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U.S. Orders Chevron to Stop Producing Oil in Venezuela U.S. Orders Chevron to Stop Producing Oil in Venezuela
(2 days 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.
The Trump administration on Tuesday ordered Chevron, already hurting from plummeting oil prices related to the coronavirus, to stop producing oil in Venezuela and halt all remaining operations there by December.The Trump administration on Tuesday ordered Chevron, already hurting from plummeting oil prices related to the coronavirus, to stop producing oil in Venezuela and halt all remaining operations there by December.
The move was Washington’s latest ratcheting up of sanctions against the socialist regime of President Nicolás Maduro, which relies on oil revenue to finance the ailing Venezuelan economy.The move was Washington’s latest ratcheting up of sanctions against the socialist regime of President Nicolás Maduro, which relies on oil revenue to finance the ailing Venezuelan economy.
Chevron is the last American oil company to produce oil in Venezuela. It had hoped to continue to function there in the hope that it would have a valuable asset whenever the politics of the country stabilizes. Venezuela has the largest oil reserves in the world, although its oil industry is in shambles because of corruption, mismanagement and American sanctions.Chevron is the last American oil company to produce oil in Venezuela. It had hoped to continue to function there in the hope that it would have a valuable asset whenever the politics of the country stabilizes. Venezuela has the largest oil reserves in the world, although its oil industry is in shambles because of corruption, mismanagement and American sanctions.
Halliburton, Schlumberger and other American oil service companies were also covered by the tightened sanctions, although they have virtually ended their operations already.Halliburton, Schlumberger and other American oil service companies were also covered by the tightened sanctions, although they have virtually ended their operations already.
A decline in Venezuelan oil production may make a small dent in the oversupply of oil on the world market.A decline in Venezuelan oil production may make a small dent in the oversupply of oil on the world market.
Stocks on Wall Street fell for a second-straight day, as global markets retreated and oil prices continued their record slide.Stocks on Wall Street fell for a second-straight day, as global markets retreated and oil prices continued their record slide.
The S&P 500 dropped more than 3 percent on Tuesday, its biggest daily decline in three weeks. Major European markets were 3 percent to 4 percent lower.The S&P 500 dropped more than 3 percent on Tuesday, its biggest daily decline in three weeks. Major European markets were 3 percent to 4 percent lower.
The two-day slump is yet another shift in sentiment for the stock market as it searches for a clear path forward during the coronavirus crisis.The two-day slump is yet another shift in sentiment for the stock market as it searches for a clear path forward during the coronavirus crisis.
In recent weeks, the S&P 500 soared more than 25 percent, recovering roughly half its losses from a plunge in late February and early March. Investor spirits were lifted by a federal rescue package and promises by the Federal Reserve that it stood willing to pump trillions of dollars into the financial markets.In recent weeks, the S&P 500 soared more than 25 percent, recovering roughly half its losses from a plunge in late February and early March. Investor spirits were lifted by a federal rescue package and promises by the Federal Reserve that it stood willing to pump trillions of dollars into the financial markets.
Early signals that pace of growth in Covid-19 infections also buoyed the spirits of investors, suggesting the appearance of a dim light at the end of a tumultuous tunnel for the economy.Early signals that pace of growth in Covid-19 infections also buoyed the spirits of investors, suggesting the appearance of a dim light at the end of a tumultuous tunnel for the economy.
But periodically fresh evidence of the scale of the downturn — more than 20 million jobs have disappeared in the United States in four weeks — has pierced the bubble and returned the focus to the sheer size of the recession.But periodically fresh evidence of the scale of the downturn — more than 20 million jobs have disappeared in the United States in four weeks — has pierced the bubble and returned the focus to the sheer size of the recession.
The red flags have come in the form of prominent forecasts about collapsing corporate earnings, or a contraction in G.D.P. that would have been unthinkable before the outbreak. (Goldman Sachs expects the economy to shrink at an annualized pace of 34 percent in the second quarter.)The red flags have come in the form of prominent forecasts about collapsing corporate earnings, or a contraction in G.D.P. that would have been unthinkable before the outbreak. (Goldman Sachs expects the economy to shrink at an annualized pace of 34 percent in the second quarter.)
This week, it came from the oil markets, as the price of one oil benchmark dipped below zero for the first time, meaning some holders were ready to pay people to take a barrel off their hands.This week, it came from the oil markets, as the price of one oil benchmark dipped below zero for the first time, meaning some holders were ready to pay people to take a barrel off their hands.
“Every so often, reality bites,” said Steve Sosnick, chief strategist at Interactive Brokers in Greenwich, Conn. “You could not ignore what was going on in the oil markets.”“Every so often, reality bites,” said Steve Sosnick, chief strategist at Interactive Brokers in Greenwich, Conn. “You could not ignore what was going on in the oil markets.”
The unnerving inversion in oil prices reflected an economy in free-fall, disappearing demand for petroleum, and the fact that there are few places left to store all the crude still being pumped.The unnerving inversion in oil prices reflected an economy in free-fall, disappearing demand for petroleum, and the fact that there are few places left to store all the crude still being pumped.
On Tuesday the sell-off in oil continued, with the most closely watched price for oil in the United States, for a futures contract stipulating delivery of West Texas Intermediate crude in June, plunging to $11.69 a barrel, well away from negative territory but still down by nearly half. Brent crude, the global benchmark, also cratered.On Tuesday the sell-off in oil continued, with the most closely watched price for oil in the United States, for a futures contract stipulating delivery of West Texas Intermediate crude in June, plunging to $11.69 a barrel, well away from negative territory but still down by nearly half. Brent crude, the global benchmark, also cratered.
Shares of some oil producers, however, rose on Tuesday after President Trump said on Twitter that he was asking administration officials to “formulate a plan that will make funds available” to help the industry.Shares of some oil producers, however, rose on Tuesday after President Trump said on Twitter that he was asking administration officials to “formulate a plan that will make funds available” to help the industry.
The Trump administration is stepping up pressure on some businesses and institutions to return emergency small-business loans that they took if they already have access to capital or face “severe consequences.”The Trump administration is stepping up pressure on some businesses and institutions to return emergency small-business loans that they took if they already have access to capital or face “severe consequences.”
Shake Shack and Harvard University have been under fire this week for taking millions of dollars of stimulus money that was meant to help small businesses cope with the coronavirus pandemic. With Congress set to replenish the Small Business Administration’s Paycheck Protection Program this week, the White House is planning to update its guidance to ensure that rich organizations do not take money that they do not need.Shake Shack and Harvard University have been under fire this week for taking millions of dollars of stimulus money that was meant to help small businesses cope with the coronavirus pandemic. With Congress set to replenish the Small Business Administration’s Paycheck Protection Program this week, the White House is planning to update its guidance to ensure that rich organizations do not take money that they do not need.
“Harvard’s going to pay back the money,” President Trump said at a news conference on Tuesday.“Harvard’s going to pay back the money,” President Trump said at a news conference on Tuesday.
Harvard, which has a $40 billion endowment, received $8 million in loan money. Shake Shack said this week that it would return its $10 million loan after a public uproar.Harvard, which has a $40 billion endowment, received $8 million in loan money. Shake Shack said this week that it would return its $10 million loan after a public uproar.
Treasury Secretary Steven Mnuchin said it appeared that there was some ambiguity in the rules surrounding the loan program that made big companies think they were allowed to apply for the loans.Treasury Secretary Steven Mnuchin said it appeared that there was some ambiguity in the rules surrounding the loan program that made big companies think they were allowed to apply for the loans.
“The intent of this was for businesses that needed the money,” Mr. Mnuchin said. “The intent of this money was not for big public companies that have access to capital.”“The intent of this was for businesses that needed the money,” Mr. Mnuchin said. “The intent of this money was not for big public companies that have access to capital.”
Mr. Mnuchin said that the Treasury Department would release new guidance explaining the certification requirements for the loans and that companies that did not meet those requirements would have the opportunity to return the money. Those that fail to do so will face “severe consequences,” Mr. Mnuchin said without elaborating on what the penalties would entail.Mr. Mnuchin said that the Treasury Department would release new guidance explaining the certification requirements for the loans and that companies that did not meet those requirements would have the opportunity to return the money. Those that fail to do so will face “severe consequences,” Mr. Mnuchin said without elaborating on what the penalties would entail.
General Motors said on Tuesday that it was shutting down its four-year-old car-sharing service, Maven, the latest such venture to close its doors.General Motors said on Tuesday that it was shutting down its four-year-old car-sharing service, Maven, the latest such venture to close its doors.
Maven, which allows customers to rent cars by the hour, has struggled to build a substantial following. It was forced to suspend services in March because of the coronavirus outbreak.Maven, which allows customers to rent cars by the hour, has struggled to build a substantial following. It was forced to suspend services in March because of the coronavirus outbreak.
“We’ve gained extremely valuable insights from operating our own car-sharing business,” Pamela Fletcher, G.M.’s vice president for global innovation, said in a statement. “Our learnings and developments from Maven will go on to benefit and accelerate the growth of other areas of G.M. business.”“We’ve gained extremely valuable insights from operating our own car-sharing business,” Pamela Fletcher, G.M.’s vice president for global innovation, said in a statement. “Our learnings and developments from Maven will go on to benefit and accelerate the growth of other areas of G.M. business.”
G.M. has used Maven to test several types of businesses. For a time, it tried parking fleets of cars at apartment buildings and making them available to residents for small fees. It also tried providing cars to drivers working for delivery services such as GrubHub.G.M. has used Maven to test several types of businesses. For a time, it tried parking fleets of cars at apartment buildings and making them available to residents for small fees. It also tried providing cars to drivers working for delivery services such as GrubHub.
Automakers had hoped car-sharing would evolve into a new line of business that provided transportation as a service, attracting an increasing number of younger consumers who prefer not to own cars themselves. The business was intended to compete with ride-hailing companies like Uber and Lyft, and more established car-sharing services such as ZipCar.Automakers had hoped car-sharing would evolve into a new line of business that provided transportation as a service, attracting an increasing number of younger consumers who prefer not to own cars themselves. The business was intended to compete with ride-hailing companies like Uber and Lyft, and more established car-sharing services such as ZipCar.
But efforts by auto manufacturers have failed to take off. BMW and Daimler both introduced their own car-sharing companies in the United States, then combined them, before closing the operations down last year. Ford operated a ride sharing service aimed at San Francisco area commuters but also gave up on the venture.But efforts by auto manufacturers have failed to take off. BMW and Daimler both introduced their own car-sharing companies in the United States, then combined them, before closing the operations down last year. Ford operated a ride sharing service aimed at San Francisco area commuters but also gave up on the venture.
A bust in the oil market worsened on Tuesday as traders were gripped by fear that crude output remains far too high and storage is quickly running out.A bust in the oil market worsened on Tuesday as traders were gripped by fear that crude output remains far too high and storage is quickly running out.
On Monday, the futures contract for West Texas Intermediate crude to be delivered in May, fell into negative territory — a bizarre move that has never before happened. In other words, some traders were willing to pay buyers to take oil off their hands.On Monday, the futures contract for West Texas Intermediate crude to be delivered in May, fell into negative territory — a bizarre move that has never before happened. In other words, some traders were willing to pay buyers to take oil off their hands.
But other benchmarks of the price of crude had remained much higher (closer to $20 per barrel), suggesting that the negative price was partly a result of how oil is traded, with different prices set for crude that will be delivered at different points in time.But other benchmarks of the price of crude had remained much higher (closer to $20 per barrel), suggesting that the negative price was partly a result of how oil is traded, with different prices set for crude that will be delivered at different points in time.
Updated June 2, 2020 Updated June 5, 2020
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.)
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.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.
On Tuesday, the rest of the oil market also crashed. The West Texas Intermediate contract for June delivery fell 43 percent to $11.69 a barrel, and Brent crude, the international benchmark, was down about 21 percent.On Tuesday, the rest of the oil market also crashed. The West Texas Intermediate contract for June delivery fell 43 percent to $11.69 a barrel, and Brent crude, the international benchmark, was down about 21 percent.
Demand for oil is disappearing, 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 being pumped out — about 100 million barrels a day. At the start of the year, oil sold for more than $60 a barrel.Demand for oil is disappearing, 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 being pumped out — about 100 million barrels a day. At the start of the year, oil sold for more than $60 a barrel.
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.
“I’m just living a nightmare,” said Ben Sheppard, president of the Permian Basin Petroleum Association, which represents shale oil companies in the area of Texas and New Mexico that became the world’s largest oil field last year.“I’m just living a nightmare,” said Ben Sheppard, president of the Permian Basin Petroleum Association, which represents shale oil companies in the area of Texas and New Mexico that became the world’s largest oil field last year.
The sell-off in oil sharpened after the Texas Railroad Commission declined on Tuesday to force oil producers in the state to cut production. While one commissioner wanted to cut production by 20 percent, the other two members of the commission said they needed more legal advice before acting. The commission used to regularly manage oil production but hasn’t done so since the early 1970s.The sell-off in oil sharpened after the Texas Railroad Commission declined on Tuesday to force oil producers in the state to cut production. While one commissioner wanted to cut production by 20 percent, the other two members of the commission said they needed more legal advice before acting. The commission used to regularly manage oil production but hasn’t done so since the early 1970s.
A federal housing regulator announced a plan on Tuesday to provide financial relief to dozens of mortgage servicing firms worried about paying investors who own bonds backed by mortgages that are in forbearance.A federal housing regulator announced a plan on Tuesday to provide financial relief to dozens of mortgage servicing firms worried about paying investors who own bonds backed by mortgages that are in forbearance.
The Federal Housing Finance Agency said the firms had to make just four months of cash payouts to bond investors in mortgages that homeowners have stopped paying. After that, Fannie Mae and Freddie Mac — the government mortgage firms regulated by the agency — will assume that obligation, for up to eight more months, if necessary.The Federal Housing Finance Agency said the firms had to make just four months of cash payouts to bond investors in mortgages that homeowners have stopped paying. After that, Fannie Mae and Freddie Mac — the government mortgage firms regulated by the agency — will assume that obligation, for up to eight more months, if necessary.
The industry has feared it could be on the hook for a full year of payments to bond investors, because the federal government’s $2 trillion economic relief package permits homeowners who lose their jobs during the coronavirus crisis to avoid making mortgage payments for 12 months.The industry has feared it could be on the hook for a full year of payments to bond investors, because the federal government’s $2 trillion economic relief package permits homeowners who lose their jobs during the coronavirus crisis to avoid making mortgage payments for 12 months.
The new plan broadens an arrangement already in place for mortgages guaranteed against default by Freddie Mac. But it could create a new round of problems for Fannie and Freddie if tens of millions of people do not pay their mortgages for many months.The new plan broadens an arrangement already in place for mortgages guaranteed against default by Freddie Mac. But it could create a new round of problems for Fannie and Freddie if tens of millions of people do not pay their mortgages for many months.
American department stores, once all-powerful shopping meccas that anchored malls and Main Streets across the country, have been dealt blow after blow in the past decade. J.C. Penney and Sears were upended by hedge funds. Macy’s has been closing stores and cutting corporate staff. Barneys New York filed for bankruptcy last year.American department stores, once all-powerful shopping meccas that anchored malls and Main Streets across the country, have been dealt blow after blow in the past decade. J.C. Penney and Sears were upended by hedge funds. Macy’s has been closing stores and cutting corporate staff. Barneys New York filed for bankruptcy last year.
But nothing compares to the shock the weakened industry has taken from the coronavirus pandemic. The sales of clothing and accessories fell by more than half in March, a trend that is expected to only get worse in April. The entire executive team at Lord & Taylor was let go this month. Nordstrom has canceled orders and put off paying its vendors. The Neiman Marcus Group, the most glittering of the American department store chains, is expected to declare bankruptcy in the coming days, the first major retailer felled during the coronavirus crisis.But nothing compares to the shock the weakened industry has taken from the coronavirus pandemic. The sales of clothing and accessories fell by more than half in March, a trend that is expected to only get worse in April. The entire executive team at Lord & Taylor was let go this month. Nordstrom has canceled orders and put off paying its vendors. The Neiman Marcus Group, the most glittering of the American department store chains, is expected to declare bankruptcy in the coming days, the first major retailer felled during the coronavirus crisis.
It is not likely to be the last.It is not likely to be the last.
“The department stores, which have been failing slowly for a very long time, really don’t get over this,” said Mark A. Cohen, the director of retail studies at Columbia University’s Business School.“The department stores, which have been failing slowly for a very long time, really don’t get over this,” said Mark A. Cohen, the director of retail studies at Columbia University’s Business School.
Snap, the maker of Snapchat, on Tuesday reported quarterly revenue of $462 million, up 44 percent from the same quarter last year. Its losses were $306 million. Snap relies on advertising for revenue, and some analysts expected that the company would be hurt by weakening ad demand. Because of economic volatility caused by the pandemic, Snap said it would not provide guidance for its second quarter.Snap, the maker of Snapchat, on Tuesday reported quarterly revenue of $462 million, up 44 percent from the same quarter last year. Its losses were $306 million. Snap relies on advertising for revenue, and some analysts expected that the company would be hurt by weakening ad demand. Because of economic volatility caused by the pandemic, Snap said it would not provide guidance for its second quarter.
Coca-Cola said on Tuesday that its global volume had fallen 25 percent this month, largely from a loss of demand at businesses.Coca-Cola said on Tuesday that its global volume had fallen 25 percent this month, largely from a loss of demand at businesses.
IBM on Monday reported 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.IBM on Monday reported 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.
Darden Restaurants said on Monday that sales at its restaurants, which include Olive Garden and LongHorn Steakhouse, are down nearly 45 percent compared with last year. Darden said it would try to raise money through a $400 million public offering of its stock.Darden Restaurants said on Monday that sales at its restaurants, which include Olive Garden and LongHorn Steakhouse, are down nearly 45 percent compared with last year. Darden said it would try to raise money through a $400 million public offering of its stock.
Huawei’s sales growth slowed sharply in the first quarter, the company said on Tuesday, citing “tough challenges” facing it and its suppliers as they try to maintain production amid the pandemic. The Chinese smartphone and telecom equipment maker said that revenue in the first three months of 2020 increased by 1.4 percent compared with the same period last year, a decrease from the 19.1 percent annual growth it reported for 2019.Huawei’s sales growth slowed sharply in the first quarter, the company said on Tuesday, citing “tough challenges” facing it and its suppliers as they try to maintain production amid the pandemic. The Chinese smartphone and telecom equipment maker said that revenue in the first three months of 2020 increased by 1.4 percent compared with the same period last year, a decrease from the 19.1 percent annual growth it reported for 2019.
Netflix reported first-quarter earnings on Tuesday that showed a surge in demand for the service with stay-at-home orders in place around the world. The company said 15.7 million new customers signed up in the first three months of the year. Before the pandemic, Netflix expected about seven million.Netflix reported first-quarter earnings on Tuesday that showed a surge in demand for the service with stay-at-home orders in place around the world. The company said 15.7 million new customers signed up in the first three months of the year. Before the pandemic, Netflix expected about seven million.
Lyft said Tuesday that it was withdrawing its financial guidance for 2020. The ride-hailing company had said it expected revenue of $4.5 billion to $4.6 billion this year, but demand has plummeted since early March.Lyft said Tuesday that it was withdrawing its financial guidance for 2020. The ride-hailing company had said it expected revenue of $4.5 billion to $4.6 billion this year, but demand has plummeted since early March.
United Airlines plans to issue more than 39 million shares, the sale of which “will be used for general corporate purposes,” the company said in a statement on Tuesday. The announcement comes a day after the airline announced that it lost $2.1 billion in the first quarter.United Airlines plans to issue more than 39 million shares, the sale of which “will be used for general corporate purposes,” the company said in a statement on Tuesday. The announcement comes a day after the airline announced that it lost $2.1 billion in the first quarter.
The coronavirus outbreak caused the economy of Hubei Province, where it first emerged, to shrink by nearly 40 percent in the first three months of 2020 compared with a year ago, the local statistics bureau said on Tuesday — a grim forewarning of the economic toll that the pandemic is likely to exact on other hard-hit places around the world.The coronavirus outbreak caused the economy of Hubei Province, where it first emerged, to shrink by nearly 40 percent in the first three months of 2020 compared with a year ago, the local statistics bureau said on Tuesday — a grim forewarning of the economic toll that the pandemic is likely to exact on other hard-hit places around the world.
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.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.
Reporting was contributed by Sapna Maheshwari, Vanessa Friedman, Alan Rappeport, Kate Conger, Raymond Zhong, Reed Abelson, Rachel Abrams, Matthew Goldstein, Robert Gebeloff, Jessica Silver-Greenberg, Vikas Bajaj, Edmund Lee, Livia Albeck-Ripka, Stanley Reed, Clifford Krauss, Vindu Goel and Mohammed Hadi.Reporting was contributed by Sapna Maheshwari, Vanessa Friedman, Alan Rappeport, Kate Conger, Raymond Zhong, Reed Abelson, Rachel Abrams, Matthew Goldstein, Robert Gebeloff, Jessica Silver-Greenberg, Vikas Bajaj, Edmund Lee, Livia Albeck-Ripka, Stanley Reed, Clifford Krauss, Vindu Goel and Mohammed Hadi.