Crypto News: Fired over affair

Good morning. Nestlé ousts its CEO over an undisclosed affair. The Trump administration is considering declaring a national housing emergency. And Starbucks is buoyed by the return of the pumpkin spice latte. Listen to the day's top stories.

By Omar El Chmouri and Maddie Parker

Markets Snapshot

S&P 500 Index Futures

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Nasdaq 100 Index Futures

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Bloomberg Dollar Spot Index

1,208.23

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Market data as of 07:20 am EST.

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Nestlé shares fell after it fired CEO Laurent Freixe because of an undisclosed workplace affair, after just a year at the helm. Philipp Navratil is taking over at the Swiss company. In other corporate news, Tesla's long-awaited entry into India is delivering underwhelming results, drawing just over 600 orders since launching sales in mid-July. And Kraft-Heinz laid out plans to split into two publicly-listed companies.

The Trump administration may declare a national housing emergency this fall, with Treasury Secretary Scott Bessent saying housing affordability would be a critical element of the Republican's 2026 midterm election platform. But two of the president's other campaign promises, using tariffs to remake the US economy and ending Russia's war in Ukraine, have already stalled as his ambitions meet a harsh reality.

Chinese leader Xi Jinping and Russian President Vladimir Putin met in Beijing, highlighting their close ties ahead of a major military parade. In a win for the Kremlin, Russia's Gazprom signed an agreement to build the Power of Siberia 2 gas pipeline to China. Xi Jinping will deliver a speech, and potential announcements on military restructuring will be closely watched.

Gold climbed past $3,500 to a record on bets the Federal Reserve will cut rates this month. Oil rose as the upcoming OPEC+ meeting and US moves on Russian supplies come into focus. US futures fell as Wall Street returns from the long weekend, in what is historically the weakest month for US equities.

Gold Record High: What Does it Signal for Stocks, Bonds?

Watch the Video

In trade, Donald Trump said India offered to cut its tariff rates following the US imposition last week of 50% levies as punishment for its purchases of Russian oil. Still, the two countries continue to communicate on critical issues, so the door to a better deal remains ajar.

Deep Dive: US-China Space Race

The construction site of the Giant Magellan Telescope in Chile. Photographer: Cristóbal Olivares for Bloomberg Businessweek

US astronomers warn that without more funding to support space research and telescope construction, the US risks ceding the field to China.

In Chile, the Vera C. Rubin Observatory represents the cutting edge of US government-funded research. But the observatory can't do everything by itself, and a nearby project would help the telescope study objects in depth.
Should the Trump administration continue to cut deeply into federal funding for scientific research, the project could remain incomplete for a long time.
Reduced support would risk handing the next generation of telescope insights to rivals like China.

The Big Take

Illustration: enigmatriz for Bloomberg Businessweek

Silicon Valley's drive to get AI into American schools is working, with teachers increasingly bringing chatbots into their lesson plans. Bloomberg Businessweek explored whether it's helping kids learn, or just another doomed ed-tech fad.

Big Take Podcast

The Crises Vying for Dwindling Foreign Aid

Opinion

Credit cards face a threat from stablecoins, Paul J. Davies writes. If customers can be persuaded to use coins sponsored by Amazon or American Airlines, the companies could boost margins and still run points-based loyalty schemes.

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Before You Go

A Starbucks coffee shop in San Francisco. Photographer: David Paul Morris/Bloomberg

Spicing it up. Starbucks said its fall product launch, which included the return of the seasonal pumpkin spice latte, drove a surge in sales. It's usually a busy period for Starbucks, which is credited with starting the pumpkin craze more than 20 years ago.

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