#Apple’s iPhone slump, Kerry in Manila, #Starbucks fedoras

Good morning, Quartz readers!

WHAT TO WATCH FOR TODAY

The Philippines and the US talk about the South China Sea. In Manila secretary of state John Kerry will encourage Philippine president Rodrigo Duterte to engage in dialog and negotiations with Beijing over the contested waterway. Tensions have increased after an international tribunal ruled heavily against China’s sweeping claims to the strategic waterway.

The Federal Reserve holds off on a rate hike. Market volatility and uncertainties around Brexit will play a role as the US central bank is expected to keep interest rates stable. A rate hike could still happen as early as September.

Facebook’s quarterly results. Platforms like Instagram and Messenger are expected to drive the social media giant’s revenue and earnings. Analysts expect user growth of 15.3% from a year ago. Soft drink companies Coca-Cola and Dr Pepper Snapple also report earnings.

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European households have accumulated more than €10 trillion in savings accounts. However, many investors fail to take advantage of the highest interest rates available and earn virtually no return on their money. Increased awareness around European interest rates could help optimize savings and increase returns for savers. Here are a few ways investors can benefit from higher interest rates.

WHILE YOU WERE SLEEPING

Hillary Clinton officially became the Democratic nominee for US president. Her husband Bill called her the “best change-maker I have ever known” on an historic night that saw a woman nominated to lead a major-party presidential ticket for the first time in the nation’s history. Now comes the hard part.

Apple’s iPhone slump got worse. Quarterly profit plunged by 27% and revenue was down by 14.6% as smartphone sales slowed, especially in China. But the results weren’t quite as ugly as Wall Street expected, sending Apple shares higher in after-hours trading.

Twitter disappointed investors again. The social media firm (remember when it was called a “microblogging” service?) missed quarterly revenue targets and warned of more trouble to come. Twitter shares were down 9% in after-hours trading, and if CEO Jack Dorsey can’t end this slump a sale may become inevitable.

LeEco bought Vizio for $2 billion. The Chinese streaming video company will operate the California-based flatscreen TV maker’s business as a subsidiary, but will spin off its data business into a new private company. LeEco’s billionaire founder Jia Yueting wants his company to be the Netflix, Apple, and Tesla of China.

QUARTZ MARKETS HAIKU

Apple earnings plunged
iPhones aren’t selling well
But better than feared

QUARTZ OBSESSION INTERLUDE

Ananya Bhattacharya on the robot that’s helping the disabled feed themselves: “Obi includes a placemat with a dinner-plate-sized dish with four compartments on top, which mount onto a white platform. Attached to one side of the sleek, white platform is a robotic arm fitted with a spoon. Once placed on a table in front of the recipient, a caregiver can grasp the arm and teach Obi the delivery location.” Read more here.

MATTERS OF DEBATE

Russia will field the cleanest team in Rio. The International Olympic Committee is subjecting Russian athletes to a rigorous testing program.

America shouldn’t drop the Trans-Pacific Partnership. Despite opposition at home, Asian allies would see it as a betrayal.

China’s anger at the treatment of its journalists in India is stunningly hypocritical. Beijing has a long history of expelling and censoring foreign journalists.

SURPRISING DISCOVERIES

Lufthansa is selling airline tickets on Airbnb. The airline is willing to try just about anything to turn its business around.

Latvian women and Dutch men are the tallest people in the world. The US has been dropping in height rankings, suggesting a major public health problem.

Political turmoil is good for pizza delivery. Civil unrest and protests are making Americans more interested in ordering in.

The US Navy used Pokémon Go as a recruitment tool. It later retracted the ads, admitting they weren’t quite in line with its mission.

Starbucks baristas are now allowed to wear fedoras. It’s part of a corporate move to improve employee morale.

Our best wishes for a productive day. Please send any news, comments, political pizza, and barista fedoras to hi@qz.com. You can download our iPhone app or follow us on Twitter for updates throughout the day.

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