The World
The U.S. economy shed jobs in March, abruptly ending a historic 113 straight months of employment growth as stringent measures to control the novel coronavirus pandemic shuttered businesses and factories, all but confirming a recession is underway. The Labor Department said employers cut 701,000 jobs last month after adding a revised 275,000 in February. The unemployment rate shot up to 4.4% from 3.5%. According to a Reuters survey of economists, nonfarm payrolls had been forecast to decrease by 100,000 jobs last month, snapping a record streak of employment gains dating to October 2010. Unemployment was seen rising to 3.8%. (Reuters)
House Speaker Nancy Pelosi on Friday called for another bill to expand the provisions in the $2 trillion package Congress passed last week to limit the economic devastation from the coronavirus pandemic. “It’s not enough,” Pelosi told CNBC’s “Squawk on the Street” about the last relief measure. (CNBC)
Most big companies that take advantage of the $500 billion corporate bailout in last week’s coronavirus relief bill are unlikely to face restrictions against firing workers or giving bonuses to executives, according to officials familiar with the program. People close to the Fed say its top officials don’t think they’re required to force companies that get the money to keep workers on their payrolls, limit executive compensation or forgo stock buybacks or dividends. (Politico)
Saudi Arabia, Russia to debate oil cuts, pushing crude sharply higher: An alliance of oil producers led by Saudi Arabia and Russia is set to debate production cuts of at least 6 million barrels a day Monday and consider inviting U.S. producers to participate, according to OPEC country officials. The outcome of the virtual summit between Saudi-led OPEC and 10 nations led by Russia will largely depend on a discussion Friday between the White House and U.S. oil companies. Saudi Arabia and Russia won’t cut unless they get signals from U.S. producers they will reduce output, the officials said. (Wall Street Journal)
Leading disease forecasters, whose research the White House used to conclude 100,000 to 240,000 people will die nationwide from the coronavirus, were mystified when they saw the administration’s projection this week. The experts said they don’t challenge the numbers’ validity but that they don’t know how the White House arrived at them. White House officials have not provided the underlying data so others can assess its reliability or provided long-term strategies to lower that death count. Meanwhile, the White House is poised to urge Americans to wear cloth masks or face coverings in public to help prevent the spread of the novel coronavirus, in a reversal of earlier advice. (Washington Post & Washington Post)
The coronavirus pandemic, with its simultaneous health and economic crises, is deepening fault lines within Europe in a way some leaders fear could prove to be a final reckoning. The cohesion of the European Union had been battered by Brexit, bruised by the political fallout from the 2015 migration surge and the 2008 financial crisis, and challenged by rising autocracy in the east that runs contrary to the professed ideals of the European project. Now, if Europe’s leaders cannot chart a more united course, the project lies in what one of its architects described this week as “mortal danger.” (Washington Post)
In Europe’s common currency zone, that is exposing an old gap: between financially secure northern countries such as Germany and the Netherlands, and southern countries whose ability to borrow is more fragile, such as Italy and Spain. Southern eurozone nations have less money to prop up their households and businesses during the health emergency, risking greater economic damage and a weaker recovery afterward. The gap is leading to clashing proposals for European financial support. (Wall Street Journal)
A US State Department official has given American companies a “wake-up call” on China’s military-civil fusion strategy, as Washington plans further steps to limit China's access to sensitive US technology. Christopher Ashley Ford, assistant secretary for International Security and Non-Proliferation, called for the US government and companies to step up the vetting of Chinese firms buying from American companies to ensure the technology could not be used to strengthen China’s military. (South China Morning Post)
Suddenly, governments in Asia that appeared to be bringing the coronavirus under control are imposing new social restrictions as the numbers of infections, many from overseas, continue to rise. Vietnam has banned public gatherings of more than two people. Hong Kong has closed nightclubs, karaoke bars and mah-jongg parlors, and deployed health inspectors to check that restaurants are seating parties at least six feet apart. Singapore has warned that anyone standing within three feet of another person in line could face up to six months in jail. (Los Angeles Times)
Singapore shuts schools and closes most workplaces temporarily to stem the spread of coronavirus.Singapore’s Prime Minister Lee Hsien Loong on Friday announced stricter social distancing measures in the city state. The measures include shutting most workplaces except those offering “essential services” and closing all schools temporarily, said Lee. (CNBC)
Japan is expected to declare a state of emergency "any day" now in response to the rising tally of coronavirus infections, a senior official of the ruling Liberal Democratic Party said on Friday. But restrictions on individuals will not be compulsory due to the constitution, the official added. The official also said testing for the coronavirus will increase and that the government is pressing Toyota Motor, Nissan Motor and other automakers to diversify their supply chains and reduce their reliance on China, a move triggered by coronavirus-caused disruptions. (Nikkei Asian Review)
China’s car part makers face collapsing orders, as factories around the world kill their engines. As companies from Ford to Toyota to Volkswagen shut their global plants amid coronavirus outbreak, the impact resonates in China. In 2019, China exported US$53 billion worth of auto parts, but now firms are having orders cancelled in the US and Europe. (South China Morning Post)
Israel has turned to the Mossad, its top spy agency, to acquire ventilators and other medical supplies from abroad as the country races to handle a coronavirus outbreak that threatens to overwhelm its hospitals, according to government officials and Israeli media reports. The Mossad has already flown in millions of masks, swabs and virus testing kits in recent days, as well as a small number of ventilators. (Washington Post)
Air France-KLM is in talks with banks to receive up to 6 billion euros ($6.5 billion) in loans guaranteed by the French and Dutch governments, as the airline group braces for a sustained coronavirus shutdown. (Reuters)
Airbnb lowers internal valuation by 16% to $26bn. Short-term rental site hit by sharp drop in bookings because of coronavirus outbreak. (Financial Times)
Pakistan Prime Minister Imran Khan has said that the government has decided to give the status of industry to construction sector. The prime minister said that those investing in the construction sector will not be asked questions regarding trail of the money. He said the withholding tax on materials in the construction sector is being waived of. (Business Recorder)
Finance
Fannie and Freddie could need bailout if lockdown lasts. Regulator says US mortgage guarantors have sufficient resources for about 12 weeks. (Financial Times)
Mortgage lenders are preparing for the biggest wave of delinquencies in history. If the plan to buy time works, they may avert an even worse crisis: Mass foreclosures and mortgage market mayhem. (Bloomberg)
China’s central bank cut the amount of cash banks need to hold in reserve for the third time this year, releasing about 400 billion yuan ($56.4 billion) of liquidity into the financial system. The reserve requirement ratio (RRR) for small and midsized lenders, including rural banks, village banks and city banks which only operate in the region where they are registered, will be lowered by 1 percentage point, the People’s Bank of China (PBOC) announced. The adjustment will be implemented in two stages — April 15 and May 15. (Caixin Global)
Companies financed by private investors that want access to the federal government’s emergency small-business lending program got a sympathetic hearing from Wall Street’s top regulator. Federal regulations can make it harder for companies with private-equity or venture backers to qualify as small businesses because they essentially consider all firms controlled by a single investor as one entity. Securities and Exchange Commission Chairman Jay Clayton told small business advocates Thursday that he would “echo these issues” to officials at the Small Business Administration and the Treasury Department, which have authority over the rules. (Wall Street Journal)
Private equity firms are wasting no time in calling capital: Private equity firms are increasingly paying off their subscription lines of credit and calling in commitments from investors, leaving some limited partners worried about liquidity.General partners are building up cash reserves given the uncertain market and economic environment and to trying to mitigate the risks posed by declining cash distributions to investors, according to a new survey by Campbell Lutyens, one of the largest placement agents and advisors in private equity, private credit, and infrastructure. (Institutional Investor)
JPMorgan Chase & Co. said it plans to seek full ownership of its Chinese fund-management joint venture, opening a path to becoming the first foreign firm to do so in China’s asset-management industry. (Wall Street Journal)
Bill Ackman’s prescient worries about the novel coronavirus helped his Pershing Square Holdings turn in a stunning double-digit performance during March, the worst-ever month for the U.S. stock market. (Institutional Investor)
Bank of America says it is capable of accepting online applications for the government’s $350 billion small business relief program, becoming the first major bank to make that announcement. Just minutes earlier on Friday, none of the websites of four of the biggest U.S. banks — JPMorgan Chase, Bank of America, Wells Fargo or Citigroup was accepting applications for the program, which was supposed to go live shortly after midnight. (CNBC)
Technology
Multiple state attorneys general are banding together to scrutinize virtual conferencing company Zoom’s privacy and security practices, one top enforcer told POLITICO late Thursday, the biggest sign to date that its regulatory woes are ballooning as its popularity surges during the coronavirus outbreak. “We are alarmed by the Zoom-bombing incidents and are seeking more information from the company about its privacy and security measures in coordination with other state attorneys general,” Connecticut Attorney General William Tong told POLITICO in a statement.(Politico)
Google will use its mammoth collection of mobile location data to measure whether people across the globe are following government directives to remain at home during the coronavirus pandemic — or are venturing out to locations such as stores, parks and offices. The Silicon Valley behemoth has begun publishing online reports in 131 countries that show whether the overall number of visitors to certain public venues has increased or decreased since coronavirus-era guidelines were put in place. In the U.S., Google will provide county-level percentages that are updated every few days, but summarized in a way that the company says will not reveal any individual's travels. (Politico)
The ride-hailing businesses of Uber and Lyft have shrunk by more than half in recent weeks compared with a year ago as a result of the coronavirus pandemic, according to people at the companies with knowledge of the figures. At Uber, the impact on ride-hailing revenue could be somewhat smaller because Uber has been paying drivers a lower share of passenger fares than it did last year. Taking that change into account, Uber’s revenue from passenger rides, after paying drivers, is likely to be less than $450 million a month. That compares with about $800 million in monthly passenger revenue that Uber generated in last year’s first quarter. (The Information)
Twitter has deleted 20,000 fake accounts linked to the governments of Serbia, Saudi Arabia, Egypt, Honduras and Indonesia, saying they violated company policy and were a “targeted attempt to undermine the public conversation.” (The Guardian)
MIT Technology Review released its annual list of technological advances they will make a real difference in solving important problems – breakthroughs that will truly change how we live and work: Unhackable internet; Hyper-personalized medicine; Digital money; Anti-aging drugs; AI-discovered molecules; Satellite mega-constellations; Quantum supremacy; Tiny AI; Differential privacy; Climate change attribution. (MIT Technology Review)
Smart Links
Wisconsin's April 7 primary election will go on as scheduled, under the ruling of a federal judge. (Milwaukee Journal Sentinel)
The U.S. State Department won’t be processingnew passports and renewals, except for emergency cases because of the coronavirus pandemic. (Los Angeles Times)
Cannes Lions 2020 Festival & Awards cancelled. (Cannes Lions)
New York Says All Open Houses Must be Virtual. (Mansion Global)
Mexico halts production of Corona beer amid virus outbreak. (The Independent)
Mathematical proof that rocked number theory will be published. (Nature)
This man has lived alone on an island for 31 years. (National Geographic)