csmonitor--2020-03-10--Hoarding toilet paper? How consumers cope with virus anxiety

As an Arizonan , Gregory Cohen has never had to stock up ahead of a hurricane or other natural disaster .
But fear of the new coronavirus has led the attorney to run up a hefty bill at the local grocery store last week on emergency supplies .
That included 12 cans of diced tomatoes , 12 cans of chili beans , soap , and six boxes of pasta that he says should last him and his family four weeks .
`` My biggest concern is that we will all be asked to stay at home , '' said Mr. @ @ @ @ @ @ @ tubs in his garage for his wife and teenage son .
`` This is my way of exerting control of the uncertainty of the current situation . ''
COVID-19 has created legions of hoarders who are loading up on canned goods , frozen dinners , toilet paper , and cleaning products .
Many like Mr. Cohen want to be prepared as they hear warnings about quarantines and watch a growing number of companies like Twitter , Microsoft , and Amazon ask their employees to work from home .
Such stockpiling is expected to @ @ @ @ @ @ @ boon for discounters and grocery stores as well as food delivery services that is also introducing logistical headaches at the same time .
Costco Wholesale Corp. 's Chief Financial Officer Richard Galanti described the buying frenzy as `` off the charts '' throughout the United States in a call with investors this week .
Some like Kroger Co. are now placing limits on certain items such as cold and flu-related products to five each per order .
Target and Walmart say they are talking to suppliers to replenish bare shelves , but didn @ @ @ @ @ @ @ take .
And New Jersey-based Campbell Soup Co. said it 's stepping up production because of increased orders from grocery stores and other retailers as demand started growing this week .
Instacart reports a surge in demand for pantry items such as powdered milk and canned goods , as well as personal care products like hand sanitizer and vitamins .
Sales are up tenfold across the country but business is particularly heavy in California , Washington , Oregon , and New York , where sales are up twenty-fold over the past week , @ @ @ @ @ @ @ of hand sanitizers in the U.S. more than doubled in the four weeks ending Feb. 29 compared to the same period a year ago , according to market research firm Nielsen , while sales of thermometers spiked 52.3 % during that same period .
Sales of dried beans spiked nearly 18 % .
Online purchases of toilet paper have nearly doubled and non-perishable items like canned goods rose nearly 70 % during the January and February period , according to Adobe Analytics .
Australian Chief Medical Officer Brendan Murphy , who is leading @ @ @ @ @ @ @ outbreak , on Thursday urged against stockpiling of toilet paper .
`` There is no reason to denude the shelves of lavatory paper in the supermarkets , '' Mr. Murphy said in a national televised press conference .
`` We should continue our normal activity . ''
Some experts attribute the frenzy to a lack of guidance from local officials – will their city be the next to shut down ?
How long would a mass quarantine last ?
When faced with an unknown threat , CNN reports that it 's natural for @ @ @ @ @ @ @ when they see others doing the same : Images of empty shelves and shopping carts piled high with supplies have inundated news reports and social feeds .
People see images of panic buyers , assume there 's a reason to panic and buy up supplies , too , [ professor and clinical psychologist Steven Taylor ] said .
`` People , being social creatures , we look to each other for cues for what is safe and what is dangerous , '' he said .
`` And when you see someone in the @ @ @ @ @ @ @ cause a fear contagion effect . ''
All those photos of empty shelves may lead people to believe that they must rush out and grab toilet paper while they still can .
And what started as perceived scarcity becomes actual scarcity , Taylor said .
Social media is a huge player in novel coronavirus fear-mongering , Taylor said .
Misinformation spreads with ease , and open platforms amplify voices of panic .
Italians engaged in panic buying in the first two days after officials in Lombardy and Veneto started to expand protective measures @ @ @ @ @ @ @ theaters , and museums – but it subsided quickly after an initial spurt .
Supermarkets from the heart of Milan to provincial towns in Veneto were cleared of the Italian staple , pasta , but also such items as flour and meat , with butcher cases emptying on consecutive days .
In one suburban mall supermarket , a customer with a shopping cart piled high with bottled water was told it exceeded limits being put in place .
Bocconi economist Francesco Daveri said the hoarding pushed up sales at major supermarket chains in @ @ @ @ @ @ @ behavior in the days leading up to a hurricane or other natural disasters .
Superstorm Sandy , the deadly hurricane that struck the Northeast in 2012 , caused people to crowd stores to buy flashlights , batteries , and food .
But what ’ s different about the hoarding around the coronavirus is that it 's happening all across the country .
Consumers are also dealing with an unknown threat and they have no idea when it will be over , consumer experts say .
`` This is a big time of anxiety @ @ @ @ @ @ @ of anxiety is uncertainty , '' says Stewart Shankman , professor of psychiatry and behavioral sciences at Northwestern University .
`` People are trying to get a sense of control by buying things you really don ’ t need .
It 's a false sense of control . ''
Wendy Liebmann , founder and CEO of WSL Strategic Retail , described the behavior as `` animalistic . ''
`` There 's not much guidance other than washing your hands , '' Ms. Liebmann said .
With many store shelves cleaned out of necessities @ @ @ @ @ @ @ .
He lives in the Capitol Hill area of Seattle , a popular neighborhood with hip bars and restaurants east of downtown .
He said Wednesday that it took him a couple days this week to find toilet paper , and that Whole Foods and QFC grocers had been cleaned out .
`` After sleuthing around , I violated my own privacy standards and went to Amazon Go , which had one pack left , '' he said .
To Mr. Chan , the panic buying squares with warnings everyone has been hearing @ @ @ @ @ @ @ goods like beans and rice were scarce , as were hand sanitizer and bleach .
He saw one woman at a Whole Foods grabbing as many travel-size bottles of hand sanitizer as she could .
There could be some buyers ' remorse if the coronavirus outbreak passes without forcing huge swaths of people to stay at home .
That happened in 2011 after Hurricane Irene , which passed through the Northeast without inflicting much harm .
The crowds who braved the long lines to buy batteries and canned goods then started to complain @ @ @ @ @ @ @ they bought .
Mr. Cohen said he 's not worried about the extra supplies of food , including frozen burritos .
`` I got an 18-year old , '' he said .
This story was reported by The Associated Press .
AP writer Lisa Baumann in Seattle , Dee-Ann Durbin in Detroit , and Colleen Barry in Milan contributed to this report .

As an Arizonan, Gregory Cohen has never had to stock up ahead of a hurricane or other natural disaster.
But fear of the new coronavirus has led the attorney to run up a hefty bill at the local grocery store last week on emergency supplies. That included 12 cans of diced tomatoes, 12 cans of chili beans, soap, and six boxes of pasta that he says should last him and his family four weeks.
"My biggest concern is that we will all be asked to stay at home," said Mr. Cohen, who stored the supplies in tubs in his garage for his wife and teenage son. "This is my way of exerting control of the uncertainty of the current situation."
COVID-19 has created legions of hoarders who are loading up on canned goods, frozen dinners, toilet paper, and cleaning products. Many like Mr. Cohen want to be prepared as they hear warnings about quarantines and watch a growing number of companies like Twitter, Microsoft, and Amazon ask their employees to work from home.
Such stockpiling is expected to last for weeks, resulting in a boon for discounters and grocery stores as well as food delivery services that is also introducing logistical headaches at the same time. Costco Wholesale Corp.'s Chief Financial Officer Richard Galanti described the buying frenzy as "off the charts'' throughout the United States in a call with investors this week. Some like Kroger Co. are now placing limits on certain items such as cold and flu-related products to five each per order.
Target and Walmart say they are talking to suppliers to replenish bare shelves, but didn’t say how long that could take. And New Jersey-based Campbell Soup Co. said it's stepping up production because of increased orders from grocery stores and other retailers as demand started growing this week.
Instacart reports a surge in demand for pantry items such as powdered milk and canned goods, as well as personal care products like hand sanitizer and vitamins. Sales are up tenfold across the country but business is particularly heavy in California, Washington, Oregon, and New York, where sales are up twenty-fold over the past week, the company said.
Meanwhile, sales of hand sanitizers in the U.S. more than doubled in the four weeks ending Feb. 29 compared to the same period a year ago, according to market research firm Nielsen, while sales of thermometers spiked 52.3% during that same period. Sales of dried beans spiked nearly 18%.
Online purchases of toilet paper have nearly doubled and non-perishable items like canned goods rose nearly 70% during the January and February period, according to Adobe Analytics.
Australian Chief Medical Officer Brendan Murphy, who is leading Australia’s response to the COVID-19 outbreak, on Thursday urged against stockpiling of toilet paper.
"There is no reason to denude the shelves of lavatory paper in the supermarkets," Mr. Murphy said in a national televised press conference. "We should continue our normal activity."
Some experts attribute the frenzy to a lack of guidance from local officials – will their city be the next to shut down? How long would a mass quarantine last? When faced with an unknown threat, CNN reports that it's natural for people to want to overprepare, especially when they see others doing the same:
Images of empty shelves and shopping carts piled high with supplies have inundated news reports and social feeds. People see images of panic buyers, assume there's a reason to panic and buy up supplies, too, [professor and clinical psychologist Steven Taylor] said. "People, being social creatures, we look to each other for cues for what is safe and what is dangerous," he said. "And when you see someone in the store, panic buying, that can cause a fear contagion effect." All those photos of empty shelves may lead people to believe that they must rush out and grab toilet paper while they still can. And what started as perceived scarcity becomes actual scarcity, Taylor said. Social media is a huge player in novel coronavirus fear-mongering, Taylor said. Misinformation spreads with ease, and open platforms amplify voices of panic.
Italians engaged in panic buying in the first two days after officials in Lombardy and Veneto started to expand protective measures on Feb. 23 – closing schools, theaters, and museums – but it subsided quickly after an initial spurt.
Supermarkets from the heart of Milan to provincial towns in Veneto were cleared of the Italian staple, pasta, but also such items as flour and meat, with butcher cases emptying on consecutive days. In one suburban mall supermarket, a customer with a shopping cart piled high with bottled water was told it exceeded limits being put in place.
Bocconi economist Francesco Daveri said the hoarding pushed up sales at major supermarket chains in the double-digits.
Such hoarding resembles typical behavior in the days leading up to a hurricane or other natural disasters. Superstorm Sandy, the deadly hurricane that struck the Northeast in 2012, caused people to crowd stores to buy flashlights, batteries, and food.
But what’s different about the hoarding around the coronavirus is that it's happening all across the country. Consumers are also dealing with an unknown threat and they have no idea when it will be over, consumer experts say.
"This is a big time of anxiety, and we know the biggest source of anxiety is uncertainty," says Stewart Shankman, professor of psychiatry and behavioral sciences at Northwestern University. "People are trying to get a sense of control by buying things you really don’t need. It's a false sense of control."
Wendy Liebmann, founder and CEO of WSL Strategic Retail, described the behavior as "animalistic.''
"There's not much guidance other than washing your hands," Ms. Liebmann said.
With many store shelves cleaned out of necessities, shoppers like Christopher Chan are frustrated.
He lives in the Capitol Hill area of Seattle, a popular neighborhood with hip bars and restaurants east of downtown. He said Wednesday that it took him a couple days this week to find toilet paper, and that Whole Foods and QFC grocers had been cleaned out.
"After sleuthing around, I violated my own privacy standards and went to Amazon Go, which had one pack left," he said.
To Mr. Chan, the panic buying squares with warnings everyone has been hearing about possible quarantines and he noticed dry goods like beans and rice were scarce, as were hand sanitizer and bleach. He saw one woman at a Whole Foods grabbing as many travel-size bottles of hand sanitizer as she could.
There could be some buyers' remorse if the coronavirus outbreak passes without forcing huge swaths of people to stay at home. That happened in 2011 after Hurricane Irene, which passed through the Northeast without inflicting much harm. The crowds who braved the long lines to buy batteries and canned goods then started to complain and demand refunds for all the stuff they bought.
Mr. Cohen said he's not worried about the extra supplies of food, including frozen burritos.
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"I got an 18-year old," he said.
This story was reported by The Associated Press. AP writer Lisa Baumann in Seattle, Dee-Ann Durbin in Detroit, and Colleen Barry in Milan contributed to this report.


csmonitor--2020-03-09--Daily for March 9, 2020

Daily for March 9, 2020

The Spanish moss-draped oaks and brick-laid city squares of the American South ’ s low country are undoubtedly romantic .
After all , some 8,000 weddings – lace-wrapped opening chapters of new lives – take place throughout the region every year .
But for many Americans looking to get hitched this year , it is starting to feel like someone dropped the wedding cake .
Heavily dependent on Chinese dressmakers who toil in well-lit factory floors from Wuhan and beyond , the $ 78 billion U.S. wedding industry is facing turmoil unlike any it ’ s ever seen .
Waiting @ @ @ @ @ @ @ months to who knows when .
Chinese suppliers have sent out apologetic but blunt notices that back orders could last for months .
The COVID-19 crisis comes at the absolute worst time : Late winter is when shopkeepers like Mia Mayer make nearly their entire year ’ s profit as nervous young women and their families waltz in and out of the changing booths .
“ This is our world now , ” says Ms. Mayer , who has sold over 1,000 dresses at her lacy boutique , That Dress , in Rincon @ @ @ @ @ @ @ .
“ Wedding dresses , the decorations , the linen – all that stuff comes from China .
The truth is , I never thought about this risk .
You think about a decline in business , but that ’ s something that you can do something about .
Now , there is no fix .
There is no Plan B.
” The upheaval in the realm of weddings is just one example of a severe shock – a possibly transformative jolt – that is now rippling through an interconnected world economy .
@ @ @ @ @ @ @ image to keep in mind .
As stock markets totter – exchanges plunged around the world Monday , and NYSE trading was temporarily halted – the coronavirus emergency seems to be testing whether a “ wedded ” global economy will hold together or fall apart .
The test comes as the very idea of “ globalization ” – long vaunted as a path to shared prosperity for richer and poorer nations alike – has already come under assault in the realms of public opinion , public policy , and even economics .
Some @ @ @ @ @ @ @ already predisposed against unfettered trade , are now pointing to the virus as an added reason to seal the borders and bring factories back home .
The vast majority of business experts say the real lesson of the new coronavirus outbreak is , if anything , the very opposite .
They don ’ t foresee any wholesale retreat from today ’ s web of far-flung commercial ties among nations , or benefits in doing so .
Still , they expect the virus outbreak will alter the patterns of trade , perhaps in ways @ @ @ @ @ @ @ a global character .
“ Any reasonable board member would expect a CEO to be responding with greater supply redundancy and be prepared to pay for it , ” says Mary Lovely , a senior fellow at the Peterson Institute for International Economics in Washington .
“ To the extent that this crisis appears to be heading toward a global phenomenon , it is a nudge toward a different , more diversified globalization rather than less globalization.
” Indeed , supply-chain specialist Rolf Zimmer in Germany says his clients are looking to make @ @ @ @ @ @ @ more insular .
“ This [ epidemic ] may end up as a great ‘ teaching moment ’ where we see that multilateral cooperation is essential , ” says Richard Baldwin , an international economist at the Graduate Institute in Geneva .
“ Or it may be seized upon by nationalists as an excuse to further restrict trade and immigration , ” which would hurt nations that go that route , he writes via email .
Economists generally say that , while it ’ s true that trading relations come with risks , @ @ @ @ @ @ @ far outweigh the costs .
Decades of rising container-ship commerce and falling trade barriers , after all , have done much to drive a historic decline in poverty rates , most notably in Asia but spanning the world .
In the process , median incomes in advanced nations like the U.S. have gone up , not down .
Yet the change has been uneven .
Coupled with the trend of rising automation , globalization has created pockets of desperation when factories close .
And , particularly in the new millennium with China ’ @ @ @ @ @ @ @ the sheer pace of these changes has sown political upheaval .
Donald Trump ’ s successful anti-establishment presidential run in 2016 and the British public ’ s vote to leave the European Union are , in part , signs of the social strain .
The coronavirus emergency is globalization ’ s latest test .
Some world leaders say it ’ s vital for nations to meet the crisis by collaborating across boundaries on both health and economic matters .
“ There is a common enemy , [ and ] we need to fight @ @ @ @ @ @ @ , director-general of the World Health Organization , said in a recent public appearance .
For many workers and corporations , the economic side of that fight isn ’ t about lofty ideals .
It ’ s about coping , here and now , with dents in both supply and demand .
In Italy , the economic toll of the coronavirus is visible in the sheer emptiness .
It ’ s audible in the eerie quiet .
“ It ’ s dead .
There are no tourists , ” says Gianni , owner @ @ @ @ @ @ @ of Rome .
He has reduced the amount of pizza he makes each day , but he still can ’ t sell it all .
“ I ’ m worried that I ’ m not going to be able to pay the rent , ” he says .
Due to a spike in cases , Italy is among the world ’ s hardest hit .
On Monday night , the government took the extraordinary step of banning public gatherings throughout the country and asking people to stay home except for work or emergencies @ @ @ @ @ @ @ the world : unfilled airplanes , half-vacant malls , and canceled public events or business conferences .
Even far from the world ’ s biggest ports , in the tiny landlocked nation of Lesotho in southern Africa , the ripples are significant .
In an industrial district of the low-slung capital , Maseru , some 40,000 people work in garment factories , churning out sweatshirts and skinny jeans for American brands like Levis , Walmart , and Costco .
The industry is the nation ’ s largest private employer .
“ Orders are @ @ @ @ @ @ @ says Bahlakoana Shaw Lebakae , founder of the United Textile Employees , a workers ’ union .
Why ?
The textiles used by factories in Lesotho come from China .
The logjams there mean that U.S. buyers are suddenly cautious purchasers .
“ The textile industry here is already hanging by a thread , ” Mr. Lebakae says , because it is reliant on a precarious American trade deal called the African Growth and Opportunities Act , which allows duty-free sales in U.S. markets .
Business leaders and officials worldwide are scrambling for @ @ @ @ @ @ @ t always an adequate substitute for a business trip , which are harder to arrange these days .
Finding alternative suppliers , whether of wedding dresses or microchips , isn ’ t easy .
Consider the closure of one parts factory in Codogno , Italy , an area affected by the outbreak .
The shutdown is temporary , but it means that auto assembly plants across Europe , from Jaguar Land Rover and BMW to Renault and Peugeot , could be left short of crucial components .
“ This coronavirus is a wake-up @ @ @ @ @ @ @ Wow .
We are much more vulnerable than we thought , ’ ” says Mr. Zimmer in Germany , chief solutions officer at Riskmethods , which provides software to help companies manage supply chain risks .
It ’ s not that manufacturers haven ’ t thought about the need for resilience before .
Many got a similar wake-up call in 2011 from an earthquake in Japan and floods in a Thai center of hard-drive production .
But risks to supply networks may lie beneath the surface .
Even if a manufacturer has multiple @ @ @ @ @ @ @ happens when those suppliers all rely on a single source for a key material ?
Supply-chain experts say the worst of the China-related disruptions isn ’ t being felt in Western factories yet , due to the lag time of shipments arriving .
The flow of global goods from pharmaceuticals to electronics hinges on two unknowns : How long will it take for Chinese factories to get back up to speed , and how many other producers around the world will face interruptions due to the virus ?
“ We ’ ve told @ @ @ @ @ @ @ , and to make sure that you have a lot of stock of goods that are at high risk of stopping up , ” says Christopher Parmo , chief operating officer of Verdane , a Europe-wide private equity firm that owns about 100 tech companies .
Yet the outbreak could be more than just an alarm-bell to diversify supplier networks .
It might contribute to a broader reshaping of the global economy .
On the one hand , it promises to accelerate “ telemigration , ” or the globalization of desk jobs that @ @ @ @ @ @ @ Baldwin , author of a 2018 book on the future of work .
Already , the outbreak has prompted companies such as Twitter and JPMorgan Chase to ask thousands of employees to work from home .
It ’ s not a long leap from such steps into a next phase of globalization , in the service sector .
Domestic telecommuting “ is the thin edge of the wedge for international telecommuting , ” he says .
On the other hand , if companies rethink their global footprints , several forces may nudge them @ @ @ @ @ @ @ further afield .
The years since the 2008 financial crisis have already been marked by what some observers call deglobalization – a slowdown in the growth of trade and a rebound in protectionist measures such as tariffs worldwide .
“ The virus adds to other reasons why firms are already rethinking their logistics , ” writes Vicky Redwood of the forecasting firm Capital Economics , in a late-February report .
• Greenhouse gas emissions can be reduced when freight-transport distances are shortened .
• National security may be enhanced by moving important production @ @ @ @ @ @ @ to customize products and respond to shifting consumer preferences when factories are close to the shoppers they serve .
• Rising automation is making labor costs a smaller factor in deciding whether to locate plants in high- or low-wage nations .
“ Machines just repeat what they ’ re supposed to do , precisely , ” says Harald Malmgren , a longtime presidential adviser and consultant to corporations on trade-related issues .
“ They work night and day .
They don ’ t go on strike.
” Yet even if a trend toward @ @ @ @ @ @ @ Malmgren expects , it won ’ t happen overnight .
And it doesn ’ t imply an incoming tide of jobs to nations like the U.S. , if service-sector jobs simultaneously become more globally “ traded ” and automated .
And whether the overall arc of globalization bends upward or downward , the major economic takeaway may be for nations to avoid having “ all eggs in one basket.
” “ China isn ’ t the problem .
Lack of diversification is the problem , ” says Belinda Archibong , an assistant professor @ @ @ @ @ @ @ York .
In Africa , “ lack of regional , intra-Africa trade is the problem.
” That ’ s a long-standing discussion within the continent .
“ Maybe this crisis is going to force us to trade more amongst ourselves , ” says Blandina Kilama , an economist and senior researcher at Research on Poverty Alleviation , a Tanzanian think tank .
In the U.S. , John Melin is an eyewitness to the virtues of trade .
Brown & Haley , the candy company where he is president and chief operating officer , @ @ @ @ @ @ @ Almond Roca sales coming from overseas .
China is a big source of that demand , which helps keep the firm ’ s 175 employees near Tacoma , Washington , employed .
Mr. Melin and his team are working hard to keep the sales flowing and to pin down some alternative suppliers for packaging .
“ Part of the health of our country and our high standard of living comes from the fact that people fly on Boeing airplanes around the world ,  and people buy iPhones around the world ,  @ @ @ @ @ @ @ of the United States , ” he says .
That integration with the world “ brings more good than bad.
” In Germany , Yorck Otto similarly sees globalization as here to stay , and probably for the better .
“ No , this wheel can not be turned back , ” says Dr. Otto , president of a business association representing small and medium-sized companies .
“ The global supply chain will continue to get better and better every day .
This globalization will be refined , and hopefully it will be @ @ @ @ @ @ @ regulations so that the world can be a little bit better through globalization , ” he says .
“ I ’ m not a great fan of kids sitting in Bolivia digging into soil to get materials to make batteries , for example.
” For now , back at the bridal shop , Ms. Mayer doesn ’ t know of too many alternative materials for the dresses she needs .
The supply predicament will likely push business toward do-it-yourself weddings , used wedding dresses on eBay , and a reevaluation of price points @ @ @ @ @ @ @ can keep up with demand .
“ I ’ m sure [ COVID-19 ] will get figured out in time , ” says Ms. Mayer .
“ But in our world , time can make or break you .
It ’ s scary .
It ’ s your livelihood.
” This piece was reported by Patrik Jonsson in Savannah , Georgia ; Nick Squires in Rome ; Ryan Lenora Brown in Johannesburg ; and Lenora Chu in Berlin .
It was written by Mr. Trumbull .

Why COVID-19 is likely to change globalization, not reverse it Collapse
The Spanish moss-draped oaks and brick-laid city squares of the American South’s low country are undoubtedly romantic. After all, some 8,000 weddings – lace-wrapped opening chapters of new lives – take place throughout the region every year.
But for many Americans looking to get hitched this year, it is starting to feel like someone dropped the wedding cake.
Heavily dependent on Chinese dressmakers who toil in well-lit factory floors from Wuhan and beyond, the $78 billion U.S. wedding industry is facing turmoil unlike any it’s ever seen. Waiting times for dresses have gone from six months to who knows when. Chinese suppliers have sent out apologetic but blunt notices that back orders could last for months.
The COVID-19 crisis comes at the absolute worst time: Late winter is when shopkeepers like Mia Mayer make nearly their entire year’s profit as nervous young women and their families waltz in and out of the changing booths.
“This is our world now,” says Ms. Mayer, who has sold over 1,000 dresses at her lacy boutique, That Dress, in Rincon, Georgia, since opening in 2012. “Wedding dresses, the decorations, the linen – all that stuff comes from China. The truth is, I never thought about this risk. You think about a decline in business, but that’s something that you can do something about. Now, there is no fix. There is no Plan B.”
The upheaval in the realm of weddings is just one example of a severe shock – a possibly transformative jolt – that is now rippling through an interconnected world economy.
And marriage ceremonies may be an apropos image to keep in mind. As stock markets totter – exchanges plunged around the world Monday, and NYSE trading was temporarily halted – the coronavirus emergency seems to be testing whether a “wedded” global economy will hold together or fall apart.
Globalization under fire
The test comes as the very idea of “globalization” – long vaunted as a path to shared prosperity for richer and poorer nations alike – has already come under assault in the realms of public opinion, public policy, and even economics.
Some nationalists in Europe and the U.S., already predisposed against unfettered trade, are now pointing to the virus as an added reason to seal the borders and bring factories back home.
The vast majority of business experts say the real lesson of the new coronavirus outbreak is, if anything, the very opposite. They don’t foresee any wholesale retreat from today’s web of far-flung commercial ties among nations, or benefits in doing so. Still, they expect the virus outbreak will alter the patterns of trade, perhaps in ways that have a local as well as a global character.
“Any reasonable board member would expect a CEO to be responding with greater supply redundancy and be prepared to pay for it,” says Mary Lovely, a senior fellow at the Peterson Institute for International Economics in Washington. “To the extent that this crisis appears to be heading toward a global phenomenon, it is a nudge toward a different, more diversified globalization rather than less globalization.”
China Daily/Reuters View caption Hide caption Workers wearing face masks rope a container ship at a port in Qingdao, China, Feb. 11, 2020. Many Chinese factories halted production in February due to efforts to contain the coronavirus outbreak. Global ripple effects are expected in industries from auto parts to pharmaceuticals, as the Chinese factories work to restart.
Indeed, supply-chain specialist Rolf Zimmer in Germany says his clients are looking to make their supply networks more resilient, not more insular.
“This [epidemic] may end up as a great ‘teaching moment’ where we see that multilateral cooperation is essential,” says Richard Baldwin, an international economist at the Graduate Institute in Geneva.
“Or it may be seized upon by nationalists as an excuse to further restrict trade and immigration,” which would hurt nations that go that route, he writes via email.
Decline in poverty
Economists generally say that, while it’s true that trading relations come with risks, the benefits of economic connections tend to far outweigh the costs.
Decades of rising container-ship commerce and falling trade barriers, after all, have done much to drive a historic decline in poverty rates, most notably in Asia but spanning the world. In the process, median incomes in advanced nations like the U.S. have gone up, not down.
Yet the change has been uneven. Coupled with the trend of rising automation, globalization has created pockets of desperation when factories close. And, particularly in the new millennium with China’s full-tilt entry into global markets, the sheer pace of these changes has sown political upheaval. Donald Trump’s successful anti-establishment presidential run in 2016 and the British public’s vote to leave the European Union are, in part, signs of the social strain.
The coronavirus emergency is globalization’s latest test. Some world leaders say it’s vital for nations to meet the crisis by collaborating across boundaries on both health and economic matters.
“There is a common enemy, [and] we need to fight in unison,” Tedros Adhanom Ghebreyesus, director-general of the World Health Organization, said in a recent public appearance.
For many workers and corporations, the economic side of that fight isn’t about lofty ideals. It’s about coping, here and now, with dents in both supply and demand.
In Italy, the economic toll of the coronavirus is visible in the sheer emptiness. It’s audible in the eerie quiet.
“It’s dead. There are no tourists,” says Gianni, owner of a small pizzeria in the center of Rome.
He has reduced the amount of pizza he makes each day, but he still can’t sell it all. “I’m worried that I’m not going to be able to pay the rent,” he says.
Due to a spike in cases, Italy is among the world’s hardest hit. On Monday night, the government took the extraordinary step of banning public gatherings throughout the country and asking people to stay home except for work or emergencies.
Yet parallel challenges are emerging around the world: unfilled airplanes, half-vacant malls, and canceled public events or business conferences.
Who supplies the suppliers?
Even far from the world’s biggest ports, in the tiny landlocked nation of Lesotho in southern Africa, the ripples are significant. In an industrial district of the low-slung capital, Maseru, some 40,000 people work in garment factories, churning out sweatshirts and skinny jeans for American brands like Levis, Walmart, and Costco. The industry is the nation’s largest private employer.
“Orders are already beginning to slow down,” says Bahlakoana Shaw Lebakae, founder of the United Textile Employees, a workers’ union.
Why? The textiles used by factories in Lesotho come from China. The logjams there mean that U.S. buyers are suddenly cautious purchasers.
“The textile industry here is already hanging by a thread,” Mr. Lebakae says, because it is reliant on a precarious American trade deal called the African Growth and Opportunities Act, which allows duty-free sales in U.S. markets.
Business leaders and officials worldwide are scrambling for solutions. But a videoconference isn’t always an adequate substitute for a business trip, which are harder to arrange these days. Finding alternative suppliers, whether of wedding dresses or microchips, isn’t easy.
Consider the closure of one parts factory in Codogno, Italy, an area affected by the outbreak. The shutdown is temporary, but it means that auto assembly plants across Europe, from Jaguar Land Rover and BMW to Renault and Peugeot, could be left short of crucial components.
“This coronavirus is a wake-up call. It’s, ‘Wow. We are much more vulnerable than we thought,’” says Mr. Zimmer in Germany, chief solutions officer at Riskmethods, which provides software to help companies manage supply chain risks.
Andrew Medichini/AP View caption Hide caption A sea gull commands a view of the Colosseum amid plummeting tourism in Rome, March 7, 2020. Italy is a focal point of the coronavirus emergency in Europe, and the nation's economy is at risk of falling back into recession. By curbing travel and fueling uncertainty, the epidemic is affecting global consumer spending, not just producer supply chains.
It’s not that manufacturers haven’t thought about the need for resilience before. Many got a similar wake-up call in 2011 from an earthquake in Japan and floods in a Thai center of hard-drive production. But risks to supply networks may lie beneath the surface.
Even if a manufacturer has multiple suppliers, Mr. Zimmer cautions, what happens when those suppliers all rely on a single source for a key material?
Supply-chain experts say the worst of the China-related disruptions isn’t being felt in Western factories yet, due to the lag time of shipments arriving. The flow of global goods from pharmaceuticals to electronics hinges on two unknowns: How long will it take for Chinese factories to get back up to speed, and how many other producers around the world will face interruptions due to the virus?
“We’ve told companies to keep a lot of cash, and to make sure that you have a lot of stock of goods that are at high risk of stopping up,” says Christopher Parmo, chief operating officer of Verdane, a Europe-wide private equity firm that owns about 100 tech companies.
Deglobalization forces
Yet the outbreak could be more than just an alarm-bell to diversify supplier networks. It might contribute to a broader reshaping of the global economy.
On the one hand, it promises to accelerate “telemigration,” or the globalization of desk jobs that are becoming increasingly digital, argues Professor Baldwin, author of a 2018 book on the future of work. Already, the outbreak has prompted companies such as Twitter and JPMorgan Chase to ask thousands of employees to work from home. It’s not a long leap from such steps into a next phase of globalization, in the service sector.
Domestic telecommuting “is the thin edge of the wedge for international telecommuting,” he says.
On the other hand, if companies rethink their global footprints, several forces may nudge them to focus closer to home rather than further afield. The years since the 2008 financial crisis have already been marked by what some observers call deglobalization – a slowdown in the growth of trade and a rebound in protectionist measures such as tariffs worldwide.
“The virus adds to other reasons why firms are already rethinking their logistics,” writes Vicky Redwood of the forecasting firm Capital Economics, in a late-February report.
Beyond protectionist policies, those reasons include:
Greenhouse gas emissions can be reduced when freight-transport distances are shortened.
National security may be enhanced by moving important production homeward.
It’s easier to customize products and respond to shifting consumer preferences when factories are close to the shoppers they serve.
Rising automation is making labor costs a smaller factor in deciding whether to locate plants in high- or low-wage nations.
“Machines just repeat what they’re supposed to do, precisely,” says Harald Malmgren, a longtime presidential adviser and consultant to corporations on trade-related issues. “They work night and day. They don’t go on strike.”
Yet even if a trend toward more localized production accelerates, as Dr. Malmgren expects, it won’t happen overnight. And it doesn’t imply an incoming tide of jobs to nations like the U.S., if service-sector jobs simultaneously become more globally “traded” and automated.
The virtues of trade
And whether the overall arc of globalization bends upward or downward, the major economic takeaway may be for nations to avoid having “all eggs in one basket.”
“China isn’t the problem. Lack of diversification is the problem,” says Belinda Archibong, an assistant professor of economics at Barnard College in New York. In Africa, “lack of regional, intra-Africa trade is the problem.”
That’s a long-standing discussion within the continent. “Maybe this crisis is going to force us to trade more amongst ourselves,” says Blandina Kilama, an economist and senior researcher at Research on Poverty Alleviation, a Tanzanian think tank.
In the U.S., John Melin is an eyewitness to the virtues of trade. Brown & Haley, the candy company where he is president and chief operating officer, has seen a rising share of its Almond Roca sales coming from overseas.
China is a big source of that demand, which helps keep the firm’s 175 employees near Tacoma, Washington, employed. Mr. Melin and his team are working hard to keep the sales flowing and to pin down some alternative suppliers for packaging.
“Part of the health of our country and our high standard of living comes from the fact that people fly on Boeing airplanes around the world, and people buy iPhones around the world, and people admire the values and institutions of the United States,” he says. That integration with the world “brings more good than bad.”
In Germany, Yorck Otto similarly sees globalization as here to stay, and probably for the better.
“No, this wheel cannot be turned back,” says Dr. Otto, president of a business association representing small and medium-sized companies.
“The global supply chain will continue to get better and better every day. This globalization will be refined, and hopefully it will be also covered under new humanitarian laws and regulations so that the world can be a little bit better through globalization,” he says. “I’m not a great fan of kids sitting in Bolivia digging into soil to get materials to make batteries, for example.”
For now, back at the bridal shop, Ms. Mayer doesn’t know of too many alternative materials for the dresses she needs.
The supply predicament will likely push business toward do-it-yourself weddings, used wedding dresses on eBay, and a reevaluation of price points to consider American dressmakers, if they can keep up with demand.
“I’m sure [COVID-19] will get figured out in time,” says Ms. Mayer. “But in our world, time can make or break you. It’s scary. It’s your livelihood.”
This piece was reported by Patrik Jonsson in Savannah, Georgia; Nick Squires in Rome; Ryan Lenora Brown in Johannesburg; and Lenora Chu in Berlin. It was written by Mr. Trumbull.


csmonitor--2020-03-09--Like China, Italy now adopting sweeping month-long lockdown

Italy took a page from China ’ s playbook on Sunday , attempting to lock down 16 million people – more than a quarter of its population – for nearly a month to halt new coronavirus .
Weddings and museums , movie theaters and shopping malls are all affected by the new restrictions , which focus on a swath of northern Italy but are disrupting daily life around the country .
Confusion reigned after the quarantine was announced , with residents and tourists from Venice to Milan trying to figure out how and when the new measures would be put @ @ @ @ @ @ @ more than 7,300 infections , Italy now has registered more cases of the virus than any country but China , where the disease is in retreat .
The death toll in the country rose to 366 .
Around the globe , more and more events were canceled or hidden behind closed doors , from the pope ’ s Sunday service to a Formula One car race in Bahrain to a sumo competition in Japan , where wrestlers arrived at the arena were required to use hand sanitizer before entering .
In Saudi Arabia @ @ @ @ @ @ @ would be closed starting Monday , following the lead of other Gulf countries .
Questions grew about whether to maintain U.S. presidential campaign rallies and take steps in the U.S. to close off sporting events to the public .
Worldwide stock markets tumbled on Monday over economic concerns .
Japan 's Nikkei index closed down 5 percent .
The state oil giant Saudi Aramco led the financial losses , dropping by 10 % on Riyadh 's Tadawul stock exchange and forcing a halt to Aramco 's trading .
Tadawul remained open , but @ @ @ @ @ @ @ within 30 minutes of opening on Monday as stocks again dropped by 10 % , the third such emergency halt to trading in recent days .
The drop came as global oil prices suffered their worst losses since the start of the 1991 Gulf War .
OPEC failed to make a production cut deal with Russia Friday and Moscow threatened to boost crude output .
Earlier on Monday , coronavirus fears led Saudi Arabia to cut off air and sea travel with Bahrain , Egypt , Iraq , Italy , Kuwait , Lebanon @ @ @ @ @ @ @ the United Arab Emirates .
The kingdom had earlier closed off its land borders as well .
Italian Premier Giuseppe Conte signed a quarantine decree early Sunday for the country 's prosperous north .
Areas under lockdown include Milan , Italy 's financial hub , and the main city in Lombardy ; and Venice , the main city in the neighboring Veneto region .
The extraordinary measures will be in place until April 3 .
Tourists in the region , including those from abroad , were free to head home , the Italian @ @ @ @ @ @ @ and train stations remained open .
The pope , who has been reported to have cold , held his Sunday blessing by video instead of in person , even though he was not directly affected by the lockdown .
He described feeling like he was “ in a cage.
” It ’ s a feeling familiar in China , where the government locked down about 60 million people in central Hubei province in late January .
Six weeks later , they are still effectively stuck .
The World Health Organization has said China @ @ @ @ @ @ @ the world prepare , and WHO chief Tedros Adhanom Ghebreyesus tweeted his support Sunday for Italians and their “ bold , courageous steps aimed at slowing the speed of the coronavirus.
” China has suffered about three-fourths of the world 's 109,000 coronavirus infections and most of its 3,800 deaths .
New infections in China have leveled off , however , and most of those infected , in China and globally , have already recovered .
With a nose-dive in tourist traffic and major disruptions to supply chains worldwide , stocks struggled on @ @ @ @ @ @ @ to 10 % .
Italy is closing all museums and archaeological sites , even those far from the lockdown zone .
It suspended all weddings until April 3 .
The northern regions concerned by Sunday ’ s decree are closing cinemas and ski slopes .
Eateries all around Italy are expected , somehow , to keep patrons a meter away from each other .
The Vatican Museums are now closed , including the Sistine Chapel , in yet another blow to Italy ’ s all-important tourism industry .
Alitalia , the Italian airline @ @ @ @ @ @ @ all national and international flights from Milan ’ s Malpensa airport starting Monday .
Lombardy ’ s governor , who is in quarantine himself , sought to calm the public , discouraging hoarding and insisting “ we ’ re not going to war.
” Chaos erupted in the hours before Conte signed the decree , as word leaked about the planned quarantine .
Students at the University of Padua in northern Italy who had been out at bars on a Saturday night saw the reports on their phones and rushed back to the @ @ @ @ @ @ @ triggered a riot at a prison in Modena by inmates angered that their loved ones would not be able to visit , the Italian daily La Repubblica reported .
The inmates eventually surrendered .
In a reversal of the stereotypical north-south tensions in Italy , the governor of Puglia urged northerners to stay away .
“ Get off at the first railway station .
Don ’ t take planes , ” Gov .
Michele Emiliano said in his dramatic appeal .
“ Turn around in your cars , get off the pullman buses @ @ @ @ @ @ @ Luca Codazzi was set to come out of a two-week quarantine at midnight Sunday – but instead was facing new limits on his freedom .
The government decree “ was badly written , there are very many interpretations , ’ ’ he said .
“ In theory , the cordon should go down at midnight , ’ ’ Mr. Codazzi said .
He still does n't know whether his factory will be open on Monday .
Governments across Europe tightened their rules .
Bulgaria banned all indoor public events .
France ’ s @ @ @ @ @ @ @ emergency security meetings as the number of cases in each country surpassed 1,000 .
In waters around the world , the cruise ship industry was in disarray .
The Grand Princess cruise ship , where 21 people have tested positive for the virus , was heading Sunday to Oakland after idling off San Francisco for days .
It expects to land on Monday .
Americans will be transferred to facilities around the country for testing and isolation , but it 's not yet clear what will happen to passengers from many other countries @ @ @ @ @ @ @ dispatch a plane to pick up more than 200 citizens who are aboard .
Another cruise ship is in quarantine on the Nile in Egypt with 45 confirmed virus cases .
Two other ships with no confirmed cases were turned away this weekend from Malaysia and Malta amid virus fears .
Advice to the public continues to vary .
The U.S. Centers for Disease Control and Prevention urged older adults and people with severe medical conditions to `` stay home as much as possible '' and avoid crowds .
A federal official told @ @ @ @ @ @ @ had overruled health officials who wanted to recommend that elderly and sick Americans not fly on commercial airlines too .
A spokesman for U.S. Vice President Mike Pence denied that .
This story was reported by The Associated Press .
Angela Charlton reported from Paris .
AP writers Nicole Winfield and Trish Thomas in Rome , Aya Batrawy in Dubai , Ken Moritsugu in Beijing , Yuri Kageyama in Tokyo , Chris Blake in Bangkok , Adam Geller and Maria Sanminiatelli in New York , Hyung-jin Kim in Seoul , Ashok Sharma in @ @ @ @ @ @ @ , David Rising in Berlin , and Jonathan Poet in Philadelphia contributed to this report .

Italy took a page from China’s playbook on Sunday, attempting to lock down 16 million people – more than a quarter of its population – for nearly a month to halt new coronavirus.
Weddings and museums, movie theaters and shopping malls are all affected by the new restrictions, which focus on a swath of northern Italy but are disrupting daily life around the country. Confusion reigned after the quarantine was announced, with residents and tourists from Venice to Milan trying to figure out how and when the new measures would be put into practice.
Travelers crammed aboard standing-room-only trains.
After mass testing uncovered more than 7,300 infections, Italy now has registered more cases of the virus than any country but China, where the disease is in retreat. The death toll in the country rose to 366.
Around the globe, more and more events were canceled or hidden behind closed doors, from the pope’s Sunday service to a Formula One car race in Bahrain to a sumo competition in Japan, where wrestlers arrived at the arena were required to use hand sanitizer before entering. In Saudi Arabia, officials announced all schools and universities would be closed starting Monday, following the lead of other Gulf countries. Questions grew about whether to maintain U.S. presidential campaign rallies and take steps in the U.S. to close off sporting events to the public.
Worldwide stock markets tumbled on Monday over economic concerns. Japan's Nikkei index closed down 5 percent. The state oil giant Saudi Aramco led the financial losses, dropping by 10% on Riyadh's Tadawul stock exchange and forcing a halt to Aramco's trading. Tadawul remained open, but Boursa Kuwait's premier market shut down within 30 minutes of opening on Monday as stocks again dropped by 10%, the third such emergency halt to trading in recent days.
The drop came as global oil prices suffered their worst losses since the start of the 1991 Gulf War. OPEC failed to make a production cut deal with Russia Friday and Moscow threatened to boost crude output.
Earlier on Monday, coronavirus fears led Saudi Arabia to cut off air and sea travel with Bahrain, Egypt, Iraq, Italy, Kuwait, Lebanon, South Korea, Syria, and the United Arab Emirates. The kingdom had earlier closed off its land borders as well.
Italian Premier Giuseppe Conte signed a quarantine decree early Sunday for the country's prosperous north. Areas under lockdown include Milan, Italy's financial hub, and the main city in Lombardy; and Venice, the main city in the neighboring Veneto region. The extraordinary measures will be in place until April 3.
Tourists in the region, including those from abroad, were free to head home, the Italian transport ministry said, noting that airports and train stations remained open.
The pope, who has been reported to have cold, held his Sunday blessing by video instead of in person, even though he was not directly affected by the lockdown. He described feeling like he was “in a cage.”
It’s a feeling familiar in China, where the government locked down about 60 million people in central Hubei province in late January. Six weeks later, they are still effectively stuck.
The World Health Organization has said China’s move helped the rest of the world prepare, and WHO chief Tedros Adhanom Ghebreyesus tweeted his support Sunday for Italians and their “bold, courageous steps aimed at slowing the speed of the coronavirus.”
China has suffered about three-fourths of the world's 109,000 coronavirus infections and most of its 3,800 deaths. New infections in China have leveled off, however, and most of those infected, in China and globally, have already recovered.
With a nose-dive in tourist traffic and major disruptions to supply chains worldwide, stocks struggled on Sunday. Mideast indexes fell 4% to 10%.
Italy is closing all museums and archaeological sites, even those far from the lockdown zone. It suspended all weddings until April 3. The northern regions concerned by Sunday’s decree are closing cinemas and ski slopes.
Eateries all around Italy are expected, somehow, to keep patrons a meter away from each other.
The Vatican Museums are now closed, including the Sistine Chapel, in yet another blow to Italy’s all-important tourism industry. Alitalia, the Italian airline that was already financially ailing, suspended all national and international flights from Milan’s Malpensa airport starting Monday.
Lombardy’s governor, who is in quarantine himself, sought to calm the public, discouraging hoarding and insisting “we’re not going to war.”
Chaos erupted in the hours before Conte signed the decree, as word leaked about the planned quarantine.
Students at the University of Padua in northern Italy who had been out at bars on a Saturday night saw the reports on their phones and rushed back to the train station.
Tensions over the restrictions triggered a riot at a prison in Modena by inmates angered that their loved ones would not be able to visit, the Italian daily La Repubblica reported. The inmates eventually surrendered.
In a reversal of the stereotypical north-south tensions in Italy, the governor of Puglia urged northerners to stay away. “Get off at the first railway station. Don’t take planes,” Gov. Michele Emiliano said in his dramatic appeal. “Turn around in your cars, get off the pullman buses at the next stop.”
By Sunday afternoon, residents of northern Italy remained confused.
Factory worker Luca Codazzi was set to come out of a two-week quarantine at midnight Sunday – but instead was facing new limits on his freedom.
The government decree “was badly written, there are very many interpretations,’’ he said. “In theory, the cordon should go down at midnight,’’ Mr. Codazzi said. He still doesn't know whether his factory will be open on Monday.
Governments across Europe tightened their rules. Bulgaria banned all indoor public events. France’s president and Germany's governing parties held emergency security meetings as the number of cases in each country surpassed 1,000.
In waters around the world, the cruise ship industry was in disarray.
The Grand Princess cruise ship, where 21 people have tested positive for the virus, was heading Sunday to Oakland after idling off San Francisco for days. It expects to land on Monday. Americans will be transferred to facilities around the country for testing and isolation, but it's not yet clear what will happen to passengers from many other countries.
Canadian officials said Sunday they will dispatch a plane to pick up more than 200 citizens who are aboard.
Another cruise ship is in quarantine on the Nile in Egypt with 45 confirmed virus cases. Two other ships with no confirmed cases were turned away this weekend from Malaysia and Malta amid virus fears.
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Advice to the public continues to vary. The U.S. Centers for Disease Control and Prevention urged older adults and people with severe medical conditions to "stay home as much as possible" and avoid crowds. A federal official told The Associated Press that the White House had overruled health officials who wanted to recommend that elderly and sick Americans not fly on commercial airlines too. A spokesman for U.S. Vice President Mike Pence denied that.
This story was reported by The Associated Press. Angela Charlton reported from Paris. AP writers Nicole Winfield and Trish Thomas in Rome, Aya Batrawy in Dubai, Ken Moritsugu in Beijing, Yuri Kageyama in Tokyo, Chris Blake in Bangkok, Adam Geller and Maria Sanminiatelli in New York, Hyung-jin Kim in Seoul, Ashok Sharma in New Delhi, Anna Johnson in London, David Rising in Berlin, and Jonathan Poet in Philadelphia contributed to this report.


csmonitor--2020-03-09--Black Monday: Why global stocks and oil prices plunged

Global stock markets and oil prices plunged Monday after a fight among major crude-producing nations jolted investors who already were on edge about the surging costs of a virus outbreak .
The main stock indexes in Britain and Germany were down by almost 7 % .
Japan 's benchmark closed down 5.1 % while Australia 's lost 7.3 % and the Shanghai market in China was off 3 % .
Monday 's losses , including a 7.8 % tumble in the Dow Jones Industrial Average , raised fears that a recession might be on the way in the U.S. and @ @ @ @ @ @ @ Wall Street may be coming to an abrupt end in a way no one even imagined just a few months ago .
Bond yields hit new lows as investors bought them up as financial havens .
The benchmark U.S. crude price was down more than 20 % to their lowest levels since 2016 .
They were down as much as 30 % earlier , deepening a rout that began when Saudi Arabia , Russia , and other major producers failed to agree on cutting output to prop up prices .
A breakdown in @ @ @ @ @ @ @ output just as demand is sliding .
The disintegration of OPEC+ , made up of the Organization of the Petroleum Exporting Countries plus Russia and other several oil producers , ends more than three years of cooperation to support the market .
Saudi Arabia plans to boost its crude output above 10 million barrels per day ( bpd ) in April after the current deal to curb production expires at the end of March , two sources told Reuters on Sunday .
Analysts were divided over how long this brinksmanship between Russia and @ @ @ @ @ @ @ timing of this lower price environment should be limited to a few months unless this whole virus impact on global market and consumer confidence triggers the next recession , '' Keith Barnett , senior vice president for strategic analysis at ARM Energy in Houston told Reuters .
Investors usually welcome lower energy costs for businesses and consumers .
But it can also hurt producers , such as oil companies .
The last time crude prices fell this low , in 2015 , the U.S. saw a raft of bankruptcies by smaller energy companies @ @ @ @ @ @ @ reflected the anxieties of traders .
`` A blend of shocks have sent the markets into a frenzy on what may only be described as 'Black Monday , ' '' said Sebastien Clements , analyst at financial payments platform OFX .
`` A combination of a Russia vs. Saudi Arabia oil price war , a crash in equities , and escalations in coronavirus woes have created a killer cocktail to worsen last week 's hangover . ''
In Saudi Arabia , the Riyadh stock exchange suspended trading of state-owned oil giant Saudi Aramco @ @ @ @ @ @ @ daily 10 % limit at the opening .
Investors already were on edge about the mounting costs of the coronavirus outbreak that began in China and has disrupted world travel and trade .
Anxiety rose after Italy announced it was isolating cities and towns with some 16 million people , or more than one quarter of its population , in its industrial and financial heartland .
Later Monday , Italy extended the lockdown to the entire country .
In Europe , London 's FTSE 100 tumbled 6.5 % to 6,039 after opening down @ @ @ @ @ @ @ 's DAX shed 6.2 % to 10,825 and the CAC 40 in France lost 6.7 % to 4,797 .
Italy 's FTSE MIB plunged 9.8 % to 18,755 .
On Wall Street , trading in futures for the Dow Jones Industrial Average and the S & P 500 was frozen after both fell by more than 5 % , a daily limit .
The last time they were frozen was just after U.S. President Donald Trump was elected in 2016 .
Companies have been hit by travel and other controls that are spreading @ @ @ @ @ @ @ infections rose past 110,000 globally .
Tokyo 's Nikkei 225 fell to 19,698.76 Monday after the government reported the economy contracted 7 % in the October-December quarter , worse than the original estimate of a 6.3 % decline .
That was before the viral outbreak slammed tourism and travel but after a sales tax hike dented consumers ' appetite for spending .
Hong Kong 's Hang Seng sank 4.2 % to 25,047.42 .
The Shanghai Composite Index declined to 2,943.29 .
The S & P-ASX 200 in Sydney retreated to 5,760.60 Monday .
@ @ @ @ @ @ @ to 1,954.77 .
India 's Sensex retreated 6.2 % to 35,255.73 .
Markets in Taiwan , New Zealand , and Southeast Asia also declined .
Benchmark U.S. crude fell 21.9 % , or $ 9.03 , to $ 32.25 per barrel in electronic trading on the New York Mercantile Exchange .
Brent crude , the international standard , lost 20.7 % , or $ 9.32 , to $ 35.95 per barrel in London .
The International Energy Agency said in a report Monday that oil demand could fall this year for the first @ @ @ @ @ @ @ 2009 .
`` The oil price will stay low '' in the $ 30s per barrel , IEA chief Fatih Birol said .
The dollar sank to 102.41 yen from Friday 's 105.29 yen .
Investors in Asia often buy up the Japanese currency and bonds in times of volatility .
The euro advanced to $ 1.1408 from $ 1.1289 .
Chinese factories that make the world 's smartphones , toys , and other consumer goods are gradually reopening but are n't expected to return to normal production until at least April .
@ @ @ @ @ @ @ components and raw materials from China 's Asian neighbors .
Apple Inc. says slowdowns in manufacturing iPhones in China will hurt its sales totals .
An airline industry group says carriers could lose as much as $ 113 billion in potential ticket sales .
Adding to pessimism , China reported Saturday that its exports fell 17 % and imports were off 4 % from a year earlier in January and February after Beijing shut factories , offices , and shops in the most severe anti-disease measures ever imposed .
Central banks worldwide have @ @ @ @ @ @ @ that while that might help to encourage consumer and corporate spending , it can not reopen factories that are due to quarantines or a lack of workers and raw materials .
Investors are looking ahead to a meeting Thursday of the European Central Bank , which is widely expected to announce new stimulus measures .
Already last week , global stocks were sinking as the spread of the virus prompted governments to follow China 's lead by imposing travel controls and canceling public events .
“ The uncertain economic impact of coronavirus continues @ @ @ @ @ @ @ commodities and interest rates all dropping sharply .
Markets hate uncertainty and there is a ton of it currently in play , ” said Greg McBride , CFA , chief financial analyst at Bankrate.com .
“ The guidance for long-term investors remains intact – do not panic . ''
said Mr. McBride .
`` As the uncertainty persists , the market frenzy will continue , perhaps for weeks , perhaps for months .
But long-term investors must think in terms of years or decades.
” The U.S. Federal Reserve 's emergency 0.5 % @ @ @ @ @ @ @ to reverse the downturn and the yield on the 10-year Treasury , already at record lows , dipped under 0.40 % from 0.7 % late Friday .
The 30-year yield fell below 1 % for the first time ever .
The yield – the difference between a bond 's market price and what investors will receive if they hold it to maturity – is an indicator of the market 's outlook on the economy .
Rising market prices that cause the yield to narrow indicate investors are shifting money into bonds as a @ @ @ @ @ @ @ have risen , '' Moody 's Investors Service said in a report .
`` A sustained pullback in consumption , coupled with extended closures of businesses , would hurt earnings , drive layoffs , and weigh on sentiment . ''
This story was reported by The Associated Press .

Global stock markets and oil prices plunged Monday after a fight among major crude-producing nations jolted investors who already were on edge about the surging costs of a virus outbreak.
The main stock indexes in Britain and Germany were down by almost 7%. Japan's benchmark closed down 5.1% while Australia's lost 7.3% and the Shanghai market in China was off 3%.
Monday's losses, including a 7.8% tumble in the Dow Jones Industrial Average, raised fears that a recession might be on the way in the U.S. and that the record-breaking 11-year bull market on Wall Street may be coming to an abrupt end in a way no one even imagined just a few months ago.
Bond yields hit new lows as investors bought them up as financial havens.
The benchmark U.S. crude price was down more than 20% to their lowest levels since 2016. They were down as much as 30% earlier, deepening a rout that began when Saudi Arabia, Russia, and other major producers failed to agree on cutting output to prop up prices. A breakdown in their cooperation suggested they will ramp up output just as demand is sliding.
The disintegration of OPEC+, made up of the Organization of the Petroleum Exporting Countries plus Russia and other several oil producers, ends more than three years of cooperation to support the market.
Saudi Arabia plans to boost its crude output above 10 million barrels per day (bpd) in April after the current deal to curb production expires at the end of March, two sources told Reuters on Sunday.
Analysts were divided over how long this brinksmanship between Russia and Saudi Arabia could last.
"The timing of this lower price environment should be limited to a few months unless this whole virus impact on global market and consumer confidence triggers the next recession," Keith Barnett, senior vice president for strategic analysis at ARM Energy in Houston told Reuters.
Investors usually welcome lower energy costs for businesses and consumers. But it can also hurt producers, such as oil companies.
The last time crude prices fell this low, in 2015, the U.S. saw a raft of bankruptcies by smaller energy companies.
The abrupt plunge in markets Monday reflected the anxieties of traders. "A blend of shocks have sent the markets into a frenzy on what may only be described as 'Black Monday,'" said Sebastien Clements, analyst at financial payments platform OFX. "A combination of a Russia vs. Saudi Arabia oil price war, a crash in equities, and escalations in coronavirus woes have created a killer cocktail to worsen last week's hangover."
In Saudi Arabia, the Riyadh stock exchange suspended trading of state-owned oil giant Saudi Aramco after its share price sank by the daily 10% limit at the opening.
Investors already were on edge about the mounting costs of the coronavirus outbreak that began in China and has disrupted world travel and trade.
Anxiety rose after Italy announced it was isolating cities and towns with some 16 million people, or more than one quarter of its population, in its industrial and financial heartland. Later Monday, Italy extended the lockdown to the entire country.
In Europe, London's FTSE 100 tumbled 6.5% to 6,039 after opening down by more than 8%. Frankfurt's DAX shed 6.2% to 10,825 and the CAC 40 in France lost 6.7% to 4,797. Italy's FTSE MIB plunged 9.8% to 18,755.
On Wall Street, trading in futures for the Dow Jones Industrial Average and the S&P 500 was frozen after both fell by more than 5%, a daily limit. The last time they were frozen was just after U.S. President Donald Trump was elected in 2016.
Companies have been hit by travel and other controls that are spreading worldwide as the global number of coronavirus infections rose past 110,000 globally.
Tokyo's Nikkei 225 fell to 19,698.76 Monday after the government reported the economy contracted 7% in the October-December quarter, worse than the original estimate of a 6.3% decline. That was before the viral outbreak slammed tourism and travel but after a sales tax hike dented consumers' appetite for spending.
Hong Kong's Hang Seng sank 4.2% to 25,047.42. The Shanghai Composite Index declined to 2,943.29.
The S&P-ASX 200 in Sydney retreated to 5,760.60 Monday. The Kospi in Seoul lost 4.2% to 1,954.77.
India's Sensex retreated 6.2% to 35,255.73. Markets in Taiwan, New Zealand, and Southeast Asia also declined.
Benchmark U.S. crude fell 21.9%, or $9.03, to $32.25 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, lost 20.7%, or $9.32, to $35.95 per barrel in London.
The International Energy Agency said in a report Monday that oil demand could fall this year for the first time since the global financial crisis in 2009.
"The oil price will stay low" in the $30s per barrel, IEA chief Fatih Birol said.
The dollar sank to 102.41 yen from Friday's 105.29 yen. Investors in Asia often buy up the Japanese currency and bonds in times of volatility. The euro advanced to $1.1408 from $1.1289.
Chinese factories that make the world's smartphones, toys, and other consumer goods are gradually reopening but aren't expected to return to normal production until at least April. That weighs on demand for imports of components and raw materials from China's Asian neighbors.
Apple Inc. says slowdowns in manufacturing iPhones in China will hurt its sales totals. An airline industry group says carriers could lose as much as $113 billion in potential ticket sales.
Adding to pessimism, China reported Saturday that its exports fell 17% and imports were off 4% from a year earlier in January and February after Beijing shut factories, offices, and shops in the most severe anti-disease measures ever imposed.
Central banks worldwide have cut interest rates. But economists warn that while that might help to encourage consumer and corporate spending, it cannot reopen factories that are due to quarantines or a lack of workers and raw materials.
Investors are looking ahead to a meeting Thursday of the European Central Bank, which is widely expected to announce new stimulus measures.
Already last week, global stocks were sinking as the spread of the virus prompted governments to follow China's lead by imposing travel controls and canceling public events.
“The uncertain economic impact of coronavirus continues to grip markets, with stocks, commodities and interest rates all dropping sharply. Markets hate uncertainty and there is a ton of it currently in play,” said Greg McBride, CFA, chief financial analyst at Bankrate.com.
“The guidance for long-term investors remains intact – do not panic." said Mr. McBride. "As the uncertainty persists, the market frenzy will continue, perhaps for weeks, perhaps for months. But long-term investors must think in terms of years or decades.”
The U.S. Federal Reserve's emergency 0.5% cut in its key lending rate failed to reverse the downturn and the yield on the 10-year Treasury, already at record lows, dipped under 0.40% from 0.7% late Friday. The 30-year yield fell below 1% for the first time ever.
The yield – the difference between a bond's market price and what investors will receive if they hold it to maturity – is an indicator of the market's outlook on the economy. Rising market prices that cause the yield to narrow indicate investors are shifting money into bonds as a safe haven.
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"Global recession risks have risen," Moody's Investors Service said in a report. "A sustained pullback in consumption, coupled with extended closures of businesses, would hurt earnings, drive layoffs, and weigh on sentiment."
This story was reported by The Associated Press.


csmonitor--2020-05-15--Tired of Netflix? Museums and theaters bring the arts home.

“ The terrific thing about digital is that it can be iterative , ” says Douglas Hegley , Mia ’ s chief digital officer .
“ You can keep ... trying out new kinds of content , new kinds of experiences , seeing how the audience responds and then pivoting as necessary .
To me , that ’ s really exciting.
” For many outlets , it ’ s a time to experiment .
The Minneapolis Institute of Art , also known as Mia , moved its digital offerings to a special landing page on its website .
It has @ @ @ @ @ @ @ social media engagement , especially on Instagram , since closing in mid-March .
Coolidge Corner Theatre in Brookline , Massachusetts , moved its long-running series of movie seminars online , where dozens more aficionados are now participating .
And in Houston , the Alley Theatre shared a video of a play , “ 1984 , ” with ticket holders for the first time .
When in-person entertainment shut down due to the pandemic , the art world moved quickly to offer online concerts , streaming plays , and virtual galleries .
Even as @ @ @ @ @ @ @ organizations , some observers say that investing in digital strategies now could actually lead to improved accessibility and expanded audiences .
Instead of attending her typical Saturday morning drawing class , Nora Paul is sitting in her apartment , stabbing tiny pieces of wool into something resembling Vincent van Gogh ’ s “ Olive Trees.
” The inspiration for this needle-felting project came from the Minneapolis Institute of Art , which features the 1889 painting prominently in its digital gallery .
Since the museum , known as “ Mia , ” closed its @ @ @ @ @ @ @ the coronavirus , it has encouraged patrons to find its art online .
Ms. Paul , a retired college professor and longtime Mia fan , complied .
Editor ’ s note : As a public service , all our coronavirus coverage is free .
No paywall .
People around the world have been searching for enriching and entertaining experiences they can access from home .
The arts world delivered , with online concerts , streaming plays , and virtual galleries .
And even as prolonged shutdowns create a revenue crisis for theaters and @ @ @ @ @ @ @ in digital strategies now could actually make these institutions stronger .
Jonathan T.D .
Neil , director of the Center for Business & Management of the Arts at Claremont Graduate University in California , refers to this trend as “ arts media.
” He says that when organizations such as museums , symphonies , and theaters use digital tools to record and distribute content online , they begin to act like media companies .
During this time when arts groups must forgo the live experience , developing a strong digital presence can help @ @ @ @ @ @ @ improve accessibility , and expand their audience – even in a global pandemic .
“ It ’ s a great way of maintaining relationships with their community , ” says Mr. Neil .
“ It maintains the audience ’ s interest so that as soon as this thing passes , which it will , they will of course come streaming back , perhaps with new interest and new engagement.
” Along with museums , live music and theater venues have also been answering the call for online entertainment .
Streaming services such as @ @ @ @ @ @ @ plays and musicals to home audiences , and The Metropolitan Opera has 14 years of its “ Live in HD ” series , archived , to lean on during this pandemic .
Still , the nationwide shutdown has left some artists and organizations scrambling .
That ’ s not the case for Mia .
“ We ’ ve been thinking about this for a while , ” says Douglas Hegley , the museum ’ s chief digital officer .
When Mia closed its doors on March 13 , curators knew they had years @ @ @ @ @ @ @ promote during the shutdown .
All their digital offerings , from “ The Object ” podcast to virtual-gallery scavenger hunts , were moved to a fresh landing page where anyone with an internet connection could explore .
Since the closure , the museum has seen a surge in podcast listeners and social media engagement , especially on Instagram .
From her Minneapolis apartment , Ms. Paul has been browsing the museum ’ s website and creating art based on her discoveries .
While she misses the traveling exhibits and annual flower show ( @ @ @ @ @ @ @ has tried approaching the homepage with an open mind , letting trails of hyperlinks lead her to unexpected masterpieces .
“ I ’ ve always been a fan of serendipity , ” she says .
“ That ’ s what ’ s always so satisfying about being in a physical space – you never know , turning the corner , what new riches are going to be in that room.
” Other art museums have also been investing in their digital strategy .
The Los Angeles County Museum of Art has won a @ @ @ @ @ @ @ and the Dalí Museum in St. Petersburg , Florida , has a mobile app with augmented reality and themed tours .
Google Arts & Culture Lab partners with museums around the world to capture artworks using its high-resolution art camera , creating a massive database of virtually accessible art .
When Mr. Hegley started working at Mia in 2011 , he says museums were far less visible online .
“ The digital folks would sort of be thought of as an afterthought , not central to the museum ’ s mission .
That @ @ @ @ @ @ @ .
“ They understand that sharing digital content actually encourages visits .
It piques curiosity .
It makes people want to see the real thing.
” The show must go online Like many nonprofit art-house cinemas across the United States , Coolidge Corner Theatre in Brookline , Massachusetts , aims to build community through film culture .
To continue that mission in lockdown , it has been forced to innovate .
Within days of dimming its projectors on March 13 , the theater transformed its website into a streaming hub for first-run independent @ @ @ @ @ @ @ Staff members are making videos recounting formative filmgoing experiences and offering personalized movie suggestions based on patrons ’ tastes .
The theater ’ s long-running series of movie seminars , which were always capped at 45 attendees , have also moved online .
“ The first thing we offered was ‘ Rear Window , ’ since we thought people would relate to that , ” says Katherine Tallman , the theater ’ s executive director and CEO , referring to the Alfred Hitchcock film .
“ We had well over 200 people .
@ @ @ @ @ @ @ had somebody call in from Peru !
” Ms. Tallman hopes to reopen the cinema when it becomes safe to do so because it still makes more money from physical screenings than online streaming .
But its new , community-oriented online component is here to stay .
Still , other organizations face significant barriers when it comes to embracing “ arts media.
” In Houston , the Alley Theatre ’ s production of “ 1984 , ” based on the George Orwell novel , had a promising preview run .
When the mayor @ @ @ @ @ @ @ night in March , Artistic Director Bob Melrose knew the theater had to act quickly to salvage the work of the cast and crew .
Staff jumped into negotiations with multiple unions , earning a concession to rules prohibiting the recording of live performances .
Mr. Melrose would be allowed to film a run-through of “ 1984 ” and distribute the link to ticket holders .
The Alley , he says , had never done anything like this , and he hopes the precedent will help ease burdens that theaters face year-round .
@ @ @ @ @ @ @ to protect actors from nonconsensual broadcasts of their work .
But they also leave American theaters at a disadvantage in international festival circuits , where foreign companies have high-quality recordings of their best shows .
Successful exceptions in the coming months might help pave the way for greater flexibility , says Mr. Melrose .
“ Once all these theaters get through this dark time , [ they ] are going to need help , ” he says .
“ Maybe unions will say , well , if this is something that will help @ @ @ @ @ @ @ , maybe this is a good new tool.
” Mr. Neil and Mr. Hegley agree that if arts institutions can use the coming months to experiment with digital content and hone their production skills , it could help them bounce back after the dramatic loss of revenue .
“ The terrific thing about digital is that it can be iterative , ” says Mr. Hegley .
“ You can keep ... trying out new kinds of content , new kinds of experiences , seeing how the audience responds and then pivoting as necessary @ @ @ @ @ @ @ really exciting.
” Editor ’ s note : As a public service , all our coronavirus coverage is free .
No paywall .

How can arts organizations, known for in-person experiences, engage audiences entirely online? As groups figure out next steps amid pandemic closures, some are finding creative ways to embrace fans and newcomers alike.
“The terrific thing about digital is that it can be iterative,” says Douglas Hegley, Mia’s chief digital officer. “You can keep ... trying out new kinds of content, new kinds of experiences, seeing how the audience responds and then pivoting as necessary. To me, that’s really exciting.”
For many outlets, it’s a time to experiment. The Minneapolis Institute of Art, also known as Mia, moved its digital offerings to a special landing page on its website. It has seen a surge in podcast listeners and social media engagement, especially on Instagram, since closing in mid-March. Coolidge Corner Theatre in Brookline, Massachusetts, moved its long-running series of movie seminars online, where dozens more aficionados are now participating. And in Houston, the Alley Theatre shared a video of a play, “1984,” with ticket holders for the first time.
When in-person entertainment shut down due to the pandemic, the art world moved quickly to offer online concerts, streaming plays, and virtual galleries. Even as prolonged closures create a revenue crisis for organizations, some observers say that investing in digital strategies now could actually lead to improved accessibility and expanded audiences.
Instead of attending her typical Saturday morning drawing class, Nora Paul is sitting in her apartment, stabbing tiny pieces of wool into something resembling Vincent van Gogh’s “Olive Trees.”
“It’s oddly satisfying,” she says.
The inspiration for this needle-felting project came from the Minneapolis Institute of Art, which features the 1889 painting prominently in its digital gallery. Since the museum, known as “Mia,” closed its doors to help slow the spread of the coronavirus, it has encouraged patrons to find its art online. Ms. Paul, a retired college professor and longtime Mia fan, complied.
Why We Wrote This How can arts organizations, known for in-person experiences, engage audiences entirely online? As groups figure out next steps amid pandemic closures, some are finding creative ways to embrace fans and newcomers alike.
Editor’s note: As a public service, all our coronavirus coverage is free. No paywall.
People around the world have been searching for enriching and entertaining experiences they can access from home. The arts world delivered, with online concerts, streaming plays, and virtual galleries. And even as prolonged shutdowns create a revenue crisis for theaters and playhouses, some observers say that investing in digital strategies now could actually make these institutions stronger.
Jonathan T.D. Neil, director of the Center for Business & Management of the Arts at Claremont Graduate University in California, refers to this trend as “arts media.” He says that when organizations such as museums, symphonies, and theaters use digital tools to record and distribute content online, they begin to act like media companies. During this time when arts groups must forgo the live experience, developing a strong digital presence can help arts institutions punch above their weight, improve accessibility, and expand their audience – even in a global pandemic.
“It’s a great way of maintaining relationships with their community,” says Mr. Neil. “It maintains the audience’s interest so that as soon as this thing passes, which it will, they will of course come streaming back, perhaps with new interest and new engagement.”
Along with museums, live music and theater venues have also been answering the call for online entertainment. Streaming services such as BroadwayHD have brought several seasons of all-star plays and musicals to home audiences, and The Metropolitan Opera has 14 years of its “Live in HD” series, archived, to lean on during this pandemic. Still, the nationwide shutdown has left some artists and organizations scrambling.
That’s not the case for Mia.
Emma Freeman/Courtesy of Minneapolis Institute of Art View caption Hide caption Visitors pause by a painting of the Rialto Bridge in Venice by Italian artist Michele Giovanni Marieschi at the Minneapolis Institute of Art in 2017. Mia is currently closed due to the coronavirus shutdowns, but patrons can explore galleries online.
“We’ve been thinking about this for a while,” says Douglas Hegley, the museum’s chief digital officer. When Mia closed its doors on March 13, curators knew they had years’ worth of online content they could promote during the shutdown.
All their digital offerings, from “The Object” podcast to virtual-gallery scavenger hunts, were moved to a fresh landing page where anyone with an internet connection could explore. Since the closure, the museum has seen a surge in podcast listeners and social media engagement, especially on Instagram.
From her Minneapolis apartment, Ms. Paul has been browsing the museum’s website and creating art based on her discoveries. While she misses the traveling exhibits and annual flower show (and her drawing class), she has tried approaching the homepage with an open mind, letting trails of hyperlinks lead her to unexpected masterpieces. “I’ve always been a fan of serendipity,” she says. “That’s what’s always so satisfying about being in a physical space – you never know, turning the corner, what new riches are going to be in that room.”
No longer an afterthought
Other art museums have also been investing in their digital strategy. The Los Angeles County Museum of Art has won a Webby Award for its Snapchat presence, and the Dalí Museum in St. Petersburg, Florida, has a mobile app with augmented reality and themed tours. Google Arts & Culture Lab partners with museums around the world to capture artworks using its high-resolution art camera, creating a massive database of virtually accessible art.
When Mr. Hegley started working at Mia in 2011, he says museums were far less visible online. “The digital folks would sort of be thought of as an afterthought, not central to the museum’s mission. That’s changed,” he says. “They understand that sharing digital content actually encourages visits. It piques curiosity. It makes people want to see the real thing.”
The show must go online
Like many nonprofit art-house cinemas across the United States, Coolidge Corner Theatre in Brookline, Massachusetts, aims to build community through film culture. To continue that mission in lockdown, it has been forced to innovate.
Within days of dimming its projectors on March 13, the theater transformed its website into a streaming hub for first-run independent films and launched several community-engagement initiatives. Staff members are making videos recounting formative filmgoing experiences and offering personalized movie suggestions based on patrons’ tastes. The theater’s long-running series of movie seminars, which were always capped at 45 attendees, have also moved online.
Ann Hermes/Staff/File View caption Hide caption Movie projectionist Nick Lazzaro makes adjustments to the focus and alignment at a midnight screening at the Coolidge Corner Theatre in 2012, in Brookline, Massachusetts. Temporarily closed, the theater has found its online film seminars are proving popular.
“The first thing we offered was ‘Rear Window,’ since we thought people would relate to that,” says Katherine Tallman, the theater’s executive director and CEO, referring to the Alfred Hitchcock film. “We had well over 200 people. ... That first seminar, we actually had somebody call in from Peru!”
Ms. Tallman hopes to reopen the cinema when it becomes safe to do so because it still makes more money from physical screenings than online streaming. But its new, community-oriented online component is here to stay.
Still, other organizations face significant barriers when it comes to embracing “arts media.”
In Houston, the Alley Theatre’s production of “1984,” based on the George Orwell novel, had a promising preview run. When the mayor banned large gatherings just days after opening night in March, Artistic Director Bob Melrose knew the theater had to act quickly to salvage the work of the cast and crew. Staff jumped into negotiations with multiple unions, earning a concession to rules prohibiting the recording of live performances. Mr. Melrose would be allowed to film a run-through of “1984” and distribute the link to ticket holders.
The Alley, he says, had never done anything like this, and he hopes the precedent will help ease burdens that theaters face year-round.
Strict rules against filming performances were designed to protect actors from nonconsensual broadcasts of their work. But they also leave American theaters at a disadvantage in international festival circuits, where foreign companies have high-quality recordings of their best shows. Successful exceptions in the coming months might help pave the way for greater flexibility, says Mr. Melrose.
“Once all these theaters get through this dark time, [they] are going to need help,” he says. “Maybe unions will say, well, if this is something that will help you guys get back on your feet, maybe this is a good new tool.”
Mr. Neil and Mr. Hegley agree that if arts institutions can use the coming months to experiment with digital content and hone their production skills, it could help them bounce back after the dramatic loss of revenue.
“The terrific thing about digital is that it can be iterative,” says Mr. Hegley. “You can keep ... trying out new kinds of content, new kinds of experiences, seeing how the audience responds and then pivoting as necessary. To me, that’s really exciting.”
Get stories that
empower and uplift daily. By signing up, you agree to our Privacy Policy Already a subscriber? Log in to hide ads.
Staff writer Stephen Humphries contributed to this report.
Editor’s note: As a public service, all our coronavirus coverage is free. No paywall.