Crypto News: Warsh walks a yield tightrope

Good morning. Investors await Kevin Warsh’s speech from Jackson Hole. ‘Brooklyn’ author Colm Tóibín ponders leaving America. And beware the hidden, lasting dangers of heat stroke. Listen to the day’s top stories.

— By Angela Cullen and Harry Black

Market Snapshot
S&P 500 Futures	7,737.25	-0.1%
Nasdaq 100 Futures	29,607.00	-0.3%
Bloomberg Dollar Spot Index	1,193.98	-0.0%
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Kevin Warsh’s Jackson Hole speech is the main event heading into the weekend. Futures wavered and Treasuries barely budged ahead of his comments, scheduled for 10 a.m. ET. Fed watchers are looking for a clear signal that tackling inflation is the new chairman’s priority. Warsh’s words could flatten the US yield curve, bolster risk appetite and support the dollar — if he gets it right, Bank of America strategists said. Here’s what to expect from this year’s gathering.

Venezuela is weighing whether it should quit OPEC, people familiar said. Pulling out would be a fresh blow to the oil cartel it helped create over 60 years ago and underline the sweeping political realignment in Caracas since Donald Trump ousted Nicolás Maduro and took control of the nation’s oil sales. Washington’s growing influence is also reflected in US talks with Venezuelan leaders to take a large stake in the nation’s oil fields — a development that would have been unthinkable just two years ago.

Trump’s trade war with Canada is turning into bar brawl, says Harvard economist Ken Rogoff, who expects both sides to eventually back down. In the latest salvos, Howard Lutnick blamed Mark Carney, Trump resorted to name-changing a Great Lake, and Carney channeled Canada’s Indigenous heritage. Meanwhile, Harvard and MIT scholars are heading north and Lake Ontario hats are selling like hotcakes.

Illustration: Uli Knörzer for Bloomberg; Source Photo: Emanuele Spina

Colm Tóibín on America: At What Point Would You Leave?

The ‘Brooklyn’ author has spent decades writing about migration and belonging. Trump’s America is giving him new reasons to think about both.

You’re Invited: Live from Jackson Hole, Bloomberg journalists will answer your questions about what we learned in the policy address by Federal Reserve Chair Kevin Warsh and what traders are watching in the weeks ahead. Join our interactive Live Q&A today at 2:30 p.m. EDT. Send your questions in early to: liveqa@bloomberg.net

Deep Dive: Climate Change Haunts the Himalayas

A house damaged by flash floods in Devighat, Nuwakot, Nepal. — A house damaged by flash floods in Devighat, Nuwakot, Nepal, on Aug. 27.

The scale of the devastation from this week’s deluge in a valley bordering Nepal and China is becoming clearer, with at least 477 dead and rescuers racing to find more than 1,500 people still missing in a remote mountain region on the front lines of climate change.

A new threat is complicating the recovery effort after debris dammed rivers and created unstable lakes, raising fears of further flooding as water builds behind the blockages.
In one dramatic operation at a hydropower plant being built about 45 miles north of Nepal’s capital, Kathmandu, emergency teams airlifted more than 300 survivors.
The bill will be steep for the country that still bears the scars of a devastating earthquake in 2015. Nepal’s finance minister says recovery will require at least “a few billion dollars.”
Scientists have said the catastrophe highlights how vulnerable the region is to global warming. Satellite data indicates that that a glacial collapse triggered the flash floods.
Himalayan glaciers are melting ever faster. Chinese President Xi Jinping has ordered faster surveys of glaciers across the Tibetan Plateau to guard against future disasters.

The Big Take

Dark shadow. — *Illustration: 731; Photo: Getty Images*

‘Princely’ sums. Blue-chip firms lent their money, connections and reputations to little-known iron ore trader Radiant World. Now several are counting their losses. Chief among them: Glencore. We reveal the spider’s web that trapped them and the founder who goes by the moniker “PRINCE.”

Big Take Podcast

Ahead of Warsh Speech, Our Forward Guidance

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Gas prices at an Exxon Gas Station in Falls Church, Virginia.

Trump’s energy dominance has hit its limits: producing more oil hasn’t protected Americans from higher prices, Liam Denning writes. China, meanwhile, has proved better prepared for the shock.

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Before You Go

Shielding from the sun. — Pedestrians carry umbrellas to shield themselves from the sun in Washington, DC.

Heat stroke doesn’t always end when the body cools down. Survivors can face months or even years of health problems, a growing concern as climate change exposes more people to dangerous temperatures.

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