The Trump administration will ask for an $850 billion package to counter economic fallout.
The Trump administration is preparing to ask for about $850 billion in additional stimulus to support the economy, which is facing a deep downturn as businesses close as coronavirus spreads.
Steven Mnuchin, the Treasury secretary, is expected to make the pitch for additional fiscal firepower on Tuesday to Republican senators, some of whom have been hesitant to embrace the legislation that the House passed last week, according to people familiar with the plans. A centerpiece of the proposal is the payroll tax cut that President Trump has been calling for.
The Trump administration is also supportive of a request for $50 billion in economic relief for the airline industry. The industry’s lobbying group publicly made the request on Monday, asking for grants, loan guarantees and tax relief.
Larry Kudlow, the director of the National Economic Council, laid out the administration’s fiscal stimulus approach on Monday and said that it would amount to about $800 billion.
Mr. Kudlow and Mr. Mnuchin are also considering an array of other proposals to help individuals and small and medium-sized businesses.
The Treasury Department is expected to outline plans for delaying tax filing and payments without penalties beyond April 15.
Restrictions tighten in U.S. and around the world as leaders scramble to face a new reality.
More than seven million residents in the San Francisco Bay Area have been ordered to mostly confine themselves to their homes, joining the ranks of Italy, Spain, France and China.
“It’s bad,” President Trump conceded, as financial markets tanked and economists warned of a steep recession that might already be underway.
“We are at war,” President Emmanuel Macron of France told his people.
The enemy is invisible and insidious, gathering strength from the bonds of human connection. So public health officials were asking people the world over to sever those ties.
While nations, states and localities offered differing restrictions with varying degrees of enforcement, the message was coalescing around a simple if daunting challenge: Keep your distance.
In the United States, the Trump administration warned against gatherings of more than 10 people, and asked citizens to work from home if possible and avoid unnecessary travel. Bars and restaurants should be avoided, or closed in areas where the virus was rapidly spreading, officials said.
The guidelines apply for the next 15 days, but President Trump warned that the restrictions could grow more stringent and last well into summer. While the rate of infections has declined steeply in China, for instance, many of the harsh limits on movement there are still in place after more than six weeks.
The stepped-up action in the United States was driven, in part, by a report compiled by British researchers warning that 2.2 million people could die in the country in the absence of strong action by the government and individuals to slow the spread of the virus.
New Jersey residents have been asked not to leave their homes from 8 p.m. until 5 a.m. A curfew is being considered for New York City.
In Italy, the scale of the epidemic is evident in the bodies left behind. With the oldest population in Europe, the country has suffered more than 2,100 deaths, and hospitals and morgues are inundated.
The European Union proposed a 30-day shutdown of nonessential travel into the bloc from other countries — an urgent attempt to keep internal borders as open as possible to promote European solidarity. But on Tuesday, nations within the bloc continued to close themselves off from their neighbors.
After yet another devastating day on Wall Street on Monday, the Asian markets stabilized on Tuesday. But fears that the crisis could lead to a recession grew. The price of oil fell below $30 a barrel, its lowest level in four years.
Around the world, around 180,000 cases have been reported. More than 7,000 people have died. But more than 80,000 people have recovered.
Wall Street appears poised to rebound even as global markets wobble.
U.S. futures trading on Tuesday signaled a possible rebound after the S&P 500 had its worst day since the coronavirus outbreak began.
But European markets were mostly lower as investors tried to grapple with the disastrous Monday on Wall Street, when the S&P 500 fell 12 percent, its biggest daily drop since the stock market crash of 1987. For the technology-heavy Nasdaq, the drop was the worst on record.
The sell-off began after the Federal Reserve took extraordinary steps on Sunday to support the American economy as businesses shut down and borders were closed in an effort to contain the coronavirus. Investors saw the move as more evidence of just how bad things were.
The yield on the 10-year U.S. Treasury bond rose, to about 0.8 percent, which could suggest investors were warming to the idea of putting their money in riskier assets like stocks.
Energy prices, which slid sharply on Monday, staged a very modest comeback on Tuesday. West Texas Intermediate, the American benchmark, was up 1.9 percent, to about $29.25 a barrel.
Investors across Asia were more cautious earlier Tuesday about the state of global finance. Japan’s Nikkei 225 index finished the day just above zero. In mainland China, the Shanghai Composite Index was down 0.3 percent.
The Trump administration turns on itself.
Infighting, turf wars and a president more concerned with the stock market and media coverage than policy have defined the Trump White House. They have also defined how it has handled a pandemic.
The White House culture that President Trump has fostered for more than three years has shaped his administration’s response to a deadly pandemic that is upending his presidency and the rest of the country.
It all explains how Mr. Trump could announce he was dismissing his acting chief of staff as the crisis grew more severe, creating even less clarity in an already fractured chain of command. And it was a major factor in the president’s reluctance to even acknowledge a looming crisis, for fear of rattling the financial markets that serve as his political weather vane.
Mr. Trump has refused repeated warnings to rely on experts, or to neutralize some of the power held by his son-in-law, Jared Kushner, in favor of a traditional staff structure. He has rarely fully empowered people in the jobs they hold.
“Part of this is President Trump being Donald J. Trump, the same guy he’s always been, and part of it is a government he has now molded in his image, rather than having a government as it has traditionally been, to serve the chief executive, and to serve the job of governing the country,” said David Lapan, a former spokesman for the Department of Homeland Security and the Pentagon, and a former aide of one of Mr. Trump’s previous chiefs of staff, John F. Kelly.
New York City considers curfews as public life is curtailed.
Parents scrambled to find child care after the shutdown of the New York City public school system. Bar and restaurant owners worried about how they would survive what could be weeks or even months of being closed. One cultural institution after another has steadily shut down. And, as in the rest of the nation, people still reeling from the swift changes to their daily lives braced on Tuesday for what officials said would be harder days to come.
Mayor Bill de Blasio of New York City said people should expect “several months” of hardship.
Appearing on CNN on Tuesday morning, the mayor pleaded for the federal government to provide cash aid to people whose livelihoods have been affected, directly or indirectly, by the virus.
He continued to liken the situation to the Great Depression.
“The federal government needs to put money back in the hands of people,” said the mayor. “We need direct income replacement at this point.”
For government officials, it was a two-front battle: slowing the spread of the virus — New York City was considering a curfew, echoing New Jersey, where residents have been asked not to leave their homes from 8 p.m. until 5 a.m. — and getting hospitals ready for a likely a surge in patients needing urgent care.
Mr. de Blasio said that the city was rushing to add more hospital beds.
By canceling elective surgeries and dismissing patients from hospitals more quickly, the city could free up about 7,000 patient beds, the mayor said. Another 1,200 to 1,300 beds could be added by taking over unused space in hospitals and converting a newly built nursing home in Brooklyn that was not yet occupied.
European countries rush forward relief efforts as deaths surge and lockdowns expand.
As clocks around France stuck noon on Tuesday, the country’s interior minister ordered the French to keep their movements to a strict minimum.
“Staying at home today and in the coming days means saving lives,” the minister, Christophe Castaner, said at a news conference. “Behind each handshake, each kiss, each group meeting, there are more victims, there are more deaths.”
Mr. Castaner said that the fine for being in violation of the new rules would start at around $42, but that it would quickly be increased to $150.
But there were still signs that not everyone was following the government’s instructions. Ahead of the noon deadline, crowds rushed some supermarkets to stock up, even though there are no plans to close grocery stores in the near future. And in some market streets, few seemed to be respecting distancing rules.
The French government also announced a relief package that would include postponing or slashing taxes, a government guarantee of loans for companies, and more than $1.1 billion for small businesses and independent contractors.
As countries around the world continues to tighten borders, Germany raced to bring home thousands of its citizens, even as the nation struggles to get control over the coronavirus within its borders.
The government there is spending more than $55 million on logistics and flights to bring home its citizens as nations tighten their borders and travel of any kind becomes exceedingly difficult.
The situation in Spain continued to grow more dire, with both new cases and deaths continuing to surge. At least 491 people have died in the country and there have been 11,178 confirmed cases.
The death of Spain’s youngest known victim so far, Francisco García, 21, has struck a chord with the nation.
Mr. García, a soccer coach from Malaga, did not know he had an underlying condition when he went to the hospital. But he was soon hit with a double dose of bad news.
He was infected with coronavirus and he had leukemia. He died on Sunday.
Tom Hanks and Rita Wilson are released from the hospital.
The actors Tom Hanks and his wife, Rita Wilson, have been released from an Australian hospital and will remain in self-isolation after being treated for Covid-19, the disease caused by the coronavirus, their son said in a video statement on Monday.
“They’re still self-quarantined obviously, but they’re feeling a lot better so that’s a relief,” their son Chet Hanks said in a video posted on Instagram.
Mr. Hanks and Ms. Wilson, both 63, said they had tested positive for the coronavirus last Wednesday. Mr. Hanks was in Australia filming a movie about the life of Elvis Presley.
Mr. Hanks, known for star-making turns in films like “Saving Private Ryan” and “Forrest Gump,” is the most prominent celebrity known to have contracted the virus.
“We felt a bit tired, like we had colds, and some body aches,” Mr. Hanks said last week. “We Hankses will be tested, observed and isolated for as long as public health and safety requires.”
Since then, a slew of public figures have said they have tested positive for the virus, including the actor Idris Elba and Masoumeh Ebtekar, an Iranian vice president.
A representative for the couple said they would remain in self-quarantine at a rented home in the northeastern state of Queensland.
Australia has experienced a rapid uptick in coronavirus cases. As of Tuesday, 375 people had tested positive including Peter Dutton, the country’s minister for home affairs.
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Residents of seven counties in Northern California were ordered to “shelter in place” for three weeks beginning on Tuesday to slow the spread of the coronavirus. They have been told to stay at home except for essential reasons, including buying food and caring for a pet.
The measures are the most restrictive in the country and were part of a broader call for Americans to limit their interactions with one another.
Though relatively few Americans have been tested for the coronavirus, more than 4,400 people have tested positive, and at least 86 have died.
The message from officials was that the virus would continue to spread. Scientists tracking the virus’s spread reported that for every confirmed case, there are most likely another five to 10 people with undetected infections.
California, America’s most populous state, with an economy bigger than the United Kingdom’s, has been remarkably resilient since the Great Recession, powered by technology, agriculture and Hollywood. No one knows how far the mounting toll from the virus will climb, but California is already one of the hardest-hit states, and stands as one of the places with the most to lose.
The shelter-in-place order goes into effect on Tuesday and is expected to disrupt life for millions of residents in Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara and Santa Cruz Counties.
The Greek government orders church services suspended as concerns grow for migrants huddled in camps.
Over the past week, Greece has closed schools, cafes, bars and restaurants. When Greeks scrambled to the country’s beaches, the government closed them too. It will shut most shops from Wednesday.
But for days, leaders of the Greek Orthodox resisted calls to suspend services. So the government was forced to take action, despite the risks of challenging a powerful institution that is deeply tied to the nation’s sense of itself.
Prime Minister Kyriakos Mitsotakis said there was no choice. “The protection of public health requires clear decisions,” he wrote on Twitter.
Four deaths have been attributed to coronavirus in Greece. The number of confirmed infections on Monday stood at 352, with cases centered in Athens.
Beyond the capital, there have been growing concerns over a possible coronavirus outbreak at camps on the five Aegean Islands that host some 50,000 migrants in intensely overcrowded conditions.
A 6-year-old girl died on Monday when a fire broke out at the notoriously cramped Moria camp on Lesbos.
Doctors Without Borders, known by its French acronym MSF, called for the evacuation of those living in the camps where whole families are packed tightly into confined quarters.
The international medical humanitarian organization warned that lack of adequate sanitation and limited medical care made the risk of the virus spreading extremely high.
Measures to brake the virus are braking the U.S. economy, too.
Most of the American economy is grinding to a halt, and may remain that way for months because of the coronavirus outbreak and the sweeping steps being taken to try to halt it.
When the White House warned all Americans to avoid restaurants and bars and not to gather in groups of more than 10, it left unanswered the question of precisely what individuals and local governments should do, or how business owners and workers might survive financially, at a time when vast sections of the economy are ceasing to function.
European markets were mostly lower on Tuesday, but futures pointed to gain when trading opens in the United States as investors tried to grapple with a disastrous Monday on Wall Street. The S&P 500 fell nearly 12 percent on Monday and global oil prices slid below $30 a barrel, a four-year low.
“We’re calling the recession,” said Gregory Daco, chief U.S. economist at Oxford Economics. “We have the three elements to make that call — a profound, pervasive and persistent contraction in economic activity.”
Business groups, local and state leaders and a growing chorus of lawmakers and economists were begging the federal government to spend trillions of dollars to pay workers to stay home and funnel money to companies struggling with an abrupt end to consumer activity.
The administration floated several ideas for helping industry without conveying a clear plan. After the main trade group for airlines suggested a $50 billion bailout, Mr. Trump’s chief economist, Larry Kudlow, said, “We don’t see the airlines failing, but if they get into a cash crunch we’re going to try to help them.”
Employers and employees are torn between fears of being exposed to the virus and fears of running out of money to pay for food and electricity. And government officials are left with the unhappy task of shutting down businesses that provide wages for large swaths of their communities.
In Washington, lawmakers are working on a new fiscal stimulus package that could help workers and companies weather the storm — even as a previous package that the House passed last week still waits for Senate approval. Other businesses besides airlines are pushing for loans or direct government grants to fill the void of lost sales.
China records just one new local infection.
Nearly two months after a coronavirus outbreak in central China escalated into a national emergency, the country’s daily count of new, local infections has approached tantalizingly close to zero.
Just one new locally originated infection was reported on Monday, according to the Chinese National Health Commission’s daily update of new coronavirus cases. The new case was in Wuhan, the center of the outbreak.
An additional 20 new cases were also recorded in China on Monday among travelers arriving from abroad.
Over the past two weeks, the daily count of infections in China has consistently fallen since the government implemented drastic measures to close cities and confine hundreds of millions of people to their homes.
By the end of Monday, China’s total infection count from the virus had reached 80,881. With 3,226 fatal cases, the country has suffered more deaths from the coronavirus than any other. But Italy, a much smaller country, was nearing this figure Tuesday with 2,470 recorded deaths.
China is already trying to restart commerce and industry, but even when new local infections hit zero, the government appears unlikely to proclaim full victory over the epidemic. A test is still to come as people return to work.
Also on Tuesday, Hong Kong’s leader, Carrie Lam, said the city would require all travelers to the territory to self-quarantine for 14 days, starting from Thursday.
Ohio declares emergency and cancels presidential primary.
Ohio’s governor on Monday night said he and top state heath officials would ignore a court ruling and postpone Ohio’s presidential primary by declaring a public health emergency because of the coronavirus outbreak.
The governor, Mike DeWine, said that the state’s health director, Dr. Amy Acton, had issued the order based on concerns that the coronavirus outbreak placed both voters and poll workers in potential danger.
His announcement came just hours after Judge Richard A. Frye of the Franklin County Court of Common Pleas rejected the state’s request to push back voting to June 2.
Ohio was one of four states scheduled to vote on Tuesday. The other three — Arizona, Illinois and Florida — said that they planned to proceed with their elections while taking additional health precautions.
Kentucky also announced that it was delaying its primary.
Victims in Italy face death alone, with funerals postponed.
This past Wednesday, Renzo Carlo Testa, 85, died from the coronavirus in a hospital in the northern Italian town of Bergamo. Five days later, his body was still sitting in a coffin, one of scores lined head-to-toe in the church of the local cemetery, which is itself closed to the public.
His wife of 50 years, Franca Stefanelli, would like to give him a proper funeral, but traditional funeral services are illegal throughout Italy now, part of the national restrictions against gatherings.
The ultimate metric of pandemics and plagues is the bodies they leave behind. And in Italy, with the oldest population in Europe, the toll has been heavy, with more than 2,100 deaths, the most outside of China. On Monday alone, more than 300 people died.
The bodies are piling up in the northern region of Lombardy, especially in the province of Bergamo. With 3,760 total cases reported on Monday, an increase of 344 cases from the day before, according to officials, it is at the center of the outbreak.
Hospital morgues there are inundated. Bergamo’s mayor, Giorgio Gori, issued an ordinance that closed the local cemetery this week for the first time since World War II, though he guaranteed that its mortuary would still accept coffins. Many of them had been sent to the Church of All Saints in Bergamo, inside the closed cemetery, where scores of waxed wooden coffins form a macabre line for cremations.
Reporting was contributed by Alan Rappeport, Emily Cochrane, Melissa Eddy, Raphael Minder, Aurelien Breeden, Marc Santora, Megan Specia, Jonathan Martin, Richard C. Paddock, Maya Salam, Neil Vigdor, Nick Corasaniti and Stephanie Saul, Tiffany May, Patricia Cohen, Jeffrey Gettleman, Suhasini Raj, Karan Deep Singh, Kai Schultz, Niki Kitsantonis and Jim Tankersley.