The Week in Business: A Nail-Biter

Cases Rise, Markets Fall

It feels as if we’ve been here before, no? Wall Street saw its worst slide since June as coronavirus outbreaks surged in Europe and the United States set records for new daily cases. France and Germany reimposed business shutdowns and curfews, as did some U.S. cities where hospitals were overwhelmed with Covid 19-stricken patients.

What’s Next? (Nov. 1-7)

The Election

Who knows what will happen Tuesday. But the election’s outcome — whenever it’s decided — will shape the country’s recovery from its worst economic plunge in decades. More immediately, the American withdrawal from the Paris climate accord formally takes effect on Wednesday, years after President Trump decided to back out because he claimed the agreement “would undermine the economy.” But if Mr. Trump loses the election, his Democratic opponent, Joseph R. Biden Jr., has promised to rejoin the climate pact immediately upon taking office in January. Throughout his campaign, Mr. Biden has called for balancing the needs of labor unions with strong environmental policies in writing future trade rules.

The Auto Market Goes Vroom

On the list of things people are spending money on these days, cars are up there with sweatpants and home office supplies. (Planes, trains and public transportation, not so much.) Car shopping was the biggest single contributor to the uptick in American spending on goods last quarter, the Bureau of Economic Analysis said on Thursday, and demand is expected to stay high as low interest rates keep car loans cheap. The auto industry will release October sales data on Tuesday, and forecasters anticipate record growth even compared with pre-pandemic times.

Airbnb Cleans Up

As Airbnb prepares to go public later this year, it’s trying to fix its “party house problem” — when guests rent properties to hold large gatherings that get loud, unsafe or even deadly. And the pandemic has made matters worse, since people have fewer places to socialize in groups. The issue is irking neighbors of “party houses,” who are banding together to get local restrictions put on short-term rentals. To protect its reputation and its bottom line, Airbnb has banned parties at all its properties, put a 16-person cap on reservations and started suing guests who break the rules. It also tried to put the kibosh on Halloween parties by refusing to allow one-night rentals on Oct. 31.

Article source: https://www.nytimes.com/2020/11/01/business/the-week-in-business-us-economy-elections.html