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The World
European allies had hoped Joe Biden’s election would bolster NATO’s relevance after Donald Trump’s acrimonious years. Washington’s messy withdrawal from Afghanistan is prompting a rethink. After the fall of Kabul, EU defence and security officials have been critical of the U.S. decision to send home its 2,500 troops, saying it has weakened Nato and raised questions about Europe’s security dependence on Washington. Their reaction marks a bitter end to the alliance’s longest-running mission, which involved 10,000 personnel from 36 countries. Armin Laschet, Germany’s conservative candidate to succeed chancellor Angela Merkel, called the troop withdrawal “the greatest debacle that Nato has experienced since its foundation.” (Financial Times)
The G7 will hold a leaders' virtual meeting next week to discuss a "common strategy and approach" to the Taliban's takeover of Afghanistan.President Biden and U.K. Prime Minister Boris Johnson spoke about "the need for continued close coordination among allies and democratic partners on Afghanistan policy.” (Axios)
From the ashes of Afghanistan, a 'Biden Doctrine' emerges: When President Biden told the world that he did not regret withdrawing from Afghanistan, he supplied his rationale and laid out the guiding principles of his foreign policy: No fighting indefinitely in a conflict not in America's national interest. The narrow U.S. focus on national interest has put Taiwan and Japan on edge. (Nikkei Asian Review)
The fall of Kabul sends big players US, China, Russia into diplomatic flurry over Afghan future. China says its ready to work with the U.S. to ensure a ‘soft landing’ in Afghanistan, but says Washington would need to dial back the pressure on its strategic rival. Concerns about Afghan projects and terrorism spilling over to Xinjiang may see Beijing pursue a stronger relationship with the Taliban. (South China Morning Post)
Boris Johnson will bring in 20,000 Afghan refugees in recognition of the “debt of gratitude” Britain owes the country now under Taliban rule. The prime minister is setting up a dedicated scheme for those fleeing their homes, which will give them a safe and legal route to Britain. (The Times)
Taliban co-founder and de facto leader Abdul Ghani Baradar arrived in the country for the first time in more than a decade, returning to the group’s birthplace in the southern city of Kandahar just days after his fighters swept to power across the country. (Washington Post)
Most Americans support mandating masks in schools and vaccinations to return to the workplace, and they oppose states' efforts to ban such moves. But, the survey finds the Republican base going against the grain so disproportionately that it helps explain the defiant postures of many red-state governors. It also showed regional differences, with Midwesterners the most critical of mandates. “This is why we’re seeing so much conflict,” said Cliff Young, president of Ipsos U.S. Public Affairs. (Axios/Ipsos Coronavirus Index)
The survey also shows a very subtle shift in personal behaviors. There is not a significant bunkering effect, or closing of the economy, in the wake of the Delta variant’s spread, but slightly fewer report visiting friends or going out to eat. More now report wearing a mask, at least sometimes, when they leave their homes, compared to earlier in the summer. (Ipsos)
Texas Gov. Greg Abbott tests positive for Covid: The governor spoke Monday night at a GOP event in Collin County, later tweeting photos of him addressing a maskless crowd. Abbott, who is fully vaccinated, is not experiencing any symptoms and is isolating at the Governor's Mansion, spokesperson Mark Miner said in a statement. He is getting Regeneron's monoclonal antibody treatment. (Texas Tribune)
Texas requested five mortuary trailers from the federal government in anticipation of an influx of dead bodies. The mortuary trailers from FEMA will be stationed in San Antonio and sent around the state at the request of local officials. (NBC News)
Apple tells staff it will increase Covid-19 testing for corporate and retail employees and pauses relaunching classes at Apple Stores this month in some regions. (Bloomberg)
TSA extends transportation mask mandate through Jan. 18, while U.S. National Parks require masks “regardless of vaccination status.” (Axios, Bloomberg)
The New Zealand dollar tumbled after the discovery of a single coronavirus case sparked a three-day nationwide lockdown. (Financial Times)
The origin story of Covid-19 remains a mystery mired in contentious geopolitical debate. But a research paper that languished in publishing limbo for a year and a half contains meticulously collected data and photographic evidence supporting scientists’ initial hypothesis—that the outbreak stemmed from infected wild animals—which prevailed until speculation that SARS-CoV-2 escaped from a nearby lab gained traction. (Bloomberg BusinessWeek, Scientific Reports)
Haitian officials raised the death toll from a deadly weekend earthquake by more than 500 after Tropical Storm Grace forced a temporary halt to search and rescue efforts, a delay that fed growing anger and frustration among thousands who were left homeless. The Civil Protection Agency raised the death toll to 1,941 and the number of injured to 9,900, many of whom have had to wait for medical help lying outside in wilting heat. (Associated Press)
An extra month off and $80 monthly stipends and 30-day days of additional leave are part of a series of sweeteners that local governments have unveiled as China kicks off the legislative process to allow married couples to have a third child in a drive to curb a precipitous decline in births. (Nikkei Asian Review)
Hundreds of French firefighters battled to contain a raging wildfire near the Mediterranean resort of Saint-Tropez, with thousands of residents and holidaymakers forced to evacuate. Roughly 900 firefighters were using high-pressure hoses, aircraft and helicopters in an attempt to control the flames. (Agence France-Presse)
Economy
Pandemic spending habits are dying out: Spending at U.S. retailers fell sharply in July, amid cooling purchases of goods and signs of some pullback in consumer demand as U.S. Covid-19 cases tied to the Delta variant rose. Retail sales—a measure of purchases at stores, at restaurants and online—fell 1.1% last month compared with June. Excluding autos—a category where supply-chain issues have limited available inventory—sales declined 0.4%. Tuesday’s report suggested Americans continued to shift spending toward services in July. Sales dropped across several categories, primarily autos—which was down 3.9%—but also clothing, sporting goods and furniture. (Wall Street Journal, Axios)
Amazon has eclipsed Walmart to become the world’s largest retail seller outside China, according to corporate and industry data, a milestone in the shift from brick-and-mortar to online shopping that has changed how people buy everything. Propelled in part by surging demand during the pandemic, people spent more than $610 billion on Amazon over the 12 months ending in June. Walmart posted sales of $566 billion for the 12 months ending in July. (New York Times)
Hundreds of workers at Nabisco have gone on strike, citing concerns about the "outsourcing of jobs to Mexico," and demands of contract concessions from parent company Mondelēz. The strike began with a work stoppage and 24-hour picket lines at a location in Portland, OR, before spreading to Aurora, CO, and Richmond, VA. (Axios)
For Chinese entrepreneurs in an increasing number of sectors, the currency they choose to raise from venture capitalists is a growing point of consideration. There are early signs that the preference for renminbi, long dominant in politically sensitive sectors, such as defense, is now expanding. So far in August there have been 23 renminbi fundraisings and no dollar deals for internet start-ups. (Financial Times)
Container ships are stacking up again off Southern California’s jammed ports, as a flood of imports and logjams in domestic logistics networks hit operations at the biggest U.S. gateway for seaborne trade. A crush of advance orders from U.S. manufacturers and retailers is contributing to the bottlenecks. 37 container ships were anchored off the adjacent ports of Los Angeles and Long Beach, the highest number since February, when 40 ships waited there. (Wall Street Journal)
In Texas’s growing tech capital, companies are rejecting hybrid work schedules — but not necessarily for the reasons you’d think. Just 13% of senior managers in Austin favor a mix of office and remote work, the lowest among 28 U.S. cities surveyed. It’s actually a sign that many firms have chosen one extreme or the other instead of a hybrid model: They’ve either gone fully remote, or they prefer a full-time return to office to life. (Bloomberg)
The San Francisco exodus is over already. According to data from the US Postal Service, the number of people moving out of the Bay Area is back to pre-pandemic levels. (Financial Times)
Technology
FTC Chair Lina Khan’s decisions are already rippling through the business community. And while Khan is absent on the conference circuit, she’s often the main topic of conversation. Just this week at the Technology Policy Institute’s annual Aspen Forum in the Colorado ski town—antitrust lawyers love conferences in swanky locales—an hour-long panel was dedicated almost exclusively to the radical direction Khan and her allies are taking on antitrust. When asked for his views on the new chair, her fellow FTC commissioner, Republican Noah Phillips, expressed concern that Khan is making the merger review process less efficient and fair for companies. (The Information)
China will ban its internet platforms from a wide array of behavior deemed to harm market competition, as Beijing’s crackdown on the sector intensifies. The State Administration for Market Regulation, China’s antitrust watchdog, released draft rules that banned unfair competition among internet companies and could come into force this year. Shares in Chinese internet and ecommerce groups JD[dot]com, Alibaba and Tencent closed down. (Financial Times)
Afghanistan’s all-girls robotics team is trying to escape the country and make it to Canada. According to human rights lawyer Kimberley Motley, the robotics team is appealing to Prime Minister Justin Trudeau because they competed in a robotics competition in Canada in 2018 and won the highest honour in their category. Trudeau met the girls at the time, which Motley said was “life-changing” for them. (Vice)
A CGI replica of Nvidia’s CEO delivered his keynote and no one knew. The company revealed that parts of a keynote speech made by the CEO were actually a computer-generated animation, and not real video of Jensen Huang. (Input Magazine)
Smart Links
Women’s gains push majority of S&P 500 boards into the 30% club. (Bloomberg)
Fed Chair Powell says it’s unclear what the Covid-19 surge means for the economy. (Wall Street Journal)
CES 2022 to require proof of vaccination against COVID-19. (Cnet)
1 in 7 residents of the D.C. area moved during the pandemic. (Washington Post)
Why venture investment in cryptosecurity is up 10x this year. (Crunchbase)
Verily makes its first major acquisition as it looks to transform clinical trials. (STAT News)
Americans set to spend $487 billion on tech in 2021. (Statista)