The daily business briefing: July 21, 2020

1. 3 potential coronavirus vaccines show promise in early trials

Three laboratories on Monday released promising results in early human trials of potential coronavirus vaccines. Two of the vaccine developers — one a partnership between Oxford University and the British-Swedish drug maker AstraZeneca, and the other a Chinese company, CanSino Biologics — published peer-reviewed studies in the British medical journal The Lancet. All three teams said their vaccines had produced strong immune responses in their subjects, with minor side effects. Scientists cautioned that the responses did not guarantee immunity. "What this means is that each of these vaccines is worth taking all the way through to a Phase III study," said Dr. Peter Jay Hotez, a vaccine researcher at the Baylor College of Medicine. "That is it. All it means is 'worth pursuing.'"

The New York Times

2. EU leaders agree to $857 billion economic stimulus

European Union leaders reached a deal early Tuesday on a huge stimulus plan for coronavirus-ravaged economies. The $2.1 trillion budget agreement, which came at the end of a four-day summit in Brussels, includes a $857.33 billion recovery fund to help lift the continent out of its worst recession since World War II. French President Emmanuel Macron, who pushed for the deal with German Chancellor Angela Merkel, called the agreement "truly historic." Summit chairman Charles Michel called the agreement a "pivotal moment" for the 27 countries in the trading bloc, after the threat that the fractious summit would fail to yield a deal raised concerns about the EU's viability after Britain's departure. "This agreement sends a concrete signal that Europe is a force for action," Michel said.

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Reuters

3. Workers hold strike against racial and economic inequality

Service-industry, fast-food, and gig economy workers joined organized labor Monday in a protest against systemic racism and economic inequality. Organizers said at least 20,000 workers in 160 cities walked off the job to demand better workplace treatment of Black Americans. More than 60 labor unions and racial justice organizations helped organize or otherwise backed the Strike for Black Lives event. Rev. William Barber II, co-chairman of the Poor People's Campaign, one of the groups that supported the strike, said the protesters want to show that if people are concerned about those wrongly killed by police, "we have to also be concerned about the people who are dying and being put into lethal situations through economic exploitation all over the country."

The Associated Press

4. Stock futures rise after tech shares surge

U.S. stock index futures rose early Tuesday after a surge by technology shares helped lift the S&P 500 back into positive territory for 2020. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were all up by 0.6 percent or more several hours before the opening bell. The tech-heavy Nasdaq is coming off a 2.5 percent gain on Monday, led by a 7.9 percent jump by Amazon. IBM shares rose by 4.7 percent in after-hours trading after the company reported better-than-expected second-quarter earnings. Investors are monitoring developments on a new stimulus package for the coronavirus-damaged economy as the $600 per week federal unemployment insurance benefit nears its expiration date at the end of the month.

CNBC

5. LinkedIn cutting 960 jobs due to coronavirus slowdown

Microsoft's LinkedIn professional networking site said Tuesday it would cut about 960 jobs, or 6 percent of its global workforce. The cuts came in response to reduced demand for LinkedIn's recruitment products as companies hurt by the coronavirus crisis cut back on hiring. The cuts will affect the company's sales and hiring divisions. Those losing their jobs will get at least 10 weeks' severance pay and, for those in the U.S., a year of health coverage, Chief Executive Ryan Roslansky said. Laid-off staff will be allowed to keep company issued mobile phones, laptops, and other equipment to help them transition into new work. They also will be first in line to be hired for new positions. "I want you to know these are the only layoffs we are planning," Roslansky said in a message to staff.

Reuters