Global Pulse

分类： business

  • I changed jobs 10 times in 10 years to get the career I wanted

    I changed jobs 10 times in 10 years to get the career I wanted

    For modern workers, the traditional linear career path—climbing the ranks at a single company over decades—has increasingly fallen out of favor, giving rise to a new strategy known as “lily padding,” a deliberate approach of hopping between roles to build targeted skills and advance long-term career goals.

    At 32, Brittany Harris-Nelson embodies this new way of building a career. Over the past 10 years, she has held 10 distinct positions across six higher education institutions, ranging from entry-level student-facing roles while she was still studying to full-time administrative positions. Today, she holds her long-desired mid-level role as assistant director of student engagement at Wake Forest University in North Carolina, framing her meandering journey as intentional rather than aimless.

    “My career has been like a frog moving across lily pads,” Harris-Nelson explained. “Each step brought me closer to where I ultimately wanted to be, even if the path wasn’t always linear.” While her incremental job shifts did not deliver dramatic immediate salary increases, she notes that each new role brought improved benefits, including expanded paid time off and higher employer pension contributions, while equipping her with niche skills that prepared her for her current position.

    Harris-Nelson is far from alone in this approach. Industry analysts have identified lily padding as a defining career trend among Generation Z workers, born between 1997 and 2012. Unlike the traditional model of staying in one role to climb a corporate ladder, lily padding involves strategically jumping between jobs to supercharge employability, build a diverse skill set, and unlock access to more senior roles and long-term financial gain.

    Global workforce data supports the rise of this trend. A 2024 survey of 11,250 workers conducted by international recruitment agency Randstad found that the average job tenure for Gen Z workers in their first five years of professional work is just 1.1 years. That is significantly shorter than the 1.8-year average tenure for millennials (born between 1981 and 1996) and close to three years for older generations of workers.

    The financial benefits of frequent strategic job switching are already evident in market data. A 2025 study from UK-based financial services firm Wealthify found that workers who changed jobs four or more times over a 10-year period earned an average annual salary of £39,276, compared to £30,088 for peers who stayed in fewer roles—representing a 31% pay premium for frequent movers.

    For Adam Smiley Poswolsky, a San Francisco-based author and workplace culture speaker, lily padding was a deliberate choice to pursue meaningful work over conventional upward mobility. Over 15 years, Poswolsky held roles across four distinct sectors: government, nonprofits, creative industries, and corporate work. His resume includes stints as a project leader for the Peace Corps, an English instructor at Harvard University, a location scout for entertainment giant Warner Bros., a film producer in New York City, a campaign staffer on Barack Obama’s 2008 presidential campaign, and a fellow at a Washington-based think tank.

    Poswolsky rejected the traditional career ladder framework early on, noting it did not align with his priority of finding purpose in his work. “In each of my jumps, I was very clear on being ready for something new, but I also knew the skillset I was taking from one experience to the next,” he said. Today, the cross-sector skills he built through his non-linear journey support his current career as a well-compensated public speaker and author. “I found flexibility and happiness through this career evolution rather than via a vertical corporate structure,” he added.

    Industry leaders say this shift reflects a broader reorientation of worker priorities. Nicola Grant, chief people officer at UK insurance provider Hiscox, has observed this change firsthand across her organization. She notes that early-career professionals increasingly prioritize building a breadth of experience quickly over following a single predetermined path, actively building a portfolio of adaptable skills rather than specializing too early.

    “Younger employees are far more willing to move on if they feel their development has stalled or their advancement options are limited,” Grant explained. “Expectations have changed; people want variety, pace and to build skills that will remain relevant. It’s about a desire for growth that ultimately benefits both the individual and the organization.”

    Lucy Kemp, an employee experience specialist and strategic communications leader at IT firm La Fosse, argues that lily padding is not just a passing trend—it is the future of work. She points to shifting economic and workplace dynamics that have pushed younger workers away from long-term company loyalty: many have watched older generations put in decades of work without receiving the promised financial or professional rewards, leading to a widespread belief that “loyalty doesn’t pay off.”

    Post-pandemic workplace shifts have also accelerated the trend, Kemp explains. With more people working remotely, spontaneous on-the-job learning from senior peers has declined significantly, while automation and artificial intelligence have taken over many routine entry-level tasks. As a result, workers who want to build future-proof skills are actively seeking new roles and projects across teams, sectors, and companies to gain the experience they need.

    “People are looking at skills that will be relevant in five years’ time,” Kemp said. “They just want to learn something new and have a purpose.”

    For Harris-Nelson, that purpose-driven approach to career building defines her outlook long-term. “I see my career as an ongoing journey rather than a destination,” she said. “I’m always learning and growing.”

  • From Wimbledon towels to Scotch: What India-UK trade deal could mean for shoppers

    From Wimbledon towels to Scotch: What India-UK trade deal could mean for shoppers

    On Wednesday, the long-negotiated India-UK Free Trade Agreement (FTA) officially entered into force, opening a new chapter of bilateral economic ties between the world’s fifth and sixth largest economies. This landmark pact, which launched negotiations in 2022 and was formally signed earlier this month, marks the UK’s most economically substantial bilateral trade deal since its exit from the European Union. Under the terms of the agreement, 99% of Indian exports to the UK will see tariffs eliminated or reduced, while 90% of UK goods imported into India will gain preferential market access. Long-term projections estimate the deal will add £4.8 billion ($6.4 billion) to UK GDP annually and £5.1 billion to India’s annual output over time. For Indian labor-intensive industries that have long competed at a disadvantage in the UK market, the FTA is viewed as a game-changing opportunity to boost export volumes and expand market share. Textiles and home goods manufacturing giant Welspun Living, which supplies championship towels for Wimbledon and products to major UK high-street retailers including John Lewis and Tesco, has already ramped up preparations to capitalize on the new trade terms. Dipali Goenka, chief executive officer of Welspun Living, revealed that major British retail brands have recently visited India to map out multi-year business roadmaps – a level of forward planning previously reserved exclusively for the company’s US clients. As the agreement took effect, Goenka noted the firm’s London supply chain team was already meeting with stakeholders at John Lewis to align operations for the new tariff regime. Prior to the FTA, India faced a major competitive disadvantage compared to regional rivals Bangladesh and Pakistan, which benefited from duty-free access to the UK under the Developing Countries Trading Scheme, while Indian goods faced a 12% tariff. For home textiles alone, Pakistan holds 55% of the UK import market, while India’s share currently sits at just 6% to 7% – a gap Goenka says the FTA will finally allow Indian producers to close. She projects that Indian exports to the UK will now grow at double-digit rates, with textiles, garments, footwear, automotive goods and marine products all positioned to see strong business expansion. On the British side, the FTA delivers a major win for the country’s iconic Scotch whisky industry. India has cut the existing 150% tariff on Scotch whisky immediately to 75%, with the levy scheduled to phase down gradually to 40% over the next 10 years. Avneet Singh, director at New Delhi-based import firm Modern Drinks Pvt Ltd, described the tariff cut as far more than a minor adjustment, calling it a transformative shift for the sector. While the full impact on import volumes will not be clear for several months, Singh says importers have already completed extensive preparation to take advantage of the new rules from day one, including aligning documentation, verifying certificates of origin, updating compliance protocols, and coordinating with logistics partners to streamline clearance. For now, he says the industry has focused on careful operational preparation rather than rapid expansion, with larger growth expected once businesses realize tangible cost savings from the lower tariffs. Despite the widespread optimism across key sectors, trade analysts caution that the FTA’s overall impact is likely to be incremental rather than transformational, and a number of unresolved challenges could limit the deal’s benefits. Ajay Srivastava, a senior analyst at the Delhi-based Global Trade Research Initiative (GTRI), points out that more than half of India’s existing $13.4 billion in annual goods exports to the UK already entered the country duty-free under the most-favored-nation regime before the FTA took effect. On the import side, more than 45% of India’s $11.7 billion in annual imports from the UK consist of silver, which remains on India’s exclusion list and is not covered by the agreement. Srivastava says the real test of the FTA’s success will be whether goods that previously faced tariffs between 4% and 16% – including textiles, garments, footwear, carpets, automobiles, seafood and fresh produce – see rising export orders, higher volumes and improved profit margins. These impacts will likely take one to three years to become fully visible, he added. Unresolved structural issues also stand in the way of maximizing the deal’s benefits. The UK retains tariffs on steel imports above a fixed quota to protect domestic producers, creating a barrier for Indian steel exporters. Additionally, the UK’s upcoming Carbon Border Adjustment Mechanism (CBAM) could erode some of the gains from tariff elimination, Srivastava notes: even if tariffs fall to zero under the FTA, new carbon-related border charges will raise the effective cost of Indian exports in sectors covered by the policy, creating new trade frictions. Non-tariff barriers also remain a persistent challenge. Historically, India has had low utilization rates for preferential terms under FTAs, with only an estimated 20% to 30% of eligible exports actually claiming preferential tariff treatment, largely because small and medium-sized exporters lack awareness of the new rules and requirements. Many exporters will need targeted training to meet rules of origin standards and complete the required documentation to access lower tariffs, meaning tariff cuts will not automatically translate to higher exports without proactive outreach from government and industry groups, Srivastava explains. Even with these challenges, independent research firm CareEdge Research notes the FTA comes at a uniquely opportune moment for India’s ready-made garment sector. China currently holds the largest share of the UK’s ready-made garment import market, but it has been steadily losing ground due to rising labor costs and declining competitiveness. At the same time, major global brands are looking to diversify their sourcing away from Bangladesh, which has faced persistent socio-political instability in recent months. Against this backdrop, CareEdge projects India will double its share of the UK’s ready-made garment import market from 6% in 2024 to 12% in the near to medium term. Overall annual bilateral trade growth could also rise from the current 10% to 12% to 15% per year, with consumers in both countries benefiting from a broader range of products and improved pricing, the firm added.

  • Diamond giant De Beers halts work at flagship South African mine as demand plummets

    Diamond giant De Beers halts work at flagship South African mine as demand plummets

    The global diamond industry is facing unprecedented market upheaval, forcing mining giant De Beers to take drastic action: a two-year production suspension at Venetia Mine, South Africa’s largest diamond-producing operation. The shutdown comes as shifting consumer demand and rising competition from affordable lab-grown alternatives have sent industry profits and prices into a steep decline.

    Industry data underscores the severity of the downturn: the International Diamond Consultants rough diamond price index has nearly halved since 2022, driven by flagging consumer demand – particularly in key Chinese markets – and the growing market share of lower-cost lab-grown gems. In justifying the decision, De Beers noted that the depressed state of the global diamond market makes immediate cost-cutting and operational streamlining a necessary priority.

    Located in the far northern region of South Africa, Venetia Mine contributes over 40% of the country’s total national diamond output and provides direct employment for more than 4,000 workers. The shutdown casts a shadow over South Africa’s broader mining sector, which supports nearly 500,000 jobs nationwide and contributes more than 4% of the country’s gross domestic product. Local workers’ unions have long warned of the devastating economic ripple effects of widespread layoffs in the industry.

    De Beers, which is majority-owned by mining conglomerate Anglo American, has already announced plans to use the two-year shutdown to upgrade infrastructure, boost production efficiency and increase total output capacity, positioning the mine to resume operations once market conditions rebound. Reports have also indicated that Anglo American is actively seeking to sell its stake in De Beers as part of a strategic shift toward expanding copper production, a commodity in surging demand driven by the global artificial intelligence boom.

    The rise of lab-grown diamonds as a disruptive competitor stems from more than just lower price points. Many modern consumers have embraced the synthetic stones over ethical concerns linked to traditional diamond mining, including poor working conditions, unfair miner compensation, and extensive environmental damage from mining operations. Ironically, many established natural diamond producers including De Beers have adapted to the shift by launching their own lines of affordable lab-grown diamonds, turning market disruption into an additional revenue stream.

    While other large diamond producers have scaled back operations in recent years, De Beers’ decision carries unique symbolic weight due to the company’s 150-year history rooted in the colonial era of southern Africa. Founded in 1871 by British colonist Cecil Rhodes, the company grew out of a colonial project that saw Rhodes’ forces dispossess indigenous African communities of their land and deny them basic political and economic rights, amassing enormous personal wealth in the process. Today, Rhodes’ legacy remains one of the most contentious flashpoints for global conversations about decolonizing institutions that continue to honor his name, from statues to the prestigious Rhodes Scholarship at the University of Oxford, whose past recipients include former U.S. President Bill Clinton and former Australian Prime Minister Malcolm Turnbull.

    For more coverage of economic and political developments across the African continent, visit BBCAfrica.com or follow BBC Africa on social media platforms including Twitter, Facebook and Instagram.

  • US inflation rate eases to 3.5% as gasoline prices fall

    US inflation rate eases to 3.5% as gasoline prices fall

    New official government data has revealed that U.S. inflation cooled notably in June, driven by a sharp drop in gasoline prices that has brought the annual rate of price growth down to its lowest level in months. According to the U.S. Bureau of Labor Statistics (BLS), consumer prices rose 3.5% over the 12 months ending in June, marking a meaningful drop from the 4.2% annual increase recorded in May.

    The biggest factor pulling down the overall inflation rate was a steep 9.7% monthly decline in retail gasoline prices in June, even though pump costs remain significantly higher than they were at the same point last year. Recent weekly data from American motorist advocacy group AAA shows that prices at the pump have already started to shift again: as of Tuesday, the national average for a gallon of regular gasoline stood at $3.86, up seven cents from the average recorded just one week prior.

    The unexpected rebound in pump prices comes on the heels of a sharp spike in global crude oil costs, triggered by renewed military conflict in the Middle East that threatens to disrupt global energy supplies. On Tuesday, Brent crude, the global benchmark for oil pricing, climbed to $87 per barrel, a jump of nearly $10 over just 24 hours. This sudden surge follows new U.S. military strikes against Iran carried out earlier this week. In conjunction with the strikes, former President Donald Trump announced a new naval blockade of the Strait of Hormuz, the critical chokepoint through which roughly a fifth of global oil trade passes daily. Trump also imposed a 20% fee on all cargo transported through the key waterway, raising fears of prolonged disruption to global energy markets that could send inflation rising again across the U.S. and other major economies.

    While the latest inflation reading has been welcomed by policymakers and consumers alike, many economic analysts warn that the current period of cooling price growth could be short-lived. If energy prices remain elevated or continue to climb in the coming weeks, the downward trend in inflation could reverse quickly, putting renewed pressure on U.S. household budgets and complicating efforts by the Federal Reserve to stabilize the economy.

  • Australian energy stocks surge as US-Iran conflict sends oil prices soaring

    Australian energy stocks surge as US-Iran conflict sends oil prices soaring

    On Tuesday, Australia’s domestic sharemarket closed a volatile trading session near flat, after a geopolitical shakeup in the critical Strait of Hormuz triggered the largest single-day surge in global crude oil prices since the height of the COVID-19 pandemic, reshaping sector performance across the Australian Securities Exchange (ASX).

    The benchmark ASX 200 index finished the session flat at 8808.50 points, while the broader All Ordinaries index slipped a negligible 1.70 points, or 0.02%, to settle at 9001.30. The Australian dollar also edged up 0.19% against the U.S. dollar to trade at 69.32 U.S. cents by market close. Of the 11 major sectors tracked on the ASX, seven closed in positive territory, led by a sharp rally in energy stocks that offset broad losses across the country’s four largest retail banks.

    The market movement was sparked by an unexpected announcement from former U.S. President Donald Trump, who declared via his social platform Truth Social that the United States would position itself as the “Guardian of the Hormuz Strait” and impose a 20% toll on all cargo transiting the key global shipping chokepoint. Around 20% of the world’s daily oil supply passes through the strait, making geopolitical instability there a major catalyst for global energy price shifts. Following Trump’s announcement, Iran launched retaliatory attacks targeting Bahrain, Kuwait, Jordan, and two commercial tankers linked to the United Arab Emirates that were traveling through the waterway, amplifying market uncertainty.

    The geopolitical tensions drove a dramatic 9% overnight jump in Brent crude prices, followed by a further 1% uptick to settle at $US84.30 ($A122) per barrel — marking one of the largest single-day price increases for the global benchmark since the COVID-19 pandemic. The oil price surge translated directly to strong gains for Australia’s top energy producers: Woodside Energy’s shares climbed 3% to close at $30.20, Santos added 1.32% to finish at $7.70, and fuel retailer Ampol rose 2.20% to close at $37.56.

    Those energy gains were largely offset by a pullback from Australia’s four major banks, which ended a recent streak of strong performance. Commonwealth Bank of Australia shares fell 0.41% to $169.30, Westpac Banking Corporation dropped 0.70% to $36.64, National Australia Bank declined 0.85% to $39.71, and Australia and New Zealand Banking Group fell 0.96% to $36.11.

    Tony Sycamore, senior market analyst for global financial services firm IG, noted that the Australian market opened lower on Tuesday, following a soft session on Wall Street driven by weakness in semiconductor stocks, hawkish comments from a Federal Reserve governor, and early reactions to the new U.S. posture on Hormuz. “The early fall followed a soft session on Wall Street, weighed down by weakness in chipmakers, higher oil prices after President Trump announced that the United States would reinstate its blockade of Iranian shipping and hawkish comments from Fed Governor Waller,” Sycamore explained.

    Beyond the energy and banking sectors, several individual companies posted notable movements on Tuesday. Global technology firm Lights Wonder surged 7.98% to 111.60 after reaffirming its 2026 financial outlook of mid-to-high single-digit consolidated growth and confirming it would continue its $US180 million ($A260 million) share repurchase program.

    Hospitality and beverage group Endeavour Group slipped 0.86% to $3.45 following the announcement that two senior winemaking leaders, Oakridge chief winemaker David Bicknell and Chapel Hill chief winemaker Michael Fragos, had departed the business. The departures are the latest in a series of changes as the company prepares to exit the wine production industry.

    Insurance firm Steadfast Group saw its shares add 0.96% to $5.24 after global private equity giant KKR joined existing bidders Amwins Group and Dragoneer Investment Group in a takeover offer for the business. Biotech firm Mesoblast also posted a 1.28% gain to $2.38 after announcing it had enrolled 300 patients in its randomized clinical trial for a new treatment for chronic lower back pain linked to degenerative disc disease.

  • Surging oil costs and subsidy cuts to send Australian petrol prices soaring

    Surging oil costs and subsidy cuts to send Australian petrol prices soaring

    Australian drivers are bracing for a dramatic spike in petrol prices that could push costs to nearly $2 per litre in the coming weeks, compounded by three overlapping pressures: a global oil market rally, the phased rollback of government fuel subsidies, and new geopolitical tensions around the Strait of Hormuz. This latest development delivers another significant financial blow to households already stretched thin by ongoing cost-of-living pressures across the country.

    Over the past seven days alone, global benchmark Brent Crude has jumped more than 15%, climbing above $84 per barrel. The upward trajectory has accelerated sharply following U.S. President Donald Trump’s announcement that the United States will position itself as the “guardian” of the Strait of Hormuz — a critical chokepoint that carries roughly a fifth of the world’s daily oil trade — and impose a 20% toll on all cargo passing through the waterway to offset security costs. “The USA will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’ but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20 per cent on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World,” Trump wrote on his social platform Truth Social, confirming the security initiative would begin immediately.

    AMP’s chief economist Shane Oliver notes that oil markets have already adjusted to the heightened tensions, with prices up roughly $11 per barrel since hostilities between the U.S. and Iran resumed. Industry convention holds that every $10 increase in per-barrel crude translates to a 10-cent rise in retail petrol prices. “The longer the Strait of Hormuz stays effectively closed and the more the world economy runs down its oil reserves, that will become unsustainable and we could get a much bigger spike in oil prices,” Oliver warned. That said, he added that the most extreme scenario of crude climbing to $150 per barrel remains unlikely, as both the U.S. and Iran would face severe economic damage from sustained high fuel prices. Australia, he noted, is also better positioned to weather the crisis than it was at the onset of tensions, thanks to strategic stockpiling of oil reserves by the federal government earlier this year.

    Geopolitical volatility is not the only factor pushing up prices at the pump. Australia’s federal government began unwinding its six-month fuel excise cut this month. Introduced in March to offset post-conflict price increases, the policy halved the fuel excise, delivering a 26.3-cent per litre discount that cut the cost of a 50-litre tank by $13. State governments followed by returning excess GST revenue to drivers, bringing total combined discounts to 32 cents per litre. That discount was halved to 16 cents per litre on July 1, and will expire entirely on August 2, returning excise taxes to pre-crisis levels. Combined with the global crude rally, this phased rollback is expected to push average retail petrol prices from the current ~$1.50 per litre toward the $2 threshold. Early data from the NRMA already shows prices surging: in Sydney, regular unleaded has jumped 17 cents per litre in a week to 164.4 cents, while diesel has risen 21.1 cents to 182.2 cents per litre.

    The price spike is mounting political pressure on the federal government to extend the excise cut, though Oliver said that broad-based relief is poor policy. “As a motorist I’d say they should extend it but as an economist I’d say they shouldn’t extend it because there are better ways to help those who need a hand,” he explained, noting that broad tax cuts distort market price signals that encourage fuel conservation. “There are better ways to channel money or assistance to farmers, truck drivers and low income earners who need the help.”

    Already, months of sustained high fuel prices have pushed a large share of Australian drivers to make permanent changes to their transportation habits, new data from Credit24 (compiled by Primara Research) shows. The survey found 37% of Australians have cut back on driving to offset persistent fuel cost increases. Among those adjusting their habits, 23.5% have shifted to public transport for regular commutes, 14% now walk or cycle more often, 6% have purchased an electric vehicle, and 4.6% have even changed jobs to cut down on commuting fuel costs.

    Primara Research head Peter Drennan noted that these shifts are not temporary adjustments — they are permanent behavioral changes driven by sustained cost pressure. “Once a cost stops feeling temporary, Australians adjust and stay adjusted. That’s the real signal in this data,” he said. “When a cost holds for long enough, budgeting isn’t optional anymore, people are forced to find the money somewhere else in their lives.”

    The survey also revealed a clear generational divide in behavioral change. Millennials, who are more likely to juggle overlapping financial pressures including mortgages, childcare, and household budget constraints, were the most likely to adopt permanent changes, with 47.8% reporting cutbacks. They were followed by Gen Z and Gen X, while Baby Boomers — who generally have fewer overlapping financial commitments and larger savings buffers — were the least likely to change their driving habits. “The generational gap here is really a gap in how much financial buffer people have to begin with,” Drennan added.

  • Business executives making ‘contingency plans’ for UAE-Saudi Arabia feud

    Business executives making ‘contingency plans’ for UAE-Saudi Arabia feud

    The already tense relationship between neighboring Gulf powers Saudi Arabia and the United Arab Emirates has escalated into what insiders describe as an economic war of attrition, pushing global business leaders and financial institutions to draw up emergency contingency plans to mitigate potential fallout.

    Multiple major international publications have documented the growing rift, which stretches across both geopolitical and economic spheres. The two oil-rich nations already hold opposing positions on several high-stakes regional issues, from the ongoing conflict in Yemen to power struggles in Sudan and diplomatic engagements with Israel. Beyond geopolitics, however, the rivalry has deepened into direct economic competition that threatens the operations of foreign companies operating across both markets.

    One of the most visible flashpoints is competition to become the Gulf region’s leading business hub. Saudi Arabia has invested heavily in transforming Riyadh into a top global commercial center, a strategy that directly challenges the long-standing dominance of the UAE’s Dubai. The pair also clashed openly on energy policy earlier this year, when the UAE withdrew from the Saudi-led OPEC production alliance and rapidly scaled up its own crude output.

    Tangible disruptions to cross-border trade and finance have already emerged, according to recent on-the-ground reporting. Semafor documented that border crossing wait times for commercial trucks moving from the UAE into Saudi Arabia have stretched to several days in recent months, with some drivers reporting waits as long as a week, forcing many to sleep in their vehicles while waiting for entry approval. The Financial Times additionally revealed that Saudi banks have repeatedly held up or returned payments sent to UAE-based accounts belonging to Dubai-based companies and individuals since May, in most cases without providing any formal explanation for the disruptions.

    Against this backdrop, Bloomberg reported Monday that leading global investment banks are bracing for an unprecedented ultimatum: they may soon be forced to choose between maintaining major operations in Abu Dhabi or expanding their presence in Riyadh, as both sides pressure international firms to pick sides in the deepening rivalry.

    Businesses across sectors have already begun taking proactive steps to prepare for further escalation. Some firms have developed separate logistics networks operating independently in each country to avoid disruptions if the border closure worsens. Other organizations are conducting full reviews of existing commercial contracts, with a particular focus on identifying force majeure clauses that could protect them if existing agreements collapse. Many are also auditing their local partnerships to identify any connections that could prompt retaliation from either government.

    The Gulf region has long been a high-priority market for Western businesses, drawn by vast state capital pools, booming infrastructure projects, and growing investment opportunities in emerging sectors like artificial intelligence. For decades, Western law firms, consulting practices, and financial institutions have generated substantial profits from working with Gulf governments. Even so, Saudi Arabia has in recent years begun reducing spending on foreign advisors as part of a push to create more jobs for local citizens and cut unnecessary costs.

    Despite the lack of an open, formal break between the two nations, business leaders are refusing to take risks amid the creeping escalation. One anonymous international law firm told Bloomberg it has begun turning down certain client engagements specifically to avoid alienating either Saudi or Emirati officials. In another high-profile case, a global investment firm raising capital for a new regional fund was informed by Saudi stakeholders that it was prohibited from allocating any capital to UAE-based projects, and could only invest in assets focused exclusively on the Saudi market.

  • China’s June exports surge 27% from a year earlier as AI boom drives strong demand

    China’s June exports surge 27% from a year earlier as AI boom drives strong demand

    HONG KONG – New data released by China’s General Administration of Customs on Tuesday shows the country’s export growth accelerated sharply in June, climbing 27% year-on-year in a performance that outpaced nearly all economist projections. The reading marked a notable jump from May’s 19.4% annual growth, with industry analysts linking the stronger-than-expected expansion to multiple global market factors, most prominently the worldwide boom in artificial intelligence development.

    Imports also saw stronger growth than forecast in June, surging 36% compared to the same period last year, up from May’s 27.4% annual increase. Analysts note that rising geopolitical tensions, particularly the ongoing conflict involving Iran, have pushed up global commodity and energy costs, contributing to the higher overall value of China’s import volumes for the month. The country’s monthly trade surplus widened to $125.6 billion in June, up from $105.4 billion recorded in May.

    Julian Evans-Pritchard, head of China Economics at Capital Economics, highlighted in a client note released Tuesday that the surge in trade values reflects a broader market shift tied to AI development. “Trade values took another big leg up in June,” Evans-Pritchard wrote. “This predominantly reflects the recent surge in semiconductor prices on the back of the AI boom. But even putting that aside, foreign demand for Chinese goods remains robust.”

    Beyond semiconductors, China has seen rapid export growth in two key high-value sectors: electric vehicles (EVs) and other technology-focused manufactured goods. As global industries rush to integrate AI tools into operations, demand for semiconductors, circuit boards and other electronic components produced in Chinese factories has risen sharply, driving the overall export expansion. EV exports have emerged as a particularly bright spot, with separate data showing China’s passenger vehicle exports jumped 80% year-on-year in June amid rising global demand for affordable electric vehicles.

    The strong performance of China’s export manufacturing sector has provided critical support for the country’s overall economic growth this year, offsetting persistent softness in domestic consumer spending and fixed investment. The sluggishness in domestic activity stems largely from a prolonged downturn in China’s real estate industry, which has historically accounted for a large share of the country’s economic output and household wealth.

    For the first half of 2026 overall, Chinese customs data shows exports grew 17.6% year-on-year, while imports rose 26.6% over the same period. Breaking down export growth by region, shipments to Southeast Asia surged nearly 35% year-on-year in June, while exports to the European Union and Latin America rose more than 18% and 28% respectively. Exports to the United States also climbed almost 14% from a year earlier, a gain partially driven by comparison to weak 2025 volumes that dropped after former U.S. President Donald Trump implemented new higher tariffs on Chinese goods during his second term.

    Policymakers in the U.S. and Europe have repeatedly raised concerns over growing bilateral trade deficits with China in recent years. In response to trade barriers including higher tariffs, many Chinese manufacturing firms have relocated production capacity to regional hubs across Europe and other global markets to bypass import restrictions. China has also actively diversified its export markets, ramping up shipments to fast-growing economies in Southeast Asia, Latin America and Africa to reduce reliance on traditional Western markets.

    While many analysts project China’s export growth will continue in the coming months, they warn the expansion is increasingly fragile. Wei Li, head of Multi-Asset Investments at BNP Paribas Securities (China), noted that the strong growth in auto and AI-related goods exports remains heavily dependent on sustained global consumer and business demand, as well as future changes to international trade regulations that could create new headwinds.

    China is scheduled to release its official second-quarter gross domestic product (GDP) growth data on Wednesday. Chinese policymakers have set an annual GDP growth target of 4.5% to 5% for 2026, which is slightly lower than the 5% growth the country recorded in 2025. Last week, the International Monetary Fund (IMF) upgraded its 2026 growth forecast for China by 0.2 percentage points to 4.6%, but the organization projects China’s annual growth will slow to 4.1% by 2027 amid long-term structural headwinds.

    To counter softness in domestic demand, Chinese leaders have rolled out a series of stimulus measures aimed at boosting consumer spending, including trade-in subsidies for new vehicles and home appliances. However, many households remain cautious amid ongoing economic uncertainty, with many consumers delaying large, big-ticket purchases to preserve savings.

  • Australian consumer confidence near 50-year lows despite slight July rise

    Australian consumer confidence near 50-year lows despite slight July rise

    A small uptick in Australian consumer confidence recorded in July is at serious risk of being erased by a new wave of rising fuel costs, shifting global oil market dynamics and looming interest rate changes, new economic surveys have revealed.

    The closely watched Westpac-Melbourne Institute Consumer Sentiment Index registered a 4.1% improvement between June and July, pushing the overall reading to 83.9 points. Despite this month-on-month gain, the index remains firmly in negative territory – any score below 100 signals a majority of consumers hold pessimistic views about the future, and the current reading sits near 50-year record lows.

    Matthew Hassan, Westpac’s head of Australian macro-forecasting, explained that the modest July improvement stemmed largely from consumers breathing a sigh of relief after worst-case economic scenarios – including extreme energy price spikes, aggressive interest rate hikes and widespread job losses – failed to materialize. “Some of the July improvement looks to be relief that ‘worst-case’ scenarios – around energy prices, interest rates and jobs – are not playing out,” he noted, adding that “however, family finances are clearly under intense pressure and the outlook is uncertain.”

    The temporary drop in national fuel prices was the single largest driver of the confidence bump. During the survey period, average retail petrol prices across Australia fell to $1.60 per litre, fully reversing the price surge triggered by the outbreak of conflict in the Middle East earlier this year. Consumers also reported slightly less anxiety about their personal financial outlook over the coming 12 months and growing confidence in job security, with Hassan adding that “while they are still downbeat on the economy, consumers are more comfortable about the labour market outlook.”

    Even with these small gains, consumer willingness to make large discretionary purchases remains stagnant: the subindex tracking attitudes toward buying major household goods held broadly steady at depressed levels, indicating households are still holding back on big spending.

    Crucially, the positive fuel price trend that supported the July gain was already reversed just days after the survey concluded. Global oil prices jumped 15% in the following days, climbing above $US84 per barrel, and new pressures are set to push pump prices even higher in the coming months. AMP economist My Bui projected that the confidence uptick will almost certainly be wiped out in next month’s reading, as the temporary benefits of stable interest rates and lower fuel prices fade. “Fuel prices look to increase further throughout July and August with the reintroduction of fuel excise and higher global oil prices, while we think the Reserve Bank has a high chance of raising the cash rate in August,” she explained.

    Geopolitical instability is adding extra uncertainty to the outlook. Hassan warned that consumer sentiment remains highly vulnerable to developments in the Middle East, noting that “sentiment also remains hostage to developments abroad, with daily responses showing a significant weakening as the situation in the Strait of Hormuz deteriorated over the course of the survey week.”

    In contrast to the gloomy household outlook, separate data from National Australia Bank (NAB) shows Australian business confidence has staged a notable recovery in recent months. The NAB Monthly Business Survey recorded a 9-point rise in business confidence in June, bringing the index to -5 points. While confidence still remains in negative territory, the reading marks a major rebound from the sharp drop recorded in March amid escalating Middle East tensions. Business conditions held steady at +3 points for the third consecutive month, matching earlier stable readings.

    NAB chief economist Sally Auld explained that fading fears over the economic impact of Middle East conflict and easing cost pressures have driven the uptick in business sentiment. “Business confidence has now recovered much of the sharp decline we saw in March, reflecting some easing of concerns around energy markets and as broader geopolitical risks have tempered,” she said.

    Auld added that businesses are reporting lower-than-expected inflation expectations tied to Middle East tensions, alongside improving profitability and broadly stable trading conditions. From a policy perspective, the survey offers encouraging signals for inflation management: the sharp spike in input cost growth recorded in March has largely reversed, and price increases have moderated across most Australian industries. “Labour costs remain elevated and margins are still under pressure, but the broader trend is toward easing capacity constraints and more moderate price growth,” Auld noted.

  • US burrito giant Chipotle opening first outlet in Mexico

    US burrito giant Chipotle opening first outlet in Mexico

    U.S.-born fast-casual chain Chipotle Mexican Grill is preparing to open its very first restaurant in Mexico this week, marking an unprecedented milestone for the brand that built its global empire on Mexican-inspired cuisine. With more than 4,100 outlets operating across the world, the company frames this launch into the culinary birthplace of its core menu as one of its most significant strategic moves in recent years.

    Founded on the concept of customizable burritos, hand-crafted tacos, and build-your-own grain bowls, Chipotle has gained a loyal following across North America and beyond. But its new venture comes with major historical precedent: U.S. food chains that attempt to enter the origin countries of their signature dishes have a well-documented track record of failure. Most famously, Taco Bell, another U.S. fast food giant specializing in Mexican-inspired fare, has twice tried and failed to establish a permanent presence in Mexico, withdrawing its last location in 2010 after failing to resonate with local diners. Similarly, Domino’s Pizza exited Italy, the global birthplace of pizza, in 2022, shuttering all its outlets after seven years of struggling to compete against beloved local pizzerias.

    Chipotle’s leadership is leaning into a posture of cultural respect as it enters the market. Scott Boatwright, the company’s chief executive, emphasized in a statement Monday that the chain is entering Mexico with profound respect for the country’s centuries-old culinary heritage, and is committed to delivering a high-quality version of the signature Chipotle experience. “We look forward to serving new guests and earning a place in Mexico’s vibrant dining culture,” Boatwright said.

    The inaugural Chipotle location is situated in the northeastern Mexican state of Nuevo León, just along the border with Texas. The company says this launch site will serve as a critical proof-of-concept for its wider Mexican expansion strategy. In partnership with Alsea, a prominent Mexican restaurant operator that already manages major global brands including Domino’s Pizza, Starbucks, and Chili’s across the country, Chipotle plans to open additional outlets across Nuevo León before expanding into Mexico City in 2027.

    News of the launch has sparked a fierce divided debate across social media platforms, with many users poking fun at the brand’s decision to enter the market. On X (formerly Twitter), commenters have drawn sharp, humorous comparisons to other notorious failed chain expansions. One user joked that the move was analogous to “selling Mexico a corporate version of Mexico,” while another questioned why local consumers would choose Chipotle when Mexico already has abundant access to affordable, high-quality authentic Mexican food. Other comparisons included comparing the launch to opening a Pizza Hut in Naples, or even joking that the next step would be American Chinese food chain Panda Express opening its first location in mainland China.

    Not all reactions were critical, however. Some social media users noted that the move is a key test of Chipotle’s broader global expansion ambitions, while others suggested the chain could find success as a novelty attraction for international tourists visiting the country. For 2026 overall, Chipotle has plans to open as many as 370 new restaurants across the globe, with new market entries also planned for Singapore and South Korea as the brand works to grow its international footprint.