Key Takeaways
- The U.S. Department of Health and Human Services (HHS) is withdrawing funding for RNA vaccine development, signaling a significant shift in agency priorities under Secretary Robert F. Kennedy Jr.
- Advanced Micro Devices (AMD) anticipates that U.S. export restrictions on its MI308 AI chips to China will continue to impact revenue for several quarters, leading to an $800 million charge in Q2 2025.
- U.S. crude oil inventories, as reported by the American Petroleum Institute (API), saw a substantial draw of 4.2 million barrels, significantly exceeding the expected 1.8 million barrel decrease.
- Canada's Finance Minister reported "constructive" ongoing trade discussions with the U.S. despite new tariffs, while also forging closer ties with Mexico on supply chain resilience and energy security.
- New Zealand is set to replace its petrol tax with a distance-based Road User Charges (RUC) system, with legislation slated for 2026 and implementation by 2027.
The global economic landscape is experiencing a series of notable shifts, from significant policy changes in healthcare and energy to ongoing trade negotiations and sector-specific challenges. Key developments include a major pivot in U.S. vaccine funding, persistent geopolitical headwinds for semiconductor giants, and evolving energy market dynamics.
U.S. Health Policy Sees Major Shift in Vaccine Funding
The U.S. Department of Health and Human Services (HHS), under the leadership of Secretary Robert F. Kennedy Jr., is reportedly withdrawing funding for the development of RNA vaccines. This move represents a substantial change in the agency's practices and could have far-reaching implications for the biotechnology and pharmaceutical sectors that have heavily invested in this cutting-edge technology. Secretary Kennedy Jr. has previously expressed skepticism regarding vaccine safety, and this decision aligns with a broader re-evaluation of public health strategies within the department.
AMD Faces Prolonged China Export Impact
Advanced Micro Devices (AMD) is grappling with the ongoing effects of U.S. export restrictions on its high-performance MI308 AI chips destined for China. The company anticipates that the impact of these restrictions will persist for several quarters, leading to an approximate $800 million in inventory and related charges for the second quarter of 2025. Despite these headwinds, AMD's CEO noted that most of its inventory does not consist of finished goods, and little pull-forward demand has been observed, suggesting some mitigation of the broader impact. The company's stock experienced a dip in after-hours trading following the release of its mixed Q2 2025 results, even as it reported record revenue of $7.7 billion, a 32% year-over-year increase.
API Reports Significant Crude Oil Draw
In the energy markets, the American Petroleum Institute (API) reported a notable draw in U.S. crude oil inventories, with stockpiles decreasing by 4.2 million barrels. This figure significantly surpassed analyst expectations of a 1.8 million barrel decline, indicating stronger-than-anticipated demand. However, the report also showed mixed signals, with gasoline inventories decreasing by 900,000 barrels and distillates increasing by 1.6 million barrels. Additionally, crude oil stockpiles at Cushing, Oklahoma, a key delivery hub, saw an increase of 1.7 million barrels, while the Strategic Petroleum Reserve (SPR) added 300,000 barrels.
Canada Navigates Trade Relations and Strengthens North American Ties
Canada's Finance Minister indicated that trade talks with the United States remain "constructive," despite the U.S. imposing new tariffs on certain Canadian goods. This ongoing dialogue aims to address trade restrictions and ensure stability between the two major trading partners. Concurrently, Canada has agreed with Mexico on a comprehensive work plan focused on strengthening supply chains and enhancing energy security across North America. This collaboration seeks to diversify natural gas sourcing, reducing Mexico's current reliance on U.S. natural gas imports and exploring increased imports from Canada.
New Zealand to Overhaul Road Funding with User Charges
New Zealand is moving forward with plans to replace its existing petrol tax with a new system of Road User Charges (RUC). Legislation for this transition is anticipated in 2026, with full implementation expected by 2027. The shift aims to ensure that all road users, regardless of their vehicle's fuel type, contribute fairly to the maintenance and development of the country's road network. This policy change follows the expiration of RUC exemptions for light electric vehicles and plug-in hybrids in April 2024.
Apple iSports Secures Capital for Gaming Acquisitions
In the gaming and entertainment sector, Apple iSports has secured a capital facility of up to $25 million from LDA Capital. This funding is intended to support Apple iSports' strategic acquisitions in the gaming and entertainment industries, signaling potential growth and consolidation within the sector.
Political Tensions Rise Over U.S. Redistricting
Separately, political tensions are escalating in the U.S. as former President Donald Trump and House Speaker Mike Johnson face a growing GOP revolt over congressional redistricting efforts. Democrats in Texas have notably left the state to prevent a quorum, blocking a vote on a redrawn congressional map that Republicans, at Trump's urging, seek to enact to gain more House seats. This dispute highlights the intense partisan battles over electoral maps ahead of upcoming elections.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.