Bessent: US-China Tariffs Working Well, UK Inflation Jumps to 18-Month High

Geopolitics and International Relations - Security guarantees for Ukraine are under discussion, with potential European troop deployment and US air defense support [1] - US Treasury Secretary indicates satisfaction with the current trade setup with China, where China is the biggest revenue line in the tariff income [1] - Tensions between the US and China seem to be easing, with customs duties on Chinese goods perceived as helping the US economy [1] - Trump called the Hungarian Prime Minister to discuss Ukraine, seeking to influence Hungary's stance on aid to Ukraine [1][2] Economic Policy and Market Trends - The market is closely watching Jay Powell's Jackson Hole speech for signals on rate cuts and the independence of the central bank [1] - Tariffs are seen as helping to keep a lid on bond yields, underpinning equity valuations, but the long-term impact remains a concern [1] - The U.K.'s CPI rose 3.8% year-over-year, adding pressure on the Bank of England to reconsider the pace of interest rate cuts [5] - The U.K. tech sector is valued at 12 trillion pounds, with consistent growth of around 13% [48] Company Specific News - Rio Tinto and BHP CEOs met with President Trump to discuss a copper project in Arizona, though the project faces legal and environmental delays [2] - Shares of a Chinese toymaker jumped in Hong Kong after posting a huge first-half earnings surge of more than 200%, driven by global demand for Labubu dolls [42] - Forterro, a U.K.-based tech unicorn, is on track to triple in size between 2022 and the end of 2025 [49] Wildfires in Portugal and Spain - Portugal has seen its biggest fire ever recorded, with about 24% of the country's territory burned, more than double the average of previous years [36] - Spain is experiencing the highest levels of CO2 emissions from wildfires in history [37]