The World
The U.S. current account deficit soared to its highest level in nearly 12 years in 2Q20 as the pandemic weighed on the exports of goods and services, jumping 52.9% to $170.5 billion — the highest level since 3Q08. Meanwhile, the U.S. outlined up to $14 billion in new aid for farmers, while the White House will announce $11.6 billion in aid for Puerto Rico, three years after Hurricane Maria. (Reuters-1, Reuters-2, Fox Business)
The share of Americans who say they would get vaccinated for the coronavirus has declined sharply: 51% of U.S. adults now say they would definitely or probably get a vaccine if it were available today; 49% say they definitely or probably would not get vaccinated. Intent to get a vaccine has fallen from 72% in May, a 21 percentage point drop. Meanwhile, health and science experts say President Trump’s continued swipes at the government’s own experts are undermining public trust in an eventual vaccine — as emails reveal that recent C.D.C. testing guidance was published against scientists’ objections. Further, rich nations accounting for just 13% of the world’s population have bought more than half the future supply of vaccines. (Pew Research Center, Washington Post, New York Times, Oxfam)
New fear grips Europe as coronavirus cases top 30 million worldwide, and UK scientific advisers propose a second national lockdown. Meanwhile, Florida will reopen bars and restaurants after Gov. DeSantis said that Covid-19 is under control, and TX Gov. Abbott loosened restrictions, as restaurants, retail stores and office buildings will now operate at 75% capacity. In NYC, however, schools will not fully reopen on Monday as planned, as Mayor de Blasio agreed to another delay — and declined to guarantee the school start would not be delayed again. Meanwhile, 1 in 3 teachers nationally are considering an exit or early retirement due to coronavirus. (BBC News, Financial Times, PoliticoFlorida, Texas Tribune, Politico, EducationDive)
China is increasingly worried that President Trump will try to provoke a confrontation — perhaps through military action — to boost his reelection chances. Meanwhile, Taiwan scrambled fighter jets as 18 Chinese aircraft buzzed the island, crossing the sensitive midline of the Taiwan Strait, in response to a senior U.S. official’s visit, as China said it will increase the number of troops it provides for United Nations peacekeeping missions. Elsewhere, Thailand is preparing to block more than 2,200 websites that have "illegal" content ahead of weekend rallies by the student-led pro-democracy movement. (Washington Post, Reuters, South China Morning News, Nikkei Asian Review)
Five additional countries are considering entering into the peace deal between the U.S., Israel, the UAE and Bahrain, White House chief of staff Mark Meadows said. Meadows declined to identify what countries would join the deal, which aims to isolate Iran from Gulf countries and Israel, though he added that three of the countries are in the region and two are outside the region. (Wall Street Journal)
Sen. Elizabeth Warren sent a withering, 11-page letter to the Business Roundtable, charging CEOs with fixating on profits despite their do-gooder pledge — violating the pledge they made in August 2019 to embrace a new mission, focused less on maximizing profits for investors and more on promoting the well-being of their communities. Meanwhile, the U.S. Chamber of Commerce is poised to endorse nearly two dozen freshmen House Democrats for reelection, triggering a revolt within the right-leaning organization and drawing fierce pushback from the group’s powerful GOP donors. (Finance 202, Politico)
The U.S. rollback of major environmental policies could pump the equivalent of 1.8 billion additional metric tons of carbon dioxide into the atmosphere by 2035. That’s a little more than Russia’s total annual fossil-fuel emissions, or more than half the European Union’s in recent years. (MIT Technology Review, Rhodium Group)
Goldman Sachs sent some traders home from its Manhattan headquarters after at least one employee tested positive for Covid-19. The quarantine was imposed on a select group directly exposed to the infected worker at the firm’s downtown office. The bank is moving forward with plans to start bringing back staffers across most divisions, telling some to prepare for week-in, week-out rotational shifts starting in October. (Bloomberg)
Economy
Private equity employment totaled 10.5 million people in 2018, adding jobs five times faster than European average. In fact, all stages of private equity created jobs at a higher rate than the European average, ranging from 5% for buyouts to 16% growth for venture capital. (Private Equity Wire)
Hot new pandemic job title: “Head of remote work.” Companies are hiring executives to lead the virtual work experience, carving out new jobs for executives to act as advocates for virtual workers and think more broadly about a lasting remote future. Meanwhile, KPMG reports that nearly 70% of large company CEOs plan to reduce their office space. A Partnership for New York City survey of CEOs of NYC-based companies revealed that 25% intend to reduce their footprint in the city by 20% or more, while 16% have plans to relocate from the city entirely. In Los Angeles County, 2Q20 office leasing fell to its lowest point since the Great Recession, with transactions at 60% to 70% below normal. (Washington Post, VentureBeat, Los Angeles Times)
Health insurance company Oscar has hired banks for a 2021 IPO. The company was co-founded in 2012 by Joshua Kushner and Mario Schlosser and has raised around $1.5 billion in venture capital, including from Kushner's Thrive Capital, Alphabet and Founders Fund. (Axios)
Millions are house-rich, but cash-poor. Wall Street is ready as having plenty of home equity but reduced means to keep making payments could prompt many to sell while prices are high and exit homeownership with a cash cushion, landlords are ready. (Wall Street Journal)
Technology
The U.S. said it would bar the Chinese-owned mobile apps WeChat and TikTok from U.S. app stores as of Sunday, as President Trump is expected to decide on TikTok’s fate in the U.S. in the next 24-36 hours. If approved, the new TikTok will be 20% owned by Oracle, and Walmart is expected to get a minority stake and a board seat as well. It also will have a board of directors that is approved by the U.S. government, and made up of U.S. citizens. Among those whom TikTok has talked to about the job: Kevin Systrom, a founder and former chief executive of Instagram. (CNBC, Protocol, Wall Street Journal, Bloomberg, New York Times)
U.S. internet advertising is forecast to contract 3.4% this year. Video advertising will be flat, while subscription video will see massive growth. (Protocol)
Facebook is curbing internal debate around divisive political and social topics, after a spate of disputes and criticism that has fueled discord among staffers. Google also is tightening rules on internal message boards, as the “new world creates urgency.” (Wall Street Journal, CNBC, Fox Business)
In a company meeting, Spotify CEO Daniel Ek defended keeping transphobic content from hugely popular podcaster Joe Rogan on the audio platform, who earlier this year signed an exclusive licensing deal with the company likely worth tens of millions of dollars. (Vice)
Smart Links
Census reveals no progress in closing gender pay gap. (CNBC)
Best Colleges 2021: Explore the full WSJ/THE college ranking list. (WSJ/Times Higher Education College Rankings)
Even Fidelity’s $230 billion star manager has Robinhood anxiety. (Bloomberg)
Slow 5G rollout a risk to Europe’s supply chains, warn industrialists. (Financial Times)
Can an employer require you to get a Covid-19 vaccine? (Wall Street Journal)
New Year's Eve celebrations canceled in London. (The Telegraph)