Latest GDP report, Biden-Xi conversation, LIV Golf at Trump club: 5 things to know Thursday

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Economy shrinks for second straight quarter, raising recession fears

The U.S. economy has contracted for a second straight quarter, sounding the alarm over a possible recession as the nation grapples with soaring inflation and rising interest rates. The nation’s gross domestic product, the value of all goods and services produced in the U.S., shrank at a seasonally adjusted annual rate of 0.9% in the April-June period, the Commerce Department said Thursday. That followed a 1.6% drop early this year. Economists surveyed by Bloomberg had forecast a 0.5% rise in GDP. The second straight quarterly decline in output meets an informal threshold for recession but not the criteria relied on by the National Bureau of Economic Research.

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Senate passes bill to up US computer chip production; House may vote Thursday

A bill designed to encourage more semiconductor companies to build chip plants in the U.S. passed the Senate Wednesday as lawmakers tried to finish work on a key priority of the Biden administration. The $280 billion measure, known as the CHIPS Act, includes federal grants and tax breaks for firms that construct their chip facilities in the U.S. The legislation also directs Congress to significantly increase spending on high-tech research programs that lawmakers say will help the country stay economically competitive in the decades ahead. Senate passage came by a 64-33 vote with 17 Republicans voting for the measure. The House vote on the measure could come as soon as Thursday as lawmakers try to wrap up business before returning to their home states and districts in August. House Speaker Nancy Pelosi, D-Calif., has said she is confident there is enough GOP support to overcome potential defections from Democrats who view the subsidy effort to boost semiconductor companies as a misplaced priority.

Xi, Biden to speak as possible Pelosi visit to Taiwan looms

President Joe Biden is planning to speak with his Chinese counterpart Xi Jinping for the first time in four months on Thursday, with a wide range of bilateral and international issues on the table. But a potential visit to Taiwan by Speaker of the House Nancy Pelosi is looming over the conversation, with China warning of a severe response if she travels to the self-governing island democracy Beijing claims as its own territory. A Chinese government official said Thursday that a visit by Pelosi would be a "red line" for Beijing and warned of "serious consequence" if she makes the trip. Pelosi's office has yet to say when, or even if, she will proceed with the visit, but the timing is especially sensitive amid heightened tensions between Beijing and Washington over trade, human rights and Taiwan. While Biden has no authority to prevent Pelosi visiting, the president last week told reporters that U.S. military officials believed it was "not a good idea" for the speaker to visit the island at the moment.

Pacific Northwest continues to face unusually long heat wave

The Pacific Northwest will continue experiencing what meteorologists believe is an unusually long heat spell for the region Thursday and it is expected to stretch into the weekend. "For the next several days through Saturday we're going to be within a few degrees of 100 every day," said Colby Neuman, a meteorologist for the National Weather Service in Portland, Oregon. The weather service extended the excessive heat warnings from Thursday through Saturday evening. Temperatures in Oregon's largest city are forecast to soar to 101 degrees Fahrenheit again on Friday. On Tuesday, Portland reached 102 degrees, setting a daily record. Seattle on Tuesday also reported a record daily high of 94 degrees. The heat spell was forecast to last into the weekend in western Washington as well. Officials in both Portland and Seattle have opened cooling centers across their cities. Climate change is fueling longer heat waves in the Pacific Northwest, a region where weeklong heat spells were historically rare, experts say.

Trump to join celebs in LIV Golf pro-am at his New Jersey club

The Saudi-funded LIV Golf Invitational Series at Trump National Golf Club in Bedminster, New Jersey, has some big names scheduled for Thursday's pro-am, including the club's namesake. Former President Donald Trump will tee it up alongside golf stars Dustin Johnson and Bryson DeChambeau in the first group out at 10 a.m. ET. Other celebrities joining the mix will be media personality and former Olympic decathlete Caitlyn Jenner, basketball Hall of Famer Charles Barkley, as well as football Hall of Famers Lawrence Taylor and Brian Urlacher. Barkley, currently an NBA analyst for TNT, has recently been flirting with the idea of joining the Greg Norman-led and Saudi Arabia-backed series. The three-day LIV tournament at Trump National begins Friday and features $25 million in prize money. This is the third event in the series and the second in the United States. LIV Golf currently has 10 of the top 50 players in the world on its roster, though none from the top 15.

Contributing: The Associated Press

This article originally appeared on USA TODAY: Latest GDP report, LIV golf at Trump club: 5 things to know Thursday