Good Afternoon. While Silicon Valley frets over a tech bubble, America’s factories are hitting their highest gear in two years. Add in tariff drama, a Walmart stumble, and AI livestreamers selling more printers than their human counterparts and you’ve got a very 2025 economic mixtape. Let’s get into it.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

1. Walmart Posts First Earnings Miss in 3 Years

The News: Walmart shares fell nearly 5% Thursday after the retailer missed Wall Street’s earnings expectations for the first time since 2022. Revenue climbed to $177.4 billion, topping estimates, but adjusted earnings of 68 cents per share fell short of forecasts. Executives pointed to higher inventory costs, litigation expenses, and shrinking margins, with tariffs from Trump’s trade policies adding pressure. Walmart said it has already raised prices on about 10% of its merchandise and will continue adjusting where needed.

Why It Matters: As America’s largest retailer, Walmart is a bellwether for household spending and tariffs are clearly showing up on its balance sheet. The company’s scale has allowed it to shield shoppers from the full brunt of price hikes, but even Walmart is now passing along higher costs. That signals fresh inflationary pressure could ripple through the broader economy just as the Fed debates its next move on interest rates. For consumers, it’s another reminder that trade policy doesn’t just hit Wall Street, it hits your cart at checkout.
Source: cnbc.com

2. U.S. Business Activity Jumps on Manufacturing Rebound

The News: U.S. business activity accelerated in August, led by US manufacturing hitting a two-year peak as demand soars. The S&P Global Composite PMI rose to 55.4, its highest since December, signaling the economy is expanding at a 2.5% annualized pace. Manufacturing was the standout, with orders hitting their strongest level in 18 months, pushing the sector back into growth mode for the first time since May 2022.

Why It Matters: More factory orders mean more jobs and steadier paychecks but the rebound comes with a catch. Businesses reported the steepest rise in input costs in over a year, thanks mostly to tariffs, and they’re already passing those costs to shoppers. Translation: the economy’s cranking, but that new couch or fridge may cost you more. Good news if you’re a machinist clocking overtime…less fun if you’re just trying to buy a new dishwasher without taking out a small loan.
Source: reuters.com

3. Pentagon to Stockpile Cobalt for First Time Since 1990

The News: The U.S. Defense Department is moving to buy up to 7,500 tons of cobalt over the next five years, marking its first cobalt stockpiling effort in 35 years. The $500 million plan, led by the Defense Logistics Agency, aims to reduce reliance on foreign suppliers, especially China, which dominates refining, and the Democratic Republic of Congo, which supplies most raw cobalt. Cobalt is essential for everything from fighter jet engines to EV batteries, making it a linchpin for both military readiness and clean-energy tech.

Why It Matters: This is more than just metals in a warehouse, it’s about safeguarding U.S. supply chains in an era of geopolitical tension. While cobalt prices are currently soft due to oversupply, long-term demand tied to electric vehicles, renewable energy storage, and defense tech is expected to climb. For investors, it’s a reminder that critical minerals can act like an insurance policy in a portfolio: they won’t deliver steady growth like tech stocks, but a small allocation to commodities can hedge against supply shocks, inflation spikes, or geopolitical flare-ups. After all, if the Pentagon is stockpiling, it might be worth asking whether you should have at least a little exposure too.
Source: bloomberg.com

4. Short Sellers Have Been Crushed in 2025. Better Days May Be Ahead.

The News: It’s been a brutal year for Wall Street’s short sellers — the traders who profit by betting against overhyped companies. With meme stocks roaring back and speculative names refusing to die, veteran funds say 2025 feels eerily like 2021. Several well-known shops, including Hindenburg Research, have already shut down, while others are pivoting toward long strategies just to stay alive. Adding fuel to the fire, President Trump has publicly called for investigations into those betting against his own media company, amplifying political hostility toward shorting.

Why It Matters: Short sellers may be unpopular, but they play an important role in markets, exposing frauds (like Nikola) and keeping valuations in check. Without them, bubbles can inflate longer, leaving everyday investors more exposed when reality sets in. For now, “don’t fight the tape” seems to be the rule of survival, but history shows speculative frenzies eventually cool. When that happens, the few short sellers left standing could score big. For the average investor, the lesson is simple: be wary of chasing hype stocks — because eventually gravity wins.
Source: marketwatch.com

5. Scientists Create Cement That Cools Buildings by Itself

The News: Researchers from Purdue University and Southeast University in China have developed a new “supercool cement” that can keep buildings nearly 10°F cooler than the air around them. The material reflects 96% of sunlight and releases heat back into the atmosphere using tiny mineral crystals, functioning almost like built-in air conditioning without electricity. Even better, it’s cheaper to produce than standard cement and strong enough to withstand harsh conditions.

Why It Matters: Buildings consume about 40% of the world’s energy, much of it on cooling, and cement production alone accounts for nearly 8% of global CO₂ emissions. A cement that reduces AC demand and lowers emissions could be a game-changer for cities struggling with rising heat. If widely adopted, this tech could cool urban “heat islands,” cut energy bills, and shrink one of the dirtiest sectors in construction. It might not sound flashy, but in the climate fight, breakthroughs like this can cement real change.
Source: techxplore.com

1. AI Salespeople Outsell Humans in China’s Livestream Market

The News: AI “virtual humans” are now beating real livestream hosts in China’s $1.7 trillion e-commerce market. Shanghai-based PLTFRM and Baidu tech helped Brother printers boost livestream sales by 30% with a tireless AI avatar that pitches products 24/7 — even while customers (and human staff) sleep. One session by tech entrepreneur Luo Yonghao’s dual AI avatars generated nearly $8 million in sales and 13 million viewers, outperforming his own human-hosted efforts in minutes. Companies are reporting up to 80% lower costs and higher conversion rates by switching to AI.

Why It Matters: China has more than 100,000 digital sales avatars already at work, and their success could could ripple across retail globally. Social media e-commerce, from Instagram shopping to TikTok Shop, relies on influencers and content creators to sell with personality and trust. If brands can swap them for endlessly available AI hosts that cost less and perform better, the economics of influencer marketing get turned upside down. Creators may soon find themselves competing not with each other, but with digital doppelgängers that never log off. Your next favorite influencer may come with a software update, not a skincare routine.
Source: morningstar.com

2. Trump backs down from 250% EU pharma tariff in deal

The News: President Trump has backed down from imposing sky-high tariffs on EU pharmaceuticals and semiconductors. Instead of the threatened 250% and 100% rates, those sectors will now face a 15% tariff, still higher than pre-deal levels, but far below the nightmare scenario feared by European exporters. The compromise is part of a broader US–EU trade pact announced Thursday, which also includes tariff reductions on cars and US agricultural exports.

Why It Matters: This deal averts a major shock to global drug and chip supply chains. A 250% pharma tariff would have raised U.S. healthcare costs and risked shortages of widely used medications like Ozempic, while semiconductor tariffs could have disrupted everything from smartphones to military systems. By keeping tariffs lower, both sides get breathing room. European exporters avoid disaster, and U.S. consumers dodge a painful price hike on everything from prescriptions to electronics.
Source: bbc.com

3. Economist warns US Tariffs will push India closer to China

The News: Columbia University economist Jeffrey Sachs blasted U.S. tariffs on India, calling them “sabotage” and “the stupidest tactical move in U.S. foreign policy.” The 25% penalty was imposed on India for buying Russian oil, but Sachs said the real outcome was strengthening BRICS unity (Brazil, Russia, India, China, South Africa) against Washington. Within 48 hours of the tariff announcement, BRICS leaders were on the phone coordinating closer ties. Sachs argued the move destroyed years of U.S. diplomatic efforts to cultivate India as a counterweight to China.

Why It Matters: India is supposed to be a key U.S. partner in Asia, especially as tensions with China grow. Instead, tariffs have driven New Delhi deeper into the BRICS camp, where it’s forging tighter relationships with Beijing and Moscow. That’s a strategic own goal: alienating the world’s fastest-growing major economy while uniting U.S. rivals. For businesses, this risks a future where trade routes, supply chains, and even digital ecosystems split more firmly along East vs. West lines. Or as Sachs put it, Trump may have just handed China its biggest diplomatic gift in years.
Source: indiatoday.in

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