The World
Nearly 1.2 million workers filed new claims for state unemployment benefits, the lowest weekly total since March. However, layoffs jumped 54% in July, and the high number collecting unemployment — estimated at 30 million — suggests “temporary layoffs are becoming permanent.” Meanwhile, Bank of England Governor Bailey denied the outlook is optimistic, warning parts of the economy are “not viable.” (Wall Street Journal, Reuters, New York Times, CNBC)
France recorded its highest daily number of new Covid-19 cases since June, potentially joining Spain on the UK’s quarantine "red" list. Norway reimposed a 10-day quarantine for all travelers from France, Switzerland and the Czech Republic. Meanwhile, Sweden’s light-touch lockdown failed to spare its economy from a historic plunge in GDP with a collapse in exports and spending. (The Telegraph, Reuters, The Telegraph)
The Israel Institute for Biological Research will begin testing its coronavirus vaccine on humans by October, as preliminary research by Mayo Clinic shows that high-dose plasma therapy is correlated with fewer deaths in patients with severe COVID-19. (Jerusalem Post, StarTribune)
The U.S. will expand its new “digital Berlin Wall,” escalating a complex tech war to root out major Chinese tech products from the U.S. system, focusing on five areas: Chinese telecom carriers, apps, cloud service, smart phones and undersea cables. Meanwhile for the first time, the U.S. is negotiating the sale of at least four of its large sophisticated aerial drones to Taiwan for the first time. China’s big four state-owned commercial banks have started large-scale internal testing of what would be the world’s first sovereign digital currency, as the launch of the digital yuan appeared to move a step closer. Separately, Chinese loans to developing countries have doubled in 4 years, as a “debt trap” now weighs on 68 countries. (South China Morning Post, Quartz, Reuters, South China Morning Post, Nikkei Asian Review)
House Republicans are examining foreign money to colleges, writing Harvard, Yale and four other universities asking for records into any deals they have with foreign countries. (Inside Higher Ed)
Manhattan apartment deals plunged 57% in July, while suburban real estate surged The number of signed contracts for co-ops and condos in Manhattan dropped 57% compared with a year ago, with co-ops priced at $4 million to $10 million down over 75%. The number of unsold apartments is now at the highest level in almost a decade. (CNBC)
Economy
Goldman Sachs warned that the increased probability of an approved vaccine by the end of November is underpriced by equity markets, adding that investors should consider the risk of a successful vaccine unsettling markets by sparking a sell-off in bonds and rotation out of technology into cyclical stocks. Separately, Goldman said it will double hiring of junior bankers from black colleges by 2025. (Bloomberg, CNBC)
Calpers’ investment chief Ben Meng resigned after about a year and a half in the position, marking an abrupt exit for the investment chief, who set out to implement a reform agenda at the giant pension. The fund didn’t give a reason for Meng’s resignation. He had been scheduled to have at least one group call with staff today. Meanwhile, Canadian PE deals fell just shy of $13 Billion in 1H20. (Private Equity News, PE Hub)
The big tech rally hasn’t been limited to the U.S., as some Asian tech giants have also climbed to new heights. Chinese internet titans Tencent and Alibaba Group hit record highs in July and are up 48% and 24% for the year, respectively. Asia’s tech surge has broadly tracked U.S. companies that benefited from the pandemic — however, some Asia tech companies are cheaper than their U.S. peers. (Wall Street Journal)
Slacks offices will remain closed until at least June 2021, allowing the communications platform to “reimagine our previously office-centric culture.” (Fast Company)
Since UK restaurants and pubs reopened July 4, restaurant attendance is down only 10-15% relative to "normal" times. In the U.S., restaurant attendance is still less than half of where it would usually be. (The Telegraph, Chartr)
Technology
Facebook took down a Trump post for the first time, stating false claims about Covid-19 and children are harmful misinformation. Meanwhile, 20 state attorneys general called on Facebook to better prevent messages of hate, bias and disinformation from spreading, and said the company needed to provide more help to users facing online abuse. (Recode, New York Times)
‘Fortnite’ creator Epic Games is now valued at $17.3 billion after blockbuster funding deal, and Nintendo profits soared 541% as consumers retreat to living rooms. Meanwhile, Streaming-video devices are losing ground to internet-connected TVs with streaming apps built in. Broadband-equipped U.S. households with smart TVs reached 54% this year, up from 47% a year earlier, and well above the 42% share held by streaming-video devices including Roku, Apple TV and Amazon Fire TV Sticks. (CNBC, Financial Times, The Information)
Apple and Google’s COVID-19 tracking system will make its full U.S. debut in new Virginia app; Alabama released a closed pilot for its app this week. (The Verge)
Hospitality industry turns to tech to lure guests back: A key on your phone, voice-activated digital assistants that can order fresh towels, electrostatic sprayers—hotels are piling on tech workarounds to address steep declines in occupancy, staff layoffs and a fear among some guests of contracting Covid-19. (Wall Street Journal)
Smart Links
Why Kodak is perfectly positioned to pivot to pharmaceuticals. (Quartz)
California sued Uber and Lyft for alleged wage theft.(Los Angeles Times)
Gender stereotypes reflected in structure of 25 languages. (Nature)
Research: Journalists’ Twitter use shows them talking within smaller bubbles. (University of Illinois)
Baseball commissioner: MLB protocols working despite setbacks. (ESPN)
Zoom releases new filters to liven up meetings. (Zoom)