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| Stocks Climb After Fed Details Bond-Buying Plan | Stocks Climb After Fed Details Bond-Buying Plan |
| (about 7 hours later) | |
| This briefing is no longer being updated. Follow live developments here. | This briefing is no longer being updated. Follow live developments here. |
| The Federal Reserve said on Monday that it would begin to buy debt issued by individual corporations based on a broad index of corporate bonds in the United States, a new step in the central bank’s efforts to keep credit flowing freely amid the coronavirus pandemic. | The Federal Reserve said on Monday that it would begin to buy debt issued by individual corporations based on a broad index of corporate bonds in the United States, a new step in the central bank’s efforts to keep credit flowing freely amid the coronavirus pandemic. |
| Officials voted unanimously to expand the so-called Secondary Market Corporate Credit Facility, which it unveiled in May. The program is meant to allow companies to continue borrowing money at a time of high stress on the financial system following the steep economic decline from the pandemic. Originally, the Fed did that by purchasing exchange traded funds, which trade like stocks but have broad exposure to corporate bonds. | Officials voted unanimously to expand the so-called Secondary Market Corporate Credit Facility, which it unveiled in May. The program is meant to allow companies to continue borrowing money at a time of high stress on the financial system following the steep economic decline from the pandemic. Originally, the Fed did that by purchasing exchange traded funds, which trade like stocks but have broad exposure to corporate bonds. |
| Under the expansion approved on Monday, which Fed officials had foreshadowed in their creation of the program, the Fed will now “begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers,” officials said in a news release. The purchases, they added, will “create a corporate bond portfolio that is based on a broad, diversified market index of U.S. corporate bonds.” Fed officials had not previously signaled that the individual corporate bond purchases would follow an index approach. | Under the expansion approved on Monday, which Fed officials had foreshadowed in their creation of the program, the Fed will now “begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers,” officials said in a news release. The purchases, they added, will “create a corporate bond portfolio that is based on a broad, diversified market index of U.S. corporate bonds.” Fed officials had not previously signaled that the individual corporate bond purchases would follow an index approach. |
| Even before buying a single bond, the Fed managed to achieve its main goal with its primary and secondary bond-buying programs: restarting the frozen corporate debt market. It first announced that it would set up the programs on March 23, and the mere promise of a backstop revived the market, allowing companies to issue debt to raise needed cash amid the coronavirus economic downturn. | Even before buying a single bond, the Fed managed to achieve its main goal with its primary and secondary bond-buying programs: restarting the frozen corporate debt market. It first announced that it would set up the programs on March 23, and the mere promise of a backstop revived the market, allowing companies to issue debt to raise needed cash amid the coronavirus economic downturn. |
| Once they are fully up and running, the Fed’s programs will buy both newly issued debt on the primary market and debt that is already being traded on a secondary market. The programs were expanded on April 9 to include some junk bonds. | Once they are fully up and running, the Fed’s programs will buy both newly issued debt on the primary market and debt that is already being traded on a secondary market. The programs were expanded on April 9 to include some junk bonds. |
| A rout on Wall Street turned into a rally on Monday, with stocks crossing into positive territory for the day after the Federal Reserve said it would soon start to buy debt issued by individual companies in a new effort to keep credit flowing. | A rout on Wall Street turned into a rally on Monday, with stocks crossing into positive territory for the day after the Federal Reserve said it would soon start to buy debt issued by individual companies in a new effort to keep credit flowing. |
| The S&P 500 ended nearly 1 percent higher after having spent most of the day in negative territory. Though stocks had already recouped the worst of their losses — the index fell as much 2.5 percent earlier — shares jumped after the Fed’s new plan was released. | The S&P 500 ended nearly 1 percent higher after having spent most of the day in negative territory. Though stocks had already recouped the worst of their losses — the index fell as much 2.5 percent earlier — shares jumped after the Fed’s new plan was released. |
| The Fed’s earlier intervention in financial markets, aimed at smoothing out the functioning of credit markets, was credited by many investors for driving a 45 percent rally in stocks from their March lows. The expansion of its program to include individual companies is meant to ensure businesses have access to funding during the economic downturn. | The Fed’s earlier intervention in financial markets, aimed at smoothing out the functioning of credit markets, was credited by many investors for driving a 45 percent rally in stocks from their March lows. The expansion of its program to include individual companies is meant to ensure businesses have access to funding during the economic downturn. |
| The turnaround on Monday came as sentiment in financial markets had grown somewhat unsteady after the run-up from those March lows. Stocks plunged Thursday as warnings that the economic recovery would be slower than hoped for, and the prospect of a second wave of coronavirus infections, seemed to shift the focus back to risks. | The turnaround on Monday came as sentiment in financial markets had grown somewhat unsteady after the run-up from those March lows. Stocks plunged Thursday as warnings that the economic recovery would be slower than hoped for, and the prospect of a second wave of coronavirus infections, seemed to shift the focus back to risks. |
| On Monday, investors were still contending with bad news. In China, some monthly economic indicators were weaker than expected, and officials are battling a new spate of coronavirus cases. | On Monday, investors were still contending with bad news. In China, some monthly economic indicators were weaker than expected, and officials are battling a new spate of coronavirus cases. |
| In the United States, Arizona, Florida and Texas have also reported higher infection numbers, and Gov. Andrew M. Cuomo of New York said that the state might have to reinstate lockdown conditions. | In the United States, Arizona, Florida and Texas have also reported higher infection numbers, and Gov. Andrew M. Cuomo of New York said that the state might have to reinstate lockdown conditions. |
| After being criticized for not doing enough to make passengers wear masks, the nation’s biggest airlines said on Monday that they would get tougher on people who refused to cover their faces. | After being criticized for not doing enough to make passengers wear masks, the nation’s biggest airlines said on Monday that they would get tougher on people who refused to cover their faces. |
| Airlines for America, a trade association, said that its members would take masks more seriously, including by not letting people without face coverings get on planes. But many big airlines have said that before, and passengers concerned about their health have pointed out that enforcement on board has often been lax. | Airlines for America, a trade association, said that its members would take masks more seriously, including by not letting people without face coverings get on planes. But many big airlines have said that before, and passengers concerned about their health have pointed out that enforcement on board has often been lax. |
| “U.S. airlines are very serious about requiring face coverings on their flights,” Nicholas Calio, the chief executive of Airlines for America, said in a statement. “Face coverings are one of several public health measures recommended by the C.D.C. as an important layer of protection for passengers and customer-facing employees.” | “U.S. airlines are very serious about requiring face coverings on their flights,” Nicholas Calio, the chief executive of Airlines for America, said in a statement. “Face coverings are one of several public health measures recommended by the C.D.C. as an important layer of protection for passengers and customer-facing employees.” |
| According to the association, all of four of the largest U.S. airlines — Southwest Airlines, American Airlines, Delta Air Lines and United Airlines — have agreed to communicate their mask policies to customers before flying, reiterate the requirements in onboard announcements and enforce them when customers refuse to comply. Southwest issued a separate statement saying that it would “deny boarding” to passengers that refused to comply with its face covering requirement. | According to the association, all of four of the largest U.S. airlines — Southwest Airlines, American Airlines, Delta Air Lines and United Airlines — have agreed to communicate their mask policies to customers before flying, reiterate the requirements in onboard announcements and enforce them when customers refuse to comply. Southwest issued a separate statement saying that it would “deny boarding” to passengers that refused to comply with its face covering requirement. |
| United said that, starting Thursday, any passenger who openly disregarded its rules could face a temporary travel ban on future flights. The airline, like others, grants exceptions for those with a medical condition or disability that prevents them from wearing a mask, as well as those who cannot put on or remove a mask themselves and small children. Customers may remove their masks to eat and drink. | United said that, starting Thursday, any passenger who openly disregarded its rules could face a temporary travel ban on future flights. The airline, like others, grants exceptions for those with a medical condition or disability that prevents them from wearing a mask, as well as those who cannot put on or remove a mask themselves and small children. Customers may remove their masks to eat and drink. |
| The airline association said each airline would establish its own punishment for passengers who refuse to comply, “up to and including suspension of flying privileges.” | The airline association said each airline would establish its own punishment for passengers who refuse to comply, “up to and including suspension of flying privileges.” |
| Airlines have so far been reluctant to publicly establish clear consequences for failure to wear face coverings, and many passengers have chided the companies on social media with photos of planes filled with people not wearing masks and sitting close to each other. | Airlines have so far been reluctant to publicly establish clear consequences for failure to wear face coverings, and many passengers have chided the companies on social media with photos of planes filled with people not wearing masks and sitting close to each other. |
| Facebook has been on a spending spree. It announced this month that it had invested in Gojek, a “super app” in Southeast Asia, which followed a $5.7 billion investment in Reliance Jio, a telecom giant in India. | Facebook has been on a spending spree. It announced this month that it had invested in Gojek, a “super app” in Southeast Asia, which followed a $5.7 billion investment in Reliance Jio, a telecom giant in India. |
| The social media company also shelled out $400 million last month to buy an animated GIF company and is spending millions of dollars to build a nearly 23,000-mile undersea fiber-optic cable encircling Africa. And on Thursday, Facebook confirmed that it was developing a venture capital fund to invest in promising start-ups. | The social media company also shelled out $400 million last month to buy an animated GIF company and is spending millions of dollars to build a nearly 23,000-mile undersea fiber-optic cable encircling Africa. And on Thursday, Facebook confirmed that it was developing a venture capital fund to invest in promising start-ups. |
| Other technology giants are engaging in similar behavior. Apple has bought at least four companies this year and released a new iPhone. Microsoft has purchased three cloud computing businesses. Amazon is in talks to acquire an autonomous vehicle start-up, has leased more airplanes for delivery and has hired an additional 175,000 people since March. Google has unveiled new messaging and video features. | Other technology giants are engaging in similar behavior. Apple has bought at least four companies this year and released a new iPhone. Microsoft has purchased three cloud computing businesses. Amazon is in talks to acquire an autonomous vehicle start-up, has leased more airplanes for delivery and has hired an additional 175,000 people since March. Google has unveiled new messaging and video features. |
| Even with the global economy reeling from a pandemic-induced recession and dozens of businesses filing for bankruptcy, tech’s largest companies — still wildly profitable and flush with billions of dollars from years of corporate dominance — are deliberately laying the groundwork for a future where they will be bigger and more powerful than ever. | Even with the global economy reeling from a pandemic-induced recession and dozens of businesses filing for bankruptcy, tech’s largest companies — still wildly profitable and flush with billions of dollars from years of corporate dominance — are deliberately laying the groundwork for a future where they will be bigger and more powerful than ever. |
| The Academy of Motion Picture Arts and Sciences said on Monday that it would push back the next Oscars ceremony to April 25 from Feb. 28, citing the coronavirus pandemic. | The Academy of Motion Picture Arts and Sciences said on Monday that it would push back the next Oscars ceremony to April 25 from Feb. 28, citing the coronavirus pandemic. |
| The eligibility window for films will extend to Feb. 28 instead of Dec. 31. The organization did not say whether the April 25 show would involve the usual red carpet and live audience. | The eligibility window for films will extend to Feb. 28 instead of Dec. 31. The organization did not say whether the April 25 show would involve the usual red carpet and live audience. |
| “Our hope, in extending the eligibility period and our awards date, is to provide the flexibility filmmakers need to finish and release their films without being penalized for something beyond anyone’s control,” David Rubin, the academy’s president, and Dawn Hudson, the organization’s chief executive, said in a statement. | “Our hope, in extending the eligibility period and our awards date, is to provide the flexibility filmmakers need to finish and release their films without being penalized for something beyond anyone’s control,” David Rubin, the academy’s president, and Dawn Hudson, the organization’s chief executive, said in a statement. |
| The academy said that its Governors Awards, at which lifetime achievement Oscars are handed out, would not take place this fall as planned. The academy also pushed back the opening for its long-delayed museum in Los Angeles; it will now open on April 30. | The academy said that its Governors Awards, at which lifetime achievement Oscars are handed out, would not take place this fall as planned. The academy also pushed back the opening for its long-delayed museum in Los Angeles; it will now open on April 30. |
| Updated June 24, 2020 | |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| 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. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| 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. | 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. |
| 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.) |
| 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. |
| For its part, the Academy of Television Arts and Sciences said on Monday that its Creative Arts Emmys, at which the majority of Emmys are awarded annually, would be held virtually in September. The main Emmys telecast remains scheduled for Sept. 20 on ABC. The television academy said that discussions were underway “regarding the format.” | For its part, the Academy of Television Arts and Sciences said on Monday that its Creative Arts Emmys, at which the majority of Emmys are awarded annually, would be held virtually in September. The main Emmys telecast remains scheduled for Sept. 20 on ABC. The television academy said that discussions were underway “regarding the format.” |
| The fitness chain 24 Hour Fitness filed for Chapter 11 bankruptcy protection on Monday, after the coronavirus pandemic forced its clubs to shut for nearly two months. | The fitness chain 24 Hour Fitness filed for Chapter 11 bankruptcy protection on Monday, after the coronavirus pandemic forced its clubs to shut for nearly two months. |
| “Put simply, the Covid-19 pandemic upended the debtors’ operating model, leaving the debtors without a source of revenue to fund their operations,” the filing stated. | “Put simply, the Covid-19 pandemic upended the debtors’ operating model, leaving the debtors without a source of revenue to fund their operations,” the filing stated. |
| The national gym chain said in its bankruptcy filing that it had permanently closed 100 locations across 14 states. But the chain is expected to re-emerge: It has secured $250 million in funding to reopen some of its clubs, and it expects a majority of its remaining 300 locations to be open by the end of June. | The national gym chain said in its bankruptcy filing that it had permanently closed 100 locations across 14 states. But the chain is expected to re-emerge: It has secured $250 million in funding to reopen some of its clubs, and it expects a majority of its remaining 300 locations to be open by the end of June. |
| The pandemic has been particularly devastating to the gym industry. Also on Monday, Town Sports International said that it was considering bankruptcy because of revenue losses as a result of the shutdown. The company, which owns about 200 gyms including the New York Sports Club and Boston Sports Club chains, said in a regulatory filing that the “scope and duration of the interruption to our operations has substantially reduced our cash flow.” | The pandemic has been particularly devastating to the gym industry. Also on Monday, Town Sports International said that it was considering bankruptcy because of revenue losses as a result of the shutdown. The company, which owns about 200 gyms including the New York Sports Club and Boston Sports Club chains, said in a regulatory filing that the “scope and duration of the interruption to our operations has substantially reduced our cash flow.” |
| Facing backlash for keeping the recipients of a $660 billion small-business bailout secret, Treasury Secretary Steven Mnuchin on Monday said that he would look for a way to allow for more oversight of where the government-backed loan money was going. | Facing backlash for keeping the recipients of a $660 billion small-business bailout secret, Treasury Secretary Steven Mnuchin on Monday said that he would look for a way to allow for more oversight of where the government-backed loan money was going. |
| The apparent reversal comes days after Mr. Mnuchin told a Senate committee that information about who was receiving the loan money was “proprietary” and not subject to public release. The lack of transparency threatened to derail future economic relief efforts and was quickly becoming a political problem for the White House, as Democrats and Republicans sought additional information about the loans offered through Paycheck Protection Program. | The apparent reversal comes days after Mr. Mnuchin told a Senate committee that information about who was receiving the loan money was “proprietary” and not subject to public release. The lack of transparency threatened to derail future economic relief efforts and was quickly becoming a political problem for the White House, as Democrats and Republicans sought additional information about the loans offered through Paycheck Protection Program. |
| “I will be having discussions with the Senate Small Business Committee and others on a bipartisan basis to strike the appropriate balance for proper oversight of P.P.P. loans and appropriate protection of small business information,” Mr. Mnuchin said on Twitter on Monday. | “I will be having discussions with the Senate Small Business Committee and others on a bipartisan basis to strike the appropriate balance for proper oversight of P.P.P. loans and appropriate protection of small business information,” Mr. Mnuchin said on Twitter on Monday. |
| Not long after, House Democrats announced that they had started an investigation into how the administration had allocated money under the program. The seven Democrats on a special oversight committee created to scrutinize how the administration is spending pandemic relief money sent letters to the Treasury Department and the Small Business Administration, as well as eight large banks, asking for documents and information about how the funds were distributed and the businesses that received the funds. | Not long after, House Democrats announced that they had started an investigation into how the administration had allocated money under the program. The seven Democrats on a special oversight committee created to scrutinize how the administration is spending pandemic relief money sent letters to the Treasury Department and the Small Business Administration, as well as eight large banks, asking for documents and information about how the funds were distributed and the businesses that received the funds. |
| “The administration should release the names of all P.P.P. borrowers — as the S.B.A. routinely does for similar loan programs,” the lawmakers wrote in letters to eight banks, including JP Morgan Chase, Bank of America, Wells Fargo and Citibank. “Contrary to Secretary Mnuchin’s recent testimony, there is nothing ‘proprietary’ or ‘confidential’ about a business receiving millions of dollars appropriated by Congress, and taxpayers deserve to know how their money is being spent.” | “The administration should release the names of all P.P.P. borrowers — as the S.B.A. routinely does for similar loan programs,” the lawmakers wrote in letters to eight banks, including JP Morgan Chase, Bank of America, Wells Fargo and Citibank. “Contrary to Secretary Mnuchin’s recent testimony, there is nothing ‘proprietary’ or ‘confidential’ about a business receiving millions of dollars appropriated by Congress, and taxpayers deserve to know how their money is being spent.” |
| They said they were concerned that a “two-tiered system” for processing applications “may have diverted P.P.P. funds intended for vulnerable small business owners in underserved and rural markets.” | They said they were concerned that a “two-tiered system” for processing applications “may have diverted P.P.P. funds intended for vulnerable small business owners in underserved and rural markets.” |
| United Airlines said Monday it had secured a $5 billion loan backed by its MileagePlus frequent flier program, part of its plans to have up to $17 billion in cash by the end of September. | United Airlines said Monday it had secured a $5 billion loan backed by its MileagePlus frequent flier program, part of its plans to have up to $17 billion in cash by the end of September. |
| That amount, about three times the airline’s typical target, would be enough to help United survive a second or third wave of coronavirus shutdowns and sharp drops in ticket revenue. The $17 billion figure includes a $4.5 billion federal loan that United has not yet committed to. | That amount, about three times the airline’s typical target, would be enough to help United survive a second or third wave of coronavirus shutdowns and sharp drops in ticket revenue. The $17 billion figure includes a $4.5 billion federal loan that United has not yet committed to. |
| So far, American Airlines is the only large U.S. airline to confirm that it would borrow money from the federal government under a provision of a $2.2 trillion stimulus measure Congress approved this year. American said on Friday that it planned to borrow $4.75 billion under that program, a loan that would be backed by its frequent flier program. Separately, all the large airlines have accepted money from a $25 billion program Congress created to help the industry meet its payroll through September. | So far, American Airlines is the only large U.S. airline to confirm that it would borrow money from the federal government under a provision of a $2.2 trillion stimulus measure Congress approved this year. American said on Friday that it planned to borrow $4.75 billion under that program, a loan that would be backed by its frequent flier program. Separately, all the large airlines have accepted money from a $25 billion program Congress created to help the industry meet its payroll through September. |
| Loyalty programs have become a significant part of the airline business. They have helped companies protect themselves against the ups and downs of the economy by creating new income streams. Under the terms of the loan announced on Monday, United will retain control over MileagePlus, which generated more than $5 billion in cash flow last year and about 12 percent of the airline’s revenue. | Loyalty programs have become a significant part of the airline business. They have helped companies protect themselves against the ups and downs of the economy by creating new income streams. Under the terms of the loan announced on Monday, United will retain control over MileagePlus, which generated more than $5 billion in cash flow last year and about 12 percent of the airline’s revenue. |
| United also said it expected to average $40 million in daily losses throughout the second quarter of the year. The company said it hoped to reduce that to $30 million in the third quarter. American and Delta Air Lines said last week that they expected to end June with $40 million in daily losses. | United also said it expected to average $40 million in daily losses throughout the second quarter of the year. The company said it hoped to reduce that to $30 million in the third quarter. American and Delta Air Lines said last week that they expected to end June with $40 million in daily losses. |
| BP told shareholders on Monday that the company expected to write off $13 billion to $17.5 billion of the value of its oil and gas holdings when it reports second-quarter earnings on Aug. 4. The company said that the write downs of up to 12 percent of the previous book value were partly a result of a reduction in its long-term forecasts of the price of oil by about 30 percent, to $55 a barrel. It is also similarly downgrading its long-term price for natural gas. | BP told shareholders on Monday that the company expected to write off $13 billion to $17.5 billion of the value of its oil and gas holdings when it reports second-quarter earnings on Aug. 4. The company said that the write downs of up to 12 percent of the previous book value were partly a result of a reduction in its long-term forecasts of the price of oil by about 30 percent, to $55 a barrel. It is also similarly downgrading its long-term price for natural gas. |
| Shares in Hertz fell about 15 percent Monday morning after the car rental agency announced a $500 million stock offering. A judge approved the unusual sale on Friday at Hertz’s request after the company saw an opportunity in its surprisingly buoyant share price. | Shares in Hertz fell about 15 percent Monday morning after the car rental agency announced a $500 million stock offering. A judge approved the unusual sale on Friday at Hertz’s request after the company saw an opportunity in its surprisingly buoyant share price. |
| Reporting was contributed by Gillian Friedman, Alan Rappeport, Emily Cochrane, Jeanna Smialek, Jim Tankersley, Niraj Chokshi, Jack Ewing, Matt Phillips, Mohammed Hadi, Keith Bradsher, Stanley Reed, Jason Karaian, Carlos Tejada, Brooks Barnes, Nicole Sperling, Paul Sullivan and Kevin Granville. | Reporting was contributed by Gillian Friedman, Alan Rappeport, Emily Cochrane, Jeanna Smialek, Jim Tankersley, Niraj Chokshi, Jack Ewing, Matt Phillips, Mohammed Hadi, Keith Bradsher, Stanley Reed, Jason Karaian, Carlos Tejada, Brooks Barnes, Nicole Sperling, Paul Sullivan and Kevin Granville. |