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Oil prices ticked higher on Thursday, regaining some ground after sliding to two-month lows in the previous session. As per Reuters, the rebound comes ahead of a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin, which has injected fresh geopolitical risk premiums into the market.&nbsp;At 0057 GMT, Brent crude futures rose 28 cents, or 0.43 per cent, to $65.91 a barrel, while US West Texas Intermediate (WTI) crude gained 23 cents, or 0.37 per cent, to $62.89. Both benchmarks had plunged to their weakest levels since June after bearish supply forecasts from the US government and the International Energy Agency (IEA).&nbsp;The Trump–Putin meeting, set for Friday in Alaska, has emerged as a focal point for traders. On Wednesday, Trump warned of “severe consequences” if Putin failed to agree to a peace settlement in Ukraine. While he did not specify the measures, he has previously threatened fresh economic sanctions should talks prove fruitless.<h2>Geopolitics and Fed policy provide support</h2>According to Rystad Energy, the uncertainty surrounding the US–Russia peace talks is fuelling a bullish risk premium, as Russian oil buyers could face greater economic pressure if tensions escalate. Adding to the upside, markets are now pricing in near certainty that the US Federal Reserve will cut interest rates in September. As quoted by Reuters, the CME FedWatch tool shows a 99.9 per cent probability of a quarter-point cut, with some investors expecting an aggressive half-point move given recent weak US jobs data. Treasury Secretary Scott Bessent has also signalled that deeper cuts are possible.&nbsp;A weaker dollar, hovering near multi-week lows against the euro and sterling has further supported oil, making crude cheaper for holders of other currencies. Lower borrowing costs are generally seen as a boost for energy demand.<h2>Inventory build and supply forecasts cap gains</h2>However, gains in oil prices were tempered by a surprise build in US crude inventories. The US Energy Information Administration reported an increase of 3 million barrels for the week ended August 8, against expectations in a Reuters poll for a 275,000-barrel draw.&nbsp;Meanwhile, the IEA has forecast that global oil supply in 2025 and 2026 will grow faster than previously anticipated. As per Reuters, the agency cited higher production from OPEC+ and robust output from non-OPEC producers as key factors.&nbsp;With geopolitical tensions, central bank policy shifts, and supply-demand forecasts all in play, oil markets are expected to remain volatile heading into the Trump–Putin meeting. (With inputs from the agencies)

Brent and WTI crude gained on Thursday after recent sharp declines, buoyed by geopolitical tensions ahead of US and Russia peace talks in Alaska and expectations of a September US Fed rate cut. Markets remain volatile amid uncertainty over the outcome of the Trump–Putin meeting.

Oil prices ticked higher on Thursday, regaining some ground after sliding to two-month lows in the previous session. As per Reuters, the rebound comes ahead of a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin, which has injected fresh geopolitical risk premiums into the market. At 0057 GMT, Brent crude futures rose 28 cents, or 0.43 per cent, to $65.91 a barrel, while US West Texas Intermediate (WTI) crude gained 23 cents, or 0.37 per cent, to $62.89. Both benchmarks had plunged to their weakest levels since June after bearish supply forecasts from the US government and the International Energy Agency (IEA). The Trump–Putin meeting, set for Friday in Alaska, has emerged as a focal point for traders. On Wednesday, Trump warned of “severe consequences” if Putin failed to agree to a peace settlement in Ukraine. While he did not specify the measures, he has previously threatened fresh economic sanctions should talks prove fruitless. Geopolitics and Fed policy provide support According to Rystad Energy, the uncertainty surrounding the US–Russia peace talks is fuelling a bullish risk premium, as Russian oil buyers could face greater economic pressure if tensions escalate. Adding to the upside, markets are now pricing in near certainty that the US Federal Reserve will cut interest rates in September. As quoted by Reuters, the CME FedWatch tool shows a 99.9 per cent probability of a quarter-point cut, with some investors expecting an aggressive half-point move given recent weak US jobs data. Treasury Secretary Scott Bessent has also signalled that deeper cuts are possible. A weaker dollar, hovering near multi-week lows against the euro and sterling has further supported oil, making crude cheaper for holders of other currencies. Lower borrowing costs are generally seen as a boost for energy demand. Inventory build and supply forecasts cap gains However, gains in oil prices were tempered by a surprise build in US crude inventories. The US Energy Information Administration reported an increase of 3 million barrels for the week ended August 8, against expectations in a Reuters poll for a 275,000-barrel draw. Meanwhile, the IEA has forecast that global oil supply in 2025 and 2026 will grow faster than previously anticipated. As per Reuters, the agency cited higher production from OPEC+ and robust output from non-OPEC producers as key factors. With geopolitical tensions, central bank policy shifts, and supply-demand forecasts all in play, oil markets are expected to remain volatile heading into the Trump–Putin meeting. (With inputs from the agencies)

Oil prices rebounded from two-month lows as traders weighed geopolitical risks from the upcoming Trump–Putin meeting, potential US rate cuts, and mixed supply signals.

Oil prices recover from two-month lows ahead of Trump–Putin talks

US stocks extended their record-setting momentum on August 13, with the S&amp;P 500 and Nasdaq Composite closing at all-time highs for the second straight session, as mounting expectations for interest rate cuts kept investor sentiment buoyant. The Dow Jones Industrial Average rose 463.66 points, or 1.04 per cent, to 44,922.27. The S&amp;P 500 gained 20.82 points, or 0.32 per cent, to 6,466.58, while the Nasdaq added 31.24 points, or 0.14 per cent, to finish at 21,713.14. The rally comes on the heels of a tamer-than-expected US inflation report earlier in the week, which bolstered hopes that the Federal Reserve will begin easing policy as soon as September.According to the CME FedWatch Tool, traders are now pricing in nearly a 100 per cent probability of a 25 basis-point cut, with some, including Treasury Secretary Scott Bessent, suggesting a half-point reduction could be on the table given recent weak jobs data. The central bank last lowered rates in December.<h2>Tech momentum pauses, small caps rally</h2>While Wall Street’s broader tone was positive, some heavyweight technology names lost steam following sharp gains on August 12. Nvidia, Alphabet, and Microsoft ended lower as investors rotated into other sectors. Apple bucked the trend, climbing 1.6 per cent after a Bloomberg report revealed plans to expand into AI-powered robots, home security, and smart displays.Advanced Micro Devices surged 5.4 per cent to lead technology gainers. Small-cap stocks, tracked by the Russell 2000 index, jumped 2 per cent to a six-month high, benefiting from the prospect of cheaper borrowing costs. Healthcare stocks, one of the year’s laggards, advanced 1.6 per cent to rank among the top-performing S&amp;P 500 sectors.&nbsp;<h2>Market breadth improves, eyes on data ahead</h2>Market breadth was strong, with advancing issues outnumbering decliners by more than four-to-one on the NYSE. Paramount Skydance soared 36.7 per cent after securing exclusive broadcasting rights to the Ultimate Fighting Championship for seven years.Investors are now watching the producer price index report to be released on August 14 for further clues on inflation trends. The upcoming Federal Reserve Jackson Hole symposium, set for August 21-23, could also provide fresh signals on the timing and scale of rate cuts. Volume on US exchanges totalled 16.9 billion shares, slightly below the 20-session average of 18.3 billion.&nbsp;(With inputs from agencies)

The US markets rally comes on the heels of a tamer-than-expected US inflation report earlier in the week, which bolstered hopes that the Federal Reserve will begin easing policy as soon as September.

US stocks extended their record-setting momentum on August 13, with the S&P 500 and Nasdaq Composite closing at all-time highs for the second straight session, as mounting expectations for interest rate cuts kept investor sentiment buoyant. The Dow Jones Industrial Average rose 463.66 points, or 1.04 per cent, to 44,922.27. The S&P 500 gained 20.82 points, or 0.32 per cent, to 6,466.58, while the Nasdaq added 31.24 points, or 0.14 per cent, to finish at 21,713.14. The rally comes on the heels of a tamer-than-expected US inflation report earlier in the week, which bolstered hopes that the Federal Reserve will begin easing policy as soon as September. According to the CME FedWatch Tool, traders are now pricing in nearly a 100 per cent probability of a 25 basis-point cut, with some, including Treasury Secretary Scott Bessent, suggesting a half-point reduction could be on the table given recent weak jobs data. The central bank last lowered rates in December. Tech momentum pauses, small caps rally While Wall Street’s broader tone was positive, some heavyweight technology names lost steam following sharp gains on August 12. Nvidia, Alphabet, and Microsoft ended lower as investors rotated into other sectors. Apple bucked the trend, climbing 1.6 per cent after a Bloomberg report revealed plans to expand into AI-powered robots, home security, and smart displays. Advanced Micro Devices surged 5.4 per cent to lead technology gainers. Small-cap stocks, tracked by the Russell 2000 index, jumped 2 per cent to a six-month high, benefiting from the prospect of cheaper borrowing costs. Healthcare stocks, one of the year’s laggards, advanced 1.6 per cent to rank among the top-performing S&P 500 sectors. Market breadth improves, eyes on data ahead Market breadth was strong, with advancing issues outnumbering decliners by more than four-to-one on the NYSE. Paramount Skydance soared 36.7 per cent after securing exclusive broadcasting rights to the Ultimate Fighting Championship for seven years. Investors are now watching the producer price index report to be released on August 14 for further clues on inflation trends. The upcoming Federal Reserve Jackson Hole symposium, set for August 21-23, could also provide fresh signals on the timing and scale of rate cuts. Volume on US exchanges totalled 16.9 billion shares, slightly below the 20-session average of 18.3 billion. (With inputs from agencies)

The US markets rally comes on the heels of a tamer-than-expected US inflation report earlier in the week, which bolstered hopes that the Federal Reserve will begin easing policy as soon as September.

Wall Street extends record run as Fed rate-cut bets build

In a bold move to expand its artificial intelligence (AI) capabilities, Microsoft is targeting top engineers and researchers from its competitor Meta, offering multimillion-dollar compensation packages to attract them. According to internal documents viewed by Business Insider, the tech giant has compiled a list of Meta’s most coveted AI talent, focusing on key teams such as Reality Labs, GenAI Infrastructure, and Meta AI Research. The recruitment push comes as Microsoft’s valuation approaches $4 trillion, driven largely by the booming demand for generative AI technology.Microsoft’s aggressive hiring strategy follows a period of massive layoffs across the company, with approximately 9,000 positions cut earlier this year. Despite these layoffs, the company has insisted that its overall headcount will remain flat, signalling that selective recruitment, particularly for high-value roles in AI, will remain a top priority.<h2>Competing with Meta’s jaw-dropping compensation packages</h2>The competition for AI talent has reached unprecedented levels, with both Meta and Microsoft offering eye-watering compensation to secure the brightest minds in the field. Meta has been known for offering nine-figure pay packages, including $100 million signing bonuses, and reportedly attracting some hires with total compensation packages as high as $250 million. In response, Microsoft is ramping up its own recruitment efforts, including matching or even exceeding Meta’s offers in some cases.Media reports suggest that Microsoft is now making multimillion-dollar offers to AI professionals. These packages include competitive base salaries, up to $408,000, along with stock awards that can total nearly $3.4 million (including both on-hire and annual stock grants) and cash bonuses of up to 90 per cent. For particularly desirable candidates, Microsoft’s new fast-track hiring process can ensure that offers are made within 24 hours, with a compensation modeller used to create customised pay ranges and input from a compensation consultant.Two Microsoft divisions are leading the charge in these recruitment efforts: Microsoft AI, which is overseen by former DeepMind cofounder Mustafa Suleyman, and CoreAI, managed by former Meta engineering boss Jay Parikh. The documents reveal that specialised recruiting teams within these groups are identifying and flagging “critical AI talent”, allowing the company to respond quickly and ensure it doesn’t lose out on the competition for top engineers.<h2>AI talent becoming the core of Microsoft’s growth strategy</h2>The drive to recruit elite AI engineers is central to Microsoft’s broader strategy to maintain its position at the forefront of the AI industry. The company has benefited greatly from its generative AI investments, especially through partnerships with OpenAI and its own AI divisions. As AI technologies continue to advance, Microsoft aims to stay ahead of rivals like Meta, Google, and Amazon, all of whom are in a fierce race to dominate the next wave of innovation.Jay Parikh’s leadership within CoreAI, comprising several former Meta executives, illustrates Microsoft’s intention to directly challenge its rival by drawing from the same talent pool. The company's efforts underscore the escalating importance of securing top-tier researchers and engineers, whose work will be instrumental in shaping the future of AI-driven products and services.Microsoft’s efforts to poach Meta talent are more than just a tactical move to fill open positions; they are a reflection of the growing power of AI within the tech industry and the broader economy. With the AI market forecasted to continue growing rapidly, securing the best and brightest minds is now viewed as an essential element for future success. As the battle for AI supremacy intensifies, Microsoft’s recruiting efforts are set to shape not only its own future but also the broader trajectory of the tech industry, which is increasingly defined by its ability to innovate in artificial intelligence.&nbsp;(With inputs from agencies)

Microsoft’s aggressive hiring strategy follows a period of massive layoffs across the company earlier this year. Despite these layoffs, it has insisted that its overall headcount will remain flat, signalling that selective recruitment, particularly for high-value roles in AI.

In a bold move to expand its artificial intelligence (AI) capabilities, Microsoft is targeting top engineers and researchers from its competitor Meta, offering multimillion-dollar compensation packages to attract them. According to internal documents viewed by Business Insider, the tech giant has compiled a list of Meta’s most coveted AI talent, focusing on key teams such as Reality Labs, GenAI Infrastructure, and Meta AI Research. The recruitment push comes as Microsoft’s valuation approaches $4 trillion, driven largely by the booming demand for generative AI technology. Microsoft’s aggressive hiring strategy follows a period of massive layoffs across the company, with approximately 9,000 positions cut earlier this year. Despite these layoffs, the company has insisted that its overall headcount will remain flat, signalling that selective recruitment, particularly for high-value roles in AI, will remain a top priority. Competing with Meta’s jaw-dropping compensation packages The competition for AI talent has reached unprecedented levels, with both Meta and Microsoft offering eye-watering compensation to secure the brightest minds in the field. Meta has been known for offering nine-figure pay packages, including $100 million signing bonuses, and reportedly attracting some hires with total compensation packages as high as $250 million. In response, Microsoft is ramping up its own recruitment efforts, including matching or even exceeding Meta’s offers in some cases. Media reports suggest that Microsoft is now making multimillion-dollar offers to AI professionals. These packages include competitive base salaries, up to $408,000, along with stock awards that can total nearly $3.4 million (including both on-hire and annual stock grants) and cash bonuses of up to 90 per cent. For particularly desirable candidates, Microsoft’s new fast-track hiring process can ensure that offers are made within 24 hours, with a compensation modeller used to create customised pay ranges and input from a compensation consultant. Two Microsoft divisions are leading the charge in these recruitment efforts: Microsoft AI, which is overseen by former DeepMind cofounder Mustafa Suleyman, and CoreAI, managed by former Meta engineering boss Jay Parikh. The documents reveal that specialised recruiting teams within these groups are identifying and flagging “critical AI talent”, allowing the company to respond quickly and ensure it doesn’t lose out on the competition for top engineers. AI talent becoming the core of Microsoft’s growth strategy The drive to recruit elite AI engineers is central to Microsoft’s broader strategy to maintain its position at the forefront of the AI industry. The company has benefited greatly from its generative AI investments, especially through partnerships with OpenAI and its own AI divisions. As AI technologies continue to advance, Microsoft aims to stay ahead of rivals like Meta, Google, and Amazon, all of whom are in a fierce race to dominate the next wave of innovation. Jay Parikh’s leadership within CoreAI, comprising several former Meta executives, illustrates Microsoft’s intention to directly challenge its rival by drawing from the same talent pool. The company's efforts underscore the escalating importance of securing top-tier researchers and engineers, whose work will be instrumental in shaping the future of AI-driven products and services. Microsoft’s efforts to poach Meta talent are more than just a tactical move to fill open positions; they are a reflection of the growing power of AI within the tech industry and the broader economy. With the AI market forecasted to continue growing rapidly, securing the best and brightest minds is now viewed as an essential element for future success. As the battle for AI supremacy intensifies, Microsoft’s recruiting efforts are set to shape not only its own future but also the broader trajectory of the tech industry, which is increasingly defined by its ability to innovate in artificial intelligence. (With inputs from agencies)

Microsoft’s aggressive hiring strategy follows a period of massive layoffs across the company earlier this year. Despite these layoffs, it has insisted that its overall headcount will remain flat, signalling that selective recruitment, particularly for high-value roles in AI.

Microsoft targets Meta’s top AI talent with multimillion-dollar pay packages

For the first time in US history, the nation’s gross national debt has exceeded $37 trillion, according to a new report from the US Treasury Department. The national debt stood at $37,004,817,625,842.56 on the afternoon of August 12, a stark reminder of the accelerating pace at which the US government is borrowing. This milestone was reached less than eight months after the country hit the $36 trillion mark in November 2024 and just over a year after surpassing $35 trillion in July 2024.The speed of this debt accumulation has raised alarms among economists and fiscal experts. Michael Peterson, CEO of the Peter G. Peterson Foundation, told AP that the US is now adding $1 trillion to its national debt every five months, a rate more than twice as fast as the average pace over the last quarter-century. This rapid growth is primarily attributed to pandemic-related spending and recent tax cuts and government spending approved by Congress earlier this year under the Trump administration.<h2>Impact on the economy and future generations</h2>The surge in national debt has broad implications for the US economy. As the federal government borrows more, interest rates are pushed higher, raising borrowing costs for everyday Americans on mortgages, car loans, and credit cards. Additionally, businesses face higher borrowing costs, leading to reduced investment and potentially lower wages. The Government Accountability Office has also warned that rising debt could lead to more expensive goods and services. Some experts highlighted the long-term consequences of the Republicans’ tax law, which is expected to add $4.1 trillion to the debt over the next decade.&nbsp;<h2>Policymakers urged to act before crisis hits</h2>Maya MacGuineas, President of the Committee for a Responsible Federal Budget (CRFB), urged policymakers to take immediate action to tackle the growing debt. “This milestone should serve as a wake-up call for lawmakers,” she told AP. “We’re on track to spend $1 trillion just on interest costs. The fiscal situation is unsustainable.” Despite the grim reality, experts emphasise that it’s not too late for reform. However, with debt now greater than the combined economies of the Eurozone and China, the window for meaningful action is closing rapidly.&nbsp;(With inputs from agencies)

This rapid growth in the US national debt is primarily attributed to pandemic-related spending and recent tax cuts and government spending approved by Congress earlier this year under the Trump administration.

For the first time in US history, the nation’s gross national debt has exceeded $37 trillion, according to a new report from the US Treasury Department. The national debt stood at $37,004,817,625,842.56 on the afternoon of August 12, a stark reminder of the accelerating pace at which the US government is borrowing. This milestone was reached less than eight months after the country hit the $36 trillion mark in November 2024 and just over a year after surpassing $35 trillion in July 2024. The speed of this debt accumulation has raised alarms among economists and fiscal experts. Michael Peterson, CEO of the Peter G. Peterson Foundation, told AP that the US is now adding $1 trillion to its national debt every five months, a rate more than twice as fast as the average pace over the last quarter-century. This rapid growth is primarily attributed to pandemic-related spending and recent tax cuts and government spending approved by Congress earlier this year under the Trump administration. Impact on the economy and future generations The surge in national debt has broad implications for the US economy. As the federal government borrows more, interest rates are pushed higher, raising borrowing costs for everyday Americans on mortgages, car loans, and credit cards. Additionally, businesses face higher borrowing costs, leading to reduced investment and potentially lower wages. The Government Accountability Office has also warned that rising debt could lead to more expensive goods and services. Some experts highlighted the long-term consequences of the Republicans’ tax law, which is expected to add $4.1 trillion to the debt over the next decade. Policymakers urged to act before crisis hits Maya MacGuineas, President of the Committee for a Responsible Federal Budget (CRFB), urged policymakers to take immediate action to tackle the growing debt. “This milestone should serve as a wake-up call for lawmakers,” she told AP. “We’re on track to spend $1 trillion just on interest costs. The fiscal situation is unsustainable.” Despite the grim reality, experts emphasise that it’s not too late for reform. However, with debt now greater than the combined economies of the Eurozone and China, the window for meaningful action is closing rapidly. (With inputs from agencies)

This rapid growth in the US national debt is primarily attributed to pandemic-related spending and recent tax cuts and government spending approved by Congress earlier this year under the Trump administration.

US national debt surpasses $37 trillion, marking a historic milestone

Boeing and Airbus continued to diverge in their delivery and production performance in July 2025, with Airbus maintaining a strong lead in aircraft deliveries while Boeing faces ongoing production challenges. Boeing delivered 48 jets in July, a dip from June’s 60 deliveries, though it still marked an improvement from the 43 jets delivered during the same month last year. The US planemaker’s deliveries were driven primarily by 37 737 MAX jets, but it also handed over eight 787s, two 777 freighters, and one 767 freighter. However, Boeing has not set a specific delivery target for 2025, focusing instead on stabilising production, especially for the MAX programme.In comparison, Airbus delivered 67 jets, including five A220s, 54 A320neo family jets, two A330s, and six A350s. While slightly down from 77 jets delivered in July 2024, the European planemaker’s year-to-date delivery tally of 373 aircraft has kept it on track for its goal of delivering 820 jets by the end of 2025. Airbus will need to ramp up deliveries significantly in the final months of the year to meet this target, an average of over 89 aircraft per month.<h2>Airbus A320neo gains momentum as Boeing works to stabilise production</h2>Airbus has made headway in boosting its A320neo family deliveries, accounting for 54 of the 67 jets handed over in July. Despite early challenges with ramping up production, Airbus is showing signs of momentum, aiming for a higher output in the second half of 2025. However, the A220 programme continues to face challenges in meeting its production targets, with deliveries stabilising at about eight jets per month.Boeing, meanwhile, continues to focus on stabilising its production of the 737 MAX, which remains its flagship programme. The company has achieved positive momentum in the MAX programme, with production stabilising around 38 aircraft per month. Boeing’s monthly deliveries for the MAX have generally ranged between 40 and 45 jets this year, with July delivering 37. Boeing also remains on track to hit a production rate of seven 787s per month by the end of 2025, though its wider-body programmes like the 777X remain delayed.<h2>Boeing surpasses Airbus in 2025 order book</h2>While Boeing continues to trail Airbus in deliveries, it has surpassed its European competitor in new orders for 2025. Boeing secured 699 gross orders by July 31, including 243 for the 787, while Airbus received 501 orders in the same period. This shift in orders largely reflects strong demand for Boeing’s 737 MAX and 787, though both companies are facing significant challenges in fulfilling their backlogs.As of July 2025, Boeing's total unfilled orders stood at 6,563 aircraft, with nearly 75 per cent consisting of 737 MAXs. Meanwhile, Airbus’s backlog reached 8,678 jets, with the A320neo family making up the majority of that figure. Despite Boeing’s superior order book, the real challenge for both companies will be in translating these orders into deliveries, an area where Airbus is currently ahead.&nbsp;(With inputs from agencies)

While Boeing continues to trail Airbus in deliveries, it has surpassed its European competitor in new orders for 2025. Boeing secured 699 gross orders by July 31, including 243 for the 787, while Airbus received 501 orders in the same period. 

Boeing and Airbus continued to diverge in their delivery and production performance in July 2025, with Airbus maintaining a strong lead in aircraft deliveries while Boeing faces ongoing production challenges. Boeing delivered 48 jets in July, a dip from June’s 60 deliveries, though it still marked an improvement from the 43 jets delivered during the same month last year. The US planemaker’s deliveries were driven primarily by 37 737 MAX jets, but it also handed over eight 787s, two 777 freighters, and one 767 freighter. However, Boeing has not set a specific delivery target for 2025, focusing instead on stabilising production, especially for the MAX programme. In comparison, Airbus delivered 67 jets, including five A220s, 54 A320neo family jets, two A330s, and six A350s. While slightly down from 77 jets delivered in July 2024, the European planemaker’s year-to-date delivery tally of 373 aircraft has kept it on track for its goal of delivering 820 jets by the end of 2025. Airbus will need to ramp up deliveries significantly in the final months of the year to meet this target, an average of over 89 aircraft per month. Airbus A320neo gains momentum as Boeing works to stabilise production Airbus has made headway in boosting its A320neo family deliveries, accounting for 54 of the 67 jets handed over in July. Despite early challenges with ramping up production, Airbus is showing signs of momentum, aiming for a higher output in the second half of 2025. However, the A220 programme continues to face challenges in meeting its production targets, with deliveries stabilising at about eight jets per month. Boeing, meanwhile, continues to focus on stabilising its production of the 737 MAX, which remains its flagship programme. The company has achieved positive momentum in the MAX programme, with production stabilising around 38 aircraft per month. Boeing’s monthly deliveries for the MAX have generally ranged between 40 and 45 jets this year, with July delivering 37. Boeing also remains on track to hit a production rate of seven 787s per month by the end of 2025, though its wider-body programmes like the 777X remain delayed. Boeing surpasses Airbus in 2025 order book While Boeing continues to trail Airbus in deliveries, it has surpassed its European competitor in new orders for 2025. Boeing secured 699 gross orders by July 31, including 243 for the 787, while Airbus received 501 orders in the same period. This shift in orders largely reflects strong demand for Boeing’s 737 MAX and 787, though both companies are facing significant challenges in fulfilling their backlogs. As of July 2025, Boeing's total unfilled orders stood at 6,563 aircraft, with nearly 75 per cent consisting of 737 MAXs. Meanwhile, Airbus’s backlog reached 8,678 jets, with the A320neo family making up the majority of that figure. Despite Boeing’s superior order book, the real challenge for both companies will be in translating these orders into deliveries, an area where Airbus is currently ahead. (With inputs from agencies)

While Boeing continues to trail Airbus in deliveries, it has surpassed its European competitor in new orders for 2025. Boeing secured 699 gross orders by July 31, including 243 for the 787, while Airbus received 501 orders in the same period.&nbsp;

Boeing and Airbus show diverging trends in aircraft deliveries and orders for July

Global electric vehicle (EV) sales grew 21 per cent year-on-year in July, the slowest rate since January, according to market research firm Rho Motion. This growth rate was down from 25 per cent in June and highlights a slowdown in the booming EV sector. The decline was primarily driven by a significant dip in plug-in hybrid electric vehicle (PHEV) sales in China, the world’s largest car market, which accounts for more than half of global EV sales.In July, China’s EV market saw its growth rate fall to 12 per cent from an average of 36 per cent per month in the first half of the year. Rho Motion’s data manager, Charles Lester, attributed this slowdown to a pause in government subsidies for EV and PHEV purchases, which had been a key driver for the market's rapid growth. Despite the slowdown, China remained the largest EV market, with sales reaching around one million units.<h2>Europe and North America show resilient growth</h2>While China’s market has cooled, other regions are compensating with impressive growth figures. In Europe, EV sales surged by 48 per cent year-on-year to approximately 390,000 units, fuelled by government incentives aimed at accelerating the decarbonisation of the automotive sector. North America also saw growth, with sales increasing by 10 per cent to over 170,000 units in July. Meanwhile, sales in other parts of the world grew by 55 per cent, reaching more than 140,000 units.The growth in European markets like Germany, the UK, and Italy has been notable, with sales in these countries increasing by 43 per cent, 32 per cent, and 40 per cent, respectively. The European Union’s policies and tax incentives continue to drive the adoption of EVs as part of its broader climate goals.<h2>Market outlook and challenges ahead</h2>Despite the regional variations, Rho Motion maintains a positive outlook for global EV adoption, with the trajectory still expected to be strongly upward in the coming years. However, the market faces some challenges. In China, the EV sector is expected to return to strong growth in August as new funds are made available for government subsidy schemes. On the other hand, a planned reduction in US tax credits for EV purchases, set to take effect by the end of September, could dampen demand in North America.The slowdown in global EV sales in July reflects shifting dynamics in major markets. As countries continue to tweak policies to meet sustainability targets, the path forward for the EV industry is expected to be a mix of regional successes and challenges.&nbsp;(With inputs from agencies)

Despite the regional variations, Rho Motion maintains a positive outlook for global EV adoption, with the trajectory still expected to be strongly upward in the coming years. However, the market faces some challenges.

Global electric vehicle (EV) sales grew 21 per cent year-on-year in July, the slowest rate since January, according to market research firm Rho Motion. This growth rate was down from 25 per cent in June and highlights a slowdown in the booming EV sector. The decline was primarily driven by a significant dip in plug-in hybrid electric vehicle (PHEV) sales in China, the world’s largest car market, which accounts for more than half of global EV sales. In July, China’s EV market saw its growth rate fall to 12 per cent from an average of 36 per cent per month in the first half of the year. Rho Motion’s data manager, Charles Lester, attributed this slowdown to a pause in government subsidies for EV and PHEV purchases, which had been a key driver for the market's rapid growth. Despite the slowdown, China remained the largest EV market, with sales reaching around one million units. Europe and North America show resilient growth While China’s market has cooled, other regions are compensating with impressive growth figures. In Europe, EV sales surged by 48 per cent year-on-year to approximately 390,000 units, fuelled by government incentives aimed at accelerating the decarbonisation of the automotive sector. North America also saw growth, with sales increasing by 10 per cent to over 170,000 units in July. Meanwhile, sales in other parts of the world grew by 55 per cent, reaching more than 140,000 units. The growth in European markets like Germany, the UK, and Italy has been notable, with sales in these countries increasing by 43 per cent, 32 per cent, and 40 per cent, respectively. The European Union’s policies and tax incentives continue to drive the adoption of EVs as part of its broader climate goals. Market outlook and challenges ahead Despite the regional variations, Rho Motion maintains a positive outlook for global EV adoption, with the trajectory still expected to be strongly upward in the coming years. However, the market faces some challenges. In China, the EV sector is expected to return to strong growth in August as new funds are made available for government subsidy schemes. On the other hand, a planned reduction in US tax credits for EV purchases, set to take effect by the end of September, could dampen demand in North America. The slowdown in global EV sales in July reflects shifting dynamics in major markets. As countries continue to tweak policies to meet sustainability targets, the path forward for the EV industry is expected to be a mix of regional successes and challenges. (With inputs from agencies)

Despite the regional variations, Rho Motion maintains a positive outlook for global EV adoption, with the trajectory still expected to be strongly upward in the coming years. However, the market faces some challenges.

Global electric vehicle sales slow in July amid decline in China

Japan has opened a formal anti-dumping investigation into steel imports from China and South Korea, in a move aimed at protecting its domestic producers from a wave of cheap foreign products. The probe will examine imports of hot-dipped galvanised coil, sheet and strip, according to a joint statement from the trade and finance ministries on Wednesday, as reported by Bloomberg. The investigation is set to run for up to a year. It follows an application filed in April by four major Japanese steelmakers, including Nippon Steel Corp. and Kobe Steel Ltd., which argued that the influx of low-priced imports was harming the local industry. Officials confirmed that Chinese and South Korean suppliers will have an opportunity to submit evidence before any decision on duties is made.<h2>China’s steel export boom pressures global prices</h2>China, the world’s largest steel producer, has seen its exports surge in 2025 as domestic demand falters. A prolonged slowdown in the property sector — traditionally a key driver of steel consumption has left producers with large surpluses, prompting them to flood overseas markets with low-cost steel.&nbsp;According to Bloomberg, this export wave has weighed heavily on global steel prices and intensified competition, hitting producers in Japan, South Korea, and other key manufacturing hubs. Analysts say Japan’s move reflects a broader global trend, as governments look to shield their industries from the impact of aggressive export strategies by Chinese mills.<h2>Trade tensions and US tariffs complicate market dynamics</h2>The Japanese steel industry is already contending with shifting trade flows and heightened competition. Tariffs imposed by the US government under President Donald Trump have reshaped global steel supply chains, adding a further layer of complexity for Japanese producers trying to maintain competitiveness.&nbsp;These trade measures have forced exporters to seek new markets and adjust pricing strategies, creating additional volatility in the steel trade. In this context, Japan’s anti-dumping action is seen as a defensive measure to maintain stability in its domestic market.<h2>Not the first recent action by Japan</h2>This is Japan’s second anti-dumping investigation in as many months. In July, Tokyo began a probe into Chinese and Taiwanese nickel-added cold-rolled stainless-steel coil, sheet and strip. Both actions signal a stronger stance from the Japanese government in countering what it sees as unfair trade practices.&nbsp;As per Bloomberg, if the current probe concludes that dumping has occurred, Japan could impose new import duties on Chinese and South Korean steel products. Such a move would join a growing list of global trade restrictions reshaping the steel market in 2025.&nbsp;(With inputs from the agencies)&nbsp; &nbsp;

The year long probe targets hot dipped galvanised products. China steel export surge due to domestic demand declines has pressured global prices, complicating market dynamics further impacted by US tariffs. 

Japan has opened a formal anti-dumping investigation into steel imports from China and South Korea, in a move aimed at protecting its domestic producers from a wave of cheap foreign products. The probe will examine imports of hot-dipped galvanised coil, sheet and strip, according to a joint statement from the trade and finance ministries on Wednesday, as reported by Bloomberg. The investigation is set to run for up to a year. It follows an application filed in April by four major Japanese steelmakers, including Nippon Steel Corp. and Kobe Steel Ltd., which argued that the influx of low-priced imports was harming the local industry. Officials confirmed that Chinese and South Korean suppliers will have an opportunity to submit evidence before any decision on duties is made. China’s steel export boom pressures global prices China, the world’s largest steel producer, has seen its exports surge in 2025 as domestic demand falters. A prolonged slowdown in the property sector — traditionally a key driver of steel consumption has left producers with large surpluses, prompting them to flood overseas markets with low-cost steel. According to Bloomberg, this export wave has weighed heavily on global steel prices and intensified competition, hitting producers in Japan, South Korea, and other key manufacturing hubs. Analysts say Japan’s move reflects a broader global trend, as governments look to shield their industries from the impact of aggressive export strategies by Chinese mills. Trade tensions and US tariffs complicate market dynamics The Japanese steel industry is already contending with shifting trade flows and heightened competition. Tariffs imposed by the US government under President Donald Trump have reshaped global steel supply chains, adding a further layer of complexity for Japanese producers trying to maintain competitiveness. These trade measures have forced exporters to seek new markets and adjust pricing strategies, creating additional volatility in the steel trade. In this context, Japan’s anti-dumping action is seen as a defensive measure to maintain stability in its domestic market. Not the first recent action by Japan This is Japan’s second anti-dumping investigation in as many months. In July, Tokyo began a probe into Chinese and Taiwanese nickel-added cold-rolled stainless-steel coil, sheet and strip. Both actions signal a stronger stance from the Japanese government in countering what it sees as unfair trade practices. As per Bloomberg, if the current probe concludes that dumping has occurred, Japan could impose new import duties on Chinese and South Korean steel products. Such a move would join a growing list of global trade restrictions reshaping the steel market in 2025. (With inputs from the agencies)

Japan has initiated an anti-dumping investigation into steel imports from China and South Korea to protect its domestic producers from low-priced imports, following a request from major steelmakers.

Japan launches anti-dumping probe into Chinese, South Korean steel imports

In a move set to shake up Silicon Valley, Perplexity AI, a three-year-old artificial intelligence startup, has submitted an unsolicited all-cash bid of $34.5 billion to acquire Google Chrome, the world’s most popular web browser. The bid, significantly higher than the company’s current valuation of $14 billion, underscores Perplexity’s aggressive strategy to expand its footprint in the browser market, leveraging Chrome’s massive user base of over three billion people.The offer arrives at a critical juncture for Google, which is facing mounting regulatory pressure over its alleged monopolistic practices in the search industry. Recently, a US court ruled that Google holds an unlawful monopoly in online search, with some legal experts suggesting that the forced divestiture of Chrome could be one of the remedies. Although Google has vowed to appeal the decision, Perplexity’s offer reflects the growing importance of web browsers in the AI search race.<h2>Perplexity’s plan to keep Chrome open and invest $3 billion</h2>Perplexity, which already develops an AI-powered browser named Comet, plans to keep Chrome’s underlying code, Chromium, open-source, thereby maintaining the browser’s integrity for developers and users alike. The startup also promises to invest $3 billion over the next two years to further enhance Chrome’s capabilities and continue its development. Importantly, Perplexity has pledged not to make any changes to the browser’s default search engine, which is currently Google Search, aiming to maintain stability for both users and advertisers.The deal is structured to avoid antitrust concerns, as Perplexity’s offer does not involve any equity component in the company itself. According to a term sheet reviewed by Reuters, Perplexity would also commit to retaining a substantial portion of Chrome’s existing team to ensure a smooth transition and continuity of service. Several unnamed investment funds have reportedly agreed to fully finance the deal, signalling strong backing for the bold proposal.<h2>Google’s response and legal hurdles ahead</h2>Despite Perplexity’s ambitious offer, it remains unclear whether Google will entertain the proposal. The tech giant, which has consistently resisted calls for Chrome’s sale, is expected to engage in a prolonged legal battle to protect its interests. Legal experts suggest that the antitrust case could take several years to resolve, with the possibility of the matter ultimately reaching the US Supreme Court.While Perplexity’s offer is likely a strategic move to ruffle Google’s feathers and make a play for the browser market, the stakes are high. A successful acquisition of Chrome could propel Perplexity into direct competition with some of the biggest names in AI, including OpenAI, which is also developing its own AI-powered browser. However, even if Google ultimately rejects the offer, Perplexity’s bold bid signals the growing prominence of web browsers in the next-generation AI landscape.&nbsp;&nbsp;(With inputs from agencies)

Recently, a US court ruled that Google holds an unlawful monopoly in online search, with some suggesting a forced divestiture of Chrome as a remedy. Although Google has vowed to appeal the decision, Perplexity’s offer reflects the growing importance of web browsers in the AI search race.

In a move set to shake up Silicon Valley, Perplexity AI, a three-year-old artificial intelligence startup, has submitted an unsolicited all-cash bid of $34.5 billion to acquire Google Chrome, the world’s most popular web browser. The bid, significantly higher than the company’s current valuation of $14 billion, underscores Perplexity’s aggressive strategy to expand its footprint in the browser market, leveraging Chrome’s massive user base of over three billion people. The offer arrives at a critical juncture for Google, which is facing mounting regulatory pressure over its alleged monopolistic practices in the search industry. Recently, a US court ruled that Google holds an unlawful monopoly in online search, with some legal experts suggesting that the forced divestiture of Chrome could be one of the remedies. Although Google has vowed to appeal the decision, Perplexity’s offer reflects the growing importance of web browsers in the AI search race. Perplexity’s plan to keep Chrome open and invest $3 billion Perplexity, which already develops an AI-powered browser named Comet, plans to keep Chrome’s underlying code, Chromium, open-source, thereby maintaining the browser’s integrity for developers and users alike. The startup also promises to invest $3 billion over the next two years to further enhance Chrome’s capabilities and continue its development. Importantly, Perplexity has pledged not to make any changes to the browser’s default search engine, which is currently Google Search, aiming to maintain stability for both users and advertisers. The deal is structured to avoid antitrust concerns, as Perplexity’s offer does not involve any equity component in the company itself. According to a term sheet reviewed by Reuters, Perplexity would also commit to retaining a substantial portion of Chrome’s existing team to ensure a smooth transition and continuity of service. Several unnamed investment funds have reportedly agreed to fully finance the deal, signalling strong backing for the bold proposal. Google’s response and legal hurdles ahead Despite Perplexity’s ambitious offer, it remains unclear whether Google will entertain the proposal. The tech giant, which has consistently resisted calls for Chrome’s sale, is expected to engage in a prolonged legal battle to protect its interests. Legal experts suggest that the antitrust case could take several years to resolve, with the possibility of the matter ultimately reaching the US Supreme Court. While Perplexity’s offer is likely a strategic move to ruffle Google’s feathers and make a play for the browser market, the stakes are high. A successful acquisition of Chrome could propel Perplexity into direct competition with some of the biggest names in AI, including OpenAI, which is also developing its own AI-powered browser. However, even if Google ultimately rejects the offer, Perplexity’s bold bid signals the growing prominence of web browsers in the next-generation AI landscape. (With inputs from agencies)

Recently, a US court ruled that Google holds an unlawful monopoly in online search, with some suggesting a forced divestiture of Chrome as a remedy. Although Google has vowed to appeal the decision, Perplexity’s offer reflects the growing importance of web browsers in the AI search race.

Perplexity AI makes bold $34.5 billion offer to acquire Google Chrome amid antitrust scrutiny

US President Donald Trump is weighing a lawsuit against Federal Reserve Chair Jerome Powell, accusing him of gross mismanagement in a multi-billion-dollar renovation of the central bank’s Washington headquarters. The move marks a new escalation in Trump’s pressure campaign on the Fed to cut interest rates, according to Reuters.<h2>White House flags renovation cost overruns</h2>White House spokeswoman Karoline Leavitt confirmed on August 12 that the administration is investigating the renovation of two historic Federal Reserve buildings. Officials allege poor oversight, inflated expenses, and unnecessary luxury additions have driven costs far above initial estimates.&nbsp;When the project began, the Fed expected it to cost $1.9 billion. Updated figures now put the budget at $2.4 billion, a nearly $500 million increase. The central bank says this is due to higher labour and materials costs, asbestos abatement, and other unforeseen construction challenges, as per Fed documents cited by Reuters.&nbsp;Trump personally toured the site last month, a rare presidential visit to the Fed, and repeated his accusations directly to Powell. He also used the meeting to push for rate cuts.<h2>Trump’s social media blast</h2>On Truth Social, Trump referred to Powell as “Jerome ‘Too Late’ Powell” and renewed his call for immediate rate cuts. He accused Powell of overseeing “a horrible, and grossly incompetent” construction job that ballooned into a “three billion dollar” project when it should have been a $50 million fix.“Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board,” Trump wrote. “I am considering allowing a major lawsuit against Powell to proceed.”

The White House has not confirmed which specific lawsuit Trump was referring to, but Bloomberg reports the statement appears linked to ongoing legal reviews of the renovation contracts.<h2>Legal and policy backdrop</h2>While presidents cannot remove a Fed chair over policy disagreements, per a recent Supreme Court opinion,Trump’s legal team appears to be exploring alternative channels, such as potential negligence or fraud claims tied to the construction. The dispute comes as Trump seeks aggressive rate cuts ahead of the Fed’s September 16–17 policy meeting. Market bets now suggest an 85% probability of a rate cut, according to Reuters, after data showed core US inflation edged higher in July but goods prices rose more slowly, tempering tariff-driven price pressures.&nbsp;Trump has argued that lower rates would reduce the federal government’s debt servicing costs, even as he insists the economy is strong thanks to his tax, trade, and immigration policies. The Federal Reserve’s headquarters renovation, initially set at $1.9 billion, aimed to modernise two historic Washington buildings while preserving architectural heritage. However, by 2025, the projected cost has surged to $2.4 billion. The Fed attributes this to market-driven labour and material price hikes, unexpected asbestos removal, and logistical challenges inherent in working with protected structures.&nbsp;Trump’s estimate of $50 million that reflects what he claims would have been sufficient for a “basic fix-up,” suggesting the bulk of the spending is excessive. His “$3 billion” figure, while not reflected in official Fed numbers, underscores his accusation of waste and mismanagement. These competing narratives form the core of the legal and political battle over the project’s legitimacy.&nbsp;(With inputs from the agencies)&nbsp;

Trump criticised Powell, calling for immediate rate cuts, and labelled the construction efforts as grossly incompetent. Although presidents cannot remove a Fed chair for policy disagreements, Trump legal team may pursue negligence or fraud claims related to the construction mismanagement.

US President Donald Trump is weighing a lawsuit against Federal Reserve Chair Jerome Powell, accusing him of gross mismanagement in a multi-billion-dollar renovation of the central bank’s Washington headquarters. The move marks a new escalation in Trump’s pressure campaign on the Fed to cut interest rates, according to Reuters. White House flags renovation cost overruns White House spokeswoman Karoline Leavitt confirmed on August 12 that the administration is investigating the renovation of two historic Federal Reserve buildings. Officials allege poor oversight, inflated expenses, and unnecessary luxury additions have driven costs far above initial estimates. When the project began, the Fed expected it to cost $1.9 billion. Updated figures now put the budget at $2.4 billion, a nearly $500 million increase. The central bank says this is due to higher labour and materials costs, asbestos abatement, and other unforeseen construction challenges, as per Fed documents cited by Reuters. Trump personally toured the site last month, a rare presidential visit to the Fed, and repeated his accusations directly to Powell. He also used the meeting to push for rate cuts. Trump’s social media blast On Truth Social, Trump referred to Powell as “Jerome ‘Too Late’ Powell” and renewed his call for immediate rate cuts. He accused Powell of overseeing “a horrible, and grossly incompetent” construction job that ballooned into a “three billion dollar” project when it should have been a $50 million fix. “Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board,” Trump wrote. “I am considering allowing a major lawsuit against Powell to proceed.”

President Trump is considering a lawsuit against Federal Reserve Chair Jerome Powell over alleged mismanagement of a costly renovation project for the Fed’s Washington headquarters.&nbsp;

Trump mulls lawsuit against Fed’s Powell over costly headquarters renovation

Japan's wholesale inflation continued to cool in July, marking the fourth consecutive month of slowing price growth, according to government data released on August 13. The Corporate Goods Price Index (CGPI), which tracks the prices that businesses charge one another for goods and services, rose by 2.6 per cent year-on-year, down from June’s 2.9 per cent increase. While this was above market expectations of 2.5 per cent, it signals that inflationary pressures from raw material costs are gradually dissipating.Despite the overall slowdown, food and agricultural goods prices continued to climb, pointing to a broader trend of price increases beyond just raw materials. Food and beverage prices jumped 4.2 per cent in the year to July, indicating persistent price pressures in the consumer goods sector. This has raised market speculation that the Bank of Japan (BOJ) may be forced to adjust its monetary policy, potentially hiking interest rates sooner than anticipated.<h2>Cooling PPI amid tariff pressures</h2>The Producer Price Index (PPI), a key measure of domestic inflation, rose by 2.6 per cent in July, a slightly higher-than-expected figure, but remained at its slowest pace in 11 months. This marks a significant deceleration from the 2.9 per cent increase recorded in June. The month-on-month growth stood at 0.2 per cent, in line with forecasts. Analysts attribute the moderation in PPI to a combination of factors, including lower demand, a slowdown in consumer spending, and the impact of higher US trade tariffs on Japanese manufacturers.Japan’s manufacturing sector has faced increased costs from overseas tariffs, particularly the 25 per cent duty on automobile imports imposed by the US. However, a recent trade deal between Japan and the US saw a reduction in tariffs on automobiles from 25 per cent to 15 per cent, providing some relief to local producers.<h2>Bank of Japan’s rate hike dilemma</h2>While Japan's central bank has expressed confidence that inflation will stabilise and hit its 2 per cent target, some economists warn that persistent price increases in food and agriculture may force the BOJ to take more decisive action. The BOJ raised interest rates to 0.5 per cent in January, marking the first hike in over a decade, as part of a broader effort to normalise its monetary policy. Governor Kazuo Ueda has indicated that further rate hikes will depend on sustained inflationary pressure, though he has also urged caution, pointing to one-off factors like raw material costs as the primary drivers of recent inflation. The central bank’s next moves will likely be dictated by the ongoing balance between inflation trends and the economic growth outlook. With both inflation and economic growth showing signs of slowing, the BOJ faces difficult decisions in the months ahead.&nbsp;(With inputs from agencies)

Despite the overall slowdown in Japan's inflation, food and agricultural goods prices continued to climb, pointing to a broader trend of price increases beyond just raw materials. Food and beverage prices jumped 4.2 per cent in the year to July.

Japan's wholesale inflation continued to cool in July, marking the fourth consecutive month of slowing price growth, according to government data released on August 13. The Corporate Goods Price Index (CGPI), which tracks the prices that businesses charge one another for goods and services, rose by 2.6 per cent year-on-year, down from June’s 2.9 per cent increase. While this was above market expectations of 2.5 per cent, it signals that inflationary pressures from raw material costs are gradually dissipating. Despite the overall slowdown, food and agricultural goods prices continued to climb, pointing to a broader trend of price increases beyond just raw materials. Food and beverage prices jumped 4.2 per cent in the year to July, indicating persistent price pressures in the consumer goods sector. This has raised market speculation that the Bank of Japan (BOJ) may be forced to adjust its monetary policy, potentially hiking interest rates sooner than anticipated. Cooling PPI amid tariff pressures The Producer Price Index (PPI), a key measure of domestic inflation, rose by 2.6 per cent in July, a slightly higher-than-expected figure, but remained at its slowest pace in 11 months. This marks a significant deceleration from the 2.9 per cent increase recorded in June. The month-on-month growth stood at 0.2 per cent, in line with forecasts. Analysts attribute the moderation in PPI to a combination of factors, including lower demand, a slowdown in consumer spending, and the impact of higher US trade tariffs on Japanese manufacturers. Japan’s manufacturing sector has faced increased costs from overseas tariffs, particularly the 25 per cent duty on automobile imports imposed by the US. However, a recent trade deal between Japan and the US saw a reduction in tariffs on automobiles from 25 per cent to 15 per cent, providing some relief to local producers. Bank of Japan’s rate hike dilemma While Japan's central bank has expressed confidence that inflation will stabilise and hit its 2 per cent target, some economists warn that persistent price increases in food and agriculture may force the BOJ to take more decisive action. The BOJ raised interest rates to 0.5 per cent in January, marking the first hike in over a decade, as part of a broader effort to normalise its monetary policy. Governor Kazuo Ueda has indicated that further rate hikes will depend on sustained inflationary pressure, though he has also urged caution, pointing to one-off factors like raw material costs as the primary drivers of recent inflation. The central bank’s next moves will likely be dictated by the ongoing balance between inflation trends and the economic growth outlook. With both inflation and economic growth showing signs of slowing, the BOJ faces difficult decisions in the months ahead. (With inputs from agencies)

Despite the overall slowdown in Japan's inflation, food and agricultural goods prices continued to climb, pointing to a broader trend of price increases beyond just raw materials. Food and beverage prices jumped 4.2 per cent in the year to July.

Japan's wholesale inflation slows, but food prices keep rising

US President Donald Trump has launched a fresh attack on Wall Street, this time targeting Goldman Sachs CEO David Solomon over the bank’s assessment of his tariff policies. In a post on his Truth Social account, quoted by Reuters, Trump claimed that tariffs have been a boon for the US economy, insisting they have brought in “trillions of dollars” without stoking inflation. He accused Solomon and his team of making “a bad prediction” on the economic effects of tariffs, and suggested the Goldman chief “focus on being a DJ” rather than running a major financial institution.<h2>The trigger: Goldman’s tariff analysis</h2>While Trump did not specify which research note he was referring to, Reuters reports that Goldman Sachs has consistently taken a bearish view on tariffs. In its latest note, chief economist Jan Hatzius said US consumers had absorbed 22 per cent of tariff costs through June, a figure that could rise to 67 per cent if recent levies continue on their current trajectory.&nbsp;Goldman has also warned that sweeping tariffs could weigh on global growth and push the US Federal Reserve to cut interest rates more aggressively than expected. Hatzius&nbsp;declined to comment when contacted by Reuters, and a Goldman Sachs spokesperson also offered no response to Trump’s remarks.<h2>Trump responds&nbsp;</h2>In his Truth Social post, Trump doubled down on his argument that the burden of tariffs falls largely on foreign companies and governments rather than US consumers.&nbsp;“It has been shown that, for the most part, consumers aren’t even paying these tariffs, it is mostly companies and governments, many of them foreign, picking up the tabs,” Trump wrote.&nbsp;

&nbsp;Since February 1, when Trump intensified his trade war by imposing levies on imports from Mexico, Canada, and China, at least 333 companies worldwide have reacted to tariffs in some way, according to a Reuters tracker.<h2>Tariffs: Economic weapon or consumer cost?</h2>Tariffs are taxes on imported goods, usually intended to protect domestic industries or influence trade terms. Their cost distribution depends on global supply chains, market demand, and pricing strategies.According to Reuters’ global tariff tracker, companies reported a combined financial hit of $13.6 billion to $15.2 billion between July 16 and August 8 for the full year from Trump’s tariffs.Economists remain divided:<ul><li>Trump’s view:&nbsp;Tariffs are filling US Treasury coffers, strengthening the stock market, and not causing inflation.</li><li>Goldman and others: The costs are being shared by businesses and consumers, and sustained tariffs could slow growth.</li></ul><h2>Broader corporate tension over tariffs</h2>Trump’s criticism of Goldman Sachs comes amid a broader pattern of presidential rebukes aimed at corporate leaders. He has previously criticised:<ul><li>JPMorgan Chase and Bank of America over alleged “debanking” of individuals.</li><li>Intel CEO Lip Bu-Tan over ties to Chinese firms.</li><li>Apple’s Tim Cook for manufacturing iPhones outside the US</li><li>Amazon for considering listing prices that reflect tariff costs (an idea the company later abandoned).</li><li>A senior JPMorgan Asset Management strategist told Reuters earlier this year that he had toned down his public comments on tariffs due to concerns about internal and external repercussions.</li></ul><h2>US economics backdrop</h2>The clash comes as new data shows US consumer prices rose moderately in July. According to Reuters, costs for services such as airline fares and tariff-sensitive goods like household furniture pushed a measure of underlying inflation to its largest six-month gain.&nbsp;Despite the uptick, markets expect the Federal Reserve to cut interest rates in September amid weakening labour market conditions. But economists warn that the inflationary effects of Trump’s tariffs may still be working through the system, especially as firms sell off pre-tariff inventory.<h2>Political turmoil&nbsp;</h2>Reuters also notes that concerns about data quality are rising after staffing cuts and the suspension of data collection for parts of the Consumer Price Index in some areas. These concerns intensified following the firing of BLS chief Erika McEntarfer earlier this month after weak job growth data in July.&nbsp;Trump has nominated E.J. Antoni, a Heritage Foundation economist and critic of the BLS, to lead the statistics agency. Antoni previously contributed to “Project 2025,” a conservative plan to overhaul the US federal government.&nbsp;(With inputs from the agencies)&nbsp;&nbsp;

Trump argued that the tariff burden mostly falls on foreign companies rather than US consumers. Goldman Sachs analysis indicated that US consumers have absorbed a significant portion of tariff costs and warned that continued tariffs could slow growth

US President Donald Trump has launched a fresh attack on Wall Street, this time targeting Goldman Sachs CEO David Solomon over the bank’s assessment of his tariff policies. In a post on his Truth Social account, quoted by Reuters, Trump claimed that tariffs have been a boon for the US economy, insisting they have brought in “trillions of dollars” without stoking inflation. He accused Solomon and his team of making “a bad prediction” on the economic effects of tariffs, and suggested the Goldman chief “focus on being a DJ” rather than running a major financial institution. The trigger: Goldman’s tariff analysis While Trump did not specify which research note he was referring to, Reuters reports that Goldman Sachs has consistently taken a bearish view on tariffs. In its latest note, chief economist Jan Hatzius said US consumers had absorbed 22 per cent of tariff costs through June, a figure that could rise to 67 per cent if recent levies continue on their current trajectory. Goldman has also warned that sweeping tariffs could weigh on global growth and push the US Federal Reserve to cut interest rates more aggressively than expected. Hatzius declined to comment when contacted by Reuters, and a Goldman Sachs spokesperson also offered no response to Trump’s remarks. Trump responds In his Truth Social post, Trump doubled down on his argument that the burden of tariffs falls largely on foreign companies and governments rather than US consumers. “It has been shown that, for the most part, consumers aren’t even paying these tariffs, it is mostly companies and governments, many of them foreign, picking up the tabs,” Trump wrote.

President Trump criticised Goldman Sachs CEO David Solomon over the bank's negative assessment of his tariff policies, stating that tariffs had positively impacted the US economy.

Trump hits out at Goldman Sachs CEO over tariff research

Iran's Foreign Minister Seyed Abbas Araghchi said on Wednesday that Western governments falsely portray sanctions as a ‘bloodless alternative to war’. He accused the US of committing crimes against humanity. Citing a Lancet study, he said the US sanctions have unilaterally killed 500,000 people every year since 1970. He called the Western sanctions 'inhumane' and called for a collective effort between the sanctioned nations for a unified response.“Western regimes have long claimed that sanctions are a bloodless alternative to war. Reality check: New study by @TheLancet says unilateral sanctions, particularly by the US, may be as lethal as war. 500+k lives claimed annually since 1970s, mostly children and the elderly,” said Seyed Abbas Araghchi.

<blockquote class="twitter-tweet">Western regimes have long claimed that sanctions are a bloodless alternative to war. Reality check: New study by <a href="https://twitter.com/TheLancet?ref_src=twsrc%5Etfw">@TheLancet</a> says unilateral sanctions, particularly by the US, may be as lethal as war. 500+k lives claimed annually since 1970s, mostly children and the elderly.… <a href="https://t.co/02tIQiAFA5">pic.twitter.com/02tIQiAFA5</a>&mdash; Seyed Abbas Araghchi (@araghchi) <a href="https://twitter.com/araghchi/status/1955485536962957736?ref_src=twsrc%5Etfw">August 13, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

The Lancet study, funded by the Centre for Economic and Policy Research, conducted cross-national panel data analysis between age-specific mortality rates and 152 countries sanctioned between 1971 and 2021, applying a wide range of methods such as observational data, entropy balancing, Granger causality, event-study representations, and instrumental variables to form a causal relationship. The findings suggest that sanctions have similar impacts to war. It also suggests rethinking the foreign policy tools, highlighting the importance of exercising restraint in their use and seriously considering efforts to reform their design.Use of Economic sanctions has grown substantially, according to the Global Sanctions Database 25 per cent of all countries are subjected to sanctions either by the US or the EU or the UN between 2010-22, as compared to 8 per cent of 1970. As of August 2025, the US or the EU or the UN have sanctions over Brazil, Cuba, Iran, Venezuela, Russia and its oil buyers such as India and China, as well as Syria and Libya to some extent are under either sanctions or a heavy tariff burden. There are other kinds like the FATF blacklist, Shadow Fleet, Terrorism, and Human rights related sanctions, which encompass a complex web of global sanctions.

Iran slams US sanctions as ‘crimes against humanity’,  citing a Lancet Study Seyed Abbas Araghchi accused Western nations' sanction tactics of claiming countless lives every year since 1970. 

Iran's Foreign Minister Seyed Abbas Araghchi said on Wednesday that Western governments falsely portray sanctions as a ‘bloodless alternative to war’. He accused the US of committing crimes against humanity. Citing a Lancet study, he said the US sanctions have unilaterally killed 500,000 people every year since 1970. He called the Western sanctions 'inhumane' and called for a collective effort between the sanctioned nations for a unified response. “Western regimes have long claimed that sanctions are a bloodless alternative to war. Reality check: New study by @TheLancet says unilateral sanctions, particularly by the US, may be as lethal as war. 500+k lives claimed annually since 1970s, mostly children and the elderly,” said Seyed Abbas Araghchi.

Iran slams US sanctions as ‘crimes against humanity’, &nbsp;citing a Lancet study Seyed Abbas Araghchi accused Western nations' sanction tactics of claiming countless lives every year since 1970.&nbsp;

'As deadly as war’: Iran says US sanctions kill 500,000 people a year, mostly children

The US dollar weakened on Wednesday after a softer-than-expected inflation reading reinforced market expectations that the Federal Reserve could cut interest rates as early as September. According to Reuters, President Donald Trump’s escalating clashes with US institutions, including the Fed, further weighed on the currency’s sentiment.<h2>Inflation data fuels rate cut bets</h2>Data from the US Labor Department showed consumer prices rose only marginally in July, in line with forecasts. As per Reuters, the impact of Trump’s sweeping tariffs on goods prices has so far been limited, with the July CPI report showing little evidence of strong tariff pass-through to consumers. The muted reading encouraged traders to price in a 98 per cent chance of a Fed rate cut next month, pulling the greenback lower.&nbsp;The dollar index stood at 98.08, after sliding about 0.5 per cent in the previous session. Against the yen, the dollar eased 0.05 per cent to 147.76, while the euro held steady at $1.1676 after a 0.5 per cent gain on Tuesday. US Treasury yields also fell on the heightened rate cut expectations, with the two-year yield at 3.7371 per cent and the benchmark 10-year yield hovering at 4.2965 per cent, according to Reuters.<h2>Trump’s pushback against the Fed</h2>Market confidence in the dollar was further eroded by President Trump’s renewed attempts to challenge the Fed’s independence. Reuters reported that White House spokeswoman Karoline Leavitt said Trump was considering legal action against Fed Chair Jerome Powell over his management of renovation works at the central bank’s Washington headquarters.&nbsp;Trump has repeatedly criticised Powell for not cutting rates sooner and also targeted Goldman Sachs CEO David Solomon, accusing the Wall Street bank of being wrong about the economic impact of US tariffs.<h2>Pound gains despite weak jobs market</h2>In the UK, the pound edged 0.03 per cent higher to $1.3504, supported by steady wage growth despite a weakening labour market. According to Reuters, Britain’s latest jobs data underscored why the Bank of England remains cautious about easing policy, with analysts at Pepperstone forecasting the next rate cut in November if economic conditions warrant.<h2>Asia-Pacific currencies mixed after RBA cut</h2>In the Asia-Pacific region, the Australian dollar slipped 0.05 per cent to $0.6526, while the New Zealand dollar fell 0.03 per cent to $0.5953. The Reserve Bank of Australia, as per Reuters, lowered interest rates on Tuesday as expected and signalled that further policy easing could be needed to support growth and meet inflation targets.&nbsp;(With inputs from the agencies)&nbsp;

Trump conflicts with institutions, particularly the Fed, intensified market concerns. The dollar index fell to 98.08, while the yen and euro remained stable. Meanwhile, the pound rose slightly due to steady wage growth amid a weakening job market. 

The US dollar weakened on Wednesday after a softer-than-expected inflation reading reinforced market expectations that the Federal Reserve could cut interest rates as early as September. According to Reuters, President Donald Trump’s escalating clashes with US institutions, including the Fed, further weighed on the currency’s sentiment. Inflation data fuels rate cut bets Data from the US Labor Department showed consumer prices rose only marginally in July, in line with forecasts. As per Reuters, the impact of Trump’s sweeping tariffs on goods prices has so far been limited, with the July CPI report showing little evidence of strong tariff pass-through to consumers. The muted reading encouraged traders to price in a 98 per cent chance of a Fed rate cut next month, pulling the greenback lower. The dollar index stood at 98.08, after sliding about 0.5 per cent in the previous session. Against the yen, the dollar eased 0.05 per cent to 147.76, while the euro held steady at $1.1676 after a 0.5 per cent gain on Tuesday. US Treasury yields also fell on the heightened rate cut expectations, with the two-year yield at 3.7371 per cent and the benchmark 10-year yield hovering at 4.2965 per cent, according to Reuters. Trump’s pushback against the Fed Market confidence in the dollar was further eroded by President Trump’s renewed attempts to challenge the Fed’s independence. Reuters reported that White House spokeswoman Karoline Leavitt said Trump was considering legal action against Fed Chair Jerome Powell over his management of renovation works at the central bank’s Washington headquarters. Trump has repeatedly criticised Powell for not cutting rates sooner and also targeted Goldman Sachs CEO David Solomon, accusing the Wall Street bank of being wrong about the economic impact of US tariffs. Pound gains despite weak jobs market In the UK, the pound edged 0.03 per cent higher to $1.3504, supported by steady wage growth despite a weakening labour market. According to Reuters, Britain’s latest jobs data underscored why the Bank of England remains cautious about easing policy, with analysts at Pepperstone forecasting the next rate cut in November if economic conditions warrant. Asia-Pacific currencies mixed after RBA cut In the Asia-Pacific region, the Australian dollar slipped 0.05 per cent to $0.6526, while the New Zealand dollar fell 0.03 per cent to $0.5953. The Reserve Bank of Australia, as per Reuters, lowered interest rates on Tuesday as expected and signalled that further policy easing could be needed to support growth and meet inflation targets. (With inputs from the agencies)

The US dollar declined on Wednesday following softer inflation data, increasing expectations of a Federal Reserve rate cut as early as September.

Dollar slips as Fed rate cut bets grow amid Trump–Fed tensions

In a bold move, Perplexity AI offered Google $34.5 billion on Tuesday to acquire its widely used Chrome web browser. The tech giant could be compelled to sell this asset as part of ongoing antitrust proceedings. The offered sum, outlined in a letter of intent, is nearly double the value of Perplexity's own estimate of $18 billion from its most recent funding round.&nbsp;"This proposal is designed to satisfy an antitrust remedy in the highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection," Perplexity chief executive Aravind Srinivas said, AFP reported.&nbsp;Google is currently awaiting US District Court Judge Amit Mehta's ruling on potential "remedies" after last year's landmark judgment that found the tech giant company maintaining an illegal monopoly in online search.<h3>What's Google's official response?</h3>US government attorneys have pushed for Google to divest the Chrome browser, warning that the rise of artificial intelligence could further strengthen its dominance as the internet's dominant gateway.&nbsp;Meanwhile, Google has requested that the court reject the divestment, with a decision from Mehta expected by the end of the month. But Google has not issued an official response to the bid from Perplexity AI. However, analysts at Baird Equity Research dismissed the proposal, stating that it severely undervalues Chrome and "should not be taken seriously."&nbsp;One of the Baird analysts theorised that the AI startup could be trying to spark others to bid or "influence the pending decision" in the antitrust case, as it already has a browser that competes with Chrome.&nbsp;"Either way, we believe Perplexity would view an independent Chrome -- or one no longer affiliated with Google -- as an advantage as it attempts to take browser share," Baird analysts told investors.&nbsp;Also read: <a href="https://www.wionews.com/technology/perplexity-denies-cloudflare-accusation-of-secretly-scraping-restricted-websites-1754488233534">Perplexity denies Cloudflare accusation of secretly scraping restricted websites</a>

Dismissing the proposal, analysts at Baird Equity Research said that it severely undervalues Chrome and "should not be taken seriously."

In a bold move, Perplexity AI offered Google $34.5 billion on Tuesday to acquire its widely used Chrome web browser. The tech giant could be compelled to sell this asset as part of ongoing antitrust proceedings. The offered sum, outlined in a letter of intent, is nearly double the value of Perplexity's own estimate of $18 billion from its most recent funding round. "This proposal is designed to satisfy an antitrust remedy in the highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection," Perplexity chief executive Aravind Srinivas said, AFP reported. Google is currently awaiting US District Court Judge Amit Mehta's ruling on potential "remedies" after last year's landmark judgment that found the tech giant company maintaining an illegal monopoly in online search. What's Google's official response? US government attorneys have pushed for Google to divest the Chrome browser, warning that the rise of artificial intelligence could further strengthen its dominance as the internet's dominant gateway. Meanwhile, Google has requested that the court reject the divestment, with a decision from Mehta expected by the end of the month. But Google has not issued an official response to the bid from Perplexity AI. However, analysts at Baird Equity Research dismissed the proposal, stating that it severely undervalues Chrome and "should not be taken seriously." One of the Baird analysts theorised that the AI startup could be trying to spark others to bid or "influence the pending decision" in the antitrust case, as it already has a browser that competes with Chrome. "Either way, we believe Perplexity would view an independent Chrome -- or one no longer affiliated with Google -- as an advantage as it attempts to take browser share," Baird analysts told investors. Also read: Perplexity denies Cloudflare accusation of secretly scraping restricted websites

Dismissing the proposal, analysts at Baird Equity Research said that it severely undervalues Chrome and "should not be taken seriously."

Google Chrome for sale? Perplexity AI makes bold $34.5B offer to buy it amid antitrust row

The US government’s budget deficit climbed by nearly 20 per cent in July to $291 billion, driven by rising government outlays that outpaced an increase in revenue, despite a surge in tariff collections from US President Donald Trump’s import taxes. According to Treasury Department data released on August 12, the deficit for July was up 19 per cent, or $47 billion, from the same month last year. Receipts totalled $338 billion, marking a modest 2 per cent growth, or an additional $8 billion. However, government outlays rose by a far larger 10 per cent, totalling $630 billion, a record high for July.<h2>Trump’s tariff revenues soar, but not enough to offset spending</h2>A key factor in the government's revenue boost was a dramatic rise in customs duty collections. July’s tariff revenue jumped 273 per cent, or $21 billion, compared to the same period last year, reaching approximately $27.7 billion. The increase is attributed to higher tariffs imposed on imports by President Trump, particularly following his trade policies with China and other countries.Despite the surge in tariff income, US spending continues to grow faster than revenues. Much of the increase in outlays is linked to a rise in interest payments on public debt, as well as higher government healthcare costs and inflation-driven Social Security payments. Over the first 10 months of the fiscal year, the deficit has reached $1.629 trillion, a 7 per cent increase from the previous year. While tariff revenues have helped to offset some of the rising costs, economists note that the overall impact on reducing the deficit remains uncertain.&nbsp;<h2>Trade negotiations and future tariff revenue</h2>The growing tariff income is being closely watched as part of the Trump administration’s broader plan to reduce the deficit. Treasury Secretary Scott Bessent has stated that the administration remains focused on bringing down the deficit, even as the US gross national debt approaches $37 trillion.In related news, US President Trump extended his trade truce with China for another 90 days, maintaining the 30 per cent tariffs on Chinese imports as a bargaining chip. While negotiations continue, experts speculate that the US could see more tariff revenue as companies deplete their inventories and begin importing more goods, triggering additional duties. However, many are sceptical about the long-term effectiveness of the tariff strategy, with concerns that higher costs for consumers and reduced trade growth could ultimately offset any gains in federal revenue.

A key factor in the government's revenue boost was a dramatic rise in customs duty collections. July’s tariff revenue jumped 273 per cent, or $21 billion, compared to the same period last year, reaching approximately $27.7 billion. 

The US government’s budget deficit climbed by nearly 20 per cent in July to $291 billion, driven by rising government outlays that outpaced an increase in revenue, despite a surge in tariff collections from US President Donald Trump’s import taxes. According to Treasury Department data released on August 12, the deficit for July was up 19 per cent, or $47 billion, from the same month last year. Receipts totalled $338 billion, marking a modest 2 per cent growth, or an additional $8 billion. However, government outlays rose by a far larger 10 per cent, totalling $630 billion, a record high for July. Trump’s tariff revenues soar, but not enough to offset spending A key factor in the government's revenue boost was a dramatic rise in customs duty collections. July’s tariff revenue jumped 273 per cent, or $21 billion, compared to the same period last year, reaching approximately $27.7 billion. The increase is attributed to higher tariffs imposed on imports by President Trump, particularly following his trade policies with China and other countries. Despite the surge in tariff income, US spending continues to grow faster than revenues. Much of the increase in outlays is linked to a rise in interest payments on public debt, as well as higher government healthcare costs and inflation-driven Social Security payments. Over the first 10 months of the fiscal year, the deficit has reached $1.629 trillion, a 7 per cent increase from the previous year. While tariff revenues have helped to offset some of the rising costs, economists note that the overall impact on reducing the deficit remains uncertain. Trade negotiations and future tariff revenue The growing tariff income is being closely watched as part of the Trump administration’s broader plan to reduce the deficit. Treasury Secretary Scott Bessent has stated that the administration remains focused on bringing down the deficit, even as the US gross national debt approaches $37 trillion. In related news, US President Trump extended his trade truce with China for another 90 days, maintaining the 30 per cent tariffs on Chinese imports as a bargaining chip. While negotiations continue, experts speculate that the US could see more tariff revenue as companies deplete their inventories and begin importing more goods, triggering additional duties. However, many are sceptical about the long-term effectiveness of the tariff strategy, with concerns that higher costs for consumers and reduced trade growth could ultimately offset any gains in federal revenue.

A key factor in the government's revenue boost was a dramatic rise in customs duty collections. July’s tariff revenue jumped 273 per cent, or $21 billion, compared to the same period last year, reaching approximately $27.7 billion.&nbsp;

US budget deficit surges 20% in July despite record tariff revenues

As traders look ahead to a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin on Friday, a diplomatic encounter that could reshape the outlook for sanctions on Russian crude, oil markets were steady. West Texas Intermediate (WTI) traded near $63 a barrel after slipping 1.2 per cent in the previous session, while Brent closed just below $66, according to Bloomberg. The drop came in thin trading, with investors waiting for geopolitical cues from the upcoming Alaska summit, where Ukraine’s conflict is expected to dominate the agenda.<h2>Why the Trump–Putin talks matter for oil?</h2>An easing of US sanctions on OPEC+ member Russia could reportedly release more supply into the market, a development that traders are watching closely. Any such move could add to an already bearish supply picture, as global output is ramping up despite concerns about slowing demand due to US tariff pressures on the world economy.&nbsp;The US Department of Energy (DOE), as reported by Bloomberg, has revised up its 2025 global oversupply forecast to 1.7 million barrels per day. The International Energy Agency (IEA) will release its own estimates later on Wednesday. OPEC, meanwhile, has kept its more bullish view, predicting a tighter oil market next year than previously projected.<h2>US stockpiles rise, demand season nears its end</h2>Whereas, data from the American Petroleum Institute (API), cited by Reuters, showed US crude inventories rising by 1.52 million barrels last week. Gasoline stocks fell, but distillate inventories used for diesel and heating oil gained slightly. Analysts polled by Reuters expect the US Energy Information Administration (EIA) to show a smaller crude drawdown of about 300,000 barrels in its official data later Wednesday, suggesting that the summer driving season may have already peaked. This seasonal demand window usually runs from Memorial Day in late May to Labour Day in early September.&nbsp;According to Reuters, the EIA projects US crude output will hit a record 13.41 million barrels per day in 2025, thanks to higher well productivity. However, it expects a decline in 2026 as lower oil prices prompt reduced drilling. OPEC’s latest monthly report, as quoted by Reuters, raises its 2026 global demand growth forecast to 1.38 million barrels per day, an increase of 100,000 bpd from its previous projection, while keeping its 2025 demand estimate unchanged.&nbsp;The White House, as reported by Reuters, has already signalled that a quick Ukraine ceasefire is unlikely, meaning sanctions relief for Russia may not be imminent. Still, ANZ senior commodity strategist Daniel Hynes told Reuters that traders appear less convinced about the possibility of fresh sanctions, even though President Trump has downplayed expectations of a breakthrough.<h2>Oil market snapshot</h2>As per Reuters, Brent crude, the global benchmark, inched up to $66.15 a barrel, a modest gain of three cents in early trade. The move comes after a 0.8 per cent drop in the previous session, reflecting market hesitation ahead of the Trump–Putin meeting in Alaska. Whereas, US WTI crude slipped slightly by three cents to $63.14 a barrel, as per Reuters. While the change was marginal, it followed a sharper 1.2 per cent decline a day earlier. Oversupply concerns and a build-up in domestic stockpiles are keeping prices under pressure.&nbsp;API figures, as cited by Reuters, show US crude inventories rising by 1.52 million barrels last week. This suggests refiners may be cutting back runs as the summer demand season winds down. Gasoline stocks fell, but distillate inventories posted a small gain. Bloomberg reports that the DOE now expects a much larger global surplus in 2025, 1.7 million barrels per day, compared to earlier projections. Without production cuts from OPEC+, this could weigh heavily on prices.&nbsp;Reuters cites the EIA’s projection that US crude production will reach a record 13.41 million barrels per day in 2025, boosted by well productivity gains, before easing in 2026. OPEC’s latest monthly report, as quoted by Reuters, raises its 2026 global oil demand growth forecast to 1.38 million barrels per day, driven by Asia and emerging markets, while demand growth in mature economies slows.

<figure class="table"><table><tbody><tr><td>Indicator</td><td>Latest Level</td><td>Change from Previous Session</td></tr><tr><td>Brent crude</td><td>$66.15/bbl</td><td>+$0.03 (+0.05%)</td></tr><tr><td>WTI crude</td><td>$63.14/bbl</td><td>-$0.03 (-0.05%)</td></tr><tr><td>US crude stocks</td><td>+1.52 million barrels</td><td>Week ended Aug 8</td></tr><tr><td>DOE oversupply forecast (2025)</td><td>1.7 million bpd</td><td>Up from earlier estimate</td></tr><tr><td>US crude output forecast (2025)</td><td>13.41 million bpd</td><td>Record high</td></tr><tr><td>OPEC global demand forecast (2026)</td><td>+1.38 million bpd</td><td>+100,000 bpd vs earlier</td></tr></tbody></table></figure>(Source: Reuters, Bloomberg)&nbsp;

<h2>Possible price paths after the Trump–Putin meeting</h2>If Trump and Putin agree on steps to lift or soften sanctions on Russian crude, more supply could flow into the global market. According to Bloomberg, this could push Brent prices back toward the low $60s. If there is no major breakthrough, prices may stay range-bound. As per Reuters analysts, Brent could hold between $63 and $66 as traders continue to price in the current sanctions regime. If fresh sanctions are imposed, further restricting Russian crude exports, the resulting supply squeeze could push Brent above $70 per barrel, especially if OPEC+ output remains steady, according to&nbsp;Reuters. (With inputs from the agencies)&nbsp; &nbsp;

Traders are closely monitoring an imminent meeting between US President Donald Trump and Russian President Vladimir Putin, which could influence sanctions on Russian crude. US crude inventories grew by 1.52 million barrels, hinting at reduced refinery activity as the summer season ends. 

As traders look ahead to a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin on Friday, a diplomatic encounter that could reshape the outlook for sanctions on Russian crude, oil markets were steady. West Texas Intermediate (WTI) traded near $63 a barrel after slipping 1.2 per cent in the previous session, while Brent closed just below $66, according to Bloomberg. The drop came in thin trading, with investors waiting for geopolitical cues from the upcoming Alaska summit, where Ukraine’s conflict is expected to dominate the agenda. Why the Trump–Putin talks matter for oil? An easing of US sanctions on OPEC+ member Russia could reportedly release more supply into the market, a development that traders are watching closely. Any such move could add to an already bearish supply picture, as global output is ramping up despite concerns about slowing demand due to US tariff pressures on the world economy. The US Department of Energy (DOE), as reported by Bloomberg, has revised up its 2025 global oversupply forecast to 1.7 million barrels per day. The International Energy Agency (IEA) will release its own estimates later on Wednesday. OPEC, meanwhile, has kept its more bullish view, predicting a tighter oil market next year than previously projected. US stockpiles rise, demand season nears its end Whereas, data from the American Petroleum Institute (API), cited by Reuters, showed US crude inventories rising by 1.52 million barrels last week. Gasoline stocks fell, but distillate inventories used for diesel and heating oil gained slightly. Analysts polled by Reuters expect the US Energy Information Administration (EIA) to show a smaller crude drawdown of about 300,000 barrels in its official data later Wednesday, suggesting that the summer driving season may have already peaked. This seasonal demand window usually runs from Memorial Day in late May to Labour Day in early September. According to Reuters, the EIA projects US crude output will hit a record 13.41 million barrels per day in 2025, thanks to higher well productivity. However, it expects a decline in 2026 as lower oil prices prompt reduced drilling. OPEC’s latest monthly report, as quoted by Reuters, raises its 2026 global demand growth forecast to 1.38 million barrels per day, an increase of 100,000 bpd from its previous projection, while keeping its 2025 demand estimate unchanged. The White House, as reported by Reuters, has already signalled that a quick Ukraine ceasefire is unlikely, meaning sanctions relief for Russia may not be imminent. Still, ANZ senior commodity strategist Daniel Hynes told Reuters that traders appear less convinced about the possibility of fresh sanctions, even though President Trump has downplayed expectations of a breakthrough. Oil market snapshot As per Reuters, Brent crude, the global benchmark, inched up to $66.15 a barrel, a modest gain of three cents in early trade. The move comes after a 0.8 per cent drop in the previous session, reflecting market hesitation ahead of the Trump–Putin meeting in Alaska. Whereas, US WTI crude slipped slightly by three cents to $63.14 a barrel, as per Reuters. While the change was marginal, it followed a sharper 1.2 per cent decline a day earlier. Oversupply concerns and a build-up in domestic stockpiles are keeping prices under pressure. API figures, as cited by Reuters, show US crude inventories rising by 1.52 million barrels last week. This suggests refiners may be cutting back runs as the summer demand season winds down. Gasoline stocks fell, but distillate inventories posted a small gain. Bloomberg reports that the DOE now expects a much larger global surplus in 2025, 1.7 million barrels per day, compared to earlier projections. Without production cuts from OPEC+, this could weigh heavily on prices. Reuters cites the EIA’s projection that US crude production will reach a record 13.41 million barrels per day in 2025, boosted by well productivity gains, before easing in 2026. OPEC’s latest monthly report, as quoted by Reuters, raises its 2026 global oil demand growth forecast to 1.38 million barrels per day, driven by Asia and emerging markets, while demand growth in mature economies slows.

Oil prices remained stable, with WTI near $63 and Brent just under $66. An easing of sanctions could increase supply, impacting an already bearish outlook as global production rises amid dwindling demand.

Oil steadies as Trump–Putin meeting looms over Ukraine conflict and sanctions

Inflation is a key parameter to measure the economic health of a country. While moderate inflation is normal but high inflation rates destabilise markets, decrease purchasing power and push millions into poverty. Here are the top 10 countries with the highest inflation rates

Inflation is a key parameter to measure the economic health of a country. While moderate inflation is normal but high inflation rates destabilise markets, decrease purchasing power and push millions into poverty. Here are the top 10 countries with the highest inflation rates

Global price crisis- Top 10 countries with highest inflation rates in the world

Italy’s government, led by Prime Minister Giorgia Meloni, is considering new measures to limit Chinese ownership in key Italian companies, particularly those in strategic sectors such as energy, technology, and infrastructure. This move aims to protect national security and strengthen Italy’s geopolitical standing, especially in the face of growing tensions between the US and China. According to a report by Reuters, the government’s focus is on firms like tiremaker Pirelli, where China’s Sinochem International Corporation holds a 37 per cent stake. The government is exploring options that would pressure Sinochem to sell its stake, as the company’s involvement with Pirelli could hinder the firm’s access to US markets due to security concerns over Chinese-controlled technology.<h2>Strategic sectors under scrutiny</h2>The Italian government’s initiative is part of a broader effort to reassess foreign investments in critical industries. The presence of Chinese investors in strategic sectors, such as Italy’s energy grids and power plants, is causing concern. For example, the Chinese state-owned State Grid Corporation of China holds a 35 per cent stake in CDP Reti, which controls Italy’s energy grids, and Chinese influence in power plant maker Ansaldo Energia is still felt despite Shanghai Electric reducing its stake. Meloni's government has already invoked the “golden power” rule, a legal mechanism that enables the state to intervene in foreign investments in strategic sectors.<h2>Geopolitical tensions and economic considerations</h2>The move also highlights the delicate balancing act Italy faces in its relations with both the US and China. Washington has already raised concerns about Pirelli’s cyber sensors, fearing potential data risks, and warned that Chinese-controlled companies could face restrictions in the US market. However, any aggressive action against Chinese investments could strain Italy’s relationship with one of its largest trading partners, particularly after the country exited China’s Belt and Road Initiative in 2023. Despite this, Meloni’s government has been cautious, seeking to avoid upsetting China while simultaneously aligning with US interests.This geopolitical shift underscores Europe’s growing wariness of Chinese influence, particularly in sectors that could affect national security. While the EU has welcomed Chinese investment in the past, it has become more selective, steering Chinese capital away from critical infrastructure and towards sectors like electric vehicles and renewable energy that align more closely with European economic priorities.&nbsp;(With inputs from agencies)

The Italian government’s move highlights the delicate balancing act Italy faces in its relations with both the US and China. Washington has already raised concerns about Pirelli’s cyber sensors, fearing potential data risks, and warned that Chinese firms could face restrictions in the US.

Italy’s government, led by Prime Minister Giorgia Meloni, is considering new measures to limit Chinese ownership in key Italian companies, particularly those in strategic sectors such as energy, technology, and infrastructure. This move aims to protect national security and strengthen Italy’s geopolitical standing, especially in the face of growing tensions between the US and China. According to a report by Reuters, the government’s focus is on firms like tiremaker Pirelli, where China’s Sinochem International Corporation holds a 37 per cent stake. The government is exploring options that would pressure Sinochem to sell its stake, as the company’s involvement with Pirelli could hinder the firm’s access to US markets due to security concerns over Chinese-controlled technology. Strategic sectors under scrutiny The Italian government’s initiative is part of a broader effort to reassess foreign investments in critical industries. The presence of Chinese investors in strategic sectors, such as Italy’s energy grids and power plants, is causing concern. For example, the Chinese state-owned State Grid Corporation of China holds a 35 per cent stake in CDP Reti, which controls Italy’s energy grids, and Chinese influence in power plant maker Ansaldo Energia is still felt despite Shanghai Electric reducing its stake. Meloni's government has already invoked the “golden power” rule, a legal mechanism that enables the state to intervene in foreign investments in strategic sectors. Geopolitical tensions and economic considerations The move also highlights the delicate balancing act Italy faces in its relations with both the US and China. Washington has already raised concerns about Pirelli’s cyber sensors, fearing potential data risks, and warned that Chinese-controlled companies could face restrictions in the US market. However, any aggressive action against Chinese investments could strain Italy’s relationship with one of its largest trading partners, particularly after the country exited China’s Belt and Road Initiative in 2023. Despite this, Meloni’s government has been cautious, seeking to avoid upsetting China while simultaneously aligning with US interests. This geopolitical shift underscores Europe’s growing wariness of Chinese influence, particularly in sectors that could affect national security. While the EU has welcomed Chinese investment in the past, it has become more selective, steering Chinese capital away from critical infrastructure and towards sectors like electric vehicles and renewable energy that align more closely with European economic priorities. (With inputs from agencies)

The Italian government’s move highlights the delicate balancing act Italy faces in its relations with both the US and China. Washington has already raised concerns about Pirelli’s cyber sensors, fearing potential data risks, and warned that Chinese firms could face restrictions in the US.

Italy seeks to curb Chinese influence in strategic companies

The UK job market continues to cool, with recent figures showing a slowdown in hiring and wage growth, suggesting the impact of higher business taxes and the National Living Wage increase is beginning to settle. The Office for National Statistics (ONS) revealed that the number of people on payrolls fell by 8,000 between June and July, the smallest decline since January. Economists had anticipated a larger drop of 20,000. The unemployment rate remained steady at 4.7 per cent, a four-year high, while job vacancies across the economy dropped by 44,000, marking the 37th consecutive month of decline.<h2>Higher employment costs, slower wage growth</h2>The cooling labour market followed significant changes in April, when the government raised payroll taxes for businesses and increased the national living wage from £11.44 ($15.39) to £12.21 ($16.42) per hour. These moves, alongside a rise in employer national insurance contributions, have increased operational costs for businesses, particularly in sectors such as retail and hospitality. While overall wage growth remained steady at 5 per cent, the rate of growth in private sector wages slowed to 4.8 per cent, the weakest increase since January 2022.The Bank of England is closely monitoring these trends, as wage growth is an important indicator of inflationary pressures. Despite the slowdown in earnings, the Bank’s Monetary Policy Committee recently voted to cut interest rates to 4 per cent, with further cuts expected as inflation continues to ease from its peak in 2022.<h2>Modest outlook amid cooling market</h2>Despite the challenges, some experts are seeing signs of stability. Economists noted that the modest decline in payrolls suggests that the worst impacts of tax hikes and wage increases may be passing. However, the falling number of vacancies, now at their lowest point since April 2021, indicates ongoing caution among employers. Retail and hospitality businesses, facing higher labour costs, are also adjusting their hiring strategies, with a shift towards hiring more experienced workers.While some others acknowledged the positive aspects of the data and emphasised the need for further work to reduce the high unemployment rate. Meanwhile, opposition figures criticised the government’s tax policy, blaming it for constraining business growth.&nbsp;(With inputs from agencies)

Economists had anticipated a larger drop of 20,000. The unemployment rate remained steady at 4.7 per cent, a four-year high, while job vacancies across the economy dropped by 44,000, marking the 37th consecutive month of decline.

The UK job market continues to cool, with recent figures showing a slowdown in hiring and wage growth, suggesting the impact of higher business taxes and the National Living Wage increase is beginning to settle. The Office for National Statistics (ONS) revealed that the number of people on payrolls fell by 8,000 between June and July, the smallest decline since January. Economists had anticipated a larger drop of 20,000. The unemployment rate remained steady at 4.7 per cent, a four-year high, while job vacancies across the economy dropped by 44,000, marking the 37th consecutive month of decline. Higher employment costs, slower wage growth The cooling labour market followed significant changes in April, when the government raised payroll taxes for businesses and increased the national living wage from £11.44 ($15.39) to £12.21 ($16.42) per hour. These moves, alongside a rise in employer national insurance contributions, have increased operational costs for businesses, particularly in sectors such as retail and hospitality. While overall wage growth remained steady at 5 per cent, the rate of growth in private sector wages slowed to 4.8 per cent, the weakest increase since January 2022. The Bank of England is closely monitoring these trends, as wage growth is an important indicator of inflationary pressures. Despite the slowdown in earnings, the Bank’s Monetary Policy Committee recently voted to cut interest rates to 4 per cent, with further cuts expected as inflation continues to ease from its peak in 2022. Modest outlook amid cooling market Despite the challenges, some experts are seeing signs of stability. Economists noted that the modest decline in payrolls suggests that the worst impacts of tax hikes and wage increases may be passing. However, the falling number of vacancies, now at their lowest point since April 2021, indicates ongoing caution among employers. Retail and hospitality businesses, facing higher labour costs, are also adjusting their hiring strategies, with a shift towards hiring more experienced workers. While some others acknowledged the positive aspects of the data and emphasised the need for further work to reduce the high unemployment rate. Meanwhile, opposition figures criticised the government’s tax policy, blaming it for constraining business growth. (With inputs from agencies)

Economists had anticipated a larger drop of 20,000. The unemployment rate remained steady at 4.7 per cent, a four-year high, while job vacancies across the economy dropped by 44,000, marking the 37th consecutive month of decline.

UK job market shows signs of easing as vacancies and payrolls fall

US consumer prices are expected to have increased only marginally in July, but rising costs for tariff-hit goods such as household furniture and apparel could push underlying inflation to its largest gain in six months. According to Reuters, the Labour Department’s Consumer Price Index (CPI) data which is due on Tuesday, comes amid mounting concerns over the reliability of official inflation and jobs statistics. Budget and staffing cuts at the Bureau of Labor Statistics (BLS) have forced the suspension of price collection in parts of the country, with missing data now filled in using statistical models.<h2>Tariffs, deportations, and price pressures</h2>The Reuters poll of economists shows the CPI likely rose 0.2 per cent in July, easing from June’s 0.3 per cent increase. Falling gasoline prices likely offset some of the gains from higher food costs. Analysts say labour shortages in agriculture,&nbsp;driven by President Donald Trump’s stepped-up deportations of undocumented migrants and import tariffs are keeping food prices elevated.&nbsp;Over the past 12 months, the CPI is forecast to have risen 2.8 per cent, compared with 2.7 per cent in June. Stripping out food and energy, the so-called core CPI is expected to have climbed 0.3 per cent month-on-month, the sharpest rise since January, Jason Pride, chief of investment strategy at Glenmede, told Reuters that consumers have so far absorbed about one-third of the tariff burden. But as pre-tariff inventories run down, companies may pass more costs onto households in the coming months.<h2>Fed rate cut speculation builds</h2>The Federal Reserve uses different inflation measures for its 2 per cent target. July’s CPI reading, if in line with forecasts, is unlikely to derail market expectations that the US central bank could resume cutting interest rates in September, after holding the benchmark rate at 4.25–4.50 per cent for five consecutive meetings.<h2>Data integrity under scrutiny</h2>Concerns over data quality intensified after Trump fired BLS Commissioner Erika McEntarfer earlier this month, following a dismal July jobs report that showed stall-speed employment growth and large downward revisions to earlier payroll data.&nbsp;The BLS has now fully halted CPI data collection in one city each in Nebraska, Utah, and New York, and suspended 15 per cent of sampling in other regions. Missing prices are increasingly filled through “different cell imputation," where data from other geographical areas is substituted,&nbsp;rather than “home cell” estimates from the same location.&nbsp;The share of CPI data based on such imputations surged to 35 per cent in June from just 8 per cent a year earlier. Economists warn that while these methods may not create bias, they do increase volatility and reliance on statistical assumptions over actual observed prices.&nbsp;Michael Gapen, chief US economist at Morgan Stanley, told Reuters: “A growing share of imputations in CPI means a larger portion of inflation is driven by models, assumptions, and estimates instead of sampling actual prices. Investors are right to have concerns.”&nbsp;(With inputs from the agencies)&nbsp;

CPI is projected to climb 0.2%, down from June’s 0.3%. Factors include labour shortages in agriculture, shaped by deportations and tariffs. 

US consumer prices are expected to have increased only marginally in July, but rising costs for tariff-hit goods such as household furniture and apparel could push underlying inflation to its largest gain in six months. According to Reuters, the Labour Department’s Consumer Price Index (CPI) data which is due on Tuesday, comes amid mounting concerns over the reliability of official inflation and jobs statistics. Budget and staffing cuts at the Bureau of Labor Statistics (BLS) have forced the suspension of price collection in parts of the country, with missing data now filled in using statistical models. Tariffs, deportations, and price pressures The Reuters poll of economists shows the CPI likely rose 0.2 per cent in July, easing from June’s 0.3 per cent increase. Falling gasoline prices likely offset some of the gains from higher food costs. Analysts say labour shortages in agriculture, driven by President Donald Trump’s stepped-up deportations of undocumented migrants and import tariffs are keeping food prices elevated. Over the past 12 months, the CPI is forecast to have risen 2.8 per cent, compared with 2.7 per cent in June. Stripping out food and energy, the so-called core CPI is expected to have climbed 0.3 per cent month-on-month, the sharpest rise since January, Jason Pride, chief of investment strategy at Glenmede, told Reuters that consumers have so far absorbed about one-third of the tariff burden. But as pre-tariff inventories run down, companies may pass more costs onto households in the coming months. Fed rate cut speculation builds The Federal Reserve uses different inflation measures for its 2 per cent target. July’s CPI reading, if in line with forecasts, is unlikely to derail market expectations that the US central bank could resume cutting interest rates in September, after holding the benchmark rate at 4.25–4.50 per cent for five consecutive meetings. Data integrity under scrutiny Concerns over data quality intensified after Trump fired BLS Commissioner Erika McEntarfer earlier this month, following a dismal July jobs report that showed stall-speed employment growth and large downward revisions to earlier payroll data. The BLS has now fully halted CPI data collection in one city each in Nebraska, Utah, and New York, and suspended 15 per cent of sampling in other regions. Missing prices are increasingly filled through “different cell imputation," where data from other geographical areas is substituted, rather than “home cell” estimates from the same location. The share of CPI data based on such imputations surged to 35 per cent in June from just 8 per cent a year earlier. Economists warn that while these methods may not create bias, they do increase volatility and reliance on statistical assumptions over actual observed prices. Michael Gapen, chief US economist at Morgan Stanley, told Reuters: “A growing share of imputations in CPI means a larger portion of inflation is driven by models, assumptions, and estimates instead of sampling actual prices. Investors are right to have concerns.” (With inputs from the agencies)

US consumer prices are anticipated to rise slightly in July, with tariffs on goods like furniture and apparel potentially causing underlying inflation to increase.

US inflation likely rose slightly in July as data quality concerns deepen

Chinese manufacturers are cutting shifts, reducing overtime pay, and relying more on temporary workers to stay afloat as US tariffs bite into profits, according to a Reuters report from Guangzhou. The strain is particularly visible in export hubs like Guangdong, where competition for non-US markets is intensifying. Mike Chai, who runs Cartia Global Manufacturing, a kitchen cabinet producer in Foshan, told Reuters he is aiming to cut wage costs by about 30% to keep up with Chinese rivals who have abandoned the US market due to steep tariffs. These competitors are now targeting his Australian customers, forcing him to shorten shifts and ask employees to take unpaid leave.&nbsp;Chai has already halved his workforce since the pandemic and says his factory is now operating at only half capacity. “We’re in survival mode,” he said. “You don’t want our factory to go broke… let’s do it together.”<h2>Tariff truce offers temporary relief</h2>The pressure comes even as Washington and Beijing extended a 90-day tariff truce this week, preventing duties from returning to April’s triple-digit levels. However, Reuters notes that while China’s official unemployment rate remains around 5%, underemployment is worsening, a trend economists say is eroding worker incomes, confidence, and spending power.&nbsp;Natixis Asia-Pacific chief economist Alicia Garcia-Herrero told Reuters that the export model is punishing workers rather than companies. “If you need to export at a loss, do not export,” she said, warning of a “spiral” of lower prices, lower wages, and weaker consumption.&nbsp;July data shows Chinese exports to the US dropped 21.7% year-on-year, while shipments rose to the EU (+9.2%), ASEAN (+16.6%), and Australia (+14.8%). But winning these markets means cutting prices further, Chai plans a 10% reduction and reducing overtime, which once made up more than a third of workers’ pay.<h2>Rise of temporary and lower-paid work</h2>Reuters reports that many factories are replacing full-time staff with temporary hires to avoid pension and insurance costs. Some workers, like Alan Zhang in Guangzhou, now earn less than half their 2021 daily rate and struggle to find more than two weeks of work per month.&nbsp;Pay rates for temp jobs have also fallen, from 16 yuan an hour last year to 14 yuan in some regions, while job seekers crowd factory recruitment markets in cities like Wuhan and Shenzhen. For some, conditions are so strained that they turn down work that falls short of advertised wages or requires upfront fees.&nbsp;Economists warn that if manufacturing wages continue to be squeezed, deflationary pressure could spread across China’s wider economy, particularly in lower-skill industries such as textiles, furniture, and simple electronics.&nbsp;(With inputs from the agencies)&nbsp;

While a tariff truce provides temporary relief, underemployment and lower incomes worsen. Many factories replace full-time staff with temp hires, leading to declining pay rates and increased job seeker competition, risking deflation in lower-skill industries.

Chinese manufacturers are cutting shifts, reducing overtime pay, and relying more on temporary workers to stay afloat as US tariffs bite into profits, according to a Reuters report from Guangzhou. The strain is particularly visible in export hubs like Guangdong, where competition for non-US markets is intensifying. Mike Chai, who runs Cartia Global Manufacturing, a kitchen cabinet producer in Foshan, told Reuters he is aiming to cut wage costs by about 30% to keep up with Chinese rivals who have abandoned the US market due to steep tariffs. These competitors are now targeting his Australian customers, forcing him to shorten shifts and ask employees to take unpaid leave. Chai has already halved his workforce since the pandemic and says his factory is now operating at only half capacity. “We’re in survival mode,” he said. “You don’t want our factory to go broke… let’s do it together.” Tariff truce offers temporary relief The pressure comes even as Washington and Beijing extended a 90-day tariff truce this week, preventing duties from returning to April’s triple-digit levels. However, Reuters notes that while China’s official unemployment rate remains around 5%, underemployment is worsening, a trend economists say is eroding worker incomes, confidence, and spending power. Natixis Asia-Pacific chief economist Alicia Garcia-Herrero told Reuters that the export model is punishing workers rather than companies. “If you need to export at a loss, do not export,” she said, warning of a “spiral” of lower prices, lower wages, and weaker consumption. July data shows Chinese exports to the US dropped 21.7% year-on-year, while shipments rose to the EU (+9.2%), ASEAN (+16.6%), and Australia (+14.8%). But winning these markets means cutting prices further, Chai plans a 10% reduction and reducing overtime, which once made up more than a third of workers’ pay. Rise of temporary and lower-paid work Reuters reports that many factories are replacing full-time staff with temporary hires to avoid pension and insurance costs. Some workers, like Alan Zhang in Guangzhou, now earn less than half their 2021 daily rate and struggle to find more than two weeks of work per month. Pay rates for temp jobs have also fallen, from 16 yuan an hour last year to 14 yuan in some regions, while job seekers crowd factory recruitment markets in cities like Wuhan and Shenzhen. For some, conditions are so strained that they turn down work that falls short of advertised wages or requires upfront fees. Economists warn that if manufacturing wages continue to be squeezed, deflationary pressure could spread across China’s wider economy, particularly in lower-skill industries such as textiles, furniture, and simple electronics. (With inputs from the agencies)

Chinese manufacturers are cutting shifts, reducing overtime, and hiring more temporary workers to cope with profits declining due to US tariffs, particularly in Guangdong.

China’s factories slash shifts and wages as US tariffs squeeze export margins

Australia’s central bank, the Reserve Bank of Australia (RBA), has announced a reduction in its benchmark interest rate by 25 basis points, bringing it to 3.6 per cent. This marks the third rate cut this year and reflects the ongoing challenges faced by the country’s economy. The move was made in response to weaker-than-expected economic growth and a continued decline in inflation, which the RBA is aiming to keep within its target range of 2-3 per cent. The central bank’s decision comes after inflation in Australia fell to 2.1 per cent in the second quarter, its lowest rate since March 2021. This drop has been attributed to tighter monetary policies and declining aggregate demand. The RBA governor, Michele Bullock, emphasised that inflation had “substantially” decreased from its peak in 2022, but the economy's overall growth has stalled, leading the RBA to adjust its economic forecasts.<h2>Economic growth forecast downgraded amid sluggish performance</h2>In addition to the interest rate cut, the RBA downgraded its growth forecast for the Australian economy to 1.7 per cent for the year, down from an earlier estimate of 2.1 per cent. This revision reflects weaker-than-expected public demand in early 2025, which is unlikely to be compensated by the rest of the year. The economy grew by just 1.3 per cent in the first quarter, falling short of the expected 1.5 per cent. On a quarterly basis, growth was even weaker, expanding by only 0.2 per cent, compared to the forecasted 0.4 per cent.This stagnation in growth has been attributed to several factors, including reduced public spending, weakening consumer demand, and lower export performance. Despite these challenges, inflation continues to move toward the RBA's target range, and the labour market remains relatively stable, although unemployment rose to 4.3 per cent in June from 4.1 per cent in February.<h2>Rate cuts expected to continue amid global economic uncertainty</h2>While the Australian economy faces challenges, the outlook for future rate cuts remains a topic of speculation. Analysts from the Commonwealth Bank of Australia predict another rate cut by November, with potential for further easing in early 2026. Some experts expect rates to fall to 2.85 per cent by mid-2026, largely due to the RBA’s revised inflation forecasts.International factors, including US trade tariffs and global economic conditions, also play a significant role in Australia’s monetary policy decisions. The RBA noted that while the risks of a “very damaging” global trade war have diminished, uncertainties persist. The weakening of the Australian dollar, down 0.15 per cent to 0.6501 against the US dollar, reflects the global economic pressures, despite the RBA’s efforts to stabilise inflation.&nbsp;(With inputs from agencies)

The RBA governor, Michele Bullock, emphasised that inflation had “substantially” decreased from its peak in 2022, but the economy's overall growth has stalled, leading the RBA to adjust its economic forecasts.

Australia’s central bank, the Reserve Bank of Australia (RBA), has announced a reduction in its benchmark interest rate by 25 basis points, bringing it to 3.6 per cent. This marks the third rate cut this year and reflects the ongoing challenges faced by the country’s economy. The move was made in response to weaker-than-expected economic growth and a continued decline in inflation, which the RBA is aiming to keep within its target range of 2-3 per cent. The central bank’s decision comes after inflation in Australia fell to 2.1 per cent in the second quarter, its lowest rate since March 2021. This drop has been attributed to tighter monetary policies and declining aggregate demand. The RBA governor, Michele Bullock, emphasised that inflation had “substantially” decreased from its peak in 2022, but the economy's overall growth has stalled, leading the RBA to adjust its economic forecasts. Economic growth forecast downgraded amid sluggish performance In addition to the interest rate cut, the RBA downgraded its growth forecast for the Australian economy to 1.7 per cent for the year, down from an earlier estimate of 2.1 per cent. This revision reflects weaker-than-expected public demand in early 2025, which is unlikely to be compensated by the rest of the year. The economy grew by just 1.3 per cent in the first quarter, falling short of the expected 1.5 per cent. On a quarterly basis, growth was even weaker, expanding by only 0.2 per cent, compared to the forecasted 0.4 per cent. This stagnation in growth has been attributed to several factors, including reduced public spending, weakening consumer demand, and lower export performance. Despite these challenges, inflation continues to move toward the RBA's target range, and the labour market remains relatively stable, although unemployment rose to 4.3 per cent in June from 4.1 per cent in February. Rate cuts expected to continue amid global economic uncertainty While the Australian economy faces challenges, the outlook for future rate cuts remains a topic of speculation. Analysts from the Commonwealth Bank of Australia predict another rate cut by November, with potential for further easing in early 2026. Some experts expect rates to fall to 2.85 per cent by mid-2026, largely due to the RBA’s revised inflation forecasts. International factors, including US trade tariffs and global economic conditions, also play a significant role in Australia’s monetary policy decisions. The RBA noted that while the risks of a “very damaging” global trade war have diminished, uncertainties persist. The weakening of the Australian dollar, down 0.15 per cent to 0.6501 against the US dollar, reflects the global economic pressures, despite the RBA’s efforts to stabilise inflation. (With inputs from agencies)

The RBA governor, Michele Bullock, emphasised that inflation had “substantially” decreased from its peak in 2022, but the economy's overall growth has stalled, leading the RBA to adjust its economic forecasts.

Australia cuts interest rates amid economic slowdown and inflation relief

Bank of America has lowered its US Treasury yield forecasts, citing weaker economic data and rising political risks that could push the Federal Reserve toward a more dovish policy stance. As per Bloomberg, interest-rate strategists led by Mark Cabana now expect two-year Treasury yields to end 2025 at 3.5 per cent, down from their earlier projection of 3.75 per cent. They see 10-year yields finishing the year at 4.25 per cent, compared with a previous forecast of 4.5 per cent.<h2>Weaker data shifts market outlook</h2>“Recent US data has meaningfully shifted market Fed pricing and our view on US rates,” Cabana wrote in a client note on Monday. He added that the risk of “Fed independence erosion," potentially leading to higher inflation tolerance and more policymakers advocating for lower rates is factored into the bank’s revised view.&nbsp;While Bank of America’s economics team still expects the Fed to hold rates steady until the second half of 2026, Cabana’s rates team highlighted that softer US labour market data has increased downside risks.&nbsp;The appointment of Stephen Miran, an ally of President Donald Trump, as a Fed governor is seen as another factor that could tilt the balance in favour of lower interest rates, Bloomberg reported.<h2>Market bets on rate cuts grow</h2>According to Bloomberg, the strategists are recommending bets on five-year overnight index swaps falling to 2.8 per cent from 3.46 per cent currently. They also advise “adding duration on any rate back up” and anticipate that breakeven rates, a measure of inflation expectations, will widen.Interest-rate swaps show traders have priced in more than two Fed rate cuts by December, with an 80 per cent probability of a quarter-point reduction as early as next month. While Bank of America sees September market pricing as “stretched,” the strategists said they are reluctant to bet against it due to the risk of a larger 50-basis-point cut,&nbsp;similar to the Fed’s surprise move in September 2024 when it began its easing cycle with a jumbo cut.<h2>Bank of America’s revised US Treasury yield forecasts</h2>The table below shows Bank of America’s old versus new year-end 2025 forecasts for US Treasury yields. The revision reflects expectations that the Fed could pivot to lower rates sooner, given softer economic data and political developments.

<figure class="table"><table><tbody><tr><td>Maturity</td><td>Previous Forecast (Dec 2025)</td><td>New Forecast (Dec 2025)</td></tr><tr><td>2-year</td><td>3.75%</td><td>3.50%</td></tr><tr><td>10-year</td><td>4.50%</td><td>4.25%</td></tr></tbody></table></figure>(Source: Bank of America projections, as per Bloomberg)

(With inputs from the agencies)&nbsp;

Two-year yields are now expected to finish 2025 at 3.5% (previously 3.75%), while 10-year yields are forecast at 4.25% (down from 4.5%). Increased bets on rate cuts reflect a dovish outlook for the Federal Reserve.

Bank of America has lowered its US Treasury yield forecasts, citing weaker economic data and rising political risks that could push the Federal Reserve toward a more dovish policy stance. As per Bloomberg, interest-rate strategists led by Mark Cabana now expect two-year Treasury yields to end 2025 at 3.5 per cent, down from their earlier projection of 3.75 per cent. They see 10-year yields finishing the year at 4.25 per cent, compared with a previous forecast of 4.5 per cent. Weaker data shifts market outlook “Recent US data has meaningfully shifted market Fed pricing and our view on US rates,” Cabana wrote in a client note on Monday. He added that the risk of “Fed independence erosion," potentially leading to higher inflation tolerance and more policymakers advocating for lower rates is factored into the bank’s revised view. While Bank of America’s economics team still expects the Fed to hold rates steady until the second half of 2026, Cabana’s rates team highlighted that softer US labour market data has increased downside risks. The appointment of Stephen Miran, an ally of President Donald Trump, as a Fed governor is seen as another factor that could tilt the balance in favour of lower interest rates, Bloomberg reported. Market bets on rate cuts grow According to Bloomberg, the strategists are recommending bets on five-year overnight index swaps falling to 2.8 per cent from 3.46 per cent currently. They also advise “adding duration on any rate back up” and anticipate that breakeven rates, a measure of inflation expectations, will widen. Interest-rate swaps show traders have priced in more than two Fed rate cuts by December, with an 80 per cent probability of a quarter-point reduction as early as next month. While Bank of America sees September market pricing as “stretched,” the strategists said they are reluctant to bet against it due to the risk of a larger 50-basis-point cut, similar to the Fed’s surprise move in September 2024 when it began its easing cycle with a jumbo cut. Bank of America’s revised US Treasury yield forecasts The table below shows Bank of America’s old versus new year-end 2025 forecasts for US Treasury yields. The revision reflects expectations that the Fed could pivot to lower rates sooner, given softer economic data and political developments.

Bank of America has revised its US Treasury yield forecasts downwards due to weaker economic data and rising political risks.

Bank of America cuts US rates outlook as weak data, Fed risks mount

India is hopeful that trade talks with the United States will proceed as planned, despite a recent escalation in tariffs that has raised tensions between the two countries. Last week, US President Donald Trump imposed an additional 25 per cent tariff on Indian exports, bringing the total tariff to 50 per cent on Indian goods, a move that has placed India among the highest taxed nations in terms of trade with the US. The new levies stem from India’s continued purchase of sanctioned Russian oil, a move that has strained relations between Washington and New Delhi.Despite the tariff hike, Indian lawmakers have expressed optimism about the continuation of trade discussions. A parliamentary panel on foreign affairs was briefed on the situation, with officials reaffirming the importance of the multi-dimensional relationship between the two nations. “Our relations with the US are multi-dimensional, and trade is just one aspect,” said one of the lawmakers, citing a briefing from the Indian government.India’s junior finance minister, Pankaj Chaudhary, provided estimates that around 55 per cent of India’s merchandise exports to the US would be impacted by the new tariffs, which include both the recent 25 per cent tariff and the initial 25 per cent levy. Despite these challenges, trade talks are set to continue, with a US trade delegation scheduled to visit New Delhi on August 25 for the sixth round of negotiations. “As of now, there is no change in the existing plans for the US delegation’s visit,” said Shashi Tharoor, chairman of the Parliamentary Committee on Foreign Affairs.<h2>India’s uncompromising stance on key sectors</h2>India’s government has made it clear that it will not back down on certain key sectors during the trade negotiations. In particular, the country is firm in its stance on agriculture and dairy, which it considers red lines. Officials emphasised this during the committee briefing, stating that India would not be pressured into opening these sectors for trade with the US. The government is also actively exploring alternative trade partnerships, including expedited talks with the European Union (EU) and other nations, to mitigate the economic impact of the tariffs.Commerce Secretary Sunil Barthwal outlined that US tariffs have been applied in three broad categories: global tariffs affecting all countries, sector-specific tariffs aimed at industries like textiles and automobiles, and revenue-oriented tariffs targeting sectors such as agriculture and oil. These tariffs are seen as both a challenge and an opportunity for India, which is already looking to diversify its export markets and reduce dependency on the US.<h2>Strategic implications and broader India-US relations</h2>While trade has dominated recent discussions, Indian officials stressed that the broader relationship with the US remains strong, with cooperation extending beyond just economic matters. In particular, India’s role in key international issues, including resolutions at the UN Security Council and collaborations in the Quad (Quadrilateral Security Dialogue), continues to strengthen ties. On the issue of Pakistan, however, India has expressed dissatisfaction with recent nuclear threats made by Pakistan’s army chief, Field Marshal Asim Munir, while on a visit to the US. The Indian government has firmly rejected such rhetoric, which was viewed as unhelpful to regional stability.On the trade front, India is also closely monitoring the impact of its continued purchase of Russian oil, which has contributed to the tariffs. In a significant development, India’s foreign ministry hinted that if the ongoing conflict between Russia and Ukraine comes to an end, a reduction of up to 25 per cent in tariffs could be possible, provided India can find a way to navigate the remaining 25 per cent impact.&nbsp;(With inputs from agencies)

India’s government has made it clear that it will not back down on certain key sectors during the trade negotiations. In particular, the country is firm in its stance on agriculture and dairy, which it considers red lines. 

India is hopeful that trade talks with the United States will proceed as planned, despite a recent escalation in tariffs that has raised tensions between the two countries. Last week, US President Donald Trump imposed an additional 25 per cent tariff on Indian exports, bringing the total tariff to 50 per cent on Indian goods, a move that has placed India among the highest taxed nations in terms of trade with the US. The new levies stem from India’s continued purchase of sanctioned Russian oil, a move that has strained relations between Washington and New Delhi. Despite the tariff hike, Indian lawmakers have expressed optimism about the continuation of trade discussions. A parliamentary panel on foreign affairs was briefed on the situation, with officials reaffirming the importance of the multi-dimensional relationship between the two nations. “Our relations with the US are multi-dimensional, and trade is just one aspect,” said one of the lawmakers, citing a briefing from the Indian government. India’s junior finance minister, Pankaj Chaudhary, provided estimates that around 55 per cent of India’s merchandise exports to the US would be impacted by the new tariffs, which include both the recent 25 per cent tariff and the initial 25 per cent levy. Despite these challenges, trade talks are set to continue, with a US trade delegation scheduled to visit New Delhi on August 25 for the sixth round of negotiations. “As of now, there is no change in the existing plans for the US delegation’s visit,” said Shashi Tharoor, chairman of the Parliamentary Committee on Foreign Affairs. India’s uncompromising stance on key sectors India’s government has made it clear that it will not back down on certain key sectors during the trade negotiations. In particular, the country is firm in its stance on agriculture and dairy, which it considers red lines. Officials emphasised this during the committee briefing, stating that India would not be pressured into opening these sectors for trade with the US. The government is also actively exploring alternative trade partnerships, including expedited talks with the European Union (EU) and other nations, to mitigate the economic impact of the tariffs. Commerce Secretary Sunil Barthwal outlined that US tariffs have been applied in three broad categories: global tariffs affecting all countries, sector-specific tariffs aimed at industries like textiles and automobiles, and revenue-oriented tariffs targeting sectors such as agriculture and oil. These tariffs are seen as both a challenge and an opportunity for India, which is already looking to diversify its export markets and reduce dependency on the US. Strategic implications and broader India-US relations While trade has dominated recent discussions, Indian officials stressed that the broader relationship with the US remains strong, with cooperation extending beyond just economic matters. In particular, India’s role in key international issues, including resolutions at the UN Security Council and collaborations in the Quad (Quadrilateral Security Dialogue), continues to strengthen ties. On the issue of Pakistan, however, India has expressed dissatisfaction with recent nuclear threats made by Pakistan’s army chief, Field Marshal Asim Munir, while on a visit to the US. The Indian government has firmly rejected such rhetoric, which was viewed as unhelpful to regional stability. On the trade front, India is also closely monitoring the impact of its continued purchase of Russian oil, which has contributed to the tariffs. In a significant development, India’s foreign ministry hinted that if the ongoing conflict between Russia and Ukraine comes to an end, a reduction of up to 25 per cent in tariffs could be possible, provided India can find a way to navigate the remaining 25 per cent impact. (With inputs from agencies)

India’s government has made it clear that it will not back down on certain key sectors during the trade negotiations. In particular, the country is firm in its stance on agriculture and dairy, which it considers red lines.&nbsp;

India draws ‘red line’ as the US trade negotiations proceed after 50% tariff hike

Gold prices inched higher on Tuesday, recovering some ground after a steep sell-off in the previous session, as investors awaited key US inflation data that could shape the Federal Reserve’s interest rate path. As per Reuters, spot gold rose 0.2 per cent to $3,350.03 per ounce at 0146 GMT, while US gold futures for December delivery were steady at $3,402.80. This followed Monday’s sharp losses, when spot prices fell 1.6 per cent and futures dropped over 2 per cent after US President Donald Trump said imported gold bars would not be subject to tariffs — easing fears that had rattled bullion markets.<h2>CPI data in focus</h2>Market attention is now on the US consumer price index (CPI) report due at 1230 GMT. Economists polled by Reuters expect core CPI to have risen 0.3 per cent in July, lifting the annual rate to 3 per cent, still well above the Fed’s 2 per cent target. “Market participants now will be definitely focusing on the upcoming Fed rate cut, which has been more or less priced in for September,” OANDA senior market analyst Kelvin Wong told Reuters.&nbsp;“If we start to see the core CPI data come in slightly below expectations, that could further support this rate cut outlook." Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold. Wong also noted that long-term US Treasury yields remain capped below key resistance levels, which could provide additional support for bullion.<h2>Political backdrop and Fed pressure</h2>According to Reuters, traders are pricing in about an 85 per cent chance of a Fed rate cut in September, as per CME’s FedWatch tool. Gold tends to perform well during periods of policy easing and market uncertainty.&nbsp;Trump has repeatedly criticised the Fed for not cutting rates more aggressively, and markets are also watching who he will nominate to succeed current Chair Jerome Powell when his term ends in May next year.&nbsp;Meanwhile, a White House official confirmed to Reuters that Trump had signed an executive order on Monday extending a pause in sharply higher US tariffs on Chinese imports for another 90 days, a move that could ease fears of renewed trade tensions and reduce safe-haven demand.<h2>Broader precious metals market</h2>In other precious metals, spot silver gained 0.6 per cent to $37.81 per ounce, platinum rose 0.6 per cent to $1,334.24, and palladium climbed 0.7 per cent to $1,143.93, according to Reuters data.&nbsp;While Trump’s assurance that bullion imports would not face US tariffs calmed some market nerves, traders are still awaiting formal clarification following a recent federal court ruling that caused uncertainty in the sector.&nbsp;(With inputs from the agencies)&nbsp;

 Attention is on the CPI report due at 1230 GMT, with economists predicting a 0.3% rise. Market participants foresee an 85% chance of a Fed rate cut in September. Other precious metals like silver, platinum, and palladium also experienced gains.

Gold prices inched higher on Tuesday, recovering some ground after a steep sell-off in the previous session, as investors awaited key US inflation data that could shape the Federal Reserve’s interest rate path. As per Reuters, spot gold rose 0.2 per cent to $3,350.03 per ounce at 0146 GMT, while US gold futures for December delivery were steady at $3,402.80. This followed Monday’s sharp losses, when spot prices fell 1.6 per cent and futures dropped over 2 per cent after US President Donald Trump said imported gold bars would not be subject to tariffs — easing fears that had rattled bullion markets. CPI data in focus Market attention is now on the US consumer price index (CPI) report due at 1230 GMT. Economists polled by Reuters expect core CPI to have risen 0.3 per cent in July, lifting the annual rate to 3 per cent, still well above the Fed’s 2 per cent target. “Market participants now will be definitely focusing on the upcoming Fed rate cut, which has been more or less priced in for September,” OANDA senior market analyst Kelvin Wong told Reuters. “If we start to see the core CPI data come in slightly below expectations, that could further support this rate cut outlook." Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold. Wong also noted that long-term US Treasury yields remain capped below key resistance levels, which could provide additional support for bullion. Political backdrop and Fed pressure According to Reuters, traders are pricing in about an 85 per cent chance of a Fed rate cut in September, as per CME’s FedWatch tool. Gold tends to perform well during periods of policy easing and market uncertainty. Trump has repeatedly criticised the Fed for not cutting rates more aggressively, and markets are also watching who he will nominate to succeed current Chair Jerome Powell when his term ends in May next year. Meanwhile, a White House official confirmed to Reuters that Trump had signed an executive order on Monday extending a pause in sharply higher US tariffs on Chinese imports for another 90 days, a move that could ease fears of renewed trade tensions and reduce safe-haven demand. Broader precious metals market In other precious metals, spot silver gained 0.6 per cent to $37.81 per ounce, platinum rose 0.6 per cent to $1,334.24, and palladium climbed 0.7 per cent to $1,143.93, according to Reuters data. While Trump’s assurance that bullion imports would not face US tariffs calmed some market nerves, traders are still awaiting formal clarification following a recent federal court ruling that caused uncertainty in the sector. (With inputs from the agencies)

Gold prices rose slightly on Tuesday after a significant sell-off, reaching $3,350.03 per ounce, as investors anticipated crucial US inflation data. Spot gold rebounded by 0.2%, while December futures held steady.

Gold edges higher ahead of US inflation data as rate cut bets build

US President Donald Trump has upended decades of national security policy with a controversial new deal involving chipmaker Nvidia. In exchange for allowing Nvidia to resume the sale of its H20 artificial intelligence (AI) chips to China, previously banned on national security grounds, Trump proposed that the US government take a 15 per cent cut of Nvidia’s sales in the country. The move has sparked intense debate and raised concerns about the future of US export controls.&nbsp;The deal, which also includes Nvidia’s smaller rival, AMD, is seen by some as the beginning of a new approach to managing sensitive technologies. Earlier, export controls on technologies like advanced semiconductors have been non-negotiable, with national security concerns driving the decision to limit or ban sales to adversarial nations. But under Trump’s administration, the rules seem to have shifted, leading to accusations of a “pay-for-play” framework.&nbsp;<h2>Legal and ethical questions surround the deal</h2>The legality of the deal remains unclear, as US law generally prohibits taxes or duties on exported goods, particularly those related to national security. Legal experts have expressed concerns about whether Trump’s deal constitutes an “export tax” or represents a novel form of revenue-sharing, which has never been implemented in US export policy before.While Nvidia has yet to publicly confirm details of the 15 per cent revenue-sharing arrangement, the company stated it “follows rules the US government sets for our participation in worldwide markets.” AMD, meanwhile, confirmed that it had received US approval for some AI processor exports to China but did not directly address the revenue-sharing terms.<h2>Potential impact on US chipmakers and global trade</h2>The financial implications of this deal could affect chipmakers, with analysts suggesting that the 15 per cent revenue cut could reduce margins on China-bound processors by 5 to 15 percentage points. Bernstein analysts warned that this could erode Nvidia and AMD’s overall margins by about a point. The deal could also introduce uncertainty for other industries exporting strategic products to China, as they may now face similar revenue-sharing demands from the US government.The latest move signals a new era in US export controls, with some experts predicting that more deals like this could follow. As the Trump administration continues to reshape export policy, the deal with Nvidia serves as a focal point for broader discussions on the balance between economic opportunities and national security risks.&nbsp;(With inputs from agencies)

The move has sparked intense debate and raised concerns about the future of US export controls. The deal, which also includes Nvidia’s smaller rival, AMD, is seen by some as the beginning of a new approach to managing sensitive technologies.

US President Donald Trump has upended decades of national security policy with a controversial new deal involving chipmaker Nvidia. In exchange for allowing Nvidia to resume the sale of its H20 artificial intelligence (AI) chips to China, previously banned on national security grounds, Trump proposed that the US government take a 15 per cent cut of Nvidia’s sales in the country. The move has sparked intense debate and raised concerns about the future of US export controls. The deal, which also includes Nvidia’s smaller rival, AMD, is seen by some as the beginning of a new approach to managing sensitive technologies. Earlier, export controls on technologies like advanced semiconductors have been non-negotiable, with national security concerns driving the decision to limit or ban sales to adversarial nations. But under Trump’s administration, the rules seem to have shifted, leading to accusations of a “pay-for-play” framework. Legal and ethical questions surround the deal The legality of the deal remains unclear, as US law generally prohibits taxes or duties on exported goods, particularly those related to national security. Legal experts have expressed concerns about whether Trump’s deal constitutes an “export tax” or represents a novel form of revenue-sharing, which has never been implemented in US export policy before. While Nvidia has yet to publicly confirm details of the 15 per cent revenue-sharing arrangement, the company stated it “follows rules the US government sets for our participation in worldwide markets.” AMD, meanwhile, confirmed that it had received US approval for some AI processor exports to China but did not directly address the revenue-sharing terms. Potential impact on US chipmakers and global trade The financial implications of this deal could affect chipmakers, with analysts suggesting that the 15 per cent revenue cut could reduce margins on China-bound processors by 5 to 15 percentage points. Bernstein analysts warned that this could erode Nvidia and AMD’s overall margins by about a point. The deal could also introduce uncertainty for other industries exporting strategic products to China, as they may now face similar revenue-sharing demands from the US government. The latest move signals a new era in US export controls, with some experts predicting that more deals like this could follow. As the Trump administration continues to reshape export policy, the deal with Nvidia serves as a focal point for broader discussions on the balance between economic opportunities and national security risks. (With inputs from agencies)

The move has sparked intense debate and raised concerns about the future of US export controls. The deal, which also includes Nvidia’s smaller rival, AMD, is seen by some as the beginning of a new approach to managing sensitive technologies.

Trump’s deal with Nvidia raises questions on US national security and export policy