The daily business briefing: June 28, 2021
Prosecutors give Trump Organization lawyers a deadline, key Republicans say the infrastructure deal is back on track, and more
N.Y. prosecutors give Trump Org. lawyers until Monday to argue against filing charges
New York prosecutors gave former President Donald Trump's lawyers until Monday afternoon to present arguments against filing charges targeting the Trump Organization, The Washington Post reported Monday, citing two people familiar with the matter. The deadline indicates that Manhattan District Attorney Cyrus Vance Jr. and state Attorney General Letitia James are strongly considering filing criminal charges against Trump's company after more than two years of investigations. Vance convened a grand jury earlier this year, but nobody has been charged yet. Prosecutors have been looking into suspicions that Trump's company undervalued its properties to lower its taxes, and inflated their value to get better loans.
Key Republicans say infrastructure deal back on track
Sens. Rob Portman (R-Ohio) and Mitt Romney (R-Utah) said Sunday that the bipartisan infrastructure deal would be able to move forward now that President Biden has clarified that he would sign the bill with or without another bill that only has Democratic support. "The waters have been calmed," Romney told CNN's State of the Union. Biden faced a backlash after saying that he wouldn't sign the infrastructure plan unless it was paired with the "American Families Plan" Democrats plan to push through with spending for child care, health care, education, and climate change. Biden said Saturday he wasn't making a "veto threat" and stood "firmly behind" the infrastructure deal. Republicans "were glad to see them disconnected," Portman said on ABC's This Week. "And now we can move forward."
WSJ: Fewer receiving unemployment payments in states cutting off extra benefits
The number of people receiving regular jobless benefits is falling faster in 22 states that announced they were canceling enhanced payments this month than in other states, The Wall Street Journal reported Monday, citing an analysis by Jefferies LLC economists. The extra $300 per week unemployment payments, which were included in coronavirus relief bills, are scheduled to expire in September. But Missouri and 21 other states decided to opt out early, arguing that they were discouraging people who lost work in the pandemic from getting new jobs. The extra benefits, which lasted up to 18 months instead of the 26 weeks maximum for regular jobless benefits, were helpful at the height of the coronavirus crisis but their extension "worsened the workforce issues we are facing," Missouri Gov. Mike Parson (R) said.
Stock futures mixed after last week's gains
U.S. stock futures were mixed early Monday following the S&P 500's best week since February. Futures for the S&P 500, which set the latest in a series of records on Friday, were flat several hours before the opening bell. So were those tied to the Dow Jones Industrial Average. Futures for the tech-heavy Nasdaq were down by 0.2 percent. All three of the main U.S. indexes gained last week as investor concern about inflation eased, despite the Commerce Department's report that its inflation indicator rose by 3.4 percent in May. It was the fastest such increase in nearly 30 years but not as bad as economists polled by Dow Jones had forecast, which reinforced expectations that the inflation spike won't last long.
Burberry shares drop on news of CEO's departure
Burberry shares fell by as much as 8 percent in London on Monday after the British luxury fashion label announced that CEO Marco Gobbetti, who led a turnaround at the company, will leave at the end of this year. Gobbetti is returning to Italy to lead rival Salvatore Ferragamo. Burberry chairman Gerry Murphy said the board was "naturally disappointed" to lose Gobbetti after his nearly five years with the company, but understood "his desire to return to Italy after nearly 20 years abroad." Gobbetti said: "With Burberry re-energized and firmly set on a path to strong growth, I feel that now is the right time for me to step down." Salvatore Ferragamo confirmed Gobbetti would be taking over as CEO. The company's shares edged up by 0.2 percent in Milan.