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.

U.S. and China Advance Trade Cooperation During Xi State Visit

The United States and China advanced several trade and investment initiatives during Chinese President Xi Jinping’s state visit to Washington this week. The visit marked the first White House visit by a Chinese president in more than a decade and followed agreements reached during the two countries’ May summit in Beijing.

According to a White House fact sheet, the two governments formally operationalized the U.S.-China Board of Trade and U.S.-China Board of Investment, mechanisms created earlier this year to provide structured channels for addressing trade and investment issues. Through the Board of Trade, the countries reached consensus on recommendations for more favorable tariff treatment covering $30 billion of non-sensitive goods in each direction.

The potential tariff treatment would cover U.S. exports including agricultural products, seafood, wood products, cosmetics, and medical devices. Chinese goods covered by the recommendations include consumer products such as small appliances, toys, holiday decorations, and children’s car seats. The two sides also created an agricultural market-access working group.

China also committed to purchasing at least 10 million metric tons of U.S. coal in both 2027 and 2028. The governments said they would continue discussions surrounding rare earths and critical minerals, an area that has become increasingly important because these materials are widely used in semiconductors, electric vehicles, defense systems, and other advanced technologies.

The developments matter because trade relations between the world’s two largest economies affect companies across agriculture, manufacturing, technology, energy, and consumer goods. Lower trade barriers can reduce costs for importers and exporters, while greater certainty around critical-mineral supplies can help businesses make longer-term investment and supply-chain decisions.

At the same time, the announced tariff measures are recommendations within the bilateral trade framework rather than evidence that all broader U.S.-China trade disagreements have been resolved. Investors will therefore continue watching how the commitments are implemented and whether negotiations lead to additional changes in tariffs, market access, and critical-mineral supply chains.

Source: https://www.whitehouse.gov/fact-sheets/2026/09/fact-sheet-president-donald-j-trump-advances-a-fair-and-reciprocal-relationship-with-china-while-hosting-historic-state-visit/

Oil Prices Slide as U.S.-Iran Talks Raise Supply Hopes

Oil prices fell sharply on Friday as investors became more optimistic that negotiations between the United States and Iran could eventually ease disruptions to Middle Eastern energy supplies. Brent crude futures declined $2.28, or 2.1%, to $104.32 per barrel, while West Texas Intermediate fell $2.20, or 2.3%, to $92.41 per barrel. For the full week, Brent finished slightly higher, while WTI declined roughly 8%.

U.S. and Iranian negotiators meeting in New York were discussing a potential phased path out of the conflict. According to reporting cited by Reuters, one possible framework would involve Iran reopening the Strait of Hormuz while the United States lifts its economic blockade of Iran. Before the conflict, roughly 20% of global oil supplies moved through the Strait, making access to the waterway particularly important for global energy markets.

Supply conditions have also improved elsewhere in the region. Saudi Arabia has been working to restore its East-West Pipeline, which provides an alternative route from eastern oil fields to the Red Sea and allows some exports to bypass the Strait of Hormuz. The pipeline has capacity of approximately 7 million barrels per day, although restored capacity does not necessarily translate immediately into equivalent additional exports.

Despite the decline in prices, significant uncertainty remains. Houthi attacks against Saudi Arabia continue to create concerns about regional supply disruptions, while the potential U.S.-Iran agreement remains under negotiation rather than finalized. As a result, traders continue to attach a geopolitical risk premium to crude prices.

Oil prices have important implications beyond the energy sector. Lower prices can reduce gasoline and transportation costs, ease pressure on household budgets, and help lower inflation expectations. Conversely, another disruption that pushes oil prices higher could reinforce inflation and make it more difficult for central banks to reduce interest rates.

The key question is whether diplomatic progress results in a sustained reopening of major supply routes. A durable agreement could ease one of the largest sources of global inflation pressure this year, while renewed escalation could quickly reverse the recent decline in crude prices.

Source: https://www.reuters.com/business/energy/oil-prices-fall-markets-look-iran-truce-remain-wary-attacks-oil-facilities-2026-09-25/

Initial Jobless Claims Remain Below 200,000

The number of Americans filing new applications for unemployment benefits remained below 200,000 last week, providing further evidence that the U.S. labor market remains relatively resilient. Initial jobless claims totaled 197,000 for the week ended September 19, a decrease of 1,000 from the previous week’s revised level of 198,000. Economists surveyed by Reuters had expected approximately 201,000 claims.

The four-week moving average, which helps smooth out weekly volatility, declined by 1,750 to 202,250. The previous week’s average was revised upward to 204,000. The relatively low level of claims suggests employers have continued to limit layoffs despite elevated interest rates and concerns about slower economic growth.

Jobless claims are closely followed because they provide one of the most frequent indicators of labor-market conditions. A sharp increase can signal that companies are beginning to reduce headcount and that economic conditions are weakening. Conversely, claims remaining near historically low levels suggest businesses are still reluctant to let workers go.

A resilient labor market can support the broader economy by protecting household income and consumer spending. When workers remain employed, they are generally better positioned to continue spending on housing, transportation, retail, and services, helping support corporate revenues and economic growth.

However, continued labor-market strength can also complicate the Federal Reserve’s inflation fight. Strong employment can support demand and wage growth at a time when policymakers are already concerned about inflation from higher energy prices and other cost pressures.

For investors, the labor market therefore remains a balancing factor. Low layoffs reduce the risk of an immediate recession, but continued economic resilience could also contribute to interest rates remaining elevated. Future employment reports will help determine whether the labor market is beginning to weaken under tighter financial conditions or remains strong enough to support continued consumer spending.

Source: https://www.kitco.com/news/article/2026-09-24/gold-under-pressure-jobless-claims-remain-below-200k-supporting-further

Treasury Yields Climb to Highest Level Since 2007

U.S. Treasury yields climbed to multi-decade highs this week as stronger economic data reinforced expectations that interest rates could remain elevated for longer. The benchmark 10-year Treasury yield reached 5.23% on Friday, its highest level since 2007, while the 30-year yield climbed above 5.5%, reaching its highest level since 2004.

The selloff in government bonds was driven partly by evidence that the U.S. economy remains stronger than expected. S&P Global’s flash U.S. Composite PMI rose to 58.4 in September from 56.0 in August, its highest reading since July 2021. The index measures activity across manufacturing and services, and a reading above 50 indicates expansion. Stronger business activity raised concerns that continued economic growth could make inflation more difficult to control.

Additional data on Friday reinforced that picture. Orders for non-defense capital goods excluding aircraft, a closely watched indicator of business investment, increased 1.6% in August, compared with economists’ expectations for a 0.5% increase. July’s figure was also revised upward to a 0.6% gain. Business spending on equipment has now recorded two consecutive quarters of double-digit growth, supported significantly by investment in artificial intelligence infrastructure.

Strong economic growth would normally be positive for financial markets, but the current inflation environment makes the situation more complicated. A resilient economy gives the Federal Reserve less reason to lower interest rates and could support additional tightening if inflation remains elevated. Investors were still pricing in further rate increases even as oil prices declined later in the week.

Higher Treasury yields also affect the broader economy because government bond yields serve as benchmarks for borrowing costs. Rising yields can increase mortgage rates, corporate financing costs, and the required return on new investments. They can also pressure stock valuations because investors can earn higher returns from relatively lower-risk government bonds.

The key question for markets is whether economic growth can remain strong while financing costs continue rising. If business activity and investment remain resilient, yields could stay elevated. However, sustained borrowing costs above recent historical levels could eventually place greater pressure on consumers, companies, and equity valuations.

Source: https://www.wsj.com/finance/treasury-yields-rise-amid-u-s-iran-diplomatic-stalemate-e763fe89

Costco Reports Strong Fourth-Quarter Results as Consumer Demand Remains Resilient

Costco reported strong fourth-quarter results as consumers continued spending at the warehouse retailer despite inflation and elevated borrowing costs. Net sales for the 16-week quarter ended August 30 increased 11.2% to $93.9 billion, compared with $84.4 billion during the same period last year. Including membership fees, total quarterly revenue reached approximately $95.7 billion.

Comparable sales increased 9.4% across the company, or 6.7% after excluding changes in gasoline prices and foreign-exchange rates. U.S. comparable sales rose 10.7%, while digitally enabled sales increased 19.5%, highlighting continued growth in Costco’s online business alongside its physical warehouse operations.

Costco also reported quarterly net income of approximately $3.0 billion, or $6.75 per diluted share, compared with $2.61 billion and $5.87 per share one year earlier. Results included a $0.15-per-share benefit from tariff refunds, although Costco said it reinvested part of those savings into providing additional value to members.

The results show that Costco continues to benefit from its value-focused business model. During periods when consumers are concerned about inflation and household budgets, the company’s membership structure and bulk-discount strategy can attract customers looking to reduce their per-unit spending on groceries and household essentials.

Membership fees also provide Costco with a recurring source of high-margin revenue. During the quarter, membership-fee revenue reached $1.85 billion, compared with $1.72 billion a year earlier.

Costco’s results are also useful as a broader indicator of consumer health. Strong sales suggest that household spending remains resilient, although consumers may increasingly be directing purchases toward retailers perceived as offering better value. The company currently operates 939 warehouses globally, including 647 in the United States and Puerto Rico.

For investors, the key question is whether Costco can continue producing strong comparable-sales growth while maintaining its value proposition as inflation, tariffs, and consumer spending patterns evolve.

Source: https://www.wsj.com/business/earnings/costco-reports-higher-fourth-quarter-profit-as-sales-membership-fees-rise-4156cc4a

Meta’s Muse AI Agent Shakes Up Consumer-Facing Stocks

Meta’s new AI agent, Muse, quickly became the top free app in the U.S. and Canada, surpassing ChatGPT on both Apple’s App Store and Google Play. The app allows users to delegate tasks such as shopping, travel booking, and form-filling, and recorded about 2.8 million downloads within two weeks of launch.

The rapid adoption has already affected public markets. Investors are concerned that AI agents could make it easier for consumers to compare prices and switch providers, potentially weakening customer loyalty across sectors such as banking, insurance, travel, fitness, and food delivery. JPMorgan and Wells Fargo each fell more than 3% during the week, Charles Schwab declined nearly 5%, while Booking Holdings and TripAdvisor fell more than 6%.

At the same time, companies that partner with Muse have benefited. Shopify shares rose more than 11% after announcing that it would support checkout through the AI agent, while PayPal also partnered with Meta to allow users to discover and purchase products directly through Muse. Meta shares gained nearly 13% during the week.

The launch is significant because it shows how AI is beginning to move beyond chatbots and into tools that can perform tasks directly for consumers. If personal AI agents become widely adopted, they could change how people shop, book travel, manage subscriptions, and interact with financial-services companies.

For investors, the main question is which businesses will benefit from becoming integrated into AI-agent ecosystems and which could lose pricing power or customer relationships as consumers rely more heavily on automated comparison and purchasing tools.

Source: https://www.reuters.com/business/finance/metas-muse-rekindles-fears-over-winners-losers-personal-ai-agent-emerges-2026-09-23/

Anthropic Signs $11.6 Billion Cloud Agreement With Akamai

Akamai Technologies announced a major expansion of its relationship with Anthropic through an $11.6 billion cloud-computing commitment over seven years. Anthropic will use Akamai Cloud’s distributed infrastructure and software to support growing CPU workloads as demand for its Claude artificial-intelligence models continues to increase.

The agreement could become even larger. Anthropic has the option to expand its commitment by an additional $9 billion, potentially bringing the total relationship to approximately $20 billion. As part of the agreement, Akamai also issued Anthropic warrants that could ultimately represent approximately 5% of Akamai’s outstanding common stock if the relationship expands fully.

Akamai expects to spend approximately $5.5 billion in capital expenditures to support the initial contract. About $1.7 billion of that spending is expected in 2026 to secure equipment and supply-chain components, followed by approximately $3.1 billion in 2027 as the infrastructure is built out. Akamai expects the contract to reach its full revenue run rate by the end of 2028 and generate roughly $1.7 billion in annual revenue thereafter.

The deal highlights the enormous infrastructure requirements behind the rapid growth of generative AI. Training and operating increasingly sophisticated models requires large amounts of computing capacity, storage, networking equipment, electricity, and data-center investment.

For Akamai, the agreement represents a significant expansion beyond its traditional content-delivery and cybersecurity businesses and strengthens its position as an infrastructure provider for AI companies. For Anthropic, securing long-term computing capacity gives the company additional infrastructure to support expanding usage of Claude.

The transaction also illustrates how the AI boom is creating opportunities beyond chipmakers. Cloud providers, data-center operators, networking companies, utilities, and other infrastructure businesses are increasingly benefiting from the capital required to build and operate AI systems.

Source: https://www.wsj.com/tech/anthropic-to-pay-akamai-technologies-11-6-billion-over-seven-years-for-cloud-services-7a55360b

Paramount Settles Antitrust Lawsuit, Clearing Path for Warner Bros. Discovery Deal

Paramount Skydance reached a settlement with California and 11 other states that had sued to block its proposed merger with Warner Bros. Discovery, removing one of the largest remaining legal obstacles to the transaction. The combination would bring together two major Hollywood studios along with streaming platforms Paramount+ and HBO Max and television networks including CBS and CNN.

As part of the settlement, Paramount agreed to several conditions aimed at protecting competition and supporting the U.S. entertainment industry. The combined company must release at least 30 theatrical films annually, with that number eventually increasing to 32, and commit at least $1.5 billion of additional spending on domestic film production over five years. Paramount also agreed to preserve key studio facilities and establish an editorial-independence board for CNN and CBS News.

The agreement includes financial penalties and potential asset divestitures if Paramount fails to meet certain commitments. An independent trustee and compliance monitor will also oversee parts of the settlement. The states agreed to lift the order preventing the deal from closing, although the settlement does not represent an admission of antitrust liability by Paramount.

The transaction is significant because it would create one of the largest entertainment companies in the United States at a time when traditional media companies are competing with large technology platforms for viewers and advertising dollars. Paramount expects the combination to create approximately $6 billion in operating synergies, although the merged company could begin with nearly $80 billion of debt.

For investors, the key question is whether combining the companies can generate enough cost savings and streaming scale to offset the large debt burden and continued pressure on traditional television. The settlement moves the transaction significantly closer to completion while creating a major new competitor in the global entertainment and streaming market.

Source: https://www.wsj.com/business/media/paramount-settles-states-antitrust-suit-clearing-way-for-warner-megadeal-95588926?utm_source

Weak Domestic Demand Continues to Weigh on China’s Economy

China’s economy delivered another mixed set of economic data in August, highlighting a widening gap between strong industrial production and weak domestic demand. Industrial production increased 5.2% from a year earlier, accelerating from 4.5% growth in July and exceeding economists’ expectations. The improvement was supported partly by resilient overseas demand for Chinese manufactured goods.

Consumer spending, however, remained weak. Retail sales increased only 0.4% from a year earlier, slowing from 0.6% growth in July and falling below economists’ expectations for approximately 0.8% growth. The slowdown suggests Chinese households remain cautious about spending despite stronger factory activity.

Investment data showed an even more significant weakness. Fixed-asset investment declined 7.2% during the first eight months of 2026 compared with the same period one year earlier. That represented a deeper contraction than the 6.7% decline recorded during the January-to-July period.

The weakness in consumption and investment contrasts sharply with China’s manufacturing sector. Industrial output continues to benefit from strong exports and rapid growth in advanced industries such as electronics, batteries, industrial robotics, and other technology-related manufacturing.

This creates an increasingly uneven economic model. Chinese factories continue producing goods at a relatively strong pace, but domestic households and businesses are not absorbing output at the same rate. As a result, manufacturers become more dependent on overseas markets for future growth.

That imbalance has implications beyond China. Strong Chinese manufacturing and weak domestic demand can increase the amount of goods available for export, potentially intensifying competition for manufacturers in the United States, Europe, and other Asian economies. At the same time, weak Chinese consumer demand can hurt multinational companies that depend on China as a major source of sales.

Investment weakness is also important because China historically relied heavily on property development, infrastructure spending, and other fixed investment to drive economic growth. A prolonged decline in these areas makes it more difficult for the traditional investment-led model to support the economy.

For policymakers, the challenge is therefore not simply increasing factory output. China must also strengthen household confidence, encourage consumption, and create an environment in which businesses are more willing to invest domestically.

For now, the August data suggest the economy remains heavily dependent on manufacturing and exports while consumer spending and investment continue to lag. The key question is whether policymakers can successfully generate stronger domestic demand and create a more balanced source of economic growth.

Source:
https://www.wsj.com/economy/weak-domestic-demand-continues-to-weigh-on-chinese-economic-activity-b8ba09d5

Rising Oil Prices and Borrowing Costs Revive Stagflation Fears

Higher energy prices and rising borrowing costs are increasing concerns that the global economy could move toward stagflation, an environment in which inflation remains elevated while economic growth slows. The combination is particularly difficult because the policies typically used to fight inflation can make weak growth even worse.

Oil prices have returned above $100 per barrel as the conflict in the Middle East continues to threaten major energy-production and shipping routes. Brent crude settled at $105.83 per barrel on September 16, even after Saudi Arabia offered additional crude supplies through Oman in an effort to reduce pressure on global markets.

The impact extends beyond crude oil. Diesel prices have approached record levels, jet fuel costs have risen sharply, and European natural-gas prices have climbed as buyers compete for available supplies. Higher energy prices eventually flow through the broader economy because fuel and electricity are inputs into transportation, manufacturing, logistics, and household spending.

At the same time, global borrowing costs have risen substantially. Government bond yields across major developed economies have reached levels not seen since the global financial crisis, increasing financing costs for consumers, companies, and governments.

Higher bond yields affect the economy through several channels. Mortgage rates rise, companies pay more to issue debt, governments spend more servicing existing obligations, and new investment projects become more difficult to justify because the cost of financing them increases.

The challenge for central banks is that the energy shock is pushing inflation higher just as higher interest rates begin to create pressure on economic activity. Eurozone inflation accelerated to 3.3% in August from 2.9% in July, while U.K. inflation reached 3.1%. Markets have consequently shifted from expecting monetary-policy easing toward anticipating additional rate increases in several major economies.

Normally, slowing economic growth gives central banks room to lower interest rates. Stagflation makes that response more difficult because lowering rates could stimulate demand and worsen inflation. Raising rates, however, could further weaken consumers and businesses already facing higher energy costs.

So far, major economies have remained relatively resilient. U.S. retail sales have surprised to the upside, economic activity in the U.S. and Europe continues to expand, and investment linked to artificial intelligence has supported growth.

The major question is whether that resilience can continue if oil remains above $100 and borrowing costs stay elevated. If consumers eventually respond by reducing spending and businesses delay investment while inflation remains high, policymakers could face the difficult combination of weakening growth and persistent price pressures that defines stagflation.

Source:
https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/rising-oil-borrowing-costs-fuel-stagflation-fears-for-global-economy/articleshow/134329348.cms?from=mdr