The World
Europe’s leading economies plunged into historic recessions, as France, Italy and Spain all reported double-digit 2Q20 falls in economic output. The figures came after both the US and Germany reported a loss of about a tenth of their GDP in 2Q20. Meanwhile, China’s factories stepped up activity in July for a fifth straight month as improving prospects for electrical and pharmaceutical goods helped sustain a broader recovery — one based on its old model of construction, investment and low-end exports that experts say points to Beijing’s unencumbered ability to pull economic levers. In the U.S., consumers increased spending a solid 5.6% in June but appear to have pulled back since then as income drops. (Financial Times, Reuters, South China Morning Post, Wall Street Journal)
The White House is willing to cut a deal with Democrats that leaves out Senate Republican legislation aimed at protecting employers, hospitals and schools from coronavirus-related lawsuits — the so-called “liability shield.” However, Sen. Mitch McConnell could shoot down any deal that leaves out what he has said is a necessary component of any stimulus package. Meanwhile, Democrats rebuffed the plan for short-term extension of jobless benefits that threatens to hit millions of households. (Washington Post, Financial Times)
Hong Kong Chief Executive Carrie Lam announced that she is delaying the Sept. 6 election for a year — invoking the colonial-era Emergency Regulations Ordinance — because of mounting concern about the coronavirus pandemic. She said the election would be held on Sept. 5, 2021. (South China Morning Post, Deutsche Welle)
Boris Johnson ordered swathes of the north of England back into partial lockdown as he warned of a “damaging second wave” hitting the UK. England has had the greatest rate of excess deaths of any country in Europe during the pandemic, with a surge that lasted longer and spread to more places than those in nations like Italy and Spain. Meanwhile, cases rose 54% in France in a week. (The Telegraph, New York Times, The Guardian)
The European Union imposed sanctions against China, Russia, and North Korea — including a travel ban and asset freeze — for past cyber-attacks carried out against European citizens and businesses. (ZDNet)
Economy
The U.S. dollar has tumbled the most in a decade this month, propelling sterling and the euro sharply higher. The greenback has shed 4.9% in July, its worst monthly sell-off since September 2010. The euro rose 0.3% against the US currency to its highest level in two years; the pound gained the same amount; Japan’s yen rose 0.3% to a more than four-month high. (Financial Times)
EU leaders approved the most aggressive climate-change plan in history — a $2 trillion budget agreement that called for introducing a “carbon border adjustment mechanism” by 2023. In fact, the move could slash climate emissions far beyond Europe. (MIT Technology Review)
Companies are using employee survey data to predict — and squash — union organizing, as employee survey platforms allow employers to sort groups of employees by the departments, locations, and demographics most likely to unionize. (OneZero)
Looking forward:
Based on their Future Systems study of more than 8,300 companies, Accenture CTO Paul Daugherty and coauthors explain the five human values that are driving new consumer behaviors, and why companies are scrambling to “humanize” technology and adapt to address those values: 1) “You can’t trust the future.” People will factor black swan events into major decisions. 2) “If I can do it online, I will.” Covid-19 thrust even digital laggards online for a whole host of activities. 3) “Health is my top priority.” People will reassess almost every experience, product and service in light of how it either enhances or diminishes their health. 4) “Home is where I feel safest.” There will be a rise in the proportion of home spending. 5) “I expect everyone to do the right thing.” Many companies have been “humanizing” their brands along with their technology. (Chief Executive)
Technology
China’s top antitrust agency is looking at whether to launch a probe into Alipay and WeChat Pay, prompted by the central bank which argues the digital payment giants have used their dominant positions to quash competition. (Reuters)
Amazon said the number of demands for user data made by U.S. federal and local law enforcement increased more during 1H20 than during 1H19. Amazon received 23% more subpoenas and search warrants, and a 29% increase in court orders. (TechCrunch)
StubHub will close its offices in the Asia Pacific and Latin America. Meanwhile, as travel came to a near standstill in March, Airbnb abruptly halted online advertising to cut costs. The effects so far have been mixed. Even with scant marketing spending, Airbnb has started to see a rebound in bookings and website traffic. But Airbnb also has recovered more slowly than smaller competitors, including Expedia-owned Vrbo, which has been spending more aggressively on ads in recent months. (The Guardian, The Information)
Nvidia is in advanced talks to acquire Arm, the chip designer that SoftBank Group bought for $32 billion four years ago. A deal for Arm could be the largest ever in the semiconductor industry, which has been consolidating in recent years as companies seek to diversify and add scale. (Yahoo Finance)
Apple loyalists prove physical stores not needed to drive iPhone sales. (Reuters)
Smart Links
What Wall Street’s results tell you about America’s economy. (Economist)
When a brand stands up for racial justice, do people buy it? (Harvard Business Review)
The best workplaces for innovators. (Fast Company)
Canceled college sports games put millions on the line for ESPN. (Bloomberg)
Joe Rogan and Serial: Podcasting is finally big business. (Deutsche Welle)
The 2020 James Beard Awards will be held on Twitter. (Eater)