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Looming US ports strike threatens fresh supply chain crisis

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Businesses are bracing for a strike at three dozen US ports that could upend supply chains and raise prices just weeks before election day.

The International Longshoremen’s Association says its 25,000 members will walk off the job if the union does not come to a new agreement with the US Maritime Alliance, which represents carriers and marine terminal operators, before their contract expires on September 30.

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The contract covers all ports between Maine and Texas, including New York, Savannah, Houston, Miami and New Orleans.

They receive 41 per cent of the country’s port volume and their closure would have a “devastating impact” on the US economy, a coalition of 177 trade groups warned last week.

Business leaders say they have been tracking the labour negotiations since 2021, but became nervous when talks broke down in June over automation at the Port of Mobile. 

Official negotiations never resumed. Executives and economists assumed Washington would intercede as it did to prevent a freight rail strike in 2022, but President Joe Biden said last week he would not prevent labour action at the ports.

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The statement dramatically “rose the level of alarm”, said Moody’s Analytics economist Adam Kamins.

“The writing is on the wall here,” said Tom Madrecki, vice-president of the Consumer Brands Association. “There’s a lot of sabre-rattling. We all don’t want to strike, but I think we have to be prepared that there could be one . . . and it’s going to have a really serious impact on the economy.”

Business groups fear that such a major disruption to supply chains would dramatically raise the cost of importing materials, exporting products and warehousing shipments, which would raise consumer prices.

Businesses have already adopted costly mitigation plans as they face rising shipping costs and increased timelines from Houthi attacks in the Red Sea.

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Though some California ports suffered labour disruptions last year, the last major work stoppage was an 11-day lockout at west coast ports in 2002. That closure cost $1bn each day and caused six months of backlogs.

Trade groups representing retailers, restaurants, manufacturers, food producers and fashion designers are urging Biden to reverse his position.

Madrecki said that CBA has been in contact with the Biden administration on the issue for more than a year but fears that the November 5 presidential election has “coloured the politics” of the labour dispute.

Labour unions are a crucial part of Vice-President Kamala Harris’s voting bloc and ILA leadership has repeatedly said that they would not welcome government interference in the labour dispute.

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“This administration has prided itself on all the work they’ve done on supply chain resiliency. Well, this is an issue that is right in front of us that can be averted,” said the National Retail Federation’s Jonathan Gold, who has also spoken with administration officials about the impending strike.

“A sleeping giant is ready to roar on Tuesday, October 1, 2024, if a new Master Contract Agreement is not in place,” ILA president Harold Daggett said in a statement accusing the USMX of underpaying workers. “My members have been preparing for over a year for that possibility of a strike.”

USMX said in a statement that it is “disappointing” that talks with the union broke down, and that “the only way to resolve this impasse is to resume negotiations, which we are willing to do at any time”.

Retailers worked to diversify their supply chains since the Covid crisis left shelves bare, and moved as many shipments as they could to earlier in the year to prepare for the crucial holiday shopping period.

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But shoppers will still notice shortages and higher prices if a strike lasts longer than “a couple of days,” Gold said.

Food retailers and suppliers are also “concerned about the potential effects a port strike would have on the food industry’s operations,” the Food Industry Association’s Doug Baker said in a statement.

But he added that the association was “confident that the food industry will be able to adapt to these rapidly evolving circumstances and find solutions to keep goods flowing should a strike occur”.

Consumer packaged goods manufacturers are not so confident. They fear they will not be able to reschedule or reroute shipments because many of the ingredients they import are perishable.

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“This is not an easily resolved thing,” Madrecki said. “We’re kind of pessimistic at this point.”

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Economics class: teaching ideas

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Recommended FT articles and tasks picked by our panel of teacher advisers to help improve study, exam and interview success, with suggestions on questions for class activities and discussion.

Read a selection of FT articles, sample exam questions and wider teaching materials produced in conjunction with Core (free registration required). Use FT articles mapped to the curriculum below:

  • Fiscal policy: UK government borrowing overshoots in blow to Rachel Reeves

  • Macroeconomic indicators: UK economy stagnated for second consecutive month in July

  • Demand and supply: UK retail sales boosted by warm weather in August

  • Price elasticity of demand: Eton College to pass on full cost of VAT on fees to parents

  • Labour markets. Podcast: Does pay transparency work?

  • Labour markets: ‘Insane’ pay rises for junior London lawyers raise concerns over culture

  • Price elasticity: Scarcity of organic cows puts pressure on UK milk supplies, warn experts

  • Demand for labour: UK’s gender pay gap will take decades to close at current rate

  • Price elasticity of demand: Labour to impose VAT on boarding as well as private school fees

  • Market structures: Labour plans to retain key private sector role in Britain’s nationalised railways

  • Demand and supply: UK rental costs rise at record 9.2%

  • Scarcity and choice: ‘It’s too wet’: UK food security at risk because of record rain, farmers warn

  • Fiscal policy: Searching in vain for the Laffer curve boost

  • Efficiency and productivity: Europe faces ‘competitiveness crisis’ as US widens productivity gap

  • Exchange rates: China props up renminbi ahead of leadership summit in March

  • Demand and supply: Royal Mail could cut deliveries to 3 days a week, says Ofcom

  • Development economics: America should not allow its trade programme with Africa to die

  • Market failure: UK to ban disposable vapes as Rishi Sunak warns of ‘endemic’ impact on youth

  • Labour markets: UK migration reforms will not end lower pay for foreign workers, says top policy adviser

  • Fiscal policy: Jeremy Hunt predicted to win multibillion-pound boost for tax cuts

  • Global economy: Chile

  • Market structures: Barclays and Santander announce cuts to UK mortgage rates

  • Monetary policy. Charles Goodhart: ‘We’re in for a fiscal crisis down the road and we don’t know how to solve it’

  • Government intervention film: How Biden’s Inflation Reduction Act changed the world

  • Labour market podcast: Rishi Sunak’s big fat Greek row

  • Fiscal policy podcast: Autumn Statement Reaction

  • Demand and supply: UK government to increase offshore wind subsidies by 66%

  • Competition: Local leaders seek to reverse 40 years of UK bus privatisation

  • Monetary policy: Russia tightens capital controls on western companies

  • Inflation: Millions of UK families could face cuts to value of their benefits next year

  • Demand and supply: The hard economic reality for anyone wanting to govern Britain

  • Market failure: Rishi Sunak considers move to ban smoking for next generation

  • Monetary policy: How long will the Bank of England keep interest rates high?

  • Fiscal policy: Is the state pension really ‘a Ponzi scheme’?

  • Labour markets: UK wages: which sectors are driving up pay?

  • The Global Economy: Vietnam

  • Podcast: Rishi Sunak’s dash for oil and gas

  • Video: Government Failure – Can UK childcare be fixed?

  • Monetary policy: Why are interest rate rises not taming inflation?

  • Privatisation versus nationalisation: Thames Water crisis could hit UK investment, ministers warn

  • Video: Business Objectives — Why did Carlyle’s CEO resign?

  • Video: Behavioural Economics — Are high petrol prices killing the American dream?

  • Video: Business Objectives — The ESG investment backlash begins to have an impact

  • Economic growth: UK economy returns to growth driven by consumer spending

  • Video: Public goods — When water security runs dry

  • Cartels: Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

  • Demand and supply: Why Britain’s households should expect energy bills to remain high

  • Labour markets: UK haulage industry forced to train army of homegrown drivers to cope with Brexit

  • Market failure: Fish exports are a drop in the ocean next to overseas student fees

  • Costs and revenues: Pret A Manger to increase cost of its coffee subscription by 20%

  • Market structures: Elon Musk signals willingness to sacrifice Tesla margins for market share

  • Monetary policy: Andrew Bailey raises prospect of increased UK bank deposit protection

  • Monetary policy: Yikes! What should I do with my mortgage?

  • Economic cycle: Are Jeremy Hunt’s plans really a ‘Budget for growth’?

  • Fiscal policy: UK prosecutions of tax evasion enablers drop by 80 per cent

  • Demand and supply: Tesla touts cost efficiencies as it gears up for more affordable model

  • Scarcity: Podcast — Northern Ireland — Rishi Sunak’s big test

  • Market structures: Profit motive to return to British rail network as part of long-awaited shake-up

  • Production: Is the IMF right about the UK economy?

  • Aggregate demand: China’s record $2.6tn rise in savings fuels ‘revenge spending’ hopes

  • Fiscal policy: The US hit the debt ceiling. What happens next?

  • Demand and supply: Copper rallies on hopes of China economic rebound

  • Taxation: Scotland top-rate tax rises widen gap with rest of UK

  • Demand and supply: Why the price of oil has dropped despite new constraints on Russian supply

  • Tariff: Carmakers warn on EU tariffs threat to electric vehicle prices

  • Video: Trading blocs Part 2 — The Brexit effect: how leaving the EU hit the UK

  • Video: Trading blocs — The Brexit effect: how leaving the EU hit the UK

  • Podcast: economic growth — Jeremy Hunt’s sombre Autumn Statement

  • Demand and supply: UK house-buying demand falls at fastest pace since 2020 lockdown

  • Inflation: BoE outlines two bleak scenarios for taming inflation

  • Podcast: fiscal policy — Prime Minister Rishi Sunak

  • Market structures: Yorkshire Water to pay down almost £1bn in debt to settle regulatory case

  • Currency: Biden should act now on the wrecking-ball dollar

  • Unemployment: UK unemployment falls to lowest level since 1974

  • Video: Demand and supply — NZ housing — a canary in the coal mine?

  • Podcast: Fiscal policy — Truss vs the ‘anti-growth’ coalition

  • Podcast: Fiscal policy — Kwasi Kwarteng’s market meltdown

  • Video: Opportunity cost — Food and fuel compete for farmland

  • Balance of payments: UK’s yawning current account deficit raises financing risks

  • Video: Labour markets — Rising temperatures can prove fatal for farm workers

  • Video: Privatisation and Market Failure — Water: too precious to be just another commodity?

  • Fiscal policy: The mini-Budget is taking great risks with the public finances

  • Exchange rates: The bad news for the pound is not all in the price

  • Video: Externalities — Is luxury fashion resale losing some of its sparkle?

  • Video: Demand and supply — Can winemakers adapt to climate change?

  • Video: Demand and Supply — Music: the hot new asset class

  • Video: Synoptic — Can we avoid climate-related food shocks?

  • Demand and Supply: China’s ice cream brands outpace inflation with soaring prices

  • Market failure: Would carbon food labels change the way you shop?

  • Video: Market failure: Farming — the difficult first step towards net zero

  • Video: Business growth and demergers: The extraordinary Toshiba saga

  • Inflation: Boris Johnson makes boosting economic growth his top priority

  • Demand and supply: Price of UK pint up more than 70% since financial crisis

  • Market structures: Is the ‘subscription economy’ going to feel the Netflix effect?

  • Labour markets: Rise in UK minimum wage helped narrow inequality but failed to lift productivity

  • Regulation: Stagflation looms in UK as economic growth grinds to a halt

  • Inflation: Stagflation looms in UK as economic growth grinds to a halt

  • Monetary policy: Bank of England faces its biggest inflation challenge since independence

  • Living costs: Cabinet split on plan to cut UK food tariffs as grocery bills rise 5.9%

  • Exchange rates: Pound slides to weakest level since 2020 as British retail sales fall

  • Growth: Underlying UK wage growth lower than headline figures, think-tank warns

  • International trade: The UK is still wrestling with the incoherence of Brexit

  • Fiscal policy: Spring Statement: what’s in it for investors and householders?

  • Price mechanism: US farmers’ hands are tied as world braced for wheat shortfall

  • Externalities: We must pay the cost of carbon if we are to cut it

  • Unemployment: UK unfilled vacancies hit record as workers leave labour market

  • Budget surplus: Stronger UK public finances set to increase pressure on Rishi Sunak

  • Monopoly: English water companies face probe over sewage treatment

  • Financial markets: Cash Isas remain popular despite the drain of inflation

  • Market failure: Boris Johnson warns of UK energy price shock

  • Exchange rates: Turkish inflation hits 20-year high of 54%

  • Housing market: Asking prices for UK homes surge in February as demand rises

  • Merit goods: UK graduates to pay more as repayment threshold on loans lowered

  • Asymmetric information: Student loans — Should the Bank of Mum and Dad step in?

  • Real income: UK inflation climbs to 30-year high of 5.5%

  • Economic growth: UK price rises outpace wage growth despite labour shortages

  • Merit goods: NHS waiting lists will grow for 2 more years, health service admits

  • Monetary Policy: Bank of England’s Andrew Bailey dishes out tough love to British public

  • Aggregate demand: UK homeowners secure £800bn windfall with house price rise

  • Fiscal policy: Lower public borrowing gives Sunak room to stall national insurance rise

  • Government failure: Airlines forecast increased ‘ghost flights’ to retain UK landing rights

  • Labour market: Get ready for the four-day working week

  • Consumption: China’s record trade gap a symptom of struggle to rebalance its economy

  • Inflation: The fight over measuring UK inflation

  • Subsidy: Farm subsidy reform in England aiming to return land to nature

  • Market failure: North-south divide emerges as UK electric vehicle sales hit record high

  • Demand and supply: UK house prices rise at the fastest pace since 2006

  • Demand and supply: Champagne sparkles as low supply and fizzy demand boost prices

  • Demand and supply: Beware the property trap ensnaring young buyers

  • Monetary policy: Turkey’s lira tumbles after central bank cuts rates

  • Demand, supply: Coffee hits 10-year high as shipping bottlenecks squeeze supply

  • Demand, supply: Opec+ sticks with oil supply increase after US overture to Saudi Arabia

  • Aid and development: China cuts finance pledge to Africa amid growing debt concerns

  • Competition: Collapse of Bulb highlights failings of UK’s retail energy sector

  • Exchange rates: Euro hit by bets ECB monetary policy will diverge from major peers

  • Measuring National Income: UK statisticians juggle contradictory data on recovery from pandemic

  • Market failure: Windfalls for heavy industry in EU carbon scheme are a moral hazard

  • Fiscal policy: Sunak defies hawkish instincts to oversee massive expansion of state

  • Labour markets: Kellogg’s cereal strike is latest sign of pushback from US snack makers

  • Economic growth: Switch to value stocks to prepare for inflation

  • Inflation: German workers strike for higher pay as eurozone inflation surges

  • Demand and supply: BP service stations close as driver shortage hits UK fuel supplies

  • Inflation and monetary policy: Is it time for the Bank of England to start tightening monetary policy?

  • Government intervention in markets: US clean-energy blueprint contains 40% solar goal for 2035

  • Fiscal policy: Who are the winners and losers from the UK’s £12bn social care tax raid?

  • Fiscal policy: Rishi Sunak has strong fiscal cards waiting to be played

  • Employment and unemployment: Partisan fight over US labour market jolted by strong hiring data

  • Circular flow of income: Nissan unveils first UK battery factory in £1bn Sunderland plan

  • Demand and supply: Russian supply curbs exacerbate squeeze on European gas market

  • Government Intervention: Cost of polluting in EU soars as carbon price hits record €50

  • Inflation: UK inflation jumps to 2.1% and tops Bank of England target

  • Economic growth: The Fed risks reacting too slowly if inflation keeps rising

  • Market failure: UK carbon trading system likely to lead to government intervention, traders warn

  • Financial markets: UK government to sell next £1bn stake in NatWest

  • Fiscal policy: Gary Lineker in £4.9mn tax battle with HMRC over freelance earnings

  • Inflation: Inflation tests pricing power of global brands

  • Market structures: Ethiopian telecoms sell-off flops in wake of economic and security concerns

  • Exchange rates: Turks chase missing billions in foreign exchange reserves

  • Aggregate demand & supply: Global savers’ $5.4tn stockpile offers hope for post-Covid spending

  • Fiscal policy: The case for taxing the rich more

  • Demand & supply: Boris Johnson to announce £3bn shake-up of England’s bus network

  • Demand & supply: Investors see ‘gold rush on steroids’ for green battery metals

  • Fiscal policy: Japanese investors buy UK government bonds at record rate in early 2021

  • Fiscal Policy: ‘Stealth’ raid on income tax thresholds

  • Monetary and Fiscal Policy: Joe Biden’s $1.9tn package is a risky experiment

  • Demand & supply: Extra stamp duty holiday would raise house prices, say lawyers

  • Exchange rates: Pound hits $1.40 for first time since 2018 as vaccine boosts UK outlook

  • Demand & supply: White House scrambles to address global chip shortage

  • Competition policy: UK and EU to open probes into Nvidia’s $40bn acquisition of Arm

  • Market structure: UK watchdog to investigate Uber’s acquisition of Autocab

  • The financial sector: Nine banks ate into capital buffers under ECB’s pandemic relief

  • Inflation: Covid congestion raises the spectre of inflation

  • Fiscal policy: Biden to push $1.9tn stimulus for pandemic-battered US economy

  • International trade: African countries not ready to implement free trade from January

  • Economic development: West Africa vs Big Chocolate: Battle over price sours relations

  • Unemployment: Ineos abandons Britain to build flagship off-roader in France

  • Demand, supply, elasticities: Lithium market recharges as electric vehicle sales rise

  • Economic development: Business groups call on Johnson to rethink overseas aid cuts

  • Fiscal policy: Sunak funds schools and police in last hurrah before tax rises

  • Inflation: UK’s poor GDP performance rooted in weak household spending

  • Demand and supply: UK set to ban sale of new petrol and diesel cars from 2030

  • Aggregate demand/supply: UK shipyards owner looks beyond building vessels

  • Elasticity of demand: Pandemic sets off a scramble to snap up outdoor heaters

  • Monetary policy: The great MMT debate, again

  • Demand and supply: Beijing’s first bond offer to US investors draws record demand

  • The housing market: Banks rebuff Boris Johnson’s call for low-deposit mortgages

  • Labour markets & employment: Britain’s over-50s rethink plans as virus takes toll on retirement

  • Supply and demand: Harley-Davidson to pull out of world’s largest motorcycle market

  • CAP: Ministers seek to plug subsidy gap for struggling English farmers

  • Shares: Peloton shares reach high as more users take up home workouts

  • Aggregate demand: What the latest data on activity are signalling

  • Exchange rates: Sterling’s faded illusion of sovereignty

  • Development: Pandemic brings Italy’s black market out of the shadows

  • Economic development: Latin America’s taxing problem

  • Competition/market structures: Pain in Spain for telecoms groups as competition heats up

  • Economic Development: Zambia feels the way for distressed nations in seeking debt talks

  • Distribution of Income and Wealth: Spain to push through minimum income guarantee to fight poverty

  • Trading blocs: The chain of events that led to Germany’s change over Europe’s recovery fund

  • Public goods: Any Covid-19 vaccine must be treated as a global public good

  • Inflation: A return to 1970s stagflation is only a broken supply chain away

  • Theory of the firm: Ryanair to axe up to 3,000 jobs as it warns over slow recovery

  • Competition & regulation: Britain’s private schools warned against fee collusion

  • Price mechanism: Oil-producing nations grapple with latest price fall

  • Money: Rishi Sunak prepares to offer 100% guarantees on small business loans

  • Market failure: Boris Johnson can now redeem his debt to the NHS

  • Circular Flow of Income: India’s exporters face crunch as coronavirus pummels economy

  • Market structures: British Airways to suspend more than 30,000 staff amid coronavirus crisis

  • Unemployment: US jobless claims surge to record 3.3m as America locks down

  • Exchange rates: Why the Fed is trying to tame the dollar

  • Oligopoly: Eight days that shook the oil market — and the world

  • Employment: Germany’s minimum wage boosted productivity but hit small companies

  • Labour markets, government intervention: Income inequality increases in UK

  • Aggregate demand: Italy unveils €3.6bn stimulus to tackle coronavirus

  • Elasticities, Market Structures: Can £5bn revitalise England’s bus services?

  • Economic growth and development: Restructuring Argentina’s debt will require IMF support

  • Market structures: Climate change and the prisoner’s dilemma

  • Labour markets: The unions taking on the gig economy and outsourcing

  • Demand & Supply, Exchange Rates, Elasticity: Commodities may not stay cheap

  • Monetary policy: US debt investors seek protection against inflation

  • Market/government failure: Air quality remains dangerously low

  • Supply side policy, capital flows: Tide turns for Polish émigrés

  • Distribution of income and wealth: Before we soak the rich

  • Supply & demand: Fortnum & Mason boosted by demand for loose leaf tea 

  • Macroeconomic objectives: Iran’s economy strangled under US sanctions

  • Financial markets, exchange rates: Dollar shortage shakes confidence in Lebanon’s banks

  • Competition and market structures: Sony pulls plug on PlayStation Vue

  • Developing economies: Ethiopia’s path to prosperity is opening up

  • Economic Growth, macroeconomic objectives: UK economy to avert recession

  • Demand & supply, taxation: UK’s slowing housing market hits stamp duty

  • Market failure: French tobacconists fear business will go up in smoke

  • Objectives of firms: The limits of the pursuit of profits

  • Labour markets: How does British Airways pilot pay compare?

  • Introductory economics: China acts on pork prices 

  • Fiscal policy: Javid shift in strategy after decade of austerity

  • Economic cycles: A long economic recovery is not necessarily a better one

  • Demand and Supply, Market Structures: Iran warns Opec ‘might die’

  • Trade policies and negotiations: Mexico ratifies Nafta’s replacement

  • Economic development: CDC to invest $300mn in Africa’s power networks

  • Allocation of resources: Old economists can teach us new tricks

  • Financial markets: China dumps US Treasuries

  • Allocation of resources: EBRD mulls sub-Saharan Africa loans

  • Demand and supply: Iran’s economy slumps on US sanctions

  • Circular flow of income: Fear over UK’s low national savings rate

  • Financial markets: US mortgage reform

  • Macroeconomic policy: UK inflation rises 1.9%

  • Money: The continued appeal of cash

  • Monetary policy: Monetary policy has run its course

  • Inflation: UK basket gains popcorn

  • Balance of payments: US trade deficit

  • Financial markets: Zimbabwe’s currency reforms criticised

  • Externalities and traffic congestion: Luxembourg tackles congestion

  • Economic growth and development: IMF funds Ecuador

  • Demand and supply, externalities: university applications rise

  • Trade: China’s economy slows

  • Market structures, nationalisation: rail privatisation

  • Trade, balance of payments: service exports

  • Exchange rates and Brexit

  • The price of fish farms

  • Demand & Supply: stock markets tumble

  • Development, exchange rates: African loans

  • Productivity: zero workforce growth

  • Government intervention: tech regulation

  • Demand & Supply, commodities: oil price fall

  • Market failure: wind and solar costs

  • Supply and demand: oil volatility

  • Supply and demand: chip prices

  • Exchange rates/balance of payments: depreciation dangers

  • Price determination: vanilla

  • Subsidies: UK farmers prepare for Brexit

  • Technological innovation: e-scooter rentals

  • Public finances: UK near bottom of IMF league

  • Markets, supply/demand: cocoa prices

  • Labour markets: Amazon pay rise 

  • Fed interest rate impact

  • The impact of migration

  • Low wage growth

  • Brexit uncertainty

  • Coca-Cola, Costa and economies of scale

  • The end of QE

  • Oligopolies and price discrimination

  • UK productivity

  • Coffee shops and market entry

  • Argentina hikes interest rates

  • Reversing QE

  • Privatisation and nationalisation

  • Audit monopolies

  • Child mortality and development

  • China’s household debt

  • Trade policies and anti-dumping

  • IMF, Kenya and economic policy

  • German trade

  • Sterling weakness

  • British manufacturing recovery

  • France’s declining fertility

  • Venezuela’s imploding economy

  • Measuring GDP

  • Inflation climbs to 3.1%

  • Venezuela debt: US, Russia and China play for high stakes

  • Productivity, smartphones and the crisis of attention

  • Diesel taxes

  • Agriculture and trade after Brexit

  • Monetary policy uncertainty

  • Natural monopolies and regulation

  • Richard Thaler and behavioural economics

  • EU fines Scania for price-fixing cartel

  • Monarch airline’s failure

  • Bank of England and Brexit

  • Brexit-free trade illusions

  • Supply and demand for coal

  • Bank of England interest rates debate

  • Amazon and food retail competition

  • Brexit and the generational divide: a price worth paying?

  • EU-Japan trade: the shift in commerce 

  • Retail sales: how external factors influence demand

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    Travel

    The New Le Grand Hôtel Cayré La Suite du Collectionneur

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    Le Grand Hôtel Cayré

    Those traveling to France will enjoy staying at the new Le Grand Hôtel Cayré. Located in Saint-Germain-des-Prés, on the left bank (Rive Gauche) of the Seine, this lively arrondissement is filled with luxury boutiques, bustling cafes, Le Bon Marche’, patisseries, cheese shops, and an energy like no other neighborhood in Paris.

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    This is the first hotel to open for Miiro lifestyle hotel group. Located between the historic Boulevard Raspail and the energetic Rue du Bac, the new hotel offers guests different levels of service based on their travel needs. Designed by UK based Michaelis Boyd, a collective of architects and interior designers based in London and New York. As a SOHO Farmhouse collaborator, there is a SOHO feel inside this hotel.

    Meeting Mickael Meunier, the General Manager at Le Grand Hôtel Cayré, I learned all about the recent renovations that were made to transform the former Hotel Cayré into a first-class hotel. “We wanted to bring the spirit of the surroundings while honoring the hotel’s vibrant creative past,” said Meunier. “The design takes inspiration from the old-world charm of Saint-Germain-des-Pré.

    The grand stairway at Le Grand Hôtel Cayré. Photo Jill Weinlein

    ‘The grand staircase is painted by a local French artist to replicate artist Henry Matisse’s sky,’ said Meunier. This hotel tells a story about a cast of characters who once lived in this iconic neighborhood, such as Ernest Hemingway and F. Scott Fitzgerald in the 1920s.

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    Le Grand Hôtel Cayré features 123 bedrooms, including two suites, some of which reveal spectacular views of the iconic Eiffel Tower. Each guest room is exquisitely curated with a collection of custom-made furniture, antiques, bespoke pieces, and one-of-a-kind collector’s items.

    Guests have the choice of three room categories with three price points to make an overnight stay more accessible to travelers. ‘It’s similar to what the airlines have done with seats,’ said Meunier. ‘Each guest has their own needs and desires when traveling.’

    The Essential guest room is ideal for the mindful traveler who doesn’t need their room cleaned daily, but every other day. The room may not have much of a view, yet will have all the same amenities as other room categories.

    The Premium guest room is for those who seek to spend some time in their room with a better view. Comfortable robes and slippers are in the closet, and there is a minibar stocked with snacks and refreshing beverages for purchase. This category does receive a vanity and sleep kit, plus daily room service.

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    For design and art lovers, literary aficionados, and collectors, the finest rooms are the La Suite du Collectionneur up on the top floor. 

    Le Grand Hôtel Cayré

    These exquisitely designed rooms can be reserved as a single suite, or can be combined with La Chambre de Collectionneur to create an apartment for an even more spacious three bedroom guest experience.

    It’s ideal for travelers who appreciate 20th and 21st century decorative arts. Curated from major public and private collections, this intimate suite was designed in partnership with renowned art design advisor and curator Gilbert Kann.

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    Eye-catching iconic Heinz Witthoeft armchairs are wrapped in cognac colored leather. Synonymous with cubic architectural design, these chairs are made with solid wood and intricate wooden joints.

    Intentionally low seat height enhances the lounging experience, inviting guests to relax, read a book, and take in the views of Paris from the glass windows inside Appartement Du Collectionneur.

    ‘This suite comes to life during events such as the upcoming Design Week,’ said Meunier. ‘Every item in this suite is available for purchase.’ 

    Le Grand Hôtel Cayré

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    Complementing the fabulous furnishings, the suite features a hand-crafted, king-size bed, a separate lounge area, and a dedicated powder room. The marble bathroom includes both a bathtub and a rainfall shower, as well as a selection of Le Labo products. 

    Paris furniture designer Pierre Sala’s pencil leg table is used as a workspace or writing table for guests. This designer comes from the theater world, and his creative imagination inspires his whimsical furniture pieces. 

    Le Grand Hôtel Cayré

    The modular bookcase was created by Danish architect and furniture designer Mogens Koch. His shelf unit is not only striking, but provides an elegance to the room, as well as a practical solution for comfort, functionality and aesthetics.

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    Le Grand Hôtel Cayré. Photo Jill Weinlein

    Maison LELEU offers space and cosmology as the starting point of the design of the Moon sofa in the suite. Two mobile parts can be used as complementary seats or side tables.

    Le Grand Hôtel Cayré. Photo Jill Weinlein

    The king-size Maison Pierre Frey headboard bed designed by Georges Le Manach showcases quality weaving on specific looms for a tailor-made finish.

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    Lighting by Bernard-Albin Gras includes the functional GRAS lamps named ‘Plug and Dream’, ‘Plug and Welcome’ and ‘Plug and Work.’

    Other lighting includes Alain Richard’s black half-sphere that can produce direct, indirect and reflected light.

    Fitness Room. Photo Jill Weinlein

    Down in the basement is a fitness room and refresher room. Guests can book the refresh room for a complimentary 45 minutes to use the shower and changing rooms during an early check-in or after check-out before a late flight or train.

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    Annette. Photo by Jill Weinlein

    The ground level of Le Grand Hôtel Cayré has been transformed into a lovely French brasserie named Annette. ‘This used to be the breakfast area in the former hotel,’ said Meunier. ‘It’s named after Annette Koln, the inspirational French-German writer and pacifist who lived at the former Hotel Cayré for 17 years from 1944.’

    Locals and travelers appreciate the French Brasserie-style menu. ‘It’s not complicated and priced at a reasonable price point for the neighborhood,’ said Meunier. ‘Lunch is priced around 30 to 35 Euros, and dinner around $70 to 75 Euros. The menus are a contemporary take on classic French dishes.’

    Chef Bruno and team at Annette. Photo Jill Weinlein

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    They hired esteemed Chef Bruno Brangea, the former lead head chef for three-star Michelin-starred Alain Ducasse. Chef Bruno is a world oeufs en meurette champion. It’s a traditional Burgundian favorite consisting of poached eggs in a red meurette sauce. 

    Also in the kitchen is talented Sous-Chef de Cuisine Tony Moreau who has also worked in Chef Alain Ducasse’s kitchen.

    Annette Restaurant. Photo Jill Weinlein

    There are three menus throughout the day, starting with a Petit-Dejeuner and full breakfast menu. Guests can select the Le Parisien to enjoy a glass of fresh fruit juice, hot drink, a bread and pastry basket, butter, jam and scrambled eggs. This is where one will find the perfect French omelet. Its pale yellow exterior color is smooth and silky with no browning. The warm, moist and tender soft-scrambled interior is unlike any other omelet in the world.

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    The bread basket is filled with a buttery and flaky croissant, a sweet Pain au Chocolat, light and airy French breakfast puff, and a delicious baked pains aux raisins with a little vanilla cream and plump raisins buried in a flaky circular crisp puff pastry. Slices of French baguette complete this basket.

    Annette Restaurant. Photo Jill Weinlein

    In the afternoon, guests can enjoy a lunch menu featuring croque monsieur, salads, and a reasonably priced Plat Du Jour.

    The dinner menu features soups, salads, pasta, tartare du boeuf, cunard (duck) with an ethereal sauce, and a vegetable cassoulet, which is a vegetarian twist on the classic French dish.

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    Finish with a chocolate mousse sprinkled with salt, a decadent chocolate eclair or crème brûlée.

    The knowledgeable servers complement each course by offering tastes of French-produced wines from an extensive wine.

    Annette Restaurant. Photo Jill Weinlein

    Annette has a Chef’s Table for guests to sit next to the kitchen to watch the French Chefs in action. After the meal, Sous-Chef-de Cuisine Tony Moreau will visit guests and chat about the meal.

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    Saint-Germain-des-Prés. Photo Jill Weinlein

    The staff at Le Grand Hôtel Cayré are happy to share French gems worth visiting in the neighborhood. Whether it be their favorite neighborhood chocolate shop Debauve & Gallais, a French Royally appointed chocolatier in business for over 200 years or cafes with a history, such as Les Deux Magots. This iconic corner brasserie opened in 1885, and served the great minds of Albert Camus, Jean-Paul Sarte and Simone de Beauvoir. 

    Le Grand Hôtel Cayré honors the spirit of the neighborhood’s creative past and those who lived here. It’s a resting spot to create your own Paris story.

    With the success of opening Miiro’s Le Grand Hôtel Cayré, they opened Hotel Borneta in August 2024, in the El Born neighborhood of Barcelona. They have two hotels scheduled to open in 2025, one in London and the other in Vienna.

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    Rachel Reeves to rule out return to austerity after gloomy rhetoric draws criticism

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    UK chancellor Rachel Reeves will try to counter claims on Monday that she has been talking the economy down, telling the Labour party conference there will be “no return to austerity” and insisting her Budget will have “real ambition”.

    Reeves and Prime Minister Sir Keir Starmer have been accused of creating a sense of economic gloom by warning of the dire state of public finances and a “painful” Budget next month, with consumer confidence falling sharply in September.

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    Last week Andy Haldane, a former Bank of England chief economist, said the government had generated a sense of “fear and foreboding”. One figure at a large bank said: “They’re struggling to dig themselves out of the depression ditch they’ve put themselves in.”

    With more than 500 corporate figures paying £3,000 a head to attend a “business day” at the conference in Liverpool on Monday, Reeves will try to paint a picture of a brighter future for Britain in her speech to party delegates.

    “My optimism for Britain burns as bright as it ever has done,” she will say. “I can see the prize on offer, if we make the right choices now. And stability is the crucial foundation on which all our ambitions will be built.”

    Reeves has warned of tax rises in her October 30 Budget, saying that “any plan for growth without stability only leads to ruin”.

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    But she will tell Labour members: “There will be no return to austerity. Conservative austerity was a destructive choice for our public services — and for investment and growth too.”

    Her more upbeat rhetoric is intended to lift spirits at a Labour conference overshadowed by internal rows in Number 10 and a controversy over “freebies” for Starmer and other ministers, along with criticism of the government’s decision to cut winter fuel payments to 10mn pensioners.

    Reeves and Starmer will try to reassure Britain’s bosses on Monday that they are still firmly on their side, in spite of corporate concerns over their gloomy tone on public finances, new workers’ rights and possible tax rises.

    Tickets for the conference’s business day sold out within 24 hours, even though prices rocketed from about £2,100 for the same event when the party was in opposition last year.

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    Starmer, Reeves and business secretary Jonathan Reynolds, who courted company bosses before the election, are facing increasing scepticism from some company leaders.

    Labour’s strategy so far seemed to be “to prioritise growth and at the same time undermine all the levers of growth”, the chair of one of the FTSE’s 10 most valuable companies told the Financial Times.

    Criticism has also been made of the decision to hold a global investment summit on October 14 to showcase Britain as an investment destination, while Budget decisions affecting business taxes will be still pending. A new investment minister has yet to be appointed.

    Executives hope Labour will bring political and economic stability after a bumpy period with regular changes of prime minister under the Conservatives, but some have grown concerned about the lack of positive action from the government since its election on July 4. 

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    Labour says the business day event, sponsored by companies including HSBC, Mastercard and Intuit, is twice as big as last year’s with more than 100 chief executives and chairs attending, including representatives from Blackstone, Santander UK, Uber and Shell.

    But one senior lobbyist said the price of a business day ticket was now so high that it was no longer worth attending, while another joked that her organisation had bought only one ticket and the chief executive would have to take their own notes.

    Reeves will use her speech on Monday to confirm plans for a new industrial strategy, highlighting to international investors where she sees the most promising areas for growth.

    She will start discussions on the policy by publishing a green paper around the time of the Budget. But the chancellor will announce that the final policy will not be completed until next spring.

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    Reynolds told the FT ahead of Labour’s conference he hoped to name the chair of a new industrial strategy council before the October investment summit.

    The business day event will be a moment for bosses to lobby Starmer against what they see as excessive regulation of the labour market and against potential Budget tax rises on business beyond corporation tax, which Labour has said it will not increase.

    Many are particularly concerned about the prospect of rises in capital gains tax or the removal of reliefs that can allow owners of private businesses or shares in Aim-listed companies to avoid the charge. 

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    López Obrador’s son takes senior party post as Mexico president bows out

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    Mexico’s ruling party chose the son of President Andrés Manuel López Obrador for a senior role on Sunday, in a sign the leftist leader will continue to influence public life after he steps down.

    López Obrador is in his final weeks of a six-year term that has polarised Mexican politics and concentrated legislative power in his party. His handpicked successor, former Mexico City Mayor Claudia Sheinbaum, will replace him as president in October.

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    In a conference centre in the capital on Sunday, Sheinbaum and party delegates emphasised “unity” as the younger generation of leadership was chosen.

    Andrés López Beltrán, the president’s second-eldest son, has for years worked closely for his father behind the scenes and from next month the 38-year-old will take up the administrative position of organisational secretary for the Morena party.

    “We all know that he [Obrador] will remain present in this party with his example, with his legacy. Our job running this secretariat will be to keep that legacy, that line,” López Beltrán said of his father to a cheering audience.

    López Beltrán, who keeps a low public profile and has not given speeches or interviews, has alongside his brothers been the subject of numerous investigations linking them or close friends to alleged corruption in public contracts. The president and his sons have strenuously denied any allegations of wrongdoing.

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    The choice of López Beltrán, known as Andy, is seen as a way for the president to have greater influence over his successor and position his son for a future run at the presidency.

    “It screams ‘I want to stay in power for the next 12 years’,” said Joy Langston, a professor at the Centre for International Studies at the Colegio de México. “It speaks of this powerful dark cloud that is hanging over Sheinbaum in the near future.”

    President Andrés Manuel López Obrador and president-elect Claudia Sheinbaum at a memorial on Thursday © CLAUDIA SHEINBAUM’S PRESS OFFICE/AFP via Getty Images

    Founded as a civil society group to help López Obrador’s 2012 presidential campaign, Morena now controls the presidency, a working supermajority in both houses of congress and two-thirds of governorships.

    Morena’s members refer to the party as a “movement” but few dare to publicly disagree with the president, who has 60 per cent approval ratings and a devoted base among lower-income voters.

    Through the transition Sheinbaum stuck close to her mentor, physically in his farewell tour across the country, and rhetorically in her statements.

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    Some of Sheinbaum’s supporters paint her as a more moderate, technocratic leader than the president, with debate in the media over whether she secretly disagrees with some of his policies.

    But the presence of López Obrador’s son, the possibility of recall referendums, and the placing of loyalists in influential positions will make it hard for her to stray too far from the path he has set, analysts said.

    The choice of López Beltrán for a role managing party structures cements the perception that Morena is based around the president himself. In office López Obrador raised the minimum wage and social programmes, while at the same time empowering the military and slashing the capacity of the state bureaucracy.

    Some members of Morena have already suggested that López Beltrán could be the party’s candidate for the 2030 election, complicating Sheinbaum’s efforts to control her own legacy.

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    Others say his presence, if she keeps him on side, could be an asset amid potentially fierce jostling for control within the party. Leading Morena officials have made clear that keeping the ruling coalition together will be its biggest task.

    “Our challenge is unity,” said senate president Gerardo Fernández Noroña. “People are already talking about 2030, so we have to be careful on that to not be divided.”

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    Peter Island Resort Opens November 2024, Transformed And Reimagined

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    (credit: Peter Island Resort)

    A treasured secret among sophisticated travelers for decades, Peter Island Resort in the British Virgin Islands re-opens in November 2024 after a six-year hiatus. The property closed during the Virgin Islands’ 2017 hurricane season and now offers brand new and upgraded accommodations as well as other state-of-the-art facilities. Rebuilt and re-envisioned, the island boasts a new level of luxury while maintaining and preserving its relaxed, casual elegance, personalized service, five stellar beaches and hundreds of acres of unspoiled tropical island. 

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    Situated on the largest private island in the British Virgin Islands, the 52-room resort is a tranquil seaside oasis featuring an oceanfront spa that takes pampering to the next level. With the exception of two villas, all accommodations are located on the beachfront just steps from the sea, including eight beachfront rooms with private outdoor hot tubs and two two-bedroom villas. 

    (credit: Peter Island Resort)

    The 21,000 sq. ft. Falcon’s Nest Villa is a site to be seen. This six-bedroom three-story villa offers their most discerning guests sweeping 360 degree island and ocean views, an infinity pool with hot tub, as well as two outdoor showers. Guests who stay in Falcon’s Nest or the Hawk’s Nest Villa overlooking the Yacht Club, also are afforded villa staff and the option of a private chef. 

    Peter Island comprises hundreds of acres of lush, tropical island terrain including five pristine beaches and the scenic five mile loop with draw-dropping views of the surrounding Virgin Islands. Whether alongside the new infinity pool overlooking the sea, or the beachside cabanas’ butlers service, the areas offer guests an array of pool and beach-based activities along with a selection of small bites and creative cocktails. Guests will undoubtedly stop at Drunken Pelican for a round of sunset Painkiller cocktails before indulging their taste buds at Drake Steakhouse for a vibrant atmosphere. 

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    (credit: Peter Island Resort)

    Along with a new 3,200 sq. ft. conference center, the revamped 10,000 sq. ft. spa carries products by 111Skin and features seven treatment rooms, two relaxation lounges, a fitness center, a saltwater pool and a beauty salon. Offering moments of renewed decadence, guests can choose from a variety of services including the Spa’s signature treatments which use local ingredients. The resort can also plan private dinners on the beach as well as off-island excursions, such as scuba diving, sail and snorkeling excursions, helicopter tours, sailing charters and deep-sea fishing to immerse guests in the picture-perfect surroundings.

    A must on every sailing itinerary, the newly christened Peter Island Yacht Club offers a full-service marina with dockage that accommodates superyachts of up to 200 feet. Complete with its own commissary, boutique and the Drunken Pelican bar & grill, the marina makes use of more than 250 feet of new dock space to accommodate vessels of all types and sizes.

    (credit: Peter Island Resort)

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    With its unspoiled natural wonders and abundance of land and sea activities including diving, snorkeling, sailing, windsurfing, deep sea fishing, pickleball, hikes up the island’s scenic Sunset Loop and more, Peter Island continues to enchant guests in its private island paradise. Guests can arrive via helicopter service from St. Thomas (STT), private charter boat from one of St. Thomas’ docks, or a 20-minute taxi ride from Tortola’s Beef Island Airport (EIS) to the Peter Island Ferry Launch, followed by a 30-minute private yacht transfer to Peter Island Resort. Rates starting at $1,000 a night.

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    Leftist outsider Dissanayake wins Sri Lanka election

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    This article is an on-site version of our FirstFT newsletter. Subscribers can sign up to our Asia, Europe/Africa or Americas edition to receive the newsletter every weekday. Explore all of our newsletters here

    Good morning. In today’s news:

    But first, Anura Kumara Dissanayake, a neo-Marxist outsider candidate, has won the Sri Lankan presidency.

    The 55-year-old leftist beat incumbent President Ranil Wickremesinghe, who took power in 2022 after the country defaulted on its foreign debt and its leader Gotabaya Rajapaksa fled, and the main opposition leader Sajith Premadasa, son of a former president.

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    Dissanayake’s victory is the nation’s biggest political upset since independence from Britain and throws fresh doubt on its fragile IMF-backed debt restructuring. In a statement on social media, Dissanayake, widely known by his initials AKD, promised “a fresh start”.

    He has pledged to continue with Sri Lanka’s $3bn IMF loan agreement, but alter some rigid conditions to grant more relief to the country’s 23mn people, about a quarter of whom are in poverty after two years of crisis and austerity. 

    In his campaign, Dissanayake vowed to end corruption and rid public life of scandal, while slashing the privileges of the ruling class such as generous pensions and car permits.

    Analysts said the outcome was a stunning result for a bloc with just three MPs in a parliament dominated by parties supported by legacy elites. Here’s what to know about Sri Lanka’s next president.

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    And here’s what else I’m keeping tabs on today:

    • Economic data: Singapore and Malaysia publish consumer price inflation data for August. Labour market data is due from Taiwan.

    • Japan: Financial markets are closed for Autumn Equinox Day.

    What lies ahead for India after the first 100 days of Prime Minister Narendra Modi’s third term? Join FT, Nikkei Asia and Asia Society experts for a webinar on October 10 and put your questions to our panel now. Register for free. 

    Five more top stories

    1. Chinese electric-car maker BYD’s expected expansion into Pakistan has raised hopes in the country that the company can help jump-start exports in the automotive manufacturing sector. For BYD, a planned EV assembly plant in Pakistan would mark the company’s first venture into south Asia after being blocked in India by Prime Minister Narendra Modi’s government.

    2. European steelmakers have pleaded with trade officials to tackle a surge in Chinese steel exports that has driven European prices below the cost of production. A new, comprehensive system of tariffs is needed to address the market-distorting effects of global overcapacity, producers and Europe’s main trade body told the FT.

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    3. The US warned Israel against opening a full-blown war with Hizbollah yesterday as the Lebanese militant group and Israeli forces engaged in some of their fiercest exchanges of fire since October 7. Here’s the latest.

    4. Germany’s Social Democrats were on course for a narrow victory over the far-right Alternative for Germany in elections in the eastern state of Brandenburg. The projected result is an unexpected reprieve for Olaf Scholz as he prepares to run for a second term as chancellor next year.

    5. US banks made a $1tn windfall from the Federal Reserve’s two-and-a-half-year era of high interest rates, an analysis of official data by the FT has found. Lenders got higher yields for their deposits at the Fed but kept rates lower for many savers, the review of Federal Deposit Insurance Corporation data showed. The boost to the US’s more than 4,000 banks has helped pad out profit margins.

    The Weekend Essay

    Masayoshi Son
    SoftBank founder Masayoshi Son © Ryan Pfluger/AUGUST

    SoftBank founder Masayoshi Son has won and lost fortunes with his bets on technology. So is the investor a visionary — or a gambler who got lucky? Lionel Barber’s Weekend Essay untangles the mystery of the world’s greatest disrupter.

    We’re also reading . . . 

    • Business lunches: Lack of time, elbow room and alcohol have created a problem in the world’s business capitals.

    • AI-powered assistants: Known as co-pilots, they have become the software industry’s latest attempt to sell generative AI to business customers.

    • What our Tupperware is telling us: The celebrated brand may be in danger, but demand for storage solutions has never waned, writes Harriet Fitch Little.

    Chart of the day

    HSBC’s exposure to defaulted commercial property loans in Hong Kong surged almost sixfold to more than $3bn in the first half of this year, underscoring the risks the UK bank faces from a slump in the Chinese territory’s real estate market.

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    Line chart of Rents under pressure amid high vacancy showing Hong Kong office rents are in decline and could further drop

    Take a break from the news

    The success of India’s cricket premier league has spawned a flurry of new fast-paced competitions around the world designed to draw in untapped audiences. But can they all survive?

    Additional contributions from Gordon Smith

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