August 6th Financial Breakfast: Expectations of a Fed rate cut rise, gold prices rise to a near two-week high, while increased OPEC+ supply drags down oil prices by nearly 2%.
2025-08-06 07:20:39
On Wednesday (August 6, Beijing time), spot gold traded around $3,380.80 an ounce. Gold prices climbed to a nearly two-week high on Tuesday, supported by growing expectations of a U.S. interest rate cut, while investors awaited President Trump's decision on Federal Reserve appointments. U.S. crude oil traded around $65.30 a barrel. Oil prices fell nearly 2% on Tuesday. Increased OPEC+ supply and concerns about weak global demand overshadowed the impact of U.S. President Trump's threat to India to buy Russian oil.
Wall Street closed lower on Tuesday as Yum Brands Inc and other companies mentioned trade tariffs in their earnings reports or outlooks, as investors weighed the impact of the tariffs. The U.S. trade deficit narrowed in June due to a sharp drop in imports of consumer goods, while a measure of U.S. services sector activity stagnated in July as businesses said new import taxes were driving up costs.
Yum! Brands, the parent company of KFC, reported second-quarter earnings that missed expectations as massive trade tariffs curbed consumer spending. The company's shares fell 5.1%. Caterpillar rose 0.1% after the company warned that U.S. tariffs would pose significant challenges in the second half of the year and could result in losses of up to $1.5 billion by 2025. The second-quarter U.S. earnings season is nearing its end, during which approximately 80% of S&P 500 companies have exceeded analysts' earnings expectations.
"If you look at earnings reports, they're trending above the low end of expectations," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "The impact of the tariffs is still being felt. We haven't seen any material impact from the tariffs on corporate profitability. But we know the threat of them is still there."
The Dow Jones Industrial Average fell 0.14% to 44,111.74 points; the S&P 500 fell 0.49% to 6,299.19 points; and the Nasdaq fell 0.65% to 20,916.55 points.
Trump said on Tuesday the U.S. might impose a "small tariff" on pharmaceutical imports before increasing it. He also said tariffs on semiconductors and chips would be announced "in the next week or so."
"Today's market action reflects that investors are just sitting on the sidelines," Sandven said, noting that the environment for stocks this year remains constructive.
The S&P 500 and Nasdaq recently hit record highs, with the S&P 500 still up 7.1% so far this year.
In other earnings news, Marriott International lowered its full-year revenue growth and profit forecasts, citing slowing travel demand and economic uncertainty. The company's shares closed up 0.2%. While the earnings season is drawing to a close, investors are looking forward to more key reports on Wednesday, including from Walt Disney and McDonald's.
Gold prices climbed to a near two-week high on Tuesday, supported by growing expectations of a U.S. interest rate cut and as investors awaited President Trump's decision on Federal Reserve appointments. Spot gold was trading at $3,380.20 an ounce, up 0.2%, after earlier hitting its highest level since July 24. U.S. gold futures settled up 0.2% at $3,434.7.
Following unexpectedly weak June jobs data released last Friday, followed by Trump's firing of the head of the Bureau of Labor Statistics, markets are now pricing in two interest rate cuts before the end of the year, starting in September.
"The market is still digesting the impact of last week's data-heavy week and the Trump administration's decision to replace the head of the Bureau of Labor Statistics," said Daniel Ghali, commodity strategist at TD Securities. "Both of these events are driving gold's strength and really reinforce our view that the dollar is losing some of its store of value function."
Meanwhile, Trump said he would soon announce an interim replacement for Fed Governor Kugler, who resigned last Friday, and his nominee for the next Fed chair.
Spot silver rose 1.2% to $37.85 an ounce, its highest level since July 30. Platinum fell 1% to $1,316.35, while palladium dropped 2.1% to $1,181.21.
Oil prices fell on Tuesday as rising OPEC+ supply and concerns about weak global demand overshadowed U.S. President Donald Trump's threat to India over purchases of Russian oil.
Brent crude futures fell 1.63% to settle at $67.64 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 1.7% to settle at $65.16. Both benchmarks settled at their lowest levels in five weeks.
OPEC+ agreed on Sunday to increase oil production by 547,000 barrels per day in September, a move that would end its recent output cuts earlier than planned.
“The market is being pressured by the significant increase in OPEC supply,” said Andrew Lipow, president of Lipow Oil Associates.
Oil prices were pressured after U.S. services sector activity unexpectedly remained largely unchanged in July, with orders little changed and employment weakening further. However, input costs saw their biggest increase in nearly three years, highlighting the continued drag on businesses from uncertainty surrounding the Trump administration’s tariff policy.
"The market will now focus on whether India agrees to significantly reduce its Russian crude oil purchases so it can find other alternative supplies," Lipow said.
Trump on Tuesday renewed his threat to impose higher tariffs on Indian goods over purchases of Russian oil. He also said lower energy prices could force Russian President Vladimir Putin to end the war in Ukraine. New Delhi called Trump's threat "unjustified" and vowed to protect its economic interests, widening the trade rift between the two countries.
The dollar rose on Tuesday but remained near Friday's lows as markets continued to consolidate after a weak jobs report reinforced expectations of a Federal Reserve interest rate cut next month. Investors were also focused on President Trump's nominations to the Federal Reserve Board and his choice for head of the Bureau of Labor Statistics.
"We're basically adjusting now after the jobs data, with the Fed in no rush to cut rates and we don't really see any signs of inflation, or maybe just a little bit of inflation," said Eugene Epstein, head of North American trading and structured products at Moneycorp. "So we're basically in a purgatory between now and next week when the consumer price index (CPI) is released. The dollar is consolidating and waiting for that data."
Wall Street economists polled by Reuters expect the core CPI to rise 0.3% month-over-month and 3.0% year-over-year in July. In addition to economic data, the market is also paying attention to personnel changes at the Federal Reserve, which may lead to a more dovish stance, in line with Trump's wishes.
Trump said on Tuesday he would soon announce a short-term successor to Fed Governor Kugler, who resigned last Friday, as well as his choice for the next chairman. Trump has ruled out Treasury Secretary Jeff Bessant as Fed Chairman Jerome Powell's term, which ends in May 2026.
Trump said Bessant wants to continue in his current role, adding that the White House is considering four candidates to replace Powell.
“You could argue that Kugler’s successor will be dovish on interest rates, which, in turn, means a weaker dollar going forward,” Moneycorp’s Epstein noted.
Trump also fired Bureau of Labor Statistics Commissioner Erika McEntarfer on Friday after data showed weaker-than-expected job growth in July and sharp downward revisions to job gains for the previous two months. He said on Sunday he would announce a new BLS director within three to four days.
Data released on Tuesday had little impact on currency markets. U.S. services sector activity was unexpectedly flat in July, with orders barely changed and employment softening further, but input costs posted their biggest increase in nearly three years.
In afternoon trading, the euro was flat at $1.1569. That pushed the dollar index, which measures the greenback against six major currencies, up 0.2% to 98.81, having earlier hit a one-week low of 98.609.
Following the weak U.S. jobs report, interest rate futures markets are now pricing in a 91% chance of a rate cut at the Federal Reserve's meeting next month, compared with a 35% probability a week ago, according to the Chicago Mercantile Exchange's (CME) FedWatch tool.
The market also expects 60 basis points of rate cuts by the end of December and 130 basis points of rate cuts by October 2026, 30 basis points more than expected before the release of U.S. jobs data last Friday.
Goldman Sachs expects the Fed to cut interest rates three times in a row, by 25 basis points each, starting in September, and could cut by 50 basis points if the next jobs report shows a further rise in unemployment.
The dollar rose 0.4% against the yen to 147.66 yen. Minutes from the Bank of Japan's June meeting showed some policymakers saw room to resume interest rate hikes once trade frictions caused by U.S. tariffs ease.
However, investors remained focused on uncertainty surrounding tariffs, with Trump imposing tariffs on imports from dozens of countries last week, heightening concerns about the health of the global economy. The Swiss franc fell slightly to 0.8077 franc per dollar, having fallen 0.5% in the previous session.
Trump threatens to take over Washington, D.C. over crime
Trump reiterated his threat to take over Washington, D.C., saying the crime problem in the city is "out of control." He added that if Washington, D.C. "doesn't take action," the United States will "have no choice but to have the federal government take over the city," and "if this continues, I will exercise my authority to federalize the city."
Ukrainian Prime Minister: The first meeting of the board of directors of the US-Ukraine Reconstruction Investment Fund is planned to be held in September
On August 5th, local time, Ukrainian Prime Minister Svyerenko posted on her official social media platform that she had spoken with U.S. Treasury Secretary Bensont, during which they discussed the launch of the U.S.-Ukraine Reconstruction Investment Fund. The fund's board of directors is scheduled to meet for its first meeting in September, with the goal of launching the first three projects within the next 18 months. She stated that both sides are working to expand the fund's mandate to include investments in defense. During the call, Svyerenko highlighted potential defense agreements proposed by Ukrainian President Zelenskyy, including the production and sale of Ukrainian drones and the possible purchase of U.S. weapons. The two sides also exchanged views on strengthening sanctions against Russia and cooperation with international financial organizations, and agreed to continue working-level dialogue.
Trump administration to formally cancel Musk's 'weekly report' plan
On August 5th, local time, sources familiar with the matter revealed that the Trump administration plans to officially cancel, as early as that day, a "weekly report" initiative initiated by Elon Musk, which required federal employees to summarize their five work achievements from the previous week. The White House and the Office of Personnel Management did not immediately respond to requests for comment. On February 22nd, Musk, then head of the "Government Efficiency Department," stated that, in accordance with US President Trump's instructions, all federal government employees would receive an email asking them to list five work items they had completed in the previous week. Employees who failed to respond to this email by 11:59 PM on February 24th would be deemed to have resigned. This move was opposed by multiple government departments and Democrats. (CCTV News)
Zelensky: Supports US ceasefire initiative and calls for sanctions against Russia
On August 5th, local time, Ukrainian President Volodymyr Zelenskyy announced in his regular evening video address that he had spoken with US President Donald Trump that day, with the most important topic being how to quickly end the Russia-Ukraine conflict. Zelenskyy stated that Ukraine fully supports the US initiative for an "immediate ceasefire," and that Ukraine has explored various options and dialogue formats to achieve a ceasefire. "Ukraine previously proposed an 'air quiet' initiative to Russia—a complete cessation of missile and drone attacks, as well as of attacks on civilian infrastructure, particularly energy systems. However, Russia has repeatedly and blatantly violated these consensus agreements," he said.
Trump says drug and chip tariffs will be announced in the 'next week or so'
US President Donald Trump said US tariffs on semiconductor and pharmaceutical imports will be announced "in the next week or so," as the administration prepares to target key economic sectors in an effort to reshape global trade. "We're going to start with a lower tariff on pharmaceuticals, but within a year, no more than a year and a half, we're going to go up to 150% and then 250% because we want pharmaceuticals to be made in our country," Trump said in an interview with CNBC on Tuesday. "We're going to be announcing something on semiconductors and chips, which is another category," the president added.
Google DeepMind launches Genie 3, a world model that redefines "generative AI"
Google DeepMind announced the release of Genie 3, its third-generation general-purpose world model. It can generate an unprecedented variety of interactive environments. Given textual prompts, Genie 3 can generate dynamic worlds, navigate in real time at 24 frames per second, and maintain consistency for minutes at 720p resolution. Compared to previous models (such as Genie 1 and 2) and video generation models (such as Veo 2 and Veo 3, which leverage a deep understanding of intuitive physics), Genie 3 is the first world model to allow real-time interaction and offers improved consistency and realism.
Russia reportedly will consider an air ceasefire but won't agree to a full ceasefire
Despite Russia's determination to continue its military campaign, the Kremlin is weighing concessions to US President Trump, potentially including an air ceasefire with Ukraine to avoid secondary sanctions. People familiar with the matter say that while expectations for a successful agreement are low, US Middle East envoy Witkov's visit to Russia this week is seen by Moscow as one of the last chances to reach a deal with Trump. One of the people familiar with the matter said a pause in airstrikes, including drone and missile strikes, could be a potential de-escalation proposal, provided Ukraine also signs on. However, Russian President Vladimir Putin will not agree to a comprehensive ceasefire in Ukraine because Russian forces are making steady advances on the battlefield and Russia's objectives have not changed.
Two former U.S. Treasury secretaries warn of risks facing the U.S. Treasury market
Two former U.S. Treasury secretaries during the global financial crisis have warned of potential risks to the $29 trillion U.S. Treasury bond market, ranging from an unsustainable fiscal path to concerns about Washington's political system. "We're on an unsustainable trajectory" when it comes to federal borrowing, former Treasury Secretary Henry Paulson told CNBC on Tuesday. "I don't know if that means we're going to hit a wall in six months, six years, or whatever." Timothy Geithner, who succeeded Paulson in early 2009, said in the same CNBC interview that the 10-year Treasury yield is "at a pretty moderate level, reflecting a certain level of fundamental confidence that the United States will govern rationally." "But it ultimately depends on whether the system can get revenues and spending back into balance, get the deficit down a little bit," and maintain the elements that give people confidence in U.S. Treasury bonds, such as the rule of law and the independence of the Federal Reserve. "Those areas are facing greater shadows now than they have been in some time."
The maximum power load of the Sichuan power grid reached 73.56 million kilowatts, setting a new record for the third time this year.
On the evening of August 5th, the official Weibo account of State Grid Sichuan Electric Power Company announced that due to the continued high temperatures and sunny weather over the past few days, the demand for cooling equipment such as air conditioners has surged. At 9:21 PM on August 4th, the Sichuan power grid's maximum load reached 73.56 million kilowatts, marking the third record high this year and a 6% increase from last year's peak load of 69.29 million kilowatts. Currently, the Sichuan power grid is operating smoothly, providing safe and reliable power supply. The Sichuan power grid currently has a total installed capacity of 150 million kilowatts, with all types of power sources, including hydropower, renewable energy, and thermal power, fully utilized, and all electricity purchased from outside the province has been fully purchased.
Progress exceeds 80%! More than 300 pieces of equipment for the second domestically-produced large cruise ship have reached completion
It was learned from China Shipbuilding Industry Corporation that today (August 5), the first main generator of the second domestically-built large cruise ship "Aida Huacheng" officially started generating electricity, providing power for all related equipment on the ship. This also marks that the construction of this cruise ship has entered the equipment commissioning and system function verification stage. The main generator is the core equipment of the cruise ship, like the "heart" of the cruise ship. It is the main power source for the ship's power distribution system and propulsion system. The formal power generation means that more than 300 related equipment have reached the completion state. As of now, the overall progress of the second domestically-built large cruise ship "Aida Huacheng" project has exceeded 80%. The next stage will focus on the interior engineering and equipment system commissioning to ensure the smooth launch in March 2026 and completion and delivery before the end of the year. (CCTV)
Focus on the day
stock market
Wall Street closed lower on Tuesday as Yum Brands Inc and other companies mentioned trade tariffs in their earnings reports or outlooks, as investors weighed the impact of the tariffs. The U.S. trade deficit narrowed in June due to a sharp drop in imports of consumer goods, while a measure of U.S. services sector activity stagnated in July as businesses said new import taxes were driving up costs.
Yum! Brands, the parent company of KFC, reported second-quarter earnings that missed expectations as massive trade tariffs curbed consumer spending. The company's shares fell 5.1%. Caterpillar rose 0.1% after the company warned that U.S. tariffs would pose significant challenges in the second half of the year and could result in losses of up to $1.5 billion by 2025. The second-quarter U.S. earnings season is nearing its end, during which approximately 80% of S&P 500 companies have exceeded analysts' earnings expectations.
"If you look at earnings reports, they're trending above the low end of expectations," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "The impact of the tariffs is still being felt. We haven't seen any material impact from the tariffs on corporate profitability. But we know the threat of them is still there."
The Dow Jones Industrial Average fell 0.14% to 44,111.74 points; the S&P 500 fell 0.49% to 6,299.19 points; and the Nasdaq fell 0.65% to 20,916.55 points.
Trump said on Tuesday the U.S. might impose a "small tariff" on pharmaceutical imports before increasing it. He also said tariffs on semiconductors and chips would be announced "in the next week or so."
"Today's market action reflects that investors are just sitting on the sidelines," Sandven said, noting that the environment for stocks this year remains constructive.
The S&P 500 and Nasdaq recently hit record highs, with the S&P 500 still up 7.1% so far this year.
In other earnings news, Marriott International lowered its full-year revenue growth and profit forecasts, citing slowing travel demand and economic uncertainty. The company's shares closed up 0.2%. While the earnings season is drawing to a close, investors are looking forward to more key reports on Wednesday, including from Walt Disney and McDonald's.
Gold Market
Gold prices climbed to a near two-week high on Tuesday, supported by growing expectations of a U.S. interest rate cut and as investors awaited President Trump's decision on Federal Reserve appointments. Spot gold was trading at $3,380.20 an ounce, up 0.2%, after earlier hitting its highest level since July 24. U.S. gold futures settled up 0.2% at $3,434.7.
Following unexpectedly weak June jobs data released last Friday, followed by Trump's firing of the head of the Bureau of Labor Statistics, markets are now pricing in two interest rate cuts before the end of the year, starting in September.
"The market is still digesting the impact of last week's data-heavy week and the Trump administration's decision to replace the head of the Bureau of Labor Statistics," said Daniel Ghali, commodity strategist at TD Securities. "Both of these events are driving gold's strength and really reinforce our view that the dollar is losing some of its store of value function."
Meanwhile, Trump said he would soon announce an interim replacement for Fed Governor Kugler, who resigned last Friday, and his nominee for the next Fed chair.
Spot silver rose 1.2% to $37.85 an ounce, its highest level since July 30. Platinum fell 1% to $1,316.35, while palladium dropped 2.1% to $1,181.21.
Oil Market
Oil prices fell on Tuesday as rising OPEC+ supply and concerns about weak global demand overshadowed U.S. President Donald Trump's threat to India over purchases of Russian oil.
Brent crude futures fell 1.63% to settle at $67.64 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 1.7% to settle at $65.16. Both benchmarks settled at their lowest levels in five weeks.
OPEC+ agreed on Sunday to increase oil production by 547,000 barrels per day in September, a move that would end its recent output cuts earlier than planned.
“The market is being pressured by the significant increase in OPEC supply,” said Andrew Lipow, president of Lipow Oil Associates.
Oil prices were pressured after U.S. services sector activity unexpectedly remained largely unchanged in July, with orders little changed and employment weakening further. However, input costs saw their biggest increase in nearly three years, highlighting the continued drag on businesses from uncertainty surrounding the Trump administration’s tariff policy.
"The market will now focus on whether India agrees to significantly reduce its Russian crude oil purchases so it can find other alternative supplies," Lipow said.
Trump on Tuesday renewed his threat to impose higher tariffs on Indian goods over purchases of Russian oil. He also said lower energy prices could force Russian President Vladimir Putin to end the war in Ukraine. New Delhi called Trump's threat "unjustified" and vowed to protect its economic interests, widening the trade rift between the two countries.
foreign exchange market
The dollar rose on Tuesday but remained near Friday's lows as markets continued to consolidate after a weak jobs report reinforced expectations of a Federal Reserve interest rate cut next month. Investors were also focused on President Trump's nominations to the Federal Reserve Board and his choice for head of the Bureau of Labor Statistics.
"We're basically adjusting now after the jobs data, with the Fed in no rush to cut rates and we don't really see any signs of inflation, or maybe just a little bit of inflation," said Eugene Epstein, head of North American trading and structured products at Moneycorp. "So we're basically in a purgatory between now and next week when the consumer price index (CPI) is released. The dollar is consolidating and waiting for that data."
Wall Street economists polled by Reuters expect the core CPI to rise 0.3% month-over-month and 3.0% year-over-year in July. In addition to economic data, the market is also paying attention to personnel changes at the Federal Reserve, which may lead to a more dovish stance, in line with Trump's wishes.
Trump said on Tuesday he would soon announce a short-term successor to Fed Governor Kugler, who resigned last Friday, as well as his choice for the next chairman. Trump has ruled out Treasury Secretary Jeff Bessant as Fed Chairman Jerome Powell's term, which ends in May 2026.
Trump said Bessant wants to continue in his current role, adding that the White House is considering four candidates to replace Powell.
“You could argue that Kugler’s successor will be dovish on interest rates, which, in turn, means a weaker dollar going forward,” Moneycorp’s Epstein noted.
Trump also fired Bureau of Labor Statistics Commissioner Erika McEntarfer on Friday after data showed weaker-than-expected job growth in July and sharp downward revisions to job gains for the previous two months. He said on Sunday he would announce a new BLS director within three to four days.
Data released on Tuesday had little impact on currency markets. U.S. services sector activity was unexpectedly flat in July, with orders barely changed and employment softening further, but input costs posted their biggest increase in nearly three years.
In afternoon trading, the euro was flat at $1.1569. That pushed the dollar index, which measures the greenback against six major currencies, up 0.2% to 98.81, having earlier hit a one-week low of 98.609.
Following the weak U.S. jobs report, interest rate futures markets are now pricing in a 91% chance of a rate cut at the Federal Reserve's meeting next month, compared with a 35% probability a week ago, according to the Chicago Mercantile Exchange's (CME) FedWatch tool.
The market also expects 60 basis points of rate cuts by the end of December and 130 basis points of rate cuts by October 2026, 30 basis points more than expected before the release of U.S. jobs data last Friday.
Goldman Sachs expects the Fed to cut interest rates three times in a row, by 25 basis points each, starting in September, and could cut by 50 basis points if the next jobs report shows a further rise in unemployment.
The dollar rose 0.4% against the yen to 147.66 yen. Minutes from the Bank of Japan's June meeting showed some policymakers saw room to resume interest rate hikes once trade frictions caused by U.S. tariffs ease.
However, investors remained focused on uncertainty surrounding tariffs, with Trump imposing tariffs on imports from dozens of countries last week, heightening concerns about the health of the global economy. The Swiss franc fell slightly to 0.8077 franc per dollar, having fallen 0.5% in the previous session.
International News
Trump threatens to take over Washington, D.C. over crime
Trump reiterated his threat to take over Washington, D.C., saying the crime problem in the city is "out of control." He added that if Washington, D.C. "doesn't take action," the United States will "have no choice but to have the federal government take over the city," and "if this continues, I will exercise my authority to federalize the city."
Ukrainian Prime Minister: The first meeting of the board of directors of the US-Ukraine Reconstruction Investment Fund is planned to be held in September
On August 5th, local time, Ukrainian Prime Minister Svyerenko posted on her official social media platform that she had spoken with U.S. Treasury Secretary Bensont, during which they discussed the launch of the U.S.-Ukraine Reconstruction Investment Fund. The fund's board of directors is scheduled to meet for its first meeting in September, with the goal of launching the first three projects within the next 18 months. She stated that both sides are working to expand the fund's mandate to include investments in defense. During the call, Svyerenko highlighted potential defense agreements proposed by Ukrainian President Zelenskyy, including the production and sale of Ukrainian drones and the possible purchase of U.S. weapons. The two sides also exchanged views on strengthening sanctions against Russia and cooperation with international financial organizations, and agreed to continue working-level dialogue.
Trump administration to formally cancel Musk's 'weekly report' plan
On August 5th, local time, sources familiar with the matter revealed that the Trump administration plans to officially cancel, as early as that day, a "weekly report" initiative initiated by Elon Musk, which required federal employees to summarize their five work achievements from the previous week. The White House and the Office of Personnel Management did not immediately respond to requests for comment. On February 22nd, Musk, then head of the "Government Efficiency Department," stated that, in accordance with US President Trump's instructions, all federal government employees would receive an email asking them to list five work items they had completed in the previous week. Employees who failed to respond to this email by 11:59 PM on February 24th would be deemed to have resigned. This move was opposed by multiple government departments and Democrats. (CCTV News)
Zelensky: Supports US ceasefire initiative and calls for sanctions against Russia
On August 5th, local time, Ukrainian President Volodymyr Zelenskyy announced in his regular evening video address that he had spoken with US President Donald Trump that day, with the most important topic being how to quickly end the Russia-Ukraine conflict. Zelenskyy stated that Ukraine fully supports the US initiative for an "immediate ceasefire," and that Ukraine has explored various options and dialogue formats to achieve a ceasefire. "Ukraine previously proposed an 'air quiet' initiative to Russia—a complete cessation of missile and drone attacks, as well as of attacks on civilian infrastructure, particularly energy systems. However, Russia has repeatedly and blatantly violated these consensus agreements," he said.
Trump says drug and chip tariffs will be announced in the 'next week or so'
US President Donald Trump said US tariffs on semiconductor and pharmaceutical imports will be announced "in the next week or so," as the administration prepares to target key economic sectors in an effort to reshape global trade. "We're going to start with a lower tariff on pharmaceuticals, but within a year, no more than a year and a half, we're going to go up to 150% and then 250% because we want pharmaceuticals to be made in our country," Trump said in an interview with CNBC on Tuesday. "We're going to be announcing something on semiconductors and chips, which is another category," the president added.
Google DeepMind launches Genie 3, a world model that redefines "generative AI"
Google DeepMind announced the release of Genie 3, its third-generation general-purpose world model. It can generate an unprecedented variety of interactive environments. Given textual prompts, Genie 3 can generate dynamic worlds, navigate in real time at 24 frames per second, and maintain consistency for minutes at 720p resolution. Compared to previous models (such as Genie 1 and 2) and video generation models (such as Veo 2 and Veo 3, which leverage a deep understanding of intuitive physics), Genie 3 is the first world model to allow real-time interaction and offers improved consistency and realism.
Russia reportedly will consider an air ceasefire but won't agree to a full ceasefire
Despite Russia's determination to continue its military campaign, the Kremlin is weighing concessions to US President Trump, potentially including an air ceasefire with Ukraine to avoid secondary sanctions. People familiar with the matter say that while expectations for a successful agreement are low, US Middle East envoy Witkov's visit to Russia this week is seen by Moscow as one of the last chances to reach a deal with Trump. One of the people familiar with the matter said a pause in airstrikes, including drone and missile strikes, could be a potential de-escalation proposal, provided Ukraine also signs on. However, Russian President Vladimir Putin will not agree to a comprehensive ceasefire in Ukraine because Russian forces are making steady advances on the battlefield and Russia's objectives have not changed.
Two former U.S. Treasury secretaries warn of risks facing the U.S. Treasury market
Two former U.S. Treasury secretaries during the global financial crisis have warned of potential risks to the $29 trillion U.S. Treasury bond market, ranging from an unsustainable fiscal path to concerns about Washington's political system. "We're on an unsustainable trajectory" when it comes to federal borrowing, former Treasury Secretary Henry Paulson told CNBC on Tuesday. "I don't know if that means we're going to hit a wall in six months, six years, or whatever." Timothy Geithner, who succeeded Paulson in early 2009, said in the same CNBC interview that the 10-year Treasury yield is "at a pretty moderate level, reflecting a certain level of fundamental confidence that the United States will govern rationally." "But it ultimately depends on whether the system can get revenues and spending back into balance, get the deficit down a little bit," and maintain the elements that give people confidence in U.S. Treasury bonds, such as the rule of law and the independence of the Federal Reserve. "Those areas are facing greater shadows now than they have been in some time."
Domestic News
The maximum power load of the Sichuan power grid reached 73.56 million kilowatts, setting a new record for the third time this year.
On the evening of August 5th, the official Weibo account of State Grid Sichuan Electric Power Company announced that due to the continued high temperatures and sunny weather over the past few days, the demand for cooling equipment such as air conditioners has surged. At 9:21 PM on August 4th, the Sichuan power grid's maximum load reached 73.56 million kilowatts, marking the third record high this year and a 6% increase from last year's peak load of 69.29 million kilowatts. Currently, the Sichuan power grid is operating smoothly, providing safe and reliable power supply. The Sichuan power grid currently has a total installed capacity of 150 million kilowatts, with all types of power sources, including hydropower, renewable energy, and thermal power, fully utilized, and all electricity purchased from outside the province has been fully purchased.
Progress exceeds 80%! More than 300 pieces of equipment for the second domestically-produced large cruise ship have reached completion
It was learned from China Shipbuilding Industry Corporation that today (August 5), the first main generator of the second domestically-built large cruise ship "Aida Huacheng" officially started generating electricity, providing power for all related equipment on the ship. This also marks that the construction of this cruise ship has entered the equipment commissioning and system function verification stage. The main generator is the core equipment of the cruise ship, like the "heart" of the cruise ship. It is the main power source for the ship's power distribution system and propulsion system. The formal power generation means that more than 300 related equipment have reached the completion state. As of now, the overall progress of the second domestically-built large cruise ship "Aida Huacheng" project has exceeded 80%. The next stage will focus on the interior engineering and equipment system commissioning to ensure the smooth launch in March 2026 and completion and delivery before the end of the year. (CCTV)
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