Daily Buzz: 23 October 2025

US Slaps Sanctions on Russian Oil Giants

The Trump administration on Wednesday imposed further sanctions on Russia's two largest oil companies, Rosneft and Lukoil, aiming to cripple Moscow's ability to finance its war in Ukraine. The two companies export 3.1 million barrels of oil a day, with Rosneft responsible for nearly half of all Russian oil production. On a day when Russia killed at least seven civilians in an intense bombardment on Ukraine and conducted military exercise involving nuclear arms, US Treasury Secretary Scott Bessent cited Russia's lack of serious commitment to a peace process as justification for tougher sanctions. "Now is the time to stop the killing and for an immediate ceasefire," Bessent said, adding that the US is prepared to take further action if necessary. The sterner stance on Russia came a day after the White House announced it was scrapping a planned meeting between Trump and Russian President Vladimir Putin, calling it a waste of time.

China-EU Rare Earth Talks

China expects the EU to honor its commitment to free trade and resolving disputes through dialogue, Foreign Ministry spokesperson Guo Jiakun said on Wednesday, responding to upcoming talks on China's rare earth export controls. His remarks came after EU trade chief Maros Sefcovic said Chinese and EU officials had agreed to hold urgent talks in Brussels on rare earths, minerals critical to production in the electronics, renewable energy and defense industries. Analysts say the meeting will be closely watched as a test of bilateral resolve to manage trade frictions without escalating into a broader economic conflict.

Separately, Reuters reported that the Trump administration is considering a plan to impose curbs on a broad array of software-powered exports to China, from laptops to jet engines, in retaliation against Beijing's latest restrictions on rare earth exports.

DPRK Fires Missiles

North Korea fired what appeared to be multiple short-range ballistic missiles on Wednesday, South Korea said, a week before the Asia Pacific Economic Cooperation summit begins in South Korea. It was the first launch of ballistic missiles by Pyongyang since May and the first since Lee Jae Myung became South Korean President. Among the world leaders scheduled to attend the summit are Chinese President Xi Jinping and US President Donald Trump.

India, US Show Signs of Concessions

India is prepared to cut oil purchases from Russia in exchange for a rollback in US tariffs that currently stand at 50 percent, Indian media reported, as both countries negotiate a trade deal. India may also be prepared to increase import quotas on corn form the US.

Top Business

China Unicom Profit Growth

China Unicom, one of three major Chinese telecom carriers, reported net profit for the first nine months of the year rose 5.1 percent from a year earlier to 20 billion yuan (US$2.78 billion) on cost controls and application of artificial intelligence in its services. Revenue in the period edged up 1 percent to 293billion yuan. As of September 30, Unicom said it had 1.2 billion subscribers, 225 million them on 5G. Separately, the company said it plans to spin off its intelligent networking unit China Unicom Smart Connection Technology and list it on the ChiNext market of the Shenzhen Stock Exchange.

Innovent Bio, Takeda Pharma Deal

Suzhou-based drug maker Innovent Biologics announced a deal with Japan's Takeda Pharmaceutical to accelerate development of Innovent's late-stage cancer therapies. The deal, which includes an upfront payment of US$1.2 billion, could earn Innovent up to US$11.4 billion as drug development progresses. Takeda said it is encouraged by clinical results.

Airbus Opens 2nd Assembly Line in China

Airbus, the world's biggest commercial aircraft manufacturer, opened its second assembly line in the northern Chinese city of Tianjin, increasing production capacity for its best-selling A320neo family of single-aisle jets. The facility, which will become fully operational early next year, is expected to help Airbus double its production capacity for the A320 and will deliver aircraft to both domestic and international carriers. Airbus, based in the France, opened its first assembly line in the Tianjin in 2008, resulting in the delivery of 780 aircraft to date. The new assembly line brings to 10 the number of Airbus assembly facilities worldwide.

Is There an AI Bubble? The Debate Goes On

The hot debate about whether investment in artificial intelligence is creating a market bubble continues, CNBC reported, offering an array of recent investor comments on the issue. Lauren Taylor Wolfe, co-founder of Impactive Capital told the TV news channel, "We are absolutely in an AI bubble now. It is going to burst. I don't know when; I don't know the order of magnitude. A lot of people are going to lose money." Anneka Treon, head of ING bank's wealth management, countered, "That runway of funding is not something that I think we need to be concerned about." BlackRock CEO Larry Fink said, "Are we in an AI bubble? Of course we are. I mean, we're hyped, we're accelerating, we're putting enormous leverage into the system. That is capitalism. We're going to have some big winners and some big losers." Howard Marks, co-founder of Oaktree Capital Management, said, "Valuations high but not crazy" and have not reached the "critical mass of a mania."

CNBC said more than 1,300 AI startups now have valuations of more than US$100 million, with big players like Microsoft, Amazon and Meta spending billions on data centers, and blockbuster deals being announced many tech giants, including Nvidia and Oracle. Ben Inker, co-head of asset allocation at investment firm GMO, said he worries that some players in those deals are piling up huge debt.

Economy & Markets

Gold Rebounds From Worst Drop in a Decade

Gold prices regained traction on Wednesday, a day after the sharpest sell-off since 2013 as bargain hunters replaced profit-takers. Gold futures rose 1.4 percent in New York to US$4,121.10 an ounce, and spot gold rose 0.6 percent. That followed a 5.7 percent plunge in prices on Tuesday. Gold has surged about 56 percent this year, hitting a record US$4,381.21 on Monday, fueled by geopolitical tensions, central bank buying and US rate-cut expectations.

Japan Exports Rise, Shipments to US Fall

Japanese exports in September rose 4.2 percent from a year earlier, led by semiconductors, despite a 13 percent drop in shipments to the US, with a 24 percent decline in autos. Japan is under 15 percent US tariffs under a trade deal reached earlier this year. Exports to China, Japan's biggest trading partner, increased 5.8 percent, and were up 9.2 percent Asia-wide. Imports in September gained 3.3 percent. The loose monetary policy of new Prime Minister Sanae Takaichi is likely to keep the yen weak, which makes exports cheaper.

China to Double Wind Power

China's wind power industry is aiming to double the annual installations of new turbines in the next five years as part of the national push toward carbon neutrality, the South China Morning Post reported. China is the world leader in wind power capacity. The expansion calls for installation of 120 gigawatts of new turbines a year, according to a statement from a group of more than 1,000 wind power companies. By 2030, the plan calls for total capacity of 1,300 gigawatts, compared with about 580 gigawatts today.

Corporate

Tesla 3Q Profit Drops

US electric carmaker Tesla, which operates a mega-factory in Shanghai, reported a 37 percent drop in third-quarter net profit from a year earlier to US$1.4 billion despite a 12 percent increase in revenue to US$25 billion. Earnings missed analysts' forecasts. Tesla cited a slump in European sales, lower prices for electric cars and higher operating expenses for the profit decline. It didn't break out figures for China, where the company faces increased competition from domestic carmakers like BYD. On a conference call after the results were released, Tesla founder and Chief Executive Elon Musk said that Taiwan Semiconductor and South Korea's Samsung will both work on Tesla's AI5 in-house chip design.

Laopu Gold Share Placement

Chinese jeweler Laopu Gold is raising HK$2.72 billion (US$350 million) through a new share placement in Hong Kong, its second fundraising this year, the South China Morning Post reported. The Beijing-based company, which specializes in heritage-related, original design jewelry, plans to issue about 3.7 million new shares at HK$732.49 each. Laopu said the proceeds will go toward inventory reserves and expansion. Last May, the company raised HK$2.7 billion in new funds.

Baidu to Begin Swiss Robotaxi Tests

China's Baidu said its robotaxi arm will start test driving in Switzerland in December as part of its expansion into Europe. Baidu's Apollo Go will partner with public transit operator PostBus, with the aim of beginning fully driverless taxi services in 2017. The company earlier said it plans to deploy robotaxis in the UK and German next year, in partnership with US-based Lyft. Chinese rivals are not far behind. Beijing-based Pony.ai is working with Stellantis to begin robotaxi testing in Luxembourg soon.

Leju Robot's Pre-IPO Funding Round

Shenzhen-based Leju Robot, a humanoid robot maker, secured 1.5 billion yuan (US$211 million) in a funding round ahead of a planned initial public offering on Shanghai's STAR market. The round was led by a syndicate that includes Shenzhen Investment Holdings and Longhua Industrial Capital. The proceeds will be earmarked for research and development and a ramp-up in production.

BYD-Aeon Partnership

BYD, China's largest electric carmaker, said it is partnering with Japanese retailer Aeon to sell autos in 30 Aeon sites across Japan by year's end. Subsidies of up to 100,000 yen (US$660) will be offered on BYD models. The BYD Dolphin, an electric hatchback, is the carmaker's main model in Japan, with a sticker price of around 2.9 million yen. Aeon operates 164 shopping sites in Japan and has about 2,500 electric charging stations across 374 locations nationwide.

GEP Rebrands to Payful, Expands Scope

Global E-Payment, a cross-border financial technology platform , which has a headquarters office in Shanghai, announced at the ongoing Canton Fair that is rebranding as Payful. The name change signals a major upgrade to its global financial infrastructure, highlighted by the expansion of its global collection services into the emerging markets of Africa and Latin America. GEP currently supports cross-border payments and remittances in over 100 countries and 20 currencies.