Good morning. Tech shares climb as investors await Nvidia’s earnings. SpaceX’s Starship rocket deploys satellites in space for the first time. And Taylor Swift shares her Love Story. Listen to the day’s top stories.
— Victoria Batchelor
Asian techshares gained ahead of Nvidia’s earnings today, which investors will scour for an update on the AI boom as well as the impact of US-China trade tensions. Elsewhere in markets, hedge funds are shorting the Cboe Volatility Index, or VIX, at levels not seen since 2022, betting the calm will last—but such extreme positioning has historically foreshadowed volatility spikes and stock losses.
Bank of England rate-setter Catherine Mann said that borrowing costs should be held for longer at their current levels, underscoring concerns at the British central bank about persistent inflation.
The White House is exploring ways to exert more influence over the Federal Reserve’s 12 regional banks, according to people familiar. Donald Trump said he’s prepared for a legal fight with Fed Governor Lisa Cook after he moved to oust her. The US president’s escalating attack on the central bank runs the risk of backfiring by hitting financial markets and the economy with higher long-term borrowing costs. Listen to our Big Take podcast on the question of Fed independence.
Trump warned of “an economic war” if he cannot get Russia’s Vladimir Putin and Ukraine’s Volodymyr Zelenskiy to end their conflict. Separately, the leaders of Germany, France and Poland are set to visit Moldova in a show of support for the country’s pro-European president.
With lawmakers preparing to topple the government in a Sept. 8 confidence vote, company executives are likely to want to see how any new administration addresses the need to narrow the euro area’s largest budget deficit.
Economic growth figures already masked persistent weakness in investment by non-financial companies that has shrunk or failed to grow every quarter since President Emmanuel Macron’s snap parliamentary election last July.
The return of political upheaval will be the main focus as French executives gather in Paris later today for business federation Medef’s annual conference.
Rice is the poster child for farming innovation, Javier Blas writes. In a world worried about looming food shortages triggered by the climate crisis, the collapse in its prices—now approaching their lowest in 18 years—is evidence that interventions by governments and modern agricultural methods may save the day.
Source: Taylor Swift and Travis Kelce via Instagram
Baby, just say yes. Taylor Swift and Travis Kelce announced their engagement in a five-photo joint post. The betrothal sparked a flood of online bets including when the couple will get married and when they’ll have a baby.
