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Hong Kong

The Chinese central government rejected Carrie Lam’s proposal to withdraw the extradition bill and ordered her not to yield to any of the protesters’ other demands, three individuals with direct knowledge of the matter told Reuters. Beijing’s rebuff of Lam’s proposal for how to resolve the crisis, detailed for the first time by Reuters, represents concrete evidence of the extent to which China is controlling the Hong Kong government’s response to the unrest.

Hong Kong authorities charged pro-democracy activist Joshua Wong with organizing an illegal protest as they tighten a clampdown on unrest that has plunged the Asian financial hub into its biggest political crisis in more than two decades. A senior official with China’s parliament and pro-Beijing Hong Kong politician told Reuters that Hong Kong is a long way from having to declare emergency powers or to ask the Chinese military to intervene, as months of protests show no sign of abating.

Can political unrest in Hong Kong break its currency peg? The Hong Kong dollar is pegged in a narrow band around HK$7.8 per U.S. dollar, but has for weeks languished at the weak end as unrest has deepened, shedding 0.8% since early July. Bets in the market suggest some think the peg could falter. Can the Hong Kong dollar withstand the selling pressure?

Markets

World stocks rose to a one-week high on cautious hopes for a rapprochement on trade between Beijing and Washington, though a perky dollar capped gains with China’s yuan softening again, on track for its weakest month in 2-1/2 decades. For most of August global stocks have reeled and fixed income shone as deepening concerns over global trade and clear signs of a slowdown, possibly even a recession. But the mood lifted after Trump said some trade discussions were taking place with China.

Month of bond market milestones: How low can you go? August has turned out to be another month of milestones for bond markets as an escalating trade conflict fans recession fears, pushing borrowing costs deeper and deeper into negative territory.

U.S.

'Difference-maker' independent voters in U.S. presidential election crosshairs. Ellen Kirschner is no cheerleader for Donald Trump, but the retired Florida letter carrier also feels unsure about voting for a Democrat in next year’s presidential election. Her independence makes her a rare breed in the American electorate - and a critical early target of both parties’ campaigns in battleground states that are expected to decide the November 2020 contest.

'Absolute monster' Hurricane Dorian gains strength as Florida braces for hit. Hurricane Dorian is expected suck powerful fuel from the warm waters off the Florida coast, swelling into a dangerous Category 4 storm in the coming days before it slams into the state early next week. The Miami-based National Hurricane Center issued a hurricane watch for northwestern Bahamas on Friday and said the risk of “devastating hurricane-force winds along the Florida east coast late this weekend and early next week continues to increase.”

Disabled workers chase 'dream jobs' in tight U.S. labor market. Americans with disabilities, physical and cognitive, in recent months have been joining the workforce at a faster pace than those without disabilities, according to data collected by organizations that work with the disabled. The gains are the result of both technological advances and workplace flexibility that lessens commuting barriers, according to experts on disabled workers. But the gains also reflect the pull of a tight labor market.

U.S. House targets convergence of mass shootings and hate crimes. Democrats who control the House of Representatives passed gun bills meant to tighten background checks in February, but the legislation stalled in the Republican-controlled Senate. Cutting their summer recess short to consider the new measure after back-to-back shootings in El Paso and in Dayton, Ohio, Democrats hope to restart the gun-control debate before Congress returns on Sept 9.