Good morning. Apple is cooking up an AI comeback with a slew of new devices. China's social security ruling is sparking social media alarm. And Webtoon strikes a deal bringing famed Disney characters to its platform. Listen to the day’s top stories.
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Don’t count Apple out of the AI race just yet. The tech behemoth is said to be plotting a comeback in the space with a slate of new devices including robots, a lifelike Siri and home-security cameras. The centerpiece of the firm’s AI strategy is targeted for a 2027 release: a tabletop robot that also serves as a virtual companion.
CoreWeave’s disappointing earnings outlook weighed on chipmakers in Wednesday trading, with industry titan Nvidia sliding. A wider quarterly loss at the cloud-computing provider raised concerns that its rapid AI data center expansion is pressuring profit margins. Scott Bessent said the recent deal to allow Nvidia and Advanced Micro Devices to resume lower-end AI chip sales to China, on the condition they give the US government a 15% cut of the related revenue, could serve as a model for other industries.
A new Federal Reserve chair might be selected sooner than expected. Donald Trump signaled he may name Jerome Powell’s successor “a little bit early” and added that he was down to three or four potential candidates, despite Bessent saying the administration was considering around 10. The Treasury Secretary also called for a half-point interest rate cut starting next month.
Ultimatum. Trump warned Vladimir Putin that he would impose “very severe consequences” if the Russian leader didn’t agree to a ceasefire at Friday’s summit. The US president also said that he would use the occasion to set up a second meeting including Volodymyr Zelenskiy. “There’s a very good chance that we’re going to have a second meeting which will be more productive than the first,” Trump said.
Deep Dive: Stipulated Social Security
China’s highest court has ruled that workers and their employers can’t waive mandatory social insurance contributions starting Sept. 1. That sparked alarm on social media—as well as a broader discussion about inequalities in the welfare system.
China’s welfare system is key to restoring household confidence after property prices collapsed. The country is investing the most in social needs in almost two decades in a bid to get people to spend more and save less.
A surge of retirees. Until now the rule hasn’t been strictly enforced—but is largely in line with the goals of offering more social support while also replenishing pension coffers as payouts increase and the population grows older.
The decision is seen as a threat to small- and medium-sized businesses, which could increase costs to workers and employers to offset the payments, according to Société Générale. Many workers voiced their desire to receive higher salaries rather than an uncertain pension in the future.
A disaster-in-waiting. The $29 billion stock award Tesla provided Elon Musk to run the maker of electric vehicles stands out for its sheer magnitude. It’s also the starkest example of the new phenomenon of boards granting CEOs enormous equity grants when they already have vast equity ownership, Gautam Mukunda writes.
