Nearly three million Tesla vehicles built in China are being recalled because their concealed door handles may be difficult to locate and operate in emergencies. The recall also includes vehicles from Chinese manufacturers XPeng, Xiaomi and Geely and stems from safety concerns that the retractable handles can be hard to identify when the low‑voltage system fails after a collision. Tesla announced on Friday that it will affix warning labels to the affected Model 3, Y, S and X cars and roll out a software update that automatically lowers the windows after a crash. The measure is intended to improve emergency egress but does not replace a mechanical door release. Chinese authorities require that, starting 1 January 2027, all cars sold in the market must have a manual release on both the interior and exterior of each door. Two fatal crashes involving Xiaomi electric vehicles have highlighted the issue, prompting scrutiny of the hidden‑handle design. Industry analyst Tu Le of Sino Auto Insights noted that the practice of copying Tesla’s sleek door‑handle styling since 2014 has amplified the problem, and that the current fixes amount to a temporary patch rather than a permanent solution. U.S. safety regulators have suggested a new formal standard for all automakers, though it is unclear whether the recall will be extended globally. Tesla, XPeng, Xiaomi and Geely have been contacted for comment. The recall underscores ongoing regulatory pressure on vehicle safety standards in China.
Macro signals, central banks, earnings, and the deals moving capital today.
John Solomon, a veteran investigative reporter, has been appointed unpaid chairman of a temporary White House Government Transparency Task Force, giving him access to declassified documents for review.
The task force was created earlier this year and was referenced by President Trump in a July speech; it aims to examine alleged election interference, foreign policy failures, ethics breaches and the weaponization of government, according to Solomon.
Solomon says he uses the same journalistic instincts as before and has no security clearance; he receives documents that are posted publicly and provides briefings to White House reporters, noting that intelligence agencies have found no evidence that a foreign power altered votes in the 2020, 2022 or 2024 elections and that he has declined to state whether the 2020 election results were accurate.
His work is published on the website Just the News and occasionally on the White House website, where he cites declassified FBI memos and other documents; the task force's findings have been cited in reporting on the seizure of electronic devices belonging to former congressman Eric Swalwell.
Former colleagues and editors have expressed disappointment, saying his recent reporting promotes conspiracy theories about Russia, Ukraine, the Biden family and election integrity; they note a shift from his earlier AP and Post work, and Solomon declined to comment on the criticisms.
The White House says he complies with special government employee ethics guidelines, and the task force's purpose remains undefined while it is unclear who else participates beyond Solomon and intelligence officers.
Solomon began his career at the AP and The Washington Post, covering major national stories, then worked for conservative outlets, including the Hill, before joining the White House, and has previously edited the Washington Times, led the Center for Public Integrity, and held roles at Sinclair and the Hill.
Shein, the online fast‑fashion retailer, is offering up to 280 million shares in its Hong Kong IPO at a price range of HK$47.60 to HK$49.50, which would value the company at about $27 billion at the top of the range.
Investors led by existing shareholders Boyu, Tiger Global and General Atlantic have committed about $383 million, with additional participation from Tencent, Greenwoods, Taikang Life and UBS Asset Management.
Shein plans to list on September 1 and will announce the final price on August 31.
The IPO marks the company's first public offering after it abandoned attempts to list in New York and London over the previous four years.
The valuation represents a decline from a private‑market peak of $98.2 billion in 2022 and a $64 billion valuation in 2023, reflecting slower revenue growth and tighter profit margins. Winston Ma, an adjunct professor at New York University School of Law and former head of CIC's North America unit, said that public investors are no longer paying for hyper‑growth and that the valuation reflects a new equilibrium as the company must defend margins against trade tariffs, higher compliance costs and regulatory scrutiny in the United States and China.
Shein expects first‑half 2026 revenue growth to be roughly in line with the 1.1 % growth reported in the first quarter, with operating margins slightly lower than the prior quarter. The company cited higher European import duties, pricing pressure and reduced demand in the Middle East linked to the Iran war as factors affecting margins.
Shein recorded a quarterly loss of $99 million after the United States removed a duty exemption for small packages and took a $328 million fair‑value charge on convertible preferred shares following an accounting change.
The de minimis rule change subjects Shein‑origin products shipped to the United States to duties ranging from 10 % to 87.5 %, contributing to a 14.3 % drop in U.S. revenues in the first quarter.
Shein has set aside about $80 million for legal and regulatory matters, including a U.S. Federal Trade Commission investigation, EU Digital Services Act scrutiny and data‑privacy cases in France and Ireland.
The planned acquisition of U.S. brand Everlane for $80 million is under review by the Committee on Foreign Investment in the United States.
Shein's IPO is the largest new share sale in Hong Kong this year and the third‑largest in Asia, following offerings by CXMT and China Resources New Energy. Hong Kong listings have raised about $41 billion so far in 2024, a record for the period.
Shein will list on the Hong Kong stock exchange on September 1, aiming to raise up to HK$13.86 billion (about $1.77 billion) and reach a valuation near $27 billion.
Shein will list on the Hong Kong stock exchange on September 1, aiming to raise up to HK$13.86 billion (about $1.77 billion) and reach a valuation near $27 billion. The fast‑fashion retailer, founded in 2008 and headquartered in Singapore, previously sought listings in the United States and the United Kingdom but withdrew because of regulatory challenges. The offering will place nearly 280 million shares on the market at a price range of HK$47.60 to HK$49.50. At the top of the range, the valuation would be close to $27 billion, lower than the $100 billion private round in 2022, reflecting slower sales growth and higher operating costs. Shein reported a loss of $99 million in the first quarter, compared with a net profit of $395 million a year earlier, and recorded a $328 million paper loss from a recent accounting change. The company cited higher costs from US‑China tariff disputes, the impact of the war in Iran on demand and delivery schedules, and the end of the US de minimis tax exemption as factors affecting its finances. Backers include Goldman Sachs, Morgan Stanley and JP Morgan. Shein’s customer base grew to 281 million active users in March 2026, up more than 16 percent year‑over‑year, with more than one billion orders placed. The IPO is expected to test investor confidence in the fast‑fashion sector amid heightened competition and ongoing regulatory scrutiny. Environmental and forced‑labour concerns have been raised about its supply chain; the company says it maintains a zero‑tolerance policy. The listing could become one of the largest IPOs in Hong Kong’s recent history, but its success will depend on how investors respond to the company’s recent financial performance and the broader trade tensions between the United States and China.
Alibaba's Hong Kong shares fell as much as 10% on Monday after the company completed a HK$80 billion ($10.2 billion) share placement at HK$112.70 per share, an 8.4% discount to the previous close. The placement is the largest primary follow‑on offering by a Hong Kong‑listed company and the third‑largest globally this year. Alibaba said the funds will support AI development and infrastructure as part of a three‑year pledge to invest 380 billion yuan ($56.5 billion) in AI. The deal diluted existing shareholders and led to short‑term concerns about earnings pressure. Charles Wang, chairman of Shenzhen Dragon Pacific Capital Management, said the placement was negative news in the short term because it reduced shareholders' interest, though he added that the investment could be beneficial in the long term. U.S. investors have also voiced skepticism about when AI spending will generate returns. Alibaba reported a 75% decline in quarterly net profit, primarily driven by AI‑related expenditures, and accelerated its expected payback period for AI investments from three to two and a half years. The company launched its third data centre in South Korea last week, expanding its network to 104 availability zones across 30 regions. Alibaba intends to use the proceeds to expand its AI infrastructure. The timeline for achieving profitability from the spending remains uncertain.
EV registrations rose 13% in July across 16 European markets, representing 25.7% of all new car sales, according to data provided to Reuters. The increase follows higher oil prices and the introduction of subsidies and more affordable electric models.
Since the war in Ukraine began in February, European automakers have expanded the availability of lower‑priced EVs and launched social leasing programs that target lower‑income buyers. In France, EVs accounted for a record 35% of new registrations in July, up from 17% a year earlier, as the government's social leasing scheme took effect.
Renault reported that electric cars made up more than half of its orders in July, up from 10% two years earlier, and the revived Renault 5 became the best‑selling electric model in the United Kingdom. The automaker plans to introduce an electric Twingo priced under £20,000 before a possible UK subsidy.
Consumer surveys show strong support for EVs as a response to fuel price volatility; a Carwow poll found 62% of respondents view EVs as the best long‑term solution to high fuel costs. Industry analysts note that while charging infrastructure remains limited for apartment dwellers, the combination of price and policy is accelerating adoption.
Overall, EV sales in the European Union increased 40.5% in the first half of the year, reaching more than 1.2 million cars and representing 20.7% of total sales. The trend contrasts with the United States, where EV sales fell more than 20% year‑on‑year after the federal tax credit was eliminated.
Analysts caution that growth may slow if oil prices decline or if charging infrastructure does not keep pace with demand.
KPMG Australia announced on Monday that it will reduce its workforce by about 5%, eliminating 27 partners and roughly 360 employees, and said it expects a difficult market environment to continue at least until 2028.
The firm has been under investigation since March after whistleblower allegations surfaced that staff used confidential client information to secure audit contracts. The Australian government has indicated it may consider breaking up the Big Four accounting firms, and KPMG is cooperating with reviews of its governance, culture and ethics.
The headcount reductions will occur mainly in the consulting and business services divisions. The firm reported a 1% decline in total revenue to A$2.26 billion for the year ended June 2026, driven by a 17% drop in consulting revenue and loss of government contracts. Revenue grew in the deal advisory, infrastructure, tax, legal, audit and assurance, and mid‑market and private divisions. Average pay for equity partners fell 13% during the year as the firm reviewed its cost structure. KPMG has agreed not to bid for new federal government work until September 30 while independent reviews are conducted. Former chief executive, audit leader and chairman, along with several senior audit partners, have left the firm.
The firm said it will focus on rebuilding client trust and aligning its structure with global advisory services, while the government continues to examine possible regulatory changes for the partnership model of the Big Four.
U.S.-Canada trade negotiations collapsed on Saturday, leading to a 50 percent tariff on Canadian goods such as hockey sticks and Crown Royal whisky, after Prime Minister Mark Carney withdrew from the talks. President Donald Trump had invoked an untested legal authority to pressure Canada into accepting trade concessions, and had threatened to impose the tariffs unless Carney dropped retaliatory measures. Earlier in the week, Trump lifted tariffs on beef imports, saying the move would lower grocery prices. Wendy Cutler, senior vice president at the Asia Society Policy Institute, said the breakdown represents a setback for Trump’s trade policy and that other nations are watching closely as they become increasingly frustrated with one‑sided U.S. demands. The United States has negotiated reciprocal trade agreements with Malaysia, Cambodia, Argentina, the European Union, the United Kingdom and Japan over the past year, and the Canada talks were intended to avert the new 50 percent tariffs that Trump had threatened in July. Administration officials said they believed decades of U.S. trade policy had weakened manufacturing communities and that a muscular approach using the size of the U.S. economy could compel other countries to concede. Negotiations were complicated by internal administration disagreements; trade representative Jamieson Greer faced opposition from White House trade advisers Peter Navarro and Treasury Secretary Scott Bessent, who argued that maintaining higher tariffs on aluminum derivatives was necessary for domestic manufacturing. At a White House meeting, industry representatives said Navarro and Bessent pressed Greer to retain the 50 percent aluminum tariff, arguing that reducing it would undermine U.S. production goals. Carney said, ‘We’ve recognized from the start that America has changed,’ and added, ‘We recognize that sometimes, its signature is written in pencil.’ The administration also sought to exclude heavy trucks produced in Ontario from tariff reductions and to limit Canada’s ability to sign trade deals with other countries, a point Carney cited as undermining Canada’s sovereignty. Carney announced that Canada will impose retaliatory trade measures on September 8, saying, ‘Then the parties come back to the table. North America is too integrated for it to unravel on the basis of a deal that was put together over 14 days.’ A USTR official clarified that the administration did not intend to prevent Canada from signing agreements with other countries, but expressed verbal concerns about subsidized or dumped steel and aluminum from third countries. Canadian business groups warned that the 50 percent tariffs could disrupt supply chains and raise costs for small U.S. businesses. Jason Miller, a supply chain management professor at Michigan State University, said importers may be unable to absorb the cost before receiving payment from customers, potentially leading to shortages of certain products. Trade lawyer Dan Ujczo said the integration of North American supply chains makes a prolonged dispute risky for both economies. The failure of the talks leaves the proposed revisions to the United States‑Mexico‑Canada Agreement (USMCA) in limbo and may lead to further court battles over the legality of the 50 percent tariffs imposed under a 1930 trade law. Trump’s tariffs on a range of goods are expected to affect consumer prices in the weeks ahead of the November 3 midterm elections, a factor that could influence voter sentiment on the cost of living.
Alibaba (9988.HK) shares fell 8% in early Hong Kong trading on Monday after the company finalised a HK$80 billion ($10.2 billion) share placement at HK$112.70 per share.
The placement priced 710 million new shares at an 8.4% discount to the prior close and is the largest primary follow‑on offering by a Hong Kong‑listed company and the third‑largest globally this year, according to Alibaba.
Alibaba reported quarterly earnings with net profit down 75% from a year earlier, a decline the company linked to increased spending on artificial‑intelligence projects.
The firm said it will allocate the proceeds to fund AI development and expand its cloud infrastructure, including the opening of a third data centre in South Korea that brings its network of availability zones to 104 across 30 regions.
The capital‑expenditure commitment, announced in October, specifies an investment of 380 billion yuan ($56.5 billion) over three years.
Alibaba had previously projected a payback period for AI investment of three years, but revised the estimate to two and a half years because of rising demand for AI services.
Roehampton University in London has introduced esports scholarships worth £2,000 for undergraduate and postgraduate students who can demonstrate a balance between academic performance and competitive gaming. Esports, competitive video gaming with organized tournaments and prize money, is a growing sector. While many universities worldwide offer such funding, scholarships in the United Kingdom have been limited. The university previously offered £1,500 before raising the amount to £2,000 following the team's success. Applicants must meet minimum rankings in major games, though the university will consider those near the threshold if they have strong streaming followings or other criteria. Scholars are required to compete in weekly tournaments and may represent the university at in‑person events. Cameron Dray, a former esports scholar, said the funding allowed him to study in London without taking a part‑time job and noted that the scholarship requirements were clear and transparent. Thomas Cole, an esports player who specialises in the racing game Trackmania, said such scholarships reduce financial stress and may motivate students to excel academically. Tom Allingham, a student‑finance expert with Save the Student, said many students are unaware of available scholarships and that unclaimed funds are common, encouraging students to explore all funding options. The university has awarded more than 100 scholarships so far, and officials say the programme may expand. Whether the scholarship model will become a widespread solution to student debt remains to be seen.