To: IC720 who wrote (1250001 ) 7/27/2020 1:04:28 PM From: sylvester80 Respond to of 1577853 WSJ: Fiscal Cliff Speed Limit The U.S. economy lagged in July and Europe's bounced back, evidence that the two economic powerhouses are recovering at different speeds from the coronavirus pandemic. In the U.S., output in the service sector shrank for the sixth consecutive month as companies faced a wave of coronavirus cases that prompted new restrictions in several states. Manufacturing output expanded for the first time since February as new orders ticked up. Overall, economic activity in the U.S. was unchanged. In Europe, overall activity increased at the fastest pace in more than two years after four months of contraction, Paul Hannon and David Harrison report. The divergence suggested that European countries could be benefiting from the strict lockdowns they pursued in the spring, as well as current policies regarding mask wearing, social distancing and bans on large gatherings. Most European countries are seeing just several hundred cases of new infections a day, compared with several thousand at the peak of the crisis. Federal Reserve officials meet Tuesday and Wednesday facing growing doubts about the prospect for a sustained economic rebound. Officials have warned this month in speeches and interviews that the economy faces a deeper downturn and more difficult recovery if the country doesn't take more effective action to slow the spread of Covid-19 infections. The Fed isn't likely to roll out new stimulus measures this week but is debating how to provide more support to the economy once the economic outlook becomes clearer, Nick Timiraos reports. Jumbo mortgages aren't the cheapest anymore. The reversal is just one of the ways the coronavirus crisis has wreaked havoc on the mortgage market. The same force pushing most mortgage rates to record lows -- investors piling into safe- haven assets like government bonds -- has pushed jumbo loans out of favor, Orla McCaffrey reports. Gold prices rose to a new closing record for the first time since 2011, extending a summer surge fueled by nervous investors adding bullion to their portfolios as the coronavirus muddies the global economic outlook, Amrith Ramkumar and Joe Wallace report. Big Old Jet Airliner Boeing (BA) and Airbus are making planes that airlines aren't collecting, as the coronavirus pandemic wreaks havoc on travel and the aerospace industry. Boeing(BA) delivered 20 aircraft in the second quarter, the lowest quarterly total since 1963, the early part of the jet age. Airbus reported delivering 74 jets in the second quarter, down from 227 in the same period a year before. The drop in deliveries has added financial stress at the plane makers, which analysts expect to report burning through billions of dollars in cash during the second quarter, Andrew Tangel reports. RESCUES ARE RUINING CAPITALISM "When the pandemic passes, authorities need to shift out of rescue mode and start weaning capitalism off easy money and bailouts. They have to recognize how heavy government intervention is distorting the price signals that make free markets efficient in allocating capital. Otherwise, they will continue creating more zombies and monopolies, widening inequality, undermining productivity and slowing growth. For all their good intentions, they will continue to feed the dysfunction that is alienating younger generations and deforming capitalism," Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, writes in the WSJ.