Quartz Daily Brief—Congress averts shutdown, KFC’s China struggles, JPMorgan’s $22B shortfall, flipping Scotland Yard
Good morning, Quartz readers!
What to watch for today
France tries to cut red tape. Francois Hollande’s unpopular government will unveil a new bill that will let businesses stay open on the weekend, resolve firing disputes more quickly, and reduce regulations for lawyers and constructions firms. The structural reforms are needed to secure an EU reprieve on France’s missed budget targets.
Wall Street bets on a peer-to-peer lending company. LendingClub’s IPO will be priced before trading starts on Thursday. The firm, the largest of its kind, has enabled $6 billion of loans since 2007, and expects to raise as much as $929 million.
Jakarta grinds to a halt. Four trade unions representing millions of employees are staging a two-day strike over seven demands, including raising the country’s minimum wage and eliminating outsourcing by state-owned companies.
British construction continues to pay out. Ashtead, a construction equipment rental company, reports fiscal second-quarter results (paywall) amid a construction boom; shares in the company have gained 60% in value this year and are up 14-fold over the past five years. In related news, the UK is facing a severe bricklayer shortage.
Malala Yousafzai picks up her Nobel Peace Prize. The 17-year old who was shot by the Taliban for daring to advocate for a woman’s right to an education will become the youngest recipient ever. She’s sharing it with Indian children’s rights activist Kailash Satyarthi.
While you were sleeping
The US averted a shutdown, for a few months at least. House and Senate leaders agreed to finance most of the government’s spending through September, 2015. But a provision to fund homeland security was only approved through February—Republicans want to use it as leverage to fight the White House’s executive order on immigration.
JPMorgan Chase is $22 billion short under new US rules that aim to increase capital requirements for systemically important banks. The Federal Reserve accidentally let slip (paywall) that the bank was responsible for the entire shortfall, which it had previously said was shared between eight banks.
China’s prices are stagnant. The producer price index dropped 2.7% in November from a year earlier, marking the 33rd consecutive month of declines. Consumer price growth slowed too, rising just 1.4% in November from a year earlier, down from a 1.6% rise in October.
Yum Brands lowered its outlook on weak China sales. The KFC and Pizza Hut owner cut its 2014 and 2015 earnings forecasts, as it struggled to win back customers in China—which accounts for more than half (paywall) of its sales—after a July food safety scandal.
The US Senate published its report on CIA torture. The “brutal” interrogations often produced “fabricated” information, said Senate intelligence committee chair Dianne Feinstein. The report (pdf), which describes some pretty gruesome practices, concluded that the CIA repeatedly misled the president, Congress, and the public.
Quartz obsession interlude
Gwynn Guilford on the environmental impact of your next vacation. “Some 20 million people board cruise ships every year. And while they might return to land with fond memories of umbrella drinks and shuffleboard, they leave a lot at sea. About a billion tons of sewage, in fact.” Read more here.
Matters of debate
“Non-profit” charter schools are a scam. Many in the US pass on their revenues to private companies.
Chipotle is killing McDonald’s. ”Fast casual” restaurants combine fast-food service with actual food.
“Chinese wisdom” is a myth. It’s Beijing’s diplomatic code for rejecting all Western ideas.
The Hunger Games has it wrong. Eradicating the enemy isn’t the best strategy.
Torture didn’t help the US get Osama bin Laden. His death occured despite “enhanced interrogation,” not because of it.
Surprising discoveries
A Harvard professor went to war over $4. He threatened a lawsuit over a takeout Chinese menu price discrepancy.
Hip-hop’s royal couple met Will and Kate. Beyonce and Jay Z entertained their fellow royals at a basketball game.
Even the UK police are playing the London real estate boom. Scotland Yard flipped its headquarters for a 6x profit.
Social media saves lives. The UN restarted a Syrian refugee food program with a $1.8 million hashtag fundraiser.
Click here for more surprising discoveries on Quartz.
Our best wishes for a productive day. Please send any news, comments, Chinese menu discrepancies, and Will-Kate-Jay-Bey transcripts to [email protected]. You can follow us on Twitter here for updates throughout the day.