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The World
More U.S. retailers are dropping their mask rule for fully vaccinated customers: Target said fully vaccinated customers and staff would no longer need to wear masks. Starbucks customers who are fully vaccinated have the option to go without masks, as long as local law permits. At CVS, fully vaccinated customers will not be required to wear masks, although the pharmacy chain’s employees will continue to do so. (Financial Times)
The World Economic Forum canceled the special annual meeting set for Singapore in August, scrapping the planned in-person gathering amid Asia's COVID resurgence. (Nikkei Asian Review)
In the UK, ministers are considering contingency plans for local lockdowns or a delay to reopening after June 21 in response to concern about the spread of the Indian variant of coronavirus. (The Times)
More than a week of fighting between Israel and Hamas showed few signs of abating despite intense global diplomacy to stop the region’s fiercest hostilities in years, as President Biden expressed support for a cease-fire between Israel and Hamas. The statement fell short of an immediate demand for an end to Israel’s bombing campaign in Gaza, which has been met with rocket fire by Hamas from Gaza into Israel. (Reuters, New York Times)
Arab states are split for the first time on their refusal to condemn Israel over Gaza. Silence over the bombing of occupied territory puts UAE, Bahrain, Morocco and Sudan at odds with their populations. (The Guardian)
For the 3rd time, the U.S. blocked a joint Security Council statement urging a ceasefire. Member states have until noon on Monday to negotiate. (Times of Israel)
Myanmar activists say more than 800 killed by security forces since coup. (Reuters)
Unemployed Texans will stop getting additional $300-per-week benefit next month after Gov. Greg Abbott opts out of federal program. The extra $300 federal benefit will end June 26 for jobless Texans. Abbott also cut off another federal benefit that extended aid to gig workers, self-employed people and others who aren’t traditionally covered by unemployment insurance. (Texas Tribune)
The U.S. Senate voted 86-11 to open debate on a measure authorizing more than $110 billion for basic and advanced technology research over five years in the face of rising competitive pressure from China. (Nikkei Asian Review)
New analysis finds the pandemic may be worse than Great Recession for recent college grads' job prospects. 2020 college graduates saw a bigger decrease in labor force participation than those who graduated during the Great Recession. College graduates today also owe more in student debt. Adjusted for inflation, 2008 college graduates owed $24,012 in student loans, on average. In 2020, that total was closer to $36,665. (CNBC)
Referees score high marks with U.S. sports fans: 51% of sports fans with an opinion on MLB officiating said the league’s umpires “almost always” make the right calls, the highest mark among the major U.S. sports. 87% of sports fans with an opinion said leagues generally use instant replay well to ensure the accuracy of calls. Sports fans were twice as likely to support expansive video review as they were to call for use of replay to be limited. (Morning Consult)
Economy
Japan's economy declined 1.3% in 1Q21 from the preceding three-month period, or an annualized pace of decline of 5.1%, as resurgent COVID outbreaks snapped the run of consecutive growth after two quarters. Meanwhile, China’s economic activity grew at a slower pace in April as retail sales missed expectations. Retail sales, a key gauge of China’s domestic consumption, underwhelmed: April’s figure was up 17.7% from the pandemic-hit level a year earlier, well short of March’s 34.2% pace. (Nikkei Asian Review, Wall Street Journal)
Warren Buffett’s Berkshire Hathaway sold the vast majority of its stake in Wells Fargo in the first quarter, unloading an investment that has been a staple of the conglomerate’s portfolio dating back to 1989. The company disclosed it had shed 99% of its remaining stake in the bank — or some 51.7m shares — reducing its holdings in Wells Fargo to just $26.4m at the end of March. (Financial Times)
Credit Suisse is facing an exodus of senior investment bankers in the wake of a $5.5 billion loss tied to the meltdown of Archegos Capital Management. At least 10 managing directors in the Swiss firm’s U.S. investment-banking division have internally disclosed plans to leave, most for rival firms. Other bankers are considering their options, and more are expected to depart in the coming weeks. (Wall Street Journal)
The EU agreed to shelve plans to boost tariffs on a range of US products as the two sides seek a resolution to a longstanding stand-off over the steel and aluminum sectors. The move means the EU will no longer go ahead with a planned increase in tariffs on a range of US products that was previously scheduled for the start of next month. (Financial Times)
166 new unicorns have already been created in 2021, up from 163 in all of 2020. (Crunchbase)
ESG screening key for most private equity investors: 72% of private equity investors and managers always screen potential portfolio companies for environmental, social and corporate governance risks and opportunities before making the investment, results of PwC survey show. Another 56% of those surveyed have refused to enter general partnership agreements or declined investments for ESG reasons. (Pensions & Investments)
Emotions in the workplace: Stanford research shows that leaders who recognize employees' feelings are tapping into an important way to build trust. (Stanford Graduate School of Business)
Technology
The streaming TV race is about to get even more competitive: AT&T and Discovery announced a deal under which AT&T's WarnerMedia will be spun off and combined with Discovery in a new standalone media company. The deal will combine two treasure troves of content, including the HBO Max and discovery+ streaming services. CNN will be included in the transaction. Discovery CEO David Zaslav will run the combined business. (CNN)
Now that WarnerMedia and Discovery have tied the knot, the pressure’s on ViacomCBS and NBCUniversal. (CNBC)
He ran Animal Planet and HGTV. Now he will oversee WarnerMedia. Who is David Zaslav? (Los Angeles Times)
Amazon is in discussions to acquire MGM Holdings in what would be the ecommerce giant’s biggest move yet to expand in entertainment. MGM owns a major film library, with interests in the long running James Bond franchise as well as other well known titles such as Rocky and Pink Panther. A deal could cost between $7 billion and $10 billion. (The Information)
Sources detail how Apple relented to escalating demands from China, making changes to governance of its Chinese users' data and agreeing to censor its platforms — Apple built the world's most valuable business on top of China. Now it has to answer to the Chinese government. (New York Times)
Google struggles to match Apple on smartphone privacy changes: Pressured by Apple’s recent iPhone privacy initiative, Google is accelerating work to limit how app developers can track the 2.5 billion people who use phones powered by its Android software. The efforts are still in flux and have been delayed by internal concerns that such moves will diminish the $130 billion a year spent on U.S. mobile ads, an industry dominated by Google. (The Information)
Microsoft Teams launches for friends and family with free all-day video calling. (The Verge)
Smart Links
Could inflation be the new normal? (Harvard Gazette)
DoorDash job postings reveal plan to launch in Germany. (Financial Times)
Edtech stocks are getting hammered but VCs keep writing checks. (TechCrunch)
Cloudflare seeing uptick in cyber incidents as hackers try ‘unleashing everything,’ CEO says. (CNBC)
How will the digital Renminbi change China? (The Wire China)
How real estate blew up in the Hamptons and Greenwich. (New York Times)
Marv Albert, Hall of Fame N.B.A. sportscaster, is retiring. (New York Times)
Renewable energy boomed in 2020. (Statista)