šŸŒŽ Wall Street's WhatsApp woes

When was the last time the pound crashed?
šŸŒŽ Wall Street's WhatsApp woes

Good morning, Quartz readers!


Hereā€™s what you need to know

Wall Street banks paid a $1.8 billion fine over improper WhatsApp use. Regulators cracked down on bankers using private chats to discuss deals and trades.

Hurricane Ian caused a blackout in Cuba. Florida is now bracing for the category 4 storm, the first major hurricane to hit areas such as Tampa in a century.

The IMF has castigated the UK governmentā€™s planned tax cuts. The worldā€™s lender of last resort warned that the move would increase inequality. (see more below)

The Nord Stream 1 and 2 pipelines are both leaking. Detection of underwater explosions near the Russian natural gas network has raised suspicions of sabotage.

Harley-Davidson spun off its electric motorcycle unit in a $1.8 billion SPAC deal. LiveWire became the first publicly traded e-motorbike company in the US.

Apple suspended plans to increase iPhone 14 production. The tech giantā€™s expectations of a surge in demand for its latest handset did not materialize, according to Bloomberg.

Fast Company shut down its website after reporting a cyber breach. The publisher said a hacker infiltrated its system and posted racist and obscene alerts from its Apple News account.

A new Alzheimerā€™s drug delivered strong results in late-stage clinical trials. Pharma companies Biogen and Eisai said lecanemab slowed down the rate of patientsā€™ cognitive decline.


What to watch for

The first US-Pacific Island Summit kicks off today in Washington, D.C. as US president Joe Biden seeks to strengthen ties with Pacific nations and counter Chinaā€™s growing influence in the region. The two-day summit comes amid a global pivot towards the Pacific, from Australiaā€™s ā€œPacific step-upā€ to the UKā€™s ā€œIndo-Pacific tilt.ā€

This year has seen a marked US push in the region, starting with an Oceania tour, the launching of the Partners in the Blue Pacific initiative, and US vice president Kamala Harrisā€™s attendance at the Pacific Islands Forum. The Biden administration has now committed to reopening an embassy in the Solomon Islands, and creating embassies in Kiribati and Tonga.

But a lot of this is the US playing catch-up. It was just in 2019 that Biden made his ā€œPacific pledge.ā€ China established a dialogue in 2006, and has more recently signed a security pact with the Solomon Islands. It remains to be seen if the US can build credibility and partnerships in a region it has long overlooked.


When was the last time the pound crashed?

The British pound hit a historic low against the US dollar this week after huge tax cuts were announced by Liz Trussā€™s new government. Itā€™s been a bit since the pound has flirted so closely with dollar parityā€”in fact, the last time was when Margaret Thatcher was prime minister.

Image for article titled šŸŒŽ Wall Street's WhatsApp woes
Graphic: Clarisa Diaz

In this situation, central banks often buy their home currency on foreign-exchange (FX) markets to boost it. But you need hefty reserves to do that. Building those up just hasnā€™t been a priority for the UK, which is the worldā€™s fifth largest economy but only ranks 18th-largest in reserves of foreign currencies and gold.

There arenā€™t a lot of solutions. The Bank of England has made it clear, at least for now, that itā€™s not going to prop the pound. And the IMF has warned the UK that its recent fiscal package would likely threaten its monetary policy and increase inequality.


Reassessing the 9-to-5

Image for article titled šŸŒŽ Wall Street's WhatsApp woes
Illustration: Jo Minor

Perhaps like many of us, youā€™ve started to question aspects of work that we once took for granted. Like: Why do I work five days a week when I could get just as much done in four? Could offices be designed better? Why is good feedback so hard to get, and to give?

These questions didnā€™t spring to our minds unbidden, but the pandemic sure gave them a push. And now, widespread change seems possible. Weā€™re thrilled to present our new podcast, Work Reconsidered, available Oct. 6, thatā€™ll document this moment of change. Check out the trailer and subscribe wherever you get your podcasts.

šŸŽ§ Listen on: Google | Spotify | Megaphone | Stitcher

āœ¦ Our 10th birthday is the perfect time for a new podcast, but weā€™ve got another gift for you, too. How about six months of an annual membership, free?

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Surprising discoveries

The music you listen to as a teen shapes your taste for life. Personality traits might also play a role in what you like to jam out to.

Engineers invented a sound-powered camera. The battery-free device is designed to snap pics underwater, and is 100,000 times more efficient than current models.

Darth Vaderā€™s voice was immortalized in AI. A program has captured how 91-year-old actor James Earl Jones sounded in 1977.

Queen Nefertitiā€™s final resting place may have been discovered. Hieroglyphics in Tutankhamunā€™s tomb could reveal its location.

Disinformation about a coup in China went viral. The unverified story even made it to Indiaā€™s top news channel.


Our best wishes for a productive day. Send any news, comments, teen-era playlists, and James Earl Jones recordings to hi@qz.com. Reader support makes Quartz available to allā€”become a member. Todayā€™s Daily Brief was brought to you by Sofia Lotto Persio, Samanth Subramanian, Julia Malleck, and Morgan Haefner.

Correction: Yesterdayā€™s email incorrectly said Shinzo Abe was killed in Tokyo. The assassination took place in Nara.