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FINANCIAL MARKETS
Banks lead stocks lower after the Fed caps their dividends
NEW YORK (AP) — Stocks are falling in afternoon trading on Wall Street as investors react to news that the number of confirmed new coronavirus cases per day in the U.S. hit an all-time high of 40,000, surpassing the peak set during one of the deadliest stretches in late April. Banks are leading the declines after regulators told them they had to cap their dividends and halt stock buybacks in order to shore up their defenses in case the recession gets worse. Nike fell after reporting a big loss as most of its stores were forced to close.
CONSUMER SPENDING
US consumer spending up 8.2%, partly erasing record plunge
WASHINGTON (AP) — American consumers increased their spending by a record 8.2% in May, partly erasing record plunges the previous two months, against the backdrop of an economy that’s likely shrinking by its steepest pace on record this quarter. Last month’s rebound in consumer spending followed spending drops of 6.6% in March and 12.6% in April, when the viral pandemic shuttered businesses, forced millions of layoffs and sent the economy into a recession. Since then, many businesses have reopened, drawing consumers back into shops and restaurants and restoring some lost jobs. Americans stepped up their spending in May despite a 4.2% decline in personal income, which had soared 10.8% the previous month.
VIRUS OUTBREAK-AIRLINES
American Airlines to start booking flights to full capacity
UNDATED (AP) — American Airlines will start booking flights to full capacity starting next Wednesday. The move contrasts sharply with rivals including Delta that limit bookings to create space between passengers. American said Friday that it will continue to notify customers of full flights and let them change flights at no cost. The airline said it will also let passengers change seats on the plane if there is room if they stay in the same cabin. Since April, American has said it limits bookings to leave about half of middle seats open. Delta, Southwest, Alaska and JetBlue say they block middle seats or limit capacity. United Airlines CEO Scott Kirby has said social distancing is impossible on planes. Photos and videos of full flights, including ones on American and United, have drawn criticism for their lack of social distancing.
VIRUS OUTBREAK-TEXAS
Texas orders bars shut amid surge in confirmed virus cases
AUSTIN, Texas (AP) — Republican Gov. Greg Abbott is shutting down bars in Texas again and scaling back restaurant dining. The moves Friday are the most dramatic reversals yet as confirmed coronavirus cases surge. Abbott also said rafting and tubing outfitters on Texas’ popular rivers must close. He says outdoor gatherings of 100 people or more must be approved by local governments. Texas has reported more than 17,000 new confirmed cases in the last three days with a record high positive tests of 5,996 on Thursday.
VIRUS OUTBREAK-FLORIDA
Florida bans bar alcohol consumption as coronavirus spikes
FORT LAUDERDALE, Fla. (AP) — Florida has banned alcohol consumption at its bars as the number of daily confirmed coronavirus cases nears 9,000. The number is a new record that is almost double the previous mark set just two days ago. The Florida agency that governs bars announced the ban Friday on Twitter just minutes after the Department of Health reported more than 8,900 new confirmed cases, topping the previous record of 5,500 set Wednesday. State officials have attributed much of the new outbreak to young adults flocking to bars after they reopened in most of the state three weeks ago. They say many of the young people ignored social distancing restrictions aimed at lowering the virus’s spread.
BRITAIN-FLORIDA-DISNEY
UK tour operator scraps Florida visits over Disney measures
LONDON (AP) — Tour operator TUI is cancelling all holidays to Florida from the U.K. until December following the introduction of new hygiene rules at Walt Disney World Resort, including the mandatory use of face coverings. The company said Friday it made the decision because the new regulations would “significantly impact the holiday experience” for its customers. Walt Disney World Resort has four theme parks, and will require visitors aged two and above to wear face coverings except when eating or swimming. Temperature screenings may be required for entry to some locations, and the number of entry tickets will be limited.
HATE SPEECH-ONLINE ADS
Maker of Ben&Jerry’s, Dove pulling US Facebook, Twitter ads
SAN FRANCISCO (AP) — The company behind Ben & Jerry’s ice cream, Dove soap and a host of other consumer products says it will stop advertising on Facebook, Twitter and Instagram in the U.S. through at least the end of the year because of the amount of hate speech online. Unilever said that the polarized atmosphere in the United States ahead of November’s presidential election placed responsibility on brands to act. The company, which is based in the Netherlands and Britain, joins a raft of other companies halting advertising on online platforms. Facebook in particular has been the target of an escalating movement to siphon away advertising.
AMAZON-ZOOX
Amazon looks to self-driving future by acquiring Zoox
NEW YORK (AP) — Amazon said Friday that it is buying self-driving technology company Zoox, which is developing an autonomous vehicle for a ride-hailing service that people would request on their phones.
Seattle-based Amazon did not disclose how much it is paying for Zoox, which was founded six years ago in Foster City, California. Analysts pegged the purchase price at over $1 billion. The online retailing giant said Zoox will keep running as a separate business and continue to develop its own autonomous vehicle.
The deal could drive Amazon into an entirely new business: transporting people from one place to another. But some analysts think Amazon’s ultimate goal is to repurpose the Zoox vehicle for its core business, delivering packages to shoppers.
MICROSOFT-STORE CLOSURES
Microsoft to permanently close all physical stores
NEW YORK (AP) — Microsoft says it is permanently closing nearly all of its physical stores around the world. Like other retailers, the software and computing giant had to temporarily close all its stores in late March due to the COVID-19 pandemic. Microsoft has 72 stores in the U.S. and several others abroad where they showcase and sell laptops and other hardware. Today’s announcement reflects what the company calls a “strategic change” for its retail business as sales increasingly shift online. The company didn’t say if the move would result in layoffs.
GAP-KANYE WEST
Kanye West to bring Yeezy brand, but not sneakers, to Gap
NEW YORK (AP) — Kanye West is bringing his Yeezy brand to Gap. The rap superstar will design adult and kids’ clothing that will be sold at the chain’s stores next year. Yeezy is best known for pricey sneakers that sell out online quickly. But Yeezy footwear, made with sneaker company Adidas, won’t be sold at Gap stores. San Francisco-based Gap, whose sales are dwindling, hopes the deal will keep it relevant with shoppers. For Yeezy, being in more than 1,100 stores worldwide could get the brand in front of more people.
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