Images of packed pools and beaches from the holiday weekend showed how much reopening is accelerating across the U.S., and Dr. Anthony Fauci warned that states should not go “leapfrogging” over reopening guidelines. House Democrats asked Treasury Secretary Steven Mnuchin Tuesday why airlines that got billions from the government to maintain payrolls during the pandemic are cutting worker hours. Boeing is planning to lay off more than 6,000 employees this week as CEO Dave Calhoun said in a note, “now we have come to the unfortunate moment of having to start involuntary layoffs.”
This is CNBC’s live blog covering all the latest news on the coronavirus outbreak. This blog will be updated throughout the day as the news breaks.
- Global cases: More than 5.62 million
- Global deaths: At least 352,235
- U.S. cases: More than 1.68 million
- U.S. deaths: At least 99,264
The data above was compiled by Johns Hopkins University.
WHO says no evidence hydroxychloroquine helps treat Covid-19
2:01 p.m. ET — The World Health Organization warned there is no evidence the anti-malarial drug that President Donald Trump said he took to prevent Covid-19 is actually an effective treatment or preventative against the virus.
The WHO suspended its trial of hydroxychloroquine on Monday while it reviews data on whether the drug is safe for use by Covid-19 patients. Recent studies into the drug have shown that it could exacerbate health conditions of Covid-19 patients and increase the risk of death.
“There is no empirical evidence at this point that these drugs work in this case either for treatment or for prophylaxis,” said Dr. Mike Ryan, executive director of the World Health Organization’s emergencies program. “We do not advise the use of hydroxychloroquine or chloroquine for the treatment of Covid-19 outside randomized control trials or under appropriate close clinical supervision subject to whatever national regulatory authorities have decided.” —William Feuer
WHO says risk of re-infection is still unclear
Executive Director of the World Health Organization’s (WHO) emergencies program Mike Ryan speaks at a news conference on the novel coronavirus (2019-nCoV) in Geneva, Switzerland February 6, 2020.
Denis Balibouse | Reuters
1:53 p.m. ET — The “jury is still very much out” on whether people who have been infected with the coronavirus are at risk of becoming infected again, said Dr. Mike Ryan, executive director of the World Health Organization’s emergencies program.
He said there is some evidence that former Covid-19 patients with virus-killing T cells may be able to mount a more “rapid response” against the virus. But there is no empirical evidence that previous coronavirus infections protect patients from re-infection, he said. —Berkeley Lovelace, Jr.
California gives update on reopening schools
1:37 p.m. ET — California State Superintendent of Public Instruction Tony Thurmond gave insight into what reopening the state’s schools will look like.
He said reopening dates will look different for schools across the state and it will be up to local districts to develop their own reopening plans. “We have 10,000 schools — there is no one size fits all,” Thurmond said at a press briefing Wednesday.
Thurmond said that students and staff should wear face coverings and that there will smaller class sizes and fewer students on buses. He also said that students will have their temperatures taken at school. —Hannah Miller
New York City planning for how to reopen bars and restaurants safely
A travel direction sign is seen in Bryant Park during the coronavirus pandemic on May 20, 2020 in New York City.
Noam Galai | Getty Images
1:26 p.m. ET — New York City is working on when and how to reopen restaurants and bars safely with social distancing guidelines, Mayor Bill de Blasio said.
“We are looking very intensely at what we can do with bars and restaurants, but again with a safety-first attitude,” he said at a news briefing.
The city has met five out of seven health indicators outlined by the state for reopening, which includes a 14-day decline in net hospitalizations and the percentage of available hospital beds. De Blasio said New York City remains on track to reach phase 1 of reopening by early June.
City officials have to figure out how much space and capacity restaurants would need in order to make it worth reopening their businesses, according to de Blasio.
“Bar and restaurant owners have been really clear that they need a certain level of capacity for it to be economically viable. We are working on that,” he said. —Jasmine Kim
Pandemic restrictions could create a ‘lockdown generation,’ UN group says
A woman wearing a protective face mask sits inside an empty metro train, on the third day of an unprecedented lockdown across of all Italy imposed to slow the outbreak of coronavirus, in Rome, Italy, March 12, 2020.
Remo Casilli | REUTERS
1:18 p.m. ET — The multiple shocks facing young people from the coronavirus pandemic could result in them being scarred throughout their working lives, creating a “lockdown generation,” the International Labour Organization has warned.
The United Nations’ agency said that more than four in 10 young people, aged 15-24, employed globally were working in hard-hit sectors when the crisis began and nearly 77% of this cohort were in informal jobs, compared to 60% of adult workers aged 25 and above. —Vicky McKeever
Goldman sets timeline for bringing traders back to offices in New York and London
12:54 p.m. ET — Goldman Sachs is making plans to bring back traders and other markets personnel to offices in the U.S. and London in the next few weeks, top executive John Waldron said.
Goldman sent New York-area employees home in March as lockdowns began in the U.S.
Now, some of the bank’s employees working from home will begin to return to the company’s offices in Manhattan, New Jersey and Connecticut.
Waldron said that the firm has already set its return-to-work plan in motion overseas with the goal of “approximately 50% of our people working in our offices in Hong Kong, China and Korea, and approximately 10% in our offices across continental Europe.”
He didn’t specify a percentage of employees expected to return in the U.S., but the figure likely won’t climb above 50% in the near future as social distancing rules will still be in effect.
A Goldman spokesman said it would likely be a “small group of people” and that employees who don’t feel comfortable returning will be allowed to continue to work from home. —Hugh Son
Boeing starts laying off thousands as virus devastates demand
The Boeing Co. manufacturing facility stands in North Charleston, South Carolina, U.S., on Monday, May 4, 2020. Boeing is restarting its 787 operations at the plant for the first time since April 8, including all operations that were suspended because of the Covid-19 pandemic, ABC News reported.
Sam Wolfe | Bloomberg | Getty Images
12:43 p.m. ET — Close to 7,000 Boeing employees are losing their jobs this week, just a portion of the layoffs the aircraft manufacturer is planning as the virus devastates travel demand. More than 5,000 other Boeing employees are separating from the company voluntarily.
The Chicago-based company is planning to reduce 10% of its headcount, which numbered around 160,000, according to its 2019 annual report.
The virus has sapped demand for new jetliners and cancellations are piling up, depriving Boeing of much-needed revenue.
“I wish there were some other way,” CEO Dave Calhoun said. “For those of you who are notified, I want to offer my personal gratitude for the contributions you have made to Boeing, and I wish you and your families the very best.”
While air travel demand has perked up from lows hit in April it is still less than 20% of the norm. —Leslie Josephs
Stay-at-home stocks getting wrecked amid economic reopening
A monitor displays Peloton Interactive Inc. signage during the company’s initial public offering (IPO) across from the Nasdaq MarketSite in New York, U.S., on Thursday, Sept. 26, 2019.
Michael Nagle | Bloomberg | Getty Images
12:13 p.m. ET — The stay-at-home trade that thrived during the pandemic market turmoil is getting clobbered on Wednesday as investors rotated out of red-hot technology names amid the reopening of the economy.
Amazon and Netflix dropped more than 2% each Wednesday, after both hitting record highs last week. Peloton fell 6%, while video game companies Activision Blizzard and Electronic Arts both dipped 3%. Zoom Video also tumbled 8.5% Wednesday.
The leadership shifted to the hardest-hit areas of the market. Some of the biggest gainers on Wednesday were cruise-ship operators, retailers and airlines whose profitability is directly tied to the economic reopening. —Yun Li
Disney to start reopening Florida-based theme parks July 11
The entrance to the Magic Kingdom at Disney World is seen on the first day of closure as theme parks in the Orlando area suspend operations for two weeks in an effort to curb the spread of the coronavirus (COVID-19). Paul Hennessy/SOPA Images/LightRocket via Getty Images)
Paul Hennessy | SOPA Images | LightRocket via Getty Images
11:52 a.m. ET — On Wednesday, Disney received approval from the Orange County Economic Recovery Task Force to reopen Magic Kingdom and Animal Kingdom on July 11 and Epcot and Hollywood Studios on July 15. Disney will now need to gain approval from Florida Gov. Ron DeSantis.
Disney plans on limiting the parks’ capacity and will require guests to purchase tickets in advance of arriving at the parks. Parades and other events that cause crowds to gather will be temporarily suspended and contactless payments via Apple Pay, Google Pay and Disney Magic Bands will be encouraged.
The company will be adding additional hand-washing stations, have temperature checks and will require social distancing throughout the parks. —Sarah Whitten
MLB proposes tiered player salary system for pandemic-shortened season
General view inside of the Milwaukee Brewers spring training facility, American Family Fields of Phoenix on April 07, 2020 in Phoenix, Arizona.
Christian Petersen | Getty Images
11:38 a.m. ET— Major League Baseball presented its long-awaited economic proposal to its player’s union, which calls for the highest-paid players to lose the bulk of their salaries.
The plan calls for players to retain their salary via a tier system, and the more a player is scheduled to earn for the 2020 season, the less he retains under the proposal.
A player making in the range of $563,501 to $1 million can keep more than 70% of his pay. That number decreases to only 50% for salaries in the $1 to $5 million range, 40% in the $5 to $10 million tier and players making more than $20 million per year could only keep 20% of their salaries.
In a statement, the MLB called the proposal “consistent with the economic realities facing our sport. We look forward to a responsive proposal from the MLBPA,” the league said. —Steve Kovach
Dr. Fauci warns of ‘leapfrogging over’ reopening guidelines
People enjoy sunshine at a beach near the Golden Gate Bridge amid the coronavirus outbreak on May 25, 2020 in San Francisco, California.
Liu Guanguan | China News Service | Getty Images
11:08 a.m. ET — White House health advisor Dr. Anthony Fauci warned states about “leapfrogging over the recommendations” for reopening as the coronavirus outbreak slows in some parts of the U.S. He said a second wave of the coronavirus in the United States “could happen” but is “not inevitable.”
The U.S. can prevent a second wave as long as states reopen “correctly,” Fauci said during an interview on CNN.
Fauci’s comments came days after he told CNBC that stay-at-home orders intended to curb the spread of the coronavirus could end up causing “irreparable damage” if imposed for too long. “I don’t want people to think that any of us feel that staying locked down for a prolonged period of time is the way to go,” Fauci said Friday. —Berkeley Lovelace, Jr.
Walmart says it could gain market share as apparel retailers struggle
10:40 a.m. ET — As the pandemic forces some retailers to file for bankruptcy protection and permanently close stores, Walmart is seeing opportunities to step up its fashion offerings and gain market share in apparel.
The big-box retailer has launched exclusive clothing lines and added popular brands to its website and stores. Starting today, customers can shop secondhand clothing, shoes and accessories from brands such as Nike and Marc Jacobs through a new partnership with ThredUp, which bills itself as the largest online thrift store.
Denise Incandela, head of fashion for Walmart’s e-commerce business in the U.S., said the retailer has been in talks with ThredUp for about a year. But because of the pandemic, she said more customers may turn to Walmart as they shop for clothes and buying fashionable, yet budget-conscious items may have even more relevance. “We are absolutely seeing this as an opportunity to support a bigger portion of our customers’ closets,” she said. —Melissa Repko
New cases surge in Latin America
Ford puts virus-fighting computerized disinfecting in police cars
8:59 a.m. ET — Ford Motor is assisting police departments in disinfecting their Ford Explorer Police Interceptor Utility vehicles with a software update designed to reduce the spread of Covid-19.
The automaker announced that the software enables a temporary rise in interior temperatures upward of 133 degrees Fahrenheit for 15 minutes to help reduce the viral concentration inside the vehicle by more than 99%.
The software update is available immediately on all 2013-2019 Police Interceptor Utility vehicles, according to Ford. It can be installed at a dealership or by departments with their own service departments.
Once activated, the vehicle’s powertrain and climate control systems work together automatically to elevate passenger compartment temperatures. The software warms up the engine to an elevated level, turning heat and fan settings to high. The software automatically monitors interior temperatures until the entire passenger compartment hits the desired level.
Ford said it worked with Ohio State University to determine the temperature range and time needed to help reduce the spread of the virus. It started researching the project in late March.
Ford conducted software operational trials in vehicles owned by police departments in New York, Los Angeles, Michigan, Massachusetts, Ohio and Florida. —Mike Wayland
Here’s a look at the pandemic by world region
A vaccine for the general public is a ‘2021 event’
7:17 a.m. ET — Widespread availability of a vaccine for the general public probably won’t arrive before 2021, former Food and Drug Administration Commissioner Scott Gottlieb said.
“We might have it available in the fall for emergency use authorization for certain populations, and we’ll certainly have the doses by the end of the year,” he said in an interview on CNBC’s “Squawk Box.” “I just don’t think we’ll have the data to support widespread inoculation at that point.”
The space of companies vying to produce a successful vaccine is increasingly crowded. It includes large and small drugmakers and biotech companies, such as Moderna, Pfizer, Johnson & Johnson, AstraZeneca, Sanofi, GlaxoSmithKline, Merck and Novavax. —William Feuer
Disclosure: Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer and biotech company Illumina.
Virus could topple Brazil’s Bolsonaro, analysts say
The President of Brazil Jair Bolsonaro appears on the ramp of the Planalto Palace to wave to his supporters amidst the coronavirus (COVID-19) pandemic at the Planalto Palace on May 15, 2020 in Brasilia.
Andressa Anholete | Getty Images
7:10 a.m. ET — Brazilian President Jair Bolsonaro is facing an intensifying political crisis over his handling of the coronavirus outbreak, with the South American country recording more new Covid-19 infections over the last week than any other period since the epidemic began.
It comes shortly after the country confirmed it had reported the second-highest number of coronavirus cases in the world.
Analysts told CNBC that growing pressure on the right-wing president, an ideological ally of President Donald Trump, could make him and his government the first to be toppled by the global public health crisis. —Sam Meredith
Read CNBC’s previous coronavirus live coverage here: More states reopen bars, CA says hair salons and barbershops can reopen in most counties