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Good morning. In today's newsletter:
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Saudi Arabia prepares to abandon its oil price target
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China accelerates its green transition
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How Silicon Valley's Chinese Billionaire Madness Caught the FBI's Attention
But first, Chinese leaders pledged to step up fiscal support for the world's second-largest economy, raising market expectations for more interventions just days after the central bank announced the biggest monetary stimulus since the pandemic.
The Politburo, led by President Xi Jinping, yesterday pledged to issue and use government bonds to better implement the leading role of public investment. The comments come as analysts warn that China risks failing to meet its official economic growth target this year.
The politburo typically does not hold economic sessions in September, suggesting a heightened sense of urgency over growing deflationary pressures, Morgan Stanley analysts said.
But they said the Chinese government did not yet appear to have made up its mind to do the right thing about the economy. Here is more information on the politburo statement and how the markets reacted.
And here's what I'm keeping an eye on today:
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Economic data: Japan publishes its trade statistics for the month of August and China announces its industrial profits for the same month. On Sunday, Vietnam will release its September inflation data and third-quarter GDP.
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Japan leadership vote: The Liberal Democratic Party holds a leadership vote, deciding the new prime minister. Here are the front runners to succeed current Prime Minister Fumio Kishida, who declared last month that he would not run for re-election.
How closely have you followed the news this week? Take our quiz.
Five other headline news
1. Exclusive: Saudi Arabia is ready to abandon its unofficial price target of $100 per barrel for crude as it prepares to increase production. The prospect of Riyadh abandoning its target is a sign that the kingdom is resigned to a period of falling oil prices, according to people familiar with the country's thinking.
2. A company backed by Clayton, Dubilier & Rice and Hellman & Friedman, BlackRock and Singapores GIC is preparing one of the largest debt-fueled dividend payouts in private equity history. Belron, the world's largest windshield repair company, is in talks with lenders to raise $8.1 billion through new bonds and loans to fund the $4.4 billion dividend.
3. New York Mayor Eric Adams has been accused of fraud and corruption. about a long-running alleged scheme to solicit money and luxury trips from Turkish government officials and other wealthy foreign donors. These explosive charges mark the first criminal case in modern history against a sitting New York mayor.
4. Israeli Prime Minister Benjamin Netanyahu vowed yesterday that Israel would continue its offensive against Hezbollah in Lebanon, casting doubt on the diplomatic efforts led by the United States for a ceasefire to avoid a full-scale war. Netanyahu spoke in New York, where he is scheduled to address the UN General Assembly today.
5. Global companies have retreated in recent months to pursue blockbuster takeovers of rivals, with high-profile deals such as Mars' purchase of Kellanova and Verizon's takeover of Frontier Communications raising hopes of a resumption of negotiations. As the total number of deals fell to a nine-year low, bankers said boardroom sentiment had become more optimistic.
The big read
The scale and pace of China's transition away from fossil fuels has exceeded international predictions, exceeded Beijing's goals and alerted the rest of the world. But to wean the country off coal, Chinese authorities must impose a politically toxic overhaul of the electricity system, a long and thorny process that has already lasted decades.
We also read…
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A madness of Chinese billionaires in Silicon Valley: Shan Xiangshuang's $10 billion buyout group has quietly become one of America's leading technology investors. Then his direct train to Silicon Valley attracted the attention of the FBI.
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Eight minutes from Tokyo: Is the walk from work to the metro too long? Apparently, according to Goldman Sachs. Leo Lewis explains why commuting in Tokyo has become a concern for investment banking.
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Couche-Tards 7-Eleven bid: The driving force behind the Canadian group's quest for the largest convenience store chain in the world is pathological entrepreneur Alain Bouchard.
Chart of the day
Could this radically shaped plane change the future of commercial flight by 2030? Inspired by the US Air Force's B-2 stealth bomber, the new JetZeros aircraft promises to be both quieter and more fuel efficient.
Take a break from the news
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Additional contributions from Gordon Smith and Tee Zhuo
