👋 Morning! I’m your Axios Markets host for the next few days, while Dion enjoys some time off.
In keeping with Dion's tradition, here's a quote — see who said it and why it matters at the bottom: "The sun don't shine forever, but as long as it's here, then we might as well shine together."
Illustration: Aïda Amer/Axios
As legislation moves forward to give 12 weeks of paid parental leave to civilian federal workers, corporate America is feeling pressure to follow suit — or at least offer sweeter policies.
Why it matters: The U.S. is the only industrialized country that doesn't mandate paid leave for new parents. While there are federal rules about unpaid leave, most companies set their own rules, with an eye toward their bottom lines.
Driving the news: After the House approved the bill on Wednesday, the Business Roundtable, a group of CEOs whose companies employ more than 15 million, wrote letters urging Congress and President Trump to make paid family leave — a broader category than parental leave — available to "as many working Americans as possible."
By the numbers: Just 16% of private employees in 2018 had access to paid family leave, which includes maternity and paternity leave, according to the latest data from the Bureau of Labor Statistics. That's up from 10% in 2010.
Between the lines: One reason corporations might push for federal legislation rather than act on their own "could be that it saves them from having to bear the costs of the policy," Aparna Mathur, director of the AEI-Brookings Project on Paid Family and Medical Leave, tells Axios.
The big picture: The tight labor market — with the unemployment rate at a 50-year low — puts workers in a bargaining position.
Where it stands: Only a handful of companies — primarily corporate giants — offer anything nearly as rich as what the government is poised to pass.
Fewer women who want a job, but have given up looking for work, are citing "family responsibilities" as the reason.
What's going on: Women in general are hopping back into the labor market at a faster rate than before. Part of the reason behind the drop in those would-be workers citing "family responsibilities" could be employers are forced to be open to more flexible work arrangements in the tight labor market.
Of note: "When a firm is offering [a parental leave] benefit, not all their employees are getting it," Liz Peters, a fellow at the Urban Institute, tells Axios.
"Celebrate Boris!" President Trump tweeted this morning, touting the potential for a post-Brexit U.S.-U.K. trade deal. Photo: Steve Parsons-WPA Pool/Getty Images
Central bankers, economists and market watchers say the U.S.-China trade war and Brexit are the biggest headwinds to the global economy — and are uncertainties that largely remain despite developments on Thursday.
Driving the news on China: President Trump has reportedly signed off on an agreement that would tamper down — but not end — the trade war.
Driving the news on Brexit: British Prime Minister Boris Johnson won the U.K. election comfortably and he’s “now set to steer the U.K. through what should be a crucial five years for the country,” Axios’ world editor Dave Lawler reports.
The big picture: Deadlines have come and gone for the trade war and Brexit without moving closer to a solution. Corporations are fleeing the chaos — making moves like shifting supply chains — instead of waiting around for Brexit and the trade war to clear up.
Regulators won’t clear Boeing’s 737 MAX to fly until at least February — meaning the plane will be grounded even longer than the company planned. (Reuters)
The Federal Reserve consistently underestimated the labor market’s potential. (New York Times)
Deutsche Bank is considering a 20% cut to employee bonuses as the bank looks to rein in costs. (Bloomberg)
U.S. businesses now have more debt than American households, according to data released by the Fed on Thursday.
Why it matters: It’s the first time corporate borrowing levels has clipped that of households in 28 years and “a potential warning sign for the economy as corporate investment softens,” Bloomberg reports.
Between the lines: Businesses investment “has historically climbed when borrowing rose.”
Photo: Daniel Roland/AFP via Getty Images
Christine Lagarde is officially a central banker. But don't label her a dove or a hawk:
"My ambition is to be this owl ... [which is] associated with a little bit of wisdom."— ECB President Christine Lagarde speaking to reporters on Thursday
If you guessed Sean Combs aka Diddy — the world's 3rd wealthiest hip hop artist — you're right.