Automakers in the United States are grappling with the financial strain imposed by tariffs introduced during the Trump administration, which have added billions in costs to the industry. Despite these challenges, car manufacturers have largely absorbed these expenses rather than passing them directly onto consumers, a strategy that has delayed significant price hikes. However, as tariffs persist, the pressure to adjust pricing is mounting. According to industry analysts, the average manufacturer’s suggested retail price (MSRP) for new vehicles in the U.S. has seen only a modest increase of less than 1% from mid-March to mid-August, as reported by Edmunds. This cautious approach is expected to continue, with automakers implementing gradual price increases, particularly for higher-end models that offer better profit margins. General Motors and Ford have cited gross tariff-related costs of $5 billion and $3 billion, respectively, for the year. To mitigate these expenses, companies are exploring various strategies, including internal cost absorption and shifting some burdens to suppliers or dealers. Hyundai North America’s CEO, Randy Parker, emphasized the importance of maintaining competitive pricing to retain customers, despite tariff-related costs eroding the company’s bottom line by approximately $600 million in the second quarter. Analysts predict that automakers will begin to raise prices more noticeably in the latter half of the year, which could dampen demand and lead to a decline in overall vehicle sales. Additionally, subtle cost pass-throughs, such as increased destination fees, which rose by 8.5% for the 2025 model year, are being utilized to offset tariff impacts without direct price hikes. Industry leaders, including AutoNation’s CEO Mike Manley, anticipate that automakers will maintain competitive pricing on flagship models while making minor adjustments across their portfolios over time. The competitive landscape and the importance of market share are key factors influencing this gradual approach to price adjustments.
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French unions strike against austerity, pressuring Macron
France witnessed widespread protests on Thursday as teachers, train drivers, pharmacists, and hospital staff joined forces in a nationwide strike against impending budget cuts and unpopular pension reforms. The demonstrations, organized by major labor unions including CGT and Sud Rail, saw thousands gather in Paris and other cities, with high school students blocking school entrances and workers rallying against austerity measures. The protests were part of a broader ‘day of expression of railway anger,’ following months of strikes and a failed attempt to halt pension reforms earlier in the year. In Paris, metro services were severely disrupted, and regional trains faced significant delays, while high-speed TGV lines remained operational. The Interior Ministry estimated that up to 800,000 people participated in the strikes and protests, with unions condemning the government’s ‘brutal’ and ‘unfair’ fiscal plans. President Emmanuel Macron and Prime Minister Sebastien Lecornu are under mounting pressure to address France’s budget deficit, which exceeded the EU’s 3% ceiling last year. Lecornu, who relies on cross-party support to pass legislation, faces challenges in garnering parliamentary backing for the 2026 budget. The protests also impacted nuclear production, with workers at EDF reducing power output at the Flamanville 1 reactor. Pharmacists, angered by recent business changes, joined the strike, with 98% of pharmacies potentially closing for the day, according to the USPO union. Interior Minister Bruno Retailleau warned of potential clashes, deploying 80,000 police officers, riot units, drones, and armored vehicles to maintain order. The strike even delayed plans to move the historic Bayeux Tapestry, a 70-meter-long masterpiece depicting the Norman invasion of England in 1066, which is set to be loaned to Britain. The protests underscore growing discontent with Macron’s administration and its handling of public finances, as workers demand increased investment in public services and higher taxes on the wealthy.
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Market expecting more easing after surprise Indonesia central bank cut
In a move that caught economists off guard, Indonesia’s central bank, Bank Indonesia (BI), slashed its benchmark interest rate by 25 basis points to 4.75% on Wednesday, marking a continuation of its easing cycle that began in September 2024. This decision, which defied the expectations of all 31 economists polled by Reuters, has sparked predictions of more aggressive monetary easing in the coming years. The rupiah responded by falling 0.5% against the U.S. dollar by midday on Thursday, while the stock index (.JKSE) reached a new all-time high, buoyed by positive growth prospects. Governor Perry Warjiyo’s notably dovish tone during the announcement has further fueled speculation of additional rate cuts, with economists now forecasting a median benchmark rate of 4% by 2026. This is a significant shift from the previous consensus of a 4.50% terminal rate by next year. BI’s easing measures, which include liquidity loosening and government bond purchases, aim to stimulate Southeast Asia’s largest economy amid growing concerns about fiscal discipline and the bank’s independence. Analysts highlight the central bank’s ‘all out pro-growth’ stance, with Maybank predicting a further 125 basis point reduction by 2026, bringing the rate to 3.50%. Meanwhile, Barclays anticipates a drop to 4.25% this year, with more cuts likely. The central bank’s decision to deepen the deposit facility rate cut by 50 basis points to 3.75% and reduce the lending facility rate by 25 basis points to 5.50% marks the first ‘asymmetric corridor’ for money market rates since 2016. Citi Research links this move to the government’s policy of transferring over $12 billion from BI to state banks, injecting liquidity into the banking system. As BI collaborates with the government to fund economic programs, the central bank’s commitment to growth remains clear, though the path ahead is fraught with challenges.
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Roche to acquire liver drug developer 89bio for up to $3.5 billion
In a strategic move to bolster its presence in the liver disease treatment market, Swiss pharmaceutical giant Roche has announced its acquisition of U.S.-based biotech firm 89bio for up to $3.5 billion. The deal, which includes $14.50 per share in cash and potential milestone payments of up to $6.00 per share, underscores Roche’s commitment to addressing metabolic and cardiovascular diseases, particularly those linked to obesity. 89bio’s flagship drug, pegozafermin, an FGF21 analogue, is in advanced stages of development for treating metabolic dysfunction-associated steatohepatitis (MASH), a severe form of fatty liver disease. Roche’s acquisition aligns with its broader strategy to complement its growing weight-loss drug portfolio, which includes recent deals with Zealand Pharma and Carmot Therapeutics. Teresa Graham, head of Roche’s pharmaceutical division, highlighted the potential of pegozafermin to achieve ‘best-in-disease efficacy’ and its suitability for combination therapies with weight-loss drugs. The move also positions Roche to compete with industry leaders like Novo Nordisk and Eli Lilly, who are exploring the use of GLP-1 treatments for liver disease. This acquisition reflects the intensifying race among pharmaceutical companies to innovate in the rapidly expanding fields of obesity and metabolic health.
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Oil edges lower as traders weigh rate cut with worries over US economy
Oil prices experienced a second consecutive day of decline on Thursday, September 18, as market participants grappled with the implications of the Federal Reserve’s recent interest rate cut and broader concerns about the U.S. economy. Brent crude futures fell by 30 cents, or 0.4%, to $67.65 a barrel, while U.S. West Texas Intermediate (WTI) futures dropped by 30 cents, or 0.5%, to $63.75. The Federal Reserve’s decision to reduce its policy rate by a quarter of a percentage point on Wednesday, coupled with indications of further rate cuts throughout the year, aimed to address emerging weaknesses in the U.S. job market. While lower borrowing costs typically stimulate oil demand and elevate prices, the market remained clouded by persistent oversupply and subdued fuel demand in the United States, the world’s largest oil consumer. Kuwait’s oil minister, Tariq Al-Roumi, expressed optimism about a potential surge in oil demand, particularly from Asian markets, following the rate cut. However, some analysts remained skeptical, citing the Fed’s move as a response to a slowing economy rather than a catalyst for immediate price recovery. Federal Reserve Chair Jerome Powell highlighted the growing risks to employment compared to inflation, emphasizing the need for careful assessment and management of inflation risks. Additionally, U.S. crude oil stockpiles saw a sharp decline last week, driven by a record low in net imports and a significant increase in exports. However, a larger-than-expected rise in distillate stockpiles raised concerns about demand in the U.S., further pressuring oil prices. The market’s uncertainty underscores the complex interplay between monetary policy, economic indicators, and global oil supply dynamics.
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India’s upGrad eyes Asia expansion as US campuses lose appeal
Indian edtech giant upGrad is strategically broadening its university collaborations across the Middle East and the Asia-Pacific region, responding to a significant decline in Indian students opting for U.S. and UK institutions. This shift is driven by escalating visa restrictions, rising costs, and geopolitical tensions, according to Praneet Singh, Associate Vice President of upGrad’s Study Abroad division. Founded by film producer Ronnie Screwvala and supported by Singapore’s Temasek, upGrad currently partners with approximately 80 universities in 10 countries, offering online MBAs and executive education programs. The company generates revenue by enrolling students in online courses and facilitating their transition to overseas campuses to complete degrees. Singh highlighted that prestigious U.S. and UK universities have established campuses in Dubai, Malaysia, and Singapore, prompting upGrad to follow suit. The company is actively exploring partnerships with institutions like Johns Hopkins, Carnegie Mellon, Birmingham, and Middlesex, which have campuses in Dubai or Doha, as well as universities in Vietnam, Bangladesh, Nepal, and Sri Lanka. This strategic pivot comes as Indian student applications to U.S. universities have dropped significantly, with only 47% of students choosing the U.S. in fiscal 2025, down from 60% the previous year. Factors such as stricter visa policies, weaker job prospects, and the allure of more affordable educational destinations in the Middle East and Asia-Pacific are reshaping the global education landscape. upGrad’s expansion reflects a broader trend of Indian students seeking alternatives to traditional Western education hubs.
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Stocks and dollar drift higher after Fed cut, focus turns to BoE
Global financial markets experienced a mixed yet cautiously optimistic response on Thursday following the U.S. Federal Reserve’s first interest rate cut of the year. The pan-European STOXX 600 index and Wall Street futures both rose by 0.5%, reflecting a steady sentiment despite initial volatility. Meanwhile, Asian markets, particularly in China, South Korea, Taiwan, and Japan, rallied overnight, with Chinese stocks reaching a 10-year high amid reports of U.S. chipmaker Nvidia being banned in China. The dollar edged 0.2% higher after hitting a 3.5-year low earlier in the week, providing some relief to non-U.S. exporters. Fed Chair Jerome Powell tempered expectations by emphasizing a measured approach to future rate cuts, with the ‘dot plot’ signaling two more reductions in 2025 and one in 2026. In Europe, the euro remained stable at $1.1825, while the pound held steady at $1.36 ahead of the Bank of England’s rate decision. Analysts anticipate the BoE may slow its bond reduction pace due to recent market volatility. French bond yields surpassed Italy’s, highlighting ongoing political uncertainties. Commodity markets saw Brent crude dip 0.2% to $67.87 per barrel, while gold rose 0.2% to $3,665 per ounce. The Norwegian crown softened slightly after a 25 basis point rate cut, and the Australian dollar slipped 0.4% following weaker-than-expected labor market data. Bond markets rallied, with U.S. 10-year Treasury yields dropping to 4.06%.
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Weekly quiz: Why were these nuns on the run?
This week, London became the epicenter of heightened tensions as a rally in the city sparked widespread attention. Meanwhile, the boxing community came together to honor the legendary Ricky Hatton, celebrating his remarkable contributions to the sport. On the entertainment front, the cult favorite series *The Summer I Turned Pretty* reached its dramatic conclusion, leaving fans eagerly anticipating future developments. Amidst these events, it’s worth reflecting on the broader global happenings over the past seven days. For those keen on testing their knowledge, Ben Fell has curated a quiz to challenge your memory of recent events. Whether you’re revisiting last week’s quiz or exploring the archives, there’s no shortage of engaging content to delve into. In Europe, Austria has been making headlines, particularly in discussions surrounding religion and its societal impact.
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US immigration judge orders Khalil deportation, his lawyers say separate ruling protects him for now
In a controversial decision, a U.S. immigration judge has ordered the deportation of Mahmoud Khalil, a pro-Palestinian activist and Columbia University student, to either Algeria or Syria. The ruling, issued on September 17, 2025, stems from allegations that Khalil omitted critical information from his green card application. Immigration Judge Jamee Comans asserted that Khalil ‘willfully misrepresented material facts’ to bypass immigration protocols and increase his chances of approval. However, Khalil’s legal team has vowed to appeal the decision, citing ongoing federal court orders that prevent his immediate deportation or detention. Khalil, a 30-year-old permanent U.S. resident of Palestinian descent, was previously detained for over 100 days earlier this year under the Trump administration’s crackdown on pro-Palestinian activism. During his detention, Khalil missed the birth of his child, as his wife, a U.S. citizen, was pregnant at the time. He was eventually released on June 20 after U.S. District Judge Michael Farbiarz ruled that punishing Khalil for a civil immigration matter was unconstitutional. The Trump administration has labeled pro-Palestinian activists like Khalil as antisemitic and supporters of extremism, a characterization vehemently denied by protesters, including some Jewish groups. They argue that criticizing Israel’s actions in Gaza and advocating for Palestinian rights is unfairly equated with extremism. Khalil has accused the administration of retaliating against him for exercising his right to free speech, stating, ‘They resorted to fabricating baseless allegations to silence me.’ The case has sparked widespread concern among human rights advocates, who warn that such actions threaten free speech and due process. Columbia University, where Khalil is a student, was a focal point of last year’s protests calling for an end to Israel’s war and divestment from companies supporting Israel. The ongoing legal battle highlights the tension between immigration enforcement and constitutional rights in the U.S.
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Egypt’s billboard boom strains eyes but raises profits
Cairo’s bustling streets, already notorious for their chaotic traffic, are now facing a new challenge: an overwhelming surge in flashy billboards. These large, brightly lit advertisements, which have more than doubled in number over the past six years, are raising concerns about driver concentration and the quality of life for residents. According to AdMazad, an advertising analytics firm, the number of billboards has skyrocketed from 2,500 in 2019 to approximately 6,300 today, with digital ads increasing more than tenfold to over 300 in the same period. This translates to more than 30 billboards per square kilometer in inhabited areas. The proliferation of these ads is largely attributed to the expansion of Egypt’s transport network under President Abdel Fattah al-Sisi, who has invested billions in new roads and bridges. While the advertising industry has become a significant source of government revenue, generating 6.3 billion Egyptian pounds ($130 million) in 2024, the psychological and visual impact on drivers and residents cannot be ignored. Psychotherapist Khaled Salaheldin warns that constant exposure to idealized lifestyles can lead to feelings of inadequacy, especially in a country grappling with inflation and subsidy cuts. In response, Egyptian Prime Minister Mostafa Madbouly has called for stricter regulations to ensure that advertisements preserve urban aesthetics and societal norms.