COVID-19

Hope You Remember How to Flatten the Curve

It may be July, but we're getting distinct March vibes. Businesses are shutting down, Dr. Fauci’s warning of an alarming rise in cases, and the NBA playoffs are just weeks away. 

Fauci speaks

The nation's top infectious disease expert told a Senate committee the U.S. could see 100,000 new cases of COVID-19 daily if behaviors don't change. 

• Currently, the U.S. is reporting around 40,000 new cases a day, mainly across the South and the West.
• That figure has climbed sharply recently. The NYT calculates that the number of new cases has grown 80% in the past two weeks. 

Deaths from COVID-19 are still going down, but that could change as time goes on and hospital beds run on short supply. It's "going to be very disturbing, I guarantee you that," Fauci said about fatalities. 

Limiting the spread

Governments inside the U.S. and out have taken steps to keep the virus from spreading beyond hotspots. For the first time in months, the EU is opening its borders today to 15 countries...but visitors from the U.S. (and Brazil, Russia, and more) are not allowed because of their COVID-19 situation.

New York, New Jersey, and Connecticut, states that "went through hell" early on in the pandemic, are not keen on going back. Yesterday, they doubled their list of quarantine-restricted states to 16, and this week New Jersey pushed back its reopening of indoor dining.

Speaking of delaying reopening...that's the policy move du jour. Late Monday, Arizona followed recent moves by Florida and Texas in closing some businesses including bars, which Dr. Fauci said yesterday are "really not good, really not good." Los Angeles has closed beaches and banned fireworks displays for the upcoming July 4 weekend.

Big picture: It's unclear what the spike in new cases means for the economy. While we could expect a second wave of job losses, just yesterday Fed officials maintained that the worst of the damage is over. What it all comes down to is how successfully we limit the spread of the virus. 

RETAIL

Karen Is Out at Adidas

Yes, an actual person named Karen. Adidas’s head of human resources, Karen Parkin, stepped down yesterday after facing criticism for failing to address issues of racism and discrimination at the apparel company. “It has become clear to me that to unify the organization it would be better for me to retire and pave the way for change,” she said in a statement.

Parkin reportedly characterized racism as “noise” exclusive to North America and not something that affected the larger company, which is based in Germany. Evidence points otherwise. 

• Last year, a NYT investigation showed Adidas courted Black athletes, celebrities, and customers...yet did little to address the lack of diversity in its workforce and leadership.
• Employees have accused Adidas of dismissing their complaints of racism and considering designs based on racist stereotypes and the Confederate flag.  

When Adidas released a social media post condemning racism during recent protests, Black employees were quick to tell the company to look in the mirror. 

Looking ahead...Adidas has promised to give $120 million to causes addressing racial inequality, fill 30% of new U.S. jobs with Black and Latinx workers, and create scholarships for Black students.

JOBS

Microsoft Recruits a New Class of LinkedIn Heroes

Yesterday, Microsoft announced an initiative to train 25 million people around the world for digital jobs—or as they're called in the pandemic era, jobs.

Participants will get free access to Microsoft, LinkedIn, and GitHub learning programs in addition to $15 certifications and tools to find open positions. The program will focus on funneling workers into in-demand roles poised for growth, including IT support, digital marketing, and graphic design.

• Microsoft is backing the program with $20 million in grants for nonprofits, $5 million of which is earmarked for organizations serving communities of color in the U.S.

The backstory: While employers have been shelling out on parfait bars for the office, Microsoft says there's been a decline in corporate training. Which is why it's also launching a new app to help employers upskill their workers.

• In recent weeks, other corporations including Bank of America and Walmart have set aside funding for job training and reskilling.

Zoom out: While online learning platforms like Coursera have become increasingly popular, many businesses continue to lean on traditional degree programs or work experience when hiring.

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CLIMATE

Democrats Release Beach Read to Save Beaches

We're going to assume the 547-page climate change plan House Democrats released yesterday isn't supposed to be printed out.

In addition to the goal of net-zero emissions by 2050, the plan includes...

• Other deadlines, including eliminating pollution from cars (2035), power plants (2040), and new commercial/residential buildings (2030).
• Investment: Doubling public transportation funding and transitioning fossil fuel-dependent communities to other industries.

The plan also intertwines climate policy with racial justice, calling for investments in communities of color disproportionately affected by climate change. 

Get ready for a fight 

Climate proposals are quick start kindling on Capitol Hill, and not just between parties. If this is the most ambitious climate plan Democratic leaders have submitted...it's because they distanced themselves from the way more ambitious Green New Deal some in the party introduced last year.

Big picture: Democrats will use tough climate policy as a sticking point against Republican candidates this election season. Republicans, who were left out of the report's creation, will counter with accusations of partisanship.

ECONOMY

Wear a Mask, Save $1 Trillion

In what sounds like a fun college research project but is actually a matter of critical national importance, Goldman Sachs tried putting a number on the effect of face masks on the U.S. economy.

The results: A national policy requiring face coverings could prevent a 5% hit to national GDP, the bank's chief economist wrote. How? 

• Mask mandate → more people wearing masks → fewer cases of COVID-19 → no need to close businesses again.
• Goldman said mask-wearing could partially substitute for those closures, which it projects would knock 5% from GDP.

Mandates work. In its research, Goldman found that the share of people who say they "always" or "frequently" wear masks jumped by 25 percentage points in the 30 days following a state mask mandate. 

Zoom out: Despite research showing masks help stop the spread of the virus, they've become a politicized accessory. Sen. Lamar Alexander, a Republican, kicked off a hearing yesterday by asking President Trump to wear a mask to set an example.

Maybe he's thinking of the lions outside the New York Public Library, which were just outfitted with masks of their own.

Jonathan Blanc/New York Public Library

WHAT ELSE IS BREWING

• Facebook removed accounts associated with the antigovernment “boogaloo” movement, saying they promoted violence.
• Airbus announced plans to cut 15,000 jobs as part of its biggest restructuring ever.
• The FDA laid out its final guidance for developers of a coronavirus vaccine.
• Google acquired smart glasses startup North.
• YouTube TV jacked up its subscription price to $64.99.
• Morning Brew recaps the first half of the year. Yes, this Morning Brew.

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Essential tips: Here are some things our team featured this week in The Essentials, our recommendations newsletter:

• A Twitter thread about how birds breathe and a T.Swift quiz from Toby
• Jamie swears by this swiss chard salad recipe and Tycho set
• Halie recommends an entire site about McMansions and to read The Vanishing Half by Brit Bennett
• For more,

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FROM THE CREW

What powers Morning Brew, you ask? Coffee and our wonderful brand partners. To help us support our partners and ensure we're providing the best possible experience for Brew readers, we've got a super short survey for you to fill out. It won't take long, but will go a long way. You can . Thanks!

CORPORATE GEOGRAPHY TRIVIA

Let’s see how well you know the locations of corporate headquarters around the country. 

Farther north: Microsoft HQ or L.L.Bean HQ 

Farther west: Home Depot HQ or General Motors HQ

Farther south: Comcast HQ or Twitter HQ

Farther east: Walmart HQ or Target HQ

ANSWERS

From the top...USMCA stands for the United States-Mexico-Canada Agreement, a free trade deal that's replacing NAFTA. 

Trivia...

Microsoft (Redmond, WA) is north of L.L.Bean (Freeport, ME)

Home Depot (Atlanta) is west of General Motors (Detroit)—yes, really 

Twitter (SF) is south of Comcast (Philly)

Target (Minneapolis) is east of Walmart (Bentonville, AR)