News Roundups

Fed’s lifeline to Main Street flops, IEA cuts 2020 oil demand forecast, and more

Daily stimulus and recovery news headlines from September 16, 2020.

Fed’s Lifeline to Main Street Flops With 99.8% of Cash Untapped

It was billed as a lifeline for America’s middle-market companies seeking cash to get through the pandemic. Yet more than two months since its launch, the Federal Reserve’s Main Street Lending Program isn’t living up to expectations as few banks are willing to provide the loans.

Some of the nation’s biggest lenders have demanded such crushing terms that discussions have stalled from the get-go, while other banks have decided not to participate at all. That’s meant the take-up for the $600 billion program is just 0.2%, threatening to undercut the economic recovery and efforts to protect jobs.

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IEA cuts 2020 oil demand forecast, sees ‘treacherous’ path ahead with rising coronavirus cases

The International Energy Agency on Tuesday cut its forecast for 2020 oil demand growth, citing a “treacherous” path ahead amid weakening market sentiment and an upsurge in the number of coronavirus cases reported across the globe.

In a closely-watched monthly report, the IEA trimmed its outlook for worldwide oil demand growth to 91.7 million barrels per day. That marks a contraction of 8.4 million bpd year-on-year, more than the 8.1 million bpd contraction predicted in the Paris-based energy agency’s August report.

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Opinion: Can Airlines Avoid Another Bailout?

Airlines are staring down a Sept. 30 deadline that could determine winners and losers in the beleaguered sector. By then, they must decide whether to take out dilutive government-backed loans or try to raise funds in some other way. At the same time, all are coming to the realization that the rescue aid they’ve used to pay their idled workers will soon run out, and it looks unlikely that more is in store.

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