The daily business briefing: June 11, 2020

1. Fed projects unemployment will fall to 9.3 percent by year's end

The Federal Reserve on Wednesday projected the U.S. unemployment rate will fall to 9.3 percent by the end of the year. The Fed is anticipating a 6.5 percent unemployment rate by the end of 2021. May's jobs report showed the unemployment rate unexpectedly declined to 13.3 percent from 14.7 percent as states reopened, despite expectations that it would climb to nearly 20 percent. Federal Reserve Chair Jerome Powell noted it "remains historically high," however; the unemployment rate was at a near 50-year low of 3.5 percent in February, before the pandemic. Powell said the Fed would do "whatever we can, and for as long as it takes," to help the economy recover from the crisis, suggesting the U.S. central bank will leave interest rates near zero for the foreseeable future.

The Washington Post The New York Times

2. Amazon temporarily bars police from using its facial recognition software

Amazon on Wednesday announced that it was banning police use of its facial recognition software for one year. The online retail giant made the move as tech companies face pressure to respond to the rising calls for police reform following the killing of George Floyd in Minneapolis police custody. "We've advocated that governments should put in place stronger regulations to govern the ethical use of facial recognition technology, and in recent days, Congress appears ready to take on this challenge," Amazon said in a statement. "We hope this one-year moratorium might give Congress enough time to implement appropriate rules." The House Committee on Oversight and Reform has held hearings on the use of the technology but has yet to propose a bill regulating it.

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CNBC

3. Disneyland to reopen July 17

Disneyland and Disney California Adventure are scheduled to reopen on July 17, the 65th anniversary of Disneyland's grand opening, Disney announced Wednesday. The parks closed three months ago due to the coronavirus pandemic, and Disney still needs state and local government approval to reopen on the target date. Other Disney locations also will reopen in July. Downtown Disney is the first, with its reopening planned for July 9. The Grand Californian Hotel & Spa and Paradise Pier Hotel plan to start accepting guests on July 23, although with limited capacity. Walt Disney World in Orlando already announced that it would begin reopening in phases on July 11.

Los Angeles Times

4. Starbucks to close 400 stores and open 300 carryout-only outlets

Starbucks said in a Wednesday filing with the Securities and Exchange Commission that it plans to close up to 400 stores in the United States and Canada over the next 18 months, while opening hundreds of carryout and pickup-only locations. The ubiquitous coffee chain also said it expects to lose $3.2 billion in its third quarter, which ends June 28. In an email Wednesday, Starbucks told CNN Business data shows that roughly 80 percent of transactions at close to 15,000 U.S. stores are "on-the-go" food and beverage purchases. Its "innovative" new Starbucks Pickup locations will cater to those customers while also limiting the number of people in a store. As of Wednesday, the company has reopened 95 percent of its stores that were closed in March due to the coronavirus pandemic, and resumed new store openings.

CNN

5. Stock futures dive as concerns rise about 2nd coronavirus wave

U.S. stock index futures plunged early Thursday as concerns mounted about the economic recovery from the coronavirus crisis due to signs of a second wave of infections. Futures for the Dow Jones Industrial Average were down by 2 percent several hours before the opening bell. Those of the S&P 500 and the Nasdaq fell by 1.7 percent and 1.2 percent, respectively. The Nasdaq closed above 10,000 for the first time in history on Wednesday, its eighth gain in nine sessions. The Nasdaq ended Wednesday up 10 percent on the year. The Dow fell by 1 percent on Wednesday, leaving it down by 5.4 percent so far in 2020. The S&P 500, now down 1.2 percent on the year, dropped by 0.5 percent on Wednesday.

CNBC