Current Events in March 2020

Toyota is recalling approximately 39,000 model year 2020 Highlanders.

The recalled vehicles are equipped with a feature that stops and restarts the engine. Under certain driving patterns and vehicle conditions, this feature may not operate correctly resulting in a vehicle stall.

If a vehicle stall occurs, an audible chime will sound and multiple warning indicators will illuminate. If a vehicle stall occurs while being driven at higher speeds, this could increase the risk of a crash.

What to do

Toyota will notify owners, and dealers will reflash the engine control unit (ECU) at no cost.

The recall is expected to begin by mid-May 2020.

Owners may contact Toyota customer service at (800) 331-4331.

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

Total U.S. confirmed cases: 10,755

Total U.S. deaths: 154

Total global cases: 229,390

Total global deaths: 9,325

Virus appears to be peaking in China

The world was greeted with some encouraging news Thursday morning as China reported that there were no new confirmed cases of the coronavirus (COVID-19) in the previous 24 hours. That suggests the mitigation measures the country adopted as the virus was spreading are beginning to yield results.

Meanwhile, Europe appears to have become the region of the world where cases are increasing the fastest, particularly in Italy. Deaths from COVID-19 in Italy have been rising this week at a rate of about 20 percent. The Italian death toll today reached 2,978, nearly as many as in China.

Cutting more red tape

President Trump announced today that he’s directed the Food and Drug Administration (FDA) to temporarily override regulations to allow faster development of therapies to treat patients who have been diagnosed with the coronavirus.

“Nothing will stand in our way as we pursue any avenue to find what best works against this horrible virus,” Trump said at the daily White House briefing.

Specifically, the FDA has been ordered to consider approval for drugs created for other conditions, such as arthritis, that might be effective in treating the effects of the virus. Trump mentioned the investigational antiviral drug remdesivir, which is made by Gilead Sciences.

Auto plants close

Major automakers are shutting down their U.S. assembly lines for the time being. General Motors, Ford, and Fiat Chrysler worked out agreements with the United Auto Workers union to suspend production at North American plants through the end of March.

The agreement will idle about 400,000 workers, but UAW president Roy Gamble says it’s the prudent thing to do.

"UAW members, their families, and our communities will benefit from today's announcement with the certainty that we are doing all that we can to protect our health and safety during this pandemic," Gamble said. 

Meanwhile, GM CEO Mary Barra and Tesla CEO Elon Musk offered to retool their facilities to quickly begin producing ventilators. These machines, which aid patients’ breathing, could be in short supply at the peak of the outbreak.

Price of panic

You’ve seen the footage of panicked shoppers cleaning off supermarket shelves, loading up on toilet paper and bottled water. Wonder how much they’re spending? A study by STAANCE, released today, puts the average spending on emergency provisions at $161. 

While nearly half of the consumers in the survey said they are fearful of the virus, only 17 percent think they’ll get it.

Around the nation

• Oregon: With neighboring Washington as the epicenter of the coronavirus outbreak in the U.S., Oregon consumers are taking social distancing seriously. But, they still get thirsty. The Oregon Brewers Guild has compiled a list of establishments in the state that will deliver beer.

• Missouri: Attorney General Eric Schmitt is cautioning residents of his state about an uptick in scammers masquerading as charities that offer to help combat the effects of the coronavirus. His advice? Don’t judge a charity by its name. False charities may use names that closely resemble legitimate charities

• Texas: Compounding pharmacies in the state have received approval from the Food and Drug Administration (FDA) to produce non-commercial hand sanitizers – and, on Wednesday, a pharmacist in Southeast Texas was among the first in the state to deliver free supplies to police, firefighters, and other emergency responders.

While much of the media coverage surrounding the coronavirus (COVID-19) says that senior citizens are at the greatest risk, new data from the Centers for Disease Control and Prevention (CDC) shows that people aged 20-54 account for 38 percent of the virus-related hospitalizations.

Yes, it’s true that the older population accounts for the bulk of virus-related deaths, but other than that, the impact is fairly even across the board.

The updated data

As of March 16’s latest count of reported COVID-19 cases, here’s how things break out:

Number of cases

Total number of cases: 4,226

Age 85 or older: 6 percent 

Age 65–84: 25 percent 

Age 55-64: 18 percent 

Age 45-54: 18 percent

Age 20-44: 29 percent 

Age 0-19: 5 percent

Hospitalizations

Total number of hospitalizations: 508

Age 85 or older: 9 percent 

Age 65–84: 26 percent 

Age 55-64: 17 percent 

Age 45-54: 18 percent

Age 20-44: 20 percent 

Age 0-19: Less than 1 percent

ICU admissions

Total number of ICU admissions: 121

Age 85 or older: 7 percent 

Age 65–84: 46 percent 

Age 45-64: 36 percent 

Age 20-44: 12 percent 

Age 0-19: 0 percent

Heads up, young Americans

The CDC’s updated numbers caught pretty much everyone by surprise given the narrative that’s been at the forefront of the pandemic.

“I think everyone should be paying attention to this,” Stephen S. Morse, a professor of epidemiology at Columbia University’s Mailman School of Public Health, told the New York Times. “It’s not just going to be the elderly. There will be people aged 20 and up. They do have to be careful, even if they think that they’re young and healthy.”

Another physician -- Dr. Christopher Carlsten, head of respiratory medicine at the University of British Columbia -- took the opportunity to wag his finger at those who feel invincible.

“Younger people may feel more confident about their ability to withstand a virus like this,” Carlsten told the Times. He connected the dots a bit further by adding, “if that many younger people are being hospitalized, that means that there are a lot of young people in the community that are walking around with the infection.”

Officials ask young people to change attitudes

The White House’s task force on the epidemic hopes that young people hear the message loud and clear -- and try to reverse their laissez-faire attitude on the virus.

“You have the potential [to spread the virus] to someone who does have a condition that none of us knew about, and cause them to have a disastrous outcome,” Dr. Deborah Birx said, challenging that demographic at a White House briefing on Wednesday.

The Senate has given final approval to a package of aid to consumers and businesses to help them cope with the economic effects of the coronavirus (COVID-19). It’s expected to be only the opening salvo.

By a vote of 90-8, senators approved the measure, which passed the House last week. Senate Majority Leader Mitch McConnell (R-Ky) voted in favor of the measure despite pointing to what he called “real shortcomings.” In urging reluctant members of his caucus, he advised “Gag but just vote for it.”

“I do not believe we should let perfection be the enemy of something that will help even a subset of workers,” McConnell said. 

The measure, which now heads to President Trump’s desk where a signature is expected, provides an increase in unemployment benefits, ensuring that businesses with fewer than 500 employees have two weeks of paid sick leave for workers. It also provides more money for food assistance and guarantees free COVID-19 tests.

Partisanship takes a back seat

In a break with recent bitter partisanship in Washington, House Speaker Nancy Pelosi worked closely with Treasury Secretary Steven Mnuchin to work out the final details of the legislation. Now, the two sides are focusing on what could be the next aid bill.

Currently on the drawing board is an even larger stimulus bill aimed at stopping the unfolding economic crisis. The administration said it would like to see Congress approve another $850 billion to $1 trillion stimulus measure that would send cash payments directly to the American people.

The measure would also provide relief to small businesses so that they could keep Americans employed. Layoffs have surged in the last week, especially in the travel, leisure, and hospitality industries.

‘Far bolder’ package coming

McConnell is on board, saying he would not adjourn the Senate until lawmakers can pass a “far bolder” package of aid to American businesses and consumers.

In a sign that partisanship may be ebbing a bit in Washington, Pelosi issued a statement praising the Senate vote and said the House is already working on a third aid bill that will seek to help American workers and their families.

The White House apparently assumes that the second aid measure will win speedy passage. NBC reports that administration documents it’s seen show the government plans to send cash to Americans in two payments -- the first on April 6 and the second in mid-May.

The coronavirus outbreak (COVID-19) is continuing to send shockwaves throughout the financial markets. The New York Stock Exchange (NYSE) announced on Wednesday that it will be closing its trading floor starting on March 23 due to virus concerns. 

The move follows news that two people who were close to the trading floors had tested positive for COVID-19. NYSE stated that the decision to move to all-electronic trading was made to ensure the health of the communities where it operates in New York and San Francisco. 

“The decision to temporarily close the trading floors represents a precautionary step to protect the health and well-being of employees and the floor community in response to COVID-19,” the organization wrote in a press release.

Markets will remain open

While canceling trading floor activity is a big step for the stock exchange, NYSE president Stacey Cunningham reiterated that the decision to move to all-electronic trading is the right decision for companies and investors.

“NYSE’s trading floors provide unique value to issuers and investors, but our markets are fully capable of operating in an all-electronic fashion to serve all participants, and we will proceed in that manner until we can re-open our trading floors to our members,” she said. 

“While we are taking the precautionary step of closing the trading floors, we continue to firmly believe the markets should remain open and accessible to investors. All NYSE markets will continue to operate under normal trading hours despite the closure of the trading floors.”

Though researchers have identified how a mother’s stress can influence their baby’s behavior, a new study conducted by researchers from Washington State University found that geographic location can also come into play. 

The researchers found that infants’ behavior and temperament were different depending on whether they were being raised in a rural or urban environment. 

“I was shocked, quite frankly, at how little there was in the literature on the effects of raising an infant in a rural vs. urban environment,” said researcher Maria Gartstein. “The fact that rural mothers in our study reported more frequent expressions of anger and frustration from their infants may be consequential as higher levels of frustration in infancy can increase risk for later attentional, emotional, social, and behavioral problems.” 

Rural vs. urban

To understand how babies’ behavior can be influenced by where they live, the researchers analyzed results from two earlier studies. Both studies explored infants’ behaviors and their relationships with their mothers, but the major difference was where the mothers lived. 

In the first study, nearly 70 women from San Francisco participated; in the second study, 120 women from rural areas in Washington and Idaho were analyzed. 

All of the women involved in the study were recorded during typical playtime activities with their infants. They also reported on the frequency that their babies displayed certain behaviors at two different check-ins: six months and one year old. 

The study revealed that babies in rural areas were more likely to be fussy, whereas infants in urban areas were calmer and more pleasant overall. 

The researchers believe that discrepancies in resources between rural and urban towns could be why babies respond differently to the same concerns. They explained that mothers in urban towns typically have more at their disposal, while mothers in rural towns have more limitations. 

“This may be a result of different, but functionally equivalent, risk factors,” said Gartstein. “Whereas living in a big city generally brings more exposure or proximity to violent crime, isolation can also cause a great deal of stress for rural parents. This research opens up a lot of very interesting avenues of investigation.” 

If you -- like many others -- are practicing social distancing in the wake of the coronavirus outbreak by curling up and watching a streaming platform like Netflix, then it may be time to lower your video quality. 

CNN Business reports that officials with the European Union have asked Netflix and other platforms to stop offering video content in high definition because of the burden it is placing on the internet. They argue that the huge increase in people using online services to work from home and consume content could compromise some users’ ability to connect reliably. 

In a twitter post on Wednesday, European Commissioner Thierry Breton said that he had spoken with the Netflix CEO Reed Hastings about the problem. He urged consumers to help alleviate the problem by switching off HD if it’s not needed.

“To beat #COVID-19, we #StayAtHome. Teleworking & streaming help a lot but infrastructures might be in strain,” Breton said. “To secure Internet access for all, let’s #SwitchToStandard definition when HD is not necessary.”

Adjusting bandwidth usage

In response to Breton’s request, Netflix said that it is already adjusting the quality of its streaming content so that it uses less bandwidth. However, company officials say that a functioning internet for all users is paramount.

“Commissioner Breton is right to highlight the importance of ensuring that the internet continues to run smoothly during this critical time,” a company spokesperson told CNN Business. “We’ve been focused on network efficiency for many years, including providing our open connect service for free to telecommunications companies.”

Compañia Hulera Tornel, S.A.de C.V. (Tornel) is recalling 728 Tornel Deportiva tires, size P235/60R14, with DOT date codes 2216 and 4116 through 5016.

Due to a manufacturing issue, the adhesive between the belt and tread base may fail, possibly causing tread block separation.

A tread block separation could lead to loss of vehicle control, increasing the risk of a crash.

What to do

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

The recall is expected to begin April 29, 2020.

Owners may contact Compañia Hulera Tornel customer service at (281) 919-1944.

Volvo Cars USA is recalling 121,605 model year 2019-2020 S60, V60, V60 Cross Country, S90L, V90, V90 Cross Country, XC40, XC60, and XC90 vehicles.

Due to a software/hardware incompatability, the Automatic Emergency Brake (AEB) system may not detect obstacles and engage as intended.

If the AEB system does not engage as intended, the risk of a crash can increase.

What to do

Volvo will notify owners, and dealers will update the Active Safety Domain Master (ASDM) software free of charge.

The recall is expected to begin May 1, 2020.

Owners may contact Volvo customer service at (800) 458-1552. Volvo's number for this recall is R29998.

The Trump administration is considering a proposal to send every American a check to help them get through the economic impact of the coronavirus (COVID-19). As of Wednesday morning, the U.S. death toll stood at 114 with more than 6,000 confirmed cases.

Normally an idea advanced by Democrats and opposed by Republicans, the idea of sending Americans a check to help compensate for the economic dislocation caused by the virus is getting a serious hearing in the White House and on both sides of the aisle.

The cash proposal is contained in a $1.2 trillion coronavirus aid packaged backed by the White House. U.S. Treasury Secretary Steven Mnuchin reportedly met with Senate Republicans Tuesday to urge them to pass the measure; he warned that unemployment could hit 20 percent without it.

‘Americans need cash now’

At a daily White House briefing, Mnuchin said the administration is giving serious consideration of a proposal in Congress to send every American a check.

“We’re looking at sending checks to Americans immediately. What we’ve heard from hardworking Americans is many companies have shut down, whether it’s bars or restaurants,” Mnuchin said. “Americans need cash now and the president wants to get cash now. And I mean now in the next two weeks.”

How much money might be in those checks is yet to be determined. But in a briefing Tuesday, the Treasury Secretary said the amount might be greater than what has been reported so far, meaning the checks could be for more than $1,000.

That doesn’t mean everyone would receive a check, only those Americans who have seen their incomes drop or even disappear in recent days. Mnuchin says payments would likely be capped so that people who don’t need help wouldn’t receive it.

“I think it’s clear we don’t need to send people who make a million dollars a year checks,” Mnuchin said.

Other measures

The administration is looking for ways to mitigate the economic impact of the coronavirus, including pushing back the filing deadline for federal income taxes. But Mnuchin said taxpayers who are receiving a refund should file as soon as possible to put more money in their pockets.

Americans who owe additional money on their taxes have additional time to file and pay their taxes. The administration said that the move is aimed at keeping money flowing through the consumer economy.

Democrats are proposing a measure to give Americans $2,000, and maybe even more in the future, to help them cope with the economic fallout of the coronavirus. At the beginning of the week, Sen. Mitt Romney (R-Utah) proposed a $1,000 payment.

“Every American adult should immediately receive $1,000 to help ensure families and workers can meet their short-term obligations and increase spending in the economy,” Romney said in a statement.

Individuals and businesses who owe additional income tax for 2019 got a reprieve on Tuesday. Treasury Secretary Steven Mnuchin moved the deadline to pay from April 15 to Tuesday, July 14, 2020. However, the date on filing tax returns did not change. Those are still due on April 15. Filers should also keep in mind that this change is for Federal taxes only.

"We encourage those Americans who can file their taxes, to continue to file their taxes on April 15 because for many Americans you will get tax refunds. We don't want you to lose out on those tax refunds," Mnuchin said.

Deferments and extensions

As part of the coronavirus recovery package the U.S. has put into place, individual and small business filers have the added option of deferring owed taxes up to $1 million. The good news is that they won’t have to take on the sweat of added interest or penalties. Corporations are given even more headroom, with deferments of up to $10 million. 

U.S. citizens who can’t get their paperwork together by April 15 still have the ol’ faithful filing extension to fall back on. Nothing’s changed as far as that goes -- it’s still six months and not a day longer. 

And state taxes?

Keep in mind that what the Federal government modifies regarding tax returns is separate from what the state where you live may offer. 

ConsumerAffairs found that the tax-related changes states are doing on their own are in a constant state of flux. Alabama, for example, has moved its filing deadline from April 15 to April 30, while others have simply reduced support services consumers would otherwise have access to. 

The American Institute of Certified Professional Accountants is keeping a running record of state-to-state changes. You can find that information here.

The outbreak of the coronavirus (COVID-19) and resulting social distancing measures have resulted in a significant unintended health consequence. The Red Cross says blood supplies are falling to critical levels.

That’s because scheduled blood drives all across the country are being canceled, along with other public events, as a means of controlling the spread of germs. But the Red Cross says those blood drives are safe and are needed to replenish blood supplies.

As of Tuesday, the Red Cross said more than 2,700 blood drives had been put on hold. The result of that is about 86,000 fewer blood donations from these events, which typically produce 80 percent of the blood the Red Cross collects.

"I am looking at the refrigerator that contains only one day's supply of blood for the hospital," said Dr. Robertson Davenport, director of Transfusion Medicine at Michigan Medicine in Ann Arbor. "The hospital is full. There are patients who need blood and cannot wait."

More cancellations

Unfortunately, the Red Cross expects the number of canceled blood drives to continue to increase. The evolving blood shortage could affect patients who need surgery, victims of car accidents and other emergencies, or patients being treated for cancer.

"As a nation, this is a time where we must take care of one another including those most vulnerable among us in hospitals," said Gail McGovern, president and CEO of the American Red Cross. "One of the most important things people can do right now during this public health emergency is to give blood. If you are healthy and feeling well, please make an appointment to donate as soon as possible."

Safety standards

In lieu of an organized blood drive, McGovern is urging healthy adults to go to Red Cross collection centers and donate a pint of blood. She stresses that blood collection centers always maintain the highest safety standards by following these steps:

• Checking the temperature of staff and donors before entering a drive to make sure they are healthy;

• Providing hand sanitizer for use before the drive, as well as throughout the donation process;

• Spacing beds, where possible, to follow social distancing practices between blood donors;l and

• Increasing enhanced disinfecting of surfaces and equipment.

McGovern says Red Cross employees already follow thorough safety protocols to help prevent the spread of any type of infection, including:

• Wearing gloves and changing gloves with each donor;

• Routinely wiping down donor-touched areas;

• Using sterile collection sets for every donation; and

• Preparing the arm for donation with an aseptic scrub.

McGovern also stresses that people should not fear the donation process, saying there is no evidence the virus can be transmitted by a blood transfusion.

The coronavirus (COVID-19) health crisis has quickly morphed into a financial crisis. Major sporting events have been canceled, bars and restaurants have closed and laid off staff, and the stock market has plunged.

Will it be America’s banks to the rescue? In a statement, the Federal Reserve Board of Governors says it is providing banks with additional flexibility, and it wants them to use it to help consumers and businesses.

The Trump administration is taking executive actions to soften the hit and is supporting congressional action to support consumers facing economic hardship. The Fed, which over the weekend cut its federal funds rate to 0 percent, says the nation’s banks are in an excellent position to lend a hand.

“Since the global financial crisis of 2007-2008, U.S. banking organizations have built up substantial levels of capital and liquidity in excess of regulatory minimums and buffers,” the Fed statement said. 

Reform legislation proving useful

Financial reform legislation passed in the wake of the financial crisis required banks to hold more cash in reserves. It now appears that requirement will pay off.

The Fed says the nation’s largest banks hold $1.3 trillion in common equity and $2.9 trillion in high-quality liquid assets (HQLA). It also says banks should aggressively support businesses and households that are suffering the economic consequences of the outbreak.

During the financial crisis a decade ago, many banks were not adequately capitalized. In fact, many required government bailouts to stay in business, a move that was highly controversial at the time. Now, the Fed says it’s time for banks to repay the favor.

Pumping cash into the system

The Fed, along with the FDIC and Office of the Comptroller of the Currency, says it will support banks that choose to make “safe and sound” loans. Late Tuesday, it announced that it will greatly increase the amount of money it’s pumping into the “repo” market to support banks.

The amount of each repurchase operation will total $500 billion and will continue through Friday. 

In addition to supporting commercial and consumer customers with loans, a new survey from J.D. Power and Associates says banks need to do a better job of providing information and emotional support.

The survey conducted over the weekend found 83 percent of consumers are “very” or “somewhat” worried that the coronavirus will hurt them financially. Only a third of the survey respondents said they have received any kind of reassuring communication from their bank.

Uber and Lyft are suffering a double whammy thanks to the coronavirus pandemic. The news of the companies pausing their carpooling service coupled with fewer people needing to get from Point A to Point B has put both companies in a world of hurt.

While airlines are getting the bulk of the pandemic-related headlines in the transportation segment, ride-sharing’s gut punch is right behind. Only a month ago, Lyft stock was selling at $39.69 a share. As of press time on Wednesday, it was at $17.19. Uber took a similar hit, tumbling from $39.68 back on February 18 to $16.24 on Wednesday.

Market analysts at CNBC point out that no one in the travel segment is immune since the government is asking people to lay low and avoid non-essential travel. American Airlines has gone from $28.51 a share a month ago to $12.39; United Airlines was roaring a month ago at $79.14 a share and, now, it’s at a third of that value at $24.

Is help on the way?

At a news conference on Tuesday, both Treasury Secretary Steven Mnuchin and President Trump said airlines were due to get loan guarantees in the White House’s most recent proposal. Trump added that he was in communication with the major airlines regarding aid and that the “airline industry will be in good shape.”

However, to date, there’s no word on financial aid for other travel-related companies -- like ride-sharing and cruise lines. However, Mnuchin did say that hotels were part of the loan guarantees written into the Trump administration’s relief package.