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The World
President Trump vetoed the annual defense authorization bill after a delay of more than a week, saying the the massive policy measure is a “gift” to China and Russia and fails to include several provisions he sees as necessary for national defense. The move for now sidelines the 4,500-plus-page authorization bill, which authorizes $740.5 billion in spending. Lawmakers have characterized it as “must-have” legislation. The bill passed both chambers by margins wide enough to override Trump’s attempted block, but the timing of the veto has created logistical challenges: Both chambers have already left town, due back on Jan. 3 for the start of the 117th session of Congress.(Military Times, Washington Post)
Separately, President Trump’s last-minute move to reject a sweeping coronavirus relief package is escalating confusion and panic among Republicans while setting the stage for an uncomfortable confrontation that could lead GOP lawmakers to object to their own president’s demand for larger stimulus checks for Americans. The chaos is unfolding against the backdrop of another threatened government shutdown, with funding set to lapse starting Tuesday unless a spending bill to keep federal operations running is signed into law along with the virus aid bill. (Washington Post, New York Times)
President Trump granted pardons or other clemency to another 29 people, including real estate developer Charles Kushner, his son-in-law’s father, and two former advisers who were convicted as part of the FBI’s probe of Russian interference in the 2016 election. The move came just a day after Trump granted commutations or pardons to 20 people, including three former Republican members of Congress and two others who were convicted of crimes as part of the investigation into Russia’s activities four years ago. Meanwhile, Attorney General Barr departed Justice Department. (Washington Post, Axios)
Household spending dropped for the first time in seven months and layoffs remained elevated as a surge in virus cases weighed on economic recovery. Consumers closed their wallets last month, cutting spending by 0.4% on services such as restaurant meals, as well as purchases of goods, including big-ticket items like cars and appliances. Further, household income—measuring what Americans received in wages, investment returns and government aid—fell 1.1%, the third drop in four months. (Wall Street Journal)
Britain and the EU are on the verge of signing a £668bn Brexit deal that will define their relationship for decades. They are understood to have reached political agreement on the remaining sticking points and the shape of the overall deal has been signed off by Boris Johnson and member states. Downing Street sources said the deal would give British companies “zero-tariff, zero-quota” access to EU markets with no role for the European Court of Justice in policing the agreement. It would be the biggest trade deal signed by either side. (The Times)
Investors are betting on a surge in the pound and a flood of money into British stocks as London and Brussels stand on the brink of a historic trade deal. (The Telegraph)
Chinese Premier Li Keqiang asked leaders of Spain and the Netherlands to back Beijing’s proposed investment deal with the EU, after a high-level French official threatened to block it over forced-labor concerns. The intensive diplomatic maneuvering marked Beijing’s drive to secure the deal before Joe Biden is sworn in as U.S. president and seeks to coordinate China policy with Europe. (South China Morning Post)
The U.S. army has developed a supergun that has fired an artillery shell over a distance of 70km, hitting a target “on the nose,” believed to be the longest precision-guided cannon shot in history. “I don’t think our adversaries have the ability to hit a target on the nose at 43 miles,” Brigadier-General John Rafferty, in command of the artillery development project, said. Meanwhile, the Trump administration formally notified Congress that it intends to sell nearly $500 million in precision bombs to Saudi Arabia, while Israel deployed a submarine to the Persian Gulf in message of deterrence to Iran. (The Times, Financial Times, Washington Post, Washington Post-2)
The U.S. cyber agency said the SolarWinds hackers are 'impacting' state, local governments. (Reuters)
Just six weeks after California hit 1 million recorded coronavirus cases, the state became the first state to surpass 2 million — as U.S. air travel hits its highest level since the early days of pandemic. The U.S. agreed to buy 100m extra doses of Pfizer vaccine, which should be delivered by mid-summer. In the UK, a new highly infectious strain of coronavirus has been found as ministers announced that six million more people would be moved into the toughest restrictions on Boxing Day. Israel will enter national lockdown on Sunday for 2 weeks as infections surge. (Los Angeles Times, Chicago Tribune, The Guardian, The Times, Times of Israel)
China is suffering its worst power blackouts in a decade, as authorities use restrictions to curb energy use and manage supply. Analysts blame the resurgence of manufacturing, a coal shortage and China’s central economic planning for the problem. (South China Morning Post)
Gunmen killed more than 100 people in a dawn attack in the western Benishangul-Gumuz region of Ethiopia, as residents described fleeing the latest deadly assault in an area bedeviled by ethnic violence. (Reuters)
Economy
Chinese authorities launched an antimonopoly investigation against e-commerce company Alibaba Group Holding and summoned executives at its Ant Group financial affiliate in a sign that Beijing is heightening its crackdown on the power of the country's tech giants. The State Administration for Market Regulation said it is investigating alleged Alibaba practices, such as requiring vendors to exclusively list their products on its platforms, in response to complaints. (Nikkei Asian Review)
Companies are dumping U.S. office space at rapid rate, as the success of remote working continues to raise the prospect that many workers will not return to offices. Meanwhile, Manhattan’s luxury housing market is wrapping up its worst year in nearly a decade — new contracts signed on homes asking $4 million or more sank by 31% compared to 2019. In the UK, an exodus of the wealthy from city to country has caused rural house prices to rise at the fastest rate in a decade as buyers seek retreats far from the metropolis. (Financial Times, Mansion Global, The Times)
In a new front on China-Australia relations, high iron ore prices may correct on slowing demand, but derivative trading could still keep prices up. Meanwhile, China is seeking to bolster its energy security by tapping more renewables, as its ties with US and Australia sour. (South China Morning Post, Nikkei Morning Post)
Private-equity firms pitching their first or second funds found many investors’ doors shut as the coronavirus pandemic spread across the U.S., but a number of family offices continued to roll out the welcome mat. Family offices, historically among the most active backers of first-time funds, became an increasingly important capital source for such funds as the pandemic caused pension funds, endowments and other institutional investors to concentrate on a smaller universe of well-known, time-tested managers. (Wall Street Journal)
Technology
Autonomous delivery startup Nuro is allowed to launch commercial driverless services on public roads in California — the first company to clear this hurdle — after receiving a permit from the state’s Department of Motor Vehicles. Nuro plans to start commercial delivery operations early next year. The so-called Autonomous Vehicle Deployment permit will allow Nuro to operate commercial services — meaning it can charge for delivery — in San Mateo and Santa Clara counties. (TechCrunch)
Alphabet Inc’s Google this year moved to tighten control over its scientists’ papers by launching a “sensitive topics” review, and in at least three cases requested authors refrain from casting its technology in a negative light. (Reuters)
Zoom Video Communications has begun developing a web email service and might offer a very early version of the product to some customers next year. The company also is looking into building a calendar application. (The Information)
Dava Newman, an MIT professor of aeronautics and astronautics whose groundbreaking work has advanced human performance in space with the goal of interplanetary reach, has been named the new director of the MIT Media Lab, effective July 1, 2021. Newman’s work has integrated engineering, design, and biomedical research to better understand and facilitate human adaptation to low-gravity environments. (MIT News)
Communication tech companies are booming. (Axios)
Smart Links
Dozens have sued Amazon's Ring after camera hack leads to threats and racial slurs. (The Guardian)
The 20 phrases that defined 2020 (including “blursday,” contact tracing, and “doomscrolling.” (New York Times)
Andrew Yang’s run for NYC mayor is now official. (NY Daily News)
New York bans facial recognition in K-12 schools until at least 2022. (EdScoop)
First peek inside Mars reveals a crust with cake-like layers. (Nature)
Messi breaks Pele's one-club scoring record as he nets 644th goal for Barcelona. (Goal)
What to expect when you’re injected: Vaccine side effects explained. (STATNews video)
Christmas links:
“Alexa, play the Queen’s Christmas Day message.” Tomorrow, at 3 pm GMT. No BBC required. (The Guardian)
How to use math to win at any board game over Christmas — and drive your family into despair. (Wired UK)
Live virtual tours let travelers see the world from home this Christmas. (CNBC)