FINANCIAL TIMES
-Investors have increased their bets on a half-percentage-point interest rate cut by the Federal Reserve next week as the US central bank prepares to lower borrowing costs for the first time in over four years. Traders in swaps markets are currently pricing in a 49% chance that the Fed will opt for a bumper cut to prevent high rates from damaging the economy. The reassessment helped send stocks higher, pushing the S&P 500 and the Nasdaq Composite to their biggest weekly advances this year, for gains of 4% and 6%, respectively. Mark Dowding, chief investment officer at RBC BlueBay Asset Management, said a half-point cut was now "very much in play" after being almost entirely priced out at one point on Thursday.
-Donald Trump's close association with Laura Loomer, a far-right activist and social media personality, has raised concerns among Republicans that his White House bid has taken a self-defeating turn towards the political fringes. Trump's debate against Kamala Harris on Tuesday led to him veering off course to air conspiracy theories about the 2020 election and immigrants eating pets. The concerns have been compounded by concerns that Loomer is influencing Trump's thinking at a crucial stage in the campaign. The 31-year-old activist, who has propagated 9/11 conspiracy theories, was seen exiting Trump's plane in Pennsylvania before the debate and was with him at remembrance ceremonies for the September 11 2001 terrorist attacks in New York. Republican strategist Brendan Buck believes Trump is increasingly surrounded by sycophantic people who will tell him anything he wants, and he is getting further detached from reality.
-China's industrial output and retail sales experienced a decline in August, with industrial output growing at the slowest pace since March and retail sales having their second-slowest month of the year, according to data from the National Bureau of Statistics. Despite the summer holiday, the economy was generally operating smoothly, but faced difficulties in recovery due to an adverse external environment and insufficient domestic effective demand. Industrial output rose 4.5% YoY, down from 5.1% in July, and retail sales rose 2.1% YoY, against analysts' average forecasts of 2.6%. President Xi Jinping has called for officials to meet the country's annual economic and social development goals, which analysts interpret as urging them to hit the gross domestic product growth target of 5% YoY.
-Sam Bankman-Fried's criminal conviction over the collapse of FTX should be vacated, according to his attorneys. Bankman-Fried's counsel claims that federal prosecutors denied him a fair trial and co-opted former colleagues at Sullivan & Cromwell into gathering evidence for the government. They claim that S&C lawyers worked with prosecutors to charge and imprison Bankman-Fried in ways that far exceeded normal cooperation. Bankman-Fried's lawyers claim that S&C lawyers proactively recommended new areas of inquiry and helped guide prosecutorial strategy, citing a December 2022 email to prosecutors highlighting data that resembled a transfer discussed by Bankman-Fried in Signal chats.
-UK Prime Minister Keir Starmer left Washington after talks with US President Joe Biden, suggesting the US may be willing to change its stance on Ukraine's use of long-range missiles. The meeting ended without an announcement, but there were indications that Biden might allow the UK and France to allow Ukraine to use their Storm Shadow missiles, which rely on American navigational data and technology. Some officials predict Washington will ultimately allow Ukraine to use the American-provided, ground-launched Army Tactical Missile System (ATACMS). The US has been reluctant to provide the weapons despite persistent requests from Ukrainian President Volodymyr Zelenskyy over concerns that their deployment could escalate the conflict with Russia.
-Rupert Murdoch, the 93-year-old founder of the Murdoch media dynasty, is set to face off against his three other children, James, Elisabeth, and Prudence, in a nondescript probate court in Reno, Nevada. Murdoch wants to change the trust he established in 1999, which grants equal voting power over the family businesses after his death. His younger children, Grace and Chloe, have no such voting rights. This move is part of Murdoch's efforts to secure the long-term future of his news outlets, including Fox News, The New York Post, The Wall Street Journal, and The Sun and The Times. Murdoch consolidated control of his publicly traded companies under Lachlan last September and announced his own semi-retirement. Last year, Murdoch also overhauled the family trust to give Lachlan full control of voting power and decision-making upon his death. The trust has large stakes in both Fox and News Corp.
-Springfield, Illinois, is experiencing hysteria due to rumors of Haitians eating ducks and using them for ritualistic purposes. Despite efforts by the mayor and police to dispel these rumors, residents are counting ducks around the town. Aurora Lemkhul, 68, fears that Haitians are eating ducks and disappearing, while Tiffany, 33, believes Haitians nabbed her Yorkie, Desia, a year ago. The town has been beset by white nationalists, disguised by masks, parading through its downtown, urging followers to "reclaim America." The City Hall was evacuated due to a bomb threat.
-Boeing's strike has raised concerns about the company's production goals for the 737 Max and raised the possibility of a cash crunch. The company's chief financial officer stated that it would fight to preserve its investment-grade credit rating, which is crucial to its operations. Losing it would result in a significant increase in borrowing costs due to a $53bn debt load. Options to maintain the rating include securities offerings to secure cash. Around 33,000 workers with the International Association of Machinists District 751 walked out after rejecting a tentative agreement with the company. Boeing's new CEO, Kelly Ortberg, is "personally engaged" in addressing the situation. The company had been building 25 737-Max a month in June and July, with plans to increase to 38 by the end of the year.
-OpenAI has acknowledged that its latest models, known as o1, have increased the risk of artificial intelligence being misused to create biological weapons. The San Francisco-based group's system card, a tool to explain how the AI operates, stated that the new models had a "medium risk" for issues related to chemical, biological, radiological, and nuclear (CBRN) weapons. This is the highest risk OpenAI has ever given for its models. The technology has "meaningfully improved" the ability of experts to create bioweapons. Experts argue that AI software with more advanced capabilities, such as step-by-step reasoning, pose an increased risk of misuse in the hands of bad actors. Joshua Bengio, a professor of computer science at the University of Montreal, said that if OpenAI now represents "medium risk" for chemical and biological weapons, it reinforces the importance and urgency of legislation to regulate the sector.
-Adrian Cheng, the heir apparent to Hong Kong's wealthiest family, has faced criticism for his extravagant projects and his position as successor. New World Development's stock has fallen over 80% due to the slumping real estate market. Cheng's father, Henry, has suggested hiring from outside, raising questions about his successor's status. New World is expected to post its first annual loss in two decades, potentially reaching up to HK$20bn. Cheng believes that patience, consistency, and dedication will help him weather the storm. The Chengs are among a few powerful families dominating Hong Kong's property market, which became one of the world's most expensive due to China's rapid development. Patriarch Henry, estimated to have a net worth of around $17.7bn, is the Patriarch of the Chengs.
-The Biden administration is attempting to close a trade loophole used by platforms like Temu, Shein, and AliExpress to flood the US with cheap Chinese products. These ecommerce groups have used the de minimis exemption to skip paying import tariffs on shipments, which has increased their growth by shipping cheap packages directly to American consumers by air. The White House has proposed new rules that would exclude a wide array of goods from being able to claim the exemptions, extending to shipments of less than $800 in value. The proposed rules threaten the business model that Chinese groups have used to undercut and gain market share from online retailer Amazon.
-Italians are growing restless as global coffee bean prices surge, with prices set to increase by up to two-thirds. The Italian Espresso Institute president, Luigi Morello, said that everyone is nervous and panicking about the price of espresso. Italians drink some of Western Europe's least expensive coffee, paying around €1.20 for an espresso or €1.50 for a cappuccino. Low coffee prices have driven a heavy caffeine habit, with consumer association Assoutenti estimating that Italians and foreign tourists consume 6bn coffees a year at public establishments, generating revenues of €7B. Climate change-induced disruptions in global coffee supply (sic) could force Italians to pay up to €2 per shot of their daily fix.
NEW YORK TIMES
-President Biden and British Prime Minister Keir Starmer discussed the use of long-range weapons in Russia during a bilateral meeting at the White House. The question of whether to allow Ukraine to attack Russia with these weapons was a rare point of contention between allied nations. The decision now facing Biden could be far more consequential than previous concessions by the president that delivered largely defensive weapons to Ukraine during the past two and a half years. The president underscored his support for helping Ukraine defend itself but did not say whether he was willing to do more to allow for long-range strikes deep into Russia. "We're going to discuss that now," the president told reporters. The prime minister noted that the next few weeks and months could be crucial for supporting Ukraine in this vital war of freedom. European officials said earlier in the week that Biden appeared ready to approve the use of British and French long-range missiles, a move that Starmer and French officials have said they want to provide a united front in the conflict with Russia.
-Russia's President Vladimir V. Putin has warned the United States and its Western allies that allowing Ukraine to fire weapons deeper into Russia would put his country "at war" with NATO. Putin's comments came just a day before Prime Minister Keir Starmer of Britain was set to meet President Biden in Washington to discuss lifting restrictions on Kyiv's use of Western-supplied long-range weapons in its war with Russia. In 30 months of war, Ukraine's Western backers have made a series of concessions to Kyiv's war effort, supplying Ukraine with increasingly powerful weapons including tanks, fighter jets, and long-range missiles. Despite previous threats, Putin has yet to bring his war past Ukraine's borders. In his comments, Putin said the West would have to supply not just hardware to Ukraine but also intelligence and technology, changing the West's involvement and the prospects for a Russian response.
-Laura Loomer, a far-right activist with a history of bigoted views and publicity, filed a trademark application five years ago to protect her work in political activism. She coined the term "Loomered" for her signature move of ambushing people with embarrassing questions. Loomer, a well-known figure in the internet for her anti-Muslim activism, undercover sting operations, and political stunts, recently traveled with former President Donald J. Trump to Philadelphia for the presidential debate and to Sept. 11 memorial events in New York City and Shanksville, Pennsylvania. This trip drew criticism from Democrats and Republicans, as she had previously called Sept. 11 "an inside job."
-Donald Trump's running mate, Senator JD Vance, has outlined a peace plan to end the Ukraine war, which he believes resembles Vladimir Putin's approach. Critics argue that Vance described a Russian victory, while supporters claim he offered the only realistic path to peace. In an interview with "The Shawn Ryan Show," Vance was asked about Trump's plans to end the war. Critics argue that Vance's plan resembles Putin's, while supporters believe it offers the only realistic path to peace.
-Kamala Harris plans to challenge Donald Trump in another televised debate, despite the recent Philadelphia debate. A statement from her campaign chair, Jen O'Malley Dillon, was drafted in advance and sent to her advisers shortly after the debate's end. However, the vice president's hopes for a second televised confrontation with Trump have been dashed, as the former president ruled out participating in another debate on Thursday. Harris' top communications adviser, Brian Fallon, expressed his excitement for a potential October debate.
-Former President Donald Trump delivered a speech at a rally in Las Vegas, focusing on his first and possibly only presidential debate against Vice President Kamala Harris. Trump accused Harris of cheating, repeated falsehoods on various topics, and continued to stoke fear about immigration. Over an hour and 20 minutes, Trump ranted about the moderators of Tuesday's debate, made unfounded accusations that Democrats "cheat like hell" in elections, and insisted that President Biden would have been better than Harris.
-Pope Francis has urged American Catholic voters to choose the "lesser of two evils" in the upcoming U.S. presidential election, citing Donald Trump's cruelty towards immigrants and Kamala Harris's support of abortion rights. He stated that sending migrants away, not allowing them to grow, and not letting them have life is something wrong and cruelty. Francis also emphasized the importance of speaking clearly about these issues. The remarks came as he concluded a 11-day tour of the Asia-Pacific region, including stops in Jakarta, East Timor, and Singapore. His stance on the American presidential race reflects the divide among Catholic voters in the United States, who in praising Trump and Harris, are against life. The Pope's stance on the race reflects the divide among Catholic voters in the United States, who in recent years have been divided on the issue of abortion rights and the need for a less Eurocentric church.
-The US military reported that four top ISIS leaders were killed in a joint assault by US and Iraqi forces last month. The attack, which occurred on August 29 in western Iraq, killed at least 14 insurgents and devastated the group's top leadership. The military identified Ahmad Hamid al-Ithawi, the top ISIS commander in Iraq and one of the group's most well-established veterans. Two senior commanders for ISIS operations in western Iraq were also killed. The US and other allied forces have helped Iraqi forces carry out more than 250 counterterrorism missions since October. The raid was one of the largest counterterrorism operations against the Islamic State in Iraq in recent years, dealing the group a major blow at a time when its attacks in Iraq and Syria are on the rise.
-A Missouri bird flu case has raised the possibility of human transmission of the virus, H5N1, in what would be the first known instance in the United States. A close contact of someone with bird flu also became ill on the same day, but the second person was not tested, and the cause of the illness is unknown. The disclosure raises the possibility that the virus, H5N1, spread from one person to another, experts said. CDC officials said there was "no epidemiological evidence at this time to support person-to-person transmission of H5N1," but that additional research was needed.
-The World Health Organization (WHO) has given its authorization to the first vaccine to protect against Mpox, a decision that caught even the head of the company that makes the vaccine by surprise. The Jynneos vaccine, made by Danish company Bavarian Nordic, has been approved in Europe, the United States, and other high-income countries since a global Mpox outbreak in 2022. However, low- and middle-income countries rely on the WHO through a process called prequalification to determine which drugs, vaccines, and health technologies are safe and efficient uses of limited health funding.
-Abbé Pierre, a Roman Catholic priest who campaigned against homelessness and poverty in France, has been accused of sexual abuse and assault. Despite being a celebrated figure in the country, he was once voted the third-greatest French person of all time by television viewers. His legacy has been destroyed by revealing his treatment of women, which has led to a decline in his image as a symbol of virtue in France. Over the past two months, a darker image has emerged: that of an accused sexual predator. Years after his death, Abbé Pierre is facing a sudden profusion of sexual harassment and assault accusations, causing soul-searching at the social justice movement he started, raising questions about who knew about his behavior towards women, and unsettled a country that once hailed him as a symbol of virtue.
NEW YORK POST
-Vice President Kamala Harris has sat down with an ABC affiliate for her first solo interview, answering five questions from Action News 6 ABC. The interview came just days after the moderators in the ABC debate with Donald Trump assisted her by providing fact checks on the former president. Harris, who is close friends with Disney executive Dana Walden and a member of her sorority, emphasized the importance of having access to resources to fuel her aspirations and dreams. Harris grew up in a middle-class neighborhood where people were proud of their lawns and worked hard, highlighting the need for more resources to help Americans achieve their aspirations.
-Springfield, Ohio, has faced challenges as its population grew with thousands of Haitian refugees. The town, which is home to 60,000 people, has faced cultural and driving practices differences. Former Ohio State Rep. Kyle Koehler said that the influx of 20,000 people has caused issues between the residents and the newcomers. Springfield has gained national attention recently, with former President Donald Trump referencing the town during a debate. Trump criticized the town for eating the pets of the residents and the dogs brought in, stating that this is a shameful situation in the US.
-Donald Trump has confirmed that he will not be selling his (57%) majority stake in Trump Media & Technology Group, which owns Truth Social. Trump Media saw its shares slump following his televised debate with Democratic rival Kamala Harris. Trump's stock surged as much as 30% following his comments before closing up 12%. Trump's stock surge follows weeks of steady declines ahead of key dates this month when Trump and other company insiders will be allowed to sell their shares. Trump distanced himself from far-right'supporter' Laura Loomer, stating that he can't tell her what to do. Body language experts told Dr. Phil after the presidential debate that ABC News moderators clearly favored Vice President Kamala Harris.