Good morning, Quartz readers!
What to watch for today
Earnings day for drugs, cars, planes, and champagne. Drugmakers Eli Lilly and Biogen, US wireless carriers AT&T and Verizon Communications, and aerospace giant Lockheed Martin are all expected to report higher quarterly profits. Meanwhile, the French LVMH Moët Hennessy Louis Vuitton SE will address concerns China’s slowing economy.
The US trade representative holds a hearing on more Chinese tariffs. The discussion will revolve around the list of $16 billion in Chinese products (paywall) that might be subject to additional tariffs in the escalating trade war.
Mercari hits the market. After raising 130.5 billion yen ($1.2 billion) in its initial public offering last week—the biggest Japanese tech offering in two years—the online marketplace will start trading (paywall) on the Tokyo Stock Exchange.
While you were sleeping
Steve Bannon declared war on the EU. Trump’s ex-political strategist partnered with Raheem Kassam, Nigel Farage’s former chief aide, to create The Movement, a political organization designed to elect nationalist, populist candidates who oppose the European Union.
Donald Trump moved to revoke California’s authority to fight air pollution. The US president is expected to release a proposal this week that eliminates federal policies that allow the state to set its own vehicle emissions standards. The administration also plans to freeze fuel economy requirements at 35 miles per gallon, despite much stricter standards already agreed upon by states and automakers.
Prosecutors got a dozen secret Michael Cohen recordings. The audio clips were seized in April, but federal prosecutors did not have judiciary clearance to listen to them until now. The contents of the tapes have not been disclosed, but they may put additional pressure on the president’s former lawyer and fixer to testify against Donald Trump.
The New York Daily News laid off half its newsroom. US publishing giant Tronc laid waste to the editorial staff of the storied tabloid, which employed 85 journalists, to de-emphasize investigative reporting in favor of breaking news. Tronc, which has also cut dozens of journalists from the Los Angeles Times and the Chicago Tribune this year, also laid off the Daily News social media team—with embarrassing results.
The maker of “Settlers of Catan” is up for sale. Private equity firm PAI Partners is in exclusive talks to buy French game-maker Asmodee, which also makes popular games like Takenoko and Ticket to Ride, for an estimated $1.4 billion from fellow PE firm Erazeo, according to the Financial Times. The price includes debt, but presumably no brick, lumber, wool, grain, or ore.
Quartz Obsession interlude
Gwynn Guildford on the mystery of Russia’s missing wealth. “Russia should be rich. It has a bounty of natural resources—oil and gas, obviously, but also coal, grains, seafood, and vast stores of minerals. … [But] smuggling capital offshore—where it can’t be reinvested in Russia productive capacity or taxed to fund socially beneficial programs—isn’t good for Russia’s 144 million non-oligarchs.” Read more here.
Matters of debate
Consider the lobster, then eat it. You can care about animals even while you’re consuming them.
WeChat is missing a golden opportunity. It’s only expanding in markets popular with Chinese tourists.
The US economy feeds on low-income consumer debt. The poorer half of the population is spending more money despite financial woes.
Surprising discoveries
Uber customers are falling prey to vomit fraud. Drivers allegedly lie about passenger puke to pocket big clean-up fees.
Amazon has patented robotic arms that can throw things around. The robots will use sensors and databases to effectively move warehouse inventory.
It’s easier to lie in a foreign language. Research suggests it also takes longer to tell the truth.
Users are suing Juul for their nicotine addiction. The lawsuits allege that the vaping device is deceptively marketed as safe.
The trade war is causing a US meat glut. Chinese and Mexican tariffs have stuffed warehouses with 2.5 billion pounds of pork, poultry, and beef (paywall).
Our best wishes for a productive day. Please send any news, comments, surplus meat, and vomit fraud avoidance tips to hi@qz.com. You can follow us on Twitter for updates throughout the day or download our apps for iPhone and Android. Today’s Daily Brief was written by Aisha Hassan and David Wexner, and edited by Adam Pasick.