There is an undeniable and understandable rush to reopen economies. But as the coronavirus continues to spread, it is also undeniable that decisions made in May will reverberate for years to come. … READ MORE >
coronavirus
U.S. April employment report: Prelude to a tragedy
It is difficult to ponder the significance of 20.5 million jobs lost and a 14.7% unemployment rate – the grim toll of the jobs data released on Friday — among the casualties and death that surround us. … READ MORE >
As private equity firms prepare to deploy cash, a backlash looms
As many middle market businesses struggle to stay above water, private equity firms are well-positioned to provide a lifeline. But there is a looming threat to the way the industry operates, and it is coming from the political sphere. … READ MORE >
Jobless claims, state by state: Eight have a million or more since the coronavirus outbreak
A cumulative 33.5 million claims of newly unemployed people have been processed by the state agencies in the seven weeks since the economies of most states were shut down to prevent the spread of the coronavirus. … READ MORE >
Initial jobless claims continue to rise to extreme levels
The increase of 3.2 million in jobless claims for the week ending May 2 brings the cumulative total to 33.5 million during the past seven weeks. … READ MORE >
U.S. April employment report preview: A magnitude complete in itself
When the jobs report is released on Friday, we expect that there will be roughly 22 million jobs lost and that the unemployment rate will increase to 17%, both of which will understate the labor dynamics at play across the economy. … READ MORE >
ISM service sector index: More pain ahead
The Institute of Supply Management’s April report on the service sector, like its manufacturing cousin, implies that the domestic economy has not yet troughed. The ISM said on Tuesday that the forward-looking new orders and business activity components of its Non-Manufacturing Index declined to 32.9 and 26, well below the 41.8 top line. … READ MORE >
More details about the Main Street Lending Program
The Main Street Lending Program is now eligible for those firms with $5 billion in annual revenue and up to 15,000 employees, an increase from $2.5 billion in revenue and 10,000 employees. In addition, the minimum loan size was lowered to $500,000 from $1 million. … READ MORE >
ISM Manufacturing Index points to more damage ahead
The top-line ISM Manufacturing Index declined to 41.5 from 49.1, confirming that the economy sank into recession in March. The forward-looking new orders component declined to 27.1 from 42.2 and the employment sub-index collapsed to 27.5 from 43.8. … READ MORE >
New data on spread of coronavirus shows need for caution on relaxing restrictions
After a two-week period of fewer cases of the coronavirus, Americans are moving gingerly toward a resumption of normal social and professional activity. The next few weeks will be instructive as to the logic of reopening the economy, new infections and rising deaths. … READ MORE >