The World
At high noon, Amazon’s Jeff Bezos, Facebook’s Mark Zuckerberg, Apple’s Tim Cook and Google’s Sundar Pichai will appear via videoconference before Congress in a long-awaited showdown with the House of Representatives antitrust subcommittee. Since last June, House lawmakers have been engaged in a sweeping investigation, focusing on whether some of the most notable names in the industry have grown too big and powerful — collecting an intimidating number of documents that no tech CEO has reckoned with since Microsoft’s antitrust charges in the ‘90s. (Written testimony for Amazon, Facebook, Apple, Google.) This occurs as the number of acquisitions by the five largest companies — these four plus Microsoft — came at the fastest pace through June since 2015. While Democrats push the antitrust case, Republicans have their own set of concerns and may try to veer the conversation toward content moderation and allegations of bias against conservatives. For the CEOs, it is a chance to make the case that their success derives not from monopoly power, but from their ability to meet consumer needs. (The Information, The Verge, Wall Street Journal, Bloomberg)
China and the EU held ‘candid’ talks on economic and trade ties, including post-pandemic recovery. While Beijing was upbeat about meeting, Brussels focused on market access and reciprocity – sticking points in their investment deal negotiations. Meanwhile China’s foreign minister called on other nations to resist US and stop a new cold war, as the U.S., China and Russia lock horns over the weaponization of space. Separately, the University of Texas, whose work has contributed to some promising Covid-19 vaccine candidates, has been contacted by the FBI over allegations that the Chinese consulate in Houston had sought to obtain such research. (South China Morning Post-1, South China Morning Post-2, Nikkei Asian Review, South China Morning Post-3)
Chinese hackers infiltrated the Vatican’s computer networks in the past three months, a private monitoring group has concluded, in an apparent espionage effort before the beginning of sensitive negotiations with Beijing. The Vatican and Beijing are expected to start talks in September over control of the appointment of bishops and the status of houses of worship as part of a renewal of a provisional agreement signed in 2018 that revised the terms of the Catholic Church’s operations in China. (New York Times)
The head of Germany's public health agency said Germans had become "negligent" and the country is in “the middle of a rapidly developing pandemic." Italy extended extend until Oct. 15 its state of emergency. Chief Executive Carrie Lam said Hong Kong is on the verge of 'large-scale' outbreak. Meanwhile, Emirates has become the first airline to offer free Covid-19 insurance as it tries to get people flying again. (BBC-1, Reuters, NBC News, BBC-2)
Rite Aid deployed facial recognition systems in hundreds of U.S. stores in the hearts of New York and metro Los Angeles — largely lower-income, non-white neighborhoods, Reuters found. Among the technology the U.S. retailer used: a state-of-the-art system from a company with links to China. (Reuters)
A newly developed blood test for Alzheimer’s has diagnosed the disease as accurately as methods that are far more expensive or invasive. The test has the potential to make diagnosis simpler, more affordable and widely available. The test determined whether people with dementia had Alzheimer’s instead of another condition. And it identified signs of the degenerative, deadly disease 20 years before memory and thinking problems were expected in people with a genetic mutation that causes Alzheimer’s, according to research published in JAMA and presented at the Alzheimer’s Association International Conference. Such a test could be available for clinical use in as little as two to three years. (New York Times)
Economy
Goldman Sachs put a spotlight on the suddenly growing concern over inflation in the U.S. by issuing a bold warning that the dollar is in danger of losing its status as the world’s reserve currency. Goldman strategists cautioned that U.S. policy is triggering currency “debasement fears” that could end the dollar’s reign as the dominant force in global foreign-exchange markets. (Bloomberg)
The European Central Bank called on lenders not to pay dividends until at least January and urged them to be ‘extremely moderate’ when setting staff bonuses. Meanwhile, Barclays increased its provisions against future loan losses fourfold to £3.7 billion as it prepares for a wave of defaults this year. (Financial Times, The Times)
WeWork is shedding its youthful image in an effort to lure big corporations, pitching flexibility amid business uncertainty. In June, large companies accounted for 65% of its new customers. 2Q20 marked the first time that companies with more than 500 employees made up more than half of WeWork’s core revenue, excluding its China and India operations. (Wall Street Journal)
‘A big correction’ has hit the ad industry: The research firm Forrester predicted that U.S. ad spending would decline 25% this year and would not recover until 2023. Omnicom Group said that 2Q20 revenue slumped nearly 25% and that the decline “is expected to continue for the remainder of the year.” It laid off 6,100 employees, shed more than 1 million square feet of space, froze hiring and implemented some pay cuts. In 2020 and 2021, agencies will shed 52,000 jobs, according Forrester — and half the jobs will not return, he predicted. Last week, Wieden & Kennedy laid off 11% of its work force. Havas also laid off employees. (New York Times)
Technology
Google’s top search result? It’s Google, as queries send people to Google’s own properties 41% of the time. (The Markup)
Japanese lawmakers are looking to place restrictions on Chinese-made apps out of concern that user data could end up in the hands of the Chinese government, seeking to limit the use of video-sharing app TikTok and others. (NHK)
Density, a startup whose software and hardware lets companies meet social distancing guidelines in office buildings, has raised $51 million in a Series C round led by Kleiner Perkins. That brings Density’s total funding to more than $67 million. (The Information)
Chinese online travel giant Ctrip is in talks with potential investors about funding its delisting from Nasdaq because of rising U.S.-China tensions and the coronavirus-driven hit to its business. Meanwhile, Tencent offered $2.1 billion to buy the remainder of New York-listed search engine Sogou, allowing it to better integrate Sogou’s search technology into its apps. (Reuters, Wall Street Journal)
Smart Links
Fintechs face pressure to grow up. (Reuters)
The venture capitalists making a bet on aging consumers. (Bloomberg)
Why the move to online instruction won’t reduce college costs. (Brookings)
Purdue University shut its M.B.A. program, and more closures are expected. (Wall Street Journal)
America’s best employers for women 2020 (Forbes, Statista)