The World
U.S. retail sales increased 7.5% in June, with pickups in motor vehicle dealers, furniture, clothing and electronic stores. Gasoline spending increased 15.3%; sales at bars and restaurants jumped 20%. Online spending decreased 2.4%; grocery stores sales dropped 1.6%. Separately, business inventories declined 2.3% in May, the biggest decline since the government started tracking the series in 1992, after falling 1.4% in April and the fifth-straight monthly decline. Meanwhile, 1.3 million new unemployment claims were filed last week — as only 22% of those still out of work expect to return to their old jobs within the next month, and less than half expect ever to go back. (Wall Street Journal, Reuters, NYT/Survey Monkey)
China avoided a recession after its economy grew 3.2 % in 2Q20, the first major economy to show a recovery. China’s economy had shrank 6.8% in 1Q20, the first contraction since the end of the Cultural Revolution in 1976. However, China’s job market showed only marginal improvement in June, as urban areas dropped to 5.7%, down from 5.9% — and the rate for people aged 20-24 with a college degree or above rose to 19.3%, up 2.1 percentage points on May. (South China Morning Post, South China Morning Post)
The European Central Bank left its stimulus policy unchanged, with no shift in rates or scale of bond-buying. However, 29% of UK businesses plan to cut jobs in next three months. (Financial Times, The Guardian)
Masks are moving closer to becoming a new U.S. national reality. Governors in two conservative states — Alabama and Montana — said people would be obligated to wear masks while in public. 25 states plus D.C. have mask mandates in public spaces. Following Walmart, Kroger and Kohl’s said they will require masks starting next week. Flipside: While saying Ohio’s “life is in danger,” Gov. DeWine held off on a mask mandate. In GA, Gov. Kemp banned local mask mandates, putting the state on a collision course with its cities. (Washington Post, Axios, USA Today, Columbus Post-Dispatch, AJC)
The U.S. threatened sanctions on any companies helping Russia build the Nord Stream 2 gas pipeline, which will carry gas to Germany and central Europe, as OPEC and Russia will start unwinding the record oil supply cuts agreed earlier this year. Meanwhile, internal OPEC research reveals fears that record oil cuts will fail to solve the worst glut in history if a second wave hits. (Financial Times, Financial Times, Reuters)
Russian state-sponsored hackers are targeting UK, US and Canadian organizations developing a coronavirus vaccine. The UK’s National Cyber Security Centre (NCSC) said drug companies and research groups were targeted by the group APT29, which was “almost certainly” part of the Kremlin’s intelligence services. (The Guardian)
Economy
Bank of America’s profit fell 52% in 2Q20 after the bank set aside $5.12 billion on top of the $4.76 billion it put away last quarter to prepare for soured loans. Morgan Stanley reported a 45% profit jump — record revenue ($13.4 billion) and profit ($3.2 billion) — as trading revenue rose 68%. (Wall Street Journal, Financial Times)
The 30-year mortgage rate reached its lowest level ever at 2.98%, while homebuilder sentiment jumped back to a pre-pandemic high, moving 14 points to 72 in July. Of the index’s three components, current sales conditions jumped 16 points to 69, sales expectations in the next six months rose seven points to 75 and buyer traffic rose 15 points to 58. (Wall Street Journal, CNBC)
American Airlines and JetBlue announced an alliance to market each other’s flights and link loyalty programs to improve their competitiveness in NY and Boston, challenging Delta and United as passenger traffic falls. (Wall Street Journal)
Boeing delivered just 20 commercial airplanes in 2Q20, bringing the total for 2H20 to 70 - compared to 239 in 1H19. Airbus delivered 196 airplanes in the 1H20 and is expected to fall way short of last year's total of 863 deliveries this year. (Statista)
SMIC, China's largest chipmaker, raised $6.62 billion in an IPO on Shanghai's STAR Market, and saw its share price more than triple during its first day of trading. This is the largest mainland China IPO since 2010, and makes SMIC the most valuable Shanghai-listed tech company with a market cap north of $84 billion. Meanwhile, Taiwan Semiconductor Manufacturing Co. confirmed it has suspended new orders from Huawei to comply with U.S. export regulations. (Axios, Nikkei Asian Review)
CEO coach Dana Cavalea, author of “Habits of a Champion: Nobody Becomes a Champion by Accident,” spent 12 years with MLB’s New York Yankees, working with star players like Derek Jeter as the team’s director of performance enhancement. Four keys to high CEO performance: Routine is key; Own your time; Coach one-on-one; Unite and get clear. (Chief Executive)
Technology
A Twitter insider was responsible for a wave of high profile account takeovers by accessing an internal tool, according to leaked screenshots obtained by Motherboard and two sources who took over accounts. (Vice)
Online education company Udemy is seeking new funding at a valuation of $3 billion. It previously announced a $50 million round at a $2 billion valuation in February. Udemy hired Goldman Sachs to assist with the fundraising. Meanwhile, CampusLogic raised $120M in the biggest U.S. edtech funding round so far this year. (The Information, EdSurge)
Digital health received $6.3 billion in funding in 1H20, a 24% increase from 1H19 that shatters all previous funding records. Telehealth received the most money with $1.7 billion. However, the funding pace slowed in 2Q20 with $2.8 billion across 161 deals, a 23% decrease compared to 1Q20 and an 11% dip year over year. (HealthcareDive)
Facing the threat of a U.S. ban on TikTok, the app’s Chinese owner, ByteDance, told investors that it plans to focus more on growth in its home market by expanding into new sectors and trying to develop another hit app. ByteDance’s Chinese business has boomed: Advertising revenue is expected to rise 60% to $27 billion this year, while the company will also generate revenue from ecommerce. (The Information)
Amazon is extending its corporate work-from-home policy through January and plans to continue restricting nonessential business travel through the end of the year. (The Verge)
Smart Links
Tesla registrations in CA nearly halved in 2Q20. (CNBC)
Google pledges not to use Fitbit health data to target ads. (Stat)
Opioid overdoses keep surging in Chicago (ProPublica)
The Rose Parade has been canceled for first time in 75 years. (Pasadena Star-News)
The best U.S. destinations for remote work. (RentCafe.com)