The World
U.S. weekly jobless claims jumped back above 1 million, a greater than expected number that raises concern about the economy as lawmakers struggle to move forward on a new stimulus package. Meanwhile, July’s Fed minutes show that U.S. central bankers backed off from an earlier readiness to set a clearer bar for raising interest rates, a step that would underscore their commitment to an extended period of ultra-loose monetary policy, as Mohamed El-Erian says the small-business devastation presents risks to U.S. capitalism. The head of the World Bank called for a more ambitious debt relief plan for poor countries after warning that the recession is turning into a depression in the most challenged parts of the globe. (CNBC, Bloomberg, CNBC, The Guardian)
Coronavirus infections are surging again across much of Europe — the continent’s biggest sustained rise since the initial spike — and governments are racing to prevent a full-fledged second wave. Outbreaks are multiplying around vacation hot spots, shopping centers, parties and some workplaces. Meanwhile, Russia will begin its Covid-19 vaccine trials on 40,000 people next week. In India, as many as one in four may have been infected, prompting some scientists to predict the nation is moving rapidly towards herd immunity. (Wall Street Journal, The Guardian, The Times)
The U.S. and China agreed to return to the negotiating table to review their “phase one” trade deal, according to the Chinese commerce ministry, after talks scheduled for last Saturday were postponed. The shift comes as China is finding it hard to retaliate against U.S. efforts to choke Huawei from access to key technology because any move to punish American businesses could harm the country’s still-fragile economic recovery. Meanwhile, anxiety is growing as China’s Three Gorges — world’s largest hydro-electric dam — nears capacity amid heavy floods. Separately, the 1989 Tiananmen massacre is set to be erased from Hong Kong school books. (CNBC, South China Morning News, The Guardian, The Times)
A bipartisan group of U.S. senators warned President Trump that Saudi Arabia’s undeclared nuclear and missile programs pose a serious threat to efforts to stop the spread of nuclear weapons in the region and requested briefings on the subject. Previous reports indicate that the Saudis, with Chinese help, constructed a facility for extracting uranium yellowcake from uranium ore, an advance in the oil-rich kingdom’s drive to master nuclear technology. (Wall Street Journal)
Russian opposition figure and staunch Putin critic Alexei Navalny is in a coma suffering from suspected poisoning. The anti-corruption campaigner fell ill during a flight and the plane made an emergency landing. The Kremlin said that it wished Mr Navalny a "speedy recovery." Reuters offers a Navalny backgrounder. (BBC News, Financial Times, Reuters)
The Supreme Court will hear the Trump administration-backed challenge to Obamacare on Nov. 10, exactly one week after the presidential election. (Politico)
Already reeling from a pandemic and a record heat wave that has millions sweltering indoors, the San Francisco Bay Area is now besieged by fire, forcing tens of thousands to evacuate and leaving others inhaling air so smoky that experts warn of serious health risks. (Los Angeles Times)
Economy
A handful of big tech firms are lifting the market: If it were not for just six of the S&P 500 companies, the benchmark would be down this year. Meanwhile, U.S. share buybacks were almost cut in half, as 2Q20 figures show steep drop as companies husbanded cash. Separately, investors betting that Joe Biden will win the presidential election are buying up clean-energy stocks, sending the share prices of some companies to all-time highs. (Washington Post, Financial Times, Wall Street Journal)
Companies are looking to add more Black directors to their boards, though little hard data is available about the racial composition of America’s corporate boards. Public companies don’t have to report the race of their directors and, until recently, having a woman often was enough to appease those pushing for more variety. But about a dozen of the largest companies by market value in the S&P 500 Index have no Black board members. (Bloomberg)
Airbnb announced a ‘global party ban’ for public health reasons, while it also filed paperwork with the SEC for an initial public offering, marking a surprising turnaround for a company whose business was initially ravaged by the pandemic. (CNBC, Wall Street Journal)
The Covid-19 outbreak is changing the way that businesses operate – and private equity is no exception. In particular for this industry, the focus is on the role of the chief financial officer (CFO), a position that might have previously been considered out of sight and out of mind. However, as consequences of the pandemic set in, firms are beginning to embrace technology and automation, pushing the CFO role firmly from the back room out onto the shop floor. (Private Equity News)
“The New Normal” in Private Equity: From food to pharma, there are industries which feed the needs of the population and on which the investors are still keeping an eye, even during a pandemic. What used to be efficiency, now it is resilience. Industries are adapting all around and “nearshoring” seems to be the trend at least for the following two years from now. (Business Review)
Technology
How TikTok Suitors Microsoft, Oracle Wield Power in Washington: Both companies have deep connections in Washington. But while Microsoft over decades has built up a presence in the capital that reflects ties to both Republicans and Democrats, Oracle is one of the few big tech companies whose top executives have expressed strong support for President Donald Trump. That could give Oracle an edge. (The Information)
Google's G Suite of services, including Gmail, were hit with major outages globally with tens of thousands of frustrated users unable to log on, upload files or send emails. Outage tracker site DownDetector said the problems began around 6am BST with widespread disruption reported on Gmail, Google Drive, Google Chat, Google Docs and Google Meet. The outages were believed to be concentrated in the UK, Greece, Spain, Germany, France, Japan, and Malaysia. (The Telegraph, TechCrunch)
Facebook will restrict the right-wing conspiracy movement QAnon and no longer recommend that users join groups supporting it, although the social media giant isn’t banning it outright. (Los Angeles Times)
DoorDash is launching a grocery delivery service to compete with Amazon and Instacart, starting with select stores in California and parts of the Midwest. (The Verge)
Nvidia’s boss sets out plan to rule the data centre. The chipmaker will make its technology available to rivals, amid concern over proposed acquisition of Arm. Meanwhile, Nvidia has hit a sweet spot, with both gaming and data center on the rise. (Financial Times, MarketWatch)
Smart Links
American Airlines will suspend flights to 15 U.S. cities in October. (Reuters)
Alibaba makes strong comeback as China e-commerce rebounds. (Nikkei Asian Review)
Google adds wildfire information to Search and Maps. (CNBC)
Radio listening has plummeted. NPR is reaching a bigger audience than ever. What gives? Hint: Podcasts. (Neiman Lab)
Pandemic hits beauty industry. (The Times)
A radical new model of the brain illuminates its wiring. (Wired)