W-Shaped Recovery
What You Need To Know
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The World
An internal Chinese report warns that Beijing faces a Tiananmen-like global backlash in the wake of the coronavirus outbreak that could tip relations with the United States into confrontation. Meanwhile, U.S. Secretary of State Mike Pompeo claimed there is “enormous evidence” the coronavirus outbreak originated in a Chinese laboratory – but did not provide any of the alleged evidence. (Reuters, The Guardian)
Lobbyists are shifting into high gear as Congress considers what could be a final round of pandemic aid, while CEOs worry about a W-shaped recovery and that restarting nonessential businesses in certain states could be a bad idea. (Wall Street Journal, The Finance 202)
Oil and gas output from some of the world’s top oil companies is set to drop by over 12% in the second quarter of 2020 to levels not seen in at least 17 years. (Reuters)
Warren Buffett told investors that Berkshire Hathaway has sold its entire stakes in the four largest U.S. airlines — American, Delta, Southwest, United. (CNBC)
Tyson Foods expects to continue idling meat plants and slowing production, signaling more disruptions to the U.S. food supply. (Reuters)
Live stream: Supreme Court holds oral arguments by teleconference for first time — and Justice Thomas asks questions. (NPR)
China plans to send Uygur Muslims from Xinjiang “re-education camps” to work in other parts of country. (South China Morning Post)
Israel’s High Court of Justice heard arguments about whether Prime Minister Benjamin Netanyahu can form the next government despite the bribery indictment pending against him. If the High Court endorses the deal, a government may form as early as Thursday. If the High Court nixes the deal, the country may go to new elections. (Jerusalem Post)
About 80 percent of employers are making changes to summer internship programs, including shortening the length or asking interns to work remotely. Several dozen companies are canceling programs and rescinding offers. (Washington Post)
Economy
J.Crew bankruptcy filing may not be the last for retailers, as clothing sales plummeted more than 50% last month. (NPR)
US state pension system financial strength has deteriorated to its weakest position in at least three decades. The aggregate funded ratio for US state pension plans dropped 12.2 percentage points during the first quarter to 62.6%. (Financial Times)
Hong Kong’s economy slumps 8.9% in worst contraction on record, topping 1998 when the city reeled from the Asian financial crisis. (South China Morning Post)
Emerging market currencies mark their biggest falls in 5 years, a magnitude last seen when China's renminbi devaluation panicked global financial markets. (Nikkei Asian Review)
US and European banks to set aside more than $ 50 billion in first quarter source loan charges, the largest such provision since the 2008-2009 financial crisis. US banks increased reserves for potential bad debt by 350% from the first quarter of last year to $25 billion. (Thakoni)
Nearly 90% of buyout groups said they expect to deploy capital in the next three to six months. (Private Equity News)
47% of U.S. adults, or about 120 million people, have credit card debt, up from 43% reported in early March. (CNBC)
Technology
Google engineers flirted with a Zoom acquisition — evaluating price and calculating the unit economics if it ran on Google’s servers — before launching a push to beat it. (The Information)
People are more willing to reveal personal information about themselves online using their smartphones compared to desktop computers, University of Pennsylvania researchers found. (Science Daily)
Apple announced its new MacBook Pro 13in laptop, focusing on changing performance, storage levels, improved memory and the Magic Keyboard. (Forbes)
The travel industry is experimenting with new digital tools, including a fever-detecting camera that screens travelers and a hotel-room cleaning robot. (Wall Street Journal)
Smart Links
Remembering the Kent State shootings 50 years later. (Akron Beacon Journal)
How deep-sea circulation creates the highest-record level seafloor hotspots of plastic. (Science Magazine)
Data visualization explains Jeff Bezos’ wealth one pixel at a time. (The Verge)
Pandemic tests Putin’s grip on power. (Financial Times)
At least 115 coronavirus vaccine projects are in process globally. (Washington Post)
The end of the open-floor office. (New York Times)
How old actually is Don Mattingly? (ESPN)
The Ashmolean Museum put its entire “Young Rembrandt” exhibition online. (Ashmolean Museum)
Good News
Weatherman’s dog crashes forecast, becomes internet’s new quarantine hero. (Huffington Post)
It’s Star Wars Day — #MayThe4thBeWithYou.
Go inside the Blue Angels cockpit as they fly over Washington D.C.
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