Good morning, Quartz readers!
What to watch for today
The US and North Korea prep for a second summit. US envoy Stephen Biegun is in Pyongyang for talks ahead of another planned meeting between Donald Trump and Kim Jong Un. Trump announced in last night’s State of the Union speech that he’ll be meeting the North Korean leader in Vietnam Feb. 27-28.
Trump taps a World Bank critic as its new president. Treasury official David Malpass, a critic of international development, is expected to be nominated by the US, beating out several high-profile female candidates.
GlaxoSmithKline reveals more of its spin-off plans. When the UK pharmaceuticals giant announces its fourth-quarter numbers, investors will be looking for details on its recently announced planned break-up and joint-venture with Pfizer. The company has been shoring up its cancer drugs pipeline, but analysts expect more competition from generics.
General Motors reports earnings amid layoffs. The US car giant this week began laying off some 4,000 employees ahead of today’s quarterly report. The reductions are part of an overhaul that includes plans to build an electric-vehicle portfolio amid a US slowdown in new car sales (paywall).
Closely watched trade data is released. The Commerce Department’s international trade data for November, delayed by the government shutdown, is expected to show the trade deficit narrowing to $54 billion. A slip in exports and rising imports pushed October’s number to a ten-year high of $55.5 billion.
While you were sleeping
Trump delivered his second State of the Union address. In a speech delayed due to the government shutdown, the president tried to find common ground with the Democrats while also delivering the America-first rhetoric popular with his base. He pleaded for cooperation, made a pitch for his border wall, and warned that “ridiculous partisan investigations” would hurt the “economic miracle” taking place in the US.
The US and China announced the next leg of trade talks. Ahead of an increase in tariffs on Chinese goods scheduled for March 2, chief trade negotiator Robert Lighthizer and Treasury secretary Steven Mnuchin will head to Beijing (paywall) next week to continue negotiations for a new trade deal. In his State of the Union address, President Trump said any deal must “must include real, structural change to end unfair trade practices.”
Tesla slashed Model 3 prices for the second time this year. Tesla’s most affordable vehicle will now cost $42,900, thanks to the end of an expensive customer referral program. Musk is determined (paywall) to prove that an emissions-free, mass-produced car can also be affordable, but he admitted that getting to his even-lower sticker price goal of $35,000 without credits is “a super hard grind.”
Daimler’s fourth quarter profits fell 22%. The German car manufacturer said that rising costs in the race to develop electric and self driving cars—as well as increased tariffs on exported vehicles—had driven down profits.
Elizabeth Warren apologized for calling herself Native American. The Democratic senator, who is seeking to settle the controversy around her ancestry claims as she prepares for a presidential run, told the Washington Post (paywall) she regrets identifying herself as Native American for almost two decades. The Post also uncovered that Warren had identified as “American Indian” in a 1986 application for the Texas State Bar, a revelation that is further inflaming the issue.
Quartz obsession interlude
Grapefruit: All citrus fruits come from just a handful of original varieties that started out in Asia about 7 million years ago. But the grapefruit—a cross between a sweet orange and a pomelo or shaddock—is a uniquely American specimen. Read the zesty details in today’s Quartz Obsession.
Membership
Who runs esports? On the gaming side, there’s Tyler “Ninja” Blevins, who represents the insurgent future of the gaming industry, and Dominique “SonicFox” McLean, a self-described black, queer furry. On the financial side, keep an eye on Overwatch League’s Nate Nanzer, Epic Games’s Tim Sweeney, and TSM’s Andy “Reginald” Dinh. Learn more in this week’s membership exclusive.
Matters of debate
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SOTU is unnecessary in the digital age. Trump delivers a State of the Union address every morning before breakfast on Twitter.
India’s single time zone is exhausting. It causes a two-hour sunset discrepancy that hurts the performance of children in the country’s west.
Chasing kingpins is a recipe for drug war defeat. Taking leaders like El Chapo out of the game merely fragments power and increases violence.
Surprising discoveries
The Swedish crown jewels may have been found on top of a garbage bin. A security guard located what appears to be the nation’s missing treasure in a Stockholm suburb.
Our blue planet is getting bluer. Global warming is killing off the phytoplankton that give water its greenish tinge.
Gwyneth Paltrow is the new Oprah. With a new Netflix series and book club on the way, the actress-turned-lifestyle-guru is picking up where her predecessor left off.
Men who smoke weed could be more fertile. The study surprised researchers who had assumed smoking has an adverse impact on sperm count.
AR is catching on with online shoppers. While other industries have struggled to harness the power of augmented reality, virtually trying on eyewear and makeup is a no-brainer.
Our best wishes for a productive day. Please send any news, comments, missing crown jewels, and ripe grapefruit to hi@qz.com. Join the next chapter of Quartz by downloading our app and becoming a member. Today’s Daily Brief was written by Rosie Spinks and edited by Jackie Bischof.