The daily business briefing: June 24, 2020

1. EU reportedly prepared to block Americans from entry after borders reopen

The European Union is preparing to open its borders on July 1, but will reportedly continue blocking Americans from entering because a recent surge in new COVID-19 cases shows the U.S.'s infection rate is still too high. The EU is compiling two potential lists of countries — one that only includes nations with an infection rate lower than the EU average of 16 per 100,000 people over the past two weeks, and another with some that are slightly higher (the U.S. is at 107), although that's not the sole criterion for determining which countries will be allowed. Either way, the U.S. seems likely to join Russia, Brazil, and China on the list of countries whose travelers will be denied entry. Brussels will reportedly be revising the list every two weeks, so any ban could be lifted as soon as a country's infection rates drop.

The New York Times

2. Appeals court reduces talc verdict but calls J&J conduct 'outrageous'

The Missouri Court of Appeals on Tuesday rejected Johnson & Johnson's request to throw out a talcum powder verdict but reduced the amount awarded to 22 plaintiffs to $2.1 billion, from the original $4.7 billion. A St. Louis jury found in 2018 that Johnson & Johnson concealed for decades that its talc contained asbestos and could cause ovarian cancer. The appeals court said it was reducing the verdict because some of the plaintiffs were not from Missouri and should not have been included in the case. But it said the plaintiffs had proven "that defendants engaged in outrageous conduct because of an evil motive or reckless indifference. There was significant reprehensibility in defendants' conduct." J&J said it would appeal to the Missouri Supreme Court.

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The Associated Press Reuters

3. Walmart to stop displaying Mississippi state flag over Confederate symbol

Walmart said Tuesday that it would stop displaying the Mississippi state flag in its stores while the state debates whether to change the design, which contains the Confederate flag emblem. "We believe it's the right thing to do... as part of our commitment to provide a welcoming and inclusive experience for all of our customers in the communities we serve," company spokesperson Anne Hatfield said. The retail giant already bars sales of the Confederate battle flag itself. The Mississippi Baptist Convention on Tuesday called for state lawmakers to adopt a new flag without the Confederate symbol, saying some see the current flag "as a celebration of heritage" while "a significant portion of our state sees it as a relic of racism and a symbol of hatred."

Reuters The Associated Press

4. Stock futures fall after Nasdaq reaches latest record

U.S. stock index futures fell early Wednesday after Wall Street posted modest gains on Tuesday. Futures for the Dow Jones Industrial Average and the S&P 500 were down by roughly 1 percent several hours before the opening bell. Futures for the tech-heavy Nasdaq Composite, which closed at its 21st record high of the year on Tuesday, were down by about 0.5 percent. The Nasdaq rose by 0.7 percent on Tuesday in its eighth straight day of gains, its longest winning streak since an 11-day climb in December. Investors remain focused on the coronavirus pandemic, with swings often following any news with implications on efforts to reopen the economy. White House health advisor Dr. Anthony Fauci told Congress on Tuesday that surging infection rates in some states were "disturbing," although he said he expected a vaccine by early 2021.

CNBC

5. Report: Italy approves guarantee for $7.1 billion Fiat Chrysler loan

Italy has approved state guarantees for a $7.1 billion loan to Fiat Chrysler's Italian unit, Reuters reported Wednesday, citing a source close to the matter. The approval by Italy's audit court marked a final step toward what will be the largest crisis loan to a European carmaker. The country's economy ministry has already signed off on the loan decree. The loan under Rome's COVID-19 emergency financing program will be disbursed by Italy's biggest retail bank, Intesa Sanpaolo, which has already approved it pending the government's guarantee of 80 percent of the loan amount. The scheme is controversial in Italy because Fiat Chrysler is discussing a merger with French rival PSA and the parent company for the Italian-American carmaker is registered in the Netherlands.

Reuters