The chance of another jumbo-sized US interest-rate cut in November diminished this week with data showing the job market remains resilient and the economy—slowing as desired by the Federal Reserve—isn’t at risk of stalling. Job growth last month topped all estimates, the unemployment rate declined and wage growth accelerated. Fed Chair Jerome Powell this week reaffirmed that shielding the labor market was part of the reason why the Fed decided to kick off its easing cycle with a larger rate cut. The data is a welcome development for Powell and his colleagues, who apparently seek no further cooling of the job market. The figures also support hopes for a soft landing as the Fed tries to stamp out the last vestiges inflation. But the new numbers are also a reminder that “inflation is not dead,” said Mohamed El-Erian. Policymakers—and the Biden administration, and by extension Vice President Kamala Harris—got even more good news when East Coast and Gulf dockworkers agreed to end a three-day strike that threatened to paralyze trade.

Workers picket outside of the Port of Savannah in Savannah, Georgia, on Oct. 3. Dockworkers walked out of every major port on the US East and Gulf coasts for the first time in nearly 50 years. Photographer: Parker Puls/Bloomberg

While mass firings haven’t been a main feature of labor-market cooling in the US (except across Big Tech and Wall Street anyway) they’re picking up in other countries. Samsung is terminating employees in Southeast Asia and Oceania (but not at home in South Korea) and Volkswagen is firing workers in China and considering shuttering plants in Germany. The European Union, for its part, voted to impose tariffs as high as 45% on electric vehicles from China, threatening a broader trade conflict with Beijing, which has already vowed to protect its companies. China denies EU claims that it has been subsidizing its industries and threatened its own tariffs on European dairy, brandy, pork and cars. China has even bigger problems at home, as it rolls out a series of stimulus measures to help shore up its flagging economy. 

Israel appears poised to launch a retaliatory strike to punish Iran for the barrage of 200 missiles it fired this week into Israel, itself retaliation for Israeli escalation including the killing of Hezbollah and Hamas leaders and an Iranian general, as well as its invasion of Lebanon. Now that the much-feared regional war in the Middle East has arrived, the questions range from how long it will last to how deadly it will be—and, most immediately, what Israel will do next. More than 41,000 people have been killed in Gaza, more than 1,200 in Lebanon and 1,200 in Israel in the year since Hamas attacked Israel. Israeli airstrikes on Friday targeted the outskirts of Beirut, reportedly as part of an attempt to kill the successor to Hassan Nasrallah, the Hezbollah chief Israel assassinated last week. Oil surged as the market braced for possible strikes on Iran’s oil infrastructure. President Joe Biden echoed global worries about significant escalation, saying Israel should hold off from attacking Iran’s nuclear facilities. A nuclear armed Iran has never been closer, Marc Champion writes in Bloomberg Opinion. Eliminating its program is probably impossible, and to try to destroy it and fail is almost guaranteed to trigger an Iranian dash for the bomb.

Black smoke and flames rise after the Israeli army carried out airstrikes south of Beirut.  Photographer: Anadolu/Getty Images

With Elon Musk by his side, Donald Trump is to return to Butler, Pennsylvania, where a would-be assassin came close to taking the former president’s life. It’s a different race now, even if Pennsylvania remains the big prize and is exceedingly close—like the overall race itself. It’s now a scramble to Nov. 5. Friday’s positive labor data bolstered Harris’s fight on the economy, an issue on which polls until recently favored Trump. She also picked up the endorsement of Bruce Springsteen and campaigned with Republican Liz Cheney in swing-state Wisconsin. Former President Barack Obama said he’ll spend the next four weeks stumping for the 59-year-old Democratic nominee, starting of course in Pennsylvania. Trump, 78, seeking to blunt a key weakness among women, now vows he’d veto any abortion ban, despite previously saying he might support one, and being responsible for (and often taking credit for) the Supreme Court nominees who helped throw out Roe v. Wade. In the first and only vice presidential debate, Minnesota Governor Tim Walz scored a point against  Ohio Senator JD Vance on election denialism. As always, but especially this year, the race is about money. Here’s your guide to its massive role in American politics.

As former Vice President Mike Pence faced physical danger during the Jan. 6, 2021 attack by Trump followers on the US Capitol, Trump said “so what?” That’s according to a newly unsealed court filing in which federal prosecutors maintain Trump should stand trial for his “private crimes” in trying to nullify the 2020 election. But if Trump wins in November, the case is likely to be dropped, and Trump has promised retribution. As for those despondent about the future of democracy, Francis Wilkinson writes for Bloomberg Opinion that there’s still hope.

Former Vice President Mike Pence  Photographer: Ronda Churchill/Bloomberg

SoftBank founder Masayoshi Son, an artificial intelligence evangelist, thinks the technology will soon run households. AI darling Nvidia expanded a partnership with technology consultant Accenture as part of an effort to drive adoption of AI within businesses. OpenAI, for its part, completed a deal to raise $6.6 billion in new funding, making the firm one of the three largest venture-backed startups, alongside SpaceX and TikTok owner ByteDance. Any contrarians out there? Why, yes. MIT professor Daron Acemoglu thinks there’s little chance AI will live up to the hype. Only a small percent of all jobs—a mere 5%—are ripe to be taken over, he estimates. “A lot of money is going to get wasted,” says Acemoglu. “You’re not going to get an economic revolution out of that 5%.”

Forecasters had warned for days that Hurricane Helene was likely to cause widespread devastation. But when the powerful storm struck Florida and barreled through the eastern US last week,  it still managed to come as a shock. Across the US, natural catastrophes are becoming more expensive and more common, supercharged by global warming. Of course, humanity’s survival depends on water, yet global reserves are rapidly shrinking. Now, half of the world’s population is facing water scarcity. The latest episode of The Future with Hannah Fry explores how technology may be used to reverse an increasingly dire spiral. 

Food damage following Hurricane Helene along the Swannanoa River in Asheville, North Carolina. Photographer: Mario Tama/Getty Images North America

• JPMorgan kicks off US bank earnings. 
• Biden travels to Germany, Angola to support ties with allies, Africa.
• Chinese stock exchanges reopen Oct. 8 after national holidays.
• Musk's robotaxi initiative has its big unveiling.
• Presidential elections in Tunisia, Mozambique. ASEAN Summit in Laos.

Zara is one of the world’s most successful retailers, and it’s widely considered the creator of fast fashion. But it operates unlike traditional brands, which is part of the reason for its success. In this week’s mini-documentary from Bloomberg Originals, we explore the company’s lightening-quick logistics as well as the challenges facing Zara as competition intensifies and environmental concerns in the industry grow.

A shopper exits a Zara fashion store in Madrid. Photographer: Paul Hanna/Bloomberg

Bloomberg New Economy: The world faces a wide range of critical challenges, from ongoing military conflict and a worsening climate crisis to the unforeseen consequences of deglobalization and accelerating artificial intelligence. But these challenges are not insurmountable. Join us in Sao Paulo on Oct. 22-23 as leaders in business and government from across the globe come together to discuss the biggest issues of our time and mark the path forward. Click here to register.