Key Takeaways
- UK retail sales volumes for July rose by a stronger-than-expected 0.6% month-over-month, exceeding estimates, though year-over-year growth slowed to 1.1%.
- US President Donald Trump announced plans for "fairly substantial" chip tariffs "very shortly," but signaled that companies like Apple (AAPL) would be exempt during a White House dinner with tech CEOs.
- Russian President Vladimir Putin confirmed ongoing discussions with China on trilateral Arctic collaboration and progress on the Power of Siberia 2 gas pipeline, emphasizing market-based pricing.
- Ukraine's drone forces confirmed a successful strike on the Ryazan oil refinery in Russia, marking another hit on Russian energy infrastructure.
UK Retail Sector Shows Resilience Amid Broader Slowdown
British retail sales volumes saw a notable increase of 0.6% month-over-month in July, surpassing economists' forecasts of a 0.2% rise. This positive momentum was observed both including and excluding auto fuel, with ex-auto fuel sales growing by 0.5% month-over-month. However, the year-over-year picture presented a more subdued trend, with total retail sales (including auto fuel) growing by 1.1%, falling short of the 1.3% estimate and significantly slower than the previous 1.7%.
Excluding auto fuel, year-over-year retail sales growth was 1.3%, slightly above the 1.1% estimate but still down from the prior 1.8%. The mixed results suggest a resilient consumer spending environment on a monthly basis, potentially influenced by specific factors, but a broader deceleration in annual growth compared to previous periods.
Trump Signals New Chip Tariffs, Exempting Key Tech Players
US President Donald Trump announced that his administration would "very shortly" impose "fairly substantial" tariffs on semiconductor imports. However, he provided assurances that major tech companies, including Apple (AAPL), would be safe from these new levies. This signal came during a dinner with tech CEOs at the White House on Thursday, as reported by CNBC.
The President's remarks suggest a targeted approach to tariffs, potentially incentivizing domestic production while aiming to protect key American technology firms that have committed to US manufacturing. The move could reshape supply chains in the semiconductor industry, pushing for greater localization of production.
Russia Intensifies Arctic and Energy Cooperation with China
Russian President Vladimir Putin has been actively engaging in energy and Arctic diplomacy, confirming discussions with China on trilateral Arctic collaboration. Putin also highlighted the progress made on the Power of Siberia 2 gas pipeline to China, emphasizing that its gas prices would be "market-based" and match the European gas export formula. This pipeline is expected to deliver over 100 billion cubic meters of gas annually to China, securing a long-term market for Russia after reduced exports to Europe.
Furthermore, Putin indicated that discussions are underway on multiple gas and oil industry options and expressed Russia's willingness to collaborate on various Arctic projects. He also noted that U.S. companies are interested in cooperating on projects in Alaska, suggesting potential areas of mutual interest despite geopolitical tensions. Separately, Putin urged Russian coal firms to focus on the home market, aligning with a broader strategy for domestic resource utilization.
Ukraine Confirms Strike on Russian Ryazan Oil Refinery
Ukraine's drone forces commander confirmed a successful strike on the Ryazan oil refinery in Russia. This incident marks another confirmed attack by Ukrainian forces on Russian energy infrastructure. Such strikes are part of Ukraine's strategy to disrupt Russia's war economy and logistics, targeting facilities critical for fuel production. Regional reports indicated a large blaze at the refinery, approximately 350 km from the Ukraine-Russia border.
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.