5 Things You Need to Know to Start Your Day

Good morning. A US government shutdown nears, Evergrande's founder is placed under police control and inside Hong Kong's crypto fraud invest [View in browser]( [Bloomberg]( Good morning. A US government shutdown nears, Evergrande's founder is placed under police control and inside Hong Kong's crypto fraud investigation. Here’s what’s moving markets. —[ Kristine Aquino]( Shutdown watch [The US is on track for an Oct. 1 government shutdown](. Senate leaders introduced a bill — which would keep the government open through mid-November and provide $6 billion in assistance to Ukraine — to avert a shutdown. It cleared a procedural vote but has no clear path to pass the House. Meanwhile, House Speaker Kevin McCarthy was able to start a debate on a series of conservative full-year spending bills. That said, the speaker has yet to nail down support for his own stopgap measure. “Over the years I have been clear in my view that government shutdowns are bad news,” Senate Minority Leader Mitch McConnell said. “They don’t work as bargaining chips.” Police control [China Evergrande’s billionaire founder, Hui Ka Yan, has been placed under police control](, according to people with knowledge of the matter. Hui was taken away by Chinese police earlier this month and is being monitored at a designated location, the people said. It’s not clear why Hui is under so-called residential surveillance, a type of police action that falls short of formal detention or arrest and doesn’t mean Hui will be charged with a crime. The move adds to questions over the fate of Evergrande after setbacks to its restructuring plan further raised risks. Crypto fraud [Hong Kong’s investigation into unlicensed crypto platform JPEX has led to the arrest of at least 11 people]( amid allegations that the company defrauded investors of the equivalent of $192 million. Police swooped in just days after the securities regulator publicly warned investors that JPEX lacked a permit and that some users had been unable to withdraw funds. Telecom carriers were ordered to block its website and app locally. Hong Kong’s response comes after it introduced a new regulatory regime for cryptocurrencies four months ago. “This unfortunately shows that allowing retail trading in this space, which is known to be fraud-prone, when investor education is sorely lacking, is a mistake,” said Lily Fang, professor of finance and dean of research at INSEAD business school near Paris. Futures rise S&P 500 and Nasdaq 100 futures climbed 0.4% as of 5:26 a.m. in New York. Treasury yields fell across the board, pulling back from decade highs. The Bloomberg Dollar Spot Index edged higher for a sixth-straight day, pressuring nearly all Group-of-10 currencies. Brent crude climbed more than 1% to near $95. Gold fell and Bitcoin advanced for the first time in four days. Coming up… At 7 a.m. in New York, we’ll get data on US mortgage applications, followed by durable goods and capital goods orders figures at 8:30 a.m. Earnings include Paychex. What we’ve been reading This is what’s caught our eye over the past 24 hours: - Investors willing to [forgo carmaker buybacks to end auto workers’ strike]( - [After $850 billion of deals](, Morgan Stanley banker Guy Metcalfe exits - Why China[dominates the electric-vehicle supply chain]( - [War drones help Turkish President Erdogan]( expand global power - [First-time homebuyers in the UK](are getting priced out of London -  How travel pros [create suitcase efficiency with fancy packing cubesÂ]( - Why X CEO Linda Yaccarino[took on the wildest job in Silicon Valley]( And finally, here's what Joe’s interested in this morning When it comes to the Chinse economy, there seem to be two very different stories that you hear. One is about how mediocre the domestic growth dynamics are. Demographics are bad. Consumption is bad. The real estate industry is imploding. Nothing else is big enough to pick up the slack. The other story you hear is one of extraordinary technological progress. The country is making progress on domestic semiconductors. The country's EV export business is booming. It's starting to make strides in aviation. Obviously the two stories can coexist, but perhaps it's TBD which is more important in the medium term. Anyway, today comes news that the [billionaire chairman of property developer China Evergrande]( is now under police control, though the precise specifics of his situation are unclear. Meanwhile, a Bloomberg measure of Chinese property stocks has fallen to its lowest level since 2011, after a short and sharp bounce at the end of last year. Property crashes have a tendency to leave long, devastating scars. And if you think about the US or Japan, countries don't tend to just bounce back from them like might see with other cyclical downturns. So when you see a chart like this, a simple question to ask is whether China can somehow be different, and move onto something new in a way that other countries struggled with for years when they experienced something similar. 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. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](