The most important news of the last week 17.8.2020

The recovery in employment is slowing down

Another 963,000 people applied for unemployment benefits last week. For the first time since mid-March, when measures were introduced in the country against the spread of coronavirus, the number is less than a million a week. Analysts expected the support to be 1.15 million people. Despite previous improvements over the past week, the number of applicants for support remains very high, considering the situation before the coronavirus crisis.

Unemployment benefit may be waived on the last day of July, regardless of whether the U.S. government agrees on an additional $600 per week. Negotiations between Democrats in Congress and White House officials on the current set of measures to support the economy are scheduled for today. President Donald Trump signed an executive order last weekend that would allow the unemployed to receive an additional $400 a week in addition to unemployment benefits, AFP said.

The company behind Angry Birds saw huge profit growth

Rovio Entertainment, the creator of the 10-year series of "Angry Birds" mobile games, saw a 160% increase in operating profit adjusted in the second quarter on Friday, helped by increased player engagement. The company already in the previous quarter brought almost a 75% increase in profit in the first quarter, which was helped by lower costs. Its profit rose to EUR 13.8 million from EUR 5.3 million, while revenues fell by 3.6% to EUR 69.2 million due to lower film revenues, said the Finnish company, which listed its shares in 2017.

"In our games, we have seen an increase in downloads as well as user engagement, as well as some revenue growth in March and April," Rovio said in connection with the pandemic. Rovio adhered to its 2020 target of improving its adjusted operating profit compared to the previous year, although it refrained from providing a full-year revenue forecast.

Performance of the index World Acceptance Europe Total Market Airlines (Investing.com)

Can America deal with a huge debt?

The US Treasury Department is currently issuing many more long-term bonds to give it a chance to finance a $3 trillion government debt. This increases the likelihood that yields on these bonds will increase as investors demand higher compensation for this additional offer. On the other hand, the Fed is trying to suppress the issuance of long-term bonds and at the same time support the economy. At the beginning of the crisis, asset purchases were aimed at stimulating the economy. Since then, however, they have become a tool for further easing by reducing graduation premiums and pushing investors to more risky assets.

But fear of such instruments will not be enough to meet policy objectives within a reasonable timeframe, and the Fed plans further steps to boost the economy. Fed Chairman Jerome Powell is trying to persuade Congress to support the economy with fiscal spending. Powell even tried to motivate the Speaker of the House to think "without fiscal constraints." The Fed has promised not to oppose fiscal stimulus to the economy. However, if the Fed allowed interest rate increases on long-term bonds, there would be questions about the binding nature of this promise, as well as the commitment to keep rates low at the short end of the yield curve.

Fortnite sharply spoke out against Apple

In Epic's 65-page lawsuit, owner of Fortnite stated that he considered Apple's payment system illegal and monopolistic because of the way the app developer's access to the App Store was "linked" to the developer's use of Apple's payment mechanism.

"In the case of illegal terms and conditions, Apple ensures that the App Store is the only distribution channel for developers that reaches iOS application users, giving Apple a huge monopoly in the iOS application distribution market. Apple's strength is also evidenced by its ability to collect competitive taxes on app sales through the App Store, "said Epic.

Apple previously defended its payment practices by pointing out that the vast majority of applications are free and do not charge fees. He also says that the App Store allowed more than half a trillion dollars to be traded last year and suggested that companies that complain and earn at the same time do not want free "rides."