Good morning. The push for peace in Ukraine gains momentum. Suspense builds for Jerome Powell’s Jackson Hole speech. And Donald Trump has a new idea to deter migrants, involving black paint. Listen to the day’s top stories.

— Eleanor Thornber and Omar El Chmouri 

A package of security guarantees for Ukraine will take shape as soon as this week as European leaders seize on President Donald Trump’s backing for a plan involving European troops. Switzerland said it would grant Vladimir Putin immunity from arrest if peace talks were held there. Scott Bessent, meanwhile, still has tariffs on his mind, indicating that the US is satisfied with the current set up with China.

For Fed’s sake. The Federal Reserve’s big annual meeting of central bankers is about more than just swapping research papers this year, with defending Jerome Powell’s career likely to take center stage. Traders will be watching closely for hints on interest rate cuts. They’ve been piling on bets on a jumbo reduction next month.

Dot-Com Flashback. Intel has added about $24 billion in market value this month thanks to reports that the US government may buy an equity stake and a $2 billion investment from SoftBank, giving it the highest valuation since the dot-com era. Technology’s having a tough day, though. Softbank’s shares tumbled following a sharp selloff in tech shares. 

Trump met with the bosses of the world’s two biggest mining companies to discuss a copper project in Arizona, in a push to boost local output of the metal vital for the energy transition. Despite Trump’s support, obstacles remain for the $10 billion mega-mine project. Meanwhile, the president has embarked on $104 million bond-buying spree since returning to office, including debt sold by US companies affected by federal policy changes he’s championed.

New York City beaches are closed to swimmers today and tomorrow due to Hurricane Erin, which is poised to bring life-threatening currents to a large swath of the US East Coast. As wild and volatile weather grows more common, solar and wind energy companies are betting on a novel form of insurance to protect their assets against the very type of climate risk they were set up to fight. Over in Southern Europe, hotter summers and overcrowding have created a dangerous feedback loop that endangers the region’s tourism industry.

Deep Dive: Going Cuckoo for Labubu

A statue of Labubu in Beijing, China. Photographer: Na Bian/Bloomberg

Who knew that fanged, pointy-eared, beady-eyed dolls could turn such a profit? Well Pop Mart, the company behind the Labubu, is betting they’re about to make even more.

• The company’s stock climbed to its highest level since its IPO in December 2020 after CEO Wang Ning announced a new mini Labubu will come out as soon as this week. Watch our break down of the company’s success.
• The results might just be the tipping point that makes investors build even bigger positions in Pop Mart’s shares after a months-long consolidation.
• Still have no idea what a Labubu is or why anyone would want one? You’re not alone. But there may be some kind of real explanation.

The Big Take

The price tag of ousting a chief executive officer goes well beyond severance and sign-on payments made public in filings. Check out our guide to the staggering costs of these abrupt and often messy transitions.

Opinion

The central bankers gathering in Jackson Hole can feel the plates beneath them beginning to shift, John Authers writes. Yet the meeting is also an opportunity for a profound change in the direction the Fed decided on five years ago, which now appears to be a spectacularly ill-timed intervention.