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• Analysts warn that the US Federal Reserve's decision to maintain higher interest rates for longer will negatively impact Asia's tech sectors and slow global growth. • Economies with large youth populations and high import reliance, specifically India, Indonesia, Pakistan, and the Philippines, are expected to be most vulnerable to these conditions. • Asian central banks are increasingly diverging from the Fed's path to address local macroeconomic factors, such as varying inflation outlooks and energy price exposure.

The Federal Reserve voted to hold its key interest rate steady, sending stocks tumbling, as US claimed to hit ‘dozens’ of Iranian targets. Plus the origins of Coca-Cola may have been found … in ItalyGood morning. US government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation. Kevin Warsh, the Fed chair, said the bank would “not waver” in its commitment to tackling rising prices.The decision to leave rates on hold has spooked investors, who are worried about the US economy’s ability to absorb a rise inflation, triggered by Donald Trump’s war in Iran. US inflation cooled to an annual rate of 3.5% in June after Washington and Tehran agreed a brief ceasefire – but this has since ended. US stocks fell sharply on Wednesday, with the blue chip S&P 500 index closing down 1.5%. The Dow Jones industrial average fell 2.2% and the tech-heavy Nasdaq was down 1.7%. Continue reading...

Bank’s chair pledges to keep up fight against inflation but decision brings fears the Fed is failing to keep paceUS government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation.The yield – or interest rate – on the 30-year US Treasury bond rose 14 basis points to nearly 5.24%, a 19-year high, after the Fed announced its decision to hold its main rate at between 3.5% and 3.75% for the fifth meeting in a row. Continue reading...

• The FTSE 100 reached a record high as strong corporate results attracted investors shifting capital away from technology and semiconductor stocks. • In contrast, shares of TSMC, the world's largest contract chipmaker, dropped 3% in Taipei on Wednesday amid a broader AI-sector sell-off. • Analysts attribute the volatility to small-time investors who used borrowed money to drive last month's rally and are now rapidly withdrawing funds.

• The Dow Jones and S&P 500 reached record highs, with the benchmark index closing up 0.2% despite a 1% drop in the tech-heavy Nasdaq 100. • JPMorgan Chase & Co. analysts suggest the probability of a Federal Reserve rate hike is currently less than 30%, citing a lack of risk for an "upside explosion" in inflation. • Experts assign a 50% chance to a "hawkish hold," indicating the central bank will remain vigilant despite signs of disinflation in energy prices.

• Mergers and acquisitions (M&A) in the Asia-Pacific sports sector have reached record highs as wealthy investors shift from traditional sponsorships to acquiring direct equity stakes. • The trend is driven by the high value of "attention currency," exemplified by massive viewership numbers such as 205 million unique viewers on CCTV in China for recent tournament matches. • High-profile investors like Singapore-based businessman Kiat Lim, who controls Valencia CF and holds stakes in Salford City FC and McLaren Automotive, are leading this strategic pivot.

Australia’s trade minister, Don Farrell, says tariff regime is unjustified and inconsistent with free trade agreement with USFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastDonald Trump has hit Australian exports with new trade tariffs, claiming the country is not doing enough to combat forced labour, but the Albanese government has demanded he remove them immediately.The United States announced on Friday morning (AEST) that many Australian exports now attract a new 12.5% tariff as part of a broader regime affecting dozens of countries. Continue reading...