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The World
Nearly two-thirds of Americans (64%) are optimistic about the direction of the country. The last time the country came close to that level of optimism about the coming year was in December 2006, when 61% said they were optimistic about where the country was headed. But there are some warning lights flashing: Only a slim majority (52%) think the federal government should spend to revitalize the economy, even if it raises taxes -- including 80% of Democrats and 54% of independents. The question of government spending and taxes largely divides Americans, with 47% saying taxes should stay at the same level, even at the expense of the economy -- including 78% of Republicans. (ABC News/Ipsos poll)
The world’s largest economies on both sides of the Atlantic have a good chance of recovering the lost ground caused by the pandemic by the end of the year, much faster than economists had previously feared. Economists have revised up their forecasts for US and eurozone economic performance after data this week showed both economies displaying more resilience than had been expected. U.S. household spending is beginning to show the effects of Joe Biden’s $1.9tn stimulus, and the eurozone’s 1Q21 contraction due to the latest wave of Covid-19 was smaller than economists had expected. (Financial Times)
U.S. Treasury Secretary Janet Yellen urged Congress to stick to the White House’s plan to pay for its $4.1tn investment plans with higher taxes, arguing the country needed to contain US deficits over the long term. Yellen defended Joe Biden’s attempt to impose higher levies on companies and the wealthiest Americans in order to fund $2.3tn in infrastructure spending and $1.8tn in social programmes over the next decade, after criticism from Wall Street, corporate America, and Republican lawmakers. But Yellen went a step further, saying that it was important to offset the cost of the Biden administration’s spending plans in order to keep America’s fiscal position from worsening. (Financial Times)
North Korea lashed out at the U.S. and its allies in South Korea in a series of statements saying recent comments from Washington are proof of a hostile policy that requires a corresponding response from Pyongyang. (Reuters)
Prime Minister Jacinda Ardern said that differences between New Zealand and China are becoming harder to reconcile as Beijing's role in the world grows and changes. In a speech at the China Business Summit, Ardern said there are things on which China and New Zealand "do not, cannot, and will not agree," but added these differences need not define their relationship. (Reuters)
The French military command and the government have vowed to punish active officers and force rightwing reservist generals into full retirement for signing an incendiary declaration mourning the “disintegration” of France because of Islamist radicalism and immigrant “hordes” in the suburbs and hinting at a coup d’état. (Financial Times)
Rome’s Colosseum to gain hi-tech arena floor: The floor of Rome’s Colosseum, where gladiators once fought against each other and wild animals, is set to be restored to its former glory. Milan Ingegneria, a structural engineering and architecture firm, has won an €18.5m (£16m) bid to build and install a retractable arena floor that will allow visitors “to see the majesty of the monument” from its centre, culture minister Dario Franceschini said. (The Guardian)
Lots of jobs await the Class of 2021. So does the competition. New grads will have to vie with their unlucky 2020 predecessors as the U.S. economy pulls out of a pandemic-led slump. (Wall Street Journal)
Manchester United’s game with Liverpool at Old Trafford was postponed after a planned peaceful protest outside the stadium by fans angry with the club’s owners, the Glazers, spilled into chaotic and violent scenes as a group of around 100 broke into the ground, causing criminal damage and forcing some staff to lock themselves into rooms for safety. (The Guardian)
Economy
Warren Buffett opened Berkshire Hathaway’s annual meeting with an upbeat assessment of the US recovery from the pandemic, saying business was “very good” in parts of the economy. In his annual address to Berkshire shareholders, the doyen of the investing world, aged 90, said US capitalism “has worked unbelievably well”. (Financial Times)
SPAC share prices slump as enthusiasm wanes: Companies that came to market via blank-cheque deals are trading at an average of 39% down from their highs. (Financial Times)
How one of Canada’s largest pension funds is incorporating ESG in its portfolio: Compensation based on hitting climate targets, carbon budgets for portfolios, and public company board targets are all tools used by CPDQ. (Institutional Investor)
In New York, a big shift toward working from home is endangering hundreds of locally owned Manhattan storefronts that have been hanging on, waiting for life to return to the desolate streets of Midtown and the Financial District. The fate of these stores, and by extension the country’s two largest business hubs, will hinge in large part on how long landlords will keep offering the rent breaks that have kept many retailers afloat. Landlords themselves are under growing financial pressure as office vacancies soar and commuters and visitors stay away. (New York Times)
Car rental startups ride post-pandemic boom: Peer-to-peer rental startups look poised to be big winners in a post-pandemic economy that is seeing car rental costs astronomically higher than even pre-COVID levels. While rental fleet operators face supply crunches, venture-backed companies like Turo and Getaround, which rely on existing car owners, are scaling to meet quickly escalating demand. (Crunchbase)
Technology
Epic v. Apple: Everything you need to know about the biggest trial in tech: Today, Apple and Epic Games will meet in court to decide one of the most consequential antitrust arguments in the history of the tech industry. The trial has been nearly a year in the making, following Apple's removal of Fortnite from the App Store in August 2020. It's arguably the biggest courtroom showdown Apple has engaged in since its smartphone patent war with Samsung nearly a decade ago. This time, however, Apple is the one on defense. Epic alleges that the iPhone maker's App Store and in-app purchase policies both violate antitrust law. At the heart of the case are arguments over whether Apple can and should exert total control over iOS and the App Store, or whether developers should be allowed to distribute apps over alternative marketplaces or simply bypass Apple's longstanding 30% commission on digital goods. (Protocol)
Tim Cook, Tim Sweeney and the other key players: Current and former executives of Apple and Epic are among the witnesses who are expected to testify in court. (Wall Street Journal)
Epic expert's testimony, based on internal Apple docs, estimates that App Store had an operating margin of 77.8% in 2019; Apple says the estimates are wrong. (Bloomberg)
The sandboxed App Store model has been a hugely good thing, but Apple has often made wrong decisions in running it and now the EU is stepping in to regulate it. (Benedict Evans)
From tablets to sex toys, the chip shortage is far-reaching: Scarcity means higher price tags for consumers, longer waits for goods, empty store shelves and swaths of the business world racing to secure whatever supply they can. (Wall Street Journal)
Intel CEO Pat Gelsinger says the microchip shortage will last a “couple of years,” adding that “25 years ago, the United States produced 37% of the world's semiconductor manufacturing in the U.S. Today, that number has declined to just 12%.” Today, 75% of semiconductor manufacturing is in Asia. (60 Minutes)
Spotify's Daniel Ek sees live audio as the next big universal social feature: "I think creators will engage in the places where they have the best sort of creator-to-fan affinity for the type of interactions that they're looking for. And I think this is very similar to, say, how Stories played out historically." He also announced that Spotify's Clubhouse competitor, created from its Locker Room acquisition, will be called Greenroom. (Source Code, TechCrunch)
By 2030, 40% of vehicles sold in China will be electric; MIT research finds that despite benefits, the cost to consumers and to society will be substantial. (MIT News)
China is preparing a substantial fine for Tencent Holdings as part of its sweeping antitrust clampdown on the country’s internet giants, but it is likely to be less than the record $2.75 billion penalty imposed on Alibaba earlier this month. (Reuters)
Microsoft says it will reduce its cut for PC games in Microsoft Store from 30% to 12% starting August 1, in a bid to compete with Steam. (The Verge)
Smart Links
TikTok is the place to go for financial advice if you’re a young adult. (Wall Street Journal)
Cities appoint ‘heat officers’ in response to warming threat. (Financial Times)
Covid has created a perfect storm for fringe science. (Scientific American)
Remote hiring startup Deel raises $156M at a $1.25B valuation after 20x growth in 2020. (TechCrunch)
Apple creates fund for 'working forests' as part of carbon-removal efforts. (Reuters)
We’re on track to set a new record for global meat consumption. (MIT Technology Review)
The countries that eat the most meat. (Statista)