Quartz Daily Brief—Argentina’s last gasp, Russia’s double trouble, IPO bonanza, the next Zumba
Good morning, Quartz readers!
What to watch for today
A challenge to South Korea’s president. Special elections could turn Park Geun-hye’s parliamentary majority into a minority, torpedoing her ability to push through stimulus measures for the struggling economy. But it doesn’t look good; her approval ratings dropped after the Sewol ferry tragedy in April.
Argentina’s last gasp. Latin America’s largest economy will default on its debt at close of business, for the second time in 12 years, unless negotiators in New York can either negotiate a settlement, or repay the ”holdout” investors who are suing for full repayment on their bonds. A default could wipe out its foreign reserves.
The interest rate debate picks up again. A change in monetary policy is unlikely at this month’s policy meeting of the US Federal Reserve—Fed chair Janet Yellen told lawmakers it won’t happen until the economy recovers further (paywall)—but investors will be looking for clues about future tightening. Watch the gold price.
Synchrony Financial reels in the big bucks. With 25 companies going public in the US this week—the most in 14 years—General Electric’s North American consumer finance arm is expected to raise over $3 billion by selling 125 million shares, making it the biggest US debut this year.
Barclays feels the dark pool effect. The UK bank’s earnings call will likely emphasize its less risky retail banking business. Its investment banking side could see a drop in trading revenues after a scandal over its “dark pool” trading arena that has caused brokers to cut ties with the firm (paywall).
While you were sleeping
Double trouble for Russia. Just hours after the European Union agreed to broaden sanctions on Russia for its support of separatists in Ukraine, targeting the financial, defense, tech and energy industries in its widest set of sanctions yet, the US followed suit.
Gang violence plagued Xinjiang. News reports came out about a gang wielding knives and axes that attacked civilians, a police station and government offices on Monday, in a region of China with a history of ethnic violence. Although 13 people have been killed, details are sparse.
Israel knocked out Gaza’s only power plant. As part of a larger effort to target Hamas’s infrastructure and symbols of power, Israel carried out 60 airstrikes, killing 100 Palestinians and destroying a fuel tank that forced the power plant to shut down. It has targeted the power plant in previous campaigns too.
Twitter and New York Times earnings were on opposite spectrums. The newspaper’s shares opened lower after the company reported weaker-than-expected quarterly results. On the other hand, Twitter shares went up 35% after its monthly active users and ad revenue blew past estimates.
Ebola took the life of another doctor. Sheik Umar Khan, the doctor leading Sierra Leone’s fight against the virus, fell victim to it after treating 100 patients. The out-of-control outbreak has killed over 670 people, including the top Ebola specialist in Liberia, and infected two American healthcare workers. Also not good: People in rural areas are terrified of foreign doctors.
The Arab Summer heated up. At least 30 people died in Benghazi in a battle between government special forces and Islamist fighters. The last two weeks have beeen the most violent since the ousting of Muammar Gaddafi, while Syrian rebels detonated a bomb in Aleppo’s tunnels, killing at least 13 soldiers.
Quartz obsession interlude
Matt Phillips on how the Family Dollar/Dollar Tree merger embodies everything wrong with American capitalism. “The fact that these poor Americans—and the retailers that serve them—are doing so badly attracted the attention of some of the richest and best-connected investors in the world. Funds associated with the activist investors Nelson Peltz and Carl Icahn have snapped up significant chunks of Family Dollar in recent months—as has the hedge fund manager John Paulson.” Read more here.
Matters of debate
Why is Israel losing a war it’s winning? Even though it’s winning the battle of rockets and tunnels, it looks like a sore loser.
Modinomics is off to a bad start. India’s new prime minister’s attempt to stop a trade deal isn’t helping the economy.
A British-born comedian has a lot to teach the US about serious issues. John Oliver’s perspective goes a long way.
Wall Street doesn’t understand Twitter. Wildly divergent reactions to fairly similar earnings reports show investors just don’t know how to think about it.
We should plant more trees in cities. They filter out pollution and even help city dwellers cope with stress.
Parenthood is unethical. The only way to spare your children pain is not to have them in the first place.
Surprising discoveries
The Mars rover Opportunity broke a record. It’s driven 25 miles (40km), further than any off-Earth vehicle in history.
Intergenerational trauma might be passed on by smell. That’s the result of a study involving a lot of scared mice.
One-third of Apple engineers may be Indian. A growing dependence on outsourcing is responsible, according to a research firm.
The next hot group fitness class could be inspired by Dutch speed-skaters. It has all the signs (paywall) of becoming the next Zumba.
New York’s smallest piece of private property is a 500-square-inch triangular concrete slab. It’s dedicated to not being a public space.
Police can use “smart roofs” to help them fight crime. A network of rooftop sensors spread across the city can pinpoint where shots were fired.
Our best wishes for a productive day. Please send any news, comments, tiny property listings, and group fitness class ideas to [email protected]. You can follow us on Twitter here for updates throughout the day.