The World
Economists are talking up 'K shaped' recovery as stocks surge but inequality widens: Apple’s market value hit $2 trillion, a milestone for the world’s largest listed company that comes barely two years after it passed $1 trillion, and Elon Musk became the world’s fourth richest person as Tesla shares roared and SpaceX raised $1.9 billion in new equity funding. Meanwhile, Norway’s huge pension fund — the largest sovereign wealth fund in the world — reported negative returns for 1H20, citing “major fluctuations” in equity markets. With just 126 trading days between peaks, the S&P 500 made its fastest-ever recovery from a bear market. (Finance 202, Financial Times, The Times, Axios, CNBC, Wall Street Journal)
The EU said it does not recognize Alexander Lukashenko as Belarus’s president and vowed to press ahead with sanctions on his regime, while stopping short of calling for new elections, following an emergency summit. Meanwhile, Lukashenko stepped up efforts to reassert his control, ordering police to quell protests in Minsk: "There should no longer be any disorder in Minsk of any kind.” (The Guardian, Bloomberg, BBC News)
The UK believes it can secure a post-Brexit trade deal with the EU next month; negotiators will "continue to plug the gaps" as talks enter their seventh round. The two sides remain divided over competition rules, fishing rights and how a deal would be enforced. Meanwhile, just six years after Scotland voted No to independence, polls suggest a majority would now back leaving the UK. (BBC News, Financial Times)
A senior ally of Chinese leader Xi Jinping called for a Mao-style purge of China’s domestic-security apparatus last month, saying it was time to “turn the blade inwards and scrape the poison off the bone.” Within the first week, Communist Party enforcers had launched investigations into at least 21 police and judicial officials. Meanwhile, with no date fixed for China-US trade talks and increasingly tense relations, Beijing has turned its attention inwards to tend to its own economy. The two sides planned to hold the first review on Saturday, but President Trump said he postponed talks because he was unhappy with Beijing — while the U.S. officially notified Hong Kong it has ended three agreements. Separately, China and India sent their most advanced fighter jets to airbases near their disputed border region in the Himalayas, where a stand-off continues. (Wall Street Journal, South China Morning Post-1, Reuters, South China Morning Post-2)
The effect of China’s new national-security law on Hong Kong is being felt on American college campuses. Classes at some elite universities will carry a warning label this fall: This course may cover material considered politically sensitive by China. And schools — including Princeton, Amherst, and Harvard Business School — are weighing measures to try to shield students and faculty from prosecution by Chinese authorities. (Wall Street Journal)
After months of insisting that China join nuclear arms control talks with the U.S. and Russia, the Trump administration signaled that it will negotiate a separate framework agreement with Moscow and bring Beijing on board later. The new negotiating strategy could open the door for an election-year arms control understanding with Moscow—and possibly a meeting between President Trump and Russian President Putin, as well as the temporary extension of the soon-to-expire New START nuclear weapons treaty. (Wall Street Journal)
Thai authorities issued arrest warrants for six activists who took part in a demonstration at which students called for reform of the country’s powerful monarchy. The protests have been spreading since mid-June, marking a new phase in the growing outpourings of rage by emboldened youth across universities and high schools expressing discontent against the generals ruling the country. Thai schoolchildren have joined the movement, giving the protestors’ three-fingered salute — based on one in The Hunger Games — at school. (The Guardian, Nikkei Asian Review, Financial Times)
In Saudi Arabia’s first official comments on Israel and the UAE’s normalization agreement, the Saudi Foreign Minister said the kingdom maintains its policy of not making ties with Israel official until there is peace with the Palestinians. Meanwhile, a senior Likud official in Israel said the government coalition is not functioning, and new elections are likely. (Jerusalem Post, Times of Israel)
With more than 30 wildfires are burning across California, Gov. Gavin Newsom declared a statewide emergency order amid an extreme heat wave that brought more warnings about power outages. (Los Angeles Times)
TX Gov. Greg Abbott wants to freeze property tax revenues for cities that cut police budgets. The state's three top elected leaders also fiercely criticized Austin officials who plan to cut up to one-third of their police department's budget, largely through reorganizing divisions out from under law enforcement. (Texas Tribune)
Economy
Hedge funds that invest in banks are getting bloodied, leading to double-digit losses and shutdowns for some funds. The KBW Nasdaq Bank Index has fallen 33.1% this year; the S&P 500 is up 6.2%, including dividends, as Berkshire Hathaway sold out of billions of dollars of bank stocks in 2Q20. Meanwhile, a renewed focus on race has triggered a surge of interest in community-based lenders. (Wall Street Journal-1, Wall Street Journal-2)
Many people across the country are still avoiding malls, restaurants and other businesses. The behavior shift points to a reshaping of American commerce, fueling questions about the strength and speed of the economic recovery as the coronavirus continues to spread. Through the end of last week, daily visits to businesses were down 20 percent from last year. Meanwhile, Target’s profits surged as its online sales nearly tripled. (New York Times-1, New York Times-2)
Data standards group pushes for clarity in private equity reporting: ADS Initiative is seeking to persuade the $4tn private equity industry to adopt a data reporting standard that clarifies investment costs and performance. The US-based not-for-profit group now counts more than 10 members, including institutional investors, advisory firms, banks and investing services providers, including Allianz Capital Partners. (Private Equity News)
Germans sign up for universal basic income, as a group of 120 Germans will each receive a lump sum of €1,200 a month for three years in the country’s first systematic experiment with a UBI. (The Times)
Technology
Startups are tapping a new talent pool: Pandemic-weary college students. With campuses locked down, several companies have presented an alternative: a remote internship, aimed specifically at students looking for alternatives to a dismal school year. Meanwhile, Google Ventures quietly laid off seven employees, representing around 8% of its staff. The affected employees were focused on "investor operations," which are some of the value-added portfolio services that GV helped to pioneer. (Bloomberg, Axios)
Google Maps is rolling out a major upgrade, including street-level data and more detailed terrain. Street-level data will display the shape and width of city streets to scale, as well as pinpoint the exact location of sidewalks, crossings and pedestrian island. (Tech Republic)
Fortnite’s epic battle with Apple could reshape the antitrust fight, as Congress may be on Epic’s side. Meanwhile, Epic is seeking to form a coalition of Apple critics. The Fortnite maker has reached out to other tech executives — including at Spotify and Sonos — regarding Apple’s business conduct, including its policies governing the distribution of mobile apps on its mobile platform, iOS. (The Verge, The Information)
Smart Links
Harvard CFO explains revised endowment guidance. (Harvard Gazette)
Health misinformation pages got half a billion views on Facebook in April. (Avaaz)
Two-fifths of adults lacked reliable health insurance in 1H20. (HealthcareDive)
J&J strikes $6.5 billion deal for autoimmune disease specialist Momenta. (Reuters)
Social connection boosts fitness app appeal, success. (Science Daily)
Plastic pollution in Atlantic at least 10 times worse than thought. (The Guardian)