The daily business briefing: March 16, 2020

1. Fed slashes rates to near zero in emergency coronavirus response

The Federal Reserve on Sunday announced that it was cutting interest rates by 100 basis points to near zero, setting its target range at 0 percent to 0.25 percent. Fed Chair Jerome Powell said the move was necessary to help offset damage to the economy from the COVID-19 coronavirus pandemic. President Trump, who has repeatedly called for the Fed to slash rates more aggressively, said "people in the market should be very thrilled." The Fed also said it was buying at least $700 billion in government and mortgage-related bonds in a broad effort to stimulate the economy. Futures for the three main U.S. stock indexes fell by more than 4 percent early Monday as investors worried that the Fed can't do much more to ease the crisis.

The Washington Post CNBC

2. NFL players reach 10-year deal with team owners

The NFL Players Association announced on Sunday that its members had narrowly ratified a new collective bargaining agreement with team owners. The vote was 1,019 for, 959 against. The owners had already signed off on the deal, so it takes effect immediately. The agreement will run through the 2030 season, paving the way for changes including a bigger playoff field and a 17-game regular season. The last 10-year deal started in 2011 after the owners locked out the players when negotiations broke down. NFL Commissioner Roger Goodell called the deal "transformative," saying it would "provide substantial benefits to all current and retired players, increase jobs, ensure continued progress on player safety, and give our fans more and better football."

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The Washington Post

3. Saudi Aramco to cut spending after disappointing report

Saudi Aramco on Sunday said it would cut capital spending as the coronavirus pandemic drags down demand for oil. Saudi Arabia's state oil company also posted earnings that fell short of expectations in its first report as a publicly listed company. Aramco last year sold its first shares to the public as part of Crown Prince Mohammed bin Salman's push to reform the country's economy. The company's record-setting IPO was widely seen as a step toward greater transparency for the world's most profitable company. The 21 percent drop in net profit ended at the time of the share sale and did not include the period of the pandemic. International benchmark Brent crude sold for $33.85 per barrel on Friday, down from around $64 at the time of the IPO.

Reuters

4. Domestic weekend box office falls to 20-year low

The domestic box office fell to a 20-year low of $55.3 million over the weekend as some movie theaters shut down and others saw a sharp decline in attendance as customers stayed home due to the coronavirus pandemic. Disney and Pixar's Onward saw its North America ticket sales fall to $10.3 million, a 73 percent drop compared to the animated film's opening weekend. It was the biggest second-week drop ever for a Pixar film. On Sunday night, New York City Mayor Bill de Blasio ordered all movie theaters, as well as nightclubs and other entertainment venues, to close as of Tuesday. Los Angeles Mayor Eric Garcetti issued a similar order. As of early Sunday, all cinemas were closed in 32 countries, including China and many nations in Europe.

The Hollywood Reporter

5. Las Vegas hotels, casinos close due to coronavirus

Some of the most popular hotels and casinos on the Las Vegas Strip, employing tens of thousands of workers, are shutting down amid the coronavirus pandemic. MGM Resorts International, which owns the Bellagio, MGM Grand, and several other resorts, announced on Sunday it is temporarily suspending operations at all of its Las Vegas properties. Chairman and CEO Jim Murren said the closure is "for the good of our employees, guests, and communities." The casinos will close on Monday and hotels on Tuesday; MGM Resorts did not say when it expects operations to resume. There are two confirmed cases of MGM employees with COVID-19: one worked at the Luxor resort and another at the Wet Republic pool at MGM Grand. Wynn Resorts will also close its Wynn Las Vegas and Encore properties starting Tuesday for two weeks.

Las Vegas Review-Journal