The United States economy decreased by a third in the second quarter
The Commerce Department said the US gross domestic product collapsed at an annualized rate of 32.9% in the second quarter, the biggest drop since the government began keeping records in 1947, as COVID-19 crushed consumer and business spending. Meanwhile, in a sign of a faltering job market, the number of workers applying for initial unemployment benefits rose for the second consecutive week, to 1.43 million, after nearly four months of declines after a peak in late March. . The second-quarter economic contraction came as states imposed blockades in March and April to contain the coronavirus and then lifted restrictions in May and June, allowing growth to resume. Economists expect the third quarter to show growth, but rising infections in the summer are likely to moderate gains.
The Senate makes no progress in extending unemployment benefits
Meanwhile, there are no signs of progress in the Republican-Democrat talks on a new coronavirus relief bill. The United States Senate yesterday failed to advance in an effort to extend a $ 200 per week supplement to unemployment insurance benefits. Republicans in the Senate and White House had tried to cut the $ 600 supplement through September, after which those receiving unemployment benefits would get 70% of their previous wages when combined with state benefits. While much of the focus has focused on the expiration of the additional $ 600 per week of unemployment benefits, an eviction moratorium is also receiving increasing attention.
Factory activity in China expands for fifth consecutive month
China’s official manufacturing purchasing managers’ index came in better than expected, rising to 51.1 in July from 50.9 in June for its highest reading since March. July marked the fifth month in a row that the closely watched measure of China’s manufacturing activity passed the 50 mark separating expansion from contraction. Combined with China’s official non-manufacturing purchasing managers index, which indicates a slight slowdown in the service sector, the data suggests that China’s factories have returned to pre-coronavirus levels, but consumer demand remains being much weaker, which means inventory is piling up.
China-backed hackers reportedly attacked Moderna for vaccine data
China rejects accusations that hackers linked to its government attacked Moderna (NASDAQ: MRNA) to steal research-related data on a coronavirus vaccine. Citing an unidentified US security official, Reuters reported yesterday that Chinese hackers attacked the US biotech company earlier this year. Moderna said she had been in contact with the FBI and that a group of hackers mentioned in the Justice Department indictment last week had reported the alleged “information recognition activities,” where two Chinese citizens were charged. spying on the United States, including three unidentified Americans. based on objectives involved in medical research to combat COVID-19. The other two unidentified medical research companies mentioned in the Justice Department indictment are described as biotech companies based in California and Maryland, descriptions that could be adapted to Gilead Sciences. (NASDAQ: GOLDEN) and Novavax (NASDAQ: NVAX).
Go deeper: J&J (NYSE: JNJ) The COVID-19 vaccine candidate shows a positive effect in the primate study.
Amazon’s $ 10 Billion Internet Satellite Plan Wins FCC Approval
Though overshadowed by the company’s profits, Amazon.com’s (AMZN) technology ambitions got a boost when the FCC approved its $ 10B plan to put thousands of satellites in the sky to provide high-speed Internet to underserved and underserved areas. . The company’s Kuiper Project, which uses 3,200 low-Earth orbit satellites, would compete in that area with the Starlink project at SpaceX (SPACE).
Australia will force Google and Facebook to pay for news
Australia will become the first country in the world to compel Facebook (FB) and Google (GOOG, GOOGL) to pay publishers for the content of news appearing on their sites. It will give companies three months to negotiate a fair payment with the media companies there, a measure to ensure competition and consumer protection, as well as a sustainable media landscape. Other companies are likely to undergo similar moves by the Australian government later on.
UK fraud office accuses Airbus subsidiary of deal with Saudi Arabia
The UK’s leading economic crime investigator has charged Airbus (OTCPK: EADSY) The subsidiary GPT Special Project Management and three people in connection with a defense contract that the country arranged with Saudi Arabia. Airbus says the investigation by the Serious Fraud Office was related to contractual agreements prior to the acquisition of the subsidiary. The charges represent a step forward in one of the OFS’s most politically sensitive probes, which has been seen as a potential threat to the UK’s relationship with the Saudis.
Go deeper: Airbus works to reduce cash consumption and slow production.
