Week of Oct 2, 2020 Weekly Recap & The Week Ahead
In dealing with the future, we must think about two things: (a) what might happen and (b) the probability that it will happen. — Howard Mark
1. Disney Will Lay Off 28,000 Staff at Theme Parks — Walt Disney Co. said it would lay off about 28,000 employees at its domestic theme parks, making the announcement shortly after the state of California signaled that Disneyland Resort would likely have to remain closed for the foreseeable future due to Covid-19 concerns. Disneyland and California Adventure in Anaheim, Calif., remain shuttered while theme parks in Florida, Paris, Shanghai, Japan, and Hong Kong have reopened to limited capacity. The California Department of Public Health moved some counties to new “tiers” Tuesday allowing some businesses to reopen, but Disneyland’s home of Orange County did not make the cut due to a late spike in cases.
2. Boeing Readies to Consolidate Dreamliner Production to South Carolina — Boeing Co. will set plans this week to consolidate 787 Dreamliner assembly in South Carolina, people familiar with the matter said, ending production of that jetliner in Washington state as the coronavirus pandemic saps demand for aircraft. The decision carries significant implications for the Seattle-area economy and Boeing’s unionized workforce around Puget Sound. It wasn’t clear over what period of time the consolidation would play out, or how many employees might be affected by the move. Boeing could announce the plans. Furthermore, Boeing opted for a more muted come-back approach after a public scolding by the U.S. Federal Aviation Administration and private criticism from airlines over its handling of the Max crisis, the people said. With its reputation in tatters, Boeing is leaning on the FAA, pilots and airlines to assure travelers that the revamped Max is safe to fly. FAA Administrator Steve Dickson, a licensed 737 pilot, plans to flying a Max himself.
3. U.S. Airlines Started to Furloughing Employees — United Airlines, which is set to furlough about 16,000 employees, announced the move in mid-September, while urging Congress to extend the payroll support program for an additional six months. American Airlines is set to furlough about 19,000 workers. Delta and Southwest haven’t disclosed plans Relief payments from the federal government, doled out in April, were conditioned on the airlines refraining from conducting involuntary layoffs until the end of September. Delta, for instance, received more than $5 billion.
4. President Trump Tests Positive for Coronavirus — the president tweeted that he and first lady Melania Trump tested positive for the virus, a development that will upend the final month of the 2020 campaign. They plan to remain at the White House while they recover, and Mr. Trump will need to cancel in-person events in the coming weeks, possibly including the next debate against Joe Biden on Oct. 15 in Miami. Furthermore, Vice President Pence and his wife Karen both tested negative for coronavirus on Friday morning, according to a statement from Devin O’Malley, the vice president’s secretary. Pence is scheduled to have a debate with Democratic VP candidate Sen. Kamala Harris in Salt Lake City on Oct. 7.
The week ahead — Economic data from Econoday.com:
