New nuclear threat

The war in Ukraine entered a serious new phase Wednesday. Russian President Vladimir Putin called on 300,000 reservists in a major escalation of his disastrous invasion of Ukraine, which he portrayed as a fight to the death with the US and its allies. The first such mobilization in Russia since World War II, it’s a risky move that sparked protests across the country, with some Russians scrambling to get out of the country. Seven months into the war, the Kremlin has lost more than 10% of the territory it held to a successful Ukrainian counteroffensive, and moves to undermine Western support for Kyiv have backfired. President Joe Biden used his address at the United Nations General Assembly meeting to condemn Russia’s invasion and nuclear threats. “This war is about extinguishing Ukraine’s right to exist as a state, plain and simple,” Biden said. “That should make your blood run cold.”

The call-up also comes as Russia plans a series of sham votes to annex some parts of Ukraine it has captured, setting up a potentially dangerous situation where Russia could declare any fighting in those areas as an attack on its country. And any attack on Russian territory, Putin made crystal clear in his address Wednesday, would warrant the use of weapons of mass destruction. Bloomberg Opinion Andreas Kluth says it’s a classic Russian strategy: Go nuclear to avoid losing the conventional war. — Margaret Sutherlin

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The Federal Reserve issued its fifth interest rate hike of 2022, and it certainly won’t be the last one, warned Chair Jerome Powell. The Open Market committee delivered an unanimous 75 basis point increase to cool stubbornly high inflation. Officials also updated their forecast, expecting the benchmark rate to rise to 4.4% by year end and 4.6% during 2023. The projections, which showed a steeper rate path than officials laid out in June, underscore the Fed’s resolve to cool inflation despite the risk that surging borrowing costs could tip the US into recession. Powell in his press conference warned of a housing correction and said predictions for a soft landing were less likely. Markets fell. Here’s your markets wrap.

Attorney General Letitia James sued Donald Trump and his company for fraud, alleging the former president and his company inflated the value of his real estate company’s assets for years. In the suit, James named three of his children — Donald Trump Jr., Ivanka Trump and Eric Trump — who are all executives at the Trump Organization. It’s the latest legal peril facing the former president as he prepares for another presidential run in 2024.

The British government unveiled a multibillion-pound bailout to help companies with their energy bills this winter amid soaring prices that threaten to put many out of business. Under the estimated £40 billion ($45 billion) plan the government will cap the wholesale energy prices that feed into gas and power contracts for businesses for six months. The UK and Europe face soaring energy costs as Russia tightens its supply to the continent over the war in Ukraine.

Just a day after Biden reiterated the US commitment to send troops to Taiwan in the event of an invasion, China said it has the patience to someday bring the island democracy under its control, partly because “compatriots” there want it to happen. It’s a view that deeply contrasts with a poll that shows two-thirds of the island’s residents believe Beijing is unfriendly.

Citadel founder Ken Griffin has packed up his company — and his billions — and ditched Chicago for Miami. Alongside Little Havana and the nightclubs. Griffin's vision for Miami's future includes programmers, portfolio managers, and legions of lawyers, attracting accountants and hedge-fund hopefuls in a sunny Wall Street South that outlasts the pandemic. Not everyone is so certain.

Wall Street’s biggest leaders were on Capitol Hill for a round of two-days of hearings with both inflation and the economy in sharp focus. Citigroup’s Jane Frazer and JPMorgan’s Jaime Dimon faced a series of tough questions over the economy and consumer protections. Dimon for his part defended his stance that the US needs to spend more on oil and gas in the interim to address climate change in the long term and called crypto a ponzi scheme.

A migrant sea route — part of the long trek north to the US border — has been dormant for years. But now migrants are risking everything to take a treacherous route by boat, and to avoid the equally dangerous Panamanian jungle. Its sudden revival shines a light on a gruesome reality for migrants escaping hunger in Venezuela and other impoverished countries.

Home sales across the US are cooling as the Fed hikes rates and would-be buyers are sitting on their hands. So where’s the slowdown happening fastest? A new survey points to some obvious spots in the West (California), and one tech-focused city took the top spot.

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