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Bloomberg
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China's Rare-Earth Magnet Exports to US Hit Six-Month High After Trade Deal
China's flows of rare-earth magnets to the US continued to recover in July — with volumes rising 76% month-on-month — after Beijing agreed to normalize exports as part of its trade truce with Washington. The Asian nation shipped 619 tons of rare-earth permanent magnets to the US, up from a low of 46 tons in May, when the two countries were still locked in a damaging tit-for-tat trade war. China put export controls on the components, weaponizing the nation's 90% grip on global production to squeeze US factories and pile pressure on President Donald Trump.
Business Insider
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Stock Market News Review: SPY, QQQ Tumble on Alarming AI Report as Momentum Fades
Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) finished Tuesday's trading session in negative territory following a report from MIT that cast doubt on the sustainability of AI. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The report estimates that U.S. companies have invested between $35 and $40 billion in AI, though the returns have been underwhelming. 'Just 5% of integrated AI pilots are extracting millions in value, while the vast majority remain stuck with no measurable [profit and loss] impact,' said MIT. The report surveyed hundreds of leaders and employees and collected data from 300 public AI announcements. Over the weekend, OpenAI CEO Sam Altman said that he believes the AI industry is experiencing a bubble, reported The Verge. 'I do think some investors are likely to lose a lot of money, and I don't want to minimize that, that sucks,' Altman said. 'There will be periods of irrational exuberance.' Meanwhile, the White House announced that President Trump is working to set up a bilateral meeting between Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin in an attempt to secure a ceasefire or truce. Trump added that he was open to attending the meeting. Furthermore, Trump has pledged air support for Ukraine as part of a security guarantee package while insisting that U.S. troops would not set foot on Ukrainian territory. Discussions surrounding these guarantees between the U.S., Ukraine, and several other European nations are set to begin in the coming days. Trump's efforts to broker peace between several nations haven't exactly improved his ratings. According to a Reuters/Ipsos poll ended August 18, Trump's approval rating is still at a term-low of 40%, remaining unchanged from late July. 54% of the respondents worried that Trump was too closely aligned with Russia. Trump met with Putin last week in Anchorage, Alaska to try and resolve the Russia-Ukraine war. To end on a positive note, S&P Global affirmed the U.S. long-term credit rating of AA+, citing elevated tariff revenue that is expected to offset the tax breaks and spending measures from The One Big Beautiful Bill. 'Amid the rise in effective tariff rates, we expect meaningful tariff revenue to generally offset weaker fiscal outcomes that might otherwise be associated with the recent fiscal legislation, which contains both cuts and increases in tax and spending,' said S&P.
CNBC
32 minutes ago
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Trump eyes U.S. government stakes in other chip makers that received CHIPS Act funds: Reuters
U.S. Commerce Secretary Howard Lutnick is looking into the federal government taking equity stakes in computer chip manufacturers that receive CHIPS Act funding to build factories in the country, two sources said. Expanding on a plan to receive an equity stake in Intel in exchange for cash grants, a White House official and a person familiar with the situation said Lutnick is exploring how the U.S. can receive equity stakes in exchange for CHIPS Act funding for companies such as Micron, Taiwan Semiconductor Manufacturing Co and Samsung. Much of the funding has not yet been dispersed. Aside from Intel, memory chipmaker Micron is the biggest U.S. recipient of CHIPS Act cash. TSMC declined comment. Micron, Samsung and the White House did not respond to requests for comment. White House press secretary Karoline Leavitt confirmed on Tuesday that Lutnick was working on a deal with Intel to take a 10% government stake. "The president wants to put America's needs first, both from a national security and economic perspective, and it's a creative idea that has never been done before," she told reporters. While Lutnick said earlier on CNBC that the U.S. does not want to tell Intel how to run its operations, any investment would be unprecedented and ramps up a new era of U.S. influence on the big companies. In the past, the U.S. has taken stakes in companies to provide cash and build confidence in times of economic upheaval and uncertainty. In a similar move earlier this year, Trump approved Nippon Steel's purchase of U.S. Steel after being promised a "golden share" that would prevent the companies from reducing or delaying promised investments, transferring production or jobs outside the U.S., or closing or idling plants before certain time frames, without the president's consent. The two sources said Treasury Secretary Scott Bessent is also involved in the CHIPS Act discussions, but that Lutnick is driving the process. The Commerce Department oversees the $52.7 billion CHIPS Act, formally known as the CHIPS and Science Act. The act provides funding for research and grants for building chip plants in the U.S. Lutnick has been pushing the equity idea, the sources said, adding that Trump likes the idea. The U.S. Commerce Department late last year finalized subsidies of $4.75 billion for Samsung, $6.2 billion for Micron and $6.6 billion for TSMC to produce semiconductors in the U.S. In June, Lutnick said the department was re-negotiating some of former President Joe Biden's grants to semiconductor firms, calling them "overly generous". He noted at the time that Micron offered to increase its spending on chip plants in the U.S.
