Global Market News
Global Equities Decline
Global equities declined this week. The S&P 500 and Nasdaq ended the week down 0.31% and 0.02%, respectively, and the Dow Jones also declined 0.52% on the week. The U.S. 10-year Treasury note tumbled to 4.07%, while the price of West Texas Intermediate crude oil dropped more than 4% to $61.87 per barrel. Volatility, as measured by the CBOE Volatility Index, ended the week at 15.18.
Labor Market Weakness Fuels Rate Cut Speculation
U.S. nonfarm payrolls increased by just 22,000 in August, far below expectations, with a three-month average gain of only 29,000 jobs. The unemployment rate rose to 4.3%, and wage growth slowed to 3.7% year-over-year. June’s revised payrolls showed a decline of 14,000 jobs—the first negative figure since December 2020—prompting markets to price in a higher chance of a more aggressive rate cut. Bond yields fell sharply, and attention now turns to next week’s employment data revisions, which may overshadow the August CPI report. This weaker labor market data is likely to influence the Federal Reserve toward a rate cut at its mid-September meeting, potentially more than previously anticipated.
International Developments
Putin, Kim, and Xi Showcase Unified Front
Russian President Vladimir Putin and North Korean Supreme Leader Kim Jong Un attended a military parade in China this week, as the leaders gathered in Beijing to commemorate the 80th anniversary of Japan’s surrender in WWII. The joint appearance of the three leaders – which has not occurred since the Cold War – signals a deepening strategic axis among three of the West’s most sanctioned powers, projecting unity in defiance of the U.S.-led world order. Also in Beijing was Indian Prime Minister Narendra Modi, whose country was the recent recipient of 50% tariffs from the Trump Administration over its continued purchase of Russian oil. While not staying for the parade, Modi’s decision to attend the concurrent annual summit of the Shanghai Cooperation Organization may signal a warming of relations between the attendees, while Indian-American relations sour.
France’s Bayrou Faces Confidence Vote As Protests Loom
France is slated to hold a vote of confidence for Prime Minister Bayrou’s government on September 8th. The recently appointed Bayrou has been unable to maintain cohesion in the French parliament, which is becoming increasingly fractured along hard left, right, & centrist lines. Forming a majority coalition will be exceedingly difficult should the vote fail, as moderates are refusing to court hardliners on either side and opposing ends of politics are unwilling to compromise with their opposites. Compounding the crisis, a grassroots protest known as the “Block Everything” movement is gaining momentum ahead of its planned nationwide shutdown on September 10th, threatening to paralyze the country in response to Bayrou’s controversial austerity budget and deepening public disillusionment with the political establishment.
Protests Ignite Across Indonesia
Deadly protests ignited last week in Indonesia over government corruption and waste, with the initial flashpoint being an increase in parliamentarians’ housing stipend while the rest of the country faces a cost-of-living crisis. Widespread protests have spread to all of Indonesia’s islands, escalating further since police killed a food delivery worker, who has been taken as a symbol for the country’s economic hardship and reluctant reliance on “gig work.” The Indonesian parliament has since rolled back the housing stipend and introduced travel and pay cuts for parliamentarians, but protests continue, particularly over a new law that allows military members to hold expanded government roles. Protests have also renewed calls for the independence of the Aceh region, which has sought to break away from Indonesia for more than 30 years.
US Social & Political Developments
Court Rules Trump Administration Overreached Authority With Tariffs
The U.S. Court of Appeals ruled in a 7-4 decision that the executive branch had overreached its authority with tariffs, stating that the power to regulate duties and taxes is granted to Congress by the Constitution. This includes “reciprocal” tariffs and “fentanyl” tariffs against Canada, China, & Mexico. However, the court did find that the administration was legally correct in its application of section 232 tariffs, such as with steel & aluminum. The court ruling was stayed so the administration may appeal to the Supreme Court, which it did. If the lower court’s ruling is upheld, then importers may be eligible for refunds on previously paid tariffs; the US government has collected $70 billion in country-based tariff revenue between October 2024 and August 24, 2025.
Health Alliance Forms Amid CDC Shakeup and Florida Vaccine Rollback
The state governments of California, Hawaii, Oregon, and Washington have formed the West Coast Health Alliance in response to what those states’ governors call the “politicization of science.” The stated goal is to provide uniform & evidence-based health recommendations to residents. This move is largely in reaction to the firing of former CDC director Dr. Susan Monarez and all sitting members of the CDC’s Advisory Committee on Immunization Practices (ACIP). In stark contrast, Florida announced plans to eliminate all state vaccine mandates, including those for schoolchildren, marking the first such rollback in over four decades
Corporate/Sector News
Google Prevails in Antitrust Case
A U.S. District Court has largely ruled in favor of Google in a major antitrust lawsuit, allowing the tech giant to avoid the most severe penalties, such as being forced to divest from key products like Chrome and Android. However, the court imposed restrictions to curb anti-competitive practices: Google is now prohibited from entering exclusive distribution agreements and must share certain data with competitors. To ensure compliance, an independent antitrust technical committee will oversee Google’s operations for the next six years. Following the favorable outcome, the stock price of Google’s parent company, Alphabet, surged.
U.S. To Require TSMC Have Export License
Following similar decisions with Samsung & SK Hynix, the U.S. will require the Taiwan Semiconductor Manufacturing Company (TSMC) to acquire an export license for chipmaking tools. Said tools had been exported from the U.S. to TSMC’s Nanjing, China factory under the validated end-user (VEU) program, but will not be renewed when it expires at the end of the year. The U.S. government has stated that while it will continue issuing licenses for existing factories, it will not issue new licenses for companies expanding or upgrading operations. TSMC has reassured consumers that the bulk of its manufacturing remains in Taiwan, as the Nanjing plant only accounts for 3% of its production capacity.
ConocoPhillips Latest Oil Company To Cut Workforce
ConocoPhillips is set to cut between 20% and 25% of its global workforce following its acquisition of Marathon Oil, as part of a broader “Competitive Edge” restructuring initiative aimed at streamlining operations and reducing costs. The layoffs, which could affect over 3,000 employees, are largely attributed to falling oil prices and declining stock performance. Affected workers will receive 60 days’ notice and severance packages, though organized labor groups have expressed frustration over the lack of prior bargaining. ConocoPhillips is not alone—Chevron is laying off 15% to 20% of its global staff, and BP is cutting over 6,000 jobs (more than 15% of its workforce). Other companies announcing significant reductions include Halliburton, Shell, SLB, APA Corp, and OMV, all responding to market pressures.
Recommended Reads
US adds just 22,000 jobs in August as labour market sputters
Why the Indonesia protests blew up: 5 things to know
The New American Hustle: Dividends Over Day Jobs
Behind This Season’s Bumper Earnings: Job Cuts, Price Hikes, Glum Workers
Xi and Putin’s strategic friendship
Pair of Senate Democrats charge Israel with ‘ethnic cleansing’ of Palestinians
This week from BlackSummit
FACS Team
BlackSummit Team
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*As of August 29, 2025
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Source: Financial Times
