'Take Government Aid? We’ll See, Some Businesses Say' diff viewer (5/6)

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Take Government Aid? We’ll See, Some Businesses Say	Take Government Aid? We’ll See, Some Businesses Say
2020-06-06 12:06:33 UTC	2020-06-09 04:32:30 UTC (3 days later)
Grants, low-interest loans and other government support might seem like manna for businesses under financial strain. But some chief executives and corporate boards might balk at the offer of billions of dollars in aid to help them ride out the coronavirus pandemic and keep the economy from sliding into a deep recession.	Grants, low-interest loans and other government support might seem like manna for businesses under financial strain. But some chief executives and corporate boards might balk at the offer of billions of dollars in aid to help them ride out the coronavirus pandemic and keep the economy from sliding into a deep recession.
Already, some corporate leaders are bristling at the potential terms of the grants and loans authorized by the stimulus legislation President Trump signed last week. Boeing’s chief executive, David Calhoun, for one has suggested that the aerospace company could raise money elsewhere if it found the government’s terms too onerous.	Already, some corporate leaders are bristling at the potential terms of the grants and loans authorized by the stimulus legislation President Trump signed last week. Boeing’s chief executive, David Calhoun, for one has suggested that the aerospace company could raise money elsewhere if it found the government’s terms too onerous.
The Treasury Department, led by Steven Mnuchin, a former investment banker, might try to avoid imposing conditions that companies find burdensome. But if the aid appears too lenient, popular support for the rescue could evaporate as it did with the bailout of banks and other businesses after the 2008 financial crisis. And some lawmakers and experts argue that Mr. Mnuchin ought to resist the temptation to cut businesses too sweet a deal to prevent them from walking away from the government’s offer.	The Treasury Department, led by Steven Mnuchin, a former investment banker, might try to avoid imposing conditions that companies find burdensome. But if the aid appears too lenient, popular support for the rescue could evaporate as it did with the bailout of banks and other businesses after the 2008 financial crisis. And some lawmakers and experts argue that Mr. Mnuchin ought to resist the temptation to cut businesses too sweet a deal to prevent them from walking away from the government’s offer.
“Either they don’t need money, which means they shouldn’t get the money,” Senator Elizabeth Warren, Democrat of Massachusetts, said in an interview. “Or maybe they really do need it, in which case they should agree to some restrictions on how the money is spent.”	“Either they don’t need money, which means they shouldn’t get the money,” Senator Elizabeth Warren, Democrat of Massachusetts, said in an interview. “Or maybe they really do need it, in which case they should agree to some restrictions on how the money is spent.”
Taking a tougher line with companies could bolster the overall economic impact of the aid. Demanding that companies maintain hiring levels, for example, might mean that more people have money coming into their bank accounts, allowing them to spend on necessities and pay the rent or mortgage, said Phil Angelides, a former treasurer of California and chairman of the Financial Crisis Inquiry Commission, which was created by Congress in 2009.	Taking a tougher line with companies could bolster the overall economic impact of the aid. Demanding that companies maintain hiring levels, for example, might mean that more people have money coming into their bank accounts, allowing them to spend on necessities and pay the rent or mortgage, said Phil Angelides, a former treasurer of California and chairman of the Financial Crisis Inquiry Commission, which was created by Congress in 2009.
“It is more important to keep workers on the payroll, even if they’re at home — that needs to be the pre-eminent condition,” Mr. Angelides said.	“It is more important to keep workers on the payroll, even if they’re at home — that needs to be the pre-eminent condition,” Mr. Angelides said.
Of course, with revenues falling off a cliff and losses piling up, some companies may be so desperate that their chief executives happily accept terms like a temporary ban on companies buying their own shares, a condition that airline executives have said they are willing to accept. Others may accept aid simply because the public wants them to.	Of course, with revenues falling off a cliff and losses piling up, some companies may be so desperate that their chief executives happily accept terms like a temporary ban on companies buying their own shares, a condition that airline executives have said they are willing to accept. Others may accept aid simply because the public wants them to.
One big difference between the economic problems of today and the 2008 financial crisis is that most of the companies in need of relief are not suffering from self-inflicted wounds. “That’s obvious to most people, and a C.E.O. will have this defense at his or her disposal,” said Tony Fratto, a former assistant secretary of the Treasury and a former deputy press secretary for President George W. Bush.	One big difference between the economic problems of today and the 2008 financial crisis is that most of the companies in need of relief are not suffering from self-inflicted wounds. “That’s obvious to most people, and a C.E.O. will have this defense at his or her disposal,” said Tony Fratto, a former assistant secretary of the Treasury and a former deputy press secretary for President George W. Bush.
Right now, policymakers are keenly watching how airlines and Boeing might respond.	Right now, policymakers are keenly watching how airlines and Boeing might respond.
Congress’s rescue legislation identified airlines as eligible for federal aid and earmarked up to $25 billion in grants and another $25 billion in loans for the industry; cargo carriers have been offered $8 billion in grants and loans. Boeing is expected to be the biggest recipient of up to $17 billion lawmakers set aside for businesses considered crucial to national security. The act also authorizes the Treasury to provide $454 billion to back loans made by the Federal Reserve, which would enable the central bank to extend an additional $4 trillion of credit to businesses in all industries.	Congress’s rescue legislation identified airlines as eligible for federal aid and earmarked up to $25 billion in grants and another $25 billion in loans for the industry; cargo carriers have been offered $8 billion in grants and loans. Boeing is expected to be the biggest recipient of up to $17 billion lawmakers set aside for businesses considered crucial to national security. The act also authorizes the Treasury to provide $454 billion to back loans made by the Federal Reserve, which would enable the central bank to extend an additional $4 trillion of credit to businesses in all industries.
Some of the restrictions set out by the legislation, like a temporary halt on companies using their own money to buy back stock, appear to apply to all company loans. But a commitment by companies to maintain hiring at or close to recent levels is not required across the board. It would apply to the aid for airlines and companies deemed important to national security, but only through the end of September. On Friday, United management told staff that the federal aid would prevent any substantial reductions in staff or pay through September, but suggested that layoffs may come if the recovery was as slow as the company expected.	Some of the restrictions set out by the legislation, like a temporary halt on companies using their own money to buy back stock, appear to apply to all company loans. But a commitment by companies to maintain hiring at or close to recent levels is not required across the board. It would apply to the aid for airlines and companies deemed important to national security, but only through the end of September. On Friday, United management told staff that the federal aid would prevent any substantial reductions in staff or pay through September, but suggested that layoffs may come if the recovery was as slow as the company expected.
Treasury could also demand stock in exchange for supporting airlines and companies like Boeing.	Treasury could also demand stock in exchange for supporting airlines and companies like Boeing.
For some executives, giving the government shares in their company could be a big sticking point. In a TV interview last week, Mr. Calhoun, the Boeing chief executive, suggested he would not be interested in a rescue package that gave the federal government stock in the company.	For some executives, giving the government shares in their company could be a big sticking point. In a TV interview last week, Mr. Calhoun, the Boeing chief executive, suggested he would not be interested in a rescue package that gave the federal government stock in the company.
“I don’t have a need for an equity stake,” he told Fox Business. “If they force it, we just look at all the other options, and we’ve got plenty of them.”	“I don’t have a need for an equity stake,” he told Fox Business. “If they force it, we just look at all the other options, and we’ve got plenty of them.”
While the government has laid out initial guidance on terms for the $17 billion available to companies deemed essential to national security, it is expected to release more specific terms in the coming days. Until those terms are clear, Boeing is holding off on making a decision, two people briefed on the company’s deliberations said.	While the government has laid out initial guidance on terms for the $17 billion available to companies deemed essential to national security, it is expected to release more specific terms in the coming days. Until those terms are clear, Boeing is holding off on making a decision, two people briefed on the company’s deliberations said.
The airlines have not set out a clear position on giving the taxpayer stock.	The airlines have not set out a clear position on giving the taxpayer stock.
On Thursday, the chief executive of Southwest Airlines, Gary Kelly, told employees that the airline planned to apply for the grants to pay workers, but a spokesman declined to say whether the airline would be willing to give the government an equity stake in exchange for the assistance. Last week, Mr. Kelly said that the legislation only “gives us another option” and that the company could also “raise capital in the private markets.”	On Thursday, the chief executive of Southwest Airlines, Gary Kelly, told employees that the airline planned to apply for the grants to pay workers, but a spokesman declined to say whether the airline would be willing to give the government an equity stake in exchange for the assistance. Last week, Mr. Kelly said that the legislation only “gives us another option” and that the company could also “raise capital in the private markets.”
American, which has said it would seek aid from the government, referred questions about whether the government should take a stake in airlines to Airlines for America, an industry group. The group and United Airlines declined to comment. Delta Air Lines did not respond to a request for comment.	American, which has said it would seek aid from the government, referred questions about whether the government should take a stake in airlines to Airlines for America, an industry group. The group and United Airlines declined to comment. Delta Air Lines did not respond to a request for comment.
But on Wednesday, the unions that represent flight attendants at several major airlines urged Mr. Mnuchin not to exercise his power to take stock in the airlines. They argued that if he did so, he could scare off executives from accepting the aid, which would, in turn, mean more layoffs.	But on Wednesday, the unions that represent flight attendants at several major airlines urged Mr. Mnuchin not to exercise his power to take stock in the airlines. They argued that if he did so, he could scare off executives from accepting the aid, which would, in turn, mean more layoffs.
Congress did not make the rules surrounding equity stakes particularly onerous. In addition to giving Mr. Mnuchin discretion about whether Treasury takes any stake at all, the legislation prohibits the Treasury from exercising “voting power with respect to any shares of common stock acquired.” That means companies don’t have to worry about the government’s participating in important shareholder decisions. And the act says the Treasury can accept senior debt instead of equity.	Congress did not make the rules surrounding equity stakes particularly onerous. In addition to giving Mr. Mnuchin discretion about whether Treasury takes any stake at all, the legislation prohibits the Treasury from exercising “voting power with respect to any shares of common stock acquired.” That means companies don’t have to worry about the government’s participating in important shareholder decisions. And the act says the Treasury can accept senior debt instead of equity.
Of course, companies that are running low on cash don’t have much time to negotiate with the government.	Of course, companies that are running low on cash don’t have much time to negotiate with the government.
Updated June 5, 2020	Updated June 5, 2020
	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.	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.
Without the federal aid, three big airlines — American, Delta and United — have only about four to five months before they would have to start making deep cuts or take out new loans, Moody’s Investor Service said in a report published on Wednesday. With it, they have an estimated eight months of financial cushion.	Without the federal aid, three big airlines — American, Delta and United — have only about four to five months before they would have to start making deep cuts or take out new loans, Moody’s Investor Service said in a report published on Wednesday. With it, they have an estimated eight months of financial cushion.
“The federal grant money will be the most significant relief valve for alleviating pressure on the airlines,” Moody’s said.	“The federal grant money will be the most significant relief valve for alleviating pressure on the airlines,” Moody’s said.
Large retailers, in a frantic effort to conserve cash, have drawn down credit lines and are laying off or idling thousands of employees. Macy’s, which announced this week that it was furloughing the majority of its 125,000 employees, said in a statement, “We are also working both directly and through our retail associations to assess any government relief bill and advocate for Macy’s Inc. and the industry.”	Large retailers, in a frantic effort to conserve cash, have drawn down credit lines and are laying off or idling thousands of employees. Macy’s, which announced this week that it was furloughing the majority of its 125,000 employees, said in a statement, “We are also working both directly and through our retail associations to assess any government relief bill and advocate for Macy’s Inc. and the industry.”
Congress required fewer restrictions on the loan programs that will be set up with the $454 billion of Treasury backing. The legislation does not demand that companies taking out loans from these programs maintain hiring levels.	Congress required fewer restrictions on the loan programs that will be set up with the $454 billion of Treasury backing. The legislation does not demand that companies taking out loans from these programs maintain hiring levels.