📊 Germany, Gavin Newsom, and Google

Fascist fears, presidential ambition, and monopoly penalties.

Sep 06, 2026

Greetings! Happy National Read A Book Day to those celebrating.

Let’s get into today’s top stories.

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🌎 GLOBAL NEWS

🇩🇪 Saxony-Anhalt votes on possible far-right state government. Voters in Saxony-Anhalt are choosing a state legislature in a contest with national significance. The eastern German state has about 2.1M residents. The far-right Alternative for Germany (AfD) is seeking an absolute majority. Such a result could produce Germany’s first far-right state government since World War II. AfD is already the largest opposition party in Germany’s national parliament. Its support is strongest in the formerly communist east. Candidate Ulrich Siegmund says his party wants to make history in the state. Mainstream parties continue to reject governing coalitions with AfD. Saxony-Anhalt’s AfD branch is classified by domestic intelligence as a proven right-wing extremist group. AfD rejects that designation and accusations of extremism. Incumbent Governor Sven Schulze represents Chancellor Friedrich Merz’s center-right Christian Democratic Union (CDU). The CDU has led Saxony-Anhalt for 24 years. Schulze says he will not govern with AfD. If no party wins a majority, coalition-building could become difficult. The vote also tests public confidence in Merz’s national government amid economic stagnation and political dissatisfaction. Thousands of demonstrators have protested the prospect of AfD taking state power.

🇨🇦 Canadian travel slump tests American tourism campaigns. American tourism groups are launching promotions to persuade Canadian travelers to return as political and trade tensions continue to depress visits. Canada traditionally supplies more overnight visitors to America than any other country. Canadian residents made 25% fewer return border crossings in 2025 than a year earlier. Their spending on American travel fell by about C$3.3B, roughly $2.4B. The decline began before the latest trade confrontation but accelerated after President Trump returned to office. Trump’s comments about Canada becoming the 51st state also angered many Canadians. Trade talks collapsed last month. Trump then imposed tariffs of up to 50% on a range of Canadian products. Canada responded with its own tariffs. New York has launched a “NY Loves Canada” promotion with travel discounts. Some Las Vegas hotels are accepting Canadian dollars at parity with American dollars for certain purchases. Tourism officials have also traveled north to meet Canadian travel advisers and airlines. Yet air travel from Canada remained below year-earlier levels through June. The weaker Canadian dollar and higher airfare and hotel prices add another deterrent. Florida recorded a 7% decline in Canadian visitors in 2025. California estimated a 20% decline. The coming winter snowbird season will test whether destinations can reverse part of that pullback.

🇺🇸 LOCAL NEWS

🏛️ California shadows Newsom’s possible 2028 White House bid. California Governor Gavin Newsom is testing a national message while confronting skepticism about the state that made him famous. Newsom held eight public events across South Carolina during his latest swing through the region. Supporters sold “Gavin 2028” buttons outside some appearances. South Carolina is scheduled to host the Democratic Party’s first presidential primary in 2028. Newsom has not formally announced a presidential campaign. His appearances nevertheless resembled campaign stops in pace and presentation. Some Democratic voters said California itself could complicate his appeal outside the West Coast. The state is closely associated with liberal policies that remain polarizing nationally. Newsom’s team acknowledges that hostility toward California is a real political obstacle. He has responded by emphasizing the state’s health care, wage and climate policies. Newsom also used the trip to criticize President Trump’s record and policies. Republican protesters focused heavily on California’s housing, homelessness and governance problems. Newsom has built a national profile through television appearances and confrontations with Republican officials. He was also a prominent surrogate for former President Joe Biden. California has produced several recent presidential hopefuls who did not win the White House. Newsom’s emerging national effort therefore requires him to defend both his own record and the political reputation of his home state.

🗳️ Midterm campaign enters final stretch amid political upheaval. America’s midterm campaign is entering its final phase after an election cycle repeatedly reshaped by policy fights, war and legal disputes. President Trump remains central to both parties’ messaging. Congressional maps have changed in Texas, California and Florida during the cycle. A court blocked a Trump-backed Missouri map, and the state attorney general is appealing. Litigation also continues over Trump’s effort to restrict mail voting. Mail ballots are already being distributed in states including North Carolina. Tariffs on Canada are creating another political and economic variable. AI data centers have become campaign issues in communities concerned about electricity, water and corporate power. The Iran conflict has added foreign policy and energy costs to voters’ concerns. Trump also controls more than $400M in political funds that can be deployed in races. A federal filing showed his crypto businesses generated $1.2B last year. Democrats are campaigning for control of the House and contesting several Senate and governor races. Republicans are defending their congressional majorities while criticizing Democratic policies. Both parties are also emphasizing affordability and immigration. Historically, the president’s party often loses congressional seats in midterm elections. Democrats gained 40 House seats during Trump’s 2018 midterm. Republicans gained 63 House seats during President Barack Obama’s 2010 midterm. This cycle arrives with major disputes over election rules, district lines and presidential power still unresolved.

🗂️ MISC

⚖️ Judge orders Google ad changes but rejects breakup. A federal judge has ordered changes to Google’s digital advertising system while rejecting the government’s request to break apart the business. Google is owned by Alphabet ($GOOGL), which has a market value of about $4.11T. District Judge Leonie Brinkema issued the initial ruling in Virginia. A previous decision found Google maintained an illegal monopoly in parts of digital advertising technology. The Justice Department sought structural remedies that could have forced asset sales. Brinkema instead adopted most of the remedies proposed by the parties without ordering a breakup. Her full opinion will remain sealed for 14 days while lawyers review possible redactions. Google welcomed the rejection of forced divestitures. Critics of large technology companies argued the remedy was too limited. The case began with a Justice Department antitrust lawsuit filed in 2023. Google’s advertising technology connects publishers, advertisers and exchanges across the internet. The targeted exchange handles an estimated 55M requests per second. Advertising contributes a large share of Alphabet’s nearly $400B in annual sales. The decision is Google’s second major reprieve from a proposed breakup in roughly a year. Another federal judge previously rejected a demand that Google sell Chrome in a separate search-monopoly case. The latest order leaves Google’s ad-tech assets intact while requiring changes intended to curb anticompetitive conduct.

📉 Wall Street turns to inflation after strong jobs report. Investors are preparing for two major inflation reports after stronger hiring shifted attention back to price pressures. The Producer Price Index (PPI) for August is scheduled for release on September 10th. It tracks prices businesses pay before costs reach consumers. The Consumer Price Index (CPI) follows on September 11th. CPI measures changes across goods and services including groceries, clothing, travel and restaurant meals. Inflation remains above 3%. Price growth is also running faster than wage growth. The Federal Reserve (Fed) has held its benchmark interest rate steady. Wall Street expects at least one rate increase this year if inflation remains persistent. The Fed’s stated inflation goal is 2%. Energy prices have climbed during the American war with Iran. Shipping disruptions in the Strait of Hormuz have also raised transportation costs. Roughly 20% of global oil supply moved through the strait before the war. Tariff disputes with major trading partners create another source of price pressure. August employment data showed employers adding 162K jobs. That strength reduced immediate concern about the labor market. It also gave policymakers more room to focus on inflation. The next inflation readings could therefore shape expectations before the Fed’s September policy meeting.