FINANCIAL TIMES
-China has proposed a global co-operation organization for artificial intelligence (AI) as it competes with the US for leadership. China's premier, Li Qiang, emphasized the challenges of AI innovation, such as supply of computer chips and talent exchange, and aimed to create a global AI governance framework with broad consensus. He suggested strengthening coordination to create a world AI co-operation organisation, addressing the fragmented global AI governance and promoting a more inclusive AI game.
-Thai political leader Thaksin Shinawatra has strained ties with Cambodian strongman Hun Sen, who they once considered "god brothers." The relationship has deteriorated, leading to clashes on the Thailand-Cambodia border that have resulted in at least 15 deaths. Shinawatra, who is the current leader of the Pheu Thai party, has rejected mediation offers from third countries, citing the need to punish Hun Sen. Analysts argue that this personal feud between Thaksin and Hun Sen, whose son Hun Manet succeeded him as Cambodian prime minister in 2023, is making the conflict more volatile. Thailand and Cambodia have long held territorial claims over ancient temples and surrounding areas along their border. A recent exchange of fire at a contested site led to the death of a Cambodian soldier and sparked nationalist feelings in both countries.
-The Trump administration plans to spend up to $151B on technology for its "Golden Dome" project, aiming to detect and neutralize threats across all phases of flight by ballistic, hypersonic, and cruise missiles. Under the Scalable Homeland Innovative Enterprise Layered Defense (Shield) scheme, the government plans to spend the $151B over a 10-year period on research, development, cyber security, and weapon design and assembly. The project, designed to mimic Israel's Iron Dome infrastructure, is expected to be operational in three years. Independent analysts have cast doubt on the project's proposed budget and timeframe.
-Ukrainian President Volodymyr Zelensky plans to seek European partners to fund higher wages for soldiers fighting Russia's invasion, aiming to boost military recruitment amid growing fatigue in the war-torn country. He also plans to secure an additional seven Patriot air defense systems, following Germany and Norway's confirmation of sending three to Kiev to defend against Russia's missile and drone bombardments. Zelensky believes his service members can be the weapon that protects everyone.
-UK business secretary Jonathan Reynolds has ruled out the idea of a wealth tax to address the growing deficit in Britain's public finances. He criticized the idea as "daft" and urged people to be serious about taxing their wealth, even if it was not in their bank accounts or fine wine or art. Reynolds criticized the "populist" ideas and called for a more serious approach to taxing wealth. Chancellor Rachel Reeves declined to rule out the creation of a wealth tax, stating she would not comment on taxes outside of a Budget.
-The Japanese government stated that the US will only secure 90% of profits from joint investments with Japan if it takes on proportional risk and financing. This comes amid a rift in the Washington and Tokyo’s interpretation of their trade deal, which was announced last week. Japan secured a reduction in reciprocal and automotive tariffs from 25% to 15%, but differing perceptions of the agreement have since emerged.
-Volkswagen's CEO Oliver Blume has pledged significant investments in the US as the company seeks a separate deal with Donald Trump's administration to lower car tariffs below 15%. The German automaker is considering localising Audi production and expanding exports out of America following a €1.3bn hit from Trump's trade war. VW is heavily exposed to the higher levies, with its Audi and Porsche brands reliant on exports from Europe and Mexico for US sales. VW expects an operating return on sales of between 4% and 5% in 2025, down from a previous prediction of 5.5 to 6.5%.
-Hungary's debt service costs, accounting for about 5% of GDP, are the highest in the EU. The rising prices of staples, home prices, and rents have disproportionately affected the poorer, rural, and less-educated citizens, who make up the majority of the country's voter base. Hungary's reliance on Russian energy and closeness to Vladimir Putin have strained relations with the EU, which withheld billions of euros in funding due to Budapest's failure to implement reforms. The premier's overtures to China for investment have not translated into fully operational factories.
-Chinese investment in Hong Kong has reached a record high, with around HK$820B invested this year through the Stock Connect program, linking mainland stock exchanges to Hong Kong's. This surge in investment has helped end a post-Covid slump in Hong Kong's financial markets and highlights the city's increasing dependence on Beijing's policy and Chinese capital. The surge also indicates a growing appetite among Chinese investors to work outside the mainland's tightly controlled financial system, as yields on government bonds have fallen to record lows amid uncertain economic conditions.
-Chinese ecommerce giant JD.com is in "advanced negotiations" to buy German electronics retailer Ceconomy, valued at around €2.2B. The German company is considering a cash offer of €4.60 per share, representing a 23% premium to Ceconomy's closing share price. The acquisition would mark JD.com's renewed effort to expand outside of China, where it faces fierce competition from domestic rivals Alibaba and Meituan. JD.com has previously expressed early-stage interest in Ceconomy. Ceconomy's shares rose 14% following the statement.
-Media Matters, a prominent liberal advocacy group, is facing a crisis due to legal pressure from Elon Musk and investigations by Trump's Federal Trade Commission and Republican state attorneys general. The group is struggling to pay legal fees and has reduced its criticism, reduced its staff, and considered closing entirely. The crisis has led to a decline in its reputation and a potential closure of the organization.
NEW YORK TIMES
-The Trump administration has released a series of reports to undermine the conclusion reached by intelligence agencies that Russia had favored Trump's candidacy in 2016 and sought to improve his chances of winning. The unclassified version of the assessment, made public in January 2017, claimed that President Barack Obama and his team deliberately discredited Trump's election. The administration has combined this case with overheated and attention-grabbing claims, accusing Obama of treason and making criminal referrals about national security officials under Obama. The administration is trying to distract supporters who are angry about its broken promise to release the Jeffr. Comey report.
-The White House has announced that it will release $5.5B in frozen education funds, ending a chaotic month for school districts that had counted on the money with just weeks to go before the start of the school year. The administration had faced growing pressure from within his own party, including from 10 Senate Republicans who had signed a rare public letter urging the White House to release the funds. The Department of Education said it would begin sending the money to states next week. The Department of Education will begin sending the money to states next week. The release comes after a surprise delay from the Trump administration.
-President Trump's current visit to Scotland, nine years after Britain voted to leave the European Union, has been compared to a previous visit when he correctly predicted that the political forces driving Brexit would go beyond the UK. However, most Britons now believe Brexit was a mistake. Trump's second-term presidency has returned to his golf resort in Scotland, where he claimed that the political forces driving Brexit went beyond a single country. Five months after that visit, Trump captured the White House, playing to anxieties about immigration in ways that echoed the "Vote Leave" campaign.
-President Trump has expressed concerns over the possibility of pardoning Ghislaine Maxwell, an associate of Jeffrey Epstein's, who is serving a 20-year sentence for sex trafficking in Florida. The Justice Department officials interviewed Maxwell, who was once a fixer for the financier Jeffrey Epstein, who is now imprisoned on charges of sex trafficking. The plane's banner read, "Trump and Bondi are protecting predators." This accusation echoed concerns on the ground as Todd Blanche, Attorney General Pam Bondi's top deputy, concluded a second extraordinary day of interviews with Maxwell. The accusation summed up concerns on the ground as Maxwell's case continues to be investigated by the FBI and the Justice Department. The possibility of a pardon remains a topic of debate among the public.
-Packaged food companies are struggling to adjust and profit as consumers lose their appetite, leading to a shift in tastes, waistlines, and wallets. The big packaged food brands that once dominated American pantries and refrigerators are now struggling as consumers spend less on brand-name cookies, spaghetti sauce, and cream cheese. The companies are grappling with various stressors, such as higher food prices, eschewing highly processed foods for healthier, more natural items, and the continued rise of weight-loss drugs like Ozempic.
-Media Matters, a prominent liberal advocacy group, is facing a crisis due to legal pressure from Elon Musk and investigations by Trump's Federal Trade Commission and Republican state attorneys general. The group is struggling to pay legal fees and has reduced its criticism, reduced its staff, and considered closing entirely. The crisis has led to a decline in its reputation and a potential closure of the organization.
NEW YORK POST
-Ghislaine Maxwell, an associate of the late pedophile Jeffrey Epstein, has given information about "100 different people" linked to Epstein during a two-day interrogation led by Deputy Attorney General Todd Blanche. Maxwell, currently serving a 20-year sentence, was granted limited immunity during the interrogation. Her attorney, David Oscar Markus, said that this was the first opportunity she's ever been given to answer questions about Epstein's past. Maxwell declined to plead the Fifth Amendment and is expected to answer all questions during the interrogation.
-President Trump has expressed his belief that Fed Chair Jerome Powell is ready to start slashing interest rates. Trump and Powell had a good meeting on interest rates, and Powell expressed his confidence in the country's well-being. Trump believes that this conversation could lead to Powell recommending lower rates. The Fed declined to comment on Trump's optimism for a rate cut. The Fed is expected to hold a two-day meeting next week before deciding whether to slash the rate from its current range between 4.25% and 4.5%. Powell has said the Fed should wait for more data before adjusting rates due to concerns over the impact of Trump's tariffs on inflation. It seems more likely that the Fed will cut rates after its September meeting, with 62.3% odds, according to CME FedWatch. Trump has also stated that he does not intend to fire Powell, as he has frequently suggested he would.