On The Money: Stocks sink as Florida, Texas reimpose restrictions | Treasury to give Congress access to all PPP loan data | Delayed mortgage payments increase by 79K
Happy Friday and welcome back to On The Money, where we also plan to stay inside this weekend for “Law and Order.” I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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LEADING THE DAY
Stocks sink as Florida, Texas reimpose restrictions after COVID-19 spikes: U.S. stocks plunged on Friday as major COVID-19 outbreaks forced Texas and Florida to reinstate some restrictions.
The Dow Jones Industrial Average fell 730 points, or 2.8 percent, and the S&P 500 declined 75 points, or 2.4 percent. The drop comes amid rising concerns about a second surge of coronavirus cases across the U.S. that could dampen the rebound from the pandemic-driven recession.
- Texas Gov. Greg Abbott (R) said Friday that the state would order bars and some outdoor recreation businesses to close, and lower the operating capacity of indoor restaurants.
- In Florida, the Department of Business and Professional Regulation suspended consumption of alcohol on premises at bars.
Markets had recovered a significant portion of their steep losses in March on expectations for a swift and straightforward recovery from the pandemic-induced economic downturn. But Friday’s declines erased the remainder of the gains made in June, raising questions about the outlook for markets. The Hill’s Niv Elis has more here.
Treasury to give Congress access to all PPP loan data: Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money: Stocks sink as Florida, Texas reimpose restrictions | Treasury to give Congress access to all PPP loan data | Delayed mortgage payments increase by 79K Hillicon Valley: Facebook to label ‘newsworthy’ posts that violate policies | Unilever to pull ads from Twitter, Facebook, Instagram | FEC commissioner steps down SBA scrapped ethics review for agency employees, lawmakers in emergency loan program MORE agreed to provide relevant congressional committees with full access to loan data from the Paycheck Protection Program (PPP), a key demand Democrats have been pushing.
In a letter dated Thursday, Mnuchin told House Ways and Means Committee Chairman Richard NealRichard Edmund NealOn The Money: Stocks sink as Florida, Texas reimpose restrictions | Treasury to give Congress access to all PPP loan data | Delayed mortgage payments increase by 79K The Hill’s Coronavirus Report: San Francisco Gay Men’s Chorus Artistic Director Tim Seelig says choirs are dangerous; Pence says, ‘We have saved lives’ Treasury to give Congress access to all PPP loan data MORE (D-Mass.) that it would include data with borrower names and loan amounts “with the understanding that nonpublic personally identifiable and commercially sensitive business information will be treated as confidential.”
- Mnuchin had earlier agreed to publicly disclose information on the loans within wide ranges but said Treasury would keep personally identifiable information for businesses that took loans below $150,000 under wraps.
- For those loans, they would only provide aggregate data on industry, ZIP code, business type and demographic characteristics. Mnuchin argued that that category of loans only accounted for 25 percent of the total dollar amount.
- Neal called the plan “inadequate,” noting that while loans under $150,000 accounted for only a quarter of the total dollar amount, they comprised 85 percent of the total number of loans made.
Read more: SBA scrapped ethics review for agency employees, lawmakers in emergency loan program
ON TAP NEXT WEEK
- The House is expected to vote on a resolution to repeal the Office of the Comptroller of the Currency (OCC)’s revision of the Community Reinvestment Act, time to be determined.
- The Senate Banking Committee holds a hearing on the digitization of money and payments, 10 a.m.
- The Senate Finance Committee holds a hearing on the 2020 tax filing season and IRS COVID-19 recovery, 10:15 a.m.
- Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testify before the House Financial Services Committee for a hearing on oversight of the Fed and Treasury’s response to the coronavirus recession, 12:30 p.m.
- A Senate Finance subcommittee holds a hearing on censorship as a non-tariff barrier to trade, 2 p.m.
- The House Foreign Affairs Committee holds a hearing entitled “The End of One Country Two Systems?: Implications of Beijing’s National Security Law in Hong Kong,” 9:30 a.m.
- The House Small Business Committee holds a hearing entitled “The Economic Injury Disaster Loan Program: Status Update from the Administration,” 10 a.m.
- A House Small Business subcommittee holds a hearing on supply chain resiliency, 10 a.m.
GOOD TO KNOW
- An uptick in in-restaurant spending can predict an increase in COVID-19 cases over three weeks, according to a research note from J.P. Morgan.
- The number of homeowners delaying payments increased by a steep 79,000 in the past week, reversing a three-week trend that saw forbearance requests decline, according to data from Black Knight.
- France, the United Kingdom, Spain and Italy have offered to limit their proposed digital tax after the U.S. threatened to slap tariffs on goods from those countries.
- Unilever, which controls brands including Dove soap and Hellmann’s Mayonnaise, announced Friday that it is pulling brand advertisements from Twitter, Instagram and Facebook until “at least” the end of 2020.