EU’S GENERAL COURT UPHOLDS AN ANTITRUST RULING ISSUED TO ALPHABET

In 2018, Google was fined for allegedly violating anti-competitive practices with its use of the Android Operating System to promote the Google search engine. Google’s appeal that Android devices should be viewed as competitors to Apple products and that users could remove Google apps was unsuccessful. The only consolation was that Google’s fine, which was the largest ever issued by the European Union, was lowered by 5% to approximately €4.12 billion. Such a ruling indicates that the EU is standing firm on ensuring big tech companies are not engaging in anti-competitive behavior. Google stated that Android “has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world.”

THE BUREAU of LABOR STATISTICS RELEASES AUGUST’S CONSUMER PRICE INDEX

The CPI reading rose by 8.3%, down from 8.5% in July. Core CPI, which excludes food and energy prices, increased 6.3% in August. Despite the University of Michigan’s consumer sentiment survey showing one-year inflation expectations falling to 4.6% in September, the Dow Jones fell by 1200 points, the worst one-day fall since June 2020. This influenced the recent rise in the average rate on a thirty-year mortgage, which jumped to over 6% for the first time since 2008. The Euro dipped below parity, as traders anticipated larger rate hikes in the U.S. alongside an economic slowdown in Europe. The CPI data led the CME’s FedWatch Group to believe there is a 40% chance that the Federal Reserve will announce an increase to the discount rate by as much as 1% during its meeting from Sep 20 – Sep 21.

Campari Owner in Big Trouble Over Tax Evasion

Italian financial police have seized $1.5 Bn worth of shares from Lagfin, the Luxembourg-based holding company that controls the Campari Group, over alleged tax evasion. Prosecutors in Milan claim Lagfin failed to pay over $5.0 Bn in capital gains taxes between 2018 and 2020, linked to its decision to move assets abroad to avoid Italy’s exit tax. The investigation suggests Lagfin transferred its Italian assets into foreign ownership mainly for tax reasons. While Campari itself is not accused of wrongdoing, its chairman, Luca Garavoglia, and the head of its Italian branch, Giovanni Berto, are reportedly under investigation. Lagfin, which holds over 50.0% of Campari’s shares and 80.0% of its voting rights, claims that it has always complied with Italian tax laws. The company emphasized that the seizure does not affect its control of Campari, which is valued at roughly $7.0 Bn on the Milan Stock Exchange, and that the case is strictly a tax dispute involving its holding structure.

Nexperia Stops Chip Exports to China, Threatening Global Car Production

Dutch semiconductor firm Nexperia B.V. suspended all chip shipments to China following new export restrictions imposed by the Dutch government. This disrupts about 80.0% of the company’s production capacity, most of which is in China, and threatens to slow down global automotive manufacturing. The company supplies components used in power management and vehicle control systems for major automakers across Europe and Asia. The export halt intensifies ongoing trade tensions between Europe and China, raising fears of another global semiconductor shortage. Industry professionals raise the issue that European car manufacturers could face production delays within weeks unless alternative suppliers are secured.

OpenAI Prepares for a $1 Trillion IPO

OpenAI, the developer of ChatGPT, is preparing for a major IPO that could value the company at up to $1.0 Tn. It was recently valued at $500 Bn following a $6.6 Bn secondary share sale earlier in FY’25. This demonstrates a large investor interest in generative AI. With more companies partnering with GPT and adopting its products, analysts project OpenAI’s revenue to exceed $25.0 Bn by FY’26. The company’s expected IPO could be one of the largest in history to date. Analysts strongly believe that OpenAI’s close partnerships with Microsoft and other clients will play a key role in rapid revenue growth after the IPO.

Amazon Implements Workforce Cuts

Amazon plans to cut 10.0% of its workforce by 30.0K corporate jobs. The company did this to increase its funding towards AI as management believes it would help in streamlining operations. Despite the layoffs, Amazon reported Q3’25 revenue of $180.2 Bn, which is a 13.0% increase YoY. Its cloud computing segment rose 20.0% YoY to $33.0 Bn in sales. Amazon stated that the layoffs will primarily affect administrative and overlapping roles as it transfers resources to AI automation. The company also mentioned rising fulfillment and logistics costs as factors driving the AI enhancements.

Xi and Trump Meet to Ease Trade Tensions

President Trump and Chinese President Xi Jinping met in Busan, South Korea, agreeing to lower U.S. tariffs on Chinese goods in exchange for Beijing’s pledge to curb fentanyl exports. China also committed to easing rare-earth restrictions and purchasing more U.S. soybeans. The deal offered brief market relief without resolving deeper trade and technology disputes. The agreement provided short-term relief to global markets and boosted investor sentiment temporarily. However, it did not address deeper disputes over technology, intellectual property, and long-term trade balances. Analysts noted that while the meeting signaled progress, it largely reflected a short term progress rather than a lasting resolution. Overall, the outcome highlighted both nations’ desire to stabilize relations without fundamentally changing their relationship.

Consumer Confidence Weakens at Six-Month Low

U.S. consumer confidence declined for the third consecutive month in October, reaching its lowest level since April. The index fell by 1.0 point to 94.6, reflecting growing pessimism about future business conditions, income prospects, and job availability. The Expectations Index weakened by 2.9 points, remaining below levels that typically signal a recession ahead. The decline comes amid a broader slowdown in official economic reporting due to the government shutdown. Major companies such as Amazon and UPS also announce layoffs. Especially ongoing government shutdown has further clouded visibility, delaying official economic reports and heightening public anxiety. Consumers are becoming more cautious with spending as financial and job market outlooks weaken. Overall, the data suggest growing unease about the economy’s resilience heading into late 2025.

U.S. Treasury Yields Edge Higher Following Fed Cut

Treasury yields rose modestly after the Fed’s decision, as market reacted to Chair Jerome Powell’s warning that another cut in December is “not a foregone conclusion.” The 10-year yield climbed to 4.09%, while the 2-year yield increased to 3.61%. The move reflected investor uncertainty over the Fed’s next steps and growing divisions among policymakers, with some analysts noting that reduced policy visibility could heighten volatility in bond markets. Elongated government shutdown has made it harder for traders to anticipate the central bank’s next moves. The uptick in yields suggested investors are demanding slightly higher returns to offset uncertainty. Overall, the bond market’s reaction reflected a delicate balance between hopes for continued rate cuts and concerns about the Fed’s divided stance.

The Fed Cuts Rates by 25 Basis Points

The Federal Reserve lowered its benchmark rate by 25 bps to a range of 3.75% – 4.00%, making a second rate cut in 2025. Chair Jerome Powell emphasized that another reduction in December is “far from certain,” citing a growing divide among policymakers amid a data blackout caused by the ongoing government shutdown. The vote was 10–2, with one member preferring to keep rates unchanged, and another calling for a larger half-point cut. His cautious tone tempered investor optimism following the announcement. Overall, Powell reiterated that monetary policy remains data dependent, signaling a careful approach to future rate moves.

Oracle Chooses AMD Chips for AI Cloud Expansion

Oracle is partnering with Advanced Micro Devices (AMD) to power it’s AI cloud services. The tech giant announced that it will deploy 50,000 of AMD’s upcoming MI450 accelerator in its data centers starting in the third quarter of 2026, with their plan to expand further in 2027 and beyond. This makes Oracle the first major cloud provider to sign on for AMD’s new AI chip at such scale, giving it way more options than Nvidia’s GPU’s that currently are dominating the market. This partnership turns out to be a win for both sides because AMD gets a major cloud customer for its MI450 chips, while Oracle can offer customers more processor choices as demand for AI computing power continues to outpace supply. The announcement gave AMD’s stock a boost this week with its stock rising approximately 6%

Walmart Partners with OpenAI for AI Shopping

Walmart is diving into the AI shopping game with new partnership that brings ChatGPT directly into its stores and apps. The retail giant teamed up with open AI to let Walmart and Sam’s Club customers shop through the ChatGPT app using a feature called “Instant Checkout.” Shoppers will now be able to converse with a AI to get product recommendations and directly place orders from Walmart’s catalog through the chatbot. It’s part of Walmart’s big push to expand into AI tools to catch up with Amazon on tech, including an in-house assistant called “Sparky.” The market responded positively to the announcement, with Walmart’s stock jumping about 5% to an all time high. The company is betting that AI feat powered features like ChatGPT checkout will make shopping a lot easier and more personalized, which should help drive more sales both online and in store.