The daily business briefing: August 5, 2016

1. Economy posts strong job gains for second straight month

The U.S. economy added 255,000 jobs in July, the Labor Department reported Friday, smashing economists' expectations of a gain of about 180,000. Also, June's gains were upgraded to 292,000 from 287,000, and May's dismal 11,000-job gain was upped to 24,000. Wages also rose. The unemployment rate remained unchanged at 4.9 percent. U.S. stock futures added to earlier gains after the second strong jobs report in a row eased fears that the slow, seven-year economic recovery was in trouble.

MarketWatch

2. BoE stimulus lifts U.K. stocks to one-year high

The Bank of England's new stimulus measures helped boost British stocks to their highest level in a year on Friday. Stocks in many other parts of the world also edged higher. The BoE cut a key interest rate to a record low 0.25 percent and offered billions of pounds in stimulus to ease economic harm from the U.K.'s vote to exit the European Union. The stimulus announcement came after the BoE's chief economist called for using "a sledgehammer to crack a nut."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

Reuters

3. SeaWorld shares drop as attendance dips

SeaWorld stock fell by as much as 15 percent on Thursday after the company reported a sharp drop in attendance at its theme parks, mostly at its flagship Orlando, Florida, location. SeaWorld had 5.98 million visitors at its 12 parks, a 7.6 percent drop that occurred in the early days of its crucial summer season. The company blamed much of the decline on a slowing flow of tourists from Latin America, although SeaWorld's Orlando location in particular has suffered from animal rights complaints regarding its killer whales. SeaWorld's new CEO last year said the company would phase out its orca shows.

Los Angeles Times Bloomberg

4. Takata profits plummet as it fights airbag lawsuits

Takata Corp. reported Friday that its quarterly net profit dropped by 33 percent as it battled lawsuits and auto recalls linked to its airbags. Tens of millions of Takata airbags have been recalled to replace inflators that can rupture and potentially injure drivers or passengers. The flaw has been linked to 15 deaths, including 10 in the U.S. The Japanese company also said it had taken a $35 million charge to cover defending itself against lawsuits.

MarketWatch

5. Moody's warns Zika outbreak will harm already struggling Puerto Rico economy

A surge of Zika cases could hurt Puerto Rico's vital tourism industry, delivering a damaging blow to the U.S. island territory's already struggling economy, Moody’s Investors Service said Thursday. As of July 27, 4,666 Puerto Rico residents had been infected locally since April, according to the Centers for Disease Control and Prevention. Puerto Rico's economy is forecast to shrink by two percent in the 2017 fiscal year as the island's economy suffers from high unemployment, a shrinking population, and other problems.

Bloomberg