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Here’s what you need to know
US stocks tanked as Covid-19 cases surge. A one-two punch of yesterday’s dour statement from Federal Reserve chair Jerome Powell and soaring infection rates in several states that have reopened led to the worst day for equities since March. Meanwhile, Treasury secretary Steven Mnuchin said shutting down the economy again is simply not an option.
Sony and Snap went virtual for highly anticipated product updates. Sony gave us all the details of its PS5 console (except the release date and price, of course), and Snap introduced a slew of new content partners and features, including augmented reality-driven original series. And to oversee any new Snap knockoffs, Facebook chief product officer Chris Cox has returned to the social media giant.
White women CEOs grapple with their role in perpetuating racism. Audrey Gelman, CEO of women’s coworking space The Wing, resigned Thursday following employee criticism, while Man Repeller founder Leandra Cohen is “stepping back” after critics called the fashion blog’s response to George Floyd’s death “tone deaf.” Last week, 23andMe CEO Anne Wojcicki said her genetics company is “part of the problem” and pledged to do more to promote inclusion.
For Unilever, London called. The consumer goods goliath is currently listed in both the UK and the Netherlands with a headquarters in each location. The newly announced unification in the UK is credited to sagging sales and a desire to simplify its operations, rather than Brexit complications.
Microsoft is the latest to about-face on facial recognition. Like Amazon, Microsoft will wait to sell its tech to police until the US passes a law governing its use. Earlier this week, IBM exited the facial recognition business for good.
Mapping who gets US visas
To come to the US for business, tourism, or medical treatment, many travelers need to obtain a B visa. Quartz analyzed B-visa denial rates from the fiscal year 2019 and found that they were more likely to go to nationals of richer countries over those from poorer ones.
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Doing business with a changing China
Companies doing business in China are facing renewed pressure to bend to Beijing’s political will to retain market access. On Thursday, German chancellor Angela Merkel urged Chinese prime minister Li Keqiang to grant “equal treatment of foreign companies” during a bilateral meeting intended to improve a business environment that European companies (✦ Quartz member exclusive) say is marked by major external pressure from Chinese government and media.
This tightening grip on foreign commercial activity is coming to a head in Hong Kong, where a new national security law is raising fundamental questions over the city’s role as the place where US dollars mix with Chinese enterprises under Western financial standards.
The British investment bank HSBC learned this lesson the hard way. Two weeks ago, Hong Kong’s former leader Leung Chun-ying singled out the bank for not publicly supporting the new national security law. The veiled threat achieved its intended result: a few days later, HSBC—which makes most of its profits in Hong Kong—threw its weight behind the law.
Last week’s anniversary of the Tiananmen Square protests also offered a glimpse of the new Hong Kong, with protesters facing prosecution over holding vigil and the video conference company Zoom censoring activists for holding a virtual event to mark the occasion. Even Apple, the world’s most valuable publicly-traded company, continues to remove apps and features at the will of the Chinese government.
In addition to a changing business climate, the coronavirus pandemic and the ensuing economic fallout has prompted a recalibration of relationships with China, and in China’s engagement with the world. Read more in this week’s member-exclusive field guide China’s changing influence.
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You asked about international travel
How will Covid 19 affect international travel over the long run? – Gabriela
Let’s start with the basics. On Thursday, the International Air Transport Association published an interactive map that displays the latest coronavirus travel restrictions—a good first stop for any travel planning.
Looking ahead, your options may depend on how much support airlines receive from lenders and/or governments. US air travel was down 96% in April and Delta just said it would have to renegotiate its debt to avoid a potential default. In Europe, major carriers are also cutting thousands of jobs that could impact flight pricing and availability down the road.
One last thing to consider is foreign exchange rates. After about two years of gaining strength, the value of the US dollar has fallen since the coronavirus reached American shores.
✉️ Do you have a burning question about how coronavirus is changing the world?
Surprising discoveries
Humans have been underestimating turtles. New drone footage from a Queensland green sea turtle rookery showed twice the number coming to lay eggs as previously estimated.
Wear a mask, avoid group sex, and “make it a little kinky.” Those are among the new recommendations in New York City’s updated Covid-19 safe sex guidelines.
More proof the ‘90s are back. Rage Against the Machine’s self-titled 1992 album is in the iTunes top 10 in the US.
A coronavirus patient is thriving after a double lung transplant. The young, previously healthy woman had suffered “permanent lung damage” as a result of the virus.
British scientists may have solved the mystery of the Ordovician extinction. It happened 445 million years ago and killed off 85% of life on Earth.
A recently-discovered figurine might be the oldest Chinese work of art. It’s 2cm long and up to 13,000 years old.
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