European Briefing - Friday 31.07
Headlines
  • US Congressional Leaders, WH Fail To Reach Stimulus Deal
  • US Sec Pompeo: Expanded Scope Of Iran Metals Sanctions
  • US GOPs Rebuff Trump’s Suggestion Of Delaying Election
  • China’s Economy Speeds Up As Factory Output Recovered
  • US To Launch Overwhelming Vaccine November Campaign
  • US Sunbelt Deaths Climb As Midwest Fears A Virus Surge
  • UK Toughens Lockdown For Millions To Stem Virus Rise
  • UK CBI Warns Over Business’ No-Deal Brexit Preparations
  • Apple Smashes Revenue, iPhone Estimates In Record Q3
  • Amazon Posts Biggest Profit Ever At Height Of Pandemic
  • Google’s Advertising Haul Comes Up Short For First Time
  • Facebook’s Q2 Sales Top Estimates As Adverts Rebound
Commentary
As Pandemic Rages On, World Economic Recovery Looks Ever More Shaky

The world economic outlook has dimmed again, with still-rising coronavirus infections and the risk of renewed lockdowns increasing the chances that any rebound will reverse course, according to Reuters polls of over 500 economists globally.

 

Over 17 million people have been infected worldwide by the coronavirus and more than two-thirds of a million people have died. That has forced governments to impose strict lockdown measures to curb the spread of the virus, keeping citizens at home and businesses closed and spurring recessions that aren’t over yet.

 

Surging cases in the US, where related deaths have surpassed 150,000, have led several states to reimpose restrictions. Most economists, long-term investors and even Fed Chair Powell have clearly said the economic outlook depends significantly on the course of the virus. (RTRS - Continue Reading)

Senate Stalemate Means Millions On Verge Of Losing Weekly Federal Benefit

With federal unemployment benefits expiring on Friday — a serious blow to millions of Americans who lost jobs due to the coronavirus pandemic — the Senate became bogged down in partisan fighting and prepared to leave town without a resolution to the crisis.

 

The end of the $600-per-week federal benefit, when combined with the lapsing of an eviction moratorium, could lead to serious financial problems for those hit hardest by the pandemic and economic collapse. More than 1.4 million people filed initial unemployment claims last week, according to the Department of Labor, while the US economy contracted by more than nine percent in the second quarter of 2020, the worst drop on record.

 

Faced with Democratic resistance, as well as opposition in their own ranks, Senate Republicans temporarily abandoned their hopes for a large-scale coronavirus relief package on Thursday tried to pass a standalone extension of federal unemployment insurance. But that effort was blocked by Democrats. (Politico - Continue Reading)

Amazon, Apple, Facebook Show Dominant Results, Grip On Society

Amazon.com delivered soaring quarterly sales and profit, leading a pack of tech giants on Thursday that reported thriving business during the throes of the coronavirus pandemic and highlighting the industry’s central place in business and society at a time of growing concern over its clout.

 

The success of Amazon, Apple and Facebook in the face of a pandemic that has caused unprecedented economic disruption and millions of job losses shows how tech giants have become even more indispensable at a time when people are living and working more online.

 

The companies showed strength in businesses ranging from gadgets and online retail to cloud computing and digital advertising. Amazon reported record revenue and profit even as it spent $4 billion between April and June to stabilize its supply chain and improve worker safety. (WSJ - Continue Reading)

Eurozone Economy Poised For Record Decline In Q2

Economic activity in the Eurozone most likely contracted at a record rate in the second quarter, a period that included the height of Covid-19 lockdowns in Europe, and July consumer price growth in the single-currency area is set to decline after German inflation fell more than expected, according to government data released Thursday.

 

Analysts say the EU statistics office will announce a 12.0pct quarterly drop in Eurozone GDP in its preliminary growth and inflation reporting on Friday (0900 GMT). The economy in the single currency area contracted a record 3.6pct on the quarter in January-March.

 

July consumer price growth in the euro area is also headed lower, according to economists, who see the annual headline rate falling to 0.2pct from 0.3pct in June, which would further distance the indicator from the European Central Bank’s target of near but below 2pct. Core inflation this month is expected to hold steady at 0.8pct. (LiveSquawk - Continue Reading)

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