China has announced that Hong Kong is now under a new resolution. It has been placed under its National Security plan, which is the same form of government used in mainland China. The resolution will eliminate dissent of any kind and all foreign influence. On the first day – Wednesday, the police arrested more than 300 protestors and many journalists. They used pepper spray to break up the crowds before they could start protesting.
The situation in Hong Kong has resulted in Taiwan’s officials responsible for handling all affairs with the mainland – the Mainland Affairs Council – developing a plan to enable people from Hong Kong to move there. Help will also be provided to enable them to live and work there as well.
Sanctions Urged Against Some Chinese Officials in New Bill
Something that may also aggravate China is that the U.S. Congress has passed a bill that would impose sanctions on China for its oppression against the Uighurs and some other ethnic groups. There are currently more than one million Uighurs and others who have been rounded up and put in concentration camps (internment camps) in China. The sanctions would involve restrictions on certain Chinese officials.
Europe and Japan Are Planning a Massive Economic Stimulus
Seeking to prevent serious economic problems as a result of the coronavirus shutdowns, both the European Commission (EC) and Japan are going to inject trillions to boost their economies. The EC is planning on placing 750 billion euros into the economy to help struggling nation states – some as grants and some of it as loans. Japan is looking to inject about $1.1 trillion into its economy. This one follows a previous one of the same size about one month ago.
Boeing Lays Off Thousands
Like many other large companies, Boeing’s problems were made worse when it was discovered that it was developing planes that were less than the quality they should have been (resulting in the grounding of all 737s) – then coronavirus struck. Today, Boeing announced that it was laying off 12,000 jobs in the U.S. Of this number, more than 5,500 took voluntary layoffs. The company also said that thousands more will be laid off soon to reduce its workforce of 160,000 by 10 percent, enabling the company to reorganize. Today, Boeing stock rose by 3.37% and then closed at $149.52.
Disney World Announces Opening
After being closed due to coronavirus, Disney World in Florida has announced its opening date. It is going to be a phased opening with the Magic Kingdom and the Animal Kingdom opening on July 11th. The following week, on July 15th, EPCOT and Hollywood Studios will be opening. The Florida Park employs more than 65,000 people. Safety measures will be in place and guests and employees will be required to wear face masks and have their temperature checked before entering the park.
The Chinese Offshore Yuan Stumbles
The offshore Chinese yuan dived today at closing. It is believed that the delisting of Chinese companies from the S&P 500 may have influenced this market move. Chinese companies that do not permit audits by the U.S. will be removed from the stock market. The yuan was valued at $7.1963 today.
The coronavirus pandemic has now resulted in more than 100,000 deaths in the United States. Multiple companies in the U.S. and abroad are working on a coronavirus vaccine and some are already involved in human testing or soon will be. A week ago there were only 12 states that had an increase in COVID-19 cases. This week 20 states that have an increasing number of cases compared to their previous weeks. This may mean that the second wave of cases may have already started.