That is a wrap

MARKETS

• Energy: The continued freefall in oil prices could do “lasting” damage to the industry in the U.S., NBC News reports. With the national average gas price hovering around $2/gallon, there’s never been a better time or a worse time to go on a road trip.
• U.S. markets: Healthcare led the way on another solid day for stocks. Bad news should arrive in the form of unemployment claims later in the week, but investors are hoping historic stimulus measures will see us through this downturn.

WORLD

That's a Wrap on Q1

Ninety days ago we stepped into a new decade arguing over whether it was actually a new decade. Today, we’re in a much different world. On the last day of Q1, let’s take a collective breath and rewind:

January

President Trump ordered a strike killing Iran's top commander, Qassem Soleimani. Oil prices and geopolitical tensions soared then fizzled out.

BlackRock CEO Larry Fink said the asset manager is doubling down on confronting climate change, a watershed moment for the environment's role in business decisions.

Trump signed a "phase one" trade deal with China, calming two years of tensions, as well as a North American trade deal. The U.K. finally Brexited. And China locked down 56 million people as the coronavirus spread.

Kobe Bryant's surprise death on Jan. 26 united grieving fans from all over the world.

February

The Iowa caucuses were a technological disaster. Tesla went on a stock run for the ages. Feb. 7, the Fed said coronavirus could pose a risk to the U.S. economy.

Facebook changed its political ad policies in the wake of Bloomberg memegate. Weinstein was convicted. And Bob Iger abruptly stepped down as Disney CEO.

By late February, China was slowly getting back to work after many weeks of quarantine, while the U.S. prepared for an outbreak.

March

Joe Biden took the lead in the Democratic primary, while competitors like Pete Buttigieg and Elizabeth Warren ended their campaigns.

Saudi Arabia started an oil price war, and the U.S. began acutely feeling the coronavirus. Companies started WFH. Sports were canceled. Universities closed. Trump's Oval Office address sent travelers scurrying home from Europe.

In an emergency move to save the economy, the Fed cut rates half a percentage point. March 9, a stock plunge tripped the circuit breaker. Two days later, the Dow entered a bear market. March 16, it logged an almost 3,000 point loss.

By mid-March, the private sector had mobilized into a wartime economy. Nonessential businesses were closing. 3.3 million Americans filed for unemployment in a week. And the government passed a record $2.2 trillion stimulus package.

Looking ahead...with 2.8+ billion people around the world under some kind of lockdown, many of us will experience Q2 from our living rooms.

RETAIL

Stores Go With the Absolute Minimum

Macy's is furloughing the majority of its ~130,000 employees because of this startling fact: Almost 800 of its stores have been closed since March 18 and there's no timetable for reopening.

• The company will still cover premiums for employees enrolled in health benefits at least through May.
• Its digital business will see fewer furloughs, mainly because that's the only business Macy's can run these days.

Defining furlough: a mandatory leave of absence without pay, often implemented to cut costs in an economic downturn.

Other retailers made similar announcements yesterday:

• Gap Inc. is furloughing the majority of its store teams in the U.S. and Canada. Its c-suite is also taking a pay cut.
• Kohl's is furloughing ~85,000 employees. Its CEO will not take a salary for the duration of the crisis.

Bottom line: Department stores were struggling to grow sales before the coronavirus hit. Now, $430 billion in retail industry revenue could evaporate in the next three months, the National Retail Federation estimates.

+ Hopeful sign, from China: As Wuhan opens up for business, customers want to "revenge shop," the AP reports.

MANUFACTURING

Honk If You're Building a Ventilator

With demand for their *actual* products next to nil, some of the world's most iconic manufacturers are trying to make up for the critical shortage of life-saving ventilators.

Ford and GE Healthcare said yesterday they're going to pump out 50,000 ventilators in just 100 days. Production at the Ypsilanti, MI, plant will be a 24/7 operation run by 500 United Auto Workers union members.

GM's breathless sprint to build ventilators seems like it'll be optioned into a Hollywood script: The NYT, WSJ, and Bloomberg all went behind-the-scenes of this fascinating corporate drama.

Virgin Orbit, Richard Branson's rocket company, said it will be able to produce a few hundred ventilators per week starting next month, pending regulatory approval.

Ventilator Challenge U.K. is a group of 14 British manufacturers (including Rolls-Royce) making two different ventilator models known as Project Oyster and Project Penguin.

Looking ahead...expect others to join the party. Medtronic, a $123 billion medical device giant, published the specs for one of its ventilators online yesterday to make it easier for non-ventilator makers to produce their own.

MEDIA

For Publishers, It’s More Business, Less Money

Yesterday, Facebook announced $100 million in grants and marketing for local news organizations. For some publishers, that’s like getting a Kit Kat from the bully who stole your lunch money, but right now the industry is facing bigger problems.

The coronavirus pandemic has sent pageviews and subscriptions soaring, but advertisers are pulling spots because of the uncertainty.

• Some alt-weeklies have laid off three-quarters of their staff, the NYT reports. BuzzFeed and American Media cut salaries. Many others reduced hours or furloughed employees.

Gov. Phil Scott recently called on Vermonters to support local news. But is that enough?

The loss of ad revenue is greater than incoming subscriptions, and outlets most dependent on advertising (the free ones) are at high-risk, Nieman Lab writes.

• The cruel irony: More consumers are willing to pay for local reporting for the first time in years, but the blow to ad revenue may be too crippling.

The NYT's Ben Smith argues we should abandon for-profit newspaper models and move strictly online, effectively "bailing out" the journalists. Others think the government should support local outlets through initiatives like public health ad campaigns.

HEALTHCARE

Help Is On the Way

The USNS Comfort sailed into New York Harbor yesterday in the best grand entrance since Willy Wonka. The Navy's hospital ship, home to 1,000 beds and 1,200 medical staff, will be used to relieve some of the strain on the city's healthcare system. It'll start treating patients today.

A couple of interesting facts:

• The last time this ship was deployed to NYC was following 9/11.
• If propped up vertically, it'd be the 13th tallest building in the city.

WHAT ELSE IS BREWING

• Johnson & Johnson and Moderna signed big vaccine deals with the U.S. government. But no usable product should be ready until 2021.
• Instacart and Amazon workers went on strike yesterday over working conditions during the coronavirus pandemic.
• The Tokyo Olympics have a new opening ceremony date: July 23, 2021.
• Airbnb will pay out $250 million to hosts following a flood of cancellations on the platform.
• NFL teams spent $2.6 billion in the first week of free agency, per NFLPA data cited by the WSJ.

NAME THE ARTIST

At 3:15am local time Monday morning, thieves broke into a Dutch museum that's been closed due to the coronavirus and stole the painting “The Parsonage Garden at Nuenen in Spring.” Do you know which artist painted it?

A few hints: He lived from 1853–1890. Other famous works include "Wheatfield with Cypresses," "The Potato Eaters," and "Sunflowers." He was not quite whole.

Scroll down for the answer.

NAME THE ARTIST ANSWER