{"id":72453,"date":"2026-09-30T23:38:22","date_gmt":"2026-10-01T03:38:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tencent-secures-7b-ai-chip-deal-with-oracle-european-markets-slip-as-us-senate-confirms-new-labor-secretary\/72453\/"},"modified":"2026-09-30T23:38:22","modified_gmt":"2026-10-01T03:38:22","slug":"tencent-secures-7b-ai-chip-deal-with-oracle-european-markets-slip-as-us-senate-confirms-new-labor-secretary","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tencent-secures-7b-ai-chip-deal-with-oracle-european-markets-slip-as-us-senate-confirms-new-labor-secretary\/72453\/","title":{"rendered":"Tencent Secures $7B AI Chip Deal with Oracle; European Markets Slip as US Senate Confirms New Labor Secretary"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Tencent (<a href=\"\/stock\/TCEHY\">TCEHY<\/a>) has signed a landmark $7 billion deal with Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>)<\/strong> to lease 100,000 advanced AI chips, bypassing domestic shortages and US export restrictions.<\/li>\n<li><strong>European equity futures are trading lower<\/strong>, with the <strong>EURO STOXX 50<\/strong> and <strong>DAX<\/strong> both slipping <strong>0.6%<\/strong> as global markets digest geopolitical tensions and shifting trade policies.<\/li>\n<li><strong>The US Senate confirmed Keith Sonderling as Labor Secretary<\/strong> in a narrow <strong>47-41 vote<\/strong>, filling a critical cabinet vacancy following months of leadership turnover.<\/li>\n<li><strong>India and the US are nearing an interim trade agreement<\/strong> after productive discussions between Trade Minister Piyush Goyal and USTR Jamieson Greer.<\/li>\n<li><strong>Australia\u2019s nationwide ban on card surcharges<\/strong> has forced small businesses to implement immediate price increases to offset rising transaction costs.<\/li>\n<\/ul>\n<p>In a major move to bolster its artificial intelligence capabilities, Tencent (<a href=\"\/stock\/TCEHY\">TCEHY<\/a>) has secured a <strong>five-year lease agreement with Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>)<\/strong> valued at approximately <strong>$7 billion<\/strong>. The deal provides the Chinese tech giant with access to <strong>100,000 advanced AI chips<\/strong>\u2014widely believed to be high-end processors from <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)\u2014which are currently restricted for direct sale to China. By hosting the hardware in <strong>Oracle\u2019s Southeast Asian data centres<\/strong>, Tencent is leveraging a regulatory workaround to maintain its competitive edge in the global AI race.<\/p>\n<p>The financial impact of this massive infrastructure investment is already appearing on Tencent&#39;s balance sheet. The company reportedly paid <strong>30% of the deal&#39;s value upfront<\/strong>, contributing to a <strong>negative free cash flow of $2 billion (Rmb13.8bn)<\/strong> in its most recent quarterly results. This marks the first time in over a decade that the social media and gaming leader has reported a negative quarterly cash flow figure, highlighting the extreme costs associated with securing next-generation computing power.<\/p>\n<p>Meanwhile, European markets are signaling a cautious open as futures for the <strong>EURO STOXX 50 and DAX fell 0.6%<\/strong>, while <strong>FTSE futures dropped 0.5%<\/strong>. Investors remain wary of escalating geopolitical risks in the Middle East and South Asia, alongside uncertainty regarding the pace of global interest rate cuts. The downward trend in Europe follows a mixed session in Asia, where traders weighed the implications of China&#39;s aggressive AI spending against broader economic headwinds.<\/p>\n<p>In Washington, the <strong>US Senate has officially confirmed Keith Sonderling as the Secretary of Labor<\/strong>. Sonderling, who has been serving in an acting capacity since April, was approved in a <strong>47-41 party-line vote<\/strong>. He takes over a department tasked with navigating the impact of AI on the workforce and managing federal labor laws, following the resignation of former Secretary Lori Chavez-DeRemer amid internal misconduct investigations.<\/p>\n<p>On the international trade front, <strong>India\u2019s Commerce Minister Piyush Goyal<\/strong> met with <strong>US Trade Representative Jamieson Greer<\/strong> to advance a &quot;balanced and mutually beneficial&quot; interim trade agreement. The discussions, held on the sidelines of the G20 Trade Ministerial, focus on providing <strong>preferential market access<\/strong> for Indian exporters and rebalancing trade ties. This progress comes as South Korean <strong>President Lee Jae-myung<\/strong> also moves to reduce regional tensions, vowing to seek &quot;practical measures&quot; for peace with North Korea while managing a <strong>$350 billion strategic investment package<\/strong> with the United States.<\/p>\n<p>Finally, a significant shift in the Australian retail landscape took effect today as the <strong>ban on credit and debit card surcharges<\/strong> officially commenced. Small businesses, including ubiquitous cafes and shops, have begun <strong>lifting prices by as much as 50 cents per item<\/strong> to recover the <strong>$1.6 billion<\/strong> in annual processing fees previously passed on to consumers. Industry representatives warn that while the ban removes &quot;surprise fees&quot; at the till, the cost of living for consumers will likely rise as merchants move to protect their thin profit margins.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Tencent (TCEHY) has signed a landmark $7 billion deal with Oracle (ORCL) to lease 100,000 advanced AI chips, 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