Scott Minerd, Guggenheim Partners' global CIO, has a dire warning about the fallout of the coronavirus crisis: it could potentially be "worse than the financial crisis."
Minerd told Axios as much on Friday after the Dow Jones Industrial Average on Thursday plunged 1,191 points, the worst one-day point drop ever.
Amid what's set to be the worst week for the stock market since the financial crisis, former Federal Reserve official Kevin Warsh penned a Wall Street Journal piece recently joining the call for the Fed to take action. Specifically, Warsh wrote the Fed should "announce a 0.25-percentage-point interest-rate cut and make clear it's open-minded about further action," as well as "encourage other central banks to take appropriate simultaneous action to loosen monetary policy in their jurisdictions."
Minerd, who is a member of the the New York Fed's investor advisory committee, told Axios he expects a statement about "some sort of monetary coordination." But he suggested that this, unfortunately, is unlikely to help that much.
"You can cut rates and that helps alleviate some of the problem," he told Axios. "But with a shock like this, monetary policy is pretty impotent. Cutting rates 100 basis points isn't going to do anything."
Minerd previously spoke to CNN on Thursday, warning that "we are just beginning to see the sell-off." On Friday morning, the Dow was down 800 points. Brendan Morrow
In a stunning victory, progressive activist Cori Bush defeated Rep. William Lacy Clay in Missouri's 1st Congressional District Democratic primary on Tuesday.
Clay has represented the district for the last 20 years, and before that, his father, William Lacy Clay Sr., held the seat for three decades. Bush ran against the incumbent in 2018, but lost by a 20-point margin. On Tuesday, with 100 percent of precincts reporting, Bush has 48.6 percent of the vote, compared to Clay with 45.5 percent.
Bush was endorsed by Sen. Bernie Sanders (I-Vt.), and is calling for universal health care, raising the minimum wage, and police reform. In a victory speech, Bush said Missouri's 1st Congressional District "has decided that an incremental approach isn't going to work any longer. We decided that we the people have the answers, and we will lead from the front lines." Catherine Garcia
Voters in Missouri on Tuesday approved a ballot measure expanding Medicaid to roughly 230,000 low-income residents.
With 99 percent of precincts reporting, 53 percent voted "yes" on the measure, while 47 percent voted "no." Missouri is the sixth red state to expand Medicaid, and the second to do so amid the coronavirus pandemic, after Oklahoma. The state is now reporting on average more than 1,200 daily new coronavirus cases, nearly three times more than a month ago, Politico reports.
Missouri has until July 1, 2021, to expand Medicaid under the Affordable Care Act. The measure amends the state's constitution, so lawmakers cannot add requirements to the program. Gov. Mike Parson (R) opposed the expansion, saying it was too expensive and the state doesn't have enough money to pay for it. The federal government gives states up to 90 percent of funding necessary for Medicaid expansion, an improvement over the 65 percent provided to Missouri now under its current program.
"Quite frankly, Missourians are sick and tired of not getting their fair share," Jack Cardetti, a spokesman for the ballot initiative's organizers, told Politico last week "They pay their taxes, they've seen now 37 other states use that money to expand access to health care. Meanwhile, our economy's clearly ailing here." Catherine Garcia
To raise money for cancer research, Andrew Walker and Jacob Adkins traded in their ice skates for rollerblades and hit the road.
Walker and Adkins are hockey players at the University of Massachusetts Boston. They wanted to do something during the pandemic to help others, and came up with a way to raise money and awareness for the American Cancer Society: the roommates would rollerblade from Boston to Mason, Michigan, a nearly 900-mile journey.
Cancer has affected both of them personally, with Adkins' mother in remission after being diagnosed with Hodgkin's lymphoma and Walker's grandfather dying of the disease. Adkins and Walker — who dubbed themselves the Men in Blades — completed their trek in 10 days, arriving in Mason late last month. They raised $28,100, a feat they are especially proud of since donations to so many charities are down because of the pandemic.
"This experience has humbled both of us and has made us just that much more grateful for the people around us and that much more loving," Adkins told WHDH. Catherine Garcia
Rep. Roger Marshall defeated former Kansas Secretary of State Kris Kobach in Tuesday's Kansas Republican Senate primary.
With 70 percent of precincts reporting, Marshall has 39 percent of the vote compared to Kobach with 26.4 percent. Bob Hamilton is in third place with 19 percent, followed by David Lindstrom with 6.9 percent.
Republicans had been worried about the very conservative Kobach winning the primary but not being able to clinch the general election; he lost the state's governor's race in 2018 to Democrat Laura Kelly. "You have sustained real-world trials and evidence and data that say that Kris Kobach is an extremely poor general election candidate who absolutely could be the first Republican to lose a Senate race in Kansas in over 80 years," GOP political operative David Kensinger told KPR.
State Sen. Barbara Bollier, a former Republican and retired anesthesiologist, won the Democratic primary, and will face off against Marshall in November. They are vying to win the seat being vacated by Sen. Pat Roberts (R), who is retiring. Catherine Garcia
Lebanese officials believe Tuesday's enormous explosion in Beirut's port was likely caused by 2,700 tons of ammonium nitrate stored in a warehouse, and Prime Minister Hassan Diab vowed that those "responsible for this catastrophe will pay the price."
The blast killed at least 78 people and injured nearly 4,000, Lebanon's health ministry said, with many people still missing. The explosion leveled buildings, flipped cars, and blew out windows, and was so strong that it registered as a 3.3 magnitude earthquake.
Beirut's hospitals, already under stress due to the coronavirus pandemic, are now overwhelmed by patients, and medical facilities are asking for blood donations and generators. The city's governor, Marwan Abboud, told reporters he has "never in my life seen damage this enormous ... this is a national catastrophe. This is a disaster for Lebanon."
Lebanon is experiencing high unemployment and poverty rates, and Diab has asked for international assistance. Several countries, including Egypt, Jordan, and the United Kingdom, have pledged to help, and so has Israel, a country with which Lebanon is still technically at war; the country said it offered the Lebanese government "via international intermediaries medical and humanitarian aid, as well as immediate emergency assistance." Catherine Garcia
It cost nearly $5 billion for Disney to close Disneyland, Walt Disney World, Disneyland Paris, and its other theme parks from mid-March to June, the Walt Disney Company revealed on Tuesday.
During an earnings webcast, the company said it posted a loss of nearly $5 billion for the third quarter, which included a $2 billion loss in its parks, products, and experiences segment, USA Today reports. This segment's revenue dropped 85 percent to $1 billion compared to the same quarter in 2019.
While Shanghai Disneyland reopened in May, followed by Disney World and Disneyland Paris in July, Disneyland in Southern California remains closed. Hong Kong Disneyland reopened in June, but after a surge in coronavirus cases, shut its doors again last month.
Florida has the second-highest number of coronavirus cases in the United States, and executives said Disney World is seeing more cancelations and lower attendance than expected. "This is obviously a very uncertain time," CEO Bob Chapek said. "We should be in good shape once consumer confidence returns." Catherine Garcia