Know someone who would like this newsletter? Forward it to them.
The World
The EU has pitched a new post-Trump alliance with U.S. in face of China challenge. The Brussels draft plan seeks to rebuild ties with common fronts on tech, Covid-19 and democratic interests. Meanwhile, China is making a final effort to court Japan and South Korea before Trump leaves. China’s Foreign Minister visited the two key U.S. allies last week to forestall any attempts to build a united front against Beijing, as China fears the Biden administration will not herald an immediate shift in Washington’s stance. Separately, the Trump administration is poised to add China’s top chipmaker SMIC and national offshore oil and gas producer CNOOC to a blacklist of alleged Chinese military companies. (Financial Times, South China Morning Post, Reuters)
Cases of coronavirus in England fell 30% after lockdown measures were rolled out in November. Meanwhile, millions of Britons heading into the top tier of restrictions hope that the curbs will be eased as the numbers of infected halved in the north. The first coronavirus vaccine is on track for international deployment within weeks. In the U.S., Dr. Fauci warned of “surge upon surge” in cases after Thanksgiving, while White House coronavirus response coordinator Dr. Birx hopes to brief Biden’s team today. A ‘purple alert’ puts San Francisco at the highest restriction level, and L.A. County’s new stay-home order is the strictest in California. (Bloomberg, The Times, Financial Times, The Guardian, CNBC, SF Chronicle, Los Angeles Times)
President-elect Biden plans to announce Cecilia Rouse and Brian Deese as part of his economic team and Neera Tanden to head the Office of Management and Budget. Rouse, dean of the Princeton School of Public and International Affairs, will be nominated to chair the Council of Economic Advisers. If confirmed, she would be the first Black female to lead the organization. If Republicans retain Senate control, they are unlikely to easily pass Tanden, who advised Hillary Clinton’s 2016 presidential campaign and has been an outspoken Trump critic. Biden also chose an all-female senior White House press team. Meanwhile, Biden and Vice President-elect Harris will start receiving the same daily intelligence briefing that President Trump gets. (Axios, New York Times, Wall Street Journal, Associated Press, Bloomberg)
Fishing remains the biggest hurdle as EU and Britain inch towards trade deal and head into a “very significant” week, as talks enter their final days with serious differences yet to be resolved. Both sides seek a deal to prevent disruption to almost $1 trillion of trade at the end of December. Meanwhile, Britain is on course for one of the worst periods of income growth since records began. (The Times, Reuters, The Guardian)
The attack that killed the alleged architect of Iran’s nuclear weapons program on Friday was carried out from afar using a remote-controlled machine gun attached to a car, according to Iranian reports. Meanwhile, Jared Kushner will travel to Saudi Arabia and Qatar in a last-ditch effort to resolve the dispute between the Gulf countries. (Times of Israel, Axios)
Centrist mayors won in Brazil’s two biggest cities — Sao Paulo and Rio de Janeiro — defeating President Bolsonaro’s candidates in nationwide municipal elections, consolidating the return of more moderate political actors following a conservative wave that swept the country two years ago. Rebellious forces from Ethiopia's northern region of Tigray said they shot down a military plane and retook a town from federal forces, a day after the prime minister announced federal troops had taken over the regional capital and military operations were complete. In France, thousands of protesters decry bill outlawing use of police images. In Belarus, security forces detained hundreds of protesters at rallies in Minsk the opposition had billed as “the march of neighbors.” (Bloomberg, Reuters, Associated Press, Reuters-2, Le Monde)
Unapologetic over last year’s unrest and ready to get tough on the pandemic, Hong Kong leader Carrie Lam is “back to her old self.” In a wide-ranging interview, the city leader says she ‘does not feel guilty’ about sparking last year’s protests, adding she has “regained confidence” after low point. Vowing stricter anti-pandemic measures, Lam says she is weighing “whether the law can be enhanced to make certain things compulsory.” (South China Morning Post)
President Trump’s administration has one last blockbuster showdown at the Supreme Court over his immigration policies, and this one goes to the heart of how U.S. political power is allocated. In an argument set for today, the administration will seek the right to exclude undocumented immigrants from the census count used to divvy up congressional seats and federal funds. The Court also will hear its first big Computer Fraud and Abuse Act case. (Bloomberg, ABA Journal, TechCrunch)
Americans and Germans head into 2021 with divergent opinions on transatlantic alliance: 74% of Americans continue to say that relations between the two countries are good. At the same time, 79% of Germans say the relationship is in poor shape. (Pew Research Center)
Economy
Black Friday shopping in stores cratered 52% this year, while spending online surged 21.6% to hit a new record, as consumers rang up $9 billion worth of purchases. (CNBC)
Bond investors are betting on battered companies surviving virus shock, fueling a turn in fortunes for borrowers beaten up by coronavirus as yields tumble. (Financial Times)
The number and size of global healthcare deals is expected to decline in 4Q20 from a record-setting third, given the current pace of deals. There will be an estimated 1,270 global healthcare deals in 4Q20, amounting to about $19.6 billion in funding. That's compared to 1,575 deals in 3Q20, amounting to a whopping $22.3 billion in funding. The drop carries over into the digital health sector too. Total digital health deals are expected to reach 372 and funding of $5.5 billion in 4Q20, down from 505 and $8.4 billion respectively in the third. (HealthcareDive, CB Insights)
The future of food is being farmed in a warehouse down the road: The pandemic forced us to reconsider our supply chains, and the lettuce of tomorrow might be grown in your neighborhood, rather than in a neighboring state. (Protocol)
The price of sellside analyst meetings have been almost halved by the pandemic, as a shift to online presentations means fund managers are paying less for investment research. (Financial Times)
In September 2020, 67% of unpartnered mothers with children younger than 18 at home were working, down from 76% in September 2019. This 9-point drop was the largest among all groups of parents, partnered or not. The decline was sharper among unpartnered moms who are Black or Hispanic than among those who are White. (Pew Research Center)
Technology
Airbnb and DoorDash plan to release higher-than-expected valuation ranges for their initial public offerings, in the latest sign of strength in a booming market for new issues. Airbnb plans to target a range of around $30 billion to $33 billion—using a fully diluted share count—when the home-rental startup kicks off its investor roadshow Tuesday. DoorDash plans to target a range of around $25 billion to $28 billion on a fully diluted basis ahead of a roadshow expected to begin Monday. (Wall Street Journal)
Websites are back. After years of being sucked into the vortexes of Facebook and Yelp pages, devoting their time to amassing Twitter followers and Instagram likes, creators and businesses alike have seen the benefits of hanging up their own shingle again. Legions of writers are setting up Substack newsletters. Millions of people and businesses are setting up shop for the first time online using Squarespace or WordPress. Wix reported 7.8 million new users in the last quarter alone, and more than 29% revenue growth. (Protocol)
After taking on TikTok with music-powered features last month, Snapchat launched a dedicated place within its app where users can watch short, entertaining videos in a vertically scrollable, TikTok-like feed. This new feature, called Spotlight, will showcase the community’s creative efforts, including the videos now backed by music, as well as other Snaps users may find interesting. (TechCrunch)
Tony Hsieh, who became a frequently quoted and studied management guru by offering free shipping of shoes and persuading millions of people to buy them online at Zappos, died Friday at the age of 46. In the early days of Zappos, the company had to overcome deep customer doubts about buying shoes without trying them on first. Zappos cleared that hurdle in an audacious fashion—by offering free shipping and free returns. That meant customers could order half a dozen pairs of shoes, try them on at home and keep only the ones they liked. The company he built had all the standard lures for millennial employees —nap rooms, a petting zoo, frequent costume parties—but stood out by intensively promoting friendly and reliable customer service. Rather than outsourcing call centers and warehousing, Zappos made them core in-house functions. Phone numbers were displayed prominently on the website, and customers were encouraged to call Zappos representatives rather than email. “The telephone is one of the best branding devices out there,” Mr. Hsieh wrote in a bestselling 2010 memoir, “Delivering Happiness.” (Wall Street Journal)
Smart Links
S&P Global nears deal to buy IHS Markit for about $44 billion. (Wall Street Journal)
HSBC considers exit from U.S.retail banking. (Financial Times)
For sale: a chance to inspect the Mona Lisa up close. (The Times)
Five best science books this week. (Nature)
Judges' decisions in combat sports focus more on vigor than skill. (Science Daily)
Real Christmas tree industry is booming amid pandemic. (Axios)
Work-from-home crushes dry cleaners; one in six have closed or gone bankrupt. (Bloomberg)
Do you have e-charisma on Zoom? Here’s how to get it. (Wall Street Journal)
Learn More (Today, 9 a.m. ET): Combating COVID-19, featuring Moncef Slaoui, PhD, Chief Science Adviser, Operation Warp Speed. (Washington Post)