'You Have to Pay to Give Oil Away' diff viewer (0/1)

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You Have to Pay to Give Oil Away	You Have to Pay to Give Oil Away
2020-04-21 16:30:25 UTC	2020-06-03 08:06:25 UTC (about 1 month later)
Our next DealBook Debrief call is about the fallout for the retail industry, which has been hit particularly hard by the pandemic. We’ll be joined by Vanessa Friedman, The Times’s fashion director and chief fashion critic, to discuss how the fashion and luxury industries are coping, and the possible lasting effects. We hope you’ll join us on Thursday, April 23, at 11 a.m. Eastern — R.S.V.P. here. (Want this in your inbox each morning? Sign up here.)	Our next DealBook Debrief call is about the fallout for the retail industry, which has been hit particularly hard by the pandemic. We’ll be joined by Vanessa Friedman, The Times’s fashion director and chief fashion critic, to discuss how the fashion and luxury industries are coping, and the possible lasting effects. We hope you’ll join us on Thursday, April 23, at 11 a.m. Eastern — R.S.V.P. here. (Want this in your inbox each morning? Sign up here.)
“Crude costs money again” is a strange headline for strange times. The price of a barrel of oil for delivery in May dropped below zero yesterday: West Texas Intermediate crude, the U.S. benchmark, closed at around -$38. It bounced back above zero, briefly, in early trading today, before falling back into negative territory. Market watchers are trying to make sense of it all.	“Crude costs money again” is a strange headline for strange times. The price of a barrel of oil for delivery in May dropped below zero yesterday: West Texas Intermediate crude, the U.S. benchmark, closed at around -$38. It bounced back above zero, briefly, in early trading today, before falling back into negative territory. Market watchers are trying to make sense of it all.
Technical factors explain some of the decline. The soon-to-expire May contract went negative on thin volumes, while the more heavily traded June contract has remained above zero. In essence, traders don’t want to be stuck taking delivery of any oil now — storage is nearly full and demand is nonexistent — but they think that production cuts and a gradual reopening of the economy will make oil worth something in the future.	Technical factors explain some of the decline. The soon-to-expire May contract went negative on thin volumes, while the more heavily traded June contract has remained above zero. In essence, traders don’t want to be stuck taking delivery of any oil now — storage is nearly full and demand is nonexistent — but they think that production cuts and a gradual reopening of the economy will make oil worth something in the future.
The ugly economics of the industry are also to blame. The production cuts that major oil powers agreed on this month aren’t enough to offset the steep drop in demand with much of the global economy in lockdown — so much so that Saudi Arabia and other OPEC members may start cutting a few weeks ahead of schedule, The Wall Street Journal reports.	The ugly economics of the industry are also to blame. The production cuts that major oil powers agreed on this month aren’t enough to offset the steep drop in demand with much of the global economy in lockdown — so much so that Saudi Arabia and other OPEC members may start cutting a few weeks ahead of schedule, The Wall Street Journal reports.
• The battered U.S. energy industry is now worth around $700 billion in total market capitalization, roughly half the market value of Microsoft, according to the Bespoke Investment Group.	• The battered U.S. energy industry is now worth around $700 billion in total market capitalization, roughly half the market value of Microsoft, according to the Bespoke Investment Group.
Could it happen again? Analysts at ING think so: “It is likely that storage this time next month will be even more of an issue, given the surplus environment, and so in the absence of a meaningful demand recovery, negative prices could return for June.”	Could it happen again? Analysts at ING think so: “It is likely that storage this time next month will be even more of an issue, given the surplus environment, and so in the absence of a meaningful demand recovery, negative prices could return for June.”
The federal government’s small-business rescue fund, the Payroll Protection Program, is out of money. When it was up and running, getting a loan from a designated first-come-first-served program was a matter of luck and connections.	The federal government’s small-business rescue fund, the Payroll Protection Program, is out of money. When it was up and running, getting a loan from a designated first-come-first-served program was a matter of luck and connections.
A customer’s bank mattered a great deal. Some lenders took days to set up their systems to gain access to the fund. Banks often gave priority to existing customers and, data shows, to bigger ones, including over 80 publicly traded companies.	A customer’s bank mattered a great deal. Some lenders took days to set up their systems to gain access to the fund. Banks often gave priority to existing customers and, data shows, to bigger ones, including over 80 publicly traded companies.
• That has led businesses to sue banks like JPMorgan Chase and Bank of America, accusing them of favoring bigger customers.	• That has led businesses to sue banks like JPMorgan Chase and Bank of America, accusing them of favoring bigger customers.
Much of the outrage is directed at big restaurant and hotel chains, which were allowed to request funds, depriving true mom-and-pop businesses of loan money. And it doesn’t help that a majority of successful applicants haven’t received their money, according to a new survey.	Much of the outrage is directed at big restaurant and hotel chains, which were allowed to request funds, depriving true mom-and-pop businesses of loan money. And it doesn’t help that a majority of successful applicants haven’t received their money, according to a new survey.
Congress is poised to replenish the fund with $300 billion, and could have a bill to vote on as soon as this afternoon. But the banking industry says this won’t be enough: Lenders expect the reopened program to burn through $50 billion per day.	Congress is poised to replenish the fund with $300 billion, and could have a bill to vote on as soon as this afternoon. But the banking industry says this won’t be enough: Lenders expect the reopened program to burn through $50 billion per day.
The first batch of states have laid out their plans to lift lockdowns, and all eyes are on them to see if they’re moving too early.	The first batch of states have laid out their plans to lift lockdowns, and all eyes are on them to see if they’re moving too early.
South Carolina will let some retailers open today, Georgia will permit gyms and hair salons to do so on Friday, and Tennessee won’t renew a lockdown order set to expire on April 30. All three states said they believed that infections had leveled off enough to let them reopen their economies.	South Carolina will let some retailers open today, Georgia will permit gyms and hair salons to do so on Friday, and Tennessee won’t renew a lockdown order set to expire on April 30. All three states said they believed that infections had leveled off enough to let them reopen their economies.
They’re doing so despite the debate over coronavirus testing. Other states are arguing that they can’t reopen because there isn’t enough screening for the virus. An official with the W.H.O. warned this morning that the lifting of lockdowns must be gradual to avoid a second wave of infections.	They’re doing so despite the debate over coronavirus testing. Other states are arguing that they can’t reopen because there isn’t enough screening for the virus. An official with the W.H.O. warned this morning that the lifting of lockdowns must be gradual to avoid a second wave of infections.
• Denmark, which has opened some schools and businesses, has pledged to test everyone with symptoms.	• Denmark, which has opened some schools and businesses, has pledged to test everyone with symptoms.
Steven Davidoff Solomon, a.k.a. “The Deal Professor,” is the faculty director at the Berkeley Center for Law, Business and the Economy	Steven Davidoff Solomon, a.k.a. “The Deal Professor,” is the faculty director at the Berkeley Center for Law, Business and the Economy
If past crises are any guide, the big technology companies are about to sidestep antitrust laws and get even bigger.	If past crises are any guide, the big technology companies are about to sidestep antitrust laws and get even bigger.
Consider last week’s decision by British regulators to allow Amazon’s investment in the London-based food delivery start-up Deliveroo. Amazon said last May that it was joining a $575 million fund-raising round, valuing Deliveroo at perhaps as much as $4 billion. Britain’s Competition and Markets Authority halted the deal because it thought it might be bad for competition.	Consider last week’s decision by British regulators to allow Amazon’s investment in the London-based food delivery start-up Deliveroo. Amazon said last May that it was joining a $575 million fund-raising round, valuing Deliveroo at perhaps as much as $4 billion. Britain’s Competition and Markets Authority halted the deal because it thought it might be bad for competition.
That was before the pandemic.	That was before the pandemic.
Deliveroo argued that, without Amazon’s money, it would have to shut down. The British antitrust authority backed down, saying that if Deliveroo went bust, it “could mean that some customers are cut off from online food delivery altogether, with others facing higher prices or a reduction in service quality.”	Deliveroo argued that, without Amazon’s money, it would have to shut down. The British antitrust authority backed down, saying that if Deliveroo went bust, it “could mean that some customers are cut off from online food delivery altogether, with others facing higher prices or a reduction in service quality.”
Expect this to be repeated elsewhere. In the U.S., big companies will take advantage of the so-called failing firm exemption to antitrust law. This doctrine, which dates from a 1930 Supreme Court case, allows otherwise anticompetitive deals to succeed when the target would probably fail without the deal and there is no other viable investment. American Airlines used it when buying TWA.	Expect this to be repeated elsewhere. In the U.S., big companies will take advantage of the so-called failing firm exemption to antitrust law. This doctrine, which dates from a 1930 Supreme Court case, allows otherwise anticompetitive deals to succeed when the target would probably fail without the deal and there is no other viable investment. American Airlines used it when buying TWA.
Consolidation is natural during troubled times. Recall how the biggest U.S. banks gobbled up failing competitors during the 2008 financial crisis.	Consolidation is natural during troubled times. Recall how the biggest U.S. banks gobbled up failing competitors during the 2008 financial crisis.
This time around, it’s deal teams at tech companies who are hatching M.&A. plans as the economic downturn takes its toll. They’ll be aided by outdated antitrust laws that assess whether an acquisition “lessens competition” in deciding whether it should be blocked. That test fails to measure bigness as a rule, allowing Facebook to acquire Instagram or Amazon to buy Whole Foods because antitrust regulators ignore the network effects.	This time around, it’s deal teams at tech companies who are hatching M.&A. plans as the economic downturn takes its toll. They’ll be aided by outdated antitrust laws that assess whether an acquisition “lessens competition” in deciding whether it should be blocked. That test fails to measure bigness as a rule, allowing Facebook to acquire Instagram or Amazon to buy Whole Foods because antitrust regulators ignore the network effects.
And with Washington consumed with saving the economy, don’t expect the pre-pandemic debates about breaking up tech companies or updating antitrust laws to get very far.	And with Washington consumed with saving the economy, don’t expect the pre-pandemic debates about breaking up tech companies or updating antitrust laws to get very far.
In pleading for help for his Virgin Atlantic airline, Mr. Branson argued that his wealth wasn’t as huge as people think — a reminder that billionaires may have wealth, but not necessarily cash.	In pleading for help for his Virgin Atlantic airline, Mr. Branson argued that his wealth wasn’t as huge as people think — a reminder that billionaires may have wealth, but not necessarily cash.
Mr. Branson offered to borrow against his private island in the British Virgin Islands to help raise cash for Virgin Atlantic, he wrote in a blog post yesterday pleading for financial support from the British government.	Mr. Branson offered to borrow against his private island in the British Virgin Islands to help raise cash for Virgin Atlantic, he wrote in a blog post yesterday pleading for financial support from the British government.
• Another Virgin Group holding, Virgin Australia, filed for administration this morning after being denied a bailout.	• Another Virgin Group holding, Virgin Australia, filed for administration this morning after being denied a bailout.
	Updated June 2, 2020
	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.
	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.
	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.)
	More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
	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.
	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.