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| Airbus to Cut 15,000 Jobs: Live Business Updates | Airbus to Cut 15,000 Jobs: Live Business Updates |
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| In the first six months of the year, stocks experienced their biggest quarter-to-quarter swing in more than 80 years. | In the first six months of the year, stocks experienced their biggest quarter-to-quarter swing in more than 80 years. |
| First, the coronavirus pandemic and a shutdown of the economy sent stocks on one of the fastest declines on record. Then, giant helpings of government stimulus not only stopped the sell-off but sent stocks charging to their best quarterly performance in more than two decades. | First, the coronavirus pandemic and a shutdown of the economy sent stocks on one of the fastest declines on record. Then, giant helpings of government stimulus not only stopped the sell-off but sent stocks charging to their best quarterly performance in more than two decades. |
| Where they go next is a mystery. There’s so much uncertainty about the coronavirus crisis that roughly 40 percent of the S&P 500, about 200 companies, have withdrawn their customary forecasts about how their businesses will perform in the months ahead, according to data from S&P Capital IQ. | Where they go next is a mystery. There’s so much uncertainty about the coronavirus crisis that roughly 40 percent of the S&P 500, about 200 companies, have withdrawn their customary forecasts about how their businesses will perform in the months ahead, according to data from S&P Capital IQ. |
| The companies’ silence has unnerved analysts, who have already axed their expectations for profit growth substantially. They’re now expecting that second-quarter profits will fall more than 40 percent, according to numbers compiled by the data provider FactSet. | The companies’ silence has unnerved analysts, who have already axed their expectations for profit growth substantially. They’re now expecting that second-quarter profits will fall more than 40 percent, according to numbers compiled by the data provider FactSet. |
| That’s an ugly forecast, but investors face a crucial question: Is it ugly enough? | That’s an ugly forecast, but investors face a crucial question: Is it ugly enough? |
| “The numbers are sort of all over the place,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, said of analysts’ predictions. — Matt Phillips | “The numbers are sort of all over the place,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, said of analysts’ predictions. — Matt Phillips |
| The coronavirus pandemic continued to wreak havoc on global aviation as the aerospace giant Airbus announced Tuesday it would cut 15,000 jobs across its global work force, the largest downsizing in the history of the company. | The coronavirus pandemic continued to wreak havoc on global aviation as the aerospace giant Airbus announced Tuesday it would cut 15,000 jobs across its global work force, the largest downsizing in the history of the company. |
| Citing a 40 percent slump in commercial aircraft business activity and an “unprecedented crisis” facing the airline industry, the company said it would slash around 10 percent of its 135,000 employees worldwide, with layoffs hitting plants in Britain, France, Germany and Spain. | Citing a 40 percent slump in commercial aircraft business activity and an “unprecedented crisis” facing the airline industry, the company said it would slash around 10 percent of its 135,000 employees worldwide, with layoffs hitting plants in Britain, France, Germany and Spain. |
| Airbus’s chief executive, Guillaume Faury, had been preparing employees for hard times in a series of recent memos warning it would be necessary to adapt to a “lasting decline” in the demand for airliners. The company said it doesn’t expect air travel to return to pre-pandemic levels before 2023 at the earliest and potentially not until 2025. — Liz Alderman | Airbus’s chief executive, Guillaume Faury, had been preparing employees for hard times in a series of recent memos warning it would be necessary to adapt to a “lasting decline” in the demand for airliners. The company said it doesn’t expect air travel to return to pre-pandemic levels before 2023 at the earliest and potentially not until 2025. — Liz Alderman |
| Treasury Secretary Steven Mnuchin and the Federal Reserve chair, Jerome H. Powell, offered differing views of how quickly the U.S. economy will recover in testimony before Congress on Tuesday. | Treasury Secretary Steven Mnuchin and the Federal Reserve chair, Jerome H. Powell, offered differing views of how quickly the U.S. economy will recover in testimony before Congress on Tuesday. |
| They also took different approaches to wearing masks, which Representative Maxine Waters, the chair of the House Financial Services Committee, said were required at the hearing. | They also took different approaches to wearing masks, which Representative Maxine Waters, the chair of the House Financial Services Committee, said were required at the hearing. |
| Mr. Mnuchin removed his mask while testifying. Mr. Powell kept his mask in place. | Mr. Mnuchin removed his mask while testifying. Mr. Powell kept his mask in place. |
| The Treasury secretary also offered a more upbeat view of the economic trajectory than Mr. Powell, saying he expects a rebound in the second half of the year. | The Treasury secretary also offered a more upbeat view of the economic trajectory than Mr. Powell, saying he expects a rebound in the second half of the year. |
| “We are in a strong position to recover because the Trump administration worked with Congress on a bipartisan basis to pass legislation and provide liquidity to workers and markets in record time,” Mr. Mnuchin told members of the House Financial Services Committee. | “We are in a strong position to recover because the Trump administration worked with Congress on a bipartisan basis to pass legislation and provide liquidity to workers and markets in record time,” Mr. Mnuchin told members of the House Financial Services Committee. |
| Mr. Powell said that the economy was recovering more quickly than expected, but big risks remained as the virus persisted, subduing economic activity. | Mr. Powell said that the economy was recovering more quickly than expected, but big risks remained as the virus persisted, subduing economic activity. |
| A second wave of the virus, Mr. Powell said, “could force people to withdraw” and “undermine public confidence which is what we need to get back to lots of kinds of economic activity that involve crowds.” | A second wave of the virus, Mr. Powell said, “could force people to withdraw” and “undermine public confidence which is what we need to get back to lots of kinds of economic activity that involve crowds.” |
| “A full recovery is unlikely until people are confident that it is safe to re-engage in a broad range of activities,” Mr. Powell said, adding that “the path forward will also depend on the policy actions taken at all levels of government to provide relief and to support the recovery for as long as needed.” | “A full recovery is unlikely until people are confident that it is safe to re-engage in a broad range of activities,” Mr. Powell said, adding that “the path forward will also depend on the policy actions taken at all levels of government to provide relief and to support the recovery for as long as needed.” |
| Their testimony came as Dr. Anthony S. Fauci, the nation’s top infectious disease expert, warned lawmakers in a separate congressional hearing on Tuesday that the number of new infections in the United States could more than double to 100,000 a day if the country failed to contain the surge that underway in many states. | Their testimony came as Dr. Anthony S. Fauci, the nation’s top infectious disease expert, warned lawmakers in a separate congressional hearing on Tuesday that the number of new infections in the United States could more than double to 100,000 a day if the country failed to contain the surge that underway in many states. |
| “We are now having 40-plus thousand new cases a day,” Dr. Fauci said. “I would not be surprised if we go up to 100,000 a day if this does not turn around. And so I am very concerned.” — Alan Rappeport and Jeanna Smialek | “We are now having 40-plus thousand new cases a day,” Dr. Fauci said. “I would not be surprised if we go up to 100,000 a day if this does not turn around. And so I am very concerned.” — Alan Rappeport and Jeanna Smialek |
| Treasury Secretary Steven Mnuchin defended his record of transparency in managing the $2.2 trillion government bailout during a congressional hearing on Tuesday but said he would not commit to providing additional information to a panel of inspectors general that have accused him of stonewalling their requests. | Treasury Secretary Steven Mnuchin defended his record of transparency in managing the $2.2 trillion government bailout during a congressional hearing on Tuesday but said he would not commit to providing additional information to a panel of inspectors general that have accused him of stonewalling their requests. |
| Earlier this month, Michael E. Horowitz, the acting chairman of the new Pandemic Response Accountability Committee, and Robert A. Westbrooks, the committee’s executive director, warned in a letter that the Treasury lawyers’ interpretation would “present potentially significant transparency and oversight issues.” | Earlier this month, Michael E. Horowitz, the acting chairman of the new Pandemic Response Accountability Committee, and Robert A. Westbrooks, the committee’s executive director, warned in a letter that the Treasury lawyers’ interpretation would “present potentially significant transparency and oversight issues.” |
| Because of that determination, approximately $1 trillion of the stimulus funds are shielded from the committee’s oversight efforts. | Because of that determination, approximately $1 trillion of the stimulus funds are shielded from the committee’s oversight efforts. |
| Rep. Carolyn Maloney, a New York Democrat, pressed Mr. Mnuchin in his interpretation of the law and told him that Congress intended for the new committee to have access to information about how those funds are being deployed. The funds include money for tribal governments already embroiled in a series of lawsuits, aid for states, nearly $500 billion for corporations, funds for aviation companies and the Paycheck Protection Program. | Rep. Carolyn Maloney, a New York Democrat, pressed Mr. Mnuchin in his interpretation of the law and told him that Congress intended for the new committee to have access to information about how those funds are being deployed. The funds include money for tribal governments already embroiled in a series of lawsuits, aid for states, nearly $500 billion for corporations, funds for aviation companies and the Paycheck Protection Program. |
| Mr. Mnuchin argued that Ms. Maloney’s interpretation is different than that of lawmakers in the Senate and that there are multiple layers of oversight that he is trying to accommodate. He said that he would ask his inspector general to work with the committee to address its concerns. | Mr. Mnuchin argued that Ms. Maloney’s interpretation is different than that of lawmakers in the Senate and that there are multiple layers of oversight that he is trying to accommodate. He said that he would ask his inspector general to work with the committee to address its concerns. |
| “We have full transparency,” Mr. Mnuchin said. | “We have full transparency,” Mr. Mnuchin said. |
| Commercial real estate companies have been hard-hit as residents and businesses, facing a loss of income and revenue, hold off on paying rent. | Commercial real estate companies have been hard-hit as residents and businesses, facing a loss of income and revenue, hold off on paying rent. |
| But helping the landlords pay their own debt is proving to be difficult, Jerome H. Powell, the Federal Reserve Chair, and Steven Mnuchin, the Treasury Secretary, said on Tuesday. | But helping the landlords pay their own debt is proving to be difficult, Jerome H. Powell, the Federal Reserve Chair, and Steven Mnuchin, the Treasury Secretary, said on Tuesday. |
| “This is a large challenge, so working with the Fed, we have not yet figured out a way to set up a facility — it’s not out of a lack of interest, or a lack of desire,” Mr. Mnuchin said, suggesting that the next relief bill Congress passes may need to include some form of aid for the industry. | “This is a large challenge, so working with the Fed, we have not yet figured out a way to set up a facility — it’s not out of a lack of interest, or a lack of desire,” Mr. Mnuchin said, suggesting that the next relief bill Congress passes may need to include some form of aid for the industry. |
| “More debt may not be the answer here,” Mr. Powell said, referring to the Fed’s ability to provide assistance, which is limited to lending powers. “There’s a serious problem here, that needs to get fixed, and we’re racking our brains to see how — if there’s something we can do by lending.” | “More debt may not be the answer here,” Mr. Powell said, referring to the Fed’s ability to provide assistance, which is limited to lending powers. “There’s a serious problem here, that needs to get fixed, and we’re racking our brains to see how — if there’s something we can do by lending.” |
| Congress gave the Treasury Department $454 billion to support the Fed’s emergency lending programs, much of which remains uncommitted. But those programs can only offer loans and help companies to issue debt — they cannot offer outright grants or direct spending, which is Congressional lawmaker’s wheelhouse. | Congress gave the Treasury Department $454 billion to support the Fed’s emergency lending programs, much of which remains uncommitted. But those programs can only offer loans and help companies to issue debt — they cannot offer outright grants or direct spending, which is Congressional lawmaker’s wheelhouse. |
| Mr. Mnuchin and Mr. Powell were responding to questions from Representative Andy Barr, a Kentucky Republican, who warned that there might be a wave of foreclosures and defaults without intervention. | Mr. Mnuchin and Mr. Powell were responding to questions from Representative Andy Barr, a Kentucky Republican, who warned that there might be a wave of foreclosures and defaults without intervention. |
| “They can’t service their debt because they don’t have revenue,” Mr. Barr said. | “They can’t service their debt because they don’t have revenue,” Mr. Barr said. |
| The director of the Centers for Disease Control and Prevention on Tuesday expressed “substantial disappointment” with a decision by American Airlines to start booking its flights to their capacity. | The director of the Centers for Disease Control and Prevention on Tuesday expressed “substantial disappointment” with a decision by American Airlines to start booking its flights to their capacity. |
| “I can say this is under critical review right now by us at C.D.C.,” the director, Robert Redfield, said at a Senate hearing in response to a question from Senator Bernie Sanders of Vermont. “We don’t think it’s the right message, as you have pointed out.” | “I can say this is under critical review right now by us at C.D.C.,” the director, Robert Redfield, said at a Senate hearing in response to a question from Senator Bernie Sanders of Vermont. “We don’t think it’s the right message, as you have pointed out.” |
| It was not immediately clear what such a review would entail and whether it includes other airlines with similar policies. It was also not clear what the C.D.C. might do in response and whether it even had the power to compel airlines to leave some seats empty. | It was not immediately clear what such a review would entail and whether it includes other airlines with similar policies. It was also not clear what the C.D.C. might do in response and whether it even had the power to compel airlines to leave some seats empty. |
| Dr. Redfield’s comments come amid a surge in coronavirus cases in states like Arizona, California, Florida and Texas that had been allowing more businesses to reopen and relaxing restrictions on gatherings. Some of those states have paused or reversed their reopening plans in recent days. | Dr. Redfield’s comments come amid a surge in coronavirus cases in states like Arizona, California, Florida and Texas that had been allowing more businesses to reopen and relaxing restrictions on gatherings. Some of those states have paused or reversed their reopening plans in recent days. |
| American said its decision would not put passengers at greater risk. “We are unwavering in our commitment to the safety and well-being of our customers and team members,” Ross Feinstein, an American spokesman, said in a statement. “We have multiple layers of protection in place for those who fly with us, including required face coverings, enhanced cleaning procedures, and a preflight Covid-19 symptom checklist.” | American said its decision would not put passengers at greater risk. “We are unwavering in our commitment to the safety and well-being of our customers and team members,” Ross Feinstein, an American spokesman, said in a statement. “We have multiple layers of protection in place for those who fly with us, including required face coverings, enhanced cleaning procedures, and a preflight Covid-19 symptom checklist.” |
| American had been limiting flights to about 85 percent capacity, enough to leave half the middle seats empty, but said last week that it would let customers buy up all the available seats on its flights starting Wednesday. | American had been limiting flights to about 85 percent capacity, enough to leave half the middle seats empty, but said last week that it would let customers buy up all the available seats on its flights starting Wednesday. |
| Other airlines have taken a similar approach. United Airlines had never limited the number of passengers on its flights. United and American have said that they will warn customers when they are on a fully booked flights and let them switch to a less-packed flight. | Other airlines have taken a similar approach. United Airlines had never limited the number of passengers on its flights. United and American have said that they will warn customers when they are on a fully booked flights and let them switch to a less-packed flight. |
| By comparison, Southwest Airlines and Delta Air Lines have said that they will continue to cap the number of passengers on their flights through September. Southwest, which does not assign seats, is limiting flights at a level that would allow each middle seat to remain empty, though it will allow passengers to sit where they want. Delta is capping main cabins at 60 percent and first class cabins at 50 percent, while also blocking middle seats. —Niraj Chokshi | By comparison, Southwest Airlines and Delta Air Lines have said that they will continue to cap the number of passengers on their flights through September. Southwest, which does not assign seats, is limiting flights at a level that would allow each middle seat to remain empty, though it will allow passengers to sit where they want. Delta is capping main cabins at 60 percent and first class cabins at 50 percent, while also blocking middle seats. —Niraj Chokshi |
| After a stumbling start three months ago, the U.S. government’s centerpiece relief program for small businesses is ending with money left over. | After a stumbling start three months ago, the U.S. government’s centerpiece relief program for small businesses is ending with money left over. |
| The Paycheck Protection Program is scheduled to wrap up on Tuesday after handing out $520 billion in loans meant to preserve workers’ jobs during the pandemic. But as new outbreaks spike across the country and force many states to rethink their plans to reopen businesses, the program is closing down with more than $130 billion still in its coffers. | The Paycheck Protection Program is scheduled to wrap up on Tuesday after handing out $520 billion in loans meant to preserve workers’ jobs during the pandemic. But as new outbreaks spike across the country and force many states to rethink their plans to reopen businesses, the program is closing down with more than $130 billion still in its coffers. |
| “The fact that it was able to reach so far into the small-business sector is a major achievement, and those things are worth acknowledging, and celebrating,” said John Lettieri, the chief executive of the Economic Innovation Group, a think tank focused on entrepreneurship. “But we’re still in a public health crisis.” | “The fact that it was able to reach so far into the small-business sector is a major achievement, and those things are worth acknowledging, and celebrating,” said John Lettieri, the chief executive of the Economic Innovation Group, a think tank focused on entrepreneurship. “But we’re still in a public health crisis.” |
| The hastily constructed and frequently chaotic aid program, run by the Small Business Administration but carried out through banks, handed out money to nearly 5 million businesses nationwide, giving them low-interest loans to cover roughly two and a half months of their typical payroll costs. Those that use most of the money to pay employees can have their debt forgiven. | The hastily constructed and frequently chaotic aid program, run by the Small Business Administration but carried out through banks, handed out money to nearly 5 million businesses nationwide, giving them low-interest loans to cover roughly two and a half months of their typical payroll costs. Those that use most of the money to pay employees can have their debt forgiven. |
| The program appears to have helped prevent the nation’s staggering job losses from growing worse. Hiring rebounded more than expected in May as companies in some of the hardest-hit industries, especially restaurants, restored millions of jobs by recalling laid-off workers and hiring new ones. | The program appears to have helped prevent the nation’s staggering job losses from growing worse. Hiring rebounded more than expected in May as companies in some of the hardest-hit industries, especially restaurants, restored millions of jobs by recalling laid-off workers and hiring new ones. |
| Lenders cited two main reasons there was money left over. First, most eligible companies that wanted a loan were ultimately able to obtain one. (The program limited each applicant to only one loan.) Also, the program’s complicated and shifting requirements dissuaded some qualified borrowers, who feared they would be unable to get their loan forgiven. — Stacey Cowley | Lenders cited two main reasons there was money left over. First, most eligible companies that wanted a loan were ultimately able to obtain one. (The program limited each applicant to only one loan.) Also, the program’s complicated and shifting requirements dissuaded some qualified borrowers, who feared they would be unable to get their loan forgiven. — Stacey Cowley |
| The fallout from the coronavirus pandemic has many businesses reeling, and the oil and gas industry in particular has been rocked by plummeting prices. | The fallout from the coronavirus pandemic has many businesses reeling, and the oil and gas industry in particular has been rocked by plummeting prices. |
| But producers of clean energy are pushing hard to get their projects up and running. They want to start making money on their investments as soon as possible, and while demand for electricity has been reduced by the impact of the virus, renewable power tends to win out over polluting sources in electricity systems because of low costs and favorable regulatory rules. | But producers of clean energy are pushing hard to get their projects up and running. They want to start making money on their investments as soon as possible, and while demand for electricity has been reduced by the impact of the virus, renewable power tends to win out over polluting sources in electricity systems because of low costs and favorable regulatory rules. |
| Among the projects are the 2.5 billion pound ($3.1 billion) East Anglia One wind farm being installed off England’s east coast, in the North Sea, by Iberdrola, the Spanish utility. After additional safety measures for employees were adopted, work on the project continued through Britain’s lockdown, now all 102 turbines are installed. | Among the projects are the 2.5 billion pound ($3.1 billion) East Anglia One wind farm being installed off England’s east coast, in the North Sea, by Iberdrola, the Spanish utility. After additional safety measures for employees were adopted, work on the project continued through Britain’s lockdown, now all 102 turbines are installed. |
| The work reflects growing financial strength for many green-energy companies that were rocked by the financial crisis of 2008 and 2009. Denmark-based Vestas Wind Systems, a major maker of offshore wind turbines, was forced into closing or selling a dozen factories. | The work reflects growing financial strength for many green-energy companies that were rocked by the financial crisis of 2008 and 2009. Denmark-based Vestas Wind Systems, a major maker of offshore wind turbines, was forced into closing or selling a dozen factories. |
| Now the companies have more money in the bank, their equipment is more efficient, and demand reflects the rising interest to reduce carbon emissions. Over the past several months Vestas has striven to keep its factories open to meet a record first-quarter order book of 34.1 billion euros for its giant electric power-generating windmills and services. | Now the companies have more money in the bank, their equipment is more efficient, and demand reflects the rising interest to reduce carbon emissions. Over the past several months Vestas has striven to keep its factories open to meet a record first-quarter order book of 34.1 billion euros for its giant electric power-generating windmills and services. |
| “We started out differently, saying ‘Let’s not use the excuse of Covid-19,’” said Henrik Andersen, the Vestas chief executive. — Stanley Reed | “We started out differently, saying ‘Let’s not use the excuse of Covid-19,’” said Henrik Andersen, the Vestas chief executive. — Stanley Reed |
| Local union officials have asked General Motors to close its plant in Arlington, Texas, to protect workers until the surge in virus cases in the state subsidies. “The Centers for Disease Control has repeatedly said that the only true way to stop the spread of this virus is to stay home,” Local 276 of the United Automobile Workers union said in a statement. National union officials and G.M. said they were discussing the concerns raised by the local. | Local union officials have asked General Motors to close its plant in Arlington, Texas, to protect workers until the surge in virus cases in the state subsidies. “The Centers for Disease Control has repeatedly said that the only true way to stop the spread of this virus is to stay home,” Local 276 of the United Automobile Workers union said in a statement. National union officials and G.M. said they were discussing the concerns raised by the local. |
| Royal Dutch Shell said on Tuesday that it planned to write off up to $22 billion from the value of its oil and gas assets, another sign that energy companies are reducing the value of their main businesses as a result of the coronavirus pandemic. The write-downs come because Shell, Europe’s largest oil company, is lowering its forecasts for oil and gas prices. | Royal Dutch Shell said on Tuesday that it planned to write off up to $22 billion from the value of its oil and gas assets, another sign that energy companies are reducing the value of their main businesses as a result of the coronavirus pandemic. The write-downs come because Shell, Europe’s largest oil company, is lowering its forecasts for oil and gas prices. |
| Reporting was contributed by Neal E. Boudette, Jeanna Smialek, Liz Alderman, Mike Issac, Erin Griffith, Stacey Cowley, Emily Flitter, Niraj Chokshi, Stanley Reed, Carlos Tejada and Clifford Krauss. |