The World
White House economic adviser Kevin Hassett expects a national unemployment rate of 16% or higher this month and says more stimulus is needed to ensure a strong rebound. “This is the biggest negative shock that our economy, I think, has ever seen,” he said.
Bank of America CEO Brian Moynihan says Congress’ small business loan program should be expanded so that it no longer runs on a first-come, first-served basis. (CNBC)
Hundreds of millions of dollars of Paycheck Protection Program emergency funding have been claimed by large, publicly traded companies, new research published by Morgan Stanley shows. In fact, the U.S. government has allocated at least $243.4 million of the total $349 billion to publicly traded companies, the firm said. (CNBC)
In the next chapter of the oil crisis, the industry shuts down. Negative oil prices, ships dawdling at sea with unwanted cargoes, and traders getting creative about where to stash oil. (Bloomberg)
Here’s what a flotilla of oil tankers looks like:
Tens of millions of pounds of American-grown produce is rotting in fields as food banks across the country scramble to meet a massive surge in demand, a two-pronged disaster that has deprived farmers of billions of dollars in revenue while millions of newly jobless Americans struggle to feed their families. (Politico)
Bank of Japan vows to buy government bonds 'without upper limit.' Tokyo stocks rise 2.7% after central bank acts. (Nikkei Asian Review)
US and Australian warships sail in disputed waters after China bolsters claim, while a China-Russia alliance on horizon as nuclear arms treaties crumble. (Nikkei Asian Review)
Why does China invest in the Belt and Road Initiative? This poll: Nigerians living near a major Belt and Road project grew more positive toward China after it was completed. (Pew Research Center)
How are CEOs using the crisis to pivot to a better future? According to interviews with more than a dozen CEOs they: Make Employees a Top Priority; Keep the Organization Lean and Nimble; Redefine What a “Responsible” Balance Sheet Looks Like; Adapt to Consumers’ Changing Needs; Step Up to Social Responsibility. (Chief Executive)
Finance
Scott Minerd, Guggenheim Investments Global CIO: “To think that the economy is going to reaccelerate in the third quarter in a V-shaped recovery to the level where gross domestic product (GDP) was prior to the pandemic is unrealistic. Four years from now the economy will most likely recover to the same level of activity that it was in January.” (Guggenheim Investments)
General Motors suspends dividend, stock buybacks to preserve cash. Deutsche Bank says results will beat expectations, eases capital targets. (CNBC, Wall Street Journal)
Investors are snapping up complex securities linked to some of the markets deemed most vulnerable to the coronavirus-driven economic slump, a sign that the yearslong reach for yield has survived the market shock. (Wall Street Journal)
The most creditworthy developing countries have found investors willing to buy their bonds. Emerging markets have sold $141 billion of sovereign bonds as of April 23, according to Dealogic data, up from $118 billion in the same period of 2019. (Wall Street Journal)
American hedge fund giant Citadel has placed bets worth £275 million against UK supermarket shares. (The Financial Mail)
JPMorgan Chase & Co. is looking to help blue-chip companies untether trillions of dollars locked up in corporate supply chains globally through a new technology partnership. The bank is working with Taulia Inc., a platform that provides working capital solutions, to redistribute liquidity to smaller suppliers of large, investment-grade companies. (Bloomberg)
Is BlackRock the new Goldman Sachs? Its sway extends far beyond its function as a vast asset manager. (Financial Times)
Two of Barclays’ largest investors have pledged their support for chief executive Jes Staley at next month’s annual meeting. (The Telegraph)
Biden hammers banks, demands new stimulus 'a hell of a lot bigger' than $2 trillion, and calls for new green infrastructure bill. (Politico)
Technology
Apple is pushing back the production ramp-up of its flagship iPhones coming later this year by about a month, as the coronavirus pandemic weakens global consumer demand and disrupts manufacturing and supply chains across Asia. (Wall Street Journal)
Facebook is challenging Zoom for video chat dominance by introducing Messenger Rooms. (Engadget)
In an interview, Mark Zuckerberg discusses Messenger Rooms and says he’s focused on three areas: Remote presence (feeling like you’re with a person even when you can’t physically be there), small business work, and acute health response. (The Verge)
Israeli firm raises $5 million for tech to recognize mask-covered faces. (Reuters)
Instacart is hiring another 250,000 “shoppers,” people who pluck items off shelves and deliver them to Instacart customers. That follows the hiring of 300,000 shoppers in the past month. (Medium)
More than 1 million Australians downloaded a coronavirus contact tracing app within hours of it being released by the government, while in a U-turn, Germany backs Google and Apple on smartphone contact tracing. (BBC, Deutsche Welle)
Smart Links
Grocery upstarts race to exploit food delivery overload. (Bloomberg)
Growing meat shortage threat helps lift shares of plant-based protein manufacturer Beyond Meat. (Los Angeles Times)
Eye contact activates the autonomic nervous system even during video calls. (Science Daily)
Coronavirus poses serious financial risks to US universities. (Brookings)
Zoom video calls wear on the psyche in complicated ways. (National Geographic)