Update on the latest business

FINANCIAL MARKETS

Stock trading is halted again as S&P 500 index drops 7%

NEW YORK (AP) — Stocks fell 7% on Wall Street and triggered another temporary halt to trading as fears spread that the coronavirus is causing a global recession.

The Dow Jones Industrial Average has lost all its gains since President Donald Trump's inauguration. The S&P 500, which dictates how 401(k) accounts perform much more than the Dow, is down more than 30% from its record set last month.

The price of crude oil dropped more than 15% as traders anticipate a sharp pullback in demand for energy. Even prices for longer-term U.S. Treasurys, which are seen as some of the safest possible investments, fell as investors sold what they could to raise cash. The sharp market swings came despite promises from Trump to prop up the U.S. economy with a package that could reach $1 trillion.

European markets closed with heavy losses Wednesday on concerns that the coronavirus outbreak will cause even more lockdowns on businesses around the world and put large numbers of people out of work. France's CAC 40 dropped 5.9%. Planemaker Airbus took a 22% plunge on concerns that airlines struggling with the near-complete shutdown of air travel will slow down purchases. Britain's FTSE 100 fell 4.1% and Germany's DAX lost 5.6%. The British pound fell 4.4% against the dollar to levels not seen since the mid-1980s on speculation the country might face a lockdown as severe as those seen in Italy and Spain.

VIRUS OUTBREAK-WASHINGTON

Trump invokes act to marshal private sector against virus

WASHINGTON (AP) — Donald Trump now is calling himself a “wartime president” as he tries to come to grips with the dual health and economic crises of the coronavirus pandemic.

On Wednesday he said he's invoking a federal provision that allows the government to marshal the private sector in response to the pandemic. Trump said he will employ the Defense Production Act “in case we need it" as the government bolsters resources for an expected surge in cases of the virus.

The announcement came on a fast-moving day of developments. The Senate is taking up a financial aid package while the administration pushes forward its economic relief plan.

The Treasury Department wants to start issuing direct payments to Americans by early next month as the centerpiece of a $1 trillion plan to stabilize the economy amid the coronavirus epidemic.

In a memorandum issued Wednesday, Treasury is calling for two $250 billion cash infusions to individuals: A first set of checks issued starting April 6, with a second wave in mid-May. The amounts would depend on income and family size.

The Treasury plan, which requires approval by Congress, also recommends $50 billion to stabilize the airlines, $150 billion to issue loan guarantees to other struggling sectors, and $300 billion to for small businesses.

VIRUS OUTBREAK-BUSINESS FALLOUT

Travel grinds to a halt, plants close, as virus takes hold

UNDATED (AP) — Manufacturers are shutting down plants in Europe and in the United States in a bid to limit the spread of the coronavirus, or because the demand for goods is evaporating in the pandemic.

The governor of Hawaii is asking visitors to stay away for at least a month. In Nevada, the governor shut down all casinos for at least 30 days.

President Donald Trump says the U.S. and Canada have agreed to temporarily close their shared border to nonessential travel due to the pandemic. And two administration officials say the U.S. is considering turning back all people who cross illegally from Mexico into the United States.

Canadian Prime Minister Justin Trudeau says travelers will no longer be able permitted to cross the border for recreation or tourism, but that essential travel will continue.

Trump tweeted that the restrictions on the Canadian border will not affect the flow of trade between the countries. Canada relies on the U.S. for 75% of its exports and about 18% of American exports go to Canada.

DETROIT AUTOMAKERS-FACTORY SHUTDOWNS

AP Sources: Detroit automakers to shut down factories

DETROIT (AP) — Detroit's three automakers have agreed to close all their factories due to worker fears about the coronavirus, according to two people briefed on the matter.

The move by General Motors, Fiat Chrysler and Ford will idle about 150,000 auto workers.

Automakers are expected to release details of the closure later in the day. The United Auto Workers union has been pushing for factories to close because workers are fearful of coming into contact with the virus.

The decision reverses a deal worked out late Tuesday in which the automakers would cancel some shifts so they could thoroughly cleanse equipment and buildings, but keep factories open. But workers, especially at some Fiat Chrysler factories, were still fearful and were pressuring the union to seek full closures.

Fiat Chrysler temporarily closed a factory in Sterling Heights, Michigan, north of Detroit after workers were concerned about the virus. The company said a plant worker tested positive for the coronavirus but had not been to work in over a week. One shift was sent home Tuesday night and the plant was cleaned. But that apparently didn't satisfy workers, and two more shifts were canceled on Wednesday.

Honda Motor Co. announced Wednesday that it will temporarily close its North American factories for about one week starting on Monday.

VOLVO RECALL

Volvo recalls vehicles to fix automatic braking malfunction

DETROIT (AP) — Volvo is recalling more than 736,000 vehicles worldwide because the automatic emergency braking system may not detect obstacles and stop the vehicles as designed.

The recall covers certain 2019 and 2020 S60, V60, S90L and V90 models.

The company says in government documents that a software-hardware incompatibility glitch causes the problem. If the system doesn’t work as intended, it can increase the risk of a crash, Volvo said in documents posted Wednesday on the National Highway Traffic Safety Administration website.

The company says it has no reports of crashes or injuries. In a statement Wednesday, Volvo says forward collision warning systems will work as designed, but there's a very small risk in certain environments and temperatures that the automatic braking system won't function properly.

Volvo will notify owners and dealers will update the software at no cost to customers. The recall is expected to start May 1 in the U.S., according to government documents.

HOME CONSTRUCTION

New US home construction dips again in February

WASHINGTON (AP) — Construction of new homes fell again in February, but not as much as the previous month. Those declines follow a December surge which had pushed home construction to the highest level in 13 years.

Builders started construction on 1.60 million homes at a seasonally adjusted annual rate, a decline of 1.5% from 1.62 million units in January, the Commerce Department reported Wednesday. Analysts had expected a more significant drop. The economic impact of the coronavirus outbreak was not apparent in the February numbers.

Application for building permits, considered a good sign of future activity, fell 5.5% in February to an annual rate of 1.46 million units. However, permits for single-family home construction rose 1.7%.

APPLE-NEW DEVICES

Apple brings PC-like trackpad to iPad tablets

NEW YORK (AP) — Apple’s new iPad brings PC-like trackpad capabilities for the first time, as the company seeks to make its tablet even more like a laptop computer.

Apple says the trackpad will offer more precision than fingers in selecting text and switching between apps.

Older iPads will also be able to get trackpad capabilities with a free software update, but some will require keyboards from third parties. For the iPad Pro, Apple is releasing a “magic keyboard” with a trackpad in May starting at $299. The tablet itself starts at $799, while an Apple Pencil stylus costs another $129, bringing the combined cost closer to that of a Mac laptop.

Apple also announced a new MacBook Air computer with a starting price of about $1,000, down $100.

The new iPad Pro and MacBook Air will be available in stores starting next week, though Apple’s own retail stores in most of the world remain closed because of the coronavirus outbreak.

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