Bloomberg - Evening Briefing - Kevin McCarthy gets fired

Bloomberg Evening Briefing

The third-most powerful elected politician in the US government just lost his job. While many on Capitol Hill applauded Kevin McCarthy’s decision to forge a compromise and avoid a government shutdown, he just paid a high personal price. The California Republican lost a pivotal vote and was removed from the role of House Speaker in an unprecedented demonstration of the power his far-right opponents wield over the GOP. They had warned McCarthy to abide by their demands over the budget face-off or suffer the consequences—laid out in the terms of the deal that made him Speaker in the first place. To survive the fallout, McCarthy would have had to ink a last-minute alliance with skeptical Democrats, but it was not to be. In the end, he was unable to negotiate with either side to keep his gavel. Now, with no clear successor and half of the legislative branch of the US government in disarray, the chances of avoiding a shutdown when the current deal ends are shrinking. 

Here are today’s top stories

A key demand among far-right Republicans has been to kill off US funding of Ukraine’s effort to beat back the Russian invasion. One clear beneficiary of the political maelstrom in Washington appears to be Vladimir Putin, whose effort to crush his neighbor now depends in part on western nations, and in particular the US, depriving Ukraine of the ability to defend itself.

Several Taiwanese technology companies are helping Huawei Technologies build infrastructure for an under-the-radar network of chip plants across southern China, an unusual collaboration that risks inflaming sentiment on a democratic island grappling with Beijing’s growing belligerence. At a time when China threatens Taiwan regularly with military action for even contemplating independence, members of the island’s most important industry may be helping US-sanctioned Huawei develop semiconductors to effectively break an American blockade

Canada’s foreign minister said the government is still in discussions with India about Canada’s diplomatic presence in the country as a dispute rages over the murder of a Sikh separatist leader in a Vancouver suburb. Melanie Joly said Tuesday that Canada is in “constant cooperation and dialogue with India” after reports that Canada has been instructed to reduce the number of diplomats by two-thirds—a move that would send dozens of staff home and significantly reduce the nation’s contingent in New Delhi.

An image of Jathedar Hardeep Singh Nijjar displayed at the Guru Nanak Sikh Gurdwara temple in Surrey, British Columbia. Relations between Canada and India soured when Prime Minister Justin Trudeau accused India of orchestrating the June killing of Nijjar. Photographer: Don Mackinnon/AFP

US job openings unexpectedly increased in August, fueled by a surge in white-collar postings and highlighting the durability of American labor demand. The number of available positions increased to 9.61 million from a revised 8.92 million in July, the Bureau of Labor Statistics said Tuesday. The level of openings topped all estimates in a Bloomberg survey of economists. The pickup in openings reflected a more than half-million increase at professional and business services as well as more postings in finance and insurance, education and non-durable goods manufacturing.

All that good news for job seekers was seen as bad news on Wall Street. The S&P 500 Index plunged to the lowest level since June as the Dow Jones Industrial Average wiped out its gains for the year. The employment news doesn’t bode well for those focused on when the US Federal Reserve will start lowering interest rates. “Investors are worried that if rates stay higher for longer and we slow down the economy far enough to battle inflation, we’ll slide into a full-blown recession,” said Kim Forrest, founder and chief investment officer at Bokeh Capital Partners. “There is a lot of fear about what could go wrong.” Here’s your markets wrap.

Intel plans to turn its programmable chip division into a standalone business and either sell shares to the public or seek an investor for it, part of Chief Executive Officer Pat Gelsinger’s efforts to wring more value from the semiconductor company. Programmable chips can have their function changed or updated even after they’ve been installed in electronic devices. 

Singapore is investigating the role that some single family offices played in one of the city’s largest money laundering cases and weighing further rules on the sector. Authorities found that one or more of the accused in the case involving more than S$2.8 billion ($2 billion) of assets may have been linked to single family offices that were awarded tax incentives, Minister of State Alvin Tan said in parliament on Tuesday.

What you’ll need to know tomorrow

Japan Bullet Train Pass Soars 70%—for Tourists

Tourists in Japan will pay more for rail passes after the JR train network raised prices for the first time in four decades, by an average of 70%. From the start of this month, a rail pass offering 14 days of unlimited travel across Japan costs ¥80,000 ($534), up from ¥47,250. The JR group of six train operators contends that previous fares were set when there were fewer bullet-train destinations and that higher prices are justified with services extending into the northern regions. 

Passengers wait to board a bullet train at Tokyo Station in August. Photographer: Shoko Takayasu/Bloomberg

Older messages

More rate hikes

Monday, October 2, 2023

Bloomberg Evening Briefing View in browser Bloomberg As cooler air descends across some parts of the US, so too has a chill arrived on Wall Street to dispel warm feelings of inflation's defeat and

‘It’s a clown show’

Saturday, September 30, 2023

Bloomberg Weekend Reading View in browser Bloomberg Barring a last-second miracle, the US government will shut down at midnight Sunday—a once-extreme measure that's become increasingly common in a

Starting to buckle

Friday, September 29, 2023

Bloomberg Evening Briefing View in browser Bloomberg Autoworkers on strike. A looming government shutdown. Energy prices on a tear. Fresh pressure points are appearing that potentially challenge the

Time is running out

Thursday, September 28, 2023

Bloomberg Evening Briefing View in browser Bloomberg With two days left before a likely US government shutdown, more collateral damage is coming into view. The refusal by far-right Republicans to deal

The price to be paid

Wednesday, September 27, 2023

Bloomberg Evening Briefing View in browser Bloomberg So who pays the price if Congressional Republicans shut down the US government? Such an event—which looks increasingly likely—would inflict

China’s man to watch

Wednesday, November 29, 2023

Bloomberg Evening Briefing View in browser Bloomberg Saudi Arabia is dangling economic investment in the sanctions-stricken economy of Iran, its longtime regional rival. There is however one string

⭐️ Legendary Charlie Munger learnings

Wednesday, November 29, 2023

Charlie Munger, Warren Buffett's right-hand man, passed away | German and Spanish inflation came in lower than expected | Finimize TOGETHER WITH Hi Reader, here's what you need to know for

Insider Today: An investing legend dies

Wednesday, November 29, 2023

Plus: Tesla Cybertruck mystery, and surviving a 9-to-5. View in browser November 29, 2023 • 5 min read with Dan DeFrancesco Hey there! The cold weather has arrived for parts of the US, and that means

[New post] Supply chain disruptions: shocks, links, and hidden exposure

Wednesday, November 29, 2023

BankUnderground posted: " Rebecca Freeman, Richard Baldwin and Angelos Theodorakopoulos Supply chain disruptions are routinely blamed for things ranging from elevated inflation to shortages of

‘Double barreled’ optimism

Tuesday, November 28, 2023

Bloomberg Evening Briefing View in browser Bloomberg Knowledgeable investors big and small are bidding up stocks in a fresh sign of confidence that November's impressive equity rally will continue.

👗 Shein's slow IPO

Tuesday, November 28, 2023

For a fast fashion retailer, Shein's public listing has been slow to come around | Reddit entered talks with investors ahead of a potential IPO | Finimize TOGETHER WITH Hi Reader, here's what

🧶 How to untangle overspending

Tuesday, November 28, 2023

Plus: What to do with a holiday bonus (if you get one). ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

💸 Holiday spending to hit record numbers this year

Tuesday, November 28, 2023

Are you protected from online scams? ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Americans regret moving

Tuesday, November 28, 2023

Fleeing big cities turned out to be a big disappointment. View in browser BUSINESS INSIDER BUSINESS INSIDER Subscribe INSIDE SCOOP Chelsea Jia Feng/BI Americans ditched big cities during the pandemic.

Is your oxygen mask on?

Tuesday, November 28, 2023

Invest in yourself with two free months of Ellevest. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌