Aug 02, 2020
Stimulus talks have stalled. But the pressure to act is rising
This news has been received from: CNN
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London (CNN Business)A resilient US job market in May and June fed investor hopes that a strong economic recovery could quickly power the country out of a crippling recession. But the jobs report for July, due this week, may serve as a reality check — raising pressure on Congress to push through another round of stimulus spending.What's happening: Higher claims for initial unemployment benefits over the past two weeks have been flagged as a warning sign as the health crisis worsens in a number of states, requiring fresh restrictions on movement."With virus fears on the rise, jobs being lost and incomes squeezed, we feel the recovery could be much bumpier than markets seemingly do, and think we are in for some data disappointment over the next couple of months," James Knightley, chief international economist at ING, said in a recent note to clients.
- Procter & Gamble (PG): People are scrubbing down their homes and washing their dishes more often. That's a win for a company that owns brands like Tide laundry detergent and Dawn dish soap; sales rose 5% to $17.7 billion in April-to-June quarter compared to one year ago. P&G's stock is up 5% this year.
- Scott's Miracle-Gro (SMG): Shares of the lawn care company have jumped 49% this year, with sales rising 28% in the most recent quarter as more people try out their green thumbs. Scott's Miracle-Gro raised its full-year guidance, citing "a year of unprecedented success."
- Kellogg Company (K): Demand for cereal and frozen food helped Kellogg increase revenue 9% last quarter, excluding the impact of exchange rates and lines of business it sold last year. Kellogg also raised its full-year guidance. Shares are flat year-to-date.
News Source: CNN
Mnuchin is open to more coronavirus stimulus talks: 'We're prepared to put more money on the table'
U.S. Treasury Secretary Steven Mnuchin speaks to reporters in the U.S. Capitol in Washington, U.S. July 29, 2020.Erin Scott | Reuters
Treasury Secretary Steven Mnuchin spoke to CNBC on Monday after President Donald Trump tried to extend coronavirus relief measures through executive action.
The move followed the collapse of aid talks between Trump administration negotiators, Mnuchin and White House chief of staff Mark Meadows, and Democratic leaders, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer. It is unclear when discussions between the sides will resume.
This story is developing. Please check back for updates.
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