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The World
The U.S. Senate passed a sweeping $430 billion bill intended to fight climate change, lower drug prices and raise some corporate taxes, a major victory for President Joe Biden that Democrats hope will aid their chances of keeping control of Congress in this year's elections. After a marathon, 27-hour weekend session of debate and Republican efforts to derail the package, the Senate approved the legislation known as the Inflation Reduction Act by a 51-50 party line vote Vice President Kamala Harris cast the tie-breaking ballot. (Reuters)
Pro-SALT deduction House Democrats say they’ll back Senate bill. (The Hill)
Winners and Losers in Democrats’ Signature Tax and Energy Bill: Electric cars, fossil fuels and renewables scored big benefits; tech and pharmaceutical companies bear much of the cost. (Bloomberg)
A fragile ceasefire took effect at 11:30 p.m. on Sunday, ending more than three days of intense fighting between Israel and the Palestinian Islamic Jihad (PIJ) terror group in the Gaza Strip, after a deal was brokered by Egypt and confirmed by both sides. However, heavy rocket fire from Gaza targeting Sderot, Ashkelon, Beersheba and other local communities continued until minutes before the deadline, and some barrages were fired as late as 20 minutes after the ceasefire took effect. It wasn’t immediately clear if this meant the truce was broken and that the fighting would continue, since previous Israeli operations in the Strip similarly ended with ceasefires that saw some trades of fire after it took effect. (Times of Israel)
Chinese war games expected to harden Taiwanese hostility to Beijing: Political analysts say even the more mainland-friendly parties such as the KMT will be forced to change their stance to stay in tune with public opinion. Most Taiwanese welcomed the visit by US House Speaker Nancy Pelosi and welcomed the international attention it brought despite the furious response by Beijing. (South China Morning Post)
Taipei said that Chinese military drills involving naval and aerial forces that Beijing carried out on Saturday may be a “possible simulated attack” on the island. (Politico EU)
Two senators urged the Biden administration to go further in its support for both Ukraine and Taiwan, as U.S. tensions with China bubble up after Rep. Nancy Pelosi’s trip to Taiwan. In an appearance on CNN’s “State of the Union,” Sens. Lindsey Graham (R-S.C.) and Richard Blumenthal (D-Conn.) backed the House speaker’s travel to Taiwan and tied the two foreign policy issues together — warning that China is watching how the U.S. continues to respond to Russia’s attack on Ukraine as the war nears its sixth month. (Politico)
North Korea will convene two key meetings, including one to review the country's anti-epidemic policy, in coming weeks, state media said on Monday, as it claims no new COVID-19 cases since late July. The North Korean Supreme People's Assembly (SPA), the isolated state's rubber-stamp parliament, will meet on Sept. 7 to discuss law on rural development and organizational matters. (Reuters)
Spectre of Russian interference hangs over Italy’s snap elections: Some in the country believe the Kremlin helped to script last month’s ousting of Mario Draghi. (Financial Times)
Colleges, Parents Fight Over Tuition During Covid-19 Closures: Some rulings have provided a boost to students and parents, while other decisions have said students don’t have valid claims. Pending cases from higher-level courts could bring more clarity. (Wall Street Journal)
Mayor Eric Adams condemned Texas Gov. Greg Abbott for sending buses of asylum seekers to New York City — some of them against their will. “This is horrific, when you think about what the governor is doing,” Adams said in an early morning visit to the Port Authority bus terminal, where he greeted a bus transporting arriving migrants. “It is unimaginable what the governor of Texas has done, when you think about this country, a country that has always been open to those who were fleeing persecution,” Adams said. “We’ve always welcomed them. And this governor is not doing that in Texas. But we are going to set the right tone of being here for these families.” (Politico)
On Friday, Abbott announced that buses would start going to New York City; 50 migrants arrived in the city on Friday. “In addition to Washington, D.C., New York City is the ideal destination for these migrants, who can receive the abundance of city services and housing that Mayor Eric Adams has boasted about within the sanctuary city,” Abbott said in a statement. “I hope he follows through on his promise of welcoming all migrants with open arms so that our overrun and overwhelmed border towns can find relief." (Texas Tribune)
Economy
US Inflation Peak in Sight But Debate Rages Over What Comes Next: Sky-high US inflation may finally be approaching a peak as global economic growth sputters and oil and other commodity prices plunge. Now the focus is shifting to how fast and far it will retreat. Welcome to Round Two in the battle of dueling narratives on the cost of living. (Bloomberg)
Some consumers are cutting back on restaurant spending, but CEOs say not all chains are affected. Some restaurant chains are reporting weaker sales or traffic. McDonald’s and Chipotle said low-income customers are spending less, while higher-income consumers are visiting more frequently. Starbucks, Bloomin’ Brands and Restaurant Brands International said they aren’t seeing big changes in consumer spending. (CNBC)
Higher foreign exchange volatility has Japan fretting about yen spike: A weak yen is bad for inflation, but a strong one is bad for stock market. TOKYO -- It used to take several months at least for the dollar-yen exchange rate to move 10 yen. Nowadays, such a swing can happen within days. In Tokyo, the dollar has skidded more than 6% from 139.18 yen on July 14 to 130.40 yen on Aug. 2. The pullback came after the dollar's 21% surge against the Japanese currency between March and July. (Nikkei Asia Review)
The Worst Is Yet to Come for US Credit Markets, Investors Say in Survey. (Bloomberg)
Technology
Apple has asked suppliers to ensure that shipments from Taiwan to China strictly comply with Chinese customs regulations after a recent visit by senior U.S. lawmaker Nancy Pelosi to Taipei stoked fears of rising trade barriers. Apple told suppliers on Friday that China has started strictly enforcing a long-standing rule that Taiwanese-made parts and components must be labeled as being made either in "Taiwan, China" or "Chinese Taipei," sources familiar with the matter told Nikkei Asia, language that indicates the island is part of China. (Nikkei Asia Review)
Apple’s iPad Software Delay Keeps Focus on Its Main Attraction: iPhone 14. That means the software won’t come out at the same time as the new iOS. (Bloomberg)
Video game giants had a miserable second quarter as the pandemic gaming boom hits a wall. Microsoft, Sony and Nintendo each reported a fall in quarterly video game sales. The main reason? People are spending less time playing and more time going out. Gaming was one of the main beneficiaries of the Covid pandemic. With lockdowns lifting and inflation running hot, the industry is beginning to falter. A significant factor hampering performance is the scramble for key console hardware. The shift toward remote work, meanwhile, has caused delays to new game releases. (CNBC)
Don’t Blame Tech Workers for Silicon Valley’s Bloated Head Counts: A frustrated Mark Zuckerberg paused during his weekly Q&A with Meta Platforms employees. He’d just gotten through warning everyone about the punishing downturn he saw coming, and the first question he got—one that, to be fair, had been pre-recorded—asked whether Meta Days, the extra time off given to workers during the pandemic, would continue in 2023. Once he’d collected himself, Zuckerberg dismissed the question (announcing the end of Meta Days in the process) and identified a general need to crank up the pressure. “Realistically,” he said, “there are probably a bunch of people at the company who shouldn’t be here.” (The Information)
Why HBO Max Spent $130 Million to Shelve ‘Batgirl’ and ’Scoob 2’. (Bloomberg)
Smart Links
McDonald’s Customers Love Salads—Who Knew? (Wall Street Journal)
Amazon sees opening in baby formula industry shake-up. (Politico)
Canada hands out open work permits to young, well-educated Hongkongers. (South China Morning Post)
CVS Plans to Bid for Signify Health. (Wall Street Journal)