The World
Federal Reserve Chairman Jerome Powell warned of potentially tragic economic consequences if Congress and the White House don’t provide additional support to households and businesses, as more evidence reveals that the “covid economy” is carving a deep divide. The divergence — across education and income levels, race, gender, location, and industry — helps explain the striking disconnect of a stock market and household wealth near record highs, while lines stretch at food banks, jobless benefits applications grow, and permanent job losses increase, as the number of people who aren’t looking for work is staying much more consistent. Meanwhile, of the $4 trillion in federal response aid, $2.3 trillion has gone to businesses that in many cases didn’t need the help or weren’t required to show they used the taxpayer funds to keep workers on the job — as U.S. commercial bankruptcies are up 33% year to date, and August’s U.S. trade deficit was the widest in 14 years, growing 5.9% from July. (Wall Street Journal, Wall Street Journal-2, New York Times, Finance 202, Reuters, Financial Times)
European Central Bank President Christine Lagarde said the bank is ready to inject fresh monetary stimulus to support the eurozone’s stuttering economic recovery, including by cutting a key interest rate further below zero. Meanwhile, “big progress” in Brexit talks leaves EU seeing a trade deal closer. (Wall Street Journal, Reuters)
U.S. and Russian negotiators made progress on a new accord that would freeze each side’s nuclear arsenal and outline the parameters for a detailed treaty to be negotiated next year. The accord would give each side something it has sought: President Trump would have a demonstration that his diplomacy toward Moscow has borne fruit; Russia would get an extension of the New START treaty, which cuts long-range arms and is due to expire in early February. Meanwhile, Secretary of State Pompeo said he wants to formalize and potentially broaden the quadrilateral security dialogue with Japan, India and Australia, asking them to stand against China’s “corruption and coercion.” (Wall Street Journal, Nikkei Asian Review, South China Morning Post)
White House officials are blocking strict new FDA guidelines for the emergency release of a coronavirus vaccine, objecting to a provision that would almost certainly guarantee that no vaccine could be authorized before the election on Nov. 3. The CDC updated its guidelines to acknowledge that the coronavirus can be spread by tiny particles that linger in the air. (New York Times, MIT Technology Review)
UK covid deaths climbed 50% in a week, while Spain cut its 2020 economic forecast and predicts joblessness at 17%. Meanwhile, Lebanon’s hospitals are being pushed to the edge, and experts warn they will soon be unable to cope. Korean researchers have developed a new method to diagnose infections like Covid-19 in just 30 minutes, reducing the stress on one single testing location and avoiding contact with infected patients as much as possible. (The Times, Reuters, Financial Times, Pohang University of Science & Tech)
Opposition groups in Kyrgyzstan said they had seized power in the strategically-important Central Asian country after taking control of government buildings in the capital during protests over a parliamentary election. The country’s Central Election Commission declared the results of the weekend’s parliamentary election invalid. (Reuters, Associated Press)
In California, the August Complex fire reached “gigafire” status, burning more than 1 million acres, setting a CA record and offering a terrifying window into how climate change and other factors such as mismanaged forests are worsening the state’s fire danger. (Los Angeles Times)
Firearm deaths in children and young adults were vastly more common in the poorest versus richest U.S. counties, new CDC statistics show. The association between poverty and youth firearm deaths was strongest for unintentional deaths, followed by homicides, and suicides. Meanwhile, gun suicide is overwhelming U.S. rural districts in west and south. In 11 congressional districts more than 100 residents each year use guns to end their lives – roughly double the national average. (MedPage Today, The Guardian)
Economy
Goldman Sach’s new class of partners, to be promoted next month, is likely to be its smallest since the mid-1990s. But for those who make the cut, the Wall Street firm is dangling a new financial carrot: access to profits from its private investment funds. Partners will receive carried interest—a slice of future profits, taxed at low rates—in four of Goldman’s private investment funds starting this year, people familiar with the plans said. The firm will lend partners up to half a million dollars to increase their personal investment. (Wall Street Journal)
Big law firms are prospering, as varied client bases, plus lawyers’ ability to work remotely, has kept revenue stream—and extra bonuses—flowing. The most elite firms say they are on track for a record year, thanks to hot practice areas like restructuring and public-offerings work: At 125 firms surveyed by Wells Fargo Private Bank’s legal specialty group, revenue rose an average of 6.4% in1H20, while net income rose 25.6% from a year ago. (Wall Street Journal)
The median U.S. home price hit nearly a record $320,000 in September, as prices have climbed 14% compared to a year ago, the fastest growth rate since 2013. Meanwhile, San Francisco office rents fell 4% from the end of March to the end of September, more than double decline of any other major U.S. city. The city’s new lease square footage in 3Q20 was down about 81% from the same period in 2019. Also, Facebook is expanding its permanent work from home policy, moving it closer to CEO Mark Zuckerberg’s prediction that half his workforce will be working remotely within a decade. (Mansion Global, Wall Street Journal, The Information)
Teens spending hit a two-decade low, as they buy fewer clothes and less food during the pandemic. Meanwhile, retail store traffic is expected to be down 22% to 25% YoY during the six key weeks of the holiday shopping season. (CNBC, CNBC-2)
Venmo launched a digital-focused credit card, entering the fray of financial-services providers looking to leverage smartphones. The Visa credit card will be managed through Venmo’s smartphone app, but accompanied by a physical card printed with a QR code. The primary methods of making purchases will be via a credit-card number for online shopping or the physical card in stores. (Bloomberg)
Gig companies Uber, Lyft, DoorDash, and Instacart have together spent at least $170 million to back Proposition 22. The ballot measure would essentially exempt rideshare and delivery workers from the CA labor law known as AB5, which makes it harder for companies to classify workers as independent contractors. (Quartz)
Technology
Google v. Oracle: The future of software. The Supreme Court will hear arguments tomorrow in the long-running dispute between Oracle and Google over whether or not an important tool in modern software development can be subject to copyright protection, and the verdict could overturn long-standing practices behind modern software development.
Google is making a broader case for the open internet, and sharing, and interoperability, writing: "Without interfaces, your contact list cannot access your email program, which cannot send a message using the operating system, which cannot access your phone in the first place. Each is an island."
Oracle disagrees, saying this code is copyrighted; it was stolen; and Oracle is owed $9 billion, writing: "This is the epitome of copyright infringement, "whether the work is a news report, a manual, or computer software."
If Oracle's argument is upheld, software developers fear chilling effects will descend upon their industry. A ruling in its favor could embolden older tech companies looking for growth to assert copyright over a wide swath of modern software, arguing that many of today's applications would not exist without their work. (Protocol, Source Code)
Google is taking another shot at Microsoft Office, announcing a major rebranding and redesign for its office apps suite: Google Workspace. Along with the new branding that encompasses Gmail, Docs, Meet, Sheets, and Calendar are new features designed to make all those products feel like they’re more integrated with one another. (The Verge)
Apple stopped selling headphones and wireless speakers from rivals including Sonos, Bose, and Logitech as the company gears up to launch its own new audio products. The first Apple-branded over-ear headphones could be announced as early as this year, while the company has also been working on a smaller version of its HomePod smart speaker. Shares of audio device makers Sonos Inc and Logitech fell. (Bloomberg, Reuters)
Synthetic biology startups raised some $3 billion through the first half of 2020, up from $1.9 billion for all of 2019, as the field brings the science of engineering to the art of life. Synthetic biologists are gradually learning how to program the code of life the way that computer experts have learned to program machines. If they can succeed — and if the public accepts their work — synthetic biology stands to fundamentally transform how we live. Startups in the field are attracting more funding, including Impossible Foods, which uses bioengineered additives as part of its alternative meat. The company last month picked up another $200 million in funding, valuing it at $4 billion. McKinsey estimated the entire bioeconomy could have a direct global economic impact of up to $4 trillion over the next 10–20 years. (Axios, McKinsey)
Smart Links
Chipotle’s CTO explains how coronavirus heightened its focus on digital ordering and delivery. (Protocol)
If China plans to go carbon neutral by 2060, why is it building so many coal plants? (MIT Technology Review)
How we remember: Neuroscientists discover a molecular mechanism that allows memories to form. (MIT News)
Antarctic sea ice may not cap carbon emissions as much as previously thought. (MIT News)
'Liking' an article online may mean less time spent reading it. (Ohio State University)
It’s a boom year for biking. (CityLab)