The daily business briefing: July 1, 2020

1. Senate approves extending small-business relief program

The Senate on Tuesday approved a proposal seeking to keep the federal small-business rescue program going. The bill authorizing the Small Business Administration to continue distributing Paycheck Protection Program loans came hours before the program was to expire with $130 billion unspent. If the House passes the bill and President Trump signs it, small businesses will be able to get loans, which can be turned into grants, until Aug. 8. The SBA has approved 4.9 million loans totaling $520.6 billion. Economists expect businesses to need more as coronavirus cases surge. "There are millions of small businesses that are barely open now," Sen. Chris Coons (D-Del.) said. "With the likelihood of either renewed closures or much slower reopenings, we have literally millions of small businesses nationwide at risk."

Politico

2. Airbus to cut 15,000 jobs in its biggest downsizing ever

Airbus announced Tuesday that it would cut 15,000 jobs as sales of its jets plummeted due to the coronavirus pandemic. The downsizing, which will reduce its workforce by 10 percent worldwide, will be the largest in the European aircraft maker's history. The company said the "unprecedented crisis" in the airline industry resulted in a 40 percent decline in its commercial aircraft business. The layoffs will hit in France, Germany, Spain, and Britain. "Airbus is facing the gravest crisis this industry has ever experienced," CEO Guillaume Faury said in a statement Tuesday. "We must ensure that we can sustain our enterprise and emerge from the crisis as a healthy, global aerospace leader, adjusting to the overwhelming challenges of our customers."

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The New York Times

3. Fed chair warns lawmakers U.S. economy on 'extraordinarily uncertain' path

Federal Reserve Chair Jerome Powell told members of the House Financial Services Committee on Tuesday that the U.S. economy remains on an "extraordinarily uncertain" path as the coronavirus crisis continues. He said the recent signs of rebounding hiring and consumer spending are encouraging, but that as businesses reopen the country faces "new challenges — notably, the need to keep the virus in check." Powell said a full-fledged economic recovery will require containing the virus and convincing Americans it is safe for them to return to normal. Powell's caution contrasted with Treasury Secretary Steven Mnuchin's testimony talking up the economic rebound. Mnuchin noted that retail sales soared as nearly 80 percent of U.S. small businesses were able to open "at least partially."

The Washington Post

4. EU to reopen borders to 14 countries, U.S. excluded

The European Union announced Tuesday that it will open its external borders Wednesday after finalizing a list of 14 countries — including Australia, New Zealand, South Korea, and Canada — whose residents will now be able to travel to the bloc for non-essential reasons amid the coronavirus pandemic. The United States, along with Russia, Brazil, and India, has been left off the list (with exceptions) for at least 14 days due to surging infections, while China's inclusion is "subject to confirmation of reciprocity." The policy, which is based on country of residence rather than nationality, isn't legally binding. Member states could theoretically allow travelers from non-approved countries, but the EU could retaliate by closing borders within the bloc, hampering the reopening of free trade and travel.

The New York Times The Associated Press

5. Stocks wobble after strong 2nd quarter rebound

U.S. stock index futures inched down early Wednesday as concerns about economic fallout from a new coronavirus surge continued to weigh on markets. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq fluctuated between losses and gains, but were down by 0.3 percent or less several hours before the opening bell after Wall Street rebounded from a historic selloff to finish its best quarter in decades. Late Monday, Goldman Sachs analysts released a note saying that a national mask mandate could reduce the spread of the coronavirus, preventing 5 percent GDP loss from additional lockdown measures. "If a face mask mandate meaningfully lowers coronavirus infections ... it could substitute for renewed lockdowns that would otherwise hit GDP," the researchers wrote.

CNBC Forbes