Facebook will allow many of its employees to work permanently from home, said Mark Zuckerberg, Facebook’s CEO, during a staff meeting that was broadcast live on his Facebook page.
The social media giant sent its employees home in March when the coronavirus began to spread in the United States. Mr Zuckerberg said the temporary changes caused by the virus prompted the company to reassess its requirement for employees to work in a shared office. Within a decade, he said half of the company’s more than 45,000 employees would work from home.
Mr Zuckerberg’s statement followed similarly solutions on Twitter and the payment company Square, both led by Jack Dorsey. Mr Dorsey said last week that employees in his companies would be able to work from home indefinitely. At Google, employees have been informed that they can work from home until the end of the year.
This is a “decline without modern precedent,” said the Fed chairman.
Jerome H. Powell, the chairman of the Federal Reserve and other senior central bank officials warned on Thursday that the United States was experiencing extreme shock from the coronavirus pandemic and that it was wildly unclear when and how low unemployment would be and widespread prosperity would return.
The United States economy is in “an unprecedented downturn,” Mr Powell said hours after government figures showed that another 2.4 million people filed new unemployment claims last week.
“In the best of times, it is difficult to predict the path of the economy with certainty,” he added. “We are now experiencing a whole new level of uncertainty, as questions that only a virus can answer complicate the perspective.”
The Fed chief’s comments highlighted a point his colleagues have repeatedly made in a series of speeches on Thursday: The road to recovery is not obvious, as the economy and labor market have suffered the biggest shock in generations. Against this background, as several have said, both Fed politicians and those in Congress and the White House must be prepared to do more if necessary.
“Depending on the course the virus takes and the depth and duration of the downturn it causes, additional support from both monetary and fiscal policy may be required,” said Richard H. Clarida, the Fed’s vice president, during of an event earlier in the day.
Even business restrictions have begun to be lifted in the United States, another 2.4 million workers applied for unemployment benefits last week, the government said Thursday, bringing the total number of new claims to more than 38 million in nine weeks.
“The bleeding continues,” said Thorsten Slock, chief economist at Deutsche Bank Securities, about the growing job losses. He expects the official unemployment rate for May to reach 20 percent compared to the previous year 14.7 percent reported by the Ministry of Labor in April.
And there is a growing fear that many jobs will not return, even for those they consider to be temporarily laid off.
Nicholas Bloom, an economist at Stanford University who co-authored An analysis of the impact of the pandemic on the labor market estimates that 42 percent of recent redundancies will lead to permanent job losses. “I don’t like to say it, but it will take longer and look gloomier than we thought,” he said of the road to recovery.
Airports this Remembrance Day weekend are likely to be far more empty than usual, but people planning to fly will find many changes in every part of the screening process.
On security lines, signs and other markings will remind passengers to keep their distance. The Transport Security Administration said on Thursday that its agents would wear masks, gloves and, in some cases, eye protection. Passengers will be asked to scan their own boarding boxes and place food in their luggage in a separate bin during the check-up to limit cross-contamination.
“In the interest of T.S.A. frontline workers and passenger health, T.S.A. is committed to making reasonable changes to our screening processes to limit physical contact and maximize physical distance, “said agency administrator David Pekoske in a statement.
Most normal rules remain in effect, but T.S.A. said one thing would be relaxed: passengers would now be able to bring up to 12 ounces of hand sanitizer during their trip.
Airlines are also making changes. Travelers who need to check a bag or print a ticket, for example, can find a sneeze guard that separates them from a ticket agent, and in some places precautions are taken by United Airlines and Delta Air LinesIf they choose to use a pavilion instead, passengers can interact with one that operates without any need for contact.
With the filing of another 2.4 million workers new claims for unemployment benefits last week, again focusing on whether Washington will provide additional assistance to those struggling amid the pandemic.
The answer for now is maybe.
It is unclear whether lawmakers will agree to extend the unemployment benefits that were included in the $ 2 trillion stimulus package passed in March, which provides an additional $ 600 a week for workers applying for unemployment.
This enhanced benefit expires in late July, and the House Democrats included a provision in the $ 3 trillion stimulus bill it passed on Friday to extend it until January 2021.
But Republicans have rejected the measure, along with the entire House bill, and have no plans to vote in the Senate. They expressed concern that the greater benefit created a dissuasive effect on work.
In a private phone call to Republicans from the House Wednesday afternoon, Sen. Mitch McConnell of Kentucky, the majority leader, promised that Republicans would “clean up the crazy Democrat policy that pays people more to lose their jobs than they would if they returned.” to work. “
Democrats have repeatedly lashed out at Republicans for what Sen. Chuck Schumer, the minority leader of New York, called Thursday a “shocking” level of inaction in coronavirus legislation.
Atlantic has 17 percent of its staff.
Atlantic Ocean will lay off 68 employees in “events, sales and editing”, said David G. Bradley, chairman of Atlantic Media, in an email to employees on Thursday, as the publication struggles with the same forces – especially a decline in digital advertising – which are affected tens of thousands of jobs in the news media during the coronavirus crisis, even when subscribers rose sharply.
The layoffs represent 17 percent of the total staff, according to a statement from The Atlantic. Executives will reduce their salaries and there will be general pay freezes.
According to Bradley, the long-term strategic shift to a business model that relies primarily on readers’ revenues is “accelerated – and imposed – by overnight stays and the almost complete abolition of personality. events and so far a restrictive decline in advertising. “
Last year, Atlantic created an online paid wall and has added 160,000 new subscribers since then, Mr Bradley said. More than 90,000 of them have been added since March. The magazine, which is 163 years old and was once edited by Ralph Waldo Emerson, has received widespread praise for its coverage of the pandemic.
Three years ago, Mr Bradley sold a majority stake in Atlantic Media to Emerson Collective, the organization founded by billionaire Lauren Powell Jobs.
L brandwhich owns Bathroom and body work and Victoria’s Secret, reiterated its commitment to split the two companies on Thursday and said Victoria’s Secret would close 250 stores in the United States and Canada this year, reducing its fleet to about 850 seats.
The company said it was calling for a profit on Thursday, expecting more closures of Victoria’s Secret stores next year and in 2022. Bath & Body Works will close some stores but also reopen others as it works to exit certain “risky properties in mall. “
Victoria’s Secret, which saw its planned sale to a private company fell apart this month, nearly half of its sales were wiped out in the first quarter of this year. Bath & Body Works sales fell 18 percent during that time.
Bath & Body Works was a bright spot with an 85 percent jump in digital sales due to the huge demand for disinfectant and hand soap. The brand said it was calling for a profit by trying to keep up with the rapid purchase of disinfectants both online and in stores.
Macy, one of the largest department store operators in the United States, reported preliminary net sales for the first quarter of about $ 3 billion, a decline of 45 percent over the same period last year and an operating loss of $ 1.1 billion. The company shared the data on Thursday before the full publication of its results from the first quarter on July 1.
The company that also owns Bloomingdales and Bluemercurysaid March was “very difficult”, but that its digital business exceeded expectations in April.
Macy’s, which announced an ambitious plan to open all 775 stores by the end of June, said Thursday that its plan is on track and that it has already opened 190 locations on Macy’s and Bloomingdale. He planned to open 80 more Macy stores before this weekend.
Initially, Macy expected only 15 percent of her typical open store business, but “he’s coming stronger than that,” said Jeff Janet, the company’s chief executive, during a presentation Thursday. Businesses are down about 50 percent in open stores and improving with each week the store is open, he said.
Mr Genet added that outside of digital sales, he has had new success with feeding curbs and is working with New York to add the service to his flagship store in Herald Square in the coming weeks.
Macy plans to offer another business update on June 9, before officially reporting first-quarter results.
Shares of Wall Street fell on Thursday, withdrawing after the main indicators gathered the day before.
The S&P 500 fell below 1%, and global performance was also lower.
It has been a tumultuous week for markets, with stocks alternating between gains and losses every day as investors appreciate new economic developments and the prospect of the business opening its doors to customers.
On Thursday, data on unemployment claims from the Ministry of Labor showed that the jump in layoffs reached more than 38 million in nine weeks.
But economic data from Europe provided more optimism. A monthly flood of reports on indexes of European purchasing managers showed that business activity is slowly gaining: The index for production in the euro area reached 39.5 points, higher than expected and compared to 33.4 last month, while the index of services rose to 28.7 from 12.0 last month.
In Asia, monthly data on trade in Japan show a nearly 22 percent drop from a year ago, highlighting weak demand for the country’s factories. The heated rhetoric in Washington against China has increased the likelihood that relations between the world’s two largest economies will deteriorate further. Investors are also worried about escalating tensions between China and Australia, a country that depends on Chinese demand to feed large parts of its economy.
Catch up: Here’s what else is happening.
Lululemon, a sports entertainment company known for its $ 100 yoga pants, said 70% of its stores are expected to reopen in the coming weeks with new precautions. He plans to add cashless payments “where permissible” and ask employees to “declare a daily health declaration before each shift.” The company, which has 491 stores worldwide since Feb. 2, said it has reopened 150 stores and is set to open another 200 in the next two weeks. The company declined to share details of what the health declaration is or about specific openings in the United States.
Best buy said on Thursday that its first-quarter sales fell 6.3 percent to $ 8.6 billion as they made a net profit of $ 159 million. The chain benefited as consumers searched for “work or home learning” products as well as gaming goods. Nationally, its comparable online sales rose 155 percent from last year. The retailer said it switched to curb-only service on March 22, mid-quarter, as a safety measure and that it maintained about 81 percent of last year’s sales in the last six weeks of the quarter, which ended May 2.
TJ X., the owner of T. J. Maxx,, The Marshall Islands and HomeGoods, said its sales fell 52 percent to $ 4.4 billion in the first quarter due to store closures, pushing the company to a net loss of $ 887 million. But the retailer said it was encouraged by “very strong sales” as the business resumed. The company has fully or partially open stores in 25 states and expects most of its locations to be open by the end of June based on government guidelines.
Reports were contributed by Jeanne Smialek, Kate Conger, Emily Cochrane, Niraj Chokshi, Geneva Abdul, Jack Nikas, Patricia Cohen, Mark Tracy, Mohamed Hadi, Sapna Maheshwari, Alexandra Stevenson, Cao Lee, Carlos Kettian Tedavin .