The daily business briefing: July 8, 2020

1. Facebook, Zuckerberg fail to sway ad-boycott organizers

Facebook CEO Mark Zuckerberg and Chief Operating Officer Sheryl Sandberg on Tuesday met via Zoom with civil rights groups that organized the Stop Hate for Profit campaign, which has called for companies to pause ads on Facebook and demand it change the way it deals with hate speech on the platform. After the meeting, one of the organizations, Free Press, released a statement expressing disappointment that they "didn't hear anything today to convince us that Zuckerberg and his colleagues are taking action," while NAACP President Derrick Johnson told The New York Times "there was just no response" to the campaign's list of demands. Color of Change head Rashad Robinson said Facebook seemed to be "expecting an A for attendance."

The New York Times CNN

2. Walmart to launch subscription service challenging Amazon Prime

Walmart plans to launch a new subscription service called Walmart+ later this month, Recode reported on Tuesday. The service will cost $98 a year and will include same-day grocery and general merchandise delivery, fuel discounts at Walmart gas stations, early access to deals, and other perks. The big-box retailer had planned to unveil the service in March or April but was delayed because of the coronavirus crisis. Walmart's sales have been boosted by panic-buying during the crisis, but its online sales are still only about one-eighth the size of Amazon's. Walmart+ is seen as a direct attempt to compete with Amazon's Prime subscription service, which now has more than 150 million members. Walmart stock jumped by 7 percent Tuesday after the report.

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Recode CNBC

3. Deutsche Bank to pay $150 million for ignoring Epstein suspicions

Deutsche Bank has agreed to pay a $150 million fine for letting financier Jeffrey Epstein, who committed suicide in jail awaiting trial on sex trafficking charges, make payments to Russian models and make suspicious withdrawals averaging $200,000 per year. The fine is part of a settlement between the German bank and the New York State Department of Financial Services. It is the first settlement with a financial institution related to the notorious sex offender. "For years, Mr. Epstein's criminal, abusive behavior was widely known, yet big institutions continued to excuse that history and lend their credibility or services for financial gain," New York Gov. Andrew Cuomo (D) said in a statement. The case was the latest setback for Deutsche Bank as it struggles to restore its reputation and finances after five years of losses.

Reuters

4. Retailers ask governors for uniform mask requirements

The Retail Industry Leaders Association has sent a letter to the National Governors Association urging states across the country to require masks to help prevent the spread of the coronavirus. "Retailers are alarmed with the instances of hostility and violence front-line employees are experiencing by a vocal minority of customers who are under the misguided impression that wearing a mask is a violation of their civil liberties," Brian Dodge, the retail association's president, said in the letter. The letter from the industry group, which represents Walmart, Target, Best Buy, Walgreens, Home Depot, and other big chains, noted that fewer than half of the states have mask requirements, and said this created confusion. The National Governors Association said Tuesday its members were discussing the request.

USA Today

5. Stock futures struggle to rebound after Tuesday losses

U.S. stock index futures edged higher early Wednesday after falling on Tuesday, snapping a winning streak that had lifted the Nasdaq to a new high. Futures for the Dow Jones Industrial Average and the S&P 500 were down by about 0.2 percent several hours before the opening bell, after spending much of the morning slightly higher. Futures for the Nasdaq were flat. On Tuesday, the Dow dropped by 1.5 percent after two days of gains. The S&P 500 fell by 1.1 percent, ending a five-day winning streak. The Nasdaq fell by 0.9 percent after hitting its 27th intra-day high of 2020. "Concerns about rising U.S. COVID case counts continued to shake confidence in reopening efforts," Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC.

CNBC