The World
New unemployment claims fell last week, but layoffs continue to come at an extraordinarily high level. The Federal Reserve pledged to set a higher bar to raise interest rates and signaled it expects to hold rates near zero for at least three more years. The Fed projects a swifter recovery than it forecast in June, but Chair Powell warned a rebound could buckle without additional congressional relief spending — as Senate Republicans shrugged off President Trump’s call for a larger relief measure. (New York Times, Wall Street Journal, Finance 202, Politico)
Americans' satisfaction with the state of the nation is holding near historical lows, and Americans remain mixed on current and prospective economic conditions: 31% rate current conditions as "excellent" or "good," while 34% evaluate them as "poor," while 40% say the economy is "getting better" and 56% say it is "getting worse." (Gallup)
Sharp partisan differences now exist on foreign policy and views of American exceptionalism: In 2012, 85% of Republicans and 66% of Democrats said the U.S. was the greatest nation. Today, 80% of Republicans still say that, but among Democrats, it has fallen to 35%. Further, Democrats and Republicans have drawn wholly different lessons from the global pandemic and the role international cooperation plays in combating it. While Americans broadly support continued U.S. engagement with the rest of the world, Republicans and Democrats differ sharply over how that engagement should take place and what the nation’s foreign policy priorities should be. (Washington Post, Chicago Council on Global Affairs)
U.S. Defense Secretary Mark Esper called for increased funding for Navy shipbuilding. The shift comes amid an accelerating naval arms race in the Pacific, with China investing to keep the powerful U.S. carrier air wing out of striking distance, and China making steady progress on what is believed to be its third aircraft carrier. Simultaneously, the U.S. is set to sell Taiwan $7 billion in arms. Meanwhile, investments between the U.S. and China dropped to a nine-year low $10.9 billion in 1H20 — and U.S. venture investment in China hit its lowest level in four years. Separately, Beijing’s concerns loom over Nvidia’s $40bn Arm deal. (Defense News, CSIS, Wall Street Journal, Rhodium Group, Financial Times)
Saudi Arabia likely has enough mineable uranium ore reserves to pave the way for the domestic production of nuclear fuel, according to confidential documents seen by the Guardian. Details are contained in reports prepared for the kingdom by Chinese geologists, who have been scrambling to help Riyadh map its uranium reserves as part of their nuclear energy cooperation agreement. (The Guardian)
CDC Director Redfield believes a covid vaccine won’t be available to the general public until late 2Q21 or 3Q21. Meanwhile, more than 20 states either don’t release or have incomplete data on the rapid antigen tests now considered key to containing the coronavirus, meaning untold numbers of cases go uncounted. In Texas, documents reveal that the share of positive cases as it reopened was higher than originally reported. Meanwhile, the W.H.O. warned a “very serious situation” is unfolding in Europe, as cases rise dramatically. In the northeast of England, millions of people have been banned from socializing amid a 167% rise in positive cases, while Austria capped private indoor gatherings at 10. In Asia, the Red Cross warned that covid is worsening discrimination, where 1 in 2 blame foreigners and rule-breakers. Separately, Russia will sell 100 million doses of its controversial vaccine to India. (Wall Street Journal, Kaiser Health News, Texas Tribune, CNBC, The Telegraph, Red Cross, Yahoo News)
Turkish-backed militias fighting the Assad regime in Syria are committing war crimes against Kurdish civilians, including rape and torture, the UN said, finding “reasonable grounds to believe” that forces funded and trained by Ankara have committed pillage, hostage-taking, rape and torture, possibly with the knowledge of Turkish forces. (The Times)
The world has failed to meet a single target to stem the destruction of wildlife and life-sustaining ecosystems in the last decade. From tackling pollution to protecting coral reefs, the international community did not fully achieve any of the 20 Aichi biodiversity targets agreed in Japan in 2010 to slow the loss of the natural world. It is the second consecutive decade that governments have failed to meet targets. (The Guardian, UN Global Biodiversity Outlook 5)
Economy
Office space: Offices are sitting half-empty, while stores and factories are getting back to normal occupancy, as business leaders predict a permanent shift in working and an evolution for cities. Meanwhile, Deutsche Bank told U.S. employees they don’t have to return to the office until July 2021. Separately, 83% of millennials currently living near a major tech hub, such as Silicon Valley or New York, plan to or are considering a move to a more affordable city because of COVID. (Wall Street Journal-1, Financial Times, Wall Street Journal-2, Links Report)
The uninsured rate spiked 9.2% in 2019 before the pandemic devastated the U.S. economy. Almost 30 million Americans didn't have health insurance coverage last year, up about 1 million from 2018. (HealthcareDive)
The New York Yankees will raise nearly $1 billion in a new bond issue to firm up their financial position as baseball attendance is projected to suffer through at least next season. The New York City Industrial Development Authority will issue $923 million in PILOT Revenue Refunding bonds, which will refinance the remaining balance on the municipal bonds used to construct the new Yankee Stadium. The bonds are rated ‘BBB+’ by Fitch Ratings, which reflects the financial strength and fan enthusiasm for the Yankees as well as the very low likelihood of default. (Sportico)
The Europe and U.S. bond yield collapse is driving investors back into battered emerging markets, fueling gains despite high-profile defaults and concerns about fragile economies. Individuals and institutions have put money into EM bond funds for 10 straight weeks, the longest stretch since late 2017. (Wall Street Journal)
Thwarted by falling demand and cheaper alternatives, U.S. coal output and consumption are now on pace to decline at faster annual rates, on average, under President Trump than under President Obama. Meanwhile, Natural-gas prices have surged in Europe following a plunge in the spring, offering relief to U.S. exporters. (Wall Street Journal-1, Wall Street Journal-2)
Technology
56% of Americans — and 59% of those surveyed globally — think that tech companies aren’t regulated enough — and the percentage of people who think tech needs to do more to address its issues has gone up more than 20% just since last year. In fact, Gen Z trusts tech the least. (Protocol, FleishmanHillard)
CVS Health struck a deal with Apple to give temporary free access for the health giant's clients, customers and employees to Apple's new subscription fitness service. Beneficiaries enrolled in Aetna's commercial or CVS Caremark's prescription plans will be offered a free one-year subscription to the feature, called Apple Fitness+. (HealthcareDive)
In a letter to the SEC, dozens of affordable housing groups and community organizations that have long accused Airbnb of exacerbating housing shortages are documenting their grievances just as the short-term rental giant prepares to go public. (The Information)
Smart Links
Lessons from the world’s largest fully remote company. (Fast Company)
Ransomware to blame for nearly half the cyber-insurance claims filed in early 2020. (Cyberscoop)
How this analytics director leads her team with transparency. (MIT Sloan)
How Covid-19 can damage the brain. (Nature)
The Apple Watch is the new starter phone. (OneZero)
Convention viewership lowest in two decades. (Gallup)