Flagship

Stocks crash in Asia, Europe

European stocks followed Asian markets lower, a selloff analysts said was triggered by fear of a potential US downturn. Japan’s benchmark index in particular fell 5.8%, its second-biggest single-day decline since 1987’s Black Monday crash. Traders pointed to recent economic data from the world’s biggest economy that showed jobless claims were higher than forecast and that manufacturing shrank. “The economy does not slow in a linear manner,” a Financial Times columnist warned. “The loss of economic momentum, which has been happening for longer, and is deeper, than many seem to appreciate can become a self-reinforcing spiral… The recessionary warnings are flashing, they should not be taken lightly.”

US, Israel brace for Iran response

The US and Israel braced for an imminent Iranian response to the recent killings of top militant commanders. Officials reportedly expect Tehran to mount a similar — and potentially more expansive — assault on Israel to its April attack in which it dispatched hundreds of drones and cruise missiles: The Lebanese militia Hezbollah launched dozens of rockets into Israel, with the group’s leader pledging that Israel would “weep terribly.” Washington has maintained it stands behind Israel, but US President Joe Biden said the recent killings of militant leaders were not helpful for ongoing ceasefire talks over the war in Gaza. “Just a week ago, there was cautious optimism that diplomacy could prevail,” The Washington Post said. “Then, well, this week happened.”

A bittersweet prisoner swap

The prisoners exchanged in a historic swap between Russia and the West landed in their homelands, with Western officials and analysts characterizing the deal that freed journalists and dissidents as necessary but bittersweet. Wall Street Journal reporter Evan Gershkovich was among three Americans welcomed by US President Joe Biden, while Russian leader Vladimir Putin characterized eight compatriots freed — a convicted hitman among them — as heroes. The Atlantic’s Tom Nichols hailed the release of prisoners held by the Kremlin, but warned that the “grubby reality” was that Moscow had successfully utilized hostage-taking to free “people who do [Putin’s] bidding overseas.” A top German lawmaker said simply: “Sometimes, for the sake of humanity, you have to make a deal with the devil.”

Harris to step up campaigning

Democrats began the process of officially naming US Vice President Kamala Harris their presidential nominee, while Harris neared a choice for her own running mate. The process is largely perfunctory — Harris is the only candidate for the nomination — but comes with the campaign battle between her and Republican Donald Trump launching into full swing: Harris is due to begin a tour of battleground states with her soon-to-be-announced running mate, having drawn level with Trump in the polls; He is scrambling his own campaign’s messaging against her, falsely questioning her Black identity even as aides have pushed attacks on her record on immigration and the economy.

China’s caution over US election

Beijing sees little difference between Kamala Harris’ and Donald Trump’s views towards China, and is focused more on the broader shifts in US thinking towards its superpower rival, three Chinese strategists argued in Foreign Affairs. “Rather than offering alternative approaches to their country and the world,” the Peking University scholars wrote, “the two major US parties both reflect a general approach to China that has emerged in recent years, one that is strongly informed by domestic US political concerns.” Ultimately, whether the Democrat or the Republican wins, given tensions have risen markedly in recent years during both parties’ turn in the White House, “Beijing is preparing itself for the outcome of the US elections with great caution and limited hope.”

US says Maduro lost election

The US recognized Edmundo González as the winner of Venezuela’s contested presidential election, discrediting President Nicolás Maduro’s claim to victory. Independent exit polls had shown the opposition candidate leading by more than two-to-one, but official figures said Maduro won Sunday’s election. Domestically, Venezuela has been hit by protests over the results, while Brazil, Colombia, and Mexico — three of Venezuela’s closest regional allies — called on the government to release detailed voting tallies. “To maintain the momentum, Washington and other outside actors must keep the pressure on Maduro,” an expert wrote in Foreign Affairs. “Change will not come overnight — until it does.”

Sudan famine declared

Famine was officially declared in Sudan’s Darfur region, where hundreds of thousands of people have been living in camps since the start of the country’s civil war more than a year ago. The classification marks only the third time globally in the last 20 years that a famine has been declared. Both warring parties — who this week agreed to meet for peace talks — have prevented aid from reaching the more than 600,000 people estimated to be displaced over unfounded fears that weapons could be smuggled in alongside the foodstuffs. The scarcity has pushed the price of available grains 180% above recent averages. “Already, many children there are at death’s door,” a Doctors Without Borders official told The Guardian.

COVID-19 feels like ancient history, but its effects linger — including what the pandemic did to citizens’ trust in the media. On this week’s Mixed Signals, Ben and Nayeema discuss the distrust that emerged during the coronavirus pandemic and delve into the role the media played. They talk to the man who became the center of media scrutiny at the peak of the crisis: Dr. Anthony Fauci, and check in with Donald McNeil Jr., the health and science journalist whose insights became a staple on The Daily during the pandemic.

New vaccine targets cows’ burps

A vaccine for cows that reduces their tendency to burp could cut their methane emissions by 20%. Agriculture is the largest anthropogenic source of methane, most of it from belching — and, to a lesser extent, farting — cattle and other farm animals: The beef and dairy industry is responsible for 14.5% of all greenhouse gas emissions. A biotech startup has been working on ways of inhibiting the activity of methanogen bacteria in the cows’ stomachs. The vaccine helps the cows produce antibodies in their saliva, which attacks the microbes. A first trial reduced emissions by 13%, but the company hopes to get a more effective version rolled out to millions of cows within five years.

Russia, US bolster crypto

The Russian Parliament passed a law legalizing cryptocurrency mining. Any individual or legal entity will be able to mine from Nov. 1, although energy limits will apply to unregistered miners. Lawmakers also gave the central bank powers to let companies trade digital currencies across borders, potentially offering the country a way around the sanctions that have cut it off from much of the global payments network. It’s been a good few days for crypto, as Semafor’s Joseph Zeballos-Roig reported: Former US President Donald Trump floated some crypto-friendly policy proposals at a major bitcoin conference last weekend, and the Democratic Party has likewise made pro-crypto noises of late.

Paris’ newfound Olympic optimism

Despite fears of over tourism, price-gouging, and strict policing, Parisians have embraced this year’s Olympic Games, a sentiment buoyed by their country ranking second behind the US in the overall medal standings. The thrilling competition and the astounding venues — including a fencing arena inside the Grand Palais — have led to Games’ biggest surprise yet: Even the French have nothing to complain about, The Wall Street Journal said. According to a recent poll, as many as 85% of French respondents have judged the games as a success. “Gold medals galore are spreading joy in a land of pessimists,” a French journalist wrote in Bloomberg.

• Tesla’s July China-made EV sales data will be announced.
• Catalan separatists vote on a far-reaching deal with Spain’s government.
• A virtual hearing will be held over Justin Timberlake’s arrest for driving under the influence.

Boris Muñoz is one of Venezuela’s most prominent journalists, and the founder of The New York Times en Español’s opinion page.

San Francisco’s Dog Eared Books recommends The Stronghold by Dino Buzzati. The 1940 classic, first translated as The Tartar Steppe, was seen as foreshadowing the coming Cold War and as a critique of Italian fascism. “Today, in the context of rising authoritarianism globally,” a Financial Times critic wrote, “Buzzati’s story of individual struggle against an all-powerful system has once again become a story of our time.” Buy it from Dog Eared Books or your local bookstore.

• Trump falsely says Harris ‘turned Black’ after previously promoting Indian heritage.
• Will the Fed rescue clean energy?
• Anyscale, software provider for OpenAI and other major firms, hires new CEO to boost sales.