After the 2020 election, Republicans were poised to hold the Senate majority if they won merely one of two January runoff races in Georgia. President Trump proceeded to make the races a referendum on his claim that the November election had been stolen. GOP turnout slumped, and Democrats won both seats and a 50-seat majority (plus Vice President Kamala Harris’s tie-breaking vote). Is Mr. Trump about to cost the GOP the Senate again?

That’s the way the midterm races are trending now as the fall campaign enters its final sprint. GOP seats in at least six races are in serious jeopardy, including in states like Alaska, Ohio, Texas and Iowa that in recent years have been comfortably Republican. Even Kansas and Nebraska aren’t safe. Michigan and New Hampshire seem to be the only GOP pickup chances, thanks to strong mainstream candidates.

(Continue Reading – WSJ)

Donald Trump's unfathomable link between U.S. interest rate policy and trade ties with America's biggest partners led to more head-scratching than market impact. But the strangeness of the president's take offers Federal Reserve Chair Kevin Warsh an opportunity to convincingly distance himself from the White House and bolster his credibility by pushing for a Fed rate rise this month.

Friday should have been a reasonably good day ​for the president on the economy. After all, August U.S. payroll gains were triple the forecasts, and much of the soft summer jobs picture was revised away as well. Diesel prices did hit a ‌record high earlier in the day, potentially putting upward pressure on inflation. But tepid wage gains from the employment report could just as easily be read as another reason for the Fed to stand pat on rates as it awaits an inflation update this Friday - just days before its next meeting.

(Continue Reading – RTRS)

Power prices in Europe have started the month of September on an exceptionally strong footing, with front-month prices across Northwest Europe trading at €150/MWh, while France and Spain are still leading the lower end at €130/MWh. The underlying culprit for these high prices is of course the gas market, which itself is up 16% on the month so far in September.

Day-ahead power markets have experienced more volatility, driven by the tug-of-war between surging gas prices and intermittent renewable power generation. But the strength in renewables has not translated into lower prices across the forward curve, which continues to be dominated by concerns about higher energy – especially gas – prices for the remainder of 2026.

(Continue Reading – Rabobank)

Canada struck back at U.S. President Donald Trump on Tuesday with tariffs on about $20 billion worth of U.S. goods, in response to the latest round of tariffs on Canada.

The outcome could resonate far beyond Canada, showing other governments whether a smaller U.S. ally can withstand Trump’s economic pressure.

Canadian Prime Minister Mark Carney says U.S. demands could hollow out key Canadian industries and limit the country’s independence, while Trump’s threats to Canadian sovereignty have rallied the public behind him.

“Carney and Canada have become symbolic of resistance to him,” Canadian historian Robert Bothwell said. “And what he’ll want to do is make an example of Carney and Canada and theoretically terrify everybody else while in fact showing them that they need to remove themselves even further from the United States.”

(Continue Reading - AP)