NEW YORK (AP) — Stocks are falling sharply on Wall Street, joining a global tumble for markets as the S&P 500 sinks 2.5%.
Losses in Asia accelerated in Europe on the possibility of tougher restrictions to stem rising coronavirus counts. In the U.S., both stocks and Treasury yields weakened, while prices sank for oil and many other commodities a healthy economy would demand.
Bank stocks fell after a report alleged several are profiting from illicit dealings with criminal networks.
Wall Street has struggled this month amid fears that stocks are expensive with the pandemic still worsening and Congress not delivering more economic aid.
Bank shares slide on report of rampant money-laundering
UNDATED (AP) — The financial sector is being pummeled following a report alleging that a number of banks, JPMorgan, HSBC, Standard Chartered Bank, Deutsche Bank and Bank of New York Mellon among them, have continued to profit from illicit dealings with criminal networks despite previous warnings from regulators.
According to the International Consortium of Investigative Journalists, leaked government documents show that the banks continued moving illicit funds.
The report compounded a massive sell-off across global markets because of gloom and doom over COVID-19 infections and the economic damage from the pandemic.
US household wealth hits record even as economy struggles
WASHINGTON (AP) — Americans’ household wealth rebounded last quarter to a record high as the stock market quickly recovered from a pandemic-induced plunge in March. Yet the gains flowed mainly to the most affluent households even as tens of millions of people endured job losses and shrunken incomes.
The Federal Reserve said households’ net worth jumped nearly 7% in the second quarter to $119 trillion. That figure had sunk to $111.3 trillion in the first quarter, when the coronavirus battered the economy and sent stock prices tumbling.
The full recovery of wealth even while the economy has recovered only about half the jobs lost to the pandemic recession underscores what many economists see as America’s widening economic inequality.
GAO: Millions in danger of missing coronavirus payments
WASHINGTON (AP) — A government watchdog says millions of Americans are in danger of missing coronavirus relief payments of up to $1,200 per individual because of incomplete government records.
The Government Accountability Office, Congress’ auditing arm, said in a report Monday that possibly 8.7 million or more individuals who are eligible for the economic impact payments have yet to receive those payments because of inadequate IRS and Treasury Department records.
That was one of a number of findings in the latest GAO report on the handling of the unprecedented $2.6 trillion in support passed by Congress last spring to cushion the impact from a sharp recession triggered by the global pandemic.
Democrats unveiling temporary funding bill to avert shutdown
WASHINGTON (AP) — Democrats controlling the House are on track to unveil a government-wide temporary funding bill to keep federal agencies up and running into December. The measure would prevent a partial shutdown of the government after the current budget year expires at the end of September.
The stopgap funding bill comes as negotiations on a huge COVID-19 relief bill have collapsed and as the Capitol has been thrust into an unprecedented political drama with the death of Supreme Court Justice Ruth Bader Ginsburg.
The temporary funding measure is sure to provoke Republicans and President Donald Trump, who were denied a provision that would give the administration continued authority to dole out Agriculture Department farm bailout funds.
Central bank head: Europe’s recovery uncertain, incomplete
FRANKFURT, Germany (AP) — The economic recovery remains uncertain, incomplete and uneven in the 19 countries that use the euro currency. That was the assessment Monday from the head of the European Central Bank, Christine Lagarde.
She told an assembly of French and German lawmakers that the rebound is under way. But she said its course will be determined by how successful countries are in containing the virus. Infection numbers have been rising in recent days across Europe.
The ECB is pumping 1.35 trillion euros, or about $1.6 trillion, into the economy in the form of bond purchases.
Founder of GM electric truck partner quits amid allegations
FRANKFURT, Germany (AP) — The head of an electric truck startup that’s partnering with GM has resigned amid accusations of making false representations about the company’s technology.
Shares in Arizona-based Nikola were off 17% as trading opened Monday.
The company said late Sunday that founder and executive chairman Trevor Milton was stepping aside. Investment fund Hindenburg Research has accused the company of making false representations about its vehicles and technology. Nikola rejects that and has hired a lawyer for potential legal action.