International News 04 July 2025
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Powell: Fed Rate Cut Hinges on Data, as Trump Pressure Mounts
Federal Reserve Chair Jerome Powell signaled that any decision to cut the U.S. benchmark interest rate in late July will heavily depend on the latest inflation and labor market data. Speaking at the ECB’s Sintra Forum in Portugal, Powell emphasized a cautious stance amid rising political pressure from President Donald Trump, who has called for aggressive rate cuts to spur consumer and business activity. The Fed has held rates steady at 4.25%–4.50% due to inflation risks fueled by record-high import tariffs imposed by Trump. While Trump-appointed Fed governors Christopher Waller and Michelle Bowman suggested a possible cut in July if inflation proves temporary, Powell remains cautious. Many analysts expect a 25-bps cut in September, though others, including Morgan Stanley’s chief U.S. economist, believe there may be no cut at all this year.
Tesla Q2 Sales Drop 13.5%, Annual Target at Risk
Tesla Inc. reported a 13.5% drop in global vehicle deliveries for Q2 2025, totaling 384,122 units—missing analyst forecasts and marking a second consecutive quarterly decline. Despite this, Tesla shares rose 4.5% as the results were better than worst-case expectations, with some signs of demand recovery in China. To avoid a second straight annual sales decline, Tesla must deliver over one million vehicles in the second half of the year—a tough goal amid global economic pressures and proposed U.S. tax changes under President Trump that may eliminate key EV incentives. Elon Musk’s political affiliations and delays in launching a promised low-cost model have also affected sentiment. Still, stronger Model Y sales in China and improving numbers in European markets like Norway and Spain offer hope amid stiff competition from local players like BYD.
US Lifts Chip Software Export Ban to China, Siemens Restores Access
Germany’s Siemens AG has reportedly received notice from the U.S. government that export restrictions on chip design software to China have been lifted, according to Bloomberg News. The move allows Siemens to fully resume providing its software and technology to Chinese clients. This development reverses an earlier U.S. policy from May 2025 that required companies like Siemens, Cadence, and Synopsys to obtain special licenses before exporting chip design tools and semiconductor materials to China. The easing comes amid ongoing U.S.-China trade and tech tensions.