Update on the latest in business:

FINANCIAL MARKETS

Stocks post broad gains

NEW YORK (AP) — Stocks are rising broadly on Wall Street Tuesday after investors were encouraged to see European leaders come together to agree on a budget and coronavirus relief fund worth more than $2 trillion.

The S&P 500 was up 0.6%, building on its gain from a day earlier. European markets were also higher.

Advertisement

Traders sent the stocks of Coca-Cola and Philip Morris International higher after the companies reported earnings in the latest quarter that beat analysts’ forecasts.

The price of oil was also up more than 3%, an encouraging sign that markets hope economies will continue to recover.

EUROPE-ECONOMY

Stimulus package breaks new ground in European unity

FRANKFURT, Germany (AP) — The European Union has taken a big step toward deeper economic cooperation as they try to rescue the economy from the coronavirus.

Leaders have signed off on a package worth $855 billion that includes outright grants to countries hardest hit by the virus. The spending will start kicking in next year to support a hoped for rebound in the economy.

The recovery fund will be paid for with shared borrowing on bond markets. That is a major shift setting a precedent that the 27 member countries can share financial burdens and risks.

VIRUS OUTBREAK-CHINA-HACKING

U.S. accuses Chinese hackers

WASHINGTON (AP) — The Justice Department has accused two Chinese hackers of stealing hundreds of millions of dollars of trade secrets from companies across the world and more recently targeting firms developing a coronavirus vaccine.

The indictment says the hackers in recent months had researched vulnerabilities in the computer networks of Massachusetts and Maryland companies publicly known for their work in developing vaccines and treatments. The indictment includes charges of trade secret theft and wire fraud conspiracy against the hackers, who federal prosecutors say stole information they knew would be of interest to the Chinese government.

The Chinese Embassy in Washington, D.C., hasn’t commented.

TRANSATLANTIC FLIGHTS

Airlines call for testing to restore transatlantic travel

FRANKFURT, Germany (AP) — The bosses of major airlines are urging the U.S. and the European Union to reopen transatlantic air travel. And they say that the way to do that is with a new testing program for COVID-19.

The CEOs of United, American, IAG and Germany’s Lufthansa say it’s an urgent matter to get a vital business pathway running again. In a letter Tuesday to U.S. Vice President Mike Pence and European Home Affairs Commissioner Ylva Johansson, the executives say transatlantic flights are crucial to the recovery and to their businesses.

They say a joint U.S.-EU testing program would enhance safety and confidence so flights can resume.

FEDERAL RESERVE-SHELTON

Senate panel now likely to back questionable Trump Fed pick

WASHINGTON (AP) — In a shift, the Senate Banking Committee is likely to back President Donald Trump’s unconventional nomination of Judy Shelton for the Federal Reserve’s Board of Governors in a party-line vote Tuesday.

The committee’s support would move Shelton’s nomination to the full Senate, which would have until the end of the year to confirm or reject it.

Late Monday, Sen. John Kennedy, Republican of Louisiana, said he would support Shelton’s nomination, essentially guaranteeing that she would win the votes of all 13 GOP senators on the committee. The Democrats have 12 members. Kennedy had previously said he was undecided.

WALMART-THANKSGIVING

Walmart to close on Thanksgiving

NEW YORK (AP) — Walmart will close its namesake stores and Sam’s Clubs on Thanksgiving Day this year, saying that it wants to have its employees spend time with their families during the coronavirus.

The move marks the first major indication of how COVID will affect Black Friday store shopping, which for almost a decade kicked off with big crowds on the turkey feast and expanded into Friday. However, safety concerns are making stores rethink their plans for the holiday plans.

Given Walmart’s clout as the nation’s largest retailer, other major retailers could very well follow its lead.

Walmart also said Tuesday that it will be giving out another round of bonuses for workers on the front lines of the coronavirus.

VIRUS OUTBREAK-ECONOMIC HARDSHIP POLL

Poll: Pandemic hurting Americans’ finances in disparate ways

UNDATED (AP) — As the coronavirus pandemic drags on, a new poll from NORC at the University of Chicago finds it’s having different effects on Americans’ economic well-being.

For some, the virus has meant lost income or struggles to pay bills on time — particularly among Hispanic, Black and younger Americans. Others, most notably college-educated and older Americans, have transitioned to working from home or experienced the nation’s economic decline through a dip in the value of their investments.

Overall, the poll finds roughly a quarter of Americans say they’ve lost savings and about as many have lost income.

EARNS-COCA-COLA

With stadiums, theaters closed, Coke 2Q revenue plunges 28% UNDATED (AP) — Coca-Cola’s revenue plunged 28% in the second quarter, but the company says things are improving as lockdowns ease globally.

Coke Chairman and CEO James Quincey says sales improved sequentially in May, June and July despite surging cases in key markets like the U.S., Iran and Australia. While the path forward is unclear, Quincey said it’s unlikely that the world will see another global lockdown as it did earlier this spring.

April case volumes fell 25% worldwide, but by June, that decline narrowed to 10%.

Coke reported a profit of $1.8 billion for the April-June period, down 32% from the same period a year ago.

TAPESTRY CEO CHANGE

CEO of parent company of Coach and Kate Spade resigns

NEW YORK (AP) — The parent company of the Kate Spade, Stuart Weitzman and Coach fashion brands says Jide Zeitlin, its chairman and CEO, has resigned from the company and board for personal reasons, effective immediately.

Zeitlin, who had been chairman since November 2014 of Tapestry Inc., took over as CEO in September 2019 after the New York-based company ousted its then-CEO Victor Luis. Zeitlin was among only four Black CEOs of Fortune 500 companies.

Joanne Crevoiserat, chief financial officer, has been appointed interim CEO of Tapestry while the company searches for a successor. It will look at both internal and external candidates.

LINKEDIN-JOBS

LinkedIn laying off nearly 1,000 amid hiring slowdown

NEW YORK (AP) — Professional networking company LinkedIn is laying off nearly 1,000 employees, or approximately 6% of its global workforce, as a slowdown in hiring amid the coronavirus pandemic pressures its business.

In a note to employees, CEO Ryan Roslansky said that the positions that will be eliminated are in its global sales and hiring offices. Roslansky said these are the only layoffs LinkedIn is planning.

Impacted U.S. employees will receive at least 10 weeks of severance pay and a year of continuing health coverage through COBRA. Those being laid off will continue in their roles through Aug. 21.

EBAY-ADEVINTA CLASSIFIEDS

Norway’s Adevinta buys eBay classifieds unit in $9.2B deal

LONDON (AP) — EBay is selling its classifieds business to Norway’s Adevinta in a deal worth $9.2 billion that will create the world’s largest online classifieds group.

The U.S. company will get $2.5 billion in cash and become the largest shareholder in Adevinta with a 44% equity stake. The combined company will have classified ad websites in 20 countries, covering 1 billion people and receiving about 3 billion monthly visits.

EBay’s classified brands include Gumtree in Australia and the U.K., Mobile.de in Germany and Canada’s Kijii. Adevinta ASA owns Leboncoin.fr, France’s biggest online classifieds site, and classified businesses in more than a dozen other countries.

Copyright © 2020 . All rights reserved. This website is not intended for users located within the European Economic Area.