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The World
The latest Consumer Price Index data showed that prices rose 4.2% over last year, the highest gains since September 2008, stoking new inflation fears. Energy prices rose the most by 25%, followed by used cars and trucks at 21%. Apparel prices grew by nearly 2% after seeing two months of consecutive declines. Full service meal prices have gone up by 3.7% — an increase from last month's yearly growth of 3.2%. Prices of flour and prepared flour mixes have gone down month-over-month by nearly 2%, while the price of grocery baked goods like doughnuts and bread have gone up over 2%. (Axios)
U.S. equities dropped after the inflation report, with the S&P 500 closing 2.2% lower, its biggest one-day drop since February. The Nasdaq lost about 2.7%. A sell-off in US government bonds also accelerated, sending the yield on the benchmark 10-year bond 0.06 percentage points higher to 1.68%. (Financial Times)
The European Commission sharply raised its economic forecasts for the coming two years, with the accelerating vaccination campaign helping the eurozone recover from the pandemic. The euro area will grow by 4.3% this year and 4.4% in 2022, Brussels said, compared with previous forecasts for 3.8% growth in both years. (Financial Times)
An explosive new round of hostilities between Israel and Palestinian militants in Gaza broadened with frightening speed on two fronts, while waves of mob violence between Jews and Arabs spread across Israeli cities as rockets and missiles streaked overhead. The Israeli Army and Hamas continued to exchange fire throughout the day. Israel claimed the assassinations of senior militants and pounded both military and residential areas across Gaza. An Israeli military official said three infantry brigades were “preparing for a worst-case scenario,” confirming that a ground invasion could follow the bombardment from the air. (New York Times)
Israel experienced its worst night of internal Jewish-Arab chaos for many years, as scenes of unrest, rioting, hate rallies and growing social chaos spread throughout numerous cities, some of which were once seen as symbols of coexistence. Violent confrontations erupted in Lod, Acre, Jerusalem, Haifa, Bat Yam, Tiberias and other locations. (Times of Israel)
The hostilities appear to have achieved their political ends for both Hamas and Netanyahu. Hamas has displayed its ability to strike deep into Israeli territory. And Netanyahu, who was on the cusp of losing his premiership, has reasserted himself as “Mr Security,” his nickname in Israeli media. (Financial Times)
United, American, and Delta Airlines all started canceling flights to Israel. (New York Times)
The U.S. accused the Chinese government of turning Xinjiang into an “open-air prison” by expanding surveillance in the northwestern region in an attempt to crack down on freedom of movement for Muslim Uyghurs. Daniel Nadel, a senior state department official, said China had widened its campaign against the Uyghurs beyond those interred in detention camps, as the US published a religious freedom report that sharply criticised Beijing’s treatment of the ethnic minority. (Financial Times)
Chinese President Xi Jinping has been targeting former and sitting executives in the country's military-industrial complex, including those involved in the country's nuclear program and the development of aircraft carriers, under his anti-corruption campaign. (Nikkei Asian Review)
Mysterious episodes that caused brain injuries in spies, diplomats, soldiers and other U.S. personnel overseas starting five years ago now number more than 130 people, far more than previously known. The new total adds cases from Europe and elsewhere in Asia and reflects efforts by the administration to more thoroughly review other incidents amid concern over a spate of them in recent months. (New York Times)
U.K. Prime Minister Boris Johnson offered an apology for the British army’s killing a half-century ago of innocent Belfast Catholics, but says his government remains determined to end “the cycle of reinvestigations.” (Politico EU)
At least 90 more bodies of suspected Covid-19 victims have washed up in rivers in India — including 70 corpses floating in Ganges River — as the virus continues to spread into poor rural areas and the country recorded its highest daily death toll so far. (The Guardian)
England’s coronavirus infections halved since March. (Reuters)
Why are most Hongkongers choosing not to get vaccinated for Covid-19? With less than 15% receiving at least one jab, medical and media experts say Hong Kong must overhaul its communication strategy to dispel misconceptions and fears. (South China Morning Post)
57% of Americans believe proof of vaccines should be required for sporting events. (Axios-Ipsos survey)
Economy
Fortune released its “World’s 50 Greatest Leaders”: Some were already extraordinary achievers in business, government, philanthropy, athletics, and the arts. Others were ordinary citizens. In truly unprecedented times, each stepped up to make the world better, and inspired others to do the same. New Zealand Prime Minister Jacinda Ardern is the new No.1—the first time a woman has ever held the top slot solo. (Fortune)
Black women start businesses at higher rates than almost anyone else—17% of Black women are in the process of running new businesses, while just 15% of white men and 10% of white women are. But only 3% of Black women are running "mature businesses." New research examines where and why that drop-off occurs. (Harvard Business Review, The Broadsheet)
Coinbase banned all salary and equity negotiations for its future hiring and instead plans to offer identical pay to every employee in the same position and location in an effort to eliminate the lingering effects of early-career pay disparities. (Protocol)
Pret sandwich sales show office workers are staying at home. If sandwich sales are any guide, London’s bankers, corporate lawyers and asset managers are taking their time returning to offices even as the pandemic eases across the U.K. (Bloomberg)
Technology
Tesla has stopped accepting bitcoin as payment for its cars out of concern that it will contribute to greater consumption of fossil fuels. Tesla had only just started accepting bitcoin in late March. Musk also said that Tesla will no longer sell any more of the $1.5 billion stash of bitcoin it purchased earlier this year. (The Verge)
One of the most curious questions arising from the ongoing Epic Games v. Apple antitrust trial is why both sides are so intent on establishing their own definitions of basic tech and game industry terms. Does a phone qualify as a game console, or is it a computer, or both? But perhaps the most perplexing line of inquiry has been what is and what is not a video game. Apple and Epic both have strategic incentives for their respective interpretations of the game and tech industries to win out in the courtroom. (Protocol)
Digital ad market boom drives top-line growth of 20%-50% at niche websites: Quarterly results from companies as varied as IAC, owner of websites such as Investopedia and Verywell; J2 Global, owner of IGN and Mashable; The New York Times Co.; Vice Media and even Verizon’s Yahoo-AOL group show an acceleration in growth. (The Information)
People are more persuaded by the actual messages contained in social media posts than they are by how many others viewed the posts. Researchers found that when people watched YouTube videos either for or against e-cigarette use, their level of persuasion wasn't directly affected by whether the video said it was viewed by more than a million people versus by fewer than 20. (Ohio State University)
Last year the invitation-only app called Clubhouse, which lets users join impromptu audio conversations with strangers, launched in the App Store. Despite having only a few thousand users the company raised $12m at a $100m valuation. Downloads soared, and just 8 months later the company raised again, this time at a $1bn valuation. Then, just 3 months later, the company raised again, this time at a $4bn valuation. Few companies have had such a meteoric rise in such a short amount of time — but the latest download data suggests that enthusiasm for Clubhouse might already be waning. (Chartr)
Smart Links
MIT’s color-changing paint could make your iPhone look different every day. (Fast Company)
Handshake, a job search platform for college students, valued at $1.5 billion after new funding round. (Forbes)
Buy now, pay later changed retail. Health care and rent are next. (Vox)
How people in cities get a health boost from nature. (Stanford University)
Twitter keeps poaching the most diverse top talent. (Protocol)
Tin prices soar on electronics demand, shipping trouble. (Wall Street Journal)
Where apartment rents are falling fastest in the U.S. (Statista)
Live Event
Today, 1 pm ET: 2021 State of the West Symposium: Energy & Water in the West. (Stanford University)