The daily business briefing: March 10, 2020

1. Trump proposes payroll tax cut to boost economy during outbreak

President Trump on Monday proposed a payroll tax cut and other policies to stimulate the economy as the coronavirus outbreak damages global supply chains and financial markets. Trump said the measures, including support for hourly workers and the travel industry, would provide "very substantial relief." He said he would discuss the proposals with Senate Majority Leader Mitch McConnell (R-Ky.) and other Republican lawmakers. Trump had resisted taking dramatic action to avoid alarming the public and stoking fear in financial markets. He changed course after aides presented him with options, as U.S. stocks had their worst day since the 2008 financial crisis. "We have a very strong economy," Trump said, "but this blindsided the world."

The Washington Post

2. Stocks struggle to bounce back from Monday's historic losses

U.S. stock index futures jumped by more than 3 percent early Tuesday, signaling a partial rebound from the worst day for Wall Street since 2008. The Dow Jones Industrial Average closed down by 2014 points at 23,851 on Monday, a decline of 7.8 percent. The S&P 500 and the Nasdaq also lost more than 7 percent. New York Stock Exchange trading was paused for 15 minutes Monday morning due to a "circuit breaker" tripped by the sharp opening dives of the Dow and the S&P 500. The declines were the most recent big swings for U.S. stocks as fears mount of economic fallout from the rapidly spreading coronavirus outbreak. On Monday, Saudi Arabia contributed to market panic by slashing oil export prices, sending global crude prices plunging by more than 20 percent.

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3. Oil prices regain some ground after sharpest drop in decades

Oil prices rose by 5 percent early Tuesday after falling by more than 20 percent on Monday, the biggest drop since January 1991 during the Gulf War. West Texas Intermediate crude for April delivery gained 5.5 percent, reaching $32.67 a barrel after plunging by 24.6 percent on Monday. Brent crude was up by 5 percent to $36.08 per barrel after dropping by 24.1 percent on Monday. The partial rebound came after President Trump proposed a payroll tax cut and other measures to stimulate the U.S. economy. Monday's turmoil came after Saudi Arabia slashed its oil export prices over the weekend, threatening a price war after Russia refused to go along with a proposal to deepen existing production cuts to bolster oil prices.

MarketWatch

4. SEC tells employees to work from home after possible coronavirus case

The Securities and Exchange Commission on Monday urged employees to keep away from its Washington, D.C., headquarters due to a potential coronavirus case. An employee was treated for respiratory symptoms, and a doctor reported the worker could have the coronavirus. The SEC is the first major federal agency to use remote working arrangements to prevent the spread of the outbreak. "Even with increased telework, the SEC remains able and committed to fully executing its mission on behalf of investors, including monitoring market function and working closely with other regulators and market participants," the agency's statement said. The SEC has more than 4,000 employees nationwide. The news came on Wall Street's worst day since 2008.

The Washington Post

5. CFPB sues Fifth Third Bank over unauthorized accounts

The Consumer Financial Protection Bureau on Monday filed a lawsuit accusing Fifth Third Bank of opening bank and credit card accounts for customers without their consent, and charging them fees. The CFPB said the bank ignored repeated warnings since 2008 that employees were opening unauthorized accounts to meet aggressive sales targets. The CFPB said the bank favored "its own financial interests to the detriment of consumers," and failed to "remediate harmed customers." Susan Zaunbrecher, chief legal officer for Fifth Third, said the bank would "defend itself vigorously and is confident in the outcome." She said the suit was "unnecessary and unwarranted," because the bank identified fewer than 1,100 fraudulent accounts out of 10 million in its own investigation, and the CFPB has not notified it of any others.

The Hill