The World
Employers added 1.8 million jobs in July, and the unemployment rate fell to 10.2%, so far recovering less than half of the jobs lost due to the pandemic. However, U.S. retail foot traffic is slackening and growth in the number of shifts worked by hourly employees has ground to a halt, high-frequency data showed, offering evidence the recovery is losing momentum. In Washington D.C., prospects for a quick deal to extend supplemental unemployment benefits and other stimulus took a sharp turn for the worse, as more farmers are declaring bankruptcy even with record levels of federal aid. Meanwhile, Eurozone economies’ industrial output is edging closer to pre-virus levels. (Wall Street Journal, Reuters, Los Angeles Times, Finance 202, Financial Times)
Americans cut back on consumer borrowing in 2Q20 — led by a drop in outstanding credit-card balances — sending overall household debt down for the first time in six years even as mortgage loans continued to rise. (Bloomberg)
The U.S. blacklisted and imposed sanctions on Hong Kong Chief Executive Carrie Lam and some 10 other Chinese and Hong Kong officials. Meanwhile, the U.S. consulate in Hong Kong broke its silence to warn of the chilling effect of the “draconian” national security law imposed by Beijing on the city — a rare move often left to the State Department. (Reuters, South China Morning Post)
Russia and China are partnering to reduce their dependence on the dollar, potentially leading to a "financial alliance" between them. In 1Q20, the dollar's share of trade between Russia and China fell below 50% for the first time. Meanwhile, NATO-partner Serbia’s purchase of six pilotless aircraft makes it the first European country to deploy Chinese combat drones. President Xi sent shock waves with his 2035 manifesto, as a coded news release signaled his intent to be “leader for life.” (Nikkei Asian Review, Bloomberg, Nikkei Asian Review)
The number of British nationals emigrating to other EU countries has risen by 30% since the Brexit referendum, with half leaving in the first three months after the vote — as Belgium, Andorra and the Bahamas were added to the UK's travel quarantine "red list." In Lebanon, security forces fired teargas at Beirut demonstrators, as rage over the country’s leadership grew. (The Guardian, The Telegraph, The Guardian)
President Trump issued an executive order effectively banning TikTok if it doesn’t sell in the next 45 days, and also set sights on WeChat. Meanwhile, Microsoft is considering acquiring all of TikTok’s global business, including its operations in India — where the app has been banned — and Europe, as TikTok says it will invest $500 million on its first data center in Ireland. (Recode, New York Times, Financial Times, The Information)
Economy
British Airways announced it will cut 29% of employees, while Canada will impose dollar-for-dollar countermeasures on the U.S. after President Trump said he would reinstate 10% tariffs on some Canadian aluminum imports. Meanwhile, Latin America faces a 9.4% GDP decline, the worst downfall on record, and will likely lag behind other emerging markets in any recovery. (Reuters, Bloomberg, Wall Street Journal)
Bond investors remain wary about a return of volatility, keeping yields on investment-grade corporate bonds elevated compared with the cost of insuring them against defaults in derivatives markets. (Wall Street Journal)
U.S. VC deal volume dropped to a seven-year low of 2,197 in 2Q20. However, deal value remained stable at $34.3 billion, buoyed by large investments in late-stage companies. Globally, VC-backed companies raised $62.9 billion across 4,502 deals, nearly equaling 1Q20 investment. (Consulting.us)
By 2030, American women are expected to control much of the $30 trillion in financial assets that baby boomers will possess—a potential wealth transfer of such magnitude that it approaches the annual U.S. GDP. (McKinsey)
Technology
Facebook will allow its U.S. workforce to work remotely through July 2021, pushing back its previous deadline of the end of this year. The new date is “based on guidance from health and government experts.” The move follows Google and Uber recently pushing their remote work policies back. (The Information)
Microsoft is rebuking Apple over its stringent developer restrictions and stance on cloud gaming apps, which the iPhone maker does not allow on the App Store for apparent violations of its guidelines. (The Verge)
iHeartMedia’s podcast revenue grew 103% year-on-year in Q2; unique podcast listeners grew 30% year-on-year; downloads grew 62%. (PodNews)
Smart Links
The non-tech companies snapping up PhDs from America’s elite AI programs. (Quartz)
What will tech look like in 2023? (The Information)
Dirty Data: Subpar data costs U.S. companies $3.1 trillion — 12 % of revenues. (Chief Executive)
Mark Zuckerberg’s fortune surpasses $100 billion. (Bloomberg)
Why TJ Maxx doesn’t need e-commerce to survive the pandemic. (Marker)
Human hair is 50 times softer than steel… so why do razors dull? (MIT News)