Stocks Drop as Pandemic Restrictions Loom: Live Updates

This is what you need to know:.

• Wall Street shares fell Wednesday, wiping out all remaining gains for October, while European stocks hit their lowest level in months as investors worried about what steps governments might take to control the new wave of a coronavirus pandemic.
• Leading politicians in France and Germany have taken a much tougher hand in containing the virus after localised efforts seem to have failed. In the United States, Newark, the largest city in New Jersey, has imposed a curfew and again imposed some restrictions on meetings to tackle the outbreak of the epidemic in that city, while other local authorities are considering similar measures.
• The echo of the first days of the pandemic, when production losses hit the economy hard, is not lost on the financial markets.
• On Wednesday, the S&P 500 fell 3%, reducing the week’s decline to around 5% and cancelling the first three weeks of October. The Stoxx Europe 600 index fell 3% to its lowest level since May. The British FTSE 100 also fell by more than 3% to its lowest level since April.
• Oil prices fell by more than 5% and energy stocks were among the worst of the S&P 500.
• Large technology companies, which have a major influence on the direction of stock market indices, have also experienced a sharp decline. Apple and Microsoft fell by more than 3% and the Google alphabet parent company by almost 5%.
• Boeing declined following the announcement of a loss in Q4 and the warning of further layoffs, while the payment company Mastercard declined following the announcement of disappointing sales and profit figures and the disruption related to Covid affected the cross-border payment business with higher commissions.
• Wall Street traders were on the brink of collapse just before the presidential election and legislators could not agree on what economists called the most important plan to support the economy and non-working Americans.
• Uncertainty about mobility restrictions related to COVID-19 and US policy means we can expect continued high volatility for the remainder of the year, wrote Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, to customers this week. The continuing spread of the virus and the adoption of new measures threaten to slow down or reverse the decline in European growth in recent months and slow down the pace at which economic activity could resume.
• French President Emmanuelle Macron is expected to speak on Wednesday and describe in detail the restrictions imposed on the country as the number of daily cases in France increases. Already two thirds of the population lives in areas where the curfew is in effect from 9 p.m. onwards. The measures envisaged include the extension of the curfew and the obligation to stay at home at weekends.
• In Italy, demonstrations were organised in response to the monthly increase in restrictions, including the closure of bars and restaurants at 6pm. In Germany, Chancellor Angela Merkel will meet the heads of government of the Länder on Wednesday to discuss new measures. Measures that the German government can take include restrictions on short journeys and the closure of restaurants, bars and sports halls.

Christopher F. Schuetze contributed to the report.

The supply of crude oil is growing faster than some analysts had predicted, while U.S. producers are increasing their production…. Nick Oxford/Reuters.

Oil prices fell on Wednesday as the fungal disease epidemic in Europe and the United States threatened a further recovery in demand for oil and even a further drop in consumption.

The fact that the supply of crude oil is growing faster than some analysts had predicted is also contributing to traders’ concerns. American manufacturers increased production, and Libya, where the fight against production reduction took several months, suddenly increased production.

Supply is higher than people expect and demand is increasing, says Bhushan Bahri, CEO of research firm IHS Markit.

The price of West Texas Intermediate Crude Oil, a U.S. standard, fell about 5.6 percent to $37.35 a barrel, the lowest level since June. Brent crude oil, which is considered the international benchmark, dropped 5 percent to $39.16 a barrel.

Until recently, crude oil prices remained unchanged after recovering from their low point in April, when some futures prices fell into the negative range. Today, however, there is renewed concern about market fundamentals. The potential of the new restrictions to combat the growing number of cases of the coronavirus in countries such as France and Germany could lead to a drop in oil consumption of around 10%, analysts at the Norwegian consulting firm Rystad Energy said Wednesday.

Moreover, the upcoming US presidential election on March 3 will have a major impact on the economy. November to volatility and uncertainty, according to analysts. A victory for Joseph R. For example, Biden Jr. could eventually lead to stricter regulation of the oil industry in the United States, while President Trump is likely to step back if he stays in the White House.

Boeing 737 Max ground support aircraft in the Boeing field in Seattle in July. Boeing handles landings and pandemic crises. A loan… Lindsay Wasson/Raiter.

Boeing said Wednesday that it plans to cut 7,000 additional jobs by the end of next year, based on a much larger reduction announced in the spring. In total, the company expects to have approximately 130,000 employees by the end of 2021, almost 19% less than at the beginning of this year.

As we adapt to the marketplace, our departments and functions make prudent employee decisions to prioritize natural turnover and stability to reduce the impact on our employees and our business, said Dave Calhoun, President and CEO of Boeing, in his address to employees on Wednesday.

News of the cuts came when Boeing announced a loss of $466 million three months before September, with revenues of more than $14 billion. Commercial aviation revenues decreased by about 56% compared to the same quarter last year, when Boeing tackled the 737 Max pandemic crisis and landed in March 2019 after 346 people died in two fatal plane crashes.

Max could return to heaven in the coming months after making significant progress with global regulators. Boeing said that, in preparation for recertification, it carried out some 1,400 test and inspection flights on the aircraft, the workhorse of its fleet.

This year Max’s order backlog decreased by more than 1,000 orders due to cancellations and stricter reporting, which negates the reduction in the likelihood of an order being executed. In total, the company owns more than 4,300 commercial aircraft worth $313 billion.

Boeing said it would probably take about three years before the airline’s passenger traffic was restored in 2019. According to the road safety authority, pedestrian traffic at federal airport checkpoints on Tuesday fell by approximately 66% compared to the same period last year.

The Trump International Hotel and Tower in Chicago remained understaffed despite the new commercial agreements signed by the president, sales areas remained empty and revenues declined. ….Alice Shukar for the New York Times.

Years before he became president, Donald J. Trump got some very good deals from some very large financial institutions.

First, they agreed to lend him a total of $770 million for the construction of a 92-story skyscraper in downtown Chicago. When the financial crisis of 2008 broke out and Mr Trump was unable to repay his loans, the same banks and hedge funds either gave him more years to repay his loans or they simply forgave him most of the debt. The tax authorities consider this remission as a taxable benefit, but Mr Trump managed to avoid almost all taxes.

On Wednesday, after the New York Times reported on the difficulties of the project, Mr. Trump defended his right to manage the Trump International Hotel and Trump International Tower in Chicago.

I was able to conclude the corresponding agreement with many creditors on a large and very beautiful tower, wrote the chairman on Twitter. Doesn’t that make me a smart guy and a bad guy?

As a developer, long ago and still today, politicians brought Chicago back to Earth. On a large and beautiful tower I managed to reach a very profitable agreement with many creditors. Doesn’t that make me a smart guy and a bad guy?

– Donald J. Trumpf (@realDonaldTrump) 28. October 2020

There’s no doubt the deal was a big one for Mr. Trump. Its creditors – including Deutsche Bank and Fortress Investment Group, a hedge fund and a private equity firm – had the right to seize the building as collateral, but preferred not to do so. They concluded that it would be easier and safer to reach a peaceful agreement with the star of a controversial and advertising reality, the television star.

As a result, approximately $270 million was eliminated. Mr. Trump owes Fortess and other private equity firms and hedge funds a total of $100,000. Mr. Trump owes Deutsche Bank a total of at least $330 million, including $45 million for the Chicago project. The Deutsche Bank loans, for which Mr Trump personally guaranteed them, are due to be repaid in 2023 and 2024.

In his Twitter feed on Tuesday, Trump hinted that the battle for his tower in Chicago was the result of politicians bringing down the city.

It’s a revisionist story. Mr. Trump and his daughter Ivanka boasted several times that the skyscraper was a great place to live. I love Chicago is the title of an article Mr. Trump wrote for the Chicago Tribune about his building in 2014.

The reality is that Mr Trump’s hotel and condominium tower are struggling with their responsibilities towards other buildings in the neighborhood – in part because of the Trump brand that has been mishandled. The shopkeepers got the rent of the mezzanine of the skyscraper. Last year The Real Deal discovered that the tower had only one customer and called the skyscraper the biggest failure in Chicago.

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Facebook, Twitter and Google managers testify before the senators in the Commission for Trade, Science and Transport.

For more than two decades, Internet companies have been protected from liability for most messages posted by their users under a law called Section 230 of the Decency in Communications Act. Today, this shield – and the way in which internet companies moderate the content of their sites – is being challenged by legislators on both sides of the separation of power.

On Wednesday, the leaders of Google, Facebook and Twitter testified before a Senate committee about their mitigation practices.

The hearing, headed by the Commerce, Science and Senate Transportation Committee, is a retreat from Google’s Sundar Pichai, Facebook’s Mark Zuckerberg and Twitter’s Jack Dorsey. But with the elections coming up in 3rd place. With less than a week to go until 11 November, additional pressure is being put on leaders to deal with misinformation without unfairly influencing the election process.

• Fiat Chrysler said it made a profit of €1.2 billion ($1.4 billion) on Wednesday, while sales of lucrative trucks and sports cars made a slight loss a year ago after a sharp drop in sales in the spring, when the pandemic led to the closure of dealerships and car factories worldwide. Turnover fell by 6% to EUR 25.8 billion. Fiat Chrysler has agreed to merge with the French company Peugeot to become the fourth largest car manufacturer in the world.
• On Wednesday, UPS announced its third quarter revenue of $21.2 billion, up from 16 percent of total revenue for the same period last year. During the pandemic, many Americans still shop online rather than in stores, and retailers rely on home delivery to get their purchases to customers. The company earned $2 billion this quarter, up 11.8% from last year. Our results were supported by continued strong foreign demand from Asia and the growth of small and medium-sized businesses, said Carol Tomé, President and CEO of UPS.
• On Tuesday, Microsoft announced the most profitable quarter in its history, as the pandemic accelerated the shift from jobs and schools to online services. Revenues for the quarter ending September were $37.2 billion, up 12% from a year earlier, while profits increased 30% to $13.9 billion. Revenues from Microsoft Azure, the leading cloud computing platform, rose 48% in the quarter as large enterprises and other organizations accelerated their commitments to purchase additional cloud computing services in the future and orders, net of currency movements, rose 18%.
• On Tuesday, 3M announced sales of $8.4 billion for the third quarter, an increase of 4.5% during the same period last year. Demand for cleaning and do-it-yourself products contributed to the growth in domestic sales of 3M and compensated for lower sales of products such as office supplies, which are in high demand as the pandemic continues to keep employees at home. 3M increased the production of N95 masks in response to the lack of personal protective equipment for healthcare workers during the pandemic.

The headquarters of Deutsche Bank in Frankfurt, Germany, Credit… Ralph Orlowski/Reuters

Deutsche Bank, Germany’s largest bank, reported a profit in the third quarter of 2020 after a loss a year ago, as the instability on the financial markets led to a sharp increase in transaction revenues.

The bank, which is trying to recover from years of scandals and losses, has also reduced its spending.

309 million or $364 million from July to September, compared with a loss of 832 million in the third quarter of 2019.

Deutsche Bank has long been regarded as one of the most problematic large banks in Europe. This profit – the third quarterly profit in a row – has become a certain guarantee that the Bank and other similar organisations will survive the pandemic and spread the financial crisis more slowly.

Most of the profit was generated by supporting customers in debt and currency trading. The trading costs for these assets have almost halved, the bank said. This compensates for the increase in funds reserved by the Bank for problem loans compared to the previous year.

The bank also reduced the number of employees in the retail branches and other activities by 3,000 compared to the previous year to 87,000.

Dan Shulman, head of PayPal, says companies have a moral obligation to act. A loan… Larry Busakka / Getty Images for Kiwa

PayPal has announced plans to invest more than $50 million in eight black and Spanish venture capital firms as part of its $530 million initiative to combat systemic racism and police violence, first discussed in the DealBook.

Eight companies – Chingona Ventures, Fearless Fund, Harlem Capital, Precursor, Slauson & Co, Vamos Ventures, Zeal Capital Partners and a yet-to-be-named fund – were selected after PayPal interviewed more than 60 candidates, all of whom registered through the PayPal website. (PayPal refused to indicate how much money each of them would receive).

The disbursement giant studied how the segregation of wealth, which had also been solved by other companies, could be eliminated and encountered the support of black and Spanish venture capital companies. These investors provide entrepreneurs with critical capital at a time when PayPal itself is unable to do this – it invests in the A Series and subsequent fundraising rounds – and targets companies that largely ignore large venture capital firms.

There is so little venture capital that goes to minority communities, says Dan Schulman, CEO of PayPal. It’s a way of thinking about how we’re going to create wealth.

With its investments, PayPal immediately becomes one of the largest investors for any company. Money certainly makes a difference in terms of what we’re trying to do, said Austin Clements of Slauson & Company. But American companies can do more to fight racial inequality, said Samara Hernández de Chingon : A lot of this is just public relations.

New York buyers in July. Although the economy has recovered significantly since the spring, it is still a long way from pre-pandemic levels. Hiroko Masuikae/The New York Times

The Department of Commerce will release its first assessment of third-quarter economic growth on Thursday, showing that the economy grew fastest since it began establishing reliable records after World War II.

However, this does not mean that the economy has recovered from the collapse earlier this year, and it is important to know why.

Ben Kasselman of the New York Times destroyed the most important elements of the report before its publication on Thursday. These are some of the main factors to be taken into account:

• The figures will undoubtedly show the economic recovery. Economists surveyed by FactSet estimate that gross domestic product – the broadest range of goods and services produced in the U.S. – grew by about 7 percent during the second quarter, or 30 percent year-over-year.
• There’s no point in considering Thursday’s report in isolation. Indeed, record growth in the third quarter reflected a similar decline in the second quarter, when business disruptions and housing orders led to a 9% decline in GDP. Strong growth was inevitable when the economy began to open up again.
• The economy is still in the hole. While gross domestic product fell by 9 percent in the second quarter and grew by about 7 percent in the third quarter, the economy barely returned to its starting point. The sharp drop in output in the second quarter means that growth in the third quarter is measured on a weaker basis, while the economy is still 3 to 4 percent lower than before the pandemic. (By comparison, the economy contracted by 4% during the Great Recession ten years ago).
• The annual figures are even more misleading. US gross domestic product is generally expressed on an annual basis, i.e. it indicates how much production would have increased or decreased if that percentage had been maintained throughout the year. But in times of rapid change, annual figures can be confusing.

For example, gross data stocks decreased by 31.4% year-on-year in the second quarter. To avoid confusion, The Times plans to focus on simple, cost-effective percentage changes in both the second and fourth quarters of last year before the pandemic begins. (We explained this decision before the second quarterly report in July).antitrust hearing live,house antitrust committee,congressional hearing live,tech hearing time,tech antitrust hearing,tech congressional hearing,big tech hearing how to watch,big tech hearing time,house judiciary committee,c-span,antitrust hearing summary,antitrust hearing transcript,antitrust hearing live stream,antitrust hearing means,antitrust hearing time,tech antitrust,antitrust hearing meaning,house judiciary antitrust subcommittee