Business Highlights

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Powell warns of a possible sustained recession from pandemic

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell warned of the threat of a prolonged recession resulting from the viral outbreak and urged Congress and the White House to act further to prevent long-lasting economic damage. The Fed and Congress have taken far-reaching steps to try to counter what is likely to be a severe downturn resulting from the widespread shutdown of the U.S. economy. But Powell cautioned that numerous bankruptcies among small businesses and extended unemployment for many people remain a serious risk. He spoke a day after House Speaker Nancy Pelosi proposed a $3 trillion aid package that would direct money to state and local governments, households, and health-care workers.

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Faxes and email: Old technology slows COVID-19 response

NEW YORK (AP) — The U.S. created the internet, but you’d never know it given the chaotic way it collects vital pandemic data. Public health officials nationwide rely on faxes, email and spreadsheets to gather infectious disease data and share it with federal authorities. This data dysfunction is hamstringing the nation’s coronavirus response by, among other things, slowing the tracing of people potentially exposed to the virus. The Trump administration has responded by setting up a parallel reporting system run by a Silicon Valley tech company, but the usefulness and accuracy of that system remains unclear. ___

Virus spikes could emerge weeks after US economic reopenings

NEW YORK (AP) — While U.S. states are beginning to restart their economies after months of paralyzing coronavirus lockdowns, it could take weeks until it becomes clear whether those reopenings will cause a spike in COVID-19 cases. The outbreak’s trajectory varies wildly across the country, with steep increases in cases in some places, decreases in others and infection rates that can shift dramatically from neighbourhood to neighbourhood. A handful of states started easing their lockdowns about two weeks ago, with reopenings that now range from shopping malls in Texas to beach hotels in South Carolina and gyms in Wyoming. But scientists warn it could be weeks more until they know the health effects.

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Stocks drop again on worries about slow recovery for economy

NEW YORK (AP) — Stocks fell to their second straight loss on Wall Street Wednesday, weighed down by worries about a slow recovery for the economy. The S&P 500 lost 1.7%, and Treasury yields sank in another sign of pessimism after Federal Reserve Chair Jerome Powell warned about the threat of a prolonged recession. The sharpest losses hit stocks that most need a healthy economy for their profits to grow, such as energy companies, banks and smaller stocks. The market has been wavering the last few weeks as optimism about reopening the economy collides with worries about the dangers of lifting restrictions too soon.

Unforgivable? Restaurants fear loans won’t bring relief

NEW YORK (AP) — Restaurant owners across the country are worried that the government’s coronavirus relief loans won’t live up to their promise of forgiveness. Rules written by the Small Business Administration require companies to use their loan money within a specific time period and for specfic purposes. But many restaurants that are still unable to reopen or whose revenue has fallen sharply due to social distancing restrictions can’t meet the SBA requirements, and that could force many of them to repay part of their loans within two years. Congress has proposed some changes that give businesses more time to spend the loan money and more discretion over how to use it.

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US meat exports surge as industry struggles to meet demand

OMAHA, Neb. (AP) — U.S. meat exports are surging this spring even as the processing industry is struggling to meet domestic demand because of coronavirus outbreaks at processing plants that have sickened hundreds of workers. Although the situation could cause concern that American workers are risking their health to meet foreign demand, experts say it shouldn’t because much of the meat sold to other countries is cuts that Americans generally don’t eat. And at least one of the four major processors says it has reduced exports during the pandemic. The meat industry says that if companies manage to keep plants operating, there should be plenty of supply to satisfy both the U.S. and export markets.

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French lawmakers adopt bill on removing hate content online

PARIS (AP) — France’s parliament has approved a bill aimed at fighting hate online that requires online platforms and search engines to remove prohibited content within 24 hours starting July 1. Lawmakers adopted the proposed legislation on Wednesday. Submitted by French President Emmanuel Macron’s LREM party, the law allows for fines of up to $1.1 million. It targets texts, pictures, videos and web pages that incite hatred or violence, or that carry insults of a racist or religious nature. The bill faced vociferous opposition in France and beyond from critics who said it would curtail the democratic right to freedom of expression.

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The S&P 500 fell 50.12, or 1.7%, points to 2,820.00. The Dow Jones Industrial Average dropped 516.81 points, or 2.2%, to 23,247.97, and the Nasdaq composite lost 139.38, or 1.5%, to 8,863.17. The Russell 2000 index of small-cap stocks dropped 42.29 points, or 3.3%, to 1,233.25.

The Associated Press