Trump amplifies nuclear factors in trade negotiations
The Wall Street Journal labelled the upcoming Federal Reserve meeting as the 'strangest Fed meeting in years,' as policymakers debate a path for interest rate cuts amid signs of a weakening labor market and rising spending trends.
In international news, tensions remain high between the US and China over the latter's alleged lack of progress in cracking down on illegal fentanyl production. Meanwhile, the US is considering restricting imports of Chinese-developed drugs, following allegations of antitrust violations by Chinese authorities against chip giant Nvidia.
The oil and gas industry is facing challenges as well, with about 90% of the industry's annual capital spending on drilling since 2019 dedicated to offsetting production declines rather than meeting demand growth. This comes as the US and UK signed a major nuclear power deal to build up to 12 cutting-edge reactors in England, with more nuclear deals in the works with other countries, including Saudi Arabia.
Domestically, the US is an outlier when it comes to vaccine policy, with the Trump administration linking 25 children's deaths to the COVID vaccine, a claim which scientists say is based on a misunderstanding. The administration has also gutted the US 'war on cancer' declared by former President Richard Nixon.
Politics in the UK and Germany saw significant developments this week. UK Prime Minister Keir Starmer is facing a potential revolt from within his party if local elections due next year go badly, while Germany's chancellor won a convincing election in his home state, with the anti-immigration AfD party tripling its vote share in what is seen as a bellwether region.
Elsewhere, Israel launched a ground offensive into Gaza City, eroding prospects for a ceasefire, and tensions between Russia and Europe spiked as war games involving Russian and Belarusian troops caused unease in Europe. In France, President Emmanuel Macron is resisting intense pressure to call snap parliamentary elections.
In a tragic turn of events, right-wing activist Charlie Kirk was assassinated, with Utah police arresting Tyler Robinson for allegedly killing him. Robinson allegedly admitted to the shooting, saying he had 'had enough' of Kirk's 'hatred.' As a growing number of people face retaliation for posting about Kirk's death, politicians urged against targeting individuals and promoting unity.
In a positive note, US retail sales rose in August for a third consecutive month, and a US startup will ship 33,000 AI-powered drones to Ukraine this year. The so-called 'run it hot' trade is booming despite warning signs in the US labor market and gloomy narratives of an economic slowdown.
Finally, in a move that puzzled many, the Environmental Protection Agency proposed scrapping a program that requires polluters to disclose their greenhouse gas emissions. This decision has raised concerns over prospects for the world's second-biggest economy, as the figures reinforce worries over China's economic slowdown, with retail sales, industrial production, and investment levels all below expectations.
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