Myla, 37 dead, and the weapons depot question

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Nine other stories

• Nepal resumes rescue work while shifting toward reconstruction. Nepal's authorities resumed parts of the flood rescue effort after rain and fog disrupted operations. Reuters reported at least 669 deaths in Nepal and seven in Tibet, with nearly 3,000 people missing, including about 2,426 in Nepal and 554 in Tibet; at least 540 missing people were foreign nationals. Nepal estimates reconstruction will cost $4 billion to $5 billion. Water draining from the barrier lakes has eased the immediate lake-burst risk, while DNA sampling and burials are being used for bodies that cannot be identified. The next test is whether foreign technical teams and the government can turn emergency access into a credible rebuilding plan. 3
• Iran's economic pressure becomes a diplomatic constraint. Iranian President Masoud Pezeshkian said foreign trade had fallen nearly 35% because of sanctions and the blockade, while annual inflation reached 66% last month. Washington also sanctioned Egypt's Banque Misr UAE branches and a Hong Kong entity and person linked to Bank Melli. Qatar's prime minister met Iranian leaders, who said diplomacy and defense were complementary; Iran's Revolutionary Guards disputed U.S. claims that the Strait of Hormuz was open. The next signal is whether talks produce a workable trade channel rather than another statement of intent. 4
• Washington warns that a disorderly yen move could spread. Treasury Secretary Scott Bessent said a sharp yen move could force investors to unwind positions, destabilize markets and raise borrowing costs for U.S. households and businesses. Japan and the United States bought yen on July 31; the currency moved from a low near 164 per dollar to 155.20 after the intervention and then weakened back toward 160. The yen briefly slipped below 160 on Friday after Kevin Warsh's rate comments. Bessent's warning describes a risk and the July operation, rather than a new intervention. 5
• GM ties Canadian factory survival to a tentative C$1.1 billion deal. General Motors plans to put C$144 million into assembling the next-generation heavy-duty GMC Sierra at Oshawa and has pledged not to immediately sell or close its CAMI plant in Ingersoll. The package also includes C$691 million for V8 engines and C$215 million for transmissions at St. Catharines from late 2029, covering 4,600 Unifor members. Workers were voting over the weekend. The investment arrives while U.S. vehicle tariffs stand at 25% and President Donald Trump has pledged to raise them to 50% in 2027. 6
• CXMT moves into a Xiaomi flagship phone. Chinese memory maker ChangXin Memory Technologies has begun mass production of LPDDR6 chips and will supply Xiaomi's September 18 Fold smartphone, with both companies confirming the arrangement through Weibo. LPDDR6 is CXMT's most advanced mobile DRAM and narrows its gap with Samsung Electronics and SK Hynix. The company also reported first-half revenue of 150.3 billion yuan, up 874%, and has shipped samples for mobile, server and smart-car uses. The phone launch will provide a commercial test of whether the newer Chinese memory can scale beyond a single design win. 7
• Iceland counts a vote on reopening EU membership talks. Voting ended late Saturday on whether to reopen negotiations with the European Union. Election officials said a reliable result might not arrive until Sunday afternoon because ballots had to move from rural polling stations by plane, boat or car. The vote concerns talks, not membership; a future accession deal would require a second referendum. The campaign centered on cost of living, sovereignty, fisheries and security, with Iceland's central-bank rate at 8.00% against the European Central Bank's 2.25%. The result will decide whether Brussels becomes an active negotiating venue again. 8
• Qusra violence draws an unusually sharp Israeli rebuke. Prime Minister Benjamin Netanyahu condemned criminal acts by a "handful of rioters" after more than two weeks of unrest in the West Bank town of Qusra. Settlers had surrounded several homes, including one owned by a Palestinian American; Israeli police and military said dozens of rioters later barricaded themselves in a Palestinian home while residents were inside. The Associated Press saw ambulances take injured Palestinians away, and Qusra's mayor said four people were hurt, including two who inhaled tear gas. The statements reported by AP did not mention arrests. 9
• A mutiny exposes the strain inside Niger's junta. Dozens of soldiers were killed or arrested after young troops attempted a mutiny at a military base inside Niamey's main airport, near the presidential palace, Niger's state television reported. Sustained gunfire and explosions continued for hours, while the presidential guard held the presidency and the whereabouts of military leader Abdourahamane Tchiani remained unclear. Niger's defense minister said soldiers had taken officers hostage and fired at sensitive sites. AP could not independently confirm whether security forces had regained full control; Russian Africa Corps personnel were reported to have supported local forces. 10
• Trump's Canada tariffs revive a Depression-era legal power. The administration invoked Section 338 of the Tariff Act of 1930 to impose a 50% tariff on $20 billion of Canadian imports. The statute allows presidential tariffs of up to 50% against countries that discriminate against U.S. businesses, yet no president had used it and courts have never tested it. Legal scholars argue that later trade laws may have superseded the provision and that the administration did not calculate the harm it was supposed to offset. The next test is whether a court accepts Section 338 as valid authority and whether Ottawa's dollar-for-dollar retaliation expands. 11

Quote of the day

"The best-managed crisis is the one that never happens." — U.S. Treasury Secretary Scott Bessent, defending the joint U.S.-Japan yen intervention. 5

Further reading

• What a century of data tells us about today's corporate bond spreads — Duncan Lamont examines how heavy government borrowing, low spreads and AI-related credit risk shape the cost of capital behind today's market warnings.