U.S. Economic News
May 27, 2020
U.S. News
The Wall Street Journal reports that a stark gap has emerged between the stock market and consumer sentiment, with stocks rebounding while consumers continue to be very negative about current economic conditions. A key explanation for the divergence may be that investors are betting on a quick recovery, helped by federal stimulus programs, while consumers are still feeling the pain of double-digit unemployment. WSJ
In an op-ed for the Financial Times, Robert Armstrong writes that global businesses – especially those in strategic, high-tech industries like semiconductor manufacturing – will be one of the main victims of deteriorating U.S.-China relations. Armstrong writes that fracturing between the two countries is likely to accelerate as COVID-19 reveals the costs of over-reliance on Chinese supply chains, requiring companies to prepare for a “two-track world” with separate corporate strategies for China and ex-China operations. FT