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FINANCIAL MARKETS
Stocks down 5% at midday
WASHINGTON (AP) — Stocks have been down nearly 5% in midday trading on Wall Street as investors wait for Democrats and Republicans to settle their differences and pass a rescue package for the economy.
Earlier, U.S. stock futures and European markets got a bump higher following the Federal Reserve's latest massive announcement of support. The Fed said it would buy as much government debt as it deems necessary to help markets operate smoothly. But the gains quickly vanished.
Markets are likely to remain extremely volatile as long as the coronavirus outbreak accelerates. Until then, investors are looking for both central banks and governments to do their parts to support the economy.
VIRUS OUTBREAK-FEDERAL RESERVE
Fed removes limits from its plan to support flow of credit
WASHINGTON (AP) — In its boldest effort to protect the U.S. economy from the coronavirus, the Federal Reserve says it will buy as much government debt as it deems necessary and will also begin lending to small and large businesses and local governments to help them weather the crisis.
The Fed's announcement removes any dollar limits from its plans to support the flow of credit through an economy that has been ravaged by the viral outbreak.
The central bank's all-out effort has now gone beyond even the extraordinary drive it made to rescue the economy from the 2008 financial crisis.
In a statement, the Fed said, “The coronavirus pandemic is causing tremendous hardship across the United States and around the world."
VIRUS OUTBREAK-TRUMP
WASHINGTON (AP) — President Donald Trump is expressing qualms about extending the current 15-day shutdown recommended by the federal government, even as his officials warn that the coronavirus crisis is deepening.
He tweeted Monday that the remedies may be more harmful than the outbreak. That contradicts the advice of medical experts across the U.S.
On Sunday, Vice President Mike Pence said the country should expect new federal guidance “which will make it possible for people that have been exposed to return to work more quickly” by wearing masks.
VIRUS OUTBREAK-CONGRESS
Negotiations continue on rescue package
WASHINGTON (AP) — Congress and the White House are negotiating a nearly $2 trillion rescue package of healthcare and economic aid amid the coronavirus outbreak and national shutdown.
No final decisions have been made. But the emerging package is expected to include one-time emergency checks plus payroll support for American workers, loans to industry and money for health care providers, emergency food programs and other public health needs.
Negotiations are continuing on the details.
GERMANY-ECONOMY
German government approves virus aid plan
BERLIN (AP) — The German government has approved a massive new package of measures to cushion the devastating effects of the virus outbreak on the economy.
The move brings the total aid on offer to more than $1.1 trillion.
The assistance includes money to tide small companies and individual entrepreneurs through the closures that have frozen business activity, and to pump capital into bigger companies where needed.
The new measures massively bolster a previous pledge of at least $492 billion in loan guarantees to help Europe’s biggest economy handle the fallout of running down public life to a minimum.
VIRUS-AUSTRALIA
Australian parliament passes stimulus measures
CANBERRA, Australia (AP) — Australia’s Parliament has passed $48.4 billion in economic stimulus measures to dampen the impact of the coronavirus.
A scaled-down Parliament passed the legislation in a single day on Monday. Dozens of lawmakers have been excused from attending to reduce the chances of spreading COVID-19.
A fourth lawmaker announced on Monday he had contracted the disease.
Australia has more than 1,700 confirmed cases in a population of 25 million and seven people have died with the respiratory illness.
CALIFORNIA WILDFIRES-UTILITY
PG&E to plead guilty
SAN FRANCISCO (AP) — Pacific Gas & Electric has agreed to plead guilty to 84 counts of involuntary manslaughter in connection with the 2018 Northern California wildfire that killed 84 people and decimated three towns.
The utility says in a statement that it will also admit to a single count of unlawfully starting a fire.
Under a plea agreement with the Butte County district attorney’s office, PG&E will pay the maximum fine of about $4 million. The company will also fund efforts to restore access to water for the next five years for residents impacted by the loss of a canal destroyed by the fire.
SUPREME COURT-BLACK TV NETWORK
Court throws out ruling in favor of Byron Allen
WASHINGTON (AP) — The Supreme Court has thrown out a lower court ruling in favor of a black media mogul and comedian who’s suing cable giant Comcast alleging racial discrimination.
The justices agreed unanimously Monday an appeals court applied the wrong legal standard in allowing business owner Byron Allen’s $20 billion lawsuit against Comcast to go forward. Allen has a $10 billion lawsuit against Charter Communications that the justices' decision also affects.
Philadelphia-based Comcast says it's pleased with the court's decision. Comcast has said it declined to carry Allen's television channels because the programming isn’t very good.
Allen’s Los Angeles-based Entertainment Studios has several networks including Cars.tv and Comedy.tv. Allen also owns The Weather Channel.
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