Good morning! Before you do anything else, watch this video of former vice presidential candidate and Alaska Gov. Sarah Palin scream rapping "Baby Got Back."
🎙“Earth provides enough to satisfy every man's needs, but not every man's greed.”- See who said it and why it matters at the bottom.
Illustration: Eniola Odetunde/Axios
Products from major American companies including Apple, GM, Coca-Cola and even Facebook may soon become unavailable, as the fallout from the COVID-19 outbreak backs up and shuts down global supply chains, Axios' Joann Muller, Bob Herman, Courtenay Brown and I write.
Why it matters: Consumers should brace themselves for products to go missing in the coming weeks and months — and it may not be the ones they expect.
For example: Facebook is already short on Oculus VR headsets, and Apple has reportedly told support staff that replacement iPhones for some devices will be in short supply for two to four weeks, our colleague Ina Fried notes.
Go deeper: The coronavirus hasn't upended the pharmaceutical supply yet, but the federal government is acutely aware that dozens of prescription drugs are at risk of shortage.
The big picture: The supply shortage will likely expand significantly, experts say.
Chinese supply chains may be lumbering back, but there will likely be rolling auto parts shortages in other regions of the world, mirroring the spread of the virus, throughout 2020, Andrew Chien, a partner at consulting firm Oliver Wyman, tells Axios.
By the numbers: A survey released Wednesday by data provider ISM shows the virus outbreak has caused supply chain disruptions for nearly three-quarters of U.S. companies, and many are already pricing in revenue losses this year as a result.
What's next: Companies in multiple industries tell Axios shipping and delivery could become a new operational chokepoint, especially if more regions end up in lockdowns like Italy's.
My colleague Amy Harder points out that amid this particular exogenous shock the world is experiencing the converse of what happened during the 1970s.
Amy writes: "I find it a little ironic that while there are shortages in almost every part of the economy, the world is awash in arguably too much oil... So at least consumers — those who are venturing out of home life — will have cheap gasoline."
The European Central Bank is expected to announce a slate of easing measures despite opposition from board members. (CNBC)
Activist investor Carl Icahn raised his stake in Occidental Petroleum to 10% from 2.5% in recent days as the stock's price has fallen. (WSJ)
The NBA suspended the rest of its season indefinitely after Jazz center Rudy Gobert tested positive for COVID-19. (AP)
Photo: Bryan R. Smith/AFP via Getty Images
The selling looks far from over as futures trading on all three major U.S. indexes had to be halted after falling by 5% ahead of the market open today.
What's happening: "The market is having a crisis of confidence," Joseph Trevisani, senior analyst at FXStreet, tells Axios.
Flashback: Traders were underwhelmed by the Trump administration's lack of concrete stimulus proposals to offset the economic damage expected from the COVID-19 outbreak Tuesday night and began selling S&P 500 futures.
Threat level: Following Wednesday's market carnage President Trump addressed the nation from the Oval Office, but his speech only increased Wall Street's panic.
Behind the curve: Worse, his proposal to ban European travelers from entering the U.S. for 30 days likely worsens the economic outlook, Stephen Innes, global chief markets strategist at AxiCorp, told Bloomberg.
The Washington Post reported late Wednesday that Trump also was working to pressure Fed chair Jerome Powell to "figure out a way to stimulate the economy," citing three White House officials with knowledge of the matter.
Where it stands: Ahead of the U.S. open, markets in Europe and Asia sank, with Australia's benchmark ASX index again falling by more than 7%, India's Sensex 8% lower, and Thailand's SET losing more than 10% overnight.
The Dow's bull market may have ended in record time (19 days), but there has been a clear march toward this point.
Nov. 8, 2019: U.S. companies are holding off on major purchases and investments, paying down debt and stacking up cash as they look to position for an expected economic downturn in 2020. (Axios)
Jan. 28: Growing worry over the widespread outbreak of the coronavirus is compounding an already jittery market. (Axios)
Jan. 31: As the [coronavirus] outbreak worsens, so do concerns that it could hit the global economy right as prospects for growth were beginning to look up. (Axios)
Feb. 13: An overwhelming majority of the world's asset managers think stocks are overvalued and expect a recession this year or in 2021. (Axios)
Feb. 28: In just a matter of weeks, top economists and investment bank analysts have gone from expecting the coronavirus outbreak to have minimal impact on the U.S. economy to warning that an outright recession may be on the horizon. (Axios)
March 10: Coronavirus is already the most serious threat to the U.S. economy since the financial crisis, and the dominoes are aligned for a severe recession that could erase much of the 11-year recovery. (Axios)
I asked Axios visual journalist Naema Ahmed to make the above chart at around 9 pm EDT, thinking Fed funds futures prices would peak ahead of President Trump's address.
What happened: Once the president finished speaking, the market only moved further in its expectations for rate cuts. Traders have priced in as much as a 95% likelihood that the Fed cuts rates by 100 basis points to 0%-0.25% at its next meeting.
The Dow had a very clear and almost instant reaction to President Trump's Oval Office address.
Quote: “Earth provides enough to satisfy every man's needs, but not every man's greed.”
Why it matters: On March 12, 1930, Mahatma Gandhi began with several dozen followers on a trek of about 240 miles to the coastal town of Dandi on the Arabian Sea to defy British policy by making salt from seawater.