August 7th Financial Breakfast: Gold prices were weighed down by profit-taking and Trump announced tariffs of approximately 100% on chips.
2025-08-07 07:21:10
On Thursday (August 7, Beijing time), spot gold traded around $3,370 per ounce. Gold prices fell on Wednesday as investors took profits after hitting a nearly two-week high in the previous trading day. At the same time, market focus shifted to US President Trump's upcoming nomination for Federal Reserve chairman; US crude oil traded around $64.40 per barrel. Oil prices fell to an eight-week low on Wednesday. Sources said Trump plans to meet with Putin and Zelensky as early as next week. At the same time, Trump announced that he would impose a tariff of about 100% on chips.
U.S. stocks closed higher on Wednesday, led by the Nasdaq, which jumped more than 1%, as Apple rose after news of its domestic manufacturing commitment and some companies released upbeat earnings reports.
Apple shares rose 5.1 percent, providing the biggest boost to all three major indexes, after White House officials said the company would announce a $100 billion domestic manufacturing plan.
McDonald's rose 3% after reporting global sales that beat expectations. Cloud networking company Arista Networks surged 17.5% after forecasting current-quarter revenue above expectations. "Corporate earnings continue to beat expectations," said Sam Stovall, chief investment strategist at CFRA Research. He said investors appear optimistic about the short-term outlook despite uncertainty surrounding tariffs.
Approximately 400 companies in the S&P 500 have now reported second-quarter earnings. Approximately 80% of these companies have exceeded analyst earnings expectations, compared to an average of 76% over the past four quarters. According to data from the London Stock Exchange Group (LSEG), analysts expect quarterly earnings to grow by 12.1%, compared to the 5.8% increase expected at the beginning of July.
On Wednesday, US President Trump announced an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil.
The Dow Jones Industrial Average rose 0.18% to 44,193.12, the S&P 500 rose 0.73% to 6,345.06, and the Nasdaq Composite rose 1.21% to 21,169.42.
Rising expectations for a September rate cut by the Federal Reserve also helped stocks after last week’s U.S. jobs report showed slowing job growth and downward revisions to prior months.
Minneapolis Fed President Neel Kashkari said on Wednesday that the Federal Reserve may need to cut interest rates in the near future to respond to an economic slowdown.
Markets are pricing in a 95.2% chance the Fed will cut interest rates by at least a quarter point in September, up from 92.9% the previous session and 46.7% a week ago, according to the Chicago Mercantile Exchange's (CME) FedWatch tool. Investors are also awaiting Trump's nominees for Fed governors.
Bucking the broader market trend, chip company Advanced Micro Devices and server maker Super Micro Computer fell 6.4% and 18.3%, respectively, after both companies reported disappointing results for their data center businesses. Disney fell 2.7% despite a strong quarter and a raised full-year forecast.
Gold prices fell on Wednesday as investors took profits after hitting a near two-week high in the previous session, while market focus shifted to US President Trump's upcoming nomination for Federal Reserve chair. Spot gold fell 0.2% to $3,373.59 per ounce. U.S. gold futures settled unchanged at $3,433.4.
"We view this as a pullback, with some profit-taking after the recent gains and a slight easing of safe-haven demand during a period of light economic news," said David Meger, director of metals trading at High Ridge Futures.
Gold prices rallied for three consecutive sessions after weaker-than-expected U.S. job growth data on Friday. Market participants now see a more than 93% chance of a September rate cut, up from 63% previously, according to the Chicago Mercantile Exchange's (CME) FedWatch tool.
Trump said on Tuesday he would nominate candidates for Federal Reserve Board seats by the end of the week and narrowed the field of candidates to succeed Chairman Jerome Powell.
Spot silver rose 0.1% to $37.88 an ounce. Platinum rose 0.9% to $1,332.26. Palladium fell 2.7% to $1,143.52, having earlier hit its lowest level since July 10. "Concerns about sanctions on Russia have been one of the factors that have supported platinum and palladium prices over the past few weeks," Meger said. Trump said on Wednesday that his special envoy, Vitkov, made "significant progress" in his meeting with Russian President Vladimir Putin, as Washington prepared to impose secondary sanctions on Friday.
Oil prices fell about 1% on Wednesday to an eight-week low after U.S. President Donald Trump's comments about progress in talks with Moscow cast uncertainty over whether the United States would impose new sanctions on Russia.
Brent crude futures fell 1.1% to settle at $66.89 a barrel, while U.S. crude futures fell 1.2% to settle at $64.35. This marked the fifth consecutive day of declines for both benchmarks, with Brent crude closing at its lowest point since June 10 and U.S. crude at its lowest point since June 5.
Trump said Wednesday that his special envoy, Witkoff, made "tremendous progress" in a meeting with Russian President Vladimir Putin, as Washington continued preparations to impose secondary sanctions on Friday. Trump threatened to impose more sanctions on Moscow if it doesn't take action to end the war in Ukraine. "Everyone agrees that this war has to end, and we're going to be working on that in the days and weeks ahead," Trump said.
Russia is the world's second-largest crude producer after the United States, so any potential deal to reduce sanctions would make it easier for Russia to export more oil.
Oil prices rose after Trump issued an executive order earlier in the day imposing an additional 25% tariff on Indian goods that directly or indirectly import Russian oil. The new import tax will take effect 21 days after August 7.
"For now, the situation remains too uncertain with India's new tariffs kicking in just 21 days while Russia attempts to reach some kind of ceasefire before President Trump's August 8th deadline," Bob Yawger, director of energy futures at Mizuho Bank, said in a note.
In addition to uncertainty over tariffs and sanctions, analysts said OPEC+ plans to increase supply have also weighed on the market in recent days.
An earlier report showed that U.S. crude oil inventories fell more than expected last week, providing support to the oil market.
The dollar fell on Wednesday and the euro hit a one-week high as traders bet the Federal Reserve would cut interest rates more this year than previously expected after weaker-than-expected July jobs data.
With no major U.S. economic data due on Wednesday, traders continued to focus on the impact of last Friday's jobs report, which showed weaker-than-expected U.S. job growth in July and a sharp downward revision of 258,000 jobs for the first two months, pointing to a sharp deterioration in labor market conditions.
The US dollar fell sharply after the report was released, giving up its relatively strong gains in July, which was the first monthly increase in the US dollar index this year.
"We had the first dollar rally of Trump's second term, and a lot of people thought that might have some support, but I think the jobs data last Friday killed it, and people are again speculating not only about a September rate cut but another rate cut by the end of the year, which puts a cap on the dollar's rally," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
Fed funds futures traders are currently pricing in a 95% probability of a 25 basis point rate cut at the Fed’s September meeting, up from 48% a week ago, according to CME Group’s FedWatch tool. Traders see a total of 62 basis points of rate cuts this year.
Minneapolis Federal Reserve Bank President Neel Kashkari said on Wednesday that while it remains unclear whether tariffs will continue to push up inflation, the Federal Reserve may need to cut interest rates in the near term to counter a slowing U.S. economy.
Trump issued an executive order on Wednesday imposing an additional 25% tariff on goods from India, saying the country directly or indirectly imports Russian oil, which is in addition to the already announced 25% tariff.
The US dollar index fell 0.56% to 98.18 points in late New York trading, the lowest since July 28. Last Friday, the US dollar index fell 1.35%, the largest single-day drop since April.
Late in New York trading, the dollar briefly rose along with Treasury yields, likely due to heavy futures bets by traders ahead of the 10-year bond auction.
The dollar extended losses after the Treasury Department's auction of $42 billion in 10-year notes drew weak demand.
The euro rose 0.76% to $1.1662, its highest level since July 28. On Friday, the single currency gained 1.48%.
Investors are also focused on Trump's expected nominations to fill upcoming vacancies on the Federal Reserve Board and for the next Fed chair. Trump said on Tuesday he would decide on a nominee to replace outgoing Fed Governor Adriana Kugler by the end of the week and had narrowed his list of potential successors to Fed Chairman Jerome Powell to four. Trump said he had narrowed the list to National Economic Council Director Kevin Hassett, former Fed governor and Trump supporter Chris Waller, and two other candidates. Trump did not name the two individuals, but one is believed to be current Fed Governor Stephen Waller.
"From what we can ascertain, Walsh appears to be the most hawkish of the three, while Waller is clearly the most dovish, having dissented at the last FOMC meeting, so any potential tilt toward the latter is likely to be bearish for the dollar," Matthew Ryan, head of market strategy at Ebury, said in a note.
The dollar fell 0.35% against the yen to 147.09 yen. Last Friday, the dollar fell 2.24% against the yen, the biggest single-day drop since January 2023.
Taro Kono, considered a candidate to become the next prime minister, said on Wednesday Japan must balance its budget and pushed the central bank to raise interest rates to ease concerns about the country's finances.
Meanwhile, ruling party heavyweight Ken Saito told Reuters the Bank of Japan must be cautious in raising interest rates given the expected impact of higher U.S. tariffs on Japan's fragile economy.
Ahead of an expected 25 basis point interest rate cut by the Bank of England on Thursday, the British pound rose 0.47% to $1.3362. USD/CHF fell 0.17% to $0.806. Swiss President Karin Keller-Sutter said she had a "very good meeting" with U.S. Secretary of State Marco Rubio on Wednesday, and that Switzerland is working to reach a deal with the United States to avoid a 39% tariff on its exports.
Trump: About 100% tariff will be imposed on chips, and factories built in the United States will be exempted
Trump said he would impose a 100% tariff on imported goods containing semiconductors, but would exempt companies that locate production in the United States. "We're going to impose very high tariffs on chips and semiconductors, but there's good news for companies like Apple: If you're building a factory in the United States, or have already made an unequivocal commitment to building a factory in the United States, you won't have to pay anything. In other words, we're going to impose a tariff of about 100% on chips and semiconductors. But if you're building a factory in the United States, you won't have to pay. Even if you haven't actually started mass production yet, but you're building it, then you won't have to pay." Trump also said that independent tariffs could be imposed on all products containing semiconductor chips as early as next week. (Refinitiv)
Sources say Trump plans to meet with Putin and Zelensky as early as next week
On August 6th, local time, the New York Times reported that two people familiar with the matter revealed that US President Trump informed European leaders that he plans to meet face-to-face with Russian President Vladimir Putin as early as next week, followed by a trilateral meeting with Putin and Ukrainian President Volodymyr Zelensky. The sources said Trump disclosed the plan during a phone call with European leaders on the 6th. The talks will be limited to the three leaders of the United States, Russia, and Ukraine and will not include representatives from any European countries. Russia and Ukraine have not yet responded to the news. (CCTV News)
Fed Governor Cook: Revisions to non-farm payroll data could signal a turning point for the U.S. economy
Federal Reserve Board Governor Lisa Cook called the July jobs report "worrying" and suggested it could signal a turning point in the US economy. "These revisions are somewhat typical of turning points," Cook said during a discussion organized by the Boston Fed on Wednesday. Data released last week showed a sharp cooling in the labor market over the past few months. According to the Bureau of Labor Statistics, nonfarm payrolls increased by 73,000 in July, after sharp downward revisions of nearly 260,000 in the previous two months. The unemployment rate rose slightly to 4.2% from 4.1% in June.
Barclays Research: T+1 settlement system significantly reduces credit transaction costs on Wall Street
A long-feared reform of Wall Street's settlement system is now showing results, freeing up vast sums of capital. More than a year after the US implemented T+1 settlement, a key measure of corporate bond trading costs has fallen by 12%. According to Barclays research, margin requirements—the amount of cash or collateral companies must post to cover the risk of trade failures—have fallen by 29%. This means that this capital can now be reinvested. Furthermore, there are signs that this savings has improved liquidity in credit markets. At least for now, this is a success for US regulators. The T+1 reform stemmed from the chaos caused by the "meme stock" craze, when a large number of settlement failures exposed the dangers of delays. European markets, including the UK and Switzerland, are expected to follow suit in 2027.
Trump advisers push for an interim Fed governor to fill vacancy
Donald Trump's advisers are encouraging him to nominate an interim Federal Reserve governor to fill the soon-to-be-vacant seat on the central bank's board of governors, according to people familiar with the matter. Nominating a governor to serve out the upcoming term of the seat, which expires in January 2026, would give Trump more time to interview candidates to succeed Jerome Powell as Fed chair when his term ends next May, the people said. Fed Governor Adriana Kugler announced last week that she plans to step down on August 8.
Japan's population decline hits largest drop on record
According to statistics released by Japan's Ministry of Internal Affairs and Communications on the 6th, as of January 1, 2025, Japan's population, excluding foreign residents, has declined for 16 consecutive years, reaching approximately 121 million. This represents a decrease of approximately 908,000 from the previous year, the largest decrease since statistics began in 1968. The data shows that between January 1, 2024, and January 1, 2025, Japan experienced a record low in births and a record high in deaths. Only Tokyo saw an increase in population, albeit by a mere 0.13%. By age, 29.58% of the population is over 65, while 59.04% are aged 15 to 64, both showing increases compared to the same period last year. Kyodo News analyzes that Japan's current demographic situation reflects a serious trend toward declining birthrates. It is projected that Japan's population may fall below 120 million by 2026. (Xinhua News Agency)
US ambassador says Trump's patience has run out, supports Israel making 'tough decisions' on Gaza
As Israel considers whether to fully take over the Gaza Strip to crush Hamas, the United States is supporting Israel in making a "tough decision." The U.S. ambassador to Israel stated that President Donald Trump is fed up with the continued lack of progress in ceasefire efforts. Ambassador Mike Huckabee also expects the United States to play a guiding role in post-war arrangements in Gaza and has taken steps to triple the scope of relief provided by a U.S.-Israeli-backed organization that began operations in May. The organization has been criticized in a UN report for Palestinians being killed near its facilities and for the refusal of traditional aid agencies to cooperate with it. "The president has made it clear that his recent public statements indicate that his patience with any legitimacy of the Hamas agreement has run out," Huckabee said on Wednesday. "He has concluded that they are not serious and that they are just trying to delay." On July 19, Mike Huckabee visited the Palestinian Christian village of Taybeh, northeast of Ramallah in the occupied West Bank. When asked if this meant Trump supported a Gaza takeover, Huckabee stated that the president "respects Israel's right to take the necessary measures to protect itself, to rescue the hostages, and to put an end to this." "He understands that tough decisions have to be made."
Xiong Jijun, Vice Minister of the Ministry of Industry and Information Technology: China is willing to work with APEC member economies to promote innovative applications of digital and artificial intelligence
The APEC Digital and Artificial Intelligence Ministerial Meeting was held in Incheon, South Korea on the 4th. Xiong Jijun, Vice Minister of Industry and Information Technology, stated that China is willing to work with APEC member economies to jointly promote the development of industries such as digital and artificial intelligence, and to promote common prosperity in the Asia-Pacific region. First, we will work together to promote innovative applications of digital and artificial intelligence. We will strengthen policy coordination and industrial cooperation, support the international sharing of innovative achievements, and promote technological exchanges and cooperation among global companies through open source. Second, we will work together to accelerate the digital and intelligent transformation of industries. We will accelerate the use of digital and artificial intelligence technologies to empower traditional industries, promote high-end, intelligent, and green industrial development, and strengthen new drivers of economic development. Third, we will collaborate to strengthen digital skills and AI capacity building. We will actively share advanced technologies, the latest applications, and best practices, promote knowledge transfer and innovation through cooperation, and help developing economies bridge the "digital divide" and "intelligence divide." Fourth, we will jointly create a favorable ecosystem for the development of digital and artificial intelligence industries.
Focus on the day
stock market
U.S. stocks closed higher on Wednesday, led by the Nasdaq, which jumped more than 1%, as Apple rose after news of its domestic manufacturing commitment and some companies released upbeat earnings reports.
Apple shares rose 5.1 percent, providing the biggest boost to all three major indexes, after White House officials said the company would announce a $100 billion domestic manufacturing plan.
McDonald's rose 3% after reporting global sales that beat expectations. Cloud networking company Arista Networks surged 17.5% after forecasting current-quarter revenue above expectations. "Corporate earnings continue to beat expectations," said Sam Stovall, chief investment strategist at CFRA Research. He said investors appear optimistic about the short-term outlook despite uncertainty surrounding tariffs.
Approximately 400 companies in the S&P 500 have now reported second-quarter earnings. Approximately 80% of these companies have exceeded analyst earnings expectations, compared to an average of 76% over the past four quarters. According to data from the London Stock Exchange Group (LSEG), analysts expect quarterly earnings to grow by 12.1%, compared to the 5.8% increase expected at the beginning of July.
On Wednesday, US President Trump announced an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil.
The Dow Jones Industrial Average rose 0.18% to 44,193.12, the S&P 500 rose 0.73% to 6,345.06, and the Nasdaq Composite rose 1.21% to 21,169.42.
Rising expectations for a September rate cut by the Federal Reserve also helped stocks after last week’s U.S. jobs report showed slowing job growth and downward revisions to prior months.
Minneapolis Fed President Neel Kashkari said on Wednesday that the Federal Reserve may need to cut interest rates in the near future to respond to an economic slowdown.
Markets are pricing in a 95.2% chance the Fed will cut interest rates by at least a quarter point in September, up from 92.9% the previous session and 46.7% a week ago, according to the Chicago Mercantile Exchange's (CME) FedWatch tool. Investors are also awaiting Trump's nominees for Fed governors.
Bucking the broader market trend, chip company Advanced Micro Devices and server maker Super Micro Computer fell 6.4% and 18.3%, respectively, after both companies reported disappointing results for their data center businesses. Disney fell 2.7% despite a strong quarter and a raised full-year forecast.
Gold Market
Gold prices fell on Wednesday as investors took profits after hitting a near two-week high in the previous session, while market focus shifted to US President Trump's upcoming nomination for Federal Reserve chair. Spot gold fell 0.2% to $3,373.59 per ounce. U.S. gold futures settled unchanged at $3,433.4.
"We view this as a pullback, with some profit-taking after the recent gains and a slight easing of safe-haven demand during a period of light economic news," said David Meger, director of metals trading at High Ridge Futures.
Gold prices rallied for three consecutive sessions after weaker-than-expected U.S. job growth data on Friday. Market participants now see a more than 93% chance of a September rate cut, up from 63% previously, according to the Chicago Mercantile Exchange's (CME) FedWatch tool.
Trump said on Tuesday he would nominate candidates for Federal Reserve Board seats by the end of the week and narrowed the field of candidates to succeed Chairman Jerome Powell.
Spot silver rose 0.1% to $37.88 an ounce. Platinum rose 0.9% to $1,332.26. Palladium fell 2.7% to $1,143.52, having earlier hit its lowest level since July 10. "Concerns about sanctions on Russia have been one of the factors that have supported platinum and palladium prices over the past few weeks," Meger said. Trump said on Wednesday that his special envoy, Vitkov, made "significant progress" in his meeting with Russian President Vladimir Putin, as Washington prepared to impose secondary sanctions on Friday.
Oil Market
Oil prices fell about 1% on Wednesday to an eight-week low after U.S. President Donald Trump's comments about progress in talks with Moscow cast uncertainty over whether the United States would impose new sanctions on Russia.
Brent crude futures fell 1.1% to settle at $66.89 a barrel, while U.S. crude futures fell 1.2% to settle at $64.35. This marked the fifth consecutive day of declines for both benchmarks, with Brent crude closing at its lowest point since June 10 and U.S. crude at its lowest point since June 5.
Trump said Wednesday that his special envoy, Witkoff, made "tremendous progress" in a meeting with Russian President Vladimir Putin, as Washington continued preparations to impose secondary sanctions on Friday. Trump threatened to impose more sanctions on Moscow if it doesn't take action to end the war in Ukraine. "Everyone agrees that this war has to end, and we're going to be working on that in the days and weeks ahead," Trump said.
Russia is the world's second-largest crude producer after the United States, so any potential deal to reduce sanctions would make it easier for Russia to export more oil.
Oil prices rose after Trump issued an executive order earlier in the day imposing an additional 25% tariff on Indian goods that directly or indirectly import Russian oil. The new import tax will take effect 21 days after August 7.
"For now, the situation remains too uncertain with India's new tariffs kicking in just 21 days while Russia attempts to reach some kind of ceasefire before President Trump's August 8th deadline," Bob Yawger, director of energy futures at Mizuho Bank, said in a note.
In addition to uncertainty over tariffs and sanctions, analysts said OPEC+ plans to increase supply have also weighed on the market in recent days.
An earlier report showed that U.S. crude oil inventories fell more than expected last week, providing support to the oil market.
foreign exchange market
The dollar fell on Wednesday and the euro hit a one-week high as traders bet the Federal Reserve would cut interest rates more this year than previously expected after weaker-than-expected July jobs data.
With no major U.S. economic data due on Wednesday, traders continued to focus on the impact of last Friday's jobs report, which showed weaker-than-expected U.S. job growth in July and a sharp downward revision of 258,000 jobs for the first two months, pointing to a sharp deterioration in labor market conditions.
The US dollar fell sharply after the report was released, giving up its relatively strong gains in July, which was the first monthly increase in the US dollar index this year.
"We had the first dollar rally of Trump's second term, and a lot of people thought that might have some support, but I think the jobs data last Friday killed it, and people are again speculating not only about a September rate cut but another rate cut by the end of the year, which puts a cap on the dollar's rally," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
Fed funds futures traders are currently pricing in a 95% probability of a 25 basis point rate cut at the Fed’s September meeting, up from 48% a week ago, according to CME Group’s FedWatch tool. Traders see a total of 62 basis points of rate cuts this year.
Minneapolis Federal Reserve Bank President Neel Kashkari said on Wednesday that while it remains unclear whether tariffs will continue to push up inflation, the Federal Reserve may need to cut interest rates in the near term to counter a slowing U.S. economy.
Trump issued an executive order on Wednesday imposing an additional 25% tariff on goods from India, saying the country directly or indirectly imports Russian oil, which is in addition to the already announced 25% tariff.
The US dollar index fell 0.56% to 98.18 points in late New York trading, the lowest since July 28. Last Friday, the US dollar index fell 1.35%, the largest single-day drop since April.
Late in New York trading, the dollar briefly rose along with Treasury yields, likely due to heavy futures bets by traders ahead of the 10-year bond auction.
The dollar extended losses after the Treasury Department's auction of $42 billion in 10-year notes drew weak demand.
The euro rose 0.76% to $1.1662, its highest level since July 28. On Friday, the single currency gained 1.48%.
Investors are also focused on Trump's expected nominations to fill upcoming vacancies on the Federal Reserve Board and for the next Fed chair. Trump said on Tuesday he would decide on a nominee to replace outgoing Fed Governor Adriana Kugler by the end of the week and had narrowed his list of potential successors to Fed Chairman Jerome Powell to four. Trump said he had narrowed the list to National Economic Council Director Kevin Hassett, former Fed governor and Trump supporter Chris Waller, and two other candidates. Trump did not name the two individuals, but one is believed to be current Fed Governor Stephen Waller.
"From what we can ascertain, Walsh appears to be the most hawkish of the three, while Waller is clearly the most dovish, having dissented at the last FOMC meeting, so any potential tilt toward the latter is likely to be bearish for the dollar," Matthew Ryan, head of market strategy at Ebury, said in a note.
The dollar fell 0.35% against the yen to 147.09 yen. Last Friday, the dollar fell 2.24% against the yen, the biggest single-day drop since January 2023.
Taro Kono, considered a candidate to become the next prime minister, said on Wednesday Japan must balance its budget and pushed the central bank to raise interest rates to ease concerns about the country's finances.
Meanwhile, ruling party heavyweight Ken Saito told Reuters the Bank of Japan must be cautious in raising interest rates given the expected impact of higher U.S. tariffs on Japan's fragile economy.
Ahead of an expected 25 basis point interest rate cut by the Bank of England on Thursday, the British pound rose 0.47% to $1.3362. USD/CHF fell 0.17% to $0.806. Swiss President Karin Keller-Sutter said she had a "very good meeting" with U.S. Secretary of State Marco Rubio on Wednesday, and that Switzerland is working to reach a deal with the United States to avoid a 39% tariff on its exports.
International News
Trump: About 100% tariff will be imposed on chips, and factories built in the United States will be exempted
Trump said he would impose a 100% tariff on imported goods containing semiconductors, but would exempt companies that locate production in the United States. "We're going to impose very high tariffs on chips and semiconductors, but there's good news for companies like Apple: If you're building a factory in the United States, or have already made an unequivocal commitment to building a factory in the United States, you won't have to pay anything. In other words, we're going to impose a tariff of about 100% on chips and semiconductors. But if you're building a factory in the United States, you won't have to pay. Even if you haven't actually started mass production yet, but you're building it, then you won't have to pay." Trump also said that independent tariffs could be imposed on all products containing semiconductor chips as early as next week. (Refinitiv)
Sources say Trump plans to meet with Putin and Zelensky as early as next week
On August 6th, local time, the New York Times reported that two people familiar with the matter revealed that US President Trump informed European leaders that he plans to meet face-to-face with Russian President Vladimir Putin as early as next week, followed by a trilateral meeting with Putin and Ukrainian President Volodymyr Zelensky. The sources said Trump disclosed the plan during a phone call with European leaders on the 6th. The talks will be limited to the three leaders of the United States, Russia, and Ukraine and will not include representatives from any European countries. Russia and Ukraine have not yet responded to the news. (CCTV News)
Fed Governor Cook: Revisions to non-farm payroll data could signal a turning point for the U.S. economy
Federal Reserve Board Governor Lisa Cook called the July jobs report "worrying" and suggested it could signal a turning point in the US economy. "These revisions are somewhat typical of turning points," Cook said during a discussion organized by the Boston Fed on Wednesday. Data released last week showed a sharp cooling in the labor market over the past few months. According to the Bureau of Labor Statistics, nonfarm payrolls increased by 73,000 in July, after sharp downward revisions of nearly 260,000 in the previous two months. The unemployment rate rose slightly to 4.2% from 4.1% in June.
Barclays Research: T+1 settlement system significantly reduces credit transaction costs on Wall Street
A long-feared reform of Wall Street's settlement system is now showing results, freeing up vast sums of capital. More than a year after the US implemented T+1 settlement, a key measure of corporate bond trading costs has fallen by 12%. According to Barclays research, margin requirements—the amount of cash or collateral companies must post to cover the risk of trade failures—have fallen by 29%. This means that this capital can now be reinvested. Furthermore, there are signs that this savings has improved liquidity in credit markets. At least for now, this is a success for US regulators. The T+1 reform stemmed from the chaos caused by the "meme stock" craze, when a large number of settlement failures exposed the dangers of delays. European markets, including the UK and Switzerland, are expected to follow suit in 2027.
Trump advisers push for an interim Fed governor to fill vacancy
Donald Trump's advisers are encouraging him to nominate an interim Federal Reserve governor to fill the soon-to-be-vacant seat on the central bank's board of governors, according to people familiar with the matter. Nominating a governor to serve out the upcoming term of the seat, which expires in January 2026, would give Trump more time to interview candidates to succeed Jerome Powell as Fed chair when his term ends next May, the people said. Fed Governor Adriana Kugler announced last week that she plans to step down on August 8.
Japan's population decline hits largest drop on record
According to statistics released by Japan's Ministry of Internal Affairs and Communications on the 6th, as of January 1, 2025, Japan's population, excluding foreign residents, has declined for 16 consecutive years, reaching approximately 121 million. This represents a decrease of approximately 908,000 from the previous year, the largest decrease since statistics began in 1968. The data shows that between January 1, 2024, and January 1, 2025, Japan experienced a record low in births and a record high in deaths. Only Tokyo saw an increase in population, albeit by a mere 0.13%. By age, 29.58% of the population is over 65, while 59.04% are aged 15 to 64, both showing increases compared to the same period last year. Kyodo News analyzes that Japan's current demographic situation reflects a serious trend toward declining birthrates. It is projected that Japan's population may fall below 120 million by 2026. (Xinhua News Agency)
US ambassador says Trump's patience has run out, supports Israel making 'tough decisions' on Gaza
As Israel considers whether to fully take over the Gaza Strip to crush Hamas, the United States is supporting Israel in making a "tough decision." The U.S. ambassador to Israel stated that President Donald Trump is fed up with the continued lack of progress in ceasefire efforts. Ambassador Mike Huckabee also expects the United States to play a guiding role in post-war arrangements in Gaza and has taken steps to triple the scope of relief provided by a U.S.-Israeli-backed organization that began operations in May. The organization has been criticized in a UN report for Palestinians being killed near its facilities and for the refusal of traditional aid agencies to cooperate with it. "The president has made it clear that his recent public statements indicate that his patience with any legitimacy of the Hamas agreement has run out," Huckabee said on Wednesday. "He has concluded that they are not serious and that they are just trying to delay." On July 19, Mike Huckabee visited the Palestinian Christian village of Taybeh, northeast of Ramallah in the occupied West Bank. When asked if this meant Trump supported a Gaza takeover, Huckabee stated that the president "respects Israel's right to take the necessary measures to protect itself, to rescue the hostages, and to put an end to this." "He understands that tough decisions have to be made."
Domestic News
Xiong Jijun, Vice Minister of the Ministry of Industry and Information Technology: China is willing to work with APEC member economies to promote innovative applications of digital and artificial intelligence
The APEC Digital and Artificial Intelligence Ministerial Meeting was held in Incheon, South Korea on the 4th. Xiong Jijun, Vice Minister of Industry and Information Technology, stated that China is willing to work with APEC member economies to jointly promote the development of industries such as digital and artificial intelligence, and to promote common prosperity in the Asia-Pacific region. First, we will work together to promote innovative applications of digital and artificial intelligence. We will strengthen policy coordination and industrial cooperation, support the international sharing of innovative achievements, and promote technological exchanges and cooperation among global companies through open source. Second, we will work together to accelerate the digital and intelligent transformation of industries. We will accelerate the use of digital and artificial intelligence technologies to empower traditional industries, promote high-end, intelligent, and green industrial development, and strengthen new drivers of economic development. Third, we will collaborate to strengthen digital skills and AI capacity building. We will actively share advanced technologies, the latest applications, and best practices, promote knowledge transfer and innovation through cooperation, and help developing economies bridge the "digital divide" and "intelligence divide." Fourth, we will jointly create a favorable ecosystem for the development of digital and artificial intelligence industries.
- Risk Warning and Disclaimer
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