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Is Coca-Cola going back to its roots?&nbsp;After US President Donald Trump's cane sugar use ultimatum, the world’s biggest soft drink maker has announced plans to launch a new Coke product. The company revealed that the new Coke product will be&nbsp;made with real cane sugar in the United States, responding to a growing consumer demand for “natural” ingredients and riding a wave of pricing-driven profits.&nbsp;The announcement came as Coca-Cola beat Wall Street expectations for its second-quarter earnings, with higher prices offsetting weaker volumes, especially in key markets like India, Mexico, and the United States. The company reported earnings of 87 cents per share, topping analysts’ estimates of 83 cents, and comparable revenue of $12.62 billion, slightly above the $12.54 billion forecast, as per data compiled by LSEG.<h2>Real sugar, real politics</h2>The shift toward cane sugar comes amid mounting health scrutiny in the United States. Food brands are under pressure from Health Secretary Robert F. Kennedy Jr.’s ‘Make America Healthy Again’ campaign, which advocates cleaner, less processed food and drink options. Even US President Donald Trump weighed in last week, stating that Coca-Cola had agreed to use real cane sugar in American products, something the company already does in countries like Mexico, where “Mexican Coke” with cane sugar is popular and sold in glass bottles.&nbsp;CEO James Quincey confirmed the news in a post-earnings call, saying the new product would “complement” the current lineup, not replace it. “We want to use the whole toolkit available of sweetening options,” he said. But the move isn’t without cost. Industry analysts told Reuters that switching to cane sugar would increase production expenses and require major supply chain adjustments. At a time when aluminium tariffs under Trump have already doubled to 50 per cent, Coca-Cola has been experimenting with affordable packaging like plastic bottles to ease cost pressures.<h2>High prices, falling volumes</h2>Coca-Cola is facing a dip in consumer demand. Volumes declined 1 per cent in the quarter, after rising steadily in the previous two quarters, despite posting strong financials.&nbsp; Weaker demand in Mexico, India, and among US consumers drove the drop, especially in lower-income groups feeling the pinch of inflation.&nbsp;Quincey acknowledged the challenges, noting that “continued uncertainty and pressure on some socioeconomic segments” affected purchasing patterns. This comes after a boycott-related slump earlier this year in North America and Mexico, following a viral video falsely claiming the company had reported Latino employees to immigration authorities. Though Reuters found no public evidence of such reporting, the impact on sales was real. The company said the backlash is now “largely resolved.”&nbsp;Still, price increases of 6 per cent helped offset the volume dip, especially in inflation-sensitive markets. The winners: Coke Zero Sugar and international sales. Amid the shifting dynamics, one product emerged as a clear winner, Coca-Cola Zero Sugar, which saw a 14 per cent jump in volumes globally, driven by health-conscious consumers across regions. Interestingly, about 61 per cent of Coca-Cola’s revenue comes from international markets, which proved more resilient than the US. A weaker dollar also helped the company stay on track to meet the top end of its 2 to 3 per cent annual earnings growth target.<h2>The bottom line</h2>While the buzz around cane sugar Coke made headlines, analysts say the real story lies in Coca-Cola’s pricing power. “Growth was due more to increased price changes and not volumes sold,” said Jay Woods, Chief Global Strategist at Freedom Capital Markets, speaking to Reuters.&nbsp;In midday trading on Tuesday, Coca-Cola’s shares were down slightly, by 1 per cent at $69.29. But with shifting consumer habits, political nudges, and global market pressures, one thing is clear: even the world’s most iconic soda brand can’t afford to stand still.&nbsp;(With inputs from the agencies)&nbsp;

This shift comes amid health concerns and pressure from campaigns advocating for cleaner food options. Despite strong earnings, volumes declined by 1% due to inflation impacts on lower income consumers. CEO James Quincey mentioned the initiative wouldn't replace existing products. 

Is Coca-Cola going back to its roots? After US President Donald Trump's cane sugar use ultimatum, the world’s biggest soft drink maker has announced plans to launch a new Coke product. The company revealed that the new Coke product will be made with real cane sugar in the United States, responding to a growing consumer demand for “natural” ingredients and riding a wave of pricing-driven profits. The announcement came as Coca-Cola beat Wall Street expectations for its second-quarter earnings, with higher prices offsetting weaker volumes, especially in key markets like India, Mexico, and the United States. The company reported earnings of 87 cents per share, topping analysts’ estimates of 83 cents, and comparable revenue of $12.62 billion, slightly above the $12.54 billion forecast, as per data compiled by LSEG. Real sugar, real politics The shift toward cane sugar comes amid mounting health scrutiny in the United States. Food brands are under pressure from Health Secretary Robert F. Kennedy Jr.’s ‘Make America Healthy Again’ campaign, which advocates cleaner, less processed food and drink options. Even US President Donald Trump weighed in last week, stating that Coca-Cola had agreed to use real cane sugar in American products, something the company already does in countries like Mexico, where “Mexican Coke” with cane sugar is popular and sold in glass bottles. CEO James Quincey confirmed the news in a post-earnings call, saying the new product would “complement” the current lineup, not replace it. “We want to use the whole toolkit available of sweetening options,” he said. But the move isn’t without cost. Industry analysts told Reuters that switching to cane sugar would increase production expenses and require major supply chain adjustments. At a time when aluminium tariffs under Trump have already doubled to 50 per cent, Coca-Cola has been experimenting with affordable packaging like plastic bottles to ease cost pressures. High prices, falling volumes Coca-Cola is facing a dip in consumer demand. Volumes declined 1 per cent in the quarter, after rising steadily in the previous two quarters, despite posting strong financials. Weaker demand in Mexico, India, and among US consumers drove the drop, especially in lower-income groups feeling the pinch of inflation. Quincey acknowledged the challenges, noting that “continued uncertainty and pressure on some socioeconomic segments” affected purchasing patterns. This comes after a boycott-related slump earlier this year in North America and Mexico, following a viral video falsely claiming the company had reported Latino employees to immigration authorities. Though Reuters found no public evidence of such reporting, the impact on sales was real. The company said the backlash is now “largely resolved.” Still, price increases of 6 per cent helped offset the volume dip, especially in inflation-sensitive markets. The winners: Coke Zero Sugar and international sales. Amid the shifting dynamics, one product emerged as a clear winner, Coca-Cola Zero Sugar, which saw a 14 per cent jump in volumes globally, driven by health-conscious consumers across regions. Interestingly, about 61 per cent of Coca-Cola’s revenue comes from international markets, which proved more resilient than the US. A weaker dollar also helped the company stay on track to meet the top end of its 2 to 3 per cent annual earnings growth target. The bottom line While the buzz around cane sugar Coke made headlines, analysts say the real story lies in Coca-Cola’s pricing power. “Growth was due more to increased price changes and not volumes sold,” said Jay Woods, Chief Global Strategist at Freedom Capital Markets, speaking to Reuters. In midday trading on Tuesday, Coca-Cola’s shares were down slightly, by 1 per cent at $69.29. But with shifting consumer habits, political nudges, and global market pressures, one thing is clear: even the world’s most iconic soda brand can’t afford to stand still. (With inputs from the agencies)

Coca-Cola plans to launch a new product made with real cane sugar in the US, responding to consumer demand for natural ingredients and offsetting weaker sales in key markets.

Coca-Cola to launch cane sugar Coke in US as higher prices boost profit

In a big and shocking move, Japan has launched an anti-dumping investigation into stainless steel imports from China and Taiwan. Citing concerns over artificially low prices that are damaging its domestic industry, the investigation, announced jointly by Japan’s Ministry of Economy, Trade and Industry and Ministry of Finance. They will reportedly scrutinise nickel-based cold-rolled stainless-steel sheets and strips. These products are vital in construction, automobile and appliances sectors where price wars have intensified.&nbsp;The probe stems from a formal complaint submitted on May 12 by Nippon Steel, Japan’s largest steelmaker, and other domestic producers. Nippon Steel and other domestic producers alleged that they’re being undercut by cheaper imports, forcing them to slash prices and absorb cost pressures, jeopardising profitability.<h2>How much cheaper are these imports?</h2>According to the application filed by Japanese steelmakers, Chinese imports were sold in Japan at prices 20 to 50 per cent lower than in their home market, while Taiwanese imports were 3 to 20 per cent cheaper. Upon these pricing gaps, the complaint reveals that the companies have severely affected their ability to pass on rising production costs to customers.&nbsp;Reuters reported that the Japanese companies also claim declining operating profits, growing losses, and damage to their production scale, all linked to a surge in low-cost steel flooding the Japanese market.<h2>Steel supply glut and a global concern</h2>This comes at a time when the global steel market is already under stress, with many countries accusing Chinese companies of flooding global markets using steel subsidised by the state. Japan, which is a major player in the steel industry, had so far refrained from slapping punitive trade measures, even as others, such as the US, EU, and India, have taken steps to protect their steel sectors.&nbsp;Now, it seems Tokyo has changed tack. Tadashi Imai, Chairman of the Japan Iron and Steel Federation and also President of Nippon Steel, has long voiced concerns that global protectionism could leave Japan vulnerable to cheap steel imports, hurting domestic manufacturers and eroding Japan’s industrial base. His warnings may have finally resonated with policymakers.<h2>What happens next?</h2>The investigation is expected to conclude within a year, following which the Japanese government will decide whether to impose anti-dumping duties on the imports in question. These duties are meant to neutralise the pricing advantage of the foreign products and protect domestic manufacturers from unfair competition.&nbsp;While Taiwan’s economy ministry declined immediate comment, China’s commerce ministry has yet to respond, as per Reuters. For now, the move marks a new phase in Japan’s trade stance, one that reflects growing frustration with market distortions caused by excess Chinese production and global economic imbalances. It also signals Japan’s willingness to defend its industrial sector, even if it means stepping into a more confrontational trade posture.&nbsp;(With inputs from&nbsp; the agencies)

This follows a complaint by Nippon Steel and other producers alleging significant price undercutting. Chinese imports were reportedly 20 to 50% cheaper than domestic prices, and Taiwanese imports 3 to 20% cheaper.

In a big and shocking move, Japan has launched an anti-dumping investigation into stainless steel imports from China and Taiwan. Citing concerns over artificially low prices that are damaging its domestic industry, the investigation, announced jointly by Japan’s Ministry of Economy, Trade and Industry and Ministry of Finance. They will reportedly scrutinise nickel-based cold-rolled stainless-steel sheets and strips. These products are vital in construction, automobile and appliances sectors where price wars have intensified. The probe stems from a formal complaint submitted on May 12 by Nippon Steel, Japan’s largest steelmaker, and other domestic producers. Nippon Steel and other domestic producers alleged that they’re being undercut by cheaper imports, forcing them to slash prices and absorb cost pressures, jeopardising profitability. How much cheaper are these imports? According to the application filed by Japanese steelmakers, Chinese imports were sold in Japan at prices 20 to 50 per cent lower than in their home market, while Taiwanese imports were 3 to 20 per cent cheaper. Upon these pricing gaps, the complaint reveals that the companies have severely affected their ability to pass on rising production costs to customers. Reuters reported that the Japanese companies also claim declining operating profits, growing losses, and damage to their production scale, all linked to a surge in low-cost steel flooding the Japanese market. Steel supply glut and a global concern This comes at a time when the global steel market is already under stress, with many countries accusing Chinese companies of flooding global markets using steel subsidised by the state. Japan, which is a major player in the steel industry, had so far refrained from slapping punitive trade measures, even as others, such as the US, EU, and India, have taken steps to protect their steel sectors. Now, it seems Tokyo has changed tack. Tadashi Imai, Chairman of the Japan Iron and Steel Federation and also President of Nippon Steel, has long voiced concerns that global protectionism could leave Japan vulnerable to cheap steel imports, hurting domestic manufacturers and eroding Japan’s industrial base. His warnings may have finally resonated with policymakers. What happens next? The investigation is expected to conclude within a year, following which the Japanese government will decide whether to impose anti-dumping duties on the imports in question. These duties are meant to neutralise the pricing advantage of the foreign products and protect domestic manufacturers from unfair competition. While Taiwan’s economy ministry declined immediate comment, China’s commerce ministry has yet to respond, as per Reuters. For now, the move marks a new phase in Japan’s trade stance, one that reflects growing frustration with market distortions caused by excess Chinese production and global economic imbalances. It also signals Japan’s willingness to defend its industrial sector, even if it means stepping into a more confrontational trade posture. (With inputs from the agencies)

Japan has initiated an anti-dumping investigation into stainless steel imports from China and Taiwan, citing artificially low prices threatening its domestic industry.

Japan launches anti-dumping probe into Chinese, Taiwanese steel

As the tariff deadline around the corner, the world’s two largest economies are heading to Stockholm for crucial trade talks, as US President Donald Trump pushes forward with a wave of new bilateral deals in Asia. Washington and Beijing are reportedly preparing to discuss a possible extension to their high-stakes tariff truce. This comes as the US has struck fresh agreements with the Philippines and Indonesia, signalling Trump’s expanding trade offensive just weeks before August deadlines.<h2>Stockholm becomes centre stage&nbsp;</h2>As per Reuters, US Treasury Secretary Scott Bessent confirmed that American and Chinese officials will meet in Stockholm next Monday and Tuesday to work out whether to extend the current 90-day window for resolving deep-rooted trade tensions. “I think trade is in a very good place with China,” Bessent told Fox Business on Tuesday, adding that both sides were expected to explore rebalancing the economic relationship. The talks will include top US and Chinese trade officials, including China’s Commerce Minister Wang Wentao and chief negotiator Li Chenggang.&nbsp;By calling it a positive step for the global economy, Sweden’s Prime Minister Ulf Kristersson&nbsp;welcomed the negotiations. “It is positive that both countries wish to meet in Sweden to seek mutual understanding,” Kristersson wrote on X.

<blockquote class="twitter-tweet">Sweden will host continued trade negotiations between the United States and the People’s Republic of China early next week. The two countries’ willingness to meet here to try to reach an agreement is a positive development. The discussions primarily concern relations between…&mdash; Ulf Kristersson (@SwedishPM) <a href="https://twitter.com/SwedishPM/status/1947678198483062977?ref_src=twsrc%5Etfw">July 22, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2>What’s at stake?&nbsp;</h2>The US and China are currently observing a temporary truce on retaliatory tariffs that had earlier escalated to triple-digit levels. Under the current deal, tariffs were rolled back, but only temporarily. Unless a new agreement or an extension is reached, tariffs could snap back as early as August, with US rates returning to 145 per cent and Chinese tariffs to 125 per cent, as per Reuters.&nbsp;Among the sticking points is Washington’s demand for Beijing to scale back what it describes as a state-led, subsidised export model that floods global markets with cheap goods. China denies those claims, arguing its success stems from innovation. Bessent’s deputy, Michael Faulkender, told Bloomberg that the Stockholm talks would also cover China’s rare earth export controls, market access, and trade imbalances. “There is enormous space for us to talk about what for decades has been practices by the Chinese government that give them unfair advantages in the global marketplace,” Faulkender said.<h2>Trump strikes deal with Philippines, Indonesia</h2>Even as US-China discussions inch forward, President Trump is accelerating his push for bilateral trade wins.On Tuesday, Trump announced a new trade deal with the Philippines, following talks with President Ferdinand Marcos Jr. at the White House. The agreement sets a 19 per cent tariff on goods imported from the Philippines, but crucially, keeps US exports to the Philippines tariff-free.&nbsp;Shortly afterwards, the Trump administration confirmed the same 19 per cent tariff rate for Indonesia, down from an earlier 32 per cent. Under the revised agreement, Indonesia will remove tariff and non-tariff barriers on most US goods.According to Reuters, the Indonesia deal had been quietly finalised last week and released only after the Philippines visit.<h2>What US and China have already agreed?&nbsp;</h2>Behind the scenes, both Washington and Beijing have been testing the waters for a broader reset. Since May, Bessent has met twice with Chinese Vice Premier He Lifeng in Geneva and London. Those meetings helped broker a temporary cooling-off period and limited breakthroughs.&nbsp;According to a spokesperson from the Chinese embassy in Washington, both sides have now finalised the implementation of consensus points reached between Trump and President Xi Jinping. That includes Beijing lifting its export ban on rare earth elements, while the US resumes shipping semiconductor software, aircraft parts, and other industrial goods to China.<h2>US stern warning to China on buying Russian oil</h2>Trade isn’t the only issue on the table. Bessent said he also plans to raise concerns over China’s continued purchase of sanctioned Russian and Iranian oil, and its broader economic support to Moscow during the Ukraine war. He noted growing bipartisan support in the US Senate for imposing 100 per cent tariffs on goods from countries, namely China and India, that continue to import Russian oil.&nbsp;“I’m going to be in touch with my European counterparts,” Bessent said. “It’ll be very important for the Europeans to also be willing to put on these high levels of secondary tariffs for sanctioned Russian oil.”<h2>What’s next?</h2>Looking ahead, Bessent said the US is preparing a “rash of trade deals” with other countries, and despite Japan’s political uncertainty following Prime Minister Ishiba’s electoral setback, Washington may pursue a deeper trade pact with Tokyo soon. “I wouldn’t be surprised if we aren’t able to iron out something with Japan pretty quickly,” he told Fox Business.&nbsp;For now, all eyes are on Stockholm. If the US and China fail to extend the current truce, global trade could once again be hit by punishing tariffs, at a time when the world economy is already under strain.&nbsp;(With inputs from the agencies)

This comes as President Trump is accelerating his push for bilateral trade wins,  the US has finalised a deal with Indonesia and Philippines. 

As the tariff deadline around the corner, the world’s two largest economies are heading to Stockholm for crucial trade talks, as US President Donald Trump pushes forward with a wave of new bilateral deals in Asia. Washington and Beijing are reportedly preparing to discuss a possible extension to their high-stakes tariff truce. This comes as the US has struck fresh agreements with the Philippines and Indonesia, signalling Trump’s expanding trade offensive just weeks before August deadlines. Stockholm becomes centre stage As per Reuters, US Treasury Secretary Scott Bessent confirmed that American and Chinese officials will meet in Stockholm next Monday and Tuesday to work out whether to extend the current 90-day window for resolving deep-rooted trade tensions. “I think trade is in a very good place with China,” Bessent told Fox Business on Tuesday, adding that both sides were expected to explore rebalancing the economic relationship. The talks will include top US and Chinese trade officials, including China’s Commerce Minister Wang Wentao and chief negotiator Li Chenggang. By calling it a positive step for the global economy, Sweden’s Prime Minister Ulf Kristersson welcomed the negotiations. “It is positive that both countries wish to meet in Sweden to seek mutual understanding,” Kristersson wrote on X.

The US and China will meet in Stockholm to discuss extending their tariff truce, amid Trump's ongoing trade deals in Asia and recent agreements with the Philippines and Indonesia.

US, China to meet in Sweden for key tariffs talks: What’s at stake?

In a major breakthrough, the United States and Japan have struck a high-stakes trade deal just ahead of a August tariff deadline. The announcement was made by US President Donald Trump on his Truth Social platform followed by Japanese Prime Minister Shigeru Ishiba on Wednesday, praising the deal. Amid the political tussle in his country, PM Ishiba will soon reportedly resign after a bruising election defeat, hailed the deal and said that Tokyo secured "the lowest figure among countries that have a trade surplus with the United States."&nbsp;Here are the 5 key takeaways from the deal:<h3>1. Autos slashed to 15%</h3>At the heart of the deal is a significant reduction in tariffs on Japanese automobile exports to the US. The new agreement lowers the tariff rate from a proposed 25 per cent to 15 per cent. Japanese automakers, who account for over a quarter of Japan’s total exports to the US, have been spared a major trade blow.Prime Minister Ishiba confirmed that there will be no US-imposed caps on auto imports either, securing market stability for Japanese car giants like Toyota and Honda.<h3>2. US to invest $550 billion in Japan</h3>President Trump announced via Truth Social that Japan would provide up to $550 billion (approx. ¥87 trillion) in investments and loan guarantees. These funds will be channelled through Japanese state-backed banks and agencies to help companies build more resilient supply chains within the US.The investment pledge is being seen as a diplomatic win for Trump’s “America First” economic policy ahead of the November election.<h3>3. No major concessions on agriculture</h3>While the US had pushed for greater agricultural access, Japan held its ground. According to Ishiba, Japan will retain its existing tariffs on US farm goods and continue with its minimum access quota system, especially for rice imports.However, a Trump official told Reuters that Japan has committed to increasing its purchases of specific US agricultural products, including rice.<h3>4. Steel and aluminium tariffs remain at 50%</h3>The trade deal notably excludes Japanese steel and aluminium exports. As confirmed by Japan’s top trade negotiator Ryosei Akazawa, these goods will still face a hefty 50 per cent tariff under a separate US policy.This clarification corrects earlier reports that had mistakenly cited a 25 per cent duty. The exclusion leaves room for further negotiations on metals, which remain a friction point in US-Japan trade relations.<h3>5. Will this deal be valid if Ishiba steps down?</h3>The agreement comes just days before an August 1 deadline when the US had threatened to impose 25 per cent tariffs on all Japanese imports. Akazawa reportedly travelled to Washington eight times since April for marathon talks with US officials including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Back home, Prime Minister Ishiba is under political fire after losing his upper house majority in the recent election. Despite calls for his resignation, Ishiba stayed on to clinch this deal. According to Mainichi, he is expected to step down by the end of August.&nbsp;As per Mainichi&nbsp;newspaper, the Japan–US trade deal is expected to remain valid even if Prime Minister Shigeru Ishiba steps down. While Ishiba played a central role in finalising the deal, Japan’s bureaucratic institutions and ruling Liberal Democratic Party are likely to uphold the agreement, especially given its economic and diplomatic significance. The US is Japan's biggest export market. Economists had estimated that Trump's tariffs could lower Japan's GDP by as much as a percentage point. However, a leadership change could influence how future terms, such as unresolved issues on steel tariffs—are negotiated.&nbsp;(With inputs from the agencies)&nbsp;

A part of the deal, the US will invest $550 billion in Japan, focusing on supply chain resilience. Japan maintains its agricultural tariffs but pledges to increase imports of specific US goods. Steel and aluminum tariffs remain at 50%. 

In a major breakthrough, the United States and Japan have struck a high-stakes trade deal just ahead of a August tariff deadline. The announcement was made by US President Donald Trump on his Truth Social platform followed by Japanese Prime Minister Shigeru Ishiba on Wednesday, praising the deal. Amid the political tussle in his country, PM Ishiba will soon reportedly resign after a bruising election defeat, hailed the deal and said that Tokyo secured "the lowest figure among countries that have a trade surplus with the United States." Here are the 5 key takeaways from the deal: 1. Autos slashed to 15% At the heart of the deal is a significant reduction in tariffs on Japanese automobile exports to the US. The new agreement lowers the tariff rate from a proposed 25 per cent to 15 per cent. Japanese automakers, who account for over a quarter of Japan’s total exports to the US, have been spared a major trade blow. Prime Minister Ishiba confirmed that there will be no US-imposed caps on auto imports either, securing market stability for Japanese car giants like Toyota and Honda. 2. US to invest $550 billion in Japan President Trump announced via Truth Social that Japan would provide up to $550 billion (approx. ¥87 trillion) in investments and loan guarantees. These funds will be channelled through Japanese state-backed banks and agencies to help companies build more resilient supply chains within the US. The investment pledge is being seen as a diplomatic win for Trump’s “America First” economic policy ahead of the November election. 3. No major concessions on agriculture While the US had pushed for greater agricultural access, Japan held its ground. According to Ishiba, Japan will retain its existing tariffs on US farm goods and continue with its minimum access quota system, especially for rice imports. However, a Trump official told Reuters that Japan has committed to increasing its purchases of specific US agricultural products, including rice. 4. Steel and aluminium tariffs remain at 50% The trade deal notably excludes Japanese steel and aluminium exports. As confirmed by Japan’s top trade negotiator Ryosei Akazawa, these goods will still face a hefty 50 per cent tariff under a separate US policy. This clarification corrects earlier reports that had mistakenly cited a 25 per cent duty. The exclusion leaves room for further negotiations on metals, which remain a friction point in US-Japan trade relations. 5. Will this deal be valid if Ishiba steps down? The agreement comes just days before an August 1 deadline when the US had threatened to impose 25 per cent tariffs on all Japanese imports. Akazawa reportedly travelled to Washington eight times since April for marathon talks with US officials including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Back home, Prime Minister Ishiba is under political fire after losing his upper house majority in the recent election. Despite calls for his resignation, Ishiba stayed on to clinch this deal. According to Mainichi, he is expected to step down by the end of August. As per Mainichi newspaper, the Japan–US trade deal is expected to remain valid even if Prime Minister Shigeru Ishiba steps down. While Ishiba played a central role in finalising the deal, Japan’s bureaucratic institutions and ruling Liberal Democratic Party are likely to uphold the agreement, especially given its economic and diplomatic significance. The US is Japan's biggest export market. Economists had estimated that Trump's tariffs could lower Japan's GDP by as much as a percentage point. However, a leadership change could influence how future terms, such as unresolved issues on steel tariffs—are negotiated. (With inputs from the agencies)

On Wednesday, the US and Japan finalised a significant trade deal before an August tariff deadline.&nbsp;

US-Japan trade deal: Here are the 5 key takeaways

As markets responded to signs of easing tensions between the United States and Japan, on Wednesday, oil prices inched up in Asian trading, halting a three-session losing streak. However, the upside remained muted as investors braced for limited progress at the upcoming EU-China summit and broader uncertainty around trade policy.&nbsp;Brent crude futures rose by 21 cents, or 0.31 per cent, to $68.80 a barrel by 0351 GMT, while US West Texas Intermediate (WTI) climbed 17 cents, or 0.26 per cent, to $65.48. Both contracts had lost nearly 1 per cent in the previous session on worries that the European Union may retaliate against US tariffs.&nbsp;WTI for September delivery moved closer to $66 a barrel after falling over three days, while Brent hovered just below the $69 mark, according to Bloomberg. Despite the uptick, both benchmarks remain under immense pressure as Brent is still down around 8 per cent year-to-date.<h2>US-Japan deal&nbsp;</h2>On Tuesday, US President Donald Trump announced that a trade deal had been struck with Japan, setting a 15 per cent tariff on Japanese auto imports and securing up to $550 billion in investment commitments for US supply chains.&nbsp;Oil traders took note of the agreement, which temporarily eased fears of escalating trade friction with America’s key Asian ally. “The slide of the past three sessions appears to have abated,” said Vandana Hari of Vanda Insights, “but I don’t expect much of an upward impetus from the US-Japan trade deal,” she told Reuters.<h2>EU-China summit weighs on market mood</h2>As the Japan deal offered a short-term lift, now all eyes are on the European Union-China summit, which is reportedly expected to deliver little concrete progress on Thursday. Both sides remain at odds on trade and technology issues.&nbsp;China’s commerce ministry said that its talks with the EU trade chief were “candid and in-depth,” but expectations are low. Meanwhile, as per Bloomberg, the US Treasury Secretary Scott Bessent will meet Chinese negotiators in Stockholm next week, and may extend the current August 12 deadline for negotiations.<h2>US stockpiles shift, but outlook remains mixed</h2>Market sources citing American Petroleum Institute (API) data said that US crude and gasoline inventories declined last week, while distillate stockpiles rose by 3.48 million barrels. Analysts at ING said this could ease pressure on the diesel market, which has been facing a supply crunch.&nbsp;Though the traders are cautious as the official inventory data from the US Energy Information Administration due later on Wednesday.<h2>Russia sanctions talk adds uncertainty</h2>In another development, the US energy secretary said Washington may consider new sanctions on Russian oil to help end the war in Ukraine. The European Union recently passed its 18th sanctions package, which lowers the price cap on Russian crude.&nbsp;However, analysts warned that without active US enforcement, the effectiveness of EU measures could be limited. &nbsp;

This comes after US President Donald Trump announced that a trade deal had been struck with Japan, setting a 15 per cent tariff on Japanese auto imports and securing up to $550 billion in investment commitments for US supply chains.

As markets responded to signs of easing tensions between the United States and Japan, on Wednesday, oil prices inched up in Asian trading, halting a three-session losing streak. However, the upside remained muted as investors braced for limited progress at the upcoming EU-China summit and broader uncertainty around trade policy. Brent crude futures rose by 21 cents, or 0.31 per cent, to $68.80 a barrel by 0351 GMT, while US West Texas Intermediate (WTI) climbed 17 cents, or 0.26 per cent, to $65.48. Both contracts had lost nearly 1 per cent in the previous session on worries that the European Union may retaliate against US tariffs. WTI for September delivery moved closer to $66 a barrel after falling over three days, while Brent hovered just below the $69 mark, according to Bloomberg. Despite the uptick, both benchmarks remain under immense pressure as Brent is still down around 8 per cent year-to-date. US-Japan deal On Tuesday, US President Donald Trump announced that a trade deal had been struck with Japan, setting a 15 per cent tariff on Japanese auto imports and securing up to $550 billion in investment commitments for US supply chains. Oil traders took note of the agreement, which temporarily eased fears of escalating trade friction with America’s key Asian ally. “The slide of the past three sessions appears to have abated,” said Vandana Hari of Vanda Insights, “but I don’t expect much of an upward impetus from the US-Japan trade deal,” she told Reuters. EU-China summit weighs on market mood As the Japan deal offered a short-term lift, now all eyes are on the European Union-China summit, which is reportedly expected to deliver little concrete progress on Thursday. Both sides remain at odds on trade and technology issues. China’s commerce ministry said that its talks with the EU trade chief were “candid and in-depth,” but expectations are low. Meanwhile, as per Bloomberg, the US Treasury Secretary Scott Bessent will meet Chinese negotiators in Stockholm next week, and may extend the current August 12 deadline for negotiations. US stockpiles shift, but outlook remains mixed Market sources citing American Petroleum Institute (API) data said that US crude and gasoline inventories declined last week, while distillate stockpiles rose by 3.48 million barrels. Analysts at ING said this could ease pressure on the diesel market, which has been facing a supply crunch. Though the traders are cautious as the official inventory data from the US Energy Information Administration due later on Wednesday. Russia sanctions talk adds uncertainty In another development, the US energy secretary said Washington may consider new sanctions on Russian oil to help end the war in Ukraine. The European Union recently passed its 18th sanctions package, which lowers the price cap on Russian crude. However, analysts warned that without active US enforcement, the effectiveness of EU measures could be limited.

On Wednesday, oil prices rose modestly in Asian trading, snapping a three-session declining trend, as easing US-Japan trade tensions provided temporary relief.

Oil prices edge higher after US-Japan trade deal

US President Donald Trump on Tuesday (Jul 22) declared that Washington had reached a "massive" new trade agreement with Japan, a deal he claimed would bring billions in investments and create "hundreds of thousands of jobs" in the United States. Even as Trump, in his usual 'go big, or go home' fashion, touts what he referred to as 'perhaps the largest deal ever made,' Tokyo has signalled caution. In a statement, Japanese Prime Minister Shigeru Ishiba said he would review the details before offering any official comment. "As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement," Ishiba told reporters in Tokyo after Trump's announcement.<h2>'Largest Deal' between US and Japan</h2>Trump, writing on his Truth Social platform, said the deal would include a 15 per cent tariff on Japanese exports and claimed that Japan had agreed to invest $550 billion into the US economy. "We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump wrote, adding that &nbsp;under the deal "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits," though he did not provide specifics.The announcement comes after months of tense negotiations between the two countries, particularly over automobiles and steel, both important Japanese exports, reports AFP.

<h2>Japan, Rice imports and market reaction</h2>Trump said that Japan has agreed to "open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things." Japan had previously resisted pressure to make concessions on rice imports, a politically sensitive issue in the nation.Following Trump’s announcement, Japan's Nikkei index rose over 1 per cent, with automotive stocks surging more than 6 per cent.

Even as Trump, in his usual 'go big, or go home' fashion, touts what he referred to as 'perhaps the largest deal ever made,' Tokyo has signalled caution. In a statement, Japanese Prime Minister Shigeru Ishiba said he would review the details before offering any official comment.

US President Donald Trump on Tuesday (Jul 22) declared that Washington had reached a "massive" new trade agreement with Japan, a deal he claimed would bring billions in investments and create "hundreds of thousands of jobs" in the United States. Even as Trump, in his usual 'go big, or go home' fashion, touts what he referred to as 'perhaps the largest deal ever made,' Tokyo has signalled caution. In a statement, Japanese Prime Minister Shigeru Ishiba said he would review the details before offering any official comment. "As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement," Ishiba told reporters in Tokyo after Trump's announcement. 'Largest Deal' between US and Japan Trump, writing on his Truth Social platform, said the deal would include a 15 per cent tariff on Japanese exports and claimed that Japan had agreed to invest $550 billion into the US economy. "We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump wrote, adding that under the deal "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits," though he did not provide specifics. The announcement comes after months of tense negotiations between the two countries, particularly over automobiles and steel, both important Japanese exports, reports AFP.

Even as Trump, in his usual 'go big, or go home' fashion, touts what he referred to as 'perhaps the largest deal ever made,' Tokyo has signalled caution. In a statement, Japanese Prime Minister Shigeru Ishiba said he would review the details before offering any official comment.

Trump claims US will get 90% of profits in 'largest deal' with Japan—Tokyo still reading the fine print, says need to review terms

The shares of Chinese aircraft maker AVIC Chengdu Aircraft on Tuesday (July 22) dropped by up to 2 per cent during trading. This comes after Bangladesh Air Force fighter jet (F-7 BGI aircraft) crashed on Monday, which hit a crowded school in Dhaka. The jet experienced a ‘mechanical fault’, just moments after the takeoff and crashed into a two-story building of Milestone School in Dhaka. The crash led to the deaths of at least 31 people, including 25 children and the pilot. The crash also injured more than 170 people, in which mostly are students. This plane crash is considered as one of the worst and deadliest plane accidents in Bangladesh’s aviation history.&nbsp;The jet involved in this crash was the Chinese made F-7 BGI, its an updated version of the Chengdu F-7 aircraft and is based on the old Soviet MiG-21 aircraft design. Although in 2010, companies stopped the making of J-7 jets as these jets are seen as outdated by global standards but some countries like Bangladesh still use them for training and light combat.&nbsp;According to a Bloomberg report, Bangladesh have bought 57 F-7 jets from China between 1989 and 2011 and became the fourth largest buyer of these jets.&nbsp;Also Check - <a href="China-made Bangladesh air force jet crashes into school ...">China-made Bangladesh air force jet crashes into school ...</a> &nbsp;Stock Price&nbsp;After rising for four days, AVIC Chengdu Aircraft’s share price suddenly fell by 2 per cent to 86.22 yuan in intraday trading (involves buying and selling financial instruments, like stocks within the same trading day) on Tuesday (July 22). The share had been opened at 87.30 yuan, according to reports.&nbsp;&nbsp;Following strong high gains in June (up &nbsp;to 14.59%) and May (up to 30.62%), &nbsp;The AVIC Chengdu Aircraft’s share is down by 2 per cent in July. This is because of the recent Bangladesh plane crash, which involves F-7 BGI aircraft, made by AVIC Chengdu Aircraft Corporation. &nbsp;

Following strong high gains in June and May,  The AVIC Chengdu Aircraft’s share is down by 2% in July. This is because of the recent Bangladesh plane crash, which involves F-7 BGI aircraft, made by  AVIC Chengdu Aircraft.

The shares of Chinese aircraft maker AVIC Chengdu Aircraft on Tuesday (July 22) dropped by up to 2 per cent during trading. This comes after Bangladesh Air Force fighter jet (F-7 BGI aircraft) crashed on Monday, which hit a crowded school in Dhaka. The jet experienced a ‘mechanical fault’, just moments after the takeoff and crashed into a two-story building of Milestone School in Dhaka. The crash led to the deaths of at least 31 people, including 25 children and the pilot. The crash also injured more than 170 people, in which mostly are students. This plane crash is considered as one of the worst and deadliest plane accidents in Bangladesh’s aviation history. The jet involved in this crash was the Chinese made F-7 BGI, its an updated version of the Chengdu F-7 aircraft and is based on the old Soviet MiG-21 aircraft design. Although in 2010, companies stopped the making of J-7 jets as these jets are seen as outdated by global standards but some countries like Bangladesh still use them for training and light combat. According to a Bloomberg report, Bangladesh have bought 57 F-7 jets from China between 1989 and 2011 and became the fourth largest buyer of these jets. Also Check - China-made Bangladesh air force jet crashes into school ... Stock Price After rising for four days, AVIC Chengdu Aircraft’s share price suddenly fell by 2 per cent to 86.22 yuan in intraday trading (involves buying and selling financial instruments, like stocks within the same trading day) on Tuesday (July 22). The share had been opened at 87.30 yuan, according to reports. Following strong high gains in June (up to 14.59%) and May (up to 30.62%), The AVIC Chengdu Aircraft’s share is down by 2 per cent in July. This is because of the recent Bangladesh plane crash, which involves F-7 BGI aircraft, made by AVIC Chengdu Aircraft Corporation.

Following strong high gains in June and May, the AVIC Chengdu Aircraft’s share is down by two per cent in July. This is because of the recent Bangladesh plane crash, which involves F-7 BGI aircraft, made by &nbsp;AVIC Chengdu Aircraft Corporation.

Chinese aircraft maker AVIC Chengdu shares drop by 2% after Bangladesh jet crash

A year later major WazirX breach, India’s digital asset sector has suffered another major security breach. As the cofounder post on X, Indian centralised crypto exchange CoinDCX was hacked for nearly $44 million (₹368 crore) on July 19, after an internal liquidity account was compromised.&nbsp;The breach was first reported by prominent blockchain investigator ZachXBT, who shared details on his Telegram channel. According to the sleuth, the attacker funded the wallet using one Ethereum via Tornado Cash, a decentralised crypto mixing platform. A portion of the stolen funds was subsequently bridged from Solana to Ethereum, he claimed.&nbsp;The affected wallet was not publicly tagged or listed in CoinDCX’s proof-of-reserves, ZachXBT added, stating that he had to manually trace the wallet through its counterparty transactions.<h2>How did CoinDCX react?</h2>Following the revelations, CoinDCX co-founder and CEO Sumit Gupta confirmed the incident on X (formerly Twitter). By described the exploit as a “sophisticated server breach” targeting one of CoinDCX’s internal operational accounts, used solely for liquidity provisioning on a partner exchange, Gupta emphasised that no customer funds were impacted, and said all user assets remain safe in cold wallet infrastructure. “The incident was quickly contained by isolating the affected operational account,” he said. “Exposure was limited and fully absorbed by CoinDCX’s treasury reserves.”

<blockquote class="twitter-tweet">Hi everyone, At <a href="https://twitter.com/CoinDCX?ref_src=twsrc%5Etfw">@CoinDCX</a>, we have always believed in being transparent with our community, hence I am sharing this with you directly. Today, one of our internal operational accounts - used only for liquidity provisioning on a partner exchange - was compromised due to a… <a href="https://t.co/L1kZhjKAxQ">pic.twitter.com/L1kZhjKAxQ</a>&mdash; Sumit Gupta (CoinDCX) (@smtgpt) <a href="https://twitter.com/smtgpt/status/1946597988660645900?ref_src=twsrc%5Etfw">July 19, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Trading activity and INR withdrawals remain fully operational, Gupta added. The exchange is now working with its partner platform to block and recover the stolen assets, and plans to launch a bug bounty programme soon.&nbsp;On the other hand, CoinDCX co-founder Neeraj Khandelwal confirmed that the platform had lost approximately $44 million, a figure verified internally and by external partners. In his post on X, Khandelwal said the exchange delayed its official announcement to prioritise securing the breach before disclosing details publicly.

<blockquote class="twitter-tweet">Hello all. We suffered a security attack today early morning (~17 Hours ago) Coindcx team is all hands working to fire fight the situation as we speak and we will get to the depths of the incidence. All the customer assets are safe and the trading activity plus the INR… <a href="https://t.co/YBWAwYMhSD">https://t.co/YBWAwYMhSD</a>&mdash; Neeraj Khandelwal (@neerajKh_) <a href="https://twitter.com/neerajKh_/status/1946598377019646038?ref_src=twsrc%5Etfw">July 19, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

He also confirmed that the company’s Web3 trading platform was paused temporarily as a precautionary measure, though customer assets in that segment were&nbsp;not affected. “Web3 trading will resume shortly,” he said.&nbsp;In it's another post on X, the cofounder also mentioned that, "The total amount lost was ~$44Mn out of our treasury assets. Coindcx Treasury will be bearing these losses. We continue to work hard to recover these lost assets".&nbsp;

<blockquote class="twitter-tweet">The total amount lost was ~$44Mn out of our treasury assets. Coindcx Treasury will be bearing these losses. We continue to work hard to recover these lost assets. We will share all the information as more facts are validated but the amount has been ascertained by us internally…&mdash; Neeraj Khandelwal (@neerajKh_) <a href="https://twitter.com/neerajKh_/status/1946600341816127508?ref_src=twsrc%5Etfw">July 19, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2>Flashback to 2024 WazirX hack</h2>The CoinDCX exploit comes exactly a year after fellow Indian exchange WazirX was hacked for $234 million on July 18, 2024. That breach was attributed to the North Korea-linked Lazarus Group, according to earlier reports.&nbsp;As per TheStreet, CoinDCX is currently working with cybersecurity and crypto forensics firms to investigate the breach and trace the attacker’s path. Alerts from blockchain security firm Cyvers had earlier flagged the suspicious outflows that helped ZachXBT uncover the breach.&nbsp;The episode raises new concerns over India’s crypto security framework. With a second major hack in just one year, regulators may now push for tighter protocols, greater wallet segregation, and enhanced proof-of-reserve transparency across exchanges. (With inputs from the agencies)

CoinDCX co-founder Sumit Gupta confirmed that the attack was a sophisticated server breach, assuring no customer funds were affected. The exchange is working to recover the stolen assets and plans a bug bounty program.

A year later major WazirX breach, India’s digital asset sector has suffered another major security breach. As the cofounder post on X, Indian centralised crypto exchange CoinDCX was hacked for nearly $44 million (₹368 crore) on July 19, after an internal liquidity account was compromised. The breach was first reported by prominent blockchain investigator ZachXBT, who shared details on his Telegram channel. According to the sleuth, the attacker funded the wallet using one Ethereum via Tornado Cash, a decentralised crypto mixing platform. A portion of the stolen funds was subsequently bridged from Solana to Ethereum, he claimed. The affected wallet was not publicly tagged or listed in CoinDCX’s proof-of-reserves, ZachXBT added, stating that he had to manually trace the wallet through its counterparty transactions. How did CoinDCX react? Following the revelations, CoinDCX co-founder and CEO Sumit Gupta confirmed the incident on X (formerly Twitter). By described the exploit as a “sophisticated server breach” targeting one of CoinDCX’s internal operational accounts, used solely for liquidity provisioning on a partner exchange, Gupta emphasised that no customer funds were impacted, and said all user assets remain safe in cold wallet infrastructure. “The incident was quickly contained by isolating the affected operational account,” he said. “Exposure was limited and fully absorbed by CoinDCX’s treasury reserves.”

One year after WazirX breach, India’s digital asset market hit by another major exploit. Indian centralised crypto exchange CoinDCX was hacked for nearly $44 million (₹368 crore) on July 19, after an internal liquidity account was compromised.

Indian crypto exchange CoinDCX hacked for $44 million

On Monday, Iron ore prices surged to a four-month high. This reportedly comes after China unveiled a massive $167 billion hydropower project in Tibet, fuelling hopes of a demand revival in the construction and steel sectors.&nbsp;The steel-making commodity jumped as much as 2.9 per cent in Singapore to nearly $104 per ton. Steel futures in Shanghai also rose sharply, while prices for copper, aluminium, and zinc gained on the London Metal Exchange. The rally came after Premier Li Qiang launched construction of the five-tier Yarlung Tsangpo dam, one of China’s most ambitious infrastructure projects to date, signalling renewed state-led investment in metals-heavy sectors.<h2>China's mega dam project&nbsp;</h2>The dam project, which is reportedly worth over 1.2 trillion yuan ($167 billion), is being built in Tibet’s Himalayan belt. It involves a cascade of five interconnected hydropower dams and is expected to deliver a major boost to China’s power grid and clean energy ambitions. But beyond energy, the project is poised to lift demand for steel, cement, glass, and other industrial materials, offering much-needed relief to sectors hit hard by China’s prolonged property slump.&nbsp;The announcement signals a shift in Beijing’s growth strategy, with infrastructure spending once again being deployed as a counterweight to weak private investment and slowing exports.<h2>Iron ore posts first monthly rise since January</h2>Iron ore prices have now climbed for four straight weeks and are set for their first monthly gain since January. The renewed optimism is also backed by policy signals: Chinese officials have pledged to rein in excess competition and overcapacity in the steel industry, improving sentiment around mill profitability and future demand.&nbsp;The China Iron and Steel Association (CISA) said it held meetings with leading steelmakers and officials from the industry ministry last week. Companies reportedly vowed to address the problem of “involution” — a condition of intense competition that depresses margins and hinted at new regulatory tools to curb overcapacity, though details remain unclear.<h2>Metals rally on stimulus optimism</h2>By mid-morning trade on Monday, iron ore had risen 2.8 per cent to $103.60 per ton in Singapore. Rebar and hot-rolled coil contracts in Shanghai climbed more than 2 per cent, marking their strongest levels since March. On the London Metal Exchange, copper gained 0.5 per cent to $9,830 per ton, while zinc and aluminium also edged higher, reflecting broader optimism in the industrial metals complex.&nbsp;Traders are now watching for follow-through demand from the dam project and possible additional infrastructure stimulus from Beijing. For now, China’s mega-dam announcement appears to have jolted confidence back into metals markets, offering a rare bright spot in an otherwise uncertain global economic backdrop. (With inputs from the agencies)

The Yarlung Tsangpo dam project will boost demand for various industrial materials, signaling a shift in Beijing growth strategy towards infrastructure investment. Optimism in metals markets is returning amid stimulus hopes.

On Monday, Iron ore prices surged to a four-month high. This reportedly comes after China unveiled a massive $167 billion hydropower project in Tibet, fuelling hopes of a demand revival in the construction and steel sectors. The steel-making commodity jumped as much as 2.9 per cent in Singapore to nearly $104 per ton. Steel futures in Shanghai also rose sharply, while prices for copper, aluminium, and zinc gained on the London Metal Exchange. The rally came after Premier Li Qiang launched construction of the five-tier Yarlung Tsangpo dam, one of China’s most ambitious infrastructure projects to date, signalling renewed state-led investment in metals-heavy sectors. China's mega dam project The dam project, which is reportedly worth over 1.2 trillion yuan ($167 billion), is being built in Tibet’s Himalayan belt. It involves a cascade of five interconnected hydropower dams and is expected to deliver a major boost to China’s power grid and clean energy ambitions. But beyond energy, the project is poised to lift demand for steel, cement, glass, and other industrial materials, offering much-needed relief to sectors hit hard by China’s prolonged property slump. The announcement signals a shift in Beijing’s growth strategy, with infrastructure spending once again being deployed as a counterweight to weak private investment and slowing exports. Iron ore posts first monthly rise since January Iron ore prices have now climbed for four straight weeks and are set for their first monthly gain since January. The renewed optimism is also backed by policy signals: Chinese officials have pledged to rein in excess competition and overcapacity in the steel industry, improving sentiment around mill profitability and future demand. The China Iron and Steel Association (CISA) said it held meetings with leading steelmakers and officials from the industry ministry last week. Companies reportedly vowed to address the problem of “involution” — a condition of intense competition that depresses margins and hinted at new regulatory tools to curb overcapacity, though details remain unclear. Metals rally on stimulus optimism By mid-morning trade on Monday, iron ore had risen 2.8 per cent to $103.60 per ton in Singapore. Rebar and hot-rolled coil contracts in Shanghai climbed more than 2 per cent, marking their strongest levels since March. On the London Metal Exchange, copper gained 0.5 per cent to $9,830 per ton, while zinc and aluminium also edged higher, reflecting broader optimism in the industrial metals complex. Traders are now watching for follow-through demand from the dam project and possible additional infrastructure stimulus from Beijing. For now, China’s mega-dam announcement appears to have jolted confidence back into metals markets, offering a rare bright spot in an otherwise uncertain global economic backdrop. (With inputs from the agencies)

Steel, copper rally as Beijing bets on mega infrastructure to revive economy.&nbsp;

Iron ore surges as China’s $167 billion Tibet dam fuels demand hopes

Amid the escalating global trade tension, China has kept its benchmark lending rates unchanged. Beijing's this move signals confidence in recent economic performance even as deflationary pressure and weak domestic demand continue to cloud the outlook. China's central bank's decision comes days after Beijing posted better-than-expected second-quarter GDP figures, easing immediate pressure for fresh monetary stimulus. On Monday, the People’s Bank of China (PBOC) held both key lending rates steady, with the one-year Loan Prime Rate (LPR) at 3.0 per cent and the five-year LPR at 3.5 per cent, as per a Reuters report.&nbsp;The decision matched expectations. In a Reuters survey of 20 market watchers, all had forecast no change to either rate. The one-year rate acts as a reference for most household and corporate loans, while the five-year rate is closely tied to mortgage pricing.<h2>Growth tempers urgency for stimulus</h2>The PBOC's wait-and-watch approach follows China’s second-quarter GDP figures, which showed the economy slowed less than expected, hinting at resilience amid rising US tariffs and global trade tensions. However, the underlying message from economists is one of caution.&nbsp;According to Reuters, Tommy Xie, head of Asia macro research at OCBC, noted that China’s GDP deflator has been negative for nine straight quarters, reflecting weak nominal growth. “The weak nominal growth despite above-target real growth may weigh down corporate profitability as well as income growth". Xie further added that,“We expect PBOC to lower its benchmark interest rate by another 20 basis points this year, although the room for more aggressive rate cuts may be limited given the bottleneck faced by the economy.”<h2>Pressure builds as Deflation deepens&nbsp;</h2>As per Reuters, June data showed producer deflation worsened to its most severe level in nearly two years, signalling persistent price weakness despite stable headline growth. This deepening deflation is raising concerns among analysts, particularly as consumer demand remains subdued.&nbsp;While the central bank has refrained from cutting rates further for now, many economists believe some form of monetary easing remains likely in the second half of the year, especially if domestic conditions deteriorate or external trade risks intensify.<h2>Markets eye Politburo meeting</h2>All eyes have now turned to the Politburo meeting later this month, which is expected to lay out China’s economic strategy for the remainder of 2025. Analysts, including those at Goldman Sachs, say two structural factors, deflation and domestic demand weakness which are likely to dominate the discussion and shape investor strategy in Chinese markets.&nbsp;By holding key lending rates steady, China’s PBOC has signalled near-term confidence in economic momentum, but persistent deflation and fragile domestic consumption suggest that rate cuts or fiscal support may still be on the table in coming months. (With inputs from the agencies)

The People Bank of China (PBOC) kept the one-year and five-year Loan Prime Rates steady at 3.0% and 3.5%, respectively, aligned with market expectations. 

Amid the escalating global trade tension, China has kept its benchmark lending rates unchanged. Beijing's this move signals confidence in recent economic performance even as deflationary pressure and weak domestic demand continue to cloud the outlook. China's central bank's decision comes days after Beijing posted better-than-expected second-quarter GDP figures, easing immediate pressure for fresh monetary stimulus. On Monday, the People’s Bank of China (PBOC) held both key lending rates steady, with the one-year Loan Prime Rate (LPR) at 3.0 per cent and the five-year LPR at 3.5 per cent, as per a Reuters report. The decision matched expectations. In a Reuters survey of 20 market watchers, all had forecast no change to either rate. The one-year rate acts as a reference for most household and corporate loans, while the five-year rate is closely tied to mortgage pricing. Growth tempers urgency for stimulus The PBOC's wait-and-watch approach follows China’s second-quarter GDP figures, which showed the economy slowed less than expected, hinting at resilience amid rising US tariffs and global trade tensions. However, the underlying message from economists is one of caution. According to Reuters, Tommy Xie, head of Asia macro research at OCBC, noted that China’s GDP deflator has been negative for nine straight quarters, reflecting weak nominal growth. “The weak nominal growth despite above-target real growth may weigh down corporate profitability as well as income growth". Xie further added that,“We expect PBOC to lower its benchmark interest rate by another 20 basis points this year, although the room for more aggressive rate cuts may be limited given the bottleneck faced by the economy.” Pressure builds as Deflation deepens As per Reuters, June data showed producer deflation worsened to its most severe level in nearly two years, signalling persistent price weakness despite stable headline growth. This deepening deflation is raising concerns among analysts, particularly as consumer demand remains subdued. While the central bank has refrained from cutting rates further for now, many economists believe some form of monetary easing remains likely in the second half of the year, especially if domestic conditions deteriorate or external trade risks intensify. Markets eye Politburo meeting All eyes have now turned to the Politburo meeting later this month, which is expected to lay out China’s economic strategy for the remainder of 2025. Analysts, including those at Goldman Sachs, say two structural factors, deflation and domestic demand weakness which are likely to dominate the discussion and shape investor strategy in Chinese markets. By holding key lending rates steady, China’s PBOC has signalled near-term confidence in economic momentum, but persistent deflation and fragile domestic consumption suggest that rate cuts or fiscal support may still be on the table in coming months. (With inputs from the agencies)

China has maintained its benchmark lending rates amid rising global trade tensions, signaling confidence despite ongoing deflationary pressures and weak domestic demand.

China keeps lending rates steady as Q2 growth beats expectations

China has issued a stern warning to the European Union, promising retaliation after Brussels sanctioned two Chinese banks and five companies for allegedly helping Russia circumvent Ukraine war-related sanctions. The European Union’s new sanctions package, announced last Friday, included Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank, both accused of providing cryptocurrency services that undermined EU restrictions on Moscow.&nbsp;The move marks the first time Chinese banks have been added to the EU sanctions list since Russia’s 2022 invasion of Ukraine, intensifying tensions between the bloc and Beijing. According to Bloomberg, the banks were included for processing crypto-based transactions and for providing financial support to Russian entities already under EU sanctions.<h2>Beijing issues warning&nbsp;</h2>China’s Ministry of Commerce responded on Monday, condemning the EU sanctions as actions that “seriously harmed trade, economic and financial ties.” The ministry said it would take “necessary steps” to protect the “legitimate rights and interests” of Chinese firms.&nbsp;The sanctioned banks could not be immediately reached for comment, Reuters reported.In June, ahead of the sanctions, China had already protested the EU’s plan. Foreign Ministry spokesperson Lin Jian had said that “normal exchanges and cooperation between Chinese and Russian companies are consistent with WTO rules” and “should not be disrupted or affected.”&nbsp;Beijing also stepped up diplomatic efforts behind the scenes. As per the South China Morning Post, China’s ambassador to the EU lobbied European officials to drop the proposal. But Brussels went ahead, escalating the fallout.<h2>China caught in crossfire of Russia sanctions</h2>From energy to banking, China’s close ties with Russia have come under increasing scrutiny from both the EU and the United States. This is not the first time Chinese banks have been impacted. In 2023, the US authorised secondary sanctions on foreign financial institutions that assist Russia, prompting several Chinese lenders to scale back ties.&nbsp;According to Bloomberg, state-owned giants like ICBC and Bank of China had already begun restricting financing for Russian commodities as early as 2022, wary of losing access to the US dollar clearing system. The EU’s latest action builds on growing concerns that crypto tools and opaque financial channels are being used to bypass Western sanctions, with Chinese entities playing a key role.<h2>What happens next?</h2>Attention will now turn to how China retaliates. Foreign Minister Wang Yi had earlier warned of consequences if Chinese banks were sanctioned. Beijing could target European firms operating in China or implement countermeasures via its cybersecurity and export control laws, experts suggest.&nbsp;The escalating row comes at a time when China–EU ties are already strained, over issues ranging from electric vehicle tariffs to tech transfer rules. As geopolitical fault lines deepen, Brussels appears ready to hold Beijing accountable for any role in supporting Moscow’s war machine, directly or indirectly. (With inputs from the agencies)

Tensions are escalating as Beijing close ties with Russia come under scrutiny, with potential retaliatory actions against European firms and reliance on cybersecurity laws suggested.

China has issued a stern warning to the European Union, promising retaliation after Brussels sanctioned two Chinese banks and five companies for allegedly helping Russia circumvent Ukraine war-related sanctions. The European Union’s new sanctions package, announced last Friday, included Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank, both accused of providing cryptocurrency services that undermined EU restrictions on Moscow. The move marks the first time Chinese banks have been added to the EU sanctions list since Russia’s 2022 invasion of Ukraine, intensifying tensions between the bloc and Beijing. According to Bloomberg, the banks were included for processing crypto-based transactions and for providing financial support to Russian entities already under EU sanctions. Beijing issues warning China’s Ministry of Commerce responded on Monday, condemning the EU sanctions as actions that “seriously harmed trade, economic and financial ties.” The ministry said it would take “necessary steps” to protect the “legitimate rights and interests” of Chinese firms. The sanctioned banks could not be immediately reached for comment, Reuters reported. In June, ahead of the sanctions, China had already protested the EU’s plan. Foreign Ministry spokesperson Lin Jian had said that “normal exchanges and cooperation between Chinese and Russian companies are consistent with WTO rules” and “should not be disrupted or affected.” Beijing also stepped up diplomatic efforts behind the scenes. As per the South China Morning Post, China’s ambassador to the EU lobbied European officials to drop the proposal. But Brussels went ahead, escalating the fallout. China caught in crossfire of Russia sanctions From energy to banking, China’s close ties with Russia have come under increasing scrutiny from both the EU and the United States. This is not the first time Chinese banks have been impacted. In 2023, the US authorised secondary sanctions on foreign financial institutions that assist Russia, prompting several Chinese lenders to scale back ties. According to Bloomberg, state-owned giants like ICBC and Bank of China had already begun restricting financing for Russian commodities as early as 2022, wary of losing access to the US dollar clearing system. The EU’s latest action builds on growing concerns that crypto tools and opaque financial channels are being used to bypass Western sanctions, with Chinese entities playing a key role. What happens next? Attention will now turn to how China retaliates. Foreign Minister Wang Yi had earlier warned of consequences if Chinese banks were sanctioned. Beijing could target European firms operating in China or implement countermeasures via its cybersecurity and export control laws, experts suggest. The escalating row comes at a time when China–EU ties are already strained, over issues ranging from electric vehicle tariffs to tech transfer rules. As geopolitical fault lines deepen, Brussels appears ready to hold Beijing accountable for any role in supporting Moscow’s war machine, directly or indirectly. (With inputs from the agencies)

Beijing hits back at Brussels over move to target Chinese banks linked to Moscow’s war effort

China retaliates after EU sanctions its banks for aiding Russia

On Monday, Gold prices held ground as investors weighed dovish signals from the US Federal Reserve and the looming August 1 trade deadline set by President Donald Trump. The precious metal hovered near the $3,350 per ounce mark, amid markets jittery over tariff escalation and interest rate moves,&nbsp;As per Reuters, spot gold was flat at $3,352.19 per ounce at 0250 GMT, while US gold futures held at $3,358.70. Traders are awaiting the Fed’s policy meeting next week as fresh rate cut cues may emerge, particularly as inflation remains uncertain under the current US trade strategy. “The dollar has made a subdued start to the week, which has left the door open for gold to post gains early doors with tariff deadlines looming large,” said Tim Waterer, Chief Market Analyst at KCM Trade, to Reuters. Waterer added that if no new deals emerge before the August 1 deadline, gold could aim for a renewed rally towards $3,400 or beyond.<h2>Trump’s tariff and Powell succession in focus</h2>The gold market has also been driven by diverging views within the Fed. Governor Christopher Waller last week backed a rate cut, echoing a dovish stance, as per Bloomberg. His colleague Michelle Bowman is also open to a reduction, though some policymakers reportedly remain cautious, fearing that Trump’s tariffs could trigger persistent inflation.&nbsp;The Fed’s internal split coincides with growing pressure from President Trump. As the US President is reportedly weighing candidates to replace Fed Chair Jerome Powell when his term ends in May. As per Bloomberg, the White House has dismissed a Wall Street Journal report suggesting Treasury Secretary Scott Bessent warned Trump of adverse market reactions if Powell was removed.&nbsp;Gold tends to benefit from lower interest rates, as it does not yield interest and becomes more attractive relative to bonds in a low-rate environment.<h2>Trade talks and geopolitical tensions add to uncertainty</h2>On the trade front, investors are keeping an eye on the negotiations between the US and the European Union closely. US Commerce Secretary Howard Lutnick has remained optimistic about a deal with Brussels. Meanwhile, Reuters reported that Trump may visit China ahead of the Asia-Pacific Economic Cooperation (APEC) summit later this year, or meet Xi Jinping on its sidelines.&nbsp;In Asia, geopolitical jitters have risen after Japan’s ruling coalition lost control of the upper house in Sunday’s election, weakening Prime Minister Shigeru Ishiba’s domestic standing ahead of Trump’s trade ultimatum.<h2>Precious metals remain range-bound</h2>According to Reuters, gold has gained over 25 per cent this year, bolstered by central bank dovishness, US trade tensions, and safe-haven demand. Yet, price action remains within a narrow band as traders wait for clarity.&nbsp;As of 0854 AM in Singapore, Bloomberg reported that spot gold was up slightly at $3,353.80 per ounce, while the Bloomberg Dollar Spot Index fell 0.1 per cent.&nbsp;Silver inched up 0.1% to $38.22, platinum rose 0.3% to $1,425.11, and palladium gained 0.2% to $1,243.47, as per Reuters. (With inputs from the agencies)

Analysts note that dovish Fed signals may support gold, amid tariff concerns. Various Fed members are split on rate cuts, and geopolitical tensions persist, particularly following Japan recent election. Gold has gained over 25% this year but remains within a narrow price range.

On Monday, Gold prices held ground as investors weighed dovish signals from the US Federal Reserve and the looming August 1 trade deadline set by President Donald Trump. The precious metal hovered near the $3,350 per ounce mark, amid markets jittery over tariff escalation and interest rate moves, As per Reuters, spot gold was flat at $3,352.19 per ounce at 0250 GMT, while US gold futures held at $3,358.70. Traders are awaiting the Fed’s policy meeting next week as fresh rate cut cues may emerge, particularly as inflation remains uncertain under the current US trade strategy. “The dollar has made a subdued start to the week, which has left the door open for gold to post gains early doors with tariff deadlines looming large,” said Tim Waterer, Chief Market Analyst at KCM Trade, to Reuters. Waterer added that if no new deals emerge before the August 1 deadline, gold could aim for a renewed rally towards $3,400 or beyond. Trump’s tariff and Powell succession in focus The gold market has also been driven by diverging views within the Fed. Governor Christopher Waller last week backed a rate cut, echoing a dovish stance, as per Bloomberg. His colleague Michelle Bowman is also open to a reduction, though some policymakers reportedly remain cautious, fearing that Trump’s tariffs could trigger persistent inflation. The Fed’s internal split coincides with growing pressure from President Trump. As the US President is reportedly weighing candidates to replace Fed Chair Jerome Powell when his term ends in May. As per Bloomberg, the White House has dismissed a Wall Street Journal report suggesting Treasury Secretary Scott Bessent warned Trump of adverse market reactions if Powell was removed. Gold tends to benefit from lower interest rates, as it does not yield interest and becomes more attractive relative to bonds in a low-rate environment. Trade talks and geopolitical tensions add to uncertainty On the trade front, investors are keeping an eye on the negotiations between the US and the European Union closely. US Commerce Secretary Howard Lutnick has remained optimistic about a deal with Brussels. Meanwhile, Reuters reported that Trump may visit China ahead of the Asia-Pacific Economic Cooperation (APEC) summit later this year, or meet Xi Jinping on its sidelines. In Asia, geopolitical jitters have risen after Japan’s ruling coalition lost control of the upper house in Sunday’s election, weakening Prime Minister Shigeru Ishiba’s domestic standing ahead of Trump’s trade ultimatum. Precious metals remain range-bound According to Reuters, gold has gained over 25 per cent this year, bolstered by central bank dovishness, US trade tensions, and safe-haven demand. Yet, price action remains within a narrow band as traders wait for clarity. As of 0854 AM in Singapore, Bloomberg reported that spot gold was up slightly at $3,353.80 per ounce, while the Bloomberg Dollar Spot Index fell 0.1 per cent. Silver inched up 0.1% to $38.22, platinum rose 0.3% to $1,425.11, and palladium gained 0.2% to $1,243.47, as per Reuters. (With inputs from the agencies)

Gold steadies near $3,350 as markets eye Federal Reserve rate cuts and President Trump’s tariff August deadline.

Gold prices remain steady as markets await Fed, US trade moves

British consumer confidence took a sharp hit last quarter, marking its biggest fall since late 2022. This comes amid inflation concerns and job market anxiety continue to weigh heavily on households. That’s according to a new Deloitte survey, which warns of deepening worries over income, debt, and employment security.&nbsp;As per the Deloitte survey, the UK's consumer confidence index dropped by 2.6 percentage points to 10.4% in the second quarter of 2025, the lowest level since Q1 2024. This is the first major fall in almost three years, excluding a minor 0.2-point dip last year, which the firm said was statistically insignificant. The last time confidence plunged at this scale was during the third quarter of 2022, when inflation peaked above 10 per cent and financial markets were rattled by then Prime Minister Liz Truss’ controversial mini-budget.<h2>Job market jitters dominate household fears</h2>Deloitte’s survey revealed that worries over job security and income growth were the main drivers of the decline in sentiment. “Concerns of a slowing labour market have left consumers worried… while persistent inflation and a high cost of living have negatively impacted sentiment towards personal debt,” said Celine Fenech, Deloitte’s consumer insight lead.&nbsp;The findings come just days after official data showed the UK unemployment rate rose to 4.7% in the three months to May, its highest since 2021. At the same time, inflation accelerated to 3.6% in June, a six-month high.<h2>Hiring slowdown adds to economic unease</h2>Employers have been warning about rising employment costs. The higher national minimum wage, rolled out in April, along with increased employment taxes and planned legal changes making it harder to dismiss staff, have made businesses more reluctant to hire, according to industry groups.&nbsp;While Deloitte’s data reflects rising household concern, it contrasts slightly with GfK’s sentiment survey, Britain’s longest-running, which showed consumer morale climbing to its highest since December.<h2>Economic outlook still uncertain</h2>Deloitte’s survey, based on responses from 3,200 consumers between June 13 and 16, measures six key factors: job security, job opportunities, income, debt, children’s welfare, and general health and wellbeing. Interestingly, a separate question on the state of the overall economy showed a 3.9-point improvement from the previous quarter, though sentiment is still 18.4 percentage points below where it stood a year ago.&nbsp;“Activity in the UK has slowed in recent months,” said Deloitte chief economist Ian Stewart, “but an uptick in business confidence seen in the latest Deloitte CFO Survey testifies to continued resilience amid geopolitical uncertainties.”&nbsp;The sharp drop in consumer sentiment adds to signs that Britain’s economy may be entering a more fragile phase, with households squeezed by inflation, businesses slowing hiring, and the job market showing cracks. Whether recent upticks in business confidence can reverse the mood remains to be seen.&nbsp;(With inputs from the agencies) &nbsp;

Key factors include worries over job security and income growth, exacerbated by rising unemployment and inflation. While business confidence slightly improved, the overall economic outlook remains uncertain, indicating a fragile phase.

British consumer confidence took a sharp hit last quarter, marking its biggest fall since late 2022. This comes amid inflation concerns and job market anxiety continue to weigh heavily on households. That’s according to a new Deloitte survey, which warns of deepening worries over income, debt, and employment security. As per the Deloitte survey, the UK's consumer confidence index dropped by 2.6 percentage points to 10.4% in the second quarter of 2025, the lowest level since Q1 2024. This is the first major fall in almost three years, excluding a minor 0.2-point dip last year, which the firm said was statistically insignificant. The last time confidence plunged at this scale was during the third quarter of 2022, when inflation peaked above 10 per cent and financial markets were rattled by then Prime Minister Liz Truss’ controversial mini-budget. Job market jitters dominate household fears Deloitte’s survey revealed that worries over job security and income growth were the main drivers of the decline in sentiment. “Concerns of a slowing labour market have left consumers worried… while persistent inflation and a high cost of living have negatively impacted sentiment towards personal debt,” said Celine Fenech, Deloitte’s consumer insight lead. The findings come just days after official data showed the UK unemployment rate rose to 4.7% in the three months to May, its highest since 2021. At the same time, inflation accelerated to 3.6% in June, a six-month high. Hiring slowdown adds to economic unease Employers have been warning about rising employment costs. The higher national minimum wage, rolled out in April, along with increased employment taxes and planned legal changes making it harder to dismiss staff, have made businesses more reluctant to hire, according to industry groups. While Deloitte’s data reflects rising household concern, it contrasts slightly with GfK’s sentiment survey, Britain’s longest-running, which showed consumer morale climbing to its highest since December. Economic outlook still uncertain Deloitte’s survey, based on responses from 3,200 consumers between June 13 and 16, measures six key factors: job security, job opportunities, income, debt, children’s welfare, and general health and wellbeing. Interestingly, a separate question on the state of the overall economy showed a 3.9-point improvement from the previous quarter, though sentiment is still 18.4 percentage points below where it stood a year ago. “Activity in the UK has slowed in recent months,” said Deloitte chief economist Ian Stewart, “but an uptick in business confidence seen in the latest Deloitte CFO Survey testifies to continued resilience amid geopolitical uncertainties.” The sharp drop in consumer sentiment adds to signs that Britain’s economy may be entering a more fragile phase, with households squeezed by inflation, businesses slowing hiring, and the job market showing cracks. Whether recent upticks in business confidence can reverse the mood remains to be seen. (With inputs from the agencies)

British consumer confidence plummeted last quarter, registering its steepest decline since late 2022, amid persistent inflation and job market concerns. A Deloitte survey revealed a drop of 2.6 percentage points in the UK’s consumer confidence index, marking the lowest level since Q1 2024.

UK consumer sentiment posts steepest drop in nearly 3 years: Deloitte

Despite growing fears of fresh US tariffs, South Korea’s exports held up in early July. This refelects that the trade-dependent economy is still showing resilience. But officials in Seoul are on edge, as the clock ticks toward an August 1 deadline when broader US duties could take effect.<h2>Early July exports signal momentum</h2>According to data released by South Korea’s customs office on Monday, exports rose 4.1 per cent in the first 20 days of July after adjusting for working-day differences, compared to the same period last year. While that’s slightly below June’s 6.8 per cent growth, it marks a solid performance amid rising global trade tensions.&nbsp;Unadjusted exports, however, dipped 2.2 per cent. Imports fell 4.3 per cent, resulting in a trade surplus of $465 million. As per Bloomberg, the figures may calm near-term concerns over export demand but reveal underlying risks from deepening global protectionism.<h2>Tariff risks remain as Trump deadline nears</h2>South Korea is racing to secure a trade deal with the United States ahead of the August 1 deadline, when US President Donald Trump is expected to decide on a 25 per cent reciprocal tariff on all Korean goods. While that broader measure is still paused, key industries are already feeling the pinch. Auto and steel exports continue to face sector-specific duties, and Trump has warned that semiconductors, South Korea’s top export, could be next.&nbsp;Steel shipments dropped 9.7 per cent in early July, reflecting the impact of the existing 50 per cent tariff. Meanwhile, exports to the US fell 2.1 per cent, and imports from the US plunged 28.4 per cent, signalling the strain on bilateral trade.<h2>Political setbacks hamper Seoul’s response</h2>South Korea’s response has been delayed by months of political gridlock following the impeachment of former President Yoon Suk Yeol. The new administration under President Lee Jae Myung is now trying to speed up talks with Washington, but Seoul still lags behind other allies in securing tariff exemptions.&nbsp;To support the economy, the government has rolled out a supplementary budget worth 31.8 trillion won ($23.3 billion), aimed at shielding households and industries from external shocks.<h2>Semiconductors shine, but outlook still fragile</h2>Despite the uncertainty, semiconductors, South Korea’s largest export saw a 16.5 per cent rise in early July, offering some relief. Auto exports also climbed 3.9 per cent. However, shipments to China, a key market, slipped 5.9 per cent, while exports to the European Union rose 3 per cent.&nbsp;South Korea’s economy shrank in the first quarter of 2025, prompting the central bank to cut interest rates to 2.5 per cent and slash its annual growth forecast to just 0.8 per cent.&nbsp;Early July trade figures show that South Korea’s export engine is still running, for now. But with the threat of sweeping US tariffs just days away, the outlook for Asia’s fourth-largest economy hangs in the balance.&nbsp;&nbsp;(With inputs from agencies)

Political delays hinder negotiations for tariff exemptions, while a supplementary budget aims to shield the economy from external shocks amidst uncertain global trade conditions.

Despite growing fears of fresh US tariffs, South Korea’s exports held up in early July. This refelects that the trade-dependent economy is still showing resilience. But officials in Seoul are on edge, as the clock ticks toward an August 1 deadline when broader US duties could take effect. Early July exports signal momentum According to data released by South Korea’s customs office on Monday, exports rose 4.1 per cent in the first 20 days of July after adjusting for working-day differences, compared to the same period last year. While that’s slightly below June’s 6.8 per cent growth, it marks a solid performance amid rising global trade tensions. Unadjusted exports, however, dipped 2.2 per cent. Imports fell 4.3 per cent, resulting in a trade surplus of $465 million. As per Bloomberg, the figures may calm near-term concerns over export demand but reveal underlying risks from deepening global protectionism. Tariff risks remain as Trump deadline nears South Korea is racing to secure a trade deal with the United States ahead of the August 1 deadline, when US President Donald Trump is expected to decide on a 25 per cent reciprocal tariff on all Korean goods. While that broader measure is still paused, key industries are already feeling the pinch. Auto and steel exports continue to face sector-specific duties, and Trump has warned that semiconductors, South Korea’s top export, could be next. Steel shipments dropped 9.7 per cent in early July, reflecting the impact of the existing 50 per cent tariff. Meanwhile, exports to the US fell 2.1 per cent, and imports from the US plunged 28.4 per cent, signalling the strain on bilateral trade. Political setbacks hamper Seoul’s response South Korea’s response has been delayed by months of political gridlock following the impeachment of former President Yoon Suk Yeol. The new administration under President Lee Jae Myung is now trying to speed up talks with Washington, but Seoul still lags behind other allies in securing tariff exemptions. To support the economy, the government has rolled out a supplementary budget worth 31.8 trillion won ($23.3 billion), aimed at shielding households and industries from external shocks. Semiconductors shine, but outlook still fragile Despite the uncertainty, semiconductors, South Korea’s largest export saw a 16.5 per cent rise in early July, offering some relief. Auto exports also climbed 3.9 per cent. However, shipments to China, a key market, slipped 5.9 per cent, while exports to the European Union rose 3 per cent. South Korea’s economy shrank in the first quarter of 2025, prompting the central bank to cut interest rates to 2.5 per cent and slash its annual growth forecast to just 0.8 per cent. Early July trade figures show that South Korea’s export engine is still running, for now. But with the threat of sweeping US tariffs just days away, the outlook for Asia’s fourth-largest economy hangs in the balance. (With inputs from agencies)

South Korea's exports rose 4.1% in early July, reflecting resilience amidst fears of new US tariffs. While adjusted figures show growth, unadjusted exports fell by 2.2%, and imports dipped 4.3%, yielding a trade surplus of $465 million.

South Korea’s exports remain strong as US tariff threat looms

On Monday, the Japanese yen remained firm after Prime Minister Shigeru Ishiba’s ruling coalition suffered a historic defeat in upper house elections. This raised fears of possible political instability in the world’s fourth-largest economy. As global markets eyed implications for policy and trade, while Japanese markets were closed for a holiday, the yen became an early signal of investor unease.<h2>Coalition party's defeat setback deepens uncertainty</h2>Japan’s Liberal Democratic Party (LDP) secured only 47 seats in the upper house vote. The LDP is falling short of the 50 seats which is needed for a majority, marking the first time since 1955 that the ruling party lacks control in either legislative chamber. According to Reuters, this adds pressure on Prime Minister Shigeru Ishiba, who had already lost the lower house majority in October.&nbsp;Though the poll result does not automatically end Ishiba’s premiership but it has weakened his position. “PM Ishiba has been defiant in his stance to stay the course… but his hand has been sufficiently weakened,” said Chris Weston, head of research at Pepperstone, as quoted by Reuters.<h2>Yen firms, bonds under pressure</h2>In early Monday trading before soaring some gains, the yen strengthened as much as 0.7 per cent against the US dollar, according to Bloomberg. It traded at 148.32 per dollar, close to last week’s 3.5-month low, and also gained slightly against the euro at 172.64.“Uncertainty usually tends to favour the yen, at least initially,” said Rodrigo Catril, a currency strategist at National Australia Bank in Sydney, as quoted by Bloomberg.&nbsp;However, Japanese government bonds (JGBs) continue to remain volatile. Yields on 30-year debt surged to record highs last week as concerns mounted over the country’s fiscal direction under a weakened government.<h2>All eyes on US tariffs</h2>Markets are also watching how Ishiba navigates potential alliances in parliament. Analysts suggest that one option could be partnering with the centrist Democratic Party for the People (DPP) to secure a working majority. This move can reportedly offer some short-term stability to Ishiba.&nbsp;&nbsp;But all of this is unfolding just as Japan attempts to reach a crucial trade agreement with the US before an August 1 deadline. As per Bloomberg, US President Donald Trump’s tariff stance has hardened, raising the risk of fresh duties on Japanese and European goods. EU envoys are expected to meet this week to prepare for a possible no-deal outcome.<h2>Asian market reaction&nbsp;</h2>Amid growing trade tension outside Japan, Asian markets opened cautiously. Nikkei futures were flat, while US equity futures edged 0.1 per cent higher in early Asia trade. The euro remained stable at $1.1632, while the British pound last traded at $1.1341.&nbsp;Meanwhile, the New Zealand dollar slipped 0.18 per cent to $0.5951 after second-quarter inflation data came in below expectations, fuelling bets of a rate cut. In crypto markets, bitcoin fell 1 per cent to $116,939, staying below its recent record high of $123,153. (With inputs from agencies)&nbsp;

Although Ishiba remains PM, his position has weakened. The yen rose 0.7% against the dollar, while Japanese bonds saw increased volatility. Markets are closely monitoring potential alliances in parliament and ongoing trade negotiations with the US as tensions escalate.

On Monday, the Japanese yen remained firm after Prime Minister Shigeru Ishiba’s ruling coalition suffered a historic defeat in upper house elections. This raised fears of possible political instability in the world’s fourth-largest economy. As global markets eyed implications for policy and trade, while Japanese markets were closed for a holiday, the yen became an early signal of investor unease. Coalition party's defeat setback deepens uncertainty Japan’s Liberal Democratic Party (LDP) secured only 47 seats in the upper house vote. The LDP is falling short of the 50 seats which is needed for a majority, marking the first time since 1955 that the ruling party lacks control in either legislative chamber. According to Reuters, this adds pressure on Prime Minister Shigeru Ishiba, who had already lost the lower house majority in October. Though the poll result does not automatically end Ishiba’s premiership but it has weakened his position. “PM Ishiba has been defiant in his stance to stay the course… but his hand has been sufficiently weakened,” said Chris Weston, head of research at Pepperstone, as quoted by Reuters. Yen firms, bonds under pressure In early Monday trading before soaring some gains, the yen strengthened as much as 0.7 per cent against the US dollar, according to Bloomberg. It traded at 148.32 per dollar, close to last week’s 3.5-month low, and also gained slightly against the euro at 172.64. “Uncertainty usually tends to favour the yen, at least initially,” said Rodrigo Catril, a currency strategist at National Australia Bank in Sydney, as quoted by Bloomberg. However, Japanese government bonds (JGBs) continue to remain volatile. Yields on 30-year debt surged to record highs last week as concerns mounted over the country’s fiscal direction under a weakened government. All eyes on US tariffs Markets are also watching how Ishiba navigates potential alliances in parliament. Analysts suggest that one option could be partnering with the centrist Democratic Party for the People (DPP) to secure a working majority. This move can reportedly offer some short-term stability to Ishiba. But all of this is unfolding just as Japan attempts to reach a crucial trade agreement with the US before an August 1 deadline. As per Bloomberg, US President Donald Trump’s tariff stance has hardened, raising the risk of fresh duties on Japanese and European goods. EU envoys are expected to meet this week to prepare for a possible no-deal outcome. Asian market reaction Amid growing trade tension outside Japan, Asian markets opened cautiously. Nikkei futures were flat, while US equity futures edged 0.1 per cent higher in early Asia trade. The euro remained stable at $1.1632, while the British pound last traded at $1.1341. Meanwhile, the New Zealand dollar slipped 0.18 per cent to $0.5951 after second-quarter inflation data came in below expectations, fuelling bets of a rate cut. In crypto markets, bitcoin fell 1 per cent to $116,939, staying below its recent record high of $123,153. (With inputs from agencies)

Following a historic defeat for Prime Minister Shigeru Ishiba’s coalition in upper house elections, the Yen on Monday strengthened. The LDP won only 47 seats, lacking the majority needed.

Yen gains as Japan faces a political shake-up after a major election blow

On Monday, as investors took stock of fresh European sanctions on Russian energy exports, diplomatic uncertainty over Iran, and the looming risk of new US tariffs, oil prices barely moved. Despite escalating geopolitical tension, traders remained cautious, with crude benchmarks locked in a narrow range. As per Reuters, Brent crude went up by just 5 cents to $69.33 a barrel in early trade, while US West Texas Intermediate (WTI) added 2 cents to $67.36. This follows Friday's trend, but oil remains under pressure after slipping 1.5 per cent last week, its first weekly drop in July, as per Bloomberg.&nbsp;Since May, crude prices have been trending higher, but remain nearly 7 per cent lower for the year. Analysts say a mix of oversupply, trade war fears, and diplomatic standoffs has kept energy markets in a holding pattern.<h2>India’s Nayara caught in crossfire as EU targets Russian energy</h2>Last week, the European Union approved its 18th package of sanctions against Russia. This comes as the West intensifies pressure on Moscow over the war in Ukraine. The measures include a lower price cap on Russian crude, banking restrictions, and new curbs on refined fuels. The sanctions also reportedly hit India’s Nayara Energy, a major buyer and exporter of Russian oil products.&nbsp;By slamming the move as “unjustified and illegal", Rosneft, Russia’s top oil producer and a stakeholder in Nayara warns that this will threaten India’s energy security. Kremlin spokesperson Dmitry Peskov added that Russia had developed “a certain immunity” to Western sanctions, as quoted by Reuters.<h2>Iran to resume nuclear talks as fresh sanctions in play</h2>Meanwhile, another sanctioned oil producer, Iran, is preparing for renewed nuclear talks. According to an Iranian foreign ministry spokesperson quoted by Reuters, negotiations with Britain, France, and Germany are expected to take place in Istanbul on Friday.&nbsp;The talks follow warnings from European powers that failure to re-engage on the 2015 nuclear deal could trigger new international sanctions. This further adds uncertainty to the global crude supply.<h2>US eyes tariffs</h2>Across the Atlantic, markets are closely watching the next phase of the US-EU trade standoff. US tariffs on European imports are set to kick in on August 1. However, US Commerce Secretary Howard Lutnick said on Sunday he remains “confident” that a trade deal can be reached, as reported by Reuters. Bloomberg reports that EU envoys could meet as early as this week to plan countermeasures, including possible restrictions on US energy firms, in the event of a no-deal outcome. President Donald Trump’s negotiating position is said to have hardened ahead of the August deadline.&nbsp;Meanwhile, in the US, oilfield activity is showing signs of a slowdown. The number of active oil rigs fell by two last week to 422, the lowest since September 2021, according to Baker Hughes data released on Friday. Though this suggests slightly tighter domestic supply, analysts say it’s unlikely to drive major price changes without a broader shift in geopolitical risk or demand outlook.&nbsp;With sanctions tightening on Russia and Iran, and trade tensions heating up between the US and Europe, oil markets are stuck in a delicate balancing act. As traders await clarity on both diplomacy and demand, prices may remain range-bound in the near term.&nbsp;(With inputs from the agencies)

Brent crude rose minimally to $69.33 a barrel, and WTI increased to $67.36, despite a 1.5% drop last week. Analysts note crude prices are nearly 7% lower for the year, affected by oversupply and trade wars.

On Monday, as investors took stock of fresh European sanctions on Russian energy exports, diplomatic uncertainty over Iran, and the looming risk of new US tariffs, oil prices barely moved. Despite escalating geopolitical tension, traders remained cautious, with crude benchmarks locked in a narrow range. As per Reuters, Brent crude went up by just 5 cents to $69.33 a barrel in early trade, while US West Texas Intermediate (WTI) added 2 cents to $67.36. This follows Friday's trend, but oil remains under pressure after slipping 1.5 per cent last week, its first weekly drop in July, as per Bloomberg. Since May, crude prices have been trending higher, but remain nearly 7 per cent lower for the year. Analysts say a mix of oversupply, trade war fears, and diplomatic standoffs has kept energy markets in a holding pattern. India’s Nayara caught in crossfire as EU targets Russian energy Last week, the European Union approved its 18th package of sanctions against Russia. This comes as the West intensifies pressure on Moscow over the war in Ukraine. The measures include a lower price cap on Russian crude, banking restrictions, and new curbs on refined fuels. The sanctions also reportedly hit India’s Nayara Energy, a major buyer and exporter of Russian oil products. By slamming the move as “unjustified and illegal", Rosneft, Russia’s top oil producer and a stakeholder in Nayara warns that this will threaten India’s energy security. Kremlin spokesperson Dmitry Peskov added that Russia had developed “a certain immunity” to Western sanctions, as quoted by Reuters. Iran to resume nuclear talks as fresh sanctions in play Meanwhile, another sanctioned oil producer, Iran, is preparing for renewed nuclear talks. According to an Iranian foreign ministry spokesperson quoted by Reuters, negotiations with Britain, France, and Germany are expected to take place in Istanbul on Friday. The talks follow warnings from European powers that failure to re-engage on the 2015 nuclear deal could trigger new international sanctions. This further adds uncertainty to the global crude supply. US eyes tariffs Across the Atlantic, markets are closely watching the next phase of the US-EU trade standoff. US tariffs on European imports are set to kick in on August 1. However, US Commerce Secretary Howard Lutnick said on Sunday he remains “confident” that a trade deal can be reached, as reported by Reuters. Bloomberg reports that EU envoys could meet as early as this week to plan countermeasures, including possible restrictions on US energy firms, in the event of a no-deal outcome. President Donald Trump’s negotiating position is said to have hardened ahead of the August deadline. Meanwhile, in the US, oilfield activity is showing signs of a slowdown. The number of active oil rigs fell by two last week to 422, the lowest since September 2021, according to Baker Hughes data released on Friday. Though this suggests slightly tighter domestic supply, analysts say it’s unlikely to drive major price changes without a broader shift in geopolitical risk or demand outlook. With sanctions tightening on Russia and Iran, and trade tensions heating up between the US and Europe, oil markets are stuck in a delicate balancing act. As traders await clarity on both diplomacy and demand, prices may remain range-bound in the near term. (With inputs from the agencies)

Oil prices on Monday remained stagnant as investors assessed new European sanctions on Russian energy, diplomatic uncertainties around Iran, and upcoming US tariffs.

Oil prices stay steady amid Russia sanctions and tariff fears collide

A fragile trade truce between the United States and China is already reshaping global supply chains. In June 2025, China sharply increased its shipments of rare earth magnets, a critical component in electric vehicles, smartphones, wind turbines, and fighter jets, after a deal brokered in Geneva. This US-China deal helped ease months of escalating trade tensions around rare earth magnet.&nbsp;According to Chinese customs data reported by Bloomberg, Beijing's overall magnet exports jumped by 158 per cent from May to June. This comes as China relaxed some of the export controls it had imposed in April. As per Bloomberg, shipments to the US surged more than sevenfold, a sign that diplomatic pressure from Washington, coupled with supply chain panic across Western industries, may have forced Beijing to act.<h2>Exports bounce back, but remain below pre-curb levels</h2>As per official customs figures cited by Bloomberg, China’s total exports of rare earth magnets surged to 3,188 tonnes in June, up from just 1,238 tonnes in May. While this marks a major month-on-month recovery, overall shipments remain significantly lower than volumes recorded before April, when Beijing first imposed export controls.&nbsp;The jump in exports to the United States was particularly dramatic. From a mere 46 tonnes in May, Chinese magnet shipments to the US soared to 353 tonnes in June, easing supply constraints that had threatened to disrupt production lines for electric vehicles, electronics, and defence equipment.&nbsp;Rare earth magnets, especially neodymium-iron-boron (NdFeB) magnets are indispensable in modern technology due to their strength and efficiency in compact systems. China produces the vast majority of the world’s supply, making its trade policies a global chokepoint.&nbsp;China’s rare earth controls fuelled global alarmBeijing’s restrictions, introduced in April, targeted seven of the 17 rare earth elements. The move appeared aimed at weaponising China’s dominance in critical minerals amid rising trade and tech tensions with the United States. The curbs also extended to magnet exports, directly impacting high-value manufacturing.&nbsp;The curtailment triggered concerns across global industries and prompted strong reactions from Washington. While the US had already invested in domestic rare earth processing and allied supply chains, the shortfall in magnets, essential for military and clean energy technologies, exposed strategic vulnerabilities.<h2>Trade thaw in Geneva</h2>After weeks of backchannel diplomacy, US and Chinese negotiators struck a deal in June during a summit in Geneva. Soon after, US President Donald Trump publicly announced that China had agreed to resume “full supply” of rare earths and magnets as part of the agreement to ease tensions. “This agreement ensures that American industry will not be held hostage by supply disruptions,” Trump said, as quoted by Bloomberg. On July 1, US Treasury Secretary Scott Bessent confirmed a rebound in shipments but warned that “the pace of shipments is still not going fast enough” to meet surging demand.&nbsp;The rare earth magnet surge offers short-term relief to manufacturers, especially in the US. But it also reinforces longer-term strategic concerns about global overdependence on China. While the Geneva truce appears to have calmed immediate disruptions, policymakers in Washington are expected to push ahead with diversification efforts, including increased investment in domestic production and sourcing deals with allies like Australia and Japan. As per Bloomberg, China still accounts for over 85 per cent of global rare earth magnet output. The June surge may reflect diplomatic progress, but it also underscores how geopolitical risk remains embedded in the critical minerals trade.&nbsp;(With inputs from agencies) &nbsp;

Following a June 2025 deal, China magnet exports surged by 158%, with shipments to the US increasing over sevenfold. Despite this recovery, exports remain below pre April levels after China imposed prior controls. 

A fragile trade truce between the United States and China is already reshaping global supply chains. In June 2025, China sharply increased its shipments of rare earth magnets, a critical component in electric vehicles, smartphones, wind turbines, and fighter jets, after a deal brokered in Geneva. This US-China deal helped ease months of escalating trade tensions around rare earth magnet. According to Chinese customs data reported by Bloomberg, Beijing's overall magnet exports jumped by 158 per cent from May to June. This comes as China relaxed some of the export controls it had imposed in April. As per Bloomberg, shipments to the US surged more than sevenfold, a sign that diplomatic pressure from Washington, coupled with supply chain panic across Western industries, may have forced Beijing to act. Exports bounce back, but remain below pre-curb levels As per official customs figures cited by Bloomberg, China’s total exports of rare earth magnets surged to 3,188 tonnes in June, up from just 1,238 tonnes in May. While this marks a major month-on-month recovery, overall shipments remain significantly lower than volumes recorded before April, when Beijing first imposed export controls. The jump in exports to the United States was particularly dramatic. From a mere 46 tonnes in May, Chinese magnet shipments to the US soared to 353 tonnes in June, easing supply constraints that had threatened to disrupt production lines for electric vehicles, electronics, and defence equipment. Rare earth magnets, especially neodymium-iron-boron (NdFeB) magnets are indispensable in modern technology due to their strength and efficiency in compact systems. China produces the vast majority of the world’s supply, making its trade policies a global chokepoint. China’s rare earth controls fuelled global alarm Beijing’s restrictions, introduced in April, targeted seven of the 17 rare earth elements. The move appeared aimed at weaponising China’s dominance in critical minerals amid rising trade and tech tensions with the United States. The curbs also extended to magnet exports, directly impacting high-value manufacturing. The curtailment triggered concerns across global industries and prompted strong reactions from Washington. While the US had already invested in domestic rare earth processing and allied supply chains, the shortfall in magnets, essential for military and clean energy technologies, exposed strategic vulnerabilities. Trade thaw in Geneva After weeks of backchannel diplomacy, US and Chinese negotiators struck a deal in June during a summit in Geneva. Soon after, US President Donald Trump publicly announced that China had agreed to resume “full supply” of rare earths and magnets as part of the agreement to ease tensions. “This agreement ensures that American industry will not be held hostage by supply disruptions,” Trump said, as quoted by Bloomberg. On July 1, US Treasury Secretary Scott Bessent confirmed a rebound in shipments but warned that “the pace of shipments is still not going fast enough” to meet surging demand. The rare earth magnet surge offers short-term relief to manufacturers, especially in the US. But it also reinforces longer-term strategic concerns about global overdependence on China. While the Geneva truce appears to have calmed immediate disruptions, policymakers in Washington are expected to push ahead with diversification efforts, including increased investment in domestic production and sourcing deals with allies like Australia and Japan. As per Bloomberg, China still accounts for over 85 per cent of global rare earth magnet output. The June surge may reflect diplomatic progress, but it also underscores how geopolitical risk remains embedded in the critical minerals trade. (With inputs from agencies)

A trade truce between the US and China has significantly altered global supply chains, particularly in rare earth magnets essential for various technologies.

China’s rare earth magnet exports jump 158% after trade truce with US

Tesla and SpaceX CEO Elon Musk on Sunday (Jul 20) announced plans to launch Baby Grok, a new kid-friendly version of his artificial intelligence chatbot, Grok. The application is expected to be a simplified version of Grok AI, developed by his AI startup xAI, and will be tailored for safe and educational content for children.&nbsp;In a statement on X, the former head of DOGE wrote, “We’re going to make Baby Grok @xAI, an app dedicated to kid-friendly content.” Replying to another, Musk said that the chatbot is “inspired by Baby Groot,” a comic character from Marvel’s Guardians of the Galaxy.&nbsp;This comes shortly after his AI startup launched Grok4, which includes features like advanced training capabilities. “I think it may discover new technologies as soon as later this year. And I would be shocked if it has not done so next year. So I would expect Grok to literally discover new technologies that are actually useful no later than next year and maybe [the] end of this year,” Musk said during a livestream.&nbsp;The update follows criticism of Musk’s chatbot after it shared multiple unprompted antisemitic comments on X. The billionaire has earlier faced backlash over Ani, one of Grok’s earlier user modes, for using flirtatious dialogue and a suggestive avatar. This raised concerns that children can still interact with the bot in “kids mode”.&nbsp;Last Year in May, Musk shared his views on kids using social media, saying it is “bad” for them. “A lot of social media is bad for kids, as there is extreme competition between social media AIs to maximize dopamine!” he wrote on X, sharing a clip from an interview. In the clip, he says, “I would urge parents to limit the amount of social media that children can see because they're being programmed by a dopamine-maximizing AI.”

The update follows criticism of Musk’s chatbot after it shared multiple unprompted antisemitic comments on X. The billionaire has earlier faced backlash over Ani, one of Grok’s earlier user modes.

Tesla and SpaceX CEO Elon Musk on Sunday (Jul 20) announced plans to launch Baby Grok, a new kid-friendly version of his artificial intelligence chatbot, Grok. The application is expected to be a simplified version of Grok AI, developed by his AI startup xAI, and will be tailored for safe and educational content for children. In a statement on X, the former head of DOGE wrote, “We’re going to make Baby Grok @xAI, an app dedicated to kid-friendly content.” Replying to another, Musk said that the chatbot is “inspired by Baby Groot,” a comic character from Marvel’s Guardians of the Galaxy. This comes shortly after his AI startup launched Grok4, which includes features like advanced training capabilities. “I think it may discover new technologies as soon as later this year. And I would be shocked if it has not done so next year. So I would expect Grok to literally discover new technologies that are actually useful no later than next year and maybe [the] end of this year,” Musk said during a livestream. The update follows criticism of Musk’s chatbot after it shared multiple unprompted antisemitic comments on X. The billionaire has earlier faced backlash over Ani, one of Grok’s earlier user modes, for using flirtatious dialogue and a suggestive avatar. This raised concerns that children can still interact with the bot in “kids mode”. Last Year in May, Musk shared his views on kids using social media, saying it is “bad” for them. “A lot of social media is bad for kids, as there is extreme competition between social media AIs to maximize dopamine!” he wrote on X, sharing a clip from an interview. In the clip, he says, “I would urge parents to limit the amount of social media that children can see because they're being programmed by a dopamine-maximizing AI.”

The update follows criticism of Musk’s chatbot after it shared multiple unprompted antisemitic comments on X. The billionaire has earlier faced backlash over Ani, one of Grok’s earlier user modes.

Musk announces Baby Grok, kid-friendly version of his chatbot – What will this AI app do?

The Trump administration’s sweeping cuts to US foreign aid have left dozens of critical water and sanitation projects abandoned midstream across developing countries, exposing vulnerable populations to mounting risks of disease, displacement, and insecurity.&nbsp;As per an exclusive investigation by Reuters, at least 21 water-related infrastructure projects in 16 countries have been halted after Washington froze hundreds of millions of dollars in funding earlier this year. The abrupt policy reversal has not only stranded construction sites but also endangered the lives of millions who had been promised clean drinking water and sanitation facilities by the United States.<h2>From cement sacks to security threats</h2>Projects once seen as symbols of US goodwill now lie incomplete, pipes rusting, trenches open, and bags of cement gathering dust. In Nepal, construction of over 100 water systems was paused, with 6,500 cement bags and vital plumbing material left idle. The Himalayan nation now plans to complete the job with domestic funds, according to Water Minister Pradeep Yadav.&nbsp;In Kenya’s Taita Taveta County, work on a key irrigation canal was stopped abruptly, with only 220 metres of a planned 3.1-kilometre channel built. Local leaders warn of a looming flood disaster, as unplastered canal walls may collapse during heavy rains, endangering lives and farmland. “Without plaster, the walls will collapse in heavy rain,” warned community leader Juma Kobo.&nbsp;According to internal memos accessed by Reuters, only 15 per cent of a five-year, $100 million USAID project in Kenya had been completed before contractors were told to withdraw. Nearly $100,000 worth of unused materials remain exposed to looting and degradation.&nbsp;A separate memo by the US embassy in Nairobi, cited by Reuters, noted the “reputational risk” from leaving such projects unfinished, suggesting that extremist groups like al Shabaab could exploit public anger to bolster recruitment.<h2>Lebanon, Congo, and a global toll</h2>In Lebanon, a USAID-backed initiative to supply solar-powered water utilities was cancelled, costing 70 jobs and forcing utilities back onto costly diesel systems, energy adviser Suzy Hoayek told Reuters. Meanwhile, in conflict-ridden eastern Congo, abandoned water kiosks now double as play areas for children. One mother, Evelyne Mbaswa, said her 16-year-old son disappeared after venturing out to fetch water.&nbsp;“These cuts are not just numbers on a budget sheet,” said Tjada D’Oyen McKenna, CEO of Mercy Corps. “This is the unraveling of progress, stability and human dignity.”&nbsp;Research published in The Lancet warned that the aid rollbacks could result in an additional 14 million deaths by 2030, many from preventable diseases linked to unsafe water and poor sanitation.<h2>Why Trump pulled the plug?</h2>The Trump administration has defended the foreign aid rollback, saying US taxpayer money should benefit Americans first. According to Reuters, senior Republicans argue that agencies like USAID had drifted from core missions, funding “woke” projects such as LGBT rights initiatives in Serbia.&nbsp;The water and sanitation programme had an annual budget of $450 million, a small share of the $61 billion in total US foreign aid. However, it had strong bipartisan support prior to 2025. A 2014 law that doubled water aid funding was passed unanimously by Congress.&nbsp;Yet since January, the dismantling of USAID operations has also stalled food, medical and infrastructure aid across multiple continents. Although the US State Department has restored some emergency aid, Secretary of State Marco Rubio has said future assistance will be “more limited”.&nbsp;One exception is Jordan, where a $6 billion desalination plant project was revived after direct diplomatic intervention by King Abdullah, according to Reuters.&nbsp;But for countries like Ethiopia, Tanzania, and the Democratic Republic of the Congo, the future remains uncertain.<h2>Local solutions, uncertain futures</h2>In Kenya’s flood-prone Taita Taveta, residents are now scrambling for solutions. Community leaders plan to sell leftover cement and steel cables from the halted USAID site to fund basic backfilling.&nbsp;Farmer Mary Kibachia, 74, whose home was flooded after the project halted, summed up the sentiment: “Where can I go? This is home.” &nbsp;

At least 21 infrastructure projects in 16 nations were halted after funding freezes. In Nepal, over 100 water system constructions stalled, leaving crucial materials idle. Kenya irrigation canal work stopped abruptly, raising flood risks. 

The Trump administration’s sweeping cuts to US foreign aid have left dozens of critical water and sanitation projects abandoned midstream across developing countries, exposing vulnerable populations to mounting risks of disease, displacement, and insecurity. As per an exclusive investigation by Reuters, at least 21 water-related infrastructure projects in 16 countries have been halted after Washington froze hundreds of millions of dollars in funding earlier this year. The abrupt policy reversal has not only stranded construction sites but also endangered the lives of millions who had been promised clean drinking water and sanitation facilities by the United States. From cement sacks to security threats Projects once seen as symbols of US goodwill now lie incomplete, pipes rusting, trenches open, and bags of cement gathering dust. In Nepal, construction of over 100 water systems was paused, with 6,500 cement bags and vital plumbing material left idle. The Himalayan nation now plans to complete the job with domestic funds, according to Water Minister Pradeep Yadav. In Kenya’s Taita Taveta County, work on a key irrigation canal was stopped abruptly, with only 220 metres of a planned 3.1-kilometre channel built. Local leaders warn of a looming flood disaster, as unplastered canal walls may collapse during heavy rains, endangering lives and farmland. “Without plaster, the walls will collapse in heavy rain,” warned community leader Juma Kobo. According to internal memos accessed by Reuters, only 15 per cent of a five-year, $100 million USAID project in Kenya had been completed before contractors were told to withdraw. Nearly $100,000 worth of unused materials remain exposed to looting and degradation. A separate memo by the US embassy in Nairobi, cited by Reuters, noted the “reputational risk” from leaving such projects unfinished, suggesting that extremist groups like al Shabaab could exploit public anger to bolster recruitment. Lebanon, Congo, and a global toll In Lebanon, a USAID-backed initiative to supply solar-powered water utilities was cancelled, costing 70 jobs and forcing utilities back onto costly diesel systems, energy adviser Suzy Hoayek told Reuters. Meanwhile, in conflict-ridden eastern Congo, abandoned water kiosks now double as play areas for children. One mother, Evelyne Mbaswa, said her 16-year-old son disappeared after venturing out to fetch water. “These cuts are not just numbers on a budget sheet,” said Tjada D’Oyen McKenna, CEO of Mercy Corps. “This is the unraveling of progress, stability and human dignity.” Research published in The Lancet warned that the aid rollbacks could result in an additional 14 million deaths by 2030, many from preventable diseases linked to unsafe water and poor sanitation. Why Trump pulled the plug? The Trump administration has defended the foreign aid rollback, saying US taxpayer money should benefit Americans first. According to Reuters, senior Republicans argue that agencies like USAID had drifted from core missions, funding “woke” projects such as LGBT rights initiatives in Serbia. The water and sanitation programme had an annual budget of $450 million, a small share of the $61 billion in total US foreign aid. However, it had strong bipartisan support prior to 2025. A 2014 law that doubled water aid funding was passed unanimously by Congress. Yet since January, the dismantling of USAID operations has also stalled food, medical and infrastructure aid across multiple continents. Although the US State Department has restored some emergency aid, Secretary of State Marco Rubio has said future assistance will be “more limited”. One exception is Jordan, where a $6 billion desalination plant project was revived after direct diplomatic intervention by King Abdullah, according to Reuters. But for countries like Ethiopia, Tanzania, and the Democratic Republic of the Congo, the future remains uncertain. Local solutions, uncertain futures In Kenya’s flood-prone Taita Taveta, residents are now scrambling for solutions. Community leaders plan to sell leftover cement and steel cables from the halted USAID site to fund basic backfilling. Farmer Mary Kibachia, 74, whose home was flooded after the project halted, summed up the sentiment: “Where can I go? This is home.”

The Trump administration's significant cuts to US foreign aid have led to the abandonment of essential water and sanitation projects in developing countries, putting vulnerable populations at risk of disease and insecurity.

Trump’s aid cuts stall global water projects, exposing millions to new risks

US President Donald Trump’s administration reportedly considered axing several federal contracts with Elon Musk’s SpaceX, but found most of them too vital to scrap. This is according to a detailed Wall Street Journal investigation published on July 19, citing senior officials familiar with the matter. The review was initiated after Trump’s public spat with Musk in June 2025, when the tech billionaire criticised Trump on social media platforms. In response, Trump suggested axing Musk’s government deals as a cost-cutting move.&nbsp;“The easiest way to save federal dollars is to cancel SpaceX contracts,” Trump posted on Truth Social last month. Following the post, Trump-appointed officials at the General Services Administration reportedly circulated internal requests to NASA, the Pentagon, and other departments for a contract-by-contract breakdown of all federal business awarded to SpaceX.<h2>Most SpaceX contracts deemed too essential</h2>However, the WSJ report says most of SpaceX’s federal contracts, especially those linked to national security and human spaceflight were flagged as irreplaceable. The Pentagon, NASA, and intelligence agencies reportedly warned that unwinding such deals would cripple key missions.&nbsp;One senior official familiar with the review told The Wall Street Journal that “the government has no real alternatives” when it comes to rocket launches, crew missions or military-grade satellite internet.&nbsp;The review ultimately failed to produce any major cancellations. Instead, the findings reinforced SpaceX’s strategic role in US defence and space infrastructure, from flying GPS satellites and ferrying NASA astronauts to supplying Starlink-based military communications.<h2>Behind-the-scenes diplomacy and Starlink’s growing role</h2>While Musk and Trump continue to spar in public, SpaceX President Gwynne Shotwell reportedly held quiet meetings with White House officials in recent weeks, indicating efforts to contain the fallout. Meanwhile, SpaceX has secured fresh deals, including a $5.9 billion agreement to launch 28 national security missions for the US Space Force, as per WSJ.&nbsp;Musk’s space company is also central to the US’s internet-in-space ambitions. Its Starshield unit, a military variant of the Starlink constellation, is under a classified contract with the US intelligence community, the report adds.&nbsp;NASA too is heavily dependent on Musk’s company. The Crew Dragon capsule remains the only American spacecraft certified to carry astronauts to and from the International Space Station.&nbsp;Earlier this year, Musk reportedly threatened to suspend Dragon missions during a clash over political pressure. However, he later backed down after internal talks.<h2>No signs of slowdown</h2>Despite political heat, SpaceX continues to dominate global launch markets. The company is expected to launch a crewed NASA mission to the ISS later this month and is ramping up Starlink deployments globally, &nbsp;including in geopolitically sensitive regions like Ukraine and the Indo-Pacific.&nbsp;While Trump’s call for a SpaceX “review” briefly triggered alarm, the WSJ report makes clear: Musk’s company remains entrenched in US federal architecture and irreplaceable in the current geopolitical and technological landscape. &nbsp;

However, a Wall Street Journal report revealed most contracts, especially those vital to national security and space missions, were deemed irreplaceable. 

US President Donald Trump’s administration reportedly considered axing several federal contracts with Elon Musk’s SpaceX, but found most of them too vital to scrap. This is according to a detailed Wall Street Journal investigation published on July 19, citing senior officials familiar with the matter. The review was initiated after Trump’s public spat with Musk in June 2025, when the tech billionaire criticised Trump on social media platforms. In response, Trump suggested axing Musk’s government deals as a cost-cutting move. “The easiest way to save federal dollars is to cancel SpaceX contracts,” Trump posted on Truth Social last month. Following the post, Trump-appointed officials at the General Services Administration reportedly circulated internal requests to NASA, the Pentagon, and other departments for a contract-by-contract breakdown of all federal business awarded to SpaceX. Most SpaceX contracts deemed too essential However, the WSJ report says most of SpaceX’s federal contracts, especially those linked to national security and human spaceflight were flagged as irreplaceable. The Pentagon, NASA, and intelligence agencies reportedly warned that unwinding such deals would cripple key missions. One senior official familiar with the review told The Wall Street Journal that “the government has no real alternatives” when it comes to rocket launches, crew missions or military-grade satellite internet. The review ultimately failed to produce any major cancellations. Instead, the findings reinforced SpaceX’s strategic role in US defence and space infrastructure, from flying GPS satellites and ferrying NASA astronauts to supplying Starlink-based military communications. Behind-the-scenes diplomacy and Starlink’s growing role While Musk and Trump continue to spar in public, SpaceX President Gwynne Shotwell reportedly held quiet meetings with White House officials in recent weeks, indicating efforts to contain the fallout. Meanwhile, SpaceX has secured fresh deals, including a $5.9 billion agreement to launch 28 national security missions for the US Space Force, as per WSJ. Musk’s space company is also central to the US’s internet-in-space ambitions. Its Starshield unit, a military variant of the Starlink constellation, is under a classified contract with the US intelligence community, the report adds. NASA too is heavily dependent on Musk’s company. The Crew Dragon capsule remains the only American spacecraft certified to carry astronauts to and from the International Space Station. Earlier this year, Musk reportedly threatened to suspend Dragon missions during a clash over political pressure. However, he later backed down after internal talks. No signs of slowdown Despite political heat, SpaceX continues to dominate global launch markets. The company is expected to launch a crewed NASA mission to the ISS later this month and is ramping up Starlink deployments globally, including in geopolitically sensitive regions like Ukraine and the Indo-Pacific. While Trump’s call for a SpaceX “review” briefly triggered alarm, the WSJ report makes clear: Musk’s company remains entrenched in US federal architecture and irreplaceable in the current geopolitical and technological landscape.

Trump’s administration considered cutting federal contracts with SpaceX due to Musk's criticism, but found most contracts essential, especially for national security and space missions.

Trump review spares critical SpaceX contracts: WSJ

UAE-based Al Futtaim Retail has agreed to buy nearly half of Saudi Arabia’s Cenomi Retail for 2.5 billion riyals ($666 million), in a strategic move to tap into the kingdom’s consumer market and support the struggling retailer’s revival plan. As reported by Bloomberg, Al Futtaim will purchase 49.95 per cent of Cenomi Retail’s share capital from existing shareholders including Saudi FAS Holding Company and FAS Real Estate Company.&nbsp;The shares will be acquired at 44 riyals apiece, a 33 per cent premium to Cenomi’s last closing price on the Saudi stock exchange. The deal also includes a shareholder loan agreement worth at least 1.3 billion riyals, further underlining Al Futtaim’s commitment to Cenomi’s financial stability.<h2>Cenomi’s turnaround plan gets lifeline</h2>Cenomi Retail had earlier disclosed it was in advanced talks with a strategic investor to help it “overcome existing challenges” and “maintain business continuity.” The firm has been working on a turnaround strategy that involves offloading non-core brands and reducing debt burdens.&nbsp;The capital injection by Al Futtaim is expected to stabilise operations and provide the liquidity required to implement the restructuring plan.<h2>Strategic push into Saudi market</h2>Al Futtaim’s investment marks a significant regional play, especially as Saudi Arabia ramps up consumer spending and modernises its retail sector under Vision 2030. The Dubai-based conglomerate is betting on Cenomi’s restructured portfolio and long-term growth prospects in the Kingdom.&nbsp;As of now, neither Al Futtaim nor Cenomi has disclosed further details regarding the operational integration or board-level representation following the deal. However, the investment underscores growing UAE-Saudi commercial ties and regional consolidation in the retail sector.<h2>Background: Cenomi’s changing fortunes</h2>Cenomi Retail, previously known as Fawaz Alhokair Group, has been grappling with financial stress and operational inefficiencies in recent years. The firm has been actively seeking to streamline its brand portfolio and reduce reliance on underperforming segments.&nbsp;According to Bloomberg, this latest stake sale and loan arrangement are expected to offer much-needed breathing room as the company charts a more focused and sustainable path forward.&nbsp;&nbsp;

The shares, bought at a premium, include a 1.3 billion riyal loan to support Cenomi restructuring and operational stability amid efforts to enhance its brand portfolio and reduce debt.

UAE-based Al Futtaim Retail has agreed to buy nearly half of Saudi Arabia’s Cenomi Retail for 2.5 billion riyals ($666 million), in a strategic move to tap into the kingdom’s consumer market and support the struggling retailer’s revival plan. As reported by Bloomberg, Al Futtaim will purchase 49.95 per cent of Cenomi Retail’s share capital from existing shareholders including Saudi FAS Holding Company and FAS Real Estate Company. The shares will be acquired at 44 riyals apiece, a 33 per cent premium to Cenomi’s last closing price on the Saudi stock exchange. The deal also includes a shareholder loan agreement worth at least 1.3 billion riyals, further underlining Al Futtaim’s commitment to Cenomi’s financial stability. Cenomi’s turnaround plan gets lifeline Cenomi Retail had earlier disclosed it was in advanced talks with a strategic investor to help it “overcome existing challenges” and “maintain business continuity.” The firm has been working on a turnaround strategy that involves offloading non-core brands and reducing debt burdens. The capital injection by Al Futtaim is expected to stabilise operations and provide the liquidity required to implement the restructuring plan. Strategic push into Saudi market Al Futtaim’s investment marks a significant regional play, especially as Saudi Arabia ramps up consumer spending and modernises its retail sector under Vision 2030. The Dubai-based conglomerate is betting on Cenomi’s restructured portfolio and long-term growth prospects in the Kingdom. As of now, neither Al Futtaim nor Cenomi has disclosed further details regarding the operational integration or board-level representation following the deal. However, the investment underscores growing UAE-Saudi commercial ties and regional consolidation in the retail sector. Background: Cenomi’s changing fortunes Cenomi Retail, previously known as Fawaz Alhokair Group, has been grappling with financial stress and operational inefficiencies in recent years. The firm has been actively seeking to streamline its brand portfolio and reduce reliance on underperforming segments. According to Bloomberg, this latest stake sale and loan arrangement are expected to offer much-needed breathing room as the company charts a more focused and sustainable path forward.

Al Futtaim Retail will acquire 49.95% of Saudi Arabia's Cenomi Retail for 2.5 billion riyals, aiding its revival plan.

Al Futtaim steps in with $666 million lifeline for Saudi retailer Cenomi

US chip giant Nvidia is facing fresh hurdles in its China operations, as supplies of its H20 artificial intelligence chips, the most powerful semiconductors currently permitted for export to China, remain sharply constrained. According to The Information, Nvidia has informed Chinese customers that stock of the H20 is limited, even as the company prepares to resume sales under tighter US scrutiny. The H20 chip, part of Nvidia’s custom lineup tailored to comply with Washington’s sweeping export restrictions, has emerged as a litmus test for how US firms navigate the geopolitical semiconductor battleground. The Biden administration’s export control regime, intensified in April, forced Nvidia to cancel manufacturing capacity reserved at Taiwan Semiconductor Manufacturing Company (TSMC) and void customer orders in China, according to The Information, which cited sources familiar with the matter.&nbsp;While Nvidia has officially announced plans to resume shipments of the H20, the move hinges on the US government’s willingness to grant export licences, a process that remains politically sensitive and tightly regulated. “Manufacturing new chips from scratch could take nine months,” Nvidia CEO Jensen Huang reportedly said at a media event in Beijing this week, according to The Information. Huang noted that TSMC had already reallocated H20 production lines to serve other clients after the US ban.&nbsp;Despite Huang’s recent optimism, he hinted that licensing approvals for Chinese clients would arrive swiftly, The Information reported that Nvidia currently has no plans to restart H20 production. The report, however, did not cite specific sources for this claim. Nvidia declined to comment on the article, and Reuters noted that it could not independently verify the report’s claims. Meanwhile, Nvidia is working on a new GPU product tailored for Chinese markets, the RTX Pro GPU, which is designed to comply fully with US export rules. The announcement indicates that Nvidia is attempting to maintain a foothold in China’s AI race without violating Washington’s tightening guardrails on advanced semiconductor exports.<h2>The broader backdrop</h2>The H20, along with two other chips, the L20 and L2, were introduced by Nvidia last year in response to the US Commerce Department’s restrictions that banned the sale of its flagship A100 and H100 GPUs to China. Beijing has long viewed Nvidia’s chips as critical to advancing its domestic AI ecosystem. But the H20 chip’s limited availability has slowed down several large-scale AI training efforts in the country. Meanwhile, Chinese tech giants like Alibaba and Baidu are racing to develop alternatives using domestic hardware or chips from other suppliers, including Huawei.&nbsp;The escalating chip rivalry comes amid broader US-China tensions, with semiconductors now at the heart of a multi-layered technological and strategic competition. With supply of the H20 chip strained and production not yet resumed, Nvidia’s role in China remains uncertain. The US company is clearly navigating a fine line, attempting to maintain market presence in one of the world’s largest AI frontiers while staying within the bounds of export laws crafted to curb China’s technological ascent.&nbsp;As per Reuters, the outlook hinges not only on Nvidia’s supply chains, but also on Washington’s licensing stance in the months ahead. &nbsp;

As per Reuters, the outlook hinges not only on Nvidia supply chains, but also on Washington licensing stance in the months ahead.

US chip giant Nvidia is facing fresh hurdles in its China operations, as supplies of its H20 artificial intelligence chips, the most powerful semiconductors currently permitted for export to China, remain sharply constrained. According to The Information, Nvidia has informed Chinese customers that stock of the H20 is limited, even as the company prepares to resume sales under tighter US scrutiny. The H20 chip, part of Nvidia’s custom lineup tailored to comply with Washington’s sweeping export restrictions, has emerged as a litmus test for how US firms navigate the geopolitical semiconductor battleground. The Biden administration’s export control regime, intensified in April, forced Nvidia to cancel manufacturing capacity reserved at Taiwan Semiconductor Manufacturing Company (TSMC) and void customer orders in China, according to The Information, which cited sources familiar with the matter. While Nvidia has officially announced plans to resume shipments of the H20, the move hinges on the US government’s willingness to grant export licences, a process that remains politically sensitive and tightly regulated. “Manufacturing new chips from scratch could take nine months,” Nvidia CEO Jensen Huang reportedly said at a media event in Beijing this week, according to The Information. Huang noted that TSMC had already reallocated H20 production lines to serve other clients after the US ban. Despite Huang’s recent optimism, he hinted that licensing approvals for Chinese clients would arrive swiftly, The Information reported that Nvidia currently has no plans to restart H20 production. The report, however, did not cite specific sources for this claim. Nvidia declined to comment on the article, and Reuters noted that it could not independently verify the report’s claims. Meanwhile, Nvidia is working on a new GPU product tailored for Chinese markets, the RTX Pro GPU, which is designed to comply fully with US export rules. The announcement indicates that Nvidia is attempting to maintain a foothold in China’s AI race without violating Washington’s tightening guardrails on advanced semiconductor exports. The broader backdrop The H20, along with two other chips, the L20 and L2, were introduced by Nvidia last year in response to the US Commerce Department’s restrictions that banned the sale of its flagship A100 and H100 GPUs to China. Beijing has long viewed Nvidia’s chips as critical to advancing its domestic AI ecosystem. But the H20 chip’s limited availability has slowed down several large-scale AI training efforts in the country. Meanwhile, Chinese tech giants like Alibaba and Baidu are racing to develop alternatives using domestic hardware or chips from other suppliers, including Huawei. The escalating chip rivalry comes amid broader US-China tensions, with semiconductors now at the heart of a multi-layered technological and strategic competition. With supply of the H20 chip strained and production not yet resumed, Nvidia’s role in China remains uncertain. The US company is clearly navigating a fine line, attempting to maintain market presence in one of the world’s largest AI frontiers while staying within the bounds of export laws crafted to curb China’s technological ascent. As per Reuters, the outlook hinges not only on Nvidia’s supply chains, but also on Washington’s licensing stance in the months ahead.

According to The Information, Nvidia has informed Chinese customers that stock of the H20 is limited, even as the company prepares to resume sales under tighter US scrutiny.

Nvidia’s China AI chip plans hit pause as H20 supply remains tight

Reports of sales figure manipulation have sent shockwaves across China's EV market. Two prominent Chinese electric vehicle makers, Neta and Geely’s Zeekr, have been allegedly caught inflating sales figures to meet aggressive targets, as per a Reuters investigation. The companies allegedly booked cars as “sold” by purchasing insurance policies before handing them over to customers, a loophole that allowed them to report higher sales without actual buyers.&nbsp;The scheme is reportedly widely used in China’s hyper-competitive auto market, highlighting growing concerns about unethical sales practices in the country’s booming EV sector.<h2>Neta’s inflated sales crossed 64,000 units</h2>According to documents reviewed by Reuters and testimonies from dealers and customers, Neta reported early sales of at least 64,719 vehicles between January 2023 and March 2024. That figure represents more than half of the 117,000 vehicles it claimed to have sold during the period.&nbsp;The EV startup, owned by Zhejiang Hozon New Energy Automobile, achieved this by pre-purchasing insurance policies for unsold cars and registering them as sold. This practice is permissible under China’s car registration rules, which allow sales to be recorded once a vehicle is insured.&nbsp;A dealer affiliated with Neta, speaking anonymously to Reuters, confirmed that, “in Neta’s case, the company made it clear to dealers that the cars were insured ahead of time and therefore counted as sold". The dealer added that many of these zero-mileage vehicles still sit unsold in warehouses.<h2>Zeekr also named in state media exposé</h2>China's premium EV brand under Geely Auto, Zeekr reportedly used the same strategy in late 2024. According to dealers and sales documents seen by Reuters, Zeekr worked with Xiamen C&amp;D Automobile, a state-owned dealership operator, to register cars under the company’s name and claim them as sales.&nbsp;A buyer in southern China told Reuters that, “the Zeekr salesman said the car would be 3,000 yuan cheaper and I’d also get a 10,000 yuan charging coupon.”&nbsp;China’s state-run China Securities Journal recently confirmed the story, saying Zeekr had indeed sold vehicles that were already insured before buyers took delivery. The publication interviewed customers who discovered, after the fact, that their cars were not insured in their name and were denied refunds.<h2>‘Zero-mileage used cars’ under scrutiny</h2>These pre-registered cars are known as “zero-mileage used cars” in Chinese auto parlance, technically used, yet never driven. This tactic, while not illegal, has reportedly come under intense scrutiny amid a brutal price war and overcapacity in China’s EV market.According to the People’s Daily, the Communist Party’s official mouthpiece, such practices distort market data and hurt consumer trust. The paper published a scathing editorial last month condemning the “zero-mileage” model.&nbsp;Adding to the pressure, four dealership associations in the wealthy Yangtze River Delta recently appealed to automakers to set realistic sales targets, warning that sales staff were being “forced to falsify performance”.<h2>Neta’s fall from grace and financial woes</h2>Neta’s alleged manipulation began in late 2022, reportedly to secure state EV subsidies before they expired. While the brand hit a sales peak of 152,000 units in 2022, its figures plunged the following year. By the first quarter of 2025, it had sold just 1,215 vehicles, according to the China Association of Automobile Manufacturers (CAAM).&nbsp;As per state media, its parent firm, Zhejiang Hozon has now entered bankruptcy proceedings.<h2>Government crackdown looms</h2>China’s Ministry of Industry and Information Technology (MIIT) is reportedly preparing a crackdown on the “insurance-first” sales strategy. According to an industry publication under the China Association of Auto Manufacturers, new rules may ban vehicles from resale within six months of registration, which is a direct response to the zero-mileage loophole.&nbsp;While Geely denied the China Securities Journal report through a spokesperson, it declined to comment on Reuters’ findings. Zeekr, Neta, and Xiamen C&amp;D did not respond to requests for comment.&nbsp;As the world’s largest EV market faces a reckoning, Chinese regulators are under pressure to restore credibility and transparency, before the sales race becomes a full-blown scandal.&nbsp;

Chinese Ministry of Industry and Information Technology is reportedly preparing a crackdown on the insurance-first sales strategy. As the world’s largest EV market faces a reckoning, Chinese regulators are under pressure to restore credibility and transparency. 

Reports of sales figure manipulation have sent shockwaves across China's EV market. Two prominent Chinese electric vehicle makers, Neta and Geely’s Zeekr, have been allegedly caught inflating sales figures to meet aggressive targets, as per a Reuters investigation. The companies allegedly booked cars as “sold” by purchasing insurance policies before handing them over to customers, a loophole that allowed them to report higher sales without actual buyers. The scheme is reportedly widely used in China’s hyper-competitive auto market, highlighting growing concerns about unethical sales practices in the country’s booming EV sector. Neta’s inflated sales crossed 64,000 units According to documents reviewed by Reuters and testimonies from dealers and customers, Neta reported early sales of at least 64,719 vehicles between January 2023 and March 2024. That figure represents more than half of the 117,000 vehicles it claimed to have sold during the period. The EV startup, owned by Zhejiang Hozon New Energy Automobile, achieved this by pre-purchasing insurance policies for unsold cars and registering them as sold. This practice is permissible under China’s car registration rules, which allow sales to be recorded once a vehicle is insured. A dealer affiliated with Neta, speaking anonymously to Reuters, confirmed that, “in Neta’s case, the company made it clear to dealers that the cars were insured ahead of time and therefore counted as sold". The dealer added that many of these zero-mileage vehicles still sit unsold in warehouses. Zeekr also named in state media exposé China's premium EV brand under Geely Auto, Zeekr reportedly used the same strategy in late 2024. According to dealers and sales documents seen by Reuters, Zeekr worked with Xiamen C&D Automobile, a state-owned dealership operator, to register cars under the company’s name and claim them as sales. A buyer in southern China told Reuters that, “the Zeekr salesman said the car would be 3,000 yuan cheaper and I’d also get a 10,000 yuan charging coupon.” China’s state-run China Securities Journal recently confirmed the story, saying Zeekr had indeed sold vehicles that were already insured before buyers took delivery. The publication interviewed customers who discovered, after the fact, that their cars were not insured in their name and were denied refunds. ‘Zero-mileage used cars’ under scrutiny These pre-registered cars are known as “zero-mileage used cars” in Chinese auto parlance, technically used, yet never driven. This tactic, while not illegal, has reportedly come under intense scrutiny amid a brutal price war and overcapacity in China’s EV market. According to the People’s Daily, the Communist Party’s official mouthpiece, such practices distort market data and hurt consumer trust. The paper published a scathing editorial last month condemning the “zero-mileage” model. Adding to the pressure, four dealership associations in the wealthy Yangtze River Delta recently appealed to automakers to set realistic sales targets, warning that sales staff were being “forced to falsify performance”. Neta’s fall from grace and financial woes Neta’s alleged manipulation began in late 2022, reportedly to secure state EV subsidies before they expired. While the brand hit a sales peak of 152,000 units in 2022, its figures plunged the following year. By the first quarter of 2025, it had sold just 1,215 vehicles, according to the China Association of Automobile Manufacturers (CAAM). As per state media, its parent firm, Zhejiang Hozon has now entered bankruptcy proceedings. Government crackdown looms China’s Ministry of Industry and Information Technology (MIIT) is reportedly preparing a crackdown on the “insurance-first” sales strategy. According to an industry publication under the China Association of Auto Manufacturers, new rules may ban vehicles from resale within six months of registration, which is a direct response to the zero-mileage loophole. While Geely denied the China Securities Journal report through a spokesperson, it declined to comment on Reuters’ findings. Zeekr, Neta, and Xiamen C&D did not respond to requests for comment. As the world’s largest EV market faces a reckoning, Chinese regulators are under pressure to restore credibility and transparency, before the sales race becomes a full-blown scandal.

Chinese electric vehicle makers, Neta and Geely’s Zeekr, have been allegedly booked cars as “sold” by purchasing insurance policies before handing them over to customers, a loophole that allowed them to report higher sales without actual buyers.

China’s Zeekr, Neta under fire for inflating EV sales figures

Amid global trade&nbsp;turmoil, India’s equity markets have weathered global headwinds with notable resilience in the first half of 2025. According to EY’s latest report, the Indian IPO market recorded 108 listings, raising $4.6 billion, despite a 30 per cent drop in deal volume year-on-year.&nbsp;While the number of IPOs declined, the capital raised fell only marginally by 2 per cent, signalling that fewer but stronger companies tapped the public markets. As per EY, this trend reflects a more selective and strategic approach by both issuers and investors, with firms focusing on market timing and valuations amid a volatile global backdrop.<h2>Geopolitical and macro pressures delay listings</h2>Ongoing global uncertainties, including geopolitical tensions and macroeconomic risks, have led many high-profile companies to defer their IPOs, said the report, as quoted by ANI. However, the report adds that many firms have already secured regulatory clearances and are waiting for more favourable market conditions in the second half of 2025.&nbsp;The IPO pipeline remains strong, particularly in high-growth sectors such as technology (including fintech) and healthcare, indicating pent-up demand and investor interest.<h2>India among top 3 IPO markets</h2>Globally, the IPO market logged 539 deals raising $61.4 billion in H1 2025. While the deal count remained flat year-on-year, total proceeds saw a significant jump. The second quarter saw 241 IPOs worth $31.5 billion, making it the weakest Q2 for IPO volume since 2020, according to EY.&nbsp;India, despite the dip, remains among the top three IPO markets globally, alongside the US and Greater China, each of which hosted more than 100 listings in the first six months of 2025.<h2>Outlook: Signs of rebound in H2</h2>Looking ahead, EY’s outlook remains optimistic. The report anticipates a rebound in the second half of 2025, supported by stabilising macroeconomic conditions, easing inflation, and pro-capital market government policies.&nbsp;“The combination of improving domestic economic fundamentals and a robust pipeline of quality issuers positions India’s IPO market for potential acceleration as investor sentiment strengthens and market volatility subsides,” the EY report noted, as quoted by ANI.&nbsp;Despite short-term volatility, India’s IPO ecosystem appears well-poised for growth, driven by institutional confidence, sectoral depth, and regulatory readiness.&nbsp;

Looking ahead, EY outlook remains optimistic. The report anticipates a rebound in the second half of 2025, supported by stabilising macroeconomic conditions, easing inflation, and pro-capital market government policies.

Amid global trade turmoil, India’s equity markets have weathered global headwinds with notable resilience in the first half of 2025. According to EY’s latest report, the Indian IPO market recorded 108 listings, raising $4.6 billion, despite a 30 per cent drop in deal volume year-on-year. While the number of IPOs declined, the capital raised fell only marginally by 2 per cent, signalling that fewer but stronger companies tapped the public markets. As per EY, this trend reflects a more selective and strategic approach by both issuers and investors, with firms focusing on market timing and valuations amid a volatile global backdrop. Geopolitical and macro pressures delay listings Ongoing global uncertainties, including geopolitical tensions and macroeconomic risks, have led many high-profile companies to defer their IPOs, said the report, as quoted by ANI. However, the report adds that many firms have already secured regulatory clearances and are waiting for more favourable market conditions in the second half of 2025. The IPO pipeline remains strong, particularly in high-growth sectors such as technology (including fintech) and healthcare, indicating pent-up demand and investor interest. India among top 3 IPO markets Globally, the IPO market logged 539 deals raising $61.4 billion in H1 2025. While the deal count remained flat year-on-year, total proceeds saw a significant jump. The second quarter saw 241 IPOs worth $31.5 billion, making it the weakest Q2 for IPO volume since 2020, according to EY. India, despite the dip, remains among the top three IPO markets globally, alongside the US and Greater China, each of which hosted more than 100 listings in the first six months of 2025. Outlook: Signs of rebound in H2 Looking ahead, EY’s outlook remains optimistic. The report anticipates a rebound in the second half of 2025, supported by stabilising macroeconomic conditions, easing inflation, and pro-capital market government policies. “The combination of improving domestic economic fundamentals and a robust pipeline of quality issuers positions India’s IPO market for potential acceleration as investor sentiment strengthens and market volatility subsides,” the EY report noted, as quoted by ANI. Despite short-term volatility, India’s IPO ecosystem appears well-poised for growth, driven by institutional confidence, sectoral depth, and regulatory readiness.

Amid the global market turmoil, in the first half of 2025, India’s equity markets recorded 108 listings, raising $4.6 billion, despite a 30 per cent drop in deal volume year-on-year, says EY report.&nbsp;

India’s IPO market holds firm in H1 2025 despite global jitters, says EY report

Amid US President Donald Trump's mounting trade tensions, the Federal Reserve is under the spotlight. But this time, it’s not about interest rates or inflation, it’s about a construction bill. What started as a $1.9 billion renovation of the Federal Reserve’s Washington, DC headquarters has now swelled to $2.5 billion. That spike has sparked outrage from Trump's allies, who are pushing for an investigation into what they claim is an “ostentatious overhaul” of the 1937-era Marriner S. Eccles Building.&nbsp;According to Bloomberg, the ballooning costs have more to do with geological quirks, engineering nightmares, and post-9/11 security requirements than rooftop gardens or VIP lifts.<h2>Trump’s circle sees a chance to go after Powell</h2>Critics from the Trump administration aren’t buying it. In a July 10 letter to Fed Chair Jerome Powell, Office of Management and Budget Director Russell Vought labelled the renovation as excessive. He pointed to “rooftop terrace gardens,” “VIP dining rooms,” and “luxury elevators” as signs of government waste. Bill Pulte, a prominent Powell critic and Trump appointee leading the Federal Housing Finance Agency, told Bloomberg he’s confident that Congress will open a probe into the cost overruns.The criticism, however, might not just be about construction. As Bloomberg noted, the controversy could provide Trump allies with a pretext to push for Powell’s removal, especially after the Fed’s refusal to cut interest rates this year, defying the White House’s pro-growth stance.<h2>Powell pushes back</h2>In his defence, Powell responded to Vought in a July 17 letter, clarifying that the “terrace gardens” are eco-friendly green roofs and that the lift expansion is meant to comply with accessibility standards, not luxury tastes. As per Bloomberg, speaking to lawmakers in June, Powell acknowledged the scale of the challenge. “No one in office wants to do a major renovation of a historic building during their term in office,” he said. “We decided to take it on because… I came to understand how badly the Eccles Building really needed a serious renovation. It never had one. It was not really safe and it was not waterproof.”<h2>It’s not luxury — it’s geology</h2>So, what exactly is driving up the price?&nbsp;The Fed’s renovation covers both the Eccles Building and the adjacent East Building, originally built in 1931. According to Bloomberg, the project includes new office space, removal of hazardous materials like asbestos and lead, replacement of outdated mechanical systems, and structural upgrades to meet modern federal security standards.&nbsp;But the most expensive part is below ground.&nbsp;Washington, DC’s Tidal Basin, once a swamp, sits on unpredictable terrain with a high-water table. Deep excavation under these historic buildings turned out to be a feat of modern engineering.&nbsp;Berkel and Company Contractors, a specialist firm, had to lower the slab beneath the Eccles Building by more than 20 feet. That involved suspending the entire structure, demolishing the old basement, and driving over 1,000 micropiles, a method used when traditional foundations aren’t viable. Berkel later received an industry award for “excellence in the face of adversity,” as noted by the Washington Building Congress.<h2>Underground builds in DC are notorious</h2>Washington isn’t an easy place to dig. As landscape architect Phia Sennett wrote for the National Trust for Historic Preservation, much of the land along the National Mall was artificially created using sediment from the Potomac River, built over creeks and marshland.&nbsp;The Fed’s expansion includes a new 318-space parking garage under the East Building’s south lawn and a five-storey annex, with four floors below ground. Such below-grade construction is common in DC due to height restrictions, but it’s also expensive and risky.&nbsp;Bloomberg pointed out that the Smithsonian’s Castle restoration, which also proposed underground expansion was shelved after projected costs hit $2 billion. The nearby National Museum of African American History and Culture required a giant waterproof “bathtub” to keep the water out, with final costs of $540 million, 50 per cent over its original estimate.&nbsp;The Fed’s renovation was also delayed by design politics. During Trump’s first term, the US Commission of Fine Arts, led by Trump appointees demanded that the building incorporate more white marble and classical design elements, reversing an earlier proposal that used more glass.&nbsp;As reported by the Associated Press and cited in Bloomberg, the Fed had to rework its architectural plans to align with the administration’s “classical architecture” mandate for federal buildings.&nbsp;Mina Wright, director at the General Services Administration, described the Fed’s review process as “tumultuous.” Speaking in 2021, she said, “They’ve had some hostile criticism at one point that was unjustified.”<h2>The firms behind the billion-dollar facelift</h2>The Fed’s renovation is being carried out by Fortus, a joint venture between Dutch engineering giant Arcadis and US-based Quinn Evans Architects. Arcadis has experience in water infrastructure and resilience, while Quinn Evans is known for restoring historic buildings, including Michigan Central Station and the National Academy of Sciences.&nbsp;Neither firm commented directly on the controversy, referring Bloomberg back to the Fed.<h2>The bottom line</h2>While critics cry foul over a $2.5 billion bill, the real story lies in the unseen layers beneath the Fed’s historic headquarters, in foundations lowered by hand, in a water-logged city that’s notoriously tough to build in, and in the tangled bureaucracy of federal design mandates.&nbsp;For Powell, the renovation may be a political liability. But as he told Congress, it was a decision made out of necessity, not extravagance: “It was not safe. And it was not waterproof.”&nbsp;

While critics cry foul over a $2.5 billion bill, the real story lies in the unseen layers beneath the Fed historic headquarters, in foundations lowered by hand, in a water logged city that notoriously tough to build in, and in the tangled bureaucracy of federal design mandates.

Amid US President Donald Trump's mounting trade tensions, the Federal Reserve is under the spotlight. But this time, it’s not about interest rates or inflation, it’s about a construction bill. What started as a $1.9 billion renovation of the Federal Reserve’s Washington, DC headquarters has now swelled to $2.5 billion. That spike has sparked outrage from Trump's allies, who are pushing for an investigation into what they claim is an “ostentatious overhaul” of the 1937-era Marriner S. Eccles Building. According to Bloomberg, the ballooning costs have more to do with geological quirks, engineering nightmares, and post-9/11 security requirements than rooftop gardens or VIP lifts. Trump’s circle sees a chance to go after Powell Critics from the Trump administration aren’t buying it. In a July 10 letter to Fed Chair Jerome Powell, Office of Management and Budget Director Russell Vought labelled the renovation as excessive. He pointed to “rooftop terrace gardens,” “VIP dining rooms,” and “luxury elevators” as signs of government waste. Bill Pulte, a prominent Powell critic and Trump appointee leading the Federal Housing Finance Agency, told Bloomberg he’s confident that Congress will open a probe into the cost overruns. The criticism, however, might not just be about construction. As Bloomberg noted, the controversy could provide Trump allies with a pretext to push for Powell’s removal, especially after the Fed’s refusal to cut interest rates this year, defying the White House’s pro-growth stance. Powell pushes back In his defence, Powell responded to Vought in a July 17 letter, clarifying that the “terrace gardens” are eco-friendly green roofs and that the lift expansion is meant to comply with accessibility standards, not luxury tastes. As per Bloomberg, speaking to lawmakers in June, Powell acknowledged the scale of the challenge. “No one in office wants to do a major renovation of a historic building during their term in office,” he said. “We decided to take it on because… I came to understand how badly the Eccles Building really needed a serious renovation. It never had one. It was not really safe and it was not waterproof.” It’s not luxury — it’s geology So, what exactly is driving up the price? The Fed’s renovation covers both the Eccles Building and the adjacent East Building, originally built in 1931. According to Bloomberg, the project includes new office space, removal of hazardous materials like asbestos and lead, replacement of outdated mechanical systems, and structural upgrades to meet modern federal security standards. But the most expensive part is below ground. Washington, DC’s Tidal Basin, once a swamp, sits on unpredictable terrain with a high-water table. Deep excavation under these historic buildings turned out to be a feat of modern engineering. Berkel and Company Contractors, a specialist firm, had to lower the slab beneath the Eccles Building by more than 20 feet. That involved suspending the entire structure, demolishing the old basement, and driving over 1,000 micropiles, a method used when traditional foundations aren’t viable. Berkel later received an industry award for “excellence in the face of adversity,” as noted by the Washington Building Congress. Underground builds in DC are notorious Washington isn’t an easy place to dig. As landscape architect Phia Sennett wrote for the National Trust for Historic Preservation, much of the land along the National Mall was artificially created using sediment from the Potomac River, built over creeks and marshland. The Fed’s expansion includes a new 318-space parking garage under the East Building’s south lawn and a five-storey annex, with four floors below ground. Such below-grade construction is common in DC due to height restrictions, but it’s also expensive and risky. Bloomberg pointed out that the Smithsonian’s Castle restoration, which also proposed underground expansion was shelved after projected costs hit $2 billion. The nearby National Museum of African American History and Culture required a giant waterproof “bathtub” to keep the water out, with final costs of $540 million, 50 per cent over its original estimate. The Fed’s renovation was also delayed by design politics. During Trump’s first term, the US Commission of Fine Arts, led by Trump appointees demanded that the building incorporate more white marble and classical design elements, reversing an earlier proposal that used more glass. As reported by the Associated Press and cited in Bloomberg, the Fed had to rework its architectural plans to align with the administration’s “classical architecture” mandate for federal buildings. Mina Wright, director at the General Services Administration, described the Fed’s review process as “tumultuous.” Speaking in 2021, she said, “They’ve had some hostile criticism at one point that was unjustified.” The firms behind the billion-dollar facelift The Fed’s renovation is being carried out by Fortus, a joint venture between Dutch engineering giant Arcadis and US-based Quinn Evans Architects. Arcadis has experience in water infrastructure and resilience, while Quinn Evans is known for restoring historic buildings, including Michigan Central Station and the National Academy of Sciences. Neither firm commented directly on the controversy, referring Bloomberg back to the Fed. The bottom line While critics cry foul over a $2.5 billion bill, the real story lies in the unseen layers beneath the Fed’s historic headquarters, in foundations lowered by hand, in a water-logged city that’s notoriously tough to build in, and in the tangled bureaucracy of federal design mandates. For Powell, the renovation may be a political liability. But as he told Congress, it was a decision made out of necessity, not extravagance: “It was not safe. And it was not waterproof.”

Amid mounting pressure from Trump allies, here's inside the Federal Reserve $2.5 billion construction bill.&nbsp;

Why did the Fed spend whopping $2.5 billion for revamp?

In a week marked by major political and economic uncertainty, the European Central Bank will reportedly take a big step and is expected to stand its ground. The ECB is likely to keep interest rates unchanged at 2 per cent. This reportedly comes despite growing fears of a potential 30 per cent tariff barrage from US President Donald Trump. According to Bloomberg reports, this announcement&nbsp;is due Thursday, which will be the last before a seven-week summer recess. Though there is no concrete US action yet, ECB officials have chosen&nbsp;a wait-and-watch tactic even as signs of economic strain begin to surface across Europe, Asia and Latin America. Inflation in Europe is almost near its target, but a stronger euro and fiscal trouble in France putting pressure on the outlook.&nbsp;From the Federal Reserve to the Bank of Japan, other Central Banks across the globe are also reportedly holding off major moves. In response to Trump’s widening trade war, as the economic data trickles in, September may see a wave of decisions that could reshape monetary policy.<h2>As Euro strengthens, ECB to play safe</h2>The ECB’s Governing Council is reportedly expected to stick to its “meeting-by-meeting” approach despite the rising risk. Policymakers see little reason to act in hassle as inflation near the 2 per cent target and no material impact yet seen from Trump’s tariff threats. However, the euro’s recent strength is a concern as it threatens to make European exports less competitive and could further reportedly drag inflation lower.&nbsp;Further clouding the regional outlook, France faces a potential political turmoil over its growing fiscal deficit. The ECB President Christine Lagarde is likely to acknowledge that growth risk remain “titled&nbsp;to the downside”, while it also signals that a possible cut in September can might be on the table depending on the incoming data, as per Bloomberg.<h2>What about Fed?</h2>In the United States, the Federal Reserve is reportedly in a communication blackout ahead of its July 29-30 policy meeting. But data scheduled this week will reportedly offer insights into the state of economy. Amid the growing pressure, Housing remains a weak spot.&nbsp;Bloomberg projects that in June, the existing home sales will show little movement, while new-home sales data, which will be out on Thursday, may post a slight recovery after a steep drop in May. Services PMI, durable goods orders, and S&amp;P Global’s manufacturing are also on the calendar. Though Feb Chair Jerome Powell will make brief remarks Tuesday at a banking conference, markets don’t expect any fresh policy signals before the July meeting.<h2>Asia</h2>Amid Trump’s tariffs saga, central banks across Asia are treading carefully. China’s loan prime rates data, which is expected on Monday, will reportedly remain unchanged. Meanwhile, India’s July PMIs on Thursday will reportedly offer a snapshot of business activity as domestic demand tries to offset slower global growth. Inflation data from Tokyo and factory output figure, which due Friday will help gauge consumer strength. While South Korea’s early export data, Taiwan’s employment numbers, and Singapore’s industrial production round out the region’s economic pulse.&nbsp;Australia, too, is in focus. Minutes from the Reserve Bank’s recent meeting, when it unexpectedly held rates, may signal how close it is to cutting again. RBA Governor Michele Bullock is set to speak on Thursday.<h2>UK</h2>In Britain, the economic picture remains fragile. Public finance data is due Tuesday, followed by key PMIs on Thursday and retail sales on Friday. Any negative surprises could heighten market pressure as the unemployment are rising and growth is faltering,The Bank of England will face lawmakers on Tuesday in a testimony on financial stability, after its recent report flagged risks tied to highly leveraged hedge funds and UK bond exposure.<h2>Emerging markets face inflation dilemma</h2>Several central banks in emerging markets are set to decide on interest rates this week. Turkey is reportedly expected to resume cutting rates on Thursday, potentially lowering its key rate to 43.5 per cent from 46 per cent. Nigeria, Hungary, Ukraine, and Russia also reportedly hold policy meetings.&nbsp;The Bank of Russia, in particular, may reportedly opt for a deeper cut following June’s 100 basis point reduction. As Nigeria sits at 22.2 per cent, with food and core prices rising again, inflation remains stubborn in many economies despite high rates.<h2>Latin America</h2>Under President Javier Milei, Argentina’s May GDP-proxy data, which is reportedly due Monday, could confirm a strong rebound. After liberalising currency controls and securing a $20 billion IMF deal, April’s economic activity rose nearly 8 per cent year-on-year, and forecasts for Q2 remain upbeat.&nbsp;Mexico, by contrast, is reportedly showing signs of strain. Economic activity data and mid-month inflation numbers is due mid-week and are likely to reflect slowing momentum. The central bank has reportedly hinted at slowing its easing cycle as inflation expectations remain high.&nbsp;In Brazil, mid-month inflation is reportedly expected to decline for a third straight reading, but market watchers remain cautious. 2025 inflation forecasts are still above the central bank’s target, despite falling prices.&nbsp;For now, global central banks reportedly appear to be holding their nerve. But the backdrop is shifting fast. Trump’s tariff threats, volatile currencies, and fragile political environments are forcing policymakers into a wait-and-see mode. As per Bloomberg, September could bring a flurry of rate cuts or at the very least, major course corrections. Until then, markets are in a holding pattern, scanning every data point for signs of what lies ahead. &nbsp; &nbsp;

For now, global central banks reportedly appear to be holding their nerve. But the backdrop is shifting fast. Trump tariff threats, volatile currencies, and fragile political environments are forcing policymakers into a wait-and-see mode.

In a week marked by major political and economic uncertainty, the European Central Bank will reportedly take a big step and is expected to stand its ground. The ECB is likely to keep interest rates unchanged at 2 per cent. This reportedly comes despite growing fears of a potential 30 per cent tariff barrage from US President Donald Trump. According to Bloomberg reports, this announcement is due Thursday, which will be the last before a seven-week summer recess. Though there is no concrete US action yet, ECB officials have chosen a wait-and-watch tactic even as signs of economic strain begin to surface across Europe, Asia and Latin America. Inflation in Europe is almost near its target, but a stronger euro and fiscal trouble in France putting pressure on the outlook. From the Federal Reserve to the Bank of Japan, other Central Banks across the globe are also reportedly holding off major moves. In response to Trump’s widening trade war, as the economic data trickles in, September may see a wave of decisions that could reshape monetary policy. As Euro strengthens, ECB to play safe The ECB’s Governing Council is reportedly expected to stick to its “meeting-by-meeting” approach despite the rising risk. Policymakers see little reason to act in hassle as inflation near the 2 per cent target and no material impact yet seen from Trump’s tariff threats. However, the euro’s recent strength is a concern as it threatens to make European exports less competitive and could further reportedly drag inflation lower. Further clouding the regional outlook, France faces a potential political turmoil over its growing fiscal deficit. The ECB President Christine Lagarde is likely to acknowledge that growth risk remain “titled to the downside”, while it also signals that a possible cut in September can might be on the table depending on the incoming data, as per Bloomberg. What about Fed? In the United States, the Federal Reserve is reportedly in a communication blackout ahead of its July 29-30 policy meeting. But data scheduled this week will reportedly offer insights into the state of economy. Amid the growing pressure, Housing remains a weak spot. Bloomberg projects that in June, the existing home sales will show little movement, while new-home sales data, which will be out on Thursday, may post a slight recovery after a steep drop in May. Services PMI, durable goods orders, and S&P Global’s manufacturing are also on the calendar. Though Feb Chair Jerome Powell will make brief remarks Tuesday at a banking conference, markets don’t expect any fresh policy signals before the July meeting. Asia Amid Trump’s tariffs saga, central banks across Asia are treading carefully. China’s loan prime rates data, which is expected on Monday, will reportedly remain unchanged. Meanwhile, India’s July PMIs on Thursday will reportedly offer a snapshot of business activity as domestic demand tries to offset slower global growth. Inflation data from Tokyo and factory output figure, which due Friday will help gauge consumer strength. While South Korea’s early export data, Taiwan’s employment numbers, and Singapore’s industrial production round out the region’s economic pulse. Australia, too, is in focus. Minutes from the Reserve Bank’s recent meeting, when it unexpectedly held rates, may signal how close it is to cutting again. RBA Governor Michele Bullock is set to speak on Thursday. UK In Britain, the economic picture remains fragile. Public finance data is due Tuesday, followed by key PMIs on Thursday and retail sales on Friday. Any negative surprises could heighten market pressure as the unemployment are rising and growth is faltering, The Bank of England will face lawmakers on Tuesday in a testimony on financial stability, after its recent report flagged risks tied to highly leveraged hedge funds and UK bond exposure. Emerging markets face inflation dilemma Several central banks in emerging markets are set to decide on interest rates this week. Turkey is reportedly expected to resume cutting rates on Thursday, potentially lowering its key rate to 43.5 per cent from 46 per cent. Nigeria, Hungary, Ukraine, and Russia also reportedly hold policy meetings. The Bank of Russia, in particular, may reportedly opt for a deeper cut following June’s 100 basis point reduction. As Nigeria sits at 22.2 per cent, with food and core prices rising again, inflation remains stubborn in many economies despite high rates. Latin America Under President Javier Milei, Argentina’s May GDP-proxy data, which is reportedly due Monday, could confirm a strong rebound. After liberalising currency controls and securing a $20 billion IMF deal, April’s economic activity rose nearly 8 per cent year-on-year, and forecasts for Q2 remain upbeat. Mexico, by contrast, is reportedly showing signs of strain. Economic activity data and mid-month inflation numbers is due mid-week and are likely to reflect slowing momentum. The central bank has reportedly hinted at slowing its easing cycle as inflation expectations remain high. In Brazil, mid-month inflation is reportedly expected to decline for a third straight reading, but market watchers remain cautious. 2025 inflation forecasts are still above the central bank’s target, despite falling prices. For now, global central banks reportedly appear to be holding their nerve. But the backdrop is shifting fast. Trump’s tariff threats, volatile currencies, and fragile political environments are forcing policymakers into a wait-and-see mode. As per Bloomberg, September could bring a flurry of rate cuts or at the very least, major course corrections. Until then, markets are in a holding pattern, scanning every data point for signs of what lies ahead.

Despite growing fears of a potential 30 per cent tariff barrage from US President Donald Trump, the ECB is likely to keep interest rates unchanged at 2 per cent.&nbsp;

ECB to hold rates as Trump tariff threat saga continues