Know someone who would like this newsletter? Forward it to them.
The World
Ukraine's President Volodymyr Zelenskiy sacked the head of the country's domestic security service and state prosecutor, citing hundreds of cases of alleged treason and collaboration with Russia, as Moscow appeared set to step up military operations. Zelenskiy said more than 60 officials from the SBU security service and prosecutor's office were working against Ukraine in Russian-occupied territories, and 651 treason and collaboration cases had been opened against law enforcement officials. (Reuters)
Russian missiles hit a prime city in southern Ukraine as a senior Russian official promised “doomsday” if Kyiv’s forces tried to retake Crimea. The missiles struck industrial facilities in Mykolaiv, a shipbuilding city near the Black Sea, in what Ukrainian officials called a “massive attack”. (The Times)
Wildfires across Europe are likened to Dante’s inferno: Authorities across southern Europe battled to control huge wildfires in countries including Spain, Greece and France, with hundreds of deaths blamed on soaring temperatures that scientists say are consistent with climate change. In Spain, helicopters dropped water on the flames as heat above 40 Celsius (104 Fahrenheit) and often mountainous terrain made the job harder for firefighters. More than 1,000 deaths have been attributed to the nearly week-long heatwave in Portugal and Spain. (The Times, Reuters)
Scorching heat expected to resume baking China this week. (Reuters)
Hong Kong recruiters are struggling to hire overseas graduates for the financial services and legal industry in another sign the Asian hub is losing its luster. Amid a clampdown on dissent and stringent Covid-zero policies, the Chinese territory has seen an exodus of experienced financial professionals. Now headhunters say junior talent for investment banks and law firms is also harder to find and retain, with global recruitment firm Ambition reporting a 40% decline in candidates for entry-level positions compared to before the pandemic. (Bloomberg)
China needs six or seven aircraft carriers to watch over the South China Sea and possibly the Indian Ocean, according to a Chinese defense analyst. Last month the country launched its third carrier the Fujian and a fourth is also reportedly in the pipeline – putting the country on track to have the world’s second largest carrier fleet after the United States. (South China Morning Post)
Newly-crowned British Open champion Cameron Smith reacted angrily when asked if he was on the verge of joining the highly-lucrative LIV Golf Invitational Series but reports suggest the Australian is among many players who are about to jump ship."I just won the British Open and you are asking about that?" Smith told reporters. "That is not that good. My team around me worry about that stuff. I am here to win golf tournaments." Sky Sports also reported that Henrik Stenson will be axed as Ryder Cup captain as he too is expected to join the highly controversial breakaway series that is bankrolled by Saudi Arabia's Public Investment Fund (PIF). (Reuters, Sky Sports)
Economy
Federal Reserve officials have signaled they are likely to raise interest rates by 0.75 percentage point later this month, for the second straight meeting, as part of an aggressive effort to combat high inflation. Policy makers left the door open to a larger, full-percentage-point increase at the July 26-27 gathering. But some of them simultaneously poured cold water on the idea in recent interviews and public comments ahead of their premeeting quiet period, which began Saturday. (Wall Street Journal)
Strong Dollar Extends Gains With No End to Rally in Sight: Few on Wall Street see a change in its trajectory, reflecting fears of a global recession and deterioration in Europe. (Wall Street Journal)
The dollar’s gain is the world’s pain — and based on its current trajectory, the world may be in for a whole lot more discomfort. Concerns over global growth have recently sent the Bloomberg Dollar Index to the strongest level on record, with the greenback hitting multi-decade highs against currencies like the euro and the yen. (Bloomberg)
A string of big rate rises by the Federal Reserve has put pressure on central banks around the world to follow suit to counter soaring inflation and the strong dollar. A Financial Times analysis found that central banks are now, more than at any other time this century, opting for large rate rises of 50 basis points or more, laying bare the challenges of tackling price pressures and higher US rates. Rises by the Fed, including its first 75 basis point increase since 1994, and fears over the health of the global economy, have bolstered the US dollar against almost all currencies. (Financial Times)
Supply Chains Inching Back to Normal Brace for Headwinds of Softer Demand. (Bloomberg)
Technology
71 Cities and Towns Are Paying Tech Workers to Abandon Silicon Valley. It’s Working. Incentives are drawing high-paid tech workers, and challenging how we think about local economic development. A growing number of cities and towns all over the U.S. are handing out cash grants and other perks aimed at drawing skilled employees of faraway companies to live there and work remotely. A handful of such programs have existed for years, but they have started gaining traction during the pandemic—and have really taken off in just the past year or so. Back in October there were at least 24 such programs in the U.S. Today there are 71, according to the Indianapolis-based company MakeMyMove, which is contracted by cities and towns to set up such programs. (Wall Street Journal)
The rock star litigator who hopes to bring Elon Musk to heel: Bill Savitt’s colleagues at Wachtell, Lipton know when he is at his deepest in crafting an intricate legal argument: they can hear him jamming in his office on a Fender Telecaster electric guitar. In corporate law circles, Savitt is recognised as one of the finest litigators in the US. His speciality is representing blue-chip boards of directors in messy disputes in Delaware, the tiny state where most American companies are domiciled. (Financial Times)
In emails sent to three creators, Coinbase says it is “temporarily shutting down” its US affiliate program on July 19 and plans to relaunch it in 2023. (Money Control)
Younger people abandon streaming to save money. More people are cancelling their video subscriptions to save money in the face of the cost of living squeeze, with under-24s most likely to walk away. In the second quarter of the year, almost 1.66 million services were dropped from the likes of Netflix, Now and Disney in the UK and more than a third of these were directly attributable to people tightening their belts. Half a million households cancelled all their subscriptions, according to Kantar, the market researcher. (The Times)
Smart Links
Starbucks examines sale of its UK business. (Financial Times)
A can of Coca-Cola for $13? Prices are rising on one of Europe’s most popular islands. (CNBC)
The 10 best U.S. companies for career growth. (CNBC)
Grubhub Hustles to Catch Up in Business It Once Led. (Wall Street Journal)