e-Gonomics

US ECONOMICS

ECONOMY

FED. May 13, 2020. Speech. Current Economic Issues. Chair Jerome H. Powell. At the Peterson Institute for International Economics, Washington, D.C. (via webcast)

The coronavirus has left a devastating human and economic toll in its wake as it has spread around the globe. This is a worldwide public health crisis, and health-care workers have been the first responders, showing courage and determination and earning our lasting gratitude. So have the legions of other essential workers who put themselves at risk every day on our behalf.

As a nation, we have temporarily withdrawn from many kinds of economic and social activity to help slow the spread of the virus. Some sectors of the economy have been effectively closed since mid-March. People have put their lives and livelihoods on hold, making enormous sacrifices to protect not just their own health and that of their loved ones, but also their neighbors and the broader community. While we are all affected, the burden has fallen most heavily on those least able to bear it.

The scope and speed of this downturn are without modern precedent, significantly worse than any recession since World War II. We are seeing a severe decline in economic activity and in employment, and already the job gains of the past decade have been erased. Since the pandemic arrived in force just two months ago, more than 20 million people have lost their jobs. A Fed survey being released tomorrow reflects findings similar to many others: Among people who were working in February, almost 40 percent of those in households making less than $40,000 a year had lost a job in March.1 This reversal of economic fortune has caused a level of pain that is hard to capture in words, as lives are upended amid great uncertainty about the future.

This downturn is different from those that came before it. Earlier in the post– World War II period, recessions were sometimes linked to a cycle of high inflation followed by Fed tightening.2 The lower inflation levels of recent decades have brought a series of long expansions, often accompanied by the buildup of imbalances over time—asset prices that reached unsupportable levels, for instance, or important sectors of the economy, such as housing, that boomed unsustainably. The current downturn is unique in that it is attributable to the virus and the steps taken to limit its fallout. This time, high inflation was not a problem. There was no economy-threatening bubble to pop and no unsustainable boom to bust. The virus is the cause, not the usual suspects—something worth keeping in mind as we respond.

Today I will briefly discuss the measures taken so far to offset the economic effects of the virus, and the path ahead. Governments around the world have responded quickly with measures to support workers who have lost income and businesses that have either closed or seen a sharp drop in activity. The response here in the United States has been particularly swift and forceful.

To date, Congress has provided roughly $2.9 trillion in fiscal support for households, businesses, health-care providers, and state and local governments—about 14 percent of gross domestic product. While the coronavirus economic shock appears to be the largest on record, the fiscal response has also been the fastest and largest response for any postwar downturn.

At the Fed, we have also acted with unprecedented speed and force. After rapidly cutting the federal funds rate to close to zero, we took a wide array of additional measures to facilitate the flow of credit in the economy, which can be grouped into four areas. First, outright purchases of Treasuries and agency mortgage-backed securities to restore functionality in these critical markets. Second, liquidity and funding measures, including discount window measures, expanded swap lines with foreign central banks, and several facilities with Treasury backing to support smooth functioning in money markets. Third, with additional backing from the Treasury, facilities to more directly support the flow of credit to households, businesses, and state and local governments. And fourth, temporary regulatory adjustments to encourage and allow banks to expand their balance sheets to support their household and business customers.

The Fed takes actions such as these only in extraordinary circumstances, like those we face today. For example, our authority to extend credit directly to private nonfinancial businesses and state and local governments exists only in "unusual and exigent circumstances" and with the consent of the Secretary of the Treasury. When this crisis is behind us, we will put these emergency tools away.

While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks. Economic forecasts are uncertain in the best of times, and today the virus raises a new set of questions: How quickly and sustainably will it be brought under control? Can new outbreaks be avoided as social-distancing measures lapse? How long will it take for confidence to return and normal spending to resume? And what will be the scope and timing of new therapies, testing, or a vaccine? The answers to these questions will go a long way toward setting the timing and pace of the economic recovery. Since the answers are currently unknowable, policies will need to be ready to address a range of possible outcomes.

The overall policy response to date has provided a measure of relief and stability, and will provide some support to the recovery when it comes. But the coronavirus crisis raises longer-term concerns as well. The record shows that deeper and longer recessions can leave behind lasting damage to the productive capacity of the economy.3 Avoidable household and business insolvencies can weigh on growth for years to come. Long stretches of unemployment can damage or end workers' careers as their skills lose value and professional networks dry up, and leave families in greater debt.4 The loss of thousands of small- and medium-sized businesses across the country would destroy the life's work and family legacy of many business and community leaders and limit the strength of the recovery when it comes. These businesses are a principal source of job creation—something we will sorely need as people seek to return to work. A prolonged recession and weak recovery could also discourage business investment and expansion, further limiting the resurgence of jobs as well as the growth of capital stock and the pace of technological advancement. The result could be an extended period of low productivity growth and stagnant incomes.

We ought to do what we can to avoid these outcomes, and that may require additional policy measures. At the Fed, we will continue to use our tools to their fullest until the crisis has passed and the economic recovery is well under way. Recall that the Fed has lending powers, not spending powers. A loan from a Fed facility can provide a bridge across temporary interruptions to liquidity, and those loans will help many borrowers get through the current crisis. But the recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems. Additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery. This tradeoff is one for our elected representatives, who wield powers of taxation and spending.

Thank you. I look forward to our discussion.

References

Blanchard, Olivier J., and Lawrence H. Summers (1987). "Hysteresis in Unemployment," European Economic Review, vol. 31 (February–March), pp. 288–95.
Board of Governors of the Federal Reserve System (2019), Report on the Economic Well-Being of U.S. Households in 2018 (PDF). Washington: Board of Governors, May.
Davis, Steven J., and Till von Wachter (2011). "Recessions and the Costs of Job Loss (PDF)," Brookings Papers on Economic Activity, Fall, pp. 1–72.
Martin, Robert F., Teyanna Munyan, and Beth Anne Wilson (2014). "Potential Output and Recessions: Are We Fooling Ourselves?" IFDP Notes. Washington: Board of Governors of the Federal Reserve System, November 12.
——— (2015). "Potential Output and Recessions: Are We Fooling Ourselves? (PDF)" International Finance Discussion Papers 1145. Washington: Board of Governors of the Federal Reserve System, September.
Reifschneider, Dave, William Wascher, and David Wilcox (2015). "Aggregate Supply in the United States: Recent Developments and Implications for the Conduct of Monetary Policy," IMF Economic Review, vol. 63 (May), pp. 71–109.
Romer, Christina D., and David H. Romer (1989). "Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz (PDF)," in Olivier J. Blanchard and Stanley Fischer, eds., NBER Macroeconomics Annual 1989, vol. 4. Cambridge, Mass.: MIT Press, pp. 121–84.

Notes

Board of Governors, 2019. Also see the Federal Reserve's Survey of Household Economics and Decisionmaking (forthcoming) and its Report on the Economic Well-Being of U.S. Households in 2019, Featuring Supplemental Data from April 2020 (forthcoming).
Romer and Romer, 1989.
For example, see Reifschneider, Wascher, and Wilcox, 2015; Blanchard and Summers, 1987; and Martin, Munyan, and Wilson, 2014, 2015.
Davis and Von Wachter, 2011.

FULL DOCUMENT: https://www.federalreserve.gov/newsevents/speech/files/powell20200513a.pdf

PRODUCER PRICE INDEX / INFLATION

DoL. BLS. May 13, 2020. PRODUCER PRICE INDEXES - APRIL 2020

The Producer Price Index for final demand declined 1.3 percent in April, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today. This decrease is the largest since the index began
in December 2009. Final demand prices fell 0.2 percent in March and 0.6 percent in February.
(See table A.) On an unadjusted basis, the final demand index moved down 1.2 percent for the 12
months ended in April, the largest decline since falling 1.3 percent for the 12 months ended
November 2015.

In April, over 80 percent of the decrease in the final demand index can be traced to a 3.3-percent
drop in prices for final demand goods. The index for final demand services moved down 0.2
percent.

Prices for final demand less foods, energy, and trade services fell 0.9 percent in April, the largest
decline since the index was introduced in September 2013. For the 12 months ended in April, the
index for final demand less foods, energy, and trade services moved down 0.3 percent, the first
12-month decrease.

Coronavirus (COVID-19) Pandemic Impact on April 2020 Producer Price Index Survey Data

The Producer Price Index (PPI) response rates for April were consistent with those of March

and February, and no changes in estimation procedures were necessary. Additional information

is available at www.bls.gov/bls/effects-of-covid-19-pandemic-on-bls-price-indexes.htm#PPI.

Final Demand

Final demand goods: The index for final demand goods fell 3.3 percent in April, the largest decline
since the series began in December 2009. Most of the broad-based decrease is attributable to prices
for final demand energy, which fell 19.0 percent. The indexes for final demand goods less foods and
energy and for final demand foods moved down 0.4 percent and 0.5 percent, respectively.

Product detail: Two-thirds of the April decrease in the index for final demand goods can be traced to
prices for gasoline, which dropped 56.6 percent. This is the largest decrease since the series began in
February 1947. The indexes for jet fuel, diesel fuel, basic organic chemicals, home heating oil, and
corn also moved lower. In contrast, prices for beef and veal rose 12.6 percent. The indexes for
distilled and bottled liquor (excluding brandy) and for electric power also increased. (See table 4.)

Final demand services: The index for final demand services fell 0.2 percent in April following a
0.2-percent advance in March. Leading the decrease, prices for final demand services less trade,
transportation, and warehousing moved down 0.9 percent. The index for final demand transportation
and warehousing services declined 3.5 percent. Conversely, margins for final demand trade services
increased 1.6 percent. (Trade indexes measure changes in margins received by wholesalers and
retailers.)

Product detail: Leading the April decline in the index for final demand services, prices for portfolio
management fell 12.0 percent. The indexes for airline passenger services; traveler accommodation
services; services related to securities brokerage and dealing (partial); hospital outpatient care; and
apparel, footwear, and accessories retailing also moved lower. In contrast, margins for automotive
fuels and lubricants retailing rose 41.6 percent. The indexes for inpatient care and for chemicals and
allied products wholesaling also advanced.

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month	Total final demand	Final demand less foods, energy, and trade	Final demand goods				Final demand services				Change in final demand from 12 months ago (unadj.)	Change in final demand less foods, energy, and trade from 12 mo. ago (unadj.)
Month	Total final demand	Final demand less foods, energy, and trade	Total	Foods	Energy	Less foods and energy	Total	Trade	Transportation and warehousing	Other	Change in final demand from 12 months ago (unadj.)
2019
Apr.	0.4	0.4	0.3	-0.2	1.9	0.1	0.5	0.7	0.5	0.3	2.4	2.4
May	0.2	0.3	-0.2	-0.3	-0.5	-0.1	0.3	0.0	0.6	0.4	2.1	2.4
June	-0.2	-0.1	-0.5	0.5	-3.0	-0.1	0.0	0.2	0.1	-0.1	1.6	2.1
July	0.3	0.2	0.3	0.2	1.0	0.2	0.2	0.2	0.2	0.2	1.6	1.9
Aug.	0.1	0.1	-0.3	-0.6	-1.4	0.0	0.3	0.9	-0.2	0.2	1.9	1.9
Sept.	-0.3	0.0	-0.2	0.4	-1.4	-0.1	-0.3	-0.9	-0.2	0.0	1.5	1.7
Oct.	0.3	0.0	0.5	1.4	1.8	0.1	0.2	0.5	0.4	0.0	1.0	1.5
Nov.	-0.1	0.1	0.3	1.3	-0.1	0.1	-0.3	-1.2	-0.2	0.1	1.0	1.4
Dec.(1)	0.3	0.2	0.2	-0.2	1.1	0.0	0.3	0.6	1.6	0.1	1.4	1.5
2020
Jan.(1)	0.4	0.3	0.3	0.0	0.2	0.3	0.4	0.8	-1.2	0.4	2.1	1.5
Feb.	-0.6	-0.1	-0.9	-1.6	-3.6	-0.1	-0.3	-0.7	-0.6	-0.1	1.3	1.4
Mar.	-0.2	-0.2	-1.0	0.0	-6.7	0.2	0.2	1.4	-3.3	0.0	0.7	1.0
Apr.	-1.3	-0.9	-3.3	-0.5	-19.0	-0.4	-0.2	1.6	-3.5	-0.9	-1.2	-0.3
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2019 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Commodity Type

Within intermediate demand in April, prices for processed goods fell 3.7 percent, the index for
unprocessed goods dropped 13.7 percent, and prices for services declined 1.6 percent. (See tables B and
C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand
declined 3.7 percent in April, the largest drop since falling 4.1 percent in December 2008. Seventy
percent of the broad-based April decrease can be attributed to prices for processed energy goods, which
fell 15.1 percent. The indexes for processed materials less foods and energy and for processed foods and
feeds moved down 1.5 percent and 0.1 percent, respectively. For the 12 months ended in April, prices for
processed goods for intermediate demand declined 7.3 percent, the largest decrease since a 7.7-percent
drop in the 12 months ended October 2015.

Product Detail: A major factor in the April decrease in prices for processed goods for intermediate
demand was the index for diesel fuel, which dropped 27.8 percent. Prices for gasoline, basic organic
chemicals, jet fuel, residual fuels, and plastic resins and materials also moved lower. Conversely, the
index for beef and veal jumped 12.6 percent. Prices for industrial electric power, and for distilled and
bottled liquor (except brandy) also rose. (See table 5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate
demand moved down 13.7 percent in April, the largest decline since falling 15.4 percent in October 2008.
Sixty percent of the broad-based April decrease was the result of a 27.5-percent drop in prices for
unprocessed energy materials. The indexes for unprocessed foodstuffs and feedstuffs and for unprocessed
nonfood materials less energy also moved down, 9.7 percent and 4.3 percent, respectively. For the 12
months ended in April, prices for unprocessed goods for intermediate demand decreased 28.2 percent, the
largest decline since dropping 31.7 percent in the 12 months ended September 2009.

Product Detail: Nearly half of the April decrease in the index for unprocessed goods for intermediate
demand can be traced to a 48.9-percent drop in prices for crude petroleum. The indexes for slaughter
chickens, natural gas, corn, iron and steel scrap, and slaughter barrows and gilts also moved lower. In
contrast, prices for wastepaper jumped 50.4 percent. The indexes for slaughter cows and bulls and for
wheat also advanced.

Table B. Monthly and 12-month percent changes in selected intermediate demand price indexes for goods by commodity type, seasonally adjusted
Month	Processed goods for intermediate demand					Unprocessed goods for intermediate demand
Month	Total	Foods and feeds	Energy goods	Less foods and energy	Total, change from 12 months ago (unadj.)	Total	Foodstuffs and feedstuffs	Energy materials	Nonfood materials less energy	Total, change from 12 months ago (unadj.)
2019
Apr.	0.1	0.6	0.8	-0.1	0.9	1.6	4.2	1.1	-2.2	-3.3
May	-0.5	-0.5	-1.3	-0.2	-0.7	-3.0	-2.0	-3.4	-3.7	-8.2
June	-1.0	-0.2	-4.2	-0.3	-2.3	-3.0	-0.5	-6.5	-0.6	-10.0
July	0.1	0.1	1.1	-0.2	-2.3	1.4	0.4	2.0	1.5	-9.7
Aug.	-0.5	0.3	-1.4	-0.3	-3.0	-1.6	-0.5	-3.1	-0.6	-7.7
Sept.	-0.1	0.8	-0.5	-0.2	-3.5	0.0	-0.9	1.5	-0.9	-8.9
Oct.	0.3	0.4	0.1	0.3	-3.8	0.3	5.4	-4.1	-0.8	-11.2
Nov.	0.2	1.4	1.4	-0.2	-2.9	3.1	0.6	7.8	-0.1	-5.1
Dec.(1)	-0.1	0.0	0.5	-0.2	-1.7	1.2	0.5	0.8	3.1	-7.3
2020
Jan.(1)	-0.2	-0.2	-1.0	0.1	-1.0	-0.5	-0.2	-4.2	5.3	-3.2
Feb.	-0.9	-0.6	-4.0	-0.2	-2.1	-7.7	-5.8	-13.6	-1.5	-8.2
Mar.	-1.1	-0.8	-5.9	-0.1	-3.7	-8.0	-3.6	-19.1	1.3	-15.4
Apr.	-3.7	-0.1	-15.1	-1.5	-7.3	-13.7	-9.7	-27.5	-4.3	-28.2
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2019 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: The index for services for intermediate demand moved down
1.6 percent in April, the largest decline since the index began December 2009. Leading the decrease,
prices for services less trade, transportation, and warehousing for intermediate demand fell 2.0
percent. In addition, the index for transportation and warehousing services for intermediate demand
moved down 1.4 percent, and margins for trade services for intermediate demand decreased 0.4
percent. For the 12 months ended in April, the index for services for intermediate demand declined
1.2 percent, the first 12-month decrease for this index.

Product Detail: Over a third of the April decrease in the index for services for intermediate demand
can be traced to prices for portfolio management, which dropped 12.0 percent. The indexes for
services related to securities brokerage and dealing (partial), business loans (partial), television
advertising time sales, airline passenger services, and machinery and equipment parts and supplies
wholesaling also fell. Conversely, margins for automotive fuels and lubricants retailing jumped 41.6
percent. Prices for temporary help services and for arrangement of freight and cargo transportation
also increased.

Table C. Monthly and 12-month percent changes in selected intermediate demand price indexes for services by commodity type, seasonally adjusted
Month	Services for intermediate demand
Month	Total	Trade	Transportation and warehousing	Other	Total, change from 12 months ago (unadj.)
2019
Apr.	0.4	1.1	0.4	0.3	3.1
May	0.1	-0.6	0.4	0.2	2.8
June	0.0	-0.1	0.2	0.0	2.6
July	0.1	0.2	0.4	0.0	2.3
Aug.	0.4	1.4	0.2	0.2	2.7
Sept.	0.2	1.0	0.2	0.0	2.5
Oct.	-0.6	-0.8	0.1	-0.6	1.4
Nov.	-0.1	-0.3	-0.1	-0.1	1.3
Dec.(1)	0.5	1.0	0.7	0.3	1.7
2020
Jan.(1)	0.1	0.4	-0.4	0.1	1.7
Feb.	-0.1	-0.4	-0.2	0.0	1.4
Mar.	-0.1	0.7	-1.3	-0.1	1.0
Apr.	-1.6	-0.4	-1.4	-2.0	-1.2
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2019 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand fell 1.8 percent in
April, the largest decrease since the index began in December 2009. Prices for total goods inputs
to stage 4 intermediate demand moved down 1.9 percent, and the index for total services inputs
declined 1.8 percent. (See table D.) Decreases in the indexes for diesel fuel, portfolio
management, gasoline, business loans (partial), machinery and equipment parts and supplies
wholesaling, and services related to securities brokerage and dealing (partial) outweighed
increases in the indexes for gross rents for retail properties, beef and veal, and chemicals and
allied products wholesaling. (See table 6.) For the 12 months ended in April, prices for stage 4
intermediate demand declined a record 1.9 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand decreased a record 5.1
percent in April. Prices for total goods inputs to stage 3 intermediate demand dropped 9.7 percent,
and the index for total services inputs moved down 1.1 percent. Falling prices for gasoline, jet fuel,
slaughter chickens, diesel fuel, basic organic chemicals, and services related to securities brokerage
and dealing (partial) outweighed increases in the indexes for automotive fuels and lubricants
retailing, slaughter cows and bulls, and chemicals and allied products wholesaling. For the 12 months
ended in April, prices for stage 3 intermediate demand declined 8.6 percent, the largest 12-month
drop since the index entered calculation in December 2009.

Stage 2 intermediate demand: Prices for stage 2 intermediate demand declined 4.7 percent in April,
the largest decrease since the index entered calculation in December 2009. Prices for total goods
inputs to stage 2 intermediate demand dropped 9.5 percent, and the index for total services inputs
moved down 1.7 percent. Falling prices for crude petroleum, natural gas, portfolio management,
services related to securities brokerage and dealing (partial), basic organic chemicals, and television
advertising time sales outweighed increases in the indexes for temporary help services, automotive
fuels and lubricants retailing, and wastepaper. For the 12 months ended in April, prices for stage 2
intermediate demand declined 10.3 percent, the largest decrease since a 12.0-percent drop in the 12
months ended September 2015.

Stage 1 intermediate demand: The index for stage 1 intermediate demand fell 4.6 percent in April,
the largest decrease since the index began in December 2009. Prices for total goods inputs to stage 1
intermediate demand declined 6.9 percent, and the index for total services inputs moved down 1.8
percent. Falling prices for diesel fuel, basic organic chemicals, gasoline, iron and steel scrap, crude
petroleum, and business loans (partial) outweighed increases in the indexes for wastepaper,
automotive fuels and lubricants retailing, and chemicals and allied products wholesaling. For the 12
months ended in April, prices for stage 1 intermediate demand declined 8.8 percent, the largest
decrease since dropping 9.4 percent in the 12 months ended October 2015.

Table D. Monthly percent changes in selected intermediate demand price indexes by production flow, seasonally adjusted
Month	Stage 4 intermediate demand			Stage 3 intermediate demand			Stage 2 intermediate demand			Stage 1 intermediate demand
Month	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs
2019
Apr.	0.3	0.1	0.6	1.0	1.7	0.3	0.4	0.2	0.5	0.0	-0.5	0.6
May	-0.1	-0.3	0.1	-0.3	-0.6	0.0	-0.5	-1.7	0.4	-1.0	-1.7	0.0
June	-0.2	-0.4	0.1	-0.9	-2.0	0.2	-1.3	-2.8	-0.3	-1.2	-2.3	-0.1
July	0.3	0.4	0.2	-0.1	-0.2	0.1	0.4	0.6	0.2	0.3	0.5	-0.2
Aug.	0.1	-0.4	0.6	0.1	-0.4	0.5	-0.5	-1.4	0.3	-0.4	-1.0	0.7
Sept.	0.1	0.1	0.2	-0.3	-0.9	0.3	0.3	0.5	0.1	-0.2	-0.5	0.3
Oct.	-0.2	0.2	-0.6	0.5	1.6	-0.5	-0.7	-0.9	-0.5	-0.2	0.3	-0.8
Nov.	0.1	0.3	-0.1	0.0	0.3	-0.2	1.1	2.4	0.2	0.2	0.6	-0.5
Dec.(1)	0.3	0.2	0.6	0.3	0.3	0.5	0.3	0.0	0.5	0.7	0.7	0.7
2020
Jan.(1)	0.1	-0.1	0.2	-0.1	-0.3	0.0	-0.5	-1.3	0.0	0.2	0.5	-0.1
Feb.	-0.4	-0.5	-0.3	-1.4	-2.8	-0.2	-2.1	-5.4	0.2	-1.6	-2.5	-0.5
Mar.	-0.3	-0.4	0.0	-1.4	-2.9	0.2	-2.6	-6.3	-0.1	-1.2	-2.2	-0.2
Apr.	-1.8	-1.9	-1.8	-5.1	-9.7	-1.1	-4.7	-9.5	-1.7	-4.6	-6.9	-1.8
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for December 2019 have been revised to reflect the availability of late reports and corrections by respondents.

FULL DOCUMENT: https://www.bls.gov/news.release/pdf/ppi.pdf

INTERNATIONAL TRADE

DoC. May 4, 2020. Trade enforcement. U.S. Secretary of Commerce Wilbur Ross to Initiate Section 232 Investigation into Imports of Laminations and Wound Cores for Incorporation into Transformers, Electrical Transformers, and Transformer Regulators

U.S. Secretary of Commerce Wilbur Ross announced he will initiate an investigation into whether laminations for stacked cores for incorporation into transformers, stacked and wound cores for incorporation into transformers, electrical transformers, and transformer regulators are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security. The decision to launch an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, follows inquiries and requests from multiple members of Congress as well as industry stakeholders. As required by law, Secretary Ross will send a letter to Secretary of Defense Mark Esper informing him of the investigation. Secretary Ross will also notify other relevant executive branch officials.

“The Department of Commerce will conduct a thorough, fair, and transparent review to determine the effects on the national security from imports of laminations for stacked cores for incorporation into transformers, stacked and wound cores for incorporation into transformers, electrical transformers, and transformer regulators,” said Secretary Ross.

Transformers are part of the U.S. energy infrastructure. Laminations and cores made of grain-oriented electrical steel are critical transformer components. Electrical steel is necessary for power distribution transformers for all types of energy – including solar, nuclear, wind, coal, and natural gas – across the country. An assured domestic supply of these products enables the United States to respond to large power disruptions affecting civilian populations, critical infrastructure, and U.S. defense industrial production capabilities.

The investigation, to be conducted by the Department’s Bureau of Industry and Security, will provide the opportunity for public comment. A notice will be published shortly in the Federal Register.

Trade Enforcement: https://www.commerce.gov/issues/trade-enforcement

DoC. May 6, 2020. U.S. Secretary of Commerce Wilbur Ross Joins Board Meeting of the Alliance for Automotive Innovation

Today, U.S. Secretary of Commerce Wilbur Ross joined the teleconference board meeting of the Alliance for Automotive Innovation. Secretary Ross and the Automotive Innovation board members discussed the Administration and automotive industry’s responses to current challenges facing the automotive industry, as well as the industry’s efforts to support domestic supply chain and personal protection equipment needs due to COVID-19. The Department has been working closely with the government of Mexico to help align plant closures and operations to support restarting U.S. manufacturing plants as soon as it is safe.

“Supporting America’s automotive manufacturing sector and its workforce is a top priority for the Trump Administration,” said Commerce Secretary Wilbur Ross. “As we turn our attention to the President’s goal of safely reopening the U.S. economy, I was delighted to spend time today with some of the best people in the auto business to learn how the Department can support their efforts. I also took the opportunity to thank the industry for their amazing work to temporarily shift production at several auto plants to the manufacture of health and safety products that are critical for fighting this pandemic. We look forward to continuing our work with the members of the Alliance for Automotive Innovation to help ensure the viability of both domestic and cross-border supply chains that are critical to the success of America’s auto industry.”

“As a critical driver of the US economy, the auto industry appreciates the opportunity to update Secretary Ross on the state of the industry and our efforts to help the nation during this COVID 19 crisis,” said Mark Reuss, President of General Motors. “Our focus is on the health and safety of our customers, employees and communities, and on preparing to restart operations in a safe and sustainable way.”

“As we begin the process to safely re-open U.S. manufacturing, one of the biggest challenges we’ve had is balancing our top goal of protecting our employees and partners while re-establishing our supply chain. The Commerce Department’s global markets team has been tremendously helpful in that process,” said John Bozzella, President and CEO of the Alliance for Automotive Innovation. “We look forward to continuing to partner with Secretary Ross and others in the Administration and Congress to re-engage our supply chains and re-start this critical industry. To get the U.S. economy up and running again, we’re going to have to get the U.S. auto industry up and running again. We are key to the American comeback.”

DoC. May 6, 2020. Trade enforcement. U.S. Department of Commerce to Initiate Section 232 Investigation into Mobile Crane Imports

U.S. Secretary of Commerce Wilbur Ross announced today that the Department will initiate an investigation into whether the quantities or circumstances of mobile crane imports into the United States threaten to impair the national security. This decision follows a petition filed by domestic producer, The Manitowoc Company, Inc. (Manitowoc), on December 19, 2019, requesting that the Department of Commerce launch an investigation into mobile crane imports under Section 232 of the Trade Expansion Act of 1962, as amended. The investigation, to be conducted by the Department’s Bureau of Industry and Security, will provide the opportunity for public comment once the rule is posted in the Federal Register.

“We will conduct this review thoroughly and expeditiously,” said Secretary Ross. “This investigation will help determine whether mobile cranes are being imported in such quantities or under such circumstances as to threaten to impair U.S. national security.”

Manitowoc alleges that increased imports of low-priced mobile cranes, particularly from Germany, Austria, and Japan, and intellectual property (IP) infringement by foreign competition,have harmed the domestic mobile crane manufacturing industry.The Department of Homeland Security has identified mobile cranes as a critical industry because of their extensive use in national defense applications, as well as in critical infrastructure sectors.

The petitioner claims the low-priced imports and IP infringement resulted in the closure of one of its two production facilities in the United States and eliminated hundreds of skilled manufacturing jobs in Wisconsin. Manitowoc cites the U.S. International Trade Commission’s (USITC) Dataweb to note that imports of mobile cranes increased 152% between 2014 and 2019, and a 2015 finding that a Chinese manufacturer misappropriated six trade secrets and infringed on a patent, resulting in the USITC banning the sale of a Chinese crane in the United States.

DoC. May 7, 2020. Fisheries and aquaculture. Statement From Secretary of Commerce Wilbur Ross on President Donald J. Trump's Signing of the Executive Order on Promoting American Seafood Competitiveness and Economic Growth

America is an ocean nation with the laws, the resources, the tools, and the expertise to be a seafood superpower. Unfortunately and unnecessarily, our country overwhelmingly relies on imports to meet our seafood demands. Today, President Trump took bold action to secure America’s place as a seafood superpower by removing unnecessary regulations that restrict our seafood industry. This action allows for job creation that will put Americans back to work while prioritizing delivery of safe, sustainable, and healthy food on American tables. Thank you to President Trump for your leadership on this and for putting American fishermen first.

→ Executive Order on Promoting American Seafood Competitiveness and Economic Growth: https://www.whitehouse.gov/presidential-actions/executive-order-promoting-american-seafood-competitiveness-economic-growth/

CORONAVIRUS

THE WHITE HOUSE. May 12, 2020. PRESS BRIEFINGS. HEALTHCARE. Press Briefing by Press Secretary Kayleigh McEnany. James S. Brady Press Briefing Room

MS. MCENANY: Hello, everyone. I want to highlight three critical aspects of President Trump’s response to the coronavirus that have exceeded the media’s expectations and should inspire confidence in every American across this country. Rest assured the Trump administration is working tirelessly to defeat the invisible enemy.

First, contrary to some media pronouncements, the United States did not need the 1 million ventilators thus far that the media said we were in dire need of. In fact, it’s encouraging to be able to say that every single American who has needed a ventilator has received a ventilator. And this administration has managed to pe- — procure, excuse me, 100,000 ventilators to be manufactured in 100 days. That’s extraordinary. That’s three times the amount produced in the average year.

Likewise, there was some concern about N95 respirators, but the Trump administration has now shipped over 90 million N95 respirators. Once again, that is more than three times the average healthcare industry consumption of N95 restorators [sic] — respirators in the typical year.

Finally, the U.S. now leads the world in testing. For weeks, the media cited South Korea as being the gold standard for testing. But as it stands, we are now testing at a higher rate per capita than South Korea. And, in fact, as this chart is going to show you, in all 50 states we are now testing at a higher rate per capita than South Korea. So a state in this country is testing at a higher rate per capita than the entire country of South Korea. That’s pretty extraordinary, I would say.

Now I would like to provide the American people with an update on the Trump administration’s support for underserved communities. As the President has said, this country is at war with the invisible enemy. And while we all fight the virus as one united American people, it is a fact that this virus disproportionately has affected those in medically underserved communities, and therefore the President has committed to delivering economic support and quality care for individuals in distressed communities.

The Trump administration, as I announced last week, distributed $12 billion in provider relief payments to 395 hospitals across the country that have been harded [sic] — hardest hit by the coronavirus. Many of these hospitals were in underserved communities. And to ensure even more funding to these communities, $2 billion of that overall funding was specifically targeted to hospitals in proportion to the amount of care they provide for low-income and uninsured patients.

Additionally, the Trump administration is investing nearly $2 billion in community health centers to help their 28 million patients in medically underserved areas that receive care and the testing they need. That’s what this funding is intended for. And additionally, there’s $583 million awarded to 1,385 health centers in all 50 states, the District of Columbia, and the eight U.S. territories specifically geared towards testing.

These health centers currently provide 100,000 tests per week, and 59 percent of the patients tested last week were from minority communities.

Finally, under the Paycheck Protection Program, the Trump administration has done extensive outreach to the community development financial institution funds across the country. These are known as CDFIs, and they support revitalization in distressed communities. In the second round of PPP, 100,000 loans have been distributed to CDFIs and to MDIs, which are known as minority deposit institutions. These have amounted to about $6.2 billion.

And finally, 570,723 loans have been issued to smaller lenders and non-banks, and these loans have amounted to $29.9 billion. President Trump will continue to fight for the health, safety, and economic wellbeing of all Americans, especially those impacted in low-income communities and disadvantaged communities.

And with that, I’ll take questions.

Yes.

Q President Trump yesterday said the U.S. had prevailed on testing, but today we heard from senators, both Democratic and Republican, who say that’s not the case. Senator Lamar Alexander, a Republican, says, “What our country has done so far in testing is impressive but not nearly enough.” Senator Patty Murray, a Democrat, said, “We need dramatically more testing. It’s unacceptable we…don’t have a national strategic plan.”

What’s the White House response?

MS. MCENANY: Well, first, I would note the words of Dr. Anthony Fauci, which is this, “We will have, and there will be enough tests to allow us to take this country safely through phase one.”

I’ve sat in the task force meetings where Admiral Giroir has talked to governors and literally pulled out his chart and said: “Governor X, here is your plan and your request for testing in order to safely reopen. I can assure you that that will be satisfied this month.”

So I have seen those meetings take place. I can assure the American people, in line with what Dr. Fauci has said, we do have enough for phase one. By the end of the week, we’ll be able to say that we’ve conducted 10 million tests. You know, we went from doing 150,000 tests per week to now testing about 300,000. That’s an extraordinary effort, not to — also note that that’s two times what other countries are doing when you look at America’s testing. I’d say that that’s pretty impressive and that’s a testament to the work of this administration and the hard work of the private sector.

Q Kayleigh, two about reopening schools and also vaccines, if you don’t mind. First of all, reopening schools: There were a lot of questions today up on the Hill about when indeed that can happen. When will the White House, and will the White House, issue guidance, benchmarks for various communities on when that can happen and how soon that can happen? There’s a lot of concerned parents, as you know, across the country.

MS. MCENANY: Yeah, well, you know, in our guidelines to safely reopen that are data driven, it is phase three where there is an outline to beginning to open schools. So, currently, I’d direct you to our guidance that currently exists. And there is that CDC guidance that is in the works that is forthcoming that will provide additional details.

Q Okay. And with regard to vaccines, the question was asked: When and if a vaccine becomes available, regardless of income, can the President ensure that everybody will get the vaccine regardless of income?

MS. MCENANY: Look, the President will go to great efforts to ensure that. I don’t want to get ahead of any announcement on his part, but I would say this: that when it came to testing, there was that same question, “What if I’m uninsured and don’t have the ability to afford a test?” This President, before it was even addressed in Congress, called in the private sector and got companies to say, “Yes, we will cover both treatment, and we will cover testing.” And then, eventually, that was inscribed into law.

So this President, before it was even an issue on the Hill, took great measures with testing, and he will do the same for vaccines. And I would just note, as Dr. Fauci said on the Hill today, there are eight vaccine candidates. And on January 10th, we received the genetic sequence. The 11th, there was a plan developed. The 14th, development began. And 62 days later, we entered phase one clinical trials for a vaccine, which is the fastest ever — in Dr. Fauci’s knowledge, at least. So that’s a pretty good pace that I think we’re on to getting that vaccine.

Q Is the President working with pharmaceutical companies? He met with executives back in April. Will he work with them, encourage them, to make sure that vaccines are affordable to everyone?

MS. MCENANY: Absolutely. There’s no doubt about it.

Yes, Weijia.

Q Kayleigh, thank you and welcome. I haven’t had a chance to —

MS. MCENANY: Thank you.

Q — say that in this room. I have a couple of questions. First, reopening. Dr. Fauci today stressed many times that reopening without following the federal guidelines and the gating criteria could lead to more outbreaks and could turn back the clock. Does President Trump still believe in these federal guidelines? And if so, why isn’t he urging states to follow them instead of asking them to move quickly to reopen?

MS. MCENANY: Well, he has encouraged states to follow the guidelines. That’s still consistently our recommendation today, that you should follow the phased approach to reopening as outlined in the data.

I do want to stress, as the President has stressed, that we do want to reopen this country because there are consequences that run the other way when we stay closed down as a country, and I want to run through a few of those with you.

A hotline run by the Substance Abuse and Mental Health Services saw a 1,000 percent increase in responses during April, as we kept this country closed. Epic’s data said appointments for screening for cancer of the cervix, colon, and breast were down 86 percent and 94 percent in March. There are real consequences for that.

I’m a BRCA2 — I carry a BRCA2 mutation, so I was someone who was regularly screened for breast cancer until I got my mastectomy. And when I went to my cancer hospital for screening, I didn’t see as many people in the halls.

And that is quite frightening because the consequence of that is this: According to the IQVIA Institute for Human Data Science, a total of 80,000-plus diagnoses of five common cancers in the United States are protected — are projected to be missed or delayed during the three-month period of early March to early June, which is why this President has always said, “Go to your doctor. Do your screenings.” There’s a way to safely do this. If you feel chest pain, go to your doctor. We can’t scare people from going to hospitals. It’s a consequence of staying closed, though, when people are scared. They’re scared to even go to their doctor, and there are consequences for that.

And finally, I would just point out a recent CNN article from Friday noted a national public health group that warned as many as 75,000 Americans could die because of drug or alcohol misuse and suicide as a result of the coronavirus pandemic.

So there are consequences to us staying closed. And it’s why I believe it was eight medical groups came out with a statement — eight medical groups noted concerns that some people with symptoms of heart attack, stroke, and cardiac arrest are avoiding hospitals.

So it’s why I’ve said from this podium, I think at least two times — today is the second or third — you’ve got to go to your doctor. We’ve got to encourage this country to safely reopen.

Q And on testing: Last week, you said it would be nonsensical to test all Americans. And yesterday, the administration celebrated testing 2.7 percent of the population. In order to reopen 100 percent of the country, what amount of testing does make sense to you? And what’s an alternative to testing to track and contain the virus to make people feel confident to get back to normal?

MS. MCENANY: Sure. We have to engage in strategic testing, which is what our experts have always said. Look, you know, you had Admiral Giroir, who said it’s a bad strategy to say that you need to test everyone because testing a person now just means they’re negative at this moment — a point also emphasized by Dr. Fauci. If you get a test today, that does not mean that tomorrow or the next day or the next day or the next day you might get exposed, which is why we acknowledge testing is not preventative.

What is preventative is wearing this mask. What is preventative is social distancing. What is preventative is washing your hands. These are the measures we need to take to safely reopen, and then we’ll use testing strategically for contact-tracing purposes, for example. So that’s the way it should be used and deployed, and I stand by the comment that I made earlier.

Yes.

Q Kayleigh, could you speak just a bit about the next round of coronavirus funding — the bill that the Speaker is releasing today? What provisions are no-go for the administration? What can you get behind?

MS. MCENANY: Look, I won’t get ahead of the President in negotiating, but — and I certainly won’t condition any future legislation on a certain proposal, but I will say that the President has noted a payroll tax is something that he’s looked at — not conditioning it on that, but noting that’s something he desires to see, and it’s smart policy. In fact, according to Stephen Moore and Art Laffer, this means, quote, “Every worker in America would get a substantial pay raise.”

And what is so promising about the payroll tax is that it’s a regressive tax, so the lowest-wage workers are, in fact, the ones who would be most helped because they pay more payroll tax than they do income tax.

So that’s something the President has mentioned, not necessarily as a condition. I won’t negotiate here with Speaker Pelosi, but I encourage her to work with the President to help these low-income individuals get this tax cut that they deserve.

Q One — just one follow-up.

MS. MCENANY: Yes.

Q I’m sorry. Michael Pack has a confirmation hearing on Thursday. Could you speak to what the President wants him to do, if confirmed, to change the way the Voice of America operates?

MS. MCENANY: Yeah, I won’t get ahead of that hearing, which is later in the week, as you noted.

Yes.

Q Thanks, Kayleigh. I wanted to ask you about the task force. The President and the Vice President said last week that there’ll be some new additions to the task force and that those would be announced on Monday. We haven’t seen those names yet. Do you have any update on that and whether there are going to, in fact, be people added to the task force?

MS. MCENANY: Yeah, there will be additions, but no announcements on that just yet.

Jeff?

Q Thanks, Kayleigh. There were some deaths in St. Petersburg today from ventilators — Russian ventilators — that exploded. I’m wondering whether you can tell us what happened to the Russian ventilators that were sent to the United States and whether those ventilators have been used, and if not, if there — or if so, if they’re being taken out of commission.

MS. MCENANY: Look, that’s the first I’m hearing of that story, so I don’t have any updates on that other than to note that we are way ahead of where we should be on ventilators, as I noted in my opening remarks. A hundred thousand ventilators in 100 days is really good, and no one has died for lack of a ventilator. But that’s the first I’m hearing of that story.

Q And let me just ask you one other question if I can, then. Yesterday, the President indicated that he might be communicating with Vice President Pence by phone for a while, while the Vice President keeps some distance. Can you give us an update on whether or not those two men are going to see each other in person or whether — I know the Vice President has been working at the White House. Is he keeping his distance from the President for a while?

MS. MCENANY: The Vice President has made the choice to keep his distance for a few days. And I would just note that that’s his personal decision to make that. As to how many days he does it, again, that’s a decision for the Vice President.

Yes.

Q I have a related question. When is the next time that we might see Dr. Birx and Dr. Fauci here in this room, giving us an update on, kind of, the status of the public health regarding coronavirus?

MS. MCENANY: Look, we’ve heard from Dr. Fauci pretty much the entirety of the day. He had a hearing, as you noted, so you’ve probably heard from him more hours today than — than you’ve ever heard from Dr. Fauci. You hear from these experts regularly out on television. And, you know, we’ll see the next time they’re up here in this capacity, but they — we certainly have valued their time and we continue to value their time.

Q It has been a while since we’ve seen Dr. Birx, though, for example. I mean, she is the coordinator of the Coronavirus Task Force. When might we see her and be able to get an update from her and be able to ask questions of her?

MS. MCENANY: Yeah, again, you know, I don’t know when in this capacity you will see her, but I talk to Dr. Birx regularly. In fact, I talked to her just before I came out here because I had some questions about some funny numbers I heard from Senator Elizabeth Warren, and she helped me to correct those numbers, which I’d like to correct here, because I think it’s unfair to the American people to give inflated case numbers and mortality numbers because it leads to those same Americans making the decision to not get a mammogram, to not have the cancer screenings they need. So I’d like to just reveal to you some information Dr. Birx just shared with me.

Elizabeth Warren erroneously said there were 25,000 new cases today. In fact, there were less than 20,000. Senator Warren said there were 2,000 deaths. In fact, there have been less than 1,000. I spoke with Dr. Birx about that.

So I’d encourage our Democratic colleagues and all Americans to make sure we’re putting out their good information, because it does have consequences.

Yes.

Q Thank you. The Justice Department is considering bringing federal hate crime charges against the two men charged with murdering Ahmaud Arbery. Does the President think that’s appropriate?

MS. MCENANY: Look, I’d refer you to the Department of Justice’s statement, which is this: That “we are considering the request to the Attorney General of Georgia and have asked that he forward to federal authorities any information that he has about the handling of that investigation. We will continue to assess all information, and we will take any appropriate action that is warranted by the facts and the law.” And the President — I’ve heard him say it to me personally — his heart breaks for the family of Ahmaud Arbery. And we want to see justice in that case, as the facts lead us to that place.

Yes.

Q Yeah. White House staff yesterday were asked to wear masks around the West Wing, except when you are seated at the desks. I can’t help but notice you’re not wearing a mask. What’s the reason for that? Is that a television thing? Or —

MS. MCENANY: No, it’s because I’m distanced from you. You’d probably have a hard time hearing from me right now, should I have a mask on, and I’d be muffled. I’m delivering information to the American people. I’m an appropriate distance away. I had a negative test today, I had a negative test yesterday, and I’m in an okay place.

Yes.

Q (Inaudible.) Go ahead.

Q On Afghanistan, if I may, President Ashraf Ghani has put his troops on an offensive footing. Has President Trump spoken to him about that? And what does it mean for the U.S.-led peace process?

MS. MCENANY: Not that I’m aware of. And I don’t have any new information on that.

Yes.

Q Thank you. We’re seeing a White House report on locations to watch who have increased cases. Can you hear me okay?

MS. MCENANY: You said locations to watch?

Q Locations to watch who have increased cases.

MS. MCENANY: Okay.

Q We’re seeing rates spiking in several spots in the Midwest, including Kansas City. Is this a concern of yours? And can you address it?

MS. MCENANY: I did speak with Dr. Birx about this just before coming out. And I think you’re referring to a document that was put out. That wasn’t a White House document; it was a FEMA document that looked at what was going on in the Midwest.

And she made the point to me — she showed me a document that showed that these are isolated outbreaks that, where there are specific instances in, let’s say, a meat-processing facility or a prison, where we isolate that there’s a problem, we’re able to contact trace and pretty quickly resolve the situation.

She pointed out that, in Des Moines, there was a dairy county meatpacking facility, and that was a good example of where we were able to do that. So I would just say that — and this was a quote — this is proof that the system is working, that we’re able to identify what the President said are “embers” and put them out. It’s the system at work.

Yes.

Q Yeah. You mentioned, as an example of the risk of not closing, people not going to medical appointments. How do you extend that argument to restaurants, nail salons, you know, barbershops, and beauty — are those the kind of the essential things you’re talking about?

MS. MCENANY: What I’m talking about is we have a phased plan to reopen, and you can follow those guidelines. And the restaurants are in phases, and the entertainment facilities you noted are in phases, as accordance with declining cases.

But as a whole, with the totality of the circumstances, when you have a society that’s shut down and people are locked in their homes and they’re isolated, it leads to the very suicide-line increased calls that I noted. It leads to drug abuse. There are consequences to eternally staying shut down, which is why you have to find the balance, which the President does in consultation with expert advice from Dr. Fauci and Dr. Birx and the task force, and he makes the best decision for America going forward.

He made the right decision to shut down the country at the time he did because there were 2.2 million lives at stake, and a lot of American lives were saved because of that decision. But at the same time, it’s a balance, which is why we put out the phased guidelines to reopening.

Q And I’d also like to ask you about a statement that Dr. Fauci made today. He said, “I think we are going in the right direction, but the right direction does not mean we have, by any means, total control of this outbreak.” How does that square with the President’s statement yesterday that we have prevailed over the outbreak?

MS. MCENANY: Well, the President made clear he was talking about testing. The fact that we can say we’re doing double that of any other country, the fact that we can put up that graph that shows South Korea as a small, little red bar of testing per capita, and every bar beside it is an American state or territory outdoing what South Korea has done — and let’s note that South Korea was the gold standard for testing.

In fact, on March 13th, The Washington Post headline was: “South Korea is doing 10,000 coronavirus tests a day. The U.S. is struggling for even a small fraction of that.” And here we are on May 11th with a Washington Post headline: “The administration keeps bragging that the U.S. testing now is better than South Korea’s was” a month ago.

So you can’t demand that we reach South Korea, and then say that we’re “bragging” when we do. This is a moment where the American private sector succeeded. This administration mobilized that testing. Every state is better off than South Korea at this moment, and that is a very good thing and something to be celebrated because it’s American innovation at its best with 92 emergency use authorizations, and it’s this administration under President Trump working.

Q But does the President agree with Dr. Fauci that we do not have total control over this outbreak?

MS. MCENANY: The President believes in the phased guidelines to reopening, which Dr. Fauci signed off on along with Dr. Birx, and we encourage every state and governor to follow.

Yes.

Q Thank you, Kayleigh. The President said on Monday that Florida has so much testing that testers are literally sitting around waiting for people and that there is a, quote, “great overcapacity.” Yet, the reality in the state is there are still widespread criticism, reports of not enough testing. And the Kaiser Family Foundation ranks Florida 24th in the country per capita when it comes to testing. So is the President being overly optimistic about the situation in Florida?

MS. MCENANY: Not in the slightest. I was actually in the Oval Office when that discussion transpired and the Governor of Florida, Governor DeSantis — who’s doing a phenomenal job — talked about that there were — there was over-testing ability at these sites. So there were extra tests. There wasn’t enough demand. There weren’t people showing up to use them all.

He said that that had happened around some sites in the state. He saw it firsthand. He’s the governor of Florida — and that’s a good thing — and we’re able to fulfill Governor DeSantis’s plan in full that he has laid out as necessary to reopening the state of Florida, which happens to be my great home state.

Yes.

Q But overall, the data does not support that, Kayleigh. So is the President just listening to the governor or is he looking at the data?

MS. MCENANY: Oh, he’s looking at the data. As I noted to you, Admiral Giroir has a chart of every single governor’s plan and has said we will fulfill every single governor’s plan. Governor DeSantis was reporting what he had seen at distinct facilities that are drive-through testing sites.

Yes.

Q With the restarting of the economies on both sides of the Canadian and U.S. border, you know how much trade between the two sides are essential for communities. Can you update us on the plans for reopening and also a timeline for reopening the border?

MS. MCENANY: Yeah, no announcements on that front today.

Yep. Chanel?

Q Thank you. With the release of the transcripts related to Adam Schiff’s Russia probe this week, do you have — is there any information you can share with us as to what the DOJ has shared with the White House on whether it is investigating Obama administration officials on this matter?

MS. MCENANY: So I don’t have any updates on that front because that’s currently a DOJ matter. But you did refer to transcripts, and I do think it’s an important moment to talk about what was in some of the transcripts that were released prior to today, so not the specific ones that you’re asking about.

But we learned from newly released transcripts a few things: We learned that what some Obama officials were saying publicly was much different than what they were saying privately. James Clapper was out there saying that he had evidence that this was worse than Watergate when, in fact, a few weeks later he was saying privately, “I never saw any direct empirical evidence that the Trump campaign or someone in it was plotting [or] conspiring with Russia.”

Samantha Power said, “I am not in possession of anything — I am not in possession and didn’t read or [any] absorb any information that came” out of the intelligence community, suggesting collusion. Ambassador Rice: “I don’t recall…intelligence or evidence to that effect.” Former Attorney General Loretta Lynch: “I can’t say that — [if] it existed or not. I don’t recall that being briefed up to me.”

So it rings the question — it brings the question to light: Why then did we have many years of investigating collusion that these Obama administration officials — never existed, they never saw any evidence of, but for three years the American people were dragged through the mud and told that their choice for the President of the United States might have been a Russian asset based on no evidence of all — at all?

This President was exonerated by the Mueller reports, and there are some real questions for these individuals who are saying one thing publicly and another thing privately.

Thank you so much. I think I got to all of you, and we’ll be back soon.

U.S. Department of State. MAY 13, 2020. Secretary Michael R. Pompeo’s Meeting with Israeli Prime Minister Netanyahu

The following is attributable to Spokesperson Morgan Ortagus:

Secretary of State Michael R. Pompeo met today with Israeli Prime Minister Benjamin Netanyahu in Jerusalem, Israel. Secretary Pompeo and Prime Minister Netanyahu discussed our nations’ ongoing efforts to mitigate the COVID-19 pandemic and counter Iran’s destabilizing influence in the region, as well as the steadfast U.S. commitment to Israel’s security.

DoS. MAY 13, 2020. Secretary Michael R. Pompeo and Israeli Prime Minister Benjamin Netanyahu Before Their Meeting. REMARKS. MICHAEL R. POMPEO, SECRETARY OF STATE. PRIME MINISTER’S RESIDENCE. JERUSALEM, ISRAEL

PRIME MINISTER NETANYAHU: Good morning. Mr. Secretary, Mike, welcome once again to Jerusalem. This visit comes a few days after the loss of your late father, Wayne. I want to express the condolences of my family to your family and of the people of Israel to you. I have to say that just reading about your father, we recognize the values that he instilled in you that are so evident in everything that you do. So please accept our condolences.

SECRETARY POMPEO: Thank you very much.

PRIME MINISTER NETANYAHU: The second point I want to say is that we so deeply appreciate the fact that this is your first trip abroad in some time, that you’re making it to Israel for six hours. I think this is a testament to the strength of our alliance, to the strength of President Trump’s commitment to the state of Israel, and to the strength of your commitment to the state of Israel and our alliance as well. So I want to thank you for that, too.

Equally, we have a lot to talk about. The first thing is the plague. The corona plague is something that challenges the entire world, our two countries and everyone else, and we’d like to talk about strengthening our cooperation, our partnerships in battling the coronavirus plague.

The second thing is that there’s something else plaguing our region, which is unremitting Iranian aggression and terror, and I want to express my appreciation for the strong position that the President and you and your administration put forward against Iran – first, by withdrawing from the dangerous Iran deal; second, by taking head on t he masters of Iranian terror; third, by going after, continuing the arms embargo against Iran that has not stopped for a minute its aggressive designs and its aggressive actions against Americans, Israelis, and everyone else in the region. So I want to express our appreciation for that and also discuss how we can continue in our partnership to combat and confront and roll back Iran’s aggression in the Middle East, in Syria, everywhere else.

The third point is that now we’re about to form a national unity government, tomorrow, I am – I think that this is an opportunity to promote peace and security based on the understandings that I reached with President Trump in my last visit in Washington, in January.

And these are all tremendous challenges and opportunities, and we can do them because we have such a – such a powerful bond that makes the alliance between Israel and the United States stand out, certainly for us but I think for many other countries looking around. There is an unbreakable bond of values and interests that has kept this alliance together but also kept it growing and growing and growing. It’s never been stronger.

Tomorrow marks 72 years from the president – the recognition of President Truman of the state of Israel, the young state of Israel, and it also marks two years from another historic decision: the recognition of Jerusalem as Israel’s capital by President Trump. I think that this brackets the tremendous partnership that we have, the friendship that we have, the great sympathies that the people of Israel and the people of America have with one another. Your trip at this time is a powerful expression of that, and I want to welcome you in this spirit to Jerusalem. Thank you, Mike. Welcome.

SECRETARY POMPEO: Thank you. Thank you very much, Mr. Prime Minister. First of all, thank you for your kind words about my father. It’s deeply appreciated. I want to express my condolences, too, for the soldier yesterday —

PRIME MINISTER NETANYAHU: Thank you.

SECRETARY POMPEO: — that was killed. It reminds us all of the importance of making sure that people all across the world know that Israel has the right to defend itself, and America will consistently support you in that effort.

You talked about this. Two years ago today we dedicated the embassy in Jerusalem. It was pretty remarkable. It seems like a long time ago; much has happened since then and much in our relationship has continued to grow in those 24 months as well, and I want to thank you for that personally in making that happen. It’s important for America, it’s important for Israel, it’s important for democracies across the world.

We’ll have this great opportunity to chat about lots of topics. I always love coming here as a person of faith. It’s fantastic. When I came down the road today I got a chance to see some of the walls of the Old City. It always reminds me of the historic nature of this place and this very special, special city that we’re in today.

We’ll certainly talk about the challenges the globe faces with COVID – Israeli technologies, Israeli medical expertise, all of the things that you and I and our teams can work on together. I know we’ll deliver good outcomes and decrease risk for people all across the world from this global pandemic. You’re a great partner. You share information, unlike some other countries that try and obfuscate and hide that information, and we’ll talk about that country, too, some.

PRIME MINISTER NETANYAHU: Well, the most important thing is actually generating the information and then sharing the information.

SECRETARY POMPEO: Yes, that’s right. Democracies do both of those incredibly well.

PRIME MINISTER NETANYAHU: That’s right.

SECRETARY POMPEO: Yes.

Second, we’ll get a chance, too, to talk about the Vision for Peace. We’re now some months on from the day that you came to Washington when President Trump announced that Vision for Peace when you were there. There remains work yet to do, and we need to make progress on that. I’m looking forward to it.

You spoke thoughtfully and candidly about Iran, as you always have. President Trump has done the same. The campaign that we have been part of to reduce the resources that the ayatollah has to inflict harm here in Israel and all across the world has borne fruit, it has been successful, and we’re going to stay at it. There is still work to do on that file as well. As you talked about, even during this pandemic the Iranians using the ayatollahs’, the regime’s resources to foment terror across the world even when the people of Iran are struggling so mightily tells you a lot about the soul of those people who lead that country.

I look forward to our visit today. I’m going to get a chance to meet with Speaker Gantz as well, and I’m really looking forward to albeit my very short stay here in Israel.

PRIME MINISTER NETANYAHU: As long as it’s a very short stay for him as the speaker, it’ll be good. (Laughter.)

SECRETARY POMPEO: Thank you, Mr. Prime Minister.

PRIME MINISTER NETANYAHU: You’re very, very welcome, as is your delegation, and thank you all for coming here today.

SECRETARY POMPEO: Great, thank you.

PRIME MINISTER NETANYAHU: Thank you. Please.

U.S. Department of State. 05/12/2020. DRL FY19 Countering Corruption Amid COVID-19. Bureau of Democracy, Human Rights, and Labor

United States Department of State
Bureau of Democracy, Human Rights and Labor (DRL)
Notice of Funding Opportunity (NOFO):
DRL FY19 Countering Corruption amid COVID-19

This is the announcement of funding opportunity number SFOP0006927

Catalog of Federal Domestic Assistance Number: 19.345

Type of Solicitation: Open Solicitation

Application Deadline: 11:59 PM EST on Friday, June 12, 2020

Funding Floor: $1,000,000

Funding Ceiling: $1,000,000

Anticipated Number of Awards: 1

Type of Award: Grant

Period of Performance: 24 – 36 months

Anticipated Time to Award, Pending Availability of Funds: 4 – 5 months

A. Project Description

The U.S. Department of State, Bureau of Democracy, Human Rights and Labor (DRL) announces an open competition for organizations interested in submitting applications in support of the goal of combatting corruption arising in response to the COVID-19 pandemic.

Countries around the world are grappling with unprecedented challenges as they tackle the COVID-19 pandemic. While the first responsibility of every government is to care for its people, an effective response to a public health crisis like COVID-19 requires government transparency and accountability, the full participation of civil society, and access to information. Corruption in particular thrives during times of crisis and makes governments and the international community less able to respond swiftly and effectively. Governments and international donors are now providing unprecedented sums of money to support COVID-19 response efforts, sometimes without necessary anti-corruption safeguards. Emergency procurement processes and the suspension of oversight measures in many cases are further heightening corruption risks. This is providing new opportunities for corrupt government officials and criminal organizations to enrich themselves at the expense of public health, as well as raising the potential for public officials to become involved in bribery and corruption by virtue of their position and influence, which can further erode public trust in government and undermine the COVID-19 response.

DRL seeks a project to enhance transparency and empower civil society and media to monitor and promote accountability of government responses to COVID-19. A competitive applicant will be able to work across multiple countries with a consortium of civil society organizations, media entities, and anti-corruption advocates to support enhanced transparency and accountability in public procurement processes; take advantage and build upon recently-launched multilateral and multi-stakeholder initiatives to promote government transparency in government responses to COVID-19, including the “Open Response + Open Recovery” campaign initiated by the Open Government Partnership; increase the effectiveness of civil society-led advocacy to promote accountability of government response and the use of public funds to combat COVID-19; strengthen existing national and regional anti-corruption frameworks and government oversight mechanisms; and expand space for freedom of expression and access to information including by protecting corruption whistleblowers from criminal prosecution, arrest, and other forms of retaliation.

A competitive project will demonstrate substantial experience with anti-corruption programming, including on open government and public procurement issues; proven connections to a range of anti-corruption advocates and organizers, including local organizations, investigative media entities, and civil society organizations; and capacity to administer sub-grants in varied contexts to support national and transnational transparency and anti-corruption advocacy. DRL seeks a project that includes a responsive small grants component to support innovative anti-corruption initiatives that advance the outcomes outlined above in order to ensure local buy-in. Other illustrative project activities can include:

Supporting civil society and media to foster public demand for accountability, including by shedding light on corrupt practices and engaging citizens and others regarding its impact;
Mobilizing local civil society to advocate for transparent procurement standards and compliance with anti-corruption and competition laws;
Advocating for the inclusion of transparency and anti-corruption measures in COVID-19-related emergency relief efforts to ensure resources go to support those most vulnerable and at risk;
Partner with governments to enhance measures intended to increase transparency in public procurement;
Promoting dialogue and joint actions among civil society, local communities, and other relevant stakeholders to strengthen community oversight and accountability of government response to COVID-19;
Identify areas where existing procurement processes and government response to COVID-19 are inadequate to safeguarding against corruption and work with civil society, government, and regional and international experts to address those weaknesses.

Where appropriate, competitive proposals may include:

Opportunities for beneficiaries to apply their new knowledge and skills in practical efforts;
Solicitation of feedback and suggestions from beneficiaries when developing activities in order to strengthen the sustainability of programs and participant ownership of project outcomes;
Input from participants on sustainability plans and systematic review of the plans throughout the life of the project, with adjustments made as necessary;
Inclusion of vulnerable populations;
Joint identification and definition of key concepts with relevant stakeholders and stakeholder input into project activities;

Systematic follow up with beneficiaries at specific intervals after the completion of activities to track how beneficiaries are retaining new knowledge as well as applying their new skills.
Activities that are not typically allowed include, but are not limited to:

The provision of humanitarian assistance;
English language instruction;
Development of high-tech computer or communications software and/or hardware;
Purely academic exchanges or fellowships;
External exchanges or fellowships lasting longer than six months;
Off-shore activities that are not clearly linked to in-country initiatives and impact or are not necessary per security concerns;
Theoretical explorations of human rights or democracy issues, including projects aimed primarily at research and evaluation that do not incorporate training or capacity-building for local civil society;
Micro-loans or similar small business development initiatives;
Initiatives directed towards a diaspora community rather than current residents of targeted countries.

FULL DOCUMENT: https://www.state.gov/drl-fy19-countering-corruption-amid-covid-19/

COUNTERTERRORISM

DoS. MAY 13, 2020. Countries Certified as Not Cooperating Fully with U.S. Counterterrorism Efforts

Yesterday, the Department of State notified Congress that Iran, North Korea, Syria, Venezuela, and Cuba were certified under Section 40A(a) of the Arms Export Control Act as “not cooperating fully” with U.S. counterterrorism efforts in 2019. This is the first year that Cuba has been certified as not fully cooperating since 2015. This certification prohibits the sale or license for export of defense articles and services and notifies the U.S. public and international community that these countries are not fully cooperating with U.S. counterterrorism efforts.

Iran: In 2019, Iran continued to be the world’s largest state sponsor of terrorism, supporting Hizballah, Palestinian terrorist groups, and other terrorist groups operating throughout the Middle East. In 2019, Iran maintained its support for various Iraqi Shia terrorist groups, including Kata’ib Hizballah (KH), Harakat al-Nujaba (HAN), and Asa’ib Ahl al-Haq (AAH). Iran’s Islamic Revolutionary Guard Corps (IRGC), a designated Foreign Terrorist Organization, has been directly involved in terrorist plotting and has killed U.S. citizens. The IRGC – most prominently through its Qods Force – has the greatest role among Iranian regime actors in directing and carrying out a global terrorist campaign.

North Korea: In 2019, four Japanese individuals who participated in the 1970 hijacking of a Japan Airline flight continued to live in the DPRK. The Japanese government also continued to seek a full account of the fate of 12 Japanese nationals believed to have been abducted by DPRK state entities in the 1970s and 1980s.

Syria: Syria has continued its political and military support for terrorist groups, including the provision of weapons and political support to Hizballah. The Assad regime’s relationship with Hizballah and Iran grew stronger in 2019 as the regime became more reliant on external actors to fight opponents and secure areas. The IRGC and IRGC-backed militias remain present and active in the country with the permission of President Bashar al-Assad.

Venezuela: In 2019, Maduro and members of his former regime in Venezuela continued to provide permissive environments for terrorists in the region to maintain a presence. While Maduro was not the recognized President of Venezuela during this period, his control within Venezuela effectively precluded cooperation with the United States on counterterrorism efforts. Individuals linked to Revolutionary Armed Forces of Colombia (FARC) dissidents (who remain committed to terrorism notwithstanding the peace accord) and the National Liberation Army (ELN) were present in the country. The U.S. Department of Justice has criminally charged Maduro and certain other former regime members with running a narco-terrorism partnership with the FARC for the past 20 years.

Cuba: Members of the ELN, who travelled to Havana to conduct peace talks with the Colombian government in 2017, remained in Cuba in 2019. Citing peace negotiation protocols, Cuba refused Colombia’s request to extradite ten ELN leaders living in Havana after the group claimed responsibility for the January 2019 bombing of a Bogota police academy that killed 22 people and injured more than 60 others. As the United States maintains an enduring security partnership with Colombia and shares with Colombia the important counterterrorism objective of combating organizations like the ELN, Cuba’s refusal to productively engage with the Colombian government demonstrates that it is not cooperating with U.S. work to support Colombia’s efforts to secure a just and lasting peace, security, and opportunity for its people.

Cuba harbors several U.S. fugitives from justice wanted on charges of political violence, many of whom have resided in Cuba for decades. For example, the Cuban regime has refused to return Joanne Chesimard, who was convicted of executing New Jersey State Trooper Werner Foerster in 1973. The Cuban Government provides housing, food ration books, and medical care for these individuals.

________________

ORGANISMS

GLOBAL ECONOMY

IMF. REUTERS. 13 DE MAIO DE 2020. Colapso do consumo está diminuindo perspectivas econômicas globais, diz FMI

WASHINGTON (Reuters) - Um colapso no consumo e outros dados recentes está diminuindo as perspectivas para a economia global, disse nesta quarta-feira a economista-chefe do Fundo Monetário Internacional, Gita Gopinath.

Gopinath disse que os dados econômicos coletados desde abril confirmam a previsão do FMI de uma contração de 3% na produção econômica global e cenários potencialmente piores.

“Parece que as perspectivas piorarão”, disse ela em uma conferência organizada pelo jornal Financial Times, acrescentando que o colapso do consumo provavelmente “levará a revisões para baixo”.

Por Andrea Shalal e David Lawder

UNCTAD. REUTERS. 13 DE MAIO DE 2020. Comércio global deve recuar mais de 25% no 2° tri, diz agência da ONU

BRUXELAS (Reuters) - O comércio mundial de bens deve cair a uma taxa nunca vista desde a crise financeira global de 2009, com as estimativas ficando cada vez mais sombrias nas últimas semanas, disse nesta quarta-feira a Conferência das Nações Unidas sobre Comércio e Desenvolvimento (Unctad, na sigla em inglês).

O comércio de mercadorias deve ter caído 3,0% no primeiro trimestre em relação aos três meses finais de 2019, e espera-se perda de 26,9% no segundo trimestre, informou a Unctad. Na comparação anual, esses números seriam de quedas de 3,3% e 29,0%, respectivamente.

“Neste momento, a forma da recuperação ainda não está clara; dependerá da rapidez com que as economias retornarão ao crescimento positivo e que sua demanda por bens comercializados suba mais uma vez”, disse o chefe de estatísticas da Unctad, Steve MacFeely.

Por Philip Blenkinsop

_________________

ECONOMIA BRASILEIRA / BRAZIL ECONOMICS

CORONAVÍRUS

FGV. 12/05/2020. Impactos do COVID-19. Panorama da infraestrutura de transportes no país após a pandemia

A pandemia já causou transformações drásticas. Uma delas foi a redução de 40% do transporte de cargas no país, deixando 75% das empresas de transporte operando no vermelho, o que pode atrasar o programa de investimentos do governo federal. Quem fala mais sobre esse panorama é o coordenador da FGV Transportes, Marcus Quintella.

VÍDEO: https://www.youtube.com/watch?v=2BDk-I-nxBQ&feature=youtu.be

INDÚSTRIA

CNI. 13/05/2020. Confiança do empresário industrial fica no menor patamar da série. A permanência do índice no seu piso histórico contribui para a paralisação dos investimentos e dificulta a recuperação da economia. Em relação aos próximos seis meses, empresários estão menos pessimistas

O Índice de Confiança do Empresário Industrial (ICEI) medido pela Confederação Nacional da Indústria (CNI), manteve-se no menor patamar da série histórica, passando de 34,5 para 34,7 pontos entre abril e maio deste ano. Nessa metodologia, a escala varia de 0 a 100 e todo dado abaixo de 50 pontos é negativo.

Com o resultado atual, o ICEI mostra a falta de confiança do empresário devido a forte contração da atividade e a elevada incerteza em razão da pandemia do coronavírus. Mas essa estabilidade é apenas aparente, pois os dois componentes do ICEI, o Índice de Condições Atuais e o Índice de Expectativas, se comportam de maneira diferente.

A percepção dos empresários em relação às condições atuais da economia brasileira continuou piorando. Quando perguntados sobre as condições correntes das empresas e da economia, o índice manteve a trajetória de queda ficando em 25,2 pontos, uma redução de 8,9 pontos em relação ao mês anterior. Desde fevereiro, o Índice de Condições Atuais acumulou 33,8 pontos de recuo.

Apesar disso, quando olha para os próximos seis meses, os empresários se mostram menos pessimistas. O Índice de Expectativas aumentou 4,8 pontos em maio, para 39,5 pontos. “Dado o tamanho da queda nos últimos meses e a distância para a linha divisória de 50 pontos, a alta pode ser atribuída a uma revisão das expectativas, passado o susto inicial”, avalia o economista da CNI, Marcelo Azevedo. A pesquisa ouviu 1.370 respondentes, sendo 554 pequenas empresas, 514 médias e 302 grandes, entre 4 e 8 de maio de 2020.

ICEI - Índice de Confiança do Empresário Industrial. Confiança do empresário segue no piso histórico

O ICEI (Índice de Confiança do Empresário Industrial) manteve-se praticamente inalterado na passagem de abril para maio de 2020, passando de 34,5 para 34,7 pontos. Com isso, o ICEI se mantém no menor patamar da série.

DOCUMENTO: https://bucket-gw-cni-static-cms-si.s3.amazonaws.com/media/filer_public/03/5c/035cc537-5a3e-4ca8-ad80-37082c7f2ada/indicedeconfiancadoempresarioindustrial_maio2020.pdf

ECONOMIA

MEconomia. SEF. SPE. REUTERS. 13 DE MAIO DE 2020. Recuperação tende a ser em formato de U, diz Waldery

BRASÍLIA (Reuters) - A recuperação da economia brasileira no pós-pandemia tende a ser em formato de U, afirmou nesta quarta-feira o secretário especial de Fazenda, Waldery Rodrigues, indicando que ela não será tão rápida como chegou a aventar o ministro da Economia, Paulo Guedes.

“Nossa recuperação tende a não ser em V. Recuperação tende a ser mais no formato em U”, afirmou ele, em coletiva virtual de imprensa.

Também presente na coletiva, o secretário de Política Econômica, Adolfo Sachsida, afirmou que isso não significa que o governo está abrindo mão da ideia de recuperação em V, mas que está colocando a situação econômica como ela é vista no momento.

Pelos cálculos da Secretaria de Política Econômica (SPE), a economia só voltará ao nível atingido no fim de 2019 em 2022.

Após a SPE ter revisado seu cálculo para o Produto Interno Bruto (PIB) neste ano a uma queda de 4,7% —patamar que considera o fim das medidas de isolamento social em maio—, o subsecretário de Política Macroeconômica, Vladimir Kuhl Teles, afirmou que, se esses esforços para frear a disseminação do coronavírus forem mantidos até o final de junho, “certamente haverá queda maior do que 6% do PIB”.

Sobre as medidas de socorro durante a crise, em especial a duração do auxílio emergencial de 600 reais, os membros da equipe econômica ressaltaram na coletiva que as ações do governo são transitórias, e que foram desenhadas para ter começo, meio e fim.

“Isso no tempo devido será analisado”, afirmou Waldery, sobre eventual extensão ou reformatação do auxílio.

Por Marcela Ayres

PR. VP. CCivil. REUTERS. 13 DE MAIO DE 2020. Programa Pró-Brasil deve ficar pronto entre agosto e setembro, diz Mourão

SÃO PAULO (Reuters) - O programa Pró-Brasil, que prevê investimentos do governo em obras públicas como forma de retomar a atividade econômica após a pandemia do coronavírus, deve ficar pronto entre agosto e setembro, disse nesta quarta-feira o vice-presidente da República, Hamilton Mourão.

“Como parte do planejamento do que podemos chamar de day after da pandemia, o governo federal tem entre seus projetos o programa Pró-Brasil, que vem sendo elaborado sob coordenação da Casa Civil, já teve as suas duas primeiras reuniões e deverá estar pronto entre o final de agosto e o início de setembro”, disse Mourão em transmissão online com a Câmara de Comércio Árabe-Brasileira.

Mourão enfatizou que o governo do presidente Jair Bolsonaro segue comprometido com o ajuste das contas públicas e disse que o Pró-Brasil prevê tanto investimentos públicos em obras, como também parcerias com a iniciativa privada.

Coordenado pelo ministro-chefe da Casa Civil, Walter Braga Netto, que assim como Mourão também vem do meio militar, o anúncio do Pró-Brasil incomodou o ministro da Economia, Paulo Guedes, que é contrário a um maior gasto do governo com obras, preferindo a concessão delas ao setor privado.

Por Eduardo Simões

MEconomia. REUTERS. 13 DE MAIO DE 2020. Governo piora projeção do PIB a um recuo de 4,7% em 2020

BRASÍLIA (Reuters) - O Ministério da Economia reviu nesta quarta-feira sua projeção para o Produto Interno Bruto (PIB) em 2020 a uma contração de 4,7%, contra alta de 0,02% vista em março, num reflexo do profundo impacto da paralisação das atividades no país por conta dos esforços para desacelerar a disseminação do coronavírus.

A revisão para um tombo superior a 4% havia sido antecipada na véspera pela Reuters.

Para a inflação medida pelo IPCA, a perspectiva agora é de alta de 1,77% em 2020, ante expectativa anterior de 3,05%.

Os novos dados fazem parte da grade de parâmetros que irá fundamentar a revisão para o comportamento das contas públicas no próximo relatório bimestral de receitas e despesas, a ser publicado até o dia 22.

No boletim Focus mais recente, economistas ouvidos pelo Banco Central pioraram sua expectativa para o PIB neste ano a uma contração de 4,11%, contra queda de 3,76% antes. Já o Fundo Monetário Internacional (FMI) previu, em abril, uma retração de 5,3% para o Brasil em 2020, enquanto o Banco Mundial estimou um recuo de 5%.

Por Marcela Ayres

MEconomia. REUTERS. 13 DE MAIO DE 2020. Ministério da Economia vê deterioração fiscal, redução de empresas e desemprego mais alto em julho
Por Isabel Versiani

BRASÍLIA (Reuters) - Em nota divulgada nesta quarta-feira, a Secretaria de Política Econômica do Ministério da Economia afirmou que os primeiros choques adversos sobre a economia brasileira do coronavírus, associados principalmente à deterioração do quadro externo, estão sendo seguidos por um segundo período de aprofundamento da crise, previsto para se encerrar em julho, que afetará quase todos os setores da economia.

“Ao final do Período 2, as contas públicas estarão deterioradas, o desemprego terá atingido parcela expressiva da população brasileira e teremos redução no número de empresas, decorrente de um grande número de falências e desistências”, diz o texto da secretaria, ao resumir o impacto econômico das medidas de distanciamento social.

Segundo o ministério, “não há como evitar o choque recessivo”, mas a expectativa é que as medidas de estímulo econômico e auxílio anunciadas pelo governo possam facilitar o processo de recuperação.

A secretaria prevê que a retomada da economia começará em agosto, se estenderá ao longo do ano de 2021 e imporá uma escolha política ao país, de avançar ou não nas reformas econômicas.

“Nesse momento, é fundamental o rápido retorno à agenda de reformas pró-mercado: consolidação fiscal e combate à má alocação de recursos”, defende o texto. “A agenda de reformas, centrada na preservação do teto dos gastos, é a garantia de que a trajetória da dívida pública será decrescente e sustentável.”

MEonomia. REUTERS. 13 DE MAIO DE 2020. Ministério da Economia estima perda adicional de R$20 bi para cada semana adicional de quarentena

BRASÍLIA (Reuters) - A Secretaria de Política Econômica (SPE) do Ministério da Economia estimou nesta quarta-feira que a perda de uma semana adicional de quarentena é de 20 bilhões de reais para a economia do Brasil.

“O impacto imediato diante das paralisações da produção e isolamento social foi calculado utilizando-se uma grande quantidade de fontes de dados para os 128 produtos da Tabela de Recursos e Usos do IBGE, permitindo avaliar a perda de faturamento por produto e atividade”, afirmou a SPE, em nota.

A secretaria ressaltou, contudo, que os custos envolvidos no isolamento devem ser muito maiores já que, quanto maior o tempo em isolamento social, maior será a perda de arrecadação das empresas e seu endividamento, promovendo um número crescente de falências e destruição de postos de trabalho.

“O mesmo efeito ocorre sobre o endividamento público, que tem gastos majorados e redução nas arrecadações. Assim, os canais de impacto da crise que afetam o médio e o longo prazo são amplificados por períodos maiores de isolamento social”, pontuou.

Por Marcela Ayres

MERCOSUL

VP. REUTERS. 13 DE MAIO DE 2020. É necessário reorganizar Mercosul para trazer Argentina de volta ao jogo, diz Mourão

SÃO PAULO (Reuters) - O vice-presidente da República, Hamilton Mourão, defendeu nesta quarta-feira a necessidade de reorganizar o Mercosul para trazer a Argentina de volta à mesa de negociações, depois de o país vizinho anunciar no mês passado que deixará de participar das conversas em andamento para futuros acordos comerciais do bloco.

Em transmissão online com a Câmara de Comércio Árabe-Brasileira, Mourão defendeu ainda que o governo do presidente Jair Bolsonaro não pode abandonar os esforços feitos por gestões anteriores de integração com os países do Mercosul, bloco formado por, além de Brasil e Argentina, Paraguai e Uruguai.

“Precisamos dar uma reorganizada aqui no Mercosul, até a própria questão política tem contaminado esse nosso relacionamento, temos que dar uma reorganizada nisso e trazer a Argentina de volta para o jogo”, disse Mourão, que enfatizou que, paralelamente ao Mercosul, o Brasil não deve deixar de lado a busca por acordos comerciais bilaterais.

“É óbvio que o Brasil se reserva ainda a sua capacidade de fazer acordos bilaterais, mas é algo que foi exaustivamente trabalhado pelos nossos antecessores, essa integração dos quatros países, eu vejo que a gente não pode abandonar pura e simples”, defendeu.

No mês passado, o governo argentino informou aos demais países do bloco que não irá participar das negociações em andamento para futuros acordos comerciais do bloco, mantendo apenas as que já estão em conclusão com a União Europeia e a Associação Europeia de Livre Comércio (EFTA).

De acordo com Mourão, o Mercosul vem negociando acordos comerciais com países como Canadá, Coreia do Sul e Cingapura. Ele defendeu que o bloco sul-americano estabeleça negociações também com países árabes.

Por Eduardo Simões

ENERGIA

OPEP. REUTERS. 13 DE MAIO DE 2020. Opep reduz projeção de demanda por petróleo ao ver recessão causada por coronavírus

LONDRES (Reuters) - A Organização dos Países Exportadores de Petróleo (Opep) cortou novamente nesta quarta-feira sua projeção para a demanda global por petróleo neste ano, à medida que espera que a pandemia de coronavírus cause uma recessão global.

O grupo, no entanto, acrescentou em seu relatório mensal que os cortes recordes de oferta promovidos em conjunto com outros produtores já estão ajudando a reequilibrar o mercado.

A Opep agora espera que a demanda global caia em 9,07 milhões de barris por dia em 2020, ou 9,1%, contra estimativa de recuo de 6,85 milhões de bpd no mês anterior.

O grupo conhecido como Opep+, que inclui membros da Opep e aliados, começou em 1° de maio a aplicar cortes recordes de produção para enfrentar o excesso de oferta, enquanto outros produtores incluindo os Estados Unidos também disseram que produzirão menos.

Essas restrições já estão entregando resultados, disse a Opep.

“Os rápidos ajustes de oferta endereçando o agudo desequilíbrio atual no mercado global já estão começando a mostrar respostas positivas, com expectativas de que o reequilíbrio ganhe ritmo nos próximos trimestres”, disse o grupo no relatório.

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LGCJ.:

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May 13, 2020