The U.S. budget deficit He’s on the monthly record.
KFC is finishing its dining rooms in Florida amid a buildup of virus cases.
Hong Kong Disneyland will reclose after a virus surge.
Delayed by the coronavirus crisis, tax day came.
“I can’t keep doing this: “Small business owners give up.
Car plants may have difficulty functioning as infections increase.
A White House graphic on virus deaths is now much worse.
Imf. says the “double blow” of oil and virus cuts will spread in the Middle East.
The shares end the day with a loss after erasing the first gains.
Here’s what’s happening: the bankruptcy of New York Co., that of PepsiCo.
The U.S. budget deficit reached a record $864 billion in June, as the federal government continued to inject cash into the economy of staff and businesses affected by the coronavirus pandemic, the Treasury Department said Monday.
The deficit was largely due to the government’s involvement in the paycheck coverage program, which by the end of June had approved more than $500 billion in small business loans. Overall, government oversuspending exceeded $1.1 trillion last month, while profits fell sharply due to tax bills that were deferred until mid-July.
The monthly deficit is the largest since April, when it reached a record $738 billion gap. Since the start of the fiscal year, the government has been generating red ink at a record pace. So far, in fiscal year 2020, the deficit is $1.99 trillion, an accumulation of 267% compared to 2019.
The figures highlight the deep fiscal vacuum facing the United States as it faces a pandemic that has left millions of people without paint and closed businesses, leading to a wave of bankruptcies across the country.
Increasing the deficit, while expected, may further complicate discussions for some other bailout given Republicans’ considerations of the monetary account. Lawmakers are preparing to resume negotiations on some other fiscal circular as the virus continues to resurface in many parts of the United States.
Trump’s management officials have called for payroll tax relief, a capital gains tax exemption, additional relief for industries that have been most affected by the pandemic, such as tourism and some other stimulus control circulars.
The next bill can charge between $1 bill and $3 billion.
Alan Rappeport
KFC, the chain of fried birds, closed the canteens on Monday at its 40 restaurants in Florida, as cases of coronavirus in the state continued to skyrocket.
The company encouraged franchisees operating retail stores in Florida and other virus-sensitive “states,” such as Arizona, California, and Texas, to maintain their leadership. The company’s owned locations in Florida will continue to offer service, delivery and delivery, if applicable.
“This recommendation is a component of our ongoing efforts to prioritize the suitability of our team members, customers, and the communities in which they work and work,” said a KFC representative.
On Sunday, Florida reported more than 15,000 new instances, the total in one day of new instances of coronavirus consistent with the state since the beginning of the pandemic. The state reported more than 12,000 new instances on Monday.
The pandemic has affected the food-eating industry, with many fast food chains that manage to stay afloat depending on sales of wheeled vehicles. McDonald’s delayed the reopening of canteens earlier this month, as cases of coronavirus have increased across the country.
KFC is a subsidiary of Yum Brands, which owns other fast food chains, adding Pizza Hut and Taco Bell.
– Gillian Friedman
Hong Kong Disneyland will close Wednesday to comply with a government-led cancellation of public activities in the region following a buildup of coronavirus infections, Walt Disney Company announced Monday. Disney called the theme park closure “temporary” and said its hotels at the Lantau Island hotel would remain open.
By re-closing the Hong Kong outpost, Disney is complying with new government restrictions on restaurants, gyms, nightclubs, mahjong lounges and businesses.
Over the weekend, Disney executives in Florida cited the elegant reopening of Hong Kong Disneyland and other Disney parks in Asia as evidence that Walt Disney World could safely reopen, even if instances of coronavirus in Florida increase.
Hong Kong Disneyland, which is partly owned by local government, first closed due to the virus on January 26. It reopened on June 18 with limited capacity and other security measures, adding temperature controls for visitors and employees. Hong Kong Disneyland attracted about six million visitors last year, making it the smallest park in the Disney portfolio.
– Brooks Barnes
Now that we’re Independence Day, Tax Day is fast approaching.
Due to the coronavirus pandemic, the Treasury Department has extended the classic federal tax filing deadline from April 15 to July 15. And this time, there’s no room for manoeuvre. Last month, the Internal Revenue Service announced that there would be no general filing deadline.
So, if you haven’t filed your return yet, or if you filed it yet you haven’t paid the taxes you owe for 2019, the deadline is Wednesday.
“It’s like April 15, but in July,” said Cindy Hockenberry, director of tax studies and government at the National Association of Tax Professionals, an industry group.
About 142 million taxpayers had record returns as of July 3, according to I.R.S. statistics, however, the company has had trouble processing returns because staff discount the pandemic. The firm had processed about 131 million returns as of July 3, 10% less than it was last year.
And some taxpayers face long delays in getting the refunds they’re getting, according to a report through Erin Collins, the new national taxpayer attorney who represents taxpayers.
– Ann Carrns
It is already difficult enough for small businesses (bars, dental offices, small law firms, day care centers and other storefronts that dot the streets of each and every American city) to have to close after state officials imposed lockouts in March to involve the pandemic.
But the virus’s resurgence, especially in states like California, Florida, and Texas that had begun to reopen, brought a much darker truth to many small businesses: their transient closures can be permanent.
Nearly 66,000 companies have closed since March 1, according to Yelp’s knowledge, which provides a platform for local businesses to promote their facilities and follow closing announcements on their website. Small businesses account for 44% of all U.S. economic activity, according to the Small Business Administration, and closures of this magnitude can devastate the country’s economic growth.
Last Friday in June, after Texas Gov. Greg Abbott said the state’s bars deserve to be closed for a moment because instances of coronavirus went off, Mick Larkin had had enough. He and his spouse have to permanently close their club, Krank It Karaoke in Wichita Falls, Texas.
“We did everything we intended to do,” Larkin said. “When he shut us down again, and after spending all that cash to respect his rules, I just said, “I can’t stay doing this.”
Emily Flitter
Automakers continue to produce and trucks at full speed, at least for now.
Fiat Chrysler, Ford Motor, General Motors, Honda, Toyota and other brands run almost all of their plants in the United States on two or 3 teams. But as cases of viruses accumulate in much of the country, corporations can find it difficult to stick to them.
This week, G.M. will fire a third shift, around 1250, at its trucking plant in Wentzville, Missouri, where absenteeism is greatest because they are involved in the spread of the virus.
Last month, members of the United Automobile Workers union called G.M. shutting down a plant in Arlington, Texas, in reaction to the immediate virus in that state.
Toyota said he had noticed a buildup of coronavirus cases among his San Antonio plant staff, but refused to disclose the number of people in poor health.
The virus has spread throughout Texas in recent weeks. The state, which allowed his order to stay home on April 30, expired on April 30, has recorded approximately 265,000 cases, and infections have accelerated in recent weeks.
Toyota stopped its plants in Alabama, Kentucky, Mississippi, Texas and Canada this week from a planned summer shutdown.
Every day, several thousand employees combine through car factories under one roof. Manufacturers have taken a number of precautions to prevent infections among staff, adding the use of masks, gloves and face protectors. Companies also control the temperature of the staff frame, taking the time to disinfect the paint spaces and load barriers to the staff who have to paint close to each other to perform certain tasks.
– Neal E. Boudette
White House economists sparked a protest two months ago when they posted a twitter chart that appeared to be waiting for U.S. coronavirus pandemic deaths to end until mid-May. The chart mocked Democrats and many economists.
The recreation of this graph today provides a very different result: a dizzying acceleration of deaths due to the virus.
Economists on the chart, adding either the interim chairman of the White House Council of Economic Advisers and a former board chairman, said in May that it was never intended to read it as a prediction. This was, the economic board said on Twitter, “a curve adjustment training to summarize the observed trajectory of COVID-19.”
Economists drew their chart by plotting several predictions of the virus’s trajectory published over time through researchers from the University of Washington’s Institute for Health Measurement and Assessment, and then added a curve generated through the execution of actual deaths due to the virus over time through a function in Microsoft Excel : a “cubic adjustment”.
Today it is transparent that the trajectory of the virus has taken a turn that did reflect the models of the White House. Infections have multiplied in the South and Southwest, setting single-day records in states such as Arizona, Florida, and Texas. The deaths have also begun to recover.
A new edition of the May table, generated using the same technique used through the White House but updated to reflect the actual trail of virus deaths in the last two months, now differs greatly from the positive symbol that the administration had posted on Twitter. Instead of the deaths falling to zero, the “cubic” curve shows that the trend has never fallen below 500 according to the day. More importantly, they’re expanding now. And due to the operation of the cubic models, the graph shows that the deaths are expanding with each passing day, exceeding 3000 consistent with the day in early August.
It is unlikely to happen, just as it is highly unlikely in May that the trend of deaths means they will disappear before Memorial Day.
– Ben Casselman and Jim Tankersley
The International Monetary Fund said Monday that it drastically cut its economic expansion forecasts for the Middle East and Central Asia, while Saudi Arabia and other oil exporters in the region are hit by a “double blow” in oil costs and production cuts and the effects of lockdowns.
Oil export revenues in the region are expected to decline to $270 billion, according to I.M.F. Index. he told me. Activities such as tourism, shipping and retail are also affected by lockouts aimed at stopping the pandemic, he said.
The fund said it now expects oil exporters like Saudi Arabia, Kuwait and the United Arab Emirates to revel in an economic contraction of 7.3% on average this year, with a 4.2% contraction expected in April.
Overall, in the vast region stretching from Mauritania and Algeria in North Africa to Turkmenistan and Uzbekistan in Central Asia, the fund predicted that the economy would contract by 4.7% by 2020, a 2-point relief from its April forecast.
The fund also warned that downward pressure on these economies would bring risks of “social unrest and political instability” and that there could be “potential renewed volatility” in oil markets, which had seen a partial recovery to about $42 for Brent crude, the international benchmark, after some crude futures contracts fell into negative territory in April.
Despite weak economic performance, the fund noted that either countries with higher ratings, adding Saudi Arabia and Qatar, and other countries with lower ratings, particularly Bahrain and Egypt, have so far controlled access to foreign capital.
– Stanley Reed
Monday turned out to be a hectic day for Wall Street, with stocks canceling an early gain that, in short, brought the S.P.500 back into positive territory during the year.
The index declined by about 1% at the end of the day, having risen more than 1.5% previously. The unstable industry happened as the number of coronavirus cases continued to increase and investors also had to consider the upcoming earnings season.
Many companies, shaken by the uncertainties caused by the spread of coronavirus, have stopped giving indications of profit projections for the year, so investors will take a closer look at quarterly figures as they are reported.
On Monday, Pepsico reported better-than-expected results, in bulk due to a jump in snack sales. On Tuesday, JPMorgan, Citigroup and Wells Fargo will report on their results, and a number of other companies, from Netflix to Delta Air Lines, will also provide updates this week.
Stocks have risen recently despite the relentless spread of coronavirus in many parts of the world, however, the market has also been vulnerable to a sudden decline if sentiments are adjusted and investors focus on the dangers to the economy or profits, which can occur if corporate effects are much weaker than expected.
Adding to the market’s nervousness on Monday, news that California Gov. Gavin Newsom announced one of the top radical cancellations of any state’s reopening plans, it would move to shut down national state-to-state operations for restaurants, wineries, movie theaters, zoos, and card theaters, and that bars would be forced to close all operations.
Florida reported more than 15,000 new cases on Sunday, the total one-day of any state since the pandemic began.
The economic crisis is provoking a developing coalition in the United States, adding Democrats and Republicans, staff and businesses, to push a new educational effort to the capabilities of American staff, creating what one proponent called “a Marshall Plan for us.”
– Kevin Granville and Mohammed Hadi
The owner of New York And Co., the women’s clothing chain whose roots date back to 1918, filed for Chapter 11 bankruptcy on Monday in the United States Bankruptcy Court for the District of New Jersey. RTW Retailwinds, which also owns the Fashion to Figure and Happy x Nature brands, said in a statement that it had about 378 outlets and retail outlets and that it “planned to close a significant, if not all, part of its physical stores.” its bankruptcy for the “combined effects” of a challenging business environment and the coronavirus pandemic.
Consumers continued to eat snacks at Tostitos and Cheetos, the pandemic, expanding snack revenues at food giant PepsiCo in the quarter. Total revenue fell 3.1% in the current quarter to $15.9 billion, largely due to a sharp drop in sales in Latin America and declining beverage revenues in North America. But those declines were offset in part by strong sales of chips and snacks, as well as double-digit accumulation in Quaker Oats cereals and other foods. The company also said it hopes to expand the business this fall with the launch of Cheetos Mac ‘n Cheese.
REI, the chain of gadgets, will fire 400 retail workers until Wednesday as the industry continues to fight the pandemic, the company announced Friday. Corporate cuts are limited to the elimination of 25%, or three hundred workers, at its headquarters in Kent, Washington, in April.