The World
Isolated from the west and besieged by mass protests, Belarusian leader Alexander Lukashenko made repeated calls for Vladimir Putin to intervene and save his 26-year-old regime. Meanwhile, tens of thousands of people gathered in Minsk for an eighth consecutive day, chanting at Mr. Lukashenko to “go away” and waving an opposition flag. A state TV broadcast showed empty news desks, as staff walked out in protest against censorship. What happens in Belarus, a country of just under 10 million people, could determine the next steps in the long struggle for influence between the West and Moscow in Eastern Europe. (The Guardian, BBC News, Wall Street Journal)
Japan's economy shrank 7.8% in 2Q20, an annualized pace of 27.8%. The third consecutive decline on the quarter was also Japan's biggest under GDP data going back to 1955, exceeding the country's 4.8% drop in 1Q09. Meanwhile, Italy’s businesses are enjoying a “better than expected” virus rebound. (Nikkei Asian Review, Financial Times)
The U.S. Commerce Department issued new rules restricting Huawei’s access to foreign-made chips, further tightening curbs on its ability to obtain crucial components. Meanwhile, the chairman of China’s banking watchdog said the Federal Reserve’s unparalleled stimulus risks plunging the world into financial crisis, while also warning that bad debts at Chinese financial institutions could balloon significantly. (Wall Street Journal, Bloomberg)
Americans see pressure, rather than genuine concern, as big factor in company statements about racism. 69% say pressure from others to address this issue has contributed a great deal to recent public statements about race or racial inequality, while a much smaller share (19%) believes genuine concerns about the treatment of Black people in the country have been a major contributing factor to companies speaking out about race during this time. (Pew Research Center)
One of the most extreme heat waves in generations is smothering California and pushing the region’s power grid to the brink of collapse. In the past 72 hours, the state has declared two grid emergencies and instituted the first rolling blackouts since the 2001 energy crisis. Meanwhile, the temperature in Death Valley soared to 130 degrees, potentially Earth’s highest temperature since at least 1931, as Greenland’s ice sheet has shrunk beyond return. (Bloomberg, Los Angeles Times, Washington Post, Reuters)
New and very wide-ranging polls potentially show a tightening presidential race, as the Democratic National Convention kicks off. Biden Leads Trump 53%-41%, according to today’s Washington Post/ABC News poll, and 50% to 41%, according to a WSJ/NBC News poll. However, a CNN poll shows Biden leading by just 4 points — 50%-46% — and shows an even tighter race across 15 key battleground states, where Biden has the backing of 49% of registered voters, while Trump lands at 48%. (Washington Post/ABC News poll, WSJ/NBC News poll, CNN poll)
Economy
U.S. home builder confidence rose for a third straight month in August to match a record high as record-low interest rates spur a surge in customer traffic, especially in suburban markets. In Australia, rural property is booming as homebuyers flee cities. In the UK, the resurgent housing market sits at a decade high. (Reuters, Nikkei Asian Review, The Times)
Private equity funds that invest in the secondary market will probably raise more money in 2020 than ever before. Secondary funds amassed $44bn across 11 funds globally in the first six months of 2020, far outpacing the whole of 2019, when the asset class collected $26bn. Almost 90% of funds that closed in the first half secured more capital than they had targeted. (Private Equity News)
Goldman Sachs boosted its S&P 500 target by 20%, while Berkshire Hathaway slashed its stakes in U.S. banks, paring back holdings in Wells Fargo, JPMorgan, PNC and Goldman. Meanwhile, some traders are preparing for the possibility that prolonged political uncertainty will stoke stock-market mayhem. Separately, the EU warned London it faces a longer wait for market access after Brexit, leaving UK banks and asset managers grappling with a complex patchwork of national rules. (Bloomberg, Financial Times, Wall Street Journal, Financial Times)
Will colleges' halt their shift to sustainable investing amid the pandemic? Colleges were weaning themselves off investments in fossil fuel companies and putting their money in greener businesses when the pandemic hit. But rather than back off changing their investment strategies as revenues become uncertain and the expenses pile on, experts predict higher education institutions will lean in. (EducationDive)
Boards—And CEOs—Should Expect Greater Scrutiny On Pay: The shareholder rejection of Electronic Arts’ compensation plan earlier this month is a not-so-subtle reminder that compensation models will be under much heavier scrutiny this year because of complications caused by the Covid-19 pandemic. With so many companies suffering losses in stock price value, filing for bankruptcy and laying-off employees, shareholders will be extremely interested to see how “pay-for-performance” models compensate key executives and board members. Corporate boards may want to re-evaluate their current compensation models to make sure that they don’t unfairly enrich executives who are responsible for long-term shareholder value. (Chief Executive)
Technology
Amazon is offering Seattle-based employees a choice of smaller offices outside the city, suggesting the Covid-19 outbreak and a new local employers tax have pushed the e-commerce giant to consider alternatives to its hometown. (Bloomberg)
Remote work is reshaping San Francisco, as tech workers flee and rents fall. By giving their employees the freedom to work from anywhere, Bay Area tech companies appear to have touched off an exodus with employees asking, “Why do we even want to be here?” Meanwhile, the age of presenteeism — the fear of leaving your desk — is over, according to the boss of one of Britain’s biggest accountancy firms. PwC’s chairman said that the shift to working from home caused by Covid-19 had “bashed away presenteeism for ever.” (Wall Street Journal, The Times)
TikTok’s uncertain future gives advertisers pause. (The Information)
Smart Links
Private equity firms in wealth management space face stay-or-go decision. (Forbes)
Greycroft proves some VCs didn’t slow down during the pandemic. Here’s why they didn’t. (Crunchbase)
Mexican president volunteers to try Russian coronavirus vaccine. (Reuters)
6 ways to professionalize your Zoom appearance. (Chief Executive)
Yale’s saliva-based COVID-19 test used by NBA receives FDA emergency use authorization (Yale News)
Coronavirus crisis fuels interest in vertical farming. (Financial Times)
Online calculator can predict your stroke risk. (Science Daily)