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Joe Biden could be the FDR of climate change

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Today's Agenda

Maybe not the change agent you'd expect.

Photographer: Alex Wong/Getty Images North America

Biden Is Ambitious on Climate, and Rightly So

In the middle of a health crisis and an economic crisis, it's easy to forget both are nested inside the even broader crisis of a rapidly warming planet, like a Matryoshka doll of existential nightmares.

Unfortunately, the current occupant of the White House has been actively opposed to addressing the climate. But his mishandling of the other two crises makes it increasingly likely he'll be replaced by Joe Biden, who has just released a surprisingly serious plan for overhauling America's energy consumption, writes Bloomberg LP founder and majority owner Michael Bloomberg. It's designed not only to cut carbon emissions to zero by 2035, but also to boost the economy and prepare it for a greener future, with a public-works program inspired by FDR. And fighting global warming may not help the current pandemic, but it could prevent future ones, along with other various disasters. Read the whole thing.

"If the name were not already taken, one might even think of it as a Green New Deal," Mike writes. In fact, Noah Smith points out, Biden's plan borrows some of the best ideas from the aforementioned plan advanced by Bernie Sanders and others to Biden's left. But it leaves out the stuff that weighs the GND down, such as guarantees of jobs and health care. It will still be far more transformative than you'd expect from somebody who has hewed to the center of the party for much of his political career.

Of course, this will be moot if Biden doesn't have a Democratic Senate to pass his plan. But the further Trump falls in the polls, the likelier it is he'll take Senate Republicans down with him, writes Jonathan Bernstein. At stake is how many more of these crises we'll have to endure.

Give Us a Sign, Any Sign

Recessions always inspire quirky new economic indicators, from hemlines to baked-bean sales. But this one is so unusual, so fast-moving, so wedded to the coronavirus pandemic, that it has inspired a particularly brisk trade in weird data. Mohamed El-Erian, Jim Bianco, Tim Duy, Conor Sen and Scott Kominers share the tea leaves they're consulting, from restaurant reservations to mobility data.

So far, so not great:

Bank earnings, which just wrapped up for the latest quarter, are another useful window on the economy, and maybe even more nuanced, Brian Chappatta writes. What they show is that:

  1. Fiscal stimulus has put cash in consumers' pockets, but also
  2. Banks are bracing for what will happen when the stimulus stops flowing.

Which raises Brian's obvious question: "What if the stimulus doesn't stop?"

Further Economic Reading: Letting businesses deduct the full cost of investments is a cheap way to stoke growth. — Karl W. Smith

Huawei or Another, Gonna Get You

In the new Cold War between the U.S. and China, telecom giant Huawei is starting to look like a casualty. This week, the U.K. reversed an earlier decision to allow China's national champion into its 5G wireless network. President Donald Trump's pressure campaign deserves credit, writes Eli Lake, but got an assist from China itself, which has spooked the U.K. and other potential customers lately with aggression and irresponsibility.

And Huawei will get little sympathy from its neighbors. A U.S. ban on Huawei equipment forced Taiwan Semiconductor Manufacturing Co. to stop making chips for the Chinese company, but Tim Culpan writes its profits haven't suffered a bit.

And India's richest man is building a platform that could challenge Huawei, with some seed money from Silicon Valley, writes Andy Mukherjee — but then he also wants to challenge a bunch of other Chinese companies too, which may be too much to handle.

Further China Reading:

Telltale Charts

Netflix's runaway growth slowed in the latest quarter, because how could it not; but it's still the streaming champ, writes Tara Lachapelle.

Policy makers keep making mistakes partly because they keep forgetting about this pandemic's very long data lags, writes Max Nisen.

Further Reading

Biden can't let teachers' unions prevent needed school reforms once the pandemic ends. — Bloomberg's editorial board

To support Black businesses, support Black venture capitalists. — Gayle Jennings-O'Byrne

Instead of mocking tech-stock valuations, find a better model for valuing tech stocks. — Saku Panditharatne

A grading algorithm is substituting for actual grades for many students, with disastrous consequences. — Cathy O'Neil

Asymptomatic Covid-19 spread may not happen as much as we fear. — Faye Flam

ICYMI

Russians are apparently trying to steal Covid-19 vaccine research.

Covid-19 infections are rising in kids and teens.

Anthony Scaramucci wants to see Trump "humiliated."

Kickers

Scientists accidentally create nightmare-fuel fish. (h/t Alistair Lowe)

Twitter is best when verified accounts can't tweet.

When your co-worker does great, tell their boss.

Everything you ever wanted to know about the "Wedding Crashers" football scene.

Note: Please send meatloaf and complaints to Mark Gongloff at mgongloff1@bloomberg.net.

 

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