LBLV provides an overview of economic news.

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The main economic news for Thursday, July 2:

1. Facebook faces boycott over violent content
Facebook faced with boycott as hundreds of advertisers have publicly announced they are ceasing advertising purchases from the company in a protest labeled #StopHateForProfit, which was launched on Wednesday due to the media giant’s inability to properly moderate racist and violent content as well as misinformation. However, advertising experts believed that those decisions are not too damaging for global firms. Gerard Francis Corbett, a communications strategy consultant based in Silicon Valley, said “by pulling ads, they save money and make a low-risk statement that results in positive publicity and marketing for their brands among constituents.” Facebook has been criticized among marketers, company’s users and employees, and anti-hate groups for years. The confluence of a global pandemic, rampant unemployment and social unrest, not seen since 1968, has upturned movements against the corporation in ways, unimaginable only a few years ago.

2. Global stocks rise amid hopes on COVID-19 vaccine
Global stock markets rose, with Asian shares traded near four-month highs on Thursday amid risk sentiments arising due to positive data, showed that COVID-19 vaccine from Pfizer and Germany’s BioNTech is well tolerated in early-stage human trials. Along with investors’ awaited U.S. employment data later today, which is expected to strengthen sentiments, E-minis for S&P500 climbed 0.3%. In Europe, futures for Euro Stoxx 50 rose 0.8%, while Germany’s index DAX added 0.8% and London’s FTSE increased 0.6%. All major Asian benchmarks were upbeat with Japan’s Nikkei rising 0.1%, China’s blue-chip index surging 1.7% and Hong Kong’s Hang Seng gaining 1.8%. Overall, MSCI’s broadest index of Asia Pacific shares outside of Japan soared 1.5% to levels last seen in early March.

3. U.S. House set to fine banks, related with China
The U.S. House of Representatives decided to pass a legislation, which aims to penalize banks cooperating with Chinese officials who implement a national security law in Hong Kong. This move is reflecting concern in Washington over China’s enactment of a security law seen as ending the autonomy that allowed the former British colony to thrive as an international financial center. Last week, the U.S. Senate passed the legislation similar to House’s. However, under congressional rules the bill must return to the Senate and be passed there before being sent to the White House for President Donald Trump to sign into law or veto.

4. SoftBank’s backed Lemonade completes IPO
Insurance startup Lemonade Inc, which is backed by SoftBank Group Corp, unveiled it raised $319 million in its U.S. initial public offering, being the latest company to capitalize on the sharp recovery in U.S. investor appetite for new stocks. Lemonade priced 11 million shares at $29 per share, while the previous price range was between $26 and $28 per share. The IPO values the company at $1.6 billion, but was less than the $2.1 billion valuation at last year, after Lemonade raised $300 million in a funding round led by Japan’s SoftBank.