The World
The jobless rate fell to 11.1% in June as the U.S. regained 4.8 million jobs. However, other data indicate the ‘rocket ship’ economic recovery is crashing, as a surge in new coronavirus cases dampens consumer and business activity across states like FL, TX and AZ, , and consumers are closing their wallets again. New job postings on ZipRecruiter fell in June after rising sharply in May. Small business openings and employment data from Homebase show that May’s nearly 40% improvement for small business activity fell to 6% in June. Meanwhile, the gap in U.S. Black and white unemployment rates is the widest in five years. (Wall Street Journal, New York Times, Finance 202, Reuters)
The U.S. reported nearly 50,000 new coronavirus cases, the fifth single-day case record in eight days. In June, cases rose by nearly 50 percent, led by states that reopened first. Example of the challenge: Houston is being hit by an “invisible hurricane,” but residents aren’t responding as they did for Harvey. Also, McDonald’s is pausing reopening plans. (New York Times, Washington Post, Texas Monthly, Wall Street Journal)
Texas’ high unemployment rates triggered an additional seven weeks of extended benefits in the state, adding up to a potential total of 59 weeks of unemployment insurance for some Texans. (Dallas Morning News)
China told Britain it has no right to offer residency to millions of Hongkongers, warning that it could take “corresponding measures” to prevent the move, as the U.S. prepares ‘harsh’ sanctions on China over its human-rights abuses. Meanwhile, a U.S. Congressional report concludes that the U.S. ability to be an industrial competitor and long-term tech leader might be eroded by the expansion of its multinational firms into China over the past two decades. (The Times, Bloomberg, South China Morning Post)
President Putin is set to rule Russia for another 16 years after sweeping to victory: 77.9% of voters backed constitutional amendments that will allow Putin, 67, to run for two additional terms of office up to 2036. (The Times)
UK’s Boris Johnson is losing public trust after coronavirus missteps and inconsistent messaging. Just 43 percent approve of the government’s response. Meanwhile, Germany’s GDP is expected to grow by 6.9% in 3Q20. (Washington Post/YouGov, The Times)
Goldman Sachs estimates global oil demand will decline by 8% in 2020, rebound by 6% in 2021 and “fully recover” to pre-coronavirus levels by 2022. Meanwhile, Saudi Arabia threatened to ignite an oil-price war unless fellow OPEC members make up for their failure to abide by the cartel’s recent production cuts. (CNBC, Wall Street Journal)
L.A.’s City Council voted to cut police hiring, pushing the number of sworn officers well below 10,000. Previously, the NY City Council approved a $1 billion budget shift from policing to education and social services. (Los Angeles Times, New York Times)
Economy & Finance
Fed policymakers are looking at reviving a promise to keep interest rates low until certain conditions are met. June 9-10 meeting minutes show they “generally indicated support” for tying rate-setting policy to specific economic outcomes. “A number” favored leaving rates low until inflation meets or even modestly exceeds the Fed’s 2% goal. (Reuters)
Manhattan apartment sales in 2Q20 saw their biggest decline in three decades — and the worst quarter on record, falling 54%. The median sales price fell 18% to $1 million, the biggest decline in a decade. (CNBC)
Tesla outpaced estimates for second-quarter vehicle deliveries, a day after surpassing Toyota as the highest-valued automaker, while Ford sales fell 33.3% in 2Q20. (Reuters, CNBC)
The U.S. Treasury Department paid out more than $100 billion in unemployment benefits in June, the most for a single month since the pandemic started and underscoring the importance of federal relief efforts to shore up a battered job market. (Bloomberg)
Technology
Facebook CEO Mark Zuckerberg told employees he was reluctant to bow to the threats of a growing ad boycott, saying in private remarks that “my guess is that all these advertisers will be back on the platform soon enough.” Zuckerberg spoke during a video town hall meeting last Friday, according to employees who attended. In the previously unreported remarks, Zuckerberg said the boycott is more of a “reputational and a partner issue” than an economic one. (The Information)
Google said U.S. offices will remain closed until Sept. 7 at the earliest, after previously saying it would move some workers back in starting July 6. Meanwhile, Apple will close 30 additional U.S. stores, bringing the total number of U.S. reclosures to 77. (Bloomberg, CNBC)
2019 set a record for the amount of e-waste ever generated worldwide: 53.6 million metric tons of discarded phones, computers, appliances, and other gadgets — more than the combined weight of all the adults in Europe, and a 21% increase since 2014. (The Verge)
Mirror wanted to be the next iPhone. Instead, it’s selling to Lululemon. Why would the startup sell for $500 million when sales were booming in the middle of a pandemic? (Marker)
Smart Links
Car sales fall in Q2 despite discounts and deals. (MarketWatch)
Cracks are emerging in the global food supply chain. (National Bank of Canada)
John Paulson to convert hedge fund into a family office. (Bloomberg)
Demand for international travel to sink 80% this year. (South China Morning Post)
Spotify is leading Apple in more than 80 markets. (Podnews)
NASA mission discovers massive, Neptune-sized ice giant. (MIT News)