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US corporate defaults on privately placed debt rose in the second quarter of 2025, signalling growing stress among smaller and mid-sized companies facing high borrowing costs. According to Fitch Ratings, as quoted by Reuters, the default rate among roughly 1,200 corporate borrowers of private credit reached 5.5 per cent in Q2, up from 4.5 per cent in the first quarter. The ratings agency reported that eight borrowers defaulted between April and June, compared with four in the previous quarter.<h2>Stress factors driving defaults</h2>Fitch’s analysis showed that four of the eight Q2 defaults came from maturity extensions by “financially stressed” companies. Three defaults stemmed from interest deferrals and the use of payment-in-kind (non-cash) repayments, while one default was due to an “uncured payment default.”Lyle Margolis, head of private credit for corporates at Fitch Ratings, told Reuters that “smaller, private issuers remain particularly vulnerable to economic swings, GDP slowdowns, and persistent elevated interest rates, especially given their floating-rate structures.”<h2>Drop in middle-market debt issuance</h2>The second quarter also saw a 16 per cent drop in debt issuance in the US middle market, the group of mid-sized businesses that make up the bulk of private credit lending. As per Fitch data cited by Reuters, new middle-market debt volumes fell to $11.6 billion in Q2 from $13.7 billion a year earlier.&nbsp;Fitch noted that about 75 per cent of the private credit issuers it monitors belong to its rated middle-market collateralised loan obligation (CLO) portfolio, while the remaining 25 per cent are privately rated for insurance companies’ investment purposes.<h2>Rising pressure from higher rates</h2>The findings come against a backdrop of persistent high interest rates, which have pushed up financing costs for companies with floating-rate debt. Economists say that unless rates ease significantly or growth picks up, smaller corporate borrowers could face more repayment pressures in the coming quarters.&nbsp;(With inputs from the agencies)&nbsp;

Additionally, middle-market debt issuance fell 16% to $11.6 billion amid persistent high interest rates. Economists say that unless rates ease significantly or growth picks up, smaller corporate borrowers could face more repayment pressures in the coming quarters.

US corporate defaults on privately placed debt rose in the second quarter of 2025, signalling growing stress among smaller and mid-sized companies facing high borrowing costs. According to Fitch Ratings, as quoted by Reuters, the default rate among roughly 1,200 corporate borrowers of private credit reached 5.5 per cent in Q2, up from 4.5 per cent in the first quarter. The ratings agency reported that eight borrowers defaulted between April and June, compared with four in the previous quarter. Stress factors driving defaults Fitch’s analysis showed that four of the eight Q2 defaults came from maturity extensions by “financially stressed” companies. Three defaults stemmed from interest deferrals and the use of payment-in-kind (non-cash) repayments, while one default was due to an “uncured payment default.” Lyle Margolis, head of private credit for corporates at Fitch Ratings, told Reuters that “smaller, private issuers remain particularly vulnerable to economic swings, GDP slowdowns, and persistent elevated interest rates, especially given their floating-rate structures.” Drop in middle-market debt issuance The second quarter also saw a 16 per cent drop in debt issuance in the US middle market, the group of mid-sized businesses that make up the bulk of private credit lending. As per Fitch data cited by Reuters, new middle-market debt volumes fell to $11.6 billion in Q2 from $13.7 billion a year earlier. Fitch noted that about 75 per cent of the private credit issuers it monitors belong to its rated middle-market collateralised loan obligation (CLO) portfolio, while the remaining 25 per cent are privately rated for insurance companies’ investment purposes. Rising pressure from higher rates The findings come against a backdrop of persistent high interest rates, which have pushed up financing costs for companies with floating-rate debt. Economists say that unless rates ease significantly or growth picks up, smaller corporate borrowers could face more repayment pressures in the coming quarters. (With inputs from the agencies)

In Q2 2025, US corporate defaults on privately placed debt rose to 5.5%, up from 4.5% in Q1. Eight defaults were reported, with factors including maturity extensions and interest deferrals.

US corporate defaults on private debt climb to 5.5% in Q2, Fitch report says

Elon Musk, the billionaire founder of xAI, has escalated his public feud with Apple, accusing the tech giant of antitrust violations in the way it manages its App Store rankings. Musk claimed on August 11 that Apple is deliberately hindering any AI company, except for OpenAI, from reaching the top spot in the App Store, describing it as an “unequivocal antitrust violation.” The outspoken entrepreneur posted the accusations on his social media platform, X, where he also vowed that xAI would take immediate legal action against Apple.&nbsp;“Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store,” Musk said, adding that xAI would not stand for such “monopolistic behaviour”. Musk did not provide any concrete evidence to support these claims, and both Apple and xAI were unavailable for immediate comment on the matter. OpenAI, which has a close partnership with Apple to integrate its ChatGPT model into Apple devices, also did not respond to enquiries.As of now, ChatGPT holds the top position in the US iPhone App Store’s “Top Free Apps” section, while Musk’s AI startup, xAI, ranks fifth with its Grok app. Google’s Gemini chatbot lags far behind in 57th place. ChatGPT also leads in rankings on the Google Play Store, according to Sensor Tower data. Musk’s grievance is primarily that despite these rankings, his own products, like X and Grok, are not receiving prominent placement in Apple's “Must Have” section, despite their high popularity. Musk has accused Apple of playing “politics” by ignoring these apps, which are top contenders in their categories.<h2>The growing tensions between Musk and OpenAI</h2>Musk’s comments come amid rising tension between his xAI and OpenAI, two major players in the AI industry. Musk's comments about Apple's bias have reignited the ongoing rivalry between the two companies, especially in the wake of OpenAI's recent launch of its GPT-5 model. In contrast, xAI launched its Grok 4 model last month and, according to Musk, continues to outperform OpenAI’s offerings despite GPT-5's recent release.While Musk has not shared detailed evidence regarding his antitrust allegations against Apple, the criticism is not isolated. His remarks came shortly after OpenAI CEO Sam Altman hit back at Musk’s accusations, questioning Musk's own practices on social media. Altman criticised Musk's management of X, asserting that Musk manipulates the platform to benefit his own ventures and harm his competitors. In a pointed post, Altman suggested that Musk’s behaviour in controlling X’s algorithm has raised concerns regarding fairness in competition.“This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn’t like,” Altman wrote in a post on X. He added that OpenAI would stay focused on developing its AI products while also calling for “counter-discovery” regarding Musk’s claims of unfair practices.<h2>Regulatory scrutiny of Apple's App Store</h2>Musk’s accusations also coincide with growing scrutiny of Apple’s control over its App Store. In April, a US judge ruled that Apple had violated antitrust regulations and referred the company for a criminal contempt investigation in connection with a case brought by Epic Games, the creator of “Fortnite”. Furthermore, in the same month, the European Union fined Apple €500 million ($587 million) for restricting developers’ ability to direct users to cheaper deals outside the App Store, a practice that violated the Digital Markets Act.As the battle between Musk’s xAI and OpenAI intensifies, so too does the scrutiny on Apple’s App Store practices. While Musk’s claims about a “monopolistic” approach to rankings remain unproven, they highlight the ongoing challenges faced by major tech platforms in navigating competition law and regulatory requirements.&nbsp;(With inputs from agencies)

Elon Musk’s grievance is primarily that, despite good rankings, products like X and Grok are not receiving prominent placement in Apple's 'Must Have' section, despite their high popularity. He accused Apple of playing politics by ignoring the apps, which are top contenders in their categories

Elon Musk, the billionaire founder of xAI, has escalated his public feud with Apple, accusing the tech giant of antitrust violations in the way it manages its App Store rankings. Musk claimed on August 11 that Apple is deliberately hindering any AI company, except for OpenAI, from reaching the top spot in the App Store, describing it as an “unequivocal antitrust violation.” The outspoken entrepreneur posted the accusations on his social media platform, X, where he also vowed that xAI would take immediate legal action against Apple. “Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store,” Musk said, adding that xAI would not stand for such “monopolistic behaviour”. Musk did not provide any concrete evidence to support these claims, and both Apple and xAI were unavailable for immediate comment on the matter. OpenAI, which has a close partnership with Apple to integrate its ChatGPT model into Apple devices, also did not respond to enquiries. As of now, ChatGPT holds the top position in the US iPhone App Store’s “Top Free Apps” section, while Musk’s AI startup, xAI, ranks fifth with its Grok app. Google’s Gemini chatbot lags far behind in 57th place. ChatGPT also leads in rankings on the Google Play Store, according to Sensor Tower data. Musk’s grievance is primarily that despite these rankings, his own products, like X and Grok, are not receiving prominent placement in Apple's “Must Have” section, despite their high popularity. Musk has accused Apple of playing “politics” by ignoring these apps, which are top contenders in their categories. The growing tensions between Musk and OpenAI Musk’s comments come amid rising tension between his xAI and OpenAI, two major players in the AI industry. Musk's comments about Apple's bias have reignited the ongoing rivalry between the two companies, especially in the wake of OpenAI's recent launch of its GPT-5 model. In contrast, xAI launched its Grok 4 model last month and, according to Musk, continues to outperform OpenAI’s offerings despite GPT-5's recent release. While Musk has not shared detailed evidence regarding his antitrust allegations against Apple, the criticism is not isolated. His remarks came shortly after OpenAI CEO Sam Altman hit back at Musk’s accusations, questioning Musk's own practices on social media. Altman criticised Musk's management of X, asserting that Musk manipulates the platform to benefit his own ventures and harm his competitors. In a pointed post, Altman suggested that Musk’s behaviour in controlling X’s algorithm has raised concerns regarding fairness in competition. “This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn’t like,” Altman wrote in a post on X. He added that OpenAI would stay focused on developing its AI products while also calling for “counter-discovery” regarding Musk’s claims of unfair practices. Regulatory scrutiny of Apple's App Store Musk’s accusations also coincide with growing scrutiny of Apple’s control over its App Store. In April, a US judge ruled that Apple had violated antitrust regulations and referred the company for a criminal contempt investigation in connection with a case brought by Epic Games, the creator of “Fortnite”. Furthermore, in the same month, the European Union fined Apple €500 million ($587 million) for restricting developers’ ability to direct users to cheaper deals outside the App Store, a practice that violated the Digital Markets Act. As the battle between Musk’s xAI and OpenAI intensifies, so too does the scrutiny on Apple’s App Store practices. While Musk’s claims about a “monopolistic” approach to rankings remain unproven, they highlight the ongoing challenges faced by major tech platforms in navigating competition law and regulatory requirements. (With inputs from agencies)

Elon Musk’s grievance is primarily that, despite good rankings, products like X and Grok are not receiving prominent placement in Apple's 'Must Have' section, despite their high popularity. He accused Apple of playing politics by ignoring the apps, which are top contenders in their categories

Elon Musk threatens legal action against Apple over app store rankings

The US dollar held steady on Tuesday as investors braced for a critical inflation report that could shape expectations for Federal Reserve interest rate cuts next month. The Australian dollar also remained flat ahead of the Reserve Bank of Australia’s (RBA) closely watched policy decision. As per Reuters, the US dollar index, which tracks the greenback against six major currencies, including the euro and yen, was stable at 98.497 as of 0046 GMT, after gaining 0.5 per cent over the past two sessions. The rise followed earlier losses sparked by US President Donald Trump’s dovish-leaning pick to replace a Fed governor and similarly inclined potential candidates for chairman, which led traders to increase bets on monetary easing.<h2>Fed rate cut speculation builds ahead of CPI release</h2>Federal Reserve officials have signalled growing concerns over the US labour market, hinting at a possible interest rate cut as early as September. Market pricing reflects about an 89 per cent probability of a quarter-point reduction on September 17, according to Reuters data. Cooling inflation could strengthen the case for a cut, but analysts warn that any signs Trump’s tariffs are fuelling price pressures may keep the Fed on hold.&nbsp;Economists polled by Reuters expect core US consumer price inflation to have risen 0.3 per cent in July, pushing the annual rate to 3 per cent. TD Securities strategists wrote in a research note that the “risk-reward heading into US CPI this week is for a modest USD bounce,” as an upside surprise could challenge expectations for an almost fully priced-in rate cut. They added that a downside miss would likely have less impact on the dollar, with a larger 50-basis-point cut more likely to be triggered by further labour market deterioration rather than soft CPI figures.<h2>Currency market snapshot</h2>On Tuesday, the greenback inched 0.1 per cent higher to 148.28 yen, while the euro was unchanged at $1.1615. The yuan traded flat at 7.1935 per dollar in offshore markets. According to Reuters, the dollar’s moves were largely unaffected by Trump’s Monday executive order extending a 90-day pause on sharply higher tariffs for Chinese imports, a decision widely anticipated by traders.&nbsp;The US and China are working to finalise a deal that would avert triple-digit import duties. A US official told Reuters that American chipmakers Nvidia and AMD had agreed to allocate 15 per cent of their China sales revenues to the US government to secure export licences for semiconductors.&nbsp;The Australian dollar traded at $0.6518; little changed from Monday’s levels. Economists widely expect the RBA to cut rates by a quarter point following weaker-than-expected second-quarter inflation data and a rise in unemployment to a three-and-a-half-year high.However, as per Reuters, last month’s surprise hold has left traders cautious, with a recent shift in the central bank’s decision-making process adding uncertainty to the outcome.&nbsp;In cryptocurrency markets, bitcoin was steady at around $118,845, after surging as high as $122,308.25 on Monday , close to its all-time high of $123,153.22 reached in mid-July.&nbsp;(With inputs from the agencies)&nbsp; &nbsp;

The dollar index remained at 98.497. Speculation of a September rate cut increased due to concerns over the labour market and expected core inflation rises. The greenback rose slightly against the yen while the euro remained unchanged. 

The US dollar held steady on Tuesday as investors braced for a critical inflation report that could shape expectations for Federal Reserve interest rate cuts next month. The Australian dollar also remained flat ahead of the Reserve Bank of Australia’s (RBA) closely watched policy decision. As per Reuters, the US dollar index, which tracks the greenback against six major currencies, including the euro and yen, was stable at 98.497 as of 0046 GMT, after gaining 0.5 per cent over the past two sessions. The rise followed earlier losses sparked by US President Donald Trump’s dovish-leaning pick to replace a Fed governor and similarly inclined potential candidates for chairman, which led traders to increase bets on monetary easing. Fed rate cut speculation builds ahead of CPI release Federal Reserve officials have signalled growing concerns over the US labour market, hinting at a possible interest rate cut as early as September. Market pricing reflects about an 89 per cent probability of a quarter-point reduction on September 17, according to Reuters data. Cooling inflation could strengthen the case for a cut, but analysts warn that any signs Trump’s tariffs are fuelling price pressures may keep the Fed on hold. Economists polled by Reuters expect core US consumer price inflation to have risen 0.3 per cent in July, pushing the annual rate to 3 per cent. TD Securities strategists wrote in a research note that the “risk-reward heading into US CPI this week is for a modest USD bounce,” as an upside surprise could challenge expectations for an almost fully priced-in rate cut. They added that a downside miss would likely have less impact on the dollar, with a larger 50-basis-point cut more likely to be triggered by further labour market deterioration rather than soft CPI figures. Currency market snapshot On Tuesday, the greenback inched 0.1 per cent higher to 148.28 yen, while the euro was unchanged at $1.1615. The yuan traded flat at 7.1935 per dollar in offshore markets. According to Reuters, the dollar’s moves were largely unaffected by Trump’s Monday executive order extending a 90-day pause on sharply higher tariffs for Chinese imports, a decision widely anticipated by traders. The US and China are working to finalise a deal that would avert triple-digit import duties. A US official told Reuters that American chipmakers Nvidia and AMD had agreed to allocate 15 per cent of their China sales revenues to the US government to secure export licences for semiconductors. The Australian dollar traded at $0.6518; little changed from Monday’s levels. Economists widely expect the RBA to cut rates by a quarter point following weaker-than-expected second-quarter inflation data and a rise in unemployment to a three-and-a-half-year high. However, as per Reuters, last month’s surprise hold has left traders cautious, with a recent shift in the central bank’s decision-making process adding uncertainty to the outcome. In cryptocurrency markets, bitcoin was steady at around $118,845, after surging as high as $122,308.25 on Monday , close to its all-time high of $123,153.22 reached in mid-July. (With inputs from the agencies)

The US dollar stabilized as investors anticipated an important inflation report influencing potential Federal Reserve interest rate cuts.&nbsp;&nbsp;

Dollar holds gains on Fed cut bets; RBA decision keeps Aussie in check

Oil prices saw modest gains on August 12 as optimism over a trade truce between the United States and China helped stabilise market sentiment, easing fears of a prolonged economic slowdown. Brent crude futures rose by 26 cents, or 0.39 per cent, to $66.89 per barrel, while US West Texas Intermediate (WTI) crude climbed 22 cents, or 0.34 per cent, to $64.18 a barrel. The market was buoyed by news that US President Donald Trump had extended the tariff truce with China by another 90 days, postponing the implementation of higher tariffs on Chinese goods. This move calmed concerns that a renewed trade war could disrupt global economic growth and, in turn, dampen oil demand. Retailers in the US were particularly relieved as the decision allows for smoother preparations for the upcoming holiday season.<h2>US-Russia talks over Ukraine and potential sanctions</h2>Another focal point for the oil market this week is the meeting between US President Donald Trump and Russian President Vladimir Putin, scheduled for Friday in Alaska. The summit is expected to center around the ongoing war in Ukraine, with the potential for a ceasefire deal. The outcome of the talks could have significant implications for the oil market, especially as Washington continues to pressure major Russian oil buyers such as China and India.Trump had previously threatened to impose secondary sanctions on Russia’s oil customers if the conflict persists. Any peace deal between Russia and Ukraine could reduce the risk of disruptions to Russian oil exports, which have been a major concern for traders since the war’s onset. A de-escalation in the conflict could lead to a normalisation of oil supplies from Russia, potentially stabilising global crude markets.<h2>US inflation data and future interest rate cuts</h2>Investors are also closely watching the release of US inflation data later today, which could provide hints on the Federal Reserve’s future interest rate decisions. Any indication that the Fed might cut rates in the near future would likely support crude prices, as lower interest rates tend to boost demand for oil. In the broader market, oil prices have been under pressure in recent months, with crude prices falling more than 10 per cent this year due to concerns about global oversupply and slowing economic growth. Traders are hoping that geopolitical developments, particularly the US-Russia talks, could offer some relief to the market in the near term.&nbsp;(With inputs from agencies)

Brent crude futures rose by 26 cents, or 0.39 per cent, to $66.89 per barrel, while US WTI crude climbed 22 cents, or 0.34 per cent, to $64.18 a barrel. The market was buoyed by news that US President Donald Trump had extended the tariff truce with China by another 90 days. 

Oil prices saw modest gains on August 12 as optimism over a trade truce between the United States and China helped stabilise market sentiment, easing fears of a prolonged economic slowdown. Brent crude futures rose by 26 cents, or 0.39 per cent, to $66.89 per barrel, while US West Texas Intermediate (WTI) crude climbed 22 cents, or 0.34 per cent, to $64.18 a barrel. The market was buoyed by news that US President Donald Trump had extended the tariff truce with China by another 90 days, postponing the implementation of higher tariffs on Chinese goods. This move calmed concerns that a renewed trade war could disrupt global economic growth and, in turn, dampen oil demand. Retailers in the US were particularly relieved as the decision allows for smoother preparations for the upcoming holiday season. US-Russia talks over Ukraine and potential sanctions Another focal point for the oil market this week is the meeting between US President Donald Trump and Russian President Vladimir Putin, scheduled for Friday in Alaska. The summit is expected to center around the ongoing war in Ukraine, with the potential for a ceasefire deal. The outcome of the talks could have significant implications for the oil market, especially as Washington continues to pressure major Russian oil buyers such as China and India. Trump had previously threatened to impose secondary sanctions on Russia’s oil customers if the conflict persists. Any peace deal between Russia and Ukraine could reduce the risk of disruptions to Russian oil exports, which have been a major concern for traders since the war’s onset. A de-escalation in the conflict could lead to a normalisation of oil supplies from Russia, potentially stabilising global crude markets. US inflation data and future interest rate cuts Investors are also closely watching the release of US inflation data later today, which could provide hints on the Federal Reserve’s future interest rate decisions. Any indication that the Fed might cut rates in the near future would likely support crude prices, as lower interest rates tend to boost demand for oil. In the broader market, oil prices have been under pressure in recent months, with crude prices falling more than 10 per cent this year due to concerns about global oversupply and slowing economic growth. Traders are hoping that geopolitical developments, particularly the US-Russia talks, could offer some relief to the market in the near term. (With inputs from agencies)

Brent crude futures rose by 26 cents, or 0.39 per cent, to $66.89 per barrel, while US WTI crude climbed 22 cents, or 0.34 per cent, to $64.18 a barrel. The market was buoyed by news that US President Donald Trump had extended the tariff truce with China by another 90 days.&nbsp;

Oil prices stabilise amid US-China trade truce extension and awaited US-Russia talks

The United States and China have agreed to extend their tariff truce by 90 days, delaying a surge in import duties that threatened to escalate into a near-total trade freeze between the world’s two largest economies. US President Donald Trump announced on his Truth Social platform on Monday that he had signed an executive order suspending the imposition of higher tariffs until November 10 at 12:01 a.m. EST (0501 GMT). All other elements of the truce will remain in place.

China’s Commerce Ministry issued a matching statement early on Tuesday, postponing for 90 days the implementation of additional tariffs on US goods and delaying the addition of American companies to its trade and investment restriction lists. Beijing described the move as a step to implement the “important consensus” reached by President Xi Jinping and Trump during their June 5 call.<h2>Surge in tariffs averted</h2>Without the extension, US tariffs on Chinese goods were set to jump to 145%, while Chinese tariffs on American imports were due to rise to 125 per cent, levels that analysts say would have amounted to a “virtual trade embargo.”&nbsp;The truce locks in current tariff levels of 30% on Chinese imports to the US, and 10% on US goods entering China. The extension is expected to benefit American retailers preparing for the autumn and Christmas shopping season, as it allows them to import electronics, clothing, and toys at lower tariff rates. “This will undoubtedly lower anxiety on both sides as talks continue,” said Ryan Majerus, a former US trade official, as quoted by Reuters.<h2>Political backdrop and negotiation push</h2>The decision follows a series of high-level negotiations, including talks in Geneva in May and in Stockholm in July. As per Reuters, US Treasury Secretary Scott Bessent had repeatedly warned that the triple-digit duties introduced in the spring were “untenable,” essentially imposing a trade freeze.&nbsp;Former White House trade adviser Kelly Ann Shaw noted that the extension was typical of Trump’s style of brinkmanship, suggesting that the president pushed for further concessions from China before agreeing. According to Reuters, Trump had urged Beijing to quadruple its soybean purchases over the weekend, though he did not repeat this demand on Monday.Trump told a news conference that he has a “good relationship” with Xi Jinping and hinted that a face-to-face meeting could happen before the end of the year if progress is made.<h2>Economic impact</h2>According to US Commerce Department data cited by Reuters, imports from China surged earlier this year as firms rushed to beat tariff deadlines, but fell sharply in June. The US trade deficit with China narrowed by roughly one-third that month to $9.5 billion — the lowest since February 2004 and has shrunk by $22.2 billion over the past five months, a 70% reduction from a year earlier. Beyond tariffs, Washington has been pressing Beijing to reduce purchases of Russian oil as part of its broader strategy to pressure Moscow over the Ukraine war. Trump has also threatened to impose secondary tariffs on China if it continues buying Russian crude.&nbsp;Analysts see the 90-day pause as a temporary relief for global markets, but one that could just as easily expire without a deal. “Combined with some of the de-escalatory steps both the United States and China have taken in recent weeks, it demonstrates that both sides are trying to see if they can reach some kind of deal,” said Wendy Cutler, a former senior US trade official, as per Reuters.&nbsp;(With inputs from the agencies)&nbsp;

Current tariffs remain at 30% on Chinese imports to the US and 10% on US goods to China, benefiting American retailers ahead of the holiday season. Analysts view this extension as temporary relief, raising hopes for a potential deal amidst ongoing negotiations.

The United States and China have agreed to extend their tariff truce by 90 days, delaying a surge in import duties that threatened to escalate into a near-total trade freeze between the world’s two largest economies. US President Donald Trump announced on his Truth Social platform on Monday that he had signed an executive order suspending the imposition of higher tariffs until November 10 at 12:01 a.m. EST (0501 GMT). All other elements of the truce will remain in place.

The US and China have extended their tariff truce for 90 days, preventing a potential trade freeze. President Trump signed an executive order delaying higher tariffs until November 10.

US, China extend tariff truce by 90 days, avert near-total trade freeze

The New Income Tax Bill 2025 was passed by the Lok Sabha on Monday after Finance Minister Nirmala Sitharaman introduced a revised version that incorporated most of the recommendations made by the Select Committee headed by MP Baijayant Panda. The bill was tabled on Monday after the government decided to withdraw the Income-Tax Bill, 2025, which was presented on February 13 to replace the six-decade-old Income-Tax Act, 1961. The bill must be passed by the Rajya Sabha and will then seek the President’s nod.&nbsp;The new bill is designed to simplify and update India’s taxation system, replacing legislation that had been in effect for over 60 years. It includes a revised structure, provisions for digital taxation, systems for resolving disputes, and initiatives to expand tax collection through technological and data-driven methods. While presenting The Income-Tax (No.2) Bill, 2025, Sitharaman explained that this legislation aims to streamline and update income tax regulations, replacing the existing Income Tax Act, 1961.&nbsp;The new version, which includes the majority of 285 recommendations made by the Parliamentary Select Committee led by BJP MP Baijayant Panda, was presented on Monday and passed promptly.&nbsp;

<blockquote class="twitter-tweet"><a href="https://twitter.com/hashtag/monsoonsession2025?src=hash&amp;ref_src=twsrc%5Etfw">#monsoonsession2025</a> <a href="https://twitter.com/hashtag/LokSabha?src=hash&amp;ref_src=twsrc%5Etfw">#LokSabha</a> passes The Income-Tax (No.2) Bill, 2025. The Bill consolidates and amends the law relating to income tax.<a href="https://twitter.com/nsitharamanoffc?ref_src=twsrc%5Etfw">@nsitharamanoffc</a> <a href="https://twitter.com/nsitharaman?ref_src=twsrc%5Etfw">@nsitharaman</a> <a href="https://twitter.com/LokSabhaSectt?ref_src=twsrc%5Etfw">@LokSabhaSectt</a><a href="https://twitter.com/loksabhaspeaker?ref_src=twsrc%5Etfw">@loksabhaspeaker</a> <a href="https://t.co/wqYeCrWk9G">pic.twitter.com/wqYeCrWk9G</a>&mdash; SansadTV (@sansad_tv) <a href="https://twitter.com/sansad_tv/status/1954858998148046911?ref_src=twsrc%5Etfw">August 11, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2>Select Committee presented 4,575-page report</h2> The Parliamentary Select Committee, comprising 31 members, presented their comprehensive 4,575-page findings last month. Their recommendations include both small adjustments and 32 significant modifications. The parliamentary panel had flagged multiple drafting errors and suggested amendments to reduce ambiguity. The committee said the changes would improve fairness and clarity while aligning the law with existing provisions. FM Sitharaman said the earlier bill was pulled back to avoid confusion and that the fresh draft will serve as the basis for replacing the 1961 Act. <h2>Significant reforms in direct tax code in over 60 years</h2> The draft bill introduced in February was described as the most significant reform of India’s direct tax code in over 60 years. Its key features were simplified language, consolidation of deductions, and shorter provisions to ease compliance. It also included lower penalties for certain offences to make the system more taxpayer-friendly and reduction in litigation through a “trust first, scrutinise later” approach. The earlier draft had 23 chapters, 536 sections, and 16 schedules, using tables and formulas for easier interpretation. It also proposed streamlined TDS rules, simplified depreciation provisions, and retention of residency criteria and financial year timelines.

The Parliamentary Select Committee, comprising 31 members, presented their comprehensive 4,575-page findings last month. The recommendations of the committee include both small adjustments and 32 significant modifications.

The New Income Tax Bill 2025 was passed by the Lok Sabha on Monday after Finance Minister Nirmala Sitharaman introduced a revised version that incorporated most of the recommendations made by the Select Committee headed by MP Baijayant Panda. The bill was tabled on Monday after the government decided to withdraw the Income-Tax Bill, 2025, which was presented on February 13 to replace the six-decade-old Income-Tax Act, 1961. The bill must be passed by the Rajya Sabha and will then seek the President’s nod. The new bill is designed to simplify and update India’s taxation system, replacing legislation that had been in effect for over 60 years. It includes a revised structure, provisions for digital taxation, systems for resolving disputes, and initiatives to expand tax collection through technological and data-driven methods. While presenting The Income-Tax (No.2) Bill, 2025, Sitharaman explained that this legislation aims to streamline and update income tax regulations, replacing the existing Income Tax Act, 1961. The new version, which includes the majority of 285 recommendations made by the Parliamentary Select Committee led by BJP MP Baijayant Panda, was presented on Monday and passed promptly.

The Parliamentary Select Committee, comprising 31 members, presented their comprehensive 4,575-page findings last month. The recommendations of the committee include both small adjustments and 32 significant modifications.

New Income Tax Bill 2025 gets Lok Sabha nod, includes parliamentary panel’s most suggestions

Chinese youth and companies have come up with a creative yet controversial response to rising unemployment and societal pressure to appear employed: hire space in offices and pretend to work. Here is what it means:<h2>What is ‘pretend to work’ trend in China?</h2>People aged between 16 and 24 in China are paying to rent office spaces that simulate real workplaces. These pretend-work offices are complete with desks, Wi-Fi, computers, meeting rooms and sometimes, even food.The youth, in order to avoid the social stigma of unemployment, go to these places and spend time there. They do this to ease family pressure amid a youth jobless rate in China that hit 16 per cent as of March this year.<h2>How popular is the ‘pretend to work’ trend in China?</h2>There are pretend-work offices in Beijing, Shanghai, Shenzhen and industrial hubs like Taiyuan, according to recent reports. These offices are being hosted in unused law offices, old livestream studios, and even farms offering outdoor work, said the reports.Such workspaces fill up within a month of opening, according to some reports. For instance, The Pretend To Work Company in Dongguan, launched in April 2025, was full in a month. The Shuangjing Office in Beijing is a converted law firm space, while farm-based workspaces combine desk work with physical farm tasks. Operators like Feiyu described the pretend-work trend as a social experiment. Social media content on 'pretend office life' is going viral, clocking millions of views.<h2>How does the pretend-work system operate in China?</h2>Up to 40 per cent of the youth who pay to be in pretend-work offices are recent graduates, while the remaining 60 per cent are freelancers or digital nomads, according to reports. Their ages typically range from 25 to 30 years.The ‘applicants’ can pay a daily rate of between 30 to 50 yuan or $4 to $7, or choose monthly plans costing around 400 yuan. They get basic office amenities or can go premium, with even fake supervisors, staged photos. Some stints can end with fake employment certificates. Those going to these offices spend time between 8 PM to 11 PM. During their time in the offices, they hunt of jobs, network, or work on personal projects, often organising group dinners and fostering a sense of community.<h2>Why is pretend work so popular in China?</h2>Layoffs in tech, real estate and education sectors pushed overall urban unemployment in China to 5.3 per cent in the first quarter of 2025. Amid this, the pretend-work centres are sanctuaries offering routine, mental structure and emotional relief.&nbsp;It’s a temporary coping mechanism, but some see it as delaying real career progress. Some do use this time to learn new skills like AI tools.<a href="https://www.wionews.com/videos/new-survey-shows-employees-worldwide-prioritize-work-life-balance-over-payment-8175219/embed">https://www.wionews.com/videos/new-survey-shows-employees-worldwide-prioritize-work-life-balance-over-payment-8175219/embed</a><h2>Pretend-work trend in China exposes a deeper malaise</h2>The pretend work trend is symptomatic of the disconnect between education and labour market needs in China.&nbsp; It also highlights cultural pressures where unemployment carries shame, prompting the youth to engage in this elaborate self-deception.While it can be a short-term relief from reality, the trend underscores deeper systemic issues in China that are unresolved.

There are pretend-work offices in Beijing, Shanghai, Shenzhen and industrial hubs like Taiyuan, according to recent reports. These offices are being hosted in unused law offices, old livestream studios, and even farms 

Chinese youth and companies have come up with a creative yet controversial response to rising unemployment and societal pressure to appear employed: hire space in offices and pretend to work. Here is what it means: What is ‘pretend to work’ trend in China? People aged between 16 and 24 in China are paying to rent office spaces that simulate real workplaces. These pretend-work offices are complete with desks, Wi-Fi, computers, meeting rooms and sometimes, even food. The youth, in order to avoid the social stigma of unemployment, go to these places and spend time there. They do this to ease family pressure amid a youth jobless rate in China that hit 16 per cent as of March this year. How popular is the ‘pretend to work’ trend in China? There are pretend-work offices in Beijing, Shanghai, Shenzhen and industrial hubs like Taiyuan, according to recent reports. These offices are being hosted in unused law offices, old livestream studios, and even farms offering outdoor work, said the reports. Such workspaces fill up within a month of opening, according to some reports. For instance, The Pretend To Work Company in Dongguan, launched in April 2025, was full in a month. The Shuangjing Office in Beijing is a converted law firm space, while farm-based workspaces combine desk work with physical farm tasks. Operators like Feiyu described the pretend-work trend as a social experiment. Social media content on 'pretend office life' is going viral, clocking millions of views. How does the pretend-work system operate in China? Up to 40 per cent of the youth who pay to be in pretend-work offices are recent graduates, while the remaining 60 per cent are freelancers or digital nomads, according to reports. Their ages typically range from 25 to 30 years. The ‘applicants’ can pay a daily rate of between 30 to 50 yuan or $4 to $7, or choose monthly plans costing around 400 yuan. They get basic office amenities or can go premium, with even fake supervisors, staged photos. Some stints can end with fake employment certificates. Those going to these offices spend time between 8 PM to 11 PM. During their time in the offices, they hunt of jobs, network, or work on personal projects, often organising group dinners and fostering a sense of community. Why is pretend work so popular in China? Layoffs in tech, real estate and education sectors pushed overall urban unemployment in China to 5.3 per cent in the first quarter of 2025. Amid this, the pretend-work centres are sanctuaries offering routine, mental structure and emotional relief. It’s a temporary coping mechanism, but some see it as delaying real career progress. Some do use this time to learn new skills like AI tools. https://www.wionews.com/videos/new-survey-shows-employees-worldwide-prioritize-work-life-balance-over-payment-8175219/embed Pretend-work trend in China exposes a deeper malaise The pretend work trend is symptomatic of the disconnect between education and labour market needs in China. It also highlights cultural pressures where unemployment carries shame, prompting the youth to engage in this elaborate self-deception. While it can be a short-term relief from reality, the trend underscores deeper systemic issues in China that are unresolved.

There are pretend-work offices in Beijing, Shanghai, Shenzhen and industrial hubs like Taiyuan, according to recent reports. These offices are being hosted in unused law offices, old livestream studios, and even farms&nbsp;

In this country, people are paying companies so that they can 'pretend to work'

Saudi Arabia’s industrial production surged to its highest level since late 2022, with a notable 7.9 per cent year-on-year increase in June 2025, according to the latest data from the General Authority for Statistics (GASTAT). The growth, fuelled by a robust recovery in manufacturing and a rise in crude output, signals continued momentum in the kingdom’s industrial sector and underscores the broader economic expansion that aligns with the country’s Vision 2030 diversification goals.<h2>Manufacturing and oil drive strong growth</h2>The Industrial Production Index (IPI) for June 2025 hit 111.9, up 1.6 per cent from the previous month. The rise was predominantly driven by a sharp rebound in manufacturing activities, which jumped by 11.1 per cent from the same month last year. The production of refined petroleum products and chemicals led the way, with the manufacture of coke and refined petroleum products soaring 15.3 per cent andchemicals rising 18.7 per cent.Mining and quarrying, which includes crude oil production, also saw significant growth, increasing by 6 per cent year-on-year. Saudi oil output reached 9.36 million barrels per day (bpd) in June, up from 8.83 million bpd in June 2024. The expansion in oil production comes as Saudi Arabia ramps up its output under the new OPEC+ supply policy, reversing a contraction seen in the first quarter of 2025.<h2>Non-oil sector shows continued strength</h2>In addition to the boost in oil-related activities, the kingdom's non-oil sector continues to play a pivotal role in driving economic growth. The non-oil segment of the industrial production index grew by 8.6 per cent in June 2025, further demonstrating Saudi Arabia's progress toward reducing its reliance on crude revenues. Notable gains were also recorded in utilities, including a 5.6 per cent increase in electricity, gas, steam, and air-conditioning supply, as well as a 6.9 per cent rise in water supply and waste management activities.This growth aligns with the broader economic trajectory, as Saudi Arabia’s gross domestic product (GDP) increased by nearly 4 per cent year-on-year in the second quarter, driven by both oil and non-oil activities. With continued investment in industrial diversification, Saudi Arabia is on track to meet its Vision 2030 targets, which aim to reduce the kingdom’s dependency on oil revenues.As global oil prices remain a key factor in Saudi Arabia’s fiscal health, the government’s focus on economic diversification is becoming increasingly critical. The kingdom's fiscal breakeven oil price stands at $96 per barrel, higher than in previous years, reflecting the evolving economic landscape.&nbsp;(With inputs from agencies)

The growth in Saudi's industrial production, fuelled by a robust recovery in manufacturing and a rise in crude output, signals continued momentum in the kingdom’s industrial sector and underscores the broader economic expansion that aligns with the country’s Vision 2030 diversification goals.

Saudi Arabia’s industrial production surged to its highest level since late 2022, with a notable 7.9 per cent year-on-year increase in June 2025, according to the latest data from the General Authority for Statistics (GASTAT). The growth, fuelled by a robust recovery in manufacturing and a rise in crude output, signals continued momentum in the kingdom’s industrial sector and underscores the broader economic expansion that aligns with the country’s Vision 2030 diversification goals. Manufacturing and oil drive strong growth The Industrial Production Index (IPI) for June 2025 hit 111.9, up 1.6 per cent from the previous month. The rise was predominantly driven by a sharp rebound in manufacturing activities, which jumped by 11.1 per cent from the same month last year. The production of refined petroleum products and chemicals led the way, with the manufacture of coke and refined petroleum products soaring 15.3 per cent andchemicals rising 18.7 per cent. Mining and quarrying, which includes crude oil production, also saw significant growth, increasing by 6 per cent year-on-year. Saudi oil output reached 9.36 million barrels per day (bpd) in June, up from 8.83 million bpd in June 2024. The expansion in oil production comes as Saudi Arabia ramps up its output under the new OPEC+ supply policy, reversing a contraction seen in the first quarter of 2025. Non-oil sector shows continued strength In addition to the boost in oil-related activities, the kingdom's non-oil sector continues to play a pivotal role in driving economic growth. The non-oil segment of the industrial production index grew by 8.6 per cent in June 2025, further demonstrating Saudi Arabia's progress toward reducing its reliance on crude revenues. Notable gains were also recorded in utilities, including a 5.6 per cent increase in electricity, gas, steam, and air-conditioning supply, as well as a 6.9 per cent rise in water supply and waste management activities. This growth aligns with the broader economic trajectory, as Saudi Arabia’s gross domestic product (GDP) increased by nearly 4 per cent year-on-year in the second quarter, driven by both oil and non-oil activities. With continued investment in industrial diversification, Saudi Arabia is on track to meet its Vision 2030 targets, which aim to reduce the kingdom’s dependency on oil revenues. As global oil prices remain a key factor in Saudi Arabia’s fiscal health, the government’s focus on economic diversification is becoming increasingly critical. The kingdom's fiscal breakeven oil price stands at $96 per barrel, higher than in previous years, reflecting the evolving economic landscape. (With inputs from agencies)

The growth in Saudi's industrial production, fuelled by a robust recovery in manufacturing and a rise in crude output, signals continued momentum in the kingdom’s industrial sector and underscores the broader economic expansion that aligns with the country’s Vision 2030 diversification goals.

Saudi's industrial production soars to highest level since 2022

Amid US tariffs pressure, the iron ore prices rose in Asian trade on Monday after reports that several Chinese steel mills will temporarily halt production later this month to curb air pollution ahead of a key national event. According to a report by consultancy Mysteel, cited by Bloomberg, authorities have instructed some mills in Tangshan, China’s top steel-producing hub to stop operations from August 25. The move aims to ensure cleaner air for the September 3 military parade in Beijing, which is located nearby.<h2>Production cuts seen as market positive</h2>As per Bloomberg, futures for iron ore in Singapore gained as much as 1.6 per cent, extending a 2.1 per cent rise last week. Atilla Widnell, managing director at Navigate Commodities, told Bloomberg that such production cuts are being interpreted positively by domestic markets. Higher steel prices and improving profit margins, he said, are easing pressure on mills facing elevated costs. Widnell said that “Steel-production cuts have counter-intuitively been digested as a positive by onshore markets, given that increasing steel prices and margins are relieving pressure on a heavily suppressed cost base," as quoted by Bloomberg.&nbsp;&nbsp;Iron ore has been edging higher since the start of the year, with Beijing’s broader campaign against industrial overcapacity dubbed “anti-involution," supporting prices of steel and other industrial materials, as reported by Bloomberg. The policy has also boosted profitability at mills that have struggled with thin margins in recent years.<h2>Metals rally extends beyond iron ore</h2>As of 11:12 a.m. Singapore time, iron ore futures in Singapore were up 1.4 per cent at $103.50 a ton. Yuan-denominated contracts in Dalian also gained, alongside steel prices in Shanghai, as per Bloomberg.&nbsp;On the London Metal Exchange, most industrial commodities traded higher. Copper rose 0.2 per cent to $9,783 a ton, marking its fourth consecutive daily increase, Bloomberg data showed.&nbsp;(With inputs from the agencies)

Futures gained 1.6%, with production cuts seen positively, leading to higher steel prices and improved profit margins for mills amid ongoing market pressures.

Amid US tariffs pressure, the iron ore prices rose in Asian trade on Monday after reports that several Chinese steel mills will temporarily halt production later this month to curb air pollution ahead of a key national event. According to a report by consultancy Mysteel, cited by Bloomberg, authorities have instructed some mills in Tangshan, China’s top steel-producing hub to stop operations from August 25. The move aims to ensure cleaner air for the September 3 military parade in Beijing, which is located nearby. Production cuts seen as market positive As per Bloomberg, futures for iron ore in Singapore gained as much as 1.6 per cent, extending a 2.1 per cent rise last week. Atilla Widnell, managing director at Navigate Commodities, told Bloomberg that such production cuts are being interpreted positively by domestic markets. Higher steel prices and improving profit margins, he said, are easing pressure on mills facing elevated costs. Widnell said that “Steel-production cuts have counter-intuitively been digested as a positive by onshore markets, given that increasing steel prices and margins are relieving pressure on a heavily suppressed cost base," as quoted by Bloomberg. Iron ore has been edging higher since the start of the year, with Beijing’s broader campaign against industrial overcapacity dubbed “anti-involution," supporting prices of steel and other industrial materials, as reported by Bloomberg. The policy has also boosted profitability at mills that have struggled with thin margins in recent years. Metals rally extends beyond iron ore As of 11:12 a.m. Singapore time, iron ore futures in Singapore were up 1.4 per cent at $103.50 a ton. Yuan-denominated contracts in Dalian also gained, alongside steel prices in Shanghai, as per Bloomberg. On the London Metal Exchange, most industrial commodities traded higher. Copper rose 0.2 per cent to $9,783 a ton, marking its fourth consecutive daily increase, Bloomberg data showed. (With inputs from the agencies)

Iron ore prices rose in Asian trade as Chinese mills prepare to halt production to reduce air pollution for a military parade.

Iron ore prices climb as China orders temporary steel mill shutdowns

The European Central Bank (ECB) is expected to wait until December before making what economists believe will be its final interest rate cut in the current cycle, according to a Bloomberg survey.&nbsp;The findings mark a three-month delay compared with similar polling in July, as policymakers opt for more time to gauge the economic impact of trade disruptions triggered by US President Donald Trump’s tariff measures. Economists now see the ECB’s deposit rate falling to 1.75 per cent by year-end, remaining there for nine to ten months before rising again as demand picks up.<h2>Waiting for a clearer picture</h2>As per Bloomberg, delaying the move until the final meeting of 2025 would allow the ECB to assess how the eurozone economy fared in the third quarter,&nbsp;stripping out distortions from businesses rushing to beat US tariffs earlier this year. December’s meeting will also bring fresh growth and inflation forecasts extending to 2028, giving policymakers a longer-term view.&nbsp;Global central banks are also in a wait-and-watch mode. The US Federal Reserve has held rates steady throughout 2025 so far, while the Bank of England governor recently admitted there was “genuine uncertainty” over the timing of its next cut.<h2>Market bets shift</h2>The ECB kept rates unchanged last month, and several policymakers have since argued that further reductions are unnecessary for now. Traders have scaled back expectations for a September cut, pricing in just over a 50 per cent chance of a quarter-point move in December. Economists at TD Securities, Julie Ioffe and James Rossiter, told Bloomberg that only if data shows clear weakness from shifting global trade patterns would the ECB act sooner,&nbsp;and even then, December is the likeliest moment.&nbsp;If officials choose not to move at year-end, financial markets may conclude that the ECB has reached the floor for rates. A prior Bloomberg survey suggested traders would tolerate up to three consecutive meetings without action before assuming the rate cycle is over.&nbsp;(With inputs from the agencies)

Economists expect a drop to 1.75% by year-end. Global central banks, including the US Federal Reserve, are also maintaining steady rates amid uncertainty. Market expectations for a cut have shifted.

The European Central Bank (ECB) is expected to wait until December before making what economists believe will be its final interest rate cut in the current cycle, according to a Bloomberg survey. The findings mark a three-month delay compared with similar polling in July, as policymakers opt for more time to gauge the economic impact of trade disruptions triggered by US President Donald Trump’s tariff measures. Economists now see the ECB’s deposit rate falling to 1.75 per cent by year-end, remaining there for nine to ten months before rising again as demand picks up. Waiting for a clearer picture As per Bloomberg, delaying the move until the final meeting of 2025 would allow the ECB to assess how the eurozone economy fared in the third quarter, stripping out distortions from businesses rushing to beat US tariffs earlier this year. December’s meeting will also bring fresh growth and inflation forecasts extending to 2028, giving policymakers a longer-term view. Global central banks are also in a wait-and-watch mode. The US Federal Reserve has held rates steady throughout 2025 so far, while the Bank of England governor recently admitted there was “genuine uncertainty” over the timing of its next cut. Market bets shift The ECB kept rates unchanged last month, and several policymakers have since argued that further reductions are unnecessary for now. Traders have scaled back expectations for a September cut, pricing in just over a 50 per cent chance of a quarter-point move in December. Economists at TD Securities, Julie Ioffe and James Rossiter, told Bloomberg that only if data shows clear weakness from shifting global trade patterns would the ECB act sooner, and even then, December is the likeliest moment. If officials choose not to move at year-end, financial markets may conclude that the ECB has reached the floor for rates. A prior Bloomberg survey suggested traders would tolerate up to three consecutive meetings without action before assuming the rate cycle is over. (With inputs from the agencies)

The European Central Bank is likely to delay its final interest rate cut until December, as it assesses trade disruptions caused by US tariffs.

ECB likely to delay final rate cut of cycle until December

US President Donald Trump’s recent proposal to impose a 100 per cent tariff on chips and semiconductors may not achieve its intended goal of boosting advanced chip manufacturing in the United States, industry analysts warn. While the tariff would be waived for companies committing to build production facilities within the US, the policy fails to address deeper structural issues that are hindering the country’s ability to become a leader in cutting-edge chip production.<h2>Tariffs likely to have minimal impact</h2>The US has already seen major investments from global semiconductor giants, including Taiwan Semiconductor Manufacturing (TSMC) and South Korea’s Samsung Electronics, who are building multi-billion-dollar chip factories in Arizona and Texas, respectively. These projects, driven in part by previous US subsidies, aim to strengthen the domestic supply chain and reduce reliance on foreign-made chips. However, Trump’s tariffs may not spur additional investment, as many of these companies have already committed to US production in exchange for financial incentives.TSMC’s $165 billion investment in US manufacturing, for example, may help it avoid tariffs, but these efforts are unlikely to be expanded further due to the higher costs of production in the US. The company has already stated that the Arizona fabs will operate with older chip-making technology, underscoring the difficulty in competing with the more advanced processes employed at TSMC’s Taiwanese facilities. Experts note that, for some companies, the tariffs could result in a situation where the minimum amount of US investment is made to comply with the rules, while the majority of the chips are still produced abroad.<h2>Higher prices for consumers and electronics firms</h2>While the tariffs might encourage some companies to establish US-based operations, the broader implications could harm US consumers and companies relying on imported components. Electronics giants like Apple have already secured tariff exemptions through hefty investment pledges, but smaller firms may struggle with the added costs of tariffs on imported chips. Analysts warn that these costs could trickle down to consumers in the form of higher prices for electronics, such as smartphones, laptops, and even automobiles.Apple, for instance, has been a significant player in US chip manufacturing, relying on TSMC’s Arizona facilities for chip production. However, much of Apple’s investment, such as expanding data centres and server production, has little impact on advanced semiconductor manufacturing. Furthermore, much of Apple’s commitment to US-based production was already in progress before the tariff threat, suggesting that the tariffs themselves may not be the driving force behind its manufacturing decisions.<h2>Geopolitical factors and strategic supply chain investments</h2>Ultimately, it’s not the tariffs but broader geopolitical and economic factors that are driving chip manufacturers to establish operations in the US. The growing risks of political instability, particularly tensions with China and the possibility of conflicts in West Asia, have encouraged semiconductor companies to bring their supply chains closer to home. Additionally, subsidies like the 2022 Chips Act and US tax incentives for equipment purchases continue to be more effective at enticing foreign manufacturers to set up shop in the US than the tariff proposal itself.Industry experts argue that while the US may continue to see growth in domestic semiconductor production, this will be driven by economic incentives and geopolitical strategy, not tariffs. If the aim is to secure more advanced chip manufacturing in the US, the tariff regime proposed by Trump may fall short of its intended goals, creating more risks than rewards for the broader economy.&nbsp;(With inputs from agencies)

While the US tariffs might encourage some companies to establish US-based operations, the broader implications could harm US consumers and companies relying on imported components.

US President Donald Trump’s recent proposal to impose a 100 per cent tariff on chips and semiconductors may not achieve its intended goal of boosting advanced chip manufacturing in the United States, industry analysts warn. While the tariff would be waived for companies committing to build production facilities within the US, the policy fails to address deeper structural issues that are hindering the country’s ability to become a leader in cutting-edge chip production. Tariffs likely to have minimal impact The US has already seen major investments from global semiconductor giants, including Taiwan Semiconductor Manufacturing (TSMC) and South Korea’s Samsung Electronics, who are building multi-billion-dollar chip factories in Arizona and Texas, respectively. These projects, driven in part by previous US subsidies, aim to strengthen the domestic supply chain and reduce reliance on foreign-made chips. However, Trump’s tariffs may not spur additional investment, as many of these companies have already committed to US production in exchange for financial incentives. TSMC’s $165 billion investment in US manufacturing, for example, may help it avoid tariffs, but these efforts are unlikely to be expanded further due to the higher costs of production in the US. The company has already stated that the Arizona fabs will operate with older chip-making technology, underscoring the difficulty in competing with the more advanced processes employed at TSMC’s Taiwanese facilities. Experts note that, for some companies, the tariffs could result in a situation where the minimum amount of US investment is made to comply with the rules, while the majority of the chips are still produced abroad. Higher prices for consumers and electronics firms While the tariffs might encourage some companies to establish US-based operations, the broader implications could harm US consumers and companies relying on imported components. Electronics giants like Apple have already secured tariff exemptions through hefty investment pledges, but smaller firms may struggle with the added costs of tariffs on imported chips. Analysts warn that these costs could trickle down to consumers in the form of higher prices for electronics, such as smartphones, laptops, and even automobiles. Apple, for instance, has been a significant player in US chip manufacturing, relying on TSMC’s Arizona facilities for chip production. However, much of Apple’s investment, such as expanding data centres and server production, has little impact on advanced semiconductor manufacturing. Furthermore, much of Apple’s commitment to US-based production was already in progress before the tariff threat, suggesting that the tariffs themselves may not be the driving force behind its manufacturing decisions. Geopolitical factors and strategic supply chain investments Ultimately, it’s not the tariffs but broader geopolitical and economic factors that are driving chip manufacturers to establish operations in the US. The growing risks of political instability, particularly tensions with China and the possibility of conflicts in West Asia, have encouraged semiconductor companies to bring their supply chains closer to home. Additionally, subsidies like the 2022 Chips Act and US tax incentives for equipment purchases continue to be more effective at enticing foreign manufacturers to set up shop in the US than the tariff proposal itself. Industry experts argue that while the US may continue to see growth in domestic semiconductor production, this will be driven by economic incentives and geopolitical strategy, not tariffs. If the aim is to secure more advanced chip manufacturing in the US, the tariff regime proposed by Trump may fall short of its intended goals, creating more risks than rewards for the broader economy. (With inputs from agencies)

While the US tariffs might encourage some companies to establish US-based operations, the broader implications could harm US consumers and companies relying on imported components.

Trump’s tariff proposal risks harming US chip industry, experts say

Amid global tension on tariffs chaos, Pakistan and the United States are pressing forward with discussions on a new trade and investment framework, after Islamabad secured what it calls the lowest tariff rate among major South Asian economies. Speaking to Bloomberg TV, Pakistan’s Minister of State for Finance Bilal Azhar Kayani said that the Prime Minister Shehbaz Sharif’s government is seeking improved tariff terms on certain exports as part of the ongoing negotiations. The talks aim to finalise investment provisions alongside the trade deal, which was agreed in principle last month.<h2>Tariff win boosts Islamabad’s negotiating position</h2>As per Bloomberg, Pakistan reached the agreement with Washington at a 19 per cent tariff rate, lower than that of its regional peers. The development comes amid an upswing in bilateral relations, underscored by a rare meeting at the White House between US President Donald Trump and Pakistan’s army chief, General Asim Munir, who is making his second visit to the US in just a few months.<h2>Oil partnership on the horizon</h2>Announcing the trade pact last month, President Trump said the US would also work with Pakistan to tap what he described as the country’s “massive oil reserves.” According to Bloomberg, Washington is in the process of selecting a US oil company to lead the partnership.<h2>Strategic reset in ties</h2>The trade negotiations reflect a broader warming of the US–Pakistan relations after years of strained ties. Analysts see the tariff concession and potential energy cooperation as signs of a strategic reset, with Islamabad hoping to boost foreign investment and diversify its export markets.&nbsp;If finalised, the US agreement could mark one of Pakistan’s most significant economic wins in recent years, potentially opening the door for expanded trade flows, energy development, and deeper geopolitical engagement with Washington.&nbsp;(With inputs from the agencies)

The deal aims to enhance investment and trade, reflecting improved bilateral relations and potential energy cooperation. The trade negotiations reflect a broader warming of the US–Pakistan relations after years of strained ties. 

Amid global tension on tariffs chaos, Pakistan and the United States are pressing forward with discussions on a new trade and investment framework, after Islamabad secured what it calls the lowest tariff rate among major South Asian economies. Speaking to Bloomberg TV, Pakistan’s Minister of State for Finance Bilal Azhar Kayani said that the Prime Minister Shehbaz Sharif’s government is seeking improved tariff terms on certain exports as part of the ongoing negotiations. The talks aim to finalise investment provisions alongside the trade deal, which was agreed in principle last month. Tariff win boosts Islamabad’s negotiating position As per Bloomberg, Pakistan reached the agreement with Washington at a 19 per cent tariff rate, lower than that of its regional peers. The development comes amid an upswing in bilateral relations, underscored by a rare meeting at the White House between US President Donald Trump and Pakistan’s army chief, General Asim Munir, who is making his second visit to the US in just a few months. Oil partnership on the horizon Announcing the trade pact last month, President Trump said the US would also work with Pakistan to tap what he described as the country’s “massive oil reserves.” According to Bloomberg, Washington is in the process of selecting a US oil company to lead the partnership. Strategic reset in ties The trade negotiations reflect a broader warming of the US–Pakistan relations after years of strained ties. Analysts see the tariff concession and potential energy cooperation as signs of a strategic reset, with Islamabad hoping to boost foreign investment and diversify its export markets. If finalised, the US agreement could mark one of Pakistan’s most significant economic wins in recent years, potentially opening the door for expanded trade flows, energy development, and deeper geopolitical engagement with Washington. (With inputs from the agencies)

Pakistan and the US are negotiating a new trade and investment framework, with Islamabad securing a 19% tariff rate, the lowest in South Asia.

Pakistan, US in final stretch of trade deal talks after 19% tariff win

South Korea and Vietnam have set an ambitious target to nearly double their bilateral trade to $150 billion annually by 2030. The announcement was made during a high-profile summit between South Korean President Lee Jae Myung and Vietnamese Communist Party chief To Lam in Seoul on August 11. The two leaders emphasised the importance of their growing economic ties, particularly as both nations face challenges from global trade uncertainties, including US tariffs.President Lee highlighted that Vietnam is a “very important neighbouring country” for South Korea, not only for trade but also for security. “We agreed to accelerate the mutually beneficial economic cooperation that has served as a solid foundation for our bilateral relations,” Lee said. Lam’s visit marks the first by a foreign leader to South Korea since Lee took office in June, underscoring the strategic significance of their partnership.<h2>Key areas of collaboration and infrastructure development</h2>The two leaders discussed strengthening cooperation in key sectors, including critical minerals, national defence, and infrastructure development. South Korean companies, particularly in the fields of technology and heavy industry, are expected to play a crucial role in major Vietnamese projects such as city construction, high-speed railways, and nuclear power plants.Vietnam is already South Korea's largest investor, with over 10,000 registered investment projects worth a total of $94 billion. Bilateral trade between the two nations reached $81.5 billion in 2024, a 7.3 per cent year-over-year increase. The countries plan to sign at least 10 memoranda of understanding during this summit, covering areas such as nuclear and renewable energy, financial policies, and science and technology.<h2>Facing trade challenges amid US tariffs</h2>The growing trade ties between South Korea and Vietnam come at a time of heightened uncertainty due to recent US tariffs on both nations. The Trump administration has imposed a 15 per cent tariff on South Korean exports and a 20 per cent tariff on Vietnamese goods. Both countries are seeking ways to mitigate the impact of these tariffs, which have raised concerns about future business prospects.Despite these challenges, the strategic cooperation between the two countries is expected to remain strong. Vietnamese officials have pointed to an increasing focus on areas like semiconductors and artificial intelligence as new opportunities for collaboration. South Korean companies, such as Samsung Electronics, have long used Vietnam as a key export hub, benefiting from lower labour costs and favourable tax policies. The leadership summit is seen as a step toward solidifying these business relationships and fostering new investments in infrastructure and energy sectors.

South Korea and Vietnam plan to sign at least 10 memoranda of understanding during this summit, covering areas such as nuclear and renewable energy, financial policies, and science and technology.

South Korea and Vietnam have set an ambitious target to nearly double their bilateral trade to $150 billion annually by 2030. The announcement was made during a high-profile summit between South Korean President Lee Jae Myung and Vietnamese Communist Party chief To Lam in Seoul on August 11. The two leaders emphasised the importance of their growing economic ties, particularly as both nations face challenges from global trade uncertainties, including US tariffs. President Lee highlighted that Vietnam is a “very important neighbouring country” for South Korea, not only for trade but also for security. “We agreed to accelerate the mutually beneficial economic cooperation that has served as a solid foundation for our bilateral relations,” Lee said. Lam’s visit marks the first by a foreign leader to South Korea since Lee took office in June, underscoring the strategic significance of their partnership. Key areas of collaboration and infrastructure development The two leaders discussed strengthening cooperation in key sectors, including critical minerals, national defence, and infrastructure development. South Korean companies, particularly in the fields of technology and heavy industry, are expected to play a crucial role in major Vietnamese projects such as city construction, high-speed railways, and nuclear power plants. Vietnam is already South Korea's largest investor, with over 10,000 registered investment projects worth a total of $94 billion. Bilateral trade between the two nations reached $81.5 billion in 2024, a 7.3 per cent year-over-year increase. The countries plan to sign at least 10 memoranda of understanding during this summit, covering areas such as nuclear and renewable energy, financial policies, and science and technology. Facing trade challenges amid US tariffs The growing trade ties between South Korea and Vietnam come at a time of heightened uncertainty due to recent US tariffs on both nations. The Trump administration has imposed a 15 per cent tariff on South Korean exports and a 20 per cent tariff on Vietnamese goods. Both countries are seeking ways to mitigate the impact of these tariffs, which have raised concerns about future business prospects. Despite these challenges, the strategic cooperation between the two countries is expected to remain strong. Vietnamese officials have pointed to an increasing focus on areas like semiconductors and artificial intelligence as new opportunities for collaboration. South Korean companies, such as Samsung Electronics, have long used Vietnam as a key export hub, benefiting from lower labour costs and favourable tax policies. The leadership summit is seen as a step toward solidifying these business relationships and fostering new investments in infrastructure and energy sectors.

South Korea and Vietnam plan to sign at least 10 memoranda of understanding during this summit, covering areas such as nuclear and renewable energy, financial policies, and science and technology.

South Korea and Vietnam aim to boost bilateral trade to $150 billion by 2030

Indian equity markets opened the week on a cautious note, with the Nifty index logging its sixth consecutive week of declines and sentiment weighed down by weak earnings commentary and global trade uncertainty. As per Bloomberg, chart analysts are closely watching the 200-day moving average, now just within reach a level that could offer some technical support if it holds.&nbsp;As per Bloomberg, India’s electronics contract manufacturing sector is starting to show cracks, even before the full impact of US tariffs is felt. Bloomberg reports that PG Electroplast shocked investors on Friday by slashing both profit and revenue forecasts for the current fiscal year, citing weaker air-conditioner demand due to an early monsoon. The announcement sparked selling across the industry, with shares of Amber Enterprises, Syrma SGS, and Dixon Technologies coming under pressure.<h2>SBI cautious but confident</h2>State Bank of India, the country’s largest lender, delivered a mixed outlook. As per Bloomberg, while its June-quarter retail and corporate loan growth outpaced the industry average, management warned of short-term margin pressure and flagged the risk that US tariffs could slow investments and consumer spending. Even so, SBI remains upbeat about mortgage demand and corporate lending, projecting a recovery in net interest margins by the fourth quarter, Bloomberg noted.<h2>Hotels post strong metrics but lag in market</h2>India’s hospitality sector is reportedly maintaining steady operational performance with stable room rates, rising occupancy levels, and a robust expansion pipeline, particularly in smaller cities, according to Yes Securities data cited by Bloomberg. Yet, hotel stocks have underperformed the broader market this year, suggesting valuations already price in much of the sector’s growth potential.<h2>Tariff tensions weigh on India’s market position</h2>The escalating tariff standoff between US President Donald Trump and India is emerging as another headwind for investors. Bloomberg data shows that India’s equity market now trails China’s onshore market by $6.3 trillion, the widest gap since March and is on track for its biggest annual underperformance versus China since 2017. Analysts warn that unless trade tensions ease, India’s bid to position itself as the next global growth engine could face further setbacks.&nbsp;(With inputs from the agencies)

PG Electroplast profit forecast cut hurt electronics manufacturing. SBI has mixed signals with growth but warns of margin pressure. The hospitality sector performs steadily, yet underperforms market, while tariff tensions hinder India growth prospects.

Indian equity markets opened the week on a cautious note, with the Nifty index logging its sixth consecutive week of declines and sentiment weighed down by weak earnings commentary and global trade uncertainty. As per Bloomberg, chart analysts are closely watching the 200-day moving average, now just within reach a level that could offer some technical support if it holds. As per Bloomberg, India’s electronics contract manufacturing sector is starting to show cracks, even before the full impact of US tariffs is felt. Bloomberg reports that PG Electroplast shocked investors on Friday by slashing both profit and revenue forecasts for the current fiscal year, citing weaker air-conditioner demand due to an early monsoon. The announcement sparked selling across the industry, with shares of Amber Enterprises, Syrma SGS, and Dixon Technologies coming under pressure. SBI cautious but confident State Bank of India, the country’s largest lender, delivered a mixed outlook. As per Bloomberg, while its June-quarter retail and corporate loan growth outpaced the industry average, management warned of short-term margin pressure and flagged the risk that US tariffs could slow investments and consumer spending. Even so, SBI remains upbeat about mortgage demand and corporate lending, projecting a recovery in net interest margins by the fourth quarter, Bloomberg noted. Hotels post strong metrics but lag in market India’s hospitality sector is reportedly maintaining steady operational performance with stable room rates, rising occupancy levels, and a robust expansion pipeline, particularly in smaller cities, according to Yes Securities data cited by Bloomberg. Yet, hotel stocks have underperformed the broader market this year, suggesting valuations already price in much of the sector’s growth potential. Tariff tensions weigh on India’s market position The escalating tariff standoff between US President Donald Trump and India is emerging as another headwind for investors. Bloomberg data shows that India’s equity market now trails China’s onshore market by $6.3 trillion, the widest gap since March and is on track for its biggest annual underperformance versus China since 2017. Analysts warn that unless trade tensions ease, India’s bid to position itself as the next global growth engine could face further setbacks. (With inputs from the agencies)

Amid US tariffs tension, Indian equity markets showed caution, with Nifty declining for six weeks due to weak earnings and global trade uncertainty.

Indian electronics makers lose steam as US tariff risks loom

Asian markets showed modest gains on August 11 as investors remained cautious ahead of a key US inflation report and the looming deadline for a potential extension of US tariffs on Chinese exports. While Japan's stock market was closed for a holiday, futures indicated a positive outlook, with Japan’s Nikkei 225 pushing towards its all-time high of 42,426, suggesting possible gains for the week. Stock futures in Europe also climbed, with EUROSTOXX 50 futures rising 0.2 per cent, while FTSE and DAX futures edged up 0.1 per cent and 0.2 per cent, respectively. Market attention is firmly on the US consumer price index (CPI) report, expected on August 12. Analysts forecast a 0.3 per cent monthly rise in the core CPI, pushing the annual rate to 3.0 per cent, which is above the Federal Reserve's 2 per cent target. An upside surprise could challenge market expectations for a rate cut in September.<h2>Trade and geopolitical risks shape sentiment</h2>Amid these economic uncertainties, global trade and geopolitics remain in focus. A crucial deadline for US tariffs on Chinese imports is set for August 12, with widespread expectations that the deadline will be extended once again. Geopolitical tensions are also high, with US President Donald Trump and Russian President Vladimir Putin scheduled to meet in Alaska later this week to discuss the ongoing Ukraine conflict. Markets will closely watch these discussions for any potential developments regarding US sanctions on Russian oil exports.In Asia, South Korea’s market fluctuated as it digested the news that tech giants Nvidia and AMD have reportedly agreed to pay 15 per cent of their revenue from chip sales to China to the US government as part of securing export licences. Meanwhile, Chinese stocks saw a modest uptick, buoyed by consumer price inflation data that showed a slight increase in July. However, producer prices continued to decline, signalling ongoing weakness in the country’s manufacturing sector.<h2>Oil and commodity markets in focus</h2>Commodity markets saw mixed movements. Oil prices continued their downward trajectory, with Brent crude slipping 0.6 per cent to $66.22 per barrel, while US crude eased by 0.7 per cent to $63.44. The declines come amid speculation that US-Russia talks could lead to progress in resolving the Ukraine crisis and a potential easing of sanctions on Russian oil exports. In the gold market, futures steadied as traders awaited clarification from the US government regarding its tariff policy on gold imports, particularly from Switzerland.&nbsp;(With inputs from agencies)

Chinese stocks saw a modest uptick, buoyed by consumer price inflation data that showed a slight increase in July. However, producer prices continued to decline, signalling ongoing weakness in the country’s manufacturing sector.

Asian markets showed modest gains on August 11 as investors remained cautious ahead of a key US inflation report and the looming deadline for a potential extension of US tariffs on Chinese exports. While Japan's stock market was closed for a holiday, futures indicated a positive outlook, with Japan’s Nikkei 225 pushing towards its all-time high of 42,426, suggesting possible gains for the week. Stock futures in Europe also climbed, with EUROSTOXX 50 futures rising 0.2 per cent, while FTSE and DAX futures edged up 0.1 per cent and 0.2 per cent, respectively. Market attention is firmly on the US consumer price index (CPI) report, expected on August 12. Analysts forecast a 0.3 per cent monthly rise in the core CPI, pushing the annual rate to 3.0 per cent, which is above the Federal Reserve's 2 per cent target. An upside surprise could challenge market expectations for a rate cut in September. Trade and geopolitical risks shape sentiment Amid these economic uncertainties, global trade and geopolitics remain in focus. A crucial deadline for US tariffs on Chinese imports is set for August 12, with widespread expectations that the deadline will be extended once again. Geopolitical tensions are also high, with US President Donald Trump and Russian President Vladimir Putin scheduled to meet in Alaska later this week to discuss the ongoing Ukraine conflict. Markets will closely watch these discussions for any potential developments regarding US sanctions on Russian oil exports. In Asia, South Korea’s market fluctuated as it digested the news that tech giants Nvidia and AMD have reportedly agreed to pay 15 per cent of their revenue from chip sales to China to the US government as part of securing export licences. Meanwhile, Chinese stocks saw a modest uptick, buoyed by consumer price inflation data that showed a slight increase in July. However, producer prices continued to decline, signalling ongoing weakness in the country’s manufacturing sector. Oil and commodity markets in focus Commodity markets saw mixed movements. Oil prices continued their downward trajectory, with Brent crude slipping 0.6 per cent to $66.22 per barrel, while US crude eased by 0.7 per cent to $63.44. The declines come amid speculation that US-Russia talks could lead to progress in resolving the Ukraine crisis and a potential easing of sanctions on Russian oil exports. In the gold market, futures steadied as traders awaited clarification from the US government regarding its tariff policy on gold imports, particularly from Switzerland. (With inputs from agencies)

Chinese stocks saw a modest uptick, buoyed by consumer price inflation data that showed a slight increase in July. However, producer prices continued to decline, signalling ongoing weakness in the country’s manufacturing sector.

Asian markets edge higher ahead of key US economic data and trade developments

Nvidia and AMD, the leading American semiconductor firms, are reportedly going to hand over 15 per cent of their revenues from Artificial Intelligence chip sales from China to the US government. This is unprecedented if true, and is sure to stun both the business and political leaderships across the world. Why is it a strange deal? Find out below:&nbsp;<h2>What's the 15 per cent revenue deal of Nvidia and AMD with US govt?</h2>

If media reports are to be believed, the chipmaking leaders will hand over 15 per cent of their China chip revenue to the US government. It's not a tax or a fine, but just a ‘deal’ to make sure they are allowed to keep selling certain AI chips to China.That's important for them, because they desperately want to export to China, which the US government has been restricting.&nbsp;The never-before deal will likely allow them to continue with China exports, a sort of "pay-to-play' arrangement in a legal grey zone.<h2>Nvidia - AMD deal with US : Why is it strange?</h2>This is an instance of the US government not just regulating but also profiteering. It’s going to take a cut of private business like a silent shareholder, something relatively unheard of in American capitalism.Critics say the ‘arrangement’ looks more like a cash grab than a security safeguard.This extra cost may be baked into the price of the chips, which might make Chinese buyers look elsewhere or speed up their own domestic chip production.<h2>Nvidia-AMD payments: Is it a deal with Trump’s fingerprints?</h2>The deal was reportedly hammered out during Donald Trump’s meetings with tech giants, with Nvidia’s CEO meeting the US president directly. The whole thing is causing questions of a “quid pro quo.”<h2>Why Nvidia-AMD payment news is a dangerous new precedent</h2>With the deal, Nvidia and AMD can potentially stay in the massive Chinese market, albeit with more red tape, higher compliance costs, and public and regulatory scrutiny.For the US government, it is a way to make money off tech exports while keeping China in check.&nbsp;For China, the move could push it to double down on homegrown AI chip technology, cutting out US firms altogether in the future.Other countries might also copy this model, thus turning the global tech industry in the age of AI into a battlefield of profit-sharing and protectionism.<a href="https://www.wionews.com/videos/tech-giant-nvidia-releases-a-statement-denying-the-existence-of-kill-switch-in-ai-chips-1754502261887/embed">https://www.wionews.com/videos/tech-giant-nvidia-releases-a-statement-denying-the-existence-of-kill-switch-in-ai-chips-1754502261887/embed</a><h2>Shakedown in a suit: Why the Nvidia-AMD China deal is raising fears&nbsp;</h2>This 15 per cent deal isn’t just unusual, it’s a game-changer as the US government is acting like a business partner in private tech sales. Critics say it’s a shakedown in a suit, blurring the lines between national security and national profit, with some feeling it could even be unconstituional.&nbsp;

The never-before deal will likely allow them to continue with China exports, a sort of "pay-to-play' arrangement in a legal grey zone.

Nvidia and AMD, the leading American semiconductor firms, are reportedly going to hand over 15 per cent of their revenues from Artificial Intelligence chip sales from China to the US government. This is unprecedented if true, and is sure to stun both the business and political leaderships across the world. Why is it a strange deal? Find out below: What's the 15 per cent revenue deal of Nvidia and AMD with US govt?

The never-before deal will likely allow them to continue with China exports, a sort of "pay-to-play' arrangement in a legal grey zone.

Strange times, stranger deals: Why Nvidia, AMD plan to give 15 per cent China revenue to Trump govt is as weird as it gets

US chipmakers Nvidia and AMD have agreed to hand over 15 per cent of their revenues from sales of certain advanced artificial intelligence chips to China, as a condition for obtaining export licences, according to a US official quoted by Reuters. The arrangement covers products such as Nvidia’s H20 chips and AMD’s MI308 processors, high-performance semiconductors designed for AI applications. The Financial Times first reported the deal on Sunday, saying the Trump administration has yet to decide how the collected funds will be used.<h2>Sales ban lifted after April halt</h2>In April, Washington halted sales of Nvidia’s H20 chips to China over export control concerns. However, Reuters reports that the US government last month gave Nvidia the green light to resume sales, with deliveries expected to begin soon. The Commerce Department began issuing export licences for the H20 last week.&nbsp;A Nvidia spokesperson told Reuters the company “follows rules the US government sets for our participation in worldwide markets” and expressed hope that export control rules would allow America to “compete in China and worldwide.” AMD did not comment on the report.<h2>Balancing national security and market access</h2>The unusual revenue-sharing requirement has drawn mixed reactions. Geoff Gertz, a senior fellow at the Center for New American Security, told Reuters the policy seemed contradictory: “Either selling H20 chips to China is a national security risk, in which case we shouldn’t be doing it, or it’s not, in which case why are we putting this extra penalty on the sale?” Commerce Secretary Howard Lutnick has defended the move, calling it part of broader US–China negotiations over access to rare earths.&nbsp;In an interview with CNBC last month, Lutnick described the H20 as Nvidia’s “fourth-best chip” and said it was in US interests for Chinese companies to use American technology, even if the most advanced designs remain banned from export. A US official told Reuters the administration does not view the sale of H20 or similar chips as a compromise to national security. However, critics like Alasdair Phillips-Robins, a former adviser at the Commerce Department during Joe Biden’s presidency, argue the deal trades away “national security protections for revenue for the Treasury.”<h2>AI chip sales remain a geopolitical flashpoint</h2>The export of high-end semiconductors to China remains a core battleground in US–China trade and tech relations. While Washington has tightened restrictions on the most advanced AI chips, it is also seeking to maintain market share for American firms in China’s lucrative technology sector.With the 15 per cent revenue arrangement now in place, the Trump administration is attempting to walk a fine line, leveraging technology access for strategic gains, while keeping a close eye on national security thresholds.&nbsp;(With inputs from the agencies)&nbsp;

Sales were previously halted in April but have resumed. The revenue-sharing requirement is mixed, with concerns over national security. Critics argue it compromises protections for Treasury gains while the US aims to balance tech access and security in ongoing US-China relations.

US chipmakers Nvidia and AMD have agreed to hand over 15 per cent of their revenues from sales of certain advanced artificial intelligence chips to China, as a condition for obtaining export licences, according to a US official quoted by Reuters. The arrangement covers products such as Nvidia’s H20 chips and AMD’s MI308 processors, high-performance semiconductors designed for AI applications. The Financial Times first reported the deal on Sunday, saying the Trump administration has yet to decide how the collected funds will be used. Sales ban lifted after April halt In April, Washington halted sales of Nvidia’s H20 chips to China over export control concerns. However, Reuters reports that the US government last month gave Nvidia the green light to resume sales, with deliveries expected to begin soon. The Commerce Department began issuing export licences for the H20 last week. A Nvidia spokesperson told Reuters the company “follows rules the US government sets for our participation in worldwide markets” and expressed hope that export control rules would allow America to “compete in China and worldwide.” AMD did not comment on the report. Balancing national security and market access The unusual revenue-sharing requirement has drawn mixed reactions. Geoff Gertz, a senior fellow at the Center for New American Security, told Reuters the policy seemed contradictory: “Either selling H20 chips to China is a national security risk, in which case we shouldn’t be doing it, or it’s not, in which case why are we putting this extra penalty on the sale?” Commerce Secretary Howard Lutnick has defended the move, calling it part of broader US–China negotiations over access to rare earths. In an interview with CNBC last month, Lutnick described the H20 as Nvidia’s “fourth-best chip” and said it was in US interests for Chinese companies to use American technology, even if the most advanced designs remain banned from export. A US official told Reuters the administration does not view the sale of H20 or similar chips as a compromise to national security. However, critics like Alasdair Phillips-Robins, a former adviser at the Commerce Department during Joe Biden’s presidency, argue the deal trades away “national security protections for revenue for the Treasury.” AI chip sales remain a geopolitical flashpoint The export of high-end semiconductors to China remains a core battleground in US–China trade and tech relations. While Washington has tightened restrictions on the most advanced AI chips, it is also seeking to maintain market share for American firms in China’s lucrative technology sector. With the 15 per cent revenue arrangement now in place, the Trump administration is attempting to walk a fine line, leveraging technology access for strategic gains, while keeping a close eye on national security thresholds. (With inputs from the agencies)

US chipmakers Nvidia and AMD will give 15% of revenue from certain AI chip sales to China for export licenses. This includes Nvidia’s H20 and AMD’s MI308 chips.

Nvidia, AMD to pay US 15% of China AI chip sales under export deal

China, the world’s largest importer of soybeans, is undergoing a strategic shift in its agricultural trade practices, largely in response to a domestic glut of soybean oil and intensifying trade tensions with the United States. Once reliant on American soybeans, China is now exploring alternative supply chains to reduce its dependence on US imports, a trend that marks a significant departure from long-established trade flows. In the first half of 2024, China exported a surprising 127,000 tonnes of soybean oil, already surpassing full-year expectations. These exports, primarily bound for markets in South Korea, Malaysia, and India, are a response to domestic overproduction.&nbsp;Rising global demand for biofuels, particularly in the US, has boosted soybean oil prices, allowing China to capitalise on surplus stock while meeting the needs of its own biodiesel market. At the same time, China is increasingly turning to soybean meal imports from Argentina, testing deliveries for the first time after years of trade disruptions. This shift in China’s soybean strategy reflects broader economic concerns. As Chinese consumers cut back on dining out and livestock demand wanes, the country is looking to find ways to streamline its imports and avoid future disruptions linked to ongoing trade conflicts with Washington.<h2>US soybean exports hit hard by Chinese pivot</h2>The US, once the dominant supplier of soybeans to China, now faces a dramatic decline in market share. In 2009, the US accounted for 51 per cent of China's soybean imports. By 2024, this share has fallen to just 21 per cent, as Beijing turns to Brazil and Argentina for more competitive alternatives. The shift comes as China seeks to mitigate risks associated with potential trade wars, especially following the strained relationship between Washington and Beijing during the Trump administration.In 2024, Chinese processors are notably bypassing US soybeans entirely, with no cargoes booked for February and March 2025. Instead, Brazil’s production, set to reach 169.3 million tonnes, and Argentina’s growing share, projected at 4.1 million tonnes, are filling the void. Brazil’s infrastructure investments, such as the $2.5 billion modernisation of the Port of Santos, and Argentina's move to reduce export tariffs have positioned these countries as formidable competitors, threatening the US soybean market’s long-term viability.<h2>The impact on agribusiness and investment strategies</h2>This shift is not only reshaping global soy trade but also creating new opportunities and risks for agribusinesses and investors. US agribusinesses are looking to Southeast Asia and renewable fuels to offset losses from China, but this will likely not fully recover the lost market share. Brazilian agribusinesses, benefiting from lower production costs and a favourable exchange rate, are in a strong position, though they face potential regulatory risks from the European Union’s new deforestation laws, set to take effect in late 2025.Argentina’s agribusiness sector, despite facing internal challenges such as inflation and currency volatility, remains a key player. However, its ability to maintain growth hinges on improving its domestic economic situation and port efficiency. For investors, the key will be diversification, hedging against geopolitical risks, volatility in soybean markets, and supply chain disruptions. Opportunities include investing in Brazilian infrastructure or targeting US firms that are tapping into renewable fuel markets.&nbsp;(With inputs from agencies)

The shift in China’s soybean strategy reflects broader economic concerns. As Chinese consumers cut back on dining out and livestock demand wanes, the country is looking to find ways to streamline its imports and avoid future disruptions linked to ongoing trade conflicts with Washington.

China, the world’s largest importer of soybeans, is undergoing a strategic shift in its agricultural trade practices, largely in response to a domestic glut of soybean oil and intensifying trade tensions with the United States. Once reliant on American soybeans, China is now exploring alternative supply chains to reduce its dependence on US imports, a trend that marks a significant departure from long-established trade flows. In the first half of 2024, China exported a surprising 127,000 tonnes of soybean oil, already surpassing full-year expectations. These exports, primarily bound for markets in South Korea, Malaysia, and India, are a response to domestic overproduction. Rising global demand for biofuels, particularly in the US, has boosted soybean oil prices, allowing China to capitalise on surplus stock while meeting the needs of its own biodiesel market. At the same time, China is increasingly turning to soybean meal imports from Argentina, testing deliveries for the first time after years of trade disruptions. This shift in China’s soybean strategy reflects broader economic concerns. As Chinese consumers cut back on dining out and livestock demand wanes, the country is looking to find ways to streamline its imports and avoid future disruptions linked to ongoing trade conflicts with Washington. US soybean exports hit hard by Chinese pivot The US, once the dominant supplier of soybeans to China, now faces a dramatic decline in market share. In 2009, the US accounted for 51 per cent of China's soybean imports. By 2024, this share has fallen to just 21 per cent, as Beijing turns to Brazil and Argentina for more competitive alternatives. The shift comes as China seeks to mitigate risks associated with potential trade wars, especially following the strained relationship between Washington and Beijing during the Trump administration. In 2024, Chinese processors are notably bypassing US soybeans entirely, with no cargoes booked for February and March 2025. Instead, Brazil’s production, set to reach 169.3 million tonnes, and Argentina’s growing share, projected at 4.1 million tonnes, are filling the void. Brazil’s infrastructure investments, such as the $2.5 billion modernisation of the Port of Santos, and Argentina's move to reduce export tariffs have positioned these countries as formidable competitors, threatening the US soybean market’s long-term viability. The impact on agribusiness and investment strategies This shift is not only reshaping global soy trade but also creating new opportunities and risks for agribusinesses and investors. US agribusinesses are looking to Southeast Asia and renewable fuels to offset losses from China, but this will likely not fully recover the lost market share. Brazilian agribusinesses, benefiting from lower production costs and a favourable exchange rate, are in a strong position, though they face potential regulatory risks from the European Union’s new deforestation laws, set to take effect in late 2025. Argentina’s agribusiness sector, despite facing internal challenges such as inflation and currency volatility, remains a key player. However, its ability to maintain growth hinges on improving its domestic economic situation and port efficiency. For investors, the key will be diversification, hedging against geopolitical risks, volatility in soybean markets, and supply chain disruptions. Opportunities include investing in Brazilian infrastructure or targeting US firms that are tapping into renewable fuel markets. (With inputs from agencies)

The shift in China’s soybean strategy reflects broader economic concerns. As Chinese consumers cut back on dining out and livestock demand wanes, the country is looking to find ways to streamline its imports and avoid future disruptions linked to ongoing trade conflicts with Washington.

China reshapes soybean trade amid economic slump and rising tensions with the US

Gold futures in New York held steady on Monday as markets awaited a formal clarification from the White House over its tariff policy, after a surprise US ruling last week rattled the bullion trade. According to Bloomberg, a US government agency stunned traders by formally ruling that 100-ounce and one-kilogram gold bars would be subject to import duties, a move that sent futures prices surging to a record on Friday before erasing most of those gains. The administration later told Bloomberg it would issue a statement to address what it called “misinformation” about duties on gold and other specialty products.<h2>Price gap between New York and London narrows</h2>On Monday, futures were trading about $65 an ounce above the global spot benchmark, with the premium narrowing to under $60 after briefly topping $100 last week. The sudden spike in the gap between New York and London trading hubs highlighted how sensitive global bullion flows are to US trade policy.&nbsp;Washington had exempted gold from tariffs back in April, and traders say the uncertainty over whether that exemption still stands is keeping the market on edge. Analysts warn that any prolonged ambiguity could disrupt the smooth functioning of US gold futures contracts.<h2>Industry calls for stability</h2>As quoted by Bloomberg, Joseph Cavatoni, senior market strategist for North America at the World Gold Council, said the gold market was “behaving in an orderly manner” while awaiting clarity, adding that the Council would continue monitoring developments and update its research once more information is available.&nbsp;The precious metal has gained nearly 30 per cent so far this year, with most of the rally occurring in the first four months as geopolitical tensions and trade disputes boosted demand for safe-haven assets. Prices ended Friday within about $100 of April’s all-time high.<h2>Eyes on US inflation data</h2>Traders are also looking to Tuesday’s US inflation print for fresh cues on interest rate policy. Bloomberg reports that economists expect core consumer prices, excluding food and energy to have risen 0.3 per cent in July, up from 0.2 per cent in June.&nbsp;The Federal Reserve has resisted President Donald Trump’s calls to ease monetary policy, balancing concerns over a cooling job market with the challenge of still-elevated inflation. Lower interest rates typically benefit gold, which does not yield interest.Spot gold eased 0.1 per cent to $3,394.13 an ounce in Singapore trade at 7:46 a.m., while the Bloomberg Dollar Spot Index slipped 0.1 per cent.Silver fell, while platinum saw slight gains.&nbsp;(With inputs from the agencies)

The price gap between New York and London narrowed, with futures trading about $65 an ounce above the spot benchmark. Analysts urge for clarity, as uncertainty disrupts market stability. Traders look forward to US inflation data for cues on interest rate policy.

Gold futures in New York held steady on Monday as markets awaited a formal clarification from the White House over its tariff policy, after a surprise US ruling last week rattled the bullion trade. According to Bloomberg, a US government agency stunned traders by formally ruling that 100-ounce and one-kilogram gold bars would be subject to import duties, a move that sent futures prices surging to a record on Friday before erasing most of those gains. The administration later told Bloomberg it would issue a statement to address what it called “misinformation” about duties on gold and other specialty products. Price gap between New York and London narrows On Monday, futures were trading about $65 an ounce above the global spot benchmark, with the premium narrowing to under $60 after briefly topping $100 last week. The sudden spike in the gap between New York and London trading hubs highlighted how sensitive global bullion flows are to US trade policy. Washington had exempted gold from tariffs back in April, and traders say the uncertainty over whether that exemption still stands is keeping the market on edge. Analysts warn that any prolonged ambiguity could disrupt the smooth functioning of US gold futures contracts. Industry calls for stability As quoted by Bloomberg, Joseph Cavatoni, senior market strategist for North America at the World Gold Council, said the gold market was “behaving in an orderly manner” while awaiting clarity, adding that the Council would continue monitoring developments and update its research once more information is available. The precious metal has gained nearly 30 per cent so far this year, with most of the rally occurring in the first four months as geopolitical tensions and trade disputes boosted demand for safe-haven assets. Prices ended Friday within about $100 of April’s all-time high. Eyes on US inflation data Traders are also looking to Tuesday’s US inflation print for fresh cues on interest rate policy. Bloomberg reports that economists expect core consumer prices, excluding food and energy to have risen 0.3 per cent in July, up from 0.2 per cent in June. The Federal Reserve has resisted President Donald Trump’s calls to ease monetary policy, balancing concerns over a cooling job market with the challenge of still-elevated inflation. Lower interest rates typically benefit gold, which does not yield interest. Spot gold eased 0.1 per cent to $3,394.13 an ounce in Singapore trade at 7:46 a.m., while the Bloomberg Dollar Spot Index slipped 0.1 per cent.Silver fell, while platinum saw slight gains. (With inputs from the agencies)

Gold futures in New York remained steady as markets awaited clarification from the White House on tariff policies following a surprising ruling that imposed import duties on certain gold bars.

Gold market holds steady as traders await US tariff clarity

Ahead of a potential summit between US President Donald Trump and Chinese President Xi Jinping, China is reportedly pushing the United States to ease export restrictions on critical artificial intelligence (AI) components, specifically high-bandwidth memory (HBM) chips. The Financial Times reported on Sunday that Chinese officials have raised this issue in trade talks with US experts, seeking to relax the restrictions imposed by Washington on HBM exports to China. HBM chips are integral to the rapid processing of data-heavy AI tasks, enabling advanced AI chipsets to function at scale. China’s push for access to these chips comes as Chinese tech giants like Huawei struggle to develop their own AI chips in the face of US export controls. These restrictions, which were escalated in 2024 under President Joe Biden’s administration, have hindered the growth of Chinese companies in both the AI and semiconductor sectors.<h2>Impact of US export controls on China’s AI progress</h2>Since 2022, successive US administrations have imposed increasingly stringent controls on the export of advanced chips to China, citing national security concerns over Beijing’s AI and defence ambitions. In particular, the Biden administration’s 2024 ban on the export of HBM chips to China has dealt a significant blow to Chinese efforts to develop sophisticated AI chips at scale. The controls also affect major Chinese tech companies like Huawei and Semiconductor Manufacturing International Corporation (SMIC), which rely on access to such components to compete globally.Chinese officials have argued that these restrictions are unfair and impede their legitimate access to the global market. In discussions with US negotiators, China has reportedly emphasised the critical nature of HBM chips for the development of its AI capabilities, noting that these chips are indispensable for combining memory and logic components in AI chip production. The recent focus on HBM controls has intensified as Beijing seeks to gain a strategic advantage in the global AI race.<h2>Concerns in Washington over potential relaxation of export controls</h2>The push for relaxed HBM controls comes as President Trump prepares for a possible summit with President Xi. However, many in Washington are concerned that such a move could benefit Chinese companies like Huawei and SMIC by enabling them to produce more AI chips, potentially giving them an edge over US competitors such as Nvidia. Some experts have warned that relaxing these controls could open the floodgates for China to rapidly scale its AI chip production and disrupt the US semiconductor market.AI experts cautioned that lifting the HBM ban would effectively assist Chinese companies in replacing US chipmakers in the AI sector. And relaxing these controls would be a gift to Huawei and SMIC. The growing scrutiny on companies like Nvidia, which has been selling gaming chips to China, also raises concerns over potential loopholes in US export control enforcement. Despite these chips not being marketed for AI, Chinese companies have reportedly found ways to repurpose them for AI applications. US lawmakers, such as John Moolenaar, have called for stronger enforcement to prevent the smuggling of advanced chips into China.&nbsp;(With inputs from agencies)

Chinese officials have argued that these restrictions are unfair and impede their legitimate access to the global market. In discussions with US negotiators, China has reportedly emphasised the critical nature of HBM chips for the development of its AI capabilities.

Ahead of a potential summit between US President Donald Trump and Chinese President Xi Jinping, China is reportedly pushing the United States to ease export restrictions on critical artificial intelligence (AI) components, specifically high-bandwidth memory (HBM) chips. The Financial Times reported on Sunday that Chinese officials have raised this issue in trade talks with US experts, seeking to relax the restrictions imposed by Washington on HBM exports to China. HBM chips are integral to the rapid processing of data-heavy AI tasks, enabling advanced AI chipsets to function at scale. China’s push for access to these chips comes as Chinese tech giants like Huawei struggle to develop their own AI chips in the face of US export controls. These restrictions, which were escalated in 2024 under President Joe Biden’s administration, have hindered the growth of Chinese companies in both the AI and semiconductor sectors. Impact of US export controls on China’s AI progress Since 2022, successive US administrations have imposed increasingly stringent controls on the export of advanced chips to China, citing national security concerns over Beijing’s AI and defence ambitions. In particular, the Biden administration’s 2024 ban on the export of HBM chips to China has dealt a significant blow to Chinese efforts to develop sophisticated AI chips at scale. The controls also affect major Chinese tech companies like Huawei and Semiconductor Manufacturing International Corporation (SMIC), which rely on access to such components to compete globally. Chinese officials have argued that these restrictions are unfair and impede their legitimate access to the global market. In discussions with US negotiators, China has reportedly emphasised the critical nature of HBM chips for the development of its AI capabilities, noting that these chips are indispensable for combining memory and logic components in AI chip production. The recent focus on HBM controls has intensified as Beijing seeks to gain a strategic advantage in the global AI race. Concerns in Washington over potential relaxation of export controls The push for relaxed HBM controls comes as President Trump prepares for a possible summit with President Xi. However, many in Washington are concerned that such a move could benefit Chinese companies like Huawei and SMIC by enabling them to produce more AI chips, potentially giving them an edge over US competitors such as Nvidia. Some experts have warned that relaxing these controls could open the floodgates for China to rapidly scale its AI chip production and disrupt the US semiconductor market. AI experts cautioned that lifting the HBM ban would effectively assist Chinese companies in replacing US chipmakers in the AI sector. And relaxing these controls would be a gift to Huawei and SMIC. The growing scrutiny on companies like Nvidia, which has been selling gaming chips to China, also raises concerns over potential loopholes in US export control enforcement. Despite these chips not being marketed for AI, Chinese companies have reportedly found ways to repurpose them for AI applications. US lawmakers, such as John Moolenaar, have called for stronger enforcement to prevent the smuggling of advanced chips into China. (With inputs from agencies)

Chinese officials have argued that these restrictions are unfair and impede their legitimate access to the global market. In discussions with US negotiators, China has reportedly emphasised the critical nature of HBM chips for the development of its AI capabilities.

China seeks relaxation of AI chip export controls ahead of US-China trade talks

Oil prices fell in early Asian trade on Monday, extending last week’s sharp losses, as global markets weighed higher US tariffs, an OPEC output increase, and rising hopes for a Ukraine ceasefire deal. Brent crude futures slipped 52 cents, or 0.78 per cent, to $66.07 a barrel by 0041 GMT, while US West Texas Intermediate (WTI) crude dropped 58 cents to $63.30. The decline comes after Brent lost 4.4 per cent and WTI shed 5.1 per cent over the week ended Friday, dragged lower by a gloomy economic outlook, as per Reuters.<h2>Ceasefire hopes and sanctions impact</h2>According to Reuters, expectations have grown that sanctions limiting the supply of Russian oil to global markets could soon be eased. This follows US President Donald Trump’s announcement on Friday that he will meet Russian President Vladimir Putin in Alaska on August 15 to negotiate an end to the Ukraine war.&nbsp;Trump has warned Moscow that if no peace deal is reached, its oil buyers could face secondary sanctions. At the same time, Washington is pressing India to scale back Russian crude purchases. The White House has also indicated that penalties on Russia could be tightened if talks fail.<h2>Tariffs and inflation risks weigh on demand</h2>The market downturn has also been fuelled by Trump’s new import tariffs, which took effect on Thursday. These duties target dozens of countries and are expected to disrupt supply chains, push up inflation, and slow economic activity.&nbsp;In parallel, OPEC’s latest output hike has added pressure to crude prices, with the combination of higher supply and weaker demand expectations reinforcing the bearish sentiment.<h2>Key US inflation data ahead</h2>Traders are now focused on US inflation figures due Tuesday, which could influence the Federal Reserve’s interest rate outlook. As quoted by Reuters, IG market analyst Tony Sycamore noted that a weaker-than-expected Consumer Price Index (CPI) reading would boost expectations for earlier and deeper Fed rate cuts, potentially stimulating economic activity and supporting oil demand. Conversely, a hotter print could raise stagflation fears and delay policy easing.&nbsp;With geopolitical talks and economic data converging this week, oil prices are expected to remain volatile as markets balance hopes of a Ukraine peace pact against the drag from tariffs and output increases.&nbsp;(With inputs from the agencies)

Market sentiment remains bearish due to geopolitical tensions, economic forecasts, and upcoming US inflation data, which are influencing demand.

Oil prices fell in early Asian trade on Monday, extending last week’s sharp losses, as global markets weighed higher US tariffs, an OPEC output increase, and rising hopes for a Ukraine ceasefire deal. Brent crude futures slipped 52 cents, or 0.78 per cent, to $66.07 a barrel by 0041 GMT, while US West Texas Intermediate (WTI) crude dropped 58 cents to $63.30. The decline comes after Brent lost 4.4 per cent and WTI shed 5.1 per cent over the week ended Friday, dragged lower by a gloomy economic outlook, as per Reuters. Ceasefire hopes and sanctions impact According to Reuters, expectations have grown that sanctions limiting the supply of Russian oil to global markets could soon be eased. This follows US President Donald Trump’s announcement on Friday that he will meet Russian President Vladimir Putin in Alaska on August 15 to negotiate an end to the Ukraine war. Trump has warned Moscow that if no peace deal is reached, its oil buyers could face secondary sanctions. At the same time, Washington is pressing India to scale back Russian crude purchases. The White House has also indicated that penalties on Russia could be tightened if talks fail. Tariffs and inflation risks weigh on demand The market downturn has also been fuelled by Trump’s new import tariffs, which took effect on Thursday. These duties target dozens of countries and are expected to disrupt supply chains, push up inflation, and slow economic activity. In parallel, OPEC’s latest output hike has added pressure to crude prices, with the combination of higher supply and weaker demand expectations reinforcing the bearish sentiment. Key US inflation data ahead Traders are now focused on US inflation figures due Tuesday, which could influence the Federal Reserve’s interest rate outlook. As quoted by Reuters, IG market analyst Tony Sycamore noted that a weaker-than-expected Consumer Price Index (CPI) reading would boost expectations for earlier and deeper Fed rate cuts, potentially stimulating economic activity and supporting oil demand. Conversely, a hotter print could raise stagflation fears and delay policy easing. With geopolitical talks and economic data converging this week, oil prices are expected to remain volatile as markets balance hopes of a Ukraine peace pact against the drag from tariffs and output increases. (With inputs from the agencies)

Oil prices dropped in early Asian trade, extending last week’s losses amidst higher US tariffs, an OPEC output increase, and rising ceasefire hopes in Ukraine. Brent crude fell to $66.07, and WTI dropped to $63.30.

Oil prices slide as markets eye US–Russia Ukraine peace talks

US Federal Reserve Governor Michelle Bowman has called for three interest-rate cuts this year, signalling growing concern inside the central bank over weakening job growth and softening demand. Speaking at the Kansas Bankers Association in Colorado Springs on Saturday, Bowman, a 2018 Trump appointee said recent weak labour-market data had reinforced her view that policy easing was now necessary. According to Bloomberg, she urged the Fed to start cutting at its next meeting in September to “avoid unnecessary erosion” in employment and prevent a larger policy correction later.<h2>From rate-hold supporter to early cut advocate</h2>The Fed has kept interest rates unchanged through the first half of 2025, a stance Bowman backed until June. But in July, she broke ranks alongside fellow Governor Christopher Waller, voting for a quarter-point cut. Her shift comes as the US job market shows signs of strain. Data from the Bureau of Labor Statistics showed employers added just 73,000 jobs in July, well below expectations, with prior months’ gains revised down by nearly 260,000.&nbsp;&nbsp;The unemployment rate also ticked up to 4.2 per cent from 4.1 per cent in June. Three other Fed policymakers, San Francisco’s Mary Daly, Minneapolis’ Neel Kashkari and Governor Lisa Cook have also voiced concerns about the cooling labour market in recent days, hinting they may support a September cut.<h2>Tariffs unlikely to stoke lasting inflation</h2>Bowman also addressed the inflation outlook, saying tariff-driven price rises, a major factor under President Donald Trump’s trade policies were unlikely to cause persistent inflation pressures. “With underlying inflation on a sustained trajectory toward 2 per cent, softness in aggregate demand and signs of fragility in the labour market, I think we should focus on risks to our employment mandate,” she said, as quoted by Bloomberg.&nbsp;Her comments reflect a broader view among some policymakers that the Fed can ease rates without jeopardising price stability, particularly if tariffs don’t trigger lasting inflationary effects.<h2>Spotlight on community banks</h2>Bowman used part of her remarks to announce an October 9 conference on community banking, aimed at exploring reforms to the capital framework for smaller lenders. She has long argued that community banks, which support local economies but have been losing market share to larger institutions, face unique challenges that merit tailored regulation. She pointed to possible changes to the community bank leverage ratio, a simpler capital requirement designed as an alternative to risk-based measures.&nbsp;Bowman, a former community banker herself, said she wants to make the ratio more attractive so more lenders adopt it, and to reshape supervision to protect smaller banks from rules designed for Wall Street giants. The Fed already held a separate conference in July to discuss capital requirements for the biggest US banks, with regulators signalling a willingness to ease certain rules, including the enhanced supplementary leverage ratio and adjust stress testing frameworks.<h2>Economic and policy stakes</h2>Bowman’s push for rate cuts puts her at the centre of the Fed’s growing policy debate ahead of September. With job growth slowing, unemployment edging higher, and inflation nearing the Fed’s 2 per cent target, the risk calculus inside the central bank appears to be shifting from inflation control to employment protection.&nbsp;If Bowman’s view gains traction, the Fed could deliver its first rate cut in September, the first step in what she hopes will be a three-cut cycle to stabilise the economy before labour market weakness becomes entrenched.&nbsp;(With inputs from the agencies)

US Federal Reserve Governor Michelle Bowman  also downplayed the inflation threat from Trump era tariffs, arguing they won’t produce lasting price pressures. Beyond monetary policy, she announced an October conference on community banking reforms, seeking to ease capital rules for smaller lenders and make the community bank leverage ratio more appealing.

US Federal Reserve Governor Michelle Bowman has called for three interest-rate cuts this year, signalling growing concern inside the central bank over weakening job growth and softening demand. Speaking at the Kansas Bankers Association in Colorado Springs on Saturday, Bowman, a 2018 Trump appointee said recent weak labour-market data had reinforced her view that policy easing was now necessary. According to Bloomberg, she urged the Fed to start cutting at its next meeting in September to “avoid unnecessary erosion” in employment and prevent a larger policy correction later. From rate-hold supporter to early cut advocate The Fed has kept interest rates unchanged through the first half of 2025, a stance Bowman backed until June. But in July, she broke ranks alongside fellow Governor Christopher Waller, voting for a quarter-point cut. Her shift comes as the US job market shows signs of strain. Data from the Bureau of Labor Statistics showed employers added just 73,000 jobs in July, well below expectations, with prior months’ gains revised down by nearly 260,000. The unemployment rate also ticked up to 4.2 per cent from 4.1 per cent in June. Three other Fed policymakers, San Francisco’s Mary Daly, Minneapolis’ Neel Kashkari and Governor Lisa Cook have also voiced concerns about the cooling labour market in recent days, hinting they may support a September cut. Tariffs unlikely to stoke lasting inflation Bowman also addressed the inflation outlook, saying tariff-driven price rises, a major factor under President Donald Trump’s trade policies were unlikely to cause persistent inflation pressures. “With underlying inflation on a sustained trajectory toward 2 per cent, softness in aggregate demand and signs of fragility in the labour market, I think we should focus on risks to our employment mandate,” she said, as quoted by Bloomberg. Her comments reflect a broader view among some policymakers that the Fed can ease rates without jeopardising price stability, particularly if tariffs don’t trigger lasting inflationary effects. Spotlight on community banks Bowman used part of her remarks to announce an October 9 conference on community banking, aimed at exploring reforms to the capital framework for smaller lenders. She has long argued that community banks, which support local economies but have been losing market share to larger institutions, face unique challenges that merit tailored regulation. She pointed to possible changes to the community bank leverage ratio, a simpler capital requirement designed as an alternative to risk-based measures. Bowman, a former community banker herself, said she wants to make the ratio more attractive so more lenders adopt it, and to reshape supervision to protect smaller banks from rules designed for Wall Street giants. The Fed already held a separate conference in July to discuss capital requirements for the biggest US banks, with regulators signalling a willingness to ease certain rules, including the enhanced supplementary leverage ratio and adjust stress testing frameworks. Economic and policy stakes Bowman’s push for rate cuts puts her at the centre of the Fed’s growing policy debate ahead of September. With job growth slowing, unemployment edging higher, and inflation nearing the Fed’s 2 per cent target, the risk calculus inside the central bank appears to be shifting from inflation control to employment protection. If Bowman’s view gains traction, the Fed could deliver its first rate cut in September, the first step in what she hopes will be a three-cut cycle to stabilise the economy before labour market weakness becomes entrenched. (With inputs from the agencies)

Citing weakening job growth and softening demand, US Federal Reserve Governor Michelle Bowman warned that delaying action could deepen labour market damage. The July jobs report showed just 73,000 new positions and an uptick in unemployment to 4.2%, fuelling her call for faster easing.

Fed’s Bowman backs three rate cuts in 2025, warns of labour market fragility

US Treasury yields have snapped a three-week rally, with traders holding their breath ahead of a crucial consumer price index (CPI) report that could shape the Federal Reserve’s next move.As per Bloomberg, the 10-year Treasury yield rose by seven basis points last week to about 4.3 per cent, bouncing off a three-month low. Traders are now pricing in more than an 80 per cent probability of a Fed rate cut in September, according to interest-rate swap market data.&nbsp;The inflation data, due Tuesday, will be closely watched for signs of how President Donald Trump’s new tariffs are feeding into consumer prices. Economists expect “core” inflation — excluding food and energy — to have risen by 0.3 per cent in July, up from 0.2 per cent the month before.&nbsp;A hotter-than-expected reading could test market expectations for rate cuts, especially as the Fed has so far resisted Trump’s public pressure to ease policy more aggressively. The central bank has been balancing the risks of a cooling job market against still-stubborn price pressures.<h2>Political influence creeps into the Fed</h2>In a move that could tilt the policy debate, Trump last week installed a political ally at the Federal Reserve. Stephen Miran, who chairs the Council of Economic Advisers, has been appointed as a Fed governor — potentially shifting the central bank’s internal calculus ahead of September’s meeting.&nbsp;This week’s US data docket is unusually heavy. Aside from the CPI, markets will get July retail sales, industrial production, producer prices, and consumer sentiment readings. These could either cement or derail expectations for the first rate cut of Trump’s current term.Key US economic releases this week:<ul><li>August 12: NFIB small business optimism, CPI, real earnings, federal budget balance.</li><li>August 14: Producer price index, jobless claims.</li><li>August 15: Retail sales, manufacturing data, University of Michigan consumer sentiment</li></ul><h2>Fed officials on the speaking circuit</h2>Federal Reserve officials, including Michelle Bowman, Austan Goolsbee, and Raphael Bostic, are scheduled to make public remarks this week. Their tone could signal whether the central bank is preparing to move in September or waiting for more evidence of inflation cooling.The Treasury market’s reaction will hinge on whether inflation aligns with forecasts. A softer print could deepen bets on multiple rate cuts before year-end, while a strong reading may keep yields elevated and delay policy easing.&nbsp;(With inputs from the agencies)&nbsp;

With Trump fresh tariffs adding uncertainty to inflation, the data will be key to gauging how consumer prices are responding. A packed economic calendar and multiple Fed speeches this week could shape market sentiment ahead of September’s policy meeting.

US Treasury yields have snapped a three-week rally, with traders holding their breath ahead of a crucial consumer price index (CPI) report that could shape the Federal Reserve’s next move. As per Bloomberg, the 10-year Treasury yield rose by seven basis points last week to about 4.3 per cent, bouncing off a three-month low. Traders are now pricing in more than an 80 per cent probability of a Fed rate cut in September, according to interest-rate swap market data. The inflation data, due Tuesday, will be closely watched for signs of how President Donald Trump’s new tariffs are feeding into consumer prices. Economists expect “core” inflation — excluding food and energy — to have risen by 0.3 per cent in July, up from 0.2 per cent the month before. A hotter-than-expected reading could test market expectations for rate cuts, especially as the Fed has so far resisted Trump’s public pressure to ease policy more aggressively. The central bank has been balancing the risks of a cooling job market against still-stubborn price pressures. Political influence creeps into the Fed In a move that could tilt the policy debate, Trump last week installed a political ally at the Federal Reserve. Stephen Miran, who chairs the Council of Economic Advisers, has been appointed as a Fed governor — potentially shifting the central bank’s internal calculus ahead of September’s meeting. This week’s US data docket is unusually heavy. Aside from the CPI, markets will get July retail sales, industrial production, producer prices, and consumer sentiment readings. These could either cement or derail expectations for the first rate cut of Trump’s current term. Key US economic releases this week: August 12: NFIB small business optimism, CPI, real earnings, federal budget balance. August 14: Producer price index, jobless claims. August 15: Retail sales, manufacturing data, University of Michigan consumer sentiment Fed officials on the speaking circuit Federal Reserve officials, including Michelle Bowman, Austan Goolsbee, and Raphael Bostic, are scheduled to make public remarks this week. Their tone could signal whether the central bank is preparing to move in September or waiting for more evidence of inflation cooling. The Treasury market’s reaction will hinge on whether inflation aligns with forecasts. A softer print could deepen bets on multiple rate cuts before year-end, while a strong reading may keep yields elevated and delay policy easing. (With inputs from the agencies)

US Treasury yields ended a three-week slide, with traders bracing for a pivotal CPI report that could determine the Federal Reserve’s next rate move. The 10-year yield climbed to around 4.3%, while markets are pricing in an 80% chance of a September rate cut.

US Treasury rally pauses as markets brace for inflation test

China has escalated its tech security battle with the United States, targeting Nvidia’s latest H20 artificial intelligence chips with claims they are unsafe, outdated and environmentally unfriendly. The sharp criticism, published by an account linked to state broadcaster CCTV, comes just weeks after Beijing formally summoned the US chipmaker over alleged “backdoor” access in its hardware.&nbsp;The WeChat article from Yuyuan Tantian, a social media handle affiliated with CCTV, said the H20 chips were not advanced, not green, and not secure. It argued that Chinese consumers “have the option not to buy” products that fail on all three counts. The statement builds on earlier criticism from People’s Daily, the Communist Party’s flagship paper, which demanded “convincing security proofs” from Nvidia to restore market trust. As per Reuters, this is the latest in a string of warnings from Beijing against foreign tech suppliers amid tightening controls over critical digital infrastructure.<h2>The ‘backdoor’ allegation</h2>China’s cyberspace watchdog met Nvidia executives on 31 July to question whether the H20 chips contained any hardware “backdoor," a hidden method to bypass normal authentication or security controls. State media claims such access could enable functions like remote shutdown of the hardware.Nvidia, in response, said its products contain no such backdoors and do not allow remote access or control.<h2>The US–China chip flashpoint</h2>The H20 is one of several chips Nvidia designed specifically for China after the US imposed sweeping AI chip export restrictions in late 2023. The administration of President Donald Trump initially banned H20 sales in April 2025 amid rising trade tensions, but later reversed the decision in July to allow limited exports.&nbsp;The chip has since faced scepticism in China, not just over security risks, but also its performance. Analysts note that the H20 is less powerful than Nvidia’s top global AI chips due to US export rules, potentially limiting its adoption in China’s rapidly evolving AI sector.<h2>What this means for the tech war?</h2>Security claims against Nvidia fit into a broader pattern of mutual distrust between Washington and Beijing over semiconductors — the backbone of artificial intelligence, cloud computing, and military systems.&nbsp;While the US accuses China of technology theft and national security risks from its hardware, Beijing is now mirroring those arguments, scrutinising American chips for possible vulnerabilities. If Chinese buyers shun the H20, Nvidia risks losing a major share of one of its biggest international markets.&nbsp;(With inputs from the agencies)&nbsp;

The H20, designed for China after US export curbs, was briefly banned under Trump before limited sales resumed in July. With state media warning consumers to avoid the product, the standoff signals deepening distrust in the US and China chip war and could jeopardize Nvidia’s China market share.

China has escalated its tech security battle with the United States, targeting Nvidia’s latest H20 artificial intelligence chips with claims they are unsafe, outdated and environmentally unfriendly. The sharp criticism, published by an account linked to state broadcaster CCTV, comes just weeks after Beijing formally summoned the US chipmaker over alleged “backdoor” access in its hardware. The WeChat article from Yuyuan Tantian, a social media handle affiliated with CCTV, said the H20 chips were not advanced, not green, and not secure. It argued that Chinese consumers “have the option not to buy” products that fail on all three counts. The statement builds on earlier criticism from People’s Daily, the Communist Party’s flagship paper, which demanded “convincing security proofs” from Nvidia to restore market trust. As per Reuters, this is the latest in a string of warnings from Beijing against foreign tech suppliers amid tightening controls over critical digital infrastructure. The ‘backdoor’ allegation China’s cyberspace watchdog met Nvidia executives on 31 July to question whether the H20 chips contained any hardware “backdoor," a hidden method to bypass normal authentication or security controls. State media claims such access could enable functions like remote shutdown of the hardware. Nvidia, in response, said its products contain no such backdoors and do not allow remote access or control. The US–China chip flashpoint The H20 is one of several chips Nvidia designed specifically for China after the US imposed sweeping AI chip export restrictions in late 2023. The administration of President Donald Trump initially banned H20 sales in April 2025 amid rising trade tensions, but later reversed the decision in July to allow limited exports. The chip has since faced scepticism in China, not just over security risks, but also its performance. Analysts note that the H20 is less powerful than Nvidia’s top global AI chips due to US export rules, potentially limiting its adoption in China’s rapidly evolving AI sector. What this means for the tech war? Security claims against Nvidia fit into a broader pattern of mutual distrust between Washington and Beijing over semiconductors — the backbone of artificial intelligence, cloud computing, and military systems. While the US accuses China of technology theft and national security risks from its hardware, Beijing is now mirroring those arguments, scrutinising American chips for possible vulnerabilities. If Chinese buyers shun the H20, Nvidia risks losing a major share of one of its biggest international markets. (With inputs from the agencies)

China has intensified its tech security offensive against the US by publicly attacking Nvidia’s H20 AI chips as insecure, outdated, and environmentally unfriendly. The criticism follows a formal inquiry into alleged “backdoor” access — claims Nvidia denies.

China calls Nvidia H20 chips unsafe, cites ‘backdoor’ concerns

Mexico has moved to set minimum export prices for fresh tomatoes bound for the United States in an effort to ease tensions after Washington imposed anti-dumping duties. According to Bloomberg, the new pricing floor aims to restore full access to the US market and prevent what Mexican officials called “distortion in the prices” of tomato exports.<h2>Why Mexico acted now?</h2>The move follows the Trump administration’s decision to impose an anti-dumping duty of over 17 per cent last month after accusing Mexican growers of selling tomatoes at unfairly low prices. US growers had long argued that cheap imports were undercutting domestic producers. While the US Commerce Department announced the duty, President Donald Trump delayed a broader tariff hike for 90 days to leave room for negotiations on a fresh trade agreement.&nbsp;“The Mexican government is trying to help growers avoid an increase in anti-dumping duties in the future,” Georgina Felix, director of operations at the Arizona-based Fresh Produce Association of the Americas, told Bloomberg. The dispute escalated after the US withdrew in July from a 2019 agreement that had suspended dumping investigations. That deal had required a minimum price for tomato imports at their first point of sale in the US, effectively acting as a safeguard for American growers. Its collapse re-opened the door to duties and reignited trade tensions.&nbsp;Under the new Mexican decree, the minimum prices imply a sharp jump, almost 40 per cent for round “bola” tomatoes and 26 per cent for cherry and grape varieties. This increase, as noted by Juan Carlos Anaya of Mexico City’s Agricultural Markets Consulting Group in comments to Imagen Radio, is even greater than the US duty itself.<h2>Political and economic stakes</h2>Tomatoes are one of Mexico’s most valuable agricultural exports to the US, making the dispute politically sensitive and economically significant. For Mexican farmers, setting a price floor may cushion the impact of US duties and secure more predictable market access, while for American growers, it may address concerns over price undercutting.&nbsp;Still, the 90-day window before Trump’s delayed tariff hike expires leaves little time for both sides to reach a permanent deal. Without one, the tomato dispute risks becoming another flashpoint in a broader pattern of agricultural and manufacturing trade tensions between Washington and Mexico City.&nbsp;(With inputs from the agencies)

The move, which comes amid a 90 day delay in broader US tariff hikes, raises prices by up to 40% for some varieties and aims to ease tensions before talks expire potentially averting another flashpoint in agricultural trade.

Mexico has moved to set minimum export prices for fresh tomatoes bound for the United States in an effort to ease tensions after Washington imposed anti-dumping duties. According to Bloomberg, the new pricing floor aims to restore full access to the US market and prevent what Mexican officials called “distortion in the prices” of tomato exports. Why Mexico acted now? The move follows the Trump administration’s decision to impose an anti-dumping duty of over 17 per cent last month after accusing Mexican growers of selling tomatoes at unfairly low prices. US growers had long argued that cheap imports were undercutting domestic producers. While the US Commerce Department announced the duty, President Donald Trump delayed a broader tariff hike for 90 days to leave room for negotiations on a fresh trade agreement. “The Mexican government is trying to help growers avoid an increase in anti-dumping duties in the future,” Georgina Felix, director of operations at the Arizona-based Fresh Produce Association of the Americas, told Bloomberg. The dispute escalated after the US withdrew in July from a 2019 agreement that had suspended dumping investigations. That deal had required a minimum price for tomato imports at their first point of sale in the US, effectively acting as a safeguard for American growers. Its collapse re-opened the door to duties and reignited trade tensions. Under the new Mexican decree, the minimum prices imply a sharp jump, almost 40 per cent for round “bola” tomatoes and 26 per cent for cherry and grape varieties. This increase, as noted by Juan Carlos Anaya of Mexico City’s Agricultural Markets Consulting Group in comments to Imagen Radio, is even greater than the US duty itself. Political and economic stakes Tomatoes are one of Mexico’s most valuable agricultural exports to the US, making the dispute politically sensitive and economically significant. For Mexican farmers, setting a price floor may cushion the impact of US duties and secure more predictable market access, while for American growers, it may address concerns over price undercutting. Still, the 90-day window before Trump’s delayed tariff hike expires leaves little time for both sides to reach a permanent deal. Without one, the tomato dispute risks becoming another flashpoint in a broader pattern of agricultural and manufacturing trade tensions between Washington and Mexico City. (With inputs from the agencies)

As the US-Mexico tomato trade dispute heats up, Mexico has introduced minimum export prices for fresh tomatoes headed to the US in a bid to counter Washington’s 17% anti-dumping duty and restore full market access.

Mexico hikes tomato export prices to dodge Trump’s 17% tariff

China’s producer prices dropped more than expected in July, while consumer prices were flat, signalling that the world’s second-largest economy is still grappling with weak domestic demand and fragile business confidence. According to data from the National Bureau of Statistics (NBS) cited by Reuters, the producer price index (PPI) fell 3.6 per cent year-on-year, missing economists’ forecast of a 3.3 per cent decline and matching June’s near two-year low.&nbsp;PPI, a key gauge of factory-gate prices, has now been in decline for more than two years. July’s figures show that Beijing’s early-stage efforts to curb aggressive price competition and address overcapacity in key industries have yet to deliver a significant turnaround. The current industrial restructuring push is a more modest version of the sweeping supply-side reforms launched a decade ago, which were instrumental in ending a previous deflationary cycle. On a month-on-month basis, PPI fell 0.2 per cent in July, a smaller drop than June’s 0.4 per cent fall. Dong Lijuan, NBS chief statistician, told Reuters that extreme weather and ongoing global trade uncertainties had contributed to price declines in certain sectors.<h2>Signs of easing pressure, but risks remain</h2>Some analysts see tentative signs that deflationary pressures may be starting to ease. Xing Zhaopeng, senior China strategist at ANZ, told Reuters that improvements in both the month-on-month PPI and year-on-year core CPI could indicate the government’s “anti-involution” measures, aimed at reducing disorderly competition in industries such as autos will start lifting annual PPI from August.&nbsp;However, others remain cautious. Without stronger demand-side stimulus or reforms to boost household welfare, analysts warn these policies may have limited impact on final demand. A prolonged property market slump and strained trade relations with the United States continue to weigh heavily on consumer spending and manufacturing activity.<h2>Consumer prices show mixed trends</h2>China’s consumer price index (CPI) was unchanged year-on-year in July, compared with a 0.1 per cent rise in June. This outperformed a Reuters poll forecast for a 0.1 per cent decline. Core CPI, which excludes volatile food and fuel prices, rose 0.8 per cent, the highest level in 17 months, suggesting some resilience in underlying consumer demand.&nbsp;Food prices fell 1.6 per cent from a year earlier, following a 0.3 per cent drop in June. On a monthly basis, CPI climbed 0.4 per cent in July, reversing June’s 0.1 per cent fall and beating forecasts for a 0.3 per cent increase.<h2>Extreme weather adds to economic strain</h2>The NBS noted that weather played a significant role in price movements last month. Large parts of China’s eastern coast endured sweltering heat, while heavier-than-usual monsoon rains hit both northern and southern provinces. These disruptions have further complicated efforts to stabilise prices and growth.&nbsp;Zhiwei Zhang, chief economist at Pinpoint Asset Management, told Reuters it is still too early to declare the end of deflation in China. He warned that the property sector has not yet stabilised, the economy remains overly reliant on external demand, and the labour market is still weak.With deflationary pressures persisting, policymakers face the challenge of balancing targeted industrial reforms with measures to spur broader domestic demand without triggering fresh economic imbalances.&nbsp;(With input from the agencies)&nbsp;

Analysts say month-on-month improvements in both producer and core consumer prices suggest Beijing targeted industrial reforms could start yielding results from August.

China’s producer prices dropped more than expected in July, while consumer prices were flat, signalling that the world’s second-largest economy is still grappling with weak domestic demand and fragile business confidence. According to data from the National Bureau of Statistics (NBS) cited by Reuters, the producer price index (PPI) fell 3.6 per cent year-on-year, missing economists’ forecast of a 3.3 per cent decline and matching June’s near two-year low. PPI, a key gauge of factory-gate prices, has now been in decline for more than two years. July’s figures show that Beijing’s early-stage efforts to curb aggressive price competition and address overcapacity in key industries have yet to deliver a significant turnaround. The current industrial restructuring push is a more modest version of the sweeping supply-side reforms launched a decade ago, which were instrumental in ending a previous deflationary cycle. On a month-on-month basis, PPI fell 0.2 per cent in July, a smaller drop than June’s 0.4 per cent fall. Dong Lijuan, NBS chief statistician, told Reuters that extreme weather and ongoing global trade uncertainties had contributed to price declines in certain sectors. Signs of easing pressure, but risks remain Some analysts see tentative signs that deflationary pressures may be starting to ease. Xing Zhaopeng, senior China strategist at ANZ, told Reuters that improvements in both the month-on-month PPI and year-on-year core CPI could indicate the government’s “anti-involution” measures, aimed at reducing disorderly competition in industries such as autos will start lifting annual PPI from August. However, others remain cautious. Without stronger demand-side stimulus or reforms to boost household welfare, analysts warn these policies may have limited impact on final demand. A prolonged property market slump and strained trade relations with the United States continue to weigh heavily on consumer spending and manufacturing activity. Consumer prices show mixed trends China’s consumer price index (CPI) was unchanged year-on-year in July, compared with a 0.1 per cent rise in June. This outperformed a Reuters poll forecast for a 0.1 per cent decline. Core CPI, which excludes volatile food and fuel prices, rose 0.8 per cent, the highest level in 17 months, suggesting some resilience in underlying consumer demand. Food prices fell 1.6 per cent from a year earlier, following a 0.3 per cent drop in June. On a monthly basis, CPI climbed 0.4 per cent in July, reversing June’s 0.1 per cent fall and beating forecasts for a 0.3 per cent increase. Extreme weather adds to economic strain The NBS noted that weather played a significant role in price movements last month. Large parts of China’s eastern coast endured sweltering heat, while heavier-than-usual monsoon rains hit both northern and southern provinces. These disruptions have further complicated efforts to stabilise prices and growth. Zhiwei Zhang, chief economist at Pinpoint Asset Management, told Reuters it is still too early to declare the end of deflation in China. He warned that the property sector has not yet stabilised, the economy remains overly reliant on external demand, and the labour market is still weak. With deflationary pressures persisting, policymakers face the challenge of balancing targeted industrial reforms with measures to spur broader domestic demand without triggering fresh economic imbalances. (With input from the agencies)

China’s factory-gate prices fell for the 25th straight month in July, but the pace of decline slowed, offering tentative signs that deflationary pressures may be bottoming out.

China’s factory-gate prices fall more than expected in July, deflation fears linger