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Wall St. Caps a Turbulent Week With a Decline Wall St. Caps a Turbulent Week With a Decline
(about 2 hours later)
This briefing is no longer updating. Read the latest developments in the coronavirus outbreak here.This briefing is no longer updating. Read the latest developments in the coronavirus outbreak here.
Wall Street ended a volatile week with a drop, as investors braced themselves for more bad news on the coronavirus pandemic and considered fresh data showing the economic damage that it has already caused.Wall Street ended a volatile week with a drop, as investors braced themselves for more bad news on the coronavirus pandemic and considered fresh data showing the economic damage that it has already caused.
The S&P 500 fell about 1.5 percent on Friday. Selling at the end of the week has become something of a routine on Wall Street lately, with analysts saying that it reflects caution over what news the weekend might bring. Since the stock market peaked in February, shares have fallen on every Friday, bar one.The S&P 500 fell about 1.5 percent on Friday. Selling at the end of the week has become something of a routine on Wall Street lately, with analysts saying that it reflects caution over what news the weekend might bring. Since the stock market peaked in February, shares have fallen on every Friday, bar one.
The exception was March 13, when President Trump held a late afternoon news conference in which he promised that a number of businesses, from Google to Walmart, would support the efforts to contain the coronavirus.The exception was March 13, when President Trump held a late afternoon news conference in which he promised that a number of businesses, from Google to Walmart, would support the efforts to contain the coronavirus.
On Friday, investors were presented with more painful — if no longer surprising — economic data. The monthly employment report from the Labor Department that showed the nearly decade-long run of job growth had ground a halt in March. And a new reading of economic activity in Europe for last month registered its biggest ever drop.On Friday, investors were presented with more painful — if no longer surprising — economic data. The monthly employment report from the Labor Department that showed the nearly decade-long run of job growth had ground a halt in March. And a new reading of economic activity in Europe for last month registered its biggest ever drop.
Oil remained a bright spot, with crude futures continuing a rally that began on Thursday on hopes that the world’s major oil producers might cut supply.Oil remained a bright spot, with crude futures continuing a rally that began on Thursday on hopes that the world’s major oil producers might cut supply.
A Friday night tradition — crisis-driven bank failures — may be returning to the United States.A Friday night tradition — crisis-driven bank failures — may be returning to the United States.
The Federal Deposit Insurance Corporation on Friday took control of the First State Bank, based in Barboursville, W.Va. The agency sold the bank’s deposits and most of its assets to a neighbor in the same state, MVB Bank of Fairmount.The Federal Deposit Insurance Corporation on Friday took control of the First State Bank, based in Barboursville, W.Va. The agency sold the bank’s deposits and most of its assets to a neighbor in the same state, MVB Bank of Fairmount.
First State Bank’s president was the great-grandson of its founder. As of late Friday afternoon, its website still displayed a video that narrated its 115-year history. But its $140 million in deposits were no longer its own.First State Bank’s president was the great-grandson of its founder. As of late Friday afternoon, its website still displayed a video that narrated its 115-year history. But its $140 million in deposits were no longer its own.
“The First State Bank has experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015,” the F.D.I.C. said in a news release on Friday.“The First State Bank has experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015,” the F.D.I.C. said in a news release on Friday.
As economic activity continues to plunge and millions of borrowers struggle to make payments on mortgages and other loans, more lenders are likely to fall.As economic activity continues to plunge and millions of borrowers struggle to make payments on mortgages and other loans, more lenders are likely to fall.
And there’s a reason the failures become known on Friday nights. When a bank fails, employees from the F.D.I.C. essentially rush the building at closing time, take control of its systems to prevent any illicit money transfers by employees, and begin a preplanned ownership transition that is meant to ensure the bank’s customers never experience an interruption in service.And there’s a reason the failures become known on Friday nights. When a bank fails, employees from the F.D.I.C. essentially rush the building at closing time, take control of its systems to prevent any illicit money transfers by employees, and begin a preplanned ownership transition that is meant to ensure the bank’s customers never experience an interruption in service.
In January 2008, small banks began to succumb to what was eventually called the Great Recession, and by the following year, there was at least one failure — but often several — every Friday night for months.In January 2008, small banks began to succumb to what was eventually called the Great Recession, and by the following year, there was at least one failure — but often several — every Friday night for months.
Treasury Secretary Steven Mnuchin said Friday evening that more than 800 banks participated in the Small Business Administration lending program on its first day and that he expected all of the big banks would be ready to accept loan applications by next week.Treasury Secretary Steven Mnuchin said Friday evening that more than 800 banks participated in the Small Business Administration lending program on its first day and that he expected all of the big banks would be ready to accept loan applications by next week.
By Friday evening, more than 10,000 loans totaling more than $3.2 billion dollars had been processed.By Friday evening, more than 10,000 loans totaling more than $3.2 billion dollars had been processed.
It was all part of a scramble by small businesses around the country to stay alive by grabbing a piece of a Treasury Department program. But business owners found that applying for the money was harder than they had anticipated.It was all part of a scramble by small businesses around the country to stay alive by grabbing a piece of a Treasury Department program. But business owners found that applying for the money was harder than they had anticipated.
Lenders had received guidance from the Treasury Department only the night before. On top of that, banks imposed their own rules on which businesses could borrow.Lenders had received guidance from the Treasury Department only the night before. On top of that, banks imposed their own rules on which businesses could borrow.
For small-business owners, many of whom have run out of cash to pay salaries and rent, time was everything. Fearful that the money will run out, they flooded banks with calls and emails as they tried to get to the front of the line.For small-business owners, many of whom have run out of cash to pay salaries and rent, time was everything. Fearful that the money will run out, they flooded banks with calls and emails as they tried to get to the front of the line.
Mr. Mnuchin said that people whose applications were not filed and approved yet should not worry about missing out and that the $350 billion fund would be replenished if necessary.Mr. Mnuchin said that people whose applications were not filed and approved yet should not worry about missing out and that the $350 billion fund would be replenished if necessary.
“If we run out of money, we’re going to go back to Congress and get more money for small business,” Mr. Mnuchin said on the Fox Business Network.“If we run out of money, we’re going to go back to Congress and get more money for small business,” Mr. Mnuchin said on the Fox Business Network.
The Labor Department on Friday reported the first monthly job loss in almost a decade, reflecting the virtual economic standstill wrought by the coronavirus outbreak.The Labor Department on Friday reported the first monthly job loss in almost a decade, reflecting the virtual economic standstill wrought by the coronavirus outbreak.
It was an abrupt end to a landmark stretch of job creation — 113 months in a row, more than twice the previous record.It was an abrupt end to a landmark stretch of job creation — 113 months in a row, more than twice the previous record.
Compared with the numbers of people recently applying for unemployment benefits — nearly 10 million in the previous two weeks — the figure announced Friday was modest: a loss of 701,000 jobs. But the data was mostly collected in the first half of the month, before stay-at-home orders began to cover much of the nation.Compared with the numbers of people recently applying for unemployment benefits — nearly 10 million in the previous two weeks — the figure announced Friday was modest: a loss of 701,000 jobs. But the data was mostly collected in the first half of the month, before stay-at-home orders began to cover much of the nation.
“This is nothing compared to what we’re going to see,” said Stephanie Pomboy, president of MacroMavens, an independent research firm. Indeed, the March unemployment rate of 4.4 percent may be replaced by double digits as soon as next month. But it was the largest monthly increase in the rate, by 0.9 percentage points, since January 1975.“This is nothing compared to what we’re going to see,” said Stephanie Pomboy, president of MacroMavens, an independent research firm. Indeed, the March unemployment rate of 4.4 percent may be replaced by double digits as soon as next month. But it was the largest monthly increase in the rate, by 0.9 percentage points, since January 1975.
The Congressional Budget Office said on Thursday that it expected unemployment to top 10 percent for the second quarter of 2020 — as high as the peak in the last recession — and to remain at 9 percent at the end of 2021.The Congressional Budget Office said on Thursday that it expected unemployment to top 10 percent for the second quarter of 2020 — as high as the peak in the last recession — and to remain at 9 percent at the end of 2021.
The United States should join with Russia and the Organization of the Petroleum Exporting Countries in cutting crude oil production to help prop up global oil prices, President Vladimir V. Putin of Russia said Friday, in a suggestion that would turn upside down decades of American oil policy.The United States should join with Russia and the Organization of the Petroleum Exporting Countries in cutting crude oil production to help prop up global oil prices, President Vladimir V. Putin of Russia said Friday, in a suggestion that would turn upside down decades of American oil policy.
Mr. Putin, speaking in a video conference with directors of Russian oil companies from his country residence, where he has been in seclusion because of the coronavirus outbreak, said Russia was willing to help stabilize the market by joining other countries in a cutting 10 million barrels of oil in output.Mr. Putin, speaking in a video conference with directors of Russian oil companies from his country residence, where he has been in seclusion because of the coronavirus outbreak, said Russia was willing to help stabilize the market by joining other countries in a cutting 10 million barrels of oil in output.
“I think we need to unite forces to balance the market and limit, with these coordinated actions, oil production,” he said.“I think we need to unite forces to balance the market and limit, with these coordinated actions, oil production,” he said.
The United States has cheered OPEC, the global oil cartel, when it increases output to lower prices, but as the world’s largest consumer of crude oil, it has never pursued policies to raise prices.The United States has cheered OPEC, the global oil cartel, when it increases output to lower prices, but as the world’s largest consumer of crude oil, it has never pursued policies to raise prices.
President Trump and major oil executives met on Friday afternoon to discuss industry problems but they came to no public agreement to make production cuts.President Trump and major oil executives met on Friday afternoon to discuss industry problems but they came to no public agreement to make production cuts.
Walgreens said on Friday that it would supply face covers to workers in its stores, including pharmacy staff, and in its distribution centers.Walgreens said on Friday that it would supply face covers to workers in its stores, including pharmacy staff, and in its distribution centers.
It is also installing plexiglass shields at pharmacy and checkout counters in “select markets” and aims to use them across its chain. The company also said that it will conduct health screenings, including temperature checks, at distribution centers and other locations.It is also installing plexiglass shields at pharmacy and checkout counters in “select markets” and aims to use them across its chain. The company also said that it will conduct health screenings, including temperature checks, at distribution centers and other locations.
The announcement came as pressure has increased on retail chains deemed essential enough to remain open to provide additional protections for their employees, who are working in some of the few places where Americans are still able to congregate.The announcement came as pressure has increased on retail chains deemed essential enough to remain open to provide additional protections for their employees, who are working in some of the few places where Americans are still able to congregate.
Updated June 12, 2020 Updated June 5, 2020
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.
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.
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.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
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.
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.
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.
Masks, in particular, have become a point of contention, with some employees complaining that they are not allowed to wear masks even if they brought their own. Walmart and Target have said in recent days that they will begin providing face coverings to their staffs.Masks, in particular, have become a point of contention, with some employees complaining that they are not allowed to wear masks even if they brought their own. Walmart and Target have said in recent days that they will begin providing face coverings to their staffs.
Congress has earmarked $454 billion for Federal Reserve programs that are meant to keep credit flowing to businesses, states and local governments — funding that could help it to fend off a worst-case scenario for the United States economy.Congress has earmarked $454 billion for Federal Reserve programs that are meant to keep credit flowing to businesses, states and local governments — funding that could help it to fend off a worst-case scenario for the United States economy.
During troubled times, the Fed can lend more or less directly to companies and governments using its emergency authorities. Treasury Secretary Steven Mnuchin must sign off on the programs, and the Treasury Department backstops the programs with a layer of funding meant to absorb losses.During troubled times, the Fed can lend more or less directly to companies and governments using its emergency authorities. Treasury Secretary Steven Mnuchin must sign off on the programs, and the Treasury Department backstops the programs with a layer of funding meant to absorb losses.
The central bank’s actions so far, taken when the Treasury had far less money to provide backup, offer a rough outline of how it might use the new appropriation.The central bank’s actions so far, taken when the Treasury had far less money to provide backup, offer a rough outline of how it might use the new appropriation.
For individuals: The Fed is rolling out one lending program that gives eligible companies cheap loans in exchange for asset-backed securities — basically, bundles of debt — built on newly issued credit card debt, student loans, auto loans and the like. By creating a big incentive, the program should make loans available and cheaper for consumers.For individuals: The Fed is rolling out one lending program that gives eligible companies cheap loans in exchange for asset-backed securities — basically, bundles of debt — built on newly issued credit card debt, student loans, auto loans and the like. By creating a big incentive, the program should make loans available and cheaper for consumers.
For small businesses: The main support for small business is coming from the Small Business Administration, but the Fed is also taking bundles of business-related loans as collateral for loans, which could help smaller companies gain access to financing.For small businesses: The main support for small business is coming from the Small Business Administration, but the Fed is also taking bundles of business-related loans as collateral for loans, which could help smaller companies gain access to financing.
For big businesses: The Fed has unveiled several programs to help. One will support a type of short-term funding known as commercial paper, and another will buy company debt secondhand. A third program will buy newly issued debt or make direct loans to corporations.For big businesses: The Fed has unveiled several programs to help. One will support a type of short-term funding known as commercial paper, and another will buy company debt secondhand. A third program will buy newly issued debt or make direct loans to corporations.
For local governments: The Fed has unveiled a couple of programs that are helping municipal bond markets by allowing banks to use some types of local debt as collateral to get loans.For local governments: The Fed has unveiled a couple of programs that are helping municipal bond markets by allowing banks to use some types of local debt as collateral to get loans.
Hedge funds and private equity firms are pursuing ways to profit off the current crisis much as they did during the 2008 financial meltdown, as the recent misfortune of American businesses creates new moneymaking opportunities for big investors that have been relatively unscathed by the pandemic.Hedge funds and private equity firms are pursuing ways to profit off the current crisis much as they did during the 2008 financial meltdown, as the recent misfortune of American businesses creates new moneymaking opportunities for big investors that have been relatively unscathed by the pandemic.
With hundreds of billions of dollars sitting in reserve, these firms are plotting strategies to extend high-interest loans to companies, especially smaller, already troubled ones that banks have largely shunned over the past decade. Private equity firms, in particular, are also exploring buying minority stakes in public companies, which would provide them with an immediate cash infusion.With hundreds of billions of dollars sitting in reserve, these firms are plotting strategies to extend high-interest loans to companies, especially smaller, already troubled ones that banks have largely shunned over the past decade. Private equity firms, in particular, are also exploring buying minority stakes in public companies, which would provide them with an immediate cash infusion.
But for companies exploring these so-called alternative lending options, the relief may come at a high cost.But for companies exploring these so-called alternative lending options, the relief may come at a high cost.
“The problem for companies today is everybody has less money, and the cost of capital has just gone up a lot,” said Marc Lasry, co-founder of Avenue Capital Group, a $14 billion investment firm that specializes in distressed assets and loans to medium-size businesses.“The problem for companies today is everybody has less money, and the cost of capital has just gone up a lot,” said Marc Lasry, co-founder of Avenue Capital Group, a $14 billion investment firm that specializes in distressed assets and loans to medium-size businesses.
Companies that spent big on advertising before the pandemic have hit the brakes.Companies that spent big on advertising before the pandemic have hit the brakes.
Facebook has described its advertising business as “weakening.” Amazon has reduced its Google Shopping ads. Coca-Cola, Kohl’s and Zillow Group have stopped or limited their marketing. Marriott’s advertising, in the words of the company’s chief executive, has “gone dark.”Facebook has described its advertising business as “weakening.” Amazon has reduced its Google Shopping ads. Coca-Cola, Kohl’s and Zillow Group have stopped or limited their marketing. Marriott’s advertising, in the words of the company’s chief executive, has “gone dark.”
“A lot of advertisers are just pulling back — the tide’s going out,” said Garrett Johnson, an assistant marketing professor at Boston University’s Questrom School of Business.“A lot of advertisers are just pulling back — the tide’s going out,” said Garrett Johnson, an assistant marketing professor at Boston University’s Questrom School of Business.
During the Great Recession, more than $60.5 billion in global ad spending evaporated, according to the WARC research group. It took eight years for the industry to fully recover.During the Great Recession, more than $60.5 billion in global ad spending evaporated, according to the WARC research group. It took eight years for the industry to fully recover.
Industry observers say the new crisis may be worse.Industry observers say the new crisis may be worse.
“It was a seismic shock, possibly the biggest we have faced, ever,” said Harris Diamond, the chief executive of the advertising company McCann Worldgroup.“It was a seismic shock, possibly the biggest we have faced, ever,” said Harris Diamond, the chief executive of the advertising company McCann Worldgroup.
Disney said on Friday that it would release its big-budget “Mulan” on July 24, and Paramount Pictures said on Thursday that it would roll out “The SpongeBob Movie: Sponge on the Run” on July 31. Disney also announced new plans for a dozen other movies stretching into 2022, including the Marvel film “Black Widow,” now set for November. “Artemis Fowl,” will now be released on Disney Plus, the company’s streaming service, but not date was set.Disney said on Friday that it would release its big-budget “Mulan” on July 24, and Paramount Pictures said on Thursday that it would roll out “The SpongeBob Movie: Sponge on the Run” on July 31. Disney also announced new plans for a dozen other movies stretching into 2022, including the Marvel film “Black Widow,” now set for November. “Artemis Fowl,” will now be released on Disney Plus, the company’s streaming service, but not date was set.
Walmart announced new steps to encourage social distancing in its stores. Starting Saturday, the retailer will limit the number of customers who can be in a store at the same time, and next week, it will put into place a system of one-way movement through the aisles.Walmart announced new steps to encourage social distancing in its stores. Starting Saturday, the retailer will limit the number of customers who can be in a store at the same time, and next week, it will put into place a system of one-way movement through the aisles.
The chief executive of Delta told employees on Friday that the airline expected revenue in the second quarter to be 90 percent lower than the same quarter last year, a downward revision from just two weeks ago when the company warned of an 80 percent decline. And the chief executive of JetBlue warned that April revenue was expected to be about 95 percent lower than last year. Both companies, along with United Airlines, said they had submitted applications for federal stimulus funds to pay employees through September.The chief executive of Delta told employees on Friday that the airline expected revenue in the second quarter to be 90 percent lower than the same quarter last year, a downward revision from just two weeks ago when the company warned of an 80 percent decline. And the chief executive of JetBlue warned that April revenue was expected to be about 95 percent lower than last year. Both companies, along with United Airlines, said they had submitted applications for federal stimulus funds to pay employees through September.
Grupo Modelo, the brewer behind Corona, Modelo and other beers, said in a statement on Thursday that it was suspending its beer production after the Mexican government ordered nonessential businesses to close in an attempt to stop the spread of the coronavirus.Grupo Modelo, the brewer behind Corona, Modelo and other beers, said in a statement on Thursday that it was suspending its beer production after the Mexican government ordered nonessential businesses to close in an attempt to stop the spread of the coronavirus.
Hobby Lobby, which had defied stay-at-home orders by opening some stores, said it would close the remainder of its stores at 8 p.m. on Friday. The retailer also said it would furlough most of its employees without pay.Hobby Lobby, which had defied stay-at-home orders by opening some stores, said it would close the remainder of its stores at 8 p.m. on Friday. The retailer also said it would furlough most of its employees without pay.
Reporting was contributed by Clifford Krauss, Emily Flitter, Brooks Barnes, Sapna Maheshwari, Jeanna Smialek, Michael Corkery, Nelson D. Schwartz, Patricia Cohen, Alan Rappeport, Stanley Reed, Peter Eavis, Andrew E. Kramer, Rachel Abrams, Tiffany Hsu, Niraj Chokshi, David Gelles, Daisuke Wakabayashi, Keith Bradsher, Jim Tankersley, Julie Creswell, Mohammed Hadi, Carlos Tejada and Daniel Victor.Reporting was contributed by Clifford Krauss, Emily Flitter, Brooks Barnes, Sapna Maheshwari, Jeanna Smialek, Michael Corkery, Nelson D. Schwartz, Patricia Cohen, Alan Rappeport, Stanley Reed, Peter Eavis, Andrew E. Kramer, Rachel Abrams, Tiffany Hsu, Niraj Chokshi, David Gelles, Daisuke Wakabayashi, Keith Bradsher, Jim Tankersley, Julie Creswell, Mohammed Hadi, Carlos Tejada and Daniel Victor.