The World
Weekly initial claims for jobless benefits fell by 130,000 to a seasonally adjusted 881,000. The latest data is in line with a general trend of improvement since spring, but also reflects a new methodology to adjust for seasonal factors. Under the new method, updated seasonally adjusted data should be more in line with the unadjusted data. Unadjusted claims have most weeks been lower than the more widely reported adjusted figure since early March. Meanwhile, stocks are plunging a day after record highs as Mohamed El-Erian said the U.S. economic recovery has been held back because Americans lack trust with one another over the coronavirus. Separately, U.S. farmers are in line for a record $37bn in handouts this year. (Wall Street Journal, New York Times, CNBC, Financial Times)
Vaccine nationalism is winning, as governments have failed to unite in the fight against covid-19. Rather than consolidate efforts, many countries are striking out on their own. And America is not alone in going it alone. Following the U.S. example, many others countries are pursuing unilateral plans, focused on producing a vaccine for priority use or buying up potential vaccines from other nations. Meanwhile, the CDC told states to prep for vaccine distribution as soon as late October. (Washington Post, Reuters)
Saudi Aramco is reviewing plans to expand at home and abroad in the face of sharply lower oil prices and a heavy dividend burden it assumed as part of its recent IPO. It is: Reviewing a $6.6 billion plan to add petrochemical output at its Motiva refinery in TX; reviewing a big natural-gas project with Sempra Energy; pausing investments in refineries in China, India and Pakistan; delaying domestic plans to boost crude production capacity. (Wall Street Journal)
"Unequivocal proof” exists that Russian opposition politician Alexei Navalny was poisoned with a Novichok nerve agent, Germany has said. Chancellor Angela Merkel said he was a victim of attempted murder and the world would look to Russia for answers. Meanwhile, Russian state TV briefly broke a taboo on using Navalny’s name, as the Kremlin told the West not to rush to judge it on Navalny as sanctions talk starts. (BBC News, The Times, Reuters)
The UK said efforts to stop migrant crossings are failing, as “close to all” of those on small boats arriving in Britain were claiming asylum when they arrived: “unprecedented weather patterns” in July and August led to a a surge in arrivals. (The Times)
Japan added India and Bangladesh to its 'China exit' subsidy destinations, as the Industry ministry launched the second round of a program to diversify supply chains. Meanwhile, China warned Asean members against backing ‘troublemaker’ U.S. in region. The deputy foreign minister for Asian affairs took aim at Washington’s partners in the Indo-Pacific, describing the Quad alliance — the U.S., Japan, Australia and India — as ‘an anti-China front line.’ Separately, China officials are running for cover as President Xi Jinping prepares another brutal purge. The Rival Youth League has sent coded messages to prepare for the coming storm. (Nikkei Asian Review-1, South China Morning Post, Nikkei Asian Review-2)
In the West, it’s widely believed that neither the Chinese government nor Chinese people care about privacy. US tech giants wield this supposed indifference to argue that onerous privacy laws would put them at a competitive disadvantage to Chinese firms. In reality, this picture of Chinese attitudes to privacy is out of date. Over the last few years the Chinese government, seeking to strengthen consumers’ trust and participation in the digital economy, has begun to implement privacy protections that in many respects resemble those in America and Europe today. This paradox has become a defining feature of China’s emerging data privacy regime. It raises a question: Can a system endure with strong protections for consumer privacy, but almost none against government snooping? (MIT Technology Review)
Economy
Robinhood faces a civil fraud investigation over its early failure to fully disclose its practice of selling clients’ orders to high-speed trading firms. (Wall Street Journal)
Committing to diversity and inclusion isn’t just ethical. It gives companies a competitive edge. HBS Professor James Heskett explores why some corporations struggle to recruit and retain diverse talent and how it puts them at a disadvantage. (Harvard Business School)
45% of women business leaders say it’s difficult for women to speak up in virtual meetings. (CNBC/Catalyst)
Investors piled into shares of some Black-owned businesses in June amid widespread racial-justice protests and new-found interest in the Juneteenth holiday marking the emancipation of the last slaves in the U.S. The gains in some cases proved fleeting, showing the difficulty of using the stock-market to express social views. (Wall Street Journal)
Technology
Facebook will stop accepting new political ads a week before the US presidential election. Candidates and political action committees will continue to be able to buy ads that have already received at least one impression by Oct. 27. They can also choose to target those existing ads at different groups or adjust their level of spending. (The Verge)
Bill Ackman approached Airbnb about a merger with his blank-check company, but the home-rental site rebuffed the billionaire investor and said it prefers a traditional initial public offering. Airbnb hasn’t completely ruled out a merger with Ackman’s Pershing Square Tontine Holdings, although no discussions are currently underway. (Bloomberg)
Stripe has become one of Silicon Valley’s most prominent startups, valued at $36 billion thanks to its technology powering online purchases for clients like Target and Amazon. In the background, its founders have also been building another business: venture capital. (The Information)
Bumble eyes IPO at $6B+ valuation: The Austin-based dating app geared for women to make the first move is eyeing an offering early next year. (Crunchbase)
Smart Links
How Covid-19 forced Google to change how it predicts traffic in Google Map. (Google)
TikTok launches marketing program for advertisers. (Reuters)
Hollywood has a new mogul in town: Steven A. Cohen. (Los Angeles Times)
California’s 2020 budget solution: A startup equity tax. (The Information)
Brazil announces equal pay on national men’s, women’s soccer teams. (France 24)