The daily business briefing: May 11, 2020

1. White House starts talks with lawmakers about new stimulus round

The White House has launched discussions with lawmakers about a new round of stimulus spending to help businesses, states, and individuals get through the coronavirus crisis, Trump administration officials said Sunday. Treasury Secretary Steven Mnuchin and White House economic adviser Larry Kudlow said they were having informal talks with congressional Republicans and Democrats about several possible elements of the legislation, including aid to states hit hard by COVID-19. White House economic adviser Kevin Hassett said the next stimulus package could include food aid to struggling Americans, and broadband access to those without it. The House's Democratic majority could unveil its proposal as early as this week, but Mnuchin said the discussions could go on for several weeks.

Reuters

2. Shanghai Disneyland reopens after 3-month shutdown

Shanghai Disneyland reopened on Monday after being shut down for three months due to the coronavirus pandemic. Tickets for the first few days of the reopening went on sale Friday, and sold out within minutes. Shanghai Disneyland, the first Disney theme park to reopen, has put in place social distancing guidelines, and is screening the temperatures of workers and visitors, who must wear masks while in the park. The park is limiting guests to about 30 percent of daily capacity, significantly below 24,000 people. "There is light at the end of the tunnel," said. Joe Schott, president and general manager of Shanghai Disney Resort.

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The New York Times Reuters

3. China investment in U.S. falls

China's direct investment in the United States dropped last year even before the coronavirus pandemic, reaching its lowest point since the 2008-2009 recession, according to a report released Monday by the National Committee on U.S.-China Relations and the Rhodium Group consultancy. China's direct investment in the U.S. fell from $5.4 billion in 2018 to $5 billion in 2019. In the first quarter of 2020, the figure dropped to $200 million as the coronavirus pandemic largely shut down global commerce. U.S. investment in China rose from $13 billion in 2018 to $14 billion last year, mostly due to previously announced projects such as Tesla's new factory in Shanghai. The cooling of new investment came as the two countries hit each other with tariffs in a dispute over what President Trump described as China's abusive trade practices.

The Associated Press

4. Stocks struggle after two days of gains

U.S. stock index futures struggled early Monday following two days of gains at the end of last week. Futures for the Dow Jones Industrial Average and the S&P 500 fluctuated between slight gains and losses, but were down by about 0.6 percent two hours before the opening bell. Nasdaq futures were down by about 0.2 percent. Investors were focusing on the potential economic boost from the gradual reopening of numerous states' economies, which helped offset negative news, including Friday's employment report showing that a record 20.5 million U.S. jobs were lost in April. The S&P 500 has rebounded by more than 33 percent since it hit an intraday low on March 23, thanks largely to surges of more than 20 percent for tech giants Facebook, Amazon, Apple, Netflix, Google-parent Alphabet, and Microsoft.

CNBC

5. Top Trump administration official warns of 20 percent unemployment

Treasury Secretary Steven Mnuchin said Sunday that the unemployment rate will get worse before it gets better as the coronavirus crisis continues to damage the economy. The jobless rate rose to 14.7 percent in April as the U.S. lost 20.5 million jobs due to coronavirus shutdowns across the nation, the Labor Department reported Friday. White House economic adviser Kevin Hassett said Sunday that the unemployment rate could rise "north of 20 percent" in the next month as the crisis continues, even though some states are gradually reopening their economies. The U.S. death toll from the pandemic is continuing to rise, hitting 80,000, and public health experts have warned that allowing businesses to reopen could trigger a new surge of infections.

The Washington Post CNBC