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The World
Strongly Effective
Pfizer and partner BioNTech said that their vaccine against Covid-19 was strongly effective — and can prevent more than 90% of people from getting Covid-19 —exceeding expectations with results that are likely to be met with cautious excitement and relief. The S&P 500 and the Dow hit record highs the vaccine trial news. Oil prices surged more than 8% and U.S. Treasuries sold off. Meanwhile, Zoom and other “stay-at-home” stocks are “getting crushed.” (STAT News, BBC News, Reuters, CNBC)
Biden’s transition team unveiled members of Covid-19 task force, including Rick Bright, who was ousted as chief of the Biomedical Advanced Research and Development Authority earlier this year and Atul Gawande. As the U.S. passed 10 million cases, Utah’s governor declared a new state of emergency and ordered a mask mandate. NYC Mayor DeBlasio says the city is dangerously close to a second wave as new rules loom. The UK banned non-resident arrivals from Denmark over mink fears, however, while the spread of mutated coronavirus in Danish mink “hits all the scary buttons,” fears may be overblown. (Politico, Salt Lake Tribune, New York Times, Associated Press, STATNews)
CEOs expect a more predictable relationship with the White House. Many corporate leaders view Mr. Biden as a centrist on business issues and foresee a quieter, less publicly turbulent relationship. Jamie Dimon, CEO of JPMorgan Chase & Co: "Now is a time for unity. We must respect the results of the U.S. presidential election and, as we have with every election, honor the decision of the voters and support a peaceful transition of power.” Meanwhile, Biden edged Trump in counties experiencing faster economic growth. (Wall Street Journal, Finance 202)
President Xi continues to wait to congratulate Biden, as Biden is unlikely to soften the U.S. stance on the South China Sea. However, Chinese state media struck an optimistic tone in editorials reacting to Biden's win, saying relations could be restored to a state of greater predictability and could start with trade — and the yuan hit its strongest position in more than two years. Still, China is not betting on a Biden detente, as many believe U.S.-China relations are likely to be fraught for four more years, if not a generation. Biden is likely to maintain some aluminum and steel tariffs, as removing removing them would alienate voters across the Midwest who helped Biden win. (South China Morning Post, Reuters, Washington Post, Bloomberg)
The Kremlin will wait for the official results of the U.S. presidential election before commenting on its outcome. Taiwan’s top China policy maker sought to reassure nervous lawmakers that Biden will continue U.S. support for the Chinese-claimed island, which has benefited from strong backing by the Trump administration. Meanwhile, Japanese Prime Minister Yoshihide Suga plans to ask Biden for a February meeting in the U.S. In the EU, ministers seek to “reboot” the U.S. trade relationship, discussing the renewal of ties even as the bloc “regrettably” imposes punitive tariffs on the U.S. (Reuters, Reuters-2, Nikkei Asian Review, Financial Times)
President Trump fired Defense Secretary Mark Esper in a tweet, announcing that Christopher C. Miller, the director of the National Counterterrorism Center, will be acting secretary of defense. (Washington Post)
Austrian police have arrested 30 suspected Islamists and searched more than 60 properties less than a week after a terror attack in Vienna. The wave of pre-dawn raids, dubbed Operation Luxor, was directed at the Austrian branches of Hamas, the Palestinian militant group, and the Muslim Brotherhood. Hundreds more are dead in escalating Ethiopian conflict. (The Times, Reuters)
Climate: Biden pledged to sign a series of executive orders on his first day in office, including measures that would impose methane pollution limits on oil and gas operations; push through higher vehicle fuel economy standards under the Clean Air Act; and spend hundreds of billions of federal government dollars on zero-emissions vehicles and clean energy resources. He also promised to rejoin the Paris climate agreement, which the U.S. exited on Wednesday. (MIT Technology Review)
First-year college applications are down 8% via the Common Application through Nov. 2 than in the same period last year — with 10% fewer applicants. The number of high-school seniors who have filled out the Free Application for Federal Student Aid for next school year is down 16% from this time last year. The numbers are even lower among students of color and those in high-poverty high schools and rural areas. (Wall Street Journal)
New research finds that children produce weaker coronavirus antibodies but clear the infection much faster than adults, which may help explain why many don’t become seriously ill. Nursing home COVID-19 cases rise four-fold in surge states. (New York Times, Nature)
Economy
JPMorgan said it expected the S&P 500 to hit 4,000 points by early next year and called Pfizer's COVID-19 vaccine update as "one of the best backdrops for sustained gains in years." The bank said it expects the U.S. equity index to hit about 4,500 by the end of 2021 — a 25% jump from current levels. (Reuters)
Obama-era alumni are favorites for Biden’s top economic posts. Treasury: Federal Reserve Governor Lael Brainard “is the clear favorite.” Former NEC head Jeff Zients, former HHS Secretary Sylvia Mathews Burwell and Sarah Bloom Raskin, a former Fed governor and Treasury official, are also on the list. Ex-Fed official Roger Ferguson and Atlanta Fed President Raphael Bostic, both Black men, are also possibilities. Council of Economic Advisers: Jared Bernstein, who was Biden’s chief economic adviser when he was vice president, has seen his name in contention. Economist Heather Boushey is also on the list. National Economic Council: Boushey is also being considered for this post. (Finance 202, Bloomberg)
Global venture funding in October held steady at $23 billion and followed a strong 3Q20. At the same time, 14 new unicorn companies were created last month—the second-highest monthly total this year—indicating that venture investors continued to deploy record amounts of cash. (Crunchbase)
Private equity investors are looking closely at legal expenses. Four in five respondents said slowing deal flow was contributing to the pressure on external legal spend – but respondents also cited growth in other costs (87%) and the introduction of procurement skills (65%) as catalysts for examining legal expenses. U.S. PE firms reported a 24% increase in the level of scrutiny applied to outside counsel costs since 2018. Similarly, in the UK, the level of scrutiny has climbed 41% over the last five years. (Private Equity Wire)
The share of women working or looking for work has fallen to the lowest level since 1988. There are 2.2 million fewer women working or looking for work now than in January, vs. 1.5 million fewer men, as women have recovered only about 39% of the big drop in the labor force they suffered in the spring, while men have recovered 58% of their jobs. (Washington Post)
Median rents in Manhattan are down 11% after the exodus of tenants from New York City during the height of the pandemic, prompting renters who stayed to upgrade to bigger, better living spaces. Meanwhile, offices are preparing for the new normal. (Wall Street Journal)
Technology
Many of tech’s biggest names have been mostly quiet about the election, including Mark Zuckerberg, Jack Dorsey, Sundar Pichai, and Tim Cook. Jeff Bezos was one of the few Big Tech CEOs to explicitly congratulate Biden and Harris. Sheryl Sandberg and Bill Gates also commented. Said Y Combinator co-founder Paul Graham: "I feel like someone killed a background process that had been consuming 5% of my CPU for the last 4 years." (Protocol)
Parler's winning the right-wing app war, as conservatives say the election “awakened a sleeping giant.” Parler's been the most popular free app on both iOS and Android for the last several days, besting even chart-topping mainstays TikTok and Zoom. The other app to keep an eye on: Rumble, a video platform positioning itself as a similarly free-speech-friendly alternative to YouTube. (Source Code, Washington Examiner)
Apple is expected to officially unveil its first computers powered by custom Arm-based silicon chips at tomorrow’s “One More Thing” event. The company is promising the new chips will deliver improved performance with less power consumption, and the switch also means Apple computers will support native iOS apps due to Apple’s A-series mobile and tablet chips sharing 64-bit Arm architecture. Meanwhile, Apple supplier Pegatron was found using illegal student labor in China. (The Verge, Financial Times)
Apple and Sony Music Entertainment have each held talks about acquiring Wondery, setting the stage for the biggest deal yet in the booming podcasting market. Wondery is seeking $300 million to $400 million in a possible sale. (Bloomberg)
Smart Links
Meet the contenders for Biden’s Cabinet. (Politico)
McDonald's to make its own 'McPlant' items. (Reuters)
How Peloton could beat Nike and Lululemon at apparel. (Wall Street Journal)
UK business school heads expect revenues to drop in 2021. (Financial Times)
Spotify hints at subscription podcast service. (The Verge)
Variety CMO: Virtual events success means they’ll continue post-pandemic. (Morning Consult)
Half the Milky Way’s sun-like stars could be home to Earth-like planets. (MIT Technology Review)
Learn More (Today, 8 pm ET): COVID-19 and Its Impact on Mental Health in China, India, and United States. (Harvard Chan School of Public Health)
Joe Biden is almost 78. Here are the world’s oldest leaders — and U.S. presidents’ ages when they took office. (South China Morning Post, Statista)