
The five things you need to know today:
CHINA. UNITED STATES. Markets, inflation, and AI competition heat up.
INDONESIA. UNITED STATES. Prabowo’s deal is less about trade than politics.
ISRAEL. Netanyahu fights enemies within and without.
IRAN. New threats, deadlines and alleged plots aim at mutual disturbance.
FRANCE. Bayrou risks it all by going after le weekend.
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CHINA. UNITED STATES. Hot chips
Markets, inflation, and AI competition heat up.
The Nasdaq hit a fourth record close Tuesday after Nvidia got approval to resume selling H20 chips to China. Announcing $90 billion in AI investments in Pittsburgh, Donald Trump said the US would fight China "in a very friendly fashion."
INTELLIGENCE. Howard Lutnick said Nvidia's green light was part of a deal with China on rare earths shipments. Markets in both countries rebounded on hopes of a truce in the tech war, overshadowing disappointing bank earnings and stubborn inflation. There is also renewed hope for a summit between Donald Trump and Xi Jinping, joined by key business leaders. In Beijing for a trade fair this week, Nvidia's Jensen Huang is said to also be visiting the Politburo.
FOR BUSINESS. Stabler US-China trade ties don’t mean an end to economic competition. Silicon Valley is worried about China's lead in open-source AI, with the Alibaba-backed Kimi K2 the latest Chinese model to outperform Western incumbents. OpenAI has meanwhile delayed its own open-source release and Meta is reportedly set to abandon its own. China’s models are also more efficient. While the extra H20s are welcome, they need less of them.
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INDONESIA. UNITED STATES. Open Komodo
Prabowo’s deal is less about trade than politics.
Donald Trump announced a "landmark deal” Tuesday to levy 19% tariffs on Indonesian imports and 0% on US exports. Prabowo Subianto left Paris after attending Bastille Day as guest of honour and agreeing to pursue an FTA with Europe.
INTELLIGENCE. 19% is better than 32%, as previously threatened, but barely than
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