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Hong Kong stocks fell after China’s economy slowed across the board in July, with factory activity, investment, and retail sales disappointing. Subdued earnings also weighed on the Hang Seng. However, the onshore CSI 300 Index ended the morning session higher, with small caps outperforming.

The yen and Japanese stocks gained after the nation’s economy expanded faster than expected last quarter, boosting the case for the Bank of Japan to raise its benchmark rate again this year. JGB yields also rose, despite the chief trade negotiator saying US Treasury Secretary Scott Bessent isn’t directly asking the BOJ to hike.

The blistering run in stocks hit a wall as a pick-up in inflation lifted bond yields alongside the dollar, with traders paring bets the Federal Reserve will cut interest rates next month. The S&P 500 eked out another record despite closing nearly unchanged.

The administration is in talks with Intel Corp. to have the US government potentially take a stake in the beleaguered chipmaker, helping support the company’s effort to expand domestic manufacturing.

US Treasury Secretary Scott Bessent said he isn’t calling for a series of interest-rate cuts from the Federal Reserve, just pointing out that models suggest a “neutral” rate would be about 1.5 percentage points lower. Meanwhile, Federal Reserve Bank of Richmond President Tom Barkin said he sees signs that the environment for US consumers improved in July.

Private credit funds struggle to put money to work amid deal slowdown

Private credit leaders have long anticipated a rebound in deal activity, but that optimism faded in the second quarter. US tariffs and a persistent slowdown in transactions curbed how much capital this key segment of the market could deploy. While buyout financing has faced years of sluggish activity, tariff-driven volatility further dampened deployment. Still, lenders are looking to the second half of the year for a potential pickup — particularly if the Federal Reserve moves to cut rates in September. (Bloomberg Markets | Aug 14)

Fed's leverage ratio plan splits opinion

The US Federal Reserve has proposed reforms to the leverage ratio aimed at easing balance sheet pressure and spurring banks to trade more US Treasurys — particularly after recent bouts of market stress. The changes could unlock up to $6 trillion in capacity for the biggest banks, but some industry experts doubt the boost to Treasury trading will be significant. (Risk | Aug 14) see also Fed rate-cut positions rise after July inflation data. (Bloomberg Markets + Politics | Aug 12)

CFOs increasingly explore cryptocurrency as a treasury tool

A Deloitte survey finds that CFOs are showing rising interest in incorporating cryptocurrency into their investment and payment strategies, with 23% planning adoption within the next two years. They cite potential benefits such as stronger customer privacy and smoother cross-border transactions, though concerns remain over price volatility and regulatory hurdles. (CFO | Aug 11)

Record-breaking buyback boom in 2025

US companies are on track for a record-breaking share buyback year in 2025, with nearly $984 billion announced so far and projections topping $1.1 trillion, according to Birinyi Associates. Tech leaders like Apple and Alphabet, along with major banks such as JPMorgan and Bank of America, are driving the surge, fueled by robust earnings, ample cash reserves, and tariff-related investment slowdowns — helping push US stock indexes to all-time highs. (The Wall Street Journal | Aug 10)

Investors cautious as corporate credit spreads near historic lows

Corporate credit spreads have tightened to levels last seen in 1998, with investment-grade spreads at just 78 basis points—just shy of the record low of 77 bps. Analysts warn that such narrow spreads reflect an overly optimistic economic outlook, with UBS strategists calculating they imply nearly 5% global growth, far above the IMF’s 3% forecast. (Bloomberg Markets | Aug 10)

A silhouetted photographer captures the scene at the Ai4 conference in Las Vegas this week. Photo: Brian Cahn | ZUMA Pressa

Under siege from constant hacks, security leaders embrace AI

Facing staffing shortages and the threat of being outmatched by AI-driven attacks, security operations centers are increasingly deploying automated “robot analysts.” Leaders at Southwest Airlines, Alimentation Couche-Tard, and Syniverse say agentic AI is now taking on tasks once handled by entry-level SOC staff. The implications for newcomers hoping to launch a career in cybersecurity remain uncertain.

— The Wall Street Journal

DARPA's AI cyber challenge crowns winners for automated bug fixing

The Pentagon’s two-year-long AI Cyber Challenge (AIxCC) concluded last week in Las Vegas, where seven finalist teams showcased autonomous systems capable of detecting and repairing vulnerabilities in open-source software. Using advanced AI tools, the teams tackled flaws that typically demand human intervention — weaknesses that have played a role in several major cybersecurity incidents in recent years.

— Bloomberg Cyber

Who is footing the bill for $3 trillion of data centers?

A surge in AI infrastructure spending is fueling an unprecedented $3 trillion wave of data center construction, led by Meta, Google, Amazon, and Microsoft. The sheer scale of these investments has sparked concerns over potential overcapacity and the swift turnover of aging technology. Private capital — particularly debt financing — is playing a key role in spreading the risk. Yet questions remain about whether these projects will deliver lasting profits, given the unpredictable trajectory of AI demand and the relentless pace of innovation.

— Financial Times

Fewer Americans are drinking alcohol, Gallup finds

A growing belief that even moderate drinking poses health risks is contributing to a decline in alcohol consumption, a Gallup poll released Wednesday shows. Just 54% of U.S. adults say they drink liquor, wine, or beer — the lowest share in Gallup’s nearly 90 years of tracking, down one point from the previous record low. The decline doesn’t appear to stem from adults substituting alcohol with other substances.

— CBS News | Associated Press

Wall Street sets off trans-Atlantic exodus from once-feted club

Within the world’s largest climate coalition for banks, speculation is growing that a Wall Street-led departure could soon ripple into the European Union. The Net-Zero Banking Alliance, which aims to decarbonize global finance, may see defections from major EU banks with significant US operations. A primary concern appears to be the risk of facing accusations in the US of holding an anti-oil stance.

— Bloomberg Green | ESG & Investing

Meteorite that hit Georgia home predates Earth

Scientists at the University of Georgia have confirmed that a meteorite that crashed into a McDonough home is older than Earth itself. Classified as a chondrite — the most common type of stony meteorite — estimated to be 4.56 billion years old, making it about 20 million years older than our planet.

— BBC | Aug 10