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The BRICS summit in Rio de Janeiro, hosted by Brazilian President Luiz Inacio Lula da Silva, highlights the group’s renewed purpose amid US President Donald Trump’s tariff policies. Leaders from Brazil, Russia, India, China, and South Africa, along with newer members like Egypt and Iran, are poised to condemn protectionist measures in a joint statement, signaling opposition to Trump’s trade agenda without directly naming the US. As Trump alienates allies with his "America First" stance, BRICS aims to champion multilateralism and free trade, despite longstanding internal divisions and a lack of shared values. The bloc’s expansion enhances its global economic weight, representing 40% of GDP, but coherence remains elusive. Trump’s threats, including potential 100% levies for abandoning the dollar, have paradoxically encouraged BRICS to explore alternative payment systems and boost intra-bloc trade, which grew 40% to $740 billion between 2021 and 2024. Climate finance also emerges as a key topic, with China positioning itself as a reliable partner. However, absences by leaders like Xi Jinping and Vladimir Putin, alongside geopolitical tensions and rivalries (notably between China and India), underscore the challenges BRICS faces in becoming a unified global force. While Trump’s policies offer a rallying point, the group’s geopolitical influence is expected to grow only gradually, tied to its economic heft and potential further expansion.
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The upcoming June Consumer Price Index (CPI) report, set for release on Tuesday, is expected to reflect a faster pace of inflation, with a projected year-over-year rise of 2.6% compared to 2.4% in May, and a monthly increase of 0.3%. Core CPI, excluding volatile food and energy prices, is forecasted to edge up to 2.9% annually. This comes as President Trump’s proposed tariffs, ranging from 15% to 50% on imports from countries like Canada, Mexico, and the EU, raise concerns about their impact on consumer prices. Economists note a potential reversal in declining car and apparel prices, which could push core inflation higher. Amid renewed trade tensions, the Federal Reserve’s rate-cutting path remains uncertain, though markets expect rates to hold steady for now. Analysts from Wells Fargo, Bank of America, and Goldman Sachs suggest tariffs will likely contribute to a gradual rise in core goods inflation, driven by factors like rebounding used car prices and broader cost increases. However, they anticipate limited pass-through to consumers and expect inflation pressures to cool later in the year due to softening housing and labor market dynamics. The June CPI data is seen as a critical indicator of whether inflation is strengthening, though not yet at a level to alarm Fed officials.
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Nvidia announced plans to resume sales of its H20 AI chip to China, following U.S. export restrictions that previously halted sales due to national security concerns, costing the company $15 billion in revenue and a $5.5 billion inventory write-off. The company is seeking U.S. government licenses to restart deliveries and has developed a new, compliant AI chip, the RTX Pro GPU, for the Chinese market. CEO Jensen Huang, visiting Beijing, underscored China’s critical role as a massive and innovative market during a supply chain expo. Despite facing competition from Chinese firms like Huawei and ongoing geopolitical uncertainties, Nvidia remains committed to the region, which accounted for 13% of its $17 billion revenue last fiscal year. Huang’s visit coincides with easing U.S.-China tensions, including relaxed rare earth export controls by China and resumed U.S. chip design software services. However, U.S. senators have urged caution regarding engagements with Chinese military or intelligence-linked entities. Analysts note that while the H20 ban pause offers relief, Chinese companies are diversifying supply chains to safeguard against future disruptions.
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Standard Chartered has launched spot trading for bitcoin and ether through its UK branch, specifically targeting institutional clients like corporates, investors, and asset managers. Announced on Tuesday, the bank positions itself as the first global systemically important bank to offer secure, regulated, and scalable access to these cryptocurrencies. Clients can now trade digital assets using familiar foreign exchange (FX) interfaces, with plans to introduce non-deliverable forwards trading in the near future. This move comes in response to rising demand for crypto assets among institutional investors. Chief Executive Bill Winters highlighted the bank’s focus on providing a safe and efficient platform for clients to transact and manage digital asset risks while adhering to regulatory requirements. This initiative marks a significant step for Standard Chartered in integrating cryptocurrency trading into its services, catering to the evolving needs of the financial market.
