The World
With the Fed meeting today and tomorrow — and the stimulus in flux, infections rising, and U.S. consumer confidence declining in July — focus will be on Chairman Powell. While new stimulus measures this week are doubtful, the Fed extended lending facilities until end of the year. Meanwhile, as UK PM Boris Johnson said Europe is beginning to see a second wave and Germany joined in warning against travel to Spain, the U.S. Sunbelt surge has shown tentative signs of plateauing. Florida reported fewer than 9,000 new cases, its smallest increase in almost three weeks. California and Arizona both reported the fewest number of new infections in about a week. (Washington Post, Reuters, Wall Street Journal, The Times, The Guardian, Financial Times)
The U.S. is increasing aerial surveillance over the South China Sea to a record level as relations between Washington and Beijing deteriorate and fears grow for the safety of Taiwan. Meanwhile, Beijing and Moscow may join forces in an “information war.” Separately, President Xi Jinping used the Asian Infrastructure Investment Bank annual conference to outline China’s multilateral and global ambitions, seeking to make the AIIB “a new type of development platform.” (The Times, South China Morning Post, South China Morning Post)
CEO transitions decline as businesses gear up for a recession: Bain & Company and Spencer Stuart examined CEO transition trends across previous recessions and found that most businesses opt for stability in the thick of a crisis. In the three years following the dotcom crash, CEO transitions declined by one-third across the globe. The average decline stood at nearly 30% in the wake of the GFC as well. A similar trend appears to be unfolding now, with steeper figures for Europe in the mix: CEO transitions across Europe and Asia have halved during April and May this year when compared to figures from last year, with similar declines across other global markets. (Consulting.US)
While all states have experienced major economic blows, economic development agencies in the Southeast say it’s not all doom and gloom. From Alabama to Georgia and Florida, many states are even reporting new investments and expansions as manufacturers, life science companies and tech companies seek to capitalizing on growing healthcare needs and the “stay at home economy.” (Chief Executive)
U.S. immigration officials issued new guidance saying new international students — unlike current international students — cannot come to the U.S. to take an entirely online course of study. (Inside Higher Ed)
Economy
While U.S. homeownership rate rose to its highest level since 2008, global potential economic growth is set to drop amid a rise in unemployment and a cooling of investment by companies, according to Fitch Ratings Ltd. The 10 advanced countries — covered in its Global Economic Outlook — showed an average decline in annual potential GDP growth of about 0.6% compared with Fitch’s previous five-year outlook. U.S. productive potential growth is revised down to 1.4% from 1.9%, the U.K. to 0.9% from 1.6% and the euro zone to 0.7% from 1.2%. (Reuters, Bloomberg)
For the first time since the 2008 campaign, the financial sector is giving a slight edge to Democrats, showering them with $222.4 million in political contributions, compared to $219.5 million to Republicans: Goldman Sachs employees have given Democrats 63% of their $2.6 million in contributions — their highest percentage since 2008; Morgan Stanley 63%, highest since 1990; JPMorgan Chase 59%; Citigroup about 55%; and Wells Fargo 58%. The private-equity industry has dedicated 54% of its contributions to Democrats, with hedge fund employees around 70%. (Finance 202)
Clean Energy: The $800 billion American Recovery and Reinvestment Act in 2009 included some $90 billion for clean-tech projects and the creation of “green jobs.” Now, VP Biden proposes spending $2 trillion on clean energy. What worked? What didn’t? And can lessons be applied to future green stimulus? (MIT Technology Review)
Hoping to find the next Beyond Meat, venture investors have more than doubled their bets on alternative protein makers this year, raising about $1.4 billion for startups that focus on everything from lab-grown meat to protein derived from volcanic microbes. Venture investments in plant-based meat and dairy alternatives soared to $1.1 billion so far this year, up from $457 million in 2019, while investments in companies that grow cell-based meat more than tripled to $290 million from $75 million. (Bloomberg)
Technology
AI venture deals in Q2 2020 slumped to their lowest level since 2017. Meanwhile, though deal volume for the media and telecom industry has slowed significantly, there have been some small B2B media deals and venture capital investment is still pouring into media niche companies. (VentureBeat, Axios)
Three more EdTech deals: Entri raises $3.1M to build a vernacular language ‘Udemy for India;’ Tandem snags $5.7M for its language buddy app amid COVID-19’s e-learning boom; Weld North Education, a major provider of digital curriculum, acquired social-emotional learning company Purpose Prep. (TechCrunch, TechCrunch, Education Week)
California's air pollution cops are eyeing Uber and Lyft: A proposal would require 60% of ride-hail miles to be in electric vehicles by 2030. And the companies are on board. Meanwhile, an MIT study in China shows that one-third of ride-sharing might replace public transit trips. (Wired, MIT News)
Consumer spending on Apple’s App Store and Google Play passed $50 billion in 1H20, with two thirds spent on the App Store. Assuming most of that total qualifies for Apple’s commission, that amounts to roughly $10 billion in revenue in 1H20. (Statista)
Smart Links
Why SPACs are the new IPO. (Marker)
CES, the biggest U.S. tech show, will be digital-only in 2021. (CNBC)
Google builds giant cable from Cornwall (UK) to New York. (The Times)
Amazon challenges UK supermarkets with free grocery delivery. (Financial Times)
U.S. News’ 2020-21 Best Hospitals rankings are out. (U.S. News & World Report)
Covid-19 leaves an impact on the heart, raising concerns about lasting damage. (StatNews)