The World
The Business Roundtable’s 2Q20 report indicates a majority of members expect the coronavirus business impact lingering until at least the end of 2021, while 27% expect the recovery to stretch beyond next year. The Outlook Survey − a composite index of chief executive plans for capital spending and hiring over the next six months − fell to 34.3, its lowest reading since 2Q09. (CNBC)
Europeans' trust in US as world leader has collapsed: In almost every country surveyed, a majority of people said their perception of the U.S. had deteriorated since the outbreak. Negative attitudes of the US were most marked in Denmark (71%) Portugal (70%), France (68%), Germany (65%) and Spain (64%). In France, 46% and in Germany 42% said their view of the US had worsened “a lot.” (The Guardian)
The Supreme Court ordered changes to the Consumer Financial Protection Board, ruling the agency’s structure was unconstitutional because its director held too much unchecked power. The Court also struck down a Louisiana abortion law, as Chief Justice John G. Roberts Jr. said respect for precedent compelled him to vote with the majority. (Wall Street Journal, New York Times)
The U.S. and China are exchanging regulatory punches that threaten a wide range of industries including technology, energy and air travel — and make companies nervous the trading landscape could shift out from under them. Meanwhile, China will put visa restrictions on U.S individuals over Hong Kong, saying that any American efforts to undermine introduction of national security law for the city will not succeed. (Bloomberg, South China Morning Post)
India has banned 59, mostly Chinese, mobile apps including Bytedance’s TikTok, Alibaba’s UC Browser and Tencent’s WeChat citing security concerns and calling the apps “prejudicial to sovereignty and integrity of India, defence of India, security of state and public order.” (Reuters)
Britain is heading for a Brexit 'customs chaos,' as the UK’s customs consultative committee warns of looming chaos at ports after the “amateurish” handling of a new IT system. Meanwhile, UK’s industry body says manufacturing will not recover until 2022. (The Telegraph, Daily Mail)
French voters turned to established political parties in Sunday’s second round of local elections, punishing candidates from President Emmanuel Macron’s four-year-old party. (Financial Times)
Russian state exit polls show 76% so far back reforms that could allow President Vladimir Putin to extend his rule until 2036. The nationwide vote began on June 25 and is being held over seven days. (Reuters)
Economy & Finance
Singapore launched a new corporate structure to lure multibillion-dollar hedge funds, private equity firms and family offices from Asia, Europe and the U.S. amid growing concerns about the status of Hong Kong. (Financial Times)
CEO pay is plunging in 2020: 38% of private company CEOs report having chosen to take a salary cut to help their company navigate the Covid crisis. Of those CEOs who have chosen to cut their 2020 base salaries 58% reduced it or are planning to reduce it by 10 to 30 percent, with 22% agreeing to a cut of 50 percent or more. (Chief Executive)
‘Large demand gap’ looms for U.S. government bonds: U.S. Treasury issuances could exceed $4.7tn this year, as the Fed has sharply scaled back the pace of its asset purchases. At this rate, the central bank will snap up just a quarter of the gross long-term Treasury supply in the second half of the year, JPMorgan calculates. (Financial Times)
Pending home sales spiked a stunning 44.3% in May compared with April, the largest one-month jump in the history of the survey, which dates back to 2001. It beat expectations of a 15% gain. (CNBC)
BP agreed to sell its global petrochemicals business for $5 billion, the first multibillion oil industry deal since the pandemic began. This means that BP hit its $15 billion asset sales goal a year ahead of schedule. (Axios)
China sees its dominance in strategic rare-earth minerals as leverage that can be used against the West—including in trade disputes, according to a new report by U.S.-based researchers. They add that China cultivated its rare-earth industry through years of state subsidies, and is prepared to use it as a geopolitical weapon. (Wall Street Journal)
Technology
Starbucks said it will pause advertising on “all social media platforms” and promises discussions on how to stop the spread of hate speech. Meanwhile, the Facebook advertising boycott campaign organizers are taking the battle global. (CNBC, Reuters)
Amazon will pay $500 million in one-time bonuses to front-line workers. Meanwhile, at least 2,000 Amazon warehouse workers in Germany have gone on strike over coronavirus safety concerns. (Reuters, Financial Times)
IPO contender Snowflake — the subscription software company that offers a type of cloud database known as a data warehouse — is on pace for $400 million in 2020 revenue. (The Information)
MIT’s Computer Science and Artificial Intelligence Laboratory, in collaboration with Ava Robotics and the Greater Boston Food Bank, designed a new robotic system that powerfully disinfects surfaces and neutralizes aerosolized forms of the coronavirus. (MIT News)
Smart Links
Study: Quantitative easing helped consumers substantially during the last big economic downturn. (MIT)
Travel bans take shine off banks’ premium rewards credit cards. (Wall Street Journal)
West Fargo, ND to hire consultants for anti-discrimination plan. (Consulting.us)
Fox Sports ending $1.2 billion U.S. Open golf deal. (NY Post)
The long, unhappy history of working from home. (New York Times)
Gilead’s remdesivir treatment to cost $3,120 per U.S. patient with private insurance (CNBC)
Radioactivity hike seen in northern Europe; source unknown. (Associated Press)