The World
A gulf is opening between Main Street and Washington: The Senate's failure to pass Republicans' slimmed-down relief bill dims prospects for any new federal help before the election, as nearly 30 million people remain on some sort of unemployment aid. Meanwhile, fresh UK data suggest early gains from lifting lockdowns are already exhausted, adding to evidence that the world economy could take many months, if not years, to heal. However, Goldman now sees a 35% jump in Q3 GDP, much higher than the rest of Wall Street. (Finance 202, Wall Street Journal, CNBC)
Western Europe surpassed the U.S. in new daily Covid-19 infections, re-emerging as a global hot spot. The UK government's latest R number is between 1 and 1.2, which means the epidemic is growing, as more than a million Birmingham residents (Britain’s second biggest city) face local lockdown restrictions. In the U.S., the CDC said that dining out is one of the riskiest possible activities. In China, pharmaceutical companies have injected hundreds of thousands with experimental vaccines outside of clinical trials, despite dangers. Meanwhile, a new analysis of UCLA medical records suggests the coronavirus may have reached LA even before China announced its outbreak. (Bloomberg, BBC News, The Times, The Hill, Wall Street Journal, Los Angeles Times)
U.S. diplomats in China will face new restrictions as Beijing retaliates against Washington’s decision to limit Chinese diplomats’ movement in America. Meanwhile, a new U.S. report finds that China could potentially “weaponize” its Belt and Road Initiative because of its dual capability for commercial and military use. Separately, India and China agreed to "quickly disengage" from their Himalayan standoff. (South China Morning Post-1, South China Morning Post, BBC News)
The UK struck its first major post-Brexit trade pact, signing a deal with Japan that aims to boost trade by about £15bn. Meanwhile, Boris Johnson faces a revolt by up to 30 Tory MPs over plans that would break international law and allow him to renege on parts of his Brexit deal, as the EU stepped up planning for a “no-deal” Brexit. (BBC News, The Times, Reuters)
Moscow wants to send investigators to Germany in the Alexei Navalny case, as reports reveal the Novichok nerve agent used to poison the Kremlin critic Alexei Navalny, who is in intensive care in a Berlin hospital, was ‘harder’ than previous forms. (Reuters-1, Reuters-2)
Oregon fires have forced hundreds of thousands to flee under evacuation orders as deaths rise, with at least 20 people dead in California, Oregon and Washington. Portland declared a state of emergency. WA Governor Jay Inslee: “We have to think of it as a climate fire.” (The Guardian, New York Times, Portland.gov)
North Dakota is hurting: Spiking cases and falling oil prices deliver dual blow, as the energy-dependent state sees the fastest U.S. growth in cases per capita. Meanwhile, the Bismarck Public Schools superintendent is recommending that elementary students return to classroom full time beginning Sept. 29, as the Morton County Commission (which sits astride Bismarck) unanimously voted down a mask mandate. (Washington Post, Bismarck Tribune-1, Bismarck Tribune-2)
A new Harvard Law School’s Criminal Justice Policy Program report shows that Black and Latinx people are overrepresented in Massachusetts’ criminal justice system and that they receive longer sentences than their white counterparts when convicted. The analysis was the result of a request by the chief justice of the state Supreme Judicial Court for an in-depth look at the problem. (Harvard Gazette)
Six in seven Americans think there is at least a fair amount of political bias in news coverage, and over half say the same of the news source they rely on most. Yet 69% say they are more concerned about bias in the news other people consume than its presence in their own news (29%). (Gallup)
Economy
JPMorgan Chase told sales and trading senior employees that they and their teams must return to the office by Sept. 21. Employees with child-care issues and medical conditions that make them more vulnerable to coronavirus complications can continue working from home. Simultaneously, American Express extended its work-from-home policy through June 30 of next year. Meanwhile, just 14% of workers say they trust their CEOs and senior managers to safely lead them back to work. (Wall Street Journal, American Express, CNBC)
Goldman Sachs is planning to take full ownership of its Chinese securities joint venture and has appointed a new chair to lead the company, the latest foreign financial institution to take advantage of China’s market opening policies. (Caixin Global)
Whole Foods CEO John Mackey says many won’t go back to food-shopping in person. (Wall Street Journal)
Fixed mortgage rates plunged to a new historical low: The 30-year fixed-rate average, the most popular mortgage product, sank to 2.86 percent with an average 0.8 point. (Washington Post)
Technology
The shift to remote work has buoyed the valuations of several startups making productivity tools. The latest is Roam Research, which has raised $9 million at a valuation of $200 million, or about 25 times higher than the median valuation for seed rounds. Meanwhile, even as internet stocks have soared, shares in European internet providers have tumbled: The Stoxx Europe 600 telecom sector is down 12% in dollar terms, twice the fall of the wider index. (The Information, Wall Street Journal)
Peloton crushed estimates, posting its first-ever quarterly profit as sales surged 172%. It expects strong demand to continue into 2021. (CNBC, Wall Street Journal)
Facebook unveiled a new product called Facebook Campus, which appears to be a throwback to the first days of Facebook, when a person had to have a college email address and attend a select group of universities to be able to join. It’s currently available only to students at 30 U.S. universities and requires a college email address to register. (MIT Technology Review)
Vibration device makes homes 'smart' by tracking appliances: To boost efficiency in typical households - where people forget to take wet clothes out of washing machines, retrieve hot food from microwaves and turn off dripping faucets - researchers have developed a single device that can track 17 types of appliances using vibrations. (Cornell University)
Toyota creates $800M fund to back mobility, AI companies. (Crunchbase)
Smart Links
Remote IPO roadshows are here to stay: NASDAQ CEO. (The Information)
Why 2020 is the year of the SPAC. (Crunchbase)
The coming tech Cold War with China: Beijing is already counteringWashington’s policy. (Foreign Affairs)
Inside TikTok's killer algorithm. (Axios)
Study: Empty middle seats make flying safer during Covid-19. (MIT Sloan)
Trump’s lead over Biden on the economy appears vulnerable. (Washington Post)