The World
The U.S. recorded its sixth single-day record in 10 days with almost 60,000 new coronavirus cases, including U.S. military cases more than doubling in one month. Record daily deaths in TX, AZ, MS, FL & TN indicate a possible end to months of declining national death totals. The Texas GOP sued Houston’s mayor over canceling their in-person convention and nearly 80 counties opted out of Gov. Abbott's mask order. 26 Mississippi legislators tested positive after a month in which many worked in the Capitol without face masks. Meanwhile, new research estimates that shelter-in-place orders prevented as many as 370K deaths, and a German biotech firm says its vaccine will be ready for approval by December. (New York Times, AZ Central, Texas Tribune, Texas Tribune, Clarion-Ledger, Health Affairs, Wall Street Journal)
International pressure mounted on Beijing as western allies offered sanctuary to Hong Kong citizens, put sanctions on Chinese technology companies and acted against party officials involved in human rights abuses. Meanwhile, India invited Australia to join its annual naval exercise, seeking to strengthen relations with other Asia-Pacific countries amid ongoing tensions with China. (The Times, South China Morning Post)
North Korea Leader Kim Jong Un’s sister said another summit with the U.S. would be “unprofitable” unless Washington changes its negotiating stance. (Wall Street Journal)
UK retailers warned that a No-deal Brexit will raise cost of household staples: Oranges from Spain will cost 12% more, while cucumber prices will rise 16%. Italian pants will carry a 12% levy, porcelain kitchenware will also go up by 12% and drinking glasses made in Poland up 10%. (The Guardian)
Denmark granted unexpectedly swift approval for resuming construction of the Russian-backed Nord Stream 2 pipeline in Danish waters, which U.S. officials fear will give Moscow greater political leverage across Europe. (Wall Street Journal)
Supreme Court Review: While the Executive, Legislative & Judicial branches each secured wins, Chief Justice John Roberts bolstered judicial supremacy as Trump appointees declared independence, and the Roberts court ended an unusual term with a reminder that presidential power is not absolute. (Lawfare Blog, Slate, New York Times, Financial Times)
A federal judge set Tuesday as the date for a high-stakes hearing in Harvard and MIT’s lawsuit challenging new rules that deny international students visas if their classes all meet online, saying the challenge has “a likelihood of success on the merits.” (Boston Globe, New York Times)
VP Joe Biden outlined his economic policy platform, proposing $400 billion in government procurement of U.S.-based goods and services over four years, plus another $300 billion in new spending on U.S.-based tech R&D (with a particular focus on geographies and founder demographics with less access to traditional venture capital). The plan did not include: Wealth tax, Green New Deal, M&A moratoriums, or Medicare for All. (Axios)
Economy & Finance
U.S. producer prices unexpectedly fell in June, pointing to subdued inflation that should allow the Federal Reserve to keep pumping money into the economy. Long-term Treasury yields fell to their lowest levels since lockdowns started loosening. (Reuters, Wall Street Journal)
The world’s banks are set to write off $2.1 tn over the next two years as customers default on loans because of the Covid-19 economic slump. (The Times)
International banks in Hong Kong are conducting emergency audits of their clients to identify Chinese and Hong Kong officials and corporates that could face U.S. sanctions. Meanwhile, China is increasingly worried about speculative leverage on the soaring Shanghai and Shenzhen equity markets. (Financial Times, The Telegraph)
U.S. asset managers are set to fight proposals on ESG investments, as Funds say the new Labor Dept. rule would hamper their ability to incorporate ethical principles into pension portfolios. (Financial Times)
New data provide 7 strategies for promoting collaboration in a crisis: In a crisis, organizations need to pull together experts with unique, cross-functional perspectives. Research shows, however, that anxiety makes people more risk-averse and less likely to seek differing perspectives. Strategies include: Encourage naïve questions and constructive challenge; Reinforce the business’s purpose and goals frequently; Connect with the front lines; and Watch out for hoarding behaviors. (Harvard Business Review)
BCG Report: The Future of Wealth Management. Personal financial wealth has soared over the past two decades—nearly tripling globally from $80.5 trillion at the end of 1999 to $226.4 trillion at the end of 2019, buoyed by global GDP performance, higher disposable incomes, and higher rates of savings. However, the period saw two trends: The emergence of a two-speed world in which the “growth markets” of Asia, Eastern Europe, Latin America, and the Middle East and Africa enjoyed more rapid expansion, gaining on mature markets; and millionaires now hold more than 50% of total financial wealth globally. While the post-pandemic recovery path is unclear, two trends to expect: Growth markets will outpace mature markets and cross-border wealth patters will continue to change. To respond to Generations X, Y, and Z’s changing demographics, goals, and lifestyles, wealth management must evolve from: Digitizing Interactions to Humanizing Them; From Fixed Products to Bespoke Solutions; Dry and Staid to Purposeful and Fun; and Volume Based and Product Led to Relationship Driven. This should alter the provider landscape along 4 models: Large-Scale Consolidation, Niche Plays, Retail Bank and Asset Manager Expansion, and Entrance of Big Tech. The report offers a robust CEO checklist to help leaders navigate the complex choices available, outlining specific steps to: Protect the Bottom Line, Win the Future, and Build Capabilities. (BCG Global Wealth Report)
Technology
TikTok is considering changes to distance the app from its Chinese roots, including creating a new management board or establishing a headquarters outside of China. (Wall Street Journal)
Nvidia overtook Intel for the first time as the most valuable U.S. chipmaker, a key milestone marking growth in remote work, AI, and other areas. (Reuters)
Sony invested $250 million in Fortnite maker Epic Games, connecting Sony’s entertainment assets and technology and Epic’s social entertainment platform and digital ecosystem. The deal gives Sony a 1.4 % interest and Epic a $17.86 billion valuation. (VentureBeat)
WhatsApp’s business-user base grew tenfold from 2019, primarily among small to medium-size businesses, and has more than 50 million monthly users as owner Facebook offers companies more e-commerce tools. (Wall Street Journal)
Microsoft’s solution to Zoom fatigue is to trick the brain: Artificial intelligence can place a speaker’s cutout into a fixed position, as nonverbal cues like looking at or pointing at a speaker appear more like what would happen in a natural in-person meeting. (MIT Technology Review)
Smart Links
Toronto's available office sublets surge as pandemic shrinks space needs. (Reuters)
Barbados plans to let people stay and work remotely for a year. (CNBC)
Apple released the first public iOS 14 beta. (TechCrunch)
Notre Dame's spire will be restored to 19th Century design. (BBC)
Big Ten moves to conference-only model for all sports this fall. (ESPN)
Bill Nye the Science Guy explains masks: