fortune--2020-03-17--IRS defers 2020 tax payments by 90 days due to coronavirus

Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.
The IRS hasn’t yet extended the deadline to file your taxes, but you do have a lot more time to pay them.
Treasury Secretary Steven Mnuchin, speaking at a coronavirus news conference Tuesday, said the government is deferring $300 billion in IRS payments by 90 days, penalty-free.
“If you owe a payment to the IRS, you can defer up to $1 million as an individual,” Mnuchin said. Businesses can defer up to $10 million in payments.
Officials are still urging people to file by April 15, especially if they are expecting a refund. In the same press conference, Mnuchin said the Trump administration wants to get cash payouts to Americans unrelated to taxes within the next two weeks.
The move comes as the COVID-19 coronavirus pandemic continues to spread and government officials urge people to practice social isolation. It’s also a move meant to protect IRS employees, as the Centers for Disease Control and Prevention has advised against gatherings of groups of 50 or more.
The call to extend the tax deadline started early in the coronavirus outbreak. In an Oval Office address to the nation on March 11, President Donald Trump said he had asked the Treasury department to extend the filing season deadline, but no additional information had been made available since that time.
Tax professionals have also been critical of the IRS’s delay in announcing a date.
“The AICPA appreciates the efforts being made by the Treasury Department and IRS to provide relief to the taxpaying public,” said Edward Karl, vice president of tax policy and advocacy at the American Institute of CPAs in a March 13 statement. “However, in light of the uncertainty and challenges caused by the spread of the Coronavirus pandemic, we are disappointed that the Treasury Department and IRS have yet to make an announcement on how relief would help millions of individuals and businesses, and to the CPAs who advise them.”
The IRS is already processing some tax returns. Tax season officially began Jan. 27.
More must-read stories from Fortune:
—What is a recession? All of your questions, answered
—How to prepare your personal finances for a coronavirus recession
—Why the world’s stock markets kept going quiet last week
—The Fed made a bold move to calm shaky markets. But is it enough?
—Why return CEOs are usually bad news for a company’s stock
—Dormant PayPal Credit accounts are coming back to hurt credit scores
Subscribe to Fortune’s Bull Sheet for no-nonsense finance news and analysis daily.


fortune--2020-03-17--The Coronavirus Economy: How my job in catering has changed

How much will coronavirus hurt the economy ?
These new estimates are terrifying

Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.
Ian Stack recently found that his formidable interpersonal skills are obsolete in a COVID-19 economy.
The 27-year-old New Yorker, who lives in Astoria with his boyfriend and their new puppy, is an aspiring actor who was working at an event and production design company while also serving as a caterer from time to time. But nearly all that work has screeched to a halt, as events across New York City are canceled and theaters shut down, all necessary actions by private businesses to help reduce the spread of the virus that causes COVID-19.
Ian Stack is an aspiring actor who works at an event and production design company as a caterer. Courtesy of Ian Stack
In the U.S., caterers generate $11.7 billion in revenue annually, while party and event planners pull in $5.4 billion, according to estimates by research firm IBISWorld. Their entire business model is built around hosting events for large groups of people. But with city and governments now strongly encouraging—or even mandating—social distancing measures, caterers and party planners are taking a huge financial hit in an economy that some financial experts are already projecting will slide into a recession this year.
Fortune spoke with Stack for a new series, The Coronavirus Economy, to ask about how COVID-19 has affected his employment status, his plans for the future, and to get a sense of how he was handling this news, both emotionally and financially. The following Q&A has been condensed and lightly edited.
Fortune: Can you tell me what you do in the city for work?
Stack: I moved to the city to pursue acting and started out doing restaurant work. But a few friends recommended catering, so I stopped working at a restaurant and applied to seven catering companies at once. They all hired me, and from that work I would cobble together a full work load.
In this past year, I joined a production design company doing the planning, the production, and the design. My work for them would range from three days to five days.
When did the news events surrounding COVID-19 start to impact your work?
I would say about two to three weeks ago. March and April are when everyone starts having spring galas, bar mitzvahs, spring cocktail parties—you name it. And I was like, “These aren’t coming in.” Events were being canceled. And at my production design company, brands we were coordinating with were asking about news of coronavirus. And within days, the biggest project that we were working on this year was canceled.
It sounds like it went from a lot of uncertainty to pretty fast people pulling the plug.
I have another friend who works in production design, and we had some friends over last Friday for RuPaul’s Drag Race. He said that they lost $800,000 of events within one hour. From Friday to Tuesday morning, we had seven events canceled.
I thought that it was a big hit but that my role might switch from planning to debriefing. And we talked a lot about our company transitioning to see what we can do about events like mailers to editors and influencers. Those were extra projects we did simultaneously with events.
But by Thursday, we were told the company was working from home for the foreseeable future. We had individual meetings, and the first thing my boss said was, “This is going to suck.” I loved working for that company, but the reason I was brought on was gone, and that income flow wasn’t there. So they couldn’t afford to keep me on.
What adjustments have you made so you can generate income? What does that look like?
When I started noticing that no one in catering was getting work, I was thinking, “Okay, I have my production design company, and let’s say they keep me for three days a week, for eight hours a day. That’s something but not enough.” So I started thinking about something that would be easy to jump in, and that’s bar and restaurant work.
A friend told me he was opening a new bar, and I reached out the second our major event was canceled. I went in to see him later that day, and he offered me a job on the spot. The bar was having training on Thursday and Friday this past week, and I couldn’t make it because of my event planning job. But I got let go on 11 a.m. on Thursday and texted my friend, “Just kidding. I can come into training.” I went to the training and then [on Saturday], he sent out a message they were postponing the opening for two weeks.
My other options have been stockroom jobs at fashion stores or temp agencies that are looking for people. I’ll be updating my résumé later this day and looking into those.
How are you handling this personally?
Each day of last week it felt like I was getting punched and then immediately getting up and trying to walk forward. But starting this Friday evening, I felt those punches and felt physically exhausted. I feel a different level of mental, physical, and emotional exhaustion that I haven’t ever experienced. I’m trying to be positive, but it doesn’t alleviate all the problems that have come up.
What actions can be taken by employers and the government to help people like yourself and provide a floor of support?
It is difficult because in terms of health care, there have been measures taken by some companies that allow you to accrue sick hours. But those hours can’t apply if there is no work to call in sick to. And there’s no way to have an aggregate amount of work with a variety of companies to get health care. You need to work with one company to qualify for that health plan. It is almost necessary for cater waiters and the service industry to have a union where you can work for multiple companies, and at the same time, that union would provide the health care. It feels like a random idea, but beyond this crisis, there are no rules to a lot of gig-economy jobs.
Thankfully, I have a support system—my parents have offered to help should I really need it. I have support structures, including from David [Stack’s boyfriend], who is thankfully able to teach from home. But there are people who are in my catering shoes who are completely out in the cold. They only have unemployment, and it is tough to get the maximum when you have flexible income from so many different places.
More coronavirus coverage from Fortune:
—How to get a refund on your Broadway tickets after coronavirus shut down
—The oil sector takes its next hit: Coronavirus on offshore rigs
—Some of the most extreme ways companies are combating coronavirus
—How luxury designers in Italy’s fashion heartland are facing coronavirus
—Amazon tells employees to work from home if they can. Warehouse workers can’t
—Why Dollar General thinks coronavirus can help business
—Coronavirus may not be all bad for tech. Consider the “stay at home” stocks
Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.


fortune--2020-03-17--Where the green beer and good times usually flow, there’s only worry on this St. Patrick’s Day

Stay in the know on how the coronavirus outbreak is impacting the global business economy with our new daily newsletter Outbreak.
Today should be a big day, a raucous green-beer-filled good time after a big weekend of much the same. the same. For many bars, restaurants, and liquor stores, including 2Bears Tavern Group, which owns three bars on Chicago’s North Side, the combined St. Patrick’s Day and St. Patrick’s Day weekend is traditionally one of its top five weekends for sales all year.
But this year: the coronavirus pandemic.
Even after concerns about sizeable crowds and COVID-19 canceled the famous green dyeing of the Chicago River, the city’s bars were still hoping for decent revenue from locals and visitors alike.
Mark Robertson and Mike Sullivan, co-owners of 2Bears, decided beforehand that they would go beyond Illinois’ rapidly changing recommendations of a cap of 1,000 people, reducing capacity in their largest bar—which normally holds 400 people—to 250. But then Illinois Governor J.B. Pritzker ordered that bars close and restaurants serve takeout and delivery only. The owners complied, committing to paying employees $15 an hour for an average work weeks’ of time through April 12, which Robertson said will be less than the standard bartender made with tips, but more than they would collect on unemployment. Independent contractors like the DJs and drag queens who perform at the bars are not covered, which Robertson regrets but simply cannot bankroll. And he’s concerned about what happens after March 30 if the state or federal government doesn’t pass legislation to provide relief to tavern owners and other in the hospitality industry.
2Bears Tavern Group’s sales were down about 30% as compared with previous years this weekend, which, considering the fact that changes related to outbreak crisis control came out faster than a round of St. Paddy’s Day shots, is not as big of a dip as it might have been. Without that weekend, Robertson said, it would have difficult for the company to have the funds to pay the staff through the end of the month.
Sure, Chicago is a town that loves St. Patrick’s Day a little more than most. But it is hardly the only city where barkeeps were banking on the March holiday to make bank, and, instead, are left wondering what they’ll do now. Many other municipalities, including Nashville and Anchorage, plus states ranging from Massachusetts and Pennsylvania to California to Louisiana, have shuttered bars and eliminated in-house dining for restaurants. Texas Governor Greg Abbott is the rare outlier who took the opposite tactic, and made a statement about keeping restaurants and bars open.
Officials are showing they mean business. In New York State, bars and restaurants that didn’t comply with earlier reduced occupancy laws were threatened with loss of liquor licenses. Closures and rule changes are in constant flux, with the public and business owners responding in a variety of ways.
National and state legislation, such as the Families First Coronavirus Response Act, provides federal support to allow employers to offer paid leave to employees. But requiring small businesses to pay for such aid and then get payroll tax credits or other legislation-driven low-interest loans are not going to be sufficient, bar owners say. Many adding that they won’t be around to apply for and pay back low-interest loans if something more substantial isn’t done.
In Tennessee there’s a push to #RelaxtheTax, which asks the state to immediately suspend all tax collection for hospitality-related businesses (the taxes are due March 20th).
Shutting it down
In Nashville, another city known for its ability to throw a great party, Mayor John Cooper asked the Metro Board of Health to approve his decision to close Music City’s bars. But, before he did that, Saturday evening looked like a regular night on the town, with nose-to-shoulder crowds doing everything but practicing social distancing. On Sunday, the scene was met with the wrath of Twitter users’ indignation.
Initially, Steve Smith, the outspoken owner of the world-famous Tootsie’s Orchid Lounge, Honky Tonk Central, and Kid Rock’s Honky Tonk, refused to close his high-profile establishments. In a statement on Sunday he said, “unless there’s a statewide mandate that directs all bars and restaurants to be closed, the request made by Mayor Cooper is unconstitutional as he is targeting a select group of businesses.” By Monday, however, the establishments closed, and he released a statement indicating compliance: “We hope to continue working with local officials to minimize the hardship this puts on our over 800 staff members and 300-plus musicians.”
While Robertson of 2Bears and others hope that having mandated shutdowns, as opposed to voluntary closures, will increase the possibility of filing for business interruption insurance claims, he said more has to be done on the governmental level to stem the job losses in bars across the country.
By Monday several states, including New York, Illinois, and Georgia had passed laws to allow delivery of alcohol with varying restrictions (in New York, for example, it is allowed with a restaurant’s takeout order). Some bars were looking into adding takeout and delivery as a way to generate limited revenue and keep some employees on a payroll.
And the Ohio Department of Commerce, Division of Liquor Control decided to run a very holiday-specific program: the state is buying back unopened high-proof booze purchased for St. Patrick’s Day or other events between March 12 and April 6, so that bars aren’t stuck with a pricy inventory. The deal extends to restaurants and those who were granted special event permits.
But those fixes are Band-Aids, not the tourniquet needed to keep bars and restaurants in business. “There are industries where you can work remotely, this is not one of them,” said James Bateman, general manager of Gadabout, a restaurant and bar that has been open on Chicago’s North Side for less than six months. “Obviously, coronavirus is terrifying. But this is a huge hit to the local economy. With this many people losing jobs we need the government to recognize that they need to do something.”
Possibilities for relief include a moratorium on sales, unemployment, and liquor tax filings, as well as direct cash support to businesses that are not putting their staff on unemployment, suggested Robertson. When thinking about job losses, bankruptcies, businesses closing and not re-opening, he added, the long-term impact “is going to go well, well beyond what you are seeing from people being sick from the virus.”
Clarification: An earlier version of this article misstated how long the owners of 2Bears will continue to pay employees.
More coronavirus coverage from Fortune:
—How to prepare your personal finances for a coronavirus recession
—The coronavirus could upend America’s business relationships to China
—The best Twitters to follow for reliable information on the coronavirus outbreak
—3 months before the coronavirus, a war game showed we weren’t ready
—How mainland China’s closest neighbors have kept coronavirus cases so low
—Couples are scrambling to prepare last-minute wedding alternatives
—SARS taught Taiwan how to contain the coronavirus outbreak
—How A.I. is aiding the coronavirus fight
Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.


fortune--2020-03-17--Trump administration says it wants to get cash to Americans ‘immediately’

Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.
Americans could see some financial help from the government in the next few weeks.
Treasury Secretary Steven Mnuchin, speaking Tuesday at a White House coronavirus update, said the Trump administration wants to get emergency funds to citizens as soon as possible.
“Americans need cash now,” said Mnuchin. “I mean now—in the next two weeks.”
The details of the payout are still being worked out. Mnuchin said the administration is currently discussing details with senators. PBS reported the White House is pushing for $1,000 per person.
The news of payouts comes as stocks continue to fluctuate wildly. The Dow Jones Industrial Average surged on news of the possible payouts.
Health and government officials have urged consumers to stay home, and avoid gathering in groups of more than 10. That advice could slow the spread of the virus, but it’s devastating for businesses, many of which have had to close temporarily or lay off workers.
The payout could help those people (and members of the gig economy) for whom cashflow is fast becoming an issue.
To date, there are 3,536 confirmed cases of COVID-19 coronavirus in the United States, according to the World Health Organization.
More must-read stories from Fortune:
—How to prepare your personal finances for a coronavirus recession
—Why the world’s stock markets kept going quiet last week
—The Fed made a bold move to calm shaky markets. But is it enough?
—Why return CEOs are usually bad news for a company’s stock
—Dormant PayPal Credit accounts are coming back to hurt credit scores
Subscribe to Fortune’s Bull Sheet for no-nonsense finance news and analysis daily.


fortune--2020-03-17--The user experience of ‘teleworking’ evolves with the times

This is the web version of Business x Design, a newsletter on the power of design. Sign up here to get it in your inbox.
As the coronavirus goes global, companies that once expected employees to endure punishing commutes and jet around the world are telling workers to stay home.
Big employers from Google to Amazon to Goldman Sachs have announced work-from-home policies; in Japan, where face-to-face meetings are deeply embedded into corporate culture, companies like NTT Group, SoftBank, and MUFG Bank have introduced new policies for “telework.” (So has Fortune.) Meanwhile, cancelled or rescheduled global conferences include the Mobile World Congress, the Adobe Summit, Facebook’s F8, Google Cloud Next, Microsoft’s MVP Summit, IBM’s Think, South by Southwest, and (alas!) Fortune’s Brainstorm Design.
This feels like a lasting shift. Even before the outbreak, concerns about urban sprawl, property costs, work-life balance, and climate change had some employers reexamining whether people really need to occupy the same physical space to work productively, close a sale, or exchange ideas. The good news is that new platforms are transforming remote work and virtual meetings, with many offering free trials of their services during the outbreak. A few standouts:
Slack (enterprise chat):
Slack’s interface provides co-workers with a freewheeling way to chat, call each other, and swap files. It almost feels like being at the office. The company faces stiff competition from Microsoft Teams, which last fall claimed 20 million users to Slack’s 12 million. In December, Slack said paid customers with more than $1 million in revenue exceeded 50 for the first time, up from 30 a year ago. CEO Stewart Butterfield says about 70 percent of Slack’s top customers also use Office 365—and that most use parts of the Office 365 suite but choose Slack over Teams for messaging. (That’s true for me.)
Zoom (webinars and video conferencing):
Cisco’s Webex, launched in 1995, is the pioneer in corporate video-conferencing. But lately Zoom, launched in 2011 by veteran Webex engineer Eric Yuan, has stolen the limelight. The platform gets rave reviews for design, affordability, stability and video quality. Zoom, which claimed 13 million monthly active users at the end of 2019, added another 2 million in January and February. Among them: my kids, who’ve been using Zoom daily to connect with teachers and classmates since Hong Kong ordered schools to close last month.
Hopin, Run the World (virtual conferences):
London-based Hopin raised $6.5 million in venture funding for a platform the Financial Times calls a combination of “Twitch-style livestreams of keynotes, Zoom-style video conferencing for groups, and one-to-one conversations inspired by Chatroulette.” It allows as many as 100,000 users to participate in an event at once. Founder John Boufarhat promises his 20-person team will scale that to more than 1 million by the end of the year. CNBC reports that before the outbreak, Hopin had a waitlist of about 10,000 sign-ups; in February alone it registered 8,000 more.
Run the World, based in Mountain View, offers video conferencing, ticketing, networking, and other functions for conference organizers in exchange for 25 percent of ticket sales. Founded by former Facebook colleagues Xiaoyin Qu and Xuan Jiang, the venture has raised $4.3 million from investors including Andreessen Horowitz.
Mural, The Wild (digital whiteboards and virtual studios):
Mural, with offices in San Francisco and Buenos Aires, is a cloud-based collaboration platform that allows distributed teams to draw, display, and organize visual elements on a variety of different devices. Lead trainer Mark Tippin calls it a digital whiteboard that helps users see each other as well as their ideas. The company has about 4,000 corporate customers worldwide, including design heavyweights IBM, SAP, and Steelcase. CEO Mariano Suarez-Battan says Mural has received thousands of new user requests per day since the outbreak.
And then there’s The Wild, whose technology lives up to its name. The software allows architects and designers to don headsets and wireless handheld prompts to collaborate on projects using virtual and augmented reality.
Designers and design thinkers, who have always been at the vanguard of the remote work revolution, will play a leading role in taking this trend mainstream. How are these new technologies changing your working hours? And how can we use them to extend the reach of Fortune events in this new reality? Send your insights and suggestions my way.
More design news below.
Clay Chandler
@ClayChandler
Clay.Chandler@Fortune.com
NEWS BY DESIGN
This edition of Business By Design was curated by Margaret Rhodes.
Icons by MartÍn Laksman; Animation by Nicole Vergalla
New icons. Sixty years ago, Fortune surveyed designers and experts to compile a list of the 100 best-designed products of the era. This month, Fortune recreated the survey and updated the list, adding digital products and new services to the 100 best designs.
The show must go on. As the coronavirus outbreak forces museums and concert halls around the world to close, some institutions are keeping audiences entertained through streaming. The Metropolitan Opera will broadcast nightly operas on its website—for free.
Racism at FIT. The Fashion Institute of Technology is under fire for allowing racist attitudes to flourish on its campus. In a February fashion show, a student dressed models in oversized lips and “monkey” ears; African-American students reported being told their hair was “unprofessional” and not in line with European standards.
A gift from Louis Vuitton. Luxury conglomerate LVMH will use three of its perfume and cosmetics factories—typically meant for producing Dior and Givenchy products—to make hand sanitizer gel, at no cost, for French hospitals.
Conducting good ideas. Healthcare professionals say that designing hospitals with more copper parts could help stem the spread of bacteria and viruses. Copper ions kill bugs within minutes, making the material optimum for door knobs, beds, and IV stands.
EVENTS BY DESIGN
March 19: John Maeda will release his Design in Tech report. Visit Maeda’s YouTube channel to watch.
March 20: Art Basel will broadcast digital viewings of galleries from the now-cancelled Hong Kong fair.
April 1: Deadline to enter the Core77 Design Awards.
April 17: Deadline to enter Fast Company’s 2020 Innovation by Design Awards.
EXECUTIVE SUMMARY
The Internet is awash in tips and survival guides for working from home during the coronavirus outbreak. Getting properly dressed and taking short walks will help, but they say nothing of syncing up with colleagues. For that, IDEO has a few recommendations for turning the constraints of at-home work into interesting new models for remote collaboration. To keep teams engaged, try these four IDEO-approved tactics:
Send coworkers a “virtual meeting survival kit,” with personal whiteboards or locking pouches for phones, to ensure people stay physically dialed in to meetings.
Design rituals around how teams use digital meeting tools, such as meditation or coffee breaks over video.
When doing remote user research, use the chance to engage local networks and on-the-ground sources in different regions.
Take the opportunity to learn something new. Or teach. Organizations can take what they’re saving in travel expenses and invest it in L&D.
BRAINSTORM SESSION
The power of one chart
Along with “social distancing,” the coronavirus has introduced the phrase “flatten the curve” into our lives. A rallying cry in the form of an infographic, “flattening the curve” means taking preventative health measures in order to slow the number of new COVID-19 cases so they don’t balloon past what our healthcare system can handle. Fast Company reports that a 2007 CDC report published the initial concept before an Economist journalist reinterpreted it for the coronavirus era as a cartoon and a (more serious) data visualization.
So far, the graphic is proving to be a powerful tool during a confusing time. Coronavirus misinformation is spreading alongside the actual virus, so it seems like a good omen that #FlattenTheCurve is not only trending, but resonating. The graphic also forms the bedrock for other forms of communication: In a special report, The Washington Post used the visual to simulate how different models of behavior affect the spread of infection, illustrating each outcome with a different curve. “Watch this,” tweeted former president Barack Obama. “It shows why we should all do the right thing and stay home to the fullest extent possible.”
“As a designer, I find it interesting (but not surprising) that my own pandemic ‘ah-hah’ moments have been driven by data visualizations,” tweeted design and product consultant Kim Goodwin. “Well-presented data can change minds and change behaviors. Data visualization is a critical public health and communication skill.” For those confused about how to behave during a pandemic, just look to the chart.
QUOTED BY DESIGN
Annals of modern consumerism
“As with many aesthetically pleasing food trends that have thrived in the era of constant internet access, the value of a deluxe cupcake isn’t necessarily in its physical consumption. Instead, it’s more like an edible Gucci logo belt, or a sprinkle-topped boutique hotel with a beautifully decorated lobby bar and painfully cramped showers. These goods are the least expensive way to gain temporary entry to a particular consumer class—for example, Gucci belts cost $450, while one of the brand’s bags could easily set you back $3,500. The brand’s belts are not any better at belting than many far less expensive options, but they provide a conduit for a person of middling means to transport herself into the lavish life she wants, if only within the highly edited confines of a carefully staged Instagram photo.”
— Atlantic writer Amanda Mull, writing about the rising category of taste-signaling “premiocre” consumer goods and experiences


fortune--2020-03-17--Coronavirus catch-up: Primaries canceled, global recession and factories pivot to hand sanitizer

Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.
The news surrounding the COVID-19 coronavirus pandemic is coming at a breathtaking pace. Between the rumors and the real news, it’s hard to keep up.
The stock market is like an excited child on a trampoline, Tuesday’s presidential primaries are filled with confusion, and tech companies that used to be bitter rivals are teaming up. Add in an expected White House briefing this afternoon and it’s not just mind-boggling, it’s exhausting. Not sure where to start with all the news? Here’s the latest on the pandemic and its impact on both businesses and nations.
Ohio scraps Democratic primary, Florida poll workers a no-show
The Democratic presidential primary is consumed with uncertainty after leaders in Ohio called off Tuesday’s election just hours before polls were set to open, citing the need to combat the new coronavirus. Officials in Florida, Arizona, and Illinois said they would move forward with the vote—but by early Tuesday morning, the virus was hurting people’s efforts to get to the polls.
Some Florida polling places couldn’t open as poll workers didn’t arrive because of fears over the potentially deadly virus.
Read more
Morgan Stanley and Goldman Sachs declare global recession underway
Goldman Sachs Group and Morgan Stanley economists joined the rush on Wall Street to declare the coronavirus has triggered a global recession, with the debate now focusing on how deep it will be and long it will last.
Read more
Europe’s auto factories are closing. Experts fear a lost decade is coming
The European automobile industry is shutting down as the coronavirus pandemic rages, and experts suggest Asian rivals could find new opportunities in the aftermath.
Volkswagen, the world’s biggest automaker, on Tuesday became the latest firm in the sector to announce the temporary closure of European plants—those in Spain, Portugal, Slovakia, and Italy will shut this week, while its German factories will close after Friday.
Read more
Firms redeploy factories to make coronavirus supplies
To battle the coronavirus pandemic, GM, with joint-venture partner SAIC Motor, is now making machines to manufacture surgical masks at a plant in the southern Chinese city of Liuzhou.
GM is far from the only company to dedicate factories to the battle against the new disease, an international campaign that’s been compared to wartime efforts. Across industry and geography, firms are redeploying production lines to boost the manufacturing of needed supplies. Machinery usually reserved for iPhones, cosmetic goods, and chemicals is now spitting out surgical masks, hand sanitizer, and medical supplies.
Read more
Uber suspends shared rides as coronavirus continues to spread
Uber is suspending pooled rides in North America as the COVID-19 coronavirus continues to spread.
The ride-share service on Tuesday shut down its Uber Pool option, which let up to four people share a ride (and save money) when they were headed in the same general direction.
Read more
Online grocers struggle to meet the surge in demand
Online shopping was supposed to be a panacea for those forced to self-isolate owing to coronavirus symptoms, or because their age or underlying health conditions made them especially vulnerable.
But, so far, it hasn’t quite worked out as techno-optimists envisioned.
Read more
The rise of social distancing pushes Zoom founder’s net worth up by $2 billion
The continuing rout in global stocks obliterated about $4 trillion of market value Monday, but one billionaire is managing to avoid the onslaught as social distancing becomes the norm.
Eric Yuan, the founder of Zoom Video Communications Inc., added $20 million to his net worth Monday while the S&P 500 plunged 12%.
Read more
Super-rich spurned by private jets as coronavirus stops flights
Private jet operators are turning away wealthy clients as coronavirus-related travel bans restrict their ability to operate, despite a surge in requests from people willing to shell out as much as $150,000 to secure a spot on their planes.
Read more
Cruise ship industry woes stand out in a travel sector battered by coronavirus
How bad is the coronavirus fallout for the travel and leisure industry? Historically bad. But some industry sectors are better positioned than others.
Airlines and lodging have the best prospects of recovery, after enduring intense pain. Cruise lines, however, will remain very shaky.
Read more
Ventilators are key to preventing coronavirus deaths—but does the world have enough of them?
For some critically ill COVID-19 patients, mechanical ventilation can be the difference between recovery and death.
But this life-saving equipment—and the trained specialists who operate it—are in finite supply.
Read more
More coronavirus coverage from Fortune:
—How to prepare your personal finances for a coronavirus recession
—The coronavirus could upend America’s business relationships to China
—The best Twitters to follow for reliable information on the coronavirus outbreak
—3 months before the coronavirus, a war game showed we weren’t ready
—How mainland China’s closest neighbors have kept coronavirus cases so low
—Couples are scrambling to prepare last-minute wedding alternatives
—SARS taught Taiwan how to contain the coronavirus outbreak
—How A.I. is aiding the coronavirus fight
Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.


fortune--2020-03-17--The best Irish whiskeys to drink right now

Trapped between deservedly (and globally) beloved single-malt Scotch whiskeys and a booming bourbon industry, Irish whiskeys are easy for consumers to overlook both on the back bar and the store shelf. Irish whiskey has suffered—unjustly—from a stigma that has clung stubbornly to the category since Prohibition, when American bootleggers would pass off low-grade rotgut hooch as “Irish whiskey,” destroying its once-sterling reputation for quality. That’s created a tough hill to climb for Ireland’s distillers, which at one point not so long ago numbered just two.
But a proliferation of new Irish distilleries and the reopening of many mothballed facilities over the past 20 years is making it more and more difficult to ignore the fact that Ireland is once again producing some truly world-class whiskeys (and often at very attractive price points). Some of the oldest liquids are only now making it to market after spending a decade or more in the barrel. The fact that the 100th anniversary of Prohibition has now come and gone means there hasn’t been a better time to explore Irish whiskey in at least a century, and the bottles below embody the industry’s new high-water mark.
Powers Gold Label Irish Whiskey Courtesy of Powers Irish Whiskey
Powers Gold Label Irish Whiskey
A staple of Dublin pub culture going back two centuries (it’s the top-selling whiskey in Ireland), Powers Gold Label has this year overhauled its look, releasing a redesigned bottle and label that’s conspicuously no longer gold. However, the liquid inside remains the gold standard for classic Irish blended whiskey: caramelized sugar, honey, and malted grains upfront with a slightly spicy finish and buttery mouthfeel. If you want to drink like the Irish this Saint Patrick’s Day, ditch the green beer and start here. Suggested retail price: $32
Kilbeggan Single Pot Still Irish Whiskey Courtesy of Kilbeggan Distillery
Kilbeggan Single Pot Still Irish Whiskey
In the past couple of years, Kilbeggan has produced some incredibly unique, limited-edition whiskeys by resurrecting recipes not seen in a century. Made from a mix of malted and unmalted barley, this mash bill also includes 2.5% oats, an ingredient you simply won’t find in many other whiskeys, Irish or otherwise. The resulting liquid possesses all the vanilla, warm baking spices, and fresh fruit typical of Irish whiskeys, but also a mellow, creamy roundness imparted by the oats. SRP: $45
West Cork Bog Oak Charred Cask Courtesy of West Cork Distillers
West Cork Bog Oak Charred Cask
Soon to be the largest wholly Irish-owned distillery on the island (pending a move to an expanded distillery), West Cork produces a dozen blends and single malts made unique by a range of unique cask finishes. This single malt spends time in used sherry casks followed by four to six months in American oak barrels specially charred, using oak harvested from the local bogland of Glengarriff. A touch of campfire smoke and spice upfront give way to malt and spice, with some sweet dried fruit and plum notes underneath and a whiff of wood smoke on the finish. A thinker of a dram. SRP: $50
Knappogue Castle Marchesi di Barolo Cask Finish Courtesy of Knappogue Castle Irish Whiskey
Knappogue Castle Marchesi di Barolo Cask Finish
Knappogue’s series of wine-casked finished Irish single malts each deserve a pour, but this particular iteration—aged for 12 years in ex-bourbon barrels before a finish in wine casks from Piedmontese winery Marchesi di Barolo—stands out. The extra time in red-wine casks imparts a red-berry fruit characteristic atop flavors of banana, toffee, and sweet pastry, displaying an excellent balance of fruit and spice. SRP: $80
Bushmills Single Malt Aged 16 Years
This exceptional and obtainable whiskey starts out in two batches, one aging in ex-bourbon barrels and the other in sherry casks for a minimum of 16 years. Those batches are then blended and placed in used port barrels to finish. The result is dark, fruity, rich, and round; think dark cherries and fruit compote atop malt, red vermouth, strawberries, peaches, and honey. Pair with a strong cheese. SRP: $150
Teeling Vintage Reserve Collection 24-Year-Old Single Malt Courtesy of Teeling Whiskey
Teeling Vintage Reserve Collection 24-Year-Old Single Malt
This bottle won “World’s Best Single Malt” at the 2019 World Whiskies Awards, and for good reason. There aren’t many Irish whiskeys that see so many years in the barrel, and time spent finishing in French Sauternes casks layers beautiful sweet notes atop what is already a cornucopia of a dram. Tropical orange peel and pineapple, mellow malt, golden raisins, honey, caramel…there is a depth of flavor here that’s not easy to unpack in a short review. Only 5,000 bottles exist in circulation, so if you see one don’t sleep on it. SRP: $450
More must-read stories from Fortune:
—The most essential travel apps you need to know about
—7 new books to read in March
—This Raja Ampat yacht trip might be the world’s most exclusive escape
—Behind the scenes of the Dalai Lama’s early history with the CIA
—WATCH: Can San Francisco Be Saved?
Follow Fortune on Flipboard to stay up-to-date on the latest news and analysis.


fortune--2020-03-17--Why Safeway grocery clerks worry about artificial intelligence

This is the web version of Eye on A.I., Fortune’s weekly newsletter covering artificial intelligence and business. To get it delivered weekly to your in-box, sign up here.
Business executives may be excited about artificial intelligence increasing productivity, but that doesn’t mean that rank-and-file workers are.
Consider the grocery clerks at two Safeway stores in the San Francisco Bay Area. A few weeks ago, over 200 workers who are members of the United Food and Commercial Workers Local 5 (UFCW5) union picketed a Safeway store in San Jose, Calif. to voice concerns about a push by parent company Albertsons to add more A.I to its operations.
The picketing was related to the union’s recent contract negotiations with Safeway about improving pay and pension plans, among other issues, said UFCW5 director of strategic campaigns Jim Araby. During the final week of negotiations, grocery clerks complained to the union that Albertsons’ recent tests of A.I. at so-called micro-fulfillment centers at two Safeway stores in San Jose and South San Francisco would harm workers, Araby said.
Albertsons recently partnered with the startup Takeoff Technologies to create mini warehouses where computer vision technology automatically sorts items that shoppers order online. Using A.I. reduces the need for Safeway staff to manually locate and grab items for delivery—workers now just retrieve the finalized orders from a conveyor belt and sign off on them for eventual delivery.
Several grocery store chains are investing heavily in micro-fulfillment centers after Amazon helped to popularize as-fast-as-you-can deliveries, said Andrew Lipsman, a principal analyst at research firm eMarketer.
Araby explained that the union is less concerned about the micro-fulfillment centers obliterating jobs. Instead, the union worries that as Safeway adds more micro-fulfillment centers, higher-paid grocery clerks will be downgraded to lower-paid roles at the micro-fulfillment centers, which are part of the grocery store’s e-commerce unit.
“If more jobs go warehouse-style and they move the jobs there and pay them less, then it’s a huge problem,” Araby said.
Safeway and Albertsons did not respond to requests for comment.
The UFCW5’s concerns echo those of other unions representing hotel staff and casino workers that view A.I. as inevitable and something that can’t be stopped. Rather than fighting against the technology, the unions are seeking protections in their contracts to require that employers train staff in newer skills or ensure that wages don’t plummet.
Because the concerns about the micro-fulfillment centers came up so late in the negotiation process, the union didn’t address them in their tentative agreement with Safeway management last week, Araby said. The next time the union negotiates a new contract, likely next fall, it will bring up its concerns, he said.
Although it’s too early to say what the union will seek, Araby imagines it could involve creating a “a joint labor-management committee” that would meet quarterly to discuss the company’s plans for implementing new technology and how it impacts jobs.
Araby acknowledged that the coronavirus pandemic could cause an “inflection point” that leads to more consumers using Safeway’s e-commerce and delivery service. But even if that doesn’t happen, he said, it’s clear grocery chains will continue to invest heavily in micro-fulfillment operations because “this is going to be part of the grocery income center.”
Jonathan Vanian
@JonathanVanian
jonathan.vanian@fortune.com
A.I. IN THE NEWS
The White House wants A.I. help. The White House Office of Science and Technology Policy along with representatives from Microsoft, the Allen Institute for AI, the Chan Zuckerberg Initiative, and others revealed a dataset containing 29,000 scientific articles related to the coronavirus that they intend for A.I. researchers to analyze on behalf of the public and the science community. “Now, The White House joins these institutions in issuing a call to action to the Nation’s artificial intelligence experts to develop new text and data mining techniques that can help the science community answer high-priority scientific questions related to COVID-19,” the White House said in a statement.
Gobble gobble. Tech giants like Apple, Google, Microsoft, Facebook, Intel, and Amazon are the biggest acquirers of A.I. startups, Bloomberg News reported based on data from research firm CB Insights. The article raises questions about the long-term ramifications of the bulk of A.I. startups being sold to only a handful of tech companies. “If big tech companies buy them all up, they eliminate these future competitors, and have a chance of actually owning the winners,” Primer AI CEO Sean Gourley told the publication.
An A.I. lawsuit involving misappropriated trade secrets. Facebook has been sued by A.I. startup Neural Magic for allegations relating to stealing the startup’s proprietary software and using it in its own A.I. projects after hiring one of its employees. The startup’s software helps researchers build neural networks—software that learns—that can work more efficiently with standard computer processors (CPUs) instead of the graphics processing units (GPUs) that many researchers typically use. Facebook CTO Mike Schroepfer previously told Fortune that the social networking giant uses large fleets of CPUs for some A.I. training tasks like “click predicting,” explaining that sometimes using multiple CPUs can be more efficient than even the most powerful GPUs.
That’s one way to lure retailers. Amazon is considering making some of the software used to power its Go cashierless stores available for free in an open source model, The Wall Street Journal reported, citing unnamed sources. The goal is to “gain favor” with retailers like Walmart that typically view Amazon as a competitive threat, the report said.
EYE ON A.I. TALENT
ServiceNow hired Vijay Narayanan to be the enterprise software company’s first chief A.I. officer who will lead its advanced technology group. Narayanan was previously the head of content and discovery engineering at Pinterest and a Microsoft director of machine learning algorithms and data science.
Eric Horvitz is now Microsoft’s chief scientific officer while Peter Lee will be the tech giant’s research chief, CNBC reported. Horvitz has been Microsoft’s principal researcher for 16 years and is the co-chair of the company’s artificial intelligence and ethics in engineering and researcher committee.
Bill Gates has stepped down from Microsoft’s board, marking the first time he will have no formal role with the company he co-founded in 1975 with the late Paul Allen. Gates will be a technical advisor to CEO Satya Nadella.
EYE ON A.I. RESEARCH
Deep learning to determine who has the coronavirus. Researchers from institutions like Tel-Aviv University, Mount Sinai Hospital, and the University of Maryland School of Medicine published a paper about using deep learning to detect the coronavirus in patients and “can differentiate coronavirus patients from those who do not have the disease.” The researchers wrote that their system can “achieve high accuracy in detection of Coronavirus.”
Still, they caution: “In the case of a new disease, such as the coronavirus, datasets are just now being identified and annotated. There are very limited data sources as well as limited expertise in labeling the data specific to this new strain of the virus in humans. Accordingly, it is not clear that there are enough examples to achieve clinically meaningful learning at this early stage of data collection despite the increasingly critical importance of this software, especially given fears of a pandemic.”
Deep learning to track COVID-19 lung infections. Researchers from the Department of Radiology at the Shanghai Public Health Clinical Center and other institutions in China published a paper about using deep learning to analyze COVID-19 infections patients via chest CT scans. The paper said it’s A.I. system was “trained using 249 COVID-19 patients, and validated using 300 new COVID-19 patients.” The paper’s authors wrote that there are still several limitations to their study, including the fact that the A.I. system was trained on data that “may not be representative of all COVID-19 patients in other geographic areas.” But ultimately, they hope that the paper “could further reveal insights about imaging markers and findings towards improved diagnosis and treatment for COVID-19.”
FORTUNE ON A.I.
IBM’s debating A.I. is added to Watson—By Jeremy Kahn
Despite fears of gridlock, Internet is holding up under coronavirus strain—By Aaron Pressman
The best Twitter accounts to follow for reliable information on the coronavirus outbreak—By McKenna Moore
‘Where’s the leadership?’ A Q&A with WHO special envoy David Nabarro on COVID-19—By Erika Fry and Sy Mukherjee
BRAIN FOOD
Opportunistic A.I. As a journalist, I’ve become jaded to companies hungry for media coverage attempt to capitalize on major news events as a way to tout the benefits of their products. Regarding the rise of the coronavirus, I’ve already received several pitches from companies claiming their technology or services can lead to breakthrough treatments for the deadly virus. MIT Technology Review probes some of these claims and finds that “The hype outstrips the reality.” Although A.I. could help researchers develop better treatments in the future, it will “not save us from the coronavirus—certainly not this time.”
From the article:
“In fact, the narrative that has appeared in many news reports and breathless press releases—that AI is a powerful new weapon against diseases—is only partly true and risks becoming counterproductive. For example, too much confidence in AI’s capabilities could lead to ill-informed decisions that funnel public money to unproven AI companies at the expense of proven interventions such as drug programs.”


fortune--2020-03-17--The Fed restarts commercial paper facility to help market

The Federal Reserve will restart a financial crisis-era program to help U.S. companies borrow through the commercial paper market after it came under “considerable strain” due to the coronavirus pandemic.
The central bank is using emergency authorities to establish the Commercial Paper Funding Facility with the approval of the Treasury secretary, according to a Fed statement on Tuesday. The Treasury will provide $10 billion of credit protection from its Exchange Stabilization Fund.
“By providing short-term credit, the CPFF will help American businesses manage their finances through this challenging period,” Treasury Secretary Steven Mnuchin said in a separate statement.
The Fed said it will provide financing to a special-purpose vehicle that will purchase A1/P1 rated commercial paper from eligible companies, and purchases will last for one year unless the Fed extends the program.
Pricing will be based on the then current three-month overnight index swap rate plus 200 basis points, and each issuer must pay a facility fee equal to 10 basis points of the maximum amount of its commercial paper the SPV may own.
The step comes as central banks and governments around the world roll out emergency liquidity measures for markets and economic stimulus programs designed to soften the impact of the spreading coronavirus. A number of economists have said virus-triggered closures and national lock-downs are making a global recession increasingly likely.
The Fed on Sunday slashed interest rates to nearly zero, announced enhanced dollar swap lines with other central banks and said it would buy at least $700 billion in Treasuries and mortgage backed securities to ensure market functioning and keep credit flowing.
In financial markets, the rush of investors into cash and other safe havens has threatened to deny companies a crucial source of short-term lending. Firms frequently issue commercial paper—IOUs that generally mature in fewer than 270 days—to fund everyday expenses, like rent and payroll.
The facility reprises a program the Fed rolled out in the depths of the financial crisis in October 2008 as global credit markets seized up. At the time, companies were even more reliant on short-term lending and the crisis left several industrial giants scrambling for cash.
More must-read stories from Fortune:
—How to prepare your personal finances for a coronavirus recession
—Why the world’s stock markets kept going quiet last week
—The Fed made a bold move to calm shaky markets. But is it enough?
—Why return CEOs are usually bad news for a company’s stock
—Dormant PayPal Credit accounts are coming back to hurt credit scores
Subscribe to Fortune’s Bull Sheet for no-nonsense finance news and analysis daily.


fortune--2020-03-17--Europe’s auto factories are closing. Experts fear a lost decade is coming

The European automobile industry is shutting down as the coronavirus pandemic rages, and experts suggest Asian rivals could find new opportunities in the aftermath.
Volkswagen, the world’s biggest automaker, on Tuesday became the latest firm in the sector to announce the temporary closure of European plants—those in Spain, Portugal, Slovakia and Italy will shut this week, while its German factories will close after Friday. The facilities produce cars under brands including Volkswagen, Audi, SEAT, Ducati, Porsche and Lamborghini.
Other manufacturers’ moves include:
Renault on Monday shut all 12 of its French plants in accordance with that country’s very strict lockdown. “The continuity of production activities at the Group’s plants in other European countries depends on the situation in each country,” it said.
on Monday shut all 12 of its French plants in accordance with that country’s very strict lockdown. “The continuity of production activities at the Group’s plants in other European countries depends on the situation in each country,” it said. PSA Group , the parent of brands including Peugeot, Citröen, Opel and Vauxhall, on Monday announced the closure this week of plants in France, Spain, Poland, the U.K., Portugal, Germany and Slovakia, until March 27.
, the parent of brands including Peugeot, Citröen, Opel and Vauxhall, on Monday announced the closure this week of plants in France, Spain, Poland, the U.K., Portugal, Germany and Slovakia, until March 27. Fiat Chrysler announced, also on Monday, that it would suspend production at factories in Italy, Serbia and Poland, also until March 27. “The Group will make use of these stoppages to implement revisions to production and quality control protocols to benefit our customers and enhance overall productivity,” it said.
announced, also on Monday, that it would suspend production at factories in Italy, Serbia and Poland, also until March 27. “The Group will make use of these stoppages to implement revisions to production and quality control protocols to benefit our customers and enhance overall productivity,” it said. Ferrari has suspended production at its Italian Formula 1 and road car plants.
The German titans Daimler and BMW are yet to announce factory closures, though Mercedes-maker Daimler has at least postponed its annual general meeting to ensure “the health of all participants.” BMW has had to quarantine 150 workers due to an infection at a Munich factory but “our plants are running as scheduled,” said BMW spokesman Frank Wienstroth.
The ultimate impact of the coronavirus crisis on European automakers is of course yet to be determined, as is the case with all sectors—forecasts are being jettisoned all over the place.
“2020 is a very difficult year,” said Volkswagen CEO Herbert Diess as he presented the company’s financial results Tuesday. “The corona pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts.”
According to Ferdinand Dudenhöffer, an industry veteran who’s now responsible for automotive analysis at the University of St. Gallen in Switzerland, the outlook is bleak for a sector that is already being buffeted by the costs of technological change and the trade wars of U.S. President Donald Trump. Even under an optimistic scenario, which assumes no bank failures and the start of a recovery for the European economy after three months or so, he sees something of a lost decade—that the Western European market for passenger cars will return to its 2019 levels only by 2030. “If people have no money they will not buy any cars,” he told Fortune.
“The European car industry is facing three major challenges: first, the corona epidemic and the slump in the European auto market triggered by corona; second, the detrimental effects of the trade wars of U.S. President Donald Trump; and third, the switch to electromobility, which requires high investments,” he continued. “The trade wars have worsened the cash position, especially for the European premium manufacturers.”
“Anyone who is too focused on Europe, such as Renault, Fiat or PSA-Opel, is under particular pressure,” Dudenhöffer added. “Asian car manufacturers such as the Geely Group, Great Wall and Hyundai-Kia have the opportunity to further expand their market positions.”
Chinese auto production is heading in the opposite direction to that in Europe, given the current hopes that the coronavirus crisis is lessening there—Volkswagen noted Tuesday that most of its Chinese plants were back up and running. However, companies there too have been hit hard by the outbreak’s impact on sales. Last month, Geely saw a 75% drop in sales, and Great Wall saw an 85% drop.
Fidentiis analyst Marco Opipari told Automotive News Europe that a couple weeks of lost European production could be made up later, but “the real problem is on the demand side, people are not buying cars now, and sales volumes are expected to be very bad in March, with a real impact on automakers’ earnings.”
Meanwhile, the U.K.’s best known auto brands have also been hit by the knock-on effects of the virus at a time when many were already struggling or lowering production at their British plants.
Aston Martin has reportedly been forced to ask for an additional 36 million pounds ($44 million) in funds from a consortium led by Canadian billionaire Lawrence Stroll; the consortium had already committed 500 million pounds to trying to rescue the company. While the brand was already struggling with sales last year, the cancellation of the Geneva Motor Show—where it typically launches new models—and the delay to the latest James Bond firm—the spy traditionally drives an Aston Martin—have both boded ill for the company.
Jaguar Land Rover told British media earlier this month that, even before the virus, it was planning to temporarily shut down one plant and reduce production schedules at two additional factories. The outbreak of coronavirus in China led the company to warn of a likely hit to sales earlier this month, and potential disruptions to the supply chain for some parts. Neither company responded to a request for further comment.
More coronavirus coverage from Fortune :
—How to prepare your personal finances for a coronavirus recession
—The coronavirus could upend America’s business relationships to China
—The best Twitters to follow for reliable information on the coronavirus outbreak
—3 months before the coronavirus, a war game showed we weren’t ready
—How mainland China’s closest neighbors have kept coronavirus cases so low
—Couples are scrambling to prepare last-minute wedding alternatives
—SARS taught Taiwan how to contain the coronavirus outbreak
—How A.I. is aiding the coronavirus fight
Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.


fortune--2020-03-17--Uber suspends shared rides as coronavirus continues to spread

The first U.S. coronavirus vaccine trials have begun

Uber is suspending pooled rides in North America as the COVID-19 coronavirus continues to spread.
The ride-share service on Tuesday shut down its Uber Pool option, which let up to four people share a ride (and save money) when they were headed in the same general direction. As the CDC and governments warn against gatherings, the company decided the convenience was too big a risk.
“Our goal is to help flatten the curve of community spread in the cities we serve,” Andrew Macdonald, senior vice president of Uber rides and platform, said in a statement. “We remain in close contact with local leaders and will continue to work with them to discourage nonessential travel.”
The move comes after a labor group for Uber and Lyft drivers called on the ride-sharing services to stop the practice amid the pandemic. Lyft, as of Tuesday morning, still offers shared rides. Gig workers have also petitioned the companies for paid sick leave so they don’t have to worry about financial hardships should they become sick.
Uber’s likely to make up for any losses from the cessation of Uber Pool with an uptick in business from Uber Eats. As more and more people settle in at home, the company’s food delivery business has seen an uptick in business.
More must-read stories from Fortune:
—Inside Xerox’s audacious quest to buy much bigger rival HP
—How A.I. is aiding the coronavirus fight
—How early GPS gadget maker Garmin mapped out success against big tech
—Dormant PayPal Credit accounts are coming back to hurt credit scores
—WATCH: Best earbuds in 2020: Apple AirPods Pro Vs. Sony WF-1000XM3
Catch up with Data Sheet, Fortune’s daily digest on the business of tech.


fortune--2020-03-17--Online grocers struggle to meet the surge in demand

This article is part of a Fortune Special Report: Business in the Coronavirus Economy—a look at the impact of the pandemic on more than 50 industries.
Online shopping was supposed to be a panacea for those forced to self-isolate owing to coronavirus symptoms, or because their age or underlying health conditions made them especially vulnerable.
But, so far, it hasn’t quite worked out as techno-optimists envisioned.
With most of Britain’s population stuck at home because of work-from-home policies, or self-isolating owing to suspected coronavirus infections, the region’s online grocery firms are struggling to keep pace with the sudden surge in demand for their services.
Online grocery delivery was already far more popular in Britain than in many other countries: It accounts for about 7.3% of grocery spending in the U.K., third only to South Korea and Japan. By contrast, in the U.S., the market share for online shopping is less than 2%, according to market research firm GlobalData.But with the coronavirus pandemic, demand for online groceries has skyrocketed, with grocers reporting higher order volumes than even during the Christmas season.
Not only are many more customers ordering online than usual, but the average order sizes have increased as well, as customers panic-buy and stockpile, the supermarkets report. That has made it even harder for grocers: Larger orders take more time to fulfill, and they’ve struggled to maintain adequate stocks of popular items such as toilet paper, hand sanitizer, canned food, UHT milk, and dried pasta.
Most grocers allow online customers to choose a one-hour delivery time slot, usually between about 7 a.m. and 10 p.m. But with the sudden spike in demand, customers have found open slots almost impossible to find, even looking as far out as three weeks. Others have complained about delivery times slipping—or grocers canceling already booked orders altogether. A few online grocers were so inundated they had to stop taking new order altogether.
In response, a number of grocery stores announced on Wednesday that will now begin to prioritize people over 70, the disabled and those from other vulnerable groups, for delivery slot bookings.
Tesco, one of the country’s largest supermarket chains, has recommended customers concerned about the difficulty of finding an online delivery slot return to shopping in its physical stores, provided they are not part of a vulnerable population.
Sainsbury’s, another large British grocer, announced on Wednesday that it will open an hour early on Thursday, March 19, just for people aged 70 and over.
The grocer was among several announcing that they will now impose strict limits on the number items customers can purchase, limiting them to just two of the most stockpiled items, such as packets of toilet paper and dried pasta, and just three of any grocery item.
Sainsbury’s and Waitrose, an upmarket grocery chain owned by retailer John Lewis, said they would close some separate in-store services, such as the separate butchery and cheese counters, to make more staff available to restock depleted shelves. And Waitrose has recruited staff from its head office, and from elsewhere in the John Lewis, to help staff its stores and fulfill online orders.
Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.
Ocado, a popular online-only grocer that launched in 2002, has seen the volume of traffic on its website increase as much as fourfold since the beginning of March. “It’s the peakiest peak we’ve ever experienced in the history of the business,” says David Shriver, Ocado’s group head of communications.
The company had so many orders that last weekend it had to stop taking registrations from new customers so that it could prioritize service for existing ones, Shriver adds.
To try to slow the tide of orders, Ocado also took its mobile app out of service and introduced a system where even those trying to place orders on its website are placed into a “virtual queue.” This means customers have to wait on a holding page before they are allowed to access the main website to do their online shopping.
On Monday, some Ocado customers complained on social media that this wait time could be as long as 15 minutes at peak hours. Waitrose, an upscale U.K. supermarket chain, imposed a similar queuing system as well.
But, even with these steps, the companies’ systems strained under the enormous volume of demand. By Thursday, Ocado was forced to suspend taking all orders, even for existing customers, until further notice. Riverford, a company that sells organic produce online, also had to stop processing new orders owing to high volumes. Waitrose’s website crashed periodically, and the company said it was working hard to keep it functioning normally.
Ocado says it would ramp up staffing to try to meet increased customer demand. Although the company uses robots to help move groceries around its warehouses, the actual selection of individual customer orders is done by humans, as is, of course, the delivery.
Around the world, other e-commerce companies are facing similar pressures to add employees to meet a coronavirus-related wave of demand. Amazon said its customers in the U.S. were facing “longer than usual” delivery windows as popular products were selling out.
The company announced Monday that it will try to hire an additional 100,000 full- and part-time workers in the U.S. to staff its warehouses and help deliver orders. It also said it will raise its minimum wage to at least $17 an hour through April.
“Our labor needs are unprecedented for this time of year,” Dave Clark, Amazon’s senior vice president of worldwide operations, said in a blog post Monday.
U.S. supermarket chain Kroger also said it was hiring across its retail stores and distribution centers, with the aim to get new workers on the job within days and weeks.
Even in countries that have imposed mandatory quarantines, workers in grocery stores and food delivery have been exempted as governments try to make sure people can still get the food they need without exposing themselves or others to potential infection.
This story was updated on March 18, 2020, to reflect new measures grocery stores have announced to try to counter hoarding, meet surging demand, and prioritize the needs of vulnerable and shoppers over the age of 70. It was also updated to include the news that Ocado had been forced to cease taking order entirely.
More coronavirus coverage from Fortune:
—How to prepare your personal finances for a coronavirus recession
—The coronavirus could upend America’s business relationships with China
—The best Twitter accounts to follow for reliable information on the coronavirus outbreak
—3 months before the coronavirus, a war game showed we weren’t ready
—How mainland China’s closest neighbors have kept coronavirus cases so low
—Couples are scrambling to prepare last-minute wedding alternatives
—SARS taught Taiwan how to contain the coronavirus outbreak
—How A.I. is aiding the coronavirus fight
Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.


fortune--2020-03-17--Morgan Stanley and Goldman Sachs declare global recession underway

Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.
Goldman Sachs Group and Morgan Stanley economists joined the rush on Wall Street to declare the coronavirus has triggered a global recession, with the debate now focusing on how deep it will be and long it will last.
A day after President Donald Trump conceded the U.S. slump alone is set to be “a bad one,” economists threw away their forecasts that the world could avoid tumbling into recession for the first time since the financial crisis. Behind the rethink: The virus’s spread to Europe and the U.S. and new evidence that China—the first to be hit by what is now a pandemic—experienced a faster collapse in its economy than originally thought.
Morgan Stanley’s team led by Chetan Ahya said a worldwide recession is now its “base case,” with growth expected to fall to 0.9% this year. At Goldman Sachs, Jan Hatzius and colleagues predict a weakening of growth to 1.25%.
Such slumps would not be as painful as the 0.8% contraction of 2009, as measured by the International Monetary Fund, but they would be worse than those of 2001 and the early 1990s. Both Morgan Stanley and Goldman Sachs said while they anticipate a rebound in the second half, the risks remain of even deeper downturns.
The projections will apply further pressure on policy makers to do more to limit the health emergency and then provide enough stimulus to drive a rebound in demand once the virus is under control. Although the U.S. Federal Reserve and fellow central banks have been active in loosening monetary policy, most governments have been slow in responding and are only now crafting fiscal packages that may still fall short of pacifying worried investors.
“While the policy response will provide downside protection, the underlying damage from both COVID-19’s impact and tighter financial conditions will deliver a material shock to the global economy,” Morgan Stanley’s economists said.
The outlook could darken even further if the virus lasts longer than anticipated or wields greater economic pain—given factories, schools, restaurants and shops are closing around the world. A freezing up of markets or a continued sluggishness by governments to act are also regarded as threats.
More must-read stories from Fortune:
—What is a recession? All of your questions, answered
—How to prepare your personal finances for a coronavirus recession
—Why the world’s stock markets kept going quiet last week
—The Fed made a bold move to calm shaky markets. But is it enough?
—Why return CEOs are usually bad news for a company’s stock
—Dormant PayPal Credit accounts are coming back to hurt credit scores
Subscribe to Fortune’s Bull Sheet for no-nonsense finance news and analysis daily.


fortune--2020-03-17--Private equity and venture capital will feel the effects of the coronavirus

As market chaos mounts and coronavirus uncertainty persists, private markets are feeling the pressure.
According to PitchBook’s latest analysis, private equity and venture capital are equipped to alleviate pressures—but it won’t be a smooth ride. In the new report, PitchBook’s analysts examine how PE and VC fundraising, deal sourcing, and performance will be affected by the economic deterioration caused by COVID-19.
Here are a few insights:
— PE transactions will slow down: As consumer spending and business investment are set to decline, it’s likely that PE transaction volume will experience a slowdown following the expected economic contraction.
— PE firms are about to get more conservative: As lending tightens, PE firms will have to strike deals with more conservative capital structures that include a larger equity proportion. But don’t forget that PE firms still have a whopping $2.4 trillion in dry power (undeployed capital) sitting in private vehicles.
— Return profiles will likely face pressure: As earnings fall and the cost of capital rises, asset prices will decline across the board, which would hurt exit multiples.
— Performance may suffer: The recent market drawdown and volatility will likely be reflected in private market performance. “Our research has shown that PE and VC funds raised in the runup to a downturn, as prices are rising and excess capital is raised, tend to underperform,” the note says.
— There’s still plenty of capital out there: For both PE and VC, dry powder levels are at record levels on an absolute basis. This capital is likely to be deployed, albeit more slowly and perhaps more prudently than in the last few years. Capital efficiency strikes again!
Read the full report here.
NEOBANK FUNDING: One Finance, a San Francisco-based banking startup whose target market includes the nuclear family, raised $17 million in Series A funding and launched in private beta Tuesday. Investors include Foundation Capital, Core Innovation Capital, and Obvious Ventures.
My colleague Lucinda Shen has the latest:
While the average American holds multiple accounts, which makes it difficult to understand exactly how much cash they have on hand and how much they can spend, One Finance is betting that consumers want to simplify their spending and saving to just one place. The startup will offer a single account for savings and credit, allowing consumers to switch from their debit card to credit and back again with a tap of a button.
Read the full story here.
Polina Marinova
Twitter: @polina_marinova
Email: polina.marinova@fortune.com
VENTURE DEALS
- Hashicorp, a San Francisco-based developer of applications for software managed datacenters, raised $175 million in Series E funding from Franklin Templeton Investments at a post-money valuation of $5.1 billion.
- Proxy, a San Francisco-based provider of digital identities for the physical world, raised $42 million in Series B funding. Scale Venture Partners led the round, and was joined by investors including Kleiner Perkins, Y Combinator, Silicon Valley Bank and West Ventures.
- Axis Security, a San Mateo, Calif.-based application access company, raised $17 million in funding. Investors include Cyberstarts.
- Airmeet, an India-based Bengaluru-based virtual meetup management startup, raised $3 million in funding. Accel led the round, and was joined by investors including VentureHighway and Global Founders Capital.
HEALTH & LIFE SCIENCES DEALS
- Nurix Therapeutics, a San Francisco-based developer of targeted protein modulation drugs, raised $120 million in funding. Foresite Capital led the round, and was joined by investors including Bain Capital Life Sciences, Boxer Capital (Tavistock Group), EcoR1 Capital, Redmile Group, Wellington Management Company, The Column Group and Third Rock Ventures.
PRIVATE EQUITY DEALS
- RFP360, a Kansas City, Mo.-based RFP issuing and responding software platform, raised funding of an undisclosed amount from Five Elms Capital.
OTHER DEALS
- MarineMax, Inc. (NYSE: HZO) acquired Boatyard, a Fort Lauderdale, Fla.-based on-demand digital platform aimed at enhancing the experience of boating. Financial terms weren't disclosed.
- Riskonnect acquired Xactium, a UK-based GRC software provider. Financial terms weren't disclosed.
IPOs
- Burger King India placed its IPO plans on hold amid market turmoil, Bloomberg reports citing sources. Read more.
- InnoCare Pharma, a Chinese cancer drug developer, raised $288 million in its Hong Kong initial public offering, Reuters reports citing sources. Read more.
- Thailand’s Siam Cement Group Pcl shelved the IPO of its packaging business, sources tell Reuters. Read more.
- Keros Therapeutics, a Lexington, Mass.-based biotech developing treatments for hematological and musculoskeletal disorders, filed for an $86 million IPO. Pontifax (32.6% pre-offering), Arkin Bio Ventures (14.4%), and Foresite Capital Fund (9.9%) back the firm. It plans to list on the Nasdaq as “KROS.” Read more.
EXITS
- Checkmarx, an application security company, was acquired by Hellman & Friedman at a valuation of $1.15 billion. The seller was Insight Partners.


fortune--2020-03-17--Ohio scraps Democratic primary, Florida poll workers a no-show

The Democratic presidential primary is consumed with uncertainty after leaders in Ohio called off Tuesday’s election just hours before polls were set to open, citing the need to combat the new coronavirus. Officials in Florida, Arizona and Illinois said they would move forward with the vote — but by early Tuesday morning, the virus was hurting people’s efforts to get to the polls.
Some Florida polling places couldn’t open as poll workers didn’t arrive because of fears over the potentially deadly virus.
The Palm Beach County elections department said many workers failed to show up in at least five locations. The county had 800 volunteers back out as of Monday, with just 100 new volunteers offering to take their placex.
In Illinois, Cook County Clerk Karen A. Yarbrough took to Twitter on Tuesday morning to encourage poll workers to mark space on the floor at polling sites to keep voters a safe distance apart and avoid spreading the virus. The tweet included a photo of a roll of blue tape, a piece of string and a tape measure along with a note that concludes: “THIS PICTURE CAN SAVE LIVES.”
Yarbrough said shortly after the polls opened, however, that she had heard of no problems at the county’s polling sites and expected “things to go well” on Tuesday.
“I’m just hopeful that we’ll have a good day voting for the people,” she said.
Not since New York City postponed its mayoral primary on the day of the Sept. 11, 2001, attacks has an election been pushed off in such a high-profile, far-reaching way. Ohio Gov. Mike DeWine initially asked a court to delay the vote, and when a judge refused to do so the state’s health director declared a health emergency that would prevent the polls from opening.
The decision was a reminder that the most elemental act of American democracy — voting — will be severely tested Tuesday as several states hold presidential primaries while also confronting the impact of a global pandemic. The contests are playing out as the virus’ impact is becoming more tangible with schools closing across the country, workers staying home and restaurants and bars shuttering.
The U.S. stock market on Monday plunged to its worst day in more than three decades.
The rapidly shifting developments amounted to a kind of chaos rarely seen in an election season. And it may not end soon as some states that have presidential contests in the coming weeks have already moved to postpone them and others were being pressed to follow.
“These are unusual restrictions,” Susan Lerner, executive director of Common Cause New York, said of recommended federal limits to try and control the spread of the virus. Her group is urging the delay of that state’s 2020 presidential primary from April 28 to June 23, when congressional and legislative primaries are already scheduled.
“Normally, we do not support postponing elections, but these are extraordinary circumstances,” Lerner said.
Campaigns spent Monday sifting through data and talking to contacts on the ground to assess the impact of the coronavirus on turnout in places that will hold elections Tuesday. Former Vice President Joe Biden is moving closer to securing the Democratic presidential nomination but could face a setback if the older voters who tend to support him don’t show up. Vermont Sen. Bernie Sanders, meanwhile, can’t afford to lose support from young voters who have been his most loyal supporters.
The tumult has left the campaign in a state of suspended animation. In-person rallies have been replaced with sometimes-awkward virtual events.
Sanders, the last Democrat standing between Biden and the nomination, isn’t planning to drop out. His campaign looked to have nowhere to go after a big loss last week in Michigan, and another blow landed Monday night when Biden was declared the winner of the primary in Washington state, giving him victories in five out of six states that voted March 10. Yet Sanders’ top advisers see no downside to staying in the race as they assess how the coming days and weeks unfold.
Sanders staged a virtual rally Monday night featuring himself, rocker Neil Young and activist actress Daryl Hannah. He also released a video criticizing Biden for suggesting as a senator that he’d be willing to cut Social Security benefits — a line of attack he employed frequently during Sunday’s debate.
“I don’t have to tell anybody that we are living in a very unprecedented and strange moment in the history of our country,” Sanders said, urging supporters that it may be time to “rethink our value system, rethink many of the systems we operate under.”
Sanders’ team had expected Biden to do well in all four states set to vote on Tuesday. But the Vermont senator has also cast some doubt about the entire process, saying no one should risk being infected while voting and noting that it’s important “to make sure that everybody who wants to vote has the right to vote, and that may not be the case now.”
Still, Sanders faces an increasingly tough path to the nomination. About half of the delegates in the Democratic primary have already been awarded and, if Biden has another big night Tuesday, he will pad an already large and perhaps insurmountable lead. Sanders trails Biden by more than 150 delegates nationally, meaning he’d need to win more than 57% of those yet to be allocated to clinch the Democratic nomination.
Biden’s campaign is trying not to look presumptuous about its prospects at this sensitive moment. Still, the former vice president is making moves to rally more voters to his campaign, including his announcement during the debate that he would choose a woman as a running mate.
Rep. Cedric Richmond of Louisiana, one of Biden’s campaign co-chairs, said the former vice president has “started the process of looking at people seriously.”
Biden appeared to keep his focus Monday on winning the nomination, as he encouraged voters in a telephone town hall to participate in Tuesday primaries but to do so safely.
Joining him was former Surgeon General Dr. Vivek Murthy, who served during President Barack Obama’s second term. Murthy encouraged voters at high risk of contracting coronavirus to vote by mail or use curbside voting, if available, but he also explained precautions elections officials are planning in the Tuesday primary states.
The call came three days after Biden’s initial effort at remote campaigning was marred by technical difficulties, a testament to the challenge of balancing what amounts to a national shut-in with the demands of a presidential campaign. “I appreciate everyone bearing with us as we figure out all the logistics of campaigning in a new way here,” Biden said Monday night.
The coming weeks will present additional uncertainties. After Tuesday, the campaign had been set to shift to Georgia next week, but officials there have already postponed their Democratic primary until May 19. That means voting isn’t scheduled again anywhere until March 29 in Puerto Rico — and island officials are also seeking a delay.
The first week in April, meanwhile, would have featured Louisiana, but its decision to delay the primary until June 20 leaves only primaries in far-flung Alaska and Hawaii and caucuses in Wyoming through April 4. That could leave the campaign in further limbo, perhaps prolonging a primary race that might otherwise have been wrapped up.
Voting rights groups have advocated for upcoming elections to be postponed, or for states holding them as scheduled to adopt more lenient vote-by-mail and absentee ballot rules so that people don’t have to choose between showing up at a polling place and putting their health at risk.
But Mustafa Tameez, a Democratic strategist with ties to many of the party’s top donors, noted that Americans voted during World War I and World War II.
“There should be no circumstance in which we say, because of a crisis — regardless of the crisis — that we stop our electoral government,” Tameez said.
More must-read stories from Fortune:
—What the world’s biggest economies are doing to fight coronavirus and recession
—Will donors of color invest in white presidential candidates?
—Big business rallies behind Joe Biden
—How swing state economies have performed since the 2016 election
—WATCH: What happens to leftover campaign funds once a candidate drops out?
Get up to speed on your morning commute with Fortune’s CEO Daily newsletter.


fortune--2020-03-17--Two tech giants, once bitter enemies, are cooperating in the wake of coronavirus

This is the web version of Data Sheet, Fortune’s daily newsletter on the top tech news. To get it delivered daily to your in-box, sign up here.
In times of crisis and mental anguish, it is the smallest of things that hit home.
In a fine New York Times article about how Microsoft had responded early to the outbreak in Seattle, a single, declarative sentence stuck with me all Monday. After firefighters in Kirkland, Wash., had been quarantined, Microsoft executives began talking with their peers at other companies. “Amy Hood, Microsoft’s finance chief, spoke with Luca Maestri, her counterpart at Apple.”
That’s it. It didn’t say what they discussed. Presumably they compared notes on preparedness at their respective behemoths. It’s safe to assume Hood asked Maestri about friends and family in Italy.
The details aren’t important. What matters is that the two companies, once bitter enemies, were communicating, collaborating, and cooperating at a time when such efforts matter far more than competing.
We all must follow their lead. When I make a critical comment about President Trump in this space, I typically get a few disapproving emails. I always respond, first by thanking folks for their feedback, and often by sharing my point of view. I made e-friends with two such readers Monday. They appreciated my willingness to engage. I appreciated their perspective.
Technology has made it easy for us to pretend social norms don’t exist. It’s simple to show rage online when you can’t look your opponent in the eye. Sometimes all it takes is empathy to remind each other we’re just people living in a difficult time.
In line at the supermarket Saturday morning, the woman in front of me couldn’t pay for her groceries because her credit or debit cards weren’t working. I know nothing about her circumstances, only that she broke down in tears and stepped aside to phone her bank. I am ashamed I didn’t offer to pay for her groceries and simply asked her to pay me back when she could.
We can all do better, and we’ll have to. Those of us old enough to remember a time when we expected dignity from our leaders and civility from each other will need to teach a younger generation what that’s like.
Please hunker down and stay safe.
Adam Lashinsky
@adamlashinsky
adam.lashinsky@fortune.com
This edition of Data Sheet was curated by Aaron Pressman.
NEWSWORTHY
Non-stop. The coronavirus outbreak is remaking business as it spreads. With online orders exploding, Amazon said it needs to hire 100,000 more warehouse and delivery workers and will raise the pay of such workers by $2 an hour. A group including Facebook, Reddit, and Google formed a joint campaign to block misinformation about COVID-19. Uber suspended pooled rides in North America. And unknown hackers tried to bring down the web site of the U.S. Department of Health and Human Services, but failed.
Mind if I cut in. I can't quite tell if it's pivoting exactly, but much-hyped blockchain startup Bakkt raised another $300 million of backing from investors including Microsoft, Boston Consulting Group, and its original parent, the Intercontinental Exchange. It now seems to focus on offering a mobile wallet that holds points from various loyalty rewards programs.
Scratch and sniff. Researchers at Intel designed and trained a neuromorphic chip to "recognize" 10 smells. The chip relies on inputs from 72 chemical sensors to distinguish smells in a similar process to that of the human brain.
Filling your brain. While you are looking for diversions at home, Fortune has a new podcast. CEO Alan Murray interviews other executives about leadership. Episode one features Microsoft CEO Satya Nadella and episode two has Starbucks CEO Kevin Johnson.
FOOD FOR THOUGHT
Not everyone remembers the era before everything was online, but there was plenty of pop culture before Insta and TikTok. Hannah Davies at The Guardian has the engaging story of one man's search for a popular song he heard on the radio in the 1990s that seems to have disappeared from all music services.
How exactly does a piece of music seemingly disappear from public consciousness, bypassing the hive mind that is the internet? How does a song with an obnoxiously 90s feel (one critic pinpoints it as a creation of “1997 to 1999”) fade within two decades to an inaudible footnote? Is the mystery song, in fact, an amalgam of different tunes lodged in [Tyler] Gillett’s brain, which over time have come together to make one strangely specific creation? And, if he is correct about these disparate melodies and snatches of lyrics about ice-cream sundaes and Bettie Page being from one song, then how has it remained intact in his brain for so many years while others have forgotten about its existence? (“Is there a sparser bassline? It feels busy,” Gillett asks at one point, as they recreate the song in the studio.)
ON THE MOVE
Coinbase's chief legal officer, Brian Brooks, is joining the U.S. Office of the Comptroller of the Currency, a top banking regulator, as First Deputy Comptroller after less than two years at the cryptocurrency startup...Former Evernote CEO Chris O'Neill, who also once ran Google's Canadian operations, is jumping to the VC world as a partner at Portag3 Ventures...Longtime Apple veteran Ruben Caballero, who had overseen 5G modem efforts, jumped to mystery startup Humane...Longtime Amazon veteran Maria Renz, who was vice president of delivery experience, is going to online lender Social Finance as EVP over credit card, brokerage, and bank-account businesses...D.C. nonprofit the Center for Democracy and Technology named Alexandra Reeve Givens of Georgetown Law’s Institute for Technology Law & Policy as its new CEO starting in May. She replaces Nuala O’Connor, who left for Walmart last year.
IN CASE YOU MISSED IT
Apple’s store closures are dramatic—but experts say they’ll barely nibble at its bottom line By Don Reisinger
Lockheed Martin CEO Marillyn Hewson, Fortune’s most powerful woman in business, will step down By Jen Wieczner
Computer monitors and other work-at-home essentials are in big demand in the coronavirus era By Danielle Abril
How a biotech startup working on a coronavirus cure got caught in a tug-of-war between the White House and Berlin By Christiaan Hetzner
Masks and hand sanitizer replace iPhones and perfume: Firms redeploy factories to make coronavirus supplies By Grady McGregor
A neobank founded by a former Intuit CEO has raised $26 million By Lucinda Shen
(Some of these stories require a subscription to access. There is a 50% discount for our loyal readers if you use this link to sign up. Thank you for supporting our journalism.)
BEFORE YOU GO
I couldn't decide whether to go high or low for today's final thought, so I offer both. As a worthy sequel to pizza rat, check out Egg McMuffin rat (and be sure to listen with the sound on for extra chuckles). For a bit more high-brow content, PBS's Newshour assembled a list of 13 museums that you can explore online. Alice Pike Barney’s painting Marshlands at Sundown (from the Smithsonian) seems particularly moving to me at this murky point in our history.
Aaron Pressman
@ampressman
aaron.pressman@fortune.com


fortune--2020-03-17--The rise of social distancing during coronavirus pandemic pushes Zoom founder’s net worth up by $2 b

The rise of social distancing during coronavirus pandemic pushes Zoom founder’s net worth up by $2 billion in 2020

Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.
The continuing rout in global stocks obliterated about $4 trillion of market value Monday, but one billionaire is managing to avoid the onslaught as social distancing becomes the norm.
Eric Yuan, the founder of Zoom Video Communications Inc., added $20 million to his net worth Monday while the S&P 500 plunged 12%. Shares of the video-conferencing company climbed 0.4%, boosting its year-to-date gain to 58%. They advanced an additional 3.5% in early trading Tuesday after Needham & Co. analyst Richard Valera recommended that investors buy the stock.
Yuan, 50, has added $2 billion to his net worth in 2020, the fourth-biggest increase in the Bloomberg Billionaires Index, a ranking of the world’s 500 richest people. After starting the year unranked, he’s now at No. 274 on the list with a $5.6 billion fortune.
Eric Yuan, the founder of Zoom Video Communications Inc., added $20 million to his net worth Monday, bringing his fortune to a reported $5.6 billion. Michael Short—Bloomberg/Getty Images
Demand for Zoom’s software, which facilitates virtual conferences and web meetings, is exploding as the spreading virus is prompting office closures and meeting cancellations. Business conferences, college courses and even children’s playgroups have all moved online as people worldwide heed calls to stay away from one another.
Born in China, Yuan overcame eight denials on his U.S. visa application before finally making it to Silicon Valley. He came up with the idea for Zoom after repeatedly traveling 10 hours to see his girlfriend while they were college students.
The world’s 500 wealthiest lost a total of $258 billion Monday, pushing their collective losses this year to more than $1 trillion. Facebook Inc. co-founder Mark Zuckerberg, the world’s fifth-richest person, incurred the biggest one-day decline, with his fortune plunging $9 billion to $56.3 billion.
Last centibillionaire
But no one has lost more wealth so far this year than Frenchman Bernard Arnault. The chairman of luxury-goods maker LVMH ended 2019 as one of just three people with a net worth of at least $100 billion. On Monday, his fortune sank $4.6 billion, bringing his 2020 decline to $40.6 billion. He remains the world’s fourth-richest person.
Today, just one centibillionaire remains: Jeff Bezos. The Amazon.com Inc. founder ended Monday with a net worth of $105.5 billion, after shares of the retailer slid 5.4% on the day and sliced an additional $5.4 billion from his fortune.
More coronavirus coverage from Fortune:
—How to prepare your personal finances for a coronavirus recession
—The coronavirus could upend America’s business relationships to China
—The best Twitters to follow for reliable information on the coronavirus outbreak
—3 months before the coronavirus, a war game showed we weren’t ready
—How mainland China’s closest neighbors have kept coronavirus cases so low
—Couples are scrambling to prepare last-minute wedding alternatives
—SARS taught Taiwan how to contain the coronavirus outbreak
—How A.I. is aiding the coronavirus fight
Subscribe to Fortune’s Outbreak newsletter for a daily roundup of stories on the coronavirus outbreak and its impact on global business.