Anxious to spur an economic recovery without risking lives, President Donald Trump on Sunday insisted that “you can satisfy both” – see some states gradually lift lockdowns while also protecting people from the coronavirus pandemic that has killed more than 60,000 Americans.
The president, fielding questions from Americans in a virtual town hall from the Lincoln Memorial, acknowledged valid fears on both sides of the issue. Some people are worried about getting sick; others are reeling from lost jobs and livelihoods.
But while Trump increased his projection for the total U.S. death total to 80,000 or 90,000 – up by more than 20,000 fatalities from what he had suggested just a few weeks ago – he struck a note of urgency to restart the nation’s economy, declaring “we have to reopen our country.”
“We have to get it back open safely but as quickly as possible,” Trump said.
After more than a month of being cooped up at the White House, Trump returned from a weekend at the Camp David presidential retreat in Maryland for the virtual town hall hosted by Fox News Channel.
The president said of his backdrop: “We never had a more beautiful set than this.”
As concerns mount about his re-election bid, Trump stuck to his relentlessly optimistic view of the nation’s ability to rebound soon.
“It is all working out,” Trump said. “It is horrible to go through, but it is working out.”
Many public health experts believe the nation cannot safely reopen fully until a vaccine is developed. Trump declared Sunday that he believed one could be available by year’s end.
U.S. public health officials have said a vaccine is probably a year to 18 months away. But Dr. Anthony Fauci said in late April that it is conceivable, if a vaccine is soon developed, that it could be in wide distribution as early as January.
Though the administration’s handling of the pandemic, particularly its ability to conduct widespread testing, has come under fierce scrutiny, the president defended the response and said the nation was ready to begin reopening.
“I’ll tell you one thing. We did the right thing and I really believe we saved a million and a half lives,” the president said. But he also broke with the assessment of his senior adviser and son-in-law, Jared Kushner, saying it was “too soon to say” the federal government had overseen a “success story.”
Trump’s impatience also flashed. While noting that states would go at their own pace in returning to normal, with ones harder hit by the coronavirus going slower, he said that “some states, frankly, I think aren’t going fast enough.” He singled out Virginia, which has a Democratic governor and legislature. And he urged the nation’s schools and universities to return to classes this fall.
Federal guidelines that encouraged people to stay at home and practice social distancing expired late last week.
Debate continued over moves by governors to start reopening state economies that tanked after shopping malls, salons and other non-essential businesses were ordered closed in attempt to slow a virus that has killed more than 66,000 Americans, according to a tally of reported deaths by Johns Hopkins University.
The U.S. economy has suffered, shrinking at a 4.8% annual rate from January through March, the government estimated last week. It was the sharpest quarterly drop since the 2008 financial crisis.
Roughly 30.3 million people have filed for unemployment aid in the six weeks since the outbreak forced employers to shut down and slash their workforces. It was the worst string of layoffs on record.
The president’s advisers have nervously watched Trump’s support slip in a number of battleground states and he was presented with polls late last month that, if the election were held that day, had him losing to Democrat Joe Biden. The president’s aides believe restarting the economy, even with its health risks, is essential to a victory in November and are pushing for him to pivot away from discussions about the pandemic and onto an American comeback story.
To that, he will begin travelling again, with a trip to a mask factory in Arizona planned for Tuesday. And the grand setting of Sunday night’s town hall was meant to evoke patriotism and overcoming national adversity.
Larry Kudlow, Trump’s top economic adviser, said on CNN’s “State of the Union” that the administration would “pause” to review the effectiveness of trillions in economic relief spending before making any decision on whether additional aid is needed. House Speaker Nancy Pelosi, D-Calif., said Thursday that state and local governments are seeking up to $1 trillion for coronavirus costs,
The Senate planned to reopen Monday, despite the Washington area’s continued status as a virus hot spot and with the region still under stay-at-home orders. The House remains shuttered. The pandemic is forcing big changes at the tradition-bound Supreme Court: The justices will hear arguments, beginning Monday, by telephone for the first time since Alexander Graham Bell patented his invention in 1876.
The leaders of California and Michigan are among governors under public pressure over lockdowns still in effect while states such as Florida, Georgia and Ohio are reopening.
Michigan Gov. Gretchen Whitmer, a Democrat, said Sunday that the armed protesters who demonstrated inside her state’s Capitol “depicted some of the worst racism” and “awful parts” of U.S. history by showing up with Confederate flags, nooses and swastikas.
Despite the opposition of Michigan’s Republican-controlled Legislature, Whitmer has extended a state of emergency declaration and directed most businesses statewide to remain closed. Trump on Sunday night singled out her and Washington Gov. Jay Inslee, also a Democrat, for criticism even as he praised the federal co-ordination with most governors.
Some people participating in other public protests across the U.S. have not kept their distance from one another and have rallied without masks, not heeding public health recommendations.
Dr. Deborah Birx, co-ordinator of the White House coronavirus task force, called that behaviour “devastatingly worrisome.” She said people will feel guilty for the rest of their lives if they end up infected and unwittingly spread the virus to vulnerable family members.
US services index shows biggest part of economy is stirring – BNNBloomberg.ca
U.S. service providers started to emerge in May from a pandemic-induced tailspin as nationwide lockdowns on business and social interaction began to lift.
The Institute for Supply Management said Wednesday that its non-manufacturing index rose 3.6 points to 45.4.
While the monthly increase was the largest in more than two years, the gauge remained below the 50 mark that shows most service-related industries continued to contract.
The purchasing managers group’s gauge of business activity, which parallels the ISM’s factory production index, jumped 15 points, the most in records dating back to 1997, to a still-tepid 41. Along with an improvement in new orders, the figures are a welcome sign that the economy is stabilizing and will gradually recover from a deep recession.
The median forecast in a Bloomberg survey of economists called for an improvement to 44.4 in the overall non-manufacturing index.
The report, however, also showed the labor market remains severely disrupted by the pandemic. The ISM measure of employment at services, which represent almost 90 per cent of the economy, only rose 1.8 points from the worst reading on record in April.
A Labor Department report on Friday is projected to show another 8 million decline in May payrolls after an unprecedented 20.5 million slump in April. The unemployment rate is forecast to soar to nearly 20 per cent.
A pickup in demand as states lift lockdowns and businesses begin to reopen is needed to help stabilize the job market. The ISM’s report showed an index orders at service providers climbed 9 points to a still-weak 41.9.
Meanwhile, the index of supplier deliveries in non-manufacturing industries fell for the first time in four months, indicating an easing in supply-chain bottlenecks and transportation delays.
Posthaste: Here are three promising data points that show the Canadian economy is ready to rebound – Financial Post
Rays (plural) of good news are piercing through the gloom surrounding the Canadian economy.
And not surprisingly, the country’s resilient housing sector is among the first to report a rebound.
Home sales jumped 53.2 per cent in May month-over-month, suggesting that April’s dramatic plunge in sales may have been the market’s low point.
Another crucial statistic was new listings that rose 47.5 per cent during May, compared to April, according to the Toronto Regional Real Estate Board.
The Real Estate Board of Greater Vancouver had also reported on Tuesday that homes sales jumped an unadjusted 34 per cent in May from April, while prices remained flat month-on-month. Benchmark prices rose 2.9 per cent to $1.03 million from a year ago.
Of course, these averages look good as the economy was wallowing in complete uncertainty in April, decimating homes sales and upending market trends.
While home sales in Toronto remain 53.7 per cent lower than May 2019, the decline was less than the 67.1 per cent year-over-year decline reported for April 2020.
“The MLS Home Price Index Composite Benchmark price was virtually unchanged in May 2020 compared to April 2020,” TRREB noted. “On a year-over-year basis, the composite benchmark was up by 9.4 per cent. The average selling price for all home types combined was up by three per cent compared to May 2019 to $863,599. On a seasonally adjusted basis, the average selling price was up by 4.6 per cent month-over-month compared to April 2020.”
A May poll by TRREB showed 27 per cent of the Greater Toronto Area households were looking to purchase a home over the next year, suggesting that sales may improve further in the coming months provided the economy is not adversely hit by new waves of the pandemic.
“As we move toward recovery, the housing sector will be a key driver of growth as consumer confidence increases and more households look to take advantage of very low borrowing costs,” said TRREB CEO John DiMichele.
Investors will also be watching a key metric that indicate where prices are headed next, especially in the pricey Vancouver real estate market.
Sales-to-active listings ratio for May 2020 was 15 per cent in the Vancouver region, detached homes at 13.5 per cent, 18.9 per cent for townhomes, and 14.8 per cent for apartments.
“Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months,” noted the Real Estate Board of Greater Vancouver.
TRREB is expecting prices to remain stable over time, with some possible uptick.
“With home sales and new listings continuing to trend in unison in May, market conditions remained balanced. This balance was evidenced by year-over-year average price growth slightly above the Bank of Canada’s long-term target for inflation,” said Jason Mercer, TRREB’s chief market analyst. “If current market conditions are sustained during the gradual re-opening of the GTA economy, a moderate pace of year-over-year price growth could continue as we move through the spring and summer months.”
Another glimmer of hope that the economy is returning to some form of normalcy has come from the transportation sector.
The Canadian National Railway Co. said it saw a 4 per cent increase in volumes of good shipped in May compared to April.
While the recovery is expected to be slow, it’s a positive sign after shipments hit bottom last month, the company’s chief financial officer Ghislain Houle said Tuesday at the UBS Global Industrials & Transportation virtual conference, according to Bloomberg.
“I think we’re seeing the light at the end of the tunnel,” Houle said. “Hopefully, it will hold.”
Canadian Pacific Railway Ltd. also said it set a new record for shipping Canadian grain and grain products in May, moving 2.80 million metric tonnes in the month.
Finally, yet another sign consumers are ready to put COVID-19 behind them is the 113,224 new light vehicles sold in Canada in May, a 147 per cent jump over April’s sales, according to a report by DesRosiers Automotive Consultants Inc. Still, May 2020 car sales were down considerably compared to the same period last year.
“It’s a measure of the strange times in which we find ourselves in that a market decline of only 44 per cent can seem like a positive sign. However, following the estimated 74.6 per cent decline in April — which sent Canadian new light vehicle sales levels back in time to roughly the early 1950’s — May’s year over year decline can evoke a touch of cautious optimism as the first tentative shoots of recovery spring up from a badly damaged marketplace,” the consultants said in a statement.
“Of course, the ongoing situation remains in flux and an already trying year could prove to have a few tricks left up its sleeves yet,” the consultants warned.
They are wispy green shoots of recovery — but we will take it.
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PROTESTS GO GLOBAL: Protesters hold placards next to the statue of 19th century British Prime Minister Benjamin Disraeli outside St George’s Hall in Liverpool, northwest England, on June 2, 2020, during demonstration after George Floyd, an unarmed black man who died after a police officer knelt on his neck during an arrest in Minneapolis, USA. – The city of Liverpool lit up their civic buildings in memory of George Floyd on June 2 the death of whom in Minneapolis while in police custody has sparked days of unrest in the US city and beyond. Paul Ellis/AFP via Getty Images
- Bank of Canada to make an interest rate announcement at 10 a.m. ET
- Teck Resources Ltd. hosts a conference call to discuss its 2019 Sustainability Report and strategy
- Quebec’s Treasury Board President Christian Dube and Finance Minister Eric Girard to discuss a bill to mitigate the effects of the pandemic and quickly revive the Quebec economy
- A Papua New Guinea court is set to rule on whether Barrick Gold Corp. can proceed with a legal challenge over the government’s refusal to extend its lease on the Porgera gold mine
- Case management conference for Huawei CFO Meng Wanzhou in Vancouver
- Transport Minister Marc Garneau, CEO of Vancouver Fraser Port Authority Robin Silvester, Robyn McVicker, a vice-president at YVR and Tim Strauss, vice-president of Air Canada cargo take part in Transportation Forum 2020
- Notable Earnings: Stingray Group Inc., Canada Goose Holdings Inc., AutoCanada Inc.
Some of the biggest cannabis players when legalization took effect 20 months ago have successfully held on to their dominant positions, despite a year of bankruptcies, downsizings, revoked licences, executive firings, mass layoffs and a long market selloff, writes Vanmala Subramaniam.
It is hard enough to make money in the stock market, even without the world shut down due to a global pandemic. In fact, studies have proven that the average stock actually goes down. So how does one make money? Well, it’s all in the math. A stock can “only” decline by 100 per cent. But if you have a big winner, you can make 1,000 per cent returns, or more. A winner or two can more than make up for many losers, writes Peter Hodson.
Today’s Posthaste was written by Yadullah Hussain (@Yad_Fpenergy), with files from The Canadian Press, Thomson Reuters and Bloomberg.
Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at firstname.lastname@example.org, or hit reply to send us a note.
Why the disconnect between stocks and the economy is worrying – CNN
IPOs are back as the stock market soars
The number of black leaders at US companies is still dismal
- Black professionals in 2018 held just 3.3% of all executive or senior leadership roles, which are defined as within two reporting levels of the CEO, according to the US Equal Employment Opportunity Commission.
- Among Fortune 500 companies, less than 1% of CEOs are black. Today there are only four, down from a high of six in 2012, according to Fortune.
- Black Enterprise’s 2019 Power in the Boardroom report found that among S&P 500 companies, there were 322 black corporate directors at 307 companies. Of those, 21 were chairmen and lead directors. But the report also found that more than a third of S&P 500 companies did not have any black board members whatsoever.
- The ADP report on US private employment arrives at 8:15 a.m. ET.
- The ISM Non-Manufacturing Index for May, a closely-watched gauge of the US services sector, follows at 10 a.m. ET.
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