After all, Pelosi is going to Taiwan. The leader of al- Qaeda has been killed. The stock market had a three day rally. Today is what you need to know.
According to people familiar with her plans, Nancy Pelosi is going to visit Taiwan on Tuesday despite warnings from the Chinese government. The risk of a military confrontation is raised by the fact that China views Taiwan as its territory. China is worried about the trip.
Two people familiar with the matter say that the leader of al-Qaeda, Ayman Al-Zawahiri, has been killed. The leadership of al-Qaeda was taken over by Zawahiri in 2011. He was accused of having a role in the 1998 terrorist bombings of the US embassies in Africa.
Concerns about a global economic downturn and US-China tensions are putting a strain on Asian stock markets. The S&P 500 dropped after three days of gains, and futures pointed to a subdued start in Japan and Australia. The dollar fell and the 10-year yield was lowered. Concerns that an economic downturn may affect demand for crude caused oil to plunge.
One of the strangest investments of the year has turned out to be a new electric car. A Model 3 with only a few hundred miles on the clock is more expensive than a new one because it takes so long to deliver. They pay huge premiums to skip the queue, even if it means buying a used car.
Even the largest and most established names in aviation have been overwhelmed by a rapid rebound in airline bookings. The industry can't hire fast enough after laying off tens of thousands of pilots, flight crew, baggage handler and security staff. We looked at which of the world's major airlines were canceling the most flights and which were sticking to their schedule.
The bond market is not able to keep up with the currents. The highest inflation rates for a generation, steep central bank interest rate hikes and a wave of geopolitical risks are some of the dynamics driving wild swings in the yields used by almost every other market as a benchmark for returns and borrowing costs.
This chaos is being fueled by a classic case of the law of unintended consequences, which is why Treasuries are so important. Markets are less safe because of the infrastructure imposed on large banks to protect them against another financial crisis. That is helping to set off huge swings in traditional haven assets that aren't supposed to happen. It casts doubt on inflation expectations, recession warnings from the yield curve and even July's stunning tech-sector rally that owed much to the Treasuries led drop in global government bond yields.
Garfield Reynolds is based in Australia.
Garfield Clinton Reynolds helped with the project.
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