Is the worst behind us? Asia surged overnight again, bringing the Shanghai Composite 10% above its August low. The U.S. markets gained about 1% at the open, with the S&P 500 now standing at 1988 Wednesday, continiuing a global rally. And, after days and days of speculation, we will learn Wednesday afternoon what Apple is planning for its TV and next generation of phones at its “Hey, Siri” event. Overall, look for incremental changes. Maybe a bigger iPad, a zippier phone, a new payment system. Tune in for online coverage at zillions of media outlets at 1 p.m. ET.
Here is what else you need to know:
Mortgage applications drop 6.2% as refinancings dry up. For the week ending September 4 the Mortgage Bankers Association said higher rates prompted a 10% drop in refis. New home purchase applications rose 1% week-over-week and are 41% year-over-year. CNBC
Hillary Clinton apologizes for using private server as Secretary of State. The Democratic candidate for president said in a televised interview: “That was a mistake. I’m sorry.” Clinton has dodged apologizing and her standing in the polls has suffered. She now lags behind rival Bernie Sanders in New Hampshire. ABC
European Commission President announces plan for 120,000 migrants. Jean-Claude Juncker is proposing a mandatory quota system that would force member countries to take in asylum seekers. BBC
Stimulus promise drives Japan’s Nikkei 7.7% higher. The index is back from a seven-month low after Prime Minister Shinzo Abe told a Bank of America-Merill Lynch conference in Tokyo Wednesday that he pledged to cut corporate tax rates by a least 3.3% next year. AP
World Bank chief economist warns Fed to delay rate rise. Chief economist Kaushik Basu has warned the US Federal Reserve that it risks triggering “panic and turmoil” in emerging markets if it opts to raise rates at its September meeting and should hold fire until the global economy is on a surer footing. Financial Times (paywall)
Bittersweet victory for Serena. On her way to making history on the professional tennis circuit, Serena Williams needed to defeat her sister and “best friend” Venus — which she did at the U.S. Open in three sets. ESPN
UK suffers worst drop in exports in five years. Weak demand and a drop in car manufactuing were behind a surge in the trade deficit to £3.4 billion pounds in July from £2.6 billion in June. The Guardian
Southeast Asian reserves shrinking rapidly. The lowering of the yuan’s reference rate and expectations of a U.S. interest rate hike has spurred sell-offs of South Asian currencies. From July to August, Malaysia and Indonesia saw the steepest drops in their currency reserves. Nikkei
China leader firms up plans for US state visit. President Xi Jinping will head to the US for a lengthy and elaborate state visit later this month. Hopes of any breakthrough are low for the president’s trip, which begins in Seattle and ends at the United Nations in New York. SCMP (Paywall)
Queen becomes UK’s longest reigning monarch. Queen Elizabeth II is to become Britain’s longest-reigning monarch today when she passes the record set by her great-great-grandmother Queen Victoria: 63 years and seven months. BBC
Netflix to launched in Hong Kong, Singapore next year. US streaming service said on Wednesday it will launch the new Asia services in early 2016 as part of a larger global expansion. Netflix, which recently launched in Japan, will also roll out coverage to South Korea and Taiwan. SCMP (paywall)
United Airlines chief resigns amid scandal. Jeff Smisek was alleged to have been involved with a quid pro quo involving the former chairman of the Port Authority of the New York and New Jersey David Samson. Samson resigned in 2014 after it was revealed that senior aides to N.J. Governor Chris Christie had worked with Port Authority officials to close lanes on the George Washington Bridge for political reasons. New York Times (payall)
US clerk is out of jail. Kentuckian Kim Davis has been released from custody for her refusal to issue marriage licences following the legalization of same sex marriage in June. Davis’ lawyers say she’ll continue to block marriage licenses for gay couples when she’s back at work. Talking Points Memo
Don’t miss this. A photo essay on the first day of school through the decades. New York Times (paywall)
You won’t believe this…
Drunk Japanese gets into scrap with a robot. Police were called after a customer at a mobile phone store took out his frustrations on an android employee. 60-year-old Kiichi Ishikawa, from the city of Yokosuka. south-west of Tokyo, was allegedly drunk when he entered the SoftBank shop on Sunday morning. SCMP (paywall)
Photo: European Council