It’s an enormous week forward in Washington, the place Congress will hash out the destiny of jobless advantages for over 30 million individuals because the coronavirus rages on. Right here’s what else it is advisable to know in enterprise and tech as we roll into Monday.
What’s Up? (July 19-25)
The Flawed Path
The nation has been hemorrhaging jobs since March, however at the very least we might take some consolation in seeing new unemployment claims steadily tick down from their preliminary spike. Till final week, when the quantity went up once more for the primary time in three months. Economists blamed the resurgence of the virus, which has compelled some companies to shut once more and others to restrict their operations for … effectively, who is aware of how lengthy? What’s extra, many companies have burned by any emergency funding that they obtained by the Paycheck Safety Program (in the event that they had been fortunate sufficient to get it within the first place), and need to reduce bills — like workers.
A Vaccine Race
The federal authorities is investing within the vaccine enterprise. The Trump administration secured a virtually $2 billion contract with the pharmaceutical big Pfizer and its German manufacturing companion to acquire 100 million doses of a coronavirus vaccine by December. It’s too quickly to know if Pfizer’s early model of a vaccine even works or is secure, not to mention could possibly be prepared for mass manufacturing by the tip of the 12 months. However whether it is, this association would give the federal government dibs on the primary batch for about $20 a dose, with the rights to accumulate as much as 500 million extra. (Individuals would obtain the vaccine free of charge.) The federal government made an analogous deal this month with a smaller biotech firm, Novavax.
Extra Unhealthy Blood
Tensions between the world’s two largest economies escalated on Thursday when Secretary of State Mike Pompeo abruptly ordered China to shut its consulate in Houston and accused Chinese language diplomats of spying. China retaliated by ordering the US to shut its consulate within the southwestern metropolis of Chengdu — take that. This flurry of blows weakened the already deteriorating relationship between Washington and Beijing, making markets sad. Earlier within the week, the Justice Division accused Chinese language hackers of attempting to steal coronavirus analysis from corporations in the US and greater than 10 different nations.
What’s Subsequent? (July 26-Aug. 1)
One other Spherical
When Congress handed its massive coronavirus assist bundle again in March, a key part was the supplementary $600 every week in unemployment advantages till July 31. On the time, that expiration date appeared so distant! However right here we’re, barreling towards August and nowhere close to restoration, with roughly one in 5 employees depending on that further $600 to pay payments. The federal government’s eviction moratorium can also be set to run out, which might put tens of millions in a good spot. Congress will spend this week haggling over one other reduction invoice that will proceed some portion of the expanded unemployment advantages (the precise quantity remains to be undecided), replenish extra sources of assist (just like the Paycheck Safety Program), and embody funding for colleges and testing.
Secrets and techniques Unsealed
A cache of paperwork associated to the legal case in opposition to Ghislaine Maxwell, the longtime companion of the financier Jeffrey Epstein, could possibly be unsealed inside a couple of days. Ms. Maxwell’s legal professionals argued for the paperwork to stay secret to keep away from hurt or embarrassment to their shopper, since they embody previous testimony by girls who accused her and Mr. Epstein of intercourse crimes, however a New York choose rejected the plea. In associated information, two mansions that belonged to Mr. Epstein, who died final 12 months, are actually in the marketplace for a mixed $110 million. The proceeds will go to Mr. Epstein’s property, which lately opened a compensation fund for ladies who say he abused them. Ms. Maxwell has additionally sued the property to pay for her authorized protection in opposition to six expenses of intercourse trafficking and perjury.
Tick, Tock, Growth
As a part of the intensifying face-off between the US and China, President Trump has threatened to ban the video app TikTok, which is very well-liked with youngsters. In keeping with the Trump administration, TikTok’s guardian firm, the Chinese language tech big ByteDance, has been sharing customers’ private info with the Chinese language authorities. To keep away from shedding its profitable American market, ByteDance is reportedly contemplating promoting off a majority stake of TikTok to non-Chinese language traders. However the deal is way from performed, and it’s unclear whether or not it could placate ByteDance’s critics.
One other retailer bites the mud: The proprietor of Ann Taylor and Lane Bryant has filed for chapter. A regulation scholar in Australia has sued her authorities for ignoring the potential monetary injury of local weather change — the primary lawsuit of its variety. And Goldman Sachs agreed to a $3.9 billion settlement with the Malaysian authorities over the scandal generally known as 1MDB, during which a number of of the financial institution’s workers raised cash for a Malaysian sovereign wealth fund after which spent it on yachts, diamonds and designer purses as a substitute.
Was this article forwarded to you? Sign up right here.