The daily business briefing: July 29, 2020

1. Kodak gets $765 million government loan to launch pharmaceutical division

The federal government announced Tuesday that it would lend $765 million to the Eastman Kodak Company, known for making cameras and film, to help it start producing pharmaceutical ingredients. A new division, Kodak Pharmaceuticals, will focus on manufacturing chemicals used to make generic drugs, creating 350 jobs in New York and Minnesota. Executive Chairman Jim Continenza told The Washington Post that Kodak, which already has made some materials for drug companies, is "doing this to help tighten and fix the supply chain of pharmaceuticals in America." The aim is to help reduce U.S. reliance on China. Kodak has struggled to survive in a world where people take their snapshots with smart phones. The company's stock more than tripled after the loan was announced.

The Washington Post

2. U.N.: International tourism fell 98 percent in May due to pandemic

Coronavirus pandemic lockdowns and business closures dragged down international tourist numbers by 98 percent in May, compared to the same month last year, the United Nations World Tourism Organization said Tuesday. Global tourism since January was down by 56 percent. The decline resulted in the loss of $320 billion in international tourism revenue, more than three times as much as was lost following the 2008 financial crisis. "The latest data makes clear the importance of restarting tourism as soon as it is safe to do so," UNWTO Secretary-General Zurab Pololikashvili said. "The dramatic fall in international tourism places many millions of livelihoods at risk, including in developing countries."

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UNWTO

3. Twitter restricts Donald Trump Jr.'s account over misleading video

Facebook, Twitter, and YouTube have taken down a viral video showing people wearing lab coats and identifying themselves as "America's Frontline Doctors" making spurious claims about COVID-19. "You don't need a mask. There is a cure," one woman says in the video, which was first posted by right-wing media outlet Breitbart News. She argues that treatment with hydroxychloroquine, zinc, and Zithromax cures coronavirus infections, calling studies finding the treatments were ineffective "fake science." Twitter temporarily restricted Donald Trump Jr.'s account on Tuesday, saying that by retweeting the video he violated the company's policy against misleading posts. President Trump also shared versions of the video, even though its claims contradicted statements by Trump administration public health experts.

CNN The Washington Post

4. Stocks make modest gains ahead of Fed decision

U.S. stock index futures edged higher early Wednesday ahead of more corporate earnings and the Federal Reserve's looming policy decision and a big-tech antitrust hearing in Congress. Futures for the Dow Jones Industrial Average were up by about 0.1 percent, while those of the S&P 500 and the Nasdaq gained 0.2 percent and 0.5 percent, respectively, several hours before the opening bell. The Dow and the S&P 500 fell by 0.8 percent and 0.7 percent, respectively, on Tuesday. The Nasdaq dropped by 1.3 percent. Starbucks shares gained 5 percent in extended trading Tuesday after the coffee giant reported a quarterly loss but raised its forecast for the current quarter. Chip-maker Advanced Micro Devices' shares jumped by more than 9 percent after it posted earnings that beat expectations.

CNBC

5. Teachers union says it will back strikes if schools don't reopen safely

The American Federation of Teachers, the country's second-largest teachers union, said on Tuesday that it would support any strike conducted because of safety concerns over reopening schools during the ongoing coronavirus pandemic. President Randi Weingarten said if authorities "don't protect the safety and health of those we represent and those we serve ... nothing is off the table. Not advocacy or protests, negotiations, grievances or lawsuits, or, if necessary and authorized by a local union, as a last resort, safety strikes." The Trump administration has called for schools to fully reopen for the fall session due to start within weeks, despite warnings from teachers and school districts that more funding is needed to provide the necessary social distancing and other safety measures.

NPR