Evening Briefing

The biggest banks are planning on lots of bad loans. JPMorgan, Citigroup and Wells Fargo set aside almost $28 billion in the second quarter, a mark only surpassed by the last three months of 2008. The total was higher than analysts expected, with all three lenders saying their economic outlook had deteriorated as the coronavirus rages unchecked across America. All of that Congressional bailout money simply delayed the debt tsunami Wall Street sees coming. As for the V-shaped recovery everyone was talking about? Forget it. —David E. Rovella

Here are today’s top stories

A potential new coronavirus surge this winter poses a serious risk to the U.K. and could lead to as many as 120,000 hospital deaths from September to June. For now, face coverings will be compulsory in England retailers beginning July 24. Hong Kong imposed its strictest social distancing measures yet, while Japan said a new state of emergency is possible and the Australian state of Queensland imposed a quarantine on some visitors. In the U.S., the global epicenter of the pandemic, Texas and Florida infections continue to break daily records and death rates are climbing faster. Arizona, California and Montana are also seeing spikes in infections and hospitalizations.

According to U.S. government researchers, Moderna’s potential Covid-19 vaccine produced antibodies in all patients tested in an initial safety trial. While that doesn’t prove the vaccine will be effective, it’s considered an important early step in testing.

Here is Bloomberg’s exhaustive, freshly updated list of potential coronavirus treatments and vaccines currently under development.

The Trump administration folded after Harvard, MIT and 17 states sued over its effort, announced only last week, to force international students to attend in-person classesor be sent back to their home countries.

China will impose unspecified sanctions on defense contractor Lockheed Martin after the U.S. approved a possible $620 million deal to supply missile parts to Taiwan, another in a series of punitive actions in the new Cold War between the two nations. President Donald Trump later said he would end Hong Kong’s special status with the U.S., following Beijing’s new crackdown on civil liberties there.

Pankaj Mishra writes in Bloomberg Opinion that Trump and some of his critics are warning of the end of free speech, in the form of “cancel culture.” But Mishra asks whether what’s really going on is that diverse voices and rich conversations are threatening the prerogatives long enjoyed by the famous and powerful.

What you’ll need to know tomorrow

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The Shrink Next Door’s Other Patients

In the almost three decades that Marty Markowitz was a patient of Ike Herschkopf, aka “The Shrink Next Door,” he got to know a handful of Ike’s other patients. They were the ones who thought themselves part of Ike’s inner circle—“the familia,” as an ex-patient called them—the ones Ike invited to summer parties he threw at Marty’s house in the Hamptons. In researching “The Shrink Next Door,” Bloomberg’s Joe Nocera contacted many of these former patients, and some of those who were willing to be interviewed told him Ike stories eerily similar to that of Marty. These are just some of them.

Marty Markowitz poses with his sister Phyllis Shapiro in the driveway of his Southampton vacation home. The siblings were estranged for decades while Marty was under the care of Dr. Isaac Herschkopf; they have since reconciled.

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