Good morning from the Financial Times.

Today is Tuesday, August 11th,

and this is your FT News Briefing.

Is the gig up for Uber and Lyft in California, and the Federal Reserve shot down an appeal by

Goldman Sachs over capital reserves. Plus, was Sweden's relatively lacks coronavirus

response as bad as many people thought.

I'm Mark Filipino, and here's the news you need to start your day. A judge in California ruled yesterday that Uber and Lyft must classify their drivers as employees.

The F.T.'s Dave Lee explains how this ruling might create some real challenges for all

sorts of companies that rely on so-called gig workers.

On the part of the gig economy companies and it's not just Uber and Lyft it's worth saying

it's others like DoorDash and Instacart and all these companies that have built these huge businesses.

The reason why they're defending it so vigorously is because their business model relies on these people not being

employees they'd have to pay health care they'd have to pay sick pay and an added

benefits it's going to require some significant changes to those models and perhaps lose that edge that

gig economy companies have had when it comes to pricing and flexibility and so

forth. Now the people calling for these changes for making drivers employees.

The people of California, it's the California State Attorney and the city

attorneys. They're saying, you know, this is just if you're working for a company in California you're

afforded a certain set of rights and Uber and Lyft and other gig economy companies are

flouting those laws and not giving employees things that they need.

Now this has become an even more intense debate of course because of COVID-19 where you have

Uber drivers suddenly not able to work as much whether for their own safety or just because demand has

...