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Here’s what you need to know
Microsoft is dodging a bullet by “losing” out on TikTok. After its bid was rejected, in large part due to new export restrictions issued by China, Oracle is instead reportedly set to become TikTok’s “trusted tech partner” in the US. Microsoft can now stay under the radar. Meanwhile, the US ambassador to China, Terry Branstad, is stepping down.
An ARM founder called its sale to Nvidia a “disaster.” The US chip designer purchased the British manufacturer for $40 billion from Japanese conglomerate SoftBank, and promised to keep the business in the UK. But Hermann Hauser is not happy: “It’s the last European technology company with global relevance and it’s being sold to the Americans.” The Financial Times reports (paywall) that SoftBank executives are considering taking the group private.
Uber is back in court in London. The US company is appealing against a ban imposed by the city’s transportation authority last year over the safety and security of passengers. Uber has since continued to operate in one of its most important internal markets, but faces an uncertain week at Westminster Magistrates’ Court.
The west coast of the US is still burning. Strong winds in California, Oregon, and Washington are further spreading wildfires that have already killed more than 30 people, and driven thousands from their homes. “I drove 600 miles up and down the state, and I never escaped the smoke,” said Oregon senator Jeff Merkley.
The Arctic lost a huge chunk of ice. Satellite images show that part of the region’s largest remaining ice shelf has shattered into smaller pieces in north east Greenland. It covers an area of around 110 square kilometers. In Greenland and California, scientists blame climate change.
What to Watch For this Week
Monday: Yoshihide Suga is set to become the new prime minister of Japan, Huawei stops receiving shipments from most suppliers, and Russian president Vladimir Putin meets with his Belarusian counterpart to discuss closer integration.
Tuesday: Israel and the UAE sign a US-brokered peace deal at the White House.
Wednesday: The US Fed, Bank of Japan, and Brazil’s central bank make policy announcements.
Thursday: The Bank of England makes a policy decision. The acting secretary of the US department of homeland security is subpeonaed to testify in a hearing about threats to the country.
Friday: Israel goes back into a country-wide lockdown for at least three weeks.
Saturday: Thai protesters plan a major demonstration demanding the government step down.
Charting the economic impact of school closures
As schools all over the world struggle with how to operate while preventing the spread of Covid-19, economists have begun modeling the potential long-term damage to students’ livelihoods and to the global economy. A new OECD report found that students from grades 1-12 who are affected by school closures will see approximately 3% lower earnings in their careers—that’s likely more for disadvantaged students.
Countries can expect at least a 1.5% drop in GDP for the rest of the century. The only solution is to catch kids up by making schools better than they were before the pandemic.
Read more about the cost of closing schools here.
We interrupt this programming
For the big brands that rely on the $70 billion TV advertising industry to drive awareness, and the global media conglomerates that produce the content between the commercial breaks, the next five years will be the most critical since televisions first entered living rooms.
Companies that depend on TV ads will have to adapt to a rapidly changing media landscape or risk irrelevance—and that means embracing a level of innovation they’ve never considered before.
This week’s field guide is all about the future of TV advertising, and it includes a handy list of some ad industry jargon you might see mentioned throughout:
Now that you’ve brushed up on your industry definitions, read the full guide here.
Obsession interlude: How we spend
What does it mean to be obsessed with how we spend? We asked culture and lifestyle editor Oliver Staley:
Consumer spending is about 40% of China’s gross national product, compared with around 63% in the UK and 70% in the US. It’s not a coincidence that the tech companies driving the US stock market—Amazon, Apple, Google, and Facebook—make their money selling or advertising stuff to consumers. When people spend less, the economy suffers. President George W. Bush was criticized for urging Americans to shop after the terrorist attack of Sept. 11, 2001, but he wasn’t wrong to do so. Shopping keeps the global lights on.
Increasingly, consumers are using all that power to force whole industries to change. Their increasing excitement about clean vehicles helped to make Tesla more valuable than Ford and GM, combined. Their disdain for cable companies gave us Netflix.
Read more about How We Spend or splurge on these recent stories:
Macy’s is planning a future outside of malls
Why the US can’t stock dumbbells fast enough
Surprising Discoveries
A whale took a dangerous wrong turning. The humpback found itself in a crocodile-infested river in Australia, where it’s gently being coaxed away.
Yep, of course. There’s a luxury Vuitton face shield that costs $1,000.
There’s a Japanese app promoting slow and clear speaking. It helps users practice making their speech easier to understand for people with hearing loss.
Virginia is sending around empty school buses. It’s one way to justify keeping drivers on the payroll.
Vinyl records are more popular than compact discs. Sales of records in the US surpassed CDs for the first time since 1986.
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