How would a President Harris make her mark on the US economic system?

Right this moment’s prime tales

• France suspended high-speed rail providers throughout a lot of the nation after the community was hit by sabotage assaults hours earlier than the Olympic Video games opening ceremony. Brasseries, outlets and different small companies in Paris are struggling a pointy drop in gross sales as footfall dwindles earlier than the Video games get underneath approach.

• US inflation fell to 2.5 per cent within the yr to June, in keeping with the Federal Reserve’s most popular measure of inflation, protecting the central financial institution on track for at the least one rate of interest reduce this yr. 

• UK chancellor Rachel Reeves is predicted on Monday to disclose a £20bn gap within the public funds because of what she says is a failure of the earlier administration to correctly run the federal government funds. 

For up-to-the-minute information updates, go to our reside weblog

Good night.

It’s been one other momentous week in US politics. 

It started with Democrats downcast as President Joe Biden stop his bid for re-election whereas his rival Donald Trump rode excessive within the polls after surviving an assassination try. It ended with Biden’s alternative Kamala Harris re-energising the celebration and getting a bump within the polls as well. However what would a Harris presidency imply for the economic system and enterprise?

As Biden’s vice-president, Harris has been a robust supporter of his efforts to convey down inflation and has stated bringing down the worth of petrol and different every day prices was a “prime precedence”.

She has additionally championed Biden’s efforts to spice up infrastructure funding and pace up the transition to greener vitality. She has centered significantly on the care economic system, pushing entry to reasonably priced childcare and a greater deal for the aged. She additionally backed tax credit for folks on decrease incomes and better taxes on the rich.

On commerce Harris has insisted she’s “not a protectionist Democrat” however has come out in opposition to offers such because the Trans-Pacific Partnership due to a scarcity of environmental protections. She is nevertheless strongly against Trump’s plans to impose across-the-board tariffs, arguing that the levies would damage customers.

Amongst her senior financial advisers are Mike Pyle, previously of BlackRock and a key participant in industrial coverage, and Deanne Millison from Ford, an advocate for small enterprise. (You’ll be able to learn extra in our Who’s Who on Crew Kamala).

Harris has loads of backers on Wall Road, together with veteran dealmaker Blair Effron and Blackstone president Jonathan Grey, whereas tech allies embrace Microsoft’s Brad Smith and Sheryl Sandberg, previously of Meta. She additionally has loads of assist in Hollywood (in addition to being a California native, her husband Doug Emhoff is a well-regarded leisure lawyer).

Dealmakers in the meantime have been adjusting their bets since JD Vance was confirmed as Republican vice-president candidate and Harris because the Democrat nominee. 

In addition to being the continuity candidate, many choose Harris for her thought-about strategy over the anti-corporate, populist and isolationist rhetoric voiced by Vance. Some even suppose she might change Lina Khan as Federal Commerce Fee chief for somebody extra deal-friendly, significantly on the subject of antitrust points.

Harris’s assured begin has given her a lift within the polls, and whereas she continues to gather endorsements, together with at present’s belated backing from the Obamas, she nonetheless faces an uphill battle to defeat Donald Trump, in keeping with new evaluation from the FT’s John Burn-Murdoch.

“Harris is a a lot stronger candidate than Biden was, however in an election held at present, she would nonetheless lose,” he writes. “To win in November she should stroll the tightrope to win over the remaining undecideds with out alienating others alongside the way in which.”

Harris’s subsequent massive transfer is her decide for working mate. The favourites are a trio of governors: Pennsylvania’s Josh Shapiro, Michigan’s Gretchen Whitmer and Kentucky’s Andy Beshear. US nationwide editor Edward Luce in at present’s Swamp Notes e-newsletter (for Premium subscribers) argues nevertheless that the sensible alternative can be Pete Buttigieg, Biden’s transportation secretary.

Must know: UK and Europe economic system

The brand new UK authorities unveiled a partnership between the state-owned GB Power and the Crown Property, which manages the monarch’s legacy portfolio of land and seabed, to speed up the constructing of offshore wind generators.

Our newest Huge Learn examines Russia’s booming shopper economic system. Heavy state spending and labour shortages have led to hovering actual wages however economists suppose the celebration may quickly be over.

Separate surveys in France and Germany advised enterprise confidence has fallen sharply, elevating fears that the Eurozone’s two largest economies are heading for a downturn.

Must know: World economic system

The US economic system grew at a a lot better than anticipated 2.8 per cent within the second quarter, a big leap from the 1.4 per cent within the earlier three months.

China’s younger are seething at a proposal to boost the retirement age.

Bangladesh’s clothes trade is in chaos after authorities imposed a curfew and communications blackout as a part of a crackdown on scholar protesters, forcing factories to close and disrupting shipments from the world’s second-largest clothes exporter.

Indonesia is making an attempt to cut back Chinese language funding in new nickel initiatives to assist its trade qualify for tax breaks within the US. The nation has change into the world’s largest provider because of an enormous inflow of Chinese language capital.

Do Taylor Swift’s live performance excursions actually add a whole lot of hundreds of thousands to a rustic’s economic system? The misperception highlights our tendency to worth what we see, over what’s hidden, writes FT chief author Tej Parikh.

Must know: Enterprise

The EU’s drug regulator rejected a breakthrough Alzheimer’s therapy by drugmakers Eisai and Biogen, warning about uncommon mind swelling side-effects.

OpenAI launched SearchGPT in a problem to Google’s $175bn a yr search enterprise. It was developed with suggestions from publishers that OpenAI has just lately signed offers with, together with Information Corp and the Monetary Instances.

The European Central Financial institution discovered “shortcomings” in banks’ capacity to face up to cyber assaults in its first evaluation of their resilience.

Falls in earnings at Stellantis and Nissan, two of the largest automotive producers, fuelled fears that the worldwide trade was heading for a downturn. Each blamed more and more cut-throat competitors within the US and slowing gross sales of electrical autos.

A bitter authorized warfare has damaged out among the many Murdochs after media baron Rupert Murdoch moved at hand management of his household belief to his eldest son, Lachlan.

American and Southwest Airways turned the most recent carriers to slash revenue forecasts. Throughout the trade, ticket worth falls pushed by surplus capability have added to fears that the “revenge journey” period is drawing to a detailed.

Science round-up

The variety of employees affected by the “silent killer” of excessive warmth in Europe and central Asia has elevated by nearly a fifth since 2000, the UN stated because the world this week skilled its hottest days. The worldwide common floor temperature hit 17.16C on Monday.

The world’s oceans have absorbed 90 per cent of extra warmth and 1 / 4 of human-caused carbon dioxide emitted throughout the industrial period. A Huge Learn discusses whether or not they may very well be reaching their limits of their important function of defending the planet.

Ocean flooring metals coveted by mining firms can electrically produce “darkish oxygen”, in keeping with new analysis that can stoke debate over the influence of seabed commercialisation.

Synthetic intelligence has helped ship a breakthrough in correct long-range climate and local weather predictions. A mannequin led by Google referred to as NeuralGCM efficiently harnesses AI to traditional atmospheric physics fashions to trace decades-long local weather tendencies and excessive climate occasions.

AI breakthroughs are additionally creating new “brains” for superior robots that would rework healthcare and manufacturing.

In additional discouraging AI information, new analysis highlights how the usage of computer-made “artificial information” to coach AI fashions may result in nonsensical outcomes.

GSK’s Shingrix vaccine for shingles is the most recent drug to indicate potential for concentrating on beforehand untreatable mind issues similar to dementia.

Some excellent news

A toddler who needed to have her eye eliminated as the results of a uncommon most cancers has been fitted with a specifically designed prosthetic utilizing the most recent 3D know-how by hospital specialists in Liverpool.