White House requires masks for staff
As more foreign and state governments outline the early stages of reopening, World Health Organization officials say countries that have already lifted lockdowns saw a jump in Covid-19 cases. New York Gov. Andrew Cuomo said some of the state’s restrictions will lift on Friday, and LA County beaches were set to reopen Wednesday. Meanwhile, the Food and Drug Administration continues to fast-track coronavirus-related treatments and tests: A faster, cheaper Abbott Labs test was granted emergency use approval.
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 4.1 million
- Global deaths: At least 284,883
- US cases: More than 1.3 million
- US deaths: More than 80,000
The data above was compiled by Johns Hopkins University.
8:30 pm: Mylan CEO says its global supply chain helped it experience ‘minimal disruption’
8: pm: Robin Hood announces it has raised $115 million for New York
Robin Hood on Monday announced that it raised $115 million to help those hit hardest by the coronavirus in New York through a virtual telethon in conjunction with iHeartMedia.
The organization announced the news on CNBC. The telethon, which was hosted by Tina Fey, included musical performances from Billy Joel, Bon Jovi, Mariah Carey and Sting —Salvador Rodriguez
7:30 pm: Despite local Covid-19 health orders, Tesla reopens Fremont car plant
Telsa CEO Elon Musk restarted production at the company’s Fremont, California factory this week in defiance of local health orders. Musk has been fighting against the orders since they were implemented in March to curb the outbreak of Covid-19 in Fremont, which is part of Alameda County.
On Monday, Musk tweeted with dramatic flair that “Tesla is restarting production today against Alameda County rules. I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.” (In fact, Tesla employees were producing vehicles at the plant this weekend, CNBC confirmed),
California Governor Gavin Newsom was taken aback when a reporter informed him the plant had reopened already, during a Monday Covid-19 press conference. And later in the afternoon, Alameda County officials issued a clarifying press statement, which said: “We have notified Tesla that they can only maintain Minimum Basic Operations until we have an approved plan that can be implemented in accordance with the local public health Order.” The county said Tesla must improve employee health screening procedures, among other things, before it can obtain a green light to reopen.
“We hope that Tesla will likewise comply without further enforcement measures,” the county added. —Lora Kolodny
7:15 pm: Trump storms out of press conference after reporters challenge him on testing
President Donald Trump abruptly and angrily left a White House press briefing on coronavirus testing Monday after bitter exchanges with two reporters.
CBS News White House correspondent Weijia Jiang asked Trump, “You have said many times that the U.S. is doing far better than any other country when it comes to testing. Why does that matter? Why is it global competition to you, if every day Americans are still losing their lives, and we are still seeing more cases every day?”
“They’re losing their lives everywhere in the world,” Trump said to Jiang, who is Chinese American. “And maybe that’s a question you should ask China. Don’t ask me. Ask China that question, okay? If you ask them that question, you may get a very unusual answer.”
Moments later, Trump called on CNN’s Kaitlan Collins, then refused to answer questions when he realized the woman behind the protective mask was Collins. When she protested, he abruptly left the lectern and went inside.
The two fiery exchanges effectively drowned out the message of what the White House had hoped would be an event highlighting U.S. progress on coronavirus testing. —Christina Wilkie
6:52 pm: Trumps mulls requiring coronavirus testing for nursing home residents
A view of a patient being wheeled out of a nursing home in Flushing Queens New York USA during coronavirus pandemic on April 22, 2020.
John Nacion | NurPhoto | Getty Images
6:43 pm: Kentucky opens horse racing, Massachusetts releases reopening plan
A woman cycles past tourist shops along the boardwalk, a day before the coronavirus disease (COVID-19) restrictions are relaxed in Ocean City, Maryland, May 8, 2020.
Kevin Lamarque | Reuters
States across the country moved closer to a full reopening on Monday.
- In Kentucky, manufacturing and construction operations were allowed to resume, as was horse racing, though no fans can attend.
- Massachusetts Gov. Charlie Baker released a much-anticipated reopening plan for the state that includes four phases.
- In Rhode Island, which entered the first phase of its reopening plan on Saturday, nonessential retailers, as well as construction and manufacturing businesses, continued to reopen.
For more on states’ recovery progress, click here. —Hannah Miller
6:28 pm: US mall owner Simon Property plans to have 50% of its properties open within the week
Shoppers ascend and descend escalators at the King of Prussia Mall, owned by Simon Property Group, United State’s largest retail shopping space, in King of Prussia, Pennsylvania.
Mark Makela | Reuters
Simon Property Group CEO David Simon said that about 50% of the real estate owner’s properties will be open again within the next week. Simon operates about 200 malls and outlet centers across the country, making it the biggest mall owner in the U.S.
It started reopening malls in states including South Carolina and Georgia on May 1. “Our tenants are eager to reopen their stores, and we are working with them to do so,” Simon said.
Simon reported first-quarter earnings Monday evening, where its quarterly profits fell 20.2%. Simon did not break out how much rent it collected from tenants during the first quarter. —Lauren Thomas
6:15 pm: Visitors flock to South Dakota casinos after reopening
Casinos saw big business this past weekend after being allowed to reopen in South Dakota. CNBC’s Contessa Brewer reports that a reason for the high occupancy at gaming resorts was “cabin fever.”
Casinos were allowed to reopen in Montana as well, but are not yet open in Nevada. —Hannah Miller
5:30 pm: Mark Cuban: White House safeguards need to be US norm
Mark Cuban told CNBC that the White House’s coronavirus prevention standards must become “the national standard,” suggesting consumers and employers alike will not be comfortable until that happens. “Whatever the White House is doing for the president and vice president, that’s the protocol I want to use for my employees. And if I can’t adhere to that, then why would I put them at risk?” Cuban said on “Squawk Box.”
The billionaire entrepreneur and “Shark Tank” investor said he believes the U.S. could get to that point. “I just don’t know when,” said Cuban, who added he is not going out to eat at restaurants in Texas yet, despite limited dine-in service being offered. Most Americans do not have access to daily Covid-19 testing, Cuban said, and “that’s the problem.” —Kevin Stankiewicz
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank,” on which Mark Cuban is a co-host.
5:15 pm: Second study in less than a week concludes hydroxychloroquine may not be helpful
U.S. President Donald Trump speaks during a press briefing about coronavirus testing in the Rose Garden of the White House on May 11, 2020 in Washington, DC.
Drew Angerer | Getty Images
Another study shows that hydroxychloroquine — a drug President Donald Trump said showed promise in treating the coronavirus — appears to not help Covid-19 patients and, instead, places them at increased risk of a heart attack. The New York State Department of Health, in partnership with the University of Albany, had been conducting a so-called observational study that researchers hoped could shed some insight into the drug’s potential effectiveness.
They analyzed more than 1,400 medical records of hospitalized patients with Covid-19 across 25 hospitals in the New York metro area between March 15 and March 28. “This observational study has given us an important early look at some key questions related to prescribing patterns of hydroxychloroquine, azithromycin and chloroquine,” David Holtgrave, dean at the University of Albany’s School of Public Health and a researcher working with the state, said in a statement to CNBC. “Unfortunately, we did not observe benefits of the most used drug (hydroxychloroquine with or without azithromycin) in this group of seriously ill, hospitalized patients.” —Berkeley Lovelace Jr.
5 pm: LA County beaches to reopen on Wednesday
Lifeguards patrol an empty beach in front of the Huntington Beach Pier on May 3, 2020 in Huntington Beach, California.
Michael Heiman | Getty Images
Los Angeles County officials announced that beaches will be allowed to reopen with limitations starting this Wednesday. Ocean and exercising actives like surfing, swimming, walking and running will be allowed, while gatherings or sunbathing, picnicking and biking are not, according to county officials.
Face coverings will also be required out of the water and beachgoers must be 6 feet apart.Gov. Gavin Newsom has said that beaches in the southern part of the state, including those in Orange, Los Angeles, and San Diego counties, have raised alarm bells after reports showed large gatherings of people not following social distancing guidelines. Newsom ordered the beaches in Orange County to close on April 30 but reversed his order after local officials made safety modifications to beach rules. —Noah Higgins-Dunn
4:45 pm: White House requires staff to wear masks in West Wing
U.S. Health and Human Services (HHS) Secretary Alex Azar wears a protective face mask among other officials and media wearing masks as U.S. President Donald Trump holds a coronavirus disease (COVID-19) outbreak response briefing in the Rose Garden at the White House in Washington, May 11, 2020.
Kevin Lamarque | Reuters
The White House is issuing a requirement for all staffers to wear masks or facial coverings when entering the West Wing of the building, NBC News reported, citing two sources familiar with the matter. The memo also told staff members not to visit the West Wing, where the Oval Office is located unless necessary.The new regulation comes after two staffers close to President Donald Trump and Vice President Mike Pence tested positive for Covid-19. —Kevin Breunninger
4:20 pm: Western States Pact asks for $1 trillion in aid
California Gov. Gavin Newsom announced that 150 hotels have agreed to give deep discounts to health care workers logging long hours in hospitals while dealing with coronavirus outbreak, during his daily news briefing at the Governor’s Office of Emergency Services in Rancho Cordova, Calif. Thursday, April 9, 2020.
Rich Pedroncelli | Pool | AP
California has joined with Oregon, Washington, Nevada and Colorado to ask the federal government for $1 trillion in aid, according to a tweet from California Gov. Gavin Newsom. Newsom said the funds will support schools, public health and public safety services. These states make up the Western States Pact, a coalition that is working together to establish a regional recovery amid the pandemic. —Hannah Miller
4 pm: WHO says discharged patients reporting prolonged symptoms, relapses
The World Health Organization is partnering with hospitals and governments around the world to coordinate data collection and gain a more complete picture of how Covid-19 affects the human body. Researchers are still learning every day about how the virus attacks the body and what kinds of symptoms it causes.
Months into the pandemic, scientists are now learning what recovery from Covid-19 looks like, and it has been longer than expected for many, executive director of the WHO’s emergencies program Dr. Mike Ryan said.
“Certainly, there have been some reported cases of putative relapse, so, people who have fallen sick again,” he said. “A lot of work is going now to see whether people have been reinfected or whether it’s just a chronic part of the condition.”It’s unclear whether people are truly relapsing or some symptoms are sticking for longer than expected, Ryan said. He added that many people “remain quite frail, quite without energy and struggle to get back to full health.” —William Feuer
3:56 pm: Choice Hotels CEO says business is increasing but will be ‘sporadic’
The return of travel in the United States will be “regional and sporadic,” but business has increased over recent weeks, Choice Hotels CEO Patrick Pacious said on “The Exchange.”
“It’s what we’re seeing today. The Southeast part of the country, where a lot of our hotels are located, did rebound sooner,” Pacious said.
More than 90% of the company’s U.S. hotels have stayed open during the pandemic, Pacious said, though the company has made some cutbacks to conserve cash. The company has suspended its dividend and buybacks and cut executive pay. More than half of its U.S. hotels have participated in government loan programs, Pacious said. —Jesse Pound
3:31 pm: Stimulus checks have gone out to 130 million Americans — here’s where they went
Coronavirus stimulus checks totaling more than $200 billion have been paid to approximately 130 million Americans, according to the IRS.
The U.S. government is in the process of sending out payments of up to $1,200 per individual based on their income. More than 150 million payments total are expected to go out.
The IRS’ latest update also includes data on how much Americans have received in stimulus payments by state. Unsurprisingly, big, high-population states including California, Texas and Florida lead the pack.
But broken down per capita, the numbers tell a different story of which states received the highest payments based on their population, according to a CNBC analysis of the data.
Meanwhile, the IRS is asking individuals to submit their direct deposit information by Wednesday, May 13, in order to get their money faster. Individuals who do not submit their information by then will have to wait for mailed paper checks. —Lorie Konish
3:22 pm: Have we hit bottom? Some executives say they’ve seen ‘green shoots,’ while others warn of years-long recovery
After a sharp decline in March and April, some company executives say they see signs that their businesses are on the path to recovery — or at least that the worst is over.
Uber and Lyft said ride volume grew in late April and early May. Some retailers, such as Target and CVS, said sales have started to pick up with the lift of stay-at-home orders. Automakers are beginning to see a rebound, according to industry data and executives.
But those hopeful numbers come with caveats: The reopening of the economy in some states brings the risk of further outbreaks, as people gradually return to stores, restaurants and barber shops. With no vaccine or medical treatment, people may still avoid public places. And U.S. unemployment of nearly 15% revealed in the April jobs report, may cause people to rein in spending.
In the hard-hit airline industry, leaders of JetBlue, American Airlines and United have acknowledged that days of travel demand feel far from returning. Their hope has been simpler: affirmation that passenger numbers won’t drop further. —Melissa Repko
3:18 pm: Pentagon Inspector General to examine Navy’s response
The Department of Defense Inspector General will evaluate the U.S. Navy’s response to coronavirus outbreaks on ships and submarines.
In a May 11 memo to the Department of the Navy, the Pentagon’s Inspector General’s office wrote that it will investigate “whether mitigation measures that are effective in preventing the spread of COVID-19 were implemented across the fleet.”
The U.S. Navy reported a total of 2,162 confirmed cases of the coronavirus. More than half of those cases were from sailors assigned to the USS Theodore Roosevelt or the USS Kidd. —Amanda Macias
2:43 pm: Some restrictions to lift in New York this week
Certain low-risk businesses and activities can resume across New York on Friday, according to Gov. Andrew Cuomo. Recreational activities like tennis and drive-in movie theaters as well as landscaping and gardening businesses can reopen, CNBC’s Noah Higgins-Dunn, Kevin Breuninger and Berkeley Lovelace Jr. report. Three regions in upstate New York — the Finger Lakes, the Southern Tier and Mohawk Valley — can enter phase one of New York’s reopening plan, meaning they can resume manufacturing, construction and agriculture, and allow curbside pickup at non-grocery retailers. —Hannah Miller
2:33 pm: Health officials identify more than 5,000 deaths in NYC that may have been related to coronavirus
Funeral home workers wheel a casket containing a COVID-19 victim as citizens form a line waiting for food distributed by a local community organization on May 8, 2020 in the Midwood neighborhood in Brooklyn, New York.
Andrew Lichtenstein | Corbis | Getty Images
The CDC identified more than 5,000 additional deaths in New York City between March and early May that may have been directly or indirectly caused by the coronavirus pandemic. The additional deaths may include people with the virus who did not have access to testing, who died outside of a health facility, or who became infected after receiving a negative test result, CNBC’s Berkeley Lovelace Jr. reports. As the epicenter of the outbreak in the U.S., New York City has seen more than 184,000 coronavirus cases and at least 19,789 deaths since March 1, according to data from Johns Hopkins University. —Hannah Miller
2:15 pm: WHO says countries that lifted lockdowns saw jump in cases
The World Health Organization said several countries that eased coronavirus restrictions, including China, have seen increases in the number of positive Covid-19 cases.
“In Wuhan, China, the first cluster of cases since the lockdown lifted was identified. Germany has also reported an increase in cases since the easing of restrictions,” WHO Director-General Tedros Adhanom Ghebreyesus said during a press conference. Bars and clubs were also shut down in South Korea as a confirmed cases led to many contacts being traced.
Before any country begins to lift restrictions, it should have the epidemic under control, ensure that its health systems are able to cope with a potential resurgence, and have necessary testing, tracing and isolating infrastructure in place, Tedros said. —Jasmine Kim
1:55 pm: UK PM Boris Johnson’s new ‘stay alert’ coronavirus warning criticized as ‘confused’ and ‘nonsensical’
The U.K. has changed its overall coronavirus safety message from “stay home,” to “stay alert,” resulting in criticism from devolved nations Scotland and Wales as well as communications experts.
Prime Minister Boris Johnson urged the public to “Stay alert, control the virus, save lives,” in a televised address on Sunday night, replacing the previous mandate: “Stay at home, protect the NHS (the National Health Service), save lives.”
Joe Stubbs, VP and Global Brand Director at consultancy Interbrand, said that clarity is needed.″’Stay alert’ is open to misinterpretation. It’s not absolute — at a critical moment, when people are looking for certainty. What are the public meant to be alert to — other people, signs of illness, a failure to social distance?” he wrote in an email to CNBC.O n Sunday, Scottish First Minister Nicola Sturgeon stated on Twitter that “Stay home” would continue to be her message to Scotland, while her Welsh counterpart Mark Drakeford said the “Stay home” directive would remain the same. —Lucy Handley
1:40 pm: Pickups are outselling passenger cars for the first time ever in the US
General Motors Co. Chevrolet pickup trucks sit on display for sale at a car dealership in Louisville, Kentucky, U.S., on Wednesday, Jan. 31, 2018. General Motors Co. is scheduled to release earnings figures on February 6.
Luke Sharrett| Bloomberg | Getty Images
Not even the coronavirus can deter America’s love of pickup trucks.While retail sales of cars were cut in half during the crisis in March and April, J.D. Power reports sales of pickups were down less than 10% during that time compared to the previous year.
Boosted by 0% financing for up to 84 months, J.D. Power reports U.S. sales of pickups are outselling all passenger cars for the first time on record. Retail sales were expected to slow this year before the pandemic, but the outbreak caused demand to plunge even more. Retail sales do not include sales to fleet customers such as the government or businesses.
The continued demand for large pickups could soon turn into a problem, specifically for General Motors, Ford Motor and Fiat Chrysler, which dominate the segment. J.D. Power says inventory levels are nearly half of what they would typically be due to the coronavirus, which has forced shutdowns of U.S. plants since March. —Michael Wayland
1:27 pm: Disney will increase Shanghai theme park capacity by 5,000 per week
SHANGHAI, CHINA –
Disney CEO Bob Chapek said the company will up the attendance at its reopened Shanghai theme park by 5,000 each week, until it reaches the capacity set by the Chinese government.
Disney is mandated to operate the park at 30% capacity, or about 24,000 visitors, though Chapek said the company is currently operating well below that limit. Disney declined to provide specific attendance figures at Shanghai Disney. —Jessica Bursztynsky
1:07 pm: NYC kids suffering serious health issues from coronavirus inflammatory syndrome
Dr. Oxiris Barbot attends Mayor bill de Blasio briefing on first registered community transfer covid-19 patient in New York at City Hall.
Lev Radin | Pacific Press | Getty Images
Children affected with coronavirus inflammatory syndrome are experiencing severe health conditions such as heart and kidney failure, according to New York City Health Commissioner Dr. Oxiris Barbot.
The syndrome is similar to Kawasaki disease, which is common in young children and can cause a high fever among other symptoms, CNBC’s Berkeley Lovelace Jr. and Jasmine Kim report.
Early diagnosis through testing can help children escape the syndrome’s most serious consequences, according to Barbot. —Hannah Miller
12:19 pm: New home listings are down while potential buyers begin searching as pandemic restrictions ease
As stay-at-home restrictions are loosened across the country, homebuyers are touring residences while wearing masks or through virtual open houses.
However, while homebuyers may be eager, sellers have been reluctant to put their houses on the market, CNBC’s Diana Olick reports.
In the week ending May 2, total listings were down 19% annually and new listings were down 39%, according to data from realtor.com. —Hannah Miller
12:07 pm: House will vote on its next coronavirus relief bill Friday at the earliest
The House will not vote on its next coronavirus rescue bill until Friday at the earliest because it is still working on the package.
House Majority Leader Steny Hoyer told representatives that they will get 72 hours notice before returning to Washington for votes. On Thursday, he told lawmakers he hoped the House would vote on its next aid plan this week.
Democrats have pushed for an additional emergency package to provide relief to state and local governments and build up U.S. Covid-19 testing capacity, among other measures. Republicans have shown little appetite for quickly passing another rescue plan as the federal tab for the coronavirus response approaches $3 trillion.
If the House passes a Democratic-written rescue proposal, it is unlikely to get through the GOP-controlled Senate. —Jacob Pramuk
11:53 am: CityMD admits mistake in telling 15,000 people they’re immune to coronavirus
A medical worker organizes antibody tests on April 29, 2020 in White Plains, NY. One possible option in the treatment of COVID-19 is to give patients the plasma of those who have already recovered from the disease, in the hope that the blood will have the antibodies.
Pablo Monsalve | VIEW press | Getty Images
Urgent care provider CityMD has acknowledged that it mistakenly told about 15,000 people who received positive antibody test results that they’re immune to the coronavirus.
Public health officials and researchers have said there’s not enough data to conclude that those with antibodies are immune to reinfection.
In a statement to CNBC, CityMD said has corrected the information and is reaching out to affected patients. The mistake underscores the level of confusion that surrounds the nature of the new virus as debate rages on social media.
Serological, or antibody, tests can indicate whether someone has previously been infected by the coronavirus. Public health specialists have cautioned that the tests should not be used for individual diagnosis because of potentially inaccurate results. Instead, the tests should generally be used for population-wide studies to determine how broadly the virus has spread throughout the population. —Will Feuer
11:37 am: BioAegis readies to test its ‘inflammation regulator’ as coronavirus therapy
BioAegis Therapeutics, a New Jersey-based private clinical-stage company that focuses on infectious, inflammatory and degenerative diseases, believes its plasma gelsolin therapy is a viable therapeutic option for treating Covid-19 patients.
The company is awaiting FDA approval to accelerate its clinical trial of the therapy on Covid-19 patients.
Plasma gelsolin is an abundant, naturally occurring circulating protein found in the human body’s immune system. The late Dr. Thomas Stossel, a Harvard medical professor and head of translational medicine at Brigham and Women’s Hospital in Boston, discovered plasma gelsolin in his Harvard lab nearly two decades ago and founded BioiAegis Therapeutics in 2011 to build a portfolio of therapies around it. The company holds 50 patents and has studied this unique inflammatory’s effects on a wide range of conditions, including influenza, pneumonia, arthritis, Alzheimer’s, lupus, inflammatory bowel disease and multiple sclerosis. In its Phase 1b/2a clinical trials, BioAegis’ lead product, recombinant human plasma gelsolin therapy (rhu-pGSN), proved to help individuals suffering from pneumonia and severe lung injury, two complications caused by the coronavirus, with no side effects.
“We’ve been studying this exact same condition — not with this particular virus, but with severe flu, severe pneumonia — for years, so we feel like we are in the perfect position to treat this disease,” said BioAegis CEO Dr. Susan Levinson. —Barbara Booth
11:19 am: UK government reveals details of how its lockdown will be relaxed
Britain’s Prime Minister Boris Johnson records a televised message to the nation released on May 10, 2020 in London, England.
No 10 Downing Street | Getty Images
In a 50-page document released Monday, the U.K. government published details of how the country’s lockdown will start to be lifted.
Changes outlined in the document include:
- Those who cannot work from home are being “actively encouraged” to go back to work
- Primary schools could be reopened from June 1
- People in England are advised to wear a face-covering in enclosed public spaces.
- Citizens are allowed to meet up with one person from outside their household, as long as they’re outdoors.
- People traveling from abroad — who are not coming from countries on a short list of exemptions — will soon be required to self-isolate for two weeks on arrival in the U.K.
The measures are conditional on key criteria being met, such as the rate of infection remaining low. It also largely focuses on England, with the devolved governments in the U.K. having their own guidelines. —Matthew Clinch and Katrina Bishop
11:07 am: Governments could raise taxes on the rich to mitigate coronavirus impact, economist says
The world’s wealthiest people could be about to see tax hikes, according to one economist, who told CNBC that governments may do this to bolster their finances following the coronavirus crisis.
Roger Bootle, chairman of Capital Economics, said that if countries’ deficits don’t come down dramatically on the back of economic growth, “then something will have to be done.”
He said a number of countries “might feel that taxes need to go up for some social reason. … In particular, it’s quite possible in some countries you’ll see the top taxes — wealth taxes — go up.” —Katrina Bishop
10:58 am: Treasury Secretary Mnuchin sides with Tesla CEO on plant reopening
Treasury Secretary Steven Mnuchin speaks during the daily briefing on the novel coronavirus, COVID-19, in the Brady Briefing Room at the White House on April 2, 2020, in Washington, DC.
Mandel Ngan | AFP | Getty Images
“I agree with Elon Musk. He’s one of the biggest employers and manufacturers in California, and California should prioritize doing whatever they need to do to solve those health issues so that he can open quickly and safely,” Mnuchin said.
Tesla’s CEO has been pushing to resume production at the plant despite local officials arguing against a sudden move. Musk threatened on Saturday to pull the company out of the state due to the closure. —Jessica Bursztynsky
10:36 am: Toyota plans to cut North American production by 29% through October
Toyota Motor plans to reduce production in North America by nearly a third through October and said it anticipates that it’s going to take some time for output to return to normal, Reuters reported, citing a source.
Toyota will build around 800,000 vehicles through October at plants in the U.S., Canada and Mexico, the person told Reuters. That is down 29% from the same period last year. —Terri Cullen
10:27 am: Detroit automakers weathering pandemic
General Motors Chairman and CEO Mary Barra (and Ventec Life Systems CEO Chris Kiple talk with a worker while touring the GM manufacturing facility in Kokomo, Indiana on April 14, 2020.
No one could have prepared for Covid-19, but Detroit automakers are weathering the storm without talk of bankruptcies or the need for the same level of assistance the airline industry just received.
It’s a stark contrast from 2008 and 2009. Much of the optimism now is the result of the Great Recession. During that time, Detroit automakers were forced to shed billions in capital expenditures and structural costs. From then on, executives such as General Motors CEO and Chairman Mary Barra made it their mission to fortify balance sheets in preparation for the next downturn, despite not knowing when or how it would occur.
Morgan Stanley conducted a “shutdown analysis” that gave it “confidence” that GM, Ford and others “can largely avoid the fate many companies experienced in 2008/2009.” GM was ahead of the curve in preparing for a downturn. It exited unprofitable markets like Europe, and in November 2018 announced plans to shed thousands of jobs and close factories as part of a $6 billion cost-saving plan through 2020, which remains on track. —Michael Wayland
10:22 am: Consumer advocate fears rise of ‘vehement’ debt collectors
Debt collectors could present a new threat to consumers as unemployment woes worsen, says Richard Cordray, consumer advocate and former director of the Consumer Financial Protection Bureau. He sat down with CNBC to discuss the coronavirus downturn and its effect on consumers.
Some 20.5 million jobs were lost in April, bringing the unemployment rate to 14.7%, according to the Labor Department. Persistent unemployment will lead to debt collectors taking a tougher stance on borrowers, he said.
“They’ll potentially go over the legal lines they’re not supposed to cross in terms of pursuing debt collection,” said Cordray.
“It’s one thing to fall behind on your bills and potentially have some time to figure it out and catch up on payments,” he said. “It’s another thing to have huge disruptions that come from losing your home, or your car, or being forced into bankruptcy, or having your credit ruined, which will start happening to consumers as this persists over time.” —Darla Mercado
10:15 am: Working from home is here to stay, even when the economy reopens
As the U.S. economy began to go into lockdown, forcing many Americans to work from home, companies in technology, insurance and financial services invested heavily in remote work tools.
As workers and managers began to adapt to the new normal, it seems unlikely companies will be returning to the old way of doing business. The first batch of employees to return to the office will be the ones who are itching to get back, but even that won’t start happening for weeks or months.
“We’re going to see this come back more slowly than you might have expected,” said Liz Fealy, who runs the global workforce advisory group at EY. As part of the series “The Next Normal,” CNBC’s Ari Levy examines what happens when office life reopens and what becomes of remote work. —Terri Cullen
10:04 am: Abbott Labs wins FDA emergency use for antibody test
Abbott Laboratories was granted emergency use approval by the Food and Drug Administration for a new coronavirus antibody test the company says can exclude false positives 99.6% of the time and exclude false negatives 100% of the time.
The authorization means laboratories will be allowed to use the test even though it has not been formally approved or cleared by the FDA. Last week, the FDA tightened rules for coronavirus antibody tests, ordering manufacturers to submit emergency use authorization forms and data proving the tests work within 10 days or face possible removal.
The tests can indicate whether a person has had Covid-19 and was either asymptomatic or recovered.
Abbott plans to ship nearly 30 million tests in May and will have the capacity to ship 60 million tests in June, the company said. —Berkeley Lovelace, Jr.
9:55 am: White House advisor Navarro threatens China with retaliation over virus
White House advisor Peter Navarro threatened unspecified retaliation against China over coronavirus, warning during an interview with CNBC that “a bill has to come due” for the country.
“They inflicted tremendous damage on the world, which is still ongoing,” Navarro said in the “Squawk Box” interview. “We’re up to close to $10 trillion we’ve had to appropriate to fight this battle.”
The comments come as tensions escalate between the U.S. and China, the world’s two largest economies, with each seeking to pin blame on the other for the spread of Covid-19. The phase one trade deal reached earlier this year seems to hang in the balance. While trade negotiators for the two countries continue to project confidence, President Donald Trump said Friday he was “very torn” over whether to scrap the pact. —Tucker Higgins
9:38 am: Tudor Jones says US could have the ‘Second Depression’ if lockdown remains a year from now
Paul Tudor Jones speaking at the World Economic Forum in Davos, Switzerland, January 21, 2020.
Adam Galica | CNBC
Hedge fund investor Paul Tudor Jones told CNBC if the coronavirus pandemic doesn’t get contained for another year and the lockdown remains in place, we will have the “Second Depression.”
“Just depends on whether, unfortunately, this goes to a year with this kind of a lockdown,” Jones said on CNBC’s “Squawk Box.”
The Great Depression from 1929 to 1939 was the worst economic downturn in U.S. history. The founder and CEO of Tudor Investment said the country may have trouble than others following contact tracing to quickly contain the virus because of how America feels about individual freedoms.
“If you look at the Asian countries that are succeeding and beating this, they are doing it because they place a much greater emphasis on society values than they do on individual rights,” Jones said. “Americans are too different. I don’t think we would be able to come together and do that.” –Yun Li
9:30 am: How shopping for clothes is going to change in a post-Covid-19 world
A new study by retail predictive analytics company First Insight found 65% of women and 54% of men said they will not feel safe trying on clothes in dressing rooms due to Covid-19.
Clothing retailers are trying to figure out how to adapt and to make sure their stores and dressing rooms are safe. Some, such as Kohl’s, are closing fitting rooms until further notice. Many retailers are also holding aside merchandise that has been tried on by shoppers or returned to the stores for at least 24 hours before putting them back on shelves. Suitsupply is installing clear partitions to separate employees from customers during alterations.
“The coronavirus has moved the industry away from high touch to low touch,” First Insight Chief Executive Greg Petro said. —Lauren Thomas
8:19 am: Shanghai Disneyland reopens at 30% capacity
8:05 am: Under Armour sales take a hit amid pandemic
Under Armour reported an adjusted loss of 34 cents per share on revenue of $930.2 million during its fiscal first quarter ended March 31. Sales were down 23% overall from a year earlier, as fewer people stocked up on its sneakers and workout garb. Under Armour said roughly 15 percentage points of that decline stemmed from the Covid-19 crisis. The athletic apparel and sneaker maker ended the first quarter with cash and cash equivalents of $959 million.
As some retailers such as Macy’s are already reopening stores, hoping to bounce back from the crisis sooner rather than later, Under Armour also said, “the pace and timing of store openings, and traffic patterns when the stores re-open, remain highly uncertain.” —Lauren Thomas
7:09 am: New antigen tests are ‘another tool,’ former FDA chief says
A new coronavirus test is rolling out that could cost just $5 and offer results in minutes, former Food and Drug Administration Commissioner Scott Gottlieb said.
The FDA on Saturday issued emergency use authorization for Quidel‘s new antigen test. The diagnostic tests quickly detect fragments of proteins known as antigens found on or within the virus by testing samples collected from the nasal cavity using swabs.
Gottlieb, a CNBC contributor who sits on the boards of Pfizer and biotech company Illumina, said some 40,000 doctors already have the equipment needed to process the tests because it’s the same machine that would be used for flu and strep throat.
However, the new test is only about 85% sensitive, Gottlieb said, so test results will still need to be confirmed with another kind of test like the more standard diagnostic PCR test. He added that the test is best used to confirm that symptomatic individuals are in fact infected with the coronavirus, but not for screening potentially healthy people.
“But the virtue is, for the first 85 patients, you’ve now effectively diagnosed them right away in the doctor’s office in about five minutes, very inexpensively without having to reflex, without having to send off a PCR-based test,” he said. “So this really does expand the ability to test within the doctor’s office. And it’s another tool, another layer of testing.” —Will Feuer
6:45 pm: Germany says it takes uptick in virus reproduction rate seriously
Citizens stand in a queue to buy anti-aerosol masks and disposable medical masks at a sales booth in front of the Beuel town hall during the novel coronavirus crisis on April 29 2020 in Bonn, Germany.
Germany’s health ministry said Monday it takes a rise in the country’s virus reproduction rate seriously, but a higher number does not mean there is an uncontrolled outbreak, according to a Reuters report.
The reproduction number is a measure of how many people an infected individual will go on to infect, on average. Health authorities have aimed to keep the number below 1 in order to gradually reduce the number of infections, but in Germany, the number has risen to 1.1, according to the Robert Koch Institute for disease control.
A number above 1 means the number of infections is increasing. Germany started to lift lockdown restrictions around three weeks ago. —Holly Ellyatt
Read CNBC’s coverage from CNBC’s Asia-Pacific and Europe teams overnight here: Russia sees record daily rise in new cases; Spain death toll at seven-week low