Dow sinks, Trump offers August timeline

[ad_1]

This is CNBC’s live blog covering all the latest news on the coronavirus outbreak. All times below are in Eastern time. This blog will be updated throughout the day as the news breaks. 

  • Global cases: More than 181,000, according to Johns Hopkins University.
  • Global deaths: At least 7,113, according to Johns Hopkins University.
  • US cases: At least 4,281, according to Johns Hopkins University.
  • US deaths: At least 74, according to Johns Hopkins University.

5:15 pm: Regal to close all 542 movie theaters in the US

Regal, a subsidiary of Cineworld, said that starting Tuesday it would close all its 542 movie theaters to the public.”Any time, at any Regal, it’s our goal to provide a safe and healthy environment for our employees and guests,” Mooky Greidinger, Cineworld CEO, said in a statement. “At this time, we have made the difficult decision to close our theatres. We value our movie-loving customers and have no doubt we will be serving them again as soon as possible with a full slate of Hollywood blockbusters.” The company did not provide a timeline for when theaters would reopen. —Sarah Whitten

5 pm: Morgan Stanley: Coronavirus relief does not have the ‘moral hazard’ of financial crisis rescue

The U.S. government is better suited to respond swiftly to the coronavirus than it was to the 2008 financial crisis, Morgan Stanley’s Michael Zezas told CNBC on Monday.

“Unlike the financial crisis, there really isn’t much of a moral hazard issue here,” the bank’s head of U.S. public policy research said on “Squawk on the Street.” “You’re not sort of rescuing folks from making poor decisions from themselves.” —Kevin Stankiewicz

4:50 pm: What you need to know about the government’s break for student loan borrowers amid the coronavirus

Amid the bad news piling up from COVID-19, one positive development emerged on Friday: Interest on federal student loans would be waived until further notice.

That’s never happened before and is an acknowledgment by the government of how tightly this pandemic could squeeze Americans’ finances. Over the last decade, the average interest rate on federal student loans has been around 5.5%, according to higher education expert Mark Kantrowitz. Meanwhile, the typical monthly student loan bill is close to $400. —Annie Nova

4:40 pm: Fed rate cut lowers interest rates to near zero—but how much are you really saving on your credit card debt?

The Federal Reserve Board announced an emergency rate cut on Sunday, March 15, lowering interest rates to near zero. This rate cut comes less than two weeks after the Fed cut interest rates by half a point and marks continued effort to minimize the economic impact of the coronavirus.

“The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent,” the Fed said in a statement.

The latest Fed rate cut lowers interest rates by 100 basis points, compared to 50 basis points from the March 4 rate cut. This will likely cause a 1% decrease in interest rates on many financial products, such as credit cards, mortgages, loans, savings accounts and more.

But how much does a 1% rate cut really save you on existing debt? CNBC Select did the math and explains the effect that the Fed’s emergency rate cut has on your credit card interest rates. —Alexandria White

4:30 pm: More California counties urge residents to stay home

Public health officers from six Bay Area Counties, including San Francisco, Santa Clara, San Mateo, Marin, Contra Costa and Alameda counties, signed on to support San Francisco Mayor London Breed’s order to encourage residents to stay home. 

“We know these measures will significantly disrupt people’s day to day lives, but they are absolutely necessary,” Breed said. “This is going to be a defining moment for our city and we all have a responsibility to do our part to protect our neighbors and slow the spread of this virus by staying at home unless it is absolutely essential to go outside.”

Across the state of California, there are more than 470 confirmed cases, according to Johns Hopkins University. The Bay Area’s collective confirmed cases is more than half of California’s total case count, the counties said in a statement. —Will Feuer

4:20 pm: Amazon to hire 100,000 warehouse and delivery workers to keep up with demand surge

Amazon is hiring an additional 100,000 employees in the U.S. to meet the surge in demand of online shopping amid the coronavirus outbreak, the company said.

The company is looking to add extra warehouse and delivery workers. It will raise pay for these employees by $2 per hour in the U.S., £2 per hour in the UK, and approximately €2 per hour in many EU countries. Amazon currently pays $15 per hour or more in some areas of the U.S. —Annie Palmer

4:07 pm: CDC confirms first known employee infected with coronavirus

The Centers for Disease Control and Prevention said an employee of the agency tested positive for the coronavirus, the first known employee with the respiratory disease.

The CDC said the employee was not involved in the agency’s COVID-19 response efforts and has not been present in the CDC workplace since March 6. The patient is in good condition and is isolated to prevent the spread of the infection to others.

“CDC is considering and taking all necessary actions to further protect the health and safety of our workforce,” the agency said in a statement. “Our best wishes go to the employee for a rapid and full recovery.” —Berkeley Lovelace

4:02 pm: Dow closes nearly 3,000 points down 

The Dow Jones Industrial Average ended trading nearly 3,000 points down, marking the worst day since the 1987 financial crisis. Major stock averages extended losses late in the session after President Donald Trump said the coronavirus crisis in the U.S. could extend into August. He also told reporters the U.S. “may be” heading into a recession. —Sara Salinas, Fred Imbert

3:49 pm: Department of Defense separates two high-ranking officials

The Department of Defense announced it will keep the two highest-ranking officials, Secretary Mark Esper and deputy David Norquist, in the Pentagon physically separated from each other as a precaution to prevent the spread of coronavirus.

The Pentagon reservation employs more than 22,000 people making it one of the largest office buildings in the world.

Currently, there are 37 known cases of COVID-19 within the Department of Defense: 18 active-duty service members, three civil servants, 13 dependents and three contractors. —Amanda Macias

3:41 pm: Dow plunge reaches 11% 

3:35 pm: Trump admits that coronavirus crisis could stretch into July or August

U.S. President Donald Trump is joined by members of the Coronavirus Task Force, while speaking about the Coronavirus, in the press briefing room at the White House on March 16, 2020 in Washington, DC.

Win McNamee | Getty Images

President Donald Trump said the coronavirus crisis in the U.S. could stretch into July or August. That update comes one day after the CDC encouraged Americans to limit gatherings and events for the next eight weeks. 

Trump also said his administration may look at lockdowns for “certain areas” or “hot spots” in the nation, but said he wasn’t considering a full national lockdown. “At this moment, no, we’re not,” Trump said. —Sara Salinas, Mike Calia

3:33 pm: MLB delays opening day to mid-May at earliest

Major League Baseball pushed back opening day until mid-May at the earliest on Monday because of the new coronavirus after the federal government recommended restricting events of more than 50 people for the next eight weeks. Baseball Commissioner Rob Manfred made the announcement following a conference call with executives of the 30 teams.

“The clubs remain committed to playing as many games as possible when the season begins,” the commissioner’s office said in a statement. —Associated Press

3:31 pm: Chuck Schumer wants to put at least $750 billion into third coronavirus response plan

Senate Minority Leader Chuck Schumer is working on a plan to pile at least $750 billion into efforts to combat the outbreak, his office said. The plan would “get money directly into hands of American people” and include health care affordability measures, forbearance on federal loans, a moratorium on evictions and foreclosures, assistance for small businesses and emergency child care, according to his office.

“We will need big, bold, urgent federal action to deal with this crisis,” Schumer, D-NY, said in a statement. “The kinds of targeted measures we are putting together will mainline money into the economy and directly into the hands of families that need it most. Importantly, this proposal will also ensure our medical professionals have all the resources – including physical space and equipment – they need to provide treatment and keep Americans safe, among other people-focused initiatives.” —Jacob Pramuk

3:22 pm: President Trump, White House officials update the public 

Members of the task force created to address the deadly coronavirus outbreak are holding a press briefing at the White House as authorities take drastic measures to slow the spread of the disease. You can watch the White House update live here. —Yelena Dzhanova

3:11 pm: San Francisco and France each order residents to stay home 

Travelers return early from a trip to Paris, France, due to the U.S. air travel ban at International Arrivals at San Francisco International Airport in San Francisco, California, U.S. March 13, 2020

Kate Munsch | Reuters

Officials in San Francisco, California, and France have each ordered residents to stay home in an effort to slow the spread of COVID-19. 

San Francisco Mayor London Breed said, “Effective at midnight, San Francisco will require people to stay home except for essential needs. Necessary government functions & essential stores will remain open.” Breed is expected to announce a “shelter-in-place” order for the next three weeks at a press conference later Monday, the San Francisco Chronicle reported.

French President Emmanuel Macron issued nearly identical directives, saying French residents’ movements would be severely limited for 15 days. Macron also said he would be closing the country’s borders starting Tuesday afternoon. —Sara Salinas, Dawn Kopecki

2:58 pm: Universal to release movies online while they are in theaters, starting with ‘Trolls World Tour’

Comcast is breaking with theatrical tradition amid the escalation of the coronavirus pandemic.

The company will begin to release new films online while they were still in theaters. The upcoming “Trolls World Tour” will be the first movie to open simultaneously online and in theaters for the company. Other films that are currently in theaters will be available for rental as soon as Friday. —Sarah Whitten

Disclosure: Comcast is the parent company of CNBC and NBCUniversal.

2:55 pm: White House grapples with which industries to save

The Trump administration is grappling with which industries to bail out as thousands of businesses in the U.S. grind to halt amid severe measures to curb the spread of the deadly coronavirus.

The U.S. could lose 8.2 million international visitors this year. That’s more than the country lost in the two years following 9/11. That’s lost revenue not only for airlines and hotels, but also for restaurants, retailers and airports. In some states, malls, gyms and movie theaters are shuttering and officials are telling restaurants to offer only take-out options.

“I don’t see how we get through this without wide-scale systemic solutions,” said one top tier-investor. “We’re going to have to rewrite the rules to get to the other side.” —Lauren Hirsch, Leslie Josephs

2:50 pm: Top concern for CFOs is coronavirus leading to global recession

The potential for COVID-19 to lead to a global economic downturn is the top concern for finance leaders in the U.S. and Mexico, according to a new survey of chief financial officers by PwC. Of those surveyed, 54% of respondents say the outbreak has the potential for “significant” impact to business operations, however 90% say their business would return to normal in less than 3 months if the COVID-19 outbreak were to end immediately. The survey included 50 financial leaders, 80% are whom are from Fortune 1000 companies. —Michael Wayland

2:46 pm: How to get your money back after coronavirus-related cancellations 

How do you get your money back if your plans have been canceled? While some policies are straightforward, others may be less clear.

The first thing you should do is just wait and see, especially since it is hard to get through to companies right now, said Ted Rossman, industry analyst for CreditCards.com.

“Give it a week or two,” he said. “There is a good chance you will see an automatic refund processed onto your card.”

That may be true for large public events, like Broadway shows, but may not apply to smaller ones. Here’s how to get money back if coronavirus forced the cancellation of your wedding or public event. —Michelle Fox

2:38 pm: Washington governor restricts restaurants, bans large gatherings statewide

Washington Gov. Jay Inslee said Monday he signed an emergency declaration temporarily shutting down bars, restaurants and other places of recreation statewide. He also banned public gatherings of more than 50 people. The move follows similar measures announced earlier Monday by New York and surrounding states. “Never since World War II have we faced a situation like this,” Inslee said. “For the next several weeks, normal is not in our game plan.” —Will Feuer

2:35 pm: Germany reports jump in cases to 6,012

An Austrian train was halted in Munich, Germany, after carrying two women with suspected coronavirus from Venice, Italy.

picture alliance

Germany reported a jump in coronavirus cases by more than 1,100 to now 6,012 compared to the previous day, the Robert Koch Institute for disease control said.

The number of confirmed deaths related to the coronavirus rose by one to now 13, with the three most populous states of North Rhine-Westphalia, Bavaria and Baden-Wuerttemberg among the most affected regions, the institute added. —Reuters 

2:31 pm: Russia bans entry of foreign nationals from March 18 to May 1

Russia will ban the entry of foreign nationals and stateless people from March 18 to May 1 in response to the coronavirus outbreak, the government said. 

The ban will not apply to diplomatic representatives, airplane crew members and some other categories of people, it said. Russia has reported 93 cases of the virus so far. —Reuters 

2:27 pm: Silicon Valley executives plot investment blitz with charities, groups to help fight coronavirus

Silicon Valley executives huddled on a conference call on Friday to discuss ways they can use their money and vast resources to help fend off the coronavirus that’s spreading throughout the United States. 

CEOs and executives from Facebook, Apple, the San Francisco 49ers, Twitter, Netflix, Alphabet and Salesforce were invited to take part in the call, which was organized by Cisco CEO Chuck Robbins. Top Silicon Valley investor Ron Conway was also invited.  

Community leaders spoke to the executives on Friday about “what is happening ‘on the ground’ and the impact on providing services,” as it pertains to helping combat the coronavirus, the notes say. —Brian Schwartz 

2:17 pm: Electronic payments look more appealing as people fear cash could spread coronavirus

The coronavirus outbreak is prompting second thoughts about reaching for cash. 

As the number of cases tick up in the U.S., some are going cashless to avoid potential hygiene issues around handling banknotes. Regardless of  whether there’s a proven risk, the “psychological factor” of people thinking of cash as “unclean” could change how they choose to pay, according to Bain & Co. partner, Thomas Olsen. 

“Merchants are encouraging people not to use cash, citing Coronavirus,” Olsen told CNBC. “We would expect some trigger to accelerate behavior from cash to digital payments.” —Kate Rooney

2:00 pm: First human trial for coronavirus vaccine begins

A researcher working with Doctor Paul McKay (unseen), who is working on an vaccine for the 2019-nCoV strain of the novel coronavirus, uses a pipette controller to express coronavirus onto surface protein to apply cell cultures, in a research lab at Imperial College School of Medicine (ICSM) in London on February 10, 2020.

Tolga Akmen | AFP | Getty Images

The first human trial testing a potential vaccine to prevent COVID-19 began Monday, U.S. health officials confirmed.

Finding “a safe and effective vaccine” to prevent infection from the new coronavirus “is an urgent public health priority,” Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said in a statement Monday.  “This Phase 1 study, launched in record speed, is an important first step toward achieving that goal.”

The National Institutes of Health, an agency within the Department of Health and Human Services, has been fast-tracking work with biotech company Moderna to develop a vaccine using the current strain of the new coronavirus. The trial is taking place at the Kaiser Permanente Washington Health Research Institute in Seattle, Washington, where COVID-19 cases have surged and authorities have banned mass gatherings. The early-stage, or phase 1, trial will test the vaccine on 45 males and non-pregnant females between the ages of 18 and 55, according to trial details on NIH’s website. —Berkeley Lovelace

1:56 pm: Romney proposes sending $1,000 checks to every American to ease economic pain

GOP Sen. Mitt Romney proposed sending every American adult $1,000 to ease the financial pain of the coronavirus pandemic that has tanked global markets and threatened to grind U.S. economic activity to a halt. 

The proposal from the 2012 Republican nominee for president came as the White House and Congress work to reach an agreement over the necessary stimulus measures to contain the unfolding economic crisis.

“While expansions of paid leave, unemployment insurance, and SNAP benefits are crucial, the check will help fill the gaps for Americans that may not quickly navigate different government options,” Romney said in a statement. —Tucker Higgins, Dan Mangan

1:53 pm: Canada closing borders to non-citizens

Canada is closing its borders to non-citizens because of the coronavirus pandemic, Prime Minister Justin Trudeau announced.

“We can still slow the spread of this virus,” Trudeau said. “It is time to take every precaution to keep people safe.”

Canada will make some exceptions to the closure of its borders, including for U.S. citizens. —Dan Mangan

1:40 pm: Dow down 9% 

Stocks continued their down-day with the Dow Jones Industrial Average off 9% in midday trading. The S&P 500 was down 8.4%, and the Nasdaq Composite was down 8.2%. 

Monday’s losses put the Dow down 28% from its all-time high and the S&P 500 and Nasdaq more than 26% below their records last month. At one point, the Dow was down 30% from its record. —Sara Salinas, Fred Imbert

1:36 pm: US airlines seek more than $50 billion in government assistance

U.S. airlines are seeking government assistance of more than $50 billion, including a mix of direct aid and loan guarantees, as the industry reels from the coronavirus outbreak, a lobbying group that represents 10 U.S. passenger and cargo airlines said Monday.

The aid, if received, would be the industry’s first broad bailout since the wake of the Sept. 11, 2001 attacks. It is also the clearest sign yet of the financial damage coronavirus and the draconian measures governments are taking to stop it are having on U.S. businesses. —Leslie Josephs

1:30 pm: 2020 North American box office headed for lowest haul since 2008

As fewer moviegoers venture out of their homes, more theaters cap the number of people allowed per showing and others shutter altogether, the box office is trending down 10.7% compared to 2019, to $1.78 billion. Michael Pachter, an analyst at Wedbush, foresees the full-year box office falling 12.4% from 2019 to around $9.9 billion. That would be the lowest take domestically since 2008.

“We expect 2020 box office to end significantly lower than the last two years, as theaters are closed or unattended, and most releases are moved to an already robust 2021 film slate,” Pachter wrote in a note to investors. “The current downturn is likely to persist well into the June quarter, but if the industry survives, we think there is potential for a significant rebound in 2021.”

Already, films like “Mulan,” “F9,” “Peter Rabbit 2: The Runaway,” “A Quiet Place Part II,” “No Time to Die,” and others have been pushed from their release dates as the number of cases of COVID-19 continue to grow. —Sarah Whitten

1:21 pm: WHO considers ‘airborne precautions’ for medical staff after study shows coronavirus can survive in air

A volunteer operates a remote controlled disinfection robot to disinfect a residental area amid the COVID-19 coronavirus outbreak in Wuhan in China’s central Hubei province on March 16, 2020.

STR | AFP | Getty Images

The World Health Organization is considering “airborne precautions” for medical staff after a new study showed the coronavirus can survive in the air in some settings.

The virus is transmitted through droplets, or little bits of liquid, mostly through sneezing or coughing, Dr. Maria Van Kerkhove, head of WHO’s emerging diseases and zoonosis unit, told reporters during a virtual press conference on Monday.

“When you do an aerosol-generating procedure like in a medical care facility, you have the possibility to what we call aerosolize these particles, which means they can stay in the air a little bit longer.” —Berkeley Lovelace, Will Feuer, Noah Higgins-Dunn

1:14 pm: UK Prime Minister tells Brits to stop all non-essential contact

U.K. Prime Minister Boris Johnson told the country on Monday to avoid all non-essential contact, after coming under fire for not doing more to stem the spread of the coronavirus in the country. 

“Now is the time for everyone to stop non-essential contact with others and to stop all unnecessary travel,” Johnson said at a press conference. “And you should avoid pubs, clubs, theatres and other such social venues.” —Katrina Bishop

1:09 pm: The Alphabet coronavirus screening website that Trump talked about last week is not currently taking appointments

Alphabet’s Verily coronavirus site screening website for Silicon Valley residents went live on Sunday evening. By Monday morning, it appeared to be overloaded and cannot currently offer appointments for screenings, according to the website.

President Donald Trump announced the site on Friday, which was reportedly before Alphabet was ready to go public with the launch, and got some details about the site wrong.

The site, built by Google sister-company Verily, is supposed to offer people who live in San Mateo or Santa Clara counties and think they are experiencing COVID-19 symptoms a way to schedule a test. Verily built the “Project Baseline” site in tandem with the California governor’s office and other local, state and federal officials. —Todd Haselton

12:59 pm: Based on history, the stock market is pricing in a recession and maybe something more ‘onerous’

The market’s blistering sell-off over the last month is so bad that investors have already pretty much priced U.S. stocks as if the economy is headed for a recession, based on a history of past declines around economic downturns by RBC.

The median and average recession-related market declines see the S&P 500 plunge 24% and 32%, peak to trough, respectively, RBC research shows. And with the broad index already down about 28% from its record close in February, it looks like investors think the U.S. is headed for a significant downturn in economic output.

The blue-chip, 30-stock Dow Jones Industrial Average is more than 29% off its own record close. —Thomas Franck

12:48 pm: Updated map of US coronavirus cases, which total 3,813

12:39 pm: Coronavirus outbreak prompts a growing number of states to ban dining in at restaurants

While the federal government weighs closing restaurants and bars amid the coronavirus outbreak, restaurant companies and at least 11 states are already closing dining rooms.

Photos of Americans in restaurants and bars circulated on social media over the weekend, leading many to call for mandated closures to enforce “social distancing.”

Starbucks and Chick-fil-A, two of the three biggest U.S. restaurant chains by sales, are only letting customers receive their food and drinks to go. Both said Sunday that they will pause the use of seating in their restaurants. —Amelia Lucas

12:33 pm: World Health Organization says some nations aren’t running enough coronavirus tests: ‘Test every suspected case’

A woman shows a test for the new coronavirus.

Sebastian Gollnow | picture alliance | Getty Images

The World Health Organization’s top official criticized some nations for not doing enough to detect and contain the deadly coronavirus that’s infected more than 174,000 people across the world. 

There’s been a rapid escalation of COVID-19 cases over the past week, WHO Director-General Tedros Adhanom Ghebreyesus told reporters at a virtual press conference Monday. “But we have not seen an urgent enough escalation in testing, isolation and contact tracing, which is the backbone of the response,” he said.

“We have a simple message for all countries: test, test, test. Test every suspected case, if they test positive, isolate them and find out who they have been in contact with two days before they developed symptoms and test those people, too”, Tedros said. —Will Feuer, Noah Higgins-Dunn, Berkeley Lovelace

12:11 pm: 8 steps to take if you can’t make ends meet because of the coronavirus

If you don’t have an emergency fund and are struggling to make ends meet during these uncertain times, here are eight steps to take.

  1. Contact creditors right away
  2. Create an “emergency” budget
  3. Consider a personal loan
  4. Use the product with the lowest interest rate
  5. Send temporary hardship letters
  6. Use community and government assistance programs
  7. Draw on retirement savings
  8. Avoid payday loans

With the coronavirus pandemic causing many workers to lose hours, it’s more important than ever to know what financial options you have. —Alicia Adamczyk

12:05 pm: Fed announces an additional $500 billion in overnight repo funding markets

A day after a dramatic move in interest rates, the Federal Reserve on Monday increased the amount of liquidity it’s offering in short-term lending to the financial industry.

In a midday announcement, the New York Fed said it will conduct a $500 billion repo operation Monday afternoon, another move targeted at keeping money flowing through the system. —Jeff Cox

11:57 am: NFL cancels 2020 draft event in Las Vegas due to coronavirus

NFL Commissioner Roger Goodell walks past a video board displaying an image of Baker Mayfield of Oklahoma after he was picked #1 overall by the Cleveland Browns during the first round of the 2018 NFL Draft at AT&T Stadium on April 26, 2018 in Arlington, Texas.

Getty Images

The National Football League canceled its 2020 draft event in Las Vegas due to the coronavirus outbreak, NFL commissioner Roger Goodell announced Monday.

The NFL said clubs will still select players as scheduled on April 23 through April 25, but added that the league is “exploring innovative options for how the process will be conducted and will provide that information as it becomes available. The selection process will be televised,” the statement said. —Jabari Young

11:52 am: US won’t have enough hospital beds for pandemic, Cuomo says

New York Gov. Andrew Cuomo warned that the COVID-19 outbreak will stretch U.S. hospitals to max capacity, saying the nation doesn’t have enough hospital beds to handle a pandemic.

“When we’re going to have a real problem is when cases hit their apex and descend on the health-care system and we will not have enough hospital beds,” he said at a press conference.

Cuomo said he sent a letter to President Donald Trump asking him to deploy the Army Corps of Engineers to the state to “start building temporary health-care capacity.” —Berkeley Lovelace

11:41 am: Coronavirus will be ‘with us permanently,’ former Bank of England official warns

The world will have to learn to live with COVID-19 as the virus will be “with us permanently,” a former Bank of England official told CNBC on Monday.

Speaking to CNBC’s “Squawk Box Europe,” John Gieve, former deputy governor at the Bank of England, said policymakers had a “huge job” to stop businesses from just closing down.

“The difficulty here is that people are making their own decisions, so the government might be saying: ‘Go to your bank, build up your debts,’ but some businesses will be thinking: ‘Well if I face three months of that, I’m never going to be able to pay this back, so I’d better close down now,'” he said. —Chloe Taylor

11:30 am: S&P 500 recovers some of its steep losses after halt, now down 6%

Stocks fell sharply Monday even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak.

The S&P 500 dropped 6% while the Dow Jones Industrial Average fell 1,500 points, or 6.6%. The Nasdaq Composite traded 6% lower. The major averages were off their session lows, however. The S&P 500 fell as much as 11.4% while the Dow lost more than 12% earlier. The Nasdaq was briefly down 11.7%. —Fred Imbert

11:20 am: Mnuchin, House working on ‘technical correction’ to coronavirus relief bill

Senate Majority Leader Mitch McConnell said he has yet to receive a final draft of the coronavirus relief bill that the House passed early Saturday. 

Treasury Secretary Steven Mnuchin said Saturday that while he and the House had agreed on a second legislative package to help the country as it battles the virus, the two parties had also agreed to issue a “technical correction” to the bill on Monday.

“I don’t want people being surprised,” Mnuchin said. “We will be doing a technical correction on Monday morning.” He said that there was language he, House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy, R-Calif., agreed on that didn’t make it into the bill. —Lauren Hirsch

10:53 am: Supreme Court postpones arguments, citing Spanish flu precedent

Crowds line up outside the Supreme Court as it resumes oral arguments at the start of its new term in Washington, October 7, 2019.

Mary F. Calvert | Reuters

The Supreme Court said Monday it will postpone arguments scheduled for March and early April because of health concerns related to the coronavirus pandemic.

The top court cited its actions during the Spanish flu epidemic of 1918 and the yellow fever outbreaks of the 18th century as precedents.

The postponement will delay arguments in three blockbuster cases over whether President Donald Trump may shield his financial records, including tax returns, from state and congressional investigators, among other matters. Those cases were set to be argued on March 31. —Tucker Higgins

Correction: This entry has been updated to correct that the Spanish flu epidemic occurred in 1918.

10:30 am: New York, New Jersey, and Connecticut ban eating in restaurants, limit events to less than 50 people

The Democratic governors of New York, New Jersey and Connecticut, citing “a lack of federal direction and nationwide standards” announced Monday they have agreed to jointly reduce density throughout the region, closing movie theaters, most restaurants and bars and limiting public gatherings to fewer than 50 people.

The federal government has “been behind from day one on this crisis,” said New York Gov. Andrew Cuomo. “States, frankly, don’t have the capacity or the power to make up for the federal government.” He called on U.S. officials to coordinate closings across the country, saying state and local leaders have adopted a “hodge podge” of different actions.

Effective by 8 p.m. ET Monday, the three states will prohibit crowds of 50 or more, including private parties; restaurants and bars will need to close, except for takeout or delivery orders; bars, gyms and movie theaters also will need to close, as will nontribal casinos. The rules are in effect “until further notice,” New Jersey Gov. Phil Murphy said. 

“The only way to effectively fight the spread of COVID-19 is by working together as states,” Connecticut Gov. Ned Lamont said.

Berkeley Lovelace Jr., Noah Higgins-Dunn, Will Feuer

10:25 am: Treasury Secretary Mnuchin tells Cramer there will be a lot of ‘pent-up demand’ when crisis ends

Treasury Secretary Steven Mnuchin speaks with reporters outside White House in Washington, DC, on March 13, 2020.

Jim Watson | AFP | Getty Images

Treasury Secretary Steven Mnuchin told CNBC on Monday there will be a surge of demand for stocks once the coronavirus threat abates.

“There will be a huge amount of pent-up demand when this is done. And it will be done,” the Treasury secretary told CNBC’s Jim Cramer.

“Look for companies that have a ton of liquidity. An Apple will have customers,” Mnuchin added. “That’s just a given. The goal is not to bail out companies.” —Thomas Franck

10:07 am: Millions could lose their jobs in a coronavirus recession. Many won’t get severance pay

The odds of slipping into a recession are increasingly likely as the global coronavirus outbreak puts acute stress on the U.S. economy. That could be bad news for American workers, who may lose jobs by the millions in a downturn. For those workers who don’t receive severance pay, the financial impact could be especially devastating.

Economic cracks are beginning to emerge. Small-business owners are starting to report supply-chain problems and lost sales. The travel industry is reeling. Big oil and gas companies are slashing spending and cutting dividends amid a plunge in oil prices. Consumer spending has fallen as Americans pull back from their daily routines.

Many workers don’t have an adequate financial backstop in layoff situations, experts said. Half of U.S. adults expected to be living paycheck to paycheck this year and 53% did not have an emergency fund that covers at least three months of expenses, according to a financial planning survey conducted prior to the coronavirus outbreak by First National Bank of Omaha in Nebraska.

Federal law doesn’t require American companies to pay severance in the event of layoffs, leaving it up to the discretion of business owners. —Greg Iacurci

9:58 am: NYSE implements new procedures for floor participants

CNBC’s Bob Pisani reports that while entering the New York Stock Exchange Monday morning a medical team was at the entrance. An attendant took his temperature and he was asked to fill out a one-page questionnaire on whether he was feeling ill or had traveled out of the country. —John Melloy

9:51 am: Workday will give employees a cash bonus worth two weeks of pay amid outbreak

A normally very busy Times Square is nearly empty on March 12, 2020 in New York City.

David Dee Delgado | Getty Images

Workday will pay its lower-level employees the equivalent of two-weeks pay as a cash bonus to help support them during the fallout from the COVID-19 pandemic.

The move, which excludes executives at the vice president level and above in addition to “certain senior individual contributors,” is expected to add about $80 million to Workday’s first quarter and full-year 2021 expenses compared to initial guidance, the company said in a financial filing. Workday, which provides human resources software, reported 12,200 total employees as of the end of January and said it also employs contractors. Workday plans to pay the bonus in its first fiscal quarter ending April 30. —Lauren Feiner

9:39 am: Uber is delivering free meals to health-care workers and first responders

Uber is giving away free meals to health workers and first responders who are helping combat the coronavirus pandemic, Nelson Chai, the company’s chief financial officer, told CNBC on Monday.

“We’re going to deliver over 300,000 meals for health officials and first responders who are on the front line,” Chai said in a “Squawk Box” interview. “We’re doing what we can.”

The company’s Uber Eats segment is also waiving delivery fees for small businesses in some of its markets. —Jessica Bursztynsky

9:36 am: Germany seals off borders as European countries report record jump in coronavirus deaths

Germany is the latest European country to seal off its borders in an effort to contain the coronavirus outbreak, as the number of deaths in Europe jumped overnight.

As of Monday morning, Germany had shut its borders with Austria, Switzerland, France, Luxembourg, and Denmark. Only German citizens, those who reside in the country and work in a neighboring nation and vice-versa, and physical goods, can cross the German border. Though Berlin is not the first European capital to impose border restrictions, the move marked a U-turn in Chancellor Angela Merkel’s policy.

“It’s a crisis situation,” Friedrich Heinemann, head of public finance at the German-based think tank ZEW, told CNBC about the German decision. —Silvia Amaro

9:31 am: Stocks crater at the open, circuit-break kicks in almost immediately and halts trading

Traders work on the floor of the New York Stock Exchange March 12, 2020.

Brendan McDermid | Reuters

Stocks cratered at the open, with the major averages dropping more than 5% and leading to a 15-minute halt in trading after the circuit-breaker threshold was triggered.

According to the New York Stock Exchange, a market trading halt occurs at “three circuit breaker thresholds” on the S&P 500 due to large declines and volatility. The exchange classifies this at three levels based on the preceding session’s close in the S&P 500.

Before trading was halted, the Dow Jones Industrial Average fell 2,250 points, or 9.7%. The S&P 500 fell 8%, while the Nasdaq Composite was down 6%. —Pippa Stevens

9:26 am: Fiat Chrysler ends production at the majority of its European plants

Fiat Chrysler is ending production at the majority of its European plants through March 27 due to the coronavirus, the company said Monday.

The plans come less than a week after the Italian-American automaker announced it would “intensify measures” against the spread of the coronavirus in Italy, including temporarily closing plants there, where the government has implemented a national quarantine amid a rapid spread of COVID-19.

The temporary shutdowns include plants in Italy, Serbia, and Poland. It’s unclear at this time how many of the company’s 23 plants will remain open. A company spokesman was not immediately available for comment.

Fiat Chrysler, in a release, said its plans include measures to enable the company to “promptly” restart manufacturing operations once ready. —Michael Wayland

9:24 am: JPMorgan tells employees around the world to work from home if possible

JPMorgan Chase is telling all its employees globally to work from home if possible.

The New York-based bank, which has 256,981 workers and operates in 60 countries, is expanding on a policy it began last week for New York-metro area employees as it copes with the spread of the coronavirus pandemic.

“Effective immediately, we are asking all managers globally to allow employees to work from home to the extent feasible,” the bank’s operating committee said Sunday in a staff email. “This will further facilitate social distancing in the communities we call home while continuing to serve our clients and customers.” —Hugh Son

9:12 am: Ex-FDA chief sees US peak late April to early May

9:02 am: Coronavirus forces airlines to consider the once unthinkable: a halt to US flights

An empty check-in area is seen at the United Airlines domestic check-in area at San Francisco International Airport in San Francisco, on Thursday, March. 5, 2020.

David Paul Morris | Bloomberg | Getty Images

Airlines around the world are racing to preserve cash as demand for flights craters after political leaders turn to increasingly draconian measures that have disrupted daily life in an effort to stop the spread of COVID-19. Now U.S. airlines are grappling a scenario that unthinkable earlier this year when they reported record revenues: a suspension of U.S. air travel.

On Sunday, acting Homeland Security Secretary Chad Wolf said, “all options remain on the table” when asked at a White House press conference whether the administration is considering a halt of domestic air travel. A day earlier, President Donald Trump said the American public should avoid unnecessary travel. Early Monday, the administration expanded its 30-day ban on most European visitors to Ireland and the U.K., an unprecedented curb on international travel.

While it is not guaranteed that the administration will take that route, which would be the first time the U.S. instituted a blanket air travel ban since the wake of the Sept. 11, 2001, terrorist attacks, or whether it would last two weeks, a month, or longer, several executives told CNBC that they are considering all possibilities. —Leslie Josephs

8:53 am: IMF says it’s ready to ‘mobilize its $1 trillion lending capacity’

International Monetary Fund Managing Director Kristalina Georgieva speaks at a press conference in Washington D.C., the United States, on March 4, 2020.

Liu Jie | Xinhua | Getty Images

The International Monetary Fund on Monday said it “stands ready” to use its $1 trillion lending capacity to help countries around the world that are struggling with the humanitarian and economic impact of the novel coronavirus.

“As a first line of defense, the Fund can deploy its flexible and rapid-disbursing emergency response toolkit to help countries with urgent balance-of-payment needs,” wrote Kristalina Georgieva, Managing Director of the International Monetary Fund.

“The Fund already has 40 ongoing arrangements — both disbursing and precautionary — with combined commitments of about $200 billion,” she added. “In many cases, these arrangements can provide another vehicle for the rapid disbursement of crisis financing.” —Will Feuer

8:08 am: Doctor says we ‘really should look a little more like China’

Dr. Corey Hebert, assistant professor at both Louisiana State and Tulane Universities, told CNBC’s “Squawk Box” that the U.S. should commit to social distancing in an effort to “flatten the curve.” “If we do what we’re supposed to do, we really should look a little more like China,” he said in reference to China’s aggressive mitigation efforts that include wide-scale quarantines and travel restrictions. “What we’re trying to do is instead of having 15,000 people sick at one time, which would overburden the medical system, we’d rather have 10 people sick, or 10,000 people sick rather, over a longer amount of time, so 15 days.” —Will Feuer

7:37 am: Roche CEO says it will provide over 400 tests this week

In an effort to boost screening capacity to help contain the growing epidemic, the Food and Drug Administration issued emergency authorization last week for a COVID-19 test made by Swiss diagnostics maker Roche. The company says automated tests can provide results in 3.5 hours as opposed to a few days. The company will begin its rollout with over 400 tests this week, Roche CEO Dr. Severin Schwan told CNBC’s “Squawk Box.” 

“We are of course ramping up supply as much as we can,” he said, adding that the tests go first where they’re most needed. “For that purpose, we are closely working together with the authorities, the CDC, in particular, to allocate tests to those labs and to those regions where we can make the biggest impact during this crisis.” —Will Feuer

7:05 am: Retail store closures in the US could explode

Temporary closed signage is seen at a store in Manhattan borough following the outbreak of coronavirus disease (COVID-19), in New York City, U.S., March 15, 2020.

Jeenah Moon | Reuters

The year 2019 brought with it record store closures in the retail industry in the U.S., and 2020 looks like it is about to be a lot worse. Retail store closures this year are now on pace to be “double what we saw last year,” which was a record year, said Deborah Weinswig, CEO and founder of retail advisory and research firm Coresight Research. “I think that is already in motion. … If [COVID-19] stays longer, it will be greater.” —Lauren Thomas

7:01 am: Iran’s death toll surges to 853

Iran’s death toll has reached 853, with 129 new deaths in the past 24 hours, a health ministry official tweeted on Monday, adding that 14,991 people have been infected across Iran. “In the past 24 hours we had 1,053 confirmed new cases of coronavirus and 129 new deaths,” Alireza Vahabzadeh tweeted. To contain the outbreak in Iran, one of the deadliest outside of China, officials have called on people to stay at home. —Reuters

6:21 pm: UK government asks manufacturers to make ventilators, health equipment

U.K. Prime Minister Boris Johnson will ask manufacturers to support the production of essential medical equipment, such as ventilators, for the National Health Service.

“Preparing for the spread of the coronavirus outbreak is a national priority and we’re calling on the manufacturing industry and all those with relevant expertise who might be able to help to come together to help the country tackle this national crisis,” a Downing Street spokesperson said late Sunday.

“We need to step up production of vital equipment such as ventilators so that we can all help the most vulnerable, and we need businesses to come to us and help in this national effort.” —Holly Ellyatt

5:28 am: Impact will last at least until the third quarter, Germany’s economy ministry says

The German economy ministry said the impact of COVID-19 meant it no longer expected an economic upswing in the first quarter, Reuters reported. The ministry added that the economy was unlikely to stabilize before the third quarter at the earliest. “The strength and duration of the impact cannot yet reliably be forecast,” the ministry said. “But given the very rapid pace of developments, we have to anticipate significant economic impacts.” —Holly Ellyatt

4:48 am: ‘Where is Boris?’: The UK government’s cautious strategy provokes a public backlash

Britain’s Prime Minister Boris Johnson visits a laboratory at the Public Health England National Infection Service in Colindale on March 1, 2020 in London, England.

WPA Pool

4:46 am: European shares slide 8% and airline stocks tank as regional shutdown widens

European markets plunged as much of the continent went into shutdown mode to prevent the spread of the new coronavirus.  The pan-European Stoxx 600 dropped 8% near the start of trading, travel and leisure stocks plummeting 14.3% to lead losses as all sectors and major bourses slid into the red. —Elliot Smith

3:30 am: Asia-Pacific markets dive, with Australia leading losses

Asia markets plummeted even after the U.S. Federal Reserve announced a massive monetary stimulus campaign to curb slower economic growth in the middle of the COVID-19 pandemic.

Australian markets led losses in the Asia-Pacific region, as it tanked nearly 10%. Mainland Chinese stocks dropped as well, with the Shanghai composite 3.4% lower, while the Shenzhen composite slipped 4.834% and the Shenzhen component plunged 5.34%. Hong Kong’s Hang Seng index fell 4.38%. Overall, the MSCI Asia ex-Japan index declined around 5%. 

“Ironically, markets might have perceived the Fed’s response as panic, feeding into its own fears; especially as COVID-19 cases spike globally, prompting harder border controls,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a note. —Eustance Huang

Read CNBC’s coverage from CNBC’s Asia-Pacific and Europe teams overnight here: New York City to limit restaurants and bars to take-out and delivery, movie theaters to shut

Reuters and CNBC’s Saheli Roy ChoudhuryWeizhen TanHolly Ellyatt contributed to this report.

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *