Top News
Trump wields tariff weapon more aggressively
President Donald Trump stepped up use of tariffs as economic and political weapons. He said nations in the "anti-American" BRICS economic group, which includes China, Russia, India, Brazil and South Africa, will rethink their membership after the US slaps 10 percent import tariffs on their imports. Earlier, Trump also said he would impose a 50 percent tariff on Brazil unless it stops its 'witch-hunt" prosecution of former right-wing president and friend Jair Bolsonaro on attempted coup charges.
In a flurry of tariff threats this week, Trump also said he is imposing a 50 percent duty on imported copper, with 200 percent tariffs on imports of foreign drugs to follow.
Global markets brushed off what many investors see as US posturing. Singapore's STI index, the S&P 500 and Nasdaq in New York, and the FTSE 100 in London all notched up record closes. Bitcoin also ended at a record high, and Nvidia became the first ever company to close with a market cap above US$4 trillion.
China slams copper tariff
China on Thursday criticized the US decision to impose a 50 percent tariff on imported copper, calling it an overreach of alleged national security interests and a warning sign of rising protectionism. "We have always opposed overstretching the concept of national security," said Chinese Foreign Ministry spokesperson Mao Ning. "Tariff and trade wars have no winners, and abusing tariffs serves no one's interest."
Russia brushes off Trump's carping
Russia continued aerial assaults on Ukraine cities, a day after its biggest drone and missile attack of the three-year war. The bombardments snubbed harsh criticism from President Donald Trump about President Vladimir Putin's unwillingness to discuss a ceasefire and came as the US pledged to send more weapons to Ukraine.
Red Sea attacks on cargo ships
Two cargo ships in the Red Sea sank this week after attacks carried out by the Iranian-backed Houthis group in Yemen, according to UK naval officials. The Eternity C was carrying 25 crew when it was hit by rocket-propelled grenades, with at least three crew killed and six rescued. Naval officials said some surviving crew members may have been kidnapped. In an earlier attack, the vessel Magic Seas was struck by missiles and drones, with all 22 crew rescued. The Houthis said both ships were bound for Israel.
Top Business
Shanghai AI sector surges
Shanghai's artificial intelligence industry surpassed 118 billion yuan (US$16.2 billion) in value in the first quarter, a rise of 29 percent from a year earlier, city officials said ahead of the World Artificial Intelligence Conference that starts in the city on July 26. Profits of large AI companies jumped 65 percent in the period. Shanghai is home to nearly 300,000 AI professionals, about one-third of China's total.
China rejects EU 'overcapacity' claim
China rejected EU accusations that it is flooding the continent with the excess of its industrial "overcapacity." The claim lacks factual basis and ignores global demand trends, said Commerce Ministry spokesperson He Yadong. That is especially true in green-industry production, He said, where exports are not flooding the EU markets but rather helping the continent transition to a cleaner climate. Earlier this week, EU President Ursula von der Leyen told the European Parliament that trade with China is distorted and needs rebalancing, citing a deluge of goods from China's overcapacity. A China-EU summit, called to mark 50 years of diplomatic relations, is scheduled to be held in Beijing on July 24.
Ant, JD among applicants for HK stablecoin licenses
Ant Digital Technologies and JD.com, along with Standard Chartered and Circle Innovation, are among more than 40 leading Internet, financial and payment companies planning to apply for licenses under Hong Kong's new stablecoin regime when it takes effect on August 1, according to media reports. Hong Kong officials have said, however, that initial licenses are like to be in single digits. Stablecoins are a type of cryptocurrency pegged to fiat currencies. They can be used for cross-border payments and are less volatile than mainstream digital currencies.
English version of Chinese blockbuster
An English-dubbed version of the Chinese animation blockbuster "Ne Zha 2" will be released in the United States, Canada, Australia and New Zealand next month, with Oscar winner Michelle Yeoh as a leading voice over. The film will be co-distributed by China's CMC Pictures and US studio A24. "Ne Zha 2" is a triumph of China's film industry. It broke box office records on the mainland and grossed more than US$2.2 billion worldwide, ranking fifth in movie history.
Economy & Markets
China forecast on the economy
China, the world's second-largest economy after the US, is predicting gross domestic product this year will top 140 trillion yuan (US$19.5 trillion), driven by domestic consumption despite headwinds from geopolitical and trade tensions. The nation's leaders have set a 5 percent target for growth this year. US GDP this year is expected to be US$30 trillion.
TSMC revenue beats forecasts
TSMC, the world's biggest made-to-order chip maker, said revenue in the second quarter rose 39 percent from a year earlier to US$32 billion, beating market expectations and further bolstering expectations for a continued boom in artificial intelligence investment. TSMC, which provides chip foundry services for Silicon Valley tech giants such as Nvidia and Apple, is often seen as an industrial bellwether.
Corporate
Manus developer confirms restructuring
Chinese startup Monica, developer of the much talked-about Manus artificial intelligence agent, replied to industry rumors of layoffs by saying it has undergone a restructuring that includes relocating some key staff from China to its new headquarters in Singapore. The startup launched Manus in March, claiming it is the world's first general-purpose AI agent capable of independently planning and executing complex tasks across areas like report writing, spreadsheet creation, resume screening, stock analysis and travel planning.
AgiBot to take majority stake in Swancor
Swancor Advanced Materials said AgiBot, a leading humanoid robot maker, will take a majority stake in the company for up to 2.1 billion yuan (US$290 million). Swancor, listed on Shanghai's STAR market, produces materials for wind turbines and is a world leading manufacturer of vinyl ester, polyester and epoxy resin used in composites.
Chinese tea chain goes abroad
Chayan Yuese Tea, a Chinese milk tea chain based in the Hunan Province capital of Changsha, is taking its first steps into overseas markets by selling 40 of its products in North America via online platforms including those operated by Shopify, Amazon and Walmart. Among the offerings are specialty teas, tea-related snacks and tea sets.
Haleon buys full control of pharma venture
UK consumer healthcare group Haleon assumed full control over Tianjin Smith Kline & French Pharmaceutical, an over-the-counter remedies joint venture, by purchasing a 12 percent stake it didn't already own for 1.62 billion yuan (US$220 million). Among the company's products are nutritional supplements, pain relievers, cold medications and skincare preparations. China accounted for 40 percent of Haleon's revenue last year.
BOE eyes new business opportunities
Chinese firm BOE, the world's biggest display-panel maker, said it plans to expand "beyond screens only." It is looking at developing new tech businesses, like glass-based processing capability, large-scale integrated intelligent manufacturing capability and new material development.