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Stock Markets Rise as Investors Await Unemployment Data: Live Updates Stock Markets Rise as Investors Await Unemployment Data: Live Updates
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U.S. stock futures followed European markets higher on Thursday as investors awaited further data exposing the toll of the coronavirus outbreak on the world economy.U.S. stock futures followed European markets higher on Thursday as investors awaited further data exposing the toll of the coronavirus outbreak on the world economy.
Futures for the S&P 500 were up more than 1 percent. European markets were higher after a mostly down day in Asia.Futures for the S&P 500 were up more than 1 percent. European markets were higher after a mostly down day in Asia.
Washington is expected on Thursday to post the latest figures on weekly unemployment filings, which will add to the already 30 million claims by American workers in the previous six weeks. But the numbers are expected to show that claims are continuing to decline since a peak of 6.9 million claims in late March.Washington is expected on Thursday to post the latest figures on weekly unemployment filings, which will add to the already 30 million claims by American workers in the previous six weeks. But the numbers are expected to show that claims are continuing to decline since a peak of 6.9 million claims in late March.
While an ebb in new cases in some of the hardest-hit places has given investors some reason to cheer, they also face the prospect of a surge in new infections in other places, particularly as lockdown efforts ease.While an ebb in new cases in some of the hardest-hit places has given investors some reason to cheer, they also face the prospect of a surge in new infections in other places, particularly as lockdown efforts ease.
Gloomy news came from London on Thursday, when the Bank of England projected that the British economy would contract 30 percent in the April-June quarter, and 14 percent for the year.Gloomy news came from London on Thursday, when the Bank of England projected that the British economy would contract 30 percent in the April-June quarter, and 14 percent for the year.
Highlighting the worries, prices for longer-term U.S. Treasury bonds, typically seen as a place to park money during times of turbulence, were higher in early Thursday trading. Oil prices fell, giving the markets another cautionary note.Highlighting the worries, prices for longer-term U.S. Treasury bonds, typically seen as a place to park money during times of turbulence, were higher in early Thursday trading. Oil prices fell, giving the markets another cautionary note.
China’s exports to the rest of the world unexpectedly jumped in April. While that would seem to be a positive development in a time when the coronavirus has curbed demand for just about everything, the good news may be fleeting.
Chinese customs officials said on Thursday that exports in dollar terms rose 3.5 percent when compared with April 2019. It was the first such increase since the outbreak emerged in Wuhan in December and spread across the world. The results surprised economists surveyed by Bloomberg and Reuters who had predicted another drop.
China’s economy, which shrank in the first quarter for the first time in decades, is expected to continue to struggle in part because the pandemic has closed stores in many other countries that would have sold Chinese-made goods.
A surge in exports would normally be seen as positive news, but economists chalked up the increase to a return in Chinese production — and local companies fulfilling pre-existing orders — rather than a run in new business. China’s vast trade machine will face tough challenges as the world recovers in the months to come, amid signs that the long-simmering trade war between the United States and China may be heating up again.
More predictably, imports fell 14.2 percent in April compared with a year earlier, as China’s lockdown efforts and slow restart cut into demand.
The Bank of England, Britain’s central bank, said on Thursday that the economy in the April-June quarter would be nearly 30 percent smaller than at the end of 2019, as consumer spending would fall nearly 30 percent, while business revenue, investment and trade all contracted sharply.The Bank of England, Britain’s central bank, said on Thursday that the economy in the April-June quarter would be nearly 30 percent smaller than at the end of 2019, as consumer spending would fall nearly 30 percent, while business revenue, investment and trade all contracted sharply.
The bank said that the full-year economy for 2020 would most likely fall 14 percent, compared with a 1 percent increase in 2019.The bank said that the full-year economy for 2020 would most likely fall 14 percent, compared with a 1 percent increase in 2019.
But the bank, which also announced it would hold interest rates steady at 0.1 percent, said it expected economic activity to pick up “materially in the latter part of 2020 and into 2021” after the lockdowns in Britain and elsewhere are eased and people are able to return to work. It forecast a 15 percent jump in economic growth for 2021.But the bank, which also announced it would hold interest rates steady at 0.1 percent, said it expected economic activity to pick up “materially in the latter part of 2020 and into 2021” after the lockdowns in Britain and elsewhere are eased and people are able to return to work. It forecast a 15 percent jump in economic growth for 2021.
In its report, the bank said it had tested the financial strength of major British banks and found that they were strong enough to continue lending in the difficult economic environment.In its report, the bank said it had tested the financial strength of major British banks and found that they were strong enough to continue lending in the difficult economic environment.
The bank, which described its report as a “scenario” rather than a formal forecast, acknowledged that the outlook for both the British and global economies was unusually uncertain and depended on the evolution of the pandemic and “how governments, households and businesses respond.” On Wednesday, the European Commission projected a 7.4 percent collapse in the European Union economy for 2020.The bank, which described its report as a “scenario” rather than a formal forecast, acknowledged that the outlook for both the British and global economies was unusually uncertain and depended on the evolution of the pandemic and “how governments, households and businesses respond.” On Wednesday, the European Commission projected a 7.4 percent collapse in the European Union economy for 2020.
The global luxury goods market is facing its worst year in memory, with national lockdowns, the annihilation of the tourism industry and a subdued consumer mood leading to a spending collapse across all markets.
According to a new report by consulting firm Bain & Company, the market for personal luxury items like handbags, jewelry and fashion shrank by 25 percent in the first quarter of 2020, a decline that is likely to accelerate significantly in the second quarter. A market contraction of up to 35 percent is predicted for the full year.
The strongest impact and slowest recovery will be in Europe and the Americas, the report said. Executives are now pinning their hopes on Chinese shoppers, who were responsible for one-third of global luxury sales last year, to lead a recovery in spending. (Both LVMH and Kering reported an early sales rebound for some brands in mainland China in recent updates.)
“There will be a recovery for the luxury market but the industry will be profoundly transformed,” said Claudia D’Arpizio, a Bain & Company partner and lead author of the study. “The impact of coronavirus on the industry will be twice that of the 2008 financial crisis.”
China’s exports to the rest of the world unexpectedly jumped in April. While that would seem to be a positive development in a time when the coronavirus has curbed demand for just about everything, the good news may be fleeting.
Chinese customs officials said on Thursday that exports in dollar terms rose 3.5 percent when compared with April 2019. It was the first such increase since the outbreak emerged in Wuhan in December and spread across the world. The results surprised economists surveyed by Bloomberg and Reuters who had predicted another drop.
China’s economy, which shrank in the first quarter for the first time in decades, is expected to continue to struggle in part because the pandemic has closed stores in many other countries that would have sold Chinese-made goods.
A surge in exports would normally be seen as positive news, but economists chalked up the increase to a return in Chinese production — and local companies fulfilling pre-existing orders — rather than a run in new business. China’s vast trade machine will face tough challenges as the world recovers in the months to come, amid signs that the long-simmering trade war between the United States and China may be heating up again.
More predictably, imports fell 14.2 percent in April compared with a year earlier, as China’s lockdown efforts and slow restart cut into demand.
The surge in demand for processed foods like canned soups and vegetables during the pandemic has rippled through the food industry’s supply chain. Makers of metal containers have had to speed up production to keep pace.The surge in demand for processed foods like canned soups and vegetables during the pandemic has rippled through the food industry’s supply chain. Makers of metal containers have had to speed up production to keep pace.
Silgan Holdings, a maker of metal and plastic containers for consumer goods with more than 50 plants across the country, reported record first-quarter earnings, in part because of a jump in demand for cans.Silgan Holdings, a maker of metal and plastic containers for consumer goods with more than 50 plants across the country, reported record first-quarter earnings, in part because of a jump in demand for cans.
Another big maker of food and beverage cans, Crown Holdings, has 81 open production jobs at its 25 U.S. plants, including some for a third production line being set up at a factory in Nichols, N.Y. “We can sell every can we can make,” said Thomas Fischer, Crown’s vice president for investor relations and corporate affairs.Another big maker of food and beverage cans, Crown Holdings, has 81 open production jobs at its 25 U.S. plants, including some for a third production line being set up at a factory in Nichols, N.Y. “We can sell every can we can make,” said Thomas Fischer, Crown’s vice president for investor relations and corporate affairs.
Acquiring metal has not been a problem. Despite the tariffs the Trump administration placed on imported steel and other metals, steel prices have eased this year. And recycling provides can producers with a reliable source — about 71 percent of steel food containers are recycled, according to the Can Manufacturers Institute, a trade group.Acquiring metal has not been a problem. Despite the tariffs the Trump administration placed on imported steel and other metals, steel prices have eased this year. And recycling provides can producers with a reliable source — about 71 percent of steel food containers are recycled, according to the Can Manufacturers Institute, a trade group.
The food business is normally steady. Sales of soups and other canned foods have been declining slowly for years, as Americans gravitated toward fresh produce and other options often seen as more nutritious.The food business is normally steady. Sales of soups and other canned foods have been declining slowly for years, as Americans gravitated toward fresh produce and other options often seen as more nutritious.
But the surge in sales of packaged foods, at a time when other transportation companies and vegetable producers have been knocked off stride by the virus, has forced manufacturers into a state of high alert.But the surge in sales of packaged foods, at a time when other transportation companies and vegetable producers have been knocked off stride by the virus, has forced manufacturers into a state of high alert.
“Almost all our plants are running at capacity,” said John Church, chief supply chain officer for General Mills. The company has 25 plants in North America.“Almost all our plants are running at capacity,” said John Church, chief supply chain officer for General Mills. The company has 25 plants in North America.
The North American plants of the three big U.S. automakers have been closed since mid-March. Mostly.The North American plants of the three big U.S. automakers have been closed since mid-March. Mostly.
A handful of General Motors workers have labored on — including several dozen at a plant in Bedford, Ind., that makes chassis for Chevrolet Corvettes.A handful of General Motors workers have labored on — including several dozen at a plant in Bedford, Ind., that makes chassis for Chevrolet Corvettes.
A G.M. spokesman said the factory’s continuing operation was aimed at reducing a chassis shortage and helping resume Corvette production more quickly once the company reopens an assembly plant in Bowling Green, Ky.A G.M. spokesman said the factory’s continuing operation was aimed at reducing a chassis shortage and helping resume Corvette production more quickly once the company reopens an assembly plant in Bowling Green, Ky.
The spokesman said that the Bedford plant was running three shifts a day — with about 20 people per shift, down from about 250 hourly workers normally — and that the workers had volunteered for the assignment, at their usual wage.The spokesman said that the Bedford plant was running three shifts a day — with about 20 people per shift, down from about 250 hourly workers normally — and that the workers had volunteered for the assignment, at their usual wage.
The company said Wednesday that it planned to “restart the majority of manufacturing operations” in North America on May 18.The company said Wednesday that it planned to “restart the majority of manufacturing operations” in North America on May 18.
The G.M. spokesman said that aside from the Bedford plant, the company had continued work at a Texas plant to finish building a sport utility vehicle before the plant changed over to a new model, and in Lockport, N.Y., to make replacement parts for existing vehicles.The G.M. spokesman said that aside from the Bedford plant, the company had continued work at a Texas plant to finish building a sport utility vehicle before the plant changed over to a new model, and in Lockport, N.Y., to make replacement parts for existing vehicles.
Brian Rothenberg, a United Automobile Workers spokesman, said the union had cooperated with such efforts if the return to work was voluntary and adequate safety measures were in place.Brian Rothenberg, a United Automobile Workers spokesman, said the union had cooperated with such efforts if the return to work was voluntary and adequate safety measures were in place.
Strict measures to limit the spread of the coronavirus in Argentina have kept most of its citizens safe, but have deeply undercut its economy, putting the country on a path toward what could be the ninth debt default in its 200-year history.Strict measures to limit the spread of the coronavirus in Argentina have kept most of its citizens safe, but have deeply undercut its economy, putting the country on a path toward what could be the ninth debt default in its 200-year history.
Argentina stopped making the scheduled payments on its $65 billion of debt in April, and entered a 30-day grace period that will run out on May 22. If an agreement with creditors cannot be reached by then, Argentina will officially be in default, compounding economic problems that now include 50 percent inflation and a 30 percent poverty rate.Argentina stopped making the scheduled payments on its $65 billion of debt in April, and entered a 30-day grace period that will run out on May 22. If an agreement with creditors cannot be reached by then, Argentina will officially be in default, compounding economic problems that now include 50 percent inflation and a 30 percent poverty rate.
Argentina’s economy minister, Martin Guzman, has sought to use the grace period to pitch a debt-reduction proposal to creditors including big institutional investors that buy bonds, like BlackRock, Fidelity and Pimco. The proposal includes suspending all debt payments for three years, then reducing the principal amount by about $3.6 billion and reducing the interest payments by applying lower rates.Argentina’s economy minister, Martin Guzman, has sought to use the grace period to pitch a debt-reduction proposal to creditors including big institutional investors that buy bonds, like BlackRock, Fidelity and Pimco. The proposal includes suspending all debt payments for three years, then reducing the principal amount by about $3.6 billion and reducing the interest payments by applying lower rates.
The offer will be withdrawn if it has not received traction by Friday. So far, Argentina’s creditors have made just one firm counterproposal, suggesting big differences between the parties.The offer will be withdrawn if it has not received traction by Friday. So far, Argentina’s creditors have made just one firm counterproposal, suggesting big differences between the parties.
Argentina has been under quarantine restrictions since mid-March, and has closed its borders and banned the sale of domestic and international commercial airline tickets until Sept. 1. The measures appear to have limited the spread of the coronavirus: Argentina has reported about 250 deaths out of a total population of about 45 million.Argentina has been under quarantine restrictions since mid-March, and has closed its borders and banned the sale of domestic and international commercial airline tickets until Sept. 1. The measures appear to have limited the spread of the coronavirus: Argentina has reported about 250 deaths out of a total population of about 45 million.
Religious organizations around the United States are looking to a troubled federal loan program for help as donations dry up.Religious organizations around the United States are looking to a troubled federal loan program for help as donations dry up.
Around 9,000 Catholic parishes have received Paycheck Protection Program loans administered by the Small Business Administration, said Patrick Markey, the executive director of the Diocesan Fiscal Management Conference, which works with dioceses on financial issues.Around 9,000 Catholic parishes have received Paycheck Protection Program loans administered by the Small Business Administration, said Patrick Markey, the executive director of the Diocesan Fiscal Management Conference, which works with dioceses on financial issues.
“Everybody’s trying to keep their people on the payroll and hoping that with the P.P.P. they can do that until they start meeting again, and then no one gets let go,” he said.“Everybody’s trying to keep their people on the payroll and hoping that with the P.P.P. they can do that until they start meeting again, and then no one gets let go,” he said.
A survey by the Jewish Federation of North America found that at least 533 loans had been distributed to Jewish organizations with a total value of $276 million. The median value of the loans was $246,000, said Rebecca Dinar, a spokeswoman for the group.A survey by the Jewish Federation of North America found that at least 533 loans had been distributed to Jewish organizations with a total value of $276 million. The median value of the loans was $246,000, said Rebecca Dinar, a spokeswoman for the group.
The loans are meant to stabilize small businesses and are forgivable by the government if the majority of the funds go toward payroll. The government distributed $342.3 billion in loans in the first round of the program, which ended in mid-April. It has distributed $183.5 billion in loans in a second round as of Wednesday evening.The loans are meant to stabilize small businesses and are forgivable by the government if the majority of the funds go toward payroll. The government distributed $342.3 billion in loans in the first round of the program, which ended in mid-April. It has distributed $183.5 billion in loans in a second round as of Wednesday evening.
But the program has been plagued by complaints that big businesses have received the money ahead of smaller establishments, like independent restaurants and retailers. The program has attracted ample interest from nonprofit organizations like religious congregations worried about a downturn in donations and other sources of revenue. That includes some private schools with large endowments that have kept the loans in the face of backlash from the administration and their own alumni.
It has also attracted ample interest from nonprofit organizations like religious congregations worried about a downturn in donations and other sources of revenue. That includes some private schools with large endowments that have kept the loans in the face of backlash from the administration and their own alumni. Kohl’s said Thursday it would reopen stores in 10 more states on Monday, after opening in four states this week. Among the safety steps the department store will take: a special shopping period for seniors, pregnant women and people with underlying health conditions every Monday, Wednesday and Friday from 11 a.m. to noon.
Lyft on Wednesday gave investors their first detailed look at how the coronavirus had affected its ride-hailing service. Revenue fell 6 percent from the previous quarter, to $955.7 million. Lyft lost $398 million, up 10 percent from its loss in the previous quarter. More people and businesses are using electronic payments and other alternatives to the traditional financial system. PayPal added an average of 250,000 new active accounts every day in April, bringing the total new accounts for the month up 135 percent from March, when growth was also higher than normal. And at Square, the number of new people using its Square Cash service as a bank account was four times higher in April than in March.
BuzzFeed’s chief executive and founder, Jonah Peretti, told staff Wednesday that 68 noneditorial employees, from the business, studio and administration teams, would be furloughed for three months, with a goal of keeping losses this year to under $20 million, according to an email obtained by The New York Times. Mr. Peretti also said cuts to the news division would be necessary and that he would begin discussions with the union about them. BuzzFeed has already instituted staff-wide graduated pay cuts for those making more than $40,000 a year. Reporting was contributed by Patricia Cohen, Tiffany Hsu, Neal E. Boudette, Kate Conger, Elizabeth Paton, Marc Tracy, Noam Scheiber, Stanley Reed, David McCabe, Mary Williams Walsh, Carlos Tejada, Daniel Victor and Kevin Granville.
Reporting was contributed by Neal E. Boudette, Kate Conger, Marc Tracy, Noam Scheiber, Stanley Reed, David McCabe, Mary Williams Walsh, Carlos Tejada, Daniel Victor and Kevin Granville.