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FINANCIAL MARKETS
Stocks post gains amid continued uncertainty
NEW YORK (AP) — Stocks are higher on Wall Street Monday, led by health care companies. The S&P 500 was up more than 2% in midday trading.
European markets were mixed after erasing earlier losses. Asian indexes fell, but not nearly as much as they have in the brutal swings that have rocked investors over the last month.
The price of oil fell 5% to $20 a barrel, and Treasury yields fell.
Trading was hesitant around the world as investors try to assess whether global authorities can do enough to nurse the economy through the damage caused by the coronavirus outbreak.
VIRUS OUTBREAK-MACY’s-FURLOUGHS
Macy’s will furlough most employees
NEW YORK (AP) — Macy's is furloughing a majority of its 130,000 workers beginning this week as its sales have collapsed because of the pandemic.
The company says that it will be moving to an ‘’absolute minimum workforce" needed to maintain basic operations. It says there will be fewer furloughs in its online operations.
At least through May, furloughed colleagues who are enrolled in health benefits will continue to receive coverage with the company covering 100% of the premium.
VIRUS OUTBREAK-CORPORATE AID
Questions raised about potential abuses of aid package
WASHINGTON (AP) — A $500 billion federal aid package for companies and governments hurt by the coronavirus includes rules aimed at ensuring that the money is used in ways that would help sustain the economy.
But questions are being raised about whether those guardrails will prevent the kinds of abuses that have marked some corporate bailouts of the past.
In return for the emergency loans, which could be spun by the Federal Reserve into up to $4.5 trillion, companies will face temporary limits on what they can pay executives. They’ll also need to keep their workforces stable or at least not lay off more than 10% for several months. And they’ll face restrictions on stock buybacks and dividend increases.
Yet loopholes may lurk in the legislation.
VIRUS OUTBREAK-CANADA
Canada offers 75% wage subsidy
TORONTO (AP) — Canada is effectively nationalizing many private payrolls by offering businesses large and small a 75% wage subsidy for their employees amid the coronavirus pandemic.
Prime Minister Justin Trudeau says businesses that have seen a 30% decrease in revenue are eligible. The prime minister says the government will cover up to 75% of salary on the first 58,700 Canadian dollars earned.
Trudeau did not put put a price tag on it or say how long it would last but he called it a bridge to better times.
VIRUS OUTBREAK-BRITAIN-AIRLINES
British government in coronavirus partnership with airlines
LONDON (AP) — The British government has formed a partnership with airlines to repatriate tens of thousands of Briton stranded around the world as a result of the coronavirus pandemic.
Foreign Secretary Dominic Raab said at the government's daily briefing that those people who are still able to board commercial flights should book their tickets as soon as possible.
“Don't run the risk of getting stranded,” he said.
Where there are not any commercial options because of the virus-related lockdown measures put in place around the world, Raab said the government will provide up to 75 million pounds ($93 million) of financial support to enable special charter flights — operated by British Airways, Virgin Atlantic, easyJet, Jet2 and Titan Airways — to fly stranded travelers back.
VIRUS OUTBREAK-RENT STRIKE
Rent strike idea gaining steam during coronavirus crisis
ST. LOUIS (AP) — With millions of people suddenly out of work and rent due at the first of the month, some tenants are vowing to go on a “rent strike” until the coronavirus pandemic subsides.
Many cities have temporarily banned evictions, but strike advocates are demanding that rent payments be waived, not delayed, for those in need.
White sheets are being hung in apartment windows to show solidarity with the movement that is gaining steam on social media sites. Fliers urging people to participate are being posted in several cities.
Strike opponents warn that not paying rent could lead to eviction and damage credit scores.
PENDING HOME SALES
Home contracts were higher before virus surge
BALTIMORE (AP) — Americans signed more contracts in February to buy homes, but the gains are likely relics of a moment before the coronavirus outbreak sent the U.S. economy spiraling into a likely recession.
The National Association of Realtors said Monday that its pending home sales index, which measures the numbers of purchase contracts signed, rose 2.4% in February from the prior month to 111.5.
But the outlook has deteriorated rapidly over the past month, as millions of Americans are losing their jobs and monthly rental and mortgage payments are becoming difficult to manage.
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