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The World
China said its economy grew 4.9% in 3Q20 YoY, slower than expected, but underscoring a robust recovery as its growth rate approaches that of last year. It also was higher than China’s 3.2% 2Q20 YoY expansion. Meanwhile, China passed a new law restricting sensitive exports to protect national security, allowing Beijing to reciprocate against the U.S. Under the law, China can take “reciprocal measures” toward countries or regions that abuse export controls and threaten its national security and interests. Meanwhile, Europe’s economy is sliding towards a double-dip recession, with economists warning that rising infections and fresh restrictions on people’s movement are likely to cut short the region’s recent recovery. Eurozone budget deficits have risen nearly nearly tenfold to counter pandemic, as budgets are in the red by nearly €1tn. (Wall Street Journal, Associated Press, South China Morning Post, Financial Times, Financial Times-2)
As coronavirus cases hit new highs, a new concern is emerging: Fatigue. W.H.O.’s regional director for Europe: “Citizens have made huge sacrifices. It has come at an extraordinary cost, which has exhausted all of us, regardless of where we live, or what we do.” Israel Police commander: “During the first lockdown, we saw so many people who were focused on tackling this pandemic as a united community. This time around though, people are worrying more about themselves and their own needs. There is a lot less community spirit.” American Psychological Association president: “In the spring, it was fear and a sense of, ‘We are all in it together.’ Things are different now. Fear has really been replaced with fatigue.” Meanwhile, Canada announced its U.S. border will remain closed to all non-essential travel until Nov. 21. Wales announced a 2-week national lockdown beginning Friday. In Switzerland, a yodeling 'superspreader' concert with 600 people is blamed for creating a new covid hotspot. The audience were asked to social distance, but mask-wearing was not required. (New York Times, Washington Post, Reuters, The Times, Daily Mail)
Thailand's protesters headed for new demonstrations, reiterating their three main demands: the resignation of the Prime Minister and his government, constitutional changes, and reform of the monarchy, as authorities push a probe of four domestic media outlets over their protest coverage. (Nikkei Asian Review)
Exit polls suggest Bolivia socialist candidate Luis Arce is set to win the presidential election in a stunning political comeback. In New Zealand, Prime Minister Jacinda Ardern's Labour Party was reelected in a landslide win. But like so many countries, they also struggled with a far-right movement. One of those leaders was Jami-Lee Ross. After his party earned less than 1% in the election, he made another mistake — agreeing to be interviewed by Newshub’s Tova O’Brien. (The Guardian, BBC, New Zealand Herald, Newshub)
International migration plummeted to an unprecedented degree during the pandemic, raising concerns over the longer-term outlook for a key driver of the global economy. Issuance of new visas and permits by the OECD’s 37 members fell 46% in 1H20 compared with a year earlier. (Bloomberg)
About 110,000 Californians bought a gun in the first five months of the pandemic — and 43% of sales went to people who did not previously own a firearm. Those surveyed said they were doing so because they feared that the pandemic would unleash unrest, government crackdowns and societal disintegration. (Los Angeles Times)
1H20 saw an unprecedented decline in CO2 emissions — larger than during the financial crisis of 2008, the oil crisis of the 1979, or even World War II. Researchers found that 8.8% less carbon dioxide was emitted than in the same period in 2019. The groundbreaking study also stresses that the only valid strategy to stabilize the climate is a complete overhaul of the industry and commerce sector. Meanwhile, China could be carbon neutral by mid-century. (Nature Communications, Nature)
Economy
Pressure on New York City commercial real estate is worrying investors, as collapsing loan prices in Manhattan developments could be a sign of trouble ahead for commercial mortgage-backed securities. More broadly, a grim picture also is emerging for U.S. malls as the crisis in movies business takes toll. (Wall Street Journal, Financial Times)
Private equity firms have made progress in adopting environmental, social and governance (ESG) principles in their investments in recent years, but they still find challenges. A recent study by advisory services firm BDO found that 63% of British buyout firms say they have taken ESG into account in their businesses, but only 29% of them publicly disclose their policies and progress in this area. Globally, in 2020, private equity firms have so far raised more than $370bn in funds that integrate ESG principles into their investment decisions. (Private Equity News)
U.S. banks warn bonuses will not keep pace with profits. Citigroup, JPMorgan Chase and Bank of America are wary of big payouts after booking loan loss charges, while Target will pay more than $70 million in bonuses to hourly employees ahead of holidays. Meanwhile, holiday shopping season estimates are trending down, as economists predict festive spending will likely be more subdued this year. (Financial Times, CNBC, Wall Street Journal)
Regulators in mainland China and Hong Kong cleared Ant Group, the Jack Ma-controlled operator of China’s largest mobile payment app by volume, for a blockbuster $35 billion initial public offering in Hong Kong. The IPO comes as Hong Kong faces mounting competition from Shenzhen and Shanghai. (South China Morning Post, Nikkei Asian Review)
Americans’ credit scores are rising during the pandemic. The average FICO credit score stood at 711 in July, the highest since tracking began in 2005, and early estimates suggest it held steady through mid-October. Stimulus payments and expanded unemployment benefits helped many borrowers keep up with their bills and even pay down debt. Payment holidays on mortgages, auto loans and student loans also freed up funds and kept credit reports clean. (Wall Street Journal)
Technology
Apple sold more iPhone 12 models in the first 24 hours of preorders than iPhone 11 models sold in the same period last year. Meanwhile, Apple’s new phone has started a new carrier war: Did you notice the iPhone 12 has a slightly different price tag, depending on who you buy it from? Or that if you're willing to upgrade your plan and trade in your old phone, you can buy an iPhone 12 for next to nothing? Carriers are desperate to get everyone on 5G, so they can start seeing a return on their investment — and stop supporting now-legacy tech — as soon as possible. (CNBC, Source Code)
New job listings for Amazon’s internal telemedicine service, Amazon Care, hint at expansion. The virtual health care service is currently only available to Amazon employees and dependents in the state of Washington, but it has started reaching out to health plans and employers to discuss expansion. (CNBC)
Instagram is being investigated by Ireland's Data Protection Commissioner (DPC) over its handling of children's personal data on the platform. Reports allege Instagram failed to protect data, including allowing email addresses and phone numbers of those under 18 to be made public. (BBC News)
Microsoft said M&A chief Marc Brown is leaving the company after a more than two-decade stint working on deals ranging from LinkedIn to Nokia Oyj’s handset unit. (Bloomberg)
When Twitter banned, and then unbanned, links to a questionably sourced New York Post article about Joe Biden’s son Hunter, its stated intention was to prevent people from spreading harmful false material. But Twitter managed to do the opposite of what it intended. According to Zignal Labs, a media intelligence firm, shares of the Post article “nearly doubled” after Twitter started suppressing it. Meanwhile, Twitter removed a tweet by White House Advisor Dr. Scott Atlas in which he stated that masks fail to protect against coronavirus. (MIT Technology Review, The Guardian)
Smart Links
How Mark Zuckerberg Learned Politics: Once uninterested, he has transformed himself into an active political operator. (Wall Street Journal)
These young investors are still betting big on crypto — and are taking Harvard and Stanford along for the ride. (Forbes)
Cathay Pacific to keep passenger service 'under 50%' until 2022. (Nikkei Asian Review)
Scientists measured the shortest unit of time ever: A zeptosecond is the time it takes a light particle to cross a hydrogen molecule. (Live Science)
How low-profile VC firm Sutter Hill lands big exits. (Crunchbase)
How Argyle raised $20 million entirely using the note-taking app Notion. (Protocol)
World’s greatest collection of James Bond novels goes up for sale. (The Times)
NASA, Nokia to build mobile network on the moon. (Reuters)
Fortune’s 2020 Most Powerful Women. Accenture CEO Julie Sweet is No. 1. (Fortune)