Good Morning! Today’s edition is 872 words, a 3-minute read.

What’s on tap: 

• Berkshire Hathaway Hits $1T Valuation

• Typhoon Shanshan Smacks Japan

• California AI Safety Laws

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Big Story

Berkshire Breaks $1 Trillion

Warren Buffett's company, Berkshire Hathaway, hit a $1 trillion market value on Wednesday, making it the first non-tech U.S. company to do so.

• The company's stock has risen over 28% in 2024, much higher than the average market gain. This milestone shows the strength and value of Berkshire, which mainly focuses on "old-economy" businesses like railroads, insurance, and fast food. However, its ownership in a few tech stocks has helped drive recent gains.

• Buffett has been cautious lately, selling a massive amount of stock, including half of Berkshire’s Apple shares. He has also increased the company’s cash reserves to a record $277 billion. The sales have made some investors wonder if he sees future economic trouble.

• Berkshire's Class A shares are some of the most expensive on Wall Street at $702,320 each. That’s because Buffet has never split the stock — a tactic used to lower the price of a stock to make it more affordable. He believes the high share price attracts more long-term investors who use their Berkshire stock as a savings account.

Big Story

Typhoon Shanshan Rocks Japan

Japanese officials told millions to evacuate their homes as Typhoon Shanshan hit southwest Japan.

• The storm caused power outages, disrupted flights, and forced major factories, including Toyota, Nissan, and Honda, to stop production. At least three people have died, and many others are injured.

• The typhoon brought winds strong enough to overturn trucks and caused widespread damage, especially in the Kyushu region. Over 200,000 homes lost power, and emergency officials reported multiple injuries and one person missing. The storm is expected to move towards central and eastern Japan, possibly affecting Tokyo by the weekend.

• More than 5.2 million people have been told to evacuate, mostly in Kyushu but also in central Japan, where heavy rain caused a landslide. Hotels are sheltering evacuees, and nearly 800 flights have been canceled. Officials also suspended train, bus, and ferry services. Typhoon Shanshan is one of several recent storms that have impacted Japan.

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Big Story

AI Safety Bill Passes First Hurdle in California

A California proposal to set safety standards for powerful AI models cleared a major step by passing the state Assembly.

• The bill, led by Senator Scott Wiener, requires large AI models to certify safety tests before use to protect people against dangers like the creation of bioweapons. The bill has split opinions in Silicon Valley, with some tech leaders like Elon Musk supporting it, while others, including OpenAI, argue it could burden developers, especially small startups.

• The bill faced strong opposition from influential California House Democrats. They argued that AI regulation should be handled by the federal government, warning that the bill could harm California’s economy. Another group of state lawmakers insisted that California should take the lead in AI regulation because Congress hasn’t acted yet.

• The bill passed in the Assembly with a vote of 41 to 9 and now heads back to the state Senate before reaching Governor Newsom. Newsom has had concerns about overregulating California’s tech industry. However, Senator Wiener hopes the governor will carefully consider the bill's balanced approach to innovation and safety.

Little Stories

• Researchers have discovered that marmoset monkeys use names or labels for each other, similar to humans. Before the finding, only dolphins and elephants were known to use vocal labels. The discovery suggests that other primates with similar family structures might also use names. (More)

• One of the F-16 fighter jets that Ukraine got from its Western allies to help fight Russia has crashed. The crash happened on Monday during a Russian missile and drone attack. The pilot died and Ukraine said he gave his life while saving civilians from the strikes. (More)

• ABC News plans to mute microphones when a candidate isn't speaking during the upcoming presidential debate, but Vice President Harris' campaign hasn't agreed to the rules yet. The Trump campaign has accepted ABC's rules, which include no live audience, no opening statements, and no props or notes on stage. (More)

• Israel's military and Hamas have agreed to three separate three-day pauses in fighting in Gaza to vaccinate 640,000 children against polio. The vaccination campaign will start on Sunday in central Gaza with pauses each day from 6 a.m. to 3 p.m. It will then move to southern and then northern Gaza. If needed, the pause in each zone can be extended to a fourth day. (More)

• Stephen Curry is set to sign a one-year, $62.6 million contract extension with the Golden State Warriors, keeping him with the team through the 2026-27 season. The deal will make him the first player to earn over $60 million in a single season. By the end of the contract, Curry will have earned $532.7 million in his career, joining LeBron James and Kevin Durant on the career earnings Mount Rushmore. (More)

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