Passengers flee smoke-filled train after fire erupts in New Jersey
A fire beneath a commuter train at Newport Station in Jersey City caused major disruptions to New Jersey transit lines on Monday morning (August 4)....
Global markets opened the week under pressure, with Asian equities broadly lower after disappointing Chinese retail sales data added to mounting concerns over Beijing’s ability—or willingness—to pivot from its traditional export-led growth model to one fueled by domestic consumption.
The shortfall in spending highlights the demand gap in the world’s second-largest economy, a structural challenge at the heart of growing global trade friction. As President Donald Trump intensifies his tariff-driven strategy, the implicit message to global partners becomes clearer: China should consume more, the U.S. less.
Trump’s policy approach, which includes sustained import tariffs averaging 13%—the highest since the 1930s, is reshaping the global trade landscape. His Treasury Secretary, Scott Bessent, delivered a blunt warning on Sunday: nations unwilling to offer “good faith” trade terms could expect tariff hikes delivered “by letter.”
That posture comes with domestic consequences. Trump is pressuring U.S. retailers—including giants like Walmart, Target, Lowe’s, and Home Depot—to absorb the cost of tariffs rather than passing them on to American consumers. The strategy edges uncomfortably close to price-setting tactics reminiscent of state-managed economies, and this week’s corporate earnings could test just how far retailers are willing—or able—to comply.
Meanwhile, Trump’s tariff revenue is increasingly viewed as critical to funding his ambitious tax cut plan, which recently cleared a House committee and may reach a full vote this week. The package, estimated to add $3–$5 trillion to the national debt over the next decade, has already prompted a credit rating downgrade by Moody’s, echoing earlier moves by other agencies.
While ratings downgrades have had muted effects since the post-2008 credibility crisis, the latest development appears to be rattling foreign investors, already wary of Washington’s unpredictable policymaking. Early trading saw U.S. stock futures down over 1%, Treasury yields rising, and the dollar weakening modestly.
In Europe, pro-EU electoral victories in Romania, Poland, and Portugal brought relief to the euro, providing a political counterweight to trade and monetary uncertainty.
Key market developments to watch Monday:
As markets digest these crosscurrents—from China’s slow internal rebalancing, to U.S. fiscal and trade volatility, and Europe’s fragile political cohesion—investors face a complex week in navigating risk and positioning.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
Australian researchers have created a groundbreaking “biological AI” platform that could revolutionise drug discovery by rapidly evolving molecules within mammalian cells.
China and the Association of Southeast Asian Nations will send an upgraded ‘version 3.0’ free-trade agreement to their heads of government for approval in October, Chinese Foreign Minister Wang Yi said on Saturday after regional talks in Kuala Lumpur.
A series of earthquakes have struck Guatemala on Tuesday afternoon, leading authorities to advise residents to evacuate from buildings as a precaution against possible aftershocks.
Tesla has granted Elon Musk a $29 billion share award as part of a new compensation plan to retain him as CEO while the company shifts focus from electric cars to robotaxis and AI. The move revives elements of a controversial 2018 package previously struck down by a Delaware court.
OPEC+ will increase oil production by 547,000 barrels per day in September after eight members of the organisation held a brief virtual meeting on Sunday. They said the company will continue to accelerate its output hikes to regain market share.
McDonald's plans to significantly expand its investments in artificial intelligence by 2027, with India expected to play a central role in data governance, engineering, and platform development, a senior executive said on Friday.
U.S. President Donald Trump has sharply criticised Federal Reserve Chair Jerome Powell following the central bank’s decision to keep interest rates unchanged.
Microsoft’s market capitalization surpassed $4 trillion in after-hours trading on Wednesday following a stronger-than-expected earnings report for its fiscal fourth quarter, driven by robust growth in its cloud business.
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