The World
U.S. households boosted retail spending 1.2% in July — which rose for the third straight month — sending sales above pre-pandemic levels in a sign the economy continues to heal. However, economists have started to identify a “K-shaped” recovery, as the pandemic causes especially large gaps between rich and poor, between White and minority households, and between big and small businesses. Meanwhile, U.S. states are facing billions in shortfalls, as with tax revenues plummeting, the long-term financial damage may be greater than that of the last recession. An updated Oxford Economics Recovery Index indicates the economy may remain stalled. In Europe, the labor market suffered a record loss of 5m jobs and 2.6% reduction in employment in 2Q20. (Wall Street Journal, Washington Post, New York Times, Reuters, Financial Times)
Freed Belarus detainees have given details of beatings during days in custody that Amnesty International said suggested "widespread torture,"as the main opposition figure, Svetlana Tikhanovskaya, called for an end to violence against protesters, while urging more rallies this weekend. (BBC News)
China will expand a pilot program for its digital currency to include a number of large cities, advancing a pioneering initiative by a major central bank to launch an electronic payment system. Meanwhile, U.S. companies whose fortunes are linked to China — including Apple, Ford, Walmart, and Walt Disney — are pushing back against government plans to restrict business transactions involving the WeChat app from Tencent, saying it could undermine their competitiveness in the world’s second-biggest economy. In Canada, Members of Parliament were warned the new Hong Kong legislation jeopardizes 300,000 Canadians who live there, and China might prevent some from leaving via a new cadre of “secret police.” (Wall Street Journal, Wall Street Journal, Globe & Mail)
Britons are racing to return from the Netherlands and France by 04:00 BST on Saturday, when new rules — announced just yesterday — come into force requiring travelers to quarantine for 14 days. Flights to the UK from France sold out within minutes, as prices for the last seats leapt to almost £800 this morning. Before the announcement, tickets from Nice and Paris were less than £80. Eurotunnel trains are fully booked until Saturday morning. Meanwhile, France declared Paris and the Marseille region to be high-risk zones, granting local authorities powers to impose new restrictions. (BBC News, The Times, New York Times)
More than one-in-five Texans who are tested for coronavirus are positive, the worst statewide rate in the country. But the number of people getting tests has plummeted in the last two weeks. Meanwhile, the White House task force warned that Georgia continues to see “widespread and expanding community viral spread” and the state’s current policies aren’t enough to curtail COVID-19. In Europe, the surge in cases is linked to young people, as those aged 20 to 39 in France, Germany, Netherlands and Spain account for up to 40% of new infections. (Politico, Atlanta Journal-Constitution, The Guardian)
The NCAA canceled most fall championships, bringing much of collegiate athletics to a halt in 2020, except what is left of topflight football, which could disrupt some $1 Billion in TV ads. The West Coast Conference, Big Sky also postponed fall athletics. (Politico, New York Times, OPB.org)
Economy
Telemedicine and remote monitoring are the hottest 2020 digital health startups in the CB Insights annual list, as the pandemic led to a rapid adoption of telehealth. U.S.-based startups dominated the list, accounting for 77% of the companies from 18 different countries. Another leading category: Clinical intelligence and enablement. (HealthcareDive, CB Insights)
Airbnb’s top executive in charge of safety and fraud prevention is leaving the company. Richardson had overseen Airbnb’s efforts to combat the parties and other high-profile incidents, but the number of complaints about parties at Airbnb and rivals including Vrbo grew 239% during the three-month period spanning May, June and July from a year earlier. Meanwhile, Airbnb will now restrict the ability of people under 25 in Britain, France and Spain from renting entire homes. (The Information, The Guardian)
Impossible Foods has raised $200 million more for its meat replacements, as the new round values the company at a Whopper-sized $4 billion valuation. (TechCrunch)
Private equity firms are increasingly investing in insurance businesses, which boast permanent capital, drive growth, and make solid investments, according to PitchBook. (Institutional Investor)
The importance of a CEO’s “Origin Story.” Through 92 interviews, the authors provide insight into how leaders tell their stories, why they matter, and how those stories differ across gender. The analysis outlines questions to consider when it comes to leadership origins, how to draw on one’s origins to become a more adaptable leader, and how to cultivate different ‘types’ of leaders within the organization. Conclusion: Leadership origin stories can shape one’s style as a leader. By understanding their story, and experimenting with different ways of telling it, leaders can become more adaptive, better leader. (Harvard Business Review)
Technology
Epic Games sued Apple following the removal of the iOS version of Fortnite from the App Store. The complaint seeks to establish Apple’s App Store as a monopoly, and seeks injunctive relief to “allow fair competition” in mobile app distribution. Epic effectively provoked Apple’s removal of Fortnite when it implemented its own payment processing system into the game’s iOS version, an apparent violation of App Store guidelines. Hours later, Google Play also removed Fortnite, earning its own lawsuit. Epic immediately launched its marketing campaign, airing a short mocking Apple’s “1984” ad that put a Fortnite-style twist on iconic imagery from the famous commercial. If Apple and Epic Games can’t compromise a trial and an ultimate verdict could have an impact on the future of apps and Big Tech. (The Verge, Axios)
ByteDance is engaging in early discussions with Reliance for backing TikTok’s business in India. TikTok has been banned in India since June 29 over security and privacy concerns. India was TikTok’s largest market outside of China with over 200 million users. (TechCrunch)
A Harvard University student with a tech startup is trying to bring a little social life back to campuses as they continue remote operations. Bryan Lee, a senior, spent the last five months building a videoconferencing system called Congregate, which recreates the moment of walking into a room and choosing which group of people to sit with. (EdSurge)
What CEOs Better Know About Technology: 1) The technology that enables their internal processes; 2) data and the basics of analytics; 3) the technology that powers the products and services they sell; 4) the emerging technologies that enable innovation; 5) the technology of their competitors; 6) the real cost/benefit of technology; 7) how to embrace technology cache. (Forbes)
Smart Links
Apple is raising $5.5 billion in a bond offering. (Bloomberg)
Death of a Smart City: Alphabet bet big in Toronto. Toronto didn’t play along. (OneZero)
Fast food consumption is on the rise among US children and adolescents. (New Scientist)
Citigroup paid Revlon lenders nearly $900 million by mistake, and they’d like their money back. (Wall Street Journal)
New study supports the life-extending effects of a daily walk. (Harvard Medical School)