Squeezed: The Bloomberg Open, Asia Edition
Good morning. Tesla faces fresh fees on its China-made cars. The carry trade is back, but with a twist. And SiriusXM nabs Call Her Daddy.
Tesla imports from China into the EU will be subject to an additional 9% tariff, while the bloc lowered previously proposed levies for Chinese manufacturers. The new duties are on top of the 10% that exporters from the country are already paying.
Mike Lynch and Morgan Stanley’s Jonathan Bloomer are among those feared dead after the yacht Bayesian sank in a storm off Sicily, Italian authorities said. Lynch’s daughter, Bloomer’s wife and Clifford Chance lawyer Chris Morvillo and his wife are also missing.
US stocks halted a furious August rally that had the S&P 500 on the cusp of a fresh high and its longest winning streak in 20 years. Asian equity futures are pointing down. The yen strengthened in New York trading.
Beijing may allow local governments to fund purchases of unsold housing by issuing special bonds, people familiar said. The debt can now only be used for infrastructure and environmental projects.
The carry trade is back, Citi said, but with a key difference—borrowing is now in US dollars after a pullback in short yen wagers.
JPMorgan dropped a proposal to change the way it calculates its flagship EM bond index that would have cut China’s share by almost half. It’s now focused on the case for including the Philippines and Saudi Arabia. China is studying the impact of a stronger yuan on exporters.
The world’s biggest ports are vital pawns in a new era of geopolitics, and they’re spending billions to keep up with demand.
In other news:
China can’t replicate its 2015-2017 success in reducing supply to tackle deflation, Shuli Ren writes. Beijing has less sway in the sectors overproducing now and some firms may want to use excess output to drive out weaker rivals. Stimulus also won’t be as effective.
Kamala Harris and Tim Walz should show their worldliness when discussing foreign policy, Andreas Kluth writes. They can offer nuance and internationalism as well as strength against the Republicans’ nationalism and provincialism.
Podcaster Alex Cooper jumped to SiriusXM from Spotify, signing a $100 million deal for Call Her Daddy and other shows. The agreement for the comedy and advice podcast, which has more than 4 million followers, runs more than three years.
Bloomberg CEO Forum: All eyes are on an Indonesia in transition. Will President-elect Prabowo Subianto follow through on his pledge to continue President Joko Widodo’s policies? Can the new administration create an understanding of how and where global investment should flow? Join us Sept. 4 in Jakarta for a series of conversations on the trends, risks and opportunities facing Indonesia and the region’s other economies. Register here .