Policy paths

Central banks in the US, UK, Europe, and Japan are preparing for key policy decisions in September. 

The US Federal Reserve remains in focus, as Chair Jerome Powell notes rising risks to the labour market despite inflation staying above target. Fed Governor Christopher Waller has advocated a near-term rate cut, signalling the possibility of a “sequence” of reductions to move policy closer to neutral. Markets now see a strong chance of a quarter-point cut at the September 16–17 meeting, with more easing likely later this year. 

Meanwhile, the Bank of England faces a more divided outlook. Its August rate cut to 4% followed a rare split vote, reflecting the tension between persistent inflation concerns and a weakening labour market. 

The European Central Bank is expected to hold steady in September, though further cuts could resume if growth slows or tariffs hit exports. The Bank of Japan is also likely to pause, amid fragile growth and subdued inflation.

Duty dollars

The tariffs imposed by US President Donald Trump have delivered a windfall for Washington’s coffers, even as their legality has been challenged in court.

According to Budget Lab at Yale University, the average effective tariff rate imposed by the US has climbed to 18.6%, the highest since 1933, fuelling a surge in Treasury receipts. 

Since the imposition of reciprocal tariffs in April, revenues from customs and excise duties jumped dramatically, reaching $30.9 billion in August. The Congressional Budget Office projects that, if sustained, these levies could help reduce federal borrowing by $2.5 trillion through 2035, offering rare fiscal breathing room. 

But the gains come at a cost. Tariffs act as basically taxes on firms and consumers, driving up import costs and adding pressure to inflation. In addition, their future is also uncertain as a federal appeals court has ruled most of Trump’s “reciprocal” tariffs illegal, arguing that Congress, and not the president, holds taxing authority. With the case likely headed to the Supreme Court, the question is whether these record inflows represent a durable fiscal tool or a fleeting trend.

Riches to rags

Evergrande Group, once China’s second biggest property developer by sales, was delisted from the Hong Kong Stock Exchange on 22 August, marking the collapse of a company that once drove the country’s real estate boom and, by extension, economic growth. 

The trading of the company’s shares was suspended since January last year, after a Hong Kong court ordered its liquidation following the firm’s default on over $300 billion in debt and failure to deliver a restructuring plan. The delisting closes a turbulent chapter that began with promise. Evergrande’s 2009 IPO was the largest by a Chinese private developer, and its market value peaked above $50 billion in 2017, according to a Reuters report. 

But years of reckless borrowing left it vulnerable when Beijing introduced the policies to rein in debt, triggering a liquidity crunch across the sector. By the time Evergrande shares were halted, the company’s value had plunged to just $282 million. Evergrande leaves behind hundreds of unfinished projects, mounting creditor losses, and a stark warning about the fragility of China’s debt-driven growth model.

Unequal bites

Access to healthy diets is improving globally, but progress remains uneven, according to the 2025 State of Food Security and Nutrition in the World report by the Food and Agriculture Organization of the United Nations. 

In 2024, a healthy diet cost an average of $4.46 per person per day, yet 2.6 billion, or 32%, people could not afford it. Low-income countries, particularly in Sub-Saharan Africa, saw costs remain near record highs, leaving over 920.7 million people unable to access a healthy diet, a 3% increase from 2023. 

India recorded 587 million people unable to afford a healthy diet, with the share falling only slightly from 42.9% to 40.4%. In contrast, China and most upper-middle- and high-income countries experienced smaller cost increases, improving access to a healthy diet. 

The Middle East, North Africa, Afghanistan, and Pakistan continued to face rising unaffordability. These disparities underscore growing structural inequalities. While wealthier countries are restoring affordability, poorer nations risk being left further behind, threatening holistic progress on food security, nutrition, and global health goals.

Chipmaker’s clout

Nvidia’s gross profit growth has shown a slowing trend in recent quarters. However, the world’s most valuable company still posted a healthy 50% year-on-year growth in Q2 FY26 (May-July 2026), quarterly results released on 27 August showed. 

The company reports quarterly results for the periods of February-April, May-July, August-October, and November-January. While the company’s profit growth peaked at 339% in Q1 FY25 (February-April), the latest quarter’s figure was higher than the previous quarter’s 30.7% growth. 

The company’s revenue growth was stronger during the quarter at 55.6%, suggesting that Nvidia’s dream run is far from over. Behind Nvidia’s strong financials are strong data centre sales, with Microsoft, Amazon, Google and Meta among its top clients. 

While demand for AI chips remains strong, their growth is no longer accelerating at the pace seen in 2024. The company is expected to face some headwinds from China’s export restrictions and the shifting trade dynamics under US President Trump.