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Governors Assert Authority Over Reopening Their States

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P2JW106000-6-A00100-17FFFF5178F ****** WEDNESDAY,APRIL 15,2020~VOL. CCLXXV NO.88 WSJ.com HHHH $4.00 DJIA 23949.76 À 558.99 2.4% NASDAQ 8515.74 À 3.9% STOXX 600 333.91 À 0.6% 10-YR. TREAS. g 1/32 , yield 0.751% OIL $20.11 g $2.30 GOLD $1,756.70 À $11.90 EURO $1.0981 YEN 107.21 Sad Farewell at a Distance as Virus Keeps Mourners Away Airlines What’s News Agree to Federal Business&Finance Bailout he biggest U.S. airlines Treached an agreement in principle with the federal Largest U.S. carriers government on financial as- get billions in grants, sistanceaimed at prevent- ing layoffs in an industryhit loans as health crisis hardbythe pandemic. A1 erodes business Profits at JPMorgaN and Wells Fargo slid as the BY ALISON SIDER banks set aside billions to AND KATE DAVIDSON prepare for an expected flood of loan defaults. A1 WASHINGTON—Thebiggest Mall and shopping-center U.S. airlines reached an agree- ownersare compiling ablack- ment in principle with the fed- list of large, usually finan- S eral government on financial cially stable tenantsthat ha- assistanceaimed at preventing PRES ven’t paid their April rent. A1 layoffs in an industryhit hard TED by the coronavirus pandemic. The IMF said the global CIA SO TheTreasuryDepartment economyhas likely entered AS said Tuesdaythat 10 of the 12 arecession, warning of the Y/ GA largest airlines have told the worstdownturn sincethe ERIC government they intend to ac- Great Depression. A2 AT REST: Mourners watched from their vehicles at afuneral in San Antonio,Texas, on Tuesday, as the servicewas shown on alarge cept assistance from the $2.2 U.S. stocks surged, with screen outside because of coronavirus social-distancing requirements. States around the country areevaluating when to loosen restrictions. trillion economic relief pack- the Nasdaq, S&P 500 and age passed last month. Dow gaining 3.9%, 3.1% Thebiggest domestic air- and 2.4%, respectively. B11 lines—United Airlines Hold- ings Inc., Delta Air Lines Inc., Boeing said it suffered American Airlines Group Inc. the largest monthly increase Governors Assert Authority and Southwest Airlines Co.— in jetliner cancellations in all agreed to receiveaid. Trea- decades as airlines began surySecretarySteveN to adjust their fleets. B1 Mnuchin said that conversa- J&J cut its forecast for Over Reopening Their States tions continue with some 2020 revenue because of the other airlines and that offi- impact from Covid-19,but the cialswerealso working on firm expressed optimism for guidance for aid to cargo car- arecoverylater this year. B1 Governorsacrossthe U.S. as- Mr.Trump said he would riers and contractors. serted theirauthority to reopen By Jennifer Calfas, soon speak with all 50 gover- “Welook forwardtoworking Sanofi and Glaxo are their states’ economies,outlin- Tarini Parti norstodiscussguidelines for THE with the airlines to finalizethe joining forces to develop a ing plans to slowly roll back and Lucy Craymer reopening,and he said he would necessaryagreementsand dis- coronavirus vaccine in apart- CORONAVIRUS emergencyorders, and Presi- defer to the stateleaders. burse funds as quickly as possi- nership that bringstogether dent Trumpsaid Tuesdaythat of the newcoronavirus have “I’m not going to put any PANDEMIC ble,” he said in astatement. existing effortsatthe firms. B1 he wouldn’t pressureany state continued to rise,making up pressureonany governor to President Trump said at a The pandemic is exac- leader to reopen. morethan aquarter of the open,” Mr.Trump said. The briefing that the aid would help erbating a longstanding Mr.Trump,speaking at the global 1.98 million infections president, who has expressed an Trump says U.S. will halt airlines through atough period. feud between McDonald’s WhiteHouse,appeared to back Tuesday, according to datacom- eagernesstomovetoward relax- funding forWHO,A4 Airline shares rose sharply and its U.S. franchisees. B1 off commentshemade aday piled by Johns Hopkins Univer- ing social-distancing measures, Cases showdisease’seffect in after-hours trading follow- earlier when he said he had the sity. But arecent decline in the had suggested Mondaythat the ingthe announcement, with Renault will stop making on the brain, A6 ultimateauthority over when number of daily newinfections states “can’t do anything” with- PleaseturntopageA2 gasoline-poweredcarsfor sale the nation would effectively be has prompted stateofficials to out his authorization, astate- Newinfections from Russia in China and wind up itsmain restarted. plan forwhen lifewill return to ment that expertssaid appeared test Beijing, A8 Carriers rush to cancel orders venturewith Dongfeng. B3 Thetotal reported U.S. cases some semblanceofnormalcy. PleaseturntopageA4 with Boeing................................. B1 World-Wide Economic Toll Sweeps Globe New Round of Layoffs Governorsacross the The International Monetary Fund said the world economy is U.S. asserted their authority expected to contract by 3% in 2020, with virtually every to reopen their states’ econ- nation affected, because of fallout from the pandemic. A2 omies,outlining plans to Hits White-Collar Workers slowly roll back emergency Percentage of countries with per-capita GDP orders, and Trump said that thatisexpanding and contracting he wouldn’t pressureany stateleader to reopen. A1 Expanding Contracting Projected People who thought their jobs were secure face unemployment 90.1%in2020 Trump said the U.S. would 100% halt funding to the WHO while his administration in- The first people to lose their peat of the deep and prolonged jobs worked at restaurants, By Eric Morath, labor downturn that accompa- vestigates what he called the 80 malls, hotels and other places Harriet Torry nied the 2007-09 recession. group’smismanagement of that closed to contain the coro- and Gwynn Guilford The consensus of 57 econo- the coronavirus response. A4 60 navirus pandemic. Higher mists surveyed this month by Congressional leaders’ skilled work, which ofteN didn’t require per- The Wall Street Journal is that 14.4 million decision to not reconvene as sonal contact, seemed more secure. jobs will be lost in the coming months, and planned next week setsthe 40 That’s not how it’s turning out. the unemployment rate will rise to a record stagefor the House and Sen- A second wave of job loss is hitting those 13% in June, from a 50-year low of 3.5% in atetocontinue operating on who thought they were safe. Businesses that February. Already nearly 17 million Ameri- an emergencyfooting. A4 20 set up employees to work from home are cans have sought unemployment benefits in laying them off as sales plummet. Corporate the past three weeks, dwarfing any period of China raced to contain lawyers are seeing jobs dry up. Government mass layoffs recorded since World War II. a new outbreak of corona- workers are being furloughed as state and Gregory Daco, chief U.S. economist of Ox- virus in communities 0 city budgets are squeezed. And health-care ford Economics, projects 27.9 million jobs along the country’s north- 1990 ’95 2000 ’05 ’10 ’15 ’20 workers not involved in fighting the pan- will be lost, and industries beyond those or- ern border with Russia. A8 China’simports and ex- Source:International Monetary Fund demic are suffering. dered to close will account for 8 million to The longer shutdowns continue,the bigger 10 million, a level of job destruction on a par portsfell by smaller margins this second wave could become,risking are- PleaseturntopageA10 in March than in the year’s firsttwo months,but analysts warned of agrim outlook. A8 Candidates Obama endorsed pre- Big Banks’ Profits Plunge sumptiveDemocratic nominee Biden, his former Lose Their As Losses on Loans Loom Salesforce. vicepresident, forthe WhiteHouse in 2020. A3 Touch Sanderssaid he would use BY DAVID BENOIT fault on their loans as the cor- #1 CRM. his campaign’slivestreaming iii AND BEN EISEN onavirus pandemic pummels platform and social media theeconomy. That sunk the channels to promote Bi- South Korea’s Two big banks sent a clear banks’ quarterly profits. Ranked #1 for CRM Applications basedon den’s presidential bid. A3 messageinfirst-quarter earn- JPMorgaN and Wells Fargo IDC 2019H1 Revenue Market ShareWorldwide. ingsTuesday: This recession is are the first big U.S. banks to Clinicians arefinding election rules now 17.3% going to be bad. report first-quarter results, that Covid-19 can, in asig- nificant proportion of cases, bar voter contact JPMorgaN Chase & Co. and and act as abellwether forthe affect the nervous system in Wells Fargo&Co.set aside broader economy. Neither BY TIMOTHY W. MARTIN billions of additional dollarsto bank has yetseen awaveof little-understood ways. A6 AND ANDREW JEONG getready foraflood of cus- loans go bad, but they arepre- North Koreatest-fired tomers—big and small—tode- PleaseturntopageA6 short-rangecruise missiles SEOUL—Days before off itseast coast on Tues- Wednesday’s national election, daymorning,South Ko- candidateKoMin-jung stood rea’smilitarysaid. A8 in the bed of acampaign truck Mall Landlords, Retailers 5.5% slowly trawling alleysand side 5.3% CONTENTS Opinion.............. A15-17 streets for voters. 3.5% Business News.. B3,5 Property Report... B6 Battle Over Unpaid Rent 3.5% Crossword.............. A14 Sports....................... A14 In anyother election, she Equities....................... B7 Technology............... B4 and hundreds of othersonthe Heard on Street.B12 U.S. News............. A2-3 ballot would be freely address- BY ESTHER FUNG Inc., Dick’sSporting Goods Inc. 2015 2016 2017 2018 2019H1 Life & Arts.......A11-13 Weather................... A14 ing crowds and glad-handing and discount fashion retailer Source: IDC, Worldwide Semiannual Markets............. B10-11 World News............ A9 supporters. Instead, Ms.Ko Mall andshopping-center Burlington Stores Inc. SoftwareTracker,October 2019. wasferried past darkened ownersare compiling ablack- PetcoAnimal Supplies Inc., > buildingsand closed store- list of large,usually financially French luxuryconglomerate fronts, delivering her message stable tenantsthat haven’t LVMH MoëtHennessy Louis over amicrophone wrapped in paid their April rent.
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