The World
Senate Republicans plan next week to propose sweeping liability protections for businesses, schools, hospitals, charities, government agencies and front-line medical workers trying to navigate the coronavirus pandemic. The plan would bar employees and patients who became infected at work or injured during treatment from suing employers or health care providers except in cases of “gross negligence or intentional misconduct.” (New York Times)
The U.S. reached a daily record of 75,600 new cases, including a suburban surge: Orange, San Bernardino and Riverside counties are reporting worse coronavirus case rates per capita than L.A. County. In the UK, Prime Minister Boris Johnson announced a plan to get Britain back to normal “in time for Christmas.”(New York Times, Los Angeles Times, The Times)
Can China’s second quarter GDP figures be trusted? China painted a rosy economic outlook after reporting a stronger-than-expected 3.2% growth rate for 2Q20, but some analysts have said the sum of all official data for the period does not reconcile with the growth figure. For instance, China’s statistics agency said about 67.4% of industrial enterprises were back to 80% of normal production levels as of May 27. A U.S. scholar said the level of operation “clashed with output results”, as government data showed industrial output fell only 1.3% in 1H20, with output in June alone rising 4.8% from a year ago. (South China Morning Post)
A U.S. military E-8C surveillance aircraft was spotted near Guangdong province for the third time this week, as the U.S. Navy reported two of its aircraft carrier strike groups had conducted dual exercises in the South China Sea. (South China Morning Post)
The EU is embarking on a ‘privacy trade war’ with America after its top court ruled that the current way data is transferred across the Atlantic does not protect the rights of EU citizens. Meanwhile, 'the stakes couldn't be higher,' as the EU recovery plan summit gets under way. (The Times, Reuters)
British Airways will retire its entire fleet of Boeing 747 jumbo jets, as Virgin Atlantic will resume passenger flights next week. (The Telegraph, The Telegraph)
U.S. homebuilding surged 17.3% to a seasonally adjusted annual rate of 1.186 million units last month — the largest since Oct. 2016 — as the coronavirus crisis sparks a flight to the suburbs and rural areas. May data was revised up to a 1.011 million-unit pace from the previously reported 974,000. (Reuters)
Economy
The UK government is on course to sell £533bn of debt this year, more than double the previous record at the height of the financial crisis. Meanwhile, UK could be heading for another credit crunch, as banks predict that loans will become scarcer, costlier and riskier over the next few months, according to a Bank of England survey. (Financial Times, Daily Mail)
Global debt hit a new record, both in absolute terms and as a percentage of the GDP. Meanwhile, 2020 has been a banner year for debt collectors. (IIF, Axios)
While contraction and layoffs may be inescapable for most businesses during the pandemic, too few CFOs have explored tax credits & incentives as an avenue to capital. (Chief Executive)
RBS vanishes after 300 years and a historic folly: A bank that traces its roots to the Acts of Union between England and Scotland more than 300 years ago will give up its corporate name next week. Royal Bank of Scotland is to become Natwest Group, adopting the brand of the English bank that it bought two decades ago. The irony will be rich for anyone who has chronicled RBS’s fortunes. (The Times)
To accelerate impact investing, financial organizations need to consider foundations’ roles differently: To date, foundations involved in impact investing have mostly played an inside game, trying to convince private financial actors that impact investing can fit into their ways of working, or at least that financial tools can be repurposed to achieve social goals. Much of their work involves banging social impact into a financial frame: Here’s social data that will sit alongside financial underwriting; here’s why climate change will affect the long-term returns to your portfolio. We understand what you need. We have something you can use. At the same time, philanthropy creates a starting point from which to critique finance: Here’s why you need to take social and environmental issues into account; here are ways to focus on social utility rather than profit. We think the system needs to change. Foundations may also play other parts—agitation and organizing, policy advocacy, building radically alternative investment channels—that look more like the roles embraced by critical outsiders. (Stanford Social Innovation Review)
Technology
Why did Netflix’ stock price plunge? It expects to add only 2.5 million subscribers in 3Q20. However, Wall Street analysts shrugged off the subscriber forecast, with at least 10 brokerages raising price targets. Meanwhile, U.S. video game spending in the US reached its highest point since 2010, with 1H20 sales reaching $6.6 billion. (New York Times, Reuters, The Verge)
What’s ailing an Amazon health venture: Two years ago, Amazon, Berkshire Hathaway and JPMorgan Chase banded together to use technology to improve health care for their employees while cutting costs. But the company that resulted, Haven, has seen layoffs, a canceled project and the departure of its high-profile leader. (The Information)
China's Luxshare buys iPhone plant to strengthen Apple ties. The Foxconn rival to acquire facility from smaller assembler Wistron for $472m. (Nikkei Asian Review)
These McClatchy financials are a window into how much damage Covid-19 has done to the newspaper business. When McClatchy declared bankruptcy in February, its debts were crushing, but its operating numbers weren’t so bad. But the coronavirus ripped away more than a quarter of its revenue in just a few weeks. (Neiman Lab)
Formula One struck a deal with Zoom to create a virtual substitute for the corporate hospitality business. Formula 1 viewers will get a better flavor of the race-day experience with a virtual alternative to the ‘Paddock Club’ — The real-world Paddock Club offers guests a vantage point over the team garages with a view of the start and finish line and into the pit lane. (Financial Times, Grand Prix 24/7)
Smart Links
CIOs reprioritize tech spending in an era of nonstop lockdowns. (Wall Street Journal)
Tim Cook’s careful but profitable dance with the White House. (Fast Company)
The UK-based recruitment company Hays cut 1,000 jobs and warned its profit this year would almost halve. (Financial Times)
Companies are increasingly adding Chief Diversity Officer positions. (Wall Street Journal)
The future of shopping: No-touch browsing and Postmates delivery. (Los Angeles Times)