Keeps

• The Bank of England kept interest rates on hold during its latest policy meeting while European stocks rose as oil prices declined. • The central bank projected that a surge in inflation will peak in early 2027, coinciding with the timing of agreed wage settlements. • This decision affects borrowing costs for businesses and consumers across the UK as the bank balances GDP growth with inflation risks.

Vice-president wears religion on his sleeve but winding spiritual path could alienate evangelicals and CatholicsUS vice-president JD Vance has worn his religion on his sleeve since converting to the Catholicism in 2019. He recently published a book, Communion: Finding My Way Back to Faith, and memorably met the late Pope Francis at the Vatican on Easter Sunday in 2025, a day before the pontiff died.But his religious identity could take on new weight as he positions himself for a presidential run in 2028, in which a successful campaign would make him only the third Catholic president in US history. Vance’s winding spiritual path – combined with his avowed evangelical roots – have the potential to stymie him, as he seeks to retain the Christian nationalist voters that have sustained Donald Trump’s Make America Great Again (Maga) movement while wooing fellow Catholics. Continue reading...

• India's trade with China has nearly doubled over the last five years, creating a widening trade deficit for New Delhi. • Some imports appearing to come from other countries are actually Chinese goods that were processed or repackaged in Southeast Asia. • This trend complicates India's efforts to reduce economic dependence on China while attempting to build its own industrial future.

• U.S. inflation remained at 3.4% in August, increasing pressure on the Federal Reserve to raise interest rates. • The Federal Open Market Committee will meet next week to decide on a rate hike following a surge in fuel prices caused by the war in Iran. • A decision to raise rates would increase borrowing costs for all types of loans across the economy.

• Headlam Group entered administration recently to undergo a financial restructuring while continuing its daily business operations. • The company intends to maintain its active trading status and may regain its listed status on the stock exchange if the restructuring is successful. • This move allows the business to reorganize its debts and operations to avoid total closure and protect its market position.

Organ kept Tim Andrews off dialysis and acted as a ‘bridge’ while he waited for a human transplant in the USA genetically modified kidney from a pig called Wilma has kept a 66-year-old man with kidney failure alive for a record nine months and successfully acted as a “bridge” to a human transplant in a world first.Tim Andrews was seriously ill with end-stage kidney disease caused by type 2 diabetes and had only a 9% chance of receiving a human kidney within five years, against a more than 40% risk of dying or being removed from the waiting list. Continue reading...

• Tech Innovators has secured $50 million in funding from Venture Capitalist Alpha to accelerate advancements in artificial intelligence. • The investment highlights a broader trend where Southeast Asian founders are encouraged to seek "smart capital" that balances funding terms with geopolitical risk management. • This strategic approach is critical for startups in the region to preserve operational flexibility and long-term options amidst global political volatility.

• Indian benchmarks remained largely flat for the third consecutive day, with the Nifty 50 gaining 13 points (0.05%) to close at 24,583.80 and the Sensex rising 43 points (0.06%) to 78,542.44. • Market growth was constrained by rising crude oil prices, which limited bullish momentum and kept indices stagnant. • Investors are now focusing on the final leg of the Q1FY27 earnings season, alongside US inflation data and US-Iran negotiations to determine future risk appetite.

• European shares remained broadly flat on Monday as geopolitical uncertainty surrounding the Strait of Hormuz kept oil prices elevated. • Technology stocks led the market with a 0.7% increase, driven by strong corporate earnings and hopes for lower U.S. borrowing costs, while media stocks fell by 0.7%. • The steady market reflects a balancing act between positive corporate sentiment and the volatility of energy markets.

• The Indian stock market ended higher on August 5, with the Sensex rising 152 points and the Nifty 50 closing above 24,620. • Gains were driven by the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged, alongside an improved FY27 growth outlook and lowered inflation projections. • Strong performance in the auto, realty, and metal sectors helped offset market concerns regarding geopolitical tensions and rising crude oil prices.

• On August 5, 2026, the Reserve Bank of India (RBI) maintained the repo rate at 5.25% with a neutral stance, a move that aligned with market expectations. • The RBI raised its GDP growth forecast for FY27 to 6.7% and lowered its CPI inflation projection to 5%, citing resilient economic indicators. • Indian markets reacted mixedly to the announcement, with the Sensex climbing nearly 300 points while the Nifty 50 remained flat.

• The European Union is adopting a strategy of "strategic patience" rather than immediate retaliation in response to escalating trade threats from the Trump administration. • Brussels and Berlin are closely coordinating on a U.S. probe into drug pricing, fearing it may serve as a blueprint for future investigations into pharmaceutical policies in France and Italy. • EU trade chief Ditte Juul Jørgensen recently met with German officials to determine a path forward, mirroring a technical approach already used to manage transatlantic disputes over digital policy.

• Amazon and other tech giants are significantly increasing their artificial intelligence investments, with Amazon's capital expenditures soaring by 69 percent. • The industry is shifting from an "asset-light" model to investing in multibillion-dollar data centers, often referred to as "A.I. factories," to develop and deploy advanced systems. • This massive spending spree has triggered mounting concerns and "jitters" among investors regarding the long-term financial sustainability and returns of these investments.

• The Federal Reserve maintained its key interest rate at the July policy meeting, easing Wall Street's concerns regarding a potential rate hike. • Official Warsh signaled a strategic shift away from "forward guidance" and "data dependency," advocating for a more forward-looking approach rather than relying on lagging economic data. • This move matters as it aims to reduce the central bank's role as the primary market driver, with Warsh stating that the Fed "need not always be the center of attention."

• Global AI firms frequently underestimate the capabilities of Chinese AI models, overlooking the strategic infrastructure Beijing has built over several years. • China's success stems from treating AI as a strategic industry, utilizing a combination of government funding, provincial subsidies, tax incentives, and dedicated AI industrial parks. • The Chinese government has implemented a specific regulatory approach that balances deployment oversight without hindering the overall speed of technological development.

• Democrats must flip four Republican-held seats to gain control of the U.S. Senate as primary elections conclude. • Republicans are currently playing a defensive strategy, arguing that voters seeking centrist policies will reject candidates proposing high tax burdens. • The political landscape is categorized into tiers based on the likelihood of seats flipping, utilizing race ratings from the Cook Political Report.

• The United States has maintained South Korea on its foreign exchange (FX) policy monitoring list, as announced in a report released on July 23. • South Korea remains among ten nations under scrutiny, including major economies such as China, Japan, Germany, and Switzerland. • This designation occurs because the U.S. Treasury monitors countries for potential currency manipulation or policies that could unfairly impact international trade.

• The US Treasury included South Korea on its semiannual foreign exchange monitoring list in a report released Thursday. • Despite South Korea's strong economic fundamentals and a large current account surplus, the US noted that the won remains under sustained depreciation pressure. • South Korea remains on the watchlist alongside nine other nations, including China, Japan, Taiwan, Singapore, Vietnam, Germany, Ireland, Switzerland, and Thailand.

• The U.S. Treasury Department announced on Thursday that 10 major trading partners, including China, Japan, and Thailand, will remain on its currency watchlist. • Other nations under monitoring include Germany, Ireland, Singapore, South Korea, Switzerland, Taiwan, and Vietnam, as Washington tracks potentially unfair foreign exchange practices. • The 2025 report specifically highlighted China for its significant lack of transparency regarding its exchange rate policies and practices compared to other partners.

Digital billboards from environmental groups, targeting Labor MPs attending national conference, cancelled with airport stating they are ‘too political’Follow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastConservation groups have questioned why their advertisements targeting Labor politicians were pulled by Adelaide airport for breaking rules on political advertising while others promoting gas and mining kept running.Labor politicians including the prime minister, Anthony Albanese, have been arriving through the airport for this weekend’s ALP national conference. Continue reading...

• The European Central Bank maintained interest rates at 2.25% on Thursday, pausing after its first rate hike in three years occurred in June. • While easing inflation provided a temporary reprieve, renewed conflict in the Middle East has driven up energy prices, leaving a second hike possible for autumn. • Market attention now shifts to the U.S. Federal Reserve's announcement next Wednesday, where futures markets indicate an 89% probability that rates will remain unchanged.

• South Korea’s Kospi index plummeted nearly 5% on Monday as investors sold off stocks linked to artificial intelligence. • In contrast, Hong Kong’s Hang Seng rose 2.1% to 25,105.78 and the Shanghai Composite gained 1.2% to 3,808.39. • Taiwan’s Taiex remained relatively stable, edging down less than 0.1% while TSMC climbed 2% following a 7.3% drop on Friday.

• Republican congressman and Florida gubernatorial candidate Byron Donalds announced legislation on Monday aimed at preventing AI data centers from increasing utility costs for the public. • The proposal would mandate that data centers source all of their electricity and water needs from private providers rather than relying on public water systems or the power grid. • This move reflects a growing political backlash against the rapid expansion of AI infrastructure and its potential strain on shared public resources.

• South Korea's Kospi index plummeted 4.5% as investors aggressively sold off stocks linked to artificial intelligence. • Other Asian markets showed mixed results, with Taiwan's Taiex falling 0.5% and the Shanghai Composite edging 0.1% lower, while Hong Kong's Hang Seng rose 1.7% to 24,984.24. • TSMC shares climbed 1.3% following a previous 7.3% drop triggered by the company's announcement to invest an additional $100 billion in U.S. chipmaking capacity.

• South Korea's Kospi index plummeted nearly 5% as investors aggressively sold off stocks linked to artificial intelligence. • In contrast, Taiwan's Taiex remained relatively stable, edging down less than 0.1% supported by a 2% rise in TSMC shares. • Other regional markets showed strength, with Hong Kong’s Hang Seng rising 2.1% to 25,105.78 and the Shanghai Composite gaining 1.2% to 3,808.39.

• The Supreme Court's conservative majority issued a ruling allowing presidents to fire leaders of independent government regulators for any reason or no reason. • This decision overturns a 91-year-old legal precedent designed to protect agency heads from political pressure and interference. • Critics argue the ruling prioritizes ideology over impartiality, potentially enabling future presidents to abuse executive power.

• The ASX opened higher following the release of weaker US jobs data, which has reduced market expectations for further interest rate hikes. • Commonwealth Bank's John Oh highlighted the significant impact of emerging markets on global growth, noting that China alone drove 42% of net global growth. • Other key contributors to this growth include Bangladesh, India, Indonesia, Malaysia, Pakistan, Sri Lanka, and Vietnam.

• US stock futures for the Dow, Nasdaq, and S&P 500 are trending upward as the market prepares for the final trading sessions of June. • Tech stocks are leading the rebound, with specific gains noted for companies including Arm, Marvell, and Micron. • A ceasefire between the US and Iran has eased immediate fears of Middle East disruptions, though investors remain cautious about the long-term durability of the truce.