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The World
The economy grew at a record pace in 3Q20 — increasing 7.4% over the prior quarter and at a 33.1% annual rate — recovering about two-thirds of the ground it lost earlier in the pandemic. Analysts project the economy will end 2020 smaller than a year earlier, but grow in 2021. Meanwhile, U.S. states are facing their biggest cash crisis since the Great Depression, as the tax revenue drop has led to a total shortfall expected in the hundreds of billions of dollars—greater than 2019’s K-12 education budget for every state combined, or more than twice the amount spent that year on state roads and other transportation infrastructure. Houston has lost the most construction jobs in the nation. In Europe, the ECB left policy unchanged despite darkening economic outlook, as the Central Bank signals likelihood it will boost stimulus measures in December, pushing the Euro to four-week low. (Wall Street Journal, Wall Street Journal-2, Houston Chronicle, Financial Times)
Good news: Covid-19 death rates are falling as understanding of the disease improved. Meanwhile, German Chancellor Merkel and French President Macron announced month-long national lockdowns, as scientists warn of new coronavirus variant spreading across Europe. The genetic mutation that originated in Spain transmitted by returning holiday makers. Public opinion about coronavirus is more politically divided in U.S. than in other advanced economies. (New York Times, Washington Post, Financial Times, Pew Research Center)
Two new reports paint different pictures of Covid-19 danger while flying: A 187-page study by Harvard scientists concluded that air travel "is as safe as or substantially safer than the routine activities people undertake during these times.'' But an outbreak linked to a seven-hour flight to Ireland is raising renewed concerns about in-flight transmission. (USA Today, Aviation Public Health Initiative)
Three attacks by suspected Islamists have been carried out in France and at one of its consulates in Saudi Arabia, leaving at least three people dead with at least one victim beheaded at the hands of a knife-wielding man who shouted “Allahu akbar” during an attack inside a Catholic church in Nice. (The Times)
China aims to reach 'new level' of prosperity by 2035, as the party plenum ends with a call to boost 'dual circulation' strategy — a 5-year economic plan that seeks to maintain the country’s 5% growth. Meanwhile, Hong Kong’s ranking in global law and order index plunged from fifth place to 82nd, falling far below mainland China’s, putting the city’s sense of security and faith in its police force on par with the likes of Burkina Faso. In South Korea, ex-President Lee lost his appeal on a 17-year prison term. (Nikkei Asian Review, South China Morning Post, Nikkei Asian Review-2)
The U.S. vetoed Nigeria's Ngozi Okonjo-Iweala as the next WTO head. Okonjo-Iweala is a former World Bank No. 2 and twice acted as her country's finance minister. She was presented as the consensus candidate to WTO members after consultations with all members in Geneva. U.N. atomic watchdog inspectors from the U.N.’s atomic watchdog have confirmed Iran has started building an underground centrifuge assembly plant after its previous one exploded in what Tehran called a sabotage attack over the summer. At least 140 Europe-bound migrants drown off Senegal coast. (Politico Europe, Associated Press, Reuters)
Democrats scored two significant victories when the U.S. Supreme Court left in place extensions of North Carolina and Pennsylvania’s deadlines for receiving mail-in ballots. A federal judge ordered the U.S. Postal Service to reverse limitations on mail collection imposed by Postmaster General Louis DeJoy, as the agency must inform workers of the court's changes as more mail-in ballots continue to flood in. (Reuters, Politico)
Scientists describe unexpected, undesirable outcomes after editing genes in human embryos with CRISPR, a genomic editing system, in a paper published in the journal Cell. The study, the most detailed analysis to date of CRISPR in human embryos, shows that applying CRISPR to repair a blindness-causing gene early in the development of a human embryo often eliminates an entire chromosome or a large section of it. (Columbia University)
Economy
Potential homebuyers may be hitting the limit of what they can afford. Pending home sales, a measure of signed contracts on existing homes, fell 2.2% in September compared with August. (CNBC)
Private equity investors are expecting a tsunami of deals: About 61% of investors expect to spend more time closing deals over the next few months, up from 21% in April and 28% in May — the first appreciable shift since the pandemic. Meanwhile, small stocks are outpacing larger companies by the greatest amount in years, underscoring investors’ bets on Democrats gaining control in Washington and ramping up stimulus spending to support the economy. (Entrepreneur, Wall Street Journal)
Many companies recently raised billions of dollars in new debt, taking advantage of low funding costs and high investor demand. Finance chiefs used the additional capital to bolster their companies’ balance sheet, pay down credit lines or replace older debt. Most didn’t, however, use the funds to invest in their businesses. (Wall Street Journal/Columbia Business School)
UK car production fell to its lowest levels in 25 years last month. (The Times)
Take a stance or tiptoe away? Earlier this year, a flood of major U.S. companies pledged to address racial inequality and promote social justice. Companies that rushed to take a stand include household names like Home Depot, Procter & Gamble, and Coca-Cola. Another set of companies, particularly in Silicon Valley, are turning more cautious. Meanwhile, American Express said it was investing $1 billion to advance racial and gender equality. (Reuters, Reuters-2)
McKinsey’s diversity lead: Too many companies focus on hiring women, but not on keeping them. "There are many jobs available in the technology market right now. Are you a culture and place to work that's attractive enough that women want to stay?" McKinsey's Lareina Yee discusses the effects of the pandemic on women's careers, what she looks for when consulting with tech companies on their potential for growth and what she's most looking forward to in 2021. (Protocol)
How companies are winning on culture during Covid-19: Employees of Culture 500 companies give leadership high marks for communication, transparency and integrity in the first six months of the pandemic. (MIT Sloan Management Review)
Technology
The Senate Big Tech hearing yesterday was just a lot of grandstanding: Facebook, Google, and Twitter CEOs fielded questions about their content moderation practices at a Senate Commerce Committee hearing about Section 230 of the Communications Decency Act. All three CEOs expressed support for the law as expected, but emphasized different priorities. Facebook’s Mark Zuckerberg urged Congress to update the law to “make sure it is working” properly, including by requiring companies to be more transparent about what they remove. Twitter CEO Jack Dorsey focused on ways that internet firms could regain trust from the public, such as disclosing more information about the algorithms that power social feeds. The big winner may have been Google’s Sundar Puckeye(sp?), though many Senators couldn’t pronounce his name. (MIT Technology Review, The Information, Gizmodo)
Global antitrust roundup: Italy announced it's investigating Google for abuse in the advertising market, while Germany launched an investigation into Amazon's third-party marketplace. And ahead of the EU publishing its Digital Services Act, due Dec. 2, Google has reportedly launched a 60-day lobbying push. (Source Code)
Twitter’s Jack Dorsey: A Hands-Off CEO in a Time of Turmoil. The CEO’s management style, delegating most major decisions while pursuing his personal passions, faces one of its biggest tests. (Wall Street Journal)
Spotify added more subscribers in 3Q20 than expected — more than double nearest rival Apple Music — and forecast strong 4Q20 growth. Pinterest’s 3Q20 revenue jumped 58% jump YoY, largely on increased spending from brands that boycotted rivals like Facebook. (Reuters, The Information)
Airbnb IPO will be landmark for Y Combinator, too: That’s because Airbnb is one of the most high-profile companies to come out of the startup accelerator and will be one of only a handful of YC companies to go public. Meanwhile, venture firm Andreessen Horowitz has hired Anthony Albanese, the chief regulatory officer at the New York Stock Exchange, as an operating partner on its cryptocurrency team. (Crunchbase, A16Z)
Three places where data is on the ballot: How voters in California, Michigan, and Massachusetts will help shape the future of data privacy and control across the U.S. (MIT Technology Review)
Smart Links
Harvard joins MIT in backing $250 million venture fund targeting hard-sell startups. (Forbes)
Coach-owner Tapestry says women are paying more for handbags during pandemic. (CNBC)
Data show Chinese students are steering clear of the US. (Quartz)
Why Facebook has the most to lose from Biden, Democratic victories. (The Information)
Grubhub hit with lawsuit for listing restaurants without permission. (Eater)
Covid puts L.A. Dodgers’ unorthodox ownership structure to the test. (Wall Street Journal)
What the U.S. election means for India. (Washington Post)
Foreign policy experts in the U.S. have much different views about threats to the country than the general public. (Pew Research Center)