International business briefs: MGX could raise up to $25bn for AI fund

EU goods face all-inclusive 15% US tariff

Brussels — The 15% tariff that EU goods face when entering the US is all-inclusive, incorporating the most favoured nation rate, unlike some other countries with deals with the US, an EU official said on Tuesday.

The 15% rate applies to all goods, except for steel and aluminium, the official said. Tariffs on pharmaceuticals and semiconductors are now zero, but if and when they rise as a result of the US 232 investigations, the tariff will be no higher than 15% as well.

This 15% ceiling also applies to cars and car parts. There are no quotas or limits on cars and car parts. Reuters

MGX mulls plan to give its AI holdings a $25bn boost

Dubai — Abu Dhabi-based MGX is considering plans to raise as much as $25bn in third-party capital as the investment group looks to ramp up its artificial intelligence holdings, Bloomberg News reported on Tuesday, citing people familiar with the matter.

MGX declined to comment on the report and Reuters could not immediately verify it.

Company executives are weighing raising money from financial and strategic investors in Abu Dhabi and beyond, but Mubadala Investment Co and AI firm G42 will remain MGX’s main backers, the report said.

No final decisions have been made, according to the report. Reuters

HSBC lifts S&P 500 target

Bengaluru — HSBC raised its year-end S&P 500 index target on Tuesday by more than 800 points to 6,400, citing euphoria around artificial intelligence (AI) and easing US policy uncertainty.

The upgrade comes after similar moves from other brokerages, including Goldman Sachs and BofA Global Research, last month.

“The AI trade is powering the tech/AI cohort higher (roughly half of the S&P 500), while reduced policy uncertainty (namely tariffs) is fuelling the ‘rest’ of the market,” HSBC strategists wrote in a note.

The S&P 500 has rebounded 30.8% since its April 8 low, following US President Donald Trump’s “liberation day” tariffs. The index notched fresh highs in July, driven by upbeat earnings from tech giants Microsoft and Meta Platforms , which renewed investor optimism around AI.

HSBC’s new target represents a marginal 1.1% upside to the index’s last close at 6,329.94. Its previous target was 5,600 for the index. Reuters

Fall in goods imports narrows US trade deficit

New York — The US trade deficit narrowed in June on a sharp drop in consumer goods imports, the latest evidence of the imprint on global commerce US President Donald Trump is making with sweeping tariffs on imported goods.

The overall trade gap narrowed 16.0% in June to $60.2bn, the commerce department’s Bureau of Economic Analysis said on Tuesday. Days after reporting that the goods trade deficit tumbled 10.8% to its lowest since September 2023, the government said the full deficit including services also was its narrowest since September 2023.

Exports of goods and services totalled $277.3bn, down from more than $278bn in May, while total imports were $337.5bn, down from $350.3bn.

The diminished trade deficit contributed heavily to the rebound in US GDP during the second quarter, reported last week, reversing a drag in the first quarter when imports had surged as consumers and businesses front-loaded purchases to beat the imposition of Trump’s tariffs.

The economy in the second quarter expanded at a 3.0% annualised rate after contracting at a 0.5% rate in the first three months of the year, but the headline figure masked underlying indications that activity was weakening. Reuters

Oil price declines further

London — Oil slipped over 1% on Tuesday as rising Opec+ supply and worries of weaker global demand countered concern about US President Donald Trump’s threats to India over its Russian oil purchases.

Opec+ agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.

Brent crude futures were down 82c, or 1.2%, to $67.94 a barrel at 12.45 GMT on Tuesday, while US West Texas Intermediate crude slipped 88c, or 1.3%, to $65.41. Both contracts fell by more than 1% on Monday to settle at their lowest in a week.

On Tuesday, Trump again threatened higher tariffs on Indian goods over the country’s Russian oil purchases over the next 24 hours. Trump also said declining energy prices could pressure Russian President Vladimir Putin to halt the war in Ukraine. New Delhi called his attack “unjustified” and vowed to protect its economic interests, deepening a trade rift between the two countries. Reuters

Former X boss Yaccarino to lead eMed Population Health

Bengaluru — Digital health platform eMed Population Health said on Tuesday it had appointed Linda Yaccarino, the former CEO of social media site X, as its CEO.

The online weight management company’s digital platform provides at-home diagnostics, proctor-led screenings, and physician-guided prescribing for patients with obesity and type 2 diabetes.

Yaccarino, one of Elon Musk’s top deputies, stepped down from her role at the social media site in July, in a surprise move just months after the platform was acquired by the billionaire's AI start-up, xAI. Reuters

Molson Coors expects bigger profit hit

Benagluru — Molson Coors forecast a bigger drop in its annual profit on Tuesday, hit by tariff impacts on costs of aluminium it uses for its beverage cans amid macroeconomic uncertainty in the US

President Donald Trump’s fluctuating trade tariff policies have pressured consumer spending in the US and caused customers to pare back on discretionary spending such as alcohol.

The annual forecast change comes as a result of “the anticipated ongoing macroeconomic impacts on the industry, our lower-than-expected US share performance, and higher-than-expected indirect tariff impacts on the pricing of aluminium,” CEO Gavin Hattersley said in a statement.

The company, which produces its beer locally at breweries in Colorado faces a 50% tariff on aluminium metal shipped into the US since June, when Trump doubled it from 25%.

Shares of the company were down about 1% in premarket trading. Reuters

Pfizer ups profit forecast on demand for heart drug

Bengaluru — US drug maker Pfizer on Tuesday raised its full-year profit forecast on strong demand for its heart disease drug, Vyndaqel, and blood thinner, Eliquis, after its second-quarter results benefited from a weaker dollar.

Pfizer said the new forecast includes a one-time charge of 20 cents per share related to its recent licensing deal with China’s 3SBio for experimental cancer treatment.

Shares of the New York-based company rose 2.8% to $24.19 in premarket trading.

The drug maker’s results come as the pharmaceutical industry faces intense pressure from President Donald Trump’s administration to lower drug prices, while preparing for 15% tariffs on imports from the EU. Reuters

Marriott cuts revenue forecast as travel slows

Bengaluru — Hotel operator Marriott International cut its full-year revenue growth forecast on Tuesday, signalling slow travel demand in the US amid looming economic uncertainties.

American consumers have been cutting back on discretionary expenses, including travel, after US President Donald Trump’s shifting trade policies and the resulting trade war sparked fears of a recession.

The Bethesda, Maryland-based company expects 2025 room revenue growth of 1.5% to 2.5%, with the midpoint below its previous forecast of 1.5% to 3.5% increase.

Marriott has also taken a hit from lower government spending, which accounted for about 4% of its US and Canada room nights in 2024. Reuters

Shibaura reclassified as core to Japan’s security

Tokyo — Japan’s Shibaura Electronics, a technology manufacturer at the centre of a $630m takeover battle, has been formally classified as core to national security, a finance ministry list of such firms showed.

The thermistor maker received an unsolicited takeover bid from Taiwanese components supplier Yageo in February and called on compatriot components maker Minebea Mitsumi to submit a competing bid.

Shibaura was previously not among those designated as significant to the economy or security, meaning a would-be buyer was not obligated to notify the government before any deal.

The new classification is unlikely to affect the course of the deal as Yageo protectively filed for a security review based on its own analyses that some of Shibaura’s businesses may fall under the core category. Reuters

Ethiopian Airlines’ revenue up as passengers increase

Addis Ababa — Ethiopian Airlines’ revenue rose 8% in the 2024/25 financial year, helped by higher passenger numbers and additional routes though it faced challenges on some routes due to conflicts, CEO Mesfin Tasew Bekele said on Tuesday.

The state-owned carrier, Africa’s biggest airline, saw passenger numbers increase by 11% to 19-million in the financial year that ended July 7, Mesfin told a press conference.

Revenue rose 8% from a year earlier to $7.6bn, but growth slowed from the 15% recorded in 2023/24.

“It was a good performance despite global challenges,” Mesfin said, citing conflicts in Sudan, the Middle East and Democratic Republic of Congo.

He added that some law changes in the US had affected the airline’s operations there. Reuters

DHL quarterly profit increase beats estimate

Gdansk — German logistics giant DHL on Tuesday reported a better-than-expected rise in second-quarter operating profit and reaffirmed its 2025 profit guidance despite persisting macroeconomic headwinds.

The second quarter was highly volatile with limited growth momentum and similar conditions are likely to persist in the second half of the year, CFO Melanie Kreis told reporters.

Despite analyst concerns, DHL confirmed its 2025 earnings before interest and taxation (ebit) target of at least €6bn and forecast annual free cash flow of about €3bn, excluding mergers & acquisitions, while noting the outlook excludes potential tariff or trade policy impacts.

The company’s quarterly operating profit was €1.43bn, above analysts’ forecast of €1.33bn in a company provided consensus, as strict cost controls offset currency headwinds and weak trade volumes. Reuters

Raiffeisen Bank gets nod to sell Russian unit

Moscow — A Russian court has lifted interim measures that effectively banned Austria’s Raiffeisen Bank International from selling its Russian subsidiary, a lawyer for the bank and the Russian unit, Raiffeisenbank, said on Tuesday.

The court’s decision could bring RBI closer to finding a way to exit Russia, which the bank says it has been working on for more than three years since Russia launched the conflict in Ukraine.

But finding a suitable, non-sanctioned buyer remains a challenge and banks face extra regulatory hurdles, including needing the personal approval for any deal from President Vladimir Putin.

RBI did not immediately respond to a request for comment. Reuters

Regulator fines Woodford Investment Management

Bengaluru — Britain’s financial watchdog said it would fine Neil Woodford, a former star stockpicker, and his investment firm nearly £46m over their failure to manage their now collapsed flagship fund.

The Financial Conduct Authority (FCA) said Neil Woodford would be fined £5.9m and banned from holding senior manager roles and managing funds for retail investors, and Woodford Investment Management £40m.

The parties are appealing the FCA’s decision.

The FCA said Woodford and Woodford Investment Management made unreasonable and inappropriate investment decisions between July 2018 and June 2019. Reuters

Germany seeks sourcing options for rare earths

Frankfurt — Germany’s economy ministry published plans on Tuesday to diversify the sourcing of crucial components used mainly in offshore wind turbines by 2035 to reduce dependency on China.

The move is part of the government's broader “derisking” strategy amid geopolitical tensions with China, and after the energy crisis sparked by Russia’s war in Ukraine highlighted the dangers of over-reliance on one country for vital supplies.

Wind generation plants, especially out at sea, need powerful permanent magnets containing rare earths to optimise output and reduce maintenance, but their scarcity creates supply risks, the ministry said in a press release.

“Permanent magnets nearly all come from China, which also applies to the rare earths from which they are produced,” the ministry said, as it published a road map setting out alternative sourcing options, potentially including Australia and Japan.

“We want to systematically reduce critical dependencies, for example on rare earths, from individual third countries,” it added. Reuters

Britain’s minimum wage rate ‘will need to rise’

London — Britain’s main minimum wage rate will probably need to rise 4.1% next year to £12.71 an hour to keep up with the government’s goal for it to match two thirds of median earnings, the body, which effectively sets the rate, said on Tuesday.

Britain’s minimum wage has risen steeply in recent years — increasing by 6.7% in April to £12.21 an hour — and last year it was the second highest in Europe after France, as a percentage of median earnings, according to Organisation for Economic Co-operation and Development data.

Rising wage costs across the whole economy are seen by the Bank of England as one reason British inflation has been higher than elsewhere in Europe, though it expects pressure to ease as the job market is slowing.

Britain’s minimum wage is set by the government each year based on a recommendation from the Low Pay Commission, a government-appointed body that includes representatives from employers, trade unions and academia.

About 6.5% of British workers receive the minimum wage and a significant number — especially in sectors such as retail, hospitality and cleaning — are paid only slightly more. Reuters

Blackstone plans to acquire Japan’s TechnoPro

Tokyo — Blackstone plans to acquire Japanese engineering staffing company TechnoPro Holdings for about ¥500bn , the Nikkei business daily reported on Tuesday.

Blackstone is likely to offer just below ¥4,900 for each TechnoPro share in the tender offer it plans to launch soon, according to the report.

In response to a Mergermarket report last month, the company was considering privatisation, TechnoPro has said it is looking into various options to boost corporate value including privatisation; but nothing has been decided.

No-one was available for comment outside regular business hours at TechnoPro, while a Blackstone spokesperson was not immediately available for comment when contacted by phone. Reuters