Category: 3. Business

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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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.

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.

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  (END) Dow Jones Newswires

  October 19, 2025 22:04 ET (02:04 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.

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.

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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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.

—-

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.

—-

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.

—-

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.

—-

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.

—-

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.

—-

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.

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.

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“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.

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.

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