Top News
Israel strikes at Hamas base in Qatar, provoking global outrage
The Israeli military struck the residential headquarters of Hamas in the Qatari capital of Doha, killing six people but none of the Hamas negotiating team participating in talks to end the war in Gaza. The strike infuriated Qatar, a key mediator in the conflict and a strategic US regional ally, and triggered global outrage. President Donald Trump was quick to distance the US from the attack, saying by the time his administration was notified of the pending strike, it was too late to stop it.
President Benjamin Netanyahu said the attack could "open the door to the end of the Gaza war." Qatar said it was an act of "state terrorism." Trump phoned Qatar Emir Sheikh Tamim bin Hamad Al-Thani to express regrets over the attack. Also denouncing the strike as a setback to Middle East peace were the UN, European leaders, Turkey and Canada.
Separately, Israel bombarded Gaza City with leaflets ordering its 1 million or so residents to evacuate immediately to a "humanitarian zone" in the south, ahead of a major ground offensive. It also ordered the demolition of homes in the West Bank hometowns of two Palestinian gunmen who attacked a Jerusalem bus stop, killing six.
Macron names Lecornu as new French prime minister
President Emmanuel Macron named political ally Sébastien Lecornu as his fifth prime minister in three years. Lecornu, 39, replaces François Bayrou, who lost a no-confidence vote in the National Assembly this week over his proposed austerity budget aimed at whittling the nation's burgeoning debt. The French parliament is fractured into three blocs, with none holding a majority.
Nepal's prime minister resigns
Nepal Prime Minister KP Sharma Oli resigned amid escalating riots over government corruption that have killed at least 21 people in the capital Katmandu. His announced departure did little to quell unrest. Protesters set fire to the parliament building and have ransacked the homes of political leaders. The protests were initially triggered by a government ban on social media platforms, which has since been lifted to no effect.
Thai court orders former premier Thaksin to a year in jail
Thailand's top court ordered former prime minister and billionaire Thaksin Shinawatra, the head of a political dynasty, to prison for a year. Thaksin, 76, was ousted in a coup in 2006 and returned to Thailand in 2023 from exile when his family took over political power again. On his return, he was convicted on charges of abuse of power and corruption during his time in office and sentenced to eight years in prison. The king reduced the sentence to one year, which Thaksin spent in a luxury hospital suite after complaining of health problems. The court on Tuesday ruled that his time in hospital didn't count as jail time.
Top Business
Chinese, European automakers vie for market at Munich auto show
BYD, China's top electric carmaker, announced at the Munich auto show that it will manufacture all autos for Europe locally within three years, Chinese luxury automaker Hongqi said it would launch 15 electric and hybrid models in Europe by 2028, and Guangzhou Automobile Group announced it will increase European electric car sales 17-fold over the next two years. French automaker Renault said it will equip its electric vehicles with cheaper lithium iron phosphate batteries to compete on price with Chinese rivals in the European market. Chancellor Friedrich Merz said Germany should take the lead in development of electric vehicles and not trail China. At this year's show, a record 116 Chinese auto-related companies attended, second only to Germany.
Is Tesla poised to challenge China's domination in robotics?
Tesla opened a social media account on Weibo, China's version of X, to promote its artificial intelligence technology, a move that analysts say may be a preliminary step toward introducing its humanoid robots in the country, the South China Morning Post reported. China is the world's largest maker of robots. The first two posts on the TeslaAI account, unveiled on Sunday, featured images and video of the company's Optimus robots in action. According to its introduction, the account will also showcase Tesla's advances in autonomous driving, driverless ride-hailing and its Cortex supercomputer. By midday on Tuesday, the site had more than 12,000 followers.
Chinese game companies comprise a third of global industry revenue
Tencent, Century Games, Netease and 29 other leading Chinese game publishers earned US$2 billion last month, accounting for 35 percent of the revenue of the world's top 100 game companies, according to Sensor Tower. Tencent's "Honor of Kings" was the highest-grossing game in China in August, followed by "Game for Peace" and "Delta Force."
Economy & Markets
China's car sales and exports rise but growth rate slows
China's production, sales and exports of vehicles rose to records in August, driven by new energy cars, but growth is moderating, according to the China Passenger Car Association. Auto production rose to 2.4 million vehicles in the month, up 11 percent from a year earlier. Sales increased 4.6 percent to 2 million, slowing from 10 percent growth in the first seven months of the year, as government efforts to rein in an industry price war began to bite. The association said carmakers are shifting toward fewer price cuts and less spending on marketing blitzes. Exports in the month rose 20 percent from a year earlier to 499,000 vehicles, including a doubling of new-energy vehicles to 204,000 units. Geely Automobile, Chery Auto, Changan Auto and Great Wall Motor all boosted market shares in August.
US job creation slows more than earlier reported, spurring rate-cut forecasts
The US economy for the year ended March 31 created 911,000 fewer jobs than previously reported, the Bureau of Statistics said. Revisions since that date suggest payroll growth down by 1.2 million jobs in the past 16 months. The figures firm speculation of an interest rate cut when the Federal Reserve meets next week, with some economists predicting a half-point reduction.
Indonesia replaces finance minister, markets drop
Indonesian President Prabowo Subianto replaced highly regarded Finance Minister Sri Mulyani Indrawati with an economist promising accelerated growth. The nation's stocks and currency fell on the news. Sri Mulyani was known for her cautious handling of the largest economy in Southeast Asia, and her departure comes amid investor concerns about the fiscal prowess of the government of Prabowo, a businessman and military officer who took office last year after elections.
Chinese economists upbeat on data
A poll of 15 leading Chinese chief economists by news service Yicai found an increase in confidence this month. The index for the month rose to 50.6 from 50.2 in August, remaining above the 50-mark threshold separating expansion from contraction. The economists predicted that the nation's consumer price index probably fell 0.2 percent in August, with a 2.9 percent decline in producer prices. Retail sales last month likely expanded 3.9 percent from 3.7 percent in July, the poll found, with fixed-asset investment up 1.5 percent.
Shanghai welcomes record number of summer tourists
Shanghai, often called the gateway to China, hosted a record 3.9 million overseas tourists during the summer holiday period, up 15 percent from a year earlier, CCTV reported. The value of goods eligible for value-added tax rebates for foreign visitors exceeded 600 million yuan (US$83.5 million). Foreign tourism will generate industry revenue of at least US$2 trillion over the next decade, investment bank Morgan Stanley predicts. Chinese airlines, including Air China, will benefit from the increasing number of international passengers set to surpass pre-COVID levels, the US investment bank said.
China's central bank renews European currency swap agreements
The People's Bank of China has renewed bilateral currency swap agreements with the European Central Bank, the Swiss National Bank and the National Bank of Hungary. The central bank's swap with the EU totals 350 billion yuan (US$50 billion), the agreement with the Swiss, 150 billion yuan; and the Hungarian, 40 billion yuan.
China expands AI standards framework
China has released 30 new national standards for artificial intelligence development and application, and is drafting 84 more to cover core technologies, applications and safety, the State Administration for Market Regulation said. The newest standards cover multimodal large models, intelligent agents and traditional industries like steel and power. Future standards will relate to performance testing for AI servers and unified interfaces for accelerators.
Corporate
Apple introduces new iPhones, AirPods and watches
Apple launched four new iPhones and Apple Watches and AirPods at its annual marketing event on Tuesday. The new iPhone 17 Air, priced at US$999, is thinner and lighter than previous models. The company's entry level iPhone 17 keeps its price at US$799 but comes with an improved display. The new AirPods Pro 3 series boasts improved audio quality and the ability to translate foreign languages in real time. They cost US$249. The company also released three new Apple Watch models.
Baidu unveils upgraded AI reasoning model
Chinese technology company Baidu released an updated version of its proprietary reasoning model, comparing its performance to advanced AI systems from DeepSeek, OpenAI and Google. Chief technology officer Wang Haifeng said the X1.1 model improves knowledge ability by 35 percent. The closed-sourced model is available to corporate clients.
Dreame Technology to build auto factory in Berlin
Chinese robotic vacuum-cleaner manufacturer Dreame Technology announced it will build an automotive factory in Germany next to Tesla's plant in Berlin, Yicai reported. The Suzhou-based company's new automotive division will partner with French banking group BNP Paribas to prepare for its entry into the global market. Dreame said last month its debut in the car market will feature a luxury electric vehicle model.
Xiaomi fires company general manager for leaking secrets
Smartphone and electric carmaker Xiaomi has fired Wang Teng, general manager of domestic marketing, for leaking confidential information, Yicai reported, citing a company internal email. Wang, who joined Xiaomi in 2016, said on his Weibo social media account that is 'very ashamed and apologizes to everyone."
Starbucks, RedNote develop community-focused coffee outlets
Starbucks China, in partnership with lifestyle platform RedNote, has restyled 1,800 of 7,800 Starbucks outlets to reflect cultural and social aspects of the communities where they are located. The US-based coffee chain recently opened an outlet in Hangzhou that celebrates the city's local silk heritage. Starbucks has been struggling to regain market share lost to domestic coffee chains like Luckin. Its foothold dropped to 14 percent last year from 34 percent in 2019.