Daily Buzz: 27 July 2026

Pause in Iran War Attacks Raises Hopes of Ceasefire, Oil Price Drops

Neither the US nor Iran has attacked the other in the past two nights, a pause after 13 consecutive days of tit-for-tat strikes, leading some analysts to speculate that Pakistani efforts to engineer another ceasefire and resumption of peace talks may be succeeding. An unidentified Department of Defense official told CNN that Vice President JD Vance and General Dan Caine, chairman of the Joint Chiefs of Staff, told US President Donald Trump that escalating the war could drain munitions stockpiles. The president said days earlier that he was a considering an escalation of bombing to the highest levels of the war. Oil prices rose about 5 percent on peace hopes. Global benchmark Brent crude futures slipped to about US$91.20 a barrel when trading resumed after the weekend break.

Saudi Arabia earlier said its forces struck Houthi militia in Yemen after the Iran-backed group attacked two Saudi oil tankers in the Red Sea several days earlier. The Houthis have declared a maritime embargo against Saudi Arabia, which has been shipping Gulf oil through an overland pipeline to a terminal on the Red Sea to avoid the conflict zone around the Strait of Hormuz.

Iran accused Ukraine of attacking a national-flagged commercial vessel in the Caspian Sea, which borders Iran, resulting in the death of one sailor. Ukraine said the ship was carrying military cargo. President Volodymyr Zelensky has accused Russia of passing Middle East satellite data to Iran to sharpen drone and missile strikes on US bases in the region.

Typhoon Noul Brings Heavy Rains to Southern China

Typhoon Noul, the strongest tropical storm to make landfall in China so far this year, brought winds torrential rains to Guangdong Province and Hong Kong on Sunday. More than 715,000 people were relocated in Guangdong, according to China National Radio, and hundreds of flights were cancelled and some train services halted.

Spain, France Wildfire Evacuations Expand

Evacuations in what are being called unprecedented wildfires in Spain and southwestern France climbed to about 375,000 people. Spain said fires near Madrid are coming under control, but firefighters in France were still struggling to contain a huge blaze threatening the suburbs of Bordeaux. The French fire has consumed an area four times the size of Paris. The wildfires have been caused by hot, dry conditions and strong winds. In Spain, Valencia authorities said one man died, and French officials reported the deaths of two firefighters.

Top Business

Shein Reports Quarterly Loss Ahead of Hong Kong IPO

Chinese discount online retailer reported a US$99 million loss for the first quarter, turning from a profit of US$395 million a year earlier. It cited slower sales after the US and EU removed duty-free status for small delivery packages that are part of Shein's business model. The company, which originated in China but is now based in Singapore, revealed the figures as part of its IPO process in Hong Kong. Shein hasn't yet revealed the size of its initial public offering in Hong Kong, but Reuters earlier reported the company could be seeking to raise as much as US$50 billion. Shein's sales platform spans about 160 countries.

Musk Says China Could Well Lead the AI Race

SpaceX and Tesla Chief Executive Elon Musk, in an interview with the Economist, said the only thing holding China back from leading the US in the global race to develop artificial intelligence is computing power. He also said AI will ultimately render work by humans "optional" because AI systems and robots will handle most jobs. Within five years, he told the magazine, AI intelligence systems may surpass the sum of all human intelligence. Within 10 years, he said, robots in the workplace will help usher in an era of such "amazing abundance" that money will become meaningless.

MetaX Seeking an IPO in Hong Kong

Shanghai-based MetaX, a maker of AI graphics processing units that China is counting on to rival Nvidia, has filed a confidential application for a listing in Hong Kong, the South China Morning Post reported. The Shanghai-based company has been in talks with Huatai International Financial on an initial public offering by the end of the year. MetaX debuted on Shanghai's Nasdaq-style Star Market last December, after raising 4.2 billion yuan (US$600 million). Its shares have risen 685 percent since the IPO despite the fact that the company has yet to show a profit. Proceeds from a Hong Kong share sale would fund expansion.

Samsung, SK Hynix Strikes Major Chip Deals

Samsung Electronics said it has struck a deal with US chip designer Broadcom on chipmaking through 2030 to make Broadcom's next-generation chips in an agreement that may be valued as high as US$200 billion. Under the agreement, the two companies will also collaborate on high-bandwidth memory chip development. Samsung rival SK Hynix earlier said it locked in a supply agreement with Nvidia that could have a multi-year value of US$500 billion.

Economy & Markets

China Carmakers Face Profit-Margin Squeeze

Chinese automakers face narrowing profit margins, with net earnings from the sale of a 100,000 yuan (US$14,780) car now just 1,500 yuan, the South China Morning Post reported, citing the China Association of Automobile Manufacturers. The squeeze is caused by higher raw material costs, weak domestic demand and a rollback in government purchase subsidies. "The crux is that most carmakers are unable to offer further price cuts to attract buyers," Qian Kang, the owner of a vehicle circuit-board factory in China, told the newspaper, adding that smaller players may be forced out of the market. In the first half, sales of cars on the Chinese mainland plunged 20.2 percent from a year earlier.

China's Beef Imports Under Tariff Pressure

China's beef import market is facing potential price increases as supplies from Brazil approach a tariff-triggering quota limit. China's Ministry of Commerce said imports of Brazilian beef had reached 80 percent of this year's quota as of July 21. Under current rules, once the quota is fully used, imports will face an additional 55 percent tariff. Brazil is China's largest beef supplier, accounting for about half of imports last year. Higher costs could eventually spread to restaurants and food processors, many of which rely heavily on imported frozen beef.

Russian Central Bank Predicts Flat Economic Growth

Russia's central bank cut its 2026 growth forecast to as low as zero and said it expects faster inflation as a fuel crisis triggered by Ukrainian attacks on energy facilities and shipping drive up prices. Inflation is expected as high as 7 percent this year.

China Chipmaker Starts IPO Process

Chinese analog chipmaker X Semitech begins its initial public offering at tech-focused ChiNext board today, seeking to raise about 964 million yuan (US$142.4 million) through the sale of 41.1 million shares. The company focuses on the development, design, testing and sales of chips and micro-module products, supplying clients that include China Electronics Technology and a host of aerospace and defense companies.

Corporate

Chery Chairman Declares End to Price War Involvement

China carmaker Chery said cumulative global sales hit 20 million vehicles. Group Chairman Yin Tongyue declared his company is no longer chasing volume alone and no longer participating in an industry price war. Chery sales in the first half of 2026 rose only about 1 percent, with strong export growth offsetting a weaker domestic market.

Xpeng Issues Recall Notice on X9 Models

Chinese electric vehicle maker Xpeng said it is recalling 33,473 of its X9 models manufactured between August 8, 2023, and August 11, 2025, citing safety hazards related to front air springs.

Separately, Xpeng Chief Executive He Xiaopeng, predicted one of the key industry transformations over the next decade will be the integration of vehicle and robotics technology, with cars progressively becoming "robots with four wheels." The company will reportedly raise production capacity of its Iron robots to more than 1,000 units by the end of this year.

China Online Movie-Ticker Seller Maoyan Forecasts Loss

Maoyan, which owns the largest online movie-ticketing website in China, said it expects to show a first-half loss of up to 55 million yuan (US$8 million), turning from profit of 179 million yuan a year earlier. It is flagging revenue in the first six months to plunge up to 29 percent to 1.85 billion yuan. The Hong Kong-listed company cited a 41 percent decline in Chinese mainland box-office revenue and a 34 drop in movie attendance, affected by too few releases of blockbuster films.

Huadian Power's Generation Declines

Huadian Power, one of the five largest power producers in China, said its consolidated power generation in the first half fell 10.6 percent to 108 million megawatt-hours, with an 11 percent decline in grid-connected generation. The company attributed the declines to increased competition from hydropower facilities amid strong water flows and to Irits higher coal-fired capacity. In addition, lower summer temperatures in regions where some of the group's assets are located reduced peak load demand.