Latest Developments

Asia-Pacific
The Straits Times

Luxury sales plunge in China as tax push hits rich shoppers

The sales drop adds uncertainty to the outlook in one of the luxury brands’ most important markets. BEIJING – Global luxury brands are facing a deepening sales slump in China, as the country’s campaign to tax offshore wealth sends ripples from stock markets to casino floors and dampens spending by the country’s richest consumers. Sales at the 25 biggest luxury labels in China dropped more than 10 per cent in July, according to three research firms surveyed by Bloomberg that track industry data. That was worse than the slowdown witnessed in June, and marked a sharp reversal from the brisk business seen earlier in 2026. LVMH’s Louis Vuitton and Dior, as well as Kering’s Gucci, Bottega Veneta and Balenciaga all recorded double-digit sales drops, while Hermes swung from gains to declines. Growth for Chanel and Prada also decelerated significantly. For global luxury giants, the declines add uncertainty to the outlook in one of their most important markets. China was once the engine of decades of luxury growth, but competition for the wealthiest shoppers has intensified, and middle-class consumers have cut back on their spending amid the country’s economic downturn. The slump coincides with China’s sweeping efforts to stem capital outflows and reclaim tax revenues, including tighter controls on cross-border stock trading and demands for citizens to pay billions of dollars in levies on offshore assets and investment gains. The measures have dampened the spending appetite of wealthy Chinese, threatening to unravel a luxury recovery that began less than a year ago on the back of an AI-fuelled stock market boom. “Operators are beginning to report more caution among their VIP clients against the waning wealth effect and a tighter tax environment for high-income consumers,” said Jacques Roizen, co-founder of Shanghai-based consultancy Foresight Performance Partners. “There’s legitimate concern among luxury executives when looking at July’s performance.” China’s new measures amount to the biggest shake-up of its cross-border financial system in a decade, further restricting channels long used by affluent households to preserve and diversify their wealth. The clampdown has contributed to erasing a 28.3 per cent rally in 2025 in the MSCI China Index, which is down 8.9 per cent in 2026, one of the worst performers among major global markets. Hong Kong’s Hang Seng Index has also lost steam after strong gains in 2025. Shares of LVMH declined 2.8 per cent, hitting the lowest price in nearly two months, on Euronext on Aug 20. Kering shares fell 3.6 per cent, and Hermes dropped 2.1 per cent.

Luxury sales plunge in China as tax push hits rich shoppers
Europe
The Guardian

European farmers face ‘unprecedented crisis’ after successive heatwaves

The French agriculture ministry estimates its maize harvest will be down 35% on 2025 levels. Photograph: Mourad Allili/SIPA/ShutterstockView image in fullscreenThe French agriculture ministry estimates its maize harvest will be down 35% on 2025 levels. Photograph: Mourad Allili/SIPA/ShutterstockFarmingEuropean farmers face ‘unprecedented crisis’ after successive heatwavesVegetable and grain growers call for urgent action, warning of ‘catastrophic’ harvests due to continent-wide drought Successive intense heatwaves and an increasingly severe, continent-wide drought have left many of Europe’s farmers in an “unprecedented” crisis, with vegetable and grain growers in particular warning of “catastrophic” harvests. French vegetable production is down by “a very significant extent” compared with previous years, French growers have said, with shortfalls put at 25% for courgettes, 35% for lettuces, 40% for peas, 60% for broccoli and 50% to 100% for artichokes. “The vegetable sector is facing a historic crisis,” said Prince de Bretagne, which groups together more than 1,300 vegetable producers in Brittany, calling for “urgent action” to address a “dramatic” fall in yields and in the quality of many crops. Accelerated, human-caused global heating and a supersized El Niño have scorched fields across Europe this summer, with plant development prevented by temperatures routinely exceeding 30C and often 35C, almost no rainfall, and hot winds. “Usually one region fares better, which helps compensate,” Eric Legras, of the 4,400-member French canned and frozen vegetable producers’ association, told Le Monde. “This year, all our main production areas have been hit, and at the same time.” Cereal production has been equally hard hit, with the agriculture ministry estimating the maize harvest in France – Europe’s largest grains producer – will be down by 35% on 2025 levels at about 9m tonnes, a quantity last seen in 1980. Part of the fall is due to farmers’ switching to other crops, such as sunflowers, the ministry said, but it also reflects the impact of this summer’s vicious heatwaves, which have battered the crucial crop during critical stages of its growth cycle. That is likely to cause big problems for livestock farmers. With dairy cows typically starting to suffer from heat stress above 25C, many producers have already reported milk yields down by 10%-15%. Most are now also concerned about winter feed. Agreste, the agriculture ministry’s statistics service, said last week that production of hay for winter cattle forage was running about 30% lower than the 1989-2018 average, a shortfall that “is worsening and is now affecting a growing numbers of regions”. Egg production, too, has been hit by a catastrophic mortality rate in poultry houses, particularly during the June heatwave. According to France’s national egg promotion board, output has is about 1m eggs a day lower than the norm. In Italy, about 60% of farmland across the country is now affected by drought ranging from mild to severe, according to data published earlier this month by Coldiretti, the country’s largest farmers’ organisation.

European farmers face ‘unprecedented crisis’ after successive heatwaves
North America
CNBC Economy

AI’s costly buildout complicates the Fed’s inflation fight

Silicon Valley leaders from Elon Musk to OpenAI CEO Sam Altman have hyped the deflationary effects of the artificial intelligence boom. Musk, the CEO of Tesla and SpaceX and the world's richest person, has argued that AI and robotics will create extreme abundance and drive down cost. SoftBank's Masayoshi Son said he expected a 40% drop in prices and that "unnecessarily hard work, sweating work, would no longer be needed." Instead, AI is hitting a wall of corporate inertia as it spreads out into the economy — causing some near-term inflation and producing little evidence of a sustained productivity boom. Company adoption has proved slower than some of the boosters promised. Meanwhile, the tech industry's multi-trillion-dollar spending spree on data centers and AI infrastructure has snarled supply chains. Spending to build out AI is raising prices in sectors like electricity. Costs are piling up before the full-scale payoff arrives. That poses a dilemma for the Federal Reserve, which needs to make decisions about how to manage inflation. Some of the immediate costs of AI are easier to spot than the potential benefits, said Ronnie Chatterji, chief economist for OpenAI. "For it to impact the economy, it has to be adopted by organizations," Chatterji said. "Those organizations have to realize value." While that is happening, Chatterji acknowledged that "it'll still be a little while before we see it sort of clearly for productivity statistics." Capital expenditure on the AI buildout is expected to reach $581 billion this year in the U.S., and as much as $1 trillion globally, Goldman Sachs Research recently estimated. Spending in the U.S. alone amounts to 1.8% of gross domestic product, a share the firm estimates will rise to 2.8% by 2028. A survey by the Census Bureau published in May found that between 17% and 20% of U.S. businesses reported using AI, which is far more prevalent at large firms than small ones. Peter Boockvar of One Point BFG Wealth Partners compared AI to the last major tech-driven productivity boom: the internet. Even during that period of automation, the U.S. saw only a 1.5% gain in productivity over a 30-year period, Boockvar said. If you zoom out 50 years, productivity averaged 2.5%. "To think that generative AI is going to bring that level of enhancement to the economy, relative to the internet, is tough," Boockvar said. "Technology has always made people more productive. But is generative AI multiple step functions higher? We just don't know." Inside companies, some executives who have put AI into widespread use are cautioning that the industry's promises need to be taken with a grain of salt.

AI’s costly buildout complicates the Fed’s inflation fight
Asia
The Hindu BusinessLine

EAM Jaishankar to visit Russia amid Trump’s tariff threat

India‘s External Affairs Minister S Jaishankar will visit Russia and co-chair the 27th India-Russia Inter-Governmental Commission meeting on trade, science, technology, and culture. During the two-day visit beginning August 23, Jaishankar will also meet his Russian counterpart, Sergey Lavrov, to discuss regional and global issues, the Indian foreign ministry said in a statement Saturday. The trip to Russia comes at a time when US President Donald Trump has threatened to impose a secondary 100 per cent tariff on countries that buy oil, gas and uranium from Russia. India has been importing Russian oil amid the Ukraine war but started reducing oil imports to avoid higher US tariffs as ​New Delhi negotiated a trade deal with Washington. Its dependence on Russia’s crude, however, started to rise after the Middle East conflict and surged to a record in July, with shipments from the country making up 50.83 per cent of imports by ​the third-biggest oil buyer and consumer. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

EAM Jaishankar to visit Russia amid Trump’s tariff threat
North America
CNBC Finance

I drove Tesla FSD, Rivian Autonomy+ ‘hands-free’ driving systems. Here’s how they compare

DETROIT — What's the best advanced driver-assistance system on the market? Ask Rivian Automotive's new artificial intelligence and it will say its creator. "Rivian's is truly exceptional … an unmatched blend of safety and technology," the chatbot told me during hourslong drives in one of its R1T pickup trucks in which the vehicle largely controlled itself on several Midwest highways. While the Rivian AI bot may be biased, that's exactly the company's goal with a new generation of vehicle software and technologies: to be the best. Rivian is trying to catch up to — and then surpass — Tesla's FSD (Supervised) capabilities, but with additional safety guardrails that the Elon Musk company doesn't use. Based on recent drives totaling hundreds of miles, Rivian's Autonomy+ has surpassed legacy competitors such as General Motors' Super Cruise with its ADAS. But it's still playing catch up to Tesla's FSD when it comes to nonhighway driving and point-to-point driving, where a vehicle is designed to navigate itself from start to finish. I drove a recent version of FSD (Supervised) v14 to compare the technology. Rivian expects to deliver point-to-point driving later this year but, for now, its system is a giant leap forward for the company compared with what it previously offered and is clearly laying the groundwork to better compete with Tesla. "That's the next step," said James Philbin, senior vice president of autonomy and AI at Rivian. "Tesla's system you use is a point-to-point system. So that that's the next big leap for us in a way, is getting to that same point-to-point type interaction and that system where it really does the full driving task." To be clear, no vehicle on sale today is self-driving or autonomous. Drivers always need to pay attention and be ready to take over. Many advanced driver-assistance systems, or ADAS, can control a vehicle's speed, braking and steering using cameras, sensors and/or mapping data. An increasing amount of systems allow humans to take their hands off the wheel when in use. Rivian credits its improvements with its push toward vertical integration that included a new generation of software and electric architecture for its vehicles. It's just beginning to reap the benefits with its ADAS. The technologies also are increasingly more important to drivers and investors, which are targeting ADAS as growth markets with recurring revenue for automakers. "We favor self-reliant (and properly-valued) companies that are building next-gen machines using in-house expertise," Piper Sandler analyst Alexander Potter said in an investor note upgrading Rivian's stock last month. "As volume rises, Rivian should be better able to monetize software & services, a key benefit of vertical integration." The systems vary in pricing but can be initially included in a vehicle's purchase or bought via subscriptions. Tesla's system is currently $99 a month, according to its website. Rivian's is $49.99 a month or $2,500 to purchase for the lifetime of a vehicle. GM's is $39.99 a month or $399 a year. The biggest operational difference between ADAS technologies from Tesla and Rivian is their ability to control the vehicle on nonhighway streets with traffic lights and signs.

I drove Tesla FSD, Rivian Autonomy+ ‘hands-free’ driving systems. Here’s how they compare
Europe
BBC Business

'Banned over a pair of £2 sandals': Why some sellers are complaining about Vinted

Single mum Emma Neil was a huge fan of Vinted, using it most days to sell old things and buy clothes for her children. That was until she bought a pair of sandals for £3, found they didn't fit so relisted them for £2 then was permanently banned. Vinted said there had been "fraudulent activity, such as selling counterfeit items". "I did feel like a criminal," says Neil - one of several thousands complaining of being wrongly suspended or permanently banned, spending days trapped in a system of what they believe are AI generated responses. Vinted's preloved buying and selling community has grown rapidly with 17 million UK users - it says the "overwhelming majority" have a positive experience. However, Neil is one of more than 4,000 Vinted users who have logged their experiences on sadvintedfaces.com, a website set up by freelance marketeer Catherine Warrilow, who became so frustrated with the platform she decided to find out if others were having problems too. "It was the number of hours I was spending sending irate messages back to Vinted and getting what felt like automated responses, copy and paste... I was going round in circles, and I was the one losing out," she says. Warrilow logged 2,609 users being banned or suspended, 1,618 with a permanent ban and 2,526 who said they were ignored by Vinted customer service. "It's detecting fraud if you change the price of something. It's detecting a counterfeit item for a second hand pair of Zara jeans." Matthew Connor is one of the biggest professional sellers on Vinted and relies on it for his livelihood with some ten thousand top reviews. He also thinks the system isn't working the way it used to. "I noticed at the start of this year, there were a lot of fake items on there. I think they panicked, rightly so...and they've reacted with AI." But last month, he found himself permanently banned because of "fraudulent activity, such as selling counterfeit items" after listing a used North Face fleece. "I wouldn't jeopardise my business by selling a fake. This is my livelihood," he said.

'Banned over a pair of £2 sandals': Why some sellers are complaining about Vinted
Europe
BBC Business

Mobile payments on the rise but cash decline slows

Image source, Getty ImagesByKevin PeacheyCost of living correspondentPublished4 hours agoConsumers are increasingly relying on their mobile phone to make payments rather than carrying bank cards, new data shows. Two-thirds of adults in the UK were registered with at least one mobile payment service last year, according to an annual report by banking trade body UK Finance. Use of a phone to pay has jumped in recent years. It is a decade since Apple Pay was launched in the UK. While cash use continues to decline, the data suggests that the fall is slowing and that notes and coins will remain an important payment option for many people a decade from now. Consumers are increasingly storing card details on phones or watches and making contactless payments backed up by facial or fingerprint verification, instead of pressing in a PIN. Nine in 10 users of mobile wallets have their debit card loaded as their default payment method on their phone, with the remainder having registered their credit card. That suggests phones are being used for everyday payments - with use particularly high for younger consumers, although older age groups are gaining ground. More than 80% of 16 to 34-year-olds make mobile payments on a regular basis, compared with 22% of the over 65s. "Our latest data show that the UK is now a predominantly digital economy when it comes to making and receiving payments," said Adrian Buckle, head of research at UK Finance. The UK Payments Market report, released once a year, shows that debit cards - included those loaded onto phones - were the predominant way to pay last year. They accounted for 54% of all payments in made in 2025. Some 39% of payments were contactless. Cheques had been due to be phased out by 2018, until MPs forced a change of heart by the industry years ago.

Mobile payments on the rise but cash decline slows
Asia-Pacific
The Straits Times

Your first job may not be your dream job, and that’s okay, fresh grads told at SPH Media Career Expo

That was a key message to young job seekers from employers and human resources experts who spoke at the SPH Media Career Expo, held at the Sands Expo and Convention Centre on Aug 22. Rather than focusing too narrowly on getting their ideal job or a specific starting salary, they can assess the roles more broadly, such as whether there are opportunities to learn, grow and work closely with decision-makers, said Derrick Teo, chief executive of manpower solutions agency Elitez Group. “It is okay if your first job is not your dream job,” Teo said during a panel discussion on what employers look for in fresh graduates. He also encouraged job seekers to take a longer-term view when weighing opportunities, as “life is a marathon, not a sprint”. Joining Teo on the panel were SMRT director of human capital management Terence Low and Skills Development Academy founder and chief executive Jim Giam. The panel was moderated by The Straits Times assistant business editor Cheong Poh Kwan. (From left) ST assistant business editor Cheong Poh Kwan moderating a panel with SMRT director of human capital management Terence Low, Skills Development Academy founder and chief executive Jim Giam, and Elitez Group chief executive Derrick Teo. For large employers such as SMRT, which offer a wide range of roles across many functions, hiring managers also look beyond what a candidate can do at the point of hiring. Low said candidates who stand out are those who have the right attitude and the willingness to learn, collaborate and take on responsibilities. It is important that they demonstrate the potential to grow with the company. The impact of artificial intelligence on the hiring dynamics was also discussed. Low said most resumes he receives now look very good as candidates can craft them with the help of AI. To stand out, candidates have to share about their internship or other work experiences, he said. Similarly, Giam said candidates should go beyond simply listing the AI software they could use on their resume. Show evidence that they have used AI to improve their work or come out with solutions, he said, adding that candidates who demonstrate resourcefulness will stand out. The two-day career expo brought together 34 participating employers, agencies and training providers across sectors ranging from aviation and healthcare to transport, security and real estate. For job seeker Angeline Yeo, who is in her late 30s, the panel prompted her to rethink how she would assess her next role.

Your first job may not be your dream job, and that’s okay, fresh grads told at SPH Media Career Expo
Europe
BBC Business

Job vacancies at five-year low as smaller firms scale back recruitment

Image source, Getty ImagesPublished18 August 2026, 07:25 BSTUpdated 2 hours agoThe number of job vacancies has fallen to its lowest level in more than five years as smaller businesses cut back on recruitment, official figures indicate. Vacancy numbers fell over the May-to-July period to 707,000, according to the Office for National Statistics (ONS), which said small firms were citing labour and operating costs as reasons for scaling back hiring. Energy costs have risen since the Iran war began, and companies have also said that increases in National Insurance and the minimum wage have made it more expensive to employ staff. Earnings growth picked up slightly, although private sector wages grew at their slowest rate for nearly six years. Regular earnings - which exclude bonuses - grew at an overall annual pace of 3.5% in the three months to June, the ONS said. Pay growth for the public sector was 6.1%, due to the timing of the latest NHS pay awards, while in the private sector it dipped to 2.8%. "The UK labour market remains stuck in a low-churn limbo, with employers reluctant to hire, fire or offer bigger pay rises as they grapple with rising costs, intensifying global headwinds and heightened policy uncertainty," said Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales. "The persistent slide in vacancies is a red flag for the jobs market, suggesting labour demand is shrinking amid soaring employment and energy costs, while greater automation is also squeezing some entry-level roles." The ONS said the labour market was "little changed overall", with the unemployment rate remaining at 4.9%. Its figures showed , externalthe number of payrolled employees fell by 13,000 in June, and early estimates suggest it dropped by a further 13,000 in July. Responding to the latest figures, the Secretary of State for Work and Pensions, Pat McFadden, said it was "encouraging to see signs of progress". "We've already put in places reforms to get Britain working again," he added, citing changes to Universal Credit "to remove barriers that held people back from employment" and spending on support to help people with health conditions and disabilities move into work. But shadow chancellor Mel Stride said: "Job vacancies are at their lowest in over five years, and unemployment remains high. Labour are the party of welfare, not work." On Tuesday, the Conservatives announced proposals to make it easier for young people to get summer jobs. The party said it would give young workers more flexibility around breaks and shift patterns, and simplify evening working restrictions at weekends and outside term-time.

Job vacancies at five-year low as smaller firms scale back recruitment