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Disney Postpones Some Resort Reopenings: Live Business Updates | |
(about 1 hour later) | |
The Walt Disney Company on Wednesday abandoned a plan to reopen its California theme parks on July 17, citing a slower-than-anticipated approval process by state regulators. The announcement came amid tension with unionized Disneyland employees, some of whom had publicly criticized the company’s reopening timetable as too fast. | The Walt Disney Company on Wednesday abandoned a plan to reopen its California theme parks on July 17, citing a slower-than-anticipated approval process by state regulators. The announcement came amid tension with unionized Disneyland employees, some of whom had publicly criticized the company’s reopening timetable as too fast. |
“The State of California has now indicated that it will not issue theme park reopening guidelines until sometime after July 4,” Disney said in a statement. “Given the time required for us to bring thousands of cast members back to work and restart our business, we have no choice but to delay the reopening of our theme parks and resort hotels until we receive approval from government officials.” | “The State of California has now indicated that it will not issue theme park reopening guidelines until sometime after July 4,” Disney said in a statement. “Given the time required for us to bring thousands of cast members back to work and restart our business, we have no choice but to delay the reopening of our theme parks and resort hotels until we receive approval from government officials.” |
Disney did not give a new target reopening date. The company said it would move forward with plans to reopen its Downtown Disney shopping mall in Anaheim, Calif., on July 9. | Disney did not give a new target reopening date. The company said it would move forward with plans to reopen its Downtown Disney shopping mall in Anaheim, Calif., on July 9. |
Disneyland and Disney California Adventure, which border each other in Anaheim, closed on March 13. Two weeks ago, Disney presented government officials with a plan to reopen both parks on July 17 with limited capacity and stringent safety policies, including mandatory mask-wearing. Other theme park operators in California have made similar proposals; Universal Studios Hollywood said it would like to reopen as soon as July 1, pending state approval. | Disneyland and Disney California Adventure, which border each other in Anaheim, closed on March 13. Two weeks ago, Disney presented government officials with a plan to reopen both parks on July 17 with limited capacity and stringent safety policies, including mandatory mask-wearing. Other theme park operators in California have made similar proposals; Universal Studios Hollywood said it would like to reopen as soon as July 1, pending state approval. |
But coronavirus cases in California have been soaring. Gov. Gavin Newsom said on Wednesday that the state recorded more than 7,000 new cases over the past day. | But coronavirus cases in California have been soaring. Gov. Gavin Newsom said on Wednesday that the state recorded more than 7,000 new cases over the past day. |
Unions representing most of the Disneyland’s 32,000 employees sent a letter to Governor Newsom on June 17 saying that “despite intensive talks with the company, we are not yet convinced that it is safe to reopen the parks on Disney’s rapid timetable.” Since then, many of Disney’s unions have signed agreements with the company outlining enhanced safety procedures. | Unions representing most of the Disneyland’s 32,000 employees sent a letter to Governor Newsom on June 17 saying that “despite intensive talks with the company, we are not yet convinced that it is safe to reopen the parks on Disney’s rapid timetable.” Since then, many of Disney’s unions have signed agreements with the company outlining enhanced safety procedures. |
Stocks tumbled on Wednesday, erasing back-to-back gains from earlier in the week, as investors were confronted by new signs of the coronavirus pandemic’s persistence. | Stocks tumbled on Wednesday, erasing back-to-back gains from earlier in the week, as investors were confronted by new signs of the coronavirus pandemic’s persistence. |
The S&P 500 fell more than 2 percent, with shares of retailers, airlines and cruise companies — which are proxies for sentiment about the prospects of a return to normal — faring poorly. | The S&P 500 fell more than 2 percent, with shares of retailers, airlines and cruise companies — which are proxies for sentiment about the prospects of a return to normal — faring poorly. |
Nervousness about the economic outlook was evident in oil prices, and shares of energy companies also declined. | Nervousness about the economic outlook was evident in oil prices, and shares of energy companies also declined. |
German officials this week reimposed local lockdowns after an outbreak at a slaughterhouse infected more than 1,500 people. In the United States, a surge in new cases in states including Arizona, Florida and Texas have prompted new warnings about the dangers of the pandemic. More than 35,000 new coronavirus cases were identified across the country on Tuesday, according to a New York Times database, the highest single-day total since late April and the third-highest total of any day of the pandemic. | German officials this week reimposed local lockdowns after an outbreak at a slaughterhouse infected more than 1,500 people. In the United States, a surge in new cases in states including Arizona, Florida and Texas have prompted new warnings about the dangers of the pandemic. More than 35,000 new coronavirus cases were identified across the country on Tuesday, according to a New York Times database, the highest single-day total since late April and the third-highest total of any day of the pandemic. |
States are discouraging people from gathering in public and even reimposing some limits on activity. New York, New Jersey and Connecticut said on Wednesday that they would begin requiring out-of-state visitors entering their states to quarantine for two weeks upon arrival if they were coming from one of the country’s new hot spots. | States are discouraging people from gathering in public and even reimposing some limits on activity. New York, New Jersey and Connecticut said on Wednesday that they would begin requiring out-of-state visitors entering their states to quarantine for two weeks upon arrival if they were coming from one of the country’s new hot spots. |
The risk to investors is that a resumption of limits on travel, shopping or other activities that might further the spread of the virus will take a toll on corporate profits and the economy. For now, no state government has imposed the kind of limits that were in place in April and May but that could change as cases mount and hospitals reach capacity.Houston’s intensive-care units are filled to 97 percent of capacity, Mayor Sylvester Turner told the City Council on Wednesday, with Covid-19 patients accounting for more than one-quarter of all patients in intensive care. Apple later said it would close its stores in the city as a precaution. | The risk to investors is that a resumption of limits on travel, shopping or other activities that might further the spread of the virus will take a toll on corporate profits and the economy. For now, no state government has imposed the kind of limits that were in place in April and May but that could change as cases mount and hospitals reach capacity.Houston’s intensive-care units are filled to 97 percent of capacity, Mayor Sylvester Turner told the City Council on Wednesday, with Covid-19 patients accounting for more than one-quarter of all patients in intensive care. Apple later said it would close its stores in the city as a precaution. |
Underscoring concern over the impact of the virus, the International Monetary Fund on Wednesday revised its forecast for global economic growth sharply lower. The I.M.F. now expects the global economy to shrink by 4.9 percent, compared with a 3 percent prediction in April. The recovery will also be slower than earlier expected, the fund said. | Underscoring concern over the impact of the virus, the International Monetary Fund on Wednesday revised its forecast for global economic growth sharply lower. The I.M.F. now expects the global economy to shrink by 4.9 percent, compared with a 3 percent prediction in April. The recovery will also be slower than earlier expected, the fund said. |
The decline on Wednesday followed back-to-back gains on Wall Street that had lifted the Nasdaq composite to a record high. Led by large technology stocks like Apple and Amazon, the Nasdaq has outpaced the broader market in recent days, but it was also sharply lower on Wednesday. | The decline on Wednesday followed back-to-back gains on Wall Street that had lifted the Nasdaq composite to a record high. Led by large technology stocks like Apple and Amazon, the Nasdaq has outpaced the broader market in recent days, but it was also sharply lower on Wednesday. |
Tomas J. Philipson, a top economic adviser to President Trump, plans to leave the administration at the end of the month, a White House official said on Wednesday. | Tomas J. Philipson, a top economic adviser to President Trump, plans to leave the administration at the end of the month, a White House official said on Wednesday. |
Mr. Philipson has served for the past year as the acting chairman of the Council of Economic Advisers and has been a member of the council since 2017. His departure leaves the Trump administration without one of its key economic experts as it tries to contain the coronavirus pandemic and emerge from a deep recession. | Mr. Philipson has served for the past year as the acting chairman of the Council of Economic Advisers and has been a member of the council since 2017. His departure leaves the Trump administration without one of its key economic experts as it tries to contain the coronavirus pandemic and emerge from a deep recession. |
He “will be returning to his tenured role at the University of Chicago in the fall,” Judd Deere, a White House spokesman, said. | He “will be returning to his tenured role at the University of Chicago in the fall,” Judd Deere, a White House spokesman, said. |
Mr. Philipson succeeded Kevin Hassett as the chairman of the council, and is one of the few top administration officials, along with Peter Navarro, who holds a Ph.D. in economics.. Mr. Hassett returned to the administration in an advisory role this year, but he is also departing in the coming weeks. | Mr. Philipson succeeded Kevin Hassett as the chairman of the council, and is one of the few top administration officials, along with Peter Navarro, who holds a Ph.D. in economics.. Mr. Hassett returned to the administration in an advisory role this year, but he is also departing in the coming weeks. |
The White House did not name a replacement. | The White House did not name a replacement. |
Mr. Philipson said in a brief interview that his departure, which was reported earlier by Politico, had been in the works for a year. The University of Chicago had already extended his leave of absence and he needed to return to preserve his tenure status. | Mr. Philipson said in a brief interview that his departure, which was reported earlier by Politico, had been in the works for a year. The University of Chicago had already extended his leave of absence and he needed to return to preserve his tenure status. |
He said he was pleased to have had a role in shaping the administration’s tax and trade policies. | He said he was pleased to have had a role in shaping the administration’s tax and trade policies. |
“If those policies are in place and the American people are smart about mitigating this disease, it will come back to where we were, which was obviously a great place in February,” Mr. Philipson said of the economy. | “If those policies are in place and the American people are smart about mitigating this disease, it will come back to where we were, which was obviously a great place in February,” Mr. Philipson said of the economy. |
The lack of a top White House economist comes as the administration predicts a far rosier economic path than most independent economists have projected. | The lack of a top White House economist comes as the administration predicts a far rosier economic path than most independent economists have projected. |
The International Monetary Fund said Wednesday that the global economy faced an even deeper downturn than it previously projected as the coronavirus pandemic continued to sow uncertainty and businesses around the world struggled to shake off the virus. | The International Monetary Fund said Wednesday that the global economy faced an even deeper downturn than it previously projected as the coronavirus pandemic continued to sow uncertainty and businesses around the world struggled to shake off the virus. |
In an update to its World Economic Outlook, the I.M.F. said it expected the global economy to shrink 4.9 percent this year, a sharper contraction than the 3 percent it predicted in April. | In an update to its World Economic Outlook, the I.M.F. said it expected the global economy to shrink 4.9 percent this year, a sharper contraction than the 3 percent it predicted in April. |
The fund noted that, even as businesses began to reopen, voluntary social distancing and enhanced workplace safety standards were weighing on economic activity. Moreover, the “scarring” of the labor force from mass job cuts and business closures means that the world economy will recover much more slowly, with the I.M.F. projecting 5.4 percent global growth in 2021, far below its pre-pandemic projections. | The fund noted that, even as businesses began to reopen, voluntary social distancing and enhanced workplace safety standards were weighing on economic activity. Moreover, the “scarring” of the labor force from mass job cuts and business closures means that the world economy will recover much more slowly, with the I.M.F. projecting 5.4 percent global growth in 2021, far below its pre-pandemic projections. |
The I.M.F. now projects that the U.S. economy will shrink 8 percent this year before expanding 4.5 percent next year. Economies in the eurozone are projected to shrink 10.2 percent this year and expand 6 percent next year. The economy of China, where the virus originated and which imposed draconian containment measures, is expected to expand 1 percent this year and 8.2 percent in 2021. | The I.M.F. now projects that the U.S. economy will shrink 8 percent this year before expanding 4.5 percent next year. Economies in the eurozone are projected to shrink 10.2 percent this year and expand 6 percent next year. The economy of China, where the virus originated and which imposed draconian containment measures, is expected to expand 1 percent this year and 8.2 percent in 2021. |
Auto factories are churning out trucks and sport utility vehicles, with many of the plants nearly back to pre-pandemic production levels. Automakers have reported no major outbreaks, although some workers have tested positive. Perhaps most important, vehicle sales have perked up more than many industry executives had expected. | Auto factories are churning out trucks and sport utility vehicles, with many of the plants nearly back to pre-pandemic production levels. Automakers have reported no major outbreaks, although some workers have tested positive. Perhaps most important, vehicle sales have perked up more than many industry executives had expected. |
Auto sales will be down sharply this year, more than in any year since at least 2009; AlixPartners, a consulting firm, expects sales of new vehicles to fall about 19 percent this year, to 13.7 million. Yet automakers and car dealers say they are feeling optimistic because sales of new cars to individuals and families, the industry’s main customer base, have surged. | Auto sales will be down sharply this year, more than in any year since at least 2009; AlixPartners, a consulting firm, expects sales of new vehicles to fall about 19 percent this year, to 13.7 million. Yet automakers and car dealers say they are feeling optimistic because sales of new cars to individuals and families, the industry’s main customer base, have surged. |
A rebound in the auto industry would probably help the economy. It is the nation’s largest manufacturing sector and employs roughly 1.5 million people in manufacturing, sales and service. | A rebound in the auto industry would probably help the economy. It is the nation’s largest manufacturing sector and employs roughly 1.5 million people in manufacturing, sales and service. |
“There’s pent-up demand,” said Doug Waikem, owner of six new-car franchises in Massillon, Ohio. “There are people who were ready to buy, and then the virus hit. They put it on hold, but some are starting to come back.” | “There’s pent-up demand,” said Doug Waikem, owner of six new-car franchises in Massillon, Ohio. “There are people who were ready to buy, and then the virus hit. They put it on hold, but some are starting to come back.” |
Auto manufacturers have lured buyers back to dealerships with generous financial incentives. For a time, several companies, including General Motors, Ford Motor and Fiat Chrysler, were offering zero-interest loans for 84 months on most or all of their vehicles. Most automakers have phased out those offers, but interest-free loans for up to 72 months are still available on many models. | Auto manufacturers have lured buyers back to dealerships with generous financial incentives. For a time, several companies, including General Motors, Ford Motor and Fiat Chrysler, were offering zero-interest loans for 84 months on most or all of their vehicles. Most automakers have phased out those offers, but interest-free loans for up to 72 months are still available on many models. |
Demand for gasoline is a proxy for economic activity, and the recent surge in coronavirus cases in states like Arizona, Florida and Texas could stem a rise in gas prices. | Demand for gasoline is a proxy for economic activity, and the recent surge in coronavirus cases in states like Arizona, Florida and Texas could stem a rise in gas prices. |
In Texas, the second-most populous state after California, prices could fall sharply after Gov. Greg Abbott on Tuesday urged people to stay at home to reduce the spread of the virus. | In Texas, the second-most populous state after California, prices could fall sharply after Gov. Greg Abbott on Tuesday urged people to stay at home to reduce the spread of the virus. |
Demand for gasoline has recovered more than half of the drop it suffered when the coronavirus spread widely in April and many states and cities ordered people to stay at home and businesses to shut down, IHS Markit, a consulting and research firm said on Wednesday. | Demand for gasoline has recovered more than half of the drop it suffered when the coronavirus spread widely in April and many states and cities ordered people to stay at home and businesses to shut down, IHS Markit, a consulting and research firm said on Wednesday. |
A survey of 15,000 gasoline stations by IHS taken before the new rise in cases found that use of gasoline was down about 22 percent in the second week of June compared with the same week a year ago. That’s a stark improvement over the second week of April, when gas purchases were down nearly 50 percent. | A survey of 15,000 gasoline stations by IHS taken before the new rise in cases found that use of gasoline was down about 22 percent in the second week of June compared with the same week a year ago. That’s a stark improvement over the second week of April, when gas purchases were down nearly 50 percent. |
So far this year, gasoline sales have fallen the most in the Northeast, where the pandemic spread widely in March and April, causing tens of thousands of deaths. Demand is down by about a third in Massachusetts. By comparison, sales are down about 26 percent in California. | So far this year, gasoline sales have fallen the most in the Northeast, where the pandemic spread widely in March and April, causing tens of thousands of deaths. Demand is down by about a third in Massachusetts. By comparison, sales are down about 26 percent in California. |
The average price for regular gasoline nationwide on Wednesday was $2.16 a gallon, down from $2.66 a year earlier, according to AAA. Prices at the pump have been rising in recent weeks. Oil prices remain roughly a third below at the start of the year. | The average price for regular gasoline nationwide on Wednesday was $2.16 a gallon, down from $2.66 a year earlier, according to AAA. Prices at the pump have been rising in recent weeks. Oil prices remain roughly a third below at the start of the year. |
“We can see a new preference for driving your car instead of public transportation or a short-range flight, and people do want to get out,” said Tom Kloza, global head of energy analysis at IHS’s Oil Price Information Service. “But that will be offset by less commuting and more working from home, the cancellation of sporting events, still-high unemployment levels and possibly a second wave of the virus in the autumn.” | “We can see a new preference for driving your car instead of public transportation or a short-range flight, and people do want to get out,” said Tom Kloza, global head of energy analysis at IHS’s Oil Price Information Service. “But that will be offset by less commuting and more working from home, the cancellation of sporting events, still-high unemployment levels and possibly a second wave of the virus in the autumn.” |
India is coming under increased pressure to open its airspace to international carriers after the United States and some European nations accused it of discriminatory practices under the garb of “repatriations” flights. | India is coming under increased pressure to open its airspace to international carriers after the United States and some European nations accused it of discriminatory practices under the garb of “repatriations” flights. |
The U.S. Department of Transportation said on Monday that the Indian charter flights — organized by the government to bring Indian nationals home amid global travel restrictions — go beyond “true repatriations.” It accused India’s national carrier, Air India, of selling tickets in the open market, even while New Delhi officials keep U.S. airlines from flying to India. Future chartered flights, U.S. officials said, would require Washington’s approval. | The U.S. Department of Transportation said on Monday that the Indian charter flights — organized by the government to bring Indian nationals home amid global travel restrictions — go beyond “true repatriations.” It accused India’s national carrier, Air India, of selling tickets in the open market, even while New Delhi officials keep U.S. airlines from flying to India. Future chartered flights, U.S. officials said, would require Washington’s approval. |
The Indian government suspended international air travel operations on March 22 after imposing a nationwide lockdown to curb the spread of the coronavirus. On many occasions, it failed to greenlight chartered flights operated by U.S. carriers. | The Indian government suspended international air travel operations on March 22 after imposing a nationwide lockdown to curb the spread of the coronavirus. On many occasions, it failed to greenlight chartered flights operated by U.S. carriers. |
India’s ministry of civil aviation said in a tweet on Tuesday that it was considering easing those restrictions to allow flights from U.S., French, British and German carriers. | India’s ministry of civil aviation said in a tweet on Tuesday that it was considering easing those restrictions to allow flights from U.S., French, British and German carriers. |
Over the past several years, hospitals began to play innkeeper to open the door to more elective surgery, which is the lifeblood of their revenue. | Over the past several years, hospitals began to play innkeeper to open the door to more elective surgery, which is the lifeblood of their revenue. |
They developed hotels near their operating rooms where patients, who often came from overseas for specialized treatments, could recover comfortably. Expanding into the hospitality business also allowed health care providers to avoid the high costs of being hosts themselves. | They developed hotels near their operating rooms where patients, who often came from overseas for specialized treatments, could recover comfortably. Expanding into the hospitality business also allowed health care providers to avoid the high costs of being hosts themselves. |
But as with so much else, the coronavirus pandemic has devastated medical tourism. To allow doctors to focus on emergencies, hospitals have canceled hip replacements and tummy tucks, while flight bans have grounded many foreign visitors. | But as with so much else, the coronavirus pandemic has devastated medical tourism. To allow doctors to focus on emergencies, hospitals have canceled hip replacements and tummy tucks, while flight bans have grounded many foreign visitors. |
“Unfortunately, the future looks bleak,” said Trey Hulsey, a co-founder of Hayakoum, a three-year-old service that handles travel arrangements for patients from the Middle East bound for hospitals in Boston, Houston and Philadelphia. “It’s just been one blow after another.” | “Unfortunately, the future looks bleak,” said Trey Hulsey, a co-founder of Hayakoum, a three-year-old service that handles travel arrangements for patients from the Middle East bound for hospitals in Boston, Houston and Philadelphia. “It’s just been one blow after another.” |
Apple said it closed seven of its stores in the Houston area because of rising coronavirus cases in the region. The move on Wednesday followed its closure of 11 stores in Arizona, Florida, South Carolina and North Carolina because of the virus. Apple had closed nearly all of its roughly 500 stores worldwide months ago, but had opened most in the United States in recent weeks after cases declined. | Apple said it closed seven of its stores in the Houston area because of rising coronavirus cases in the region. The move on Wednesday followed its closure of 11 stores in Arizona, Florida, South Carolina and North Carolina because of the virus. Apple had closed nearly all of its roughly 500 stores worldwide months ago, but had opened most in the United States in recent weeks after cases declined. |
Swissport, a provider of airport cargo handling and ground services, said Wednesday it would eliminate about half of its jobs in Britain. Over all, more than 4,500 workers out of 8,500 would be made redundant, the company said. Swissport said it is dealing with a 75 percent drop in revenue because of the pandemic. | Swissport, a provider of airport cargo handling and ground services, said Wednesday it would eliminate about half of its jobs in Britain. Over all, more than 4,500 workers out of 8,500 would be made redundant, the company said. Swissport said it is dealing with a 75 percent drop in revenue because of the pandemic. |
GNC, the vitamin and supplement chain with about 5,000 locations around the world, filed for bankruptcy protection on Tuesday. The company said it would speed up plans to close as many as 1,200 stores and pursue a sale. | GNC, the vitamin and supplement chain with about 5,000 locations around the world, filed for bankruptcy protection on Tuesday. The company said it would speed up plans to close as many as 1,200 stores and pursue a sale. |
Spirit Aerosystems, a key Boeing supplier, said in a securities filing that Boeing had slashed an order for fuselage parts because of the effect the pandemic has had on global aviation. Boeing now wants only 72 shipsets, down from 125. (The aerospace giant had already cut its order from 216 earlier this year.) | Spirit Aerosystems, a key Boeing supplier, said in a securities filing that Boeing had slashed an order for fuselage parts because of the effect the pandemic has had on global aviation. Boeing now wants only 72 shipsets, down from 125. (The aerospace giant had already cut its order from 216 earlier this year.) |
Reporting was contributed by Brooks Barnes, Neal E. Boudette, Clifford Krauss, Jack Nicas, Matt Phillips, Alan Rappeport, Mohammed Hadi, Tammy LaGorce, C.J. Hughes, Carlos Tejada, Sameer Yasir, and Niraj Chokshi. | Reporting was contributed by Brooks Barnes, Neal E. Boudette, Clifford Krauss, Jack Nicas, Matt Phillips, Alan Rappeport, Mohammed Hadi, Tammy LaGorce, C.J. Hughes, Carlos Tejada, Sameer Yasir, and Niraj Chokshi. |