{"id":51347,"date":"2025-08-01T09:38:41","date_gmt":"2025-08-01T13:38:41","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/"},"modified":"2025-08-01T09:38:41","modified_gmt":"2025-08-01T13:38:41","slug":"global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/","title":{"rendered":"Global Economic Snapshot: Inflation Holds, Tariffs Bite, and AI Soars"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/#Eurozone_Inflation_Holds_Steady_at_ECB_Target\" >Eurozone Inflation Holds Steady at ECB Target<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/#Swiss_Disappointment_Over_Steep_US_Tariffs\" >Swiss Disappointment Over Steep U.S. Tariffs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/#Chinas_SAFE_to_Implement_Counter-Cyclical_Adjustments\" >China&#39;s SAFE to Implement Counter-Cyclical Adjustments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/#MIRAN_Reports_Job_Revisions_and_Tariff_Uncertainty_Decrease\" >MIRAN Reports Job Revisions and Tariff Uncertainty Decrease<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/#Chinese_AI_Company_Zhipu_Anticipates_Significant_Revenue_Growth\" >Chinese AI Company Zhipu Anticipates Significant Revenue Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-snapshot-inflation-holds-tariffs-bite-and-ai-soars\/51347\/#Commodity_Corner_Newsletter_Launched\" >Commodity Corner Newsletter Launched<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Eurozone inflation remained stable at the European Central Bank&#39;s (ECB) 2.0% target in July<\/strong>, reducing the likelihood of further interest rate cuts despite earlier expectations for a slight easing.<\/li>\n<li><strong>Switzerland expressed &quot;great regret&quot; over new U.S. tariffs of 39% imposed on its imports<\/strong>, significantly higher than the 15% negotiated with the European Union, leading to disappointment and ongoing diplomatic efforts.<\/li>\n<li><strong>China&#39;s State Administration of Foreign Exchange (SAFE) affirmed its readiness to implement &quot;counter-cyclical adjustments&quot;<\/strong> to manage foreign exchange market volatility amidst intensifying trade frictions.<\/li>\n<li><strong>Chinese AI company Zhipu AI anticipates a fourfold increase in revenue by 2025<\/strong>, driven by significant state-backed investments and expansion into consumer electronics.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Eurozone_Inflation_Holds_Steady_at_ECB_Target\"><\/span>Eurozone Inflation Holds Steady at ECB Target<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Preliminary reports indicate that <strong>July inflation in the Eurozone held firm at the European Central Bank&#39;s (ECB) medium-term target of 2.0%<\/strong>. This stability, unchanged from June, comes despite analysts&#39; predictions of a slight decrease to 1.9%. The consistent inflation rate further diminishes the probability of another interest rate cut by the ECB, which had already held rates steady at 2% after eight cuts since June 2024.<\/p>\n<p>While core inflation, excluding volatile items like food and fuel, also remained stable at 2.3%, a slight slowdown in services price growth was offset by a pickup in goods inflation. The Eurozone&#39;s economy has been influenced by tariff uncertainty, though a recent trade deal between the U.S. and the EU, imposing 15% tariffs on most European exports, has somewhat alleviated pressure on the ECB to cut rates further.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Swiss_Disappointment_Over_Steep_US_Tariffs\"><\/span>Swiss Disappointment Over Steep U.S. Tariffs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Switzerland has voiced &quot;great regret&quot; following the imposition of new U.S. tariffs, with a <strong>39% tariff on Swiss imports<\/strong> coming into effect. This figure is substantially higher than the 15% tariff agreed upon for the European Union and the 31% initially floated for Switzerland. Swiss President Karin Keller-Sutter described previous talks as &quot;very constructive&quot; and expressed disappointment that the final tariff was much higher than what was negotiated. The Swiss government is maintaining contact with the U.S. side and has already made contact to discuss the matter further.<\/p>\n<p>The new tariffs, coming into force on August 7th, are a significant blow to Switzerland&#39;s export-oriented economy, which saw exports to North America plummet by 39.6% in May. Switzerland is among 15 countries with which the U.S. plans to conduct &quot;privileged&quot; negotiations to reach a deal on tariffs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chinas_SAFE_to_Implement_Counter-Cyclical_Adjustments\"><\/span>China&#39;s SAFE to Implement Counter-Cyclical Adjustments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>China&#39;s <strong>State Administration of Foreign Exchange (SAFE)<\/strong> has stated its intention to conduct <strong>timely &quot;counter-cyclical adjustments&quot;<\/strong> to manage short-term volatility in foreign exchange markets. This move comes as China faces intensifying trade frictions with the United States. SAFE aims to maintain stability in the financial system and balance in international payments, indicating confidence in its &quot;ample&quot; reserves to cope with challenges.<\/p>\n<p>The People&#39;s Bank of China (PBOC) previously utilized a &quot;counter-cyclical factor&quot; in its yuan midpoint reference rate formula to dampen depreciation expectations. China has also emphasized strengthening counter-cyclical adjustments in its monetary policy to support stable economic growth.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"MIRAN_Reports_Job_Revisions_and_Tariff_Uncertainty_Decrease\"><\/span>MIRAN Reports Job Revisions and Tariff Uncertainty Decrease<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>MIRAN<\/strong> (likely referring to Stephen Miran, Chairman of the White House Council of Economic Advisers) has reported <strong>job revisions for May and June<\/strong>, while considering <strong>July data &quot;decent.&quot;<\/strong> This suggests a re-evaluation of recent employment trends. Additionally, MIRAN indicated that <strong>tariff uncertainty is decreasing<\/strong>. Previously, Miran has downplayed fears of investment fallout from certain tax provisions and maintained that tariffs are not leading to significant price pressures for imported goods in the long run.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chinese_AI_Company_Zhipu_Anticipates_Significant_Revenue_Growth\"><\/span>Chinese AI Company Zhipu Anticipates Significant Revenue Growth<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Chinese artificial intelligence company <strong>Zhipu AI<\/strong> is projecting a <strong>fourfold increase in revenue by 2025<\/strong>. This ambitious forecast follows significant funding, including a <strong>1 billion yuan ($140 million) investment from Shanghai&#39;s state-backed investors<\/strong>. Zhipu AI, a leading domestic AI player, is expanding its reach by embedding its AI agents into consumer electronics and has secured deals with manufacturers such as Xpeng Motors (<a href=\"\/stock\/XPEV\">XPEV<\/a>), Honor, Samsung (<a href=\"\/stock\/SMSN.L\">SMSN.L<\/a>), Asus (<a href=\"\/stock\/ASUS\">ASUS<\/a>), Qualcomm (<a href=\"\/stock\/QCOM\">QCOM<\/a>), and Intel (<a href=\"\/stock\/INTC\">INTC<\/a>). The company is also releasing its largest open-source model to date, GLM-4.5, further solidifying its position as a challenger to OpenAI (<a href=\"\/stock\/MSFT\">MSFT<\/a>).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Commodity_Corner_Newsletter_Launched\"><\/span>Commodity Corner Newsletter Launched<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>LiveSquawk<\/strong> has launched its latest weekly <strong>Commodity Corner newsletter<\/strong>, authored by Chris Stadele. The newsletter provides actionable analysis on equities, energies, agriculture, metals, and other critical assets. It covers topics such as crude oil, corn, and coffee, offering insights into market trends and potential trading opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Eurozone inflation remained stable at the European Central Bank&#39;s (ECB) 2.0% target in July, reducing the likelihood of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[5440,1327,6275,2850,7547,3703,7548,4037,7549,4179,4223,5080,5142,5194],"class_list":["post-51347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-eurozone","tag-china","tag-safe","tag-jobs","tag-miran","tag-ai","tag-zhipu","tag-ecb","tag-chf","tag-tariffs","tag-inflation","tag-eur","tag-pboc","tag-switzerland"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/51347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=51347"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/51347\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=51347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=51347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=51347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}