Daily News Report – September 1

On the first day of September, several key global economic events made headlines. Christine Lagarde warned about the financial stability risks of lawsuits challenging Trump’s tariffs, Chinese automaker BYD reported shrinking profits under mounting competition, and silver prices soared to historic levels, fueled by expectations of rate cuts and rising industrial demand.

Lagarde: Lawsuits Against Trump’s Tariffs Create Uncertainty and Threaten Global Financial Stability

European Central Bank President Christine Lagarde warned that ongoing lawsuits in the U.S. challenging tariffs imposed by former President Donald Trump are adding further uncertainty to the global economic outlook. She stated these developments could negatively impact confidence in the U.S. economy and international financial stability.
Lagarde emphasized that continued legal and political disputes over tariffs undermine trust in the dollar and heighten market volatility.
She also warned that any potential attempt by Trump to dismiss the Federal Reserve Chair would have severe consequences for the U.S. economy’s balance and ripple effects globally.
Lagarde stressed that central bank independence is essential for maintaining financial stability.
These tensions come at a critical time of slowing global growth and varying inflationary pressures.
She added that any damage to the credibility of the dollar or U.S. monetary policy would have immediate effects on global capital flows and currency markets.

BYD Profits Drop 30%, Shares Fall in Hong Kong

Shares of Chinese automaker BYD, listed in Hong Kong, fell over 6% on Monday after the company announced a quarterly profit drop amid intensifying price competition in China’s EV market.
BYD revealed its net profit fell nearly 30% year-over-year in the April–June quarter to 6.36 billion yuan ($891 million), despite revenue growth of 14% to 201 billion yuan as it expanded into new markets.
In the first half of 2025, BYD sold around 2.15 million electric and plug-in hybrid vehicles, up 33% year-over-year, but still below its annual target of 5.5 million units.

Silver Breaks Above $40/oz for the First Time Since 2011 on Rate-Cut Bets

Silver prices surged above $40/oz on Monday for the first time since 2011, driven by strong expectations that the Federal Reserve will cut interest rates this month, boosting demand for precious metals as safe-haven assets.
Spot silver rose 1.4% to $40.29/oz, taking its year-to-date gains to over 40%.
Geopolitical tensions and former President Trump’s repeated criticism of the Fed have fueled defensive asset buying.
Silver’s global supply deficit continues for a fifth consecutive year, particularly with growing industrial demand from the clean energy sector.
This has encouraged investment in silver-backed ETFs and contributed to declining stockpiles in London.
Overall, the global economy remains under clear pressure, balancing uncertainty over Trump’s tariffs, declining Chinese corporate profits, and a notable rally in precious metals. Investors now await the Fed’s upcoming decisions.

Hot Economic Developments to Start September

Related Topics