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The World
The economy isn’t going back to February 2020, as fundamental shifts have occurred: The U.S. economy is emerging from the coronavirus pandemic with considerable speed but markedly transformed, as businesses and consumers struggle to adapt to a new landscape with higher prices, fewer workers, new innovations and a range of inconveniences. What Americans are encountering, though, is almost unrecognizable from just 16 months ago. Prices are up. Housing is scarce. It takes months longer than normal to get furniture, appliances and numerous parts delivered. And there is a great dislocation between millions of unemployed workers and millions of vacant jobs. (Washington Post)
Low-wage workers found something unexpected in the economy’s recovery from the pandemic: leverage. Ballooning job openings in fields requiring minimal education—including in restaurants, transportation, warehousing and manufacturing—combined with a shrinking labor force are giving low-wage workers perks previously reserved for white-collar employees. That often means bonuses, bigger raises and competing offers. Average weekly wages in leisure and hospitality, the sector that suffered the steepest job losses in 2020, were up 10.4% in May from February 2020, outpacing the private sector overall and inflation. Pay for those with only high school diplomas is rising faster than for college graduates. (Wall Street Journal)
As lumber prices fall, the threat of inflation loses its bite: Costs soared partly because of do-it-yourselfers’ spending stimulus checks, but a month of declines show that consumers aren’t about to trigger runaway increases. (New York Times)
After reaching the milestone of administering 1 billion doses of Covid-19 vaccine, China has revised up its estimate for achieving herd immunity. A top epidemiologist says 80-85% of the population needs to be fully vaccinated – or more than 2.2 billion doses. It is a big jump from 70% of the population – the level of vaccinations the National Health Commission previously said was needed to reach a “great wall of immunity” in China and the year-end target of the vaccine roll-out. (South China Morning Post)
Olympic organizers decided on a spectator limit of 10,000, or up to 50% of capacity, per venue for domestic fans at the Games that open in just over a month. (Nikkei Asian Review)
Canada says its border won’t fully reopen until it reaches a 75% vaccination rate. (Bloomberg)
Boris Johnson cast fresh doubt on summer foreign holidays by warning it will be “a difficult year for travel.” The prime minister dealt a fresh blow to the industry by suggesting that international travel will not return to normal until next year. (The Times)
In the U.S., million-dollar lotteries fail to cut through vaccine apathy: Prizes and giveaways appear to offer diminishing returns as the number of persuadable adults gets smaller. (Politico)
Iran’s president-elect said he would not meet President Biden nor negotiate over Tehran’s ballistic missile program or its support of regional militias, sticking to a hard-line position following his landslide victory in last week’s election. Ebrahim Raisi, 60, an ultraconservative, also described himself as a “defender of human rights” when asked about his involvement in the 1988 mass execution of some 5,000 people. (The Times)
Hong Kong’s Apple Daily could be shuttering its operations and printing its final edition as soon as Saturday if it is unable to get the approval of the Security Bureau to unfreeze its assets to pay staff. Facing mounting pressure after a series of arrests of its leadership ranks and a freeze on its financial assets, parent company Next Digital will decide on Friday whether to continue operations. (South China Morning Post)
The European Union extended sanctions against Belarus, with pledges to make Alexander Lukashenko’s regime “run dry.” EU foreign ministers agreed to add 86 people and entities to the bloc’s sanctions list. (The Guardian)
Stefan Lofven became the first Swedish prime minister to lose a no-confidence vote, throwing the Scandinavian country’s politics into turmoil as it continues to struggle with the emergence of a large, populist, anti-immigration party. Lofven, leader of the centre-left Social Democrats, said he would take seven days, as he is allowed to do, to decide whether to call snap elections, form a new government or resign. (Financial Times)
The Supreme Court unanimously ruled that the N.C.A.A. cannot bar relatively modest payments to student-athletes in the name of amateurism. The decision, based on antitrust law, came as the business model of college sports is under increasing pressure. (New York Times)
Economy
Bagpipes and barbecues: incentives abound to lure staff back to the office. Data show that a gap has opened between what employers hope for as lockdowns ease and what employees want. The latest survey by the UK’s Office for National Statistics shows 36% of those currently homeworking think they will spend most or all of their time working remotely in future, whereas nearly 40% of businesses expect 75% of their workforce to return to the workplace. (Financial Times)
WeWork posted its best sales since dropping IPO plans in 2019: At the end of May, WeWork had 505,000 memberships. The global co-working company said it sold enough desks in April and May -- and had fewer cancellations -- to record its best net desk sales since September 2019. (Bloomberg)
America’s biggest banks will learn the results of their latest stress tests from the US Federal Reserve this week, with a passing grade expected to be a catalyst for billions of dollars in stock buybacks and dividends. The expectation that banks will return more money to shareholders is a sign of how well the US banking sector has fared during the pandemic. The likes of Goldman Sachs and JPMorgan Chase have been bolstered by government stimulus and buoyant revenues from trading and dealmaking. (Financial Times)
A better-than-projected economic recovery and a massive influx of federal aid have stuffed New York state’s once-bare coffers, a reversal of fortune that is leading some fiscal watchdogs to again question the state’s decision earlier this year to increase income taxes on high earners. (Wall Street Journal)
The introduction of a digital euro would boost consumers’ privacy and protect the eurozone from the “threat” of competing cryptocurrencies that could undermine the bloc’s monetary sovereignty, according to the central banker overseeing its development. Fabio Panetta, an executive board member at the European Central Bank, told the Financial Times that one of the project’s key aims was to combat the spread of digital coins created by other nations and companies. (Financial Times)
Bitcoin tumbles 10% in wake of deepening China crackdown. (Reuters)
Amber Group, a Hong Kong-based crypto finance startup that provides trading and asset management services, raises $100M Series B at $1B pre-money valuation. (TechCrunch)
Real estate mogul Frank McCourt says he plans to invest $100M to build a blockchain-based database of social connections, sidestepping the dominant social apps. (Bloomberg)
Technology
The deals during Amazon’s annual Prime Day sale will be stingier this year, according to merchants, thanks to rising shipping costs, higher advertising rates and scarce inventory. The two-day event began today. Many say they’re also holding back inventory in case shipping delays persist through the busy Christmas holiday shopping season. (Bloomberg)
Amazon’s Prime Day is earlier than usual this year; here’s what to expect. (Wall Street Journal)
In April, Facebook announced a series of planned investments in new audio products, including a Clubhouse live audio competitor as well as new support for podcasts. Today, Facebook is officially rolling these products with the launch of Live Audio Rooms in the U.S. on iOS, starting with public figures and select Facebook Groups, and the debut of an initial set of U.S. podcast partners. Both products will become more broadly available in the weeks and months ahead, as more people, podcasts, and Groups are brought on board. (TechCrunch)
Germany's Federal Cartel Office, the Bundeskartellamt, initiated proceedings against Apple on the claims of anti-competitive behavior related to the App Store, its products, and other services. (MacRumors)
China’s ongoing bitcoin mining crackdown has sent the price of graphics cards plummeting, making the critical component in mining operations much more affordable in the country but leaving miners with fewer places to set up shop. (South China Morning Post)
Smart Links
China to shut down over 90% of its Bitcoin mining capacity after local bans. (Global Times)
Morning people may be at lower risk of depression than night owls. (New York Times)
French schools dominate FT ranking of masters in finance degrees (No. 1: HEC Paris). (Financial Times)
Uber and Lyft fares surge as pandemic recedes. (The Guardian)
American Airlines cuts flights to avoid potential strains. (Wall Street Journal)
Customer support via Twitter isn’t support, it’s P.R. (Marker)