Protests across the nation over the death of George Floyd, the black man who was killed by a policeman, are grabbing the headlines. Many have been arrested during the protests over the weekend and they do not seem ready to abate. Police officers have been injured and the National Guard has been activated in 12 states. They have also been brought in to the White House. The protests near the White House turned violent and the President had to be removed to a bunker. Curfews had to be enacted in two dozen large cities and some shootings have occurred.
The Protests Are Hurting Recovery
When news like this is seen in the media, it is very unlikely that the economy is going to be made stronger. The opposite will happen as stores are closed and some even looted or destroyed. Public transportation systems were shut down in Miami-Dade.
The protests are likely to cause two problems that will hurt the economic recovery. The first is that it will cause a lot of would-be shoppers to decide to stay home instead of risking being caught in the violence. They may also think that if the protests are occurring in their city that the store they want to go to is going to be closed and stay home.
The second problem is that it may promote the spread of coronavirus. Later, this could cause whole areas and possibly cities to be shut down again.
China’s Manufacturing Slows
While the world was waiting for China to get its factories churning out their products at max capacity again, it appears that a lull has occurred. This time, the lull does not seem to be caused by coronavirus or a lack of workers in the factories, but by a lack of demand for many products as other nations are still in a state of lockdown. A poor economy and more than 40 million people in the U.S. being out of work does not help, either.
Disney Stops Selling New Tickets
In a move that Disney said would increase the experience of their visitors, Disney is bringing in new steps to limit the number of people visiting their parks. It includes canceling some existing reservations to enable better social distancing. They are set to open on July 11 but are no longer making hotel or dinner reservations, and they are not selling any new tickets to the park. They will be selling new tickets and making new reservations after July 11 but only on a 60-day window after they open in July.
The Meat Industry Is Being Investigated
Recent meat prices in the store have risen higher than prices have been for a long time. This has surprised lawmakers because farmers are selling for less than usual. Farmers would rather sell low than have to kill it themselves and not get anything. Prices at the store, however, are much higher than usual, and now the Department of Justice wants to know why. Meatpackers are saying that it is because they are having trouble getting enough workers (many are getting COVID-19) and cannot keep up with demand. The DOJ is investigating the biggest meatpacking companies for possible unfair practices and market manipulation.
Oil Prices Affected by OPEC+ Meeting
Oil prices have dropped slightly as the stock market is waiting to hear the results of an OPEC+ meeting being held this week. They are expected to discuss whether or not they will extend the recent cut in production levels. If they do, oil prices in the U.S. could reach $40 per barrel.