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The World
It has been 40 years since President Ronald Reagan declared in his first inaugural address that “government is not the solution to our problems, government is the problem.” The infrastructure plan that President Biden described — $2 trillion in federal investment in poured concrete, electric car chargers, artificial intelligence and social engineering — is a bet that government can do colossal things that the private sector cannot. Urged on by the left wing of his party, and reminded by historians that Presidents Franklin D. Roosevelt and Lyndon B. Johnson went big, Mr. Biden is using the framework of rebuilding crumbling highways and bridges to try to reshape the American economy by focusing more on long-range problems like climate change and inequality that have been caught up in the culture wars. (New York Times)
Biden unveils 'once-in-a generation' infrastructure investment plan: The bulk of the spending — to be paid for by corporate tax hikes — would be done over eight years, with improvements to things like transportation, clean energy, schools and the job market. The plan also seeks to address longstanding racial and socioeconomic inequities, in part by advancing access to economic opportunities for low-income communities. Here's a look at some key spending areas: (Bloomberg)
$621 billion investment in transportation infrastructure and resilience, including $115 billion to modernize 20,000 miles of roadways and repair the 10,000 worst bridges, $85 billion to improve public transit systems, and $174 billion to incentivize electric vehicle adoption and to build a network of 500,000 EV chargers by 2030. It also calls for spending $20 billion to reconnect neighborhoods divided by highways.
$400 billion to expand access to in-home or community-based care for aging relatives and people with disabilities.
$300 billion to revitalize American manufacturers and support the support small business growth, and another $100 billion for workforce development.
$213 billion to build, maintain and retrofit more than 2 million affordable homes, including $40 billion to improve the public housing system.
$111 billion to replace the nation’s lead pipes, and upgrade aging water and sewage systems to ensure clean drinking water for communities.
$100 billion to upgrade and build new public schools, and another $25 billion to expand child care facilities.
$100 billion to bridge the digital divide and bring high-speed broadband to every family.
$100 billion to modernize power infrastructure with a goal of achieving 100% carbon-free electricity by 2035.
$50 billion to improve infrastructure resilience to climate-related disasters, including safeguarding essential services for the most vulnerable communities and restoring land and water resources.
The carried interest loophole is beginning to look immortal. Biden’s $2 trillion infrastructure plan does not include any changes to individual income taxes, including on capital gains. A senior administration official: "Capital gains is not addressed here. The reason for that is that the focus of this plan is on corporate tax reform and reforming the corporate tax system.” (Axios)
Corporate America speaks on Georgia's voting restrictions: Almost a week after a bill that curbs voting access in Georgia became law — and nearly one month after it passed the state's House — a slew of corporations have come out against voter suppression. In an open letter, over 70 Black executives demanded that corporate America take a stand against legislation that makes it harder to vote. Meanwhile, The chief executives of two of Georgia’s biggest corporations — Delta and Coca-Cola — sharply criticized the state’s voting restrictions, reversing weeks of milder statements. (Axios, New York Times, Atlanta Journal Constitution)
Here is an ongoing list of the major corporations that have spoken out against Georgia's voting restrictions. (Axios)
The Pfizer-BioNTech vaccine is extremely effective in young adolescents, perhaps even more so than in adults — a finding that could ease the return to normalcy for millions of American families. No symptomatic infections were found among children aged 12 to 15 who received the vaccine in a recent clinical trial, the drug makers said; the children produced strong antibody responses and experienced no serious side effects. Vaccinations could begin before the start of the next academic year for middle school and high school students, and for elementary school children not long after. (New York Times)
Bolthouse Farms CEO Jeff Dunn announced a bold strategy to encourage the 1,800 at his California plant to get the Covid vaccine: he’s offering each of them a $500 bonus. (CNBC)
The UN envoy on Myanmar implored the Security Council to take action in the Asian nation’s escalating crisis, warning of the risk of civil war and an imminent “bloodbath” as the junta violently represses pro-democracy protests. She said she remained open for dialogue with the junta but added: “If we wait only for when they are ready to talk, the ground situation will only worsen. A bloodbath is imminent.” (Agence France Presse)
Beijing rebuffed criticism from the W.H.O. and foreign governments, saying China had shared coronavirus data openly and cooperated with an international probe. (Washington Post)
Russia has begun mobilizing troops along its border with Ukraine, presenting a fresh challenge at the Biden administration and threatening to upend a cease-fire between Ukraine and pro-Russian fighters. Meanwhile, jailed opposition leader Alexei Navalny declared a hunger strike after unsuccessful attempts to get medical care for severe back pain. (Wall Street Journal, Washington Post)
As the Biden administration hustles to contain the fallout from two massive cyberattacks that hit in the span of four months, the fledgling agency created to fend off such assaults is so overwhelmed by the deluge that many insiders doubt its ability to counter another major breach. Staffers are worn out, money is tight and the Cybersecurity and Infrastructure Security Agency is struggling to keep up with multiple competing crises, including the recently uncovered intrusions blamed on Russia and China, according to interviews with 15 people familiar with CISA’s work. Among them are four current employees and five former agency officials. (Politico)
A year into the pandemic, advanced cancer diagnoses are rising. Research from radiation oncologists and molecular pathologists add to evidence showing that 73% of doctors noticed missed cancer screenings among their patient populations, as patients avoided visits to minimize Covid-19 infection risk. (Healthcare Dive, American Society for Radiation Oncology)
Economy
Global dealmaking activity had its strongest start to the year in four decades, fuelled by a flurry of US acquisitions and Spac mergers. Deals worth $1.3tn were agreed in the three months to March 30, more than any first quarter since at least 1980 and topping even the heady levels of the dotcom boom at the turn of the millennium. (Financial Times)
Japan big manufacturer sentiment regains pre-COVID level: Business sentiment among Japan's large manufacturers improved for a third straight quarter in March despite the coronavirus pandemic, global semiconductor shortages and lingering geopolitical tensions, the Bank of Japan's latest Tankan survey showed. (Nikkei Asian Review)
The Great Return (cont.):
Amazon expects most U.S. corporate office workers back in the office by early fall. It’s the latest update since Amazon said employees could continue to do their jobs from home through June 30. By telling workers in a memo that it plans to “return to an office-centric” culture, Amazon is signaling that in-person exchanges will be the way of the future at the company. (GeekWire)
Google told workers that it expects some U.S. employees to be able to return to the office in the coming month. Google is encouraging workers to get vaccinated but is not requiring it. Employees won’t be required to come into the office until at least September. Google is expanding some pandemic-related benefits. (Axios)
Wells Fargo plans to start bringing employees back to the office after Labor Day, citing the increasing availability of vaccines. The bank, which has been telling employees each month that they should keep working from home for another month, now hopes that operations will begin to return to normal after Sept. 6. (Wall Street Journal)
A group of religious and socially conscious investors and other funds are ramping up pressure on Western companies over alleged human rights abuses in China’s Xinjiang region, highlighting the challenges for brands trying to maintain their business ties amid rising tensions. The group of more than 50 investors said it is in the process of contacting more than 40 companies, including H&M, VF Corp, Hugo Boss and Zara-owner Inditex. (Reuters)
Technology
Tech Loses Its Halo: Trust in tech — including companies specializing in AI, VR, 5G and the internet of things — fell all around the world last year, the Edelman Trust Barometer found in a massive survey of 31,000 people in 27 countries. All-time lows were hit in 17 of 27 countries, including the U.S., U.K., France, China, Japan, Thailand, Brazil and Mexico. Tech is still ahead of other sectors of the business world, but represents a significant decline from prior years and comes as trust in corporations overall has risen. In the U.S., trust in the tech sector dropped more precipitously, falling nine points, to an all-time low of 57. (Axios, Edelman Trust Barometer)
Facebook announced a slew of new changes coming to its app on iOS and Android, making it easier for users to turn off the algorithmically-ranked News Feed, and new tools for controlling who can comment on posts. Other change include offering users more context as to why they may be seeing a specific post. For content labeled "Suggested for You," users can now learn what factors triggered Facebook's algorithm to suggest the post to you. (MacRumors, Facebook)
Apple is adding two new voices to Siri’s English offerings, and eliminating the default “female voice” selection in the latest beta version of iOS. This means that every person setting up Siri will choose a voice for themselves and it will no longer default to the voice assistant being female. The beta version should be live now and available to program participants. (TechCrunch)
Oracle Corp announced it will migrate companies’ most complicated computer programs to its cloud for free as it tries to catch a new wave of potential cloud-computing clients. A laggard in the cloud industry, Oracle is counting on its free support to persuade organizations that have not made a switch - or done so only partially - to opt for a move to its infrastructure. (Reuters)
Paul Simon has sold his entire songwriting catalog — including classics like “Bridge Over Troubled Water,” “The Sound of Silence” and “Still Crazy After All These Years” — to Sony Music Publishing, in the latest blockbuster transaction in the music publishing business. (New York Times)
One of the signs that Covid-19’s hold over Americans’ lives is easing is that pet owners are now spending a little less time with their animals. As a result, two of the most popular apps for booking dog walkers or pet sitters say they’re seeing the highest demand since the pandemic started a year ago. (Bloomberg)
Chinese officials celebrate social-media attacks on H&M. (Wall Street Journal)
Biotech boomed in 2020, with the median IPO size topping $450 million (34.5% year-over-year increase), while private round step-up multiples hit their highest mark since 2014. (Axios)
Smart Links
Comcast weighs pulling Universal’s movies from HBO Max, Netflix. (Bloomberg)
Consumers spent $32B on apps in 1Q21, the biggest quarter on record. (TechCrunch)
Switching from cars to bikes cuts commuting emissions by 67%. (City Lab)
Gas stations are the hot new real estate commodity — buyer interest is up 167%. (Fast Company)
NFTs, explained (by the MIT Computer Science & Artificial Intelligence Lab). (MIT)
The nation’s hottest housing market? Surprise — it’s Fresno, CA. (Los Angeles Times)
Facebook ad prices signal digital ad rebound is far from over. (The Information)