Bhinneka News Online: Monday Morning Briefing: U.S. auto industry begins reopening plants

Monday, 18 May 2020

Monday Morning Briefing: U.S. auto industry begins reopening plants

What you need to know about the coronavirus today

Back on the road
The U.S. auto industry is slowly returning to life, with assembly plants scheduled to reopen on Monday and suppliers gearing up in support as the sector that employs nearly 1 million people seeks to recover from the coronavirus pandemic. General Motors, Ford and Fiat Chrysler all have been preparing for weeks to reopen their North American factories in a push to restart work in an industry that accounts for about 6% of U.S. economic activity.

Track the spread of the virus with this state-by-state and county map.

Hitting new lows
Japan's economy became the world's largest to slip into recession after the pandemic, first-quarter data showed on Monday, putting the nation on course for what could be its deepest postwar slump. The GDP numbers underlined the broadening impact of the outbreak, with exports plunging the most since the devastating March 2011 earthquake as global lockdowns and supply chain disruptions hit shipments of Japanese goods.

China on alert for new wave
While much of the rest of the world is experimenting with easing restrictions, one Chinese province is back in a partial lockdown after a spate of infections. Jilin in the northeast reported two more confirmed cases over the weekend to take its total number of new infections to 33 since the first case of the current wave was reported on May 7.

Pop-up carparks
Australia's most populous state New South Wales was encouraging its residents to avoid peak-hour public transport as it began its first full week of loosened lockdown measures, which saw people heading back to offices. To aid with maintaining social distancing, extra bicycle lanes and pop-up car parking lots would be made available, officials said.

From Breakingviews: Corona Capital - Crisis M&A, Emirates, Lithium. Read concise views on the pandemic’s financial fallout from Breakingviews columnists across the globe.

Reuters reporters and editors around the world are investigating the response to the coronavirus pandemic.

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Follow the money

What did eight weeks and $3 trillion buy the U.S. in the fight against coronavirus? Unemployment checks are flowing, $490 billion has been shipped to small businesses, and the Federal Reserve has put about $2.5 trillion and counting behind domestic and global markets. Yet two months into the fight against the most severe pandemic to arise in the age of globalization, neither the health nor the economic war has been won. Many analysts fear the country has at best fought back worst-case outcomes.

U.S. officials are crafting proposals to push American companies to move operations or key suppliers out of China that include tax breaks, new rules, and carefully structured subsidies. Interviews with a dozen current and former government officials, industry executives and members of Congress show widespread discussions underway - including the idea of a “reshoring fund” originally stocked with $25 billion - to encourage U.S. companies to drastically revamp their relationship with China.

Japan’s SoftBank reported a stunning $18 billion loss at its giant Vision Fund, pushing Masayoshi Son’s conglomerate to a record loss and highlighting the deepening crisis at its portfolio companies from the global downturn. SoftBank also said Alibaba co-founder Jack Ma will resign from its board, the latest departure by a high-profile ally of the group's CEO.

QE or not QE? China’s plans to step up stimulus support for the virus-ravaged economy have promoted a heated debate among economists and advisers over whether the central bank should monetize its fiscal deficit through quantitative easing.