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Good morning, I’m back to Firstft Asia. In today’s newsletter:
I’m afraid of ai bubble
Global warming in China and India
Labubu Frenzy Powers Chinese Toy Company
Increased rebellion within the Fed
US tech stocks sold yesterday as a wave of concern that the fierce enthusiasm surrounding artificial intelligence could be blamed by some of Wall Street’s most speculative companies.
Stock Drops: Tech Heavy Nasdaq Composite has closed 1.4%, driven by drops of some of the best-performing stocks of the year. The software group’s Palantir fell by 9.4%, while Nvidia (its advanced AI chips rely on the industry as a whole) lost 3.5%. This decline marked the largest day decline in the index since August 1st.
Spooky Investors: Traders pinned some declines in the report released Monday by the Massachusetts Institute of Technology branch. The researchers said “95% of the organizations have received zero returns.” “The story sucks people,” said one trader close to the multi-billion-dollar US Technology Fund. There was also a drop in stock a few days after Openai CEO Sam Altman signaled that an AI bubble might be forming. This is what he said.
And here’s the other thing we keep tabs today:
Monetary Policy: China announces its loan prime rate decision. Indonesia and New Zealand will also decide on fees.
India-Russia Relations: Indian Foreign Minister S Jaishankar continues his visit to Russia. The trip comes after the US doubled tariffs on Indian goods as New Delhi purchased Russian oil.
Five more top stories
1. China and India have achieved a “new environment” of “peace and tranquility,” a national security adviser in New Delhi told top diplomats in Beijing as they move in 2020 to repair the fierce bonds shattered by a deadly border conflict. Here’s how the relationships have been improved:
2. The White House yesterday said it was about “setting the details” of the deal that involves the US government taking a 10% stake in Intel. The manufacturing industry of US chipmakers suffered billions of dollars as they struggled to compete with Taiwanese semiconductor manufacturers.
3. The global popularity of the furry elf doll Labubu helped more than triple the sales of Pop Mart in the first six months of the year. Chinese toy companies are worth more than twice the total of Hasbro and Mattel, following the Lovebu Frenzy, which has been embraced by celebrities such as Rihanna and David Beckham.
4. Donald Trump said Ukraine’s postwar security guarantees could help the US “air.” He warned Vladimir Putin that he would face “a rough situation” if he did not cooperate with the peace agreement. The security assurance issue is one of several that remain unresolved after the White House Summit between Trump and Volodymiazelensky.
5. Bill Gates is funding a $1 million race to promote the use of AI to find innovative treatments for Alzheimer’s disease. The Winning Tool is released for free on the cloud “Workbench” of the Alzheimer’s Disease Data Initiative and will be used worldwide by scientists. Please read the entire story.
Detailed news
Jay Powell’s speech at the Federal Reserve summit in Jackson Hole, Wyoming, is always a high stakes moment. This year, the central bank chairs will burn the podium. It faces intense attacks from Trump and a growing rebellion within his own facility.
We’re reading too. . .
Tariffs: Trump has not led a new global trading order, Inumanac wrote. The US simply denies the benefits of a system that already exists.
Drug Cartels: With the global cocaine business booming more than ever, Latin American organized crime groups are diversifying into other swaths of illegal activities.
Luxury Hotel Uniforms: Design studios that produce custom-made clothing for grand hotels face complex demand, John Gapper writes.
The chart of the day
At the NIO Battery Swapping Station near Shanghai, it takes just three minutes to power your electric vehicle. The series of investments in infrastructure exchange by CATL, the world’s largest battery manufacturer, is set to pave the way for wider adoption of technology in China, the world’s largest EV market.
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Take a break from the news. . .
From sustainable materials to passive design, architects look to the tropics for inspiration for how to live in times of intense climate challenges.
