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California avoids outages, the UK gets a new prime minister, and an energy survey.California narrowly avoided implementing rotating outages [View in browser]( [Bloomberg]( California avoids outages, the UK gets a new prime minister, and an energy survey. Heat wave California [narrowly avoided]( implementing rotating outages on Monday while officials warned that the state’s power grid will face a bigger test on Tuesday amid a record-breaking [heat wave](. Power demand is forecast could reach an all-time high Tuesday as business and schools reopen after the long Labor Day holiday weekend amid triple-digit temperatures. The prospect of outages underscores how grids have become vulnerable in the face of [extreme weather]( as they transition from fossil fuels to renewable energy. UK Prime Minister Liz Truss will become Britain’s third woman to hold the [Prime Minister](’s post when she’s formally asked by Queen Elizabeth II to form a government. She’s busy finalizing plans for a £40-billion [energy package]( for businesses, according to documents seen by Bloomberg. The incoming PM has also drafted plans to fix annual [electricity and gas bills]( for a typical UK household at or below the current level of £1,971. Analysts expect the rally in UK retail stocks could be [short-lived]( as inflation begins to impact consumer spending. Energy survey A surge in US electricity prices has made about 1 in 6 homes fall behind on their utility bills. European LNG buyers may end up in a price war with Asian counterparts later this year amid a dearth of supplies. Is this the time to buy or sell energy-related stocks and bonds? Are oil and wheat futures’ markets reflective of supply-demand fundamentals? This week’s MLIV Pulse survey focuses on energy and commodities. It’s brief and anonymous. Please [click here]( to share your views. Stocks climb European stocks and US equity [futures climbed]( as some of the risk-off sentiment that prevailed in markets subsides. Moves to mitigate the impact of Europe's energy crisis probably helped lift the mood. The Stoxx 600 was up 0.6% as of 5:55 a.m. in New York, with contracts on the Nasdaq, Dow Jones and S&P 500 delivering similar performance. The yen was the worst performer among G-10 currencies, falling 0.7% against the dollar, while the pound rose. Brent crude gave back most of the gains made on an OPEC+ supply cut yesterday. Coming up... It’s a pretty quiet day as US traders come back to their desks after the long weekend. Today’s economic data focus is on services, with the S&P Global figure at 9:45 a.m. and ISM at 10 a.m. The US sells $34 billion in 52-week bills. What we've been reading Here's what caught our eye over the weekend. - CVS to buy [Signify Health]( for about $8 billion. - Fed’s [neutral goal]( proves elusive. - [Ukraine’s premier]( wants war to end soon. - Russia privately warns of [economic damage.]( - Morgan Stanley sours on [US earnings.]( - [Bed Bath & Beyond](CFO died in fall. - [Rafael Nada](l defeated at US Open.  And finally, here’s what Joe’s interested in this morning I continue to be astonished by the degree to which the various trends and stresses of the global economy feel like a weird mirror version of the post-Great Financial Crisis economy. Back then the big problem was slow growth and low inflation. This time around, growth is red hot, unemployment is low, and inflation is the big concern. Back then, the big euro-zone problem was peripheral debt, and it was Germany calling the shots and setting the tone for everyone. This time around, the big Europe problem is energy, and the finger pointing is aimed directly at Germany, and its past energy policy choices. [On the latest episode of the Odd Lots podcast](, we spoke with [Tom Orlik](, the chief economist at Bloomberg Economics, about the challenges facing China's economy right now. Tom is the author of [China: The Bubble That Never Pops](, which has a second edition coming out later this week. What's striking is how even in the China conversation, the story is flipped. Post-GFC, the world was suffering from a lack of demand, and China proved to be the consumer of last resort. It famously enacted a massive fiscal stimulus, and in the process hoovered up commodities from around the world. These days commodity markets are famously tight, but... China is doing the opposite. It's not doing some huge stimulus. It's not engaging in a big real estate expansion (in fact it's really trying to cool off its housing market), and its Covid policies mean that domestic demand remains unusually depressed. There is a sense in which China, which helped drive global growth in the wake of the GFC, is now performing a similar "favor" to the rest of the world, by not consuming massive amounts of raw materials at a time when they are in relatively short supply. Check out our conversation with Tom on [Apple]( or [Spotify](. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. 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