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Trump's nominee for India says that the US and India are not far apart on tariffs.
The nominee of Donald Trump to be ambassador to India, who is a Republican, said that Washington and New Delhi "are not that far apart" when it comes to tariffs. Sergio Gor, an aide to Trump who is director of the White House Presidential Personnel Office and was confirmed by the Senate, stated that "we're not too far apart" on a tariff deal. Gor: "I think that it will be resolved within the next few days." U.S.-India relations have been affected by Trump's Trade War. Talks on lower tariffs collapsed after India, which is the fifth largest economy in the world, refused to open its vast dairy and agricultural sectors. The bilateral trade between India and the United States is valued at more than $190 million each year. Trump imposed tariffs on India's imports at first of 25%, but then increased them to 50% as punishment when New Delhi bought more Russian oil. Trump said Tuesday that his administration continues negotiations to address India's trade barriers and he will talk to Modi. This is a sign of a new beginning after weeks of diplomatic tension. Gor responded to the question of whether he would push to have the Quad summit, which includes India, Australia, Japan, and the United States take place on the scheduled date later this year. "Without giving exact dates, the president is committed to continuing to meet with Quad and strengthening it." India was expected to host the Quad Summit in November, with an explicit focus on China's security. However, a source familiar with the situation said this month that Trump had not yet scheduled a visit to India.
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GE Vernova sells Proficy to TPG at $600 million and shifts its focus to grid software
GE Vernova announced on Thursday that it would sell its Proficy Industrial Software unit to TPG, a private equity firm for $600,000,000 and reinvest those proceeds into grid software. Proficy, which represents about 20% of GE Vernova’s electrification-software revenue, allows manufacturers to monitor and optimize their production. Revenue from electrification software in 2024 will be $7.55 billion. The company spun off last year from GE has been working on reducing rising costs due to inflation and tariffs. In April, the company forecasted a $300-400 million cost increase by 2025. It said that it would raise prices and streamline its operations to protect margins. GE Vernova also invests in its supply chain. In January, it announced a $600,000,000 upgrade of its U.S. facilities over two years in order to meet the rising global demand for electricity. After the announcement of the deal, CEO Scott Strazik stated that "Indirectly we will reinvest in the grid software business". The Proficy transaction is expected to be completed in the first half 2026. TPG will own and control the company, while GE Vernova will retain a seat on the board as an observer. GE Vernova anticipates receiving additional proceeds from the sale in future, depending on different outcomes and conditions. Christopher Dendrinos, analyst at RBC Capital Markets, stated that the company is monetizing software assets with a high value but are likely undervalued. The shares of the energy equipment provider dropped 3.2% to $622.77. Reinvesting in other areas is a strategic move. Dendrinos said that manufacturing is in high-demand and there are many opportunities to reinvest into these core business lines. The deal will establish Proficy's software division as a separate business. TPG Capital would invest in Proficy, TPG's U.S.-based and European private equity platform. (Reporting and editing by Tasimzahid and Pooja Deai in Bengaluru, and Sumit Saha based in Bengaluru)
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After the Doha attack, an adviser said that the UAE president's Gulf trip seeks coordination.
His diplomatic advisor said that the tour by Sheikh Mohammed bin Zayed Al Nahyan of the United Arab Emirates to Gulf countries was meant to coordinate positions following Tuesday's Israeli assault on Hamas leaders at Doha. Anwar Gargash wrote in a blog post that "the President's Gulf Tour reflects a profound conviction in strengthening cooperation and coordination, and reinforcing a concept of a shared destiny." Israel tried to kill Hamas leaders on Tuesday in an airstrike in Qatar's capital. This escalating military campaign in the Middle East prompted a wave of international condemnation. Sheikh Mohammed is the first head-of-state to visit Doha since the attack. He has also visited Bahrain and Oman. Qatar's official news agency announced earlier Thursday that Doha would host an urgent Arab-Islamic Summit next Sunday and on Monday to discuss Israel's attack. The UAE's Foreign Ministry condemned Benjamin Netanyahu's remarks about Qatar in a separate press release. It stressed that any attack against a Gulf State was an attack against "the collective Gulf Security Framework." On Wednesday, Netanyahu warned Qatar to "either expel Hamas representatives or bring them to justice because if we don't do it, then you will". He also accused Qatari of providing safe-haven and funding to Hamas. Doha responded with a harsh rebuke. The UAE is a major oil exporter and regional hub for trade and commerce with diplomatic influence across the Middle East. In 2020, the Abraham Accords, negotiated by the United States, led to a normalisation agreement between Israel and the UAE. This opened the door to close economic and security ties, including defence cooperation.
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Judge ends the rambling trial of a man accused of attempting to kill Trump
The criminal trial for the man accused of attempting to assassinate U.S. president Donald Trump started off with a scuffle on Thursday when a federal court judge cut short a long opening statement by defendant Ryan Routh. Routh is representing himself and the proceeding aims to highlight the growing prominence of political violence within the U.S. Aileen Cannon, a U.S. district judge in Florida, stopped Routh from presenting to a jury only minutes after Routh had covered topics such as the origins of the human race, the settlement of America's West and international conflict. Routh told Cannon that the case was meaningless, and he sent the jury outside the courtroom. Routh said he would like to talk about non-violence. Cannon warned Routh earlier that she would not tolerate an argument which "would make a mockery out of the dignity in the courtroom." Routh, who is 59 years old, has pleaded guilty to five federal counts, including the attempted assassination a prominent presidential candidate. He could face a life sentence in prison. The trial started the day after Charlie Kirk, a right-wing activist who was an influential Trump ally and had been shot dead at Utah Valley University during a political event. This marked the latest example of political violence to occur in the U.S. Trump faced two assassination efforts during his presidential campaign for 2024 that sent him back into the White House. U.S. prosecutors claim Routh concealed himself with a rifle at the Trump International Golf Club, West Palm Beach in order to kill Trump while he was golfing on the course September 15, 2024. John Shipley, prosecutor at the time of his opening statement, said that "Last Year, defendant Ryan Routh was determined to ensure that Americans could not elect Donald Trump president of the United States." "So, the defendant decided that he would take away the choice from American voters." According to court documents, a Secret Service agent saw Routh and his rifle poking their way through a fence. The agent opened fire and Routh fled without firing a single shot. The same afternoon, he was arrested after being stopped on a Florida highway by police. Shipley claimed Routh had planned to kill Trump for weeks, driving from Hawaii to North Carolina to West Palm Beach with stolen plates and six cell phones in the family car. Shipley said that Routh stayed in a truckstop for a little over a month and tracked Trump's movements, visiting the golf course 17 times. This incident occurred two months after Trump had been shot in the ear at a Pennsylvania campaign rally last July. The gunman was killed on the spot. Routh had led a erratic and difficult life as a roofing contractor. He had advocated democracy in Taiwan and Ukraine. In 2023, he was interviewed about a quixotic idea to send Afghan refugees to Ukraine to repel Russia's invasion. In July, he said to Cannon that he would not allow a "random" stranger to represent him and defend himself. Two of his former public defenders now serve as standby attorneys to help with logistical concerns. Investigations have revealed that the United States has experienced the highest sustained rise in political violence in decades, which began during Trump’s first presidential campaign in 2016. Other high-profile incidents include the shooting of Steve Scalise in 2017, a senior Republican House of Representatives member, during a congressional baseball match, and the assault by Trump supporters on the U.S. Capitol on January 6, 2021. Recent political violence has also targeted Democrats. An arsonist set fire to the home of Pennsylvania Governor Josh Shapiro in April while his family was there. In June, an assailant posing a policeman in Minnesota killed state legislator Melissa Hortman along with her husband. He also shot state senator John Hoffman and his spouse. Trump has put his stamp on the U.S. Justice Department that is prosecuting this case by firing officials who are deemed to be insufficiently loyal. The Routh Trial begins. It is a strange coincidence that it will take place in the same courtroom and before the same judge as the criminal case against Trump for illegally retaining classified documents after his first term. Cannon, who Trump nominated as his 2020 nominee, dismissed the case before it went to trial. Cannon displayed flashes anger towards Routh over the three-day jury selection process. She rejected Routh's proposed questions, which included topics such as pro-Palestinian activist activism and war in Ukraine. (Reporting and editing by Andy Sullivan; Bill Berkrot, Nick Zieminski, and Andy Sullivan)
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After talks with the US energy chief, EU has decided to stick to its 2028 Russian gas withdrawal.
After a meeting on Thursday with U.S. Secretary of Energy Chris Wright, EU Energy commissioner Dan Jorgensen stated that the EU will stick to its deadline for phasing out Russian oil imports by 2028. The EU is currently negotiating legal proposals that will completely phase out the imports of Russian gas and oil by January 1, 2028. A ban on short-term contracting will be implemented next year. However, it faces pressure from both the United States and Russia to stop Russian energy imports earlier. As part of the new sanctions against Moscow, EU Commission President Ursula von der Leyen stated on Wednesday that the EU is considering a quicker phase-out for Russian fossil fuels. Jorgensen confirmed that Wright and he did not discuss sanctions during their meeting in Brussels last Thursday. He said that Jorgensen was focused on getting the EU countries to approve the phase-out of 2028 - separate from any EU sanctions. He said, "This is an ambitious plan." He said: "I am happy to do anything else that can be done at the same time that puts pressure on Russia." A White House official revealed that U.S. president Donald Trump told European leaders to stop buying Russian oil last week in order to end the conflict in Ukraine. Jorgensen refused to comment on whether Wright asked the EU to stop using Russian oil and gas faster. Wright, speaking to reporters following the meeting in Brussels, said: "Our goal is deploying American energy exports around the world... This point strikes home in Europe where I'm today. Nearly 50% of the imported natural gas comes from Russia." We're working to reduce that number to zero. The biggest contributor to that has been the energy exports of the United States. We will continue this and stop all Russian energy imports to the EU. Jorgensen stated that they agreed Europe needed to move as quickly as possible in order to achieve this. They had discussed "several different ways" to make it happen. Jorgensen explained that the EU's phase-out plan by 2028 was designed to "avoid price increases and future supply issues", adding that it would force Europe to purchase more U.S. Liquefied Natural Gas. (Reporting by Kate Abnett, Writing by Mathias de Rozario, Editing by Susan Fenton)
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US CPC predicts 71% La Nina in Oct-Dec
The U.S. Climate Prediction Center said that a transition from El Nino/Southern Oscillation neutral to La Nina will likely occur in the next few months. There is a 71% probability of La Nina between October and December. Climate Prediction Center reported on Thursday. The U.S. forecaster said that "La Nina will be favored in the future, but chances of it occurring are expected to decrease from 54% between December 2025 and February 2026." Why it's important La Nina is a part of El Nino-Southern Oscillation, a climatic cycle that affects the water temperatures in central and eastern Pacific Ocean. La Nina causes cooler water temperatures which increases the risk of droughts and floods. This can have an impact on crops. When ENSO neutral, water temperature stays around average, leading to better weather and possibly higher crop yields. KEY QUOTES Donald Keeney is an agricultural meteorologist with Vaisala. He said that if we do get a weak La Nina it will be brief and weak. All the models should warm back to neutral at the end of the calendar year. Neutral conditions usually result in favorable conditions for growing in the north-central U.S. but dryer conditions in the Central and Southern Plains in the fall/winter. He added that the outlook for South America was a little more positive, particularly in central and northern Brazil. CONTEXT Japan's The weather bureau reported on Wednesday that the chance of rain was 60% Chance The La Nina phenomena would not appear and normal weather conditions will continue into the Northern Hemisphere Winter. The World Meteorological Organization On Tuesday, it was reported that the return of La Nina could start to influence global weather patterns in September. Reporting by Noel John, Bengaluru. Editing by Mark Porter
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TPG to buy Proficy software from GE Vernova for $600 Million
As part of its cost-cutting efforts, GE Vernova, a U.S. manufacturer of power equipment, announced on Thursday that it had agreed to sell Proficy (its industrial software business) to asset management company TPG for $600,000,000. In premarket trading, shares of the company increased by 1.2% to $651. Proficy accounts for approximately 20% of GE Vernova’s electrification revenue. This more than doubled in the second quarter to $332 millions from a year earlier. GE Vernova stated on its first quarter call in April that it expected a $300-400 million increase in cost in 2025. It also said they were looking to offset tariffs, inflation and other costs through pricing. The company also invests to strengthen its supply chains and announced in January a $600,000,000 investment in U.S. factory over the next two-years to meet global electricity demand. The Proficy transaction is expected to be completed in the first half 2026. TPG will own and control the company, while GE Vernova will retain a seat on the board as an observer. GE Vernova anticipates receiving additional proceeds from the sale in the future, depending on different outcomes and conditions. The company stated that the deal would make Proficy a stand-alone software business. TPG Capital is the private equity platform of TPG, which has offices in Europe and the United States. (Reporting and editing by Tasimzahid and Pooja Deai in Bengaluru, and Sumit Saha from Bengaluru)
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Stocks and the euro slump as ECB remains steady, US inflation increases
The euro and the dollar were largely unmoved by the European Central Bank's decision to keep interest rates unchanged and the U.S. inflation figures that showed a slight increase. The ECB held its rate at 2% as expected. However, with the ECB reducing its inflation forecasts during its press conference and Christine Lagarde at the helm of it, traders were looking for any indication of when another rate reduction might be coming. The euro moved a fraction lower to $1.1672, after soaring nearly 13% against the dollar in this year. Bond vigilantes have not yet been able to push France's politically-strained borrowing costs above Italy. The headline rate for August U.S. Consumer Price Inflation was 2.9%, the highest since January. However, the core measure remained at 3.1%. Stock markets mostly shrugged off the news as it was in line with expectations. Wall Street futures continued to price in more record highs on the S&P 500, Nasdaq and Dow after the 36% jump in Oracle shares Wednesday was the latest driver. The pan-European STOXX 600 rose 0.4% ahead Lagarde. Benoit Begoc, ABN AMRO's strategist, said that while the ECB was widely expected to maintain rates in the near future, it is important for Lagarde to keep the door open. "I'm wondering why you don't cut rates more." Begoc stated. Begoc said. Oracle's U.S. surge helped Asia overnight, where Japan's, Taiwan's and South Korea’s main stock exchanges also achieved record highs. Germany's 10-year Bond yield fell to 2.63% as Lagarde began to speak. It had reached 2.80%, its highest level since March last week. Oil prices fell 1.2% on the commodity market after three consecutive days of gains. Poland's downing a suspected Russian drone sparked new talk of sanctions on Wednesday, while Israel had attacked Hamas leaders in Qatar the previous day. Gold, the safe-haven metal, also dipped from recent records and copper, the bellwether of metals took a break from its 20%+ rally since U.S. president Donald Trump's tariffs on trade shook markets worldwide in April. TRADERS BET ON TRIO OF FED CUTS The Federal Reserve is expected to cut interest rates next week, despite the higher U.S. data on consumer prices. Recent signs of weakness in employment markets have led many to expect this. Wall Street futures point to further gains in fractions when the markets return at record levels soon. Oracle's 36% gain on Wednesday was the largest one-day increase for the 48-year old tech giant since 1992. Investors now fully price in a quarter point move by the Fed during next week's meetings, with an 8 percent chance of a cut of 50 basis points. Katy Stoves is an Investment Manager with Mattioli Woods. She said that despite the modest increase in inflation, the market expects a rate cut of 0.25% next week. Turkey's Central Bank was also in the spotlight after it cut interest rates by more than expected 250 basis points amid growing concerns over a crackdown on the political opposition of the country and recent higher-than anticipated inflation. The foreign exchange market was relatively quiet, with little movement in the U.S. Dollar and the six-currency dollar index barely above its seven-week low. The 10-year Treasury yields remained at 4.03% after falling 4 basis points Wednesday following the PPI data. A solid 10-year note sale also helped to ease investor concerns about long-term U.S. government debt. The Treasury's sale of $22 billion in 30-year bonds, which will take place on Thursday, is a more accurate gauge. The 30-year bond yield remained at 4.68% after falling more than 30 basis point since briefly topping 5% last week.
Trump's 25% auto tariff sparks international criticism
Donald Trump, the U.S. president, announced on Wednesday a 25% tariff for imported cars and light vehicles starting next week. This move will likely increase prices and slow production. Here are some reactions from around the world.
ELON MUSK is the CEO of TESLA
It is important to note that Tesla has not been left untouched in this situation. Tesla's tariff impact is still substantial.
The price of Tesla parts that are imported from other countries will be affected. "The cost impact is not insignificant."
SHIGERU ISHIBA IS JAPAN'S PRIME MINISTER
"Japan makes the most investment in the United States. We wonder, therefore, if (Washington's) application of uniform tariffs across all countries is justified. We have been arguing this point for a long time and will continue doing so.
We need to think about what is best for Japan's interests. "We're considering all the options to determine the best response."
PRESIDENTE DE LA COMMISSION EUROPÉENNE URSULA VON DER LEE
"Bad news for business, bad news for consumers."
CANADIAN PREMIER MINISTER MARK CAARNEY
"We will defend workers, companies, our country and together we will defend them."
CHINESE FOREIGN MINISTRY SPOKESPERSON GUO JIAKUN
Tariffs are not the way to achieve a country's prosperity and development.
GERMAN ECONOMY MINISTER ROBERT HABECK
What is important now is that the EU responds to these tariffs with a strong response. We must be very clear about our stance.
"The EU has to now respond firmly to the tariffs. It must be clear that the EU will not give in when faced with the USA."
U.K. Finance Minister RACHEL Reeves
Trade wars are bad for everyone.
"We will be working hard in the next few days to secure a fair deal for Britain." "I understand how important this issue is."
TIFFANY SMITE, VP, of the NATIONAL FOREIGN TRADE COUNCIL (which represents many U.S. companies)
"Tariffs on auto imports could harm the competitiveness of an industry that depends on international markets and supply chains for its success.
We urge the administration, to prioritize the market opening opportunities of auto companies that manufacture vehicles for export from the United States.
SHAWN FAITH, PRESIDENT OF THE UNITED AUTO WORKERS UNION
We applaud the Trump Administration for taking action to stop the free-trade disaster that has devastated communities of working class for decades. The tariffs are a big step forward for blue-collar workers and autoworkers across the nation. It is now up to automakers to bring good union jobs back to the U.S.
The tariffs may also cause supply chain disruption, discourage investments and raise consumer prices significantly, while provoking trade disputes with Europe and Japan.
"We expect significant tariff increases, which could lead to a cycle escalation of tit for tat and an increase in market volatility over the coming weeks."
JP MORGAN
The steep and broad-based tax increases are likely to disrupt supply chains globally. This will likely be more severe than the short-term impact on demand, and drive inventory and days' supply down.
WEDBUSH
The initial tariffs, if they remain in their current form, would create a "hurricane-like" headwind for foreign automakers (and many U.S. automakers) and eventually push up the average price of automobiles by $5,000 to $10,000.
CAPITAL.COM MARKET ANALYST KYLE RODDA
"I'm concerned that these tariffs will not only be disruptive, but also economically damaging. They show that the Trump administration isn't going to stop with the announcement next week."
This could prolong the trade uncertainty and raise the question as to how radical of a change Trump is trying to make to the global trading order.
A trade war between these two economic regions (the European Union and the United States) would be of no benefit.
Both sides must therefore quickly find a transatlantic agreement that promotes growth and avoids a spiraling of isolation and trade barriers.
FRENCH CAR PARTS SUPPLIER VALEO
We will need to increase our prices.
SAM FIORANI, ANALYST FOR AUTOFORECAST SOLUTIONS
"Clearly, there will be winners and losers... companies that have spent hundreds of millions or billions of dollars in plants in Canada and Mexico are likely to see their profits drop dramatically over the next couple of quarters, if they don't even into the next two years. We will adjust our production and sales forecasts, because it could cause chaos.
JESSICA CALLWELL, EDMUNDS Analyst
Many vehicle parts are imported from around the world, which will increase repair costs and reconditioning fees for car dealers. As accidents that involve new parts are more expensive, insurance premiums may also increase.
ONTARIO Premier DOUG FORD
"President Trump has done it again." The 25 percent tariffs on light trucks and cars will only increase the costs of hard-working American families. The U.S. market is already in decline, as the president creates more chaos and unrest. He puts American jobs in danger. I spoke with Prime Minister Carney. We both agree that Canada must be united, strong, and steadfast. "I fully support the federal Government preparing retaliatory Tariffs to demonstrate that we won't back down."
HILDEGARD MUELLER, PRESIDENT OF THE VDA GERMAN CAR INDUSTRY INDUSTRY ASSOCIATION
"The additional US tariffs announced of 25% on passenger cars and light trucks that are not made in the US are a death knell for free and rule-based trade. German automakers are calling for negotiations to begin immediately between the U.S.A. and EU on a bilateral deal."
UK'S SOCIETY of MOTOR MANUFACTURERS and TRADERS CEO MIKE HAWEES: "Today's President Trump announcement is not surprising, but it's disappointing if additional tariffs will be applied to UK-made vehicles, which seems to be the case.... Rather, than imposing more tariffs, we need to explore ways to create opportunities for both British manufacturers and American ones as part a mutually advantageous relationship."
CHUCK CARLSON CHIEF EXECUTIVE OFFICER HORIZON INVESTMENT SERVICE, HAMMOND (INDIANA)
"I have been a little suspicious about all the tariff discussions in terms of how long they will last, whether it is a real negotiation or if something is being pulled at the very last minute. "My initial reaction was that this tariff could have legs."
There will probably be exemptions or modifications made for some U.S. automobile manufacturers... I can see that the U.S. automobile manufacturers could get some exemptions because of their supply chains. "I think he would rather see how it goes than stop in two or three weeks."
(source: Reuters)