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The World
The Bank of England announced another dose of bond purchases, becoming the first major central bank in Europe to boost stimulus measures in response to a second wave of coronavirus infections. The European Central Bank has signaled that it is also readying more stimulus for as soon as next month. In the U.S., unemployment claims held nearly steady last week at 751,000, while Wall Street is drawing comfort from a divided Congress. (Wall Street Journal, Financial Times, Wall Street Journal-2, Reuters)
French President Macron said Europe must rethink its open-border Schengen area, including a more robust protection of the zone’s external frontiers, after Islamist attacks in France and Austria. Meanwhile, Austria’s chancellor joined Macron in declaring a common European front in a “war on Islamism” after four people were killed in a terror attack in central Vienna. Sebastian Kurz said he would seek to build an alliance against political Islam at the next summit of EU leaders this month as the Austrian security services investigate the attacker’s suspected ties to extremists in other countries, including Switzerland. (Reuters, The Times)
China has barred non-Chinese travelers from Britain, France, Belgium, the Philippines and India, as coronavirus cases surge. Australia Prime Minister Scott Morrison said possible vaccines may be available in the first quarter of 2021. England officially entered its second lockdown, while starting tomorrow Paris will ban delivery and takeaway services for prepared food and alcohol from 10 pm to 6 am. In the U.S., 18 states reported record numbers of hospitalizations, as medical providers have started posting a new item on patients’ bills: Surprise “Covid” and “PPE” fees. San Francisco residents may have to quarantine if they leave Bay Area over holidays, and the world’s largest mink producer, Denmark, plans to cull more than 15 million of the animals, due to fears that a Covid-19 mutation moving from mink to humans could jeopardise future vaccines. (Reuters, The Guardian, Sydney Morning Herald, Reuters, Washington Post, USA Today, New York Times, Economist/YouGov)
Iran foreign minister Mohammad Javad Zarif said that the U.S. no longer controls world, and the era of "Western hegemony had ended." Meanwhile, Kosovo’s president resigned as war crimes indictments against him are confirmed. Hashim Thaci is alleged to have committed ‘crimes against humanity’ during 1998-99 war against Serbian rule. Ethiopia approached civil war as its Nobel Peace Prize-winning prime minister ordered the military to confront the country's well-armed Tigray regional government. (Jerusalem Post, Financial Times, Associated Press)
Oregon’s National Guard was deployed in downtown Portland, and more than 600 were arrested during anti-Trump march on I-94 in Minneapolis. In Arizona, Trump supporters protested outside a Phoenix building where crucial votes were being counted. (The Oregonian, Star Tribune, New York Times)
About one-third of voters said they were primarily motivated by the economy, including 6 in 10 of the voters who supported President Trump. In Florida, about 8 in 10 who named the economy as the top issue voted for Trump. Meanwhile, only about 2 in 10 voters said the pandemic was the most important issue — about the same number cited racial inequality. Meanwhile, Britons' approval of U.S. leadership hit a new low, as the 15% of Britons who approve represents a record low for any U.S. administration since 2006. (Washington Post, Gallup)
Other exit polling findings: (Morning Consult)
Nearly all Biden voters say controlling COVID-19 was ‘very important’ to their vote. About 3 in 5 Trump voters said the same.
Over 7 in 10 Biden voters say economic opportunities are less fairly distributed than 4 years ago.
Biden voters are 40 points more likely than Trump backers to say health coverage was vital to their vote.
Biden voters more likely than Trump’s backers to prioritize racial equality, see systemic Racism in the United States
74% of Biden voters say addressing climate change was a very important factor in their choice; 19% of Trump voters said the same.
While overall undergraduate enrollment fell 4%, private four-year, for-profit colleges had a 9.3% annual gain in 2020, and graduate enrollment was up 2.7%. Meanwhile, the pandemic has caused deep, “horrifying” learning losses for Dallas children, and underscored the disparities among Black students: Half of all Dallas students experienced learning loss in math, and nearly a third slipped in reading. (EducationDive, Dallas News)
Economy
U.S. chief executives were already bracing for a difficult winter heading into 2021 with a pandemic that looks to get worse before it gets better, high unemployment and what many call a desperate need for more economic aid to consumers and some industries. The lack of a clear political direction in Washington, for now, makes navigating those challenges harder. (Wall Street Journal)
Rich Lesser, CEO of Boston Consulting Group: “If that is the way it turns out, I think we’ll be in for a very challenging period, where the question is: Can a Democratic administration and a Republican-led Senate solve these massive problems facing the country?” (Wall Street Journal)
JPMorgan CEO Jamie Dimon sent a memo to employees asking them to have 'patience and fortitude' until final election results. (Business Insider)
Jack Ma kicked the Anthill: Ma made one of the weightiest unforced errors in the history of global business, scuttling what was expected to be a $35 billion IPO for Chinese financial services company Ant Group. Ma recently compared Chinese banks to "pawn shops," in terms of collateral required for business borrowers, and denigrated the character and convictions of financial regulators. Now, China plans a deeper Ant crackdown with bank funding curbs and regulator plans to discourage lenders from working with Ant. Still, Axios reports the company still wants to go public, preferably before the Chinese New Year in early February, but admits that the company is reeling from its reversal of fortune. Meanwhile, as the IPO faces at least 6-month delay, Ant faces the prospect of a restructuring and valuation cuts. (Axios, Bloomberg, The Information, Financial Times)
The U.S. trade deficit narrowed in September as exports continued to recover from the global economic downturn while imports slowed and both remained well below levels from a year earlier. The U.S. posted a deficit of $63.86 billion, compared with $67.04 billion in August and $47.84 billion a year earlier. (Wall Street Journal)
Airbnb plans to make its IPO registration public next week, putting it on course for a New York stock market debut in December. (Reuters)
Technology
Apple faces a shortage of vital chips that manage power consumption in iPhones and other devices, complicating its ability to meet holiday demand. It’s unclear to what extent the bottleneck may limit iPhone availability during its crucial launch quarter, typically Apple’s busiest. The company ordered 20m older iPhones to offset 5G handset delays, while also aiming to make 2.5m MacBooks with its new in-house CPU by early 2021. (Bloomberg, Nikkei Asian Review)
Uber and Lyft had an edge in the CA Prop 22 fight: Their apps. In the weeks leading up to Election Day, the companies used their respective apps to bombard riders and drivers with messages urging them to vote for Prop 22, the ballot measure. Prop 22 cements gig workers’ status in California as independent contractors. The ballot measure, which won with 58% of the vote, exempts gig economy companies from a state law requiring them to classify their workers as employees. It also mandates that gig workers receive new benefits, such as minimum hourly earnings. Uber and Lyft shares surged on the results, more than making up for the estimated $200 million spent advocating for a ballot question that saved their business model. This helps clear the path for DoorDash's upcoming IPO. (The Verge, Axios)
The main tech ballot initiatives that passed: Proposition 22 was easily approved by California voters, meaning that gig workers for apps like Lyft, Uber, and Doordash will not become employees of those companies. Instead they will remain independent contractors. Massachusetts voters overwhelmingly said yes to Question 1, “Amend the Right to Repair Law,” which will give car owners and independent mechanics greater access to wireless vehicle data. Michigan’s Proposition 22, which requires a search warrant for electronic and data and communications, will pass with wide margins. One that didn't pass: California’s Proposition 25, which would have upheld SB10, a bill that replaced the cash bail system with criminal risk-assessment tools, will not pass by a more than 10-percentage point margin. (MIT Technology Review)
ByteDance is in talks with investors including Sequoia to raise cash in a deal that values TikTok’s parent at $180 billion, even as it seeks to avert a U.S. ban. (South China Morning Post)
The New York Times hit 7 million subscribers — more than 6 million online — as its digital revenue continued to rise in 3Q20 earnings. For the first time, the NYT brings in more revenue from online readers than print subscribers. (New York Times)
Smart Links
For entrepreneurs of color, Boston lacks access and capital. (MIT Sloan)
How Wisconsin women are navigating the 'shecession.' (Milwaukee Journal Sentinel)
UK tech giants snap up office space even as workers huddle at home. (The Times)
How Jeff Bezos is spending his $10 Billion Earth Fund. (The Atlantic)
Slump in city travel raises risk Airbnb hosts will look elsewhere. (The Information)
GameStop made a TikTok contest for employees where the prize is more hours to work. (The Verge)
The NBA season appears likely to begin on Dec. 22. (Los Angeles Times)
Ancient burial of female hunter and her weapons discovered in Peru, challenging ideas of who speared big game. (Science)