Good morning. We have now updates on yesterday’s dangerous day for US shares and a deep dive into Canary Wharf’s challenges.
However first we head to Washington, the place Joe Biden has simply given a uncommon nationwide handle from the Oval Workplace. The US president framed his determination to “cross the torch” as a bid to save lots of democracy, saying: “I revere this workplace, however I really like my nation extra.”
In his first public remarks since saying he wouldn’t search a second time period, Biden additionally praised vice-president Kamala Harris, who is about to face Donald Trump on the polls in November.
“America goes to have to decide on between transferring ahead or backward, between hope and hate, between unity and division,” he mentioned.
Biden additionally vowed to press forward together with his home and international coverage agenda, together with calling for vital reforms to the US Supreme Courtroom, throughout his remaining six months within the White Home. Here’s more from his speech.
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Politics and M&A: Dealmakers are reconsidering their electoral methods, with Harris seen as potentially more moderate on antitrust insurance policies than Trump’s populist operating mate, JD Vance.
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Bidenomics: The president’s industrial intervention and import tariffs will probably continue beneath Harris if she wins in November, writes Alan Beattie.
Biden will meet Benjamin Netanyahu later at the moment after the Israeli chief’s controversial handle on Capitol Hill — scroll down for extra particulars. Harris will meet Netanyahu individually after lacking the joint session of Congress yesterday. And right here’s what else I’m retaining tabs on:
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Financial knowledge: The US studies second-quarter GDP, whereas the Institute for Fiscal Research publishes its report on UK residing requirements, poverty and inequality.
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G20: Finance ministers and central financial institution governors start a two-day assembly in Rio de Janeiro.
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Outcomes: Anglo American, Lloyds Banking Group, British American Tobacco AstraZeneca, Nasdaq, Nestlé, Northrop Grumman and Unilever report outcomes, whereas BT Group has a buying and selling replace.
5 extra prime tales
1. US inventory indices recorded their worst day in additional than 18 months yesterday after lacklustre outcomes from index heavyweights Tesla and Alphabet deepened a expertise sector sell-off. The blue-chip S&P 500 fell 2.3 per cent, its worst day since December 2022, whereas the tech-heavy Nasdaq Composite fell 3.6 per cent, its worst day since October 2022. Here’s why analysts warn “the macro picture appears to be cracking”.
2. Unique: Citigroup inaccurately reported to regulators the small print of tens of billions of {dollars} of loans, errors that would complicate its means to fund dividends and buybacks. The flawed mortgage information had been a major purpose regulators slapped the Wall Avenue financial institution with a $136mn positive this month and has broken the financial institution’s shut relationship with McKinsey, mentioned people with direct knowledge of the matter.
3. Buyers and bankers are lining as much as elevate billions of {dollars} for brand spanking new particular objective acquisition firms, defying predictions the asset class can be worn out after a sequence of scandals and a regulatory crackdown. New knowledge exhibits fundraising has been enhancing slowly this 12 months, rising about 20 per cent over the identical interval in 2023 to $3.1bn. Read the full story.
4. Benjamin Netanyahu urged the US to face with Israel in a speech to a joint session of Congress that was boycotted by quite a few Democrats and drew hundreds of protesters to the streets close to the Capitol. The Israeli prime minister defended his nation’s warfare in Gaza and laid out a postwar imaginative and prescient for the enclave. Here’s more from his speech.
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Opinion: Israel’s occupation wants to finish, however the area’s issues will not be magically resolved if and when Palestine positive aspects statehood, writes Kim Ghattas.
5. The UK’s fledgling state-owned vitality firm will give attention to offshore wind energy and different clear expertise tasks, working with the Crown Property. Ministers declare the partnership will assist leverage as much as £60bn of personal funding for GB Power, which is because of be arrange within the coming months beneath new laws. Here are more details on the Labour government’s plan.
Visible story
Canary Wharf is getting into a brand new period. Thousands and thousands of sq. toes of London workplace house is turning into accessible as huge tenants depart and landlords face a world of hybrid work. The crux of the problem is not only the vacant house, however the variety of buildings which might be attributable to empty out over the following few years. Our newest visible story explores how Europe’s best-known workplace district will adapt — and at what cost.
We’re additionally studying . . .
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The Texas miracle: The US state has attracted tons of of firms with its low-tax, light-touch method, however the strains are starting to show.
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‘Heatflation’: Companies are counting the cost of mitigating the consequences of local weather change on their workforce, and never all of them will be capable to afford it, writes Leo Lewis.
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Battle in Ukraine: With Russian assaults lowering electrical energy to a couple hours a day, Ukrainians are stripping out Tesla batteries to maintain the lights on.
Chart of the day
Economists and officers anticipate the Olympics to contribute to an enlargement in France’s output this 12 months. However forward of the Video games, vacationers and ticket holders have but to make up for an exodus of locals, with brasseries, retailers and different small companies in Paris affected by a sharp drop in sales as footfall dwindles.
Take a break from the information
In Macau, the affect of former colonial ruler Portugal is in all the things from the authorized system to the territory’s black-and-white cobbled streets. However because the on line casino metropolis approaches the twenty fifth anniversary of its handover to China, its Lusophone inhabitants faces a new set of challenges, writes William Langley.
Extra contributions from Benjamin Wilhelm and David Hindley