The daily business briefing: May 14, 2020

1. Uber to require drivers, riders to wear masks

Uber announced Wednesday that it would require all drivers, riders, and food delivery workers involved in its services globally to wear masks. The move comes as many countries around the world attempt to ease restrictions designed to curb the spread of the coronavirus pandemic, despite concerns that allowing people to leave their homes and letting businesses reopen could result in a new wave of infections. Starting Monday, riders in the United States, Canada, Mexico, Europe, and most Latin American and Asian countries will have to wear a face covering and sit in the back during Uber trips. Drivers will have to take a selfie with a mask before starting work, and verify that they have no coronavirus symptoms and have sanitized their vehicles.

Reuters

2. Powell warns of extended economic pain from pandemic

Federal Reserve Chair Jerome Powell said Wednesday that "the reversal of economic fortune" brought on by the coronavirus pandemic over the last two months in the United States "has caused a level of pain that is hard to capture in words." Powell also said that the Fed is releasing a survey Thursday concluding that, among people who were working in February, nearly 40 percent of those in households making less than $40,000 per year lost a job in March. "The scope and speed of this downturn are without modern precedent, significantly worse than any recession since World War II," Powell said. He also warned that the pandemic would result in an "extended period" of weak growth that could leave lasting economic damage. "It will take some time to get back to where we were," Powell said.

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Reuters Federal Reserve

3. Stocks struggle on warnings of prolonged damage from pandemic

U.S. stocks plunged on Wednesday after Federal Reserve Chairman Jerome Powell warned of prolonged economic damage from the coronavirus pandemic. The Dow Jones Industrial Average plummeted by 2.1 percent, its third straight day of losses and its worst session since May 1. The broader S&P 500 fell by 1.8 percent and the tech-heavy Nasdaq lost 1.6 percent. The declines came as several states are easing lockdowns and reopening their economies, despite concerns that renewed activity could result in another spike in COVID-19 cases. "Everything is dependent on the next several months and how successful businesses can re-open," Nick Raich, CEO of The Earnings Scout, wrote in a note. "All the stimulus in the world will not offset businesses closing their doors for an extended time." Stock futures fell slightly early Thursday.

CNBC

4. U.S. renewable power production poised to exceed coal for 1st time

The United States is expected to get more electricity from renewable energy sources than coal this year for the first time, according to new government projections. The shift comes despite President Trump's campaign promise to revive the coal industry, which was followed by a three-year effort to support coal-burning power plants with such moves as rolling back pollution controls. Coal plants have continued to shut down or operate less frequently since 2010, as the cost of building wind farms fell by more than 40 percent and solar costs dropped by more than 80 percent. Natural gas prices also have fallen to historic lows. Now the coronavirus crisis has driven down demand for electricity, prompting many utilities to curb production of coal power.

The New York Times

5. Another 2.7 million new jobless claims predicted for last week

Economists polled by MarketWatch expect the Labor Department to report Thursday that 2.7 million more people filed new jobless claims last week. The number of weekly new applications for unemployment benefits peaked at a seasonally adjusted 6.9 million in late March, and have decreased steadily since then. The latest wave of new claims would lift the total number applying for benefits to more than 35 million since the coronavirus pandemic slammed the United States in early March, forcing states to issue stay-at-home orders and businesses to shut down in a nationwide effort to prevent infections. Last week, the Labor Department reported that the unemployment rate had risen to 14.7 percent, a post-World War II high.

MarketWatch