This archive report was first published on 5 August 2020.
Stock markets around the world rose on Wednesday, with the S&P 500 index climbing about half a percent in early trading. The gains were reflected in the dropping price for 10-year Treasury notes, as well as rising oil and gold prices.
Investors were encouraged by fresh economic data, including the IHT Markit composite eurozone Purchasing Managers' Index for June, which showed the fastest growth in over two years. The Bank of Ireland's chief executive, Francesca McDonagh, also expressed optimism about the prospects of an economic recovery.
Meanwhile, in Washington, White House officials and top Democrats reported some movement in their negotiations over a new pandemic relief package. They agreed to an end-of-the-week deadline to reach a deal to restore expired jobless aid for tens of millions of Americans.
Shares of Disney rose about 7 percent after the company reported that it has signed up 60.5 million subscribers for its Disney+ streaming service in the first nine months.
The S&P 500's steady climb in recent weeks has been fueled by government spending, the efforts of the Federal Reserve to backstop the economy, and a surge in shares of technology stocks like Apple, Amazon, and Microsoft.
However, not all businesses are benefiting from the economic recovery. Many are taking their insurers to court, hoping to force them to cover some of the financial carnage caused by the pandemic. Business owners argue that business interruption claims should be paid when business is interrupted, but insurers say they don't have enough capital to cover all coronavirus-related claims.
On July 1, a county circuit judge threw out one of the first business interruption insurance cases, ruling that for coverage, there had to be tangible damage, something that alters the physical integrity of the property.
Meanwhile, TikTok appears headed for a shotgun wedding after President Trump decided to force its owner, the Chinese tech conglomerate ByteDance, to sell the hit video app to an American acquirer or be barred from operating in the country. However, the most glaring question mark is that nobody has figured out exactly what 'buying TikTok' will mean, or whether the complex algorithms that make the app so addictive would be included in a deal.
