The World
As the failing U.S. stimulus talks threaten an economic recovery, House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin spoke today about a stand-alone bill for airline relief, as President Trump’s “erratic tweets” — over several hours — left the White House strategy unclear. Trump canceled talks yesterday afternoon. At 9:54 pm, he called on the House and Senate to “IMMEDIATELY” approve $25 billion in new aid for the airline industry, which has already begun laying off thousands of employees after federal aid programs expired last week. At 10:18 pm, he called for Congress to direct $1,200 payments to millions of Americans and for immediate aid for small businesses. “I am ready to sign right now,” he wrote. “Are you listening Nancy?” Today Pelosi said the White House is now “one of the most dangerous places in the country.” (Reuters, New York Times, Washington Post, Washington Post-2)
Surging UK infection rates have put Britain on the brink of tougher lockdown measures, overshadowing Prime Minister Johnson’s attempt to focus on life after the pandemic. Government scientific advisers called for “urgent and drastic action” after cases doubled in 11 days — and NHS laboratories that process tests could run out of crucial materials within a week. Italy will begin requiring mask-wearing outdoors, while Belgium will limit gatherings to no more than 4 people, and Scotland banned pubs from serving alcohol indoors. Israel extended its controversial limitations on political demonstrations, forbidding protests outside Prime Minister Netanyahu’s Jerusalem residence this weekend. Japan is lifting its 14-day quarantine for reentering business travelers, who can skip isolation by submitting 'action plans.' In the U.S., only a quarter of colleges that enroll more than 5,000 undergraduates and are offering in-person classes are testing for the coronavirus on a mass scale or randomly screening students. (The Times, Bloomberg, Brussels Times, The Guardian, Jerusalem Post, Nikkei Asian Review, EducationDive)
The World Bank said the pandemic could push as many as 150 million people into extreme poverty by the end of 2021, the first rise in the extreme poverty percentage in about 20 years. Meanwhile, the richest North Americans — classified as those with a net worth of at least $30 million — have already recovered much of their pre-pandemic wealth. Their collective net worth grew 37%, to about $12.5 trillion from the end of March to the end of August. Simultaneously, less than 11% of people with federal student debt are repaying their loans during Covid-19, while Wells Fargo is cutting more jobs as part of its cost-cutting drive. (Reuters, Wall Street Journal, CNBC, Reuters)
78% of Americans believe that U.S. government policies caused the Covid-19 crisis in the country — including 56% who think those policies mattered “a great deal” — more than attribute it to policies of foreign governments or the W.H.O. Only 57% intend to get a vaccine when it is available; the figure declines to 46% if the vaccine were developed outside the U.S. (University of Chicago/AP/NORC)
The pandemic and extreme weather have disrupted agricultural supply chains, leaving China without enough fresh food and food prices sharply higher in countries as diverse as Yemen, Sudan, Mexico and South Korea. United Nations World Food Program chief economist: “It’s scary and it’s overwhelming. I don’t think we have seen anything like this ever.” Meanwhile, food makers including Campbell Soup and Kellogg said huge U.S. demand during the pandemic finds them focusing on bolstering supplies of their most popular products, like Pepperidge Farm Goldfish crackers. (Washington Post, Wall Street Journal)
Russian President Putin noted harsh anti-Russian rhetoric from VP Biden, but said he was encouraged by Biden’s comments on arms control, while Russia successfully tested a hypersonic missile that can travel at up to eight times the speed of sound on Putin’s birthday today. In Greece, neo-Nazi Golden Dawn party leaders, who won more than 20 parliamentary seats after the financial crisis, were convicted of running a criminal organization. (Reuters, The Times, Financial Times)
The IRS is being investigated for using location data from a contractor to try and track Americans without a warrant, while the European Court of Justice, the EU’s highest legal authority, ruled Tuesday that member states cannot collect mass mobile and internet data on citizens. (Vice, CNBC)
Employees at Alphabet, Amazon, Apple, Facebook, Microsoft, and Oracle have contributed nearly 20 times as much money to Biden as to Trump since the beginning of 2019: $4,787,752 to Biden and just $239,527 to Trump. (Wired)
Economy
JPMorgan Chase pledged to use its financing weight to push clients to align with the Paris Climate Agreement and work toward global net zero-emissions by 2050. The bank said it would invest in technologies that help reduce carbon emissions and will work with clients to cut their own carbon footprints. (Wall Street Journal, Yahoo Finance)
U.S. and European companies are buying back bonds to reduce the cash piles they built up earlier this year, signaling expectations for more stable economic times ahead. Boeing forecast 11% fewer jet deliveries over next 10 years because of coronavirus impact. (Wall Street Journal, Seattle Times)
Venture firm Greycroft raised $680 million to invest in startups, with $310 million planned early stage startups and $370 million for growth-stage startups. Goldman Sachs upped the fundraising target for its new credit fund to $14 billion. Unqork, known for its no-code platform, secured $207 million in Series C funding from a slew of big name investors. The new funding raises the company’s valuation to $2 billion. (Bloomberg, TechCrunch, Bloomberg-2, Crunchbase)
Companies are testing a new ESG bond designed to attract socially minded investors that costs less and offers more leeway for companies than other types of sustainable debt. These bonds are usually structured such that companies pay a higher interest rate to investors if they fail to achieve a set of environmental and other goals before the maturity date. Also, the proceeds from these bonds can be used for general purposes, such as paying down existing debt, which sets it apart from other types of green, social and sustainability bonds. (Wall Street Journal)
The 40th semi-annual “Taking Stock With Teens” Generation Z survey, highlighting discretionary spending trends and brand preferences from 9,800 teens across 48 U.S. states, who contribute approximately $830 billion to U.S. retail sales annually: 48% of teens believe the economy is getting worse; Teens social/political issues: 1. Racial Equality, 2. the Environment, and 2020 Election is No. 4; TikTok climbs to No. 2 top social media platform surpassing Instagram but behind Snapchat; Chick-fil-A remains No. 1 restaurant; Chipotle gains share & Dunkin’ Donuts moves up to No. 4; 18% of teens consume plant-based meat with Impossible Foods as the No. 1 choice; 86% of teens own an iPhone and 89% expect an iPhone to be their next phone, both new all-time survey highs. (Piper Sandler)
Technology
The Democratic-led House Judiciary antitrust subcommittee released its “Investigation of Competition in Digital Markets” report: It's a “blockbuster” and “one of the most serious congressional efforts to oppose corporate power in decades.” The report examines America’s biggest technology companies — Amazon, Facebook, Google, and Apple — and concludes that Congress should consider forcing some to break up. Separately, the Supreme Court appears divided over Google bid to end Oracle copyright suit, as it hears arguments today. (Protocol, The Verge, Wall Street Journal, Subcommittee Report, Reuters)
In a study of brands based on emotional connections during the pandemic: Apple beat out both Amazon and Disney as well as other household names like Google, YouTube, Walmart, and Netflix to be the “most intimate brand during COVID.” (9to5Mac)
Airbnb burned through more than $1.2 billion in cash between mid-2019 and mid-2020, according to previously undisclosed figures, as the plunge in global travel earlier this year eroded a balance sheet already weakened by big increases in spending on hiring and marketing. The cash drain wiped away more than a third of what the company had on hand as of March 2019. (The Information)
Apple will announce iPhone 12 on Oct. 13: New design, new sizes, better camera, 5G, all-OLED, and more. (The Verge, 9to5Mac)
Smart Links
MacArthur Foundation announces 21 ‘Genius’ grant winners (New York Times, MacArthur Foundation)
Nobel Prize in Chemistry to Emmanuelle Charpentier and Jennifer A. Doudna for CRISPR. (Nobel Prize)
Learn More (now): "24 Hours of Harvard." 24 consecutive hours of virtual Harvard programming: an around-the-clock, around-the-world lineup of events and activities. (Harvard University)
Facebook bans QAnon across its platforms. (NBC News)
How mobile apps grab our attention: Faces — not larger, brighter elements. (Science Daily)
Scooter sharing beats bike sharing: Study (MIT News)
U.S. ranks 36 of 38 advanced nations in child wellness. (Washington Post, UNICEF)