The European defence industry is urging the EU to allocate at least €100 billion for defence in its 2028–2034 budget, calling it the bare minimum to rebuild military capabilities. Industry leaders are pushing for €150 billion for defence and security combined. The current €13 billion is seen as inadequate amid rising geopolitical threats. A new European Competitiveness Fund may merge 14 existing programs. With the US pivoting to the Indo-Pacific and a €600 billion defence gap haunting Europe, urgency is high. Additional calls include €40–60 billion for space and €23.5 billion for aviation.
RUSSIA READY FOR TALKS
The Kremlin has expressed willingness to resume peace talks with Ukraine but says it needs time to assess US President Donald Trump’s 50-day ultimatum. Trump warned of severe tariffs on Russia’s trade allies if no deal is reached, pressuring Moscow to act. Kremlin spokesman Dmitry Peskov called the statement “serious” and said Moscow awaits Ukraine’s proposal for a third round of talks. Previous negotiations in Turkey failed. While Russia says it’s ready, Ukraine has dismissed further talks as “pointless,” citing Russia’s inflexibility and refusal to compromise during earlier discussions.
CHINA ECONOMY GROWS
China’s economy expanded 5.2% year-on-year in Q2 2025, surpassing forecasts amid property market woes and looming US tariffs. Growth was supported by manufacturing strength—particularly in EVs, 3D printing, and robotics—and a fragile truce with Washington. Analysts expected tariffs to hurt more, but exports surged as firms rushed shipments ahead of potential levies. Retail sales slowed, and home prices dropped, signaling persistent domestic challenges. Beijing may need further stimulus, but its 5% annual target still seems feasible. A resumed tariff war remains a risk, with a US-China trade deadline set for August 12.
NVIDIA AI CHIP SALES RESUME
Chinese tech giants are rushing to secure Nvidia’s H20 AI chips as the company prepares to resume sales to China, pending US government approval. This move follows Nvidia CEO Jensen Huang’s recent meeting with President Trump. Despite export restrictions, the H20 chips comply with current US rules and retain compatibility with Nvidia’s CUDA software. Nvidia has also launched a new AI chip tailored for China. The sales could restore $15–20 billion in revenue and offset past losses. Rival AMD is also set to resume shipments. Huang will address the developments at a Beijing expo this week.
TESLA ENTERS INDIA
Tesla has officially entered the Indian market by launching its Model Y at approximately $70,000, reflecting India’s steep import tariffs of over 100%. The EV giant opened its first showroom in Mumbai and plans another in Delhi, with deliveries expected in Q3. Despite Elon Musk’s long-standing criticism of India’s high duties, Tesla is moving ahead with direct imports, competing with premium automakers like BMW and Mercedes-Benz. The cars, made in China, come with charging infrastructure support. While the Full Self-Driving feature is offered, Indian driving conditions present major challenges. Talks to reduce tariffs continue under a proposed US-India trade deal.
