Bloomberg - Evening Briefing - ‘The answer is no’

“If we allow Ukraine to be carved up, is the independence of any nation secure?” US President Joe Biden asked world leaders gathered Tuesday at the United Nations. “The answer is no.” Biden urged the nations represented at the General Assembly to back Ukraine in its struggle to repel Russia’s invasion, even as Kyiv’s allies brace for a long-term conflict—perhaps longer than the 19 months of Kremlin-inflicted destruction that has already claimed tens of thousands of Ukrainian lives. The plea to continue support of Kyiv came as Biden prepares to host President Volodymyr Zelenskiy at the White House on Thursday. The Ukrainian leader will also meet with members of Congress to make his case for more aid. Ukrainian forces are engaged in a grueling counteroffensive to retake land lost to Russia, and Zelenskiy has pressed allies for additional assistance. He also spoke to the UN, warning that Vladimir Putin is weaponizing food and energy in his bid to crush Ukraine. The climate crisis also dominated the opening of the annual UN meeting in New York. Here’s the latest. —Margaret Sutherlin

Instacart jumped as much as 43% in its trading debut, adding momentum to a rebound for initial public offerings this year. The grocery delivery company’s shares opened trading Tuesday at $42 each for the year’s fourth-biggest US IPO. Investors are betting that Instacart’s future isn’t in gig-work, but a robust consumer data and advertising business. The company’s IPO may also be a bellwether for both the food delivery industry and other startups aiming to make money off consumer data. 

The United Auto Workers said more of its members will go on strike at General Motors, Ford and Stellantis facilities starting at noon Friday unless substantial headway is made toward new labor contracts. Friday marks one week since 13,000 UAW workers walked-out for the first time across all three of the legacy Detroit manufacturers. Meanwhile auto-parts makers have more than $38 billion of revenue at risk if strike drags on.

Indian leader Narendra Modi’s government denied allegations from Canadian Prime Minister Justin Trudeau that India orchestrated the murder of a prominent Sikh separatist leader Tuesday, calling the claims “absurd.” Both nations expelled one of the other’s diplomats. For the US, the confrontation over the killing may leave it caught between one of its closest allies and an increasingly important counterweight to China.

Tory Prime Minister Rishi Sunak is considering diluting some of his green policies, including delaying a 2030 UK ban on new gasoline and diesel cars and weakening a plan to phase out gas boilers. Britain has a goal of reaching net-zero carbon emissions by 2050, but Sunak has faced pressure from his party to scale back plans.

Rishi Sunak Photographer: Dan Kitwood/Getty Images Europe

The world economy may be set for a slowdown as interest-rate increases weigh on activity and China struggles to right its ship. Global growth will ease to 2.7% in 2024, the slowest since the Covid-19 outbreak, according to the latest OECD forecasts. Besides increasing attention on China’s economic challenges, national leaders are concerned about how corporations are picking sides when it comes to politics. Experts are warning it could tear the global economy apart. 

New US home construction dropped 11.3% in August to the lowest level since June 2020, highlighting the toll of declining housing affordability. The drop was largely driven by a sharp decline in multifamily construction. The recent rise in mortgage rates has also helped drive housing affordability to record lows, suppressing demand and souring builder sentiment. But there’s a twist: applications to build—a proxy for future construction—picked up by the most in almost a year. Markets were slightly lower ahead of Wednesday’s Federal Reserve rate decision. Here’s your markets wrap.

Bankrupt crypto exchange FTX sued former chief executive Sam Bankman-Fried’s parents, Allan Joseph Bankman and Barbara Fried. They allegedly exploited their access and influence within FTX to “enrich themselves, directly and indirectly, by millions of dollars,” at the expense of the debtors and creditors, the company alleged in court papers. The couple’s lawyer denied the allegations. The role Bankman and Fried played at the company has been coming under increased scrutiny.

Barbara Fried, mother of former FTX CEO Sam Bankman-Fried, leaves a bail hearing for her son on Aug. 11 in New York. Photographer: Fatih Aktas/Anadolu Agency via Getty Images

• Azerbaijan attacked Armenian positions in Nagorno-Karabakh.
• There’s no evidence China can make advanced semiconductors “at scale.”
• Share buybacks surge in one of the world’s worst performing markets.
• Amazon to hire 250,000 people for holidays, 100,000 more than 2022.
• Microsoft accidentally uploaded secret Xbox plans to a government site.
• Vanderbilt attacks US News over its slide in college rankings.
• NBA star Kevin Durant launched a sports business advisory firm.

Smartphone makers are in dire need of something new. The global smartphone market fell 7.8% in the three months ended in June, the eighth consecutive quarter of year-over-year contraction. So everyone (except Apple) is betting you’re going to want a foldable phone.

A Samsung Galaxy Z Fold 5 smartphone and the Galaxy Z Flip 5 smartphone.   Photographer: SeongJoon Cho/Bloomberg

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