Good morning. Yesterday’s quote was ABC’s Jon Karl admitting that his network downplayed the lab-leak hypothesis because Donald Trump thought it was plausible. Today Ally breaks from overdraft fees; initial unemployment claims fell 20,000; Texas declares a state of emergency; and China creates a new bird flu.
The data shows young black entrepreneurs are just as capable of succeeding given the chance as white entrepreneurs are. But they don’t have lawyers; they don’t have, they—they—they don’t have accountants, but they have great ideas. Does anyone doubt this whole nation would be better off from the investments, those people make and that’s why I promise you, that’s why I set up the national Small Business Administration that’s much broader, ‘cause they’re gunna get those loans.
Big banks are crushing their earnings estimates. In some measure, that’s due to a roaring stock market; but in other banks, it’s due to collected fees. JP Morgan Chase, for instance, raked in a record $1.5 billion from overdraft fees in 2020 alone. Ally Financial is pursuing a different route, doing away with such fees all together, making the Detroit-based institution the first major bank to do so. While firms like HSBC Holdings are ending US retail banking all together, groups like Ally are just getting started.
Initial unemployment claims fell 20,000 to 385,000 in the week ending May 29. This is the first time in 10 weeks that the prior week was revised down, not up, resetting our counter. The highest unemployment rates are in Nevada, Rhode Island, Connecticut, and Alaska, which all maintain official figures over 4 percent. The largest initial decreases came in Washington, New Jersey, Florida, and Ohio, which all shed more than 3,800 initial claims. The full Department of Labor report can be found here.
Texas entered a state of emergency along its southern border, “certifying that the ongoing serge of individuals unlawfully crossing the Texas – Mexico border poses an ongoing and imminent threat … .” This will help to shore up additional resources needed for Texas to step in during the federal government’s absence. This is part and parcel with an 800 percent surge in fentanyl seizures, sparking fears that recreational drugs will become laced with the lethal drug. Thus far, Texas seized more than 21.5 million lethal doses of fentanyl—enough to kill every man, woman, and child in New York state. With this declaration, the Lone Star state joins Arizona in the vacuum left by the Biden Administration.
In a tired effort to bring another epidemic into the world, China reported its first case of H10N3 bird flu on Tuesday. It is the first such bird flu ever recorded. Just like COVID-19, China claims that the “risk of large-scale spread is extremely low.” And, per our usual arrangement, China released no information on how the 41-year-old hospital patient contracted the disease. Finally, the Chinese government only released this information yesterday—over a month after the patient was admitted to its hospital—exactly like our then-novel coronavirus. History has a funny way of repeating itself.