Good morning, Quartz readers!
What to watch for today
Jim Mattis heads to South Korea. “Everyone is out for a peaceful resolution. No one’s rushing for war,” said the US defense secretary, who is visiting Asian allies ahead of president Donald Trump’s visit next month.
Nearly a billion dollars in Venezuela bond payments are due. The state-run oil company PDVSA owes $985 million in interest and principal payments on its 2020 bonds, and there are fears that the country’s cash-strapped government doesn’t have enough money. Next week, PDVSA owes another $1.2 billion.
Apple starts taking iPhone X pre-orders. Customers and media are bracing for a mad retail rush as everyone basically ignores the iPhone 8 (paywall) in favor of its more expensive face-scanning successor, which is expected to be initially in short supply.
While you were sleeping
CVS is considering a blockbuster bid for Aetna. The $66 billion deal (paywall) would combine a major drugstore chain with one of the largest US health insurers, and give the merged company more leverage against pharmaceutical companies. It would also be the biggest M&A deal of the year.
Alphabet and Amazon posted stellar results. Google’s parent company generated $7.8 billion in quarterly profit on $27.8 billion in revenue, almost entirely from advertising, proving that being a one-trick pony can be a very lucrative business. Amazon’s $256 million profit on $43.7 billion in revenue easily outpaced analyst expectations.
Twitter might finally start making some money. The company posted better-than-expected user growth and quarterly revenue figures, and said it expects to be profitable in the fourth quarter. The company also said it would ban two Kremlin-controlled news outlets, accused of peddling fake news during the US election, from advertising on its platform.
The European Central Bank cut its stimulus program. Although the ECB will continue buying bonds until next September, the asset purchases will be cut to €30 billion ($35 billion) a month—half of what it has previously spent.
Kenya’s contested presidential re-vote erupted into violence. Elections have been postponed in several regions after protesters battled local police and shuttered polling stations. Voting will resume on Saturday.
The Netherlands finally has a working government. It took 225 days—a new record—but post-election negotiations finally ended with the creation of four-party coalition led by incumbent prime minister Mark Rutte.
Quartz obsession interlude
Aamna Mohdin and Jenny Anderson on lessons from a multi-ethnic UK school that could heal a divided nation: “Barking Abbey is a microcosm of Barking itself, which has transformed since the 1990s from a predominately white community to a far more racially diverse one. Over the same period, this one-time bastion of working class Britain has become poorer, and life has become harder for its residents.” Read more here.
Matters of debate
Remote meetings are still the worst. Ill-designed tools and short attention spans contribute to an environment ripe for failure.
Facebook owes a debt to the cities it gentrified. The Chan Zuckerberg Initiative is handing out grants to cities where it has helped to drive up real estate prices.
It’s ok for your kid to dress up as Moana, regardless of race. A knee-jerk response does a disservice to the cause of cultural acceptance.
Surprising discoveries
A shortage of butter is taking a toll on French croissants. Bakers haven’t been able to maintain normal production levels.
Front-facing cameras were never intended for selfies. Sony, which introduced the feature, thought it would enhance business meetings.
Neanderthals with disabilities got social services to survive. Scientists’ reanalysis of a 50,000-year-old skull showed that a visually impaired and deaf male lived well into his 40s.
Daydreaming may be a sign of greater intelligence. People who reported higher mental walkabouts also scored higher on creativity tests.
Scientists made robotic aquabees to study the ocean. The 175 mg device has wings that both flap and paddle, allowing it to transition from air to water.
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