USA

EU pushes new AI strategy to reduce tech reliance on US and China
5Oct mmBy Brian ThompsonNo Comments
Asia, China, USA

EU pushes new AI strategy to reduce tech reliance on US and China

Brussels to unveil plan targeting digital sovereignty as it warns technology can be ‘weaponised’ by geopolitical rivals The EU must promote homegrown artificial intelligence platforms and decrease its reliance on foreign providers, Brussels has said, as it prepares to set out a new plan to compete against the US and China in the global race for the revolutionary technology. According to a draft proposal seen by the Financial Times, the European Commission’s new “Apply AI strategy” will promote European-made AI tools to provide security and resilience while boosting the bloc’s industrial competitiveness. The strategy highlights the need to improve AI usage in sectors including healthcare, defence and manufacturing. The Commission aims to “strengthen EU AI sovereignty” by accel...
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The dollar’s role in the fight for US primacy
30Sep mmBy Joe RodriguezNo Comments
USA

The dollar’s role in the fight for US primacy

Eight months into the second Donald Trump administration, the contours of its trade and exchange rate policies are becoming clearer—or at least their objective is. In line with the administration’s wider goal of reasserting the United States’ dominant global role, especially vis-à-vis China, economic policies have now become inextricably linked with US foreign policy priorities. The administration has deployed both its military and economic leverage in the service of its policy goals to a degree not seen for a long time. With respect to China, the administration is taking steps to preserve and exploit US technological advantages, while trying to close the gap in other areas in which China has strategic advantages. The first category includes advanced chip design and artificial inte...
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Dollar falls ahead of data releases, risk of US government shutdown looms
29Sep mmBy Joe RodriguezNo Comments
USA

Dollar falls ahead of data releases, risk of US government shutdown looms

The dollar eased on Monday ahead of a slew of U.S. economic releases that could provide further clarity on the Federal Reserve’s rate path, while the growing risk of a U.S. government shutdown also came into sharp focus. Currency moves were largely subdued in the Asian session, though the dollar gave up some gains after ending last week stronger on the back of reduced Fed rate-cut bets. Against the yen, the dollar was down 0.4% to 148.94, after having risen more than 1% against the Japanese currency last week. The euro rose 0.28% to $1.1731, while sterling edged 0.27% higher to $1.3439. The dollar index was down 0.22% to 97.93, having risen 0.5% last week. Top of investors’ minds was a looming U.S. government shutdown should Congress fail to pass a funding bill before t...
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US economic growth revised up on strong consumer spending
28Sep mmBy Joe RodriguezNo Comments
USA

US economic growth revised up on strong consumer spending

The US economy grew faster than previously thought this spring, fuelled by robust consumer spending and falling imports, according to new government data. Gross domestic product (GDP), which measures goods and services production, rose at an annualised rate of 3.8% in the period from April through June - up from the previous estimate of 3.3%. The second quarter growth - the fastest pace in nearly two years - followed a contraction earlier this year. Economists said the US economy was doing reasonably well but some uncertainties remain. Consumer spending rose by 2.5% in the year to the end of June, up from a previous estimate of 1.6%. In the first three months of 2025, the US economy shrank at a rate of 0.6% as companies rushed in imports to get ahead of US President Don...
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Chinese economy slows amid Trump trade war and weaker consumer spending
28Sep mmBy Brian ThompsonNo Comments
China, USA

Chinese economy slows amid Trump trade war and weaker consumer spending

China’s economy showed further signs of weakness last month as it comes under strain from Donald Trump’s trade wars and domestic problems, with factory output and consumer spending rising at their slowest pace for about a year. The disappointing data adds pressure on Beijing to roll out more stimulus to fend off a sharp slowdown, with a debt crisis denting the country’s once-booming property sector and exports facing stronger headwinds. Economists were split over whether policymakers should introduce more near-term fiscal support to hit their annual 5% growth target, with manufacturers awaiting further clarity on a US trade deal and domestic demand curbed by an uncertain job market and property crisis. Evergrande: China’s property giant delisted from Hong Kong stock exchangeR...
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Trump’s economic rivalry with China is forcing countries to pick a side
27Sep mmBy Joe RodriguezNo Comments
Asia, China, USA, World

Trump’s economic rivalry with China is forcing countries to pick a side

Globalization is dead, at least that’s the verdict of a seemingly endless stream of commentators. But as ever in economics, the story isn’t quite so simple. The prevailing account runs something like this: tariffs first introduced by President Trump, kept in place by President Biden and now turbocharged in Trump’s second term, signal a new age of economic nationalism. According to this view, we are witnessing the start of a grand retreat from the open trading system that has defined the past few decades. The world is turning inwards, and the era of global integration is drawing to a close. But this story doesn’t sit comfortably with the facts. Far from collapsing, global trade volumes have continued to rise and today sit near record highs. If this is the dawn of deglobalization, it...
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GDP Revision Shows US Economy Grew More Than Previously Thought in Second Quarter
26Sep mmBy Joe RodriguezNo Comments
USA

GDP Revision Shows US Economy Grew More Than Previously Thought in Second Quarter

The output of the U.S. economy as measured by Gross Domestic Product bounced back more than previously thought in the second quarter, powered by an increase in consumer spending. That's according to a report from the Bureau of Economic Analysis, which said that GDP grew at an inflation-adjusted annual rate of 3.8% in the second quarter, compared with its previous estimate of 3.3% growth. It was the fastest growth since the third quarter of 2023, and a rebound from the 0.6% decline in GDP in the first quarter. Forecasters had expected growth to stay at 3.3% according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The increased estimate was largely due to an upward revision in consumer spending, which rose at a 2.5% annual rate over the quarter...
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US, China have framework for TikTok deal
16Sep mmBy Brian ThompsonNo Comments
China, USA

US, China have framework for TikTok deal

The US and China have a framework for a deal for TikTok. On Monday, President Trump alluded to the move via a post on Truth Social, saying that the countries had reached an deal for a "'certain' company that young people our Country very much wanted to be saved." Treasury Secretary Scott Bessent confirmed that the countries had the makings of a deal saying, that China wants to keep some Chinese cultural aspects of the app. TikTok is set to go offline Sept. 17 unless parent company ByteDance divests itself of majority ownership of the social media app or Trump extends the deadline. He's already given the app a number of lifelines by extending its drop-dead date and has refused to enforce a law banning it. Trump initially raised concerns about TikTok during his first administra...
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4Sep mmBy Brian ThompsonNo Comments
USA

How Trump turned August into a drama-filled month for the U.S. economy

For the U.S. economy, it was far from a tranquil August. Aside from debuting a new sound system in the Rose Garden, President Donald Trump has replicated his zeal for White House renovations in his ongoing shake-up of the U.S. economy. Over the past month, he's enacted tariffs on dozens of trading partners, fired the chief nonpartisan statistician, and opened a new front in his near-daily bombardment against the Federal Reserve. It was a dramatic month with Trump taking fresh gambles that risk undermining U.S. financial credibility and make everyday life more expensive for Americans. "Trump is clearly willing to take risks with the economy," Peter Harrell, an ex-international economics aide to President Biden, told Quartz. "He's clearly willing to put some uncertainty over th...
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US immigrant population drops by over a million people amid Trump crackdown, first dip in 50 years
25Aug mmBy Brian ThompsonNo Comments
USA

US immigrant population drops by over a million people amid Trump crackdown, first dip in 50 years

Data from the Pew Research Centrer suggests that US immigrant population has fallen by over a million people since Trump took over as President. US President Donald Trump has led a massive crackdown against illegal immigration since taking over in January — with officials arresting or detaining more than a 100,000 people. The stringent curbs have now prompted a decline in the immigration population for the first time in over 50 years. Data from the Pew Research Centrer suggests that US immigrant population has fallen by over a million people since Trump took over as President. What does the data say?According to a new study, the year had begun with a record 53.3 million immigrants living in the United States. This number has declined sharply in the ensuing months as more immigra...
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