Bloomberg - Evening Briefing - Burning the records

Tokyo smashed a 150-year-old heat record. Rome recorded its hottest temperature ever. Phoenix hit 110 degrees—for the 19th straight day. The world is burning up under extreme heat waves turbocharged by man-made global warming. June was already the hottest on record—and 10 of the hottest days of the year were in July. Wild weather patterns—from flooding in the Eastern US to extraordinary wildfires in Greece, Switzerland and Canada—underscore the life-threatening seriousness of a dangerously changing climate. Heat waves are increasingly deadly as they become more frequent and longer. Last year’s heat wave in Europe killed 61,000 people according to one study. Right now, the world’s two biggest emitters of the greenhouse gas emissions fueling the disaster are having a meeting. As part of a broader effort to improve ties, US Climate Envoy John Kerry and his Chinese counterpart Xie Zhenhua have sat down for three days of talks, which experts say is a step forward. Though given the state of relations between the US and China, the bar is low. —Margaret Sutherlin

A US soldier is being held by North Korea after crossing the border into the country. The AP reported Travis King was allegedly set to be disciplined by the military before he crossed into North Korean territory. He’s the first American to be held by North Korea in at least five years. 

Ukraine is scrambling to continue grain exports from key ports after Russia withdrew from a deal. But insurers and shippers are skeptical, especially since the US said escorting the grain was a no-go. Ukraine has asked Turkey, which brokered the deal, and the United Nations if they will continue to support it. The termination of the agreement raises the specter of global food insecurity again. Poland, Slovakia, Hungary and others however said they wouldn’t import Ukrainian grain. Meanwhile over in Belarus, about 2,500 Wagner mercenaries have been gathering since their failed mutiny against Moscow.

Hollywood is on strike. UPS is nearing a strike. And now 22,000 Teamsters workers at short-term trucking company Yellow plan to walk out as soon as next week. 

Photographer: Joe Raedle/Getty Images

Just a few months after turmoil rocked lenders big and small and forced regulators to hastily put together deals, banks are beating earnings expectations. After more than a year in the dealmaking doldrums, Wall Street giants are finally seeing signs of life in capital-markets. The positive news, along with a surprise fixed-income trading gain at Bank of America and upbeat comments from Morgan Stanley executives, helped lift the shares of financial firms. Here’s your markets wrap.

When an unusually strong, drug-resistant bacteria showed up in a patient in May 2022, it took the US Food and Drug Administration eight months to identify the culprit: over-the-counter eyedrops made in India. What made the outbreak possible is a gaping hole in the FDA’s supervision of these kinds of medicines. Over-the-counter drugs are essentially produced and sold on the honor system. A company doesn’t have to prove to the agency that its medicine is safe or effective or that it’s being made in proper conditions. There’s no testing involved; no inspection required. Basically, it comes down to paperwork. In the era of the superbug, it’s not enough—and the results can be gruesome.

EzriCare Artificial Tears Source: Bloomberg

US policymakers, eager to nurture the country’s own electric-car supply chain, mostly agree that Chinese raw materials shouldn’t play a prominent role in future American-made EVs. But what about battery materials produced with Chinese capital in other nations? Does that count? That thorny question has emerged as a key hurdle as the Treasury Department fleshes out details of President Joe Biden’s landmark climate law. 

Student athletes are finally making money on social media and through business deals. However, the majority of those benefiting from new college rules are making small, one-off agreements without help from expensive lawyers or agents—and that’s opened the door for new forms of scams.

• Donald Trump says he’s being investigated for the Jan. 6 insurrection.
• Janet Yellen says a tightening labor market is what’s cooling inflation. 
• After a pandemic boost, American credit scores are starting to slide again.
• Warner Music inks a TikTok deal, but the app failed a stress test.
• Just 1% of homes in the US have changed hands this year. 
• The UK’s richest person is making moves to buy Manchester United. 
• This Tesla investor rode a 14,800% gain.

What country has the world’s most powerful passport—with 192 visa-free entries around the globe? For years it was Japan, but now Singapore has the top spot. See who else is on the rise.

Photographer: Roslan Rahman/AFP

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