HFA : Commodity Hedge Funds Have Strong July With 5% Return

Commodity Hedge Funds Have Strong July With 5% Return

Global fund administrator Citco has published its Monthly Hedge Fund Update for July 2026. The report looks at hedge fund performance, investor flows and operational activity across Citco's client base, offering a snapshot of how the industry entered the third quarter.

Ky findings are:

Hedge fund performance dipped in July, with a weighted average return of -0.8%, following three consecutive months of gains. Despite this, more than half of funds still posted positive returns and the YTD weighted average return remained at 9.7%.

Performance varied significantly by strategy, with commodities returning 5% and global macro 1%, while equities fell 2.7% and fixed income arbitrage declined 1.2%.


nvestor demand remained strong despite the performance decline, with hedge funds recording $12bn of net inflows in July, the second consecutive month above $10bn, taking YTD net inflows to $86.9bn and extending the run of positive monthly flows to seven months.


Multi-strategy funds continued to attract the most capital, recording another $5.3bn of net inflows in July and taking their 2026 total to $49.2bn. No strategy category recorded net outflows during the month.

Europe remained the leading region for flows, attracting $5.9bn in July, compared with $4.6bn for the Americas and $1.6bn for Asia. Meanwhile, funds with more than $10bn of assets under administration accounted for $6.5bn of monthly net inflows.

Looking at assets under administration (AUA), almost every size category posted losses. Funds with AUA under $200m returned -1.6%, the weakest of the group, followed by the $1bn-$3bn category at -1.2%. The $200m- $500m category returned -0.9%, while the largest funds with more than $3bn of AUA came in at -0.7%. On the positive side, funds with AUA between $500m-$1bn were in the green, at 0.2%., the report notes.

Operational activity also remained elevated, with treasury payments reaching a record 74,303 in July, up 22% year-on-year. Trade volumes softened 4.2% month-on-month, although straight-through processing rates remained high at 98.1%.

Taken together, the data suggests that while hedge fund performance softened at the start of Q3, investor appetite remains resilient, particularly for multi-strategy and larger funds, while underlying operational activity continues to run at high levels.

FT : London’s cabbies prepare to battle the robotaxis Some drivers are consideri

London’s cabbies prepare to battle the robotaxis
Some drivers are considering skulduggery in an attempt to show the limits of autonomous vehicles
Mohamed Mohamed qualified as one of London’s black cab drivers in 2014 — just as Uber’s expansion began to challenge their dominance in the capital.

“Ever since then we’ve been fighting,” he said.

The city’s world-famous black cab drivers have lost almost a third of their income to private-hire competition, but they have survived, not least, Mohamed argued, “because we’re more proficient and we can get people there quicker”.

Now, cabbies and private-hire drivers alike are bracing for a new wave of technological change: the arrival of robotaxis.

Waymo, owned by Alphabet, and Wayve, a UK start-up backed by Uber, are racing to make London their European launch pad for paid, driverless services.

The UK government has been supportive. “History tells us . . . that innovation just creates new opportunities,” the business secretary Jonathan Reynolds told the FT last month. “The way to keep good jobs is to embrace change.”

Roughly six months after Waymo’s vehicles began cruising the streets in testing mode, drivers view them with scorn, bravado and trepidation.

Some even admit they will be doing their best to lead their new competitors astray.

“You could imagine some gameplay . . . a bit of skulduggery,” said one.

They pointed to the potential to force autonomous vehicles (AVs) to give way in heavy traffic, sabotage their sensors, ensure that they became stranded in box junctions where they would be fined, or even to lodge insurance claims asserting “it drove into me!” after any collision.

Wayve said its testing fleet has not seen any evidence of misbehaviour or sabotage from cab drivers.

“We have built [Wayve’s automated] driver to be very humanlike,” said Alex Kendall, the company’s chief executive.

“By not driving like a rigid robot but driving in a natural and humanlike way, I hope it can coexist with other road users in a very seamless way.”


Some taxi drivers are unconvinced that the robotaxis will fit in. “I don’t know how they are going to work in London,” said Mohamed, citing the city’s narrow streets, reckless pedestrians and unwritten understandings on who has right of way.

Drivers can nudge through the rush-hour stream of commuters at a zebra crossing by a City station, he noted. “These AVs will not move . . . they will be stuck there till next Christmas!”

“They go very slowly!” said Suzanne Sullivan, who leads recruitment for the Licensed Taxi Drivers’ Association and contends that sitting the notoriously tough Knowledge test to qualify as a black cab driver could still be a better bet for young people than taking on student debt.

“Most of my customers in the summer months are tourists — all they want to do is chat to you about London,” she added, arguing that the appeal of a driverless service would be limited.

Even so, many taxi drivers are deeply apprehensive about their future — especially those who work mainly through Uber, which is already inviting its customers to join a “list of interest” to be matched with a Wayve robocab once the service is launched.

Kola Olalekan, a branch secretary at the GMB union, which represents thousands of private-hire drivers, said he is “baffled” by the decision to start in London, given the city’s geography.

Yet provided there are no early safety mishaps that deter customers, he argued that the venture would succeed because of the investment the companies have committed. It will eventually lead to a “massive” loss of jobs, he predicted.

Research by Carl Benedikt Frey, an associate professor at the Oxford Internet Institute, and co-authors showed that, when Uber had entered US cities, taxi drivers’ earnings fell about 10 per cent because of increased competition.

“Initially, I would expect something similar from robotaxis, and indeed more competition, fewer rides and pressure on earnings rather than mass unemployment has been the US experience so far,” Frey said.

“But as autonomous vehicles become cheaper, safer and more widely available, outright displacement of drivers looks highly likely.”

Jack Stilgoe, professor in science and technology studies at University College London, said it is uncertain how the labour market would be hit, but he expected robotaxis to cause less disruption than the arrival of private-hire companies such as Uber.

“The people selling robotaxis want us to believe that their technology will inevitably take over from human driving . . . The reality will be slower and more uneven,” he added.

“Where robotaxis have started to scale, we’ve seen lots of hidden labour — in maintaining, cleaning and remotely operating the vehicles. Companies don’t want to talk much about these jobs, as they spoil the illusion of automation.”

Uber said human drivers and AVs “are both expected to grow side by side for quite some time” but acknowledged “autonomous mobility will impact workers, riders and the communities they live in”.

A “hybrid” ride-hailing network that includes robotaxis and regular cars “ensures a smoother transition for drivers”, the company added.

In London, jobs have been advertised for private-hire drivers to support the rollout by patrolling the streets on electric bicycles, retrieving autonomous vehicles if they become stuck. 


Since Uber’s arrival, the number of licensed taxis that can be hailed off the street has fallen, but this has been more than compensated for by a surge in private-hire vehicles, which must be booked in advance, for example by an app.

Official statistics show about 124,000 taxi drivers held licences in London in 2024, the vast majority working in private hire.

“Already we are feeling the pinch and drivers generally suspect cutting down of fares is being used to fund the project,” Olalekan said. “Earnings are dropping already — drivers are not going to commit to hiring new vehicles.”

Today Uber drivers often receive less than half the price of some rides, with the company keeping the majority.

Ali Haydor, a fellow GMB rep who drives for Uber in and around Brighton, has decided to keep his ageing vehicle rather than renew it and commit to a new five-year loan. He knows colleagues who are making the same decision or opting for more expensive rental agreements that leave them free to hand their car back with a month’s notice.

“Drivers can see which way it’s going,” Haydor said, adding that “the early impact will be more on private hire”. He said it was harder to make a living than when he started driving because nightlife has declined and dynamic pricing has been adopted.

Uber said: “The vast majority of total fares continue to go exactly where they belong: into drivers’ pockets . . . Recent [UK] VAT increases could make it appear that the driver is taking home less of the total fare, but that money is going to [HM Revenue & Customs] and not to Uber.”

It added: “Every driver in the UK is guaranteed to earn at least the national living wage.”

Waymo said it has “tremendous respect for London’s black cab industry and the expertise of its drivers” and called robotaxis “a complementary option”.

Wayve’s Kendall said his company and Uber are not planning a “big bang” launch.

“It is still such early days for our industry,” he said, with fewer than 10,000 automated vehicles on the road globally compared with 10mn Uber drivers. “It’s a drop in the ocean in terms of global transportation today.”

The GMB is pressing Uber to draw on the pool of existing drivers for the people who will be needed to clean and refuel AVs and to act as remote operators. But it is also advising its members to switch jobs rather than drifting into illegal, cash-in-hand work.

Several drivers are studying for the Knowledge, viewing black cabs as more secure, Olalekan said.

That is certainly the view of black cab drivers who spoke to the FT at the LTDA’s south London headquarters — reeling off the human attributes robotaxis would not be able to match.

Drivers retrieve lost property, carry bags for disabled passengers, clean up when passengers are sick and police their behaviour — for example, calling out customers who leave food wrappers behind them.

A YouGov poll found women were more opposed than men to the introduction of robotaxis.

Lloyd Baldwin, a veteran black cab driver, rejected the idea that lone women might feel safer with a driverless service.

In the back of a cab, “it all happens — punch-ups, love-ins, arguments,” he said. “When I was working at night, if I had a lone female, I would pull up outside her house, watch her to the front door and I wouldn’t leave till the door was closed. How does that work with an AV?”

FT : Art market money laundering rules catch interior designers and toy-soldier

Art market money laundering rules catch interior designers and toy-soldier sellers
Regulations designed to stop criminals washing millions of pounds through high-value art sales are ensnaring small businesses

In a shop on a smart arcade in central London, ranks of toy soldiers fire at each other and the miniature cavalry charge, while three bronze busts of Sir Winston Churchill resolutely stare on.

These are standard wares for The Armoury of St James’s, which sells military antiques such as portraits, silverware and sculptures, as well as regimental brooches alongside the toy soldiers.

But last year The Armoury met a foe it could not defeat: the British tax authority, its weapon anti-money laundering regulations. Bathgate Ltd, the company behind The Armoury, was fined £5,000 following an audit because it had registered the wrong employee as its person responsible for the regulations.

“We’d always been willing to engage with [HM Revenue & Customs] but they came round and tried to catch us out, which they did,” said manager James Rawlins. “We did our best but our best wasn’t good enough.”

The UK anti-money laundering (AML) rules relating to the art trade, designed to prevent criminals laundering millions of pounds through masterpieces sold by auction houses and galleries, have also been catching small businesses including the designers of yacht interiors, publishers of artists’ books and Bathgate.

Those who have been fined told the FT that the rules were too complex for small businesses to fully grasp and had not been promoted clearly enough.

They accused HMRC of auditing less-resourced companies — “low-hanging fruit”, according to one of Rawlins’ colleagues. There is no official regulatory body for the art market that could provide a blanket dissemination of rules.

HMRC said recent changes, such as refining due diligence requirements, “have made the regulations clearer and easier to comply with” and that it provided “extensive guidance and tools to support businesses”, such as a film about money laundering in the art market. The agency added that it took “a targeted, evidence-based approach to compliance”.

Art galleries, art advisers, auction houses, interior designers and intermediaries have to register with HMRC as art market participants (AMPs) if they buy or sell a work of art worth £10,000 or more in a single or a series of linked transactions. Bathgate said it had handled three such transactions in five years.

Among AMPs, the most common breach of the rules was a business not registering by HMRC’s deadline, but other breaches included failing to tell HMRC about material changes, to keep appropriate records and to train staff to make proper checks.

DYS44 Art Gallery in London was fined nearly £160,000 for multiple breaches, but half of all fines have been between £1,250 and £3,500. All of the companies in breach are named on a government website.

Cesare Lampronti of DYS44 Art Gallery, which is now in liquidation, said: “The fine that my company received is linked purely to lacks in our former procedures, which we have since corrected, and not to engaging with criminals or money launderers.”

Rena Neville, director of Corinth Consulting, which specialises in advising the art trade on AML, said businesses that did not think of themselves as AMPs needed to be particularly careful, for example interior designers, who “are often helping clients buy works of art for homes that they’ve designed”.

Neville added that it was important for AMPs to ask “who they’re dealing with and where the money is coming from . . . given the current world of sanctions and wars”. But she said there needed to be “more flexibility” and a “proportionate risk-based response” from HMRC.

Katherine Elworthy, chief operating officer of the British Institute of Interior Design, said it had published stories and social media posts and run a webinar to give its members “practical guidance” about the AML rules.

But because the field consisted mostly of micro, small and medium-sized businesses already grappling with other new rules relating to fire safety and building safety, “it is a real challenge to keep on top of everything”, she said.

Elworthy added that both HMRC and her organisation “could be doing more to promote the rules to the profession” and that the institute was planning a campaign for later this year to highlight “the risks designers can be exposed to if they don’t take the proper steps to comply”.

Gertrude Art Technologies, an online art sales platform, was fined £1,650 for not registering in time. Chief executive Will Jarvis said he had taken over Gertrude during a time of crisis and by the time he had dealt with the most urgent issues, it was too late to register.

He said he had a four-hour audit from HMRC, which was “very jarring” given the small size of the company. The fine had made it “tempting almost to reduce the listings so there are not any [above £10,000] which push us over into that box of eligibility . . . Absolutely it’s a disincentive,” he said.

“I think [HMRC is] looking at the wrong part of the art market if they’re coming to people like me,” Jarvis added.

Neville, of Corinth Consultancy, said the complexity of the regulations was causing some AMPs to alter or wind down their business: “Quite a few elderly art adviser-dealers [have] said, ‘It’s too much, we’re giving up.’ Some said they’ll stop selling paintings, they’ll sell other objects.”

Back at The Armoury, Rawlins and colleagues bustle around their office above the shop, while downstairs the ranks of toy soldiers, taking aim at their enemies, live to fight another day.

Elctrek : Tesla confirms Semi electric truck is coming to Europe, reveal at IAA

Tesla confirms Semi electric truck is coming to Europe, reveal at IAA


Tesla confirmed that its Semi electric truck is coming to Europe, and that it will reveal the specs and launch details next month at IAA Transportation, the continent’s largest commercial vehicle show.

The Tesla Semi account posted that “specs & launch details for Semi in Europe” will be “unveiled at IAA Transportation in Hannover, Germany,” which runs September 15-20. A Semi will be on display at the show.

What Tesla actually announced
The announcement is short on detail by design. Tesla isn’t giving European range figures, pricing, or an on-sale date yet. It’s committing to bring the truck to Hannover and put numbers on the board there.

Tesla has been publicly gearing up to sell the Semi in Europe since last year, and at IAA 2024 it brought a truck but said almost nothing about an actual market plan. This time it’s framing Hannover as the launch venue, which is the clearest signal yet that Europe is happening rather than being perpetually “coming.”

What Europe will get, at least mechanically, is the truck Tesla is already building in Nevada. Tesla revealed final specs in February for two trims: a Standard Range rated at 325 miles (523 km) and a Long Range at 500 miles (800 km). Both run an 800-kW tri-motor drivetrain rated at 1,072 hp and charge at up to 1.2-MW Megacharger speeds.

Tesla is quoting $290,000 for the Long Range Semi and roughly $260,000 for the Standard Range in the US — the lowest-priced Class 8 battery-electric tractor on that market. What those trucks cost in euros, and where they’ll be built for Europe, are open questions the reveal will need to answer.

Production is finally real
A European launch gives some credibility to Tesla finally achieving volume production of the long-delayed truck.

Tesla rolled the first Semi off its high-volume production line at Gigafactory Nevada in April. That dedicated 1.7-million-square-foot plant is designed for 50,000 trucks a year, and it’s what turned the Semi from a nine-year “coming soon” into something fleets can order.

Demand has followed the production. This week, Swedish freight-tech company Einride placed the largest Semi order yet at 500 trucks — though notably for its North American fleet, not Europe. PepsiCo now runs close to 100 Semis in California.

Tesla is late to a market Europe already electrified
Mercedes-Benz’s eActros 600, a long-haul electric truck with about 500 km of range and a 600-kWh battery, is already on the road in 15 European countries. Volvo Trucks, the region’s electric heavy-truck sales leader, unveiled a new generation of electric HGVs in April. MAN, Scania, Renault Trucks, and DAF all have battery-electric Class 8 tractors in production or delivery.

These aren’t concepts. European fleets have been buying and running electric long-haul trucks from domestic brands with established service networks, homologation, and dealer support — the exact infrastructure Tesla still has to build out on the continent.

But in the US at least, Tesla appears to have cost and range advantages. At the unveiling at IAA next month, we should see if these advantages carry over to Europe.

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Elctrek : Tesla says FSD v15 is a ‘step-change,’ Optimus sells in 2027

Tesla says FSD v15 is a ‘step-change,’ Optimus sells in 2027

Tesla laid out an updated timeline for Full Self-Driving, its Cybercab, and the Optimus robot in a recent meeting with JPMorgan at its Fremont factory. The bank walked away with claims that FSD v15 is a “step-change,” that today’s HW4 computer can handle unsupervised driving, and that Optimus could go on sale to outside buyers as soon as the second half of 2027.

Most of it repeats promises Tesla has made, and missed, before.

FSD v15: a “step-change,” according to Tesla
Tesla told JPMorgan that FSD v15 is a major jump in capability, built on seven “core technologies,” with about 40% of them already running in the robotaxi fleet in Austin. Early feedback is “encouraging,” per the note.

Tesla shipped FSD v14 in October 2025, its first big update in roughly a year, and Elon Musk called v14.3 the “last piece of the puzzle” back in April. So v15 is at least the third version in a row pitched as the one that finally gets there.

And “there” is the same place Tesla has been selling since 2016: unsupervised Full Self-Driving on a car you own. Every version has been a “step-change.” Customers are still supervising.

HW4 can handle it — the same thing Tesla said about HW3
Tesla told the bank that its current HW4 computer, which it calls AI4, is enough to run v15 and unsupervised FSD. At the same time, Tesla is rolling out AI4.5, a new version of the chip with roughly 10% more compute and about twice the memory.

Tesla made that exact promise about the previous computer, HW3, for years before quietly walking it back. HW3 cars are now getting a stripped-down FSD v14 “Lite” instead of the real thing, and we recently reported on rising HW3 computer failures tied to that software.

There’s also the chip roadmap. Tesla delayed its next-gen AI5 chip to mid-2027 and confirmed the Cybercab would launch on AI4, or now AI4.5? The goalpost for “the hardware that finally does unsupervised driving” keeps sliding to the next chip.

Cybercab scaling: confidence, not cars
On the robotaxi program, Tesla told JPMorgan it’s confident it can scale the Cybercab in the near term. It’s deliberately holding back further Model Y robotaxi conversions because of that confidence, using an “unboxed” manufacturing process, and targeting a long-run cost of around $0.30 per mile, with fleet expansion accelerating from late 2026 into early 2027. If safety levels can allow it, which has been the case more than a year into the Robotaxi program.

Tesla’s actual driverless service in Austin still runs on a handful of cars more than a year after launch. And there are still frequent issues with Tesla’s Robotaxis despite the extremely low mileage. Tesla recently disclosed only 380,000 unsupervised miles since launching.

For comparison, Waymo is at over 200 million.

Meanwhile, Tesla is already mass-producing a Cybercab it can’t legally sell or drive itself. “Confidence in scaling” and a scaled service are not the same thing.

Optimus Gen 3: on sale in 2027, reveal still MIA
Tesla also told JPMorgan that the Optimus Gen 3 design is finalized, the supply chain is “essentially locked in,” and a production line is going into the old Model S/X facility in Fremont. External commercial sales could start “as early as” the second half of 2027, with long-term capacity ambitions of about 1 million units at Fremont and 10 million in Texas.

Two things undercut that. Tesla has pushed the Gen 3 reveal repeatedly, and Musk himself admitted no Optimus robots are doing useful work at Tesla after claiming otherwise.

Musk had previously claimed that Tesla would have 5,000 Optimus robots last year. The reality is still only a few robots for testing.

So the pitch is: a robot Tesla hasn’t shown, that can’t yet do a job inside its own factory, on sale to outside customers in under two years. Sure.

The analyst relaying all this
Worth knowing who’s carrying the message. JPMorgan replaced Ryan Brinkman, one of Wall Street’s longest-running Tesla bears, with Rajat Gupta, who upgraded the stock to Neutral and set a price target around $445. Gupta came to Tesla off a bullish call on Carvana. The note mostly relays Tesla’s own guidance from the Fremont visit without much pushback.

Electrek’s Take
The useful part of this note isn’t JPMorgan’s rating. It’s the rare, specific look at what Tesla is telling investors behind closed doors at Fremont right now. Read it that way, and every line is a Tesla claim, filtered through an analyst who just sell stocks.

Stack the four claims against Tesla’s own record and the pattern is hard to miss. FSD v15 is a “step-change,” just like v14 and v13. HW4 does unsupervised driving, just like HW3 was supposed to. The Cybercab is about to scale, into a service, Robotaxi, that has been stuck in neutral for a year. Optimus goes on sale in 2027, despite Tesla showing nothing about the program in half a year.

We’ll believe unsupervised FSD on HW4 when a customer car does it, and Tesla takes responsibility, which might never happen.

Reuters : China pledges timely fiscal support to bolster growth

China pledges timely fiscal support to bolster growth

BEIJING, Aug 21 (Reuters) - China will implement additional fiscal policy measures in response to economic developments, Vice Finance Minister Liao ​Min said on Friday, as growth slows in the world's second-biggest ‌economy.

China will maintain the continuity and stability of macroeconomic policies and plan and allocate fiscal resources over a longer time horizon, Liao told a press conference.

China will also step up coordination between fiscal, monetary and ​industrial policies and refine its policy toolkit as economic conditions evolve, Liao ​said.

He said authorities were preparing new fiscal-financial support measures for the second half of this year, while working with the central bank and regulators to put policy coordination ​on a more institutional footing. He did not provide details.

China's leaders pledged ​at July's Politburo meeting to support the slowing economy by accelerating fiscal spending on ‌already-budgeted ⁠infrastructure projects for the remainder of the year, rather than planning major new stimulus measures.

The central bank said earlier this month it would maintain an appropriately loose monetary stance and roll out practical, effective measures ​as needed, but ​stopped short of ⁠signalling explicit cuts to policy rates or banks' reserve-requirement ratio.

Liao said China would deepen fiscal and tax ​reforms, improve the budget management system, and build a ​clearer framework ⁠for central-local fiscal relations, with more clearly defined responsibilities and more balanced regional development.

Preventing local governments from taking on new hidden debt must remain ⁠an "iron ​discipline", he said, adding that fiscal risks ​in key areas, particularly local government debt, should be steadily reduced.

Reuters - US says it will impose 'toughest sanctions in history' on Iran

US says it will impose 'toughest sanctions in history' on Iran

Bessent says more detail to come on Monday
US seeks cooperation from China, which says sanctions don't help
Iran condemns sanctions

DUBAI/WASHINGTON, Aug 21 (Reuters) - U.S. Treasury chief Scott Bessent said the United States will impose "the toughest sanctions in history" on Iran, a move he suggested would lessen the need for new major military operations.

Bessent's ​comments on Thursday followed President Donald Trump's threat a day earlier of "Economic Warfare" and warning of economic consequences against any country that provided "any type ‌of lifeline to Iran." Bessent promised details next week.

Oil prices rose to more than a three-week high on Thursday following those U.S. threats of financial penalties aimed at forcing an end to a nearly six-month-old war that has stranded millions of barrels of Middle Eastern oil.

"I'm not sure why oil has popped up on this," Bessent told CNBC. "If we are doing the maximum economic pressure, then that ​means that likely there will not be a large-scale kinetic restart," he said, using a term referring to military force.

Thousands have been killed in the conflict, ​which drew in Gulf nations and shocked markets as Iran flexed its ability to curb shipping through the Strait of Hormuz — a ⁠waterway that carried about a fifth of all traded oil before February.

The U.S. and Iran have twice announced ceasefire deals, in April and June, aiming to restore the ​free flow of shipping through Hormuz on a path towards ending the conflict, but both quickly crumbled.

SANCTIONS DETAIL TO COME
Iran has weathered near-continuous, punishing economic sanctions for nearly 50 ​years, since the Islamic Revolution of 1979.

Before Bessent spoke, Iran's foreign ministry said it condemned U.S. economic and trade sanctions, calling them "economic terrorism" that would not "create even the slightest hesitation in Iranians’ determination to safeguard Iran’s independence, dignity and national sovereignty."

Bessent told CNBC he would share more details on the latest package and "talk about exactly what we're going to do" on Iran at a press conference on ​Monday.

"It is a one-two punch. We have the blockade (on Iran), and we are going to have the toughest sanctions in history," he added, referring to a U.S. naval ​blockade imposed on Iran in April and paused for a month in mid-June.

"It is going to work in Iran and we are going to collapse this regime. It is time for our ‌allies and the ⁠rest of the world to make a decision," he said.

China buys more than 80% of Iran's shipped oil, according to 2025 data from analytics firm Kpler, but engaging in further economic warfare with China, a major exporter to the U.S. including vital rare-earth minerals, risks retaliation against Washington.

When asked if the United States could target China for doing business with Iran, Bessent said many conversations were best to have in private.

"Keep in mind that the Chinese get 50% (of their) energy... from the Gulf. So it would do them a ​big service to get with the program," ​he said.

China's embassy in Washington said "sanctions ⁠and pressure do not help resolve the problem."

"China calls on the relevant parties to take responsible actions and resolve the issue through political and diplomatic means," according to an embassy spokesperson.

'TREMENDOUS ECONOMIC CONSEQUENCES'
In a social media message on Wednesday, Trump promised "Economic Warfare and Isolation ​on an unprecedented scale." He did not say what specific steps the U.S. would take or name any country, though ​the warning would appear to ⁠extend to U.S. allies that have helped mediate peace talks.

"ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences," Trump wrote.

Trump, however, is under pressure at home to end the unpopular war, with high fuel prices dragging down his approval ratings and potentially threatening his ⁠party's control of ​Congress in midterm elections in November.

Iranian Foreign Minister Abbas Araqchi called Trump's comments an attempt to divert ​American public opinion from domestic financial problems, including record debt and rising interest rates.

He said Washington's insistence on policies he described as failed would bring further failures and alienate Iranians.

Trump's social media threats and announcements are ​not always implemented as written.

Reporting by Jana Choukeir in Dubai, Susan Heavey in Washington and Reuters bureaux; Writing by Alex Richardson, Andrew Heavens and Costas Pitas; Editing by Lincoln Feast

NYT : Did Bessent Put the Fed in a Bind? The Treasury Department’s plan for bond

Did Bessent Put the Fed in a Bind?
The Treasury Department’s plan for bond interventions has calmed markets. But Wall Street is worried about the fallout for inflation and more.

Andrew here. Treasury Secretary Scott Bessent spent his career on Wall Street, and now he’s using that trader mind-set in Washington to financially engineer lower interest rates. The unconventional move is raising plenty of questions.

Was it political? Probably. Will it work? Maybe in the short term. The real story is what happens down the road. We unpack the potential long-term consequences below.

Possible fallout from the Bessent buyback
Global bond markets finally look tame on Thursday, after the Treasury Department unexpectedly unveiled a stunning plan to buy back billions in long-dated government bonds.

But that calm may mask new tensions between the Trump administration and the Fed, while market watchers warn that the intervention could backfire, Bernhard Warner reports.

The effect of the buyback, not its size, matters. The Treasury Department will at least double repurchases of longer-dated Treasuries, spending up to $4 billion at a time, at several points between Sept. 9 and Nov. 4, the day after Election Day in the U.S.

Traders responded by buying up 30-year Treasury bonds, pushing yields lower on Wednesday. The dollar sunk and stocks barely budged, as investors flooded into gold and cryptocurrencies.

Some analysts don’t regard the scale of the operation as significant. “I think it’s just jawboning to get market yields lower,” Lawrence Gillum, the chief fixed income strategist for LPL Financial, told DealBook, calling it a “temporary” fix.

But the message could have a more enduring effect. Treasury Secretary Scott Bessent put traders on notice that the Trump administration would intervene in the markets to lower borrowing costs.

After efforts to prop up Argentina’s currency market and the struggling Japanese yen, Bessent, a former hedge fund chief and currency trader, has been called the most “interventionist” Treasury secretary in decades.

Some see a political motive in the timing. Joe Brusuelas, the chief economist at the audit and consulting firm RSM US, wrote to investors on Wednesday that Bessent’s “interest is purely short term and is organized around the upcoming election and not a return to price stability.”

Worth noting: The Treasury does this kind of maneuver from time to time, but usually at scheduled intervals. In 2024, some economists and Republican lawmakers criticized Janet Yellen, Bessent’s predecessor during the Biden administration, for intervening in the Treasury market ahead of the general election.

Market observers are wondering if Treasury market interventions will become a permanent feature of American politics. Or, at the least, whether they’ll become more frequent so long as Congress fails to address ballooning federal deficits.

The more immediate issue could involve Bessent and Kevin Warsh, Trump’s handpicked Fed chairman. Bessent’s desire to lower yields (to bring down prices) appears to be at odds with the Fed’s growing focus, raising rates to bring down inflation.

“It probably means more volatility ahead within the rates market,” Gillum told DealBook.

The Information : Nvidia Plots China Comeback With New AI Chip

Nvidia Plots China Comeback With New AI Chip

The Takeaway
  • Nvidia to ship new U.S.-compliant AI chip to Chinese customers.
  • LPU variant chip complies with U.S. export rules for China.
  • Nvidia targets China’s inference chip shortage despite local competition.

Nvidia plans to begin small-batch shipments of an AI chip specially tailored for Chinese customers by the end of the year, according to two employees, in what would represent a new route to China for the company.

Several Chinese customers have already placed orders for the chip, which is a variant of Nvidia’s language processing unit. The LPU is a new chip developed by Nvidia with technologies licensed from Groq that works alongside Nvidia’s graphics processing units to speed up an AI chatbot’s response times.

The chip complies with U.S. export control rules, according to the employees, but it remains to be seen whether Beijing will allow these orders to go through. The new chip would compete with multiple homegrown chips designed for inference.

Nvidia’s development of a China-specific LPU shows the company hasn’t given up on the China market, despite restrictions imposed by both the U.S. and Chinese governments. The Trump administration has barred Nvidia from selling its most advanced chips to China, though it now permits sales of an older-generation chip, the H200, under strict conditions. Beijing, meanwhile, has blocked or discouraged purchases of even some Nvidia chips Washington has cleared for export. In a May interview with CNBC, Nvidia CEO Jensen Huang said the company had “largely conceded” China’s AI chip market to local chip company Huawei Technologies.

Nvidia unveiled the LPU at the company’s annual GTC conference in March. Huang said then Nvidia would begin shipping LPU to customers in the third quarter. Customers for the LPU include OpenAI and some neocloud providers, or companies that rent computing power built around AI chips.

Nvidia originally designed the LPU to work alongside Rubin graphics processing units as part of Vera Rubin, its next-generation system for running AI models. The GPUs handle most of the model’s workload, while the LPU speeds up parts of the process used to generate each response. Software determines how that work is divided between the two types of chips.

Because Vera Rubin cannot be sold in China, Nvidia modified that software so the LPU can instead work alongside other processors available in the country. The LPU itself didn’t need to be redesigned or have its computing power reduced because it already complies with U.S. export control rules, the employees said.

Before this story published, Nvidia did not respond to repeated requests for a comment, over several days. After the story was published, Nvidia issued a statement saying: “We have no LPU sales in the China market today, and no China-specific LPU product in our roadmap.”

Reuters reported in March that Nvidia was preparing LPU chips for China. Huang subsequently denied the plan in an interview with Punchbowl.

Inference Shortage

The LPU would compete head-on with Huawei’s Ascend 950DT, which is designed for inference and is due to ship in large volumes later this year. Still, demand for inference chips is so strong that there is plenty of unmet demand, which means Nvidia could still seize a share of the market if Beijing allows it.

More importantly, the current supply shortage gives Nvidia a critical window to win back some Chinese customers before they switch entirely to building their AI systems around Chinese silicon.

The inference chip shortage has been affecting Chinese AI labs. Moonshot AI halted new customer subscription sign-ups shortly after releasing the Kimi K3 model as demand overwhelmed the company’s computing capacity. DeepSeek this month significantly raised the prices developers pay to access its latest V4 models.

China’s largest tech companies have tied up much of the production available from domestic chip designers this year and are already securing orders for 2027, according to two people familiar with the situation.

The H200 Flip-Flop

Beijing previously blocked domestic companies from buying Nvidia’s H20, a less powerful processor designed for China, and restricted access to the more capable H200. Chinese officials recently told companies they plan to allow some H200 purchases. Some Chinese companies have since begun receiving the chips in small batches, with deliveries arriving gradually, according to one of the employees.

Yet the blockade has proved porous. Some Chinese companies have obtained Beijing-banned H200s and Nvidia gaming chips through resellers and other intermediaries, according to three people with direct knowledge of the situation, underscoring how difficult it is to suppress demand while the country remains short of computing power.

Nvidia has kept a substantial supply ready. Amkor Technology, a U.S. company that finishes and assembles chips for installation in computers, completed that work for more than 1 million H200s in the second quarter, according to one of the two Nvidia employees. Amkor will continue receiving the main parts of the processors from Taiwan Semiconductor Manufacturing Co., the person added.

Nvidia is separately developing at least two new gaming chips for China, according to one of the employees. To stay within U.S. export limits, the chips will offer less computing power than its leading products. Though intended for gamers, such chips are often modified by Chinese companies to run AI models, The Information reported.

TechCrunch : ChatGPT can now send texts for you with new Apple Messages plug-in

ChatGPT can now send texts for you with new Apple Messages plug-in
If you’ve ever wanted to share all of your digital conversations with OpenAI, we have good news for you: The AI lab has just launched an Apple Messages plug-in for ChatGPT, allowing interested users to connect their Messages inbox with the chatbot.

The benefits of doing this, OpenAI argues, are numerous. Users can use the plug-in to sort, analyze, or edit their messages directly from ChatGPT. The plug-in also works with Codex and ChatGPT Work, so users can use it professionally, not just personally.

A brief commercial advertising the new plug-in shows a user asking the chatbot to suggest follow-up messages to their contacts based on the messages received the previous day.

You can also ask ChatGPT to delete messages for you, draft and send messages on your behalf, or search for information buried deep in your message history.

As with most things related to AI, this new feature raises some privacy questions. OpenAI told Bloomberg that the plug-in runs locally on a user’s machine and that it “doesn’t create an index of all someone’s messages.” Still, the specifics of what that means aren’t immediately clear. TechCrunch has reached out to OpenAI for more information.

When it comes to message sending, OpenAI encourages users to keep an eye on what ChatGPT is doing and discourages turning on persistent approval, warning that doing so “removes your final chance to review a message before ChatGPT sends it as you,” the company writes.