5 Things You Need to Know to Start Your Day

Good morning. Struggling to afford food, examining China’s trust sector, and Hurricane Idalia nears Florida. Here’s what’s moving markets. — [View in browser]( [Bloomberg]( Good morning. Struggling to afford food, examining China’s trust sector, and Hurricane Idalia nears Florida. Here’s what’s moving markets. — [Sam Unsted]( Tough times An increasing proportion of Americans on low incomes are [behind on their rent and struggling to afford food](, adding to signs of growing financial distress in the economy. A report from benefits software developer Propel found that among the households using the Supplemental Nutrition Assistance Program, 42% skipped meals during August, while 55% ate less because they couldn’t afford food. Examining books China has asked two of its largest financial firms to [examine the books of troubled shadow lender]( Zhongrong International Trust, potentially paving the way for a state-led rescue for the business. Citic Trust and CCB Trust have been asked to lead the effort to stabilize operations at Zhongrong, underscoring the worries among policymakers about the impact of the trust sector on financial stability. Hurricane Idalia Hurricane Idalia has [strengthened into a Category 4 storm]( as it heads toward the west coast of Florida, where it threatens to unleash flooding and cause blackouts. Maximum sustained winds from Idalia reached 130 miles per hour, with a “catastrophic storm surge’’ nearing the Big Bend region of the state, the National Hurricane Center said. Dollar slides The dollar has weakened as the session has progressed and is trading lower against most G-10 currencies. Treasuries are falling slightly across the curve and stock futures have turned negative, in line with a paring or reversal or earlier gains across Europe. Oil prices remain higher but metals are mixed, with copper slightly lower. Coming Up… There’s another slew of economic data to come today, including the ADP employment figures, wholesale inventories GDP numbers and pending home sales. A few notable earnings reports will drop after markets close in New York, including software giant Salesforce, cybersecurity firm Crowdstrike and retailer Costco Wholesale. What We’ve Been Reading This is what’s caught our eye over the past 24 hours. - The surge for the [world’s biggest Bitcoin fund](. - Singapore money laundering case [embroils more lenders](. - Surging hedge fund [Treasury shorts](. - More [paid leave for new parents]( at StanChart. - Saudi Arabia’s [MMA deal](. - Soldiers seize power [in Gabon](. - Upending the [criminal justice system]( in New York. And finally, here's what Joe’s interested in this morning Central bankers are anxious in the age of Big Fiscal. There are worries that our [financial infrastructure]( lacks the capacity to deal with so much debt issuance. And there are worries about what high levels of government spending mean for their ability to [conduct policy and meet inflation goals](. But obviously, today's macro landscape goes beyond just high levels of government spending. We also are seeing changing trade patterns, an energy transition, and at least in the US, a major push on domestic manufacturing. On today's Odd Lots podcast -- our third in a series from Jackson Hole -- [Tracy Alloway and I talk to Peterson Institute President Adam Posen](, who previously served as a member of the Monetary Policy Committee at the Bank of England. Posen has been [outspoken]( on the Biden administration's approach to trading with China, and the motivations (and execution) behind the big domestic manufacturing push. As he describes it in our discussions, he has four big worries about the current industrial policy: 1) Politics. He sees a large impulse behind efforts like IRA and CHIPS as designed to win votes for Democrats in areas of Wisconsin and Pennsylvania. 2) Picking winners. Posen warns of the rise of "national champions" in areas like semiconductors that end up as potentially inefficient and prone to corruption down the road. 3) Accelerating deglobalization. While many may see the Trump administration as having represented some kind of turning point, as Posen sees it, the US has slowly been turning its back on the rest of the world ever since NAFTA. This he sees as creating foreign policy blowbacks around the world. 4) Climate tech. As he sees it, Biden needed to do something on climate. However, he's worried that the global distribution of technology will become politicized, with countries being put in a position of having to declare their loyalty to either the US or China in order to receive support for their own energy transition endeavors. Anyway, the full episode was wide-ranging and fascinating, and goes into how central bankers will think about these risks. Find it on [Apple](, [Spotify]( or elsewhere. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. 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](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. 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