| Fed Cuts Rates to Zero as Financial-Crisis Tools Make a Comeback |
| The Federal Reserve has cut interest rates back to zero and reintroduced the bond-buying program it used to fight the financial crisis a decade ago. It also reduced the cost of its overnight lending facility for U.S. banks and will expand its facilities to lend dollars to other global central banks.
In a statement late Sunday, the Federal Open Market Committee decided to cut interest rates back to the financial crisis-era range of 0% to 0.25%. It also has decided to buy $500 billion of Treasuries and $200 billion of mortgage-backed securities “over coming months.” |
| Continue reading › |
| The Fed’s ‘Whatever It Takes’ Approach Isn’t Enough for the Stock Market |
| The Federal Reserve revived many of its global financial crisis measures on Sunday to curb the damage from economies struggling with the coronavirus, but markets may need even more before finding their footing—especially as China data overnight came in far uglier than expected.
The Federal Reserve cut interest rates to the range during the financial crisis of 0 to 0.25% and brought back its bond-buying program, saying it would purchase $500 billion of Treasuries and $200 billion of mortgage-backed securities over coming months. Fed Chairman Jerome Powell cited the stress in several financial markets last week and impaired liquidity. Despite the aggressive moves, Powell said the Fed didn’t have the means of reaching households or small businesses. For that, fiscal policy was needed. |
| Continue reading › |
| Airlines Want $50 Billion in Aid. It’s Crucial for Them, Lessors, and Jet Manufacturers. |
| U.S. airlines are seeking a $50 billion aid package from the federal government, according to a report Monday by The Wall Street Journal. And it may not come a moment too soon.
Airlines are scrambling to cut operating costs as the coronavirus pandemic sweeps the globe and grounds airline fleets. United Airlines Holdings said Sunday it plans to reduce scheduled flights by 50% in April and May. Delta Air Lines and American Airlines Group have also cut back on routes and scheduled flights. And the carriers have all disclosed that they’re in talks with the government about assistance, according to the Journal. |
| Continue reading › |
| Manufacturing in New York Records Biggest Monthly Drop in History |
| Manufacturing activity across the New York region plunged in March, reflecting the biggest one-month drop in history and showing just how hard the coronavirus is starting to hit the U.S. economy.
The New York Fed’s monthly Empire manufacturing survey showed a drop in activity to -21.5 from 12.9 in February. Economists polled by Bloomberg expected a less sharp decline to 5.1. |
| Continue reading › |
| Oil Ends at 4-Year Low, With U.S. Benchmark Below $30 |
| Crude prices settled at a four-year low on Monday, with U.S. prices below $30 a barrel, moving in step with plunging global equities after an emergency Federal Reserve interest rate cut did nothing to stem the panic among investors triggered by the rapidly spreading coronavirus.
West Texas Intermediate crude for April delivery on the New York Mercantile Exchange fell $3.03, or 9.6%, to settle at $28.70 a barrel after trading as low as $28.03. The settlement was the lowest for a front-month contract since February 2016, according to Dow Jones Market Data. May Brent dropped $3.80, or more than 11%, to $30.05 a barrel on ICE Futures Europe—the lowest finish since January 2016. |
| Continue reading › |
| Exxon’s Debt Rating Is Cut on Oil and Operating Weakness |
| Exxon Mobil’s credit has long been considered the gold standard in the oil-and-gas industry. But that may be changing.
On Monday, S&P Global Ratings downgraded the company’s issuer credit rating and unsecured debt rating to AA from AA+.
AA is the third-highest rating that S&P gives out and is still a strong investment-grade seal of approval. But Exxon has been adding debt even as its operations are faltering, with refining and chemicals results struggling in the past few quarters. The company’s debt position is now raising worries, particularly given the likelihood that oil prices will stay low for a long time. |
| Continue reading › |
| Moderna Stock Jumps After It Doses First Patient in Coronavirus Vaccine Trial |
| The biotech firm Moderna said Monday that the first patient had been dosed with its vaccine against the novel coronavirus in the Phase 1 study being conducted by the National Institutes of Health.
Shares of Moderna soared on Monday even as major U.S. stock market indexes suffered double-digit percentage losses. “This study is the first step in the clinical development of an mRNA vaccine against SARS-CoV-2, and we expect it to provide important information about safety and immunogenicity,” Moderna’s chief medical officer, Tal Zaks, said. |
| Continue reading › |
| France Fines Apple $1.2 Billion Over Distribution Practices |
| The French Competition Authority, the Autorité de la Concurrence, has fined Apple 1.1 billion euros ($1.2 billion) over anticompetitive behavior regarding the distribution of its products.
Apple and other large tech companies have been subject to increasing regulatory scrutiny on multiple fronts, including the way Apple distributes mobile applications through the App Store. |
| Continue reading › |
| Lockheed Martin Names New CEO |
| Lockheed Martin Corp. Chief Executive Marillyn Hewson will step down from the role in June to be succeeded by aerospace industry veteran James Taiclet, the world’s largest defense company by sales said Monday.
Mr. Taiclet joins from telecom infrastructure specialist American Tower Corp. but has been on the defense giant’s board since 2018, having worked for a variety of other big aerospace companies. |
| Continue reading › |
| Cruise Operator Carnival Is Tapping a $3 Billion Credit Facility |
| Carnival, the largest U.S. cruise operator, is tapping the vast majority of its $3 billion credit facility agreement “to increase its cash position and preserve financial flexibility in light of the current uncertainty in the global markets result from the COVID-19 outbreak,” the company said in a filing Friday.
It’s the latest sign of the quickly deteriorating fundamentals for the industry due to the fallout from the coronavirus outbreak. |
| Continue reading › |
