What to watch for today
The first major hearing in the San Bernardino iPhone case. Erik Neuenschwander, Apple’s head of product security and privacy, will testify about the feasibility of the FBI’s request to access a terrorist’s iPhone. The media circus begins at 1pm Pacific Time (4am in Hong Kong).
A comet flies close to Earth. Comet P/2016 BA14 will “safely” pass within 2.2 million miles of the Earth, according to NASA’s Planetary Defense Office, making it the third-closest comet fly-by in recorded history. The comet is too small to be seen with the naked eye, but can be tracked with professional-grade telescopes.
Nike reports earnings. The shoe and fitness gear maker’s profits and revenue are both expected to show solid growth thanks the global athleisure boom. CEO Mark Parker may also discuss the impact of the 2016 Rio Olympics.
While you were sleeping
Alibaba hit a big milestone, but its growth is slowing. The Chinese e-commerce giant sold more than three trillion yuan ($462 billion) worth of goods in the fiscal year ending March 31. That’s a 23% increase in gross merchandise volume, compared with a rise of 46% a year earlier; vice chair Joe Tsai said that growth “is meaningless unless it is sustainable.”
Marriott put up more cash to buy Starwood after all. After a rival offer from China’s Anbang Insurance, Marriott convinced Starwood to accept a sweetened cash-and-stock bid worth $13.6 billion. The deal, which has been pre-cleared by competition regulators, will create the world’s largest hotel company.
A CEO shake-up at Valeant. The embattled pharmaceutical company announced the departure of Michael Pearson, only weeks after he returned from sick leave, and that activist investor Bill Ackman would join its board. Valeant is the target of several federal investigations, and its shares fell 50% last week after it slashed its earnings outlook.
Apple launched a smaller iPhone. With its 4 inch (10 cm) screen, the iPhone SE (for “special edition”) looks just like the three-year-old iPhone 5S, but with upgraded components. At the launch event, Apple CEO Tim Cook also reiterated the company would not stand down in its fight with the US government over privacy.
A tense and historic meeting in Cuba. During the first visit of an American president to the island since 1928, Barack Obama met with his counterpart, Raúl Castro. Obama said the US trade embargo “does not serve our interests” and called for greater respect for human rights, while Castro called for the US to leave its naval base at Guantanamo Bay.
Quartz markets haiku
A small step higher
on a dull day of trading
but that’s fine by me
Quartz obsession interlude
Joon Ian Wong on why perceived productivity. “Why do Americans think they’re so much better than their fellows at work? It’s difficult to say, Qualtrics’ global insights head Mike Maughan told Quartz, but it could be an overhang from the financial crisis of 2008.” Read more here.
Matters of debate
It’s game over for coal. Market trends and new regulations spell the end of a once-dominant energy source.
The rise of robots is why we need a universal basic income. Many jobs will soon disappear, but that doesn’t mean people should starve.
Global authoritarianism is on the rise. Trumpism is a manifestation of a transnational trend.
Surprising discoveries
The Silk Road used to go through Tibet. An 1,800-year-old tomb suggests that the ancient trade route once scraped the roof of the world.
Norwegians are surfing in the Arctic Circle under the Northern Lights. Thanks to the jet stream, sea temperatures are a balmy 6℃ (43℉).
A record number of Americans blame humans for climate change. But it’s still only 41%, according to Gallup.
Elon Musk’s second wife has second thoughts about canceling their second divorce. They are getting unhitched, again, after all.
The Netherlands is suffering from a criminal shortage. It may have to close five prisons due to a lack of inmates.
Our best wishes for a productive day. Please send any news, comments, Norwegian surfboards, and surplus criminals to hi@qz.com. And download our new iPhone app for news throughout the day.