The stock market has suffered yet another historic day of losses as the Dow Jones reportedly lost the entirety of economic gains seen under Donald Trump’s presidency amid increasing anxieties over the global coronavirus pandemic.
The US Centre for Disease Control meanwhile released a grim outlook for a worst-case scenario surrounding the pandemic, in which 214 million people would be impacted and nearly two million would die as a result of the outbreak. The Trump administration released its own plan-of-action while seeking a nearly $1 trillion economic relief package that could include sending checks to all Americans in the coming weeks to help battle back against the economic downturn.
The number of total cases in the US surpassed 7,000 on Wednesday, according to the latest data, as the death toll rose to at least 117. Experts have said the true rate of infections is likely far higher nationwide, citing a lack in testing.
Stocks tumbled close to 8 percent on Wall Street Wednesday and wiped out the last of the gains for the Dow Jones Industrial Average since Mr Trump's inauguration.
Even prices for investments seen as very safe fell as investors rushed to raise cash and the coronavirus pandemic continues to spread.
Markets have been incredibly volatile for weeks as Wall Street and the White House acknowledge the rising likelihood that the outbreak will cause a recession.
The typical day this month has seen the stock market swing up or down by 4.9 percent. Over the last decade, it was just .4 percent.
It was just a day before that the Dow surged more than 5 percent after Mr Trump promised massive aid to the economy, but the number of infections keeps climbing, and the Dow slumped to its lowest level since 2016.
The S&P 500, which dictates how 401(k) accounts perform much more than the Dow, is down 31 percent from its record set last month, though it's still up nearly 9 percent since Election Day 2016.
The S&P 500's slide was so sharp that trading was halted for 15 minutes Wednesday. The losses deepened after trading resumed, and the S&P 500 was down 7.9 percent, as of 3:20 pm. Eastern time.
As big swaths of the economy retrench while much of society comes to a halt in an attempt to slow the spread of the virus, investors have clamored for Congress, Federal Reserve and other authorities around the world to support the economy until it can begin to reopen.
They got a big shot of that Tuesday, when the Trump administration briefed lawmakers on a program that could surpass $1 trillion and the Fed announced its latest moves to support markets.
But the worldwide number of known infections has toped 200,000, which creates more uncertainty about how badly the economy is getting hit, how much profit companies will make and how many companies may go into bankruptcy due to a cash crunch.
"It's, it's a very tough situation", Mr Trump said at a news conference, during which losses for stocks accelerated.
He added: "You have to do things. You have to close parts of an economy that six weeks ago were the best they've ever been.... And then one day you have to close it down in order to defeat this enemy."
Additional reporting by AP. Read live updates as they came in below:
The Donald Trump administration is reportedly considering a plan to turn back all people who cross the border illegally from Mexico, using powers they say the president has during pandemics like the coronavirus outbreak to mount what would be one of its most aggressive attempts to curtail illegal immigration yet.
The plan is under consideration and no final decisions have been made, according to officials cited by the AP. They said the president has authority to take such action in a pandemic and that Mexico's efforts to stop the spread of the coronavirus, along with Venezuela's, have been the weakest in North and South America. The officials said its authority relies on a law that gives the president authority to deny entry to people or to reject cargo if the surgeon general determines there is "serious danger" of bringing a communicable disease to the United States.
The administration had declared in November 2018 that anyone who crossed the border illegally from Mexico would be denied asylum, a measure has been blocked in court. Last month, a 9th US Circuit Court of Appeals panel in San Francisco upheld a lower court decision to keep that asylum ban on hold while a lawsuit proceeds.
The ban now being considered, which was first reported by The New York Times, would turn back to Mexico all people who cross the border illegally, not just those seeking asylum.
Homeland Security Department spokeswoman Heather Swift said the president was focused on protecting Americans from the coronavirus and that "all options are on the table."
Immigrant advocacy groups condemned the possible move.
"Decisions relating to the pandemic should be guided by public health officials, not by the Trump administration's long-standing agenda to close the border to refugees seeking asylum," said Eleanor Acer, Human Rights First's director of refugee protection. "The administration is using the pandemic as a pretext to advance its long-term goal of curtailing asylum rights for people fleeing persecution."
A third official familiar with the administration's decision-making and unauthorised to speak publicly said there was some alarm within the government and health care community about the health of people at the Southern border, and there could be consequences without further restrictions. The official noted that some migrants are coming over the border from countries with confirmed cases of the virus.
But the proposal is also in line with Trump's overall policies on migrants, especially poor people arriving at the border, and his desire to clamp down on immigration. It would be the effort to deter asylum and illegal immigration on the Mexican border. About 60,000 asylum-seekers have been returned to Mexico to wait for hearings in US immigration court since January 2019 under its "Remain in Mexico" policy, which the Supreme Court ruled last week could stay in effect during a legal challenge. The officials didn't detail the mechanics of how this new effort would work.
Many migrants who are forced to wait in Mexico live in squalor in makeshift camps as they wait out their court cases to stay in the US, often facing violence and poverty. On Tuesday, some 30 asylum-seekers, many with children, wore masks to court in El Paso, Texas.
One US official told the AP that people who cross the border illegally would still be processed by the Border Patrol, which has limited ability to so without taking people to a station. Mexico can refuse to take back non-Mexicans, but the Trump administration hopes the measure will increase pressure on Mexican authorities to address the public health threat.
Since November, the administration has denied asylum to hundreds of people from El Salvador and Honduras and flown them to Guatemala with a chance to seek protection there.
There were more than 851,000 arrests for crossing the border during the 2019 fiscal year, which ended on 30 Sepember. The new policy would not apply to asylum-seekers who present themselves at land ports of entry, the official said.
Gino Spocchia has more on this.
With the virus now hitting all 50 states - and the US on 6,135 cases and 110 dead - the president appears to have finally got the message on the severity of the crisis and is proposing an economic rescue package of $1trn (£831bn) as well as asking Congress to speed up emergency checks to Americans, enlisting the military for mobile hospitals and imploring ordinary citizens to stay at home.
McConnell though has again attracted anger over his refusal to put aside his personal political interests to get results, with Ohio senator Sherrod Brown on especially explosive form.
Senators gathered at an otherwise shut-down Capitol as Americans across the country were implored to heed advice and avoid crowds. Young adults, in particular, are being urged to quit going out because even seemingly healthy people can be spreading the virus that causes the Covid-19 illness.
The amount that would be sent out in cheques to Americans is not yet disclosed. The White House said it liked GOP senator Mitt Romney's idea for $1,000 (£832) cheques, though not necessarily at that sum and not for wealthier people.
The Pentagon is opening military labs, deploying massive hospital ships and donating medical gear to the federal coronavirus fight that Donald Trump called "a war" on Tuesday.
Defence Secretary Mark Esper said the military will give civilian agencies as many as five million respirator masks and other items to protect emergency personnel, according to The Wall Street Journal. He also said the Defence Department will provide up to 2,000 ventilators, the newspaper reported.
In addition, the Pentagon will open up to 16 military laboratories for civilian testing, and could call up more National Guard and Reserve members to help with the response.
Here's John T Bennett's report.
Democratic front-runner Biden has all but secured his party’s nomination to take on Trump in November after winning the latest round of primary votes, leaving Bernie Sanders for dust.
This is what Diamond Joe had to say to Sanders supporters in a livestream from Delaware.
Here's Andrew Buncombe's report.
The president in turn secured the GOP nomination last night, an outcome that was never really in doubt in the aftermath of his acquittal in the impeachment trial.
Lucy Gray has this one.
Aside from continuing to push that racist "Chinese virus" line, Trump's Twitter game has notably softened this week along with his tone in press briefings.
Here's his latest round of hollow reassurances this morning:
Long may it continue.
That hasn't entirely stopped him remaining on brand in person, however. "I felt it was a pandemic long before it was called a pandemic," he claimed yesterday to a room full of incredulous reporters, who remembered him calling a "hoax" a matter of weeks ago.
"I've been talking about this for many years, long before I decided to run for president, I've been talking about this," he continued, entirely without burning shame.
The change of tone is welcome overall, it must be said, as the coronavirus crisis continues to escalate in the US and across the world with each passing day.
Here's Chris Riotta with our latest update.
Well, it appears I spoke too soon...
An alarming new disease modelling report from Imperial College London has underlined the importance of implementing social distancing measures in America.
Citizens continuing to go about their ordinary lives without taking evasive action could lead to as many as 2.2m deaths, whereas abiding by self-isolation could cut that number by 90 per cent to 220,000.
Here's more on the report, which is chilling indeed.
Major Asian stock markets fell back after early gains on Wednesday after Wall Street jumped on Trump's promise of aid to get the US economy through the coronavirus outbreak.
Benchmarks in Shanghai, Tokyo and Hong Kong all advanced and then fell. Australia's main index fell 6.4 per cent and smaller Asian markets also were mostly lower.
As I mentioned earlier, the White House proposal could approach $1trn in spending to ward off the pressure of business closures to contain the virus. The Federal Reserve announced more measures to keep financial markets operating.
On Wall Street, the benchmark S&P 500 index rose by an unusually wide daily margin of 6 per cent, regaining just under half of the previous day's history-making loss. Professional investors expect more big daily swings in both directions until the spreading virus is brought under control.
There are "green shoots of risk appetite emerging, and some further concerning aspects," said Chris Weston of Pepperstone Group in a report. "I am not going to call a bottom in the risk story by any means."
The Shanghai Composite Index fell 0.2 per cent to 2,772.91 and the Nikkei 225 in Tokyo shed 1.1 per cent to 16,826.99. Hong Kong's Hang Seng skidded 1.5 per cent to 22,918.46.
Those three markets account for the bulk of the region's stock value.
The Kospi in Seoul slumped 2.2 per cent to 1,634.97. Australia's S&P-ASX 200 fell to 4,953.20. Market benchmarks in New Zealand and Singapore rose 1 per cent while Manila fell 7.9 per cent. Bangkok surged 2.8 per cent.
On Tuesday, European stocks swung from gains to losses and back to gains.
On Wall Street, the S&P 500 rose to 2,529.10. It still is down 25.3 per cent from last month's record.
The Dow Jones Industrial Average advanced 5.2 per cent to 21,237.38. A day earlier, the Dow lost nearly 3,000 after Trump said a recession may be on the way.
The virus has spread so quickly that its effects haven't shown up in much US economic data yet.
On Tuesday, a report showed retail sales weakened in February, when economists expected a gain. A separate report a day earlier showed manufacturing in the state of New York contracting.
"The global recession is here and now," S&P Global economists wrote in a report on Tuesday.
The president's favourite child is being ridiculed on social media after giving advice on entertaining the kids during self-isolation, with many pointing out the hypocrisy of her association with an administration whose dismissal of the situation early on has proved so costly and others taking exception to her privilege and the assumptions they betray.
Here's James Crump on the Trumps.
Marc Short, the chief of staff for Vice President Mike Pence, has said there were no forecasts of 20 per cent unemployment in the United States because of the coronavirus outbreak, after reports suggested such a rise was a possibility.
Treasury xecretary Steven Mnuchin had told Republican senators on Tuesday that failure to act on a proposed coronavirus rescue package could lead to US unemployment as high as 20 per cent, a person familiar with the closed-door meeting told Reuters.
Short said Mnuchin was talking about different actions under a wide range of scenarios. "Nobody is right now that I know forecasting a 20 per cent unemployment from the coronavirus," he told Fox Business Network. "The foundation of our economy remains incredibly strong. This is a short-term, we believe, challenge."
Mnuchin met with senators to persuade them to pass a $1trn stimulus package that would send cash to Americans within two weeks and backstop airlines and other companies.
Pence leads the White House task force created to coordinate the federal response to the coronavirus outbreak.
"We're trying to make sure that the people who are impacted in the short term get the resources they need in a quick fashion and that's what secretary Mnuchin and this president are looking to do," Short said.
"We believe the economy will bounce back in a hurry once we get over the hump of this virus."
Fox News personalities such as Sean Hannity and Laura Ingraham accused the news media of whipping up “mass hysteria” and being “panic pushers”.
Fox Business host Trish Regan called the alleged media-Democratic alliance “yet another attempt to impeach the president”.
But a week is a long time in this game...
As the Senate prepares to pass a bill to help fund and speed up the response to coronavirus epidemic, Mitch McConnell's fellow Kentucky senator Rand Paul has introduced an amendment that will slow down its passage – even though the amendment has no chance of passing.
The bill being debated, which would provide free coronavirus testing and provisions for unemployment insurance and paid sick leave, has already been passed by the House of Representatives. While some Senators have voiced misgivings about it, with some saying it does not go far enough, the bill looks very likely to pass without dramatic alterations.
Paul’s amendment, however, has no bearing on the substance on the substance of the bill. Instead, it would “require a social security number for purposes of the child tax credit, and to provide the president the authority to transfer funds as necessary, and to terminate United States military operations and reconstruction activities in Afghanistan.”
Andrew Naughtie has the full story.
The president has just dropped that update on Twitter as the coronavirus crisis deepens.
He has also been dwelling on his own popularity within the Republican Party and prematurely calling time on the 2020 candidacy of Bernie Sanders, who is said to be "assessing" whether he still has a path forward with his advisers.
I love that Trump still hasn't decided whether his slogan is still "Make America Great Again" or "Keep America Great" ("MAGA/KAG").
Chris Riotta has this latest update on the state of play in the US of A as the following developments emerge across the country:
- New York officials discuss "shelter in place" order as 1,000 cases landmark approaches
- Philadelphia delays non-violent arrests
- Nevada asks ‘non-essential’ small businesses to close
Dr Jerome Adams was on NBC this morning and took the opportunity to warn that the country is running out of donated blood.
Dr Adams was speaking after the American Red Cross announced on Tuesday that it is facing a "severe blood shortage" due to an "unprecedented number of blood drive cancellations" as a consequence of the coronavirus outbreak. Cancellations have already resulted in about 86,000 fewer blood donations, according to the organisation.
"As a nation, this is a time where we must take care of one another including those most vulnerable among us in hospitals,” Gail McGovern, president and CEO of the American Red Cross, said.
Dr Adams also said Americans "should be acting as if we have the virus".
"If we do those three things - making sure we’re cleaning our surfaces, making sure we’re washing our hands, and making sure we’re staying six feet away from people - that’s how we will most protect ourselves from this disease," he commented.
"You should not change your approach to mitigation measures based on a positive or a negative test. You could test negative and still be early in the incubation period and still spread coronavirus."
Also on TV this AM was West Virginia senator Joe Manchin, who told CNN he did not wish for people to be “lulled into a false sense of security” as his state confirmed its first coronavirus diagnosis.
He said West Virginia''s population is no less vulnerable than anywhere else because it has a higher percentage of elderly people as well as citizens with respiratory issues and diabetes.
“Up until a couple days ago we only had 40 tests done, now I think we are at 130 or so, but with that being said, John we have no testing, we are not prepared, people think that we are immune from this.”
Manchin said he had spoken to Mike Pence and told him they needed additional testing kits and supplies.
The president's propserity gospel pastor Paula White has been busy exploiting the epidemic to persuade her gullible parishoners to part with their savings. Unbelievable.
Another iffy character giving the president advice is Sanctuary TV pundit and ex-commidities trader Eric Bolling, who thinks he has the answer on how to rescue a crashing economy as the country (and wider world hits a standstill).
He is the author of that celebrated work of literature (soon out in a Penguin Classics edition, no doubt), The Swamp: Washington's Murky Pool of Corruption and Cronyism and How Trump Can Drain It (2017).
The United States has confirmed at least 7,000 cases of coronavirus, according to the latest local and state data, as hospitals prepare to be potentially inundated with patients amid a severe shortage of critical supplies.
With testing ramping up nationwide and governors declaring states of emergency, tens of millions of Americans have isolated themselves in homes and apartments. The death toll in the country has meanwhile risen to at least 117.
Story to come...