Know someone who would like this newsletter? Forward it to them.
The World
Liz Truss has vowed Britain will “ride out the storm”, as the new UK prime minister began confronting an economic crisis with a massive energy bailout for families and businesses that could cost more than £150bn. Truss dodged torrential rain outside Downing Street to tell the country that she would create an “aspiration nation”, adding: “As strong as the storm may be, I know that the British people are stronger.” Within minutes of entering Number 10, Truss set about forming a cabinet and finalising an energy relief package that will set the tone for her premiership and sharply increase government borrowing. (Financial Times)
Retailers, pubs groups and banks were among a swathe of domestic stocks that rose strongly yesterday, buoyed by the prospect of Liz Truss announcing an emergency energy support package for households and businesses. (The Times)
Biden, Truss to Speak Tuesday With ‘Special Relationship’ at Stake. (Bloomberg)
California raised the emergency status of the state’s electrical system to the highest possible level amid a blistering heat wave, which means rolling blackouts are imminent. With power demand soaring to an all-time high, the state’s grid operator warned residents to prepare for controlled outages as temperatures soared above 110 degrees Fahrenheit (43 Celsius) across much of California. The state’s largest power company, PG&E Corp., said in a statement that it had notified about 525,000 homes and businesses that they could lose power for up to two hours. (Bloomberg)
California Sets Electricity Records During ‘Unprecedented’ Heat Wave: After a scorching weekend that fueled deadly wildfires and freakish desert downpours, temperatures soared even higher on Tuesday, shattering records. By mid-afternoon, a 16-year record for energy use was broken as officials begged residents to turn down air-conditioning, warning of heat-related blackouts. (New York Times)
U.S. plans to shift to annual coronavirus shots, similar to flu vaccine. (Washington Post)
Labor Day Is First Holiday to Top Prepandemic Travel Levels: The percentage of flight delays and cancellations also fell compared with other recent holiday weekends, according to FlightAware. (Wall Street Journal)
‘Complete success’: China tests powerful rocket engine for moon landing. Chinese space authorities say the engine will be used in future missions to the moon, Mars and beyond. It has more than twice the thrust of US competitor to be used in Nasa-led Artemis missions. (South China Morning Post)
Economy
Japanese yen hits 24-year low against dollar: Strong US economic data widen gap between borrowing costs in the two countries. (Financial Times)
Powell Channeling His Inner Volcker Risks Pushing Dollar Higher. (Bloomberg)
Energy Trading Stressed by Margin Calls of $1.5 Trillion: Exchange requirements to secure trades is sucking up capital; governments under pressure to provide market with liquidity. (Bloomberg)
Russia has earned more than enough from President Putin’s energy war on the West to cover the cost of the Ukraine invasion, researchers said yesterday. The Kremlin has brought in £141 billion from oil, gas and coal sales since the Russian leader sent tanks across the border six months ago, according to the Centre for Research on Energy and Clean Air (Crea), a Finnish think tank. In comparison, it has spent an estimated £86 billion on the war, it added. The exact figure is a state secret. (The Times)
Companies Weigh the Pros and Cons of Business Trip Vacations: Hotels are touting a rise in hybrid work and personal travel, but employers don’t always make such trips easy for workers. (Wall Street Journal)
Newsom Signs Fast Food Law, Setting Stage for $22 Pay Next Year: The legislation drew strong objections from the fast-food industry. (Bloomberg)
Technology
How to Watch the 'Far Out' Apple Event today. (MacRumors)
Google announces an in-person Pixel hardware event for October 6 at 10am ET in Brooklyn, where the company will detail the Pixel 7, Pixel 7 Pro, and Pixel Watch. (9to5Google)
Meta announces its Connect conference will be held virtually on October 11, when it is expected to debut its high-end Quest Pro standalone VR headset. (TechCrunch)
The Los Angeles Unified School District, the second largest in the US with 600,000+ students, says a ransomware attack over the weekend disrupted its operations. (TechCrunch)
Smart Links
Wall Street Banks Lead Return-to-Office With Labor Day Push. (Bloomberg)
Volkswagen to List Porsche in One of Biggest IPOs in Years. (Wall Street Journal)
Anti-ESG Activist Investor Urges Chevron to Increase Oil Production. (Wall Street Journal)
India’s Silicon Valley hit by floods and power cuts. (Financial Times)