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Weekly Recap: SpaceX, Detroit Automakers and The Banks

The Good:

SpaceX

Elon Musk’s space venture, SpaceX, just hit a home run in its most recent round of fundraising. SpaceX was seeking to raise $500 million, but ended up bringing home $567 million as investors were anxious to get onboard Musk’s intergalactic venture. The news of this updated number comes the day before one of the more important days in SpaceX’s history, as the company plans to launch astronauts for the first time, the first manned launch since NASA’s 2011 mission. SpaceX continues to accrue funds—raising $2 billion since the beginning of 2019—as it pursues three ambitious programs. SpaceX is now valued at $36 billion, making it one of the most valuable pre-IPO companies in the world.


The Bad:

Detroit Automakers

As companies across America race to reopen, factories are hitting safety roadblocks on the road to normalcy. Although the major Detroit automakers are attempting to reopen plants in Michigan and Illinois, new spikes in cases among factory workers are causing temporary shutdowns. Though every positive case doesn’t necessarily demand a shutdown, the close conditions and a lack of control over what employees do when off the clock makes for difficult conditions to maintain consistency. This first temporary shutdown came after a mere two days of reopening. Each of the Detroit automakers have different procedures for dealing with positive cases in their factories, each has taken enormous precautions to ensure safety standards during the pandemic.


The Ugly:

The Banks

As the markets begin to show signs of recovery, the IMF had harrowing news this weekend for one sector: banks. In a new report, the IMF stated that banks in nine advanced economies will struggle to generate profits through 2025. Banks have already been hit hard thanks to the pandemic and the global economic crash that followed. But the IMF said that the downturn will test banks’ resilience as they face sustained loan losses and tightened margins due to reduced interest rates. A dramatic drop in profits from banks can be seen already: JP Morgan Chase reported a drop of 69% in the first quarter compared to a year earlier. The IMF did state that banks were better prepared for this crisis thanks to legislation put in place, but that legislators will need to go further to protect households and businesses.

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