Good morning, Quartz readers!
What to watch for today
The US tests an ICBM. The unarmed test of a Minuteman 3 from California follows news that North Korea launched an intercontinental ballistic missile last week—from a surprise location near its border with China—that experts believe could reach much of the US.
German politicians and automakers discuss their dirty little problem. Diesel, that is. Industry heads and state governors meet in Berlin to address the backlash against diesels, the recent revelations about the German car cartel, and whether the diesel engine “fixes” offered by the country’s automakers will help.
Tesla presents second-quarter results. Elon Musk may be glowing from the recent launch of the Tesla Model 3, but it will take time to boost company earnings. More losses are expected in today’s report, given the heavy spending needed to get the Model 3 ready. Tesla has posted losses in seven of the past eight quarters.
While you were sleeping
Amazon followed Apple in implementing China’s VPN ban. Amazon Web Services’ partner in China instructed cloud-computing customers to delete illegal virtual private networks, less than a week after Apple removed VPNs from its app store in China. It’s all part of Beijing’s broad crackdown on people using tools to bypass the “great firewall.”
Bitcoin cash had a shaky first day’s trading. The digital currency split into two separate entities yesterday, with the new “bitcoin cash” offering an eight-fold increase in transaction capacity. But most cryptocurrency exchanges aren’t yet supporting bitcoin cash, and it fell sharply in its first day of trading to around 10% of bitcoin’s value (paywall).
Lufthansa had its best first half ever. The German flag carrier, which also owns Eurowings, Austrian, Swiss, and Brussels Airlines, reported a 69% rise in profit (paywall) and 10% increase in the number of flights—thanks to a rebound after terror attacks last year. In July, Lufthansa said its first-half operating profit had doubled to €1.042 billion ($2.07 billion).
Asia’s tech sector enjoyed an Apple-shaped boost. The world’s most valuable publicly traded company trounced expectations with its third-quarter results, posting net income of $8.72 billion and revenue of $45.4 billion. Asian tech stocks hit 17-year highs as Apple’s results created a halo effect for global component makers.
Rio Tinto shareholders got a bumper payout. Rising iron ore prices and a profit surge prompted the Anglo-Australian mining giant to announce its biggest interim dividend in its history—totaling $2 billion. The London-based firm mines most of its iron ore in Western Australia and sells it in China, where demand remains strong.
Quartz obsession interlude
Ali Griswold on why Uber should give up on world domination. “Uber could exhaust its remaining $7.2 billion in cash on hand in just over 10 quarters, or two and a half years. It’s time for Uber to swallow its pride and face a hard truth: Instead of attempting to conquer the world, it should be cutting deals with competitors and making a graceful retreat in markets too tough to dominate.” Read more here.
Matters of debate
Privacy settings are a feminist issue. Forcing users to “opt out” of compromising app settings lets tech companies off the hook.
Fears about AI are largely misinformed. Facebook didn’t kill its language-creating AI because it was too smart—quite the opposite.
The Tesla Model 3 isn’t truly progress. It belongs in the category of “defense innovations” designed to maintain the status quo.
Surprising discoveries
A dozen inmates broke out of an Alabama jail using peanut butter. They hoodwinked a rookie guard into believing that an exit was actually a prisoner’s cell (paywall).
A Mesopotamian fidget spinner is actually a weapon. The artifact from the Isin-Larsa Period was initially classified as a toy made of baked clay.
Jellyfish could be the best crunchy snack ever. Danish scientists have a new technique to transform their gooey insides into a chip.
American bee sperm has lost its buzz. Since the US closed its borders to live honeybee imports, inbreeding has ravaged the gene pool.
The US is turning a Russian airline’s planes into the next Air Force One. Two 747s owned by the bankrupt Transaero are currently parked in the Mojave desert.
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