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The World
The House voted 223-205 to formally call on V.P. Pence to use the 25th Amendment to strip President Trump of his powers. Pence ruled out using the amendment to remove Trump, as some Republican House members, including GOP No. 3 Liz Cheney, say they will vote to impeach Trump. In the Senate, McConnell is said to believe Trump committed impeachable offenses, and leans toward convicting Trump. Earlier, the Joint Chiefs of Staff put out a rare message to service members saying the pro-Trump last week was an assault on America’s constitutional process — and that Biden will be their commander in chief on Jan. 20. Meanwhile, a newly-revealed FBI report warned of ‘war’ at Capitol, contradicting claims there was no indication of looming violence — while Rep. Mikie Sherrill claimed Congress members gave 'reconnaissance' tours day before Capitol raid. (New York Times, The Guardian, Washington Post, North Jersey, New York Times-2, Axios)
Defense contractors Northrop Grumman, Raytheon, and Leidos halted political donations in wake of Jan. 6 riot. Combined, the three firms had donated about $15 million during the 2020 election cycle. Walmart, Disney suspend contributions to lawmakers who opposed Biden certification. Local St. Louis companies are the latest to pause donations to Sen. Hawley. (Defense News, Reuters, St. Louis Post-Dispatch)
Just 27% of GOP voters say they trust U.S. elections, down from 30% in late December and 72% in late September. Even fewer Republicans (22%) say the 2020 presidential election was free and fair. And a similar share say the same about the recent Georgia Senate elections. (Morning Consult)
Germany initiated new lockdown measures across all 16 federal states amid new records set in recent weeks in daily new case counts, including private meetings are limited to one guest in a single household. In the UK, the pandemic caused excess deaths to rise to their highest level since WWII. L.A. County is approaching 1 million cases as officials brace for new hospital surge. It took nearly 11 months for L.A. County to top 500,000 coronavirus cases, and one month to double that massive number. (Deutsche Welle, BBC News, Los Angeles Times)
California’s Disneyland and NY Mets’ Citi Field will become 24/7 mass Covid vaccine distribution sites. Operation Warp Speed Chief Adviser Dr. Moncef Slaoui submitted his resignation at the request of the incoming Biden team, under a plan that would see him stay in the role for a month to help with the transition. (The Guardian, The Hill, CNBC)
President-elect Biden intends to unveil his economic relief plan on Thursday, which is expected to include $2,000 stimulus payments, an extension of enhanced unemployment insurance, money for vaccine distribution and delivery, funding for cities, states, schools, child care and more. Transition officials indicated in meetings with Democratic staffers that Biden will try to get bipartisan support for the measure, instead of using a special budgetary tool that could allow him to push legislation through Congress with only Democratic votes. (Washington Post)
The U.S. State Department canceled all remaining travel. Secretary of State Pompeo canceled his trip to Europe at the last minute after European officials were publicly critical of Trump’s role in last week’s storming of the Capitol. UN Ambassador Kelly Craft canceled a trip to Taiwan. North Korean leader Kim Jong Un called for increased military power and greater nuclear war deterrence, as a rare ruling party congress came to a close after eight days of policy discussions. (The Guardian, Nikkei Asian Review, Reuters)
India's Supreme Court put on hold three contentious farm laws that have sparked weeks of protests, staying the implementation of the laws "until further notice," and appointed an independent committee to broker a deal between the farmers and the government. Hungary is to host the first Chinese university campus in the European Union as the government of Viktor Orban seeks closer ties with Beijing. (BBC News, The Times)
Former Michigan governor Rick Snyder, his health director and other ex-officials have been told they’re being charged after a new investigation of the Flint water scandal, which devastated the majority Black city with lead-contaminated water and was blamed for a deadly outbreak of Legionnaires’ disease in 2014-15. (Associated Press, Detroit Free Press)
Cities say they want to defund the police; their budgets say otherwise. An analysis of 2020 and 2021 police budgets from the 50 largest cities reveals a different political reality: Most major U.S. cities — including those that have swung left since the 2016 presidential election — have been unwilling to make meaningful cuts. In fact, more than half of cities where Democrats gained shares maintained or even increased their police budgets. (CityLab)
Economy
Walmart customers don’t expect a speedy economic recovery, with almost half saying they were worried about the health of the economy, Walmart Chief Customer Officer Janey Whiteside said at the virtual National Retail Federation conference. Whiteside said customers are stretching the budget with strategies like switching from national brands to private brands or buying smaller pack sizes. (CNBC)
Restaurant job losses skyrocketed to 372K in December, a dramatic increase from the 17,000 jobs lost at restaurants and bars in November, which marked the first time the industry had a net job loss since April. Leisure and hospitality unemployment is 157% higher than the national average. (RestaurantDive)
44% of healthcare CFOs expect the pandemic to drive an increase in partnerships across the healthcare ecosystem and 42% predict further consolidation. Health systems are expected to forge more alliances going forward, including collaborations with non-traditional partners, to address gaps in infrastructure exposed by the virus. (HealthcareDive)
The work-from-home phenomenon has triggered a fresh frustration for U.S. corporations: Americans are blowing the whistle on their employers like never before. The proof is in the data, with the U.S. Securities and Exchange Commission receiving 6,900 tips alleging white-collar malfeasance in the fiscal year that ended Sept. 30, a 31% jump from the previous 12-month record. Officials at the agency, which pays whistle-blowers for information that leads to successful investigations, say the surge really started gaining traction in March when Covid-19 forced millions to relocate to their sofas from office cubicles. (Bloomberg)
Biden to name Gary Gensler as U.S. SEC chair. Meanwhile, Alfred A. Knopf announced that Senator Klobuchar will write about monopolies and her recommendations for how they should be challenged in a book slated for release in April. “Antitrust: Taking on Monopoly Power From the Gilded Age to the Digital Age” is a mix of history, law, personal anecdotes and politics, encompassing such companies as John D. Rockefeller’s Standard Oil, Amazon and pharmaceutical corporations. It is also a blueprint for how Congress and the incoming Biden administration might adjust the U.S. approach to their regulation. (Reuters, New York Times)
Worried about dwindling credit-card usage during the pandemic and the rapid rise of startups that allow consumers to pay for goods in installments, some Australian banks are launching no-interest cards. (Wall Street Journal)
Father of the modern Kroger company: Lyle Everingham, the former CEO who saved Kroger from 1988 takeover attempt, died at 94. Lessons from his career include not only having held off a hostile takeover bid, but also key aspects we take for granted today, including: The expansion of grocery stores to include items besides food such as cosmetics and small electronic appliances, introducing scanning technology, and placing pharmacies in the stores. (Cincinnati Enquirer)
Yum! Brands CEO David Gibbs, a 31-year veteran of the company who took the reins last year, shares his plans for fast food in the post-pandemic future, which will look very different than it does today. (Wall Street Journal)
Technology
Online shopping became essential in 2020, increasing by about 20% from the previous year, Mastercard CEO Michael Miebach said at CES — and the growth rate won't go back down to slower pre-pandemic figures: "Years of digital acceleration have been kind of compressed into months."Going forward, consumers will be more likely to make repetitive purchases of everyday items online, having learned how to do this over many months of lockdowns and business closures. In-store purchases may be more limited to purchases that consumers want advice from knowledgeable retailers before making. (Cnet)
The big topic at CES: The government. Incoming National Economic Council Director Brian Deese said at CES that there's a lot the Biden administration will do to support the tech industry. The U.S. government will invest in R&D and call out other countries when they aren't "playing fair," potentially a reference to digital taxes in the E.U. or IP theft in China. But he said technology companies "have an obligation to think about what it is that they can do to address persistent challenges." He said companies have to think about how they're treating their data and their workforce. Privacy executives from Amazon, Google and Twitter predicted on a panel later in the day that figuring out a resolution to the death of the privacy shield and the future of cross-border data flows will be one of many priorities in the first 180 days of Biden's presidency. (Source Code)
39% of adults say that moves to temporarily suspend the president to ensure a peaceful transition of power are “exactly right.” However, support varies widely across party lines: 69% of Republicans said the suspensions, went “too far,” while 43% of Democrats said the moves “don’t go far enough.” (Morning Consult)
Stripe competitor Checkout(dot)com has become Europe’s largest startup after a fundraising round led by Tiger Global Management that nearly tripled its valuation to $15 billion. (Bloomberg)
Zoom Video Communications sent a signal it may be planning a sizable acquisition, raising $1.5 billion in stock and cashing in on the incredible run-up in its stock over the past year. Zoom stock started last year trading at $68 and reached a high in October of $568, although lately it has traded at around $340. (The Information)
Smart Links
Flooding due to climate change caused $75 billion of damage in U.S. over last 30 years. (Bloomberg)
Colonoscopy Alternative: At-home colon cancer test is as reliable as the traditional screening… and more agreeable. (New York Times)
Blockchain investment expected to grow in 2021. (Crunchbase)
Wind power overtakes coal in Texas electricity generation. (Hart Energy)
CRISPR gene editing used to store data in DNA inside living cells. (New Scientist)
Man saved from deportation to Bangladesh after pollution plea in French legal 'first.' (The Guardian)
Spotify bets big on podcasts as a path to profitability. (Bloomberg Businessweek)