Happy Monday. Today is August 10th and stock futures are flat to start the week. Trump signed an order aimed to extend pandemic relief after congress failed to reach a deal. Power 5 conference is talking about no fall football, but have made no decisions yet and small businesses’ confidence rebounds from all-time low, but Main street has a long path ahead. Trump’s ban on Chinese apps has a lot of precedent in other countries and the future of office space looks bleak.
U.S. stock futures were flat early Monday morning after President Donald Trump signed several executive orders aimed at extending coronavirus relief. Dow Jones Industrial Average futures were up about 70 points, indicating a gain of around 60 points at market open. S&P 500 futures were little changed, while Nasdaq 100 futures fell 0.1%.
Commissioners of the Power 5 conferences held an emergency meeting on Sunday, as there is growing concern among college athletics officials that the upcoming football season and other fall sports can’t be played because of the coronavirus pandemic, sources told ESPN.No major decisions were made on Sunday night, but multiple sources in several Power 5 conferences have told ESPN the commissioners talked about trying to collaborate if their respective presidents do decide to cancel or postpone fall sports.
President Donald Trump on Saturday signed a series of executive orders expanding coronavirus economic relief to Americans struggling during the pandemic. The president’s orders extend unemployment benefits, provide a payroll tax holiday, defer student loan payments through 2020 and extend the federal moratorium on evictions. Trump will extend the unemployment bonus at a reduced level of $400 per week, instead of the $600 per week federal unemployment insurance that was approved in March and expired at the end of July.
Main Street confidence rose in the third quarter, according to the CNBC|SurveyMonkey Q3 Small Business Survey, but the business sentiment was still the second-worst in the survey’s history. Government assistance like the Paycheck Protection Program provided a lifeline to struggling businesses in the third quarter, though many still failed and remain at risk. Just 36% of businesses say that current operating conditions are “good,” but that doubled from Q2 when Covid-19 lockdowns were widespread. President Trump’s executive orders signed over the weekend, which include unemployment assistance, a payroll tax hiatus, student loan relief and eviction protection, do not cover small business.
President Donald Trump issued an executive order on Thursday ordering U.S. firms to stop doing business with TikTok and WeChat. Both Google and Apple have removed apps from their marketplaces in certain countries in the past in response to foreign government requests, including TikTok and WeChat in India earlier this year. Overall, Apple removed 851 apps in the year between July 2018 and June 2019, and the vast majority of requests came from China.
Morgan Stanley predicts that office tenants across Asia will permanently give up between 3% and 9% of their existing office space. That will result in a rent decline of between 10% and 15% over the next three years, a recent report by the investment bank estimated. As companies cut their office space, Morgan Stanley predicted that they will do it through a combination of three strategies. If companies have any additional demand for office space, they would tap on flexible work spaces instead.