The U.S. economy plunged at a record rate in the spring but is poised to break a record for an increase in the just-ending July-September quarter

WASHINGTON — The U.S. economy plunged at an unprecedented rate this spring and even with a record rebound expected in the just-ended third quarter, the U.S. economy will likely shrink this year, the first time that has happened since the Great Recession.

The gross domestic product, the economy’s total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% drop estimated one month ago, the Commerce Department reported Wednesday.

The government’s last look at the second quarter showed a decline that was more than three times larger than the

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By Susan Mathew

Sept 30 (Reuters)Mexico’s peso jumped as much as 2.2% on Wednesday, and most other Latin American currencies erased session losses as the dollar pared gains, with hopes of conservative spending in Brazil bolstering its currency.

The greenback gave up gains it had made after a chaotic U.S. presidential debate. It fell against most currencies as risk sentiment got a lift after U.S. government officials expressed hope that another stimulus package could be passed to help ease the economic impact of the coronavirus-induced recession. FRX/

The peso MXN=more than made up for losses over the last three sessions and was poised for its best session in three weeks. While it is on track to post its best quarter this year, the impact of rising coronavirus cases on a battered economy looms large.

Brazil’s real BRBY gained 0.4% after Economy Minister Paulo Guedes said

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With central banks anchoring official rates at historic lows, investors are understandably concerned that government bonds won’t act as an offset to equity risk the way they have in the past. But recent history suggests that low – and even negative – yields don’t eliminate the buffer that’s provided by government bonds.

In fact, amid the dramatic sell-off in risk assets earlier this year as the global pandemic took hold, and again in September when equity markets pulled back, government bonds served as one of the few true offsets to equity market volatility.

For example, throughout 2020, the correlation between US Treasuries and the S&P 500 (Display, left) has remained below -0.4 on down days for the stock market.

And in Europe, yields on 10-year German Bunds were well into negative territory when stock markets fell in March and September. But correlations between Bunds and the MSCI Europe

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CNBC’s Scott Wapner talks to Chamath Palihapitiya, Social Capital Founder and Chief Executive Officer during the 2020 Delivering Alpha conference on Sept. 30th, 2020.

CNBC

Outspoken technology investor Chamath Palihapitiya said Wednesday that the Federal Reserve will have more influence over the markets in the next four years than whomever takes the White House in November. 

“Irrespective of whether the Democrats or Republicans are in office, if you’re trying to generate returns you need to be long and you will probably get rewarded,” Social Capital Founder and Chief Executive Officer Chamath Palihapitiya said at the Delivering Alpha conference presented by CNBC and Institutional Investor.

“I think the markets are going higher,” Palihapitiya, an early Facebook executive, added. “I think the markets are going higher because I think the presidency and the impact of the presidency is being divorced from the economic future prosperity of America.”

While many investors are focusing

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Photo of Julia Wallace

A Border Patrol vehicle parked at an opening in the fence near Brownsville, Texas, Jan. 20, 2019.

A Border Patrol vehicle parked at an opening in the fence near Brownsville, Texas, Jan. 20, 2019.

TAMIR KALIFA /NYT

Two more construction contracts have been awarded to build the border wall in Webb County, together totaling 40 miles and a combined contract value of nearly half a billion dollars.

A contract for 27 miles was awarded to Fisher Sand & Gravel Co., for a contract value of $283,150,000. And another contract was awarded to Southwest Valley Constructors Co. to build 13 miles of barriers for a total contract value of $201,250,000, U.S. Customs and Border Protection announced Wednesday.

These contracts include a 30-foot steel bollard wall, all-weather roads, lighting, cameras and other technology. The government plans for construction to begin in September 2021.


This makes four construction contracts that the federal government

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PepsiCo  (PEP) – Get Report has done well this week, jumping more than 3% as investors gear up for earnings.

The company will report its quarterly results on Thursday before the stock market opens. The stock has reclaimed and held several key levels this week.

However, PepsiCo is among the group of stocks that’s been unable to make new highs amid this run. While the S&P 500 has hit new highs, PepsiCo remains stubbornly below resistance.

On the plus side, it’s handily beating its biggest peer, Coca-Cola  (KO) – Get Report.

For the year, PepsiCo has risen 1%, besting Coca-Cola’s 11% decline. While the two have similar performances over the last six months, PepsiCo is just 6.2% off its highs vs. down 18% for Coca-Cola.

The stock’s reaction was relatively muted to its last earnings beat, but bulls are hoping to get more of PepsiCo

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CLEVELAND, Ohio — A test prep service and a chiropractor are struggling. A clothing shop is optimistic, while making custom masks to help get by. And an RV business is booming.

Cleveland.com spoke with 15 Northeast Ohio businesses that in August signed an open letter to Congress, requesting more federal aid to cope with the shockwaves of the pandemic. Exactly how they’re faring during the pandemic is different, but as it stretches receiving more federal relief would be helpful for most.

“Small businesses were affected greatly, depending on what industry you’re in,” said Rob Scott, regional administrator for the Small Business Administration. “Obviously, some industries like the hospitality industry, like the restaurant industry, are seeing different effects from say a manufacturing company or a service industry.”

During a July survey from Goldman Sachs, only 36% of small businesses said their business could last through another shutdown.

The Cleveland businesses that

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Here’s what you need to know:

Credit…Pool photo by Drew Angerer/EPA, via Shutterstock

Treasury Secretary Steven Mnuchin said on Wednesday that he was giving stimulus talks “one more serious try” and that he would present House Speaker Nancy Pelosi with a counteroffer later in the day that lays out the Trump administration’s proposal.

“I think we’re hopeful that we can get something done,” Mr. Mnuchin said at a conference sponsored by CNBC.

The Treasury secretary said that the proposal would be similar to the one unveiled by the House Problem Solvers caucus this month and that it would be about $1.5 trillion.

Mr. Mnuchin said that it would include liability protections for schools and businesses, more economic impact payments, support for airlines and relief money for emergency workers

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SSEC -0.2%, CSI300 -0.1%

HK->Shanghai Connect daily quota used -0.9%

FTSE China A50 +0.1%,

BEIJING/SHANGHAI, Sept 30 (Reuters)China shares closed lower on Wednesday as losses in real estate and materials stocks outweighed optimism from upbeat factory activity surveys, with the markets recording their worst monthly loss since May 2019.

** The Shanghai Composite index .SSEC ended down 0.2% at 3,218.05 and the blue-chip CSI300 index .CSI300 0.1%. For the month, the Shanghai Composite index lost 5.23% and the CSI300 index 4.75%.

** Markets fell in September mainly due to worries over ongoing Sino-U.S. tensions and fluctuations in overseas markets on concerns about a second wave of coronavirus outbreak.

** Shanghai shares of Semiconductor Manufacturing International Corp 688981.SS, China’s largest chipmaker, slid by 25% during the month amid the newly imposed export restrictions by the United States, citing a risk of military use.

** China’s factory activity extended

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HONG KONG—China’s most-indebted property developer averted a near-term cash crunch, sending its shares and bonds sharply higher Wednesday, a surprising turnaround from less than a week ago.

China Evergrande Group

said a group of investors agreed not to force it to cough up more than $12 billion to repurchase their stakes in a major subsidiary. Another of its businesses separately filed documents for a Hong Kong listing that could raise between $2 billion and $3 billion in the coming months, according to a person familiar with the matter.

Shenzhen-based Evergrande is Asia’s largest junk-bond issuer and was China’s largest developer by contracted sales last year. It is a sprawling conglomerate, with projects in various stages of development all over the country.

The company has borrowed heavily in China and offshore as it grew during the past decade. As of June it carried outstanding debt totaling 835.5 billion yuan, equivalent to

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