Bizarre Holiday Week: Cyberattacks, Antitrust Lawsuits, and Economic Uncertainty

Strategic Insights -

This holiday season is shrouded in economic uncertainty and unprecedented cyber threats. As governments and private companies scramble to respond to sophisticated attacks, antitrust lawsuits are piling up in Silicon Valley. Meanwhile, the Federal Reserve is urging caution but offering a glimmer of hope for the economy's recovery in 2021. The Biden administration is under pressure to provide more pandemic aid, but legislative battles threaten to derail the process.

Key Takeaways:

  • Hackers breached the networks of government agencies, including the Treasury and Commerce Departments, and major private companies, with the attack dating back to last spring.
  • The Trump administration has remained mum on the attack, leaving uncertainty about the compromised information.
  • Ten states (and counting) have accused Google of unlawfully monopolizing the digital advertising business and using its ubiquity to overcharge certain publishers.
  • The same states have accused Google of manipulating search results to push users away from competitors and toward businesses it is cozy with.
  • The Federal Reserve chair, Jerome H. Powell, predicted that the economy will start to recover in the second half of 2021, provided enough people get vaccinated.
  • The Fed will keep interest rates near zero and continue buying government-backed debt to bolster growth and soothe markets.
  • The Securities and Exchange Commission fined Robinhood $65 million for misleading users about its payment structure and profiting at their expense.
  • Labor agencies have accused Amazon of wrongfully firing a worker in retaliation for organizing colleagues.
  • The demand for pets has skyrocketed, leading to a rise in puppy scams.
  • Coronavirus vaccines are providing moneymaking opportunities for companies that can store them.

Statistics:

  • The attack on government agencies and private companies is considered one of the largest and most sophisticated cyberattacks in years.
  • The economy is expected to recover in the second half of 2021 provided enough people get vaccinated and can resume their normal activities safely.
  • Retail sales ticked down in both October and November, marking a shift from previous months when Americans continued to spend despite economic strife.
  • The government is providing $600 in payments for individuals, $300 per week in supplemental unemployment payments, and help for small businesses in the latest draft of the $900 billion pandemic aid bill.
  • The demand for pets has skyrocketed, with a significant rise in puppy scams.

Sources:

  • Charlotte Cowles What's Up? (Dec. 13-19)
  • The New York Times