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Airlines and Automakers Consider How to Reopen Airlines and Automakers Consider How to Reopen
(1 day 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.
It could be years before the U.S. economy fully recovers from the pandemic, but some airline and auto industry executives are starting to ask what it will take to reopen their businesses.It could be years before the U.S. economy fully recovers from the pandemic, but some airline and auto industry executives are starting to ask what it will take to reopen their businesses.
Delta Air Lines, American Airlines, United Airlines and Southwest Airlines have already aggressively advertised the precautions they are taking to lure back passengers, from fogging cabins with disinfectant to restricting food service to blocking out middle seats.Delta Air Lines, American Airlines, United Airlines and Southwest Airlines have already aggressively advertised the precautions they are taking to lure back passengers, from fogging cabins with disinfectant to restricting food service to blocking out middle seats.
The chief executive of Delta, Ed Bastian, told financial analysts on Wednesday his company was prepared to “make whatever changes to the business model that will be necessary.” That could mean federally administered “immunity passports” or spacing out seats or running flights with fewer passengers.The chief executive of Delta, Ed Bastian, told financial analysts on Wednesday his company was prepared to “make whatever changes to the business model that will be necessary.” That could mean federally administered “immunity passports” or spacing out seats or running flights with fewer passengers.
“This recovery is going to take several years,” Mr. Bastian said. “It’s going to be multi-phased, it’s going to be choppy along the way. We’ll have opportunities to test all those theses and see what it takes.”“This recovery is going to take several years,” Mr. Bastian said. “It’s going to be multi-phased, it’s going to be choppy along the way. We’ll have opportunities to test all those theses and see what it takes.”
But what works for some airlines may not work for others. Michael O’Leary, the chief executive of low-cost carrier Ryanair, told The Financial Times on Wednesday that the airline would not return to flying with middle seats empty.But what works for some airlines may not work for others. Michael O’Leary, the chief executive of low-cost carrier Ryanair, told The Financial Times on Wednesday that the airline would not return to flying with middle seats empty.
Automakers are also making plans to turn the lights back on. Volkswagen said on Wednesday it has called employees back to work at its plant in Chattanooga, Tenn., on May 3, making the company one of the first major automakers to resume manufacturing since much of the industry shut down because of the coronavirus pandemic.Automakers are also making plans to turn the lights back on. Volkswagen said on Wednesday it has called employees back to work at its plant in Chattanooga, Tenn., on May 3, making the company one of the first major automakers to resume manufacturing since much of the industry shut down because of the coronavirus pandemic.
The company said it had spent several weeks putting in place health and safety measures to protect the 3,800 people who work at the plant, which makes the Atlas sport-utility vehicle. Volkswagen stopped production at the plant on March 21 after state and local officials issued stay-at-home orders. Gov. Bill Lee of Tennessee said on Monday he would let his order for people to stay home expire on April 30.The company said it had spent several weeks putting in place health and safety measures to protect the 3,800 people who work at the plant, which makes the Atlas sport-utility vehicle. Volkswagen stopped production at the plant on March 21 after state and local officials issued stay-at-home orders. Gov. Bill Lee of Tennessee said on Monday he would let his order for people to stay home expire on April 30.
General Motors, Ford Motor and Fiat Chrysler have not yet called factory workers back, and continue to negotiate with the United Automobile Workers union over safety measures.General Motors, Ford Motor and Fiat Chrysler have not yet called factory workers back, and continue to negotiate with the United Automobile Workers union over safety measures.
The French carmaker Renault plans to begin limited production at a plant outside Paris on Monday. The company resumed production last week at factories in Portugal and Spain that make engines and gearboxes.The French carmaker Renault plans to begin limited production at a plant outside Paris on Monday. The company resumed production last week at factories in Portugal and Spain that make engines and gearboxes.
Renault’s plant in Flins, about 25 miles west of Paris, will be the first vehicle assembly plant in France to reopen. Initially only about one-quarter of the work force will report for duty to reduce the risk of infection, a spokeswoman said.Renault’s plant in Flins, about 25 miles west of Paris, will be the first vehicle assembly plant in France to reopen. Initially only about one-quarter of the work force will report for duty to reduce the risk of infection, a spokeswoman said.
South Korea’s economy shrank at its fastest rate since the 2008 financial crisis during the first three months of the year, government data showed Thursday, as domestic consumption and trade reeled from the impact of the coronavirus pandemic.South Korea’s economy shrank at its fastest rate since the 2008 financial crisis during the first three months of the year, government data showed Thursday, as domestic consumption and trade reeled from the impact of the coronavirus pandemic.
The economy contracted a seasonally adjusted 1.4 percent from the previous quarter, according to preliminary data from the Bank of Korea. The economy expanded by 1.3 percent year on year.The economy contracted a seasonally adjusted 1.4 percent from the previous quarter, according to preliminary data from the Bank of Korea. The economy expanded by 1.3 percent year on year.
South Korea was among the first countries to be hit hard by the coronavirus, after an outbreak in a church in the city of Daegu led to the rapid spread of the pathogen. Nevertheless, widespread testing efforts in South Korea have largely kept the outbreak under control and helped the country avoid having to institute the kinds of large-scale lockdowns that have caused enormous economic damage in China, Europe and the United States.South Korea was among the first countries to be hit hard by the coronavirus, after an outbreak in a church in the city of Daegu led to the rapid spread of the pathogen. Nevertheless, widespread testing efforts in South Korea have largely kept the outbreak under control and helped the country avoid having to institute the kinds of large-scale lockdowns that have caused enormous economic damage in China, Europe and the United States.
Even so, domestic consumption in South Korea dropped by 6.4 percent during the first quarter, the data said, as people stayed home to avoid getting sick. Exports fell by 2 percent despite an increase in shipments of semiconductors, one of the pillars of the country’s economy.Even so, domestic consumption in South Korea dropped by 6.4 percent during the first quarter, the data said, as people stayed home to avoid getting sick. Exports fell by 2 percent despite an increase in shipments of semiconductors, one of the pillars of the country’s economy.
Although the damage to the economy this quarter was relatively mild compared with other countries, it is likely to deepen next quarter, when the data will more clearly reflect the sharp drop in demand from other countries hard hit by the virus, said Lee Geun-tae, a senior research fellow at the LG Economic Research Institute.Although the damage to the economy this quarter was relatively mild compared with other countries, it is likely to deepen next quarter, when the data will more clearly reflect the sharp drop in demand from other countries hard hit by the virus, said Lee Geun-tae, a senior research fellow at the LG Economic Research Institute.
As Congress prepares to restock a depleted small-business loan fund, complaints are mounting about the publicly traded companies that sucked up hundreds of millions of dollars from the fund’s initial distributions.As Congress prepares to restock a depleted small-business loan fund, complaints are mounting about the publicly traded companies that sucked up hundreds of millions of dollars from the fund’s initial distributions.
More than 100 public companies obtained more than $500 million in forgivable loans from the taxpayer-backed Paycheck Protection Program, based on a New York Times analysis of corporate filings. The recipients included Potbelly Sandwich Shop, a chain of 400 restaurants; Hallador Energy, a coal company; and Quantum Corporation, a data storage company, according to regulatory filings. Each received $10 million from the program’s $349 billion fund. (The restaurant chain Shake Shack returned its $10 million loan.)More than 100 public companies obtained more than $500 million in forgivable loans from the taxpayer-backed Paycheck Protection Program, based on a New York Times analysis of corporate filings. The recipients included Potbelly Sandwich Shop, a chain of 400 restaurants; Hallador Energy, a coal company; and Quantum Corporation, a data storage company, according to regulatory filings. Each received $10 million from the program’s $349 billion fund. (The restaurant chain Shake Shack returned its $10 million loan.)
Kura Sushi USA, a chain of sushi restaurants, is returning the roughly $6 million it got from the federal small business paycheck protection loan program, it said in a securities filing on Wednesday. A publicly traded company, it is controlled by its former Japanese parent firm, raising questions about whether companies based outside of the United States were benefiting from the forgivable loans established by Congress.Kura Sushi USA, a chain of sushi restaurants, is returning the roughly $6 million it got from the federal small business paycheck protection loan program, it said in a securities filing on Wednesday. A publicly traded company, it is controlled by its former Japanese parent firm, raising questions about whether companies based outside of the United States were benefiting from the forgivable loans established by Congress.
Hotels and luxury resorts that funnel money back to a single company have secured about $40 million in small-business program funding, the latest evidence that large sums of money flowing from the government’s relief program are in some cases helping big businesses.Hotels and luxury resorts that funnel money back to a single company have secured about $40 million in small-business program funding, the latest evidence that large sums of money flowing from the government’s relief program are in some cases helping big businesses.
Ashford Inc., an asset management firm based in Dallas, makes money partly by advising two real estate investment trusts: Ashford Hospitality Trust and Braemar Hotels & Resorts, which together own more than 100 properties. Those companies reported that their hotel properties had received millions in forgivable loans through a government program meant to help small businesses.Ashford Inc., an asset management firm based in Dallas, makes money partly by advising two real estate investment trusts: Ashford Hospitality Trust and Braemar Hotels & Resorts, which together own more than 100 properties. Those companies reported that their hotel properties had received millions in forgivable loans through a government program meant to help small businesses.
The federal government usually considers a business “small” only when it has fewer than 500 workers, but an exception in the loan program allowed some companies to qualify based on the number of workers they have at each location. That made many chain restaurants eligible for loans. Other exceptions allowed business in certain industries, including mining, to qualify with larger workforces.The federal government usually considers a business “small” only when it has fewer than 500 workers, but an exception in the loan program allowed some companies to qualify based on the number of workers they have at each location. That made many chain restaurants eligible for loans. Other exceptions allowed business in certain industries, including mining, to qualify with larger workforces.
JPMorgan Chase was by far the largest lender to public companies, loaning them $93 million, according to research by Morgan Stanley.JPMorgan Chase was by far the largest lender to public companies, loaning them $93 million, according to research by Morgan Stanley.
Treasury Secretary Steven Mnuchin said his department would be issuing new guidelines on Wednesday that would tighten the rules for which types of companies could get forgivable loans, potentially restricting publicly traded companies from accessing the relief funds.Treasury Secretary Steven Mnuchin said his department would be issuing new guidelines on Wednesday that would tighten the rules for which types of companies could get forgivable loans, potentially restricting publicly traded companies from accessing the relief funds.
Mr. Mnuchin, who said this week that the program was not intended to aid big companies that have access to capital, urged firms that received loans to return the money if they did not meet the eligibility requirements. If they did not, he said, the loan would not be forgiven and those firms could face “severe consequences.”Mr. Mnuchin, who said this week that the program was not intended to aid big companies that have access to capital, urged firms that received loans to return the money if they did not meet the eligibility requirements. If they did not, he said, the loan would not be forgiven and those firms could face “severe consequences.”
Stocks rallied on Wednesday and oil prices reversed some of their tremendous losses as investors regrouped after two days of turmoil in financial markets.Stocks rallied on Wednesday and oil prices reversed some of their tremendous losses as investors regrouped after two days of turmoil in financial markets.
The S&P 500 climbed more than 2 percent, and shares in Europe were also higher. The benchmark for American crude — which had been hammered out of concern that a glut in supply would soon overwhelm storage facilities — bounced back more than 20 percent.The S&P 500 climbed more than 2 percent, and shares in Europe were also higher. The benchmark for American crude — which had been hammered out of concern that a glut in supply would soon overwhelm storage facilities — bounced back more than 20 percent.
Investors also rallied behind a handful of earnings updates that showed companies had not done as poorly in the first three months of the year as some had expected. After Snap, the owner of Snapchat, reported a surge in revenue and user growth, its shares rallied along with those of Twitter and Facebook.Investors also rallied behind a handful of earnings updates that showed companies had not done as poorly in the first three months of the year as some had expected. After Snap, the owner of Snapchat, reported a surge in revenue and user growth, its shares rallied along with those of Twitter and Facebook.
Similarly, shares of some restaurant chains jumped after Chipotle Mexican Grill said on Tuesday that digital and delivery sales driven by the coronavirus crisis soared. Executives at Chipotle also said the company was preparing to reopen stores, as states lift stay-at-home restrictions. Chipotle, which agreed on Tuesday to pay $25 million to resolve criminal charges accusing the fast food company of serving tainted food from 2015 to 2018, was the best performer in the S&P 500 on Wednesday, with a gain of 14 percent.Similarly, shares of some restaurant chains jumped after Chipotle Mexican Grill said on Tuesday that digital and delivery sales driven by the coronavirus crisis soared. Executives at Chipotle also said the company was preparing to reopen stores, as states lift stay-at-home restrictions. Chipotle, which agreed on Tuesday to pay $25 million to resolve criminal charges accusing the fast food company of serving tainted food from 2015 to 2018, was the best performer in the S&P 500 on Wednesday, with a gain of 14 percent.
Investors had other news to consider. The Senate on Tuesday passed a bipartisan $484 billion coronavirus relief package that would replenish a depleted loan program for distressed small businesses and provide funds for hospitals, states and coronavirus testing.Investors had other news to consider. The Senate on Tuesday passed a bipartisan $484 billion coronavirus relief package that would replenish a depleted loan program for distressed small businesses and provide funds for hospitals, states and coronavirus testing.
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.
The gains came after the S&P 500 had fallen 3 percent on Tuesday, its sharpest decline in three weeks in a drop that had suggested a marked shift in sentiment among investors who had otherwise been buying stocks with every sign of progress in the fight against the coronavirus, effort to reopen the economy or indication that Washington would spend more to help. That optimism was briefly shattered on Monday when oil prices collapsed as energy traders panicked about disappearing demand for petroleum and the fact that there were few places left to store all the crude still being pumped.The gains came after the S&P 500 had fallen 3 percent on Tuesday, its sharpest decline in three weeks in a drop that had suggested a marked shift in sentiment among investors who had otherwise been buying stocks with every sign of progress in the fight against the coronavirus, effort to reopen the economy or indication that Washington would spend more to help. That optimism was briefly shattered on Monday when oil prices collapsed as energy traders panicked about disappearing demand for petroleum and the fact that there were few places left to store all the crude still being pumped.
But on Wednesday, some stability returned to the energy market, with the price of West Texas Intermediate crude, the American benchmark, rebounding. Shares of companies in the energy industry also rallied.But on Wednesday, some stability returned to the energy market, with the price of West Texas Intermediate crude, the American benchmark, rebounding. Shares of companies in the energy industry also rallied.
The European Central Bank said Wednesday it would lower its lending standards to allow commercial banks in the eurozone to post junk bonds as collateral for cheap loans, in an effort to prevent a credit crunch.The European Central Bank said Wednesday it would lower its lending standards to allow commercial banks in the eurozone to post junk bonds as collateral for cheap loans, in an effort to prevent a credit crunch.
The extraordinary action by the central bank was a reaction to fears that hundreds of billions of euros in corporate bonds were on the verge of being downgraded to junk status, because the companies that issued the debt may not be able to repay it.The extraordinary action by the central bank was a reaction to fears that hundreds of billions of euros in corporate bonds were on the verge of being downgraded to junk status, because the companies that issued the debt may not be able to repay it.
The mass downgrades could cause severe financial turmoil because, under the old rules, banks that hold the debt could no longer use it as collateral to borrow from the central bank.The mass downgrades could cause severe financial turmoil because, under the old rules, banks that hold the debt could no longer use it as collateral to borrow from the central bank.
Eurozone banks can borrow as much money as they want from the European Central Bank, but must post collateral. Previously the central bank did not accept junk bonds, but it said Wednesday it would allow the debt as collateral as long as it was still rated investment grade on April 7.Eurozone banks can borrow as much money as they want from the European Central Bank, but must post collateral. Previously the central bank did not accept junk bonds, but it said Wednesday it would allow the debt as collateral as long as it was still rated investment grade on April 7.
The central bank said in a statement that an ample supply of collateral “is crucial for banks to provide funding to firms and households during the current challenging times.”The central bank said in a statement that an ample supply of collateral “is crucial for banks to provide funding to firms and households during the current challenging times.”
Economists say rewards could overcome hurdles in gauging the overall infection and mortality rates from a limited population sample.Economists say rewards could overcome hurdles in gauging the overall infection and mortality rates from a limited population sample.
Short of testing everybody — an onerous exercise, even if enough test kits were available — figuring out the infection rate across the population requires a representative sample. The sample will include sick people clamoring to be tested but also people who have little interest in going through the ordeal.Short of testing everybody — an onerous exercise, even if enough test kits were available — figuring out the infection rate across the population requires a representative sample. The sample will include sick people clamoring to be tested but also people who have little interest in going through the ordeal.
Magne Mogstad and Alexander Torgovitsky of the University of Chicago and Andres Santos of U.C.L.A. have devised a technique to provide that rate by figuring out how to coax even people who believe they are healthy into taking a test for the coronavirus: Offer prizes.Magne Mogstad and Alexander Torgovitsky of the University of Chicago and Andres Santos of U.C.L.A. have devised a technique to provide that rate by figuring out how to coax even people who believe they are healthy into taking a test for the coronavirus: Offer prizes.
The method is crafty. Say you split the sample into 11 equal random slices and offer people in each a reward. For simplicity, say the reward for taking the test scales up from nothing in the first group to $200. This method would yield the share of people who would take the test for nothing, the share who would do it for $20 and so forth.The method is crafty. Say you split the sample into 11 equal random slices and offer people in each a reward. For simplicity, say the reward for taking the test scales up from nothing in the first group to $200. This method would yield the share of people who would take the test for nothing, the share who would do it for $20 and so forth.
To figure out who would take the test for $100 but not for $80, you would subtract the share of people who responded to the $80 reward from those who took it for $100. The infection rates for the group could be computed in a similar fashion, to reveal the pattern about how testing changes and the infection rate changes as rewards increase.To figure out who would take the test for $100 but not for $80, you would subtract the share of people who responded to the $80 reward from those who took it for $100. The infection rates for the group could be computed in a similar fashion, to reveal the pattern about how testing changes and the infection rate changes as rewards increase.
Boeing plans to start offering some workers voluntary buyouts on Monday, according to an email sent to employees this week. The email did not say how many workers would be eligible or how many Boeing hoped would take up the offer. Those approved would leave the company in early June with a week of pay for every year worked, up to 26 weeks.Boeing plans to start offering some workers voluntary buyouts on Monday, according to an email sent to employees this week. The email did not say how many workers would be eligible or how many Boeing hoped would take up the offer. Those approved would leave the company in early June with a week of pay for every year worked, up to 26 weeks.
Delta Air Lines announced plans on Wednesday to raise $3 billion, half of it in a private offering and half in the form of a loan. The announcement came hours after the airline reported its first quarterly loss in five years and said it planned to increase its access to cash on hand to $10 billion from $6 billion by the end of June.Delta Air Lines announced plans on Wednesday to raise $3 billion, half of it in a private offering and half in the form of a loan. The announcement came hours after the airline reported its first quarterly loss in five years and said it planned to increase its access to cash on hand to $10 billion from $6 billion by the end of June.
Alcoa said Wednesday that it would stop production at its Intalco smelter in Ferndale, Wash., and lay off employees because of declining demand for its products. The aluminum maker had already cut production at that plant and others, and it said that about 30 percent of its global smelting capacity was now idle.Alcoa said Wednesday that it would stop production at its Intalco smelter in Ferndale, Wash., and lay off employees because of declining demand for its products. The aluminum maker had already cut production at that plant and others, and it said that about 30 percent of its global smelting capacity was now idle.
Kraft Heinz will continue to offer manufacturing employees a $100 bonus for the next two weeks, a company spokesman said on Wednesday. After two employees at a food production plant in Holland, Mich., tested positive for the coronavirus, Kraft Heinz closed the facility on Sunday for a deep cleaning and reopened it on Monday.Kraft Heinz will continue to offer manufacturing employees a $100 bonus for the next two weeks, a company spokesman said on Wednesday. After two employees at a food production plant in Holland, Mich., tested positive for the coronavirus, Kraft Heinz closed the facility on Sunday for a deep cleaning and reopened it on Monday.
Rupert Murdoch’s Fox Corporation, the owner of Fox News and the Fox television network, announced pay cuts to its executive ranks that will affect 700 employees. Mr. Murdoch and his son, Lachlan, the company’s chief executive, will forgo their salaries through September, even though most of their compensation comes from stock awards and bonuses. Executives who report to Mr. Murdoch will see a 50 percent reduction in pay for the same period, and those working at the level of vice president will have their salaries reduced by 15 percent from May through July.Rupert Murdoch’s Fox Corporation, the owner of Fox News and the Fox television network, announced pay cuts to its executive ranks that will affect 700 employees. Mr. Murdoch and his son, Lachlan, the company’s chief executive, will forgo their salaries through September, even though most of their compensation comes from stock awards and bonuses. Executives who report to Mr. Murdoch will see a 50 percent reduction in pay for the same period, and those working at the level of vice president will have their salaries reduced by 15 percent from May through July.
Reporting was contributed by David McCabe, Ben Dooley, Su-Hyun Lee, Eduardo Porter, Jack Ewing, Jeanna Smialek, Isabella Kwai, Stacy Cowley, Noam Scheiber, Sapna Maheshwari, David Yaffe-Bellany, Niraj Chokshi, Rick Gladstone, Keith Bradsher, Edmund Lee, Clifford Krauss, Vindu Goel, Kate Conger, Neal E. Boudette, Jack Ewing, Mohammed Hadi, Alan Rappeport, Carlos Tejada, Mike Ives, Katie Robertson and Kevin Granville.Reporting was contributed by David McCabe, Ben Dooley, Su-Hyun Lee, Eduardo Porter, Jack Ewing, Jeanna Smialek, Isabella Kwai, Stacy Cowley, Noam Scheiber, Sapna Maheshwari, David Yaffe-Bellany, Niraj Chokshi, Rick Gladstone, Keith Bradsher, Edmund Lee, Clifford Krauss, Vindu Goel, Kate Conger, Neal E. Boudette, Jack Ewing, Mohammed Hadi, Alan Rappeport, Carlos Tejada, Mike Ives, Katie Robertson and Kevin Granville.