Category: 3. Business

  • US equity markets finish week higher as tariff threat fades and banks rebound | Wall Street update

    US equity markets finish week higher as tariff threat fades and banks rebound | Wall Street update

    Regional banks drive US market gains

    After a choppy week, the three major United States (US) equity indices finished higher on Friday and for the week. Markets were buoyed as tariff threats faded and regional bank earnings eased credit market concerns. For the week, the Nasdaq 100 finished 2.46% higher, the S&P 500 added 1.70%, and the Dow Jones lifted by 711 points.

    Regional banks rebounded on Friday after several, including Truist Financial, Regions Financial, and Fifth Third, reported better-than-expected earnings. Zions Bancorporation surged 5.8% to $49.67, Truist gained 3.67% to $42.60, Western Alliance added 3.1% to $72.48, and Fifth Third climbed 1.31% to $40.89.

    Despite Friday’s rebound, questions remain about whether last week’s regional bank flare-up is contained or an early sign of broader systemic stress, particularly given the rapid growth in collateralised loan and private credit markets and signs of weaker lending discipline. Thursday’s flare-up followed JPMorgan’s Jamie Dimon warning earlier in the week about ‘cockroaches’ in the credit market after the collapses of Tricolour Holdings and First Brands Group.

    Focus on US-China developments and upcoming tech earnings

    Tariff-related tensions eased into the weekend after US President Trump acknowledged that a 100% tariff on China was unsustainable. It was confirmed he will still meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) Summit at the end of this month. News that Treasury Secretary Bessent will meet Chinese officials later this week in Malaysia also helped sentiment.

    Looking ahead, attention this week will focus on US-China developments and third quarter (Q3) 2025 earnings from technology companies, including Tesla, Netflix, International Business Machines Corporation, and Intel.

    Despite the US government shutdown entering its fourth week and the Federal Reserve (Fed) now in the blackout period, markets will receive a US inflation update (previewed below).

    Consumer price index 

    Date: Friday, 24 October at 10.30pm AEST

    For August, headline inflation in the US increased by 0.4% in line with expectations. This resulted in the annual rate of headline inflation rising to 2.9%, below the forecast of 3%.

    The annual core consumer price index (CPI), which excludes volatile items like food and energy, rose by 0.3% month-on-month (MoM), which saw the annual core inflation rate remain at 3.1%, unchanged from July and in line with market expectations.

    For September, the expectation is for the annual headline inflation rate to rise to 3.1% year-on-year (YoY), which would be its highest reading since May 2024, while the core measure is expected to remain at 3.1% YoY.

    Ahead of this, the US interest rate market is fully priced for a 25 basis point (bp) Fed cut in October and fully priced for another 25 bp cut in December, as the Fed prioritises bringing support to a cooling labour market despite persistent inflation.

    US core inflation rate chart

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  • China's new home prices fall at fastest pace in 11 months – Reuters

    1. China’s new home prices fall at fastest pace in 11 months  Reuters
    2. China Home Prices Drop Faster Even as Top Cities Expand Support  Bloomberg.com
    3. China’s property investment falls 13.9% y/y in January-September  TradingView
    4. China’s property slump hits economy as trade tensions with US heighten  The Irish Times
    5. China’s property market poised to decline at least through 2026, S&P analyst says  South China Morning Post

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  • China’s Decline in Home Sales, Property Investment Worsen

    China’s Decline in Home Sales, Property Investment Worsen

    China’s new home sales by value fell 7.6% in the first nine months from a year earlier, widening from the 7.0% drop in the first eight months, the National Bureau of Statistics said Monday.

    Property investment declined 13.9% over January to September, worsening from the 12.9% decline in the first eight months.

    However, new construction starts by property developers slumped 18.3% in the January-September period versus the 19.5% slide recorded over the first eight months of 2025.

    - - 

    Write to Singapore Editors at singaporeeditors@dowjones.com

    (END) Dow Jones Newswires

    October 19, 2025 22:32 ET (02:32 GMT)

    Copyright (c) 2025 Dow Jones & Company, Inc.

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  • Zurich backs next wave of insurtech talent in global innovation drive

    Zurich backs next wave of insurtech talent in global innovation drive

    At the event, Zurich named 10 winners of the Zurich Innovation Championship 2025, its global competition to find technology solutions that address insurance challenges and improve customer outcomes. Now in its sixth year, the competition reflects Zurich’s push to embed digital innovation and artificial intelligence across underwriting, claims and operations.

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  • Yen eases as dovish Takaichi set to become Japan PM, Aussie gains – Reuters

    1. Yen eases as dovish Takaichi set to become Japan PM, Aussie gains  Reuters
    2. USD/JPY: US-Japan yield spread breakdown signals further yen strength ahead in the near term  marketpulse.com
    3. Yen’s moving the right way now! Takaichi closer to being PM.  TradingView
    4. Japanese Yen To USD Exchange Rate Hits USD 150.42  inkl
    5. The USD/JPY pair rebounds towards 150.20 as the US Dollar recovers from earlier losses  VT Markets

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  • Home Prices in China’s Major Cities Continued to Decline in September

    Home Prices in China’s Major Cities Continued to Decline in September

    Home Prices in China’s major cities fell at a slightly faster pace in September from the previous month, highlighting persistent weakness in the nation’s real estate market.

    Average home prices across China’s 70 biggest cities declined 0.41% in September, widening from the 0.3% drop in the previous month, according to calculations by The Wall Street Journal based on data released by the National Bureau of Statistics on Monday.

    Of the 70 cities, 63 reported month-on-month price declines, up from 57 in August.

    On a yearly basis, home prices fell 2.7% in September, compared with a 3.0% drop in August, with 61 cities posting year-over-year declines versus 65 a month earlier.

    For the first nine months of the year, average home prices in the 70 major cities were down 4.1% from a year earlier.

    Write to Singapore editors at singaporeeditors@dowjones.com

    (END) Dow Jones Newswires

    October 19, 2025 22:04 ET (02:04 GMT)

    Copyright (c) 2025 Dow Jones & Company, Inc.

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  • MENA’s innovation map expands as Syria debuts, Palestine rises at GITEX 2025

    MENA’s innovation map expands as Syria debuts, Palestine rises at GITEX 2025

    At this year’s GITEX Global, the region’s largest technology exhibition, the spotlight quietly shifted to two pavilions that told a different kind of story. At Expand North Star, the startup-focused arm of GITEX held at Dubai Harbour, Syria made its first-ever appearance, and Palestinian founders drew a surge of investor interest.

    The event, which ran for four days and brought together thousands of startups and more than a thousand investors, has become the region’s ultimate deal-making arena, a space where “let’s meet” often turns into “let’s sign.” Amid the bustle of global pitches and product launches, Syria’s debut and Palestine’s growing presence stood out as signals of resilience, recovery, and quiet ambition.

    Syria is back on centre stage

    Conversations were lively inside the Syrian pavilion. Entrepreneurs who had spent years abroad were meeting international investors face to face, many for the first time. The pavilion was hosted by SYNC, a California-based, volunteer-led non-profit founded by members of the Syrian tech diaspora to help rebuild the country’s innovation ecosystem.

    “Our goal is to mobilise Syrian tech talent in the diaspora and connect them with opportunities back home,” said Firas Khalifeh, SYNC’s co-founder, speaking to Wamda. “We want to create 25,000 tech jobs in Syria within five years and start reversing the brain drain that has hollowed out our workforce.”

    Two Syrian founders—Rahaf Aldruby and Seem Alkabbani—offered a glimpse of that ambition when their edtech startup TarKeys won an $8,000 grant from TiE Dubai after pitching at Expand North Star. Their success symbolised a new chapter for Syrian entrepreneurship: talent that had survived years of turmoil now competing on the global stage.

    A country rebuilding from zero

    Following the fall of Bashar al-Assad’s regime in December 2024, Syria has entered an uncertain but potentially transformative phase. Almost every sector—infrastructure, finance, education, and healthcare— requires rebuilding. With roughly 40 percent of sanctions lifted and the rest expected to ease by year’s end, the government and private sector see a window to re-enter global markets.

    “It’s a big risk, I know, for investors to deploy their funds in Syria,” Khalifeh said. “But first movers will benefit from the potential of a hungry market like ours. The time is now to use this opportunity.”

    At GITEX, Syria’s Minister of Communications and Information Technology, Abdulsalam Haykal, met with entrepreneurs and outlined a plan to restore digital infrastructure. “Connectivity and electricity come first,” he said, emphasising that his ministry is working with the Ministry of Finance on new legislation to govern venture capital activity and launch incubators and accelerators for early-stage startups. His presence was more than symbolic; it underscored that Syria’s tech revival now has political backing.

    Why Syria’s comeback matters to MENA

    When Syria was cut off from the region’s tech revolution a decade ago, the MENA ecosystem lost scale, talent, and balance.

    Before the war, Syrian universities produced a steady stream of engineers, developers, and designers. Many ended up in GCC economies or Europe, and when the conflict began, the flow became one-way. The region lost a mid-cost, high-skilled labour corridor that could have bridged the gap between North Africa’s affordability and the Gulf’s capital intensity.

    Syria’s exit also fractured digital supply chains across the Levant. Companies were forced to reroute their logistics and connectivity around the missing link between Iraq, Jordan, Lebanon, and Turkey. A domestic market of 22 million consumers, once a potential testing ground for fintech and e-commerce, effectively vanished. And while Syrian professionals thrived abroad, their experience rarely flowed back into the regional pipeline.

    Now, with sanctions easing and the economy reopening, MENA stands to regain that lost piece. Syria’s reintegration could create a new reservoir of affordable, skilled talent, particularly in software, AI, and remote engineering, fields that Gulf and Levant firms struggle to fill.

    Its electronics base and low operating costs could make it a new node for light manufacturing and deep-tech assembly—what Khalifeh calls “China of the Levant”. Projects like SilkLink, a proposed high-speed internet corridor linking Asia to Europe through Syria, could strengthen regional connectivity and reduce data costs.

    For investors, Syria’s re-entry expands the region’s consumer and entrepreneurial map, adding a digitally literate market with strong remittance inflows and diaspora purchasing power. Jordanian, Lebanese, and Saudi VCs are already eyeing early-stage opportunities, betting on high risk but potentially high reward.

    Palestine: building through adversity

    Across the exhibition hall, the Palestinian delegation delivered one of the event’s most emotional and determined performances. It was the third consecutive year for Palestinian entrepreneurs at GITEX, this time supported by European partners, Bank of Palestine, and private firms such as Profarco.

    Rateb Rabie, CEO of Intersect, has attended several editions of the event. “I don’t know how to tell you what the benefit of joining GITEX this year is,” he said with a laugh. “Many investors passed today — Lebanese, international, and several UAE funds. We ran an extensive outreach campaign on social media, and our startups joined panels to introduce themselves. The feedback has been positive, maybe still lip service, but it’s a start.”

    By the third day, activity had surged. Seven to eight startups were continuously giving interviews, and several were featured in Expand North Star’s publicity. Foot traffic increased as visitors moved between three Palestinian pavilions. In total, 33 Palestinian startups showcased products spanning agritech, AI, SaaS, and creative industries.

    “These are thirty-three stars,” Rabie said proudly. “Thirty-three Palestinians, in a circle.”

    The symbolism is profound. These founders are pitching for capital and visibility while their homeland faces one of the deadliest conflicts in modern history. By early October 2025, independent monitors estimated that more than 67,000 Palestinians had been killed and nearly 169,000 injured in Gaza. Infrastructure is devastated, yet Palestinian entrepreneurs continue to show up, not out of denial, but defiance.

    Dubai’s role as a regional bridge

    For both delegations, Dubai offered more than visibility. The city’s regulatory clarity, investor depth, and geographic neutrality make it a natural meeting point for governments, diaspora leaders, and global corporates. Expand North Star was designed for exactly this—dense investor traffic, fast deal cycles, and a platform to integrate newcomers into the regional startup circuit.

    The presence of Syria and Palestine this year added substance to what can often feel like a marketplace of trends. Syria brought the optimism of reconstruction and reintegration; Palestine brought courage under fire. Both reminded investors that innovation often comes from the margins, where necessity breeds the strongest ideas.

    The bottom line

    MENA’s startup story has often been told through the Gulf’s capital and North Africa’s scale. The return of Syria and the persistence of Palestine add missing dimensions: engineering depth, creative grit, and human resilience.

    If investors are serious about long-term regional diversification, this is where the next wave begins, in countries rebuilding their foundations and rewriting their narratives through technology. The opportunity is clear. The challenge, as always, is who dares to move first.

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  • Dow Jones Top Markets Headlines at 9 PM ET: Stock Futures Rise Ahead of Major Week of Earnings | Luxury …

    Dow Jones Top Markets Headlines at 9 PM ET: Stock Futures Rise Ahead of Major Week of Earnings | Luxury …

    Stock Futures Rise Ahead of Major Week of Earnings

    The economic highlight of the week will be the September consumer price index, coming out on Friday.

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    Luxury Brands’ Stiffest Competition Is the Stuff They Have Already Sold

    Sales of secondhand luxury goods are growing faster than in brands’ own stores.

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    A New Challenge for China’s Economy: ‘Involution’

    Beijing is fighting to limit the damage from a pattern of price wars and excess capacity across multiple industries.

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    Is Gold in the Grips of a Speculative Bubble?

    The danger is that gold is in the grip of the sort of speculative excess that creates bubbles in other parts of the financial system.

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    Week Ahead for FX, Bonds: U.S. Inflation, PMI Data in Focus as Shutdown Continues

    Delayed U.S. inflation data are due to be released during the week and will attract attention from investors seeking evidence on the likelihood of future interest-rate cuts.

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    Unemployment Claims Filed by Federal Workers Shoot Higher

    Data from states show that initial unemployment claims filed by federal government workers have jumped up this month.

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    Banks’ Strong Earnings Leave Investors Digging Deeper for Trouble Spots

    Earnings from the country’s biggest banks show a booming Wall Street and a solid consumer. But a warning from Jamie Dimon took center stage.

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    Bank of Canada Survey, CPI Data to Weigh on Next Rate Decision, Gov. Macklem Says

    The central bank’s quarterly business-outlook survey and September’s consumer-price index data are slated for release next week.

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    BOE Should Show More Caution in Future Rate Cuts, Says Chief Economist

    The BOE’s Huw Pill called for the pace of cuts to be slowed in recognition of stubborn high inflation.

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    Venezuela Mobilizes Troops and Militias as U.S. Military Looms Offshore

    Nicolás Maduro says his country is ready for combat, though the strongman’s military is underfunded, ill-trained and no match for American firepower.

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    Gold Stocks Are Surging. They Still Lag Behind Cold, Hard Bullion.

    Since the start of August, a fresh rush into gold has fed demand for gold equities, whose gains have outpaced chip stocks riding the artificial-intelligence boom.

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    China’s Communist Elites Gather to Map Strategy

    A communique after the Communist Party’s Central Committee meeting, which runs Monday to Thursday, will indicate how Beijing aims to steer the economy through turbulence, though details of its 15th five-year plan won’t be released until March.

    (END) Dow Jones Newswires

    October 19, 2025 21:15 ET (01:15 GMT)

    Copyright (c) 2025 Dow Jones & Company, Inc.

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  • Oil prices slip on concerns over US-China trade tensions

    Oil prices slip on concerns over US-China trade tensions

    TOKYO, Oct 20 (Reuters) – Oil prices dipped on Monday, pressured by worries over a global glut as escalating U.S.-China trade tensions added to concerns about an economic slowdown and weaker energy demand.

    Brent crude futures fell 24 cents, or 0.4%, at $61.05 a barrel at 0032 GMT, while U.S. West Texas Intermediate futures were down 21 cents, or 0.4%, at $57.33, erasing gains from Friday.

    Sign up here.

    Both benchmarks declined more than 2% last week, marking their third consecutive weekly decline, partly due to the International Energy Agency’s outlook for a growing supply glut in 2026.

    “Concerns about oversupply from increased production by oil- producing nations, coupled with fears of an economic slowdown stemming from escalating U.S.-China trade tensions, are fuelling selling pressure,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.

    “While the U.S. is stepping up pressure on buyers of Russian crude, the upcoming summit between U.S. President Donald Trump and Russian President Vladimir Putin adds uncertainty to the outlook, making it difficult for some investors to adjust their positions,” he said.

    Last week, the head of the World Trade Organization said she had urged the U.S. and China to de-escalate trade tensions, warning that a decoupling by the world’s two largest economies could reduce global economic output by 7% over the longer term.
    The two top oil consumers have recently renewed their trade war, imposing additional port fees on ships carrying cargo between them – tit-for-tat moves that could disrupt global freight flows.

    Meanwhile, Trump and Putin agreed on Thursday to hold another summit on the war in Ukraine, even as Washington pressured India and China to stop buying Russian oil.

    Following talks with Ukrainian President Volodymyr Zelenskiy at the White House on Friday, Trump implored both Ukraine and Russia to “stop the war immediately,” even if it means Ukraine conceding territory.
    U.S. and European pressure on Asian buyers of Russian energy could restrict India’s oil imports from December, leading to cheaper supplies for China, trade sources and analysts said.
    On the supply side, U.S. energy firms last week added oil and natural gas rigs for the first time in three weeks, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday.

    Reporting by Yuka Obayashi; Editing by Sonali Paul

    Our Standards: The Thomson Reuters Trust Principles., opens new tab

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  • OpenAI big chip orders dwarf its revenues — for now

    OpenAI big chip orders dwarf its revenues — for now

    A Bernstein Research analyst says Open AI CEO Sam Altman has the power to crash the global economy or take everyone ‘to the promised land’ as the startup behind ChatGPT races to build artificial intelligence infrastructure costing billions of dollars (JUSTIN SULLIVAN)

    OpenAI is ordering hundreds of billions of dollars worth of chips in the artificial intelligence race, raising questions among investors about how the startup will finance these purchases.

    In less than a month, the San Francisco startup behind ChatGPT has committed to acquiring a staggering 26 gigawatts of sophisticated data processors from Nvidia, AMD, and Broadcom — more than 10 million units that would consume power equivalent to 20 standard nuclear reactors.

    “They will need hundreds of billions of dollars to live up to their obligations,” said Gil Luria, managing director at D.A. Davidson, a financial consulting firm.

    The challenge is daunting: OpenAI doesn’t expect to be profitable until 2029 and is forecasting billions in losses this year, despite generating about $13 billion in revenue.

    OpenAI declined to comment on its financing strategy.

    However, in a CNBC interview, co-founder Greg Brockman acknowledged the difficulty of building sufficient computing infrastructure to handle the “avalanche of demand” for AI, noting that creative financing mechanisms will be necessary.

    – Creative financing –

    Nvidia, AMD, and Broadcom all declined to discuss specific deals with OpenAI.

    Silicon Valley-based Nvidia has announced plans to invest up to $100 billion in OpenAI over several years to build the world’s largest AI infrastructure.

    OpenAI would use those funds to buy chips from Nvidia in a game of “circular financing,” with Nvidia recouping its investment by taking a share in OpenAI, one of its biggest customers and the world’s hottest AI company.

    AMD has taken a different approach, offering OpenAI options to acquire equity in AMD — a transaction considered unusual in financial circles and a sign that it is AMD that is seeking to seize some of OpenAI’s limelight with investors.

    “It represents another unhealthy dynamic,” Luria said, suggesting the arrangement reveals AMD’s desperation to compete in a market dominated by Nvidia.

    – Crash or soar? –

    The stakes couldn’t be higher.

    OpenAI co-founder and CEO Sam Altman “has the power to crash the global economy for a decade or take us all to the promised land,” Bernstein Research senior analyst Stacy Rasgon wrote in a note to investors this month.

    “Right now, we don’t know which is in the cards.”

    Even selling stakes in OpenAI at its current $500 billion valuation won’t cover the startup’s chip commitments, according to Luria, meaning the company will need to borrow money.

    One possibility: using the chips themselves as collateral for loans.

    Meanwhile, deep-pocketed competitors like Google and Meta can fund their AI efforts from massive profits generated by their online advertising businesses — a luxury OpenAI doesn’t have.

    The unbridled spending has sparked concerns about a speculative bubble reminiscent of the late 1990s dot-com frenzy, which collapsed and wiped out massive investments.

    However, some experts see key differences. “There is very real demand today for AI in a way that seems a little different than the boom in the 1990s,” said Josh Lerner, a Harvard Business School professor of investment banking.

    CFRA analyst Angelo Zino pointed to OpenAI’s remarkable growth and more than 800 million ChatGPT users as evidence that a partnership approach to financing makes sense.

    Still, Lerner acknowledges the uncertainty: “It’s a real dilemma. How does one balance this future potential with the speculative nature” of its investments today?

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