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China's financial stability is at risk as the number of defaults continues to rise, and weak banks threaten the world's second-largest economy, Bloomberg reports.

Why it matters: Chinese officials are wary of stepping in because they don't want to encourage "moral hazard and reckless spending," Bloomberg writes.

The state of play: The stability of small banks is one of the major concerns as their relationship with state-owned regional companies could lead to a "downward spiral" if Beijing doesn't stop in, Bloomberg notes.

  • China's central bank and other regulators said "they are forcing troubled banks to increase capital, cut bad loans, limit dividends and replace management," Bloomberg writes.
  • A sweeping package is being floated around that would push smaller banks to merge with the support of local governments.

The bottom line: Some support measures might help China's economy and financial stability right now, but it could lead to even bigger debt problems in the future, per Bloomberg.

Go deeper: China's economy grows at slowest pace since 1992

Go deeper

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Chris Christie: Wear a mask "or you may regret it — as I did" — Senate Democrats block vote on McConnell's targeted relief bill.
  2. Business: New state unemployment filings fall.
  3. Economy: Why the stimulus delay isn't a crisis (yet).
  4. Health: FDA approves Gilead's remdesivir as a coronavirus treatment How the pandemic might endMany U.S. deaths were avoidable.
  5. Education: Boston and Chicago send students back home for online learning.
  6. World: Spain and France exceed 1 million cases.

Early voting eclipses 2016 total with 12 days until election

People stand in line to vote early in Fairfax, Virginia in September. Photo: Tasos Katopodis/Getty Images

Americans have cast more than 47.1 million ballots in the 2020 presidential election, surpassing the total early-vote count for 2016 with 12 days left until Election Day, according to a Washington Post analysis of voting data.

Why it matters: The election is already underway, as many states have expanded early and mail-in voting options because of the coronavirus pandemic.

What to expect from the final debate of the 2020 election

Trump and Biden at the first debate. Morry Gash-Pool/Getty Image

Watch for President Trump to address Joe Biden as “the big guy” or “the chairman” at tonight's debate as a way of dramatizing the Hunter Biden emails. Hunter's former business partner Tony Bobulinski is expected to be a Trump debate guest.

The big picture: Trump's advisers universally view the first debate as a catastrophe — evidenced by a sharp plunge in Trump’s public and (more convincingly for them) private polling immediately following the debate.