Top News
Trump doesn't like the message, fires the messenger
President Donald Trump fired the commissioner of the US Bureau of Labor after her agency reported the weakest jobs figures in five years. He accused Erika McEntarfer of manipulating the numbers for "political purposes."
The bureau's report for July showed only 73,000 nonfarm jobs created, but what really caught everyone's attention were revisions for the prior two months that slashed 258,000 jobs from the data. The unemployment rate notched up. In other economic data released on Friday, US manufacturing contracted for a fifth month.
The US dollar fell and yields on US Treasury bonds plunged as investors bet the weak data will prod the US Federal Reserve to cut rates next month. Although Trump is pressuring the Fed to lower rates, he doesn't welcome numbers that suggest his tariff policies may be hurting the domestic economy.
Separately, Adriana Kugler, a Fed governor, announced her surprise resignation, giving Trump the opportunity to name a replacement more sympathetic to his policies.
Meituan, Alibaba and JD declare a truce of sorts in their price war
Under pressure from the Chinese government, instant food delivery platforms Meituan, Alibaba's Ele.me and JD.com announced they will cease their price war, at least its "disorderly" elements. Nomura Holdings estimates the three rivals in the second quarter poured about US$4 billion into subsidies for one-hour delivery services, which bite into profit margins. Shares of all three companies rose on the announcement. Chinese regulators have been trying to crack down on price wars, including in the electric car industry, to avoid economic disruption.
Trump repositions nuclear subs in response to Kremlin threats
President Donald Trump ordered two nuclear submarines to be repositioned to undisclosed "appropriate regions" in case "highly provocative" comments by former Russian President Dmitry Medvedev are more than just words. Medvedev, now deputy chairman of the Russia's Security Council, rattled sabers on Thursday by reminding Trump that Moscow possesses nuclear strike capabilities. His remarks were in response to Trump's 10-day deadline on the Kremlin to agree to a ceasefire in Ukraine or face harsher sanctions.
US accused of hacking Chinese firms
US intelligence agencies exploited zero-day vulnerabilities in Microsoft Exchange to infiltrate a major Chinese military-industrial enterprise for nearly a year, according to the Cyber Security Association of China. The hackers in one attack accessed over 50 internal devices, stole sensitive emails from 11 executives and nicked military design blueprints via covert channels and encrypted communications. A second attack targeting a military company compromised more than 300 devices, it said.
Top US officials visit Gaza food site
US special envoy Steve Witkoff and Ambassador to Israel Mike Huckabee visited a food distribution site in Gaza, one three sites operated by a contentious US-Israel group, where hundreds of Palestinians have been killed in recent weeks trying to reach scarce aid. Witkoff said the visit was to better understand the humanitarian situation in the coastal enclave, where increasing numbers of death from starvation are being reported. He declined to reveal any changes in US policy.
Top Business
Tencent, JD on Starbucks shortlist of possible buyers for China stake
US coffee-chain giant Starbucks has shortlisted about a dozen potential buyers for a stake in its China business, including Chinese tech titans Tencent and JD.com. Among other potential investors are private equity firms Boyu Capital, Carlyle, KKR, Hillhouse and Primavera Capital. The stake sale could be valued at up to US$10 billion, analysts have said, though no stake size has been made public. In the earnings report for its third quarter ended June 30, Starbucks said same-store sales in China rose 2 percent, reversing quarters of decline. But the chain has struggled to keep up with domestic rivals Luckin and Cotti in the fiercely competitive mainland market, its second-largest.
China games market posts record first-half sales
China's gaming industry, the largest in the world, posted first-half sales growth of 14 percent from a year earlier to a record 168 billion yuan (US$23.5 billion), according to figures released at the China International Digital Entertainment Industry Conference in Shanghai. Numbers of Chinese game users rose to 679 million. In overseas markets, revenue from games developed in China increased 11 percent to US$9.5 billion. The US is the major offshore market, accounting for almost a third of sales, followed by Japan and South Korea.
China's July car sales rise from year earlier but drop month-on-month
Retail sales of electric and hybrid cars in China in the first four weeks of July rose 15 percent from a year earlier to 789,000 units, but fell 15 percent from June, according to the China Passenger Car Association. New energy vehicles accounted for 54 percent of all passenger cars sold in the period.
Among electric carmakers reporting July figures, XPeng delivered a record 36,717 vehicles in July, up 229 percent from a year earlier, on demand for its new Mona 03 sedan. Xiaomi delivered more than 30,000 vehicles, a new record, on sales of its SU7 sedan. Leapmotor delivered 50,129 vehicles, up 126 percent. Bucking the trend, Li Auto said deliveries dropped 40 percent from a year earlier to 30,731 vehicles.
Drug prices to reflect research costs, risks
China's National Healthcare Security Administration formally established a system of pricing for newly marketed drugs. Agency official Wang Xiaoning said the goal is to ensure that returns for pharmaceutical companies reflect the risk and investment costs involved in developing new drugs by establishing a "price stability period." The government has been promoting development of innovative therapies as the nation's biogen industry gains global attention for its discoveries. China is one of the world's largest drug markets.
India said to suspend Russian crude purchases
India's state refiners stopped buying Russian oil in the past week after US President Donald Trump warned he would impose 25 percent additional tariffs on countries that trade with Russia, Reuters reported, citing unidentified industry officials. India is the biggest buyer of Russian crude. Trump has threatened Russian trading partners as leverage to force Moscow to accept a ceasefire in the war in Ukraine.
Economy & Markets
Good-by free trade: investors sour on US protectionism
It was a sea of red across global stock markets on Friday as investors looked at President Donald Trump's new roadmap for global trade and didn't like what they saw. Trump announced new tariff rates on dozens of countries – including a 35 percent rate on Canada, 25 percent on India and 39 percent on Switzerland – and imposed a new 40 tariff on exporters that transship goods to the US. He also imposed a new tariff on imports of copper products.
In Asia, South Korea's Kospi index fell 3.9 percent, Hong Kong's Hang Seng lost 1.1 percent and the Shanghai Composite Index slid 0.4 percent. In Europe, the Stoxx Europe 600 index retreated 1.9 percent. In New York, where investors were also rattled by data showing a weaker US economy, the S&P 500 lost 1.6 percent and the Nasdaq tanked 2.2 percent.
China's biggest property developers see sales decline widen
Sales at China's top 100 property developers continued to fall, dropping 18 percent in July from a year earlier, according to the China Index Academy. For the first seven months of the year, sales plunged 13 percent to 2.1 trillion yuan (US$287.6 billion). A few developers bucked the trend, with Jinamo, Dongfu and Xiamen ITG posting sales growth of more than 20 percent. China's property market has been struggling to recover after developer debt defaults roiled the industry.
Hong Kong's 2Q GDP beats expectations
Hong Kong's economy in the second quarter grew a faster-than-expected 3.1 percent from a year earlier, its 10th consecutive quarter of growth, on an 11.5 percent increase in exports and improved consumer demand. A government spokesman said growth in China, combined with measures to boost consumer spending and attract investment, worked in the city's favor and should provide growth going forward.
China to issue more bonds to fund trade-in subsidies
China will release another 69 billion yuan (US$9.5 billion) in bonds in October to support trade-in subsidies on consumer goods, the National Development and Reform Commission said. The fourth tranche of ultra-long-term special government bonds will complete the target 300 billion funding allocation planned for 2024. The government subsidies aim to increase consumer spending by encouraging people to trade in aging appliances, electronics and vehicles for new ones. The commission said it plans to expand sectors covered by subsidies.
China imposes VAT on interest income from new bonds
China's Ministry of Finance and State Taxation Administration announced that interest income on government and financial bonds issued on August 8 or later will be subject to value-added tax. The distinction between older tax-exempt bonds and new taxable debt interest may create a price and liquidity gap in the market.
Trump order on drug prices triggers pharma stock plunge
Shares of global pharmaceutical companies plunged after President Donald Trump signed an executive order aimed at slashing US prescription drug prices to match lower overseas prices. The order threatens new regulations on drug imports if companies don't comply. Shares of major pharma companies, including Sanofi, AstraZeneca, GSK, Merck and Novo Nordisk fell between 1 percent and 4 percent.
Deep Dive
ChinaJoy 2025: Gaming's future unfolds in Shanghai with AI, smart devices and esports
ChinaJoy, Asia's largest digital entertainment fair, officially kicked off in Shanghai on Friday, transforming into a vibrant festival for gaming fans and technology enthusiasts alike.
(Click the headline to read the full article.)
KITT from 'Knight Rider' may soon become reality
KITT in the TV series "Knight Rider" must be the dream car of many: It can listen and talk to you, give you suggestions and comfort you when needed. Now, about four decades after the series was on air, the dream may become reality with artificial intelligence.
(Click the headline to read the full article.)
AI giving 'human-oriented' touch to 'cold' financial sector
Fin+AI is expected to turn the traditionally "cold" financial industry into a more warm-hearted sector, which should, however, be alert about "AI illusions" that may put security in the shadow.
(Click the headline to read the full article.)
Corporate
Nvidia denies its China-bound chips contain 'backdoors'
Chip giant Nvidia denied that its H20 chipsets bound for China have any "backdoors" that would allow anyone to access or control. The company statement came after Chinese regulators summoned officials from the company to express concerns that the chips used in artificial intelligence might contain tracking or remote shutdown functions, violating China's data-protection laws. Nvidia shipments are to resume after Washington lifted an April ban on advanced chips.
CSPC Pharma sells rights to weight-loss drug to US company
Hebei Province-based CSPC Pharmaceutical Group sold US-based Madrigal Pharmaceuticals exclusive global rights to its preclinical SYH2086 GLP-1 weight-loss drug. Under the deal, Madrigal will make an upfront payment of US$120 million, followed by milestone payments plus sale royalties of as much as US$2 billion. The oral drug is an alternative to injected obesity and weight-control drugs Ozempic and Wegovy.
Leadman Bio to take control of tuberculosis diagnostic company
Beijing-based Leadman Biochemistry, a developer of vitro diagnosis reagents, said it signed an agreement with three institutional investors to buy a 70 percent of Simcere Sanroad Biological, a producer of tuberculosis diagnostic reagents, for a price yet to be negotiated. Under the proposal, Shenzhen-listed Leadman would agree to buy the remaining stake in the future.
Zerith secures new funding
Chinese robotics firm Zerith, founded by Tsinghua University students, raised hundreds of millions of yuan in two recent funding rounds. The fresh capital will be for research and development of embodied intelligence. The company, which already has received indications for orders valued at nearly 100 million yuan (US$13 million), has begun deliveries of its H1 robot.