REOPENING

States Take Five

If you asked epidemiologists in May what a worst-case reopening looks like, they might’ve written up an article similar to the one you're reading right now.

Reopenings = paused

North Carolina: Facing rising hospitalizations, Gov. Roy Cooper on Wednesday extended the state's Phase 2 reopening by three weeks and mandated statewide mask-wearing. 

Texas: Gov. Greg Abbott paused additional reopening plans yesterday as cases neared 126,000. Abbott also halted elective medical procedures in four counties to free up beds just in case—a blow to medical centers that only recently welcomed back their moneymakers.

• Officials in hard-hit areas are worried: One Houston hospital complex filled 98% of ICU beds on Tuesday. 

Florida: Gov. Ron DeSantis is pushing off the final phase of reopening after cases surged above 114,000 this week, driven by spikes in Miami, Fort Lauderdale, Palm Beach, and Orlando. 

• Most businesses, including bars and nightclubs, reopened with capacity limits earlier this month.

New York: While some regions are entering Phase 4 today, Gov. Andrew Cuomo broke the news earlier this week that gyms, casinos, malls, and movie theaters will need to wait a little longer while other states volunteer as the guinea pigs. 

How did businesses react? 

Some placed new orders for extra PPE. Starting today, MGM Resorts will require all guests and visitors to wear masks. And in a recent memo to employees, Delta’s CEO doubled down on a policy that all travelers must wear masks on flights, adding that the airline has already banned some customers who didn't comply.

Others are avoiding germs altogether. Yesterday, Apple said it’s re-closing 14 stores in Florida, in addition to the 18 it’s already shut back down across Texas, Arizona, and the Carolinas. Disneyland also announced it’s delaying a planned July 17 reopening as it waits for California state approval.

Zoom out: The CDC said yesterday that for every reported case of COVID-19, there are 10 others we don’t know about. 

See if cases are rising in your state.

MEDIA

LeBron Raises a King’s Ransom

Basketball star LeBron James and his business partner Maverick Carter have raked in $100 million for their new media company, SpringHill, according to Businessweek.

• Investors include Guggenheim Partners, UC Investments, and the content company of Elisabeth Murdoch, who will join Serena Williams and others on SpringHill’s board. 
• LeBron is the chairman of SpringHill, and Carter is the CEO.

The backstory: goes wayyy back. LeBron and Carter were childhood friends in Akron, OH. SpringHill is named after the Akron apartment complex where LeBron and his mother moved when he was in sixth grade and his first Sports Illustrated cover was just five years out.

SpringHill’s pitch: With the daily business newsletter market cornered, SpringHill opted for what Businessweek describes as “part Disney storytelling power, part Nike coolness, and part Patagonia social impact.” 

The pair say they aim to use SpringHill to empower people of color to tell their stories. During the pandemic, Carter pushed forward production deals with Disney and Netflix, and last month SpringHill collabed with Laurene Powell Jobs’s XQ Institute to create the star-studded Graduate Together event.

Looking ahead...SpringHill's 2021 Space Jam sequel starring LeBron. 

STIMULUS

I Sent Checks to Dead People

$1.4 billion worth of stimulus checks was sent to more than 1 million dead Americans, a congressional watchdog said yesterday. 

• That happened partially because the Treasury’s Bureau of the Fiscal Service, which was in charge of sending out stimulus checks, didn’t have access to the Social Security Administration’s set of death records.  

So who is this watchdog that would dare hold the government accountable? The Government Accountability Office (GAO), which released a 403-page report evaluating Washington’s response to the COVID-19 pandemic. The conclusion: room for improvement.

• The GAO knocked the Small Business Administration for dragging its feet in complying with its investigation and for not addressing fraud risks stemming from the Paycheck Protection Program. 
• It also said the CDC’s initial COVID-19 tests had “accuracy and reliability issues” that hurt the U.S.’ early response. 

Big picture: As the economic recovery takes shape (or doesn't), there’s going to be an intensifying battle on Capitol Hill over the next stimulus package. The GAO will expect better oversight.

SPONSORED BY FIDELITY

The ETF Game Has Changed

Just how, you ask? Drumroll, please. 

For the first time ever, Fidelity is offering actively managed equity ETFs (exchange-traded funds).* 

They’ve launched three new funds that can help you pursue outperformance while still getting intraday trading benefits and the tax-efficiency potential of a traditional ETF.

In other words, if you’ve been looking for a flexible option that allows you the opportunity to beat the benchmark, this is it.

And as these volatile times keep everyone on their toes, active management can matter more than ever.

Bottom line: Fidelity’s active equity expertise and global research insights are now powering ETFs.

Learn more about Fidelity’s new active equity ETFs.**

_{*These ETFs are different from traditional ETFs. This may create additional risks for your investment. Read about the risks at Fidelity.com/ActiveETFRisks.}

BEAUTY

Unilever Pulls the Rebrand Lever

Yesterday, consumer goods giant Unilever said it would change the name of its skin-lightening cream Fair & Lovely and scrub words such as “fair” and “whitening” from its products. 

The backstory: Fair & Lovely is popular in South Asian countries such as India, Pakistan, and Bangladesh. It generates a) over $560 million in revenue per year and b) heaps of criticism for promoting beauty ideals that suggest lighter skin is more desirable.

• Fair & Lovely advertising had often highlighted before-and-after changes in skin tone, as well as shade guides indicating “improvement.” It discontinued those practices last year. 

Criticism of the brand intensified in recent weeks with the resurgent #BlackLivesMatter movement. Two online petitions calling for the line to be discontinued notched more than 18,000 signatures. 

Zoom out: Unilever’s competitors are also under scrutiny. Johnson & Johnson recently stopped selling products that were advertised as dark-spot reducers but used as skin-lighteners. And Nivea has a product line called Natural Fairness, which claims to “prevent the darkening of skin tone.”

CLIMATE

Because the 'Bezos Center' Is Boring...

Amazon has secured the naming rights to the main hockey/basketball arena in Seattle and is going to call it...drumroll please...the Climate Pledge Arena.

• Amazon cofounded The Climate Pledge in 2019, aiming to be net zero carbon across its businesses by 2040.
• The arena will feature several sustainability initiatives, including using recaptured rainwater as the ice for hockey games.

We need your help: There are so many jokes to made here it's a bit overwhelming. Reply with your punchlines and we'll feature the best on our Twitter later in the day. 

QUIZ

It Is What It Quiz

Does "disgorgement" mean anything to you? If so, you're probably on your way to at least one correct answer in our weekly news quiz. See if you can go 5/5 .

WHAT ELSE IS BREWING

• The Fed found in its annual "stress test" that the U.S.' largest banks were strong enough to handle a major downturn, but it still put a cap on dividends and share buybacks in Q3. 
• Banks were handed some other good news yesterday, when regulators said they'd implement bank-friendly changes to the Volcker Rule.
• Verizon is pulling ads from Facebook and Instagram until Facebook can "create an acceptable solution that makes us comfortable."
• Nike posted a surprising quarterly loss.
• Wirecard, the collapsing German payments firm, completed its collapse yesterday. It owes creditors almost $4 billion.
• Ford revealed its new F-150, including a hybrid version. 

SPONSORED BY WEWORK

Go back to an office that works for you. WeWork can help you evolve your workplace strategy to balance factors like office density, health and safety, shifting goals, and employee happiness. They’ll get a plan in place that works for you, your company, and whatever the future holds. Learn how WeWork can help your workplace adapt .

BREW'S BETS

Take a focus quiz: Get a personalized blueprint on how to scratch your distraction itch by completing a quick 10-question assessment of your work behavior. 

Tips for glasses wearers: How to keep your frames from fogging up when you’re wearing a mask and a hack for attaching masks directly to your glasses

Who to follow Friday...

• TikTok: This artist knows exactly what to do with a wine spill, this guy reviews grass, and is walking across the entire U.S. On the brand side, Discovery, the Washington Post, and the NFL have all gone viral. 
• Instagram: steveexplains for meme explainers, The Chart Guy for econ graphs, and Seb Lester for mesmerizing calligraphy.
• Twitter: Here are 20 finance accounts we follow.

FRIDAY PUZZLE

Name five two-digit numbers that are evenly spaced out—like 32, 34, 36, 38, and 40—in which all 10 digits from 0 to 9 are used once each. 

FRIDAY PUZZLE ANSWER

There are four possible sets of numbers:

• 10, 32, 54, 76, 98
• 18, 36, 54, 72, 90
• 50, 61, 72, 83, 94
• 54, 63, 72, 81, 90

(Source)

** A Note From Fidelity

Before investing in any exchange-traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.

Fidelity Brokerage Services LLC, Member NYSE SIPC

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