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The Federal Reserve's recent meeting minutes revealed an increasing focus on long-term inflation expectations, with officials expressing concern that tariffs may trigger more persistent inflation compared to what was initially anticipated.The minutes, which were released on May 28, underscore the delicate balancing act that the Fed faces as it navigates the evolving economic landscape, particularly with respect to inflation pressures and uncertain growth prospects.A primary point of discussion among Fed officials was the rising expectations for inflation over the next five to 10 years, driven in large part by the imposition of tariffs. According to the minutes, “almost all” participants noted the risk that inflation could prove more persistent than expected, signalling that inflationary pressures might remain stubbornly high even in the face of efforts to stabilise prices.The Federal Reserve has been closely monitoring inflation as part of its broader strategy to maintain price stability. Typically, the central bank aims to keep inflation expectations well-anchored, believing that if consumers and businesses expect inflation to remain stable, it can help moderate actual price increases. However, the surge in long-term inflation expectations, as reflected by a University of Michigan survey, has raised concerns among Fed officials about the potential for longer-lasting inflationary pressures.Despite these concerns, Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable. These market indicators, including Treasury Inflation-Protected Securities (TIPS) and inflation swaps, have not shown a significant uptick in expectations of runaway inflation. The central bank has repeatedly stressed that it is focused on long-term, rather than short-term, inflation trends.The minutes also acknowledged that if inflationary pressures persist, the Federal Reserve might face a difficult setet of trade-offs in managing the economy. “Participants noted that the committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken,” the minutes stated. This reflects an increasing sense of uncertainty among policymakers about the future trajectory of both inflation and economic growth. The Fed’s ability to keep inflation under control while fostering continued economic growth and low unemployment will likely be tested in the coming months.The ongoing uncertainty surrounding the impact of government policies, particularly tariffs, on the economy was also highlighted in the minutes. The Fed officials noted that the "ultimate extent of changes to government policy and their effects on the economy were highly uncertain," a recognition that the administration's trade policies could introduce new challenges to the central bank’s ability to manage inflation.&nbsp;Uncertain future&nbsp;The uncertainty surrounding the future of inflation and government policies has already begun to influence market behaviour. Investors and economists have been closely watching signals from the Federal Reserve about its future actions, particularly regarding interest rates and monetary policy. The rise in inflation expectations, coupled with concerns over slower economic growth, could lead to more cautious decisions on the part of both the Fed and market participants.The Federal Reserve’s minutes point to a complex economic environment, one where inflation expectations are rising due to tariffs and other factors, yet growth and employment remain uncertain. While Fed officials have reassured markets that inflation expectations remain well-anchored in the long run, they also acknowledged the potential risks if these expectations continue to climb, particularly if inflationary pressures become entrenched. As the central bank faces these challenges, it will be required to balance the need for price stability with the broader economic goals of fostering growth and low unemployment.

Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable.

The Federal Reserve's recent meeting minutes revealed an increasing focus on long-term inflation expectations, with officials expressing concern that tariffs may trigger more persistent inflation compared to what was initially anticipated. The minutes, which were released on May 28, underscore the delicate balancing act that the Fed faces as it navigates the evolving economic landscape, particularly with respect to inflation pressures and uncertain growth prospects. A primary point of discussion among Fed officials was the rising expectations for inflation over the next five to 10 years, driven in large part by the imposition of tariffs. According to the minutes, “almost all” participants noted the risk that inflation could prove more persistent than expected, signalling that inflationary pressures might remain stubbornly high even in the face of efforts to stabilise prices. The Federal Reserve has been closely monitoring inflation as part of its broader strategy to maintain price stability. Typically, the central bank aims to keep inflation expectations well-anchored, believing that if consumers and businesses expect inflation to remain stable, it can help moderate actual price increases. However, the surge in long-term inflation expectations, as reflected by a University of Michigan survey, has raised concerns among Fed officials about the potential for longer-lasting inflationary pressures. Despite these concerns, Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable. These market indicators, including Treasury Inflation-Protected Securities (TIPS) and inflation swaps, have not shown a significant uptick in expectations of runaway inflation. The central bank has repeatedly stressed that it is focused on long-term, rather than short-term, inflation trends. The minutes also acknowledged that if inflationary pressures persist, the Federal Reserve might face a difficult setet of trade-offs in managing the economy. “Participants noted that the committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken,” the minutes stated. This reflects an increasing sense of uncertainty among policymakers about the future trajectory of both inflation and economic growth. The Fed’s ability to keep inflation under control while fostering continued economic growth and low unemployment will likely be tested in the coming months. The ongoing uncertainty surrounding the impact of government policies, particularly tariffs, on the economy was also highlighted in the minutes. The Fed officials noted that the "ultimate extent of changes to government policy and their effects on the economy were highly uncertain," a recognition that the administration's trade policies could introduce new challenges to the central bank’s ability to manage inflation. Uncertain future The uncertainty surrounding the future of inflation and government policies has already begun to influence market behaviour. Investors and economists have been closely watching signals from the Federal Reserve about its future actions, particularly regarding interest rates and monetary policy. The rise in inflation expectations, coupled with concerns over slower economic growth, could lead to more cautious decisions on the part of both the Fed and market participants. The Federal Reserve’s minutes point to a complex economic environment, one where inflation expectations are rising due to tariffs and other factors, yet growth and employment remain uncertain. While Fed officials have reassured markets that inflation expectations remain well-anchored in the long run, they also acknowledged the potential risks if these expectations continue to climb, particularly if inflationary pressures become entrenched. As the central bank faces these challenges, it will be required to balance the need for price stability with the broader economic goals of fostering growth and low unemployment.

Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable.

Fed officials express concern over long-term inflation expectations amid tariff impact

In a move aimed at shielding South Korea’s faltering economy from global trade shocks and domestic instability, the Bank of Korea (BOK) on Thursday cut its key interest rate for the fourth time since October. The central bank lowered its seven-day repurchase rate by 25 basis points to 2.5 per cent, a decision that was widely anticipated by markets and economists alike.&nbsp;According to Bloomberg, all 21 economists surveyed had predicted the cut, as pressure mounted on the BOK to act amid a worsening external environment and weak domestic indicators.<h2>Economy in reverse as political crisis deepens</h2>South Korea’s economy slipped into contraction in the first quarter of 2025, and recent indicators show little momentum for recovery. A combination of sluggish exports, faltering domestic consumption, and subdued business investment has led policymakers to acknowledge the need for further stimulus.&nbsp;The BOK also revised its annual growth forecast down sharply to 0.8 per cent, from an earlier estimate of 1.5 per cent made in February. This move reflects the twin headwinds facing Asia’s fourth-largest economy: the global trade upheaval triggered by US tariffs and the uncertainty following the ousting of former President Yoon Suk Yeol.&nbsp;Yoon, removed from office in April after a failed martial law attempt led to a constitutional crisis, left behind a political vacuum just as Donald Trump’s sweeping import tariffs rattled global markets.&nbsp;Trump’s April announcement of 10 per cent tariffs on all US imports—and a 60 per cent duty on Chinese goods has hit export-heavy economies like South Korea especially hard.&nbsp;According to Bloomberg, the South Korean won initially held steady but later fell by 0.4 per cent against the US dollar following the rate cut announcement.<h2>Monetary easing despite election sensitivities</h2>The rate cut comes just five days before South Korea’s presidential election on June 3, a timing that has raised eyebrows in some quarters. However, BOK Governor Rhee Chang-yong had already signalled in April that the decision would remain focused solely on the economy, not politics.&nbsp;“At that time, all six board members were open to a rate cut within three months,” Bloomberg reported, “in what appeared to be a clear signal that action was coming this month.”&nbsp;The recent appreciation of the Korean won, which had climbed to a seven-month high, also provided more room for the BOK to resume easing without immediately stoking inflation, a concern that had restrained its previous moves.<h2>Fiscal stimulus on the horizon</h2>The election result is expected to shape the broader fiscal landscape in the months ahead. The frontrunner, Lee Jae-myung of the Democratic Party, has pledged at least 30 trillion won ($21.8 billion) in stimulus focused on households and small businesses. His conservative challenger, Kim Moon-soo, has proposed a similar-sized supplementary budget aimed at boosting public welfare.&nbsp;As Bloomberg notes, “The BOK and broader markets are closely watching which candidate takes office, as their fiscal strategies will shape the central bank’s room to manoeuvre.”&nbsp;The South Korean parliament has already passed a 13.8 trillion won supplementary budget, targeted at buffering vulnerable sectors and mitigating tariff-induced trade risks. However, implementation of any further measures is likely to hinge on the incoming president’s priorities.

Business & Economy: The rate cut comes just five days before South Korea’s presidential election on June 3, a timing that has raised eyebrows in some quarters.

In a move aimed at shielding South Korea’s faltering economy from global trade shocks and domestic instability, the Bank of Korea (BOK) on Thursday cut its key interest rate for the fourth time since October. The central bank lowered its seven-day repurchase rate by 25 basis points to 2.5 per cent, a decision that was widely anticipated by markets and economists alike. According to Bloomberg, all 21 economists surveyed had predicted the cut, as pressure mounted on the BOK to act amid a worsening external environment and weak domestic indicators. Economy in reverse as political crisis deepens South Korea’s economy slipped into contraction in the first quarter of 2025, and recent indicators show little momentum for recovery. A combination of sluggish exports, faltering domestic consumption, and subdued business investment has led policymakers to acknowledge the need for further stimulus. The BOK also revised its annual growth forecast down sharply to 0.8 per cent, from an earlier estimate of 1.5 per cent made in February. This move reflects the twin headwinds facing Asia’s fourth-largest economy: the global trade upheaval triggered by US tariffs and the uncertainty following the ousting of former President Yoon Suk Yeol. Yoon, removed from office in April after a failed martial law attempt led to a constitutional crisis, left behind a political vacuum just as Donald Trump’s sweeping import tariffs rattled global markets. Trump’s April announcement of 10 per cent tariffs on all US imports—and a 60 per cent duty on Chinese goods has hit export-heavy economies like South Korea especially hard. According to Bloomberg, the South Korean won initially held steady but later fell by 0.4 per cent against the US dollar following the rate cut announcement. Monetary easing despite election sensitivities The rate cut comes just five days before South Korea’s presidential election on June 3, a timing that has raised eyebrows in some quarters. However, BOK Governor Rhee Chang-yong had already signalled in April that the decision would remain focused solely on the economy, not politics. “At that time, all six board members were open to a rate cut within three months,” Bloomberg reported, “in what appeared to be a clear signal that action was coming this month.” The recent appreciation of the Korean won, which had climbed to a seven-month high, also provided more room for the BOK to resume easing without immediately stoking inflation, a concern that had restrained its previous moves. Fiscal stimulus on the horizon The election result is expected to shape the broader fiscal landscape in the months ahead. The frontrunner, Lee Jae-myung of the Democratic Party, has pledged at least 30 trillion won ($21.8 billion) in stimulus focused on households and small businesses. His conservative challenger, Kim Moon-soo, has proposed a similar-sized supplementary budget aimed at boosting public welfare. As Bloomberg notes, “The BOK and broader markets are closely watching which candidate takes office, as their fiscal strategies will shape the central bank’s room to manoeuvre.” The South Korean parliament has already passed a 13.8 trillion won supplementary budget, targeted at buffering vulnerable sectors and mitigating tariff-induced trade risks. However, implementation of any further measures is likely to hinge on the incoming president’s priorities.

The Bank of Korea (BOK) has cut its key interest rate for the fourth time since October to protect South Korea's economy from global trade shocks and domestic instability.&nbsp;

Bank of Korea cuts rates to shield economy from Trump tariffs and political turmoil

A Bloomberg report quoting sources showed the valuation of India's biggest equity-derivatives bourse, the National Stock Exchange (NSE), has surged 60 per cent. This comes on hopes the bourse will go in for IPO soon.&nbsp;The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares.&nbsp;Institutions and wealthy individuals have been purchasing the unlisted shares at a rapid pace in anticipation of an IPO. The share sale is expected as early as this year.&nbsp;Recent trades have seen prices of the bourse jump up to ₹2,000 or $23 per share. That is a reflection of the stock's high demand relative to supply.&nbsp;IPO bets boost NSE's valuation&nbsp;NSE's perceived value jumped to $36 billion in September last year, more than doubling in just four months.The latest rally coincides with the exchange's efforts to settle a longstanding legal dispute with the SEBI. The legal battle had held up NSE's listing plans for nearly a decade.&nbsp;The NSE, backed by large investors like LIC of India and Canada Pension Plan Investment Board, first filed papers for an IPO in 2016.&nbsp;Sebi's investigation into allegations that some high-speed traders gained unfair access to its co-location servers not only derailed the listing but also led to a six-month ban from capital markets.&nbsp;Currently, the NSE has almost 2.5 billion shares outstanding in private markets. A potential IPO would place NSE’s $58 billion valuation above that of NASDAQ and would narrow the gap with Deutsche Börse's $62 billion market value.

The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourses unlisted shares.

A Bloomberg report quoting sources showed the valuation of India's biggest equity-derivatives bourse, the National Stock Exchange (NSE), has surged 60 per cent. This comes on hopes the bourse will go in for IPO soon. The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares. Institutions and wealthy individuals have been purchasing the unlisted shares at a rapid pace in anticipation of an IPO. The share sale is expected as early as this year. Recent trades have seen prices of the bourse jump up to ₹2,000 or $23 per share. That is a reflection of the stock's high demand relative to supply. IPO bets boost NSE's valuation NSE's perceived value jumped to $36 billion in September last year, more than doubling in just four months. The latest rally coincides with the exchange's efforts to settle a longstanding legal dispute with the SEBI. The legal battle had held up NSE's listing plans for nearly a decade. The NSE, backed by large investors like LIC of India and Canada Pension Plan Investment Board, first filed papers for an IPO in 2016. Sebi's investigation into allegations that some high-speed traders gained unfair access to its co-location servers not only derailed the listing but also led to a six-month ban from capital markets. Currently, the NSE has almost 2.5 billion shares outstanding in private markets. A potential IPO would place NSE’s $58 billion valuation above that of NASDAQ and would narrow the gap with Deutsche Börse's $62 billion market value.

The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares.

Top Indian exchange’s valuation jumps 60%

Nvidia’s first-quarter earnings for fiscal year 2026 have shattered records, with the company posting a remarkable 69 per cent year-on-year revenue growth to $44.1 billion. The impressive performance was largely driven by a booming data centre business, which saw a 73 per cent rise in sales compared to the same quarter last year.However, the quarter was not without its challenges, as Nvidia incurred a significant $4.5 billion charge due to the export restrictions on its H20 products for the China market.The standout performer in Nvidia’s earnings report was its data centre division, which recorded a massive $39.1 billion in revenue, representing 88 per cent of the company's total revenue. The demand for Nvidia’s artificial intelligence (AI) chips, especially for large cloud providers and AI supercomputing, continues to surge.The company also announced that Microsoft has deployed tens of thousands of Nvidia's Blackwell GPUs, with plans to increase that number to hundreds of thousands, thanks to their partnership with OpenAI.Nvidia’s AI infrastructure products, including the breakthrough Blackwell NVL72 AI supercomputer, have seen explosive growth. “AI inference token generation has surged tenfold in just one year,” said Nvidia CEO Jensen Huang during the company’s earnings call.As AI agents become more mainstream, Huang emphasised that the demand for AI computing will continue to accelerate, positioning Nvidia at the centre of this transformative technology shift. “Countries around the world are recognising AI as essential infrastructure—just like electricity and the internet,” he added.Despite the soaring demand for Nvidia’s cutting-edge AI chips, the company was hit with a significant setback during the quarter. On April 9, 2025, the US government informed Nvidia that a licence would be required for the export of its H20 products to China.This unexpected change in the trade policy forced Nvidia to absorb a $4.5 billion charge in the first quarter of the current fiscal year, related to excess inventory and purchase obligations. As a result, Nvidia was unable to ship an additional $2.5 billion in H2O-related sales.These export restrictions have serious implications for Nvidia, with Huang stating that the $50 billion AI chip market in China is effectively closed to US industry. The firm’s H20 processor, which had previously been approved for export to China, had been a major contributor to Nvidia’s data centre business, and the export ban has effectively ended its Hopper data centre business in China.&nbsp;Strong performance despite setbacks&nbsp;Nvidia's first-quarter net income rose by 26 per cent, reaching $18.8 billion, or $0.76 per share, up from $14.9 billion in the previous year. On an adjusted basis, earnings per share (EPS) were $0.96, beating analysts’ expectations of $0.93.In afterhours trading on Wall Street, Nvidia share price jumped as much as 6 per cent after the chip maker posted record-breaking revenue. Its stock climbed to $142.22 apiece on Nasdaq in afterhours trading, against previous close at $135.50.The company's gross margin was reported at 60.5 per cent on a GAAP basis and 61.0 per cent on a non-GAAP basis. Excluding the $4.5 billion charge, non-GAAP gross margin would have been a staggering 71.3 per cent.The company’s gaming division, which includes chips for 3D gaming, also showed strong growth, with revenue rising 42 per cent year-on-year to $3.8 billion. Notably, Nvidia’s chips now power the Nintendo Switch 2, a new console that integrates AI-powered DLSS technology for up to 4K gaming. Nvidia’s graphics technology, once primarily used for gaming, is now being utilised in AI applications, further highlighting the expanding reach of its chips.In addition, Nvidia’s automotive and robotics business saw a 72 per cent increase in revenue, totalling $567 million. The division's growth was driven by increased demand for self-driving car chips and robotics software, including the company’s breakthrough in humanoid robotics.Nvidia had also introduced its Isaac GR00T N1, the world’s first open humanoid robot foundation model, and announced plans to expand its role in robotics development.Nvidia’s professional visualisation division, which provides chips for 3D design and AI-powered design workstations, reported a 19 per cent increase in revenue to $509 million.&nbsp;Guidance and expansion plans&nbsp;Looking ahead, Nvidia expects revenue for the second quarter of fiscal 2026 to be around $45 billion, give or take 2 per cent, with a substantial $8 billion in lost sales due to the H20 export restrictions. Despite the loss of the China market, Nvidia remains optimistic about the future of its AI infrastructure and the continued global demand for its products.Gross margins are projected to be in the range of 71.8 per cent to 72.0 per cent, with Nvidia targeting mid-70 per cent margins later in the year as it continues to scale its AI offerings.Nvidia is also focused on expanding its global presence. The company recently unveiled plans to build AI factories in the US and Saudi Arabia, as well as launching the Stargate UAE AI infrastructure cluster in Abu Dhabi.The firm has also expanded partnerships with major tech giants such as Oracle, Google, and Microsoft, and its Blackwell cloud instances are now available on AWS, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure.While the export restrictions are a significant hurdle for Nvidia, the company remains well-positioned at the forefront of the AI revolution. As countries worldwide increasingly view AI as essential infrastructure, Nvidia’s leadership in AI computing, combined with its expanding global footprint, positions the company for continued success in the coming years.In the meantime, Nvidia continues to focus on delivering innovative products and expanding its partnerships to meet the surging demand for AI chips and infrastructure, with eyes on the future growth of AI technologies across the globe.

Nvidia expects revenue for the second quarter of fiscal 2026 to be around $45 billion, with a substantial $8 billion in lost sales due to the H20 export restrictions.

Nvidia’s first-quarter earnings for fiscal year 2026 have shattered records, with the company posting a remarkable 69 per cent year-on-year revenue growth to $44.1 billion. The impressive performance was largely driven by a booming data centre business, which saw a 73 per cent rise in sales compared to the same quarter last year. However, the quarter was not without its challenges, as Nvidia incurred a significant $4.5 billion charge due to the export restrictions on its H20 products for the China market. The standout performer in Nvidia’s earnings report was its data centre division, which recorded a massive $39.1 billion in revenue, representing 88 per cent of the company's total revenue. The demand for Nvidia’s artificial intelligence (AI) chips, especially for large cloud providers and AI supercomputing, continues to surge. The company also announced that Microsoft has deployed tens of thousands of Nvidia's Blackwell GPUs, with plans to increase that number to hundreds of thousands, thanks to their partnership with OpenAI. Nvidia’s AI infrastructure products, including the breakthrough Blackwell NVL72 AI supercomputer, have seen explosive growth. “AI inference token generation has surged tenfold in just one year,” said Nvidia CEO Jensen Huang during the company’s earnings call. As AI agents become more mainstream, Huang emphasised that the demand for AI computing will continue to accelerate, positioning Nvidia at the centre of this transformative technology shift. “Countries around the world are recognising AI as essential infrastructure—just like electricity and the internet,” he added. Despite the soaring demand for Nvidia’s cutting-edge AI chips, the company was hit with a significant setback during the quarter. On April 9, 2025, the US government informed Nvidia that a licence would be required for the export of its H20 products to China. This unexpected change in the trade policy forced Nvidia to absorb a $4.5 billion charge in the first quarter of the current fiscal year, related to excess inventory and purchase obligations. As a result, Nvidia was unable to ship an additional $2.5 billion in H2O-related sales. These export restrictions have serious implications for Nvidia, with Huang stating that the $50 billion AI chip market in China is effectively closed to US industry. The firm’s H20 processor, which had previously been approved for export to China, had been a major contributor to Nvidia’s data centre business, and the export ban has effectively ended its Hopper data centre business in China. Strong performance despite setbacks Nvidia's first-quarter net income rose by 26 per cent, reaching $18.8 billion, or $0.76 per share, up from $14.9 billion in the previous year. On an adjusted basis, earnings per share (EPS) were $0.96, beating analysts’ expectations of $0.93. In afterhours trading on Wall Street, Nvidia share price jumped as much as 6 per cent after the chip maker posted record-breaking revenue. Its stock climbed to $142.22 apiece on Nasdaq in afterhours trading, against previous close at $135.50. The company's gross margin was reported at 60.5 per cent on a GAAP basis and 61.0 per cent on a non-GAAP basis. Excluding the $4.5 billion charge, non-GAAP gross margin would have been a staggering 71.3 per cent. The company’s gaming division, which includes chips for 3D gaming, also showed strong growth, with revenue rising 42 per cent year-on-year to $3.8 billion. Notably, Nvidia’s chips now power the Nintendo Switch 2, a new console that integrates AI-powered DLSS technology for up to 4K gaming. Nvidia’s graphics technology, once primarily used for gaming, is now being utilised in AI applications, further highlighting the expanding reach of its chips. In addition, Nvidia’s automotive and robotics business saw a 72 per cent increase in revenue, totalling $567 million. The division's growth was driven by increased demand for self-driving car chips and robotics software, including the company’s breakthrough in humanoid robotics. Nvidia had also introduced its Isaac GR00T N1, the world’s first open humanoid robot foundation model, and announced plans to expand its role in robotics development. Nvidia’s professional visualisation division, which provides chips for 3D design and AI-powered design workstations, reported a 19 per cent increase in revenue to $509 million. Guidance and expansion plans Looking ahead, Nvidia expects revenue for the second quarter of fiscal 2026 to be around $45 billion, give or take 2 per cent, with a substantial $8 billion in lost sales due to the H20 export restrictions. Despite the loss of the China market, Nvidia remains optimistic about the future of its AI infrastructure and the continued global demand for its products. Gross margins are projected to be in the range of 71.8 per cent to 72.0 per cent, with Nvidia targeting mid-70 per cent margins later in the year as it continues to scale its AI offerings. Nvidia is also focused on expanding its global presence. The company recently unveiled plans to build AI factories in the US and Saudi Arabia, as well as launching the Stargate UAE AI infrastructure cluster in Abu Dhabi. The firm has also expanded partnerships with major tech giants such as Oracle, Google, and Microsoft, and its Blackwell cloud instances are now available on AWS, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure. While the export restrictions are a significant hurdle for Nvidia, the company remains well-positioned at the forefront of the AI revolution. As countries worldwide increasingly view AI as essential infrastructure, Nvidia’s leadership in AI computing, combined with its expanding global footprint, positions the company for continued success in the coming years. In the meantime, Nvidia continues to focus on delivering innovative products and expanding its partnerships to meet the surging demand for AI chips and infrastructure, with eyes on the future growth of AI technologies across the globe.

Nvidia expects revenue for the second quarter of fiscal 2026 to be around $45 billion, with a substantial $8 billion in lost sales due to the H20 export restrictions.

Data centres drive Nvidia’s $44 billion revenue despite setback from China export restrictions

Telegram's CEO Pavel Durov on Wednesday (May 28) announced that Telegram users would soon have access to Grok AI; however, Elon Musk, whose company owns the chatbot, quickly denied the claim.<h2>Telegram-xAI deal happening or not?</h2>On X, Durov wrote "Together, we win" and claimed that "This summer, Telegram users will gain access to the best AI technology on the market."The Telegram CEO claimed that he and Musk have "agreed to a 1-year partnership to bring xAI's Grok to our billion+ users and integrate it across all Telegram apps".However, just hours later, Musk called out Durov's claims and, in a reply to the Telegram CEO's post, wrote, "No deal has been signed".<h2>Drama brewing?</h2>While netizens were all geared up for drama, Durov, in an apparent attempt to salvage the situation, acknowledging Musk's statement, claimed that a deal has been “agreed in principle, but formalities are pending”.

<blockquote class="twitter-tweet">True. Agreed in principle, but formalities are pending.&mdash; Pavel Durov (@durov) <a href="https://twitter.com/durov/status/1927848037126140042?ref_src=twsrc%5Etfw">May 28, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Durov's trigger-happy post has prompted X users to question, "Why would someone announce a deal before it’s inked on paper?"One user commented, "you should not say things until the ink is dry," while a second user said, "Bro, don’t blow the deal for breaking the news first".Yet another pointed out that "Agreed in principle doesn't mean anything". "I agree in principle with Amazon that deliveries should be fast and on time. It doesn’t mean I’m partners with them. How funny that Elon called you out," they added.<h2>Musk-Durov's $300 million partnership</h2>The much-awaited deal comes with a whopping $300 million price. As per Durov – if the deal goes through – in exchange for implementing Grok AI across its platform, Telegram will receive $300 million in cash and equity, plus 50 per cent of the revenue from xAI subscriptions sold via Telegram.With this deal, xAI would also gain access to Telegram's wide user base of more than one billion – as per Durov's estimates.

On X, Pavel Durov wrote, "Together, we win," and claimed that he and Musk have "agreed to a 1-year partnership to bring xAI's Grok to our billion+ users and integrate it across all Telegram apps".

Telegram's CEO Pavel Durov on Wednesday (May 28) announced that Telegram users would soon have access to Grok AI; however, Elon Musk, whose company owns the chatbot, quickly denied the claim. Telegram-xAI deal happening or not? On X, Durov wrote "Together, we win" and claimed that "This summer, Telegram users will gain access to the best AI technology on the market." The Telegram CEO claimed that he and Musk have "agreed to a 1-year partnership to bring xAI's Grok to our billion+ users and integrate it across all Telegram apps". However, just hours later, Musk called out Durov's claims and, in a reply to the Telegram CEO's post, wrote, "No deal has been signed". Drama brewing? While netizens were all geared up for drama, Durov, in an apparent attempt to salvage the situation, acknowledging Musk's statement, claimed that a deal has been “agreed in principle, but formalities are pending”.

On X, Pavel Durov wrote, "Together, we win," and claimed that he and Musk have "agreed to a 1-year partnership to bring xAI's Grok to our billion+ users and integrate it across all Telegram apps".

Pavel Durov claims Grok AI coming to Telegram, Elon Musk denies: $300M deal drama unfolds on X

The growing fiscal deficit in the United States is raising concerns about the long-term stability of global equity markets. Experts warn that the increasing national debt, combined with ongoing trade tensions and tariff uncertainties, poses significant risks to global investor confidence.&nbsp;The recent downgrade of the US credit rating by Moody’s — the first in over a century — has intensified worries about the country's fiscal health and its ability to manage debt sustainably.&nbsp;Moody’s downgrade highlighted the impact of proposed tax policies, which are expected to add trillions to the federal deficit over the next decade.&nbsp;The US currently carries a debt exceeding $36 trillion, and experts suggest that such high levels of indebtedness could undermine economic growth and financial market stability.&nbsp;US debt sparks investor caution&nbsp;This downgrade has led investors to reconsider their exposure to U.S. assets, prompting a shift toward other markets seen as more stable or promising.&nbsp;While the US remains a major economic powerhouse, the uncertainties surrounding fiscal policies and trade negotiations have led to cautious market behaviour. Some investors are moving funds out of US equities and bonds, which has created volatility and affected global markets.&nbsp;Experts also note that India’s economy appears resilient amidst these global shifts, benefiting from stable inflation, a strengthening currency, and favourable oil prices.&nbsp;This has helped India maintain investor interest, even as attention temporarily shifts away due to global trade deal developments.&nbsp;Meanwhile, precious metals like gold are gaining appeal as safe-haven assets in the current climate of fiscal uncertainty. Analysts believe that if the trend of reduced US asset exposure continues, gold’s value may rise further.&nbsp;Overall, the US fiscal deficit and credit rating downgrade are key factors reshaping global investment patterns, pushing investors to diversify and seek safer opportunities beyond traditional US markets.

The recent downgrade of the US credit rating by Moodys has intensified worries about the country fiscal health and its ability to manage debt sustainably.

The growing fiscal deficit in the United States is raising concerns about the long-term stability of global equity markets. Experts warn that the increasing national debt, combined with ongoing trade tensions and tariff uncertainties, poses significant risks to global investor confidence. The recent downgrade of the US credit rating by Moody’s — the first in over a century — has intensified worries about the country's fiscal health and its ability to manage debt sustainably. Moody’s downgrade highlighted the impact of proposed tax policies, which are expected to add trillions to the federal deficit over the next decade. The US currently carries a debt exceeding $36 trillion, and experts suggest that such high levels of indebtedness could undermine economic growth and financial market stability. US debt sparks investor caution This downgrade has led investors to reconsider their exposure to U.S. assets, prompting a shift toward other markets seen as more stable or promising. While the US remains a major economic powerhouse, the uncertainties surrounding fiscal policies and trade negotiations have led to cautious market behaviour. Some investors are moving funds out of US equities and bonds, which has created volatility and affected global markets. Experts also note that India’s economy appears resilient amidst these global shifts, benefiting from stable inflation, a strengthening currency, and favourable oil prices. This has helped India maintain investor interest, even as attention temporarily shifts away due to global trade deal developments. Meanwhile, precious metals like gold are gaining appeal as safe-haven assets in the current climate of fiscal uncertainty. Analysts believe that if the trend of reduced US asset exposure continues, gold’s value may rise further. Overall, the US fiscal deficit and credit rating downgrade are key factors reshaping global investment patterns, pushing investors to diversify and seek safer opportunities beyond traditional US markets.

The recent downgrade of the US credit rating by Moody’s — the first in over a century — has intensified worries about the country's fiscal health and its ability to manage debt sustainably.

US fiscal strains trigger global market shifts and investor caution

Good news for India's salaried workforce: the Government of India has ratified the rate of interest of EPF (Employees Provident Fund) at 8.25 per cent for FY25. This would ensure stable and relatively high returns for over seven crore EPFO subscribers in the country. The move, green-lit by the Ministry of Finance, enables the Employees' Provident Fund Organisation (EPFO) to begin crediting the annual interest into the accounts of millions of workers.The decision, as per reports, was finalised at the 237th meeting of the Central Board of Trustees, chaired by Labour &amp; Employment Minister Mansukh Mandaviya."The Ministry of Finance has given concurrence to an 8.25 per cent rate of interest on the EPF for the 2024-25 fiscal year, and the labour ministry sent a communication regarding this to the EPFO on Thursday," revealed a labour ministry official while speaking to news agency PTI.This marks the second consecutive year the interest rate has been maintained at 8.25 per cent.<h2>Key highlights: What you need to know</h2>- 8.25 per cent Interest Rate on EPF for FY25- Interest is tax-free (up to a specified limit), which is a big plus for salaried professionals- New EDLI (Employees' Deposit Linked Insurance) benefits announced: ₹50,000 minimum life insurance for deaths even within the first year of service. Furthermore, EDLI payouts are now available even if there's a two-month gap between jobs.This is expected to result in higher benefits to families of over 5,000 individuals who die during service every year, ensuring a wider safety net for them.<h2>EPFO interest rates</h2>Going back five years, the EPFO interest rate between 2020 and 2021 was 8.50 per cent. In 2021-22, it was reduced to 8.10 per cent (the lowest since 1977-78). The next year, 2022-23, it was increased slightly to 8.15 per cent. Last year, 2023-24, it was increased further to 8.25 per cent.

The decision, as per reports, was finalised at the 237th meeting of the Central Board of Trustees, chaired by Labour & Employment Minister Mansukh Mandaviya.

Good news for India's salaried workforce: the Government of India has ratified the rate of interest of EPF (Employees Provident Fund) at 8.25 per cent for FY25. This would ensure stable and relatively high returns for over seven crore EPFO subscribers in the country. The move, green-lit by the Ministry of Finance, enables the Employees' Provident Fund Organisation (EPFO) to begin crediting the annual interest into the accounts of millions of workers. The decision, as per reports, was finalised at the 237th meeting of the Central Board of Trustees, chaired by Labour & Employment Minister Mansukh Mandaviya. "The Ministry of Finance has given concurrence to an 8.25 per cent rate of interest on the EPF for the 2024-25 fiscal year, and the labour ministry sent a communication regarding this to the EPFO on Thursday," revealed a labour ministry official while speaking to news agency PTI. This marks the second consecutive year the interest rate has been maintained at 8.25 per cent. Key highlights: What you need to know - 8.25 per cent Interest Rate on EPF for FY25 - Interest is tax-free (up to a specified limit), which is a big plus for salaried professionals - New EDLI (Employees' Deposit Linked Insurance) benefits announced: ₹50,000 minimum life insurance for deaths even within the first year of service. Furthermore, EDLI payouts are now available even if there's a two-month gap between jobs. This is expected to result in higher benefits to families of over 5,000 individuals who die during service every year, ensuring a wider safety net for them. EPFO interest rates Going back five years, the EPFO interest rate between 2020 and 2021 was 8.50 per cent. In 2021-22, it was reduced to 8.10 per cent (the lowest since 1977-78). The next year, 2022-23, it was increased slightly to 8.15 per cent. Last year, 2023-24, it was increased further to 8.25 per cent.

The decision, as per reports, was finalised at the 237th meeting of the Central Board of Trustees, chaired by Labour &amp; Employment Minister Mansukh Mandaviya.

EPFO interest rate for FY25 set at 8.25%: Here's what it means for you

In a major blow to Donald Trump, a US federal court on Wednesday (May 28) blocked the majority of the US president's sweeping tariffs, a decision the White House said "unelected judges" have no right to weigh in on.The US federal court, in its ruling, said that Trump, by igniting a global trade war, has overstepped his constitutional authority with across-the-board levies.<h2>Not a blank cheque</h2>The court's ruling comes in two separate cases, which argue that the POTUS violated Congress's power of the purse – brought forward by businesses and a coalition of state governmentsThe three-judge panel at the Court of International Trade also struck down Trump's use of emergency powers to impose across-the-board import duties on countries China, Canada, Mexico, and the European Union. The court ruled that the International Emergency Economic Powers Act (IEEPA) does not give the president a blank cheque to rewrite trade policy."The question in the two cases before the court is whether the International Emergency Economic Powers Act of 1977 ("IEEPA") delegates these powers to the president in the form of authority to impose unlimited tariffs on goods from nearly every country in the world," wrote the three-judge panel in an unsigned opinion."The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder," it noted, adding that any interpretation that "delegates unlimited tariff authority is unconstitutional".<h2>White House reacts</h2>The White House, as per AFP, has been given 10 days to complete the bureaucratic process and halt the tariffs.Slamming the ruling, the White House argued that "unelected judges" have no right to weigh in on Trump's handling of the issue."President Trump pledged to put America first, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness," said Trump's spokesperson Kush Desai.While the statement did not mention if Trump was seeking legal recourse, multiple US outlets said that his administration has already filed an appeal.The Trump camp also reacted with fury. Stephen Miller, one of Trump's closest White House aides on social media, decried a "judicial coup", which he claimed was out of control.Trump has long justified the tariffs as a response to "national emergencies" like trade deficits and drug trafficking. Critics like Gregory W. Meeks, the top Democrat on the House Foreign Affairs Committee, however, say this was a "bogus" pretext. He said that the court has confirmed that "these tariffs are an illegal abuse of executive power.""Trump's declaration of a bogus national emergency to justify his global trade war was an absurd and unlawful use of IEEPA," he added.

The US federal court, in its ruling, said that Trump, by igniting a global trade war, has overstepped his constitutional authority with across-the-board levies.

In a major blow to Donald Trump, a US federal court on Wednesday (May 28) blocked the majority of the US president's sweeping tariffs, a decision the White House said "unelected judges" have no right to weigh in on. The US federal court, in its ruling, said that Trump, by igniting a global trade war, has overstepped his constitutional authority with across-the-board levies. Not a blank cheque The court's ruling comes in two separate cases, which argue that the POTUS violated Congress's power of the purse – brought forward by businesses and a coalition of state governments The three-judge panel at the Court of International Trade also struck down Trump's use of emergency powers to impose across-the-board import duties on countries China, Canada, Mexico, and the European Union. The court ruled that the International Emergency Economic Powers Act (IEEPA) does not give the president a blank cheque to rewrite trade policy. "The question in the two cases before the court is whether the International Emergency Economic Powers Act of 1977 ("IEEPA") delegates these powers to the president in the form of authority to impose unlimited tariffs on goods from nearly every country in the world," wrote the three-judge panel in an unsigned opinion. "The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder," it noted, adding that any interpretation that "delegates unlimited tariff authority is unconstitutional". White House reacts The White House, as per AFP, has been given 10 days to complete the bureaucratic process and halt the tariffs. Slamming the ruling, the White House argued that "unelected judges" have no right to weigh in on Trump's handling of the issue. "President Trump pledged to put America first, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness," said Trump's spokesperson Kush Desai. While the statement did not mention if Trump was seeking legal recourse, multiple US outlets said that his administration has already filed an appeal. The Trump camp also reacted with fury. Stephen Miller, one of Trump's closest White House aides on social media, decried a "judicial coup", which he claimed was out of control. Trump has long justified the tariffs as a response to "national emergencies" like trade deficits and drug trafficking. Critics like Gregory W. Meeks, the top Democrat on the House Foreign Affairs Committee, however, say this was a "bogus" pretext. He said that the court has confirmed that "these tariffs are an illegal abuse of executive power." "Trump's declaration of a bogus national emergency to justify his global trade war was an absurd and unlawful use of IEEPA," he added.

The US federal court, in its ruling, said that Trump, by igniting a global trade war, has overstepped his constitutional authority with across-the-board levies.

US court blocks Trump's 'America First' global tariffs, says POTUS overstepped constitutional authority

New Zealand’s central bank has lowered its benchmark interest rate by 25 basis points to 3.25 per cent, marking its sixth cut in a row and signalling a deeper-than-previously-expected easing cycle as global economic risks, especially from escalating US trade tensions, continue to weigh on the country’s fragile recovery.The decision by the Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee (MPC) was supported by five of the six members, with one voting to keep the official cash rate (OCR) at 3.50 per cent. The move was widely anticipated by markets and aligns with recent forecasts from economists, who have pointed to growing international uncertainty and spare capacity in the domestic economy.In its May 2025 Monetary Policy Statement, the RBNZ said, “Inflation is within the target band, and the committee is well placed to respond to domestic and international developments to maintain price stability over the medium term.”&nbsp;Weaker global outlook&nbsp;The RBNZ highlighted several downside risks to growth, notably the surge in global protectionism, particularly from the United States. US President Donald Trump’s recent escalation of tariffs has dampened demand expectations across global markets and complicated the outlook for export-driven economies like New Zealand.Projections for global growth, especially in key trading partners like China and the US, have been revised down. The central bank warned that heightened policy uncertainty and supply chain disruptions from geopolitical fragmentation could suppress investment and consumption worldwide, leading to reduced demand for New Zealand’s exports.“The announced increase in US tariffs will lower global demand for New Zealand’s exports, particularly from Asia, constraining domestic growth,” the RBNZ stated.&nbsp;Domestic recovery remains fragile&nbsp;Although the New Zealand economy has begun recovering after last year’s contraction, growth remains tepid. The bank noted that high commodity prices and past rate cuts are supporting activity, but spare capacity remains. Nominal wage growth has slowed, companies are finding it easier to hire workers, and business investment has yet to pick up meaningfully.Inflation data offered mixed signals. Annual consumer price inflation rose to 2.5 per cent in the March quarter, within the RBNZ’s 1-3 per cent target band, and is projected to increase slightly to 2.7 per cent in Q3 due to higher food and energy prices. However, measures of core inflation are declining, and inflation expectations, while rising, remain anchored in the medium term.The central bank now forecasts the OCR will fall to 2.92 per cent by the end of 2025 and to 2.85 per cent in the first quarter of 2026—lower than its February projections. Some market participants believe the cash rate could drop as far as 2.75 per cent if inflation remains subdued and external risks escalate.&nbsp;Financial system remains stable&nbsp;Despite recent economic turbulence, the RBNZ said the financial system is stable. Lower wholesale rates have begun to translate into reduced mortgage and deposit rates, and banks remain well capitalised. Nearly half of all mortgages are due to reprice in the coming months, offering households further relief.The bank acknowledged that monetary policy will remain responsive to both domestic developments and shifting global dynamics, particularly if protectionist measures persist. “There is significant uncertainty about how global tariffs will transmit to New Zealand’s economy,” it said, emphasising that policy decisions will be guided by inflation outcomes and broader financial stability considerations.With inflation moderating and economic headwinds building, New Zealand’s central bank appears poised to maintain an easing bias and, if necessary, continue rate cuts to support its recovery and safeguard price stability amid a turbulent global backdrop.

The move was widely anticipated by markets and aligns with recent forecasts from economists, who have pointed to growing international uncertainty and spare capacity in the domestic economy.

New Zealand’s central bank has lowered its benchmark interest rate by 25 basis points to 3.25 per cent, marking its sixth cut in a row and signalling a deeper-than-previously-expected easing cycle as global economic risks, especially from escalating US trade tensions, continue to weigh on the country’s fragile recovery. The decision by the Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee (MPC) was supported by five of the six members, with one voting to keep the official cash rate (OCR) at 3.50 per cent. The move was widely anticipated by markets and aligns with recent forecasts from economists, who have pointed to growing international uncertainty and spare capacity in the domestic economy. In its May 2025 Monetary Policy Statement, the RBNZ said, “Inflation is within the target band, and the committee is well placed to respond to domestic and international developments to maintain price stability over the medium term.” Weaker global outlook The RBNZ highlighted several downside risks to growth, notably the surge in global protectionism, particularly from the United States. US President Donald Trump’s recent escalation of tariffs has dampened demand expectations across global markets and complicated the outlook for export-driven economies like New Zealand. Projections for global growth, especially in key trading partners like China and the US, have been revised down. The central bank warned that heightened policy uncertainty and supply chain disruptions from geopolitical fragmentation could suppress investment and consumption worldwide, leading to reduced demand for New Zealand’s exports. “The announced increase in US tariffs will lower global demand for New Zealand’s exports, particularly from Asia, constraining domestic growth,” the RBNZ stated. Domestic recovery remains fragile Although the New Zealand economy has begun recovering after last year’s contraction, growth remains tepid. The bank noted that high commodity prices and past rate cuts are supporting activity, but spare capacity remains. Nominal wage growth has slowed, companies are finding it easier to hire workers, and business investment has yet to pick up meaningfully. Inflation data offered mixed signals. Annual consumer price inflation rose to 2.5 per cent in the March quarter, within the RBNZ’s 1-3 per cent target band, and is projected to increase slightly to 2.7 per cent in Q3 due to higher food and energy prices. However, measures of core inflation are declining, and inflation expectations, while rising, remain anchored in the medium term. The central bank now forecasts the OCR will fall to 2.92 per cent by the end of 2025 and to 2.85 per cent in the first quarter of 2026—lower than its February projections. Some market participants believe the cash rate could drop as far as 2.75 per cent if inflation remains subdued and external risks escalate. Financial system remains stable Despite recent economic turbulence, the RBNZ said the financial system is stable. Lower wholesale rates have begun to translate into reduced mortgage and deposit rates, and banks remain well capitalised. Nearly half of all mortgages are due to reprice in the coming months, offering households further relief. The bank acknowledged that monetary policy will remain responsive to both domestic developments and shifting global dynamics, particularly if protectionist measures persist. “There is significant uncertainty about how global tariffs will transmit to New Zealand’s economy,” it said, emphasising that policy decisions will be guided by inflation outcomes and broader financial stability considerations. With inflation moderating and economic headwinds building, New Zealand’s central bank appears poised to maintain an easing bias and, if necessary, continue rate cuts to support its recovery and safeguard price stability amid a turbulent global backdrop.

The move was widely anticipated by markets and aligns with recent forecasts from economists, who have pointed to growing international uncertainty and spare capacity in the domestic economy.

New Zealand announces sixth consecutive rate cut as global trade risks cloud recovery

European Union member states on May 27 formally approved a €150 billion ($170 billion) defence loan program, known as the Security Action for Europe (SAFE), marking a historic step in the bloc’s efforts to rearm and build long-term strategic autonomy in the face of persistent Russian aggression and rising doubts over US security commitments.&nbsp;The SAFE scheme, proposed by the European Commission (EC) in March 2025, was endorsed by 26 out of 27 EU countries at a meeting of European ministers in Brussels. Hungary was the only country to abstain. The Polish presidency, which currently holds the EU’s rotating leadership, hailed the move as the bloc’s “first large-scale defence investment programme”.&nbsp;Under the plan, the EU will use its triple-A credit rating to collectively borrow funds on capital markets and loan them to member states for joint defence procurement projects. By pooling resources, the bloc aims to secure better financing conditions and scale up its defence industrial capacity amid heightened geopolitical instability and pressure to support Ukraine.&nbsp;Response to Russia and uncertain US role&nbsp;The SAFE initiative comes amid growing concern about the US scaling back its defence commitments to Europe. European leaders, wary of relying too heavily on Washington, have pushed to strengthen the EU’s own defence capabilities and manufacturing base, especially after Russia’s full-scale invasion of Ukraine in 2022.&nbsp;The legislation explicitly cites the “urgent” threats posed by Russia and Belarus, stating that support must begin as soon as possible to ensure timely procurement and production of essential defence equipment. A key feature of the fund is its ability to bypass the usual EU spending constraints by exempting defence-related outlays from budget deficit rules, providing immediate fiscal room for investment.&nbsp;While the EU has increased its collective defence spending by over 30 per cent since 2021, Brussels and several member states have warned that fragmented national procurement and limited production capacity could hamper long-term readiness. SAFE aims to address this by encouraging joint projects and reducing reliance on external suppliers, especially from the United States.&nbsp;Strategic autonomy with conditions&nbsp;The SAFE scheme is modelled on the EU’s COVID-19 recovery fund, also based on joint borrowing. Unlike the pandemic fund, however, SAFE consists solely of loans, which some southern EU nations have criticised as placing a heavier burden on already strained public finances.&nbsp;Loans under the scheme will have favourable terms, including a 45-year repayment window and a 10-year grace period. Additionally, member states will not have to pay VAT on purchases made under the programme. However, starting in 2026, countries must apply for SAFE funds jointly with at least one other state to encourage cross-border collaboration. The scheme is set to run until 2030, with no more than 60 per cent of the total funding allocated to the top three recipients.&nbsp;The final version of the regulation includes provisions to ensure both industrial and geopolitical balance. To qualify for funding, 65 per cent of the value of a defence project must originate from within the EU, the European Free Trade Association (EFTA), or Ukraine. The remaining 35 per cent can be sourced from other countries, such as the US.&nbsp;Countries with a Security and Defence Partnership (SDP) agreement with the EU, including the United Kingdom, Japan, South Korea, and several others, are also eligible for partial participation. The UK’s recent defence pact with the EU clears the way for British firms to join the scheme, although further negotiations are needed to finalise access.&nbsp;Next steps and industry implications&nbsp;The SAFE initiative is expected to unlock up to €800 billion (about $900 billion) in potential defence spending over time, according to estimates from Brussels. EU officials hope it will catalyse the emergence of a more unified and competitive European defence industry, reducing duplication and increasing interoperability across the bloc.&nbsp;However, the scheme is not without critics. Some observers warn of regulatory hurdles and potential legal challenges, especially given the Commission’s decision to bypass the European Parliament through a fast-track approval process. Others worry that the inclusion of non-EU participants could dilute the programme’s "Buy European" focus.&nbsp;Still, for many in Brussels and across European capitals, SAFE marks a decisive moment in the EU’s security trajectory—one that reflects a more assertive and independent defence posture in an increasingly unstable world.&nbsp;(With inputs from agencies)

Under the plan, the EU will use its triple-A credit rating to collectively borrow funds on capital markets and loan them to member states for joint defence procurement projects.

European Union member states on May 27 formally approved a €150 billion ($170 billion) defence loan program, known as the Security Action for Europe (SAFE), marking a historic step in the bloc’s efforts to rearm and build long-term strategic autonomy in the face of persistent Russian aggression and rising doubts over US security commitments. The SAFE scheme, proposed by the European Commission (EC) in March 2025, was endorsed by 26 out of 27 EU countries at a meeting of European ministers in Brussels. Hungary was the only country to abstain. The Polish presidency, which currently holds the EU’s rotating leadership, hailed the move as the bloc’s “first large-scale defence investment programme”. Under the plan, the EU will use its triple-A credit rating to collectively borrow funds on capital markets and loan them to member states for joint defence procurement projects. By pooling resources, the bloc aims to secure better financing conditions and scale up its defence industrial capacity amid heightened geopolitical instability and pressure to support Ukraine. Response to Russia and uncertain US role The SAFE initiative comes amid growing concern about the US scaling back its defence commitments to Europe. European leaders, wary of relying too heavily on Washington, have pushed to strengthen the EU’s own defence capabilities and manufacturing base, especially after Russia’s full-scale invasion of Ukraine in 2022. The legislation explicitly cites the “urgent” threats posed by Russia and Belarus, stating that support must begin as soon as possible to ensure timely procurement and production of essential defence equipment. A key feature of the fund is its ability to bypass the usual EU spending constraints by exempting defence-related outlays from budget deficit rules, providing immediate fiscal room for investment. While the EU has increased its collective defence spending by over 30 per cent since 2021, Brussels and several member states have warned that fragmented national procurement and limited production capacity could hamper long-term readiness. SAFE aims to address this by encouraging joint projects and reducing reliance on external suppliers, especially from the United States. Strategic autonomy with conditions The SAFE scheme is modelled on the EU’s COVID-19 recovery fund, also based on joint borrowing. Unlike the pandemic fund, however, SAFE consists solely of loans, which some southern EU nations have criticised as placing a heavier burden on already strained public finances. Loans under the scheme will have favourable terms, including a 45-year repayment window and a 10-year grace period. Additionally, member states will not have to pay VAT on purchases made under the programme. However, starting in 2026, countries must apply for SAFE funds jointly with at least one other state to encourage cross-border collaboration. The scheme is set to run until 2030, with no more than 60 per cent of the total funding allocated to the top three recipients. The final version of the regulation includes provisions to ensure both industrial and geopolitical balance. To qualify for funding, 65 per cent of the value of a defence project must originate from within the EU, the European Free Trade Association (EFTA), or Ukraine. The remaining 35 per cent can be sourced from other countries, such as the US. Countries with a Security and Defence Partnership (SDP) agreement with the EU, including the United Kingdom, Japan, South Korea, and several others, are also eligible for partial participation. The UK’s recent defence pact with the EU clears the way for British firms to join the scheme, although further negotiations are needed to finalise access. Next steps and industry implications The SAFE initiative is expected to unlock up to €800 billion (about $900 billion) in potential defence spending over time, according to estimates from Brussels. EU officials hope it will catalyse the emergence of a more unified and competitive European defence industry, reducing duplication and increasing interoperability across the bloc. However, the scheme is not without critics. Some observers warn of regulatory hurdles and potential legal challenges, especially given the Commission’s decision to bypass the European Parliament through a fast-track approval process. Others worry that the inclusion of non-EU participants could dilute the programme’s "Buy European" focus. Still, for many in Brussels and across European capitals, SAFE marks a decisive moment in the EU’s security trajectory—one that reflects a more assertive and independent defence posture in an increasingly unstable world. (With inputs from agencies)

Under the plan, the EU will use its triple-A credit rating to collectively borrow funds on capital markets and loan them to member states for joint defence procurement projects.

EU approves $170 billion SAFE fund to boost defence and reduce reliance on US

The cloud software company, Salesforce has announced its plans to acquire cloud data management company Informatica in a deal valued at approximately $8 billion, marking a major strategic move to solidify its position in the competitive enterprise AI landscape. The acquisition, confirmed on May 27, represents Salesforce's most significant purchase since it acquired Slack Technologies for $27.7 billion in 2021.&nbsp;Under the terms of the agreement, Salesforce will pay $25 per share in cash for Informatica’s outstanding Class A and Class B-1 common stock—a roughly 30 per cent premium over Informatica’s share price before news of the renewed talks emerged last week. Informatica shareholders representing about 63 per cent of the voting power have already approved the deal, which is expected to close early in Salesforce’s fiscal year 2027.&nbsp;The deal is being funded through a combination of Salesforce’s existing cash reserves and new debt. Salesforce expects the acquisition to be accretive to its non-GAAP operating margin, earnings per share, and free cash flow beginning in the second year following the transaction's close.&nbsp;Boosting AI capabilities&nbsp;Informatica, a leader in enterprise cloud data management, offers a suite of tools for data integration, governance, privacy, quality, metadata management, and master data management (MDM). These capabilities will be integrated into Salesforce’s broader platform to support the company’s push into agentic AI-powered systems that can act autonomously across business functions.&nbsp;The acquisition is seen as a pivotal step in Salesforce’s strategy to offer enterprise clients AI solutions that are secure, reliable, and scalable.&nbsp;By embedding Informatica’s technology within Salesforce’s ecosystem—including its Data Cloud, MuleSoft, Tableau, and the emerging Agentforce platform—the company aims to build a unified system that allows AI agents to act on enterprise data with full contextual awareness, regulatory compliance, and governance.&nbsp;Agentforce, Salesforce’s virtual AI representative product, has already secured over 1,000 paid enterprise deals. The addition of Informatica’s tools is expected to enhance the product’s ability to automate routine workflows in areas like customer service and recruitment without human supervision.&nbsp;Strategic realignment and market positioning&nbsp;Salesforce’s return to large-scale acquisitions follows a period of restraint triggered by activist investor pressure in 2023, which emphasised profitability over aggressive growth. The firm’s leadership has described this acquisition as a methodical and strategic investment in the future of AI-powered enterprise services.&nbsp;Informatica’s technology will also enhance Salesforce’s Data Cloud by improving clarity and trust in enterprise data, a growing necessity as generative AI becomes more deeply embedded into business processes.&nbsp;In parallel, Tableau’s analytics will gain from richer metadata context, and MuleSoft’s API ecosystem will benefit from better data standardisation and quality control.&nbsp;The deal is expected to strengthen Salesforce’s position in a data enterprise market that analysts estimate is worth over $150 billion. As more AI capabilities are bundled into enterprise software offerings, Salesforce appears poised to compete more aggressively with rivals offering comprehensive data-to-AI platforms.&nbsp;Informatica, which went public again in 2021, has seen its stock decline significantly over the past year amid heightened competition. The deal valued the company at a time when its market cap had fallen to about $7.2 billion, down from a peak of $11.5 billion.

The deal is being funded through a combination of Salesforce’s existing cash reserves and new debt

The cloud software company, Salesforce has announced its plans to acquire cloud data management company Informatica in a deal valued at approximately $8 billion, marking a major strategic move to solidify its position in the competitive enterprise AI landscape. The acquisition, confirmed on May 27, represents Salesforce's most significant purchase since it acquired Slack Technologies for $27.7 billion in 2021. Under the terms of the agreement, Salesforce will pay $25 per share in cash for Informatica’s outstanding Class A and Class B-1 common stock—a roughly 30 per cent premium over Informatica’s share price before news of the renewed talks emerged last week. Informatica shareholders representing about 63 per cent of the voting power have already approved the deal, which is expected to close early in Salesforce’s fiscal year 2027. The deal is being funded through a combination of Salesforce’s existing cash reserves and new debt. Salesforce expects the acquisition to be accretive to its non-GAAP operating margin, earnings per share, and free cash flow beginning in the second year following the transaction's close. Boosting AI capabilities Informatica, a leader in enterprise cloud data management, offers a suite of tools for data integration, governance, privacy, quality, metadata management, and master data management (MDM). These capabilities will be integrated into Salesforce’s broader platform to support the company’s push into agentic AI-powered systems that can act autonomously across business functions. The acquisition is seen as a pivotal step in Salesforce’s strategy to offer enterprise clients AI solutions that are secure, reliable, and scalable. By embedding Informatica’s technology within Salesforce’s ecosystem—including its Data Cloud, MuleSoft, Tableau, and the emerging Agentforce platform—the company aims to build a unified system that allows AI agents to act on enterprise data with full contextual awareness, regulatory compliance, and governance. Agentforce, Salesforce’s virtual AI representative product, has already secured over 1,000 paid enterprise deals. The addition of Informatica’s tools is expected to enhance the product’s ability to automate routine workflows in areas like customer service and recruitment without human supervision. Strategic realignment and market positioning Salesforce’s return to large-scale acquisitions follows a period of restraint triggered by activist investor pressure in 2023, which emphasised profitability over aggressive growth. The firm’s leadership has described this acquisition as a methodical and strategic investment in the future of AI-powered enterprise services. Informatica’s technology will also enhance Salesforce’s Data Cloud by improving clarity and trust in enterprise data, a growing necessity as generative AI becomes more deeply embedded into business processes. In parallel, Tableau’s analytics will gain from richer metadata context, and MuleSoft’s API ecosystem will benefit from better data standardisation and quality control. The deal is expected to strengthen Salesforce’s position in a data enterprise market that analysts estimate is worth over $150 billion. As more AI capabilities are bundled into enterprise software offerings, Salesforce appears poised to compete more aggressively with rivals offering comprehensive data-to-AI platforms. Informatica, which went public again in 2021, has seen its stock decline significantly over the past year amid heightened competition. The deal valued the company at a time when its market cap had fallen to about $7.2 billion, down from a peak of $11.5 billion.

The deal is being funded through a combination of Salesforce’s existing cash reserves and new debt.

Salesforce to acquire Informatica in $8 billion bid to bolster AI ambitions

Diamonds may be forever, but the current market is anything but stable. A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. As one of the world’s most globalised luxury sectors, the diamond trade is now navigating a complex web of geopolitical, economic, and consumer-driven shifts.Announced in early April, the tariff announced by US President Donald Trump applies to a wide range of goods, including natural polished diamonds, but excludes metals such as gold and copper.&nbsp;The immediate impact was a scramble across key trading hubs like Antwerp, with exporters rushing to ship inventory before the tariffs took effect. India, the largest exporter of cut and polished diamonds, saw a fivefold surge in US-bound exports from April 1 to 4, reaching $512 million. Yet despite the rush, April exports of cut and polished diamonds fell 6.12 per cent compared to the previous year, according to data released by the Gem and Jewellery Export Promotion Council (GJEPC).Unlike commodities sourced and processed in a single location, diamonds often travel extensively. A single stone might be mined in Botswana, polished in India, certified in the US, and sold in Europe. The 10 per cent import duty adds cost at the final leg of that journey—a price increase that traders warn will ultimately be borne by consumers, especially in the US, which accounts for more than half of the global diamond demand.Retailers in the US are already pushing the added burden onto suppliers. Financial Times recently reported that Signet Jewellers, the largest diamond retailer in the country, told vendors it would not pay any additional costs linked to the new tariff on existing purchase orders. The company urged its partners to expedite shipments into the US to mitigate the financial fallout.The broader industry remains in a holding pattern as the White House has paused additional reciprocal tariffs for 90 days, pending further negotiations. But the initial 10 per cent duty remains active, and uncertainty is undermining confidence across the global supply chain.&nbsp;Consumer pressure and competitive headwinds&nbsp;Tariffs are hitting at an especially sensitive moment for the sector. Inflation and a softening in consumer sentiment have already begun to dampen discretionary spending. According to the Bureau of Economic Analysis, US consumer spending on jewellery and watches fell 5 per cent year-on-year in the first quarter of 2025. The National Retail Federation has forecast retail growth to slow to between 2.7 per cent and 3.7 per cent this year, compared to 8.1 per cent in 2024.Against this backdrop, the popularity of lab-grown diamonds (LGDs) has surged. These diamonds are chemically identical to natural diamonds but up to 80 per cent cheaper. LGDs now appear in over half of US engagement rings, according to The Knot’s 2025 Real Weddings study. Their rise has played a major role in the nearly 60 per cent decline in natural diamond prices since their peak in early 2022.To combat this, some traditional players are consolidating their strategies. De Beers, for example, has opted to shut down its LGD jewellery brand Lightbox to refocus on natural stones. The company’s parent, Anglo American, has written down De Beers’ value by $4.5 billion over the past two years and is currently preparing it for a possible spin-off or sale.&nbsp;China demand falters, India rises&nbsp;Compounding the industry’s challenges is a steep contraction in Chinese demand. Once a key driver of luxury consumption, China’s diamond market has shrunk significantly amid macro- and microeconomic challenges.Data from the Gems &amp; Jewelry Trade Association of China shows that the market fell from RMB 100 billion ($13.88 billion) in 2021 to just RMB 43 billion ($55.52 billion) in 2024—a staggering 57 per cent decline. Gem-quality diamond imports dropped 73 per cent by volume and 83 per cent by value over the same period, signalling severe price erosion.The decline in China’s demand has had global consequences, as it was the world's second-largest diamond market. India, however, is emerging as a counterweight to China’s slowdown.While India’s exports are down, India’s domestic market is showing double-digit growth, making it the world’s second-largest diamond consumer behind the US. According to industry experts, India’s rise has helped offset some of the global demand slump. Still, the growth is not enough to fully balance the downturn in China with the volatility in the US.&nbsp;Fragile supply chain faces uncertain future&nbsp;The global diamond supply chain—already stretched by pandemic-era disruptions—is particularly vulnerable to trade barriers. A typical diamond passes through several borders: mined in parts of Africa, traded in the Middle East or Europe, polished in India, certified in the US, and sold in retail outlets globally. Tariffs, therefore, do more than add cost; they risk unravelling the finely tuned logistics of the entire ecosystem.Adding to the complexity is the uncertain legal treatment of diamonds under US trade rules. While other commodities like gold and copper are exempt from tariffs, loose diamonds are currently included, despite being viewed by some as a raw material. Industry groups like the World Diamond Council are lobbying for exemption, warning that the tariffs could act as a consumption tax and dampen sentimental purchases such as engagement rings and anniversary gifts.The global diamond industry faces a crossroads. Tariffs and geopolitics have joined falling demand and technological disruption as key forces shaping the future. Analysts predict a bifurcation of the market, with premium natural diamonds becoming niche luxury items, while lab-grown stones dominate the mass market.For now, even the hardest substance on Earth is proving vulnerable to the softening forces of economics and policy.

A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. 

Diamonds may be forever, but the current market is anything but stable. A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. As one of the world’s most globalised luxury sectors, the diamond trade is now navigating a complex web of geopolitical, economic, and consumer-driven shifts. Announced in early April, the tariff announced by US President Donald Trump applies to a wide range of goods, including natural polished diamonds, but excludes metals such as gold and copper. The immediate impact was a scramble across key trading hubs like Antwerp, with exporters rushing to ship inventory before the tariffs took effect. India, the largest exporter of cut and polished diamonds, saw a fivefold surge in US-bound exports from April 1 to 4, reaching $512 million. Yet despite the rush, April exports of cut and polished diamonds fell 6.12 per cent compared to the previous year, according to data released by the Gem and Jewellery Export Promotion Council (GJEPC). Unlike commodities sourced and processed in a single location, diamonds often travel extensively. A single stone might be mined in Botswana, polished in India, certified in the US, and sold in Europe. The 10 per cent import duty adds cost at the final leg of that journey—a price increase that traders warn will ultimately be borne by consumers, especially in the US, which accounts for more than half of the global diamond demand. Retailers in the US are already pushing the added burden onto suppliers. Financial Times recently reported that Signet Jewellers, the largest diamond retailer in the country, told vendors it would not pay any additional costs linked to the new tariff on existing purchase orders. The company urged its partners to expedite shipments into the US to mitigate the financial fallout. The broader industry remains in a holding pattern as the White House has paused additional reciprocal tariffs for 90 days, pending further negotiations. But the initial 10 per cent duty remains active, and uncertainty is undermining confidence across the global supply chain. Consumer pressure and competitive headwinds Tariffs are hitting at an especially sensitive moment for the sector. Inflation and a softening in consumer sentiment have already begun to dampen discretionary spending. According to the Bureau of Economic Analysis, US consumer spending on jewellery and watches fell 5 per cent year-on-year in the first quarter of 2025. The National Retail Federation has forecast retail growth to slow to between 2.7 per cent and 3.7 per cent this year, compared to 8.1 per cent in 2024. Against this backdrop, the popularity of lab-grown diamonds (LGDs) has surged. These diamonds are chemically identical to natural diamonds but up to 80 per cent cheaper. LGDs now appear in over half of US engagement rings, according to The Knot’s 2025 Real Weddings study. Their rise has played a major role in the nearly 60 per cent decline in natural diamond prices since their peak in early 2022. To combat this, some traditional players are consolidating their strategies. De Beers, for example, has opted to shut down its LGD jewellery brand Lightbox to refocus on natural stones. The company’s parent, Anglo American, has written down De Beers’ value by $4.5 billion over the past two years and is currently preparing it for a possible spin-off or sale. China demand falters, India rises Compounding the industry’s challenges is a steep contraction in Chinese demand. Once a key driver of luxury consumption, China’s diamond market has shrunk significantly amid macro- and microeconomic challenges. Data from the Gems & Jewelry Trade Association of China shows that the market fell from RMB 100 billion ($13.88 billion) in 2021 to just RMB 43 billion ($55.52 billion) in 2024—a staggering 57 per cent decline. Gem-quality diamond imports dropped 73 per cent by volume and 83 per cent by value over the same period, signalling severe price erosion. The decline in China’s demand has had global consequences, as it was the world's second-largest diamond market. India, however, is emerging as a counterweight to China’s slowdown. While India’s exports are down, India’s domestic market is showing double-digit growth, making it the world’s second-largest diamond consumer behind the US. According to industry experts, India’s rise has helped offset some of the global demand slump. Still, the growth is not enough to fully balance the downturn in China with the volatility in the US. Fragile supply chain faces uncertain future The global diamond supply chain—already stretched by pandemic-era disruptions—is particularly vulnerable to trade barriers. A typical diamond passes through several borders: mined in parts of Africa, traded in the Middle East or Europe, polished in India, certified in the US, and sold in retail outlets globally. Tariffs, therefore, do more than add cost; they risk unravelling the finely tuned logistics of the entire ecosystem. Adding to the complexity is the uncertain legal treatment of diamonds under US trade rules. While other commodities like gold and copper are exempt from tariffs, loose diamonds are currently included, despite being viewed by some as a raw material. Industry groups like the World Diamond Council are lobbying for exemption, warning that the tariffs could act as a consumption tax and dampen sentimental purchases such as engagement rings and anniversary gifts. The global diamond industry faces a crossroads. Tariffs and geopolitics have joined falling demand and technological disruption as key forces shaping the future. Analysts predict a bifurcation of the market, with premium natural diamonds becoming niche luxury items, while lab-grown stones dominate the mass market. For now, even the hardest substance on Earth is proving vulnerable to the softening forces of economics and policy.

A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives.&nbsp;

Is the hardest metal crumbling under US tariff pressure?

For the first time in more than three decades, Japan has lost its position as the world’s largest creditor nation. This resonates as a symbolic shift that reflects deeper vulnerabilities in the country’s economic foundations.&nbsp;&nbsp;According to data released by Japan’s Ministry of Finance, the nation’s net external assets reached ¥533.05 trillion ($3.7 trillion) at the end of 2024, an all-time high, yet not enough to maintain its top ranking.&nbsp;Germany has now overtaken Japan, recording net external assets of ¥569.7 trillion, buoyed by its sizeable current account surplus of €248.7 billion last year, according to Bloomberg. China retained third place with net assets of ¥516.3 trillion, according to Bloomberg. &nbsp;This development marks the end of a 34-year reign for Japan, whose overseas assets have long reflected its post-war export dominance and global investment clout. The fall, though, is not due to a sudden decline in foreign investments, in fact, Japan’s assets grew by about 13 per cent year-on-year.&nbsp;&nbsp;Rather, a combination of yen depreciation and the relatively faster accumulation of wealth abroad by competitors like Germany have tilted the balance.&nbsp;A weaker yen, while enhancing the value of overseas holdings in local currency terms, also inflated Japan’s liabilities. The Ministry of Finance noted that Japanese businesses continued to invest robustly abroad, particularly in the US and UK, with sectors such as finance, insurance, and retail attracting considerable capital. &nbsp;Yet this outward investment boom is doing little to shield the domestic economy from escalating global pressures.<h2>Japan’s fragile position in a new global order</h2>The loss of creditor status is just one sign of Japan’s broader economic fragility. Despite high overseas asset growth, the domestic economy is grappling with multiple challenges: declining consumer confidence, ageing demographics, and trade frictions that are dampening industrial momentum. &nbsp;According to the International Monetary Fund (IMF), Japan’s economy grew by just 1 per cent in 2024. The IMF projects Japan’s growth to slow further in 2025, with real GDP expected to expand only 0.9 per cent, a stark contrast to its regional peers. Inflation, meanwhile, has remained persistently above the Bank of Japan’s target, averaging around 3.1 per cent in 2024, driven largely by energy prices and a weaker yen, as reported by Reuters.&nbsp;This stagnation is compounded by global trade shifts. The return of Donald Trump to the US presidency has reignited protectionist policies, with renewed tariffs rattling key Japanese sectors. According to Reuters, Japanese automakers are already reeling from a 25 per cent US tariff on finished cars and car parts.&nbsp;&nbsp;Toyota, the country’s largest company, has projected a $1.3 billion hit to its profits for April and May alone. Nissan is reportedly considering closing two domestic plants and shifting more production to the US to bypass rising trade barriers.&nbsp;These developments have triggered warnings from Japanese economists and officials. The automotive industry, a cornerstone of Japan’s GDP and employment is caught in a tightening vice of tariff shocks and supply chain disruptions. Public dissatisfaction is also rising, with wage growth lagging behind inflation, squeezing household budgets.&nbsp;While Japan’s economy struggles, others are rising, most notably India. According to ANI, NITI Aayog CEO BVR Subrahmanyam confirmed that India has overtaken Japan to become the world’s fourth-largest economy, citing the latest International Monetary Fund data. &nbsp;The IMF’s April 2025 World Economic Outlook estimates India’s nominal GDP will reach $4.187 trillion, slightly surpassing Japan’s projected $4.186 trillion. This shift underscores Japan’s declining share in the global economy and highlights a regional power rebalancing in Asia.<h2>Tokyo’s ¥980 billion shield to counter Trump’s tariffs</h2>According to the New York Times, in a bid to cushion the domestic blow from rising tariffs and inflation, the Japanese government has unveiled a ¥980 billion ($6.3 billion) emergency spending package. The funds reportedly aim to subsidise energy costs for households and provide support to small and medium-sized enterprises (SMEs) struggling under new trade constraints. &nbsp;Cabinet Secretary Yoshimasa Hayashi announced the package earlier this week, saying it was designed to “fully support” the population during a volatile economic phase. As per Reuters, the measures are also politically timed — the Kishida administration faces an upper house election in July, and public frustration is growing over stagnant wages and higher consumer prices. &nbsp;Meanwhile, Japan’s efforts to negotiate tariff relief from the US have hit a wall. Tokyo’s top trade envoy, Ryosei Akazawa, met Trump administration officials in Washington last week, but talks reportedly stalled.&nbsp;&nbsp;Trump officials have signalled that Japan’s primary demand an exemption from auto tariffs is currently off the table. Hopes now rest on the upcoming G7 Summit in Canada, where informal discussions may resume.&nbsp;Japan’s decline in economic influence symbolised by the loss of its top creditor status and its fall behind India in GDP rankings reflects more than just statistical shifts. It signals an urgent need for economic renewal in a nation facing demographic decline, external trade pressure, and internal stagnation.&nbsp;The government’s recent fiscal package offers short-term relief, but structural reforms are needed to chart a more sustainable path forward. Analysts point to innovation, productivity gains, and trade diversification as key to Japan’s future competitiveness.&nbsp;As global economic power continues to shift and trade alliances reshape, Japan must adapt or risk fading further from the world’s economic centre stage.

Business & Economy: Germany has now overtaken Japan, with net external assets of ¥569.7 trillion, supported by its €248.7 billion current account surplus. China retained third place with net assets of ¥516.3 trillion.

For the first time in more than three decades, Japan has lost its position as the world’s largest creditor nation. This resonates as a symbolic shift that reflects deeper vulnerabilities in the country’s economic foundations. According to data released by Japan’s Ministry of Finance, the nation’s net external assets reached ¥533.05 trillion ($3.7 trillion) at the end of 2024, an all-time high, yet not enough to maintain its top ranking. Germany has now overtaken Japan, recording net external assets of ¥569.7 trillion, buoyed by its sizeable current account surplus of €248.7 billion last year, according to Bloomberg. China retained third place with net assets of ¥516.3 trillion, according to Bloomberg. This development marks the end of a 34-year reign for Japan, whose overseas assets have long reflected its post-war export dominance and global investment clout. The fall, though, is not due to a sudden decline in foreign investments, in fact, Japan’s assets grew by about 13 per cent year-on-year. Rather, a combination of yen depreciation and the relatively faster accumulation of wealth abroad by competitors like Germany have tilted the balance. A weaker yen, while enhancing the value of overseas holdings in local currency terms, also inflated Japan’s liabilities. The Ministry of Finance noted that Japanese businesses continued to invest robustly abroad, particularly in the US and UK, with sectors such as finance, insurance, and retail attracting considerable capital. Yet this outward investment boom is doing little to shield the domestic economy from escalating global pressures. Japan’s fragile position in a new global order The loss of creditor status is just one sign of Japan’s broader economic fragility. Despite high overseas asset growth, the domestic economy is grappling with multiple challenges: declining consumer confidence, ageing demographics, and trade frictions that are dampening industrial momentum. According to the International Monetary Fund (IMF), Japan’s economy grew by just 1 per cent in 2024. The IMF projects Japan’s growth to slow further in 2025, with real GDP expected to expand only 0.9 per cent, a stark contrast to its regional peers. Inflation, meanwhile, has remained persistently above the Bank of Japan’s target, averaging around 3.1 per cent in 2024, driven largely by energy prices and a weaker yen, as reported by Reuters. This stagnation is compounded by global trade shifts. The return of Donald Trump to the US presidency has reignited protectionist policies, with renewed tariffs rattling key Japanese sectors. According to Reuters, Japanese automakers are already reeling from a 25 per cent US tariff on finished cars and car parts. Toyota, the country’s largest company, has projected a $1.3 billion hit to its profits for April and May alone. Nissan is reportedly considering closing two domestic plants and shifting more production to the US to bypass rising trade barriers. These developments have triggered warnings from Japanese economists and officials. The automotive industry, a cornerstone of Japan’s GDP and employment is caught in a tightening vice of tariff shocks and supply chain disruptions. Public dissatisfaction is also rising, with wage growth lagging behind inflation, squeezing household budgets. While Japan’s economy struggles, others are rising, most notably India. According to ANI, NITI Aayog CEO BVR Subrahmanyam confirmed that India has overtaken Japan to become the world’s fourth-largest economy, citing the latest International Monetary Fund data. The IMF’s April 2025 World Economic Outlook estimates India’s nominal GDP will reach $4.187 trillion, slightly surpassing Japan’s projected $4.186 trillion. This shift underscores Japan’s declining share in the global economy and highlights a regional power rebalancing in Asia. Tokyo’s ¥980 billion shield to counter Trump’s tariffs According to the New York Times, in a bid to cushion the domestic blow from rising tariffs and inflation, the Japanese government has unveiled a ¥980 billion ($6.3 billion) emergency spending package. The funds reportedly aim to subsidise energy costs for households and provide support to small and medium-sized enterprises (SMEs) struggling under new trade constraints. Cabinet Secretary Yoshimasa Hayashi announced the package earlier this week, saying it was designed to “fully support” the population during a volatile economic phase. As per Reuters, the measures are also politically timed — the Kishida administration faces an upper house election in July, and public frustration is growing over stagnant wages and higher consumer prices. Meanwhile, Japan’s efforts to negotiate tariff relief from the US have hit a wall. Tokyo’s top trade envoy, Ryosei Akazawa, met Trump administration officials in Washington last week, but talks reportedly stalled. Trump officials have signalled that Japan’s primary demand an exemption from auto tariffs is currently off the table. Hopes now rest on the upcoming G7 Summit in Canada, where informal discussions may resume. Japan’s decline in economic influence symbolised by the loss of its top creditor status and its fall behind India in GDP rankings reflects more than just statistical shifts. It signals an urgent need for economic renewal in a nation facing demographic decline, external trade pressure, and internal stagnation. The government’s recent fiscal package offers short-term relief, but structural reforms are needed to chart a more sustainable path forward. Analysts point to innovation, productivity gains, and trade diversification as key to Japan’s future competitiveness. As global economic power continues to shift and trade alliances reshape, Japan must adapt or risk fading further from the world’s economic centre stage.

Amid global trade tension, Japan has lost its position as the world's largest creditor nation for the first time in over three decades, according to data from Japan's Ministry of Finance.&nbsp;

Japan loses top creditor rank as economic troubles deepen

The European Union has issued a stark warning to Chinese fast-fashion giant Shein, threatening the company with hefty fines for allegedly deceiving consumers and violating EU consumer protection laws.&nbsp;The action follows a sweeping investigation led by the European Commission in coordination with national regulators in Belgium, France, Ireland, and the Netherlands, according to Reuters.&nbsp;Shein, which has become a household name across Europe by selling low-cost fashion online, has been accused of manipulating prices, misleading customers, and failing to meet refund obligations.&nbsp;The company has until 26 June to respond and propose remedies. If it fails to do so, it could face fines based on its annual turnover within EU member states, as per Reuters.<h2> What Shein is accused of doing</h2> The European Commission has accused fast-fashion giant Shein of engaging in a series of deceptive practices that violate EU consumer protection laws.&nbsp;According to Reuters, the Commission, in coordination with consumer rights watchdogs in Belgium, France, Ireland, and the Netherlands, found that Shein had consistently misled its customers through tactics that distort purchasing decisions and compromise transparency.&nbsp;At the core of the allegations is Shein’s pricing strategy. The company is reportedly accused of promoting fake discounts by artificially inflating the original prices of items to exaggerate the size of savings during sales.&nbsp;Additionally, Shein has been reportedly found to manufacture a sense of urgency by deploying misleading countdown timers and limited stock notices, designed to pressure consumers into making hasty purchases.&nbsp;The European Union also raised concerns about deceptive labelling, particularly regarding products marketed as sustainable. According to the investigation, many of these claims lack substantiated environmental standards, misleading customers who may be trying to make eco-conscious choices.&nbsp;Shein has also reportedly come under fire for concealing customer service contact details, effectively making it difficult for consumers to seek redress or file complaints.&nbsp;Equally problematic, the Commission said, is the company’s handling of return and refund policies. It accused Shein of providing incorrect and unclear information about return procedures and of delaying refunds, thereby undermining consumer trust and legal rights. &nbsp;In its official statement, the European Commission noted that these practices breach essential consumer rights related to transparency and fair dealing. “Shein now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified consumer law issues,” the Commission said, as quoted by Reuters.&nbsp;It further added that if Shein fails to take meaningful corrective action, national authorities within the EU have the mandate to take enforcement steps, including the imposition of fines. These penalties could be calculated based on Shein’s annual turnover in the relevant EU Member States, according to Reuters. &nbsp;The regulatory pressure is part of a broader push by the EU to hold digital and cross-border platforms accountable for consumer welfare, especially as platforms like Shein continue to dominate the fast fashion market with massive user bases, according to Reuters.<h2>Shein’s dominant EU footprint</h2>Shein’s potential penalties come at a time when its digital footprint in Europe is vast. The company reports that nearly 100 million monthly users engage with its platform in the region, as per data shared on Shein’s official website and cited by Business Insider.&nbsp;This scale makes Shein a priority for EU regulators, who are increasingly scrutinising major online retailers for consumer and product safety compliance.&nbsp;Earlier this year, the European Commission also warned Shein and its rival Temu about the sale of unsafe and potentially dangerous products, according to Reuters.&nbsp;Shein is also in the crosshairs of the Digital Services Act (DSA), which mandates stricter obligations for very large online platforms operating in the EU. Additionally, the European Union has proposed a €2 handling fee per parcel on low-value e-commerce shipments, a policy widely seen as targeting high-volume sellers like Shein, Reuters reported.<h2>Trade troubles and slowing growth</h2>The EU probe comes on the heels of global trade headwinds that are already hurting Shein’s profitability. In April, the company increased product prices, citing “recent changes in global trade rules and tariffs”.&nbsp;As reported by Business Insider, the move followed US President Donald Trump’s closure of the de minimis loophole, which had allowed shipments under $800 to enter the United States duty-free.&nbsp;Shein’s sales growth has since slowed, and analysts say its low-margin, high-volume model is becoming more difficult to sustain amid tariff hikes and regulatory scrutiny from both the US and EU.<h2>What comes next?</h2>With a deadline of June 26 looming, Shein must now respond to the EU’s findings and present a credible plan to fix the problems. If the company’s reply is deemed unsatisfactory, enforcement proceedings will follow — potentially leading to multi-million euro fines depending on the company’s EU revenue.&nbsp;Shein has yet to issue an official statement in response. Its representatives have not responded to requests for comment, according to Reuters.&nbsp;As the EU flexes its regulatory muscle and the US tightens trade loopholes, Shein’s global dominance faces mounting legal and economic pressure. For a company built on speed and scale, the question is whether it can adapt or risk being slowed down by the very markets that fuelled its meteoric rise. &nbsp;

Business & Economy: According to reports, Shein has until 26 June to respond and propose remedies, or face fines based on annual turnover within EU member states.

The European Union has issued a stark warning to Chinese fast-fashion giant Shein, threatening the company with hefty fines for allegedly deceiving consumers and violating EU consumer protection laws. The action follows a sweeping investigation led by the European Commission in coordination with national regulators in Belgium, France, Ireland, and the Netherlands, according to Reuters. Shein, which has become a household name across Europe by selling low-cost fashion online, has been accused of manipulating prices, misleading customers, and failing to meet refund obligations. The company has until 26 June to respond and propose remedies. If it fails to do so, it could face fines based on its annual turnover within EU member states, as per Reuters. What Shein is accused of doing The European Commission has accused fast-fashion giant Shein of engaging in a series of deceptive practices that violate EU consumer protection laws. According to Reuters, the Commission, in coordination with consumer rights watchdogs in Belgium, France, Ireland, and the Netherlands, found that Shein had consistently misled its customers through tactics that distort purchasing decisions and compromise transparency. At the core of the allegations is Shein’s pricing strategy. The company is reportedly accused of promoting fake discounts by artificially inflating the original prices of items to exaggerate the size of savings during sales. Additionally, Shein has been reportedly found to manufacture a sense of urgency by deploying misleading countdown timers and limited stock notices, designed to pressure consumers into making hasty purchases. The European Union also raised concerns about deceptive labelling, particularly regarding products marketed as sustainable. According to the investigation, many of these claims lack substantiated environmental standards, misleading customers who may be trying to make eco-conscious choices. Shein has also reportedly come under fire for concealing customer service contact details, effectively making it difficult for consumers to seek redress or file complaints. Equally problematic, the Commission said, is the company’s handling of return and refund policies. It accused Shein of providing incorrect and unclear information about return procedures and of delaying refunds, thereby undermining consumer trust and legal rights. In its official statement, the European Commission noted that these practices breach essential consumer rights related to transparency and fair dealing. “Shein now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified consumer law issues,” the Commission said, as quoted by Reuters. It further added that if Shein fails to take meaningful corrective action, national authorities within the EU have the mandate to take enforcement steps, including the imposition of fines. These penalties could be calculated based on Shein’s annual turnover in the relevant EU Member States, according to Reuters. The regulatory pressure is part of a broader push by the EU to hold digital and cross-border platforms accountable for consumer welfare, especially as platforms like Shein continue to dominate the fast fashion market with massive user bases, according to Reuters. Shein’s dominant EU footprint Shein’s potential penalties come at a time when its digital footprint in Europe is vast. The company reports that nearly 100 million monthly users engage with its platform in the region, as per data shared on Shein’s official website and cited by Business Insider. This scale makes Shein a priority for EU regulators, who are increasingly scrutinising major online retailers for consumer and product safety compliance. Earlier this year, the European Commission also warned Shein and its rival Temu about the sale of unsafe and potentially dangerous products, according to Reuters. Shein is also in the crosshairs of the Digital Services Act (DSA), which mandates stricter obligations for very large online platforms operating in the EU. Additionally, the European Union has proposed a €2 handling fee per parcel on low-value e-commerce shipments, a policy widely seen as targeting high-volume sellers like Shein, Reuters reported. Trade troubles and slowing growth The EU probe comes on the heels of global trade headwinds that are already hurting Shein’s profitability. In April, the company increased product prices, citing “recent changes in global trade rules and tariffs”. As reported by Business Insider, the move followed US President Donald Trump’s closure of the de minimis loophole, which had allowed shipments under $800 to enter the United States duty-free. Shein’s sales growth has since slowed, and analysts say its low-margin, high-volume model is becoming more difficult to sustain amid tariff hikes and regulatory scrutiny from both the US and EU. What comes next? With a deadline of June 26 looming, Shein must now respond to the EU’s findings and present a credible plan to fix the problems. If the company’s reply is deemed unsatisfactory, enforcement proceedings will follow — potentially leading to multi-million euro fines depending on the company’s EU revenue. Shein has yet to issue an official statement in response. Its representatives have not responded to requests for comment, according to Reuters. As the EU flexes its regulatory muscle and the US tightens trade loopholes, Shein’s global dominance faces mounting legal and economic pressure. For a company built on speed and scale, the question is whether it can adapt or risk being slowed down by the very markets that fuelled its meteoric rise.

The European Union has warned Chinese fast-fashion company Shein of potential fines for allegedly deceiving consumers and violating EU consumer protection laws.&nbsp;

Shein’s European empire at risk as Brussels issues stir warning over fake discounts and false claims

Donald Trump has been in the eye of a storm that's engulfed the US political landscape. At the centre of this controversy is the fading line between Trump's crypto push and his own profits.&nbsp;In the latest, Trump Media is reportedly in talks to raise $3 billion to invest in cryptocurrency. The funding plan includes $2 billion in equity and a $1 billion bond. This follows a closed-door dinner hosted by Trump in the White House for his investor 'friends.' The exclusive event featured Filet Mignon, Halibut, and a half-hour speech from President, capped off with a brief dance to ÝMCA.<h2>But why are analysts and lawmakers not dancing with Trump?</h2>Probably fearing a conflict of interest. Trump had advocated pro-crypto stance during his campaign before becoming president, claiming to make US, the çrypto capital of the world.' But his company ventures are now accused of profiting from this crypto push.&nbsp;Trump's family controls billions in $TRUMP tokens and holds top positions in World Liberty Financial, a crypto firm branding him as 'Chief crypto advocate.' Despite claims of a blind trust, ethics experts warn of blurred lines between public office and personal profit.<h2>Gifts or strategic leverage?</h2>The crypto expansion comes alongside multiple property deals in West Asia and luxury gifts, including a $400 million jet from Qatar, drawing bipartisan criticism.&nbsp;Senator Elizabeth Warren slammed Trump's recent crypto moves, warning of hidden corruption at play.&nbsp;'Um, Donald Trump's dinner is a, is a, an orgy of corruption. That's what this is all about. We are here today to talk about exactly one topic, corruption. Corruption in its ugliest form. Donald Trump is using the presidency of the United States to make himself richer through crypto and he's doing it right out there in plain sight,' she said during a press conference.Meanwhile, the White House maintains it has no role in the Trump family's private financial dealings.

Trump had advocated pro-crypto stance during his campaign before becoming president, claiming to make US, the çrypto capital of the world. But his company ventures are now accused of profiting from this crypto push.

Donald Trump has been in the eye of a storm that's engulfed the US political landscape. At the centre of this controversy is the fading line between Trump's crypto push and his own profits. In the latest, Trump Media is reportedly in talks to raise $3 billion to invest in cryptocurrency. The funding plan includes $2 billion in equity and a $1 billion bond. This follows a closed-door dinner hosted by Trump in the White House for his investor 'friends.' The exclusive event featured Filet Mignon, Halibut, and a half-hour speech from President, capped off with a brief dance to ÝMCA. But why are analysts and lawmakers not dancing with Trump? Probably fearing a conflict of interest. Trump had advocated pro-crypto stance during his campaign before becoming president, claiming to make US, the çrypto capital of the world.' But his company ventures are now accused of profiting from this crypto push. Trump's family controls billions in $TRUMP tokens and holds top positions in World Liberty Financial, a crypto firm branding him as 'Chief crypto advocate.' Despite claims of a blind trust, ethics experts warn of blurred lines between public office and personal profit. Gifts or strategic leverage? The crypto expansion comes alongside multiple property deals in West Asia and luxury gifts, including a $400 million jet from Qatar, drawing bipartisan criticism. Senator Elizabeth Warren slammed Trump's recent crypto moves, warning of hidden corruption at play. 'Um, Donald Trump's dinner is a, is a, an orgy of corruption. That's what this is all about. We are here today to talk about exactly one topic, corruption. Corruption in its ugliest form. Donald Trump is using the presidency of the United States to make himself richer through crypto and he's doing it right out there in plain sight,' she said during a press conference. Meanwhile, the White House maintains it has no role in the Trump family's private financial dealings.

Trump had advocated pro-crypto stance during his campaign before becoming president, claiming to make US, the çrypto capital of the world.' But his company ventures are now accused of profiting from this crypto push.

Trump Media plans $3 billion fundraising to invest in cryptocurrency

As the United Kingdom navigates a politically charged debate over migration, the government has launched a major training initiative aimed at addressing domestic skill shortages while reducing reliance on foreign workers.&nbsp;But this strategy, which aligns with Labour’s broader economic revival plans faces a key dilemma: can local labour be upskilled fast enough to match soaring demand, or will Britain’s growth ambitions falter under worker shortfalls?&nbsp;With a record investment in housing and infrastructure planned, the pressure is mounting to ensure that Britain’s workforce is ready. Experts warn that while the political optics of reducing migration may appeal to voters, economic timelines tell a different story.<h2>UK’s new training policy: building skills, facing bottlenecks</h2>According to Bloomberg, the UK government is committing £3 billion ($4.1 billion) to train 120,000 British workers in sectors such as construction, engineering, and social care. The policy includes the creation of 30,000 new apprenticeships and funding support for adult learners across the country. &nbsp;This effort will be partially funded through a 32 per cent increase in the Immigration Skills Charge, a fee employers pay when they sponsor foreign skilled workers. The move is expected to support an additional 45,000 training placements, helping Britain pivot away from its reliance on overseas labour.&nbsp;Education Secretary Bridget Phillipson stated, “We’re taking our responsibility seriously by providing more routes into employment.”&nbsp;However, this training plan comes at a time when Britain’s infrastructure ambitions are at an all-time high. According to a Boston Consulting Group report cited by Bloomberg, the UK is poised to receive £900 billion ($1.2 trillion) in combined public and private infrastructure investment by the end of 2029. Labour’s promise to build 1.5 million homes is at the centre of this economic vision. &nbsp;Yet, construction, &nbsp;the sector expected to deliver much of this growth and is already battling a shortfall in skilled workers. Many left the country after Brexit, and domestic labour is ageing. Industry leaders argue that the current training pipeline may not be fast or large enough to bridge the gap in time.&nbsp;“You can’t train bricklayers or care workers overnight,” warned a business executive quoted by Bloomberg. “We’ll see bottlenecks, wage inflation, and project delays.”Apprenticeships typically take two to five years before workers become job-ready, while housing and infrastructure targets are already on tight timelines.&nbsp;The Office for Budget Responsibility (OBR) has warned that if migration is cut faster than skills can be developed, the UK could see its GDP growth fall by up to 0.5 percentage points annually.&nbsp;In light of this, the British Chambers of Commerce is calling for a dual-track approach: continue building domestic capability, but also keep migration pathways open for priority sectors. It has recommended updating the shortage occupation list and streamlining visa access for essential foreign workers in construction, health, and social care.<h2>Migrants and the UK economy</h2>While the political debate often casts migration as a challenge, migrants have historically been a pillar of the UK economy. According to the Office for National Statistics (ONS), 18 per cent of the UK workforce is foreign-born, but their contribution to GDP exceeds 23 per cent.&nbsp;Migrants are particularly vital in sectors such as construction, hospitality, logistics, and health and social care. The Institute for Fiscal Studies reports that over 40 per cent of adult social care workers in London and the South East are migrants. In the construction sector, foreign-born workers filled critical gaps for years, a dynamic that has shifted dramatically post-Brexit, resulting in persistent labour shortages.&nbsp;Labour’s recent moves to tighten English-language requirements and make visa extensions more difficult have raised concerns among employers.While politically popular among certain voter bases, these measures risk shrinking the available talent pool at a time when Britain is trying to scale up national development. As the UK transitions to a new labour strategy, policymakers will have to balance domestic training timelines with economic urgency. For now, it appears that migrants remain an essential if politically contentious part of the solution.

Business & Economy: The initiative aims to address domestic skill shortages and reduce reliance on foreign workers. However, experts warn that the rapid upskilling of local labour may hinder Britain growth ambitions.

As the United Kingdom navigates a politically charged debate over migration, the government has launched a major training initiative aimed at addressing domestic skill shortages while reducing reliance on foreign workers. But this strategy, which aligns with Labour’s broader economic revival plans faces a key dilemma: can local labour be upskilled fast enough to match soaring demand, or will Britain’s growth ambitions falter under worker shortfalls? With a record investment in housing and infrastructure planned, the pressure is mounting to ensure that Britain’s workforce is ready. Experts warn that while the political optics of reducing migration may appeal to voters, economic timelines tell a different story. UK’s new training policy: building skills, facing bottlenecks According to Bloomberg, the UK government is committing £3 billion ($4.1 billion) to train 120,000 British workers in sectors such as construction, engineering, and social care. The policy includes the creation of 30,000 new apprenticeships and funding support for adult learners across the country. This effort will be partially funded through a 32 per cent increase in the Immigration Skills Charge, a fee employers pay when they sponsor foreign skilled workers. The move is expected to support an additional 45,000 training placements, helping Britain pivot away from its reliance on overseas labour. Education Secretary Bridget Phillipson stated, “We’re taking our responsibility seriously by providing more routes into employment.” However, this training plan comes at a time when Britain’s infrastructure ambitions are at an all-time high. According to a Boston Consulting Group report cited by Bloomberg, the UK is poised to receive £900 billion ($1.2 trillion) in combined public and private infrastructure investment by the end of 2029. Labour’s promise to build 1.5 million homes is at the centre of this economic vision. Yet, construction, the sector expected to deliver much of this growth and is already battling a shortfall in skilled workers. Many left the country after Brexit, and domestic labour is ageing. Industry leaders argue that the current training pipeline may not be fast or large enough to bridge the gap in time. “You can’t train bricklayers or care workers overnight,” warned a business executive quoted by Bloomberg. “We’ll see bottlenecks, wage inflation, and project delays.” Apprenticeships typically take two to five years before workers become job-ready, while housing and infrastructure targets are already on tight timelines. The Office for Budget Responsibility (OBR) has warned that if migration is cut faster than skills can be developed, the UK could see its GDP growth fall by up to 0.5 percentage points annually. In light of this, the British Chambers of Commerce is calling for a dual-track approach: continue building domestic capability, but also keep migration pathways open for priority sectors. It has recommended updating the shortage occupation list and streamlining visa access for essential foreign workers in construction, health, and social care. Migrants and the UK economy While the political debate often casts migration as a challenge, migrants have historically been a pillar of the UK economy. According to the Office for National Statistics (ONS), 18 per cent of the UK workforce is foreign-born, but their contribution to GDP exceeds 23 per cent. Migrants are particularly vital in sectors such as construction, hospitality, logistics, and health and social care. The Institute for Fiscal Studies reports that over 40 per cent of adult social care workers in London and the South East are migrants. In the construction sector, foreign-born workers filled critical gaps for years, a dynamic that has shifted dramatically post-Brexit, resulting in persistent labour shortages. Labour’s recent moves to tighten English-language requirements and make visa extensions more difficult have raised concerns among employers. While politically popular among certain voter bases, these measures risk shrinking the available talent pool at a time when Britain is trying to scale up national development. As the UK transitions to a new labour strategy, policymakers will have to balance domestic training timelines with economic urgency. For now, it appears that migrants remain an essential if politically contentious part of the solution.

The UK government is investing £3 billion ($4.1 billion) to train 120,000 British workers in sectors like construction, engineering, and social care.&nbsp;

UK to train 120,000 local workers under new training policy: Details here

Japan’s central bank is urging caution as food inflation drives consumer prices higher, challenging policymakers’ efforts to sustain stable economic recovery. The Bank of Japan (BOJ), which has long battled deflationary pressures, is now warning of upside risks to inflation due to a global supply crunch, particularly in food commodities. &nbsp;According to Reuters, Japan’s core Consumer Price Index (CPI) rose 3.5 per cent in April 2025 from a year earlier, marking the fastest increase since January 2023.&nbsp;&nbsp;The sharp rise was mainly fuelled by a 98.6 per cent surge in rice prices, spotlighting the fragility of food supply chains.<h2>BOJ Governor calls for vigilance amid supply shocks</h2>Addressing a BOJ-hosted conference on Tuesday, Governor Kazuo Ueda said the central bank must scrutinise how food price inflation may influence underlying inflation trends.&nbsp;“We are facing another round of supply shocks in the form of food price increases,” Ueda said, as quoted by Reuters. While the bank’s baseline view expects these effects to diminish over time, Ueda noted that “underlying inflation is now closer to 2 per cent than a few years ago,” necessitating heightened vigilance.The governor reiterated that the BOJ is prepared to raise interest rates further if upcoming data strengthens the case for economic recovery aligning with the bank’s forecast. In January 2025, the BOJ raised short-term interest rates to 0.5 per cent, ending its decade-long ultra-loose monetary policy regime.<h2>Japan’s inflation amid global trade tension and US tariffs</h2>Japan’s inflation story is not playing out in isolation. The recent escalation of US tariffs, particularly on Chinese imports has triggered ripple effects across the global economy. These trade frictions have disrupted supply chains, raised input costs, and contributed to a new wave of imported inflation in countries like Japan.&nbsp;As per Reuters, the BOJ has been forced to downgrade its growth forecasts due to rising trade policy uncertainties, acknowledging that the risks to economic activity and price stability are skewed to the downside for fiscal 2025 and 2026.&nbsp;Despite the setbacks, BOJ policymakers maintain a cautiously optimistic stance. The central bank continues to expect underlying inflation to gradually approach its 2 per cent target over the second half of its forecast horizon, which runs through fiscal 2027, according to BOJ statements cited by Reuters. &nbsp;However, the path ahead remains uncertain. With the yen under pressure, import costs rising, and consumer spending showing signs of fatigue, Japan’s economy may struggle to absorb further inflation without hurting domestic demand.<h2>No preconceptions, says BOJ</h2>Governor Ueda has emphasised that the BOJ will assess incoming economic data “without any preconceptions,” given the extremely high uncertainties surrounding both domestic conditions and the global outlook. He also noted the importance of striking the right balance between supporting growth and containing inflationary risks.&nbsp;“To the extent that incoming data allows us to gain more confidence in the baseline scenario—as economic activity and prices improve—we will adjust the degree of monetary easing as needed,” Ueda said, as per Reuters.&nbsp;Japan may finally be inching closer to its long-term inflation goal, but the forces driving this shift—soaring food prices and global trade turbulence are far from ideal. While the BOJ has signalled that interest rate hikes are possible, the bank is proceeding with measured caution.&nbsp;With food inflation surging, US tariffs disrupting global trade, and domestic growth faltering, Japan’s economic policymakers face a complex matrix of risks. And as Governor Ueda’s remarks suggest, the next move may depend less on traditional inflation signals and more on how the global economy unfolds in the coming months. &nbsp;

Business & Economy: The Bank of Japan core CPI rose 3.5% in April 2025, the fastest increase since January 2023, primarily due to a 986.6% surge in rice prices.

Japan’s central bank is urging caution as food inflation drives consumer prices higher, challenging policymakers’ efforts to sustain stable economic recovery. The Bank of Japan (BOJ), which has long battled deflationary pressures, is now warning of upside risks to inflation due to a global supply crunch, particularly in food commodities. According to Reuters, Japan’s core Consumer Price Index (CPI) rose 3.5 per cent in April 2025 from a year earlier, marking the fastest increase since January 2023. The sharp rise was mainly fuelled by a 98.6 per cent surge in rice prices, spotlighting the fragility of food supply chains. BOJ Governor calls for vigilance amid supply shocks Addressing a BOJ-hosted conference on Tuesday, Governor Kazuo Ueda said the central bank must scrutinise how food price inflation may influence underlying inflation trends. “We are facing another round of supply shocks in the form of food price increases,” Ueda said, as quoted by Reuters. While the bank’s baseline view expects these effects to diminish over time, Ueda noted that “underlying inflation is now closer to 2 per cent than a few years ago,” necessitating heightened vigilance. The governor reiterated that the BOJ is prepared to raise interest rates further if upcoming data strengthens the case for economic recovery aligning with the bank’s forecast. In January 2025, the BOJ raised short-term interest rates to 0.5 per cent, ending its decade-long ultra-loose monetary policy regime. Japan’s inflation amid global trade tension and US tariffs Japan’s inflation story is not playing out in isolation. The recent escalation of US tariffs, particularly on Chinese imports has triggered ripple effects across the global economy. These trade frictions have disrupted supply chains, raised input costs, and contributed to a new wave of imported inflation in countries like Japan. As per Reuters, the BOJ has been forced to downgrade its growth forecasts due to rising trade policy uncertainties, acknowledging that the risks to economic activity and price stability are skewed to the downside for fiscal 2025 and 2026. Despite the setbacks, BOJ policymakers maintain a cautiously optimistic stance. The central bank continues to expect underlying inflation to gradually approach its 2 per cent target over the second half of its forecast horizon, which runs through fiscal 2027, according to BOJ statements cited by Reuters. However, the path ahead remains uncertain. With the yen under pressure, import costs rising, and consumer spending showing signs of fatigue, Japan’s economy may struggle to absorb further inflation without hurting domestic demand. No preconceptions, says BOJ Governor Ueda has emphasised that the BOJ will assess incoming economic data “without any preconceptions,” given the extremely high uncertainties surrounding both domestic conditions and the global outlook. He also noted the importance of striking the right balance between supporting growth and containing inflationary risks. “To the extent that incoming data allows us to gain more confidence in the baseline scenario—as economic activity and prices improve—we will adjust the degree of monetary easing as needed,” Ueda said, as per Reuters. Japan may finally be inching closer to its long-term inflation goal, but the forces driving this shift—soaring food prices and global trade turbulence are far from ideal. While the BOJ has signalled that interest rate hikes are possible, the bank is proceeding with measured caution. With food inflation surging, US tariffs disrupting global trade, and domestic growth faltering, Japan’s economic policymakers face a complex matrix of risks. And as Governor Ueda’s remarks suggest, the next move may depend less on traditional inflation signals and more on how the global economy unfolds in the coming months.

Japan's central bank's governor Kazuo Ueda warns of inflation risks due to the global supply crunch, particularly in food commodities.&nbsp;

BOJ raises red flag on food inflation as Japan’s core CPI hits 3.5 per cent

British consumers are feeling the pinch at the checkout once again, as food inflation in the United Kingdom has climbed to its highest level in a year.&nbsp;The latest data from the British Retail Consortium (BRC) reveals that food inflation rose to 2.8 per cent in May, up from 2.6 per cent in April, marking the fourth consecutive monthly increase.<h2>What’s driving the increase?</h2>According to reports, the primary driver behind this inflationary uptick is the cost of fresh goods, which have seen sharper price increases compared to other food categories. British supermarkets are reportedly under mounting pressure from higher operating expenses, which are largely the result of new fiscal policies introduced by the UK government.&nbsp;According to the British Retail Consortium, the government’s revenue-raising budget has led to a substantial rise in business costs. Retailers are facing a £5 billion (approximately $6.7 billion) increase in operational expenses, which includes a hike in the minimum wage and an increase in payroll taxes.&nbsp;Helen Dickinson, Chief Executive Officer of the BRC, commented on the situation, stating, “It is no surprise that inflation is rearing its head once again,” as quoted by Bloomberg.<h2>Price war predictions in question</h2>Earlier this year, market expectations had tilted towards a potential price war among British grocers after Asda announced plans to cut prices as part of its turnaround strategy. The move sparked a reaction in the stock market, with share prices of larger rivals like Tesco Plc and J Sainsbury Plc declining, as reported by Bloomberg.&nbsp;However, recent developments suggest these concerns may have been premature. Bloomberg Intelligence analyst Charles Allen noted last week that “fears of an aggressive price war may be overdone.”<h2>Policy vs market forces</h2>The rising food inflation presents a policy dilemma for the Bank of England (BoE), especially as markets had earlier anticipated interest rate cuts to support economic growth. But with inflation proving sticky in the grocery sector, traders are now scaling back expectations of BoE rate reductions, according to Bloomberg.While a 2.8 per cent food inflation rate may seem modest compared to pandemic-era peaks, it signals resilient inflationary pressures in one of the most essential consumer sectors.&nbsp;The persistent increase in fresh food prices not only affects household budgets but also threatens to derail broader efforts to control inflation across the UK economy.With no immediate relief in sight for operating costs, British supermarkets find themselves in a balancing act, keeping prices competitive to retain consumers, while absorbing billions in added payroll and tax burdens. As the cost of living debate continues to dominate UK headlines, all eyes will be on the next fiscal measures and Bank of England policy decisions, which could either ease or exacerbate the pressure on retailers and shoppers alike. &nbsp;

Business & Economy: According to the British Retail Consortium, the government’s revenue-raising budget has led to a substantial rise in business costs.

British consumers are feeling the pinch at the checkout once again, as food inflation in the United Kingdom has climbed to its highest level in a year. The latest data from the British Retail Consortium (BRC) reveals that food inflation rose to 2.8 per cent in May, up from 2.6 per cent in April, marking the fourth consecutive monthly increase. What’s driving the increase? According to reports, the primary driver behind this inflationary uptick is the cost of fresh goods, which have seen sharper price increases compared to other food categories. British supermarkets are reportedly under mounting pressure from higher operating expenses, which are largely the result of new fiscal policies introduced by the UK government. According to the British Retail Consortium, the government’s revenue-raising budget has led to a substantial rise in business costs. Retailers are facing a £5 billion (approximately $6.7 billion) increase in operational expenses, which includes a hike in the minimum wage and an increase in payroll taxes. Helen Dickinson, Chief Executive Officer of the BRC, commented on the situation, stating, “It is no surprise that inflation is rearing its head once again,” as quoted by Bloomberg. Price war predictions in question Earlier this year, market expectations had tilted towards a potential price war among British grocers after Asda announced plans to cut prices as part of its turnaround strategy. The move sparked a reaction in the stock market, with share prices of larger rivals like Tesco Plc and J Sainsbury Plc declining, as reported by Bloomberg. However, recent developments suggest these concerns may have been premature. Bloomberg Intelligence analyst Charles Allen noted last week that “fears of an aggressive price war may be overdone.” Policy vs market forces The rising food inflation presents a policy dilemma for the Bank of England (BoE), especially as markets had earlier anticipated interest rate cuts to support economic growth. But with inflation proving sticky in the grocery sector, traders are now scaling back expectations of BoE rate reductions, according to Bloomberg. While a 2.8 per cent food inflation rate may seem modest compared to pandemic-era peaks, it signals resilient inflationary pressures in one of the most essential consumer sectors. The persistent increase in fresh food prices not only affects household budgets but also threatens to derail broader efforts to control inflation across the UK economy. With no immediate relief in sight for operating costs, British supermarkets find themselves in a balancing act, keeping prices competitive to retain consumers, while absorbing billions in added payroll and tax burdens. As the cost of living debate continues to dominate UK headlines, all eyes will be on the next fiscal measures and Bank of England policy decisions, which could either ease or exacerbate the pressure on retailers and shoppers alike.

Food inflation in the UK reached its highest level in a year, reaching 2.8% in May, marking the fourth consecutive monthly increase.

UK food inflation hits one-year high as grocers struggle with rising costs

As artificial intelligence (AI) accelerates its grip on the global economy, the business world is undergoing a seismic shift. No longer confined to tech-centric roles, AI now permeates every industry, from marketing to finance, supply chain to human resources.&nbsp; &nbsp;In this new landscape, the ability to harness AI’s power—and to do so responsibly—has become a cornerstone of professional success. Business schools across India are responding with urgency, racing to prepare students not just for the jobs of today, but for those that are evolving faster than ever. &nbsp;At campus placement drives, recruiters are already showing a clear preference for candidates fluent in AI tools and applications. “I came across a recent report that mentioned a 21% increase in job postings around AI since 2019,” says Radhika Shrivastava, executive director at the Fortune Institute of International Business (FIIB), New Delhi.&nbsp; &nbsp;“This trend is also evident during campus placements, where we increasingly see employers prioritising students who are well-versed in AI tools and applications.” In response, FIIB has proactively integrated AI-focused courses into its curriculum. These courses offer students exposure to real-time case studies from leading companies, helping them grasp the practical and strategic value of AI in business contexts.&nbsp; &nbsp;However, Shrivastava cautions against blind reliance on technology: “Studies suggest that excessive reliance on AI tools may diminish students' cognitive engagement and weaken their reasoning abilities. Therefore, it’s essential to adopt AI in ways that enhance human judgment, not replace it.” &nbsp;This tension between AI adoption and human-centric skills is a challenge many top institutions are grappling with. At MDI Gurgaon, the focus is on creating a new breed of leaders who can not only navigate but shape an AI-driven economy.&nbsp; &nbsp;“Preparing our students for an AI-driven workplace is not just about integrating technology-focused courses; it’s about cultivating an adaptive, forward-thinking mindset,” explains Professor Jyotsna Bhatnagar, Dean of graduate programmes.&nbsp; &nbsp;The school’s curriculum combines AI literacy with critical thinking, ethics, and leadership skills, blending interdisciplinary learning with hands-on projects and AI-driven research. “Future leaders must understand AI’s transformative potential as well as its societal impacts, ensuring they drive innovation with a human-centred approach,” Bhatnagar adds. &nbsp;Across India, business schools are also reckoning with the infrastructural and ethical challenges that come with rapid AI adoption. Dr. Prabhu Aggarwal, Dean of Badruka School of Management (BSM), Hyderabad, points out that the world is on the cusp of a skills revolution.&nbsp; &nbsp;“A recent report highlighted that 50% of skills globally are projected to change by 2030, with GenAI accelerating this change,” he notes. “Employers are seeking individuals adept in using AI in related jobs.” To stay ahead of this curve, BSM is embedding AI and GenAI into coursework, encouraging students to develop not just technical proficiency but also ethical and strategic thinking.&nbsp; However, Aggarwal acknowledges the hurdles. He says, “A significant challenge is the lack of digital infrastructure, data security, and technical support. Further, we need to establish robust governance and ethics frameworks to mitigate AI bias and protect student privacy. Business schools must navigate these twin challenges of evolving curricula and supporting infrastructure, ensuring students see AI as a strategic enabler rather than merely a technical tool.”&nbsp;At IIM Tiruchirappalli, the response to this changing landscape is both strategic and nuanced. Dr. Pawan Kumar Singh, the institute’s director, emphasises that preparing students for the AI era means much more than teaching them how to use the latest tools.&nbsp; &nbsp;“Our cutting-edge curriculum gives students hands-on experience in advanced AI techniques—machine learning, natural language processing, text analytics, and prompt engineering—all applied directly to real-world business challenges,” he says. Beyond technical skills, IIMT is integrating AI into marketing, HR, and strategy courses to emphasise domain-specific applications.”&nbsp;As AI continues to redefine the boundaries of the workplace, business schools are not merely adding new courses—they are reimagining the very essence of business education.&nbsp; &nbsp;The next generation of leaders will need more than technical fluency; they will need the ability to think critically, act ethically, and innovate fearlessly in a world where algorithms are as common as spreadsheets. In the race to ready students for this future, business schools are stepping up—not just to prepare them for the jobs of tomorrow, but to empower them to shape those jobs themselves.

How B-schools in India are preparing students for an AI-driven future

As artificial intelligence (AI) accelerates its grip on the global economy, the business world is undergoing a seismic shift. No longer confined to tech-centric roles, AI now permeates every industry, from marketing to finance, supply chain to human resources. In this new landscape, the ability to harness AI’s power—and to do so responsibly—has become a cornerstone of professional success. Business schools across India are responding with urgency, racing to prepare students not just for the jobs of today, but for those that are evolving faster than ever. At campus placement drives, recruiters are already showing a clear preference for candidates fluent in AI tools and applications. “I came across a recent report that mentioned a 21% increase in job postings around AI since 2019,” says Radhika Shrivastava, executive director at the Fortune Institute of International Business (FIIB), New Delhi. “This trend is also evident during campus placements, where we increasingly see employers prioritising students who are well-versed in AI tools and applications.” In response, FIIB has proactively integrated AI-focused courses into its curriculum. These courses offer students exposure to real-time case studies from leading companies, helping them grasp the practical and strategic value of AI in business contexts. However, Shrivastava cautions against blind reliance on technology: “Studies suggest that excessive reliance on AI tools may diminish students' cognitive engagement and weaken their reasoning abilities. Therefore, it’s essential to adopt AI in ways that enhance human judgment, not replace it.” This tension between AI adoption and human-centric skills is a challenge many top institutions are grappling with. At MDI Gurgaon, the focus is on creating a new breed of leaders who can not only navigate but shape an AI-driven economy. “Preparing our students for an AI-driven workplace is not just about integrating technology-focused courses; it’s about cultivating an adaptive, forward-thinking mindset,” explains Professor Jyotsna Bhatnagar, Dean of graduate programmes. The school’s curriculum combines AI literacy with critical thinking, ethics, and leadership skills, blending interdisciplinary learning with hands-on projects and AI-driven research. “Future leaders must understand AI’s transformative potential as well as its societal impacts, ensuring they drive innovation with a human-centred approach,” Bhatnagar adds. Across India, business schools are also reckoning with the infrastructural and ethical challenges that come with rapid AI adoption. Dr. Prabhu Aggarwal, Dean of Badruka School of Management (BSM), Hyderabad, points out that the world is on the cusp of a skills revolution. “A recent report highlighted that 50% of skills globally are projected to change by 2030, with GenAI accelerating this change,” he notes. “Employers are seeking individuals adept in using AI in related jobs.” To stay ahead of this curve, BSM is embedding AI and GenAI into coursework, encouraging students to develop not just technical proficiency but also ethical and strategic thinking. However, Aggarwal acknowledges the hurdles. He says, “A significant challenge is the lack of digital infrastructure, data security, and technical support. Further, we need to establish robust governance and ethics frameworks to mitigate AI bias and protect student privacy. Business schools must navigate these twin challenges of evolving curricula and supporting infrastructure, ensuring students see AI as a strategic enabler rather than merely a technical tool.” At IIM Tiruchirappalli, the response to this changing landscape is both strategic and nuanced. Dr. Pawan Kumar Singh, the institute’s director, emphasises that preparing students for the AI era means much more than teaching them how to use the latest tools. “Our cutting-edge curriculum gives students hands-on experience in advanced AI techniques—machine learning, natural language processing, text analytics, and prompt engineering—all applied directly to real-world business challenges,” he says. Beyond technical skills, IIMT is integrating AI into marketing, HR, and strategy courses to emphasise domain-specific applications.” As AI continues to redefine the boundaries of the workplace, business schools are not merely adding new courses—they are reimagining the very essence of business education. The next generation of leaders will need more than technical fluency; they will need the ability to think critically, act ethically, and innovate fearlessly in a world where algorithms are as common as spreadsheets. In the race to ready students for this future, business schools are stepping up—not just to prepare them for the jobs of tomorrow, but to empower them to shape those jobs themselves.

In this new landscape, the ability to harness AI’s power—and to do so responsibly—has become a cornerstone of professional success

As trade tensions escalate between the world’s two largest economies, China is doubling down on efforts to internationalise its currency.&nbsp;In its latest move, the People’s Bank of China (PBOC) has directed major domestic lenders to boost the use of the yuan in cross-border transactions, a clear signal that Beijing is preparing for a more volatile global financial order.&nbsp;According to Bloomberg, the central bank has raised the floor ratio for yuan-denominated trade transactions from 25 per cent to 40 per cent, under its Macro Prudential Assessment framework. While not mandatory, the guidance is significant for banks that fall short of the ratio are often penalised with lower regulatory scores, potentially impacting their future expansion.&nbsp;The PBOC has not issued an official comment on the development.<h2>Yuan push amid tariff tremors</h2>This move comes just weeks after US President Donald Trump hiked tariffs on Chinese goods to as high as 145 per cent, reigniting trade tensions that have already rattled global markets. China retaliated with its own tariff increases, though both sides agreed to a 90-day truce earlier this month, as per Reuters.But the yuan directive suggests that China isn’t waiting idly.&nbsp;As reported by Bloomberg, the sharp increase in yuan transaction requirements reflects Beijing’s determination to reduce reliance on the US dollar and bolster the yuan’s role in global commerce. The move is widely seen as part of China’s long-term de-dollarisation strategy.<h2>Global trade shifting away from the dollar</h2>The timing is no coincidence. Across Asia, nations are beginning to explore alternatives to dollar-based trade, especially amid rising geopolitical tensions. According to Bloomberg Intelligence, a broader shift to bypass the dollar in favour of local currencies is gaining momentum — with China, India, and ASEAN countries leading the charge.&nbsp;China has already made notable progress. The country’s goods imports and exports totalled 43.8 trillion yuan (6.1 trillion US dollars) in 2024, with 30 per cent of those transactions now settled in yuan, according to central bank Governor Pan Gongsheng, speaking in January.&nbsp;To further boost cross-border yuan use, Chinese banks have been instructed to offer discounted service fees to exporters and importers, while also enhancing foreign exchange hedging services, especially in cities like Shanghai. These initiatives are part of a broader effort to streamline cross-border settlements and increase the attractiveness of the yuan.<h2>A currency strategy with geopolitical weight</h2>While the yuan’s international share still lags behind the dollar and the euro, China’s latest directive is reportedly expected to boost demand for its currency, particularly among trade partners wary of dollar volatility.&nbsp;The onshore yuan has risen 1.57 per cent this year, now trading at around 7.187 per US dollar, Bloomberg reports. Analysts say a stronger and more widely accepted yuan could help insulate China from the financial impact of future US sanctions or tariffs.&nbsp;This strategic currency push could also offer China more leverage in ongoing trade negotiations, signalling to the US that it has tools beyond tariffs to shape the future of global trade.&nbsp;Beijing’s move underscores a deeper economic ambition: reshaping the global trade system to favour a multipolar currency environment where the yuan plays a central role. It also signals growing unease with Washington’s use of financial dominance as a geopolitical tool.&nbsp;As per Bloomberg, Chinese regulators are expected to continue rolling out incentives and regulatory tweaks to accelerate this transition, especially as Trump’s economic nationalism fuels uncertainty in global markets.&nbsp;Whether the world is ready to shift away from the dollar remains uncertain. But what is clear: China is not waiting for an invitation.

Business & Economy: The central bank guidance is significant for banks that fall short of the ratio are often penalised with lower regulatory scores, potentially impacting their future expansion.

As trade tensions escalate between the world’s two largest economies, China is doubling down on efforts to internationalise its currency. In its latest move, the People’s Bank of China (PBOC) has directed major domestic lenders to boost the use of the yuan in cross-border transactions, a clear signal that Beijing is preparing for a more volatile global financial order. According to Bloomberg, the central bank has raised the floor ratio for yuan-denominated trade transactions from 25 per cent to 40 per cent, under its Macro Prudential Assessment framework. While not mandatory, the guidance is significant for banks that fall short of the ratio are often penalised with lower regulatory scores, potentially impacting their future expansion. The PBOC has not issued an official comment on the development. Yuan push amid tariff tremors This move comes just weeks after US President Donald Trump hiked tariffs on Chinese goods to as high as 145 per cent, reigniting trade tensions that have already rattled global markets. China retaliated with its own tariff increases, though both sides agreed to a 90-day truce earlier this month, as per Reuters. But the yuan directive suggests that China isn’t waiting idly. As reported by Bloomberg, the sharp increase in yuan transaction requirements reflects Beijing’s determination to reduce reliance on the US dollar and bolster the yuan’s role in global commerce. The move is widely seen as part of China’s long-term de-dollarisation strategy. Global trade shifting away from the dollar The timing is no coincidence. Across Asia, nations are beginning to explore alternatives to dollar-based trade, especially amid rising geopolitical tensions. According to Bloomberg Intelligence, a broader shift to bypass the dollar in favour of local currencies is gaining momentum — with China, India, and ASEAN countries leading the charge. China has already made notable progress. The country’s goods imports and exports totalled 43.8 trillion yuan (6.1 trillion US dollars) in 2024, with 30 per cent of those transactions now settled in yuan, according to central bank Governor Pan Gongsheng, speaking in January. To further boost cross-border yuan use, Chinese banks have been instructed to offer discounted service fees to exporters and importers, while also enhancing foreign exchange hedging services, especially in cities like Shanghai. These initiatives are part of a broader effort to streamline cross-border settlements and increase the attractiveness of the yuan. A currency strategy with geopolitical weight While the yuan’s international share still lags behind the dollar and the euro, China’s latest directive is reportedly expected to boost demand for its currency, particularly among trade partners wary of dollar volatility. The onshore yuan has risen 1.57 per cent this year, now trading at around 7.187 per US dollar, Bloomberg reports. Analysts say a stronger and more widely accepted yuan could help insulate China from the financial impact of future US sanctions or tariffs. This strategic currency push could also offer China more leverage in ongoing trade negotiations, signalling to the US that it has tools beyond tariffs to shape the future of global trade. Beijing’s move underscores a deeper economic ambition: reshaping the global trade system to favour a multipolar currency environment where the yuan plays a central role. It also signals growing unease with Washington’s use of financial dominance as a geopolitical tool. As per Bloomberg, Chinese regulators are expected to continue rolling out incentives and regulatory tweaks to accelerate this transition, especially as Trump’s economic nationalism fuels uncertainty in global markets. Whether the world is ready to shift away from the dollar remains uncertain. But what is clear: China is not waiting for an invitation.

Amid global trade uncertainities, China is doubling down on efforts to internationalise its currency as the central bank has reportedly directed major domestic lenders to boost the use of the yuan in cross-border transactions. &nbsp;

China pushes Yuan use in trade as US tariff shake global markets

OpenAI, the firm behind ChatGPT and one of the most influential Artificial Intelligence companies in the world is setting up shop in South Korea, marking another chapter in its dramatic global expansion.&nbsp;But this rapid growth also comes with mounting financial pressures, internal controversies, and potential scrutiny from the Trump administration.<h2>The strategic expansion: Why Seoul matters? &nbsp;</h2>According to Bloomberg, OpenAI has established a legal entity in South Korea and will soon open an office in Seoul, according to a company statement published on 26 May.&nbsp;The move is aimed at strengthening partnerships with South Korean tech giants and policymakers while deepening OpenAI’s reach in one of Asia’s most digitised economies.&nbsp;“South Korea is one of the most innovative and digitally connected countries in the world,” said Jason Kwon, OpenAI’s Chief Strategy Officer, in the official press release stated by Bloomberg. “We’re excited to collaborate more deeply with Korean companies and talent.”&nbsp;The expansion will also reportedly build on OpenAI’s partnership with Kakao, the South Korean tech company, to create AI-native experiences customised for the local market.&nbsp;In February 2025, OpenAI also launched its virtual assistant “Operator” in several new regions, including India, Japan, Brazil, the UK, and South Korea. This mark as a major step toward globalising its AI ecosystem.&nbsp;Announced via&nbsp; OpenAi’s official X account,&nbsp; the rollout marks a significant step in the company’s efforts to enhance AI-powered automation for users worldwide.&nbsp;&nbsp;OpenAI noted that while Operator is not yet available in European nations, including Switzerland, Norway, Liechtenstein, and Iceland, the firm is actively working towards its release in these regions.&nbsp;“Operator is now rolling out to Pro users in Australia, Brazil, Canada, India, Japan, Singapore, South Korea, the UK, and most places ChatGPT is available. Still working on making Operator available in the EU, Switzerland, Norway, Liechtenstein &amp; Iceland—we’ll keep you updated!” said OpenAI in its post on X.&nbsp;Operator is powered by&nbsp;Open AI’s Computer-Using Agent (CUA), a specialised AI model designed to handle complex online tasks autonomously. This model integrates advanced reasoning from an undisclosed OpenAI framework, possibly the o3 model, and leverages computer vision capabilities from GPT-4o.&nbsp;&nbsp;The AI agent has been further refined through reinforcement learning to improve its efficiency and adaptability.&nbsp;One of Operator’s key features is its ability to interact seamlessly with graphical user interfaces (GUIs), including buttons, menus, and text fields. It operates within a dedicated browser, allowing it to execute tasks independently while the user focuses on other activities.&nbsp;&nbsp;Additionally, it accepts both text and image inputs, enabling more versatile task management.Unlike traditional AI assistants,Operator &nbsp;analyses raw pixel data from the screen and interacts using a virtual keyboard and mouse within a controlled sandbox environment.&nbsp;&nbsp;This functionality enables it to perform multi-step processes, resolve errors, and adapt to unexpected challenges, enhancing productivity for users in professional and personal settings.<h2>The meteoric rise of OpenAI&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h2>Founded in 2015 by tech heavyweights including Sam Altman and Elon Musk, OpenAI began as a non-profit research lab with the ambitious mission of ensuring artificial general intelligence benefits all of humanity. But according to Bloomberg, Musk parted ways in 2018 over disagreements about the company’s direction and potential conflicts with Tesla’s AI development.&nbsp;In 2019, OpenAI shifted gears, forming a capped-profit arm to attract commercial investment, a controversial but pivotal move. Microsoft reportedly swooped in with major funding, and by late 2022, the launch of ChatGPT catapulted the company into global fame. It chatbot gained 100 million users in just two months, becoming the fastest-growing consumer app in history at the time. The COVID-19 pandemic accelerated digital transformation globally, with AI tools like ChatGPT becoming essential in fields ranging from education to healthcare and creative industries. Businesses turned to generative AI for automation, productivity, and customer support amid widespread remote working conditions.&nbsp;OpenAI’s financial growth has been astonishing. According to internal forecasts cited by Bloomberg, the company expects to generate $3.7 billion in revenue in 2024, growing to $12.7 billion in 2025, &nbsp;a rise of more than 240 per cent.&nbsp;Then came the boardroom meltdown.&nbsp;As per The Associated Press, in November 2023, OpenAI’s board fired CEO Sam Altman, citing concerns over transparency. The shock move triggered an internal rebellion: more than 700 of OpenAI’s 770 employees signed a letter threatening to quit unless Altman was reinstated.&nbsp;According to Reuters, Microsoft even offered to hire the entire team. Within five days, Altman was back and the board, reshaped. However, OpenAI remains deeply unprofitable. In 2024 alone, the company reportedly posted $5 billion in losses and doesn’t anticipate becoming cash-flow positive until 2029, when revenues are projected to exceed $125 billion as per Bloomberg.&nbsp;The massive infrastructure required to run large language models like GPT-4 and its successors from computing costs to data centre maintenance , continues to weigh heavily on the company’s balance sheet.<h2>Trump’s tariff politics: Will OpenAI be next?</h2>Donald Trump’s return to the presidency has brought with it a renewed focus on “America First” industrial policy. Earlier this month, Trump threatened to slap a 25 per cent tariff on Apple’s iPhones made outside the US, pressuring Apple CEO Tim Cook to reconsider the firm’s overseas supply chains.&nbsp;If Trump applies the same scrutiny to other US tech giants, Sam Altman could face a similar dilemma. With OpenAI now operating in multiple foreign jurisdictions, including South Korea, India, and the UK, the company’s global footprint could come under political fire.&nbsp;Altman’s expansion model hinges on collaboration with foreign governments and firms, the kind of global interdependence that Trump’s administration seeks to unwind. Given OpenAI’s reliance on US-based supercomputers and infrastructure, the company may find itself forced to justify every overseas investment decision.&nbsp;As OpenAI pushes deeper into global markets, it stands at a delicate intersection of innovation and geopolitics. It is building the most powerful AI tools the world has ever seen, yet it is still governed by a hybrid for-profit and non-profit structure that could be tested under regulatory and political scrutiny.

Business & Economy: However, this expansion faces financial pressures, internal issues, and possible scrutiny from the Trump administration.

OpenAI, the firm behind ChatGPT and one of the most influential Artificial Intelligence companies in the world is setting up shop in South Korea, marking another chapter in its dramatic global expansion. But this rapid growth also comes with mounting financial pressures, internal controversies, and potential scrutiny from the Trump administration. The strategic expansion: Why Seoul matters? According to Bloomberg, OpenAI has established a legal entity in South Korea and will soon open an office in Seoul, according to a company statement published on 26 May. The move is aimed at strengthening partnerships with South Korean tech giants and policymakers while deepening OpenAI’s reach in one of Asia’s most digitised economies. “South Korea is one of the most innovative and digitally connected countries in the world,” said Jason Kwon, OpenAI’s Chief Strategy Officer, in the official press release stated by Bloomberg. “We’re excited to collaborate more deeply with Korean companies and talent.” The expansion will also reportedly build on OpenAI’s partnership with Kakao, the South Korean tech company, to create AI-native experiences customised for the local market. In February 2025, OpenAI also launched its virtual assistant “Operator” in several new regions, including India, Japan, Brazil, the UK, and South Korea. This mark as a major step toward globalising its AI ecosystem. Announced via OpenAi’s official X account, the rollout marks a significant step in the company’s efforts to enhance AI-powered automation for users worldwide. OpenAI noted that while Operator is not yet available in European nations, including Switzerland, Norway, Liechtenstein, and Iceland, the firm is actively working towards its release in these regions. “Operator is now rolling out to Pro users in Australia, Brazil, Canada, India, Japan, Singapore, South Korea, the UK, and most places ChatGPT is available. Still working on making Operator available in the EU, Switzerland, Norway, Liechtenstein & Iceland—we’ll keep you updated!” said OpenAI in its post on X. Operator is powered by Open AI’s Computer-Using Agent (CUA), a specialised AI model designed to handle complex online tasks autonomously. This model integrates advanced reasoning from an undisclosed OpenAI framework, possibly the o3 model, and leverages computer vision capabilities from GPT-4o. The AI agent has been further refined through reinforcement learning to improve its efficiency and adaptability. One of Operator’s key features is its ability to interact seamlessly with graphical user interfaces (GUIs), including buttons, menus, and text fields. It operates within a dedicated browser, allowing it to execute tasks independently while the user focuses on other activities. Additionally, it accepts both text and image inputs, enabling more versatile task management. Unlike traditional AI assistants,Operator analyses raw pixel data from the screen and interacts using a virtual keyboard and mouse within a controlled sandbox environment. This functionality enables it to perform multi-step processes, resolve errors, and adapt to unexpected challenges, enhancing productivity for users in professional and personal settings. The meteoric rise of OpenAI Founded in 2015 by tech heavyweights including Sam Altman and Elon Musk, OpenAI began as a non-profit research lab with the ambitious mission of ensuring artificial general intelligence benefits all of humanity. But according to Bloomberg, Musk parted ways in 2018 over disagreements about the company’s direction and potential conflicts with Tesla’s AI development. In 2019, OpenAI shifted gears, forming a capped-profit arm to attract commercial investment, a controversial but pivotal move. Microsoft reportedly swooped in with major funding, and by late 2022, the launch of ChatGPT catapulted the company into global fame. It chatbot gained 100 million users in just two months, becoming the fastest-growing consumer app in history at the time. The COVID-19 pandemic accelerated digital transformation globally, with AI tools like ChatGPT becoming essential in fields ranging from education to healthcare and creative industries. Businesses turned to generative AI for automation, productivity, and customer support amid widespread remote working conditions. OpenAI’s financial growth has been astonishing. According to internal forecasts cited by Bloomberg, the company expects to generate $3.7 billion in revenue in 2024, growing to $12.7 billion in 2025, a rise of more than 240 per cent. Then came the boardroom meltdown. As per The Associated Press, in November 2023, OpenAI’s board fired CEO Sam Altman, citing concerns over transparency. The shock move triggered an internal rebellion: more than 700 of OpenAI’s 770 employees signed a letter threatening to quit unless Altman was reinstated. According to Reuters, Microsoft even offered to hire the entire team. Within five days, Altman was back and the board, reshaped. However, OpenAI remains deeply unprofitable. In 2024 alone, the company reportedly posted $5 billion in losses and doesn’t anticipate becoming cash-flow positive until 2029, when revenues are projected to exceed $125 billion as per Bloomberg. The massive infrastructure required to run large language models like GPT-4 and its successors from computing costs to data centre maintenance , continues to weigh heavily on the company’s balance sheet. Trump’s tariff politics: Will OpenAI be next? Donald Trump’s return to the presidency has brought with it a renewed focus on “America First” industrial policy. Earlier this month, Trump threatened to slap a 25 per cent tariff on Apple’s iPhones made outside the US, pressuring Apple CEO Tim Cook to reconsider the firm’s overseas supply chains. If Trump applies the same scrutiny to other US tech giants, Sam Altman could face a similar dilemma. With OpenAI now operating in multiple foreign jurisdictions, including South Korea, India, and the UK, the company’s global footprint could come under political fire. Altman’s expansion model hinges on collaboration with foreign governments and firms, the kind of global interdependence that Trump’s administration seeks to unwind. Given OpenAI’s reliance on US-based supercomputers and infrastructure, the company may find itself forced to justify every overseas investment decision. As OpenAI pushes deeper into global markets, it stands at a delicate intersection of innovation and geopolitics. It is building the most powerful AI tools the world has ever seen, yet it is still governed by a hybrid for-profit and non-profit structure that could be tested under regulatory and political scrutiny.

OpenAI, creator of ChatGPT, is expanding into South Korea amid significant global growth.&nbsp;

OpenAI expands to South Korea, here’s how it became an AI giant

China is reportedly preparing a new high-tech industrial policy to follow up on its ambitious “Made in China 2025” strategy.&nbsp;This signals the Xi Jinping government's intention to maintain a strong manufacturing base even as the United States ramps up tariffs and calls for economic rebalancing.<h2>A modernised version of ‘Made in China’</h2>According to a report by Bloomberg, Beijing is working on a successor to its 2015 “Made in China 2025” industrial plan. While the original initiative sparked a backlash from Western nations, the updated version is expected to prioritise strategic sectors like semiconductors and chip-making equipment, while potentially avoiding the same label to reduce global scrutiny. Sources familiar with the matter told Bloomberg that the new strategy could be unveiled either before or after China announces its 15th Five-Year Plan in March 2026. The manufacturing focus will aim to stabilise the sector’s contribution to GDP and secure China’s position as a global tech powerhouse.<h2>US-China tariff tension</h2>This development comes at a time of rising trade tensions, with President Donald Trump’s administration pursuing what it calls “strategic decoupling” from China. In April, the US imposed fresh tariffs on Chinese electric vehicles, solar panels, and semiconductors, briefly raising some rates as high as 145 per cent.A subsequent agreement in Geneva reduced the average tariff to around 40 per cent, but the pressure on China remains intense.&nbsp;The US says it wants China to transition from an export-led growth model to one driven by domestic consumption.However, Chinese policymakers have resisted external calls to reduce industrial subsidies and market intervention, insisting that manufacturing remains key to national security and job creation.&nbsp;While the US argues that China needs to raise household consumption levels, Beijing is treading carefully. According to Bloomberg report, officials involved in drafting the upcoming Five-Year Plan are hesitant to include a numerical consumption target. The concern: China lacks the policy tools to boost spending significantly and sustainably.&nbsp;As it stands, household consumption accounts for only about 40 per cent of China’s GDP—well below the 50 to 70 per cent typical of more developed economies. By contrast, investment (largely in infrastructure and manufacturing) still comprises another 40 per cent, reflecting China’s unique growth model.<h2>Manufacturing remains the backbone&nbsp;of China</h2> During a visit to a ball-bearing factory in Henan on 19 May, President Xi Jinping reaffirmed China’s commitment to strengthening its manufacturing base. “We must keep strengthening the manufacturing sector, adhere to the principles of self-reliance and self-improvement, and master key core technologies,” Xi said, as quoted by Xinhua. This view has underpinned a decade-long push to achieve dominance in critical industries. The “Made in China 2025” plan targeted ten key sectors—from robotics and electric vehicles to aerospace and biomedicine. Bloomberg Intelligence research shows that China has already attained global leadership in five of those sectors and is catching up fast in seven others.<h2>What’s Xi’s Five-Year Plan?</h2>According to the South China Morning Post, the upcoming Five-Year Plan will focus on developing “new productive forces,” including electric vehicles, artificial intelligence, and new energy materials. Policymakers are also aiming to address bottlenecks in China’s supply chains and reduce reliance on foreign technologies.&nbsp;A report published by a newspaper overseen by the National Development and Reform Commission (NDRC) in March noted that promoting consumption and achieving breakthroughs in core technologies will be central to the plan. Research agencies have been instructed to prioritise semiconductor innovation and energy independence.<h2>Global implications</h2>China’s evolving industrial policy is likely to deepen the global divide over trade. The Biden administration had previously maintained a wait-and-watch approach, but Trump’s return has reignited tariff threats and supply chain shocks—prompting multinational firms to reassess manufacturing hubs.&nbsp;“Private investments… whatever interest rate cuts you do, I don’t think will move significantly higher simply because private investments will be determined more by a relatively certain atmosphere,” Indranil Pan, chief economist at Yes Bank, told Reuters.&nbsp;Meanwhile, Treasury Secretary Scott Bessent noted that both countries theoretically have complementary goals: “We need more manufacturing, they need more consumption. So there is a chance to rebalance together — we’ll see if that’s possible,” he said in an interview with CNBC on 12 May.&nbsp;China’s push to revive and upgrade its manufacturing agenda underscores a widening gulf between its long-term strategy and Washington’s expectations. While the US calls for rebalancing, China appears intent on doubling down on industrial strength, even as trade tensions threaten to escalate further. &nbsp;As the world’s two largest economies dig into opposing positions, the ripple effects on global trade, technology, and geopolitical alignment are bound to be far-reaching. &nbsp;

Business & Economy: This development comes at a time of rising trade tensions, with President Donald Trump’s administration pursuing what it calls “strategic decoupling” from China. 

China is reportedly preparing a new high-tech industrial policy to follow up on its ambitious “Made in China 2025” strategy. This signals the Xi Jinping government's intention to maintain a strong manufacturing base even as the United States ramps up tariffs and calls for economic rebalancing. A modernised version of ‘Made in China’ According to a report by Bloomberg, Beijing is working on a successor to its 2015 “Made in China 2025” industrial plan. While the original initiative sparked a backlash from Western nations, the updated version is expected to prioritise strategic sectors like semiconductors and chip-making equipment, while potentially avoiding the same label to reduce global scrutiny. Sources familiar with the matter told Bloomberg that the new strategy could be unveiled either before or after China announces its 15th Five-Year Plan in March 2026. The manufacturing focus will aim to stabilise the sector’s contribution to GDP and secure China’s position as a global tech powerhouse. US-China tariff tension This development comes at a time of rising trade tensions, with President Donald Trump’s administration pursuing what it calls “strategic decoupling” from China. In April, the US imposed fresh tariffs on Chinese electric vehicles, solar panels, and semiconductors, briefly raising some rates as high as 145 per cent. A subsequent agreement in Geneva reduced the average tariff to around 40 per cent, but the pressure on China remains intense. The US says it wants China to transition from an export-led growth model to one driven by domestic consumption. However, Chinese policymakers have resisted external calls to reduce industrial subsidies and market intervention, insisting that manufacturing remains key to national security and job creation. While the US argues that China needs to raise household consumption levels, Beijing is treading carefully. According to Bloomberg report, officials involved in drafting the upcoming Five-Year Plan are hesitant to include a numerical consumption target. The concern: China lacks the policy tools to boost spending significantly and sustainably. As it stands, household consumption accounts for only about 40 per cent of China’s GDP—well below the 50 to 70 per cent typical of more developed economies. By contrast, investment (largely in infrastructure and manufacturing) still comprises another 40 per cent, reflecting China’s unique growth model. Manufacturing remains the backbone of China During a visit to a ball-bearing factory in Henan on 19 May, President Xi Jinping reaffirmed China’s commitment to strengthening its manufacturing base. “We must keep strengthening the manufacturing sector, adhere to the principles of self-reliance and self-improvement, and master key core technologies,” Xi said, as quoted by Xinhua. This view has underpinned a decade-long push to achieve dominance in critical industries. The “Made in China 2025” plan targeted ten key sectors—from robotics and electric vehicles to aerospace and biomedicine. Bloomberg Intelligence research shows that China has already attained global leadership in five of those sectors and is catching up fast in seven others. What’s Xi’s Five-Year Plan? According to the South China Morning Post, the upcoming Five-Year Plan will focus on developing “new productive forces,” including electric vehicles, artificial intelligence, and new energy materials. Policymakers are also aiming to address bottlenecks in China’s supply chains and reduce reliance on foreign technologies. A report published by a newspaper overseen by the National Development and Reform Commission (NDRC) in March noted that promoting consumption and achieving breakthroughs in core technologies will be central to the plan. Research agencies have been instructed to prioritise semiconductor innovation and energy independence. Global implications China’s evolving industrial policy is likely to deepen the global divide over trade. The Biden administration had previously maintained a wait-and-watch approach, but Trump’s return has reignited tariff threats and supply chain shocks—prompting multinational firms to reassess manufacturing hubs. “Private investments… whatever interest rate cuts you do, I don’t think will move significantly higher simply because private investments will be determined more by a relatively certain atmosphere,” Indranil Pan, chief economist at Yes Bank, told Reuters. Meanwhile, Treasury Secretary Scott Bessent noted that both countries theoretically have complementary goals: “We need more manufacturing, they need more consumption. So there is a chance to rebalance together — we’ll see if that’s possible,” he said in an interview with CNBC on 12 May. China’s push to revive and upgrade its manufacturing agenda underscores a widening gulf between its long-term strategy and Washington’s expectations. While the US calls for rebalancing, China appears intent on doubling down on industrial strength, even as trade tensions threaten to escalate further. As the world’s two largest economies dig into opposing positions, the ripple effects on global trade, technology, and geopolitical alignment are bound to be far-reaching.

Amid global trade pressure, the Xi Jinping's government is developing a new high-tech industrial policy to succeed "Made in China 2025," focusing on strategic sectors.&nbsp;

Beijing pushes for a new Made-in-China plan amid Trump tariff pressure

In a major fleet expansion move, VietJet Aviation has doubled down on its ambitions to become a long-haul player in Asia’s aviation landscape. The Vietnamese low-cost carrier signed a fresh order for 20 Airbus A330-900neo wide-body aircraft, building on a previous commitment made last year.&nbsp;The announcement was made during French President Emmanuel Macron’s state visit to Vietnam, symbolising deeper economic ties between Paris and Hanoi.<h2>What’s in the deal?</h2>The newly signed order brings VietJet’s total A330neo commitment to 40 aircraft, reinforcing its push to expand routes to Europe, Australia, and beyond. The A330-900neo, known for its improved fuel efficiency and longer range, will enable VietJet to transition from a regional operator to a global competitor.&nbsp;According to Airbus, the aircraft are expected to be delivered over the next several years and will support the airline’s plans to strengthen its international footprint. Chairwoman Nguyen Thi Phuong Thao said the move reflects VietJet’s “long-term investment in a modern, environmentally responsible fleet,” as reported by Reuters. &nbsp;At list price, each A330-900neo costs around $374 million, making the deal worth nearly $7.5 billion, though significant industry-standard discounts are expected to apply.<h2>VietJet’s global ambitions</h2>Founded in 2007, VietJet has built a reputation as Vietnam’s largest privately-owned airline, known for aggressive pricing and rapid expansion. With a current fleet of 115 Airbus jets, the airline primarily services short- to medium-haul destinations across Asia, including China, South Korea, India, and Australia. &nbsp;But with increasing competition in the budget space and demand for long-haul, affordable options rising post-pandemic, the carrier is betting big on larger aircraft. Along with its Airbus fleet, VietJet also has 200 Boeing 737 MAX aircraft on order, although deliveries have yet to commence.<h2>A cloud of legal trouble</h2>While the aircraft order reflects a bold vision, VietJet’s legal and financial troubles may dim its expansion trajectory. &nbsp;In April, the London High Court ruled that VietJet owes $181.8 million to FitzWalter Capital’s leasing arm, FW Aviation, in a long-running dispute involving four A321 aircraft. The case, stemming from unpaid lease payments during the COVID-19 pandemic, ended in a verdict unfavourable to the airline, which failed to honour rent agreements after borders closed and travel demand plummeted.&nbsp;As part of the judgment, VietJet was required to make three payments of $60.5 million. But according to Bloomberg, the airline has already missed its first installment while it appeals the ruling. Legal experts say the verdict raises serious questions about VietJet’s financial stability and could influence lessor confidence and future capital access.<h2>The timing: strategic or risky?</h2>The fleet expansion also comes at a critical moment for global aviation. Geopolitical tensions and trade wars, particularly involving the United States and the European Union, are disrupting supply chains and impacting airline costs. US President Donald Trump’s latest 50 per cent tariff threat on EU goods, now delayed to July 9, adds another layer of uncertainty for carriers relying on European aircraft manufacturers.&nbsp;On the domestic front, Vietnam is experiencing strong post-pandemic air traffic growth. According to the International Air Transport Association (IATA), Vietnam is projected to be one of the world’s fastest-growing aviation markets over the next two decades.&nbsp;But the big question remains: can VietJet navigate its legal turbulence and continue soaring, or will its expansion plans face grounding if its financial liabilities worsen? &nbsp;

Business & Economy: The announcement was made during French President Emmanuel Macron state visit to Vietnam, symbolising deeper economic ties between Paris and Hanoi.

In a major fleet expansion move, VietJet Aviation has doubled down on its ambitions to become a long-haul player in Asia’s aviation landscape. The Vietnamese low-cost carrier signed a fresh order for 20 Airbus A330-900neo wide-body aircraft, building on a previous commitment made last year. The announcement was made during French President Emmanuel Macron’s state visit to Vietnam, symbolising deeper economic ties between Paris and Hanoi. What’s in the deal? The newly signed order brings VietJet’s total A330neo commitment to 40 aircraft, reinforcing its push to expand routes to Europe, Australia, and beyond. The A330-900neo, known for its improved fuel efficiency and longer range, will enable VietJet to transition from a regional operator to a global competitor. According to Airbus, the aircraft are expected to be delivered over the next several years and will support the airline’s plans to strengthen its international footprint. Chairwoman Nguyen Thi Phuong Thao said the move reflects VietJet’s “long-term investment in a modern, environmentally responsible fleet,” as reported by Reuters. At list price, each A330-900neo costs around $374 million, making the deal worth nearly $7.5 billion, though significant industry-standard discounts are expected to apply. VietJet’s global ambitions Founded in 2007, VietJet has built a reputation as Vietnam’s largest privately-owned airline, known for aggressive pricing and rapid expansion. With a current fleet of 115 Airbus jets, the airline primarily services short- to medium-haul destinations across Asia, including China, South Korea, India, and Australia. But with increasing competition in the budget space and demand for long-haul, affordable options rising post-pandemic, the carrier is betting big on larger aircraft. Along with its Airbus fleet, VietJet also has 200 Boeing 737 MAX aircraft on order, although deliveries have yet to commence. A cloud of legal trouble While the aircraft order reflects a bold vision, VietJet’s legal and financial troubles may dim its expansion trajectory. In April, the London High Court ruled that VietJet owes $181.8 million to FitzWalter Capital’s leasing arm, FW Aviation, in a long-running dispute involving four A321 aircraft. The case, stemming from unpaid lease payments during the COVID-19 pandemic, ended in a verdict unfavourable to the airline, which failed to honour rent agreements after borders closed and travel demand plummeted. As part of the judgment, VietJet was required to make three payments of $60.5 million. But according to Bloomberg, the airline has already missed its first installment while it appeals the ruling. Legal experts say the verdict raises serious questions about VietJet’s financial stability and could influence lessor confidence and future capital access. The timing: strategic or risky? The fleet expansion also comes at a critical moment for global aviation. Geopolitical tensions and trade wars, particularly involving the United States and the European Union, are disrupting supply chains and impacting airline costs. US President Donald Trump’s latest 50 per cent tariff threat on EU goods, now delayed to July 9, adds another layer of uncertainty for carriers relying on European aircraft manufacturers. On the domestic front, Vietnam is experiencing strong post-pandemic air traffic growth. According to the International Air Transport Association (IATA), Vietnam is projected to be one of the world’s fastest-growing aviation markets over the next two decades. But the big question remains: can VietJet navigate its legal turbulence and continue soaring, or will its expansion plans face grounding if its financial liabilities worsen?

Amid legal challenges and expansion plans, the Vietnamese low-cost carrier, VietJet signed a fresh order for 20 Airbus A330-900neo wide-body aircraft.&nbsp;

VietJet doubles Airbus A330neo order amid expansion plans and legal challenges

India’s economy likely expanded 6.7 per cent year-on-year in the January–March quarter, up from 6.2 per cent in the previous quarter, according to a Reuters poll of 56 economists conducted between May 19 and 23.&nbsp;The improvement of Asia’s third-largest Gross Domestic Product (GDP) is reportedly attributed to better agricultural output and a modest pickup in rural demand, even as urban consumption remained sluggish. This acceleration comes at a time when global economic uncertainty is rising, particularly in light of escalating trade tensions triggered by US President Donald Trump’s tariff threats.<h2>What does the poll says?</h2>According to the Reuters poll, rural consumption saw signs of recovery thanks to stronger crop yields and easing inflation. “We are seeing some signs of a pickup on the rural side, by the fact that crop output is better, followed by moderation in inflation pressures,” said Gaura Sengupta, Chief Economist at IDFC First Bank, as quoted by Reuters.&nbsp;Economists at Citi also told Reuters that “resilient agricultural activity continues to bode well for rural consumption,” but flagged that urban demand is still soft, adding they “remain bearish on urban consumption” for the first half of the current fiscal year.&nbsp;While headline GDP is projected to grow 6.7 per cent, Gross Value Added (GVA), a metric that excludes taxes and subsidies is expected to show a more modest rise of 6.4 per cent, Reuters reported.&nbsp;Anubhuti Sahay, Head of India Economic Research at Standard Chartered, told Reuters that much of the GDP boost could be driven by lower subsidy payouts: “Any growth improvement was mainly driven by the positive impact of net indirect taxes as subsidy payments were significantly lower during the period.”<h2>IMF and RBI outlook on India</h2> The International Monetary Fund (IMF) has projected India’s GDP growth at 6.8 per cent for FY25, supported by a strong services sector, robust domestic demand, and demographic advantages. However, the IMF has also cautioned that geopolitical tensions and protectionist policies could pose downside risks.&nbsp;The Reserve Bank of India (RBI), which is expected to cut interest rates for a third consecutive time in June. The central bank has also reiterated that a revival in domestic demand and private investment is critical to sustaining momentum.<h2>Global uncertainty looms large</h2>As per the Reuters report, economists remain concerned about Trump’s intensifying trade war and its ripple effects. The US president has threatened steep tariffs on goods from the European Union and China, while also targeting global tech firms.&nbsp;“Private investments … whatever interest rate cuts you do, I don’t think will move significantly higher simply because private investments will be determined more by a relatively certain atmosphere,” said Indranil Pan, Chief Economist at Yes Bank, in an interview with Reuters.&nbsp;In a separate Reuters survey last month, businesses flagged the negative impact of US tariff policies on global sentiment, a trend that could stall India’s long-anticipated private investment revival.&nbsp;“The recovery is possibly more in numbers than in real improvement in activity,” noted Kunal Kundu, India Economist at Societe Generale, speaking to Reuters. “Weak investment prospects, exacerbated by struggling manufacturing, suggest a growth recovery is multiple quarters away.” The National Statistical Office (NSO) is scheduled to release the official GDP data for the March quarter on May 31. Economists will be watching closely to assess the durability of the rural rebound and the real depth of India’s growth momentum as global headwinds persist. &nbsp;

Business & Economy: The improvement of Asia third-largest Gross Domestic Product (GDP) is reportedly attributed to better agricultural output and a modest pickup in rural demand, even as urban consumption remained sluggish.

India’s economy likely expanded 6.7 per cent year-on-year in the January–March quarter, up from 6.2 per cent in the previous quarter, according to a Reuters poll of 56 economists conducted between May 19 and 23. The improvement of Asia’s third-largest Gross Domestic Product (GDP) is reportedly attributed to better agricultural output and a modest pickup in rural demand, even as urban consumption remained sluggish. This acceleration comes at a time when global economic uncertainty is rising, particularly in light of escalating trade tensions triggered by US President Donald Trump’s tariff threats. What does the poll says? According to the Reuters poll, rural consumption saw signs of recovery thanks to stronger crop yields and easing inflation. “We are seeing some signs of a pickup on the rural side, by the fact that crop output is better, followed by moderation in inflation pressures,” said Gaura Sengupta, Chief Economist at IDFC First Bank, as quoted by Reuters. Economists at Citi also told Reuters that “resilient agricultural activity continues to bode well for rural consumption,” but flagged that urban demand is still soft, adding they “remain bearish on urban consumption” for the first half of the current fiscal year. While headline GDP is projected to grow 6.7 per cent, Gross Value Added (GVA), a metric that excludes taxes and subsidies is expected to show a more modest rise of 6.4 per cent, Reuters reported. Anubhuti Sahay, Head of India Economic Research at Standard Chartered, told Reuters that much of the GDP boost could be driven by lower subsidy payouts: “Any growth improvement was mainly driven by the positive impact of net indirect taxes as subsidy payments were significantly lower during the period.” IMF and RBI outlook on India The International Monetary Fund (IMF) has projected India’s GDP growth at 6.8 per cent for FY25, supported by a strong services sector, robust domestic demand, and demographic advantages. However, the IMF has also cautioned that geopolitical tensions and protectionist policies could pose downside risks. The Reserve Bank of India (RBI), which is expected to cut interest rates for a third consecutive time in June. The central bank has also reiterated that a revival in domestic demand and private investment is critical to sustaining momentum. Global uncertainty looms large As per the Reuters report, economists remain concerned about Trump’s intensifying trade war and its ripple effects. The US president has threatened steep tariffs on goods from the European Union and China, while also targeting global tech firms. “Private investments … whatever interest rate cuts you do, I don’t think will move significantly higher simply because private investments will be determined more by a relatively certain atmosphere,” said Indranil Pan, Chief Economist at Yes Bank, in an interview with Reuters. In a separate Reuters survey last month, businesses flagged the negative impact of US tariff policies on global sentiment, a trend that could stall India’s long-anticipated private investment revival. “The recovery is possibly more in numbers than in real improvement in activity,” noted Kunal Kundu, India Economist at Societe Generale, speaking to Reuters. “Weak investment prospects, exacerbated by struggling manufacturing, suggest a growth recovery is multiple quarters away.” The National Statistical Office (NSO) is scheduled to release the official GDP data for the March quarter on May 31. Economists will be watching closely to assess the durability of the rural rebound and the real depth of India’s growth momentum as global headwinds persist.

Amid global trade tension, Reuters poll says that India's GDP likely expanded 6.7 per cent year-on-year in the January–March quarter.&nbsp;

India’s Jan–March GDP growth seen at 6.7% on rural boost

In a dramatic shift just days before a major tariff deadline, US President Donald Trump has agreed to delay his proposed 50 per cent tariff on European Union goods until July 9, offering both sides a final window to negotiate a comprehensive trade deal.&nbsp;The decision came after a phone conversation between Trump and European Commission President Ursula von der Leyen on Sunday. Trump, who had earlier accused the EU of stalling negotiations, said the bloc is now ready to “get down to serious negotiations.”&nbsp;“I agreed to the extension — July 9, 2025 — It was my privilege to do so,” Trump announced on Truth Social, shortly after the call.<h2>EU-US tariff tension</h2>The extension aligns with the end of a 90-day pause Trump had announced in April to allow room for negotiations. The EU had initially faced a 20 per cent tariff under Trump’s reciprocal trade framework, which had been temporarily reduced to 10 per cent until July 9. However, rising frustration prompted Trump to threaten an escalation to 50 per cent, set to kick in on June 1.&nbsp;Trump accused the EU of unfairly targeting American companies with lawsuits and regulations, and claimed the bloc was “slow-walking” negotiations. But following assurances from von der Leyen, he said it was his “privilege” to agree to an extension.&nbsp;Behind the scenes, Brussels has reportedly shared a new trade framework with Washington, covering both tariff and non-tariff barriers, and focusing on strategic sectors like mutual investments, supply chain security, and economic cooperation. Talks between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer were also held last week to accelerate progress.&nbsp;The stakes are high. A 50 per cent tariff could hit $321 billion worth of goods, potentially reducing US GDP by 0.6 per cent and increasing consumer prices by over 0.3 per cent, according to Bloomberg Economics.&nbsp;Trump also reiterated his long-term manufacturing goals, saying he isn’t aiming to bring back low-end production like textiles but wants the US to focus on semiconductors, military equipment, and AI technologies. He has also threatened to impose 25 per cent tariffs on smartphones made overseas by firms such as Apple and Samsung. &nbsp;Markets responded quickly to the news. US equity-index futures rose in early Asian trading, while the dollar showed signs of recovery after a dip last week. &nbsp;As the new deadline approaches, all eyes are now on Washington and Brussels to see whether the two sides can translate this pause into progress — or set the stage for a broader trade conflict.&nbsp;

Business & Economy: Trump decision came after a phone conversation between Trump and European Commission President Ursula von der Leyen on Sunday. 

In a dramatic shift just days before a major tariff deadline, US President Donald Trump has agreed to delay his proposed 50 per cent tariff on European Union goods until July 9, offering both sides a final window to negotiate a comprehensive trade deal. The decision came after a phone conversation between Trump and European Commission President Ursula von der Leyen on Sunday. Trump, who had earlier accused the EU of stalling negotiations, said the bloc is now ready to “get down to serious negotiations.” “I agreed to the extension — July 9, 2025 — It was my privilege to do so,” Trump announced on Truth Social, shortly after the call. EU-US tariff tension The extension aligns with the end of a 90-day pause Trump had announced in April to allow room for negotiations. The EU had initially faced a 20 per cent tariff under Trump’s reciprocal trade framework, which had been temporarily reduced to 10 per cent until July 9. However, rising frustration prompted Trump to threaten an escalation to 50 per cent, set to kick in on June 1. Trump accused the EU of unfairly targeting American companies with lawsuits and regulations, and claimed the bloc was “slow-walking” negotiations. But following assurances from von der Leyen, he said it was his “privilege” to agree to an extension. Behind the scenes, Brussels has reportedly shared a new trade framework with Washington, covering both tariff and non-tariff barriers, and focusing on strategic sectors like mutual investments, supply chain security, and economic cooperation. Talks between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer were also held last week to accelerate progress. The stakes are high. A 50 per cent tariff could hit $321 billion worth of goods, potentially reducing US GDP by 0.6 per cent and increasing consumer prices by over 0.3 per cent, according to Bloomberg Economics. Trump also reiterated his long-term manufacturing goals, saying he isn’t aiming to bring back low-end production like textiles but wants the US to focus on semiconductors, military equipment, and AI technologies. He has also threatened to impose 25 per cent tariffs on smartphones made overseas by firms such as Apple and Samsung. Markets responded quickly to the news. US equity-index futures rose in early Asian trading, while the dollar showed signs of recovery after a dip last week. As the new deadline approaches, all eyes are now on Washington and Brussels to see whether the two sides can translate this pause into progress — or set the stage for a broader trade conflict.

In a sudden change of heart. US President Donald Trump has agreed to delay his proposed 50 per cent tariff on European Union goods until July 9.&nbsp;

Trump takes sudden U-turn, extends 50 per cent EU tariff deadline to July 9

US President Donald Trump’s administration has sparked nationwide debate by halting Harvard University’s ability to enroll international students.&nbsp;&nbsp;While the action is framed as a national security and accountability measure, economists, educators, and lawmakers warn it could severely damage America’s economic interests and international reputation.&nbsp;&nbsp;With nearly 27 per cent of Harvard’s student body is reportedly made up of international students, the implications stretch far beyond one university, potentially impacting billions in revenue, thousands of jobs, and the country’s standing in global education.<h2>Trump vs Harvard</h2>President Trump has publicly criticised Harvard, accusing the Ivy League institution of harbouring foreign influence and refusing transparency regarding its international student population. In a Truth Social post, Trump claimed: “Almost 31 per cent of their students are from foreign lands… yet those countries, some not friendly to the United States, pay NOTHING toward their student’s education.”&nbsp;He further questioned why Harvard continues to seek government grants despite having a $53.2 billion endowment, saying: “We want those names and countries. Harvard has $52,000,000, use it, and stop asking for the Federal Government to continue granting money to you.&nbsp;The action came shortly after the Department of Homeland Security (DHS), led by Secretary Kristi Noem, barred Harvard from the Student and Exchange Visitor Program (SEVP), a move that halts its ability to sponsor student visas and threatens the legal status of nearly 6,800 foreign students. Noem accused Harvard of “fostering violence, antisemitism, and coordinating with the Chinese Communist Party.”&nbsp;Harvard has pushed back legally, suing the Trump administration, calling the decision “unlawful and unconstitutional.” A federal judge has temporarily blocked the policy, but the long-term outcome remains uncertain.<h2>How it could hurt the US economy?</h2>International students contributed more than $44 billion to the US economy in the last year, according to National Association of Foreign Student Advisers (NAFSA). NAFSA is a US-based nonprofit organisation that supports international education and exchange by providing advocacy, training, and resources to professionals in the field.&nbsp;&nbsp;As one of the most popular destinations for foreign students, Harvard alone generated hundreds of millions through tuition, housing, and local consumption.&nbsp;According to reports, each student brings an estimated $29,000 annually, supporting both the university and surrounding economies.&nbsp;According to&nbsp;NAFSA, for every three international students, one US job is created, including roles in education, housing, retail, and healthcare. In the 2023–24 academic year, foreign students supported around 378,000 jobs.&nbsp;Even small towns benefit. For instance, Mankato, Minnesota, with just 45,000 residents, saw $46 million in economic activity generated by international students, sustaining nearly 190 local jobs.&nbsp;In Cambridge, Massachusetts, home to Harvard, the absence of nearly 7,000 students could reportedly&nbsp;impact real estate markets, local restaurants, bookstores, transportation, and research collaborations.&nbsp;Other institutions fear becoming the next target. Public universities like Arizona State, UC Berkeley, and University of Illinois Urbana-Champaign attract tens of thousands of foreign students and reportedly generated $1.7 billion combined in local economic benefits.<h2>What happens next?</h2>While a federal judge has paused Trump’s order, the longer-term outcome remains uncertain. If the crackdown is upheld or spreads to other universities, the US risks losing its top-tier international talent, cutting off a $44 billion economic engine, and damaging its soft power in global education. What started as a political dispute could result in long-term economic and diplomatic costs. As critics ask whether such moves align with the “Make America Great Again” agenda, the country’s ability to retain its status as a global education leader is now under real threat.&nbsp;

Business & Economy: President Trump has publicly criticised Harvard, accusing the Ivy League institution of harbouring foreign influence and refusing transparency regarding its international student population.

US President Donald Trump’s administration has sparked nationwide debate by halting Harvard University’s ability to enroll international students. While the action is framed as a national security and accountability measure, economists, educators, and lawmakers warn it could severely damage America’s economic interests and international reputation. With nearly 27 per cent of Harvard’s student body is reportedly made up of international students, the implications stretch far beyond one university, potentially impacting billions in revenue, thousands of jobs, and the country’s standing in global education. Trump vs Harvard President Trump has publicly criticised Harvard, accusing the Ivy League institution of harbouring foreign influence and refusing transparency regarding its international student population. In a Truth Social post, Trump claimed: “Almost 31 per cent of their students are from foreign lands… yet those countries, some not friendly to the United States, pay NOTHING toward their student’s education.” He further questioned why Harvard continues to seek government grants despite having a $53.2 billion endowment, saying: “We want those names and countries. Harvard has $52,000,000, use it, and stop asking for the Federal Government to continue granting money to you. The action came shortly after the Department of Homeland Security (DHS), led by Secretary Kristi Noem, barred Harvard from the Student and Exchange Visitor Program (SEVP), a move that halts its ability to sponsor student visas and threatens the legal status of nearly 6,800 foreign students. Noem accused Harvard of “fostering violence, antisemitism, and coordinating with the Chinese Communist Party.” Harvard has pushed back legally, suing the Trump administration, calling the decision “unlawful and unconstitutional.” A federal judge has temporarily blocked the policy, but the long-term outcome remains uncertain. How it could hurt the US economy? International students contributed more than $44 billion to the US economy in the last year, according to National Association of Foreign Student Advisers (NAFSA). NAFSA is a US-based nonprofit organisation that supports international education and exchange by providing advocacy, training, and resources to professionals in the field. As one of the most popular destinations for foreign students, Harvard alone generated hundreds of millions through tuition, housing, and local consumption. According to reports, each student brings an estimated $29,000 annually, supporting both the university and surrounding economies. According to NAFSA, for every three international students, one US job is created, including roles in education, housing, retail, and healthcare. In the 2023–24 academic year, foreign students supported around 378,000 jobs. Even small towns benefit. For instance, Mankato, Minnesota, with just 45,000 residents, saw $46 million in economic activity generated by international students, sustaining nearly 190 local jobs. In Cambridge, Massachusetts, home to Harvard, the absence of nearly 7,000 students could reportedly impact real estate markets, local restaurants, bookstores, transportation, and research collaborations. Other institutions fear becoming the next target. Public universities like Arizona State, UC Berkeley, and University of Illinois Urbana-Champaign attract tens of thousands of foreign students and reportedly generated $1.7 billion combined in local economic benefits. What happens next? While a federal judge has paused Trump’s order, the longer-term outcome remains uncertain. If the crackdown is upheld or spreads to other universities, the US risks losing its top-tier international talent, cutting off a $44 billion economic engine, and damaging its soft power in global education. What started as a political dispute could result in long-term economic and diplomatic costs. As critics ask whether such moves align with the “Make America Great Again” agenda, the country’s ability to retain its status as a global education leader is now under real threat.

US President Donald Trump's administration halts Harvard's international student enrollment, risking economic and reputational harm. &nbsp;

How Trump’s crackdown on Harvard’s foreign students could hit the US economy?