Economic D-Day

Bloomberg Morning Briefing Americas  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Read in browser

Good morning. Trump says the US is waging economic warfare against Iran. Lula faces voters one last time as Brazil’s presidential frontrunner. And parents are paying up for a gap year to give their kids an edge. Listen to the day’s top stories. — Marc Perrier Market Snapshot S&P 500 Futures 7,725.50 -0.0% Nasdaq 100 Futures 29,525.00 +0.0% Bloomberg Dollar Spot Index 1,190.84 -0.1% WTI Crude Oil Futures $88.03 +2.6% Market data as of 06:45 AM ET. Data is subject to provider delays. Your watchlist Donald Trump announced plans to subject Iran to an “economic D-Day,” underscoring his rising frustration with Tehran’s refusal to capitulate despite months of military strikes. He offered no details, but the threat to target Iran’s trading partners, none of which he cited by name, put an immediate focus on China, which buys the bulk of Iran’s oil. Oil gained for a fifth day as traders weighed Iran’s economic isolation. Markets are still digesting Treasury Secretary Scott Bessent’s shock intervention to stem a potentially damaging rise in borrowing costs, with JPMorgan warning that traders may question its credibility. Some investors say the dollar could ultimately pay the price as Bessent emerges as the most interventionist Treasury chief in decades. South Korean memory chipmakers are still in focus as they face concerns about the AI spending boom. SK Hynix may follow up its new mega stock buyback with additional shareholder returns worth at least $130 billion through next year, says JPMorgan. Samsung Electronics is planning to announce a shareholder return program topping $72 billion, MoneyToday reported. The tentative trade deal between the US and Canada would lower tariffs on certain Canadian exports of steel and aluminum to 25% and cut duties on Canadian auto exports to 15%, people familiar said. The draft agreement adds pressure on Mexican negotiators to secure comparable relief from US import duties, according to a Mexican official familiar with the matter. Warning Signs Are Flashing at America’s Overheating Landfills Read more Colombia declared a 30-day economic emergency to tackle the fallout from its devastating earthquake. The decree expands new President Abelardo de la Espriella’s powers to respond to the 7.4-magnitude quake that struck Aug. 10, killing at least 314 and leaving 4,430 injured and 262 missing. Deep Dive: Lula’s Final Push Luiz Inácio Lula da Silva. Photographer: Aaron Schwartz/Bloomberg Six weeks from Brazil’s election and a year after his popularity sank to career lows, President Luiz Inácio Lula da Silva is waging what he says will be his final campaign as the frontrunner. Lula is considered the favorite to beat right-wing challenger Flávio Bolsonaro, whose campaign has been marred by a feud with his stepmother and links to a banker at the center of a financial fraud probe. But the world’s biggest presidential election of 2026 is far from settled. Despite the chaos surrounding Bolsonaro’s campaign, he trailed by just three percentage points in a poll released last week. It’s a reminder that the voter fury fueling a global wave of anti-incumbent sentiment could still hit highly polarized Brazil in the October ballot. Lula’s frontrunner status also owes much to political nemeses Donald Trump and Jair Bolsonaro: Trump’s tariffs boosted Lula’s approval, while Bolsonaro’s backing of his son, Flávio, divided allies and investors. The economy that’s long served as Lula’s calling card, meanwhile, is slowing. Still, the prevailing sentiment is that he’s on the verge of victory. The Big Take China is closing the AI gap with the US, raising concerns for firms such as OpenAI and Anthropic, which are chasing trillion-dollar valuations based on their purportedly superior capabilities and prospects. Big Take Podcast Why Bessent Is Boosting Treasury Buy-Backs Opinion Bessent’s bond-burner move shows the Treasury has impressive yet limited power, John Authers writes. For long-term impact, drastic changes in fiscal policy are needed, not signaling and symbols. More Opinions Bill Dudley It Won’t Take Much to Burst the Stock Market Bubble Marc Champion The Call for a Ukrainian Election Is Compelling and Wrong Play Alphadots! Our daily word puzzle with a plot twist. Today’s clue is: Time for many standing meetings? Play now! Before You Go Natalia Bertran’s son Jorge in the Amazon during his gap year program. Photographer: Noor Saad via Source: Natalia Bertran Premium gap years are gaining appeal as families question whether a college degree alone is enough to stand out. Some parents are paying $95,000 to give their kids an edge despite scant evidence that the programs deliver. A Couple More The Hottest Travel Souvenir Is Learning a New Skill US Alcoholic Beverage Consumption Stabilizes at a Historic Low Bloomberg Power Players - New York: Set against the backdrop of the US Open Tennis Championships, Bloomberg Power Players returns to New York on Sept. 10, bringing together the leaders shaping this global industry. From athletes and team owners to commissioners and investors, this event will gather the most influential voices in the multitrillion-dollar sports economy. Learn more here. More From Bloomberg Enjoying Morning Briefing Americas? Get more news and analysis with our regional editions for Asia and Europe. Check out these newsletters, too: Money for insights, ideas and tools for doing more with your money AI Today chronicles the disruptions and threats of AI Market Moves delivers the pulse of the market to your inbox Markets Daily has what’s moving in stocks, bonds, FX and commodities Opinion Today for an afternoon roundup of our most vital opinions Explore all newsletters at Bloomberg.com. We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Morning Briefing Americas newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |

Next Africa: Paying back

Zimbabwe’s president rewards his backers ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Read in browser

Welcome to Next Africa, a daily newsletter on where the continent stands now — and where it’s headed. Sign up here. In today’s edition: Zimbabwean president’s allies join the senate Ethiopia is burning through dollars to boost the birr Is the solution to malaria finally within reach? Political Rewards  The ink is barely dry on a controversial Zimbabwean constitutional amendment to extend Emmerson Mnangagwa’s presidency and his backers are being rewarded.  The 83-year-old appointed 10 allies to the senate, most notably mining tycoon and serial state-contract winner Kudakwashe Tagwirei.  Sanctioned by the US and UK for alleged corruption, Tagwirei — who refutes claims of graft — was among the most enthusiastic of the well-heeled businessmen who supported Mnangagwa’s push to lengthen his current term until 2030. The additional senators and a future requirement that lawmakers, rather than citizens, elect the nation’s leader were tenets of the constitutional change. Tagwirei in July 2018. Photographer: Jekesai Njikizana/AFP/Getty Images The ascension of the businessman, an adviser to Mnangagwa for many years, into politics has been rapid. Despite the objections of some stalwarts in the ruling Zanu-PF, he was appointed to its highest decision-making body last year. Gifts of cars to party officials followed.  The transformation of Zimbabwe’s ruling elite from a coterie of liberation-struggle veterans to a clique of state-linked businessmen is now in full swing.  Gold trader Scott Sakupwanya is a Zanu-PF lawmaker and Paul Tungwarara, who’s won government construction projects, is a senior party official and special adviser to the president.  The new senators were chosen by the president “for their professional skills and other competencies,” the country’s parliament says. While Tagwirei hasn’t clarified his long-term political ambitions, he has moved closer to the center of power that’s key to his financial well-being.  What is clear is there is now a changing of the political guard in a country that suffered one of Africa’s most bitter struggles against colonialism. — Antony Sguazzin The central business district of Harare, Zimbabwe’s capital. Photographer: Cynthia R Matonhodze/Bloomberg What Everyone’s Reading  Campaigning for Nigeria’s January election is officially underway, with voters in Africa’s largest democracy offered the same slate of candidates as three years ago — and confronting many of the same challenges. Bola Tinubu is widely tipped to win a second term as president, despite public anger over the high cost of living on his watch. Lagos, Nigeria. Photographer: Olympia de Maismonth/AFP/Getty Images Ethiopia is burning through billions of dollars in a frantic, and so far unsuccessful, bid to stem the selloff in its currency. Hopes of stabilization after an IMF-backed devaluation in 2024 were dashed by the Iran war, which upped the cost of fuel and fertilizer imports and reduced remittances from Gulf-based workers. The birr is the worst performer over the past 12 months against the dollar of 23 African units tracked by Bloomberg. South African inflation cooled more than expected in July, hardening the argument for the central bank to keep interest rates on hold as it assesses the fallout from the Middle East conflict. The data coincided with a decrease in gasoline prices as the cost of crude oil retreated from highs reached during the early stages of the war. Protests broke out again in Libya’s capital after the energy-rich country suffered its third widespread blackout in two days, fueling public anger over deteriorating services. Armed groups have exacerbated the crisis, with a gasoline tank damaged at the Zawiya refinery last week and a nearby power substation struck in a drone strike. Absa is looking to expand its presence in Nigeria, adding Africa’s most populous nation to its push to diversify beyond its biggest markets. The Johannesburg-based lender plans to convert its representative office into a merchant bank to help shift its earnings away from South Africa, Kenya and Ghana. WATCH: CEO Kenny Fihla speaks with Bloomberg’s Jennifer Zabasajja on Absa’s plans. Record foreign-currency reserves and a vote of confidence from the IMF have cut Egypt’s risk premium to the lowest since 2014. Even as geopolitical risks mount across the region, remittances and tourism have supported dollar supply, while a more flexible pound has helped Cairo absorb shocks without depleting its buffers. Join Bloomberg reporters for a Live Q&A on Thursday as we look at just how bad the Ebola outbreak in central Africa could get. Photographer: Michel Lunanga/Getty Images Africa Newsmaker Hakainde Hichilema during a Bloomberg TV interview in Paris in June 2023. Photographer: Nathan Laine/Bloomberg Hakainde Hichilema secured a second term as president of Zambia in a landslide that even eclipsed his big win five years ago. The mandate will allow him to build on the macroeconomic successes of his first stint and gives him time to ensure the benefits of a rebound in Africa’s second-biggest copper producer filter through to all citizens. Last Word What if replacing a single amino acid in malaria-carrying mosquitoes could help save the almost half a million children under the age of 5 who die from the disease each year? After battling with rudimentary tools for millennia, malaria fighters are now armed with a potentially revolutionary technology. This Bloomberg editorial delves into at what’s possible. We’ll be back in your inbox with the next edition tomorrow. Send any feedback to nextafrica@bloomberg.net. More From Bloomberg Enjoying Next Africa? You might also like: Businessweek Daily for fresh perspectives on business, economics, politics and tech Markets Daily for what’s moving in stocks, bonds, FX and commodities Balance of Power for the latest political news and analysis from around the globe Bloomberg Money for insights, ideas and tools for doing more with your money AI Today for a chronicle of the disruptions and threats of AI on businesses, workers, finance and economies We’re improving your newsletter experience and we’d love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow Us You received this message because you are subscribed to Bloomberg’s Next Africa newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |