Good morning, Quartz readers!
What to watch for today
The Philippines and the US talk about the South China Sea. In Manila, secretary of state John Kerry will encourage president Rodrigo Duterte to engage in negotiations with Beijing over the contested waterway. Tensions have increased after an international tribunal ruled heavily against China’s sweeping claims to the strategic waterway.
The Federal Reserve holds off on a rate hike. Market volatility and uncertainties around Brexit will play a role as the US central bank is expected to keep interest rates stable. A rate hike could still happen as early as September.
Facebook is the pick of corporate results. Platforms like Instagram and Messenger are expected to drive the social media giant’s revenue and earnings, with analysts expecting user growth of 15.3% from a year ago. Soft drink companies Coca-Cola and Dr Pepper Snapple also report earnings.
While you were sleeping
Britain’s economy isn’t shrinking yet. The UK economy beat economists’ expectations with 0.6% growth in the three months to end of June (paywall), one week after the country’s vote to leave the European Union. The industrial sector’s 2.1% growth was its best quarterly jump since the third quarter of 1999. Many pundits are predicting a post-vote recession.
“I can’t believe we just put the biggest crack in that glass ceiling yet.” Hillary Clinton officially became the Democratic nominee and the first woman to lead a major-party presidential ticket for the first time in the nation’s history. Her husband Bill called her the “best change-maker I have ever known.” Now comes the hard part.
Pokémon Go couldn’t help Nintendo’s first-quarter figures. The Japanese games company posted a net loss of over $234 million (paywall), much more than analysts predicted, due to weak console sales and the strong yen. Pokémon Go didn’t launch until July, so the impact of the hit game isn’t included in the first-quarter results.
Deutsche Bank soldiered on through its big overhaul. Net second-quarter profit decreased to €20 million ($22 million) from €798 million a year earlier, as trading revenue fell and the German bank continued its overhaul. CEO John Cryan has been on a mission to cut costs while battling legal costs, low interest rates, and uncertainty in the wake of the Brexit vote.
Shinzo Abe announced a $265 billion stimulus plan. The Japanese prime minister said the package, intended to boost the flagging economy, would be put together next week but didn’t specify how much would go towards fiscal measures such as government spending and loan programs. Investors will be watching how the Bank of Japan reacts to Abe’s stimulus plans at its rate review on Friday.
Quartz obsession interlude
Ananya Bhattacharya on the robot that’s helping the disabled feed themselves. “Obi includes a placemat with a dinner-plate-sized dish with four compartments on top, which mount onto a white platform. Attached to one side of the sleek, white platform is a robotic arm fitted with a spoon. Once placed on a table in front of the recipient, a caregiver can grasp the arm and teach Obi the delivery location.” Read more here.
Matters of debate
Russia will field the cleanest team in Rio. The International Olympic Committee is subjecting Russian athletes to a rigorous testing program.
The US shouldn’t drop the Trans-Pacific Partnership. Despite opposition at home, Asian allies would see it as a betrayal (paywall).
China’s anger at the treatment of its journalists in India is stunningly hypocritical. Beijing has a long history of expelling and censoring foreign journalists.
Surprising discoveries
Chernobyl wants to reinvent itself as a solar-energy center. Ukraine is seeking investors for its plan to harvest sunshine in the disaster area.
Lufthansa is selling airline tickets on Airbnb. The airline is willing to try just about anything to turn its business around.
Political turmoil is good for pizza delivery. Civil unrest and protests are making Americans more interested in ordering in.
The US Navy used Pokémon Go as a recruitment tool. It later retracted the ads, admitting they weren’t quite in line with its mission.
Starbucks baristas are now allowed to wear fedoras. It’s part of a corporate move to improve employee morale.
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