Weekend Buzz: 21-22 February 2026

US Supreme Court Strikes Down Trump Tariffs

The US Supreme Court struck down President Donald Trump's so-called "reciprocal" tariffs on imports of foreign goods, saying only Congress has the constitutional authority to levy tariffs under the economic emergencies act Trump invoked when he announced the duties almost a year ago. The 6-3 decision affects unilateral global duties imposed on countries but not individual duties on specific sectors, such as steel, cars or pharmaceuticals that were levied under a different statute. Although the court was silent on the issue, the ruling could mean the US government will have to repay US importers more than US$130 billion in "illegal" duties collected. Trump promptly announced 10 percent global tariffs on top of existing tariffs, citing authority under a different statute that allows duties for 150 days without Congressional approval, leaving the US tariff policy and trade deals already struck in disarray. Two justices appointed by Trump, Neil Gorsuch and Amy Coney Barrett, voted with the majority. A furious Trump called them "fools and lapdogs," and Vice President JD Vance said the court decision was "lawlessness." US trading partners generally lauded the court's decision. Major US stock markets rose on the news, with the broad S&P 500 index gaining 0.7 percent.

Trump Mulls Limited Strikes on Iran

President Donald Trump said on Friday that he is considering limited military strikes on Iran to pressure Tehran into making a deal over its nuclear program. A day earlier he said he would make a decision in the next 10 on whether to attack the Islamic Republic, after the US moved a powerful strike force to the Middle East. Iran Foreign Minister Seyed Abbas Araghchi said on Friday that Tehran will prepare the draft of a possible nuclear deal within three days. Global oil prices, which rose more than 5 percent this week amid fears a military conflict could close the Strait of Hormuz, a vital waterway that handles oil flows to China, India, Japan and South Korea, stabilized on Friday. Benchmark Brent crude was flat at about US$71.62 a barrel in late New York trading.

Tsinghua University Unveils AI to Map Universe

Researchers at Tsinghua University in Beijing have developed the AI model Stellaris, capable of detecting faint signals from the most distant corners of the universe. The breakthrough was published in Science magazine on Friday. By integrating computational optics with AI, the model detected galaxies over 13 billion light-years away – creating the strongest recorded deep-space images. Stellaris will serve as a universal data platform, boosting processing efficiency by 100 percent. The project's initial phase cost 2 million yuan (US$275,340), providing a powerful new tool for the Chinese scientific communities to decode space telescope data.

Top Business

Zhipu, Minimax Rallies Show No Sign of Cooling

Shares in China's two hottest AI startups resumed trading in Hong Kong on Friday where they left off before the Lunar New Year break – soaring ever higher. Zhipu, which trades under the name Knowledge Atlas Tech, jumped 42.7 percent, and MiniMax added 14.5 percent. Both companies, dubbed "AI Tigers," released new large language models the week before the holiday break. Their shares have increased fourfold since their debuts in Hong Kong in January.

More established mainland technology companies weren't in rally mode when Hong Kong resumed trading after a three-day break. The Hang Seng Tech Index fell nearly 3 percent. Alibaba was down about 5 percent, Tencent lost 2 percent, Baidu fell 6.3 percent and Semiconductor Manufacturing (SMIC) retreated 3 percent. Mainland stock markets resume trading on February 24.

ByteDance Holiday Cash Splash Yields Strong Results

TikTok owner ByteDance said its holiday promotion of AI services during the Chinese Lunar New Year is showing strong preliminary results. ByteDance joined rival tech giants Alibaba, Baidu and Tencent in splashing out cash during the holiday to win new app users. It said its consumer app Doubao logged 1.9 billion AI interactions during Monday's Spring Festival TV Gala, the most widely watched annual TV show on the mainland. Doubao and ByteDance's cloud computing Volcano Engine were heavily featured during the telecast. The company handed out 100,000 prizes during the gala, including luxury cars and money packets. Baidu, Tencent and Alibaba offered digital "red envelopes" of cash, among other giveaways. Alibaba said it would spend 3 billion yuan (US$430 million) on holiday AI promotions, Tencent earmarked 1 billion yuan and Baidu allocated 500 million yuan. The nine-day holiday ends on Tuesday.

CK Hutchison Seeks Talks With Panama Over Canal Ports

Hong Kong-based conglomerate CK Hutchison Holdings has requested urgent negotiations with the Panamanian government following a court ruling that invalidated its port concessions at both ends of the Panama Canal. A company spokesperson called for a "roundtable discussion" to find a "reasonable solution," stating the firm is willing to renegotiate all contract terms. The legal dispute erupted last month when Panama's high court declared the company's current 25-year contract to operate the ports unconstitutional, citing a lack of competitive bidding. Panama subsequently tapped Danish shipping giant Maersk to take over operations at the Balboa and Cristobal ports. CK Hutchison, under pressure from the Trump administration, last year agreed to include the two ports in a US$23 billion deal with a US-backed consortium to sell all its global ports, but that deal stalled after China insisted that state-owned shipping company Cosco be included as a stakeholder.

Economy & Markets

US Economy Slows, Inflation Gauge Rises

The US economy slowed more than expected in the fourth quarter, with gross domestic product rising 1.4 percent. The Commerce Department said the record-long government shutdown in the period sliced 1 percentage point off growth. For the full year, the US economy grew 2.2 percent, down from 2.8 percent in 2024. In a separate data release, the core PCE price index, a gauge closely watched by the US Federal Reserve, rose 0.4 percent in December and 3 percent for the year, above the Federal Reserve's 2 percent inflation target. The figures cast doubt on any imminent interest rate cut.

US Private Credit Industry Under Strain

The realm of US private credit finance remains shaky amid fears over its loans to the software industry, which is under strain from rapid AI development. At the heart of the current investor concern is Blue Owl, a private lender whose shares have been dropping, including a 4.8 percent loss on Friday in New York. The company attempted to shore up confidence about its liquidity by selling sold US$1.4 billion of its loans to institutional investors at 99.7% of par value. But CNBC reported cited continuing investor fears about future redemptions.

Japan Inflation Rate Slips Below Central Bank Target

Japan's inflation rate cooled to 1.5 percent in January from 2.4 percent in December, dropping under the Bank of Japan's 2 percent target for the first time in 45 months. The lower headline rate was largely due to the abolition of a temporary gasoline tax surcharge. Energy costs fell 5.2 percent. Prices for food, excluding fresh items, climbed 6.2 percent, slowing from a 6.7 percent increase a month earlier. Rice prices that skyrocketed to a record in 2025 continued to slow, registering a 28 percent increase in January from a year earlier. A separate reading on core inflation, which exempts food and energy prices, eased to 2.6 percent from 2.9 percent in December.

Corporate

Polestar to Upgrade Electric Car Models, Not Unveil New Ones

Swedish electric carmaker Polestar, majority owned by China's Geely Holdings, said it will roll out upgraded versions of its top-selling sedan Polestar 2 and SUV 4 models over the next year instead of introducing new models as it attempts to stanch a cash bleed, Reuters reported. Polestar, which reported a 34 percent increase in 2025 car sales to 60,120 vehicles, cut its delivery forecast for 2026 to the "low double digits." The carmaker is part of Geely's plans to become a top-five global auto company by 2030, with a third of sales targeted to come from outside of China. Geely has stepped in several times to provide financial support for Polestar.

Nvidia, OpenAI in Talks on Further Investment

Chip giant Nvidia is in talks to invest up to US$30 billion in startup OpenAI, creator of ChatGPT, as a chain of cross investments in the AI industry continues, CNBC reported. That would come in addition to the US$100 million infrastructure agreement announced last September. The latest deal has not been finalized and is subject to change. AI titans in the US have said they plan to spend US$700 billion this year on technology development, including data centers.

BE Semiconductor Posts Revenue Rise

Dutch-based BE Semiconductor Industries reported a 25 percent fourth-quarter revenue jump to 166.4 million euros (US$176 million), fueled by AI computing and photonics. Quarterly orders doubled from a year earlier to 250 million euros, driven by Asian data center demand, and net income fell 28 percent on rising costs. The company is projecting first quarter growth this year of up to 15 percent, with a 15 percent increase in research and development spending.