Stock market live updates: Futures hit 'limit down' halt, S&P 500 ETF down 6%, virus cases jump - CNBC

Trader Thomas Lee works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2019.

Richard Drew | AP

This is a live blog. Please check back for updates.

8:51 am: Sterling tumbles to lowest level since 2016 against the dollar

Sterling slid below $1.19 on Wednesday to hit its lowest point since October 2016 as liquidity concerns sent the dollar surging and hammered currencies around the world. The pound fell 1.5% on the session to hit $1.1873, its lowest level since an overnight flash crash in October 2016 and below the levels seen in the aftermath of the Brexit referendum. —Smith

7:53 am: Oil prices continue to slide, hit lowest levels since 2003

The price of oil continues to fall as the coronavirus pandemic leads to major economies restricting movement within major cities and expectations of a recession grow. West Texas International futures have declined 5.8% to trade at $25.38 a barrel and hit its lowest level since 2003. Futures for International benchmark Brent crude slipped about 3.5% and are trading at under $28 per barrel. — Pound

7:51 am: Treasury yields charge higher after White House floats $1 trillion stimulus plan

Long-term U.S. debt yields continued to rise on Wednesday after Treasury Secretary Steven Mnuchin said the White House would like to see a $1 trillion stimulus package to help insulate the economy from a downturn. The prospect of such a massive stimulus plan and a deluge of additional U.S. debt put outsized pressure on Treasury prices and sent the 10-year yield up more than 30 basis points on Tuesday. The 10-year rate, often used by banks as a benchmark for loans, has ripped from around 0.65% on Monday to 1.11% at the latest reading. — Franck

7:38 am: Regeneron rises on hopes of coronavirus drug

Shares of biotechnology company Regeneron rose nearly 2% in premarket trading on Wednesday, the day after the company said it aims to have doses of a potential drug for COVID-19 ready to start human clinical trials by early summer. The antibody is believed to be a treatment for the virus, as well as a preventative drug. Shares of Regeneron rose more than 11% on Tuesday. – Fitzgerald

7:35 am: Coronavirus cases jump, worrying Wall Street

A spike in coronavirus cases continues to worry investors, who are hoping for government stimulus to offset the economic impacts of the virus. Worldwide coronavirus cases top 200,000 for the first time, according to data compiled by John Hopkins University. Italy has more than 2,500 virus related deaths as of Tuesday evening, the country's health ministry said. Iran's death toll from the coronavirus climbed to 1,135 with 147 new deaths in the past 24 hours, a health ministry official told state TV on Wednesday. The total number of infected people across the country has reached 17,361. Plus, European leaders agreed Tuesday to close the European Union's external borders for 30 days in a new effort to slow the spread of the coronavirus pandemic. Singapore, Hong Kong and Taiwan also reported a rise in cases. France, which has seen a sharp spike in cases in recent weeks, said it could start seeing a slowdown of coronavirus infections in about eight to 12 days following the government's decision to lock down the country, Health Minister Olivier Veran said Wednesday. —Fitzgerald

7:28 am: Gundlach says it's 'ludicrous' to think US won't enter a recession

DoubleLine Capital CEO Jeffrey Gundlach believes there's a 90% chance the United States will enter a recession this year. The "Bond King" said that last week his odds stood at 80%, but that as the coronavirus outbreak continues to halt travel and shutter businesses worldwide, he now places the odds at 90%. Still, Gundlach added that he was incrementally less negative on the market's outlook given the magnitude of the federal government's response. "I think you're supposed to be staying liquid, I think you're supposed to be waiting for opportunities," he said. "We all know that the stock market is down a lot. We know the junk bond market's down a lot. ... Will the market snap back? Of course it will." —Stevens

7:25 am: Dow futures indicate 1,000-point drop

U.S. stock futures tumbled on Wednesday, reaching their so-called limit down level, indicating declines of about 5% for the major averages. Dow Jones Industrial Average futures were down 821 points, indicating a loss of 1,031 points at the open. S&P 500 and Nasdaq 100 futures were also at their downside limit. Investors turned their eyes to the ETFs that track the major averages for a better indication of what the open will look like. The SPDR S&P 500 ETF Trust (SPY) was down 6.4% in the premarket. The SPDR Dow Jones Industrial Average ETF Trust (DIA) traded 6.7% lower while the Invesco QQQ Trust dropped 6.3%. Those losses come after a sharp reversal in Treasury yields unnerved traders as they weighed a potential $1 trillion stimulus package.

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2020-03-18 12:56:52Z
CAIiENhY7nClIUH8yf88y8ZYilMqGQgEKhAIACoHCAow2Nb3CjDivdcCMJ_d7gU

Stock market live updates: Futures tumble, hit 'limit down' halt, S&P 500 ETF down 6%, virus cases jump - CNBC

Trader Thomas Lee works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2019.

Richard Drew | AP

This is a live blog. Please check back for updates.

7:53 am: Oil prices continue to slide, hit lowest levels since 2003

The price of oil continues to fall as the coronavirus pandemic leads to major economies restricting movement within major cities and expectations of a recession grow. West Texas International futures have declined 5.8% to trade at $25.38 a barrel and hit its lowest level since 2003. Futures for International benchmark Brent crude slipped about 3.5% and are trading at under $28 per barrel. — Pound

7:51 am: Treasury yields charge higher after White House floats $1 trillion stimulus plan

Long-term U.S. debt yields continued to rise on Wednesday after Treasury Secretary Steven Mnuchin said the White House would like to see a $1 trillion stimulus package to help insulate the economy from a downturn. The prospect of such a massive stimulus plan and a deluge of additional U.S. debt put outsized pressure on Treasury prices and sent the 10-year yield up more than 30 basis points on Tuesday. The 10-year rate, often used by banks as a benchmark for loans, has ripped from around 0.65% on Monday to 1.11% at the latest reading. — Franck

7:38 am: Regeneron rises on hopes of coronavirus drug

Shares of biotechnology company Regeneron rose nearly 2% in premarket trading on Wednesday, the day after the company said it aims to have doses of a potential drug for COVID-19 ready to start human clinical trials by early summer. The antibody is believed to be a treatment for the virus, as well as a preventative drug. Shares of Regeneron rose more than 11% on Tuesday. – Fitzgerald

7:35 am: Coronavirus cases jump, worrying Wall Street

A spike in coronavirus cases continues to worry investors, who are hoping for government stimulus to offset the economic impacts of the virus. Worldwide coronavirus cases top 200,000 for the first time, according to data compiled by John Hopkins University. Italy has more than 2,500 virus related deaths as of Tuesday evening, the country's health ministry said. Iran's death toll from the coronavirus climbed to 1,135 with 147 new deaths in the past 24 hours, a health ministry official told state TV on Wednesday. The total number of infected people across the country has reached 17,361. Plus, European leaders agreed Tuesday to close the European Union's external borders for 30 days in a new effort to slow the spread of the coronavirus pandemic. Singapore, Hong Kong and Taiwan also reported a rise in cases. France, which has seen a sharp spike in cases in recent weeks, said it could start seeing a slowdown of coronavirus infections in about eight to 12 days following the government's decision to lock down the country, Health Minister Olivier Veran said Wednesday. —Fitzgerald

7:28 am: Gundlach says it's 'ludicrous' to think US won't enter a recession

DoubleLine Capital CEO Jeffrey Gundlach believes there's a 90% chance the United States will enter a recession this year. The "Bond King" said that last week his odds stood at 80%, but that as the coronavirus outbreak continues to halt travel and shutter businesses worldwide, he now places the odds at 90%. Still, Gundlach added that he was incrementally less negative on the market's outlook given the magnitude of the federal government's response. "I think you're supposed to be staying liquid, I think you're supposed to be waiting for opportunities," he said. "We all know that the stock market is down a lot. We know the junk bond market's down a lot. ... Will the market snap back? Of course it will." —Stevens

7:25 am: Dow futures indicate 1,000-point drop

U.S. stock futures tumbled on Wednesday, reaching their so-called limit down level, indicating declines of about 5% for the major averages. Dow Jones Industrial Average futures were down 821 points, indicating a loss of 1,031 points at the open. S&P 500 and Nasdaq 100 futures were also at their downside limit. Investors turned their eyes to the ETFs that track the major averages for a better indication of what the open will look like. The SPDR S&P 500 ETF Trust (SPY) was down 6.4% in the premarket. The SPDR Dow Jones Industrial Average ETF Trust (DIA) traded 6.7% lower while the Invesco QQQ Trust dropped 6.3%. Those losses come after a sharp reversal in Treasury yields unnerved traders as they weighed a potential $1 trillion stimulus package.

With reporting by Tom Franck and Jesse Pound.

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2020-03-18 12:25:26Z
CAIiENhY7nClIUH8yf88y8ZYilMqGQgEKhAIACoHCAow2Nb3CjDivdcCMM_rngY

5 things to know before the stock market opens Wednesday - CNBC

1. Dow set to plunge at open after Tuesday's rebound

U.S. stock futures hit their 5% "limit down" levels, meaning they can't trade any lower Wednesday. However, the exchange-traded funds that track the Dow Jones Industrial Average, S&P 500 and Nasdaq, which have no such curbs, were more than 6% lower. Another volatile night and early morning in the futures comes one day after Wall Street rebounded from its worst day in more than three decades on hopes around Trump administration plans to inject $1 trillion into the U.S. economy to cushion the fallout the coronavirus crisis.

As of Tuesday's close, the Dow was off 28% from its Feb. 12 record high, with the S&P 500 and Nasdaq each down 25% from their Feb. 19 record highs. All three stock measures were firmly in bear markets as defined by declines of at least 20% from recent 52-week highs.

2. White House pushes $1 trillion coronavirus stimulus

Steven Mnuchin, U.S. Treasury secretary, right, speaks beside U.S. President Donald Trump during a Coronavirus Task Force news conference in the briefing room of the White House in Washington, D.C., U.S., on Tuesday, March 17, 2020.

Kevin Dietsch | Bloomberg | Getty Images.

The White House is seeking a coronavirus stimulus package worth anywhere from $850 billion to more than $1 trillion, according to a source familiar with the matter. An administration official said the package could include: $500 billion to $550 billion in direct payments to Americans or tax cuts; $200 billion to $300 billion in small business assistance; and $50 billion to $100 billion in airline and industry relief. Later Tuesday, Treasury Secretary Steven Mnuchin told GOP senators that unemployment could reach 20% if Congress doesn't enact the stimulus package, according to a person familiar with the situation.

3. Coronavirus cases reported in every US state and DC

U.S. coronavirus cases increased to nearly 6,500 with 114 deaths, according to Johns Hopkins University data. The virus has now been detected in all 50 states and Washington, D.C. The number of actual cases in the country is likely significantly higher, according to state and local officials, due to testing delays and a restrictive diagnostic criteria that limited who could get tested. Global cases near 200,000 with 7,955 deaths and almost 82,000 recoveries. Italy has the most cases, about 31,500, and deaths, 2,503, outside China, where the coronavirus originated in December. China's reported infections now make up less than half the cases around the world. China still has the most deaths at 3,241.

4. US automakers look to curtail production

An employee uses a flash grinder to smooth out the metal frame of a sports utility vehicle (SUV) on the production line at the General Motors Co. (GM) assembly plant in Arlington, Texas.

Matthew Busch | Bloomberg | Getty Images

General Motors, Ford and Fiat Chrysler are negotiating with the United Auto Workers union to "review and implement the rotating partial shutdown of facilities" and other additional measures in an attempt to keep workers safe and healthy. The actions are expected to be a compromise between the automakers and union after the UAW's president on Sunday urged a production shutdown for two weeks due to the spread of the coronavirus in the U.S. It appears that Tesla won't be able to keep manufacturing going at its plant in Fremont, California. The sheriff's office of Alameda County, where Fremont is located, tweeted Tuesday night that the electric auto maker's factory is not an "essential business" under the definition of its "shelter in place" order.

5. Biden sweeps Tuesday's primaries

Former Vice President Joe Biden speaks as Florida Democratic gubernatorial nominee Andrew Gillum and U.S. Sen. Bill Nelson (D-FL) listen behind him during a campaign rally held at the University of South Florida Campus Recreation Building on October 22, 2018 in Tampa, Florida.

Joe Raedle | Getty Images

Joe Biden has amassed a nearly insurmountable lead over Sen. Bernie Sanders in race for the Democratic presidential nomination. The former vice president swept Tuesday's three primaries in Florida, Illinois and Arizona. Ohio had also been scheduled to hold its primary Tuesday. But polls there were ordered closed as a public health measure. As of Wednesday morning, Biden had 1,132 delegates. Sanders had 817. A total of 1,991 delegates are need to clinch the Democratic nomination. On the Republican side, President Donald Trump on Tuesday officially secured his party's nomination.

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2020-03-18 10:46:49Z
52780669187879

Global stocks drop as investors shun risk on coronavirus fears - Reuters

TOKYO (Reuters) - U.S. stock futures and several Asian shares fell in choppy trade on Wednesday, as worries about the coronavirus pandemic eclipsed hopes broad policy support would combat the economic fallout of the outbreak.

FILE PHOTO: A passerby wearing a protective face mask, following an outbreak of the coronavirus, walks past an electronic board showing the graphs of the recent movements of Japan's Nikkei share average outside a brokerage in Tokyo, Japan March 6, 2020. REUTERS/Issei Kato

Most traditional safe-haven assets were also under pressure as battered investors looked to unwind their damaged positions, leading to wide discrepancies between various markets.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3%, led by a 4.9% fall in Australia while Japan’s Nikkei gained 1.6%.

U.S. stock futures fell 3% in Asia, a day after the S&P 500 rose 6% and Dow Jones rose 5.2% or 1,049 points.

“A rise of 1,000 points in Dow is something you see only during a financial crisis. It is not a good sign,” said Tomoaki Shishido, senior fixed income strategist at Nomura Securities.

“A rise of 100 points would much better for the economy.”

Wild swings in markets imply the capacity of various players, from speculators to brokerages, to absorb risks has been tormented, analysts say.

The increase in the S&P 500 futures the previous day, still down more than 10% so far this week, came as policymakers cobbled together packages to counter the impact of the virus.

The Trump administration on Tuesday unveiled a $1 trillion stimulus package that could deliver $1,000 cheques to Americans within two weeks to buttress an economy hit by coronavirus while many other governments look to fiscal stimulus.

“That would be bigger than a $787 billion package the Obama administration came up with after the Lehman crisis, so in terms of size it is quite big,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

“Yet stock markets will likely remain capped by worries about the spreading coronavirus,” he said.

Britain unveiled a 330 billion pounds ($400 billion) rescue package for businesses threatened with collapse while France is to pump 45 billion euros ($50 billion) of crisis measures into its economy to help companies and workers.

Still, forecasters at banks are projecting a steep economic contraction in at least the second quarter as governments take draconian measures to combat the virus, shutting restaurants, closing schools and calling on people to stay home.

The U.S. Federal Reserve stepped in again on Tuesday to ease funding stress among corporates by reopening its Commercial Paper Funding Facility to underwrite short-term corporate loans.

“While markets react to positive news on stimulus, that doesn’t last long. I think there are a lot of banks and investors whose balance sheet was badly hit and they still have lots of positions to sell,” said Shin-ichiro Kadota, senior currency and rates strategist at Barclays.

BOND AND CURRENCIES

The damage to markets was apparent in bond markets as well.

U.S. Treasuries extended their losses, driving the benchmark 10-year yield to 1.009%. It hit a two-week high of 1.105% in the previous day, rising more than 30 basis points.

“The staggering thing is, bonds have fallen even as the Fed has been buying 40 billion dollars of bonds every day. That far outpaces the Fed’s previous episodes of quantitative easing and shows just how much selling pressure there is now,” said Nomura’s Shishido.

Some market players said talk of big stimulus is raising concerns about the long-term outlook of U.S. fiscal health, putting pressure on long-term U.S. government bonds.

The spread between 30-year and five-year yields rose to almost 1%, the highest since September 2017.

The U.S. 30-year bonds yield jumped 38 basis points on Tuesday to 1.648%.

In the currency market, a shortage of dollar cash supported the U.S. currency.

The Australian dollar bounced back to $0.6008 after having hit a 17-year low of low of $0.5958 the previous day.

The kiwi recovered to $0.5955 after hitting a 11-year trough of $0.5919. [FRX/]

The dollar held firm against most currencies but dipped 0.25% against the safe-haven yen to 107.28 yen.

The euro was steady at $1.1004.

U.S. benchmark oil futures sank to near their 2016 trough of around $26 per barrel on prospects of slow demand and a Saudi-instigated price war.

Editing by Jane Wardell and Himani Sarkar

Our Standards:The Thomson Reuters Trust Principles.

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2020-03-18 10:03:14Z
CAIiEHrrBqqxnHucuG5CYlP7ge4qFAgEKg0IACoGCAowt6AMMLAmMOpn

Global stocks drop as investors shun risk on coronavirus fears - Reuters

LONDON/TOKYO (Reuters) - Global stocks stumbled back into the red on Wednesday with Wall Street futures pointing to more losses ahead as fears over the coronavirus fallout eclipsed large-scale support measures rolled out by policymakers around the globe.

Some traditional safe-haven assets such as gold were also under pressure as battered investors looked to unwind their damaged positions.

Oil prices fell for a third session with U.S. crude futures tumbling to a 17-year low.

“Another remarkable day in what is clearly fin-de-regime,” Rabobank’s global strategist Michael Every wrote in a note.

“Things have already irrevocably changed and whipsaw market action reflects that this is the case. The only issue is how much further they change from here, and hence where markets settle.”

European equity markets suffered hefty losses with London and Frankfurt down 3.5% in early trade while Paris and Milan slipped around 3%.

The falls in Europe followed losses in Asia where MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 3.8% to lows last seen in summer 2016, led by a 6.4% fall in Australia. Japan’s Nikkei erased early gains to dip 1.7%. MSCI’s global stocks index dropped 1%.

Losses were set to extend to Wall Street with U.S. stock futures indicating as much as 4% lower and hitting their daily low limit just a day after the S&P 500 rose 6% and Dow Jones rose 5.2% or 1,049 points. [.N]

“A rise of 1,000 points in Dow is something you see only during a financial crisis. It is not a good sign,” said Tomoaki Shishido, senior fixed income strategist at Nomura Securities.

“A rise of 100 points would be much better for the economy.”

Big price swings have left market participants nursing losses, making them reluctant to jump back into the market and thereby reducing trading volume.

Tuesday’s Wall Street gains came as policymakers cobbled together packages to counter the impact of the virus.

The Trump administration unveiled a $1 trillion stimulus package that could deliver $1,000 cheques to Americans within two weeks to buttress a virus-stricken economy.

Britain launched a 330 billion pounds ($400 billion) rescue package for businesses threatened with collapse while France, which went into lockdown on Tuesday, is to pump 45 billion euros ($50 billion) of crisis measures into its economy to help companies and workers.

Still, forecasters at banks are projecting a steep economic contraction in at least the second quarter as governments take draconian measures to combat the virus, shutting restaurants, closing schools and calling on people to stay home.

Tuesday saw also the U.S. Federal Reserve step in again to ease funding stress among corporates by reopening its Commercial Paper Funding Facility to underwrite short-term corporate loans.

“While markets react to positive news on stimulus, that doesn’t last long. I think there are a lot of banks and investors whose balance sheet was badly hit and they still have lots of positions to sell,” said Shin-ichiro Kadota, senior currency and rates strategist at Barclays.

CORONA BONDS

In Europe, speculation grew around the issuance of joint euro zone “coronavirus” bonds or a European guarantee fund to help member states finance urgent health and economic policies.

That lifted high-grade euro zone government bonds yield, led by Germany, where yields rose nine basis points to the highest level in over a month at -0.342%. [GVD/EU]

Italian government bonds gained some respite after several sessions of relentless selling, with yields falling between two and six basis points across the curve.

Benchmark U.S. 10-year Treasury yield edged up to a fresh three week high of 1.2080 after the Fed move eased some market jitters, while U.S. 30-year bond yields climbed as high as 1.8380%.

In currency markets, the safe-haven yen gained sharply while the dollar held onto hefty overnight gains against other currencies. [FRX/]

FILE PHOTO: A passerby wearing a protective face mask, following an outbreak of the coronavirus, walks past an electronic board showing the graphs of the recent movements of Japan's Nikkei share average outside a brokerage in Tokyo, Japan March 6, 2020. REUTERS/Issei Kato

The dollar slipped 0.1% against the yen to 107.53 yen while the euro stood at $1.0971. The dollar index against a basket of currencies stood at 99.699, up 0.12% on the day.

Oil prices fell as the outlook for fuel demand darkened with travel and social lockdowns triggered by the coronavirus epidemic.

U.S. crude was down 84 cents, or 3.12%, at $26.11 a barrel by 0822 GMT, having earlier fallen to $25.83 a barrel, the lowest since May 2003. [O/R]

Reporting by Karin Strohecker in London and Hideyuki Sano in Tokyo; Editing by Toby Chopra

Our Standards:The Thomson Reuters Trust Principles.

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2020-03-18 09:33:06Z
CAIiEHrrBqqxnHucuG5CYlP7ge4qFAgEKg0IACoGCAowt6AMMLAmMOpn

Global Markets Fall as Alarm Persists: Live Updates - The New York Times

Here’s what you need to know:

• Global markets slump as investor unease persists.
• Wall Street rallies as Washington details spending plans.
• Mnuchin warns that unemployment could approach 20 percent without government help.
• The White House is seeking ways to use smartphone location data in its virus response.

The international cargo terminal at the port of Tokyo on Wednesday.Credit...Kazuhiro Nogi/Agence France-Presse — Getty Images

Global markets slump as investor unease persists.

Global markets fell sharply on Wednesday after a big Tuesday rally on Wall Street, as persistent worries about the world economy overcame hopes for a dramatic stimulus package from Washington.

Major European markets opened at least 3 percent lower, following a late-day slump in Asian shares. Futures for oil and gold fell, as did bond prices, signaling investors continued to retreat from a broad array of markets.

Futures markets signaled Wall Street would open sharply lower on Wednesday, too.

The significant drops represented a broad shift in sentiment on Wall Street from just hours earlier, when the White House called for urgent action to pump $1 trillion into the economy. The S&P stock index rose 6 percent on Tuesday.

Asian markets rose initially on Wednesday, but investors couldn’t sustain the momentum. Late in the day, the losses accelerated.

Australia’s S&P/ASX 200 index led the losses with a 6.4 percent drop. In South Korea, the Kospi index fell 4.9 percent. Hong Kong’s Hang Seng Index was down 4.2 percent.

In Japan, Tokyo’s Nikkei 225 index started up but ended 1.7 percent lower.

In mainland China, the Shanghai Composite Index fell 1.8 percent.

In early European trading, Germany’s DAX index opened 3.8 percent lower. London’s FTSE 100 index was down 3.7 percent. In France, the CAC 40 index was 2.6 percent lower.

Wall Street rallies as Washington details spending plans.

After suffering their worst day in decades, stocks bounced back on Tuesday as Washington policymakers talked up plans to try to cushion an economy careening toward a deep recession driven by the coronavirus outbreak.

The S&P 500 rose 6 percent, rebounding from a 12 percent collapse on Monday, which was its steepest drop since 1987.

Get an informed guide to the global outbreak with our daily coronavirus newsletter.

Still, even if the financial system functions well, a daunting economic challenge continues to face the American economy, as the spread of the coronavirus forces federal, state and local officials to take simultaneous actions that will cut consumer spending. Such spending accounts for roughly 70 percent of American gross domestic product.

Even as stocks gained, the trading on Tuesday reflected some of these concerns. The best performing parts of the market were traditionally defensive areas, such as the utilities and consumer staples, where investors typically hide out during trying economic times. Oil prices also fell.

Mnuchin warns that unemployment could approach 20 percent without government help.

Treasury Secretary Steven Mnuchin warned Republican senators on Tuesday that the unemployment rate in the United States could approach 20 percent without the intervention of robust economic stimulus measures, according to people familiar with the discussion.

The comments came while Mr. Mnuchin was making the White House’s pitch to lawmakers to back a $1 trillion fiscal stimulus package that would include $250 billion of checks being sent to Americans suffering from the fallout of the coronavirus epidemic.

Mr. Mnuchin said that the jobless rate could go up by 5, 10 or 15 percentage points if there is no intervention, according to two people familiar with his comments. The jobless rate currently sits at 3.5 percent.

Monica Crowley, a spokeswoman for Mr. Mnuchin, said that the Treasury secretary’s comments were not a projection and that because Congress was taking additional action, he did not believe the unemployment rate would reach 20 percent.

“During the meeting with Senate Republicans today, Secretary Mnuchin used several mathematical examples for illustrative purposes, but he never implied this would be the case,” Ms. Crowley said in a statement.

Since World War II, the United States has never seen unemployment rise above 11 percent, the level it nearly reached in the recession of the early 1980s. It reached 10 percent, briefly, during the 2008 financial crisis.

The White House is seeking ways to use smartphone location data in its virus response.

The Trump administration has spoken with large technology companies about how their access to geolocation data from smartphones can aid in the response to the coronavirus pandemic.

At a recent meeting, a group of tech companies discussed the use of anonymous, aggregated geolocation data to respond to the spread of the virus with the White House and other administration officials, according to two people with knowledge of the matter. They also discussed how that would intersect with user privacy, the people said.

The Centers for Disease Control asked during the meeting about the prospect of using the data to track demand for hospitals around the country, which are expected to be deluged by patients, one of the people said. The conversations were first reported by The Washington Post.

Facebook has also discussed with the U.S. government the maps it produces to track disasters using satellite and census data, said a company spokesman, Andy Stone. It is also working to provide nonprofit groups — which can work with local, state and federal authorities — with a second set of mapping tools that use smartphone location data that Facebook users can choose to share.

The possible use of geolocation data raises questions about user privacy, especially as policymakers are increasingly asking about the power of major tech companies like Amazon, Facebook and Google.

But analysis of aggregated data would be different from aggressive measures to track individual patients using their phones. In Israel, for example, the government has moved to use cellphone data to retrace the steps of virus patients.

Reporting and research were contributed by David McCabe, Cecilia Kang, Alan Rappeport, Nicholas Fandos, Jim Tankersley, Carlos Tejada and Daniel Victor.

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2020-03-18 09:00:21Z
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No blank check for airlines seeking coronavirus aid after spending $39 billion on stock buybacks, unions say - CNBC

The more than $50 billion in government aid U.S. airlines are seeking as the coronavirus ravages their businesses must include worker and consumer protections, some lawmakers and labor unions said.

Airlines are reeling from what executives have called an unprecedented collapse in travel demand as COVID-19 spreads, prompting millions of Americans to stay at home. More than 5,000 cases of coronavirus have been detected so far in the United States, according to Johns Hopkins University. 

As a result airlines are culling thousands of flights, parking airplanes, deferring orders and asking workers to take unpaid leave in a bid to preserve cash. U.S. airlines employ close to 750,000 people.

Their requested aid includes $25 billion in direct grants — five times more than what airlines received following the Sept. 11, 2001, attacks — and is crucial for the carriers, their lobbying group, Airlines for America, said.

Congress has just begun negotiations around a third emergency funding bill to address the pandemic. The bill is expected to include some form of industry aid, as well as protections for individuals and companies battling the virus.

Labor unions and lawmakers say that while the carriers didn't cause the dire situation they're now in, they shouldn't get a blank check. 

"We have told Congress that any funds for the aviation industry must come with strict rules," said Sara Nelson, president of the Association of Flight Attendants, which represents some 50,000 cabin crews at United, Alaska, Spirit and others. "That includes requiring employers across aviation to maintain pay and benefits for every worker. No taxpayer money for CEO bonuses, stock buybacks or dividends. No breaking contracts through bankruptcy."

Rep. Jan Schakowsky, D-Ill., on Monday tweeted her support of the framework laid out by Nelson.

The four biggest U.S. carriers — Delta, American, Southwest and United — have collectively spent about $39 billion over the last five years buying back shares, according to a tally from S&P Dow Jones Indices. Those carriers' shares are now trading at multiyear lows. Boeing, which is also seeking government aid, spent more than $35 billion in that period.

"We fully recognize that the company had the opportunity to build up its cash reserves and repeatedly advocated for them to do so," wrote Todd Insler, chairman of the union that represents United's pilots, the Air Line Pilots Association. "In spite of ALPA's warnings, they instead chose to spend company resources differently.

"In the future, there will be a time for a reckoning, blame, and restitution — I assure you of that. For now, we need management to focus on the enterprise, and we need to work together to survive," he said.

Larry Willis, president of the Transportation Trades Department, an umbrella group of 33 unions in the sector, notes that workers were hit with layoffs after the 9/11 bailouts and that it took years for the sector to recover.

"Lawmakers must ensure bailout and stimulus funds flow to working families, and collective bargaining rights need to be preserved and respected,"  he said. "Front-line workers, including those in the aviation sector, need to know they are supported by policies that will put their families first and position our country to flourish once this crisis passes."

Lawmakers are also seeking that airlines protect workers and consumers. Airlines have increased fees to change tickets and check bags, and also added new ones such as seat selection for standard legroom, drawing ire from some lawmakers.

Sen. Edward Senator Markey, a Massachusetts Democrat, said that "any infusion of money to the airlines must have some major strings attached," which include protections for front-line airline employees like flight attendants, pilots and airport workers. It must also come with new rules to "prohibit consumer abuses like unfair change and cancellation fees," which can run $200 or more.

Congress should ensure workers and businesses receive relief on a "broad and equitable basis," said Sen. Tom Udall, a New Mexico Democrat. "While the travel and tourism industries are important to New Mexico, economic relief should be focused on keeping workers and their families in their homes with enough support for their daily needs. Any economic relief should be contingent on the benefits flowing to workers and their families, not CEOs and shareholders."

Other travel companies are also talking with White House officials, including Vice President Mike Pence, about the drop in bookings. The U.S. Travel Association, whose members include giants like Hilton, Hyatt, Marriott and retailers like Macy's, are meeting with White House officials about the financial damage from the coraonvirus crisis. They estimate a loss of $1.4 billion in revenue every week and that 1 million hotel jobs have been eliminated or will be because of the drop in bookings.

Correction: Sen. Tom Udall is a New Mexico Democrat. An earlier version misidentified his state.

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2020-03-17 17:00:39Z
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