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Wall Street opens lower, but still on track for weekly gain

The Associated Press

Stocks are opening mostly lower on Wall Street following a mixed showing in overseas markets. The S&P 500 fell 0.4% in early trading Friday, but it’s still on track for a weekly gain. Hong Kong’s main index fell 5.6% after China made more moves to limit political opposition in the former British colony. China also abandoned its longstanding practice of setting economic growth targets. European markets shook off some early weakness and were mostly higher. Oil priced headed lower after six straight gains, which weighed on energy stocks. Trading was subdued ahead of the Memorial Day holiday in the U.S.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story is below:

Stock markets slipped on Friday, led by a nearly 6% decline in Hong Kong, after communist leaders in China proposed legislation that could limit opposition activity in the former British colony.

For now, flaring tensions between the U.S. and China over Hong Kong and other issues appear to have eclipsed optimism over moves to reopen many economies stalled by the coronavirus pandemic.

Germany’s DAX shed 0.3% to 11,028 while the CAC 40 in Paris lost 0.2%, to 4,425. Britain’s FTSE 100 skidded 0.8% to 5,969.

The future for the S&P 500 lost 0.2% and the future for the Dow industrials was down 0.3%, auguring a weak open on Wall Street.

China’s National People’s Congress opened its annual session in Beijing and Premier Li Keqiang delivered a work report that promised 2 trillion yuan ($280 billion) in support for local governments to help them fight the pandemic and create jobs as the country struggles to revive growth.

Li told the gathering that Beijing would set no economic growth target in order to focus on fighting the disease. He warned that the battle against the pandemic isn’t over and urged the country to “redouble our efforts” to revive the economy.

Beijing’s move to take over long-stalled efforts to enact national security legislation in semi-autonomous Hong Kong spooked investors who have endured months of pro-democracy demonstrations last year that at times descended into violence between police and protesters.

The proposed bill is aimed at forbidding secessionist and subversive activity, as well as foreign interference and terrorism. Such proposals are certain to be approved by the largely ceremonial parliament.

“Traders around the world are playing the waiting game to see details of the new Hong Kong law to gauge how severe the terms are,” Stephen Innes of AxiCorp said in a commentary.

More specifically, he said, attention is on the U.S. response to the possible impact on Hong Kong’s special economic status. Under the terms of Britain’s handover of control of the territory to Beijing, the city kept its own trade regime and finances and a legal system based on western-style civil liberties not enjoyed elsewhere in China.

The proposal, one of the most controversial items on the Chinese legislative agenda in years, has drawn strong rebukes from the U.S. government and rights groups. On Thursday, the White House issued a report attacking Beijing’s economic policies and human rights violations, expanding on get-tough rhetoric President Donald Trump expects to resonate with voters ahead of the election in November.

Hong Kong’s Hang Seng index sank 5.6% to 22,930.14 and the Shanghai Composite index dropped 1.9% to 2,813.77.

Elsewhere in Asia, Japan’s Nikkei 225 index fell 0.8% to 20,388.16 despite a pledge from the Bank of Japan to devote $280 billion to banks for financing small and medium-size businesses battling economic hardships brought on by the coronavrius pandemic. The central bank said it will start providing the zero-interest, unsecured loans in June, expanding earlier stimulus measures.

In South Korea, the Kospi lost 1.4% to 1,970.13, while Australia’s S&P/ASX 200 declined 1% to 5,497.00.

India’s Sensex declined 1.2% after the central bank cut the benchmark interest rate to 4%, the lowest level in a decade, as its governor forecast the economy would fall into a contraction this year.

This week has seen more gloomy news on job losses, with the U.S. Labor Department saying the number of people thrown out of work since the virus struck has climbed to nearly 39 million. Japan reported week trade figures and economic activity in Europe continued to shrink rapidly

Oil prices fell back on Friday, with benchmark U.S. crude losing $1.95 to $31.97 per barrel in electronic trading on the New York Mercantile Exchange. It closed higher on Thursday, the sixth day day in a row, gaining 43 cents.

Brent crude oil, the international standard, declined $1.71 to $34.35 per barrel.

Crude oil started the year at about $60 a barrel, but plummeted earlier this year as demand sank due to widespread travel and business shutdowns related to the coronavirus. The price has risen this month as oil producing nations cut back on output and the gradual reopening of economies around the globe have driven up demand.

The yield on the 10-year Treasury note, a benchmark for interest rates on many consumer loans, fell to 0.65% from 0.66% late Thursday.

The dollar fetched 107.46 Japanese yen, down from 107.63 yen on Thursday. The euro weakened to $1.0903 from $1.0950.

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AP Business Writer Joe McDonald contributed.

Reynolds says continued closures would have societal cost

BY 

Within 10 days, the majority of businesses and facilities Governor Kim Reynolds ordered to close in March will have been allowed to reopen, under new pandemic-related guidelines. Reynolds says critics of her decisions fail to acknowledge the distress that closures placed on the state’s economy and on individuals with mental health concerns or a volatile home life.

“There is a societal cost, also, to just shutting down and not realistically moving forward through this pandemic,” Reynolds says. “We can do it. We are doing it. We’re going to continue to do it and we’re going to continue to manage it.”

By mid-day Thursday, 400 Iowans had died of COVID-19. Reynolds says she’s monitoring data points that indicate the threat from the virus is leveling off. Reynolds has repeatedly said with expanded testing and ample hospital space, the state will be able to manage COVID-19 outbreaks that may occur.

“We have never said that we were going to prevent people from getting COVID-19. That’s unrealistic. It’s unattainable,” Reynolds says. “What we have to do is learn to live with it and manage the virus. And we have to get things back to normal.”

Senate Democratic Leader Janet Petersen of Des Moines says Reynolds has presented Iowans with the “false choice” of saving elderly Iowans or saving the economy. Petersen says the number of COVID-19 cases is still increasing and reopening businesses too soon will be deadly for our health and economy.

Ottumwa man facing drug charges

An Ottumwa man who was arrested for assault last week is now facing drug charges.  You’ll remember 34-year-old Carlos Mendez was arrested and charged with aggravated assault after he allegedly threatened a woman with a handgun in an alley.  Ottumwa Police went on to execute search warrants on Mendez’s apartment and a vehicle.  Those searches turned up controlled substances, items consistent with drug dealing and over $18,000 in cash.  Mendez is now charged with possession with intent to deliver a controlled substance, possession with intent to deliver less than 5 grams of meth and failure to have a drug tax stamp.

Trial date set for two men in fatal fire

Two men accused of negligence in a fire that killed a 7-year-old Oskaloosa boy will go on trial in October.  You’ll remember David Fogle was killed in a house fire in February of last year.  He was in the basement of the home and there were no fire escapes in the basement, so he had no way to get out.  Fogle’s father, Ronald Fogle, and the owner of the home, Kabal Chauhan have been charged with child endangerment and neglect of a dependent person.  Prosecutors allege Ronald Fogle and Chauhan knew the basement didn’t have fire escapes.  Trial has been scheduled for October 27.

Crystal Heights Resident dies from coronavirus

Crystal Heights Care Center in Oskaloosa tells the No Coast Network a resident at the center has died from coronavirus.  Two more employees at the center have tested positive for the virus, for a total of six employees and 19 residents who have tested positive for COVID-19.  All staff members and residents at Crystal Heights were tested Wednesday (5/20) for coronavirus.  All residents who test positive for COVID-19 will be in isolation for 14 days.

Meet the H & S Feed & Country Store Pet of the Week: “Copenhagen”

This week’s H & S Feed & Country Store Pet of the Week from Stephen Memorial Animal Shelter in Oskaloosa is “Copenhagen”. Copenhagen is a friendly 4 year old Australian Shepherd/American Blue Heeler mix, who gets along well with people, kids and other dogs, but not so much with cats. He’s a natural-born herding dog, so if he’s around farm animals he will do that… a lot! If you’d like to set up an appointment to meet Copenhagen or any of the pets at Stephen Memorial Animal Shelter, give them a call at 641-673-3991.

Check out our visit with Terry Gott about Copenhagen and expanded shelter hours here:

https://soundcloud.com/user-583130944/pet-of-the-week-5-21

Nearly 39 million have sought US jobless aid since virus hit

By CHRISTOPHER RUGABER

WASHINGTON (AP) — More than 2.4 million people applied for U.S. unemployment benefits last week in the latest wave of layoffs from the viral outbreak that triggered widespread business shutdowns two months ago and sent the economy into a deep recession.

Roughly 38.6 million people have now filed for jobless aid since the coronavirus forced millions of businesses to close their doors and shrink their workforces, the Labor Department said Thursday.

An additional 2.2 million people sought aid under a new federal program for self-employed, contractor and gig workers, who are now eligible for jobless aid for the first time, up from 850,000 in the previous week. These figures aren’t adjusted for seasonal variations, so the government doesn’t include them in the overall number of applications

The continuing stream of heavy job cuts reflects an economy that is sinking into the worst recession since the Great Depression. The nonpartisan Congressional Budget Office estimated this week that the economy is shrinking at a 38% annual rate in the April-June quarter. That would be by far the worst quarterly contraction on record.

Nearly half of Americans say that either their incomes have declined or they live with another adult who has lost pay through a job loss or reduced hours, the Census Bureau said in survey data released Wednesday More than one-fifth of Americans said they had little or no confidence in their ability to pay the next month’s rent or mortgage on time, the survey found.

During April, U.S. employers shed 20 million jobs, eliminating a decade’s worth of job growth in a single month. The unemployment rate reached 14.7%, the highest since the Depression. Millions of other people who were out of work weren’t counted as unemployed because they didn’t look for a new job.

Since then, 10 million more laid-off workers have applied for jobless benefits. Federal Reserve Chair Jerome Powell said in an interview Sunday that the unemployment rate could peak in May or June at 20% to 25%.

Across industries, major employers continue to announce job cuts. Uber said this week that it will lay off 3,000 employees, on top of 3,700 it has already cut, because demand for its ride-hailing services has plummeted. Vice, a TV and digital news organization tailored for younger people, announced 155 layoffs globally last week.

Digital publishers Quartz and BuzzFeed, magazine giant Conde Nast and the company that owns the business-focused The Economist magazine also announced job cuts last week.

The total number of people receiving benefits rose 2.5 million to 25 million in the week that ended May 9, the latest period for which data is available.

Though the flood of layoffs has slowed, last week’s claims filings are still roughly 10 times the typical number that prevailed before the virus struck. And Stephen Stanley, chief economist at Amherst Pierpont, said the most recent layoffs may be particularly worrisome because they’re happening even as states are gradually reopening their economies. This could mean that many companies foresee scant likelihood of a substantial economic recovery anytime soon and so still feel a need to cut jobs.

“There’s a high probability that those layoffs could persist for longer than those that were a function of (businesses) just being closed,” Stanley said.

At the same time, some companies have begun to rehire a limited number of their laid-off employees as states have eased restrictions on movement and commerce.

One rehired worker, Norman Boughman, received an email last week from his boss at a second-hand clothing store in Richmond where he’d worked part time, asking him to return, one day before Virginia allowed most retailers to reopen.

Boughman, who had applied for unemployment benefits to no avail, was happy to be paid again. So far, the job seems secure to him, because the store has been busy, and the owner hasn’t expressed any concerns about business. But even while wearing a mask, Boughman worries about the potential threat to his health.

“We’re having to sort through people’s things, and I feel like that puts us at a higher risk,” he said.

Some economists see tentative signs that economic activity might be starting to recover, if only slightly, now that all the states have moved toward relaxing some restrictions on movement and commerce.

Last week, the three major U.S. automakers, plus Toyota and Honda, recalled roughly 130,000 of their employees back to factories for the first time since the plants had closed in March. That’s about half the industry’s workforce. Some auto executives say sales have held up well enough to support the recall of those employees.

Still, the automakers, like other businesses, are also grappling with the health risks of operating during a pandemic. On Tuesday, Ford had to halt production at two assembly plants after three workers tested positive for the coronavirus. The workers were quarantined for 14 days, and the plants underwent cleaning.

Data from Apple’s mapping service shows that more Americans are driving and searching for directions. Restaurant reservations have risen modestly in states that have been open longer, according to the app OpenTable, although they remain far below pre-virus levels.

In most industries, employees are working more hours than in mid-April, the peak of the virus-related shutdowns nationwide. Data from Kronos, a software company that tracks 3 million hourly workers, shows that shifts worked at its 3,000 client companies are up 16% since the week that ended April 12. Still, the shifts are still down a sizable 25% from pre-virus levels.

Even in states that have been reopened the longest, like Georgia, not enough shoppers are visiting stores and restaurants to support significant rehiring, said David Gilbertson, an executive at Kronos.

“Our data is suggesting this recovery is going to take a while,” Gilbertson said.

Southern Iowa Speedway Sees First Racing Action of 2020

By Jerry Mackey

Oskaloosa, Iowa: One month following the scheduled racing season opener, the Southern Iowa Speedway was able to run races still under the Covid-19 Pandemic guidelines. Following Governor Reynolds restrictions, races were allowed but spectators were not allowed to attend.

A great contingent of drivers attended the opening nights racing action on a misty Wednesday evening which saw a very fast wet track greet the competitors. Our good friends at Kool Seamless Gutters sponsored the night.

The headliner of Wednesday’s night action was the Mid State Machine Stock Car 16 lap main event. Nathan Wood took advantage of the number 1 starting position by virtue of the redraw, and went on to score a very impressive win. Wood led the caution free race flag to flag in easily outdistancing Corey Strothman for the opening night victory. Cody Agee ran a very strong race in taking third.

The Oskaloosa Quality Rental Sportmod main event saw several drivers take their turn at the front throughout the 16 lap feature. With front runners Curtis Vanderwal and Logan Anderson being sidelined with mechanical woes, the lead pack ran in a tight bunch. Jason Bass made the long tow from Ft. Dodge, Iowa payoff in a visit to victory lane on opening night. Bass fought off the late race challenges by defending track champion Blaine Webster, who crossed the line just ahead of Dylan VanWyk.

The Parker Tree Service Hobby Stocks provided lots of racing action as the main event saw lots of twists and turns. Dustin Griffiths and Brad Stephens both led early only to have tire issues send them to the pits for tire changes that forced them to restart from the rear. Stephens came back on the track after his tire change and was clearly a man on a mission as he raced through the field and took lead from Nathan Ballard as the final laps wound down. Stephens crossed under the checkers first ahead of Ballard, and Rick VanDusseldorp.

Jeffrey Delonjay made the long tow from Quincy, Illinois turn into a successful trip on scoring the 10 lap feature win in the Dirt And Asphalt Sport Compact feature win on opening night. Delonjay led the race flag to flag in taking the checkers ahead of hometowner Nathan Moody.

The Non-Wing Sprint car feature win went to defending track champion Jonathan Hughes. Taking advantage of a front row start, Hughes led the caution free race flag to flag in taking the win over Doug Sylvester.

Racing action will continue next Wednesday, May 27th with hot laps set to take the green at 7:15 with racing to follow.

Kool Seamless Gutters Night At the Races

Season Opener

Southern Iowa Speedway

5/20/2020

Feature Results (top 5)

Mid State Machine Stock Cars

  1. 52 Nathan Wood-Sigourney
  2. C4 Corey Strothman-Mt. Union
  3. 25 Cody Agee-Moberly, MO
  4. 14 Derrick Agee-Moberly, MO
  5. 409 Howard Gordon Jr.-Oskaloosa

Oskaloosa Quality Rental Sportmods

  1. 4 Jason Bass-Ft. Dodge, IA
  2. 7 Blaine Webster-Ottumwa
  3. 17 Dyaln VanWyk-Oskaloosa
  4. 29 Colton Livezy-New Sharon
  5. 30M Maguire Dejong-Montezuma

Parker Tree Service Hobby Stocks

  1. 55 Brad Stephens-Bussey
  2. 29 Nathan Ballard-Marengo
  3. 1R Rick VanDusseldorp-Oskaloosa
  4. 10G Dustin Griffiths-Hedrick
  5. 73 Aaron Martin-Delta

Dirt And Asphalt Sport Compacts

  1. 32D Jeffrey Delonjay-Quincy, IL
  2. 41 Nathan Moody-Oskaloosa
  3. 48 Chuck Fullenkamp-West Point
  4. 52 Billy Cain-Bloomfield
  5. 3 Jaden Delonjay-Quincy, IL

Non-Wing Sprints

  1. 67 Jonathan Hughes-Knoxville
  2. 12 Doug Sylvester-Ottumwa
  3. 25 Kelly Graham-Hedrick
  4. 0 Mike Mayberry-Fremont
  5. 717 Garrett Alexander-Russell 

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