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The World
The international economy is recovering faster than many economists projected just weeks ago, powered by growth in the U.S. and China and by the accelerating pace of vaccinations in many rich countries. Yet a new wave of lockdowns—from Europe to Canada—is threatening that growth, as many low- and middle-income nations with limited resources lag behind. In a report to be released tomorrow, the IMF plans to raise its forecast for global growth for this year, from the 5.5% expansion projected in January. That would follow an estimated 3.5% contraction in 2020, the worst peacetime outcome since the Great Depression. The annual IMF & World Bank spring meeting will be held virtually beginning today. (Wall Street Journal)
Italy’s central bank governor said the uneven pace at which countries are vaccinating their populations is the single greatest threat to a global economic recovery. Meanwhile, France’s Economy Minister Bruno Le Maire said the French economy will expand by 5% in 2021, down from the government’s previous forecast for 6% growth. (Financial Times, Reuters, Le Journal de Dimanche)
The kingdom of Jordan has long been considered an oasis of relative stability in the Middle East. This weekend that placid image was upended as a long-simmering rift between the king, Abdullah II, and a former crown prince, Hamzah bin Hussein, burst into the public eye. The government accused Prince Hamzah, the king’s younger half-brother, of “destabilizing Jordan’s security,” making far more explicit claims about his alleged involvement in the supposed conspiracy. The Jordanian foreign minister, Ayman Safadi, directly accused Prince Hamzah of working with a former finance minister, Bassem Awadallah, and a junior member of the royal family, Sharif Hassan bin Zaid, to target “the security and stability of the nation.” (New York Times)
Data show that life in most of the U.S. remains far from normal: Americans went out less in January, February and early March compared with the same period in 2020. The number of times people spent 10 minutes or more away from home was down 6% across the U.S. Foot-traffic data analysis shows that many people have returned to restaurants but are far less enthusiastic about movie theaters. Fewer people are filling congregation pews in every state except Wyoming. Gyms in North Dakota are busier than before the pandemic, but fewer people are hopping onto treadmills everywhere else. Nationwide people are spending less time in traffic and sticking closer to home, compared with in early 2020. (Wall Street Journal)
Europe’s third wave: Covid-19 infections, hospitalizations and deaths are rising in many countries as the continent grapples with a more infectious variant, a shortage of vaccines and public weariness with lockdowns. In two weeks, new cases in France have risen 55% , 95% in Belgium, 48% in the Netherlands, and 75% in Germany. In the UK, PM Boris Johnson is calling for twice-weekly Covid testing for all adults as government promises a return to a “more normal way of life.” (Financial Times, The Times)
Ontario premier Doug Ford was forced to reverse plans to reopen and instead announced a one-month shutdown as new variants have ushered in a third wave. Canada’s most populous province has been warning of rapidly spreading variants, as cases and ICU admissions surged. (The Guardian)
The Indian state of Maharashtra, home to Mumbai and more than 100m people, introduced sweeping new restrictions as the country’s daily caseload approached a record high — a night-time curfew and weekend lockdown, while all but essential shops are to close. Most private offices will shut, restaurants only be available for takeaway and public gatherings have been curtailed. (Financial Times)
The UK is in a global race to secure the rare-earth elements that are crucial for fighter jets, wind turbines and electric cars amid fears that China could weaponize its monopoly of them. Security agencies are concerned that there will be increased competition for scarce natural resources and that Beijing’s control of supplies could be used as leverage in any disputes. (The Times)
The Beijing-backed Hong Kong broadcaster TVB said it will not air the April 25 Academy Awards telecast, marking the first time in more than 50 years it will fail to do so. It follows Chinese media regulators’ decision earlier in March not to air the Oscars live on its streaming platforms. A censored version is likely to air later. (Washington Post)
The U.S. Air Force general in charge of managing the service’s bomber inventory slammed the Army’s new plan to base long-range missiles in the Pacific, calling the idea expensive, duplicative and “stupid.” (Defense News)
Analysis reveals nearly 200 died in Texas cold storm and blackouts, almost double the official count. The deaths of nearly 200 people are linked to February's cold snap and blackouts, a Houston Chronicle analysis reveals, making the natural disaster one of the worst in Texas this past century. (Houston Chronicle)
Economy
New York Gov. Cuomo and state lawmakers are nearing a budget agreement that would increase corporate and income taxes by $4.3 billion a year and make top earners in New York City pay the highest combined local tax rate in the country. Income-tax rates would rise to 9.65% from 8.82% for single filers reporting more than $1 million of income and joint filers reporting more than $2 million. The plan would also add two new tax brackets. Income over $5 million would be taxed at 10.3% and income over $25 million would be taxed at 10.9%, the people said of the plan, and the new rates would expire in 2027. (Wall Street Journal)
Global M&A and private equity broke all-time records in 1Q21: Global announced M&A hit $1.3 trillion, the largest Q1 figure ever and the second-largest quarter ever. It's also a 94% jump from 1Q20 and the number of deals increased by 9%. Overall, global M&A has experienced three straight quarters of $1 trillion+ activity. U.S. M&A also hit an all-time Q1 high, with U.S. dealmaking accounting for 50% of the worldwide total. Asia-Pacific (ex-Japan) was up 48% year-over-year and Europe rose by 23%. Cross-border M&A hit an all-time Q1 high of $458 billion. Private equity-backed deals hit $249 billion, or 19% of the global total. That represents a doubling of value when compared to 1Q20, while the number of deals was up 57%. (Axios)
A record number of companies are abandoning attempts to list on Shanghai’s Star Market, as regulators increase scrutiny of technology businesses after scuppering Ant Group’s $37bn initial public offering. A record 76 companies suspended their IPO applications in March, or more than double the previous month. (Financial Times)
Commuting hurts productivity and your best talent suffers most: Companies that prize innovation should keep employees out of soul-crushing transit, even after the COVID-19 pandemic, suggests new research. Many companies will confront these questions as the COVID-19 pandemic wanes and remote employees—perhaps grudgingly—contemplate returning to offices. Harvard Business School Assistant Professor Andy Wu’s conclusions were clear: A long commute hurts workers and their employers by hindering creativity and productivity, which stifles innovation. Wu: “It’s amazing how robust the results are. Commuting hurts both innovative quantity and quality,” especially for an organization’s highest-performing workers. (Harvard Business School)
“Godzilla vs. Kong” muscled its way to a pandemic-era box office record, giving Hollywood studios and theater owners alike hope that people are ready to return to the movies after a year of watching Netflix at home. Moviegoers sent a message to Hollywood over the weekend: We’re ready to return to theaters — and will buy tickets even if the same film is instantly available in our living rooms. The movie took in an estimated $48.5 million at 3,064 North American cinemas. (Variety, New York Times)
Technology
Tech companies whose businesses have surged during the pandemic—like Amazon and Zoom —are snagging more of the M.B.A. talent entering the workforce, helping to offset pullbacks by industries harder hit. Openings for tech positions rose at 57% of full-time M.B.A. programs this past fall. Overall, though, it has been a lackluster recruiting season at business schools, as nearly half reported an overall decline in opportunities for students. Sectors hit hardest by the pandemic, such as retail and energy, have pulled back their M.B.A. recruiting. That is especially the case for companies in the hospitality industry, which 61% of business schools said have cut back job opportunities. (Wall Street Journal)
Biden is struggling to fill the DOJ job that could rein in Silicon Valley: White House ethics officials are raising objections about DOJ antitrust candidates who have represented critics of big tech companies like Google, Facebook or Apple. Those concerns prompted one prime candidate for the department’s top antitrust role to pull herself out of the running, the people said. And they would also pose a major obstacle to Biden hiring Jonathan Kanter, a progressive favorite who has represented many clients with complaints about Google. (Politico)
A user in a low level hacking forum published the phone numbers and personal data of hundreds of millions of Facebook users for free online. The exposed data includes personal information of over 533 million Facebook users from 106 countries, including over 32 million records on users in the US, 11 million on users in the UK, and 6 million on users in India. It includes their phone numbers, Facebook IDs, full names, locations, birthdates, bios, and — in some cases — email addresses. (Insider)
Beauty filters are changing the way young girls see themselves. The most widespread use of augmented reality isn’t in gaming: it’s the face filters on social media. The result? A mass experiment on girls and young women. (MIT Technology Review)
Smart Links
Get ready for travel prices to surge, experts say. (Washington Post)
Hot housing market drives prices sky-high across U.S. (Wall Street Journal)
An insider-trading indictment shows ties to Bloomberg News scoops. (Columbia Journalism Review)
Storage startups see space to grow. (Crunchbase)
Mice naturally engage in physical distancing: Neuroscientists identified a brain circuit that stops mice from mating with others that appear sick. (MIT News)
Vice Media is in advanced talks to merge with a SPAC backed by 7GC. (The Information)
US navy ship sunk nearly 80 years ago reached in world's deepest shipwreck dive off the Philippines. (The Guardian)