Overseas Headlines- August 27, 2020

August 27, 2020

United States:
U.S. Jobless Claims Decline to 1 Million After Prior Week’s Rise
“Applications for state U.S. unemployment benefits decreased last week following an unexpected jump, indicating the labor market’s gradual recovery is back on track as Covid-19 infections ease from a surge in the prior two months. Initial jobless claims in regular state programs fell by 98,000 to 1.01 million in the week ended Aug. 22, Labor Department data showed Thursday. Continuing claims — the total number of Americans claiming ongoing unemployment assistance in those programs — also dropped in the week ended Aug. 15, though remained extremely elevated at 14.5 million.”



German Economic Crisis Response Could Have Sting in the Tail

“Germany extended another crisis tool to prevent corporate bankruptcies, a move that critics say will store up bigger problems later for Europe’s largest economy. The longer suspension on insolvency filings has raised alarm bells that it’s masking a growing credit risk that could explode into a wave of bankruptcies when the moratorium ends. It may also be creating a cohort of zombie companies that hold back investment and innovation and act as a drain on the economy.”



China’s Missiles Warn U.S. Aircraft Carriers to Stay Away

“China’s latest volley of missile launches into the world’s most hotly contested body of water served as a warning to two key U.S. targets: aircraft carriers and regional bases. The missiles launched into the South China Sea on Wednesday included the DF-21D and DF-26B, the South China Morning Post reported, citing a person close to the People’s Liberation Army. Those weapons are central to China’s strategy of deterring any military action off its eastern coast by threatening to destroy the major sources of U.S. power projection in the region.”


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