Know someone who would like this newsletter? Forward it to them.
The World
The Dow surpassed 30,000 for the first time. All the 11 major S&P indexes were up, with economically-sensitive sectors such as banks, industrials and energy leading gains as investors rotated out of technology heavyweights that were seen as safe bets during the recession. (CNBC, Reuters)
General Motors turned its back on the Trump administration’s legal fight to nullify California’s strict fuel economy rules, signaling that it was ready to work with President-elect Biden to reduce climate-warming emissions from cars and trucks. The decision by CEO Mary Barra to withdraw her company’s support for efforts to strip California of its ability to set its own fuel efficiency standards was a striking reversal — and a sign that Biden may find the auto industry amenable as he tries to reinstitute and rebuild Obama-era climate change regulations. (New York Times, Detroit Free Press)
Chicago Federal President Charles Evans said there is still “quite a long ways to go” for the U.S. recovery from the coronavirus crisis, adding that he expects the Fed to keep interest rates at their current near-zero level until perhaps into 2024. Meanwhile, the Bank of England governor said a no-deal Brexit would be “worse than Covid” for the economy. (Reuters, The Times)
The Spanish government plans to limit Christmas and New Year gatherings to six people and to set a 1am to 6am curfew for Christmas Eve and New Year’s Eve. The W.H.O. is sending investigators to China. Another shutdown looms over Los Angeles County, as even outdoor dining is suspended. University of Utah study: Statewide mask mandates are good for business. Here’s the current vaccine distribution plan. (El Pais, The Guardian, Los Angeles Times, University of Utah, Washington Post)
The Trump administration authorized the start of formal transition proceedings. President-elect Biden and his top aides will be given classified briefings. Cabinet nominees: Alejandro Mayorkas, would become the first Latino to run the Department of Homeland Security; Avril Haines the first female director of national intelligence; and reportedly Janet Yellen, former chair of the Federal Reserve, as the first woman to run the U.S. Treasury; John Kerry, the former secretary of state who helped piece together the landmark Paris climate agreement, as Climate Czar. Earlier in the day, more than 160 of the nation’s top business executives, including several who have been major donors to the Republican Party, urged the Trump administration to accept the election results and begin the transition. (Los Angeles Times, MIT Technology Review, Washington Post)
The Jerusalem Post says Prime Minister Netanyahu announced plans to travel to Bahrain in the aftermath of his unusual visit to Saudi Arabia. However, Saudi Arabia's foreign minister, Faisal bin Farhan, denied the meeting took place. Meanwhile, Sudan denies knowledge of Israeli delegation’s visit to Khartoum. (Jerusalem Post, CNN, Times of Israel)
Anger is growing over the use of 'brutal force' by French police dismantling refugee camp. Police officers were filmed pulling up tents and leaving people thrown to ground. (The Guardian)
A cluster of bars probably played a role in encouraging the transmission of Covid-19 among students at the University of Wisconsin at Madison, a new National Bureau of Economic Research working paper suggests. (National Bureau of Economic Research)
Economy
Home prices saw the biggest spike in 6 years in September, according to S&P Case Shiller. The 10-City Composite was up 6.2% year over year, up from 4.9% in the previous month. The 20-City Composite posted a 6.6% gain, up from 5.3% in the previous month. However, U.S. consumer confidence fell more than expected in November amid a widespread resurgence in new COVID-19 infections and business restrictions. (CNBC, Reuters)
CFOs adjust to repote due diligence as deal making soars: Global companies overcame concerns to strike deals worth more than $1 trillion in 3Q20, compared with $762.67 billion in the prior-year period. Transactions involving U.S. companies also have soared to $531.27 billion 3Q20, up from $140.48 billion in the second quarter and $345.69 billion in 3Q19. (Wall Street Journal)
The chairman and CEO of e-commerce giant Alibaba Group praised Chinese regulators in a possible attempt to repair ties after the stock market debut of its former financial services arm was suspended following criticism of them by billionaire Alibaba founder Jack Ma. (The Standard)
Early weekend reading:
How to Fix Economic Inequality? An Overview of Policies for the United States and Other High-Income Economies. This guide draws together research from the world’s leading experts on inequality trends and causes within countries and a list of available policy options to mitigate the growing gap (mostly for the U.S., with lessons applicable to other advanced countries). (Peterson Institute)
How the 2020 Election Deepened America’s White-Collar/Blue-Collar Split. The nation’s economic divisions continue to mirror its political divisions, with both growing wider. (Wall Street Journal)
Technology
Tech CEOs say goodby to San Francisco and hello to Austin, TX. To attract employees and customers, Splunk, Dropbox and Brex each set up elaborate San Francisco offices and plastered billboards for its services around the city. Now, all three companies embody a new trend: Their chief executives are leaving the Bay Area. Dropbox CEO Drew Houston and Splunk CEO Douglas Merritt both recently bought homes in Austin, with plans to make the Texas capital their permanent residences. (The Information)
Tech’s “covid concessions” seem to be ending: Comcast is planning to start enforcing its data caps starting in January; Uber Eats' commission-free online ordering system is scheduled to start charging again at the end of the year, though the company said the date is subject to change; DoorDash's Storefront was also supposed to start charging commissions in January, but now won't until the end of March. (Source Code)
Congress is eyeing face recognition, and companies want a say: Amazon and Microsoft have hired lobbyists, as have airlines, retailers, wireless carriers, and cruise operators. (Wired)
The rise of supergiant rounds of $100 million or more has been a standout trend in startup funding for years, and 2020 is no exception. So far this year, startups globally have raised at least 539 supergiant rounds totaling $142 billion. That’s up already from the 2019 total and represents a majority of this year’s investment in venture-backed companies. (Crunchbase)
Apple’s security chief was accused of offering a bribe to senior officers in the county’s sheriff’s department in exchange for concealed firearms permits. (Palo Alto Weekly)
Smart Links
Jeff Bezos: Here’s how I make Amazon’s highest-stakes decisions. (Fast Company)
A day in the life of an Amazon warehouse worker. (Wall Street Journal)
Elon Musk overtakes Bill Gates to grab world’s second-richest ranking. (Bloomberg)
Cambridge University: Misshelved Charles Darwin notebooks now thought stolen. (The Times)
China launches its first mission to bring moon rocks back to Earth. (MIT Technology Review)
With Congress divided, what can Biden do about climate change? (Harvard Gazette)
Facebook ads could be reaching saturation point. (Wall Street Journal)
Americans paid close attention as election returns came in. (Pew Research Center)