Nonfarm payrolls rose 162k in August, above the 12-month average monthly gain of 31k. Restaurant and food services added 59k and local government education added 42k. Healthcare payrolls rose 13k, below its 12-month average gain of 32k.

An Italian official said Prime Minister Meloni's government will extend a diesel tax reduction of 17 euro cents per litre through Sept. 10. The measure is the latest in steps introduced since March to blunt an energy-price surge linked to the Iran conflict. The extension comes amid rising political pressure ahead of elections due by end-2026 and growing splits within Meloni's right-wing coalition over how to fund further aid; funds for consumer relief and support for strained industries are being depleted, the official said. Italy's debt-to-GDP remains well above 130% and economic growth this year is forecast at 0.6%.

Union Investment, one of Germany's largest asset managers, warned Volkswagen in a letter to the chairman that its credit rating could be downgraded to junk unless the automaker implements substantial cost cuts and improves profitability, the FT reports. The move escalates an internal standoff ahead of a crucial supervisory board meeting on Friday over CEO Oliver Blume's restructuring plan, which could eliminate up to 100,000 jobs in Germany and close as many as four plants. Management and the supervisory board are deadlocked; worker representatives and major shareholder Lower Saxony oppose the plan.