Good morning. The European Union imposed sanctions on China over its treatment of Hong Kong on Tuesday, inching the bloc closer to the Trump administration’s more hawkish stance toward Beijing.

The sanctions include limiting exports of equipment China could use for repression and reassessing extradition arrangements in light of Beijing’s imposition of a draconian national security law. The U.K., which this year left the EU, recently suspended its extradition treaty with Hong Kong.

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EU governments will work to ease visa and asylum opportunities for Hong Kong residents. The EU indicated it could take further steps at the end of the year. China reacted angrily to the sanctions, with a spokesman for the Chinese mission to the EU telling the bloc “to stop meddling in Hong Kong affairs and China’s internal affairs in any way.” Hong Kong residents know best if the region’s “One Country, Two Systems” oversight is operational and “the vast majority” support the new law, the spokesman said.

Meanwhile, the New Zealand government suspended its extradition treaty with Hong Kong, joining the U.K. and others in protesting Beijing’s decision to impose a new security law on the city.

Nordea Asset Management dropped Brazilian meat giant JBS SA from all its funds this month over concerns stemming from the company’s handling of deforestation, corruption charges and employee health and safety amid the coronavirus pandemic.

The Helsinki-based money manager made the decision “after a period of engagement with the company, where we did not feel that we were seeing the response that we were looking for,” Eric Pedersen, head of responsible investments at Nordea Asset Management, told The Wall Street Journal.

A unit of AIG agreed to pay $20 million to settle claims that it failed to disclose payments intended to draw more business to the firm, the first case to emerge from a crackdown on practices in the market for teachers’ retirement plans.

Florida teachers saving for retirement through 403(b) plans—similar to corporate 401(k) plans—weren’t told about an arrangement by which the parent of Valic Financial Advisors Inc. paid hundreds of thousands of dollars to an entity owned by local affiliates of the Florida Education Association, which in turn promoted Valic Financial Advisors’ services, the Securities and Exchange Commission said.

• Big Tech will come under the glare of a national spotlight today, as four of its leaders—Amazon's Jeff Bezos, Apple's Tim Cook, Facebook’s Mark Zuckerberg and Google’s Sundar Pichai—face questions from members of Congress aiming to rein in what they believe is excessive power in the hands of a few giant companies.
   

• The federal government’s disaster loan and grant program for small businesses has been subject to more than 5,000 complaints of suspected fraud from lenders, a watchdog agency warned Tuesday as it called for closer oversight of the program.

• Remington Outdoor’s second chapter 11 filing since the 2012 Sandy Hook school shooting puts a long-running lawsuit by victims’ families at risk, threatening to bury details of how the company’s popular assault rifles were marketed.

• President Trump’s re-election effort is alleged to have paid more than $170 million to companies affiliated with former campaign manager Brad Parscale without disclosing the ultimate recipients of the money, a campaign-finance oversight group says in a new complaint.
   
• The U.S. Indian Health Service is bringing back a contractor linked to a South Dakota hospital’s long-term struggles with staff shortages and unqualified personnel. A federal watchdog has said that the contractor, AB Staffing Solutions LLC, failed to fully staff the emergency room and attempted to bring on doctors with troubled histories, including a record of sexual abuse in one case.
   
• The European Central Bank said lenders should refrain from paying dividends and buying back shares until next year, suggesting several would face a capital shortfall if the eurozone economy deteriorated further.

States are relying on their own public-health indicators when deciding whether to reclose portions of their economies to try to stop rising coronavirus infections that many attribute to the reopening of shops, bars and restaurants, while back-to-college plans are devolving into a jumble of fast-changing rules. 

Meanwhile, the Federal Reserve extended by three months the operation of all of its emergency lending programs that had been set to run through September to support economic activity during the coronavirus pandemic. 

• Revel, the moped-sharing company that brought scooters to New York City last year, has shut down operations in the city after a second person was killed early Tuesday while riding one of its scooters.
   
• Germany’s Deutsche Bank, the U.K.’s Barclays and Spain’s Banco Santander all reported a big jump in loan-loss charges in the second quarter, as the companies they bank for struggle to repay debts, and unemployment rises across the regions in which they operate.

• The Miami Marlins’ season has been suspended through the weekend as Major League Baseball continues to deal with the fallout from a coronavirus outbreak that continues to rage. MLB’s return-to-work coronavirus strategy rests on a formula of testing, distancing and contact tracing that leaves little room for error—and plenty of opportunity for it.
   
• McDonald’s profit suffered a deeper-than-expected drop, as the coronavirus shut restaurants around the globe and forced the chain to spend tens of millions of dollars to help keep its franchisees operating.
   
• CES, the world’s largest consumer-electronics exhibition, is going to be virtual in 2021, a move that illustrates growing concern among businesses that the coronavirus will pose public health risks well into next year.
   
• BMW is one of many manufacturers forced to curtail operations during the Covid-19 lockdowns that have accelerated their shift toward automation, hoping near-term triage enables long-term gain as the global economy slowly recovers.

• Movies will play in theaters for much less time before moving to home video under a new agreement between theater chain AMC Entertainment Holdings and Universal Pictures, upending the way Hollywood has done business for decades.
   
• Eastman Kodak has won a $765 million government loan under the Defense Production Act, the first of its kind. The purpose: to help expedite domestic production of drugs that can treat a variety of medical conditions and loosen the U.S. reliance on foreign sources.
   
• Facebook’s Instagram has offered financial incentives to TikTok users with millions of followers to persuade them to use a new competing service, an escalation in a high-stakes showdown between the two social-media giants.
   
• Tencent Holdings proposed to buy out other investors in its search-engine affiliate Sogou Inc. for about $2.1 billion, in what could become the latest instance of a Chinese technology company abandoning the U.S. stock market.

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Send comments to the Risk & Compliance editor, Jack Hagel, at jack.hagel@wsj.com