiencing, as locked-down Americans have opted to get their daily staples delivered rather than venture out to stores.
The strike appeared to be having some effect on Monday. Ryan Hartson, an Instacart worker in Chicago, shared a screenshot from his Instacart app showing that many time slots were available for shoppers to pick up groceries, suggesting that the supply of workers was smaller than usual.The strike appeared to be having some effect on Monday. Ryan Hartson, an Instacart worker in Chicago, shared a screenshot from his Instacart app showing that many time slots were available for shoppers to pick up groceries, suggesting that the supply of workers was smaller than usual.
“Our team has had an unwavering commitment to prioritize the health and safety of the entire Instacart community,” Nilam Ganenthiran, president of Instacart, said in a statement. “We’ve been evaluating the Covid-19 crisis minute-by-minute to provide real-time support for Instacart shoppers and customers.”“Our team has had an unwavering commitment to prioritize the health and safety of the entire Instacart community,” Nilam Ganenthiran, president of Instacart, said in a statement. “We’ve been evaluating the Covid-19 crisis minute-by-minute to provide real-time support for Instacart shoppers and customers.”
As for Monday’s action, “we’ve seen absolutely no impact to Instacart’s operations,” a company spokeswoman said.As for Monday’s action, “we’ve seen absolutely no impact to Instacart’s operations,” a company spokeswoman said.
American Airlines plans to apply for some of the $50 billion airline bailout included in the federal stimulus that was signed into law last week, its chief executive and president said in a memo to staff. The airline expects to receive $12 billion, some of which will be used to pay employees through September. The carrier also said it was offering leave, with partial pay, and early retirement to interested employees.American Airlines plans to apply for some of the $50 billion airline bailout included in the federal stimulus that was signed into law last week, its chief executive and president said in a memo to staff. The airline expects to receive $12 billion, some of which will be used to pay employees through September. The carrier also said it was offering leave, with partial pay, and early retirement to interested employees.
See’s Candies, the California chocolatier, said in a statement on its website that it was halting production, just the second interruption in its 99-year history. (The first time was during World War II.) “In recognition of the guidance provided by local health authorities, See’s has suspended production and shipping of product,” the company said.See’s Candies, the California chocolatier, said in a statement on its website that it was halting production, just the second interruption in its 99-year history. (The first time was during World War II.) “In recognition of the guidance provided by local health authorities, See’s has suspended production and shipping of product,” the company said.
Facebook announced Monday that it would give out $25 million in grants to local news organizations and spend $75 million in marketing that will go to news outlets internationally. Campbell Brown, a Facebook vice president, acknowledged in an interview that the company, whose huge chunk of online ad revenue helped dent media companies’ business models in the first place, felt a “responsibility” to help out.Facebook announced Monday that it would give out $25 million in grants to local news organizations and spend $75 million in marketing that will go to news outlets internationally. Campbell Brown, a Facebook vice president, acknowledged in an interview that the company, whose huge chunk of online ad revenue helped dent media companies’ business models in the first place, felt a “responsibility” to help out.
Reporting was contributed by Matt Phillips, Stanley Reed, Kenneth P. Vogel, Jim Tankersley, Jeanna Smialek, Alexandra Stevenson, Matthew Goldstein, Sapna Maheshwari, Neal E. Boudette, Andrew Jacobs, Mary Williams Walsh, Conor Dougherty, Ben Casselman, Johnny Diaz, Tiffany May, Reed Abelson, Derrick Bryson Taylor, Damien Cave, Edmund Lee, Marc Tracy, Brooks Barnes, Nicholas Kulish, Sarah Kliff, Jessica Silver-Greenberg, Daniel Victor and Carlos Tejada. Reporting was contributed by Danny Hakim, Natasha Singer, Matt Phillips, Stanley Reed, Kenneth P. Vogel, Jim Tankersley, Jeanna Smialek, Alexandra Stevenson, Matthew Goldstein, Sapna Maheshwari, Neal E. Boudette, Andrew Jacobs, Mary Williams Walsh, Conor Dougherty, Ben Casselman, Johnny Diaz, Tiffany May, Reed Abelson, Derrick Bryson Taylor, Damien Cave, Edmund Lee, Marc Tracy, Brooks Barnes, Nicholas Kulish, Sarah Kliff, Jessica Silver-Greenberg, Daniel Victor and Carlos Tejada.