It was a period of power play abroad, and shocks in domestic policy that reverberated through markets and politics alike.
The world’s largest economies have shown little regard for subtlety. From Beijing’s parade of military might with Moscow by its side, to Washington’s crackdown on immigration and the renewed pressure placed upon the Fed.
Investors on Wall Street were weighing a weak US jobs report which heightened expectations for rate cuts. In London, the political turmoil was exacerbated by a resignation of a prominent figure and an hurried reshuffle.
What you should know
Trump’s Week: Fed Pressure Increases, Tech Titans in the White House
The President Donald Trump has officially narrowed down his list of candidates for the Federal Reserve Chair to just three: Kevin Hassett from the National Economic Council, Kevin Warsh, a former Fed governor and Christopher Waller currently serving as Governor. This shows the Administration’s preference for a faster rate of easing in the face if slowed growth.
In Georgia, federal agents arrested 475 people in an immigration raid on a Hyundai EV Battery Complex under construction. Work at the site was suspended following the operation.
South Korea protested when officials announced that more than 300 were held by its own citizens, raising diplomatic tensions around foreign direct investments and supply chains.
On September 4, President Trump held a dinner for high-profile guests in the Rose Garden, which had just been renovated. The event brought together over twenty tech-leaders including Mark Zuckerberg, Tim Cook and Bill Gates.
The event was more of a show than a call to action. Trump asked CEOs “How much do you invest in our country ?”–?” and pledges began to pour in.
Meta and Apple have each pledged about $600 Billion in US Investments through 2028.
Xi’s parade with Putin, Kim and Xi broadcasts strategic alliance
China celebrated the anniversary of its WWII victory with a large military parade, attended by Vladimir Putin from Russia and Kim Jong Un from North Korea. The tableau was designed to show cohesion between US rivals in times of war and sanctions.
State media, optics and sequencing were all unambiguous. They emphasized a tighter political theater, expanded defence links and shared grievance stories.
3) UK shock: Rayner quits; Starmer executes a rapid Cabinet reset
Angela Rayner, Britain’s deputy prime minister, resigned following an investigation that found she had violated the Ministerial Code over the underpayment of stamp duty for a recent purchase.
The departure triggered a swift reshuffle. David Lammy became Deputy Premier (and Justice Minister), Yvette cooper was promoted to Foreign Secretary and Shabana Mahamood assumed the Home Office.
This episode has dealt a serious political blow to Keir starmer, the Prime Minister. It also re-opens discussions about Labour’s power balance.
Wall Street finishes mixed with a choppy week
US equities fell on Friday even though the S&P 500, Nasdaq and Dow all posted weekly gains.
The Dow dropped about 0.5% at the end of the day, while the S&P500 fell 0.3%.
Dow -0.3% for the week, S&P +0.3% and Nasdaq up 1.1%. This tape showed a tug-of-war between the weak macro numbers and expectations for further Fed reductions.
The August increase in non-farm payrolls was only by 22,000; prior months were revised downward to reflect a softer trend.
This release from the Bureau of Labor Statistics reinforced expectations for a rate cut at the September Fed Meeting.
The content of this post Weekly recap: Tech titans woo Trump; Xi’s political theater, Starmer’s reshuffle, may change as new developments unfold.
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