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| U.S. Oil Prices Plunge Into Negative Territory | |
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| 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. |
| Something bizarre happened in the oil markets on Monday: Prices fell so much that some traders paid buyers to take oil off their hands. | Something bizarre happened in the oil markets on Monday: Prices fell so much that some traders paid buyers to take oil off their hands. |
| The price of the main U.S. oil benchmark fell more than $50 a barrel to end the day about $30 below zero, the first time oil prices have ever turned negative. Such an eye-popping slide is the result of a quirk in the oil market, but it underscores the industry’s disarray as the coronavirus pandemic decimates the world economy. | The price of the main U.S. oil benchmark fell more than $50 a barrel to end the day about $30 below zero, the first time oil prices have ever turned negative. Such an eye-popping slide is the result of a quirk in the oil market, but it underscores the industry’s disarray as the coronavirus pandemic decimates the world economy. |
| Demand for oil is collapsing, and despite a deal by Saudi Arabia, Russia and other nations to cut production, the world is running out of places to put all the oil the industry keeps pumping out — about 100 million barrels a day. At the start of the year, oil sold for over $60 a barrel, but by Friday it hit about $20. | Demand for oil is collapsing, and despite a deal by Saudi Arabia, Russia and other nations to cut production, the world is running out of places to put all the oil the industry keeps pumping out — about 100 million barrels a day. At the start of the year, oil sold for over $60 a barrel, but by Friday it hit about $20. |
| Prices went negative — meaning that anyone trying to sell a barrel would have to pay a buyer $30 — in part because of the way oil is traded. Futures contracts that require buyers to take possession of oil in May are expiring on Tuesday, and nobody wanted the oil because there was no place to store it. Contracts for June delivery were still trading for about $22 a barrel, down 16 percent for the day. | Prices went negative — meaning that anyone trying to sell a barrel would have to pay a buyer $30 — in part because of the way oil is traded. Futures contracts that require buyers to take possession of oil in May are expiring on Tuesday, and nobody wanted the oil because there was no place to store it. Contracts for June delivery were still trading for about $22 a barrel, down 16 percent for the day. |
| “If you are a producer, your market has disappeared, and if you don’t have access to storage you are out of luck,” said Aaron Brady, vice president for energy oil market services at IHS Markit, a research and consulting firm. “The system is seizing up.” | “If you are a producer, your market has disappeared, and if you don’t have access to storage you are out of luck,” said Aaron Brady, vice president for energy oil market services at IHS Markit, a research and consulting firm. “The system is seizing up.” |
| Refineries are unwilling to turn oil into gasoline, diesel and other products because so few people are commuting or taking airplane flights, and international trade has slowed sharply. Oil is already being stored on barges and in any nook and cranny companies can find. One of the better parts of the oil business these days is owning storage tankers. | Refineries are unwilling to turn oil into gasoline, diesel and other products because so few people are commuting or taking airplane flights, and international trade has slowed sharply. Oil is already being stored on barges and in any nook and cranny companies can find. One of the better parts of the oil business these days is owning storage tankers. |
| Virgin Australia announced on Tuesday that it had entered voluntary administration after the Australian government refused a bailout for the company of 1.4 billion Australian dollars. | Virgin Australia announced on Tuesday that it had entered voluntary administration after the Australian government refused a bailout for the company of 1.4 billion Australian dollars. |
| The airline, which is among the largest domestic and international carriers in Australia, said it hoped to recapitalize the business to emerge in a stronger position after the coronavirus crisis, but in the meantime would continue to operate scheduled flights transporting essential workers, moving freight and returning Australians home. | The airline, which is among the largest domestic and international carriers in Australia, said it hoped to recapitalize the business to emerge in a stronger position after the coronavirus crisis, but in the meantime would continue to operate scheduled flights transporting essential workers, moving freight and returning Australians home. |
| “Our intention is to undertake a process to restructure and refinance the business and bring it out of administration as soon as possible,” Vaughan Strawbridge, the company’s administrator, said in a statement. “We have commenced a process of seeking interest from parties for participation in the recapitalization of the business and its future, and there have been several expressions of interest so far,” he said. | “Our intention is to undertake a process to restructure and refinance the business and bring it out of administration as soon as possible,” Vaughan Strawbridge, the company’s administrator, said in a statement. “We have commenced a process of seeking interest from parties for participation in the recapitalization of the business and its future, and there have been several expressions of interest so far,” he said. |
| The company, which employs more than 10,000 people and flies to 41 destinations, became a significant player in the market following the closure of Ansett Australia in 2002, and its collapse would leave Qantas Airways with an effective monopoly over international travel to and from Australia, experts have said. | The company, which employs more than 10,000 people and flies to 41 destinations, became a significant player in the market following the closure of Ansett Australia in 2002, and its collapse would leave Qantas Airways with an effective monopoly over international travel to and from Australia, experts have said. |
| “Australia needs a second airline,” said Paul Scurrah, Virgin Australia’s chief executive. “We are determined to keep flying.” | “Australia needs a second airline,” said Paul Scurrah, Virgin Australia’s chief executive. “We are determined to keep flying.” |
| National Public Radio is the latest news outlet to look to cut costs amid an economic downturn and nationwide shuttering of businesses that has slashed the kinds of marketing spends that the media industry has traditionally relied on. | National Public Radio is the latest news outlet to look to cut costs amid an economic downturn and nationwide shuttering of businesses that has slashed the kinds of marketing spends that the media industry has traditionally relied on. |
| The nonprofit organization, which produces “Morning Edition” and “All Things Considered,” is cutting its executives’ pay by 10 to 25 percent, a spokeswoman confirmed Monday. | The nonprofit organization, which produces “Morning Edition” and “All Things Considered,” is cutting its executives’ pay by 10 to 25 percent, a spokeswoman confirmed Monday. |
| In an email on Friday to staff that was obtained by The New York Times, John Lansing, the president and chief executive, said the organization was projecting a shortfall of $12 million to $15 million in sponsorship revenue this year out of $115 million that had been budgeted, and a total budget deficit in the neighborhood of $30 million to $45 million. He said NPR would look to save as much as $25 million in costs, though it would try to do so while saving as many jobs as possible. The spokeswoman declined to confirm these figures. | In an email on Friday to staff that was obtained by The New York Times, John Lansing, the president and chief executive, said the organization was projecting a shortfall of $12 million to $15 million in sponsorship revenue this year out of $115 million that had been budgeted, and a total budget deficit in the neighborhood of $30 million to $45 million. He said NPR would look to save as much as $25 million in costs, though it would try to do so while saving as many jobs as possible. The spokeswoman declined to confirm these figures. |
| “We’re all trying to get through this and to the other side, and our view is that there is another side,” said Paul G. Haaga Jr., the chairman of NPR’s board. | “We’re all trying to get through this and to the other side, and our view is that there is another side,” said Paul G. Haaga Jr., the chairman of NPR’s board. |
| “My personal view is, I don’t think we’re going to need to make huge permanent cuts that will undermine the mission,” he added. “We’ve got a lot of reserves, we’ve been prudent in our finances and our investment management. That’s going to benefit us in this difficult time.” | “My personal view is, I don’t think we’re going to need to make huge permanent cuts that will undermine the mission,” he added. “We’ve got a lot of reserves, we’ve been prudent in our finances and our investment management. That’s going to benefit us in this difficult time.” |
| The Treasury Department is evaluating whether it has the legal authority to stop banks from garnishing stimulus payments deposited into bank accounts with negative balances, according to a person familiar with the matter. | The Treasury Department is evaluating whether it has the legal authority to stop banks from garnishing stimulus payments deposited into bank accounts with negative balances, according to a person familiar with the matter. |
| The Trump administration came under fire after some banks withheld economic relief money that was meant to help struggling Americans pay for essential expenses like food and rent during the coronavirus crisis. The Treasury Department started sending stimulus checks by direct deposit to millions of American last week. | The Trump administration came under fire after some banks withheld economic relief money that was meant to help struggling Americans pay for essential expenses like food and rent during the coronavirus crisis. The Treasury Department started sending stimulus checks by direct deposit to millions of American last week. |
| Banks can legally withhold funds that go into accounts that have negative balances, and no specific provision in the CARES Act, the $2 trillion relief package that authorized the stimulus payments, prevents them from taking customers’ stimulus money to cover debts. The legislation does prohibit the garnishing of stimulus money for state or federal debts, except for court-mandated child support. | Banks can legally withhold funds that go into accounts that have negative balances, and no specific provision in the CARES Act, the $2 trillion relief package that authorized the stimulus payments, prevents them from taking customers’ stimulus money to cover debts. The legislation does prohibit the garnishing of stimulus money for state or federal debts, except for court-mandated child support. |
| Some banks have halted the policy amid public backlash. Lawmakers have called on the Treasury to use its regulatory powers to put an end to the practice. | Some banks have halted the policy amid public backlash. Lawmakers have called on the Treasury to use its regulatory powers to put an end to the practice. |
| Some Treasury officials, however, believe that it would require Congress to amend the legislation to exempt the payments from court-ordered garnishment to pay creditors, according to a person familiar with the deliberations, which The Washington Post first reported. | Some Treasury officials, however, believe that it would require Congress to amend the legislation to exempt the payments from court-ordered garnishment to pay creditors, according to a person familiar with the deliberations, which The Washington Post first reported. |
| Stocks on Wall Street tumbled, with shares of energy producers following the price of crude oil lower on Monday. | Stocks on Wall Street tumbled, with shares of energy producers following the price of crude oil lower on Monday. |
| The S&P 500 fell about 1.8 percent. | The S&P 500 fell about 1.8 percent. |
| Oil producers were among the worst performing shares in the index. Exxon and Chevron both fell more than 4 percent. United Airlines and American Airlines also fell more than 4 percent, after the former said that it had lost almost $2 billion in the first three months of the year. | Oil producers were among the worst performing shares in the index. Exxon and Chevron both fell more than 4 percent. United Airlines and American Airlines also fell more than 4 percent, after the former said that it had lost almost $2 billion in the first three months of the year. |
| Technology stocks again fared better than the broader market, with the Nasdaq composite falling about 1 percent. Those stocks have been gaining in part because companies like Amazon and Netflix are seen as able to profit from stay-at-home orders as consumers pullback on spending elsewhere. Netflix, which will report its quarterly earnings results later this week, rose more than 3 percent on Monday. | Technology stocks again fared better than the broader market, with the Nasdaq composite falling about 1 percent. Those stocks have been gaining in part because companies like Amazon and Netflix are seen as able to profit from stay-at-home orders as consumers pullback on spending elsewhere. Netflix, which will report its quarterly earnings results later this week, rose more than 3 percent on Monday. |
| As investors try to gauge the extent of the damage caused by the coronavirus pandemic, they’ll face a flood of updates this week from other big companies, with about one-fifth of the S&P 500 expected to report first-quarter profits. | As investors try to gauge the extent of the damage caused by the coronavirus pandemic, they’ll face a flood of updates this week from other big companies, with about one-fifth of the S&P 500 expected to report first-quarter profits. |
| Monday’s losses may have been tempered somewhat by progress on the response to the pandemic. Lawmakers in Washington said they were nearing a deal for a new support package for small businesses, and President Trump said the authorities would step up testing. | Monday’s losses may have been tempered somewhat by progress on the response to the pandemic. Lawmakers in Washington said they were nearing a deal for a new support package for small businesses, and President Trump said the authorities would step up testing. |
| The Labor Department has clarified the eligibility of self-employed workers for emergency unemployment benefits after complaints that its initial directions had left many out. | The Labor Department has clarified the eligibility of self-employed workers for emergency unemployment benefits after complaints that its initial directions had left many out. |
| Critics had raised concerns that the benefits, known as Pandemic Unemployment Assistance, might not be available to gig workers like drivers for ride-hailing services who have decided not to work because there are so few potential passengers. | Critics had raised concerns that the benefits, known as Pandemic Unemployment Assistance, might not be available to gig workers like drivers for ride-hailing services who have decided not to work because there are so few potential passengers. |
| Some contended that certain self-employed workers, like those over 60, might not be eligible for the benefits if they chose not to work because of an elevated risk of Covid-19 complications, and that the assistance could expire at the end of the school year for those caring for children. | Some contended that certain self-employed workers, like those over 60, might not be eligible for the benefits if they chose not to work because of an elevated risk of Covid-19 complications, and that the assistance could expire at the end of the school year for those caring for children. |
| In an update issued Friday, the Labor Department said gig workers would be eligible if demand for their services declined significantly. It also said that workers would be eligible if they were advised by a medical professional to isolate themselves because of elevated health risks, and that workers with child care responsibilities could qualify if care facilities were closed during the summer. | In an update issued Friday, the Labor Department said gig workers would be eligible if demand for their services declined significantly. It also said that workers would be eligible if they were advised by a medical professional to isolate themselves because of elevated health risks, and that workers with child care responsibilities could qualify if care facilities were closed during the summer. |
| The update came in a response to a letter sent last week by a group of Senate Democrats to the labor secretary, Eugene Scalia. | The update came in a response to a letter sent last week by a group of Senate Democrats to the labor secretary, Eugene Scalia. |
| More than a dozen meat processing plants have scaled back or shut down operations as workers fall ill, disrupting the distribution of billions of pounds of beef, chicken and pork around the country. | More than a dozen meat processing plants have scaled back or shut down operations as workers fall ill, disrupting the distribution of billions of pounds of beef, chicken and pork around the country. |
| Of the 3,700 employees at a Smithfield Foods plant in Sioux Falls, S.D., 16 percent tested positive, many of them refugees and immigrants from Latin America and Asia who worked in conditions that made social distancing difficult. The facility, which produces 5 percent of the nation’s pork, accounted for nearly half of the coronavirus cases in the area and is the single largest hot spot in the United States. | Of the 3,700 employees at a Smithfield Foods plant in Sioux Falls, S.D., 16 percent tested positive, many of them refugees and immigrants from Latin America and Asia who worked in conditions that made social distancing difficult. The facility, which produces 5 percent of the nation’s pork, accounted for nearly half of the coronavirus cases in the area and is the single largest hot spot in the United States. |
| Slaughterhouses are “a critical bottleneck in the system,” according to one supply chain expert. Closing one is like shutting down an airport hub, with reverberations felt by farmers, restaurants, grocery stores and consumers. | Slaughterhouses are “a critical bottleneck in the system,” according to one supply chain expert. Closing one is like shutting down an airport hub, with reverberations felt by farmers, restaurants, grocery stores and consumers. |
| Warnings about meat shortages have mounted as the number of cattle slaughtered dropped nearly 22 percent compared with last year, and hogs fell 6 percent. But some companies have been inconsistent in handling the crisis, citing concerns that widespread testing of employees could amplify calls to shut down processing facilities. | Warnings about meat shortages have mounted as the number of cattle slaughtered dropped nearly 22 percent compared with last year, and hogs fell 6 percent. But some companies have been inconsistent in handling the crisis, citing concerns that widespread testing of employees could amplify calls to shut down processing facilities. |
| Shake Shack said it was returning a $10 million loan from a federal program to help small businesses amid mounting criticism that large chains had been favored over smaller operators in the program’s rollout to the restaurant industry. | Shake Shack said it was returning a $10 million loan from a federal program to help small businesses amid mounting criticism that large chains had been favored over smaller operators in the program’s rollout to the restaurant industry. |
| The $349 billion stimulus effort, which was distributed on a first-come, first-serve basis, was exhausted in just two weeks, with many loans favoring larger companies that were better able to navigate the application process. Major chains like Potbelly and Ruth’s Chris Steakhouse were able to secure tens of millions of dollars in loans while other owners were left scrambling to survive the deepening financial crisis. | The $349 billion stimulus effort, which was distributed on a first-come, first-serve basis, was exhausted in just two weeks, with many loans favoring larger companies that were better able to navigate the application process. Major chains like Potbelly and Ruth’s Chris Steakhouse were able to secure tens of millions of dollars in loans while other owners were left scrambling to survive the deepening financial crisis. |
| Shake Shack, with 189 outlets and nearly 8,000 employees in the United States, said on Sunday that it would return the $10 million in funds it had received, after securing additional capital through an equity transaction on Friday. | Shake Shack, with 189 outlets and nearly 8,000 employees in the United States, said on Sunday that it would return the $10 million in funds it had received, after securing additional capital through an equity transaction on Friday. |
| But the return of those funds may come too late for the thousands of independent restaurateurs across the United States who are searching for a lifeline to survive the coronavirus pandemic. | But the return of those funds may come too late for the thousands of independent restaurateurs across the United States who are searching for a lifeline to survive the coronavirus pandemic. |
| In the restaurant industry, small operators who have been forced to close their dining rooms are growing increasingly concerned that the fine print of the loan program favors large chains at the expense of mom-and-pop eateries. | In the restaurant industry, small operators who have been forced to close their dining rooms are growing increasingly concerned that the fine print of the loan program favors large chains at the expense of mom-and-pop eateries. |
| Under the terms of the program, businesses that employ fewer than 500 people are eligible for loans, which will be forgiven if the borrower does not lay off staff or rehires them by June 30. But a subsection of the legislation makes certain types of businesses, including restaurant and hotel chains, with no more than 500 employees “per physical location” also eligible. | Under the terms of the program, businesses that employ fewer than 500 people are eligible for loans, which will be forgiven if the borrower does not lay off staff or rehires them by June 30. But a subsection of the legislation makes certain types of businesses, including restaurant and hotel chains, with no more than 500 employees “per physical location” also eligible. |
| IBM reported its first-quarter results after the market closed on Monday, showing slightly lower revenue for the quarter compared with a year ago, in one of the first detailed looks at the pandemic’s impact on the tech sector. The company also withdrew its earnings guidance for the year “in light of the current Covid-19 crisis.” | IBM reported its first-quarter results after the market closed on Monday, showing slightly lower revenue for the quarter compared with a year ago, in one of the first detailed looks at the pandemic’s impact on the tech sector. The company also withdrew its earnings guidance for the year “in light of the current Covid-19 crisis.” |
| Hertz, one of the world’s largest car rental companies, said on Monday that it had decided to terminate 10,000 employees in North America because of high rental cancellations and weak bookings related to the coronavirus pandemic. The cuts, which affect about one-third of Hertz’s American work force, will cost the company about $30 million. As of December, Hertz employed 38,000 people worldwide, including 29,000 in the United States. | Hertz, one of the world’s largest car rental companies, said on Monday that it had decided to terminate 10,000 employees in North America because of high rental cancellations and weak bookings related to the coronavirus pandemic. The cuts, which affect about one-third of Hertz’s American work force, will cost the company about $30 million. As of December, Hertz employed 38,000 people worldwide, including 29,000 in the United States. |
| Darden Restaurants said on Monday that sales at its restaurants, which include Olive Garden and LongHorn Steakhouse, are down nearly 45 percent compared to last year, and that its cash burn rate had “improved” to about $20 million a week. Darden said it would try to raise money through a $400 million public offering of its stock. Darden employs more than 190,000 people across its chains. | Darden Restaurants said on Monday that sales at its restaurants, which include Olive Garden and LongHorn Steakhouse, are down nearly 45 percent compared to last year, and that its cash burn rate had “improved” to about $20 million a week. Darden said it would try to raise money through a $400 million public offering of its stock. Darden employs more than 190,000 people across its chains. |
| United Airlines lost more than $2 billion in the first quarter, a decline driven by the virtual stalling of the global airline industry in March, the company said in a securities filing on Monday. It said that it expected to receive access to a $4.5 billion loan from the Treasury Department under the economic relief law. United has already received about $5 billion from the federal government, mostly in grants intended to pay employees through September. | United Airlines lost more than $2 billion in the first quarter, a decline driven by the virtual stalling of the global airline industry in March, the company said in a securities filing on Monday. It said that it expected to receive access to a $4.5 billion loan from the Treasury Department under the economic relief law. United has already received about $5 billion from the federal government, mostly in grants intended to pay employees through September. |
| Tapestry, the owner of Coach, Kate Spade and Stuart Weitzman, said on Monday that it would extend salary and benefits to most North American retail employees through May 30. The company will also cut 2,100 part-time associates across the three brands starting April 25, and give them a $1,000 one-time payment. Tapestry said that all of its stores in mainland China had now reopened. | Tapestry, the owner of Coach, Kate Spade and Stuart Weitzman, said on Monday that it would extend salary and benefits to most North American retail employees through May 30. The company will also cut 2,100 part-time associates across the three brands starting April 25, and give them a $1,000 one-time payment. Tapestry said that all of its stores in mainland China had now reopened. |
| Reporting was contributed by Livia Albeck-Ripka, Clifford Krauss, Michael Corkery, Noam Scheiber, Vindu Goel, Alan Rappeport, Steve Lohr, Michael de la Merced, Emily Flitter, Stanley Reed, David Yaffe-Bellany, Niraj Chokshi, Jeanna Smialek, Carlos Tejada, Brooks Barnes, Nicole Sperling, Austin Ramzy, Adam Satariano, Sapna Maheshwari, Jason Karaian, Ron Lieber, Brian X. Chen, Ben Casselman, Jim Tankersley and Kevin Granville. | Reporting was contributed by Livia Albeck-Ripka, Clifford Krauss, Michael Corkery, Noam Scheiber, Vindu Goel, Alan Rappeport, Steve Lohr, Michael de la Merced, Emily Flitter, Stanley Reed, David Yaffe-Bellany, Niraj Chokshi, Jeanna Smialek, Carlos Tejada, Brooks Barnes, Nicole Sperling, Austin Ramzy, Adam Satariano, Sapna Maheshwari, Jason Karaian, Ron Lieber, Brian X. Chen, Ben Casselman, Jim Tankersley and Kevin Granville. |