The New York Times - Tuesday Briefing: Global markets fell

August 6, 2024

	By Justin Porter

Good morning. We’re covering the fall of global stock markets and the resignation of Bangladesh’s prime minister.

Plus, LeBron James at the Paris Olympics.

A man on the floor of the New York Stock Exchangec scratching his forehead.

On the floor of the New York Stock Exchange yesterday. Richard Drew/Associated Press

Stocks tumbled over fears of a U.S. economic slowdown

A wave of anxiety rippled through financial markets yesterday. Stocks fell in the U.S. and around the world as investors zeroed in on signs of a slowing American economy.

The drop extended a sell-off that began on Friday after the U.S. released a jobs report that showed the highest level of unemployment in nearly three years. This deepened fears that the world’s largest economy could be headed for slower growth.

In the U.S., the S&P 500 fell 3 percent, its worst day since September 2022. In Japan, the Nikkei 225 index dropped 12.4 percent, its biggest one-day point decline. The FTSE 100, Britain’s benchmark index, had its worst day since July 2023, falling just over 2 percent.

There were other factors at play in the plunge: concerns that tech stocks had run up too far, too fast, and that a strengthening yen could hurt the prospects of Japanese companies and some global traders. In the U.S., some questioned whether the Federal Reserve may have waited too long before cutting interest rates. Here’s the latest on the market meltdown.

Time to sell? It’s tough to do nothing during this kind of market turmoil. But in this case, it’s your best option, Ron Lieber, our Your Money columnist, writes.

Protesters waving flags and massed on the roof and stairs in front of the prime minister’s residence.

Protesters at the prime minister’s residence in Dhaka. K M Asad/Agence France-Presse — Getty Images

Bangladesh’s leader resigned and fled

Crowds celebrated in the streets of Dhaka, the capital, yesterday after Prime Minister Sheikh Hasina resigned and fled the country. The army chief said the military would oversee the formation of an interim government.

Hasina was forced out by weeks of protests that began peacefully and then transformed into deadly clashes with security forces. Almost 100 people were reported killed on Sunday, the deadliest day of the unrest.

Responding to the bloodshed, the protesters marched to Hasina’s residence. Hasina fled in a helicopter, and a crowd stormed the building. Looters made off with furniture, bedding and potted plants. Hasina’s current location isn’t clear. She has family in both the U.S. and Britain.

Here’s the latest.

Background: Hasina, 76, was one of the world’s longest-serving female leaders. Under her rule, the economy grew quickly and the country saw rapid development. But she also jailed her political opponents and was criticized as an authoritarian.

What’s next: Her departure doesn’t guarantee easy days ahead. The process of agreeing on an interim government could be bumpy, Mujib Mashal, our South Asia bureau chief, writes.

🇺🇸 U.S. ELECTION 2024

The presidential election is less than 100 days away. This is what we’re watching.

Vice President Kamala Harris in a light blue jacket shaking hands at a restaurant.

Vice President Kamala Harris plans a five-day tour with her running mate this week. Erin Schaff/The New York Times

Harris is poised to announce her running mate

The campaign to be Vice President Kamala Harris’s running mate is reaching its final hours.

Three contenders — Gov. Josh Shapiro of Pennsylvania, Senator Mark Kelly of Arizona and Gov. Tim Walz of Minnesota — met with Harris in Washington on Sunday. After announcing her pick, Harris plans to hold a first rally with her new running mate in Philadelphia today.

Here’s what else to know:

The elevation of Harris to the top of the Democratic ticket has transformed what had been a long slog into a fast-moving campaign. Analysts said that the timeline was likely to benefit Harris.
In a live interview with a video gamer, Donald Trump appeared to blame immigrants for the drop in global stock markets.
In a new book, Nancy Pelosi, the former speaker, said that her quiet but firm push for President Biden to withdraw had come down to one factor: The need to defeat Donald Trump.

Do you have questions about the election? Send them to us and we’ll find the answers.

Stay up-to-date: Live coverage | Poll tracker | The “Run-Up” podcast | On Politics newsletter

MORE TOP NEWS

A police officer holds up a baton in one hand and a shield in the other. He is facing protester, who is holding a white grate. A fire burns in the background.

Protesters clashed with police officers in Rotherham, England, on Sunday. Hollie Adams/Reuters

Britain: Prime Minister Keir Starmer held an emergency meeting after vowing to crack down on riots fueled by anti-immigrant disinformation.
Israel: Defense Minister Yoav Gallant visited a command center amid threats of retaliation from Iran. “We must be prepared for anything,” he said.
Tech: Google acted illegally to maintain a monopoly in online search, a U.S. judge ruled, a decision that may alter the way big tech companies do business.
Myanmar: Rebel fighters said they had seized a military base near the border with China in what would be a significant victory against the ruling junta.
Niger: The U.S. military turned over control of its last base to Nigerien forces, even as violent extremism continues to rise in the Sahel region.
U.S.: Tropical Storm Debby battered Florida, where millions of people were under flash flood alerts, leaving at least four people dead.
South Korea: Workers at Samsung Electronics returned to work after failing to win concessions in a strike against the global tech giant.
Japan: The number of foreign workers has quadrupled since 2007, but the country’s policies still make it clear that they are welcome only for short-term stays.

Olympics

Three female Olympic gymnasts hold up their medals.

Simone Biles, Rebeca Andrade and Jordan Chiles. Chang W. Lee/The New York Times

Gymnastics: Simone Biles came away with a silver from the women’s floor exercise final, the last gymnastics event of the Games. Rebeca Andrade won gold on the floor.
Surfing: The men’s and women’s semifinals and final are on in Tahiti, after having been suspended earlier because of wave conditions.
Track: How did Noah Lyles take gold in the men’s 100-meter? By a fraction. Take a look.

MORNING READ

LeBron James dunks a basketball. Three players stand behind him on the court.

LeBron James went for a dunk during a preliminary-round game in Paris. Gregory Shamus/Agence France-Presse — Getty Images

During LeBron James’s two decades in the N.B.A., basketball’s popularity has exploded internationally, largely because of his influence. Advances in technology and lucrative media deals meant that teenagers all over the world could easily watch his games.

Now, at the Paris Olympics, he is playing in front of — and against — people who grew up dreaming of seeing him in person.

CONVERSATION STARTERS

Speaking out: The dissident Ilya Yashin called his release in a prisoner swap an “illegal expulsion” from Russia. This is why he wanted to stay.
Art vs. activism: As the literary world is roiling in fights over politics and war, are we losing sight of the writer’s purpose?
Work-life balance: Some South Korean companies are asking executives to work six days a week, worrying some in a country already used to working long hours.

We hope you’ve enjoyed this newsletter, which is made possible through subscriber support. Subscribe to The New York Times .

ARTS AND IDEAS

In a backstage area, a group of people gather around large puppets, including a long blue-and-white dragon and a giant white mask.

Some of the crew behind the stage version of “Spirited Away.” Will Sanders

Everyone who made ‘Spirited Away’ happen onstage

The stage version of Hayao Miyazaki’s classic film, now showing at the London Coliseum theater, has 65 puppeteered elements in all — from dynamic particles of soot to a menacing bird with wings rendered from piano wire and sheet nylon. It took about four years and three months for around 70 people, including 30 performers, to put on this show.

One of the more challenging tasks was building the dragon puppet, Haku. The large puppet is covered in hand-carved scales with a mane composed of 5,000 strands of blue tubular crinoline. Four people are needed to operate it.

Sometimes it takes a small army to produce a single work. Take a look at the teams behind four other outsize projects.

RECOMMENDATIONS

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Linda Xiao for The New York Times. Food Stylist: Monica Pierini.

Cook: A pure chicken meatball may lack moisture. Adding zucchini solves that problem.

Watch: Here are some questions on our minds after the season 2 finale of “House of the Dragon.”

Debunk: Influencers might have you thinking the wrong way about stress hormones. Here’s some clarity.

Play: Spelling Bee, the Mini Crossword, Wordle and Sudoku. Find all our games here.

That’s it for today. See you tomorrow. — Justin

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