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The World
Nuclear-armed North Korea fired a ballistic missile over Japan for the first time in five years on Tuesday, prompting a warning for residents to take cover and a temporary suspension of train operations in northern Japan. The Japanese government warned citizens to take cover as the missile appeared to have flown over and past its territory before falling into the Pacific Ocean. It said it did not use any defense measures to destroy the missile, which was the first to fly over or past Japan from North Korea since 2017. (Nikkei Asia Review)
US stocks jump to start new quarter while bond yields slide: S&P 500 gains 2.6% as markets feel relief after UK policy U-turn. (Financial Times)
Sterling drifted up to an almost two-week high of $1.1343, making for a bounce now of almost 10% from a record low hit last week after plans for unfunded tax cuts unleashed chaos on British assets. (Reuters)
When the call came at 7am, many cabinet ministers were still asleep. Thérèse Coffey, the deputy prime minister, and Wendy Morton, the chief whip, were tasked by Liz Truss with ringing round her colleagues to inform them that she was dropping plans to axe the 45p rate of income tax. Those who picked up the phone were given less than half an hour’s notice before the reversal, one of the biggest fiscal U-turns for years, was made public. Those who missed the call read the news first on Twitter. (The Times)
Xi Jinping may ‘recalibrate’ after miscalculation of siding with Russia, Henry Kissinger says. Xi wants to avoid seeing a wall of Western opposition against China develop in the way it has against Russia, according to the former US secretary of state. Kissinger says Xi must have thought the invasion of Ukraine would be successful because he gave Vladimir Putin ‘a rather blank check’. (South China Morning Post)
China has demanded the floor plans of all properties rented by foreign missions in Hong Kong, in a move diplomats believe reflects Beijing’s paranoia about overseas interference in the Asian financial hub’s turbulent politics. The order has brought the city in line with how China treats embassies and consulates on the mainland and sparked fears in the diplomatic community that Beijing could use the information to plant listening devices, according to three people familiar with the matter. (Financial Times)
Brazilians shocked as Bolsonaro’s strong election showing defies expectations: Far-right president forces second round after closely trailing Lula, disappointing those who had hoped to turn a page on his influence. (The Guardian)
A strong election night for allies of President Jair Bolsonaro have given his party the most seats in both chambers of Congress, highlighting the enduring strength of his conservative movement even if he falls short of re-election. His right-wing Liberal Party (PL), won 99 seats in the 513-member lower house, up from 77, and right-leaning parties allied with Bolsonaro now control half the chamber. The bigger surprise in Sunday's voting was in the Senate where Bolsonaro's party won 13 of the 27 seats up for grabs, with two more possible in second-round runoffs, a party spokesman said. (Reuters)
Nationalist Legault Wins Huge Majority in Quebec Election: Premier Francois Legault has won another term in Quebec, strengthening his grip on power with promises to reduce income taxes, send checks to millions of residents coping with high inflation and protect the French language. (Bloomberg)
Here are 5 Supreme Court cases to watch this term: 1) Sackett v. Environmental Protection Agency Kicking off the first day of the term, the justices heard oral arguments on a case that could limit the scope of a landmark federal environmental law: the Clean Water Act of 1972. 2) Moore v. Harper The court will hear a voting rights case that examines states' power in federal elections. 3) Merrill v. Milligan The court will hear a case Tuesday that could further undermine the Voting Rights Act (VRA), which prohibits discrimination in voting. 4) Students for Fair Admissions' challenges to affirmative action The court will consider a pair of cases challenging the consideration of race in the college admissions processes. 5) 303 Creative LLC v. Elenis The court will hear a free-speech case over the rights of a business owner with a religious objection to working with same-sex couples on their weddings. (Axios)
Economy
Treasury’s financial stability watchdog warns cryptocurrencies could threaten safety of U.S. economy. The Treasury Department’s Financial Stability Oversight Council released a new report on digital assets Monday. The report outlined several recommendations to keep cryptocurrency and digital assets trading from destabilizing U.S. financial security. The council pushed for legislation providing for tighter oversight of crypto. (CNBC)
Reports of scams and fraud on the bank-owned payment network Zelle are surging, but banks have refused to refund customers for most of their losses — at times outright flouting a federal consumer protection law, according to a report released on Monday by Senator Elizabeth Warren of Massachusetts. The report, based on data sent to Ms. Warren by several of the banks that run the Zelle network, is the first public glimpse of the size and scope of customers’ fraud claims. The claims at the four banks that provided data are on pace to exceed $255 million this year, up from $90 million in 2020, according to the report. (New York Times)
Demand for Cars Faces Test With Rising Rates: More new cars and trucks are trickling into dealerships as supply-chain troubles ease, but rising interest rates are starting to put a damper on the mood of car buyers. (Wall Street Journal)
PwC is seeking to poach staff from its Big Four rival EY and capitalise on “disruption” and “uncertainty” caused by the latter’s decision to split its accounting and consultancy arms. Bob Moritz, PwC’s global chair, told the Financial Times he was expecting to lure senior managers and even some partners as the firm pursues a big expansion in headcount. (Financial Times)
Turkish inflation tops 83% as Erdoğan promises more rate cuts: September’s price rises are the worst since president’s ruling party came to power 20 years ago. (Financial Times)
Cryptocurrency miners line up to come to Texas, and rural counties are welcoming them. (Texas Tribune)
Technology
The US Supreme Court will decide whether social media companies can be sued for hosting and recommending terrorist content, taking up two cases that challenge their liability protections. The cases mark the court’s first test of the broad immunity social media companies have enjoyed under a provision known as Section 230, part of the 1996 Communications Decency Act. Section 230 has become a target of conservatives, including former President Donald Trump, who say it lets left-leaning tech companies censor right-wing voices. (Bloomberg)
The Biden administration plans to announce new restrictions on China’s access to U.S. semiconductor technology, an escalation of Washington’s efforts to stifle Beijing’s industrial ambitions and a risk to growth for the $550 billion sector. The Commerce Department will roll out a package of rules this week to govern which semiconductor technologies can be exported to China, including codifying earlier guidance given to specific companies. (Bloomberg)
How China’s reputation as the world’s smartphone manufacturing hub is being shaken by plunging confidence at home: A prolonged cooling of China’s smartphone market is sending shivers across supply chains as factories face cutbacks in production orders. Analysts say makers of display and camera modules are under particular pressure, as smartphone clients clear inventory. (South China Morning Post)
Nvidia Closing Offices in Russia, Ceasing All Activities There. (Wall Street Journal)
Rivian says it’s on pace to meet 2022 goals after production grew 67% in the third quarter. Rivian’s third-quarter production jumped 67% from the second quarter, to over 7,000 vehicles. The California EV startup confirmed that it remains on track to build 25,000 EVs in 2022, in line with its March guidance. (CNBC)
Twitter rolls out its edit button, letting users edit five times in 30 minutes, to Blue subscribers in Canada, Australia, and New Zealand, coming soon to the US. (TechCrunch)
Smart Links
Heathrow airport prepares to lift cap on passenger numbers. (The Times)
CNBC names Europe’s best hotels for business travel. (CNBC)
McDonald's switches to paper straws, wooden utensils across Japan. (Nikkei Asia Review)
Kim Kardashian pays over $1 million to settle SEC charges linked to a crypto promo on her Instagram. (CNBC)
Hedge Fund Giant D.E. Shaw Plans to Raise Fees as High as 40%. (Bloomberg)