Current Events in March 2020

During an interview on NBC’s “Today” show on Monday, U.S. Surgeon General Dr. Jerome Adams warned that the coronavirus outbreak is poised to take a turn for the worse this week. 

"I want America to understand -- this week, it's going to get bad," Adams said. He echoed the advice of health officials nationwide in saying, "We really, really need everyone to stay at home.” 

Nearly half of people polled recently by STAANCE said they are fearful of the virus, but just 17 percent said they think they will get it. Health officials, including Adams, are concerned that many Americans -- especially young people -- aren’t taking the threat of the virus seriously. Adams specifically called out people going to California beaches and looking at cherry blossoms in Washington, D.C.

“I think that there are a lot of people who are doing the right things, but ... we're finding out a lot of people think this can't happen to them,” he said. 

Serious threat

The number of coronavirus cases in the U.S. has risen dramatically in recent weeks. The latest figures from Johns Hopkins University place the number of infected people in the U.S. at more than 35,000. The virus has been reported in all 50 states, and at least 473 people have died. 

Americans are strongly urged to adhere to the guidance of staying at home and practicing social distancing when it’s necessary to leave the house. Symptoms of the virus could take as many as 14 days to surface, meaning individuals who go out could unwittingly be spreading the illness to others. 

Consumers are also advised to step up their hygiene practices in light of the discovery that the coronavirus can contaminate and live on certain surfaces for up to three days. 

“Everyone needs to act as if they have the virus right now. So, test or no test, we need you to understand you could be spreading it to someone else. Or you could be getting it from someone else. Stay at home,” Adams said.

In an effort to stem the spread of the novel coronavirus (COVID-19), Apple is donating “millions of masks” to health care workers in the United States and Europe. Company CEO Tim Cook announced the move on Saturday, confirming a statement made earlier in the day by Vice President Mike Pence. 

“The president and I literally heard directly from Apple that they’re donating 2 million industrial masks to this effort around the country and working with our administration to distribute those,” Pence said at a White House press conference Saturday.

Cook said on Twitter that Apple has been working to “help source supplies for healthcare providers fighting COVID-19.” 

“We’re donating millions of masks for health professionals in the US and Europe. To every one of the heroes on the front lines, we thank you,” he added. 

Masks in high demand 

When worn correctly over a wearer’s mouth and nose, N95 masks filter at least 95 percent of airborne particles. The masks are in high demand but short supply as the number of coronavirus cases continues its upward trajectory. 

Neither Pence nor Cook said where the protective masks were ordered from or when they would be available. Pence urged other companies to donate masks as well. 

"It's a great time to go to your storeroom if you have N95 masks — if you've got 100 of them, if you've got 10,000 of them," Pence said. "Load them up, drive them to your local hospital."

Apple announced earlier this month that it’s temporarily shuttered all of its stores outside of greater China until at least March 27. The company has also committed $15 million to “help lessen the economic and community impacts of the pandemic.” 

The total number of confirmed coronavirus cases in the U.S. has surged in recent weeks. A tally compiled by Johns Hopkins University researchers places the current number of infected individuals in the U.S. at more than 33,000. 

Without the swift implementation of support from the government, U.S. airlines may have to furlough workers. 

A coalition of U.S. airlines warned over the weekend that, without the approval of a $58 billion aid package, thousands of airline employees could lose their paychecks.  

“Time is running out,” wrote the CEOs of Southwest, Delta, Alaska, American, United, JetBlue, Hawaiian, UPS Airlines and FedEx, and their lobbying group, Airlines for America. “Unless worker payroll protection grants are passed immediately, many of us will be forced to take draconian measures such as furloughs.”

Barring the approval of “sufficient government support” in the form of loans, outgoing United Airlines CEO Oscar Munoz said the airline will “begin to take the necessary steps to reduce our payroll in line with the 60% schedule reduction we announced for April.” 

“May’s schedule is likely to be cut even further,” he added. 

Flights cancelled 

The novel coronavirus has infected more than 200,000 consumers across the globe, leading to a sharp decline in the number of air travelers. Earlier this month, airline executives said the financial repercussions stemming from coronavirus restrictions and concerns have been worse than those following 9/11. 

As demand for flights continues to tumble, “even more cost-cutting measures will be required soon to keep our company afloat,” United officials said in a memo on Friday. 

Airlines are asking for government aid by the end of March to help offset the impact of coronavirus.

“We are working night and day on support and ideas to keep as much pay as we possibly can flowing to you — even if [it] gets worse from here and demand temporarily plummets to zero,” Munoz and President Scott Kirby said in a joint statement.

In an effort to prop up the U.S. economy, promote employment, and stabilize prices during the COVID-19 upheaval, the Federal Reserve is pulling the trigger on its “full range of tools.”

The Fed’s Open Market Committee (FOMC) is at the forefront of the changes, taking action towards supporting the flow of credit to households and purchasing Treasury securities and agency mortgage-backed securities.

How far is the Fed prepared to take it? “In the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions,” the agency said in a press release.

“The Committee will include purchases of agency commercial mortgage-backed securities in its agency mortgage-backed security purchases. In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations. The Committee will continue to closely monitor market conditions, and will assess the appropriate pace of its securities purchases at future meetings.”

Added security for creditworthy consumers

The Federal Reserve Board also announced on Monday that it’s made a “technical change” to support the domestic economy and permit banks to continue making loans to financially trustworthy households and businesses.

Simply put, that “technical change” allows the Fed to provide additional cushions for emergency capital and long-term debt to help recapitalize a bank if it finds itself close to the brink. The agency notes that this rule is strictly precautionary. 

“Over the past decade, U.S. banks of all sizes have built up substantial levels of capital and liquidity in excess of their minimum requirements,” the Fed remarked, showing confidence that banks have the wherewithal to withstand some pressure. However, if the economy starts to tank, the Fed is prepared to phase that rule in gradually.

Is the Fed just printing money?

If you’re thinking that the Fed is just running the money-printing presses ad nauseam, you’re basically correct. In actuality, the FOMC sets the target for the fed funds rate every month. To make sure that target is hit as close to dead center as possible, the Fed uses something called “open market operations.” That process allows the Fed to buy or sell securities from its member banks. 

“It creates credit out of thin air to buy these securities. This has the same effect as printing money,” said Kimberly Amadeo of TheBalance. “That adds to the reserves the banks can lend and results in the lowering of the fed funds rate. Knowledge of the current fed funds rate is important because this rate is a benchmark in financial markets.” 

The takeaway

The takeaway for the consumer is that the Fed is going to do whatever is absolutely necessary to keep the U.S. economy from failing.

One such action was an emergency rate cut of 0.5 percent just a couple of weeks ago when the pandemic was picking up steam. Last week, the Fed’s Board of Governors also told banks that the agency is giving them additional flexibility and wants the banks to use that latitude to help consumers and businesses.

Yokohama Tire Corporation is recalling 4,209 of the following tires:

• RY023 tires, size 255/70R22.5 16H (DOT date code 0320 and 0520 through 0620);
• RY023 tires, size 295/75R22.5 16H (DOT date codes 0320 through 0520);
• RY023 tires, size 285/75R24.5 14G (DOT date codes 0320 and 0520);
• RY617 tires, size 11R22.5 16H (DOT date code 0320);
• RY617 tires, size 11R24.5 16H (DOT date codes 0220 and 0420 through 0620);
• TY517 MC2 tires, size 295/75R22.5 14G (DOT date codes 0220 through 0620);
• TY517 MC2 tires, size 285/75R24.5 14G (DOT date codes 0420 through 0620);
• TY517 MC2 tires, size 11R22.5 16H (DOT date codes 0320 through 0620);
• TY527 tires, size 11R24.5 16H (DOT date code 0520);
• 712L tires, size 295/75R22.5 16H (DOT date codes 0420 through 0620);
• 712L tires, size 11R22.5 16H (DOT date codes 0620 and 0320 through 0420);
• 709ZL tires, size 285/75R24.5 14G (DOT date code 0420);
• 709ZL tires, size 11R24.5 14G (DOT date code 0220);
• LY053 tires, size 11R24.5 16H (DOT date codes 0320 through 0620);
• 109L tires, size 11R22.5 14G (DOT date codes 0220 and 0420 through 0620);
• 109L tires, size 285/75R24.5 14G (DOT date codes 0620 and 0320 through 0420);
• 109L tires, size 295/75R22.5 14G (DOT date code 0420);
• 108R tires, size 11R24.5 16H (DOT date codes 0320 and 0620); and
• 715R tires, size 295/75R22.5 16H (DOT date codes 0320 through 0420).

Due to improper manufacturing, the tire tread or bead may detach, possibly resulting in loss of vehicle control.

A sudden loss of vehicle control increases the risk of a crash.

What to do

Yokohama will notify owners, and dealers will replace the tires free of charge.

The recall is expected to begin March 31, 2020.

Owners may contact Yokohama customer service at (800) 423-4544.

General Motors is recalling about 1,909 model year 2020 Chevrolet Silverado 2500s & 3500s, and GMC Sierra 2500s & 3500s.

The hood-latch striker wires may not have been heat-treated properly, possibly causing them to fracture.

If a striker wire fractures, the hood may open unexpectedly while the vehicle is being driven, increasing the risk of a crash.

What to do

GM will notify owners, and dealers will replace the hood assembly free of charge.

The recall is expected to begin April 26, 2020.

Owners may contact Chevrolet customer service at (800) 222-1020 or GMC customer service at (888)988-7267. GM's number for this recall is N192284960.

Coronavirus (COVID-19) tally as compiled by Johns Hopkins University:

Total U.S. confirmed cases: 14.631

Total U.S. deaths: 210

Total global cases: 254,996

Total global deaths: 10,444

Proposed cash for small businesses that keep their payrolls intact

Senate Majority Leader Mitch McConnell (R-Ky.) has introduced a coronavirus aid bill -- two others have already been signed into law -- that provides direct aid to small businesses that do not lay off employees. Businesses with no more than 500 employees would be eligible for loans under Section 7(a) of the Small Business Act.

The money could be used to pay rent, other loans, and payroll for a four-month period from March 1 through June 30. The payroll portion of the loan would be forgiven if the small business had not laid off any employees during the four-month period.

The measure also appropriates direct payments to taxpayers. Individuals would receive $1,200 and couples would get $2,400.

California locks down, Pennsylvania closes businesses

The governors of California and Pennsylvania have urged residents to stay in their homes for the next few weeks and not leave unless absolutely necessary. California Gov. Gavin Newsom asked residents to remain at home for the next eight weeks, predicting half the residents of the state would eventually get the coronavirus (COVID-19).

Pennsylvania Governor Tom Wolf has taken similar action. He ordered all "non-life-sustaining" businesses to shut down, an order he said would be enforced by the state police.

New York Gov. Andrew Cuomo today ordered non-essential businesses to keep their workforce at home. It was among other stringent measures imposed on state residents as the number of cases in the state more than doubled overnight. “This is not life as usual. Accept it. Realize it and deal with it,” the governor advised his constituents

More hopeful news from China

China has gone two straight days without reporting a new confirmed case of COVID-19, and deaths from the virus have also leveled off. In fact, Italy now has more deaths.

Now, the International Monetary Fund (IMF) reports that the Chinese economy appears to be getting back to normal after two months of catastrophic losses, giving hope to U.S. policymakers that the economic damage might be contained. 

IMF officials say most larger Chinese firms have reopened, and many employees have returned to work. But officials warn that a revival of infections would derail the recovery. But adding to the hopeful signs, China today ordered $700 million in U.S. corn, the first such order under the Phase One trade agreement.

Tax filing deadline reversal

A day after saying taxpayers would still have to file their tax returns by April 15 -- but would have until July 15 to pay -- the Treasury Department has walked it back. The administration now says taxpayers have a July 15 deadline to both file and pay their taxes.

Restocking shelves

Unemployment will likely skyrocket, but at Kraft Heinz, three shifts are working around the clock. Consumers’ panic buying last week has stripped store shelves of most staples. In an interview with CNBC today, CEO Miguel Patricio said company employees are proud to be doing their part to meet the crisis. 

Meanwhile, Walmart is awarding its employee bonuses for their work over the last two weeks. JP Morgan Chase is giving bonuses to its branch tellers.

Around the nation

• Massachusetts: Sen. Ed Markey is askingtravel insurance companies to provide coverage to consumers who purchased travel insurance plans but whose claims related to the coronavirus are being denied. Markey says the request is reasonable in light of the State Department’s travel advisory telling Americans not to leave the country.

• Washington state: Washington remains the epicenter of the outbreak with 74 deaths. As of today, there are 1,377 confirmed cases in the state, second behind New York.

• Connecticut: Attorney General William Tong has asked Amazon for information regarding efforts to detect and combat price gouging during the COVID-19 pandemic. The letter follows a complaint from a Connecticut consumer who said they were assessed for $400 in shipping charges for face masks.

Cruise lines were some of the first businesses caught in the eye of the coronavirus storm, but Carnival Cruise Lines is hoping to reverse course by offering its ships to be used as temporary hospitals for non-coronavirus patients. The company says the move would allow hospitals on dry land to focus on patients with COVID-19.

President Trump announced Carnival’s offer at a press conference on Thursday, praising the gesture as a welcome add-on to the Navy ships that were previously deployed to help reduce the pressure on hospitals and physicians. Carnival’s offer includes selected ships from its brand network, which includes Holland America and Princess Cruises.

“In addition to the big medical ships that you have coming, if we should need ships with lots of rooms, they will be docked at New York and Los Angeles and San Francisco, different places,” the President said. 

Carnival’s offer can’t come at a better time. The U.S. is in a jam when it comes to the number of hospital beds available for virus patients. According to statistics from the Organisation for Economic Co-operation and Development, the United States is woefully lacking in terms of number of beds per 1,000 people. 

There are only 2.8 beds per 1,000 people from sea to shining sea -- putting the U.S. in 31st place behind much smaller countries like Latvia and Slovenia and miles behind the metric’s leader, Japan, with 13.1 beds per 1,000 people.

What Carnival is offering

The cruise line’s Roger Frizzell told ConsumerAffairs in an emailed statement that medical services aboard ships “would be provided by the government entity or hospital responsible for fighting the spread of COVID-19 within that community.” He also said that the ship’s crew would operate maritime operations, which includes food and beverage and cleaning services.

“If needed, cruise ships are capable of being quickly provisioned to serve as hospitals with up to 1,000 hospital rooms that can treat patients suffering from less critical, non-Covid-19 conditions,” Carnival Corp. said.

On top of the 1,000 staterooms, Carnival is also offering to upgrade its existing hospital rooms so medical personnel on land can monitor patients on the ship, covering health aspects like oxygen and cardiac functions. Typically, ships have around seven intensive care units on board as part of their normal set-up, and that alone is a huge plus.

Strategic value for Carnival

Market watchers like the Motley Fool are giving Carnival a standing ovation for this move. The publication thinks it’s a definite win-win for both the company and the public.

“There's also strategic value for Carnival,” Fool’s Jon Quest wrote on Thursday. “Many of the company's cruise lines have paused operations for one month. Its Princess Cruise line is on a two month pause.”

“In short, Carnival is in a difficult situation with no income. In this way, it can help slow the spread of the coronavirus, and also find a way to generate some non consumer-discretionary revenue.”

The U.S. State Department has advised all Americans to avoid traveling to other countries because of the coronavirus (COVID-19). On Thursday, it issued a Level 4 advisory with the headline “don’t travel.”

Where possible, the government says Americans who are overseas should arrange for their immediate return home.

“U.S. citizens who live abroad should avoid all international travel,” the government said in its advisory. “Many countries are experiencing COVID-19 outbreaks and implementing travel restrictions and mandatory quarantines, closing borders, and prohibiting non-citizens from entry with little advance notice.”

The State Department also warns that airlines have already canceled many international flights and cruise lines are mostly shut down at this point. It warns that Americans who keep to their international travel plans are likely to encounter disruptions and could be “forced to remain outside of the United States for an indefinite timeframe.”

A week ago, the government allowed U.S. personnel and family members at diplomatic or consular posts to leave if they are at higher risk of a poor outcome if exposed to COVID-19. Because of their departure, the government warns that U.S. embassies and consulates may be less able to provide services to American citizens.

Advice

If after these warnings, you decide to travel anyway -- or are already outside the U.S. -- the State Department offers this advice:

• Consider returning to your country of residence immediately using whatever commercial means are available.

• Have a travel plan that does not rely on the U.S. Government for assistance.

• Review and follow the CDC’s guidelines for the prevention of coronavirus.

• Check with your airline, cruise lines, or travel operators regarding any updated information about your travel plans and/or restrictions.

• Visit travel.state.gov to view individual Travel Advisories for the most urgent threats to safety and security.

• Visit our Embassy webpages on COVID-19 for information on conditions in each country or jurisdiction.

• Visit the Department of Homeland Security’s website on the latest travel restrictions to the United States.

• Visit Keeping workplaces, homes, schools, or commercial establishments safe.

Another business has decided to shut its doors in the U.S. until the coronavirus outbreak is better contained. 

Kohl’s announced on Thursday that it would be temporarily closing all of its stores nationwide until next month. The company said that customers will still be able to shop at its online site or through the Kohl’s app and have the items delivered to their homes in the meantime.

“To demonstrate our support of the efforts underway to contain the spread of the coronavirus, we are closing all Kohl’s stores through at least April 1. We will support store associates with two calendar weeks of pay,” Kohl’s said in a company press release.

Coronavirus effects on business

Kohl’s announcement comes in the wake of more bad news from other companies and organizations in the U.S. 

Earlier this week, the New York Stock Exchange (NYSE) announced that it would be shutting down its trading floors in New York and San Francisco due to health concerns related to COVID-19. However, the organization noted that the markets will not be shutting down; they will just continue on electronically. 

Ridesharing platforms Uber and Lyft also reported a financial hit to their businesses in the wake of the outbreak. Stocks of both companies were in freefall earlier this week when compared to February; Uber shares dropped from $39.98 last month to $16.24 on Wednesday, and Lyft shares fell from $39.69 to $16.24 during the same time period.

Gasoline prices have plunged in the last week as oil prices fell to financial crisis levels and coronavirus fears limited travel.

The AAA Fuel Gauge Survey shows the national average price of regular gasoline is $2.17 a gallon, down from $2.30 just seven days ago. The average price of premium gas is $2.83 a gallon, 11 cents a gallon cheaper than a week ago. The average price of diesel fuel dropped another seven cents a gallon during the seek, to $2.70 a gallon.

In some states, the plunge has been nothing short of breathtaking. Kentucky, Michigan, Ohio, Wisconsin, and Indiana -- not known for low fuel prices  -- are among the 10 states with the lowest gas prices in the nation, displacing Alabama, Louisiana, and Virginia. AAA says two-thirds of all states experienced a double-digit drop in gas prices in the last week.

Oklahoma has the lowest average price this week at $1.80 a gallon, but Patrick DeHaan, head of petroleum analysis at GasBuddy, has found it even cheaper.

“99 CENTS IS HERE,” DeHaan tweeted on Thursday. “Just got off the phone to verify, but a BP station in London, Ky., has dropped its price to 99 CENTS PER GALLON.”

“AAA expects gas prices to continue trending cheaper, with the high likelihood of the national average hitting $2/gallon before the end of March,” said AAA’s spokesperson Jeanette Casselano.

The states with the most expensive regular gas

These states currently have the highest prices for regular gas, according to the AAA Fuel Gauge Survey:

• Hawaii ($3.51)

• California ($3.28)

• Washington ($2.96)

• Oregon ($2.97 

• Alaska ($2.81)

• Nevada ($2.78)

• Arizona ($2.63)

• Idaho ($2.51)

• Utah ($2.46)

• New York ($2.45) 

The states with the cheapest regular gas

The survey found these states currently have the lowest prices for regular gas:

• Oklahoma ($1.80)

• Ohio ($1.85)

• Indiana ($1.88)

• Texas ($1.91)

• Kentucky ($1.91)

• Mississippi ($1.91)

• Missouri ($1.91)

• South Carolina ($1.92)

• Michigan ($1.93)

• Wisconsin ($1.94)