Good morning, Quartz readers!
What to watch for today
A slight hitch in Abenomics. Japanese prime minister Shinzo Abe is expected to announce a delay to his planned 10% sales tax hike to avoid damaging the fragile economy. Opposition parties, who lost a no-confidence vote against Abe’s cabinet on Tuesday, blame his policies for rising inequality and poverty.
The world’s longest rail tunnel opens. The 57km (35 mile) Gotthard Base tunnel beneath the Swiss Alps will cut transit times along one of Europe’s busiest transport corridors. Germany’s Angela Merkel and France’s Francois Hollande will attend the opening ceremony and discuss Switzerland’s relationship with the EU.
Brazil’s woes deepen. Latin America’s largest economy is expected to shrink for the fifth straight quarter, in the country’s worst recession since the 1930s. A crippling political crisis has stalled investments, while high unemployment is dragging down consumer spending.
While you were sleeping
Softbank is selling a big chunk of Alibaba shares. The Japanese tech giant said it would offload $7.9 billion worth of Alibaba stock, reducing its ownership stake from 32% to 28%. About $2.4 billion will be sold back to Alibaba, with the rest going to institutional investors.
Fighting intensified in Falluja. An ISIL counterattack halted an assault on the city by Iraqi government forces. The United Nations warned that the extremist group, which has controlled Falluja since 2014, is reportedly using thousands of civilians as human shields.
The Dalai Lama thinks Europe has taken in “too many” refugees… The Tibetan Buddhist leader, who is living in exile, told a newspaper that Germany “cannot become an Arab country.” He said refugees should eventually return home to rebuild their countries.
…As the death toll climbed in the Mediterranean. At least 1,000 migrants drowned last week en route from Libya to Italy, according to new data from the International Organization for Migration. Warm weather and bigger boats are encouraging more people to attempt the dangerous crossing.
Anbang pressed pause on a US acquisition. The Beijing-based insurance company withdrew its application to buy Fidelity & Guaranty Life for $1.6 billion after regulators resisted approving the deal because of the Chinese company’s ownership structure. Anbang, which has been on a US insurance and hotel shopping spree, intends to refile for approval later.
Quartz markets haiku
One-point-five percent
That’s the market’s gain for May
Third straight monthly rise
Quartz obsession interlude
Introducing the beasts of Silicon Valley. “Being a unicorn is no longer something that sets a company apart. We dug deep into mythology to identify fantastical creatures that reflect the increasingly diverse herd of tech companies.” Read more here.
Matters of debate
You’re going to marry the wrong person. It’s better to be a pessimist when it comes to marriage.
The alliance between US businesses and the Republican party is in shambles. It was undone by Barack Obama and Donald Trump.
Facebook should ditch Peter Thiel, but it won’t. They have both effectively declared war on journalism.
Surprising discoveries
An ex-CEO who sold his business for $2 billion is driving an Uber. It’s just a nice way to meet people.
Selling ice cream in New York is a tough business. Two rivals are waging a violent turf war.
Most people actually like to go to work. India has the world’s happiest employees, followed by Mexico.
Beware the octopi. Along with their squid and cuttlefish cousins, they are thriving amid climate change.
Scientists can analyze your breath to tell what movie you’re watching. The chemicals you emit are different for dramas and comedies.
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